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Home My WebLink AboutR30-Economic Development AgencyCITY OF SAN BERNARDINO ECONOMIC DEVELOPMENT AGENCY FROM: Maggie Pacheco SUBJECT: Public Hearing - Tax and Equity Fiscal Executive Director Responsibility Act (TEFRA) Hearing for Catholic Healthcare West DATE: February 26, 2007 Synopsis of Previous Commission/Council/Committee Action(s): On February 22, 2007, Redevelopment Committee Members Estrada, Johnson and Baxter unanimously voted to recommend that the Mayor and Common Council consider this action for approval. Public Hearing (Mawr and Common Counciq Resolution of the Mayor and Common Council of the City of San Bernardino approving the Issuance of Revenue Bonds by the California Statewide Communities Development Authority for the benefit of Catholic Healthcare West - ------- -----( ~---------------------------- gg---------- - ---------------- Contact Persons : Ma ie Pacheco Phone: Northwest/IVDA Project Area(s): Redevelopment Project Area Ward(s): (909)663-1044 2 and 6 Supporting Data Attached: ~ Staff Report D Resolution(s) ^ Agreement(s)/Contract(s) ^ Map(s) ^ Other(s) FUNDING REQiJIREMENTS: Amount: $ N/A Source: N/A Budget Authority: N/A v ~, SIGNATURE: t -J'ti~wt~ ``~~r~~ ~ Maggie Pa ec Executive Director Barbara Lindseth, Administrative Services Director Commission/Council Notes: P.\Agrnges\COmm Dev Commission\CDC EOOTO)-05-0]TEFRA Hearing-CHW SA.doc COMMISSION MEETING AGENDA Meeting Date: 03/05/2007 Agenda Item Number: ' ~~ ECONOMIC DEVELOPMENT AGENCY STAFF REPORT PUBLIC HEARING TAX AND EQUITY FISCAL RESPONSIBILITY ACT (TEFRA) HEARING FOR CATHOLIC HEALTHCARE WEST BACKGROUND: Catholic Healthcare West (CHW) is a California non-profit, public benefit corporation headquartered in San Francisco, California. CHW is one of the largest not-for-profit acute healthcare delivery systems in the United States, which operates 43 hospitals throughout California, Arizona and Nevada. The CHW system was founded in 1986 and is inspired by the vision of its founders to deliver compassionate, high quality, affordable health services; serve and advocate for those who are poor and disenfranchised; and partner with others in the community to improve the quality of life of the individuals in the communities it serves. CHW has submitted an application to the California Statewide Communities Development Authority (the "Authority") for $985,000,000 of 501(c)(3) non-profit Bond financing for various facilities in California. The Authority is a joint exercise of powers authority consisting of numerous California cities, counties and special districts, including the City. The Authority, pursuant to its Amended and Restated Joint Exercise of Powers Agreement, is authorized to assist in the financing of facilities for profit and non-profit organizations. A portion of the Bonds will finance approximately $62,000,000 in renovations at 2 of its facilities in the City of San Bemazdino ("City"): 1. St. Bernardine Medical Center located at 2101 North Waterman Avenue, a 463-bed hospital which provides the following services: a Cardiac Program, recognized as one of the top 10 cardiac programs in California; an Emergency Department that experiences over 41,000 visits per year; a multi joint Orthopedics Program that performed over 2,600 procedures in 2005; aMaternal/Child Health Program that includes a Level II Neonatal Intensive Care Unit; ahigh-volume Surgical Program, including an outpatient surgical center; an accredited Oncology Services Program; and a Baziatrics Program. In 2005, St. Bernazdine Medical Center provided $3,168,915 in unsponsored care and contributed $92,738 in grant funding to other non-profit organizations serving the community, such as the Alzheimer's Association, Central City Lutheran Mission, Inland Congregation United for Change, Mary's Mercy Center and San Bernardino County Sexual Assault Services. 2. Community Hospital of San Bernardino located at 1805 Medical Center Drive, a 321-bed acute healthcare facility whose major focus of care includes Women's Services, Newborn and Pediatric Services, Inpatient Medical Services, Behavioral Health Services, Home Health Caze, Long Term Neurological Care for Adults and Long Term Pediatric Caze. In 2005, Community Hospital of San Bernardino provided $5,653,127 in unsponsored care and contributed $165,841 in grant funding to non-profit organizations such as San Bernardino County Sexual Assault Services, Legal Aid Society of San Bernardino, Catholic Charities San Bemazdino/Riverside, Option House, Inc., Home of Neighborly Service and Dr. Earl Crane Children's Dental Clinic/Assistance League of San Bernardino. P \Agendas\COmm Dev Commission\WC 100TOl-DS-O] TEF2A Hearing -CHW SR doc COMMISSION MEETING AGENDA • Meeting Date: 03/05'/72007 Agenda Item Number: .J~ Economic Development Agency Staff Report TEFRA Hearing -CHW Page 2 • • • The proposed financing by CHW includes approximately $33 million in improvements to St. Bernardine Medical Center, including the construction and equipping of a 14-bed Intensive Care Unit, acquisition of a medical office building located at 1890 North Waterman Avenue, acquisition of surface parking lots located at 375 and 365 East 21s` Street, and acquisition of vacant lots located at 384 and 376 East 20`h Street. In addition, CHW is proposing to expend up to $29 million in improvements to Community Hospital of San Bernardino for construction, renovation and equipping of a 24-bed psychiatric unit, and a skilled nursing and psychiatric services facility. CURRENT ISSUE: The Authority has requested that the City Council conduct a Tax and Equity Fiscal Responsibility Act (TEFRA) public hearing, as required by federal law regarding CHW's proposed $985,000,000 financing that includes renovation of its two facilities in the City for approximately $62,000,000 of the Bond issue. The TEFRA Hearing would apply to this portion of the Bond issue as related to the two facilities in the City. Facilities located in other jurisdictions will conduct their own hearing(s) on this matter. The Bonds are expected to be insured and rated AAA. ENVIRONMENTAL IMPACT: Not applicable. The Redevelopment Agency of the City of San Bemardino (the "Agency") will collect a small administrative fee of approximately $2,500 for coordination of the TEFRA hearing. The proposed Bonds do not constitute a debt of the City, or pledge of the faith and credit of the City or the Agency. The proposed Bond issuance will be secured by corporate equity backed up by a Letter of Credit from Cal-Mortgage. FISCAL IMPACT: RECOMMENDATION: That the Mayor and Common Council adopt the attached Resolution. ~~. Maggie Pacheco, Ex cutive Director P:\Age~azlCOmm Dcv Commission\CDC 200TOJA5-0] TEFRA Hcariny ~ CH W 5@.doc COMMISSION MEETING AGENDA Meeting Date: 03/05//~20/0~7 Agenda Item Number: ~/ l ~ 1 • 2 3 4 5 6 7 8 9 10 I1 12 13 14 • 15 16 17 18 19 20 21 22 23 24 25 26 • 27 28 RESOLUTION NO. RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO APPROVING THE ISSUANCE OF REVENUE BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE BENEFIT OF CATHOLIC HEALTHCARE WEST WHEREAS, Catholic Healthcare West, anon-profit public benefit corporation (the "Corporation"), has requested that the California Statewide Communities Development Authority (the "Authority") participate in the issuance of revenue bonds in an aggregate principal amount not to exceed $985,000,000 (the "Bonds") for the purpose of, among other things, financing and/or refinancing the acquisition, construction, improvement and equipping of certain medical facilities known as St. Bernardine Medical Center and Community Hospital of San Bernardino, and other health care facilities related thereto, owned and operated by the Corporation (collectively, the "Facilities") and located in the City of San Bernardino (the "City"); and WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986 (the "Code"), the issuance of the Bonds by the Authority must be approved by the City because the Facilities are located within the territorial limits of the City; and WHEREAS, the Mayor and Common Council of the City of San Bernardino (the "Council") is the elected legislative body of the City and is an applicable elected representative required to approve the issuance of the Bonds under Section 147(f) of the Code; and WHEREAS, the Authority has requested that the Council approve the issuance of the Bonds by the Authority in order to satisfy the public approval requirement of Section 147(f) of the Code and the req~xirements of Section 9 of the Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1, 1988 (the "Agreement"), among certain local agencies, including ~ the City; and WHEREAS, pursuant to Section 147(f) of the Code, the Council has, following notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to approve the ~ issuance of the Bonds by the Authority. 1 P:4sgentlu\RaolutionsUiesolutions@OOTO}0}0] TEFRA Hearing - CNW MCC Rao.tlac I 1 ~~ NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED • 2 BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO, AS 3 II FOLLOWS: 4 Section 1. The Council hereby approves the issuance of the Bonds by the Authority for 5 the purposes of financing and/or refinancing'.he acquisition, acquiring, construction, improvement 6 and equipping of the Facilities. It is the purpose and intent of the Council that this resolution 7 constitute approval of the issuance of the Bonds by the Authority for the purposes of (a) Section 8 147(f) of the Code by the applicable elected representative of the governmental unit having 9 jurisdiction over the area in which the Facilities are located, in accordance with said Section 10 147(f), and (b) Section 9 of the Agreement. 11 Section 2. The Mayor of the City, and/or his designees are hereby authorized and directed, 12 jointly and severally, to do any and all things and to execute and deliver any and all documents that 13 they deem necessary or advisable in order to carry out, give effect to and comply with the terms 14 and intent of this resolution and the financing transaction approved hereby. • 15 Section 3. This resolution shall take effect immediately upon its adoption and execution in 16 the manner as required by the City Charter. 17 //// 18 //// 19 //// 20 //// 21 //// 22 //// 23 /~// 24 //// 25 //// 26 • 27 28 2 P:Ugentlaa\Rnolutians\Raolutiam\300T03-OS-04 iEFRA Ileanng-CHW MCC Reao.tloa RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY I OF SAN BERNARDINO APPROVING THE £SSUANCE OF REVENUE • 2 BONDS BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT AUTHORITY FOR THE BENEFIT OF CATHOLIC 3 HEALTHCARE WEST 4 g I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and 6 Common Council of the City of San Bernardino at a meeting 7 thereof, held on the day of , 2007, by the following vote to wit: g Council Members: Ayes Navs Abstain Absent q ESTRADA 10 BAXTER I1 BRINKER 12 DERRY _ 13 KELLEY 14 JOHNSON _ . IS MC CAMMACK 16 17 Rachcl G. Clark, City Clerk 18 19 The foregoing Resolution is hereby approved this day of , 2007. 20 21 22 Patrick J. Morris, Mayor City of San Bernardino 23 Approved as to Form: 24 25 ~ ~ , ~ B y: 26 es F. Penman, City Attorney 27 • 28 3 P:4lgeneas\Resolmians\Reaolutians\200Tg}.05-07 iEFRA Hearing- CHW MCC Rao.AOa