Loading...
HomeMy WebLinkAbout1982-078u San Bernardino 50,002-1-4 RESOLUTION NO. 82-78 RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO FINDING THAT AN APPLICATION FOR INDUSTRIAL DEVELOPMENT BOND FINANCING HAS BEEN SUBMITTED PURSUANT TO THE PROVISIONS OF ORDINANCE NO. 3815 OF THE CITY FOR A CERTAIN PROJECT, FINDING THAT SAID APPLICATION COMPLIES WITH THE PRO- VISIONS AND REQUIREMENTS OF SAID ORDINANCE NO. 3815; APPROVING SAID APPLICATION AND THE PROJECT TO WHICH IT REFERS; DIRECTING THE PREPARATION OF A PROJECT AGREEMENT, A RESOLUTION OF ISSUANCE AND SUCH OTHER LEGAL DOCUMENTS AS MAY BE NECESSARY TO CARRY OUT SAID PROJECT AND PROVIDE FOR THE ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS THEREFOR; AND MAKING CERTAIN OTHER FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH SAN BERNARDINO COMMUNITY HOSPITAL WHEREAS, the City of San Bernardino ("City" herein), is a "home rule city" duly organized and existing under and pursuant to a Charter adopted under the provisions of the Constitution of the State of California; and WHEREAS, pursuant to its home rule powers, the City duly and regularly enacted Ordinance No. 3815 ("Ordinance" herein) to finance various types of projects, as defined in the Ordinance, and to issue its special revenue bonds for the purpose of paying the cost of financing such projects, and has amended the same from time to time; and #219(et) 2/12/82 San Bernardino 50,002-1-4 WHEREAS, said Ordinance No. 3815, as amended, provides for the financing and refinancing of Health Facil- ities to provide needed health care to the citizens of the City and to facilitate cost containment with respect to such health care; and WHEREAS, there has been presented to this Mayor and Common Council an Application by SAN BERNARDINO COMMUNITY HOSPITAL (sometimes herein referred to as the "Applicant"), requesting the issuance of industrial development bonds for the purpose of financing, on behalf of the Applicant, a certain Project, which will enable the Applicant to better satisfy the needs of the citizens it now serves, provide health care services that will not be otherwise resonably available and so continue to provide for the welfare of the City and its inhabitants, said Project to be accomplished in two (2) Phases, to wit: $7,000,000 (Project - First Phase) --- interim financing for the refinancing of certain of existing indebtedness of Applicant, including, without limitation, reimbursement for certain prior capital expenditures, in order that Applicant may proceed with the Second Phase of its financing ("Project - Second Phase" as set forth below), the acquisition of land, FA #219 (et) 2/12/82 San Bernardino 50,002-1-4 the acquisition and construction of Health Facilities and improvements, and paying all costs and expenses in connection with such financing. $100,000,000 (Project - Second Phase) --- financing for the retirement of the interim financing ("Project - First Phase" as set forth above), the accomplishment of any of the purposes not accomplished in Project - First Phase, the acquisition and construction of Health Facilities and improvements (including, wihthout limitation, acute care facilities), and the acquisition therefor of land, equipment, furniture, fixtures, the providing of off-street parking for motor vehicles, and the acquistion and construction of all on-site and off-site improvements and appurtenances and appurtenant work, and paying all costs and expenses in connection with such financing. WHEREAS, the Mayor and Common Council have consid- ered the need for the provision of Health Facilities to serve the City and its inhabitants, specifically in the context of the San Bernardino Community Hospital as well as in the context of the financing of the Loma Linda University Medical Center, and have considered the issues involved and the facts and information presented and, upon the basis of #219 (et) 2/12/82 3 San Bernardino 50,002-1-4 such information and their personal knowledge of the City and its needs, and the Applicant, hereby find as follows: A. The provision of high quality health care is a matter of vital concern to the citizens of San Bernardino and accessibility to such health care, both in terms of affordability and physical location, is also of vital concern; and B. It is the City's responsibility to provide for and promote the health and well being of its citizens; and, in doing so, it is addressing a matter which is a municipal affair; and C. The City may directly provide for and promote the public health and care for the sick and injured by building, equipping, staffing and operating hospitals, clinics and other health related facilities, all of which require large amounts of capital, usually raised by taxation. Health care facilities provided by charities, nonprofit corporations and others fulfill the same public purpose, but do not require the imposition of taxes on the citizens nor create a burden on the City. Since such facilities are carrying out a public purpose which would otherwise fall to #219 (et) 2/12/82 4 San Bernardino 50,002-1-4 the City, the City, in carrying out its public responsibil- ities, may assist such organizations in such ways as it deems appropriate. Numerous cities and counties have provided such assistance by issuing hospital revenue bonds on behalf of private hospitals, such bonds being tax-exempt, but not being a debt nor obligation of the public bodies sponsoring the financing (here, the City). In this way, the public bodies sponsoring the financing (here, the City) can serve a public purpose at no expense to the taxpayers and with no liability to themselves (here, the City); D. The issuance of tax-exempt bonds is the most common form of hospital and health care financing in the nation today. Such financings have been undertaken by other charter cities in California; E. It is to the benefit of the City and its citizens that such form of financing be used in San Bernardino, as it provides a source of funds to be used to improve and maintain health care facilities, and it provides such funds at significantly lower interest rates than would be available on other forms of borrowing; #219 (et) 2/12/82 5 San Bernardino 50,002-1-4 F. With the efforts that the City and its Redevelop- ment Agency have been and are presently making to attract businesses to locate within the City, with the City having become and perhaps continuing to become a major supplier of new housing, population will increase, making an increasing demand upon the health care services; G. The cost of financing, the interest cost in particular, is a major element in the determination of rates and charges made to the public for health care services provided to patients. The interest costs attributable to Medicare and Medi -Cal patients is a cost which is passed through directly from the hospital to Medicare and Medi -Cal. High interest rates result in higher health care costs. Health care costs have becme extraordinarily expensive. By making tax-exempt financing available, the City can assist in containing health care costs; H. The State Legislature has established a State authority with a limited ability to issue tax-exempt bonds for health care facilities. At present the resources of the State are committed far in advance to projects not involving San Bernardino. In creating such authority, the State has acted to provide an alternative, not an exclusive, source of #219(et) 2/12/82 San Bernardino 50,002-1-4 tax-exempt financings and has not preempted the field. Charter cities may act to finance health care facilities serving their citizens; I. The City is served by a health care delivery system which includes the San Bernardino Community Hospital as an important, necessary and vital part; J. Ordinance No. 3815 makes tax-exempt financing available to all nonprofit organizations forming a part of the City's health care delivery system; K. Businesses considering locating in the City look not only to the available land, work force, etc., but also look to the quality of life available. A common ques- tion relates to the type and availability of health care facilities. Good health care facilities are a definite factor in encouraging businesses to locate in the City; L. The location of the San Bernardino Community Hospital and the services it provides are vital to the City and make the City a better, healthier and more appealing place in which to live and place the City in a favorable position to compete with other cities for new businesses and industry; #219 (et) 2/12/82 Z San Bernardino 50,002-1-4 M. San Bernardino Community Hospital must stay abreast of the state of the art and provide the finest in health care; and, to do this, it must undertake a major program for the acquisition and construction of Health Facilities, if it is to continue to adequately meet the needs of the citizens of San Bernardino; and it is in the best interest of the City to issue its tax-exempt bonds and lend the proceeds to the Applicant to enable it to accomplish such purpose; and WHEREAS, it is hereby found and determined that it is in the best interest of the City and in the furtherance of a public purpose and a municipal affair to maintain and strengthen the health care delivery system which serves the City by making available to all nonprofit corporations which serve the City and its inhabitants, tax-exempt financing -- financing which is available to numerous other hospitals in the nation. It is further found and determined that it is appropriate and in the best interest of the City to issue tax-exempt bonds to assist the San Bernardino Community Hospital and thereby assure the finest in care for the citizens of the City. #219(et) 2/12/82 M San Bernardino 50,002-1-4 NOW, THEREFORE, IT IS HEREBY RESOLVED, AND ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS: Section 1. That the recitals set forth herein- above are true and correct in all respects. Section 2. The City of San Bernardino, California, is a municipal corporation duly created, established and authorized to transact business and exercise its powers, all under and pursuant to the Constitution and laws of the State of California, and the City Charter of the City, and the powers of the City include the power to issue bonds for any of its corporate purposes. Section 3. Pursuant to the Charter of the City and Ordinance No. 3815, as amended, of the City, the City is legally authorized to issue special revenue bonds for the financing as described in the recitals hereof. Section 4. This body constitutes the governing body of the City and is legally authorized to provide for the issuance of such special revenue bonds by the City. #219(et) 2/12/82 0 San Bernardino 50,002-1-4 Section 5. The Project referred to in the recitals hereof (collectively including the "Project - First Phase" and the "Project - Second Phase"): (a) is in compliance with the purposes of the Ordinance and with the.criteria established thereto, (b) constitutes a project which may be financed by the issuance of such special revenue bonds by the City and is located within the jurisdiction of the City, and the undertaking of such Project will be a substantial factor in the accrual of the public benefits set forth in the Ordinance. Section 6. The Application referred to in the recitals hereof complies with the spirit, intent, provisions and requirements of said Ordinance No. 3815, as amended, and the Project involved in such application is hereby approved pursuant to the provisions of Subsection (d) of Section 11, and the provisions of Subsection (d) of Section 10 and Subsection (a) of Section 11 of said Ordinance No. 3815 shall not apply. Section 7. The City hereby declares its intention to exercise the authority referred to in Section 3 hereof by issuing Bonds of the City in such amounts as will be adequate to implement the City financing of the Project. #219(et) 2/12/82 10 San Bernardino 50,002-1-4 Section 8. The Bonds shall be payable from the Revenues described in said Ordinance No. 3815, as amended. Section 9. The Bonds shall be and are special obligations of the City, payable solely from the Revenues or from the other sources as are specified in the proceedings for the issuance of such Bonds and none of the Bonds shall be deemed to constitute a debt or liability of the City, or a pledge of the faith and credit of the City. The issuance of the Bonds shall not directly or indirectly or contingently obligate the City to levy or to pledge any form of taxation whatsoever therefor or to make any appropriation for their payment. All the Bonds shall contain on the face thereof a statement to the following effect: "Neither the faith and credit nor the taxing power of the City of San Bernardino is pledged to the payment of the principal of, premium, if any, or interest on this Bond, nor is the City of San Bernardino in any manner obligated to make any appropriation for payment" #219(et) 2/12/82 11 San Bernardino 50,002-1-4 Neither the Mayor and Common Council nor any persons executing the Bonds shall, in any event, be subject to any personal liability or accountability by reason of the issuance of such Bonds. The Bonds shall be a special obligation of the City, and the City shall, under no circumstances, be obligated to pay Bonds or Project costs (other than Administrative Expenses), except from Revenues and other funds received under the Project Agreements for such purposes, nor to pay Administrative Expenses except from funds received under Project Agreements for such purposes, or from funds which are made available as otherwise authorized by law. All Bonds shall contain on the face thereof a statement of their special obligation nature. Section 10. The details of such Bonds, including the establishing of the aggregate face amount thereof, shall be authorized by indenture, resolution or resolutions of the City at a meeting or meetings to be held for such purpose. The City Staff, Bond Counsel, Underwriters, the Applicant and the agents and representatives of same are hereby author- ized and directed to prepare or cause to be prepared the #219 (et) 2/12/82 12 San Bernardino 50,002-1-4 necessary legal documents, including the Project Agreements, Resolutions of Issuance, and such other documents as may be necessary to effect said Project and the issuance of the Bonds therefor pursuant to the Ordinance and to present same to said Mayor and Common Council. The Mayor of the City is hereby authorized and directed to coordinate the efforts of all concerned relating to the issuance and sale of the Bonds, and the City Staff, consultants, legal counsel to the City and Bond Counsel are hereby directed to take such steps as shall be appropriate to implement such sale and delivery of the Bonds including working with persons who may acquire vested rights as the result of such actions. Section 11. This Resolution constitutes a proper exercise of the powers of this Mayor and Common Council and conforms to State and local legal requirements relating to the issuance of such special revenue bonds and other bonds or debt obligations by a charter city in this State, in particular, the City. Section 12. It is intended that this Resolution shall constitute such "official action" toward the issuance of the bonds within the meaning of the United States Treasury #219 (et) 2/12/82 13 San Bernardino 50,002-1-4 Regulations, the United States Tax Laws, and any legislation now or hereafter pending in the Congress of the United States which may require official action in order for the bonds to be exempt from Federal income taxation. Section 13. At the closing of the financing there shall be paid to the City the fee set forth in Resolution No. 81-08 of the Mayor and Common Council, adopted March 13, 1981. APPROVED AND ADOPTED tt 1981. (SEAL) ATTEST: City Clerk of the City of San Bernardino, California 14 California #219 (et) 2/12/82 I HEREBY CERTIFY that the foregoing resolution was duly adopted by the Mayor and Common Council of the City of San Bernardino at a regular meeting thereof, held on the 15th day of February , 1982, by the following vote, to -wit: AYES: Council Members Castaneda, Reilly, Botts, Hobbs, Strickler NAYS: None ABSENT: None Abstain: Council Member Hernandez The foregoing resolution is hereby approved this day Of 1982. Approved as to form: City Attorney