HomeMy WebLinkAboutR22-Economic Development Agency
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DBVELOPIIEIlT DBPAR'.DII51'rJ: OF TIlE
CITY OF SAB BEIlIUmllBO
REQUEST FOR COIlMISSIOB/CODWCIL ACTIOB
From:
KEImETH J. HENDERSON
Executive Director
Subject:
SISTERS OF CJWUTY
IDB BOlD ISSUE OF 1991
Date:
JlDle 12, 1991
Synopsis of Previous ComBission/Counci1/ComBittee Action:
On January 19, 1987, the Mayor and Common COlDlci1 adopted Resolution
Number 87-14 approvina the issuance of Industrial Development Revenue
ReflDldina Bonds, Series 1987A, Sisters of Charity.
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Recommended Motion:
(Mavor and Common Cnnn..i1)
RESOLUTIOB OF TIlE MAYOR AID COMMOB COUBCIL OF TIlE CITY OF
SAB BEIlIUmllBO APPROVIBG AI' APPLlCATIOB FOR IlIDUSTIlIAL
DBVELOPIIEIlT BOlD FIBABCIBGj DIRECTIBG TIlE PIlEPAIlATIOB OF
CBIlTAIB DOClJloIurS j AID MADBG CBIlTAIB 0TIIEIl FIlIDIBGS AID
DETBRMIlIATIOB II' COBllBCTIOB Y~TH (SISTERS OF CIIAIlITY OF
TIlE II'CAIlIIATB WOIlD, BOUSroB, TEXAS, SOLE COIlPOIlATB MEMBEk OF
ST. R1WIIAIIDIKB MEDICAL W5ftyu).
(Recommended Motions Continued on But pqe)
Acblinistrator
, Executive Director
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Contact Person:
Ken Henderson/Barbara Lindseth
Phone:
5065: 5081
Project Area:
N/A
Ward(s):
Supportina Data Attached:
FUNDING REQUIREMENTS:
Staff ReDort: Resolutions.
AmOlDlt: * N/ A Source:
N/A
BUdget Authority:
Commission/Council Botes:
KJH:b1:1467A
ClMlISSIOB MEBTIBG
Meet1na Date: 06/17/1991
Agenda It_ 1'0. ..4.-
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DBVELOPIIBB'r DBPAJwouuu
REQUEST FOR COUlllCIL/COIMISSIOR/ACTIOR
SISTERS OF CHARITY - IRDUSrRIAL DBVELOPIIBB'r
BOB>> ISSUE OF 1991
J1Dle 13, 1991
Paae -2-
Recomaended Motion:
(lIavor and C--on C01Dlcil)
RESOLUTIOR OF TIll IIlYOR ARD COMMOR COUlIICIL OF TIll CITY OF SAR
BBRlWmlRO, CALlFORRIA, DBCLARIIlG ITS IIITBlIT TO ISSUE BOB>>S ARD
AUTHORIZING TIll PUBLlCATIOR OF A ROTICB OF PUBLIC IlBARING REGARDING
TIll PROPOSED ISSUAlICB OF ITS "CITY OF SAN R1nPW&IIntRO, CALlFORRIA, SCB
REALrB CAB SYSrBII RBVBIIUE BORDS (SISTERS OF CHARITY OF TIll IRCARRATE
wORD, HOUSTOR, TEXAS), SERIES 199IA"; IlAnRG CRllTUW nRDIlIGS ARD
DJl:mJuullATIORS IR CORRECTleR DII5ltI5llIrB (SISTERS OF CHARITY OF TIll
IIJr.AIlWA'I'\!: WORD, HOUSTOR, TEXAS, SOLE CORPORATE MBMBBR OF ST.
BBRlWmIRB IIBDlCAL ~~).
(Mayor ..... CODIon C01Dlcil)
rBAr TIll IIlYOR ARD COMMOR COUlIICIL SET A PUBLIC IlBARIRG OR JULY 10,
1991, Ar 9:00 A.M.
KJH:bl:1467A
COIMISSIOR IlEBrIllG
MeetiD& Date: 06/17/1991
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DEVELOPMDT DEPAR'lnAa.r
STAFF REPORT
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Sisters of Charitv - Industrial DevelonB~t Bond Issue of 1991
St. Bernardine Medical Center has submitted an Application to the City
for hospital revenue bond financing to finance certain new
construction, equipment acquisition, renovation expenses and
reimbursements for prior construction expenditures initially funded
with hospital funds. The list of the projects are as follows and total
approximately $58,800,000:
North Tower
This project involves the construction of a six-story building. The
services by floor are: (1) kitchen, cafeteria, meeting rooms; (2)
26=bed Critical Care Unit; (3) 14 LDRP, 20-bed Neo-Natal Unit; (4)
24-bed Neuro Unit, l2-bed IBtermediate Care Unit; (5) 36-bed
Medical-Surgical Unit; and (6) 36-bed Medical Surgical Unit. A new
lobby/entrance has been included in the project cost to connect the new
tower with the existing facility.
CaDi tal Additions/ParkinR GaraRe
Various capital additions for reimbursement of prior expenditures
during fiscal years 1990 and 1991 and proposed additions during fiscal
years 1991 and 1992. These major additions primarily consist of major
movable equipment including operating room monitors, catheterization
laboratory equipment upgrades, intravenous pumps, cardiopulmonary
bypass equipment, and a laboratory hematology analyzer. The
construction of a parking garage is also necessary for hospital
employees, patients and visitors.
Catherization Laboratorv Relocation
This project involves the relocation of the existing Catherization
Laboratory and the addition of a third room adjacent to the operating
room for improved service and quality.
Renovation
This project involves the remodeling of the 1974 Building. The
remodeling includes flooring finish upgrades, wall and ceiling
treatment and improved lighting.
Two resolutions are attached for consideration by the Mayor and Common
Council: (1) Resolution accepting the Application; (2) Resolution declaring
the intent of the City to proceed with the financing and setting a
T.E.F.R.A. hearing for July 10, 1991 at 9:00 a.m.. The T.E.F.R.A hearing
KJH:bl:1467A
ClRIISSIOK IlEETIKG
Meeting Date: 06/17/1991
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DEVELOPIIBRT DEPARuwn: STAFF REPORT
Sisters of Charity - IDB F1Danc1D&
June 13, 1991
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is required under the federal tax laws for bond issues of this mature.
Also, at the July 10 hearing, it is anticipated that the bond documents
will be approved so that a bond closing may occur by the end of July.
The City last issued bonds for the St. Bernardine Medical Center in
1987, utilizing a similar financing structure as is proposed at this
time. As with any financing of this nature for a non-profit hospital
corporation, the City has no responsibility for repayment of the bonds,
except from payments made to the City by the Hospital under the Loan
Agreement. The bondholders will seek repayment from St. Bernardine
Medical Center and the Sisters of Charity of the Incarnate WOrd,
HoUston, Texas, as the sole shareholder of St. Bernardine Medical
Center.
This financing is a part of a much larger composite bond offering that
is being issued simultaneously in Texas for several hospital facilities
in Texas by the Harris County Health Facilities Development
Corporation. It is necessary under the present schedule that the
Council meet on Wednesday, July 10, 1991, to consider the final
approvals of this financing at the conclusion of the public hearing.
I recommend approval of the Resolutions.
NU'IlUUJI J. II'I!II1IlnIl'I ,Bzecutive Director
Development Depar ent
KJH:bl:1467A
COtIMISSIOR MEETIIIG
Meet1D& Date: 06/17/1991
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO APPROVING AN APPLICATION FOR INDUSTRIAL
DEVELOPMENT BOND FINANCING; DIRECTING THE PREPARATION OF
CERTAIN DOCUMENTS; AND MAKING CERTAIN OTHER FINDINGS AND
DETERMINATIONS IN CONNECTION THEREWITH (SISTERS OF CHARITY
OF THE INCARNATE WORD, HOUSTON, TEXAS, SOLE CORPORATE
MEMBER OF ST. BERNARDINE MEDICAL CENTER)
WHEREAS, the City of San Bernardino, Callfornla ("City"), Is a
"home rule city" duly organized and existing under and pursuant to a
Charter adopted under the provisions of the Constitution of State of
CalIfornIa; and
WHEREAS, pursuant t~ Its home rule powers, the CIty duly and
regularly enacted Ordinance No. 3815 (the "Ordinance") 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
c::J projects, and has amended the same from tIme to time; and
HHEREAS, said Ordinance No. 3815, as amended, Is Intended to
fInance the development of Industry and commerce and to thereby broaden the
employment opportunItIes for resIdents of the CIty and Its tax and revenue
base; and
HHEREAS, there has been presented to thIs Mayor and Common
Council an Appll catIon, attached hereto as Exhl bit "A" and Incorporated
hereIn by reference by SIsters of CharIty of the Incarnate Word, Houston,
Texas, Sole Corporate Member of St. Bernardlne Medical Center
(the "Appllcant"), requestIng the Issuance of revenue bonds In the
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prIncIpal amount of not to exceed $60,000,000 for the purpose of fInancing,
on behalf of the ApplIcant, the cost and expense of certaIn health
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facilities located at St. Bernardine Medical Center and more fully described
o in Exhi bi t "B" attached hereto (the "Project").
NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND ORDERED BY
THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO AS FOLLOWS:
Section 1. That the recitals set forth hereinabove are true
and correct and are incorporated herein by this reference.
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.
c::> 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 construction and permanent 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.
Section 5. The Project referred to in the recitals hereof
constitutes a project which may be financed by the issuance of such special
revenue bonds by the City and located within the jurisdiction of the City.
Section 6.
The Application referred to in the recitals hereof
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complies with the provisions and requirements of said Ordinance No. 3815,
o as amended, and the Project Involved in such Application is hereby approved
and the provisIons of Subsection (d) of Section 10 and Subsection (a) of
Section 11 of said Ordinance No. 3815 shall not apply.
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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 amount as will be adequate to implement the City financing of the
Project.
Section 8.
The bonds shall be payable from the revenues
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described in said Ordinance No. 3815, as amended.
Section 9.
The bonds shall be and are special obligations of
the City, and, subject to the right of the City to apply moneys as provided
in the applicable laws, are secured by such revenues as are specified in
the proceedings for the issuance of such bonds and funds and accounts to
be held by the trustee or fiscal agent, and are payable as to principal,
redemption price, if any, and interest from the revenues of the City as
therein described. The bonds are not a debt of the City, the State of
CalifornIa or any of its political subdivisIons, and neither the City, the
State, nor any of its politIcal subdIvisions is liable thereon, nor in any
event shall the bonds be payable out of the funds or properties other than
all or any part of the revenues, mortgage loans, and funds and accounts as
in this Resolution set forth. The bonds do not constitute an indebtedness
within the meaning of any constitutIonal or statutory debt limitation or
restriction. Neither the persons serving as the Mayor and Common Council
nor any persons executing the bonds shall be liable personally on the bonds
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or subject to any personal liability or accountability by reason of the
Issuance thereof.
Section 10. The details of such bonds, Including the
estaollshment of the aggregate face amount of such obligations, shall be
authorized by Indenture, resolution or resolutions of the City at a meeting
or meetings to be held for such purposes. The City Staff. Sabo &
Green as Bond Counsel and Issuer's Counsel to the City, the Applicant
and the agents and representatives of same are hereby authorized
and directed to prepare or cause to be prepared the necessary
legal documents, Including the Loan Agreement. Resolution of Issuance,
and such other documents as may be necessary to effect said
Project and the issuance of revenue bonds therefor 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 as
reference above 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.
Section 12. It is intended that this Resolution shall
o constitute such "official actIon" toward the issuance of the bonds within
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the meaning of the United States Treasury Regulations, the United States
c::; 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. 81-108 of the Mayor
and Common Council, adopted March 13, 1981, as amended by Resolution No.
81-410, of the Mayor and Common Council. adopted September 24, 1981.
I HERE8Y CERTIFY that the foregoing Resolution was duly adopted
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by the Mayor and Common Counc!l of the City of San Bernardino at a
meeting thereof, held on the
day of
, 1991, by the following vote. to wit:
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AYES;
Council Members
NAYS:
ABSENT:
City Clerk.
The foregoing resolution Is hereby approved this
day of
. 1991.
Mayor of the City of
San Bernardino
Approved as to form and legal content:
JAMES F. PENMAN
City Attorney
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF SAN BERNARDINO )
ss
I. Cay Clerk. of the Cay of San
Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of Mayor
and Common Council of the City of San Bernardino Resolution No. is
a full, true and correct copy of that now on file in this office.
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the Mayor and Common Council of the City of San Bernardino
thi s day of , 1991.
City Clerk.
City of San Bernardino
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APPLICATION OF THE
ST. BERNARDINI!: MlmICAL CENT:RR
FOR INDUSTRIAL Rl!:V:RNtJ:R BOND FINANCING
PART I GENERAL AND BUSINESS INFORMATION
1.1 The legal name of the Applicant is "st. Bernardine Medical
Center".
1.2 The Applicant provides acute hospital services.
1.3 The mailing address and principal place of business of the
Applicant are as follows:
st. Bernardine Medical Center
2101 North Waterman Avenue
~an Bernardino, California 92404
1.4 Employer Tax I.D. No; 95-1643353.
1.5 The Principal contact for the Applicant is Gregory A. Adams.
1.6 Telephone Number (714) 883-8711 ex. 3111.
1.7
The Applicant is a hospital.
1.7.1
The Applicant is organized and existing pursuant to
the laws of the state of California.
1.7.2
The Applicant was duly organized on January 2,
1953.
1.7.3
Nature of Legal affiliations - Parent Company -
Sisters of Charity of the Incarnate Word, Houston,
Texas.
1.8 The Applicant is a non-profit corporation.
1.9 Key Officers and Directors of the Applicant.
1.9.1
Principal Officers:
Gregory A. Adams -
Sister Ruth Heffernan -
Sister Mary David O'Gorman -
(Presently Vacant) -
President
Treasurer
Secretary
Vice President
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1.9.2
Board of Directors:
Sam T. Knappenberger, M.D., - Chairman
I.J. Gabriel - Vice-Chairman
Thomas McPeters
Martin A. Matich
Anthony H. Evans, Ph. D.
Thomas Hellwiq, M.D.
I.H. crittenden, M.D.
Harold C. Harria, Jr.
Sister Mary David O'Gorman
Sister Christina Murphy
Gregory A. Adams
1.10 Description of other business affiliations of principal
officers, directors and stockholders:
Sam T. Knappenberger,
M.D. ,
UrOlogist on staff
(retired)
Retired Businessman
I. J. Gabriel
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Thomas McPeters
Attorney
Martin A. Matich
Owner-Construction
Company
President Cal-State,
San Bernardino
Anthony H. Evans, Ph. D.
Thomas Hellwig, M.D.
Internal Medicine ,
Pulmonary - on staff
Cardiologist-on staff
Retail Business
I.H. crittenden, M.D.
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Harold C. Harris, Jr.
Sister Mary David O'Gorman
Sister Christina Murphy
N/A
N/A
N/A
Greqory A. Adams
1.11 Employees
1.11.1
The Applicant has 1,730 employees as of June 6,
1991.
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1.11.2
The Applicant currently provides the following
services:
Hosnital Services
General Acute Care
Perinatal
Pediatric
Intensive Care
Coronary Care
Acute Psychiatric
other services
Basic Emergency
Radiation Therapy
outpatient Services Psych (BHS)
Social Services
Respiratory Care Services
Physical Tharapy
Occupational Therapy
Nuclear Medicine
Cardiovascular Surgery
Renal Transplant
LDRP Services
Mobile Lithotripsy
N.I.C.U. (June 19, 1991)
1.12 Expert Professional services in
Application for Industrial Revenue
provided by the following:
connection with this
Bond Pinancing will be
1.12.1
Ernst , Young shall serve as accountants for the
Applicant.
Vincent , Elkins shall serve as attorney for the
Applicant and the contact person with said firm is
Donald Howell at (716) 758-2318.
Sabo , Green, a Professional Corporation shall
serve as Bond Counsel to the City.
Principal Architect - Palick Xlein Partnership; and
Structural Engineer - W.D. Harrison , Associates.
Other.
1.12.2
1.12.3
1.12.4
1.12.5
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o 1.13 The principal bankinq accounts of the Applicant are held by:
Wells Farqo Bank
296 West Hiqhland Avenue
San Bernardino, CA 92405
Attn: Ms. Gloria Forqet, Vice President/Manaqer
citizen , Southern
6000 Feldwood Road, SS Center
Colleqe Park, Georqia 30349
Attn: Mr. Jeffe Lovejoy, Vice President
1.14 The source of fundinq for the Project will be from proceeds of
the proposed revenue bonds which will be used to reilllburse the
Applicant for prior qualified construction costs and to
complete the project acquisition and construction.
PART II BORD XSSUE
2.1 The estimated total omount of the financinq packaqe and the
proposed use of bond proceeds are as follows:
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Project cost - $58,800,000
Leqal, printinq and related fees - $1,200,000
Financinq costs and fees - (included within 2.1.2)
Capitalized interest - $-0-
Other miscellaneous costs - $-0-
Total: $60,000,000
2.2 The estimated tarqet date for the financinq of the Project by
initiatinq official action by the City on the proposed bond
issue is June 17, 1991; TEFRA haarinq to occur on July 10,
1991; and final approval of all bond issue documents to occur
on JUly 10, 1991.
2.1.2
2.1.1
2.1.3
2.1.4
2.1.5
2.3 It is proposed that the financinq for the Project will occur
no later than July 29 and 30 for a final closinq on the bond
issue.
2.4 The present proposal anticipates the issuance of revenue bonds
by the City under a Trust Indenture with a loan of the bond
proceeds to the Applicant throuqh a Loan Aqreement. The bond
financinq will comply with all federal and state requirements
for the issuance of bonds and the loan of such proceeds to a
501 (c) (3) non-profit hospital corporation by a municipal
corporation.
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o PART IU FINANCIAL INFORMATION
3.1 The audit reports and financial stat_ents as of June 30,
1990, for the Applicant are included as EXhibit wAw hereto,
and have been prepared by Ernst" Younq.
3.2 The Applicant is a hospital with 311 beds.
PART IV PROJECT INFORMATION
4.1 The Project as proposed by the Applicant will enable the
completion of a six-story addition to the Hospital,
construction of a new lObby/entrance, provide reimbursement of
certain costs incurred. in connection with the construction of
a parkinq structure, upqradinq and. relocatinq a
catheterization laboratory and a renovation of the 1974
Buildinq.
4.2 The components and th6 estiaated total' cost of the functional
parts of the Project are as follows:
4.2.1
4.2.2
Land - $-0-
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Buildinqs and equipment - $58,800,000
Equipment - (included within 4.2.2)
4.2.4 N/A
4.2.5 N/A
4.3 The estiaated construction period. for the completion of all
construction aspects of the Project is approximately six
months from the date of issuance of the bonds.
4.4 The supervisinq or consultinq engineer responsible for the
design of the Project on behalf of the Applicant will be W.D.
Harrison " Associates.
4.5 The Project site is located at 2101 North Waterman Avenue, San
Bernardino, California.
4.6 The Project is not a new location but is an expansion of
facilities at the Applicant's present location.
4.7 Leqal OWner of Project site is Sisters of Charity of the
Incarnate Word, Houston, Texas.
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4.8 The Project will provide the additional facilities and
equipment as set forth on Exhibit liB" to the Resolution
approving this Application.
4.9 N/A
4.10 The City of San Bernardino has issued all building permits as
required for the completion of the Project, and all other
discretionary approvals from the City have been obtained.
4.11 N/A
4.12 N/A
4.13 N/A
PAR'!' 31 PUBLIC BENEFITS
5.1 The proposed financing by the City will enable the Applicant
to fund necessary construction costs and equipment acquisition
to increase medical services to be rendered to residents of
the city and the area.
5.2 N/A
PART VI COMMITMEN'l'S
6.1 The Applicant by the sua-ission of this Applicant agrees to
comply andlor to assist the City in complying with all State
and federal laws in the issuance of the bonds or other such
tax-exempt obligations to finance the Project, inClUding,
without liaitation, .&king of any required application to a
governaental department, for authorization, qualification or
registration of the offer, issuance or sale of the bonds or
other tax-exempt obligations, and any emendments thereto, and
any perait or other authorization of such governaental
department, prior to the delivery by the City of such bonds or
other tax-exempt obligations.
6.2 The Applicant further cOllllits to cause andlor to assist the
City in causing to be printed any prospectus or other written
or printed cOllllunication proposed to be published in
connection with the issuance, offer or sale of bonds or other
tax-exempt obligations, prior to the delivery by the City of
such bonds or other tax-exempt obligations, and, to the extent
deemed necessary by the City, following delivery of such bonds
or other tax-exempt obligations.
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6.3 The Applicant also commits to pay all expenses in connection
with the issuance, offer or sale of the bonds or other tax-
exempt obligations, wbether or not such bonds or other tax-
exempt obligations are finally issued, and to bold the .City
banaless froll any and all expenses related thereto, to pay
it... on an ongoing basis so that neither the City, nor its
advisors, attorneys, employees and the like will accumulate
any claims against the city.
6.4 The Applicant will supply any additional information,
agre_ents and undertakings as the City may require as a
result of conferences and negotiations wbich will be
reproduced and supplied to the City and wbich sball be de_ed
as supplements or amendments to this Application.
PART VII SIGNATURE
7.1 'lbe undersigned as authorized officers of the Applicant as
noted below are the officers of the .Applicant bolding the
prime responsibility:for the financing to be taken for the
proposed Project, and each certifies that such person bas the
author! ty to bind the APplicant to contract terms; that this
Application to the best knowledge or belief of the
undersigned, contains no false or incorrect information or
data, and this Application, including exhibits and attachments
bereto, is truly descriptive of the proposed Project. The
undersigned also represents by the execution of this
APplication familiarity with ordinance No. 3815, as amended,
of the city of San Bernardino.
PART VIII FEE SCHEDULE
8.1 The Applicant acknowledges that the City requires a non-
refundable application fee of $50 for each project to be
considered for eligibility, to be paid wben the basic
documents are requested. With the .ubmittal of this
Application, $500 is payable to the City. If this Application
is accepted, an additional fee of $10,000 is payable for
administrative costs. The Applicant acknowledges that the
cOllllitments in Part VI above are in addition to these fixed
amount.. Thus, in the event that no clo.ing occurs, the City
sball be reimbursed for its processing costs.
8.2 All fee. of the City may be capitalized and included in the
bond issue as acceptable to the bond purchaser.
8.3 The Applicant acknowledge. that the City derives its entire
support froll the fees for the .ervice. to be provided in
processing this Application. The total function of the city
in processing this Application is conducted on a se1f-
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.upporting basis, and involves no State general revenues or
expenditures from taxes from the .tate or any of it. political
.ubdivisions. No indebtedne.s or taxing power of the City is
involved in connection with thi. financing program. Project
revenue. are the .ole .ecurity for bond. of the city. The
federal guarantee., if any, enhance the.e revenues and income
and the .ecurity of the bonds.
Pur.uant to Resolution No. 81-108 of the city, a. amended by
Re.olution No. 81-410 of the City, one percent (1\) of the
principal amount of the bond i.sue sball be deposited in the
city Trea.ury in the Industrial Revenue Bond Reserve and
Developaent Fund, wbich .ball be u.ed in such manner as the
Mayor and Common Council aay direct from time to time.
"APPLICANT"
.'
... ~rIlB MEDICAL Cl!Il'rIlR
By: ~;;JM( .
?~:hJ
Title:
1IIIO\DI0lIID0CIM.
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1IIIO\DI0lIID0CIM.
_11. 1991
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Exhibit WAR
(Attach Financial statement of Applicant)
[On file with I.suer'. Counsel]
_11. 1'91
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EXHIBIT "8"
J:)2f1eRYP'J'rox OJ' PR~eT
Thb proj.ct inVOlv.. the oonatZ'uction of a aix-atozoy bullcUnc;. .
Tha a.Z'Vlo.. })y floor are: (1) Jcitohen, caf.taria, ..ating roOllUl;
(2) U-bad CZ'iUc.l Car. Unit; (3) 14 IDRP, 20-bad H.o-Nat.l
unit; (4) a4-bad Hauro Unit, 12-bad IntUlladiata Care Unit;
(5) 3&-bad Madical-surgio.l Unit; and (I) "-bad Medic.l-Surgical
unit. A nn lobby/entrance h.. been included in tha projaot oo.t
to connaot tha naw tower with tha axbting facility.
Capital Addition./parking Garaga
VaZ'i0U8 capit.l addition. for r.1abur.aent of prior axpenditure.
during fiacal year. U'O and lit! anel propo.ed additiona durinq
fiacel yaara 1"1 and 11'2. Th..e "'or adelitiona primarily
oonaiat of Illljor aovabl. ~ipaent 1riclueliD9 operatinq rOOlll
ionitor., cathataZ'iution can, cathataZ'ization labOratory.
aquipaant upgrad.., 1ntravanoua puap., cardicPulllonazoy byp....
.quipment, ancl a laboratory hnatoloqy analyzer. Tbe
coh8truction of a parkiD9 garag. i. al.o n.c....ry for hospital
amploya.., patient. and vbitor..
e.~h.~.riza~f~n Labftr.~orv R.loca~ion
Thi. proj.ct inVOlve. the r.location of the exiatin9
catheterization La1)oratozoy and the addition of a third roa
adj.cent to the oparatiD9 rooa for iaprovad .ervice and quality.
RAfteVll~ion
Thi. proj.ct involv.. the raaodalinq of the 1174 Buildtnq. The
rUlOdelinq includ.. flooriD9 fini.h upgrada., wall and c.iling
tr.atalent and !aprovad H;htinq.
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RESOLUTION NO.
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF
SAN BERNARDINO, CALIFORNIA, DECLARING ITS INTENT TO ISSUE
BONDS AND AUTHORIZING THE PUBLICATION OF A NOTICE OF
PUBLIC HEARING REGARDING THE PROPOSED ISSUANCE OF ITS
"CITY OF SAN BERNARDINO, CALIFORNIA, SCH HEALTH CARE
SYSTEM REVENUE BONDS (SISTERS OF CHARITY OF THE INCARNATE
WORD, HOUSTON. TEXAS), SERIES 1991A"; MAKING CERTAIN
FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH.
(SISTERS OF CHARITY OF THE INCARNATE WORD, HOUSTON.
TEXAS, SOLE CORPORATE MEMBER OF ST. BERNARDINE MEDICAL
CENTER)
WHEREAS, the City of San Bernardino. California (the "City"), Is a
charter 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 the powers provided for within the Charter. the
City duly and regularly enacted Ordlnance No. 3B15, as amended (the
"Ordinance"). to finance various types of projects, as defined In the
Ordinance. and to Issue Its special revenue bonds for the purpose of paying
the costs of financing such ~rojects; and
WHEREAS. there was filed with the City an Application (the
"Application") pursuant to the provisions of the Ordinance by Sisters of
Charity of the Incarnate Word, Houston, Texas, Sole Corporate Member of St.
Bernardlne Medical Center (referred to herein as the "Company" or
"Sisters of Charity Hospital") requesting the Issuance of revenue bonds for
the purpose of financing the cost and expense of certain health facilities
located at St. Bernardlne HospItal and more fully described In Exhibit "A"
attached hereto (the "Project"); and
WHEREAS, the Company has requested that the City adopt a bond
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reso1utlon with respect to the bonds or take some other similar offlcia1
c::; action toward the issuance of such bonds prior to the commencement of
construction of acquisition of such health facl1ities; and
WHEREAS. the Internal Revenue Code of 1986, as amended (the "Code").
requires that both the issuance of the revenue bonds and the Project to be
financed with such bonds be approved by an elected representative of the City
after a public hearing; and
WHEREAS, the City Clerk must cause notice of such hearing to be
published once following at least fourteen (14) days' notice substantially
In the form attached hereto as Exhibit "8".
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NOH. THEREFORE, THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, CALIFORNIA, DO HEREBY FIND, RESOLVE, DETERMINE AND ORDER AS
FOLLOWS:
Section 1. The recitals hereinabove are true and correct and are
incorporated herein by this reference.
Section 2. The Company's Application has been reviewed and the
plan of financing has been found to comply with the spirit, Intent and
provisions of the Ordinance, as amended, and the City has determined to
proceed with the financing. The City hereby declares Its Intent to Issue and
sell Its SCH Health Care System Revenue Bonds (Sisters of Charity of the
Incarnate Word, Houston, Texas), Series 1991A (the "Bonds") pursuant to the
provlslons of California law In a principal amount sufflclent to pay all or
part of the cost of acquiring and constructing the Project. The Bonds will be
Issued and sold In an aggregate prlnclpa1 amount (excluding bonds Issued to
c::; refund any of the Bonds) now estImated to be not more than $60,000.000.
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Section 3. The Company may commence with the acquisition and
c::> construction of the Project, which Project will be in furtherance of the
public purposes of the City, and the Company will provide, or cause to be
provided, at its expense, the necessary Interim financing to expedite the
commencement of the acquisition and construction of the Project. On or prior
to the issuance of the Bonds, the Company will enter into a purchase, lease or
loan agreement on an installment payment basis (herein called the "Agreement")
with the City under which the City will sell or lease the Project to the
Company or make a loan to the Company for the purpose of providing temporary
or permanent financing of all or part of the costs of the Project and the
Company will make installment.payments sufficient to pay the principal of and
any premium and interest on such Bonds. The Bonds shall be special
obligations of the City and shall not be deemed to constitute a debt or
liability of the City or a pledge of the faith and credit of the City, but
c::; shall be payable solely from the payments received under the terms of the
purchase, lease or loan agreement. The issuance of such Bonds shall not
directly or indirectly or contingently obligate the City to levy or pledge any
form of taxation whatsoever therefor or to make any appropriation for their
payment.
Section 4. The City hereby declares Its intent to issue,
pursuant to the terms of the Ordinance, the Bonds, or from time to time the
portion thereof as may be the subject of an opinion of nationally recognized
bond counsel that interest paid on the Bonds or any portion thereof is exempt
from federal income taxation, in an appropriate principal amount not exceeding
that which is the subject of an opinion as aforesaid, maturing in such amount
and times, bearing interest at the rates, payable on the dates and having such
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optional and mandatory redemption features and prices as are approved In
<::) writing by the Company. The City will deliver the Bonds to the purchaser
designated by the Company and will cooperate to the fullest -extent in
facilitating delivery of the Bonds. The proceeds of the Bonds shall not be
Invested so as to constitute the Bonds as arbitrage bonds within the meaning
of Section 148 of the Code and applicable regulations promulgated pursuant
thereto.
Section 5. The payment of the principal of and premium and
Interest on the Bonds shall be made solely from moneys realized from the sale
or l&ase of the Project or from moneys realized from the loan of the proceeds
of the Bonds to finance all of part of the costs of the Project.
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Section 6. Pursuant to the Code, the Notice of Public Hearing,
attached hereto as Exhl bit "B" and hereby made a part hereof, I s author! zed
and directed to be published in The Sun by one (1) publication at least
fourteen (14) days prior to the date of the public hearing to be established
by the City Clerk.
Section 7. This Resolution shall be deemed and construed as a
resolution declaring the Intent of the City to provide for the Issuance of the
aforesaid Bonds or some other simIlar officIal action toward the Issuance of
the Bonds withIn the meaning of 26 C.F.R. Section 1.103-8 (a) (5).
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RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO,
CALIFORNIA, DECLARING ITS INTENT TO ISSUE BONDS AND AUTHORIZING THE
PUBLICATION OF A NOTICE OF PUBLIC HEARING REGARDING THE PROPOSED ISSUANCE OF
ITS "CITY OF SAN BERNARDINO, CALIFORNIA, SCH HEALTH CARE SYSTEM REVENUE BONDS
(SISTERS OF CHARITY OF THE INCARNATE WORD, HOUSTON, TEXAS>, SERIES 1991A";
MAKING CERTAIN FINDINGS AND DETERMINATIONS IN CONNECTION THEREWITH. (SISTERS
OF CHARITY OF THE INCARNATE WORD, HOUSTON, TEXAS, SOLE CORPORATE MEMBER OF ST.
BERNARDINE MEDICAL CENTER>
Section 8.
The findings and determinations herein shall be final
and conclusive. This Resolution shall take effect upon the date of Its
adoption.
I HERE8Y CERTIFY that the foregoing Resolution was duly adopted by
the Mayor and Common Council of the City of San BernardIno at
a
meeting thereof, held on the
, 1991, by the following vote, to wit:
day
of
,
AYES: Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution Is hereby approved thIs
day of
. 1991.
Mayor of the City of
San Bernardino
Approved as to form and legal content:
JAMES F. PENMAN
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STATE OF CALIFORNIA )
COUNTY OF SAN BERNARDINO )
CITY OF SAN BERNARDINO )
I, City Clerk of the City of San
Bernardino, DO HEREBY CERTIFY that the foregoing and attached copy of Mayor
and Common Council of the City of San Bernardino Resolution No. Is
a full, true and correct copy of that now on flle In thls office.
ss
IN WITNESS WHEREOF, I have hereunto set my hand and affixed the
official seal of the Mayor and Common Council of the City of San Bernardlno
this day of . 1991.
City Clerk
City of San Bernardino
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JUN 1 '91 11i!:1i!7FIM SABt) GREEN
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EXHIBIT "A"
D8.ar~B~f~ft ~~ ~. PrC1Aot
Norlh '1Iowar
Thi. project involva. the conatruc:tion of a dx-.1:ory bulldinq.
Th. ..rvica. by floor aral (1) kitchan, cat.teria, ..eti1\9 room.;
(2) 2CI-bed critical ear. unit; (3) 14 LDRP, 20-bed Hao-Natal
unit 1 (4) 24-Hc! H.uro unit, 12-Hc! Interaadiate eare unit;
(!I) 3'-bed M.dical-SUZVical Unitl and (') 3'-bed Hedical-.ur9ical
unit. A naw lobby/entrance has been included in the proj.ct cost
1:0 connect tha n.w tower with tha exi.tift9 facllit.y.
eaBi~.l A44i~lc"./P.rkiftn a.~.a.
Various capit.al additions for r.iJabur....nt. of prior expenditur..
clurift9 fi.cal y.ar. 151.0 and 1991 and propo..d a44it.iona durin;
fiscal year. 1.U a~ 1"2. Th... majot' addit.ion. primarlly
consist of ..jor aovabl. equipaent. inoludin; oparatift9 room'
lIonitor., cathet.rization can, catheterbation laboratory'
.~iplMnt uPlJradas, intravenous puJIlp., cardiopulaonary bypass
e~iplHnt, and a labora1:ory hematolO9Y analy.ar. The
con.truction of . parklft9 9arage 1. al.o nec...ary tor ho.pital
eaploy.e., patient. and vi.itor..
C.~h.t.riz.~loft Lahor.~ftrv Raloaa~ion
Thi. projec:t involv.. the relocation of the exi.tin9
C&th.terbation Laboratory and tha addition of a third room
adjacent to the operatin9 t'00II for illprove4 .ervice and ~11ty.
R8"tw.~lon
Thi. project inVOlve. the roo4a11n9 of the 1974 8ulldini. The
rea04.lin9 include. tlcorift9 fini.b upgrade., wall and ce1l1n;
tr..bent and illproved 119btin9.
.,,11.,,111.. ;). """"lI::.Ift"'WI ;:l~v 61 ,=,~r..,
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EXHIBIT "B"
HOT'I~~ 01' PttRT...:rt! If'IP.&ttYNG
NOTICE OF PUB:E.ICl HJWtIHe !rO IE HELD IN AClCORDANCB WITH
SECTION 147(f) or THE INTERKAL UVENtJB CODE or 1986, AS
AMENDED, BY THE MAYOR AND ClOIIMON COtlHClIL Or'l'HE CITY OF
SAN BERNARDINO, CA:E.IFORNIA, ON BI:HAI.P or 'l'HE CITY OF
SAN BERNARDINO, CA:E.IPORHIA FOR 'l'HE EXEeU'1'ION AND
DELIVDY or CERTA:EN RBVENUE BONDS :EN AN MeUeA.'!'!
PRINCIPAL .AIIOtlHT HOT !rO EXCEED $60,000,000 FOR 'l'HE
BBHUIT or SI8'rZR8 OF CIWtI'l'Y OF THE INCARNATB WORD,
HOUSTON, 'l'IXAs (S'1'. BERNARDIHE MEDICAL CEIf1'Jl:R)
Rotice i8 hereby 'liven that on July 10, un, at ':00 A.M., or a.
aoon thereafter a. the uttar ..y be heard, the Mayor and Common
j:ouncU of the City of San Bernardino, California (the "Council")
on behalf of the City of San Bernardino, California (the "City")
will conduct a h..ring wbii::b ehall be open to the public at the:
Council Chaabera, City Hall, 300 North "D" Street,
San Bernardino, california '2418, for the purpo.e a. hereinafter
.et forth.
'1'be purpos. of said public hearinq 1:0 be bald in accordance with
Seotion 147 (f) of the Internal Revenue Code of 1,.6, a. ..ended
(the "Cod."), i. to con.ider the city's authorization 1:0 exeoute
and deliver certain revanue bond. (the "Bonda") in ana'l9reqate
principal uount not 1:0 exoeed $'0,000,000 to provide fund. for
the finanoinq of the development of certain bea1th faci1itie.
(the "Project"), Whii::b 18 de.oribe4 a. follow.:
A. De.crip'tion:
Korth ~owAr
Thi. project involves the con.truction of a six-.tory
buUdin'l. The aarviou by floor ares (1) kitchen,
oafataria, ...ting 1'OO3IS1 (2) 2I-bed Critical Care Unit;
(3) 14 LDRP, 20-bed Neo-Ratal Unit, (4) 24-bed Bauro Unit,
12-bed Intermediate Care Unitl (5) 36-bed Medica1-Survical
Unit I and (6) '.-bed lledica1-survica1 Unit. A new
lobby/entrance baa been included in tbe project co.t to
connect tha new tower with the ex1ating facility.
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C~~i~al Addi~ieft./Parkift8 Caraue
Various capital additions for r.1abur....nt of prior
expenditur.. duri"9 fi.cal year. U90 and 1991 and propo.ed
additions duri"9 fi.cal year. 1"1 and 1"2. The.e major
addition. primarily oond.t of major .ovul. equipment
inclucUng operating room monitor., oatheterbation can,
catheterization lUoratory equipllent upgrade., intravenous'
pump., cardicpulmonary bypa.. .quipment, and a laboratory
ham.tolO9Y analyzer. The construction ot a parking garage
i. al.o nece..ary fer ho.pital employee., patient. and
visitor..
Cath.~.ri~Atie~ Lahara~orv Raloeatiftft
Th1e project inVOlve. the relocation of the exi.ting
eath.teriution Laboratory and the addition of a third roOlll
adjacent to the operating room for improved servioe and
quality.
Ilenovll~ioft
This project inVOlve. the r.moc1eling- ct the 1974 luilcUng.
The remodeling include. flooring fini.h upgrades, wall and
ceiling- treat:lllent and improved lighting.
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20 The Bond. will be exeouted and delivered in an aggr"Vate
principal amount pre..ntly e.timated at approximately
21 $60,000,000, the proceed. ot which will be U.ed to finance tha
acqui.ition, cOlUltruction, equipping and operation of the
22 Project, including- the ):)uildin9., furniture, fixture. and
aqulpaant compriainCJ the Project and the reim):)ur...ent to the
2S owner for certain prior expenditure. in connection with the
Project.
24 All person. inter..ted in the .eject matter and the pelic
25 purpo... and the pelic benetits and the execution and delivery
of the Bond. of participation in an a;9t'eCJate principal amount
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B. MaXimUIII lond
Proceed. :
$60,000,000
c. owner:
si.tera of Charity of the
Incarnate Word, Houston, Texa.
D. Project
str.et Mcsre..,
st. Bernardine Medical Center
2101 North Waterman Avenue
San Bernardino, calitornia 92404
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JUN 1 '91 10:08AM Sl'lBQGREE:N
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not: 'to exceed $60,000,000 .ay attend .uCh hearinq at the ti.e and
01\ 'the Hot. a. abov. .eot t,,~U. .nIJ./ur .tJ.1_ U'II.Lr wrll.l.llU' U\llIIlIl...I..
'thereto in the manner hereinarter .et forth.
Any per.on pre.ent at the he.ring .ball bave the opportunity to
be beard on the question Of the City's au'tboriaation to .xecute
and deliver the propo..eS BoneS.. Any person who wbbe. to pre.ent
written oommen't. 'to be .ummari.ed at the bearing may eSo .0 ~
deli verin; the .a.e to the attention of Rachel Kra.ney at the
City Clerk'. office at the City'. acScSre.. noteeS above, for
receipt prior to the clo.e of the b.arinq.
'l'hb not:ice i. beinq c;iven, ancS the bearinc; beinc; beleS, pur.uant
to the requirements of Section 147 (f) of the CocSe.
Dated: June 17, 1991
CITY OF SAN BERNAlmINO, CALIFORNIA
By:
Title.
.. OOot\DOC\4'7Nt
0f/I2It1
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