HomeMy WebLinkAboutR11-Redevelopment Agency
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AGENCY-Il:)uEST FOR o-ISSION/COUNCIL Ac:.AoN
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. From: Glenda Saul, Executive Director
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.........,t: Redevelopment Agency
Subject: SAN BERNARDINO COMMUNITY
HOSPITAL - AUTHORIZING THE
ISSUANCE AND SALE OF BONDS;
AGREEMENT FOR BOND SERVICES
Date: November 22, 1985
Synopsis of Previous Commission/Council action:
12/19/83 Adopted Resolution 83-446
11/18/85 Adopted Resolution 85-472 - inducement resolution
Recommended motion:
(Mayor and Common Council)
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a. RESOLUTION ____ OF THE COMMON COUNCIL OF THE CITY OF SAN BERNARDINO,
AUTHORIZING THE ISSUANCE AND SALE OF CITY OF SAN BERNARDINO INSURED HOSPITAL
REVENUE BONDS (SAN BERNARDINO COMMUNITY HOSPITAL), SERIES 1985A, THE
EXEUCTION AND DELIVERY OF AN INDENTURE, LOAN AGREEMENT, BOND PURCHASE
CONTRACT, OFFICIAL STATEMENT, REGULATORY AGREEMENT, AND CONTRACT OF
INSURANCE, AND APPROVING A DEED OF TRUST AND AUTHORIZING CERTAIN OTHER
ACTIONS IN CONNECTION THEREWITH
b. FESbLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND DIRECTING EXECUTION
OF AN AGREEMENT FOR BOND COUNSEL SERVICES WITH ORRICK, HERRINGTON, &
SUTCLIFF.
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Glenda Saul
Contact person:
Supporting data attached:
YES
Phone: 383-5081
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Ward:
FUNDING REQUIREMENTS:
Amount: $
N/A
NW
Projact :
December 2, 1985
Date:
No adverse Impact on City:
CilCil Notes:
0855K/EB
12/2/85 Agenda Item
No. f.'; /
CI'O OF SAN BERNAADC:O - REQUOT FOR COUNCIL AC\A>>N
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75-0264
STAFF REPORT
On November 18, 1985, the Mayor and Common Council adopted Resolution
85-472 inducing the project for bond financing. The resolution before
you today authorizes the issuance and sale of the bonds and the execution
and delivery of certain bond documents. These documents include:
Regulatory Agreement between the hospital and the City;
Contract of Insurance among the hospital, City and the Office of
Statewide Health Planning & Development of the State of California;
Deed of Trust between the hospital and Ticor Title Insurance Company;
Indenture between the City and the trustee.
A TEFRA public hearing was not required for this bond issue since the
hospital and project are public, nonprofit concerns.
The .second action before you is to authorize execution of the agreement
with Orrick, Herrington & Sutcliffe to act as bond counsel for this
issue. The office of Sabo & Gondek will act as special counsel to the
City for the issue.
Below is a recap of the application:
Principals:
Ray Barton III, Secretary
Amount of financing:
Not to exceed $40,000,000
Target date of financing:
December 1985
Project:
Moderization of a 322-bed acute health
care facility; construction of a
five-story steel/concrete medical
facility; acquisition of related medical
systems and equipment
Construction schedule:
18 to 24 months from the commencement of
construction
Location:
1500 West 17th Street, San Bernardino
Jobs:
Maintain 1,078 present positions
Estimated Tax increase:
Applicant is a nonprofit corporation and
is exempt from property tax
IDB reserve & development fee:
1% x $40,000,000 = $400,000
Trustee:
Security Pacific National Bank
Interest Rate:
Not to exceed 12 percent
0855K/EB
12/2/85
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RESOLUTION NO.
OF THE COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO, AUTHORIZING THE ISSUANCE AND SALE
OF CITY OF SAN BERNARDINO INSURED HOSPITAL
REVENUE BONDS (SAN BERNARDINO COMMUNITY
HOSPITAL), SERIES 1985A, THE EXECUTION AND
DELIVERY OF AN INDENTURE, LOAN AGREEMENT,
BOND PURCHASE CONTRACT, OFFICIAL STATEMENT,
REGULATORY AGREEMENT, AND CONTRACT OF
INSURANCE, AND APPROVING A DEED OF TRUST AND
AUTHORIZING CERTAIN OTHER ACTIONS IN
CONNECTION THEREWITH.
WHEREAS, the City of San Bernardino (the "City") is
a municipal corporation and charter city, duly organized and
existing under a freeholders' charter, pursuant to which the
City has the right and power to make and enforce all laws and
regulations in respect to municipal affairs and certain other
matters in accordance with, and as more particularly provided
in, Sections 3, 5 and 7 of Article XI of the Constitution of
the State of California and Section 40 of the Charter of the
City (the "Charter");
WHEREAS, the Common Council of the City (the
"Council"), acting under and pursuant to the powers reserved
to the City under Sections 3, 5 and 7 of Article XI of the
Constitution of the State of California and Section 40 of the
Charter, has established by the adoption of Ordinance
No. 3815 of the City, as amended (the "Law") and its
resolution No. 85-260, a procedure for the authorization,
issuance and sale of revenue bonds by the City, for the
purpose, inter alia, of providing financing for health
facilities as specified therein;
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WHEREAS, the City has determined to engage in a
program of making loans to health facilities pursuant to the
Law, and has determined to borrow money for such purpose by
the issuance of revenue bonds, as authorized by Law;
WHEREAS, the Council has, by Resolution No.
adopted by the Council on November 18, 1985, given
preliminary approval to the issuance of such bonds to fund a
loan to San Bernardino Community Hospital (the "Corporation")
to finance construction of an expansion to the acute care
hospital owned by the Corporation and located in the City, to
refinance certain existing debts of the Corporation and to
finance the purchase of certain capital equipment for the
Corporation's health facility;
WHEREAS, the City has further determined to issue
such revenue bonds, designated as "City of San Bernardino
Insured Hospital Revenue Bonds (San Bernardino Community
Hospital), Series 1985A" (the "Bonds"), in an aggregate
principal amount not to exceed thirty-five millions dollars
($35,000,000) for the above-stated purpose, said Bonds to be
insured by the California Office of Statewide Health Planning
and Development (the "Office"), pursuant to Chapter 4,
Part 1, Division 1 of the Health & Safety Code, cited as the
"California Health Facility Construction Loan Insurance Law;"
WHEREAS, assisting in the financing of health
facilities promotes the purposes of the Law, is in the public
interest, serves a public purpose, promotes the health,
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welfare and safety of the citizens of the City, and
constitutes a municipal affair;
WHEREAS, all acts, conditions and thinqs required
by the Law, and by all other laws of the State of California,
to exist, have happened and have been performed pursuant to
and in connection with the issuance of the Bonds, exist, have
happened, and have been performed in reqular and due time,
form and manner, as required by law, and the City of San
Bernardino is now duly authorized and empowered, pursuant to
each and every requirement of law, to issue the Bonds for the
purpose, in the manner and upon the terms herein provided;
NOW, THEREFORE, BE IT RESOLVED by the Common
Council of the City of San Bernardino, as follows:
Section 1. The Council does hereby find and
declare that the above recitals are true and correct and that
the issuance of the Bonds is a municipal affair and a proper
public purpose.
Section 2. Pursuant to the Law, the Bonds shall be
issued in an aqqreqate principal amount not to exceed
thirty-five million dollars ($35,000,000).
Section 3. The proposed form of indenture, dated
as of November 1, 1985, between the City and Security Pacific
National Bank, as trustee (the "Indenture"), presented at
this meetinq, is hereby approved. The Mayor, City Manaqer or
the authorized representative of either of them and City
Clerk or Deputy City Clerk are hereby authorized an directed,
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for and in the name of and on behalf of the City, to execute,
acknowledge and deliver to the Trustee an Indenture in
substantially said form, with such changes therein as the
officers executing the same, with the advice of the City
Attorney, may approve, such approval to be conclusively
evidenced by the execution and delivery thereof. The date,
maturity dates, interest rate or rates, interest payment
dates, denominations, forms, registration privileges, manner
of execution, place or places of payment, terms of redemption
and other terms of the Bonds shall be as provided in said
Indenture as finally executed.
Section 4. Security Pacific National Bank, San
Francisco, California, is hereby appointed as Trustee for the
City and the holders of the Bonds, with the duties and powers
of such Trustee as set forth in the Indenture.
Section 5. The proposed form of loan agreement,
dated as of November 1, 1985, between the City and the
Corporation (the "Loan Agreement"), presented at this
meeting, is hereby approved. The Mayor, City Manager or the
authorized representative of either of them and the City
Clerk or Deputy City Clerk are hereby authorized and directed
to execute and deliver such Loan Agreement, for and in the
name of and on behalf of the City, with such changes therein
as the officers executing the same, with the advice of the
City Attorney, may approve, such approval to be conclusively
evidenced by the execution and delivery thereof.
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Section 6. The proposed form of bond purchase
contract, to be dated as of the date of the sale of the
Bonds, between the City and Dean Witter Reynolds Inc. (the
"Bond Purchase Contract"), presented at this meeting, is
hereby approved. The Mayor, City Manager or the authorized
representative of either of them is hereby authorized and
directed to approve the final terms of the sale of the Bonds,
provided that the net interest cost of the Bonds shall not
exceed twelve percent (12%), and to evidence the City's
acceptance of the offer made thereby by executing and
delivering the Bond Purchase Contract, in substantially said
form, with such changes therein as the officer executing the
same, with the advice of the City Attorney, may require or
approve, such approval to be conclusively evidenced by the
execution and delivery thereof.
Section 7. The proposed form of official statement
to be used in connection with the offer and sale of the Bonds
(the "Official Statement"), presented at this meeting, is
hereby adopted and approved. The Mayor, City Manager or the
authorized representative of either of them is hereby
authorized and directed to execute and deliver the same, with
such changes therein as the officer executing the same, with
the advice of the City Attorney, may require or approve, such
approval being conclusively evidenced by the execution and
delivery thereof. Dean Witter Reynolds Inc. is hereby
authorized to distribute copies of the Official Statement in
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preliminary form and to distribute copies of the Official
Statement as finally executed, to persons who may be
interested in the purchase of the Bonds, and is directed to
deliver such copies to all actual purchasers of the Bonds.
Section 8. The proposed form of deed of trust,
dated as of November 1, 1985, by the Corporation as trustor,
for the benefit of the City and the Office (the "Deed of
Trust"), presented at this meeting, is hereby approved.
Section 9. The proposed form of regulatory
agreement, dated as of November 1, 1985, among the City, the
Corporation, and the Office (the "Regulatory Agreement"),
presented at this meeting, is hereby approved. The Mayor,
City Manager or the authorized representative of either of
them and City Clerk or Deputy City Clerk are hereby
authorized and directed to execute and deliver the same, with
such changes therein as the officers executing the same, with
the advice of the City Attorney, may require or approve, such
approval to be conclusively evidenced by the execution and
delivery thereof.
Section 11. Forms of the proposed Indenture, Loan
Agreement, Bond Purchase Contract, Deed of Trust, Regulatory
Agreement and Contract of Insurance are on fil~ in the Office
of the City Clerk.
Section 12. The Bonds in an aggregate principal
amount not to exceed thirty-five million dollars
($35,000,000) shall be executed by the facsimile signature of
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the Mayor or City Manager. The facsimile seal of the City
shall be affixed thereon and attested by the facsimile
signature of the City Clerk or Deputy City Clerk, in forms
set forth in and otherwise in accordance with the Indenture.
Section 13. The Bonds, as executed, shall be
delivered to the Trustee for authentication. The Trustee is
hereby requested and directed to authenticate the Bonds by
executing the Trustee's certificate of authentication
appearing thereon, and to deliver the Bonds, when duly
executed and authenticated, to the purchasers thereof, in
accordance with written instructions executed on behalf of
the City by the Mayor, City Manager or the authorized
representative of either of them and the City Clerk or Deputy
City Clerk, which instructions said officers are hereby
authorized and directed, in the name of and on behalf of the
City, to execute and deliver to the Trustee. Said
instructions shall provide for the delivery of the Bonds to
Dean Witter Reynolds Inc. upon payment of the purchase price
thereof.
Section 14. The officers of the City are hereby
authorized and directed, jointly and severally, to do any and
all things to execute and deliver all documents which they
may deem necessary or advisable in order to consummate the
issuance, sale and delivery of the Bonds, and otherwise to
effectuate the purposes of this Resolution.
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Section 15. This resolution shall take effect
immediately upon its passage.
PASSED AND ADOPTED by the Common Council of the
City of San Bernardino on December 2, 1985, by the fOllowing
vote:
AYES:
NAYS:
ABSENT:
ATTEST:
Mayor of the City of San Bernardino
[SEAL]
ATTEST:
City Clerk of the City of San Bernardino
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RESOLUTION NO.
RESOLUTION OF THE CITY OF SAN BERNARDINO AUTHORIZING AND
2 DIRECTING EXECUTION OF AN AGREEMENT FOR BOND COUNSEL SERVICES
3 WITH ORRICK, HERRINGTON & SUTCLIFFE.
4 BE IT RESOLVED BY THE MAYOR AND COMMON COOIICIL OF THE CITY
OF SAN BERNARDINO AS FOLLOWS:
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SECTION 1. The Mayor of the City of San Bernardino is
6 hereby authorized and directed to execute an agreement with the
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law firm of Orrick, Herrington & Sutcliffe for bond counsel
8 services in relation to the San Bernardino Community Hospital
9 issue of 1985. The contract to be executed shall be in form
10 prepared by the City Attorney, subject to the approval of the
11 Mayor.
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13 adopted by the Mayor and Common Council of the City of San
I HEREBY CERTIFY that the foregoing resolution was duly
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day of
meeting thereof, held on the
, 1985, by the following vote, to
AYES:
Council Members
NAYS:
ABSENT:
City Clerk
The foregoing resolution is hereby approved>this
day
, 1985.
Mayor of the City of San Bernardino
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Approved as to form:
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City Attorney .
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