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HomeMy WebLinkAboutMC-226U 7 . ... ;' 7 " San Bernardino 60,009-34-2 ORDINANCE NO. MC-226 ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING ORDINANCE NO. 3815 RELATING TO THE FINANCING OF PROJECTS FOR THE ENCOURAGING OF INCREASED EMPLOYMENT BY AMENDING SECTION 15 THEREOF RELATING TO THE TRUSTEE AND DECLARING THE URGENCY THEREOF TO TAKE EFFECT IMMEDIATELY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO DO ORDAIN AS FOLLOWS: Section 1. Amendment. Section 15 of Ordinance No. 3815 shall be amended to read as follows: "SECTION 15. Indenture Provisions in Resolution of Issuance. In the discretion of the City, any Bonds issued under the provisions of this Ordinance may be secured by indenture provisions in the Resolution of Issuance by and between the City and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company within the State or any other state in which it is transacting business and the Resolution of Issuance may contain such provisions which are customarily found in indentures, including, without limitation, the pro- visions hereinafter set forth. Such Resolution of Issuance may vest in bondholders the right to remove and appoint a new trustee or trustees. The trustee or trustees may, at any time, own all or any part of the Bonds, unless otherwise provided in the Resolution of Issuance. Such Resolution of Issuance may vest in such trustee or trustees, in trust or as agents, as provided therein and as consistent with other #252.3 (ap) 7/10/82 MC-226 ," ; . '. provisions of this Section, property, rights, powers and duties, and may provide that the Revenues and any other rights be pledged as security for repayment of the Bonds, subject to such agreements with bondholders as may then exist. Such Resolution of Issuance may contain covenants of the City as to the acquisition of Property, the disposition of any Property, or part thereof, the sub- jecting of additional Property to the lien thereof, the issuance of additional Bonds, the custody, in- vestment and application of all moneys, the creation and maintenance of reserves, the disposition of insurance or condemnation proceeds, and the use of surplus Bond Proceeds. Any such Resolution of Issuance may define events of default thereunder, which may include events of default by a Company under the Project Agreements, may specify the action to be taken by the City upon an event of default, may set forth the rights and remedies of the bolldholders and of the trustee or trustees, and may restrict the individual right of action by bond- holders. In addition, any such Resolution of Issuance may contain such other provisions as the City may deem reasonable and proper and which relate in any way to the security or protection of bondholders. All expenses incurred in carrying out the provisions of such Resolution of Issuance shall be treated as an Administrative Expense. Any interest in Property established by any Resolution of Issuance shall be valid and binding from the date thereof, and any Revenues or amounts to cover Administrative Expenses received by, or on behalf of, the City thereunder shall immediately be subject to the lien thereof without any further act, which lien shall be valid and binding as against all persons, irrespective 2 ... .. San Bernardino 60,009-34-2 #252.3 (ap) 7/10/82 MC-226 ~ ~ . .i; , . . San Bernardino 60,009-34-3 of notice, without any filing or recording except a filing in the records of the City. All Revenues, excepting (unless otherwise provided) Bond Proceeds, shall further be deemed to be trust funds and all Revenues shall be held and applied sOlely as provided in such Reso- lution of Issuance but no bondholder shall, as such, be in any manner obligated to see to the proper application thereof." Section 2. Effective Date. This Ordinance is an urgency measure and shall take effect upon adoption. The facts constituting such urgency are: The present inter- national situation, the efforts to reduce the current rate of inflation and the current economic downturn, have made interest rates fluctuate to an unprecedented extent. Unem- ployment is rising. The City cannot control these external forces, but it has enacted Ordinance No. 3815 relating to the financing of projects for the encouraging of increased employment within the City. Interest rates have been fluctuating to an unprecedented extent. As they improve, it is necessary to move very quickly or it may not be possible to accomplish a particular financing. This has happened this year with some of the individual bond financings which had been approved by this Mayor and #252.3(ab) 11/17/82 3 . , .' MC-226' - . ....~ <(/III,.. ,.." ~ ' " San Bernardino 60,009-34-3 Common Council. There is a current financing which is ready to proceed. This financing involves the hospital in the City commonly known as St. Bernardine's Hospital of San Bernardino, which is a part of the SCH Health Care System (Sisters of Charity of the Incarnate Word, Houston, Texas). This financing of St. Bernardine's Hospital of San Bernardino is tied in with simultaneous financings of faci- lities of the SCH Health Care System in Texas, Louisiana, Arkansas and Long Beach, California. Because it is a common financing, it is necessary and desirable to use a Master Trustee who, because of the geographical distribution of the SCH Health Care Facilities, will not be in the State of California. Because St. Bernardine's Hospital of San Bernar- dino is an integral and important part of the health care system of the City, this change in Ordinance No. 3815 should be approved without the waiting period. The importance of public health requires the City to use every power it has. This makes it necessary that the City financing of this health care facility pursuant to Ordinance No. 3815 be accomplished in the most expeditious manner. The amendment to Ordinance No. 3815 made by this Ordinance should expedite the financing of the health care project which will help to accomplish the purposes stated in Ordinance No. 3815. 4 #252.3 (ap) 11/17/82 MC-226" .. " t., .' .. ~ .<4' . . ,";- . "..,' San Bernardino 60,009-34-2 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and Common Council of the City of an adjourned San Bernardino at / regular meeting thereof, held on the 22nd day of November to wit: , 1982, by the following vote, AYES: Councilmen: Castaneda, Reilly, Marks, Quiel, Hobbs, Strickler NOES: None ABSENT: Council Member Hernandez ABSTAIN: None ~/?/~/f:?/ ~~ / C1ty Clerk The foregoing Ordinance is hereby approved this d/!1T7t day of -lhI/I':ArhM Approved as to form: ~ff~~~ City A torney , 1982. an 5 #252.3 lap) 7/10/82