Loading...
HomeMy WebLinkAboutMC-014MC-14 San Bernardino 60,009-2-3 60,009-17 ORDINANCE NO. MC-14 ORDINANCE OF THE CITY OF SAN BERNARDINO AMENDING ORDINANCE NO. 3815 RELATING TO THE FINANCING OF PROJECTS FOR THE ENCOURAGING OF INCREASED EI1PLOYllENT THE 11AYOR AND COr--a.ION COUNCIL OF THE CI~Y OF SAN BERNARDINO DO ORDAIN AS FOLLOl'iS: Section 1. Amepdment. Section 1 of Ordinance No. 3815 shall be amended to add subsection u to read as follows: IOU. It is hereby detemined that, in furtherance of the findings set forth above, it is necessary that the City exercise all of its powers to improve the quality of life for its residents, for the reason that improving the quality of life will result in a better \wrk force which will make the City more attractive to industry, commercial and service related enter- prises considering locating in the City. One of the vital parts in the quality of life in modern society is the provision of health care. This finding deals with one program by which the City can help to improve the quality of life for its citizens, namely, to encourage the availability of the best of health care. Speci- fically applicable to this finding are the following such findings: "1. Even though the City is removed from the large metropolitan C78-1 (ap) 9/16/80 , KC-14,' San' B'ernardino 60,009-2-3 60,009-17 complex in Los Angeles, it still has been possible for the residents of the City to be provided with the most specialized and sophisticated health care services, as well as general health care services, on a convenient basis. It is not, nor should it be necessary to travel long distances to other cities for such services, except in a few very unusual situations. Providing this type of convenient health care services should continue and should be kept up to date in this era of rapidly accelerating high tech- nology. "2. The cost of providing health care services (and therefore the amounts paid by residents of the City to obtain health care services) has risen at annual rates of from 12 to 20 percent in recent years. Such substantial rate of annual increases in the costs of health care services is likely to continue in future years. This puts a great burden on the residents of the City who must pay such costs. It also puts a'great burden on the hospitals and other health care facilities who must finance the necessary (and often highly tech- nical and expensive) facilities and then staff such facilities. "3. Substantial health care services are provided to the City's inhabitants by private nonprofit organizations that operate health care facilities, some of which are situated within the territorial boundaries of the City and some of which are located without, but close to, the territorial boundaries of the City, but whose service area includes the City. -2- C78-2 (ap) 9/16/80 . Me-it>. Sar; Be:rnardino '60,009-2-3 . 60,009-17 "4. Because of the expensive capital facilities that are required by a hospital and many other health care enterprises, a significant favorable impact can be made on the provision of health care to the residents of the City by the City's assisting in the financing of health care enterprises pursuant to this Ordinance, thus facilitating lovler cost financing of such enterprises. Because of the regulations pert.".i,.- i.ng to hospital operations, any savings in operating costs due to lower cost financing will help to reduce the cost of obtaining health care services to residents of the City. New facilities that are financed will help to improve the quality of health care to residents of the City either by adding addi- tional capacity or improving the technological capability. All of this means more available health care which increases the quality of life to the citizens of the City. "5. Facilitating the financing of health care facilities pursuant to this Ordinance will not irnoose a financial burden or have adve~se effects on areas outside of the boundaries of the City, or on tran- sient residents of the State. It will not produce detrimental effects on, conflict with, or othen~ise restrain efforts of the State to solve problems of legitimate State concern. "6. hereunder violation standards of health No action will be taken which will result in a of any applicable state relating to the provision care. "7. of health Facilitating the financing care facilities will produce -3- C78-3 (ap) 9/16/80 . Me-Iii San Bernardino '60,009-2-3 ' 60,009-17 a public benefit residents and is supporting. to the City and its to be entirely self- "8. It is hereby determined that facilitating nonprofit organiza- tions in the providing of health care services with the aim of the reduction of health care costs or the provision of better health care, or both, is a public purpose in which the City has a peculiar and unique interest and also municipal affairs as those terms are defined by .California la"." Section 2. Amendment. Section 2(e-l) (1) of Ordinance No. 3815 shall.be amended to read as follm,s: "(I) Are issued as part of an issue all or a~ajor portion of the proceeds of which are to be used directly or indirectly in any trade or business carried on by any person who (subject to exceptions herein- after set forth) is not an exempt person within the meaning of the Internal Revenue Code of 1954, as amended; and" Section 3. Amendment. section 2(e) (3) (A) (viii) and (ix) shall be renumbered (ix) and (xl respectively, and a new paragraph numbered (viii) shall be inserted to read as follows: -4- C78-4 (ap) 9/16/80 " KC-14" " ." sim" Bernardino 60,009-2-3" 60,009-17 "(viii) Facilities for operation by Companies qualifying as exempt persons under Section 501 of the Inte~nal Revenue Code of 1954, as amended, including, but not limited to, Health Facilities;" Section 4. Amendment. The last paragraph of Section 2(e-l) shall be amended to read as follows: "The above definitions of the .lOrds "Bonds" and "Bond" are intended to in- clude all of the types of industrial development bond facilities that can be financed on a tax-exempt basis under the applicable Federal lavls (inch:c1ing the regulations promulgated thereunder) , and it is intended that this definition in this Ordinance will be amended to correspond with any changes in said Federal laws. It is not intended, by including any of the above definitions, to contravene any provisions of the City Charter, for example, Section 133 thereof ,.,hich requires a vote to issue certain types of revenue bonds (it being assumed that following the addi- tion of Article XIII A to the State Constitution, it may not be possible to issue general obligation bonds) . Furthermore, some of the above items are furnished by privately owned public utilities or private concerns, and it is not intended to, nor shall any proceedings be conducted under those provisions, without the consent of the privately owned public utility or other private concern involved, as the case may be. "In addition, the above definitions are not intended to prevent thic Ordi- nance from being used to finance -5- C78-5 (ap) 9/16/80 , MC-14 .' .' " "" . , San Bernardino 60,009-2-3 60,009-17 Facilities which are to be used directly or indirectly in any trade or business carried on by any person v,ho is an exempt person within the meaning of the Internal Revenue Code of 1954, as amended; and any Co~pany, who so qualifies as an exempt person, may submit an Application for financing hereunder; and any Company, who does not so qualify as an exempt person, may submit an Application for financing of Facilities for operation by such an exempt person, it being the intent of this Oroinance to encourage all enter- prises, either within or without the City, which broaden the employme~~ opportunities for residents of the city and which serve the residents of the cit}, and so make it a more attractive place for industrial a~d conunercial ventures.1I Section 5. E~endment. The last sentence of Section 2(i) shall be amended to read as follows: IIExcept in the case of a Company qualifying as an exempt person under Section 501 of the Internal Revenue Code of 1954, as amended, 'Cost' shall not othenvise include working capital for a Company." Section 6. Amendment. Prior to the definition of IIProceedingsll in Section 2(1), a definition of IIHealth Facili ties II shall be inserted to read as follmls: II (k-l) 'Health Facilities,' means a structure or building suitable for use as -6- C78-6 (ap) 9/16/80 KC-14'" 'San Bernardino 60,009-2-3 60,009-17 a hospital, clinic, nursing home, horne for the aged or infirm, place providing healL~ care, laboratory, laundry, nurses, doctors, or interns' residence, ambulatory care center, place for adQinistrative offices, place in which to conduct research, place in which to house @aintenance equipment and supplies, storage place, place in which to locate utili.ties, auditorium, dining hall, place for food service and pre?ar~- tion, place in which to house fire fighting equipment, place in ,,,hich to provic;'! mental and physical health care and den'tal care, nursing school, medical teaching school, and place in ,,,hich to house offices; parking lots, garages, and buildings or structures in which to house supporting servi~cs; and all necessary, useful, and related funlish- ings, equipment, machinery, and appurtenances, including, without limitation, the acquisi- tion, preparation, and cevelopment of all lands necessary or convenient as a site or sites fo~ any of the foregoing." Section 7. Amendment. Section 2(m) shall be amended to'read as follows: "(m) 'Project' means the acquisition or financing or refinancing of Facilities as authorized by this Ordinance." Section 8. Amendment. Section 11 of Ordinance No. 3815 shall be amended to add thereto subsection (d) to read as follows: .. (d) The Hayor and Cor:unon Council may, as they deem it to be necess~ry in -7- C78-7 (ap) 9/16/80 MC-14 , , San'Be:cnardino ,60,009":2';'4. 60,009-17-3 certain instances, approve any particular Application, regardless of the form thereof, without complying with Sections 9, 10 and 11 (al, (b) and (c)." Section 9. ~_~en~ent. New subsections (j) and (k) shall be added to Section 12, to read as follows: " (j) In any Project Agreer,lent entered into by the City for the financing or refinancing of Health Facilities, the Company shall agree that, to the eX'C2nt feasible, the Company shall pass through to the patients at such Health Facilities in the form of lower patient charges; the interest cost savings achieved by the Company as a result of the City issuing bonds for the financing or re- financing of such Health Facilities. "(k) In any Project Agreem8nt entered into by the City for the financing or refinancing of Health Facilities, the Company shall agree to obtain all necessary health planning approvals wi th respect to the Health Facilities pro',' posed to be financed or refinanced by the City." Section 10. Amendment. Section 14(g) of Ordinance No. 3815 shall be amended to add a sentence tl1ereto, to read as follows: "In lieu of the manual signature of the City Clerk on the Bonus, such signature may be by facsimile, in which case the Bonds shall be authenti.,. cated by the manual signature of a duly authorized officer of the Trustee." -8- C78-8 (ap) 9/29/80 MC-14 .San Be:::-nardino 60,009-2-4 60,009-17-2 Section 11. ~endment. Section 21 (c) of Ordinance No. 3815 shall be amended to read as ~ollows: "(c) An action may be brought pursuant to Chapter 9 (cow~encing with Section 860) of Part 2 of Title 10 of the Code of Civil Procedure to deter" mine the validity of Bonds, proceedings, Project Agreements or indentures, including, without limiting the generality of the foregoing, the legality of all proceedings thereto- fore taken pursuant to this Ordinance. The provisions of said Chapter 9, including all of the limitations therein, are incorporated herein by reference as if fully set forth." Section 12. Effective Date. This Ordinance shall take effect on the thirty-first (31st) day after approval by the Mayor. -9.. C135-7 (ap) 9/29/80 MC-14 ,. , San Bernaraino 60,009-2-3 60,009-17 I HEREBY CERTIFY that the foregoing Ordinance was duly adopted by the Mayor and Common Council of the City of San Bernardino at a regular meeting thereof, held on the ~ day of 'f'_/7>7h<' , 1980, by the following vote, to wit: AYES: Members 4b..31.J/l/.d?/ A4Ydk? / . ,~m~/ ~}? ~A?7h /odw-,,# ...#~?, ~~h~ 7Jh7/ NOES: Members ABSENT: Members ABSTAIN : Members ~~f'&A// CJ. Y C er ~ The foregoing Ordinance is hereby approved this ";;;0:;<<- day of ~.d1Hm-1't/1 , 1980. Approved as to form: J(~ ~~C:;; CJ.ty A orney -10- C86-11 (ap) 9/17/80