HomeMy WebLinkAboutR34-Economic Development Agency
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM:
Maggie Pacheco
Deputy Director
SUBJECT:
PUBLIC HEARING ON THE TAX AND
EQUITY FISCAL RESPONSIBILITY
ACT (TEFRA) FOR INLAND
BEHAVIORAL HEALTH SERVICES,
INC.
DATE:
November 3, 2003
ORlGINAL
___________________________________d__________________~______________________________________________________--------------------------------------------------
Svnonsis of Previous Commission/Council/Committee Action(s):
On September 4, 2003, Redevelopment Committee Members Anderson, Suarez and Estrada unanimously voted to
recommend that the Mayor and Common Council consider this action for approval.
On September 15, 2003, the Mayor and Common Council of the City of San Bernardino approved a motion to schedule
a public hearing on October 6, 2003 at 7:00 p.m.
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Recommended Motion(s):
OPEN AND CLOSE PUBLIC HEARING
MOTION:
(Mavor and Common Council)
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING THE ISSUANCE OF BONDS BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY FOR THE PROPOSED NEW INLAND
BERA VIORAL AND HEALTH SERVICES, INC. MEDICAL FACILITY
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Contact Person(s): Maggie Pacheco/Musibau Arogundade
Project Area(s) Uptown
Phone:
(909) 663-1044
2
Ward(s):
Supporting Data Attached: Ii'! Staff Report Ii'! Resolution(s) D Agreement(s)/Contract(s) D Map(s) Ii'! Letters
FUNDING REQUIREMENTS Amount: $
N/A
Source:
N/A
Budget Authority:
~ /Y)~
Gary ~ Osde , Maggie Pacheco, Deputy Director
._---------------------~------------------------------------------------------------------------------------------------~----------------------
Commission/Council Notes:
SIGNATURE:
N/A
1'l'-~.$ z='S~('
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P:\Agendas\Comm Dev Commission\CDC 2003\03.] 1.] 71BHS TEFRA Hearing.doc
COMMISSION MEETING AGENDA
Meeting Date: Il/I 7/2003
Agenda Item Number: If 3'/
..
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
.--------------------------------------------------------~----------------------------------~---------------------------------------------.
Public Hearinl! on the
Tax and Equity Fiscal Responsibility Act (TEFRA)
for Inland Behavioral Health Services. Inc.
BACKGROUND:
California Statewide Communities Development Authority ("Authority") is a joint exercise of powers
authority consisting of numerous California cities, counties and special districts, including the City of
San Bernardino ("City"). The Authority, pursuant to its Amended and Restated Joint Exercise of
Powers Agreement, is authorized to assist in the financing of facilities for profit and nonprofit
organizations.
Inland Behavioral and Health Services, Inc. (ffiHS) has submitted an application to the Authority to
finance the construction of a new medical facility in San Bernardino through the issuance of tax-
exempt bonds in an amount not to exceed $4,270,000. One of the proposed projects will be located at
655 North "D" Street and 379 West 7th Street and another facility in the City of Banning. ffiHS is
currently located at 1963 North "E" Street, a facility that they have outgrown and that lacks adequate
parking facilities.
ffiHS is a private, nonprofit, community-based organization providing primary health care, mental
and human support and development services to low-income and indigent citizens of the Inland
Empire area for over 24 years. Since its establishment in March 1978, ffiHS' mission has been to
improve the health and welfare of the community it serves in an accessible, affordable manner. ffiHS
has evolved from a substance abuse counseling organization to a comprehensive primary health care
and human services delivery system targeted for those residents of its service area who cannot, for
various reasons, obtain these services through traditional local delivery systems.
The overall objective of ffiHS is to help the community achieve and maintain general good health,
education, and welfare through commitment in providing excellent service in the areas of physical
health care, mental health improvement, substance abuse treatment, prevention education, and
employment preparation services. Currently, ffiHS operates and manages four major programs
including: Westside Counseling Center, Perinatal Care Network, Project Home Again and ffiHS
Community Health Care Clinic. Westside Counseling Center provides outpatient alcohol and drug
treatment and educational services to both adolescents and adults. Perinatal Care Network is a day
care rehabilitation program providing substance abuse education and treatment, case management and
mental health interventions to women, infants and children. This program provides ancillary services
in the form of transportation, child care and health care. ffiHS Community Health Care Clinic
provides comprehensive primary health services.
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P:\Agendll!l\Comm Dev Commission\CDC 2003\03-11-171BHS TEFRA Hearing.doc
COMMISSION MEETING AGENDA
Meeting Date: 11/17/2003
Agenda Item Number: -4
,"
.
Economic Development Agency Staff Report
ffiHS TEFRA Hearing
Page 2
CURRENT ISSUE:
The Authority has requested that the City of San Bemardino conduct a Tax and Equity Fiscal
Responsibility Act (TEFRA) hearing as required by federal law regarding ffiHS' proposed financing
to construct a new medical facility in San Bernardino. Based on ffiHS' proposal, the construction
will be completed in three phases as follows:
San Bernardino Project
ffiHS proposes to purchase the property comprised of two adjacent lots which total 70,400 square
feet located at 655 North "D" Street and 379 West 7th Street (southeast corner), San Bernardino,
California. ffiHS proposes to construct on this property a new 28,000 square-foot facility which will
provide adequate space needed to relocate only the existing primary care clinic and the administrative
support staff currently at the leased facility located at 1963 North "E" Street. Mental health and
behavioral services will remain at the 1963 North "E" Street site.
The construction of the San Bernardino medical facility is anticipated to be completed in two phases
as follows:
a. Phase I - November I, 2003 to August 31, 2004
The scope of work for Phase I provides for building a 28,000 square-foot facility of which only
approximately one-half will be developed with interior functions such as medical, dental and related
functions to provide for a complete functional outpatient clinic. The completed facility under Phase I
will have 23 medical exam rooms, 3 dental operatories, lab, x-ray, pharmacy and other ancillary
services. Total anticipated construction costs are $4.9 million.
b. Phase II - January 1, 2004 to September 30, 2004
Phase II provides for completion of the 28,000 square-foot building to supply space for
administration, fiscal, social and support services functions to the extent funds are available. Total
anticipated construction costs are estimated at $1.5 million. Please refer to the attached application
sununary for further details about the San Bernardino and Banning projects.
ENVIRONMENTAL IMPACT:
Not applicable.
P:\Agendas\Comm Dev Commission\CDC 2003\03-11-17 IBHS TEFRA Hearing.doc
COMMISSION MEETING AGENDA
Meeting Date: 11/17/2003
Agenda Item Number: !( 3lf
.'
Economic Development Agency Staff Report
IBHS TEFRA Hearing
Page 3
FISCAL IMPACT:
The Agency will collect a small administrative fee of approximately $2,500 for coordination of the
TEFRA hearing. The proposed bonds do not constitute a debt of the City, or pledge of the faith and
credit of the City or the Agency. The proposed bond funding issuance will be secured by corporate
equity backed up by a Letter of Credit from Cal-Mortgage.
RECOMMENDATION:
That the Mayor and Common Council adopt the attached resolution.
~?~
Maggie Pacheco, Deputy Director
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P;\Agendas\ClImm Dev Commisswn\CDC 2003\03-11-17IBHS TEFRA Hearing.doc
COMMISSION MEETING AGENDA
Meeting Date: 11/17/2003
Agenda Item Number: 4
f ::eCE:'/ED BY
('.~" ',rr~' .'-If
"",.,\
October 27, 2003
Maggie Pacheco, Deputy Director/Director
Economic Development Agency
201 North E Street, Suite 301
San Bernardino, CA 92401
Dear Ms. Pacheco:
Per our meeting on October 24'h, as requested here is a brief description
of our services for the new building located on 7'h and "D" Street. This
new facility's function is primarily for comprehensive medical care
services. With the building code compliance enforced by the City of San
Bernardino, our homeless and substance abuse services will remain in our
current facility located at 1963 North "E" Street.
Please do not hesitate to contact me if you have any questions or
concerns.
Sincerely,
7A,UJj'lJi~t"1 ~.~
Dr. Temetry A. Lindsey
CEO/President
T AL/bb
Cc: Valerie Ross, Chief Planner
Vernon Bragg, Jr., Chair
1963 North "E" Street. San 8emardino. Califomia 92405 (909) 881-6146 Fax (909) 881-0111
,. .
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CALIFORNIA
COMMUNITIES
August 27, 2003
VIA FACSIMILR (909) 8RR-<J413 AND REGULAR MAIL
Ms. Maggie Pacheco
Deputy Director
City of San lkrnardiflo
201 North E Srreer, Suite 301
San :Bernardino, CA 9240 1
Re: Public H....;ng for Inland :BeQ~vioral & Health SetviGCll. Tnc,
Dear Maggie:
InlAnd Behavioral & Health Services, lnc. (the '~pplicant") PllS submitted to tpc
California Statewide Communities DevcloplI1Cnt Authority (the "Authority") an application
(the '~pplication") for the financing certain medical facilities (the ''Project'') through the
is.qwlnce of tax-exempt obligations in an aggregate principal atnount not to exceed $6.0
million. The Project will be located in the Ciry of San Bern~o at 655 North "D" Street
and 379 7rh Street. The purpose of this letter is to req~st the a.silltllnce of the City of San
lkrnardino in conducting 00 dther Monday Septel1Jher 15 or Octohe,' 6. 2003 a public.
hearing with respect to the proposed financing in order to meet the projected bond closing
dare of October 30, 2003.
A. you lU'e aware, the Authodty is a joint exercise of powel'S authol-ity con.i.ting of
nUIDe.!O\IS Califomia cities, cO\ltloe.s and special districts, iochldiflg the City of San
Bernardino. The Authoriry pmsuaot to its Amended and Restated Joint Exercise of Powers
Agreement is authoro..cd to. :l...sL.t in the financing of facilities for nonprofit organizations.
10 or.;Ier to initiate such a financing, the rIll:mbcr participant of the Authority ~ which the
proposed facilities will be located must (i) conduct a public heating and (u) approve the
Authority'. i..~uance of indebtedness. Therefore, although the AQthoriry will be the issuer of
the taX-exempt obligatioOll for thc Applk..lIIt, the financing c-olnnot pme.x:tl wilho'!L the
approval of the Ciry of San Bernardino.
T have: attllched for yow- review the Application filed by the Applicant with the
Authoriry. You will be receiving 6111)rtly nletrer from Brian Quint of Quint & l'himmig T.T ,F,
serving as bond counsel. describing the public hearing prucess and the requi=ncuts un.;Icr
st2te and federal laws, including the Tax nnd Equity Fiscal Responsibility Act (l'EFRA).
This letter will also include for your review the form of Notice of Public Hcarlog and the
form of City Council Resolution evidencing the City's approval of the financing. Bond
Counsel. at your option, can conrdinate for you the publication of the Notice and the
adoption of the Resolution,
::,pvn:,u(,,'d 8). C.l!it,'rniil ':il,ll(' :\S:a.Vli.llltlJI ttf (, Hunt",... . 11,.1~UI.' (.I Co.lJj'~Hllid C'lll....
..! ! I"" l\,I. l .111 t 11 r n i it HI \ d . I Sui l.L' .5!' (l . \'\.\ ll~ II I ( r.' \' L, C .11 i III r 11 i.l Q..J ~ q II . ~ U U. (,.) ~. .~ () Ij 1
r
-2-
AUgust 27,2003
Thank you for your assisWlce in thi& matte!:. Please let me know if you requite allY
additional infottm.tion conrPn1ing the scheduling of such public hearing or if I can be of
any other a.,sistallce.
Very trUly yours,
~cJ.~
Michael LaPicttc
Enclosures
cc: Brian Quint, Quint & 'fhimmigLLP (415-765-1555)
Additional Information
A.
Detailed ~Dlicant historY
Inland 8elulviontl and Health S\lI'Vices (1BHS) is a private, nonprofil, community-based
organization providing primary health care. menial and human support and development services to
low-income and indigent citizens of the Inland EIIIpire an:a for over twenty-four years. Since its
establishment in March 1978, mHS' mission has been to improve the health and welfare of the
community it serves in an IICCe$sible affordable manner. 1BHS has evolved from a ~ubSlanCll abUSt:
CUIIIIseling organ~on to be a comprehensive primary health care and human servi~ delivcty
system targeted for those residents of lIS seMce area who cannol, for various reasons, obtain lI1ese
services through traditional local delivcty systems.
~~
lbe overall objective of the agency is to hclp t1\C~ community achieve and maintain general good
health, education. and welfllre through commitment in providing excellent service in the areas of
physieal health care. mel)lal hllldtb improvllll1e!1l, substallce abuse treatMent, prevention ecluCatioll,
and employment preparation seMCes. Current1y, laHS opt.~s and IDlUIIIges four major programs,
including: Westside Counseling Center, Perinatal Care Network, Project Home Again and IBHS
Community Health Care Clinic. We$idc Counseling Center provides outp~cnt alcohol and dnlg
1reatmcnt lI!1d educational services to botI1 ~leaccnts and adults. Perinatal ean. NeL~ ill a dlIy
care lu!bilitatlon progra!1lproviding substance abuse cducatiOllll!1d treatment, case managClllcnt lI!1d
mental health interventiOns to women, infants and cbildren. This program provides ancillary
services in the fonD of lrlinllportatiOIl, child carc and health care. mas Community Health CI\I'C
Clinic provides '-'OIDprchensive primary health services. Finally, Project HOlDe Again provides
supportive housing services to San Bomatclino's homeless populatiOll. lBHS bas a staff of diverse
culture.~ and backgroWlds. Raving such a ricb diversity allows its employees to be culturally and
linguistically sensitive in their approach to \he target population and the community as a whole.
The opening of the medical clinic in 1993 and the expansion to a full-time, 4O-hour service in 1996,
in response to the lack of accessibility to the local primaIy health care dclivcty systmn by its
l1ehovioral health patients have propelled mHS to reach a point whae now it is coosiclered not ooly
a part of \he traditionalllDd eS13blished health care cMivcty system but also for specific SCll!Jlcots of
the service an:a population, to whom lBHS is the only beNth care available. The addition of
primary health care services has allowed mHS to complete the circle in implementing a multi-
disciplinary approach to delivering care to its homeless and behavioral bealth clients combining
-aggressive Street outreach with its integrated services, including, primaIy care, mental health,
subsrance abuse, case Planagement and client advocacy.
With the Certifica1iOll as a FQHC Look Alike on March 16, 2000 and the opening of the new
Whitney Young Family Health Clinic .(WYFHC) within one of San Bernardino's Public liousing
Projects in October 2000, and the desiJ!ll8tion as a Fcdcra1ly Funded Community Health Center on
April I, 2002 (initial grant award fO[" April I, 2002 through February 28, 2003 totaled $482,861.
thereafter $536,790 annually), lBHS has been ablc to increase access to comprellensive primary and
preventive health care to San Bernardino's medically underservcd population. Thc proJXlsed
conslluction of the new facilities would enablc JBHS to increase the level and expand the service
area to the community of Banning whicb is in dire need of such services as well as to provide new
services including denT4\ cafC Rnd other support services. With the completion of these projects,
IBHS cxpc:cIS 10 more than doubling its primlU)' care setVices 8I\lJ to provldll a grealet continuance
of services within the next three years. This is in direct response to the growing primary health
Deeds of the community. lBHS is altho beginning of a 24 10 36 month flurry of activity that will
signlficanlly increase its volume and change its stnICl\lTll.
B. Description of proiect
IBHS proposes to purchase vacant properties to construct two new medical facilities on them, one
in San Bernardino and the other one in Ranning. The COI1Slruction will be completed io thl'OO
phases as follows:
I. San BerrllIl'dino Project
IBHS proposes to purchase Vllcant land in the City of San Bcrnatdino. The property is comprised
of two a<\jllCClrt Jots which tolaled 10,400 sq. ft. The ~ for the two properties are 655 North
"D" St., and 379 7th St., San Bernardino, CA. The purchase price is $160,000 lIIld SZOO,O()O .
respectively. JBliS proposes to COPBlrucl on this property a new 28,000 sq. ft. filcility which will
provide adequate space to relQCllte the existing prillUll)' ~ clinll: cummUy lIlthe leased facility
and provide for additional space for mqJ8IIdcd mental bea1th and behavioral services. More
/mp<lrI$IlIy, it will provide adequate ~ 10 bOllse all services required under the Federally
Qualified Health Center Desil!llation, including: Comprehensive prin1aIy health care, 4cnlal.
laboratory, X-ray, phannBGY, health management and other support services. The new facility will
be a twO<<O'Y. Type B, medical facility with exterior CCl1cretc block walls and built up flat roof
with concealed mechanical \Iq\lipmcut and relaWd oft'-site improvements, including, two parking
areas. concrete curbs gutters an sidewalks. JBHS also proposes to purchase funliluIe and equipmem
La furnish and equip the new facility for a total ofS300,OOO.
The construction of the San Bernardino medical facility will be completed in two phases.
Phase 1- November I Z003 to August 31. 2004
The scope of work for phasl' 1 are t(l build a shell !;trUClUtC of Z8,000 square feet of which only
approximately one-half will be developed with interior functions SlI\lh as medical, dental, and
rela:tlld functions to provide for a complete functiOIUll ouq,atieol: clinic. The completed Vlcility
. under Phase I will have 23 medical exam rooms, 3 dental operatories, lab, X-ray, Phannacy. and
other anciUary sCIViees.
Sources of ftmds for Phase one will be provided as follows:
Bond Procccd~
IDHS EquityCont!'ibution
T ota! Sources of Fund
$4,270,000
638.16()
~ 90.llJ611
2
Phase 11- January I to Seprember 3D, 2004
The phase 11 coosWctiOll is to complete the 28,000-square.foot building to provide space for
administnnion, fiscal, social, and support services functions. The conslnlCtioo uf ~pacc: for these
functions win be set up as an a1temate bid so tbal Phase 11 may be initiated as the EOA funds
become available.
CORSlJ'UDtiOll costs for Phase II ore estimated at approximately $1,547,997. 'I11e BOA grant will
cover 100% of these costs and will provi4e approximately 5450,003 toWaIds the cooslrUCtioo of the
medical facility in the City of Banning.
2. BlInning Project (Phase IIl- October I, 2004 to June 3D, 2005)
The proposed new facility to be 10000led in the City 9f Banning will be bullt on vacant JIfOPCI'lY
comprised offour parcels, which inolude APN# 541-200-009, 541-200-010, 541-200-016, aod 541-
200-015. This property is 43,OUU sq. ft.and the purchase price is 590,000. WHS proposes to build a
new 8,000 sq. ft. facility 00 the purchased vacant lots. The new facility will be a single story
buildiDg with eJaerior SlIlCCO fmisb and clay tile roof with attic enclosed mechanical equipment.
Total COIlSlnIction cost is ~rnatcd at $1,366,498. Additionally, lBHS proposes to plIfChase
fixed/movable equipmcntand furnishings for the ncw'facilily for an esLima1.cxl cost ot'$130,000.
Funds to complete the project will be sought from EDA and the California EIldowment
C. ComnrehenRivc summarv of proiect public benefits
lBHS provi~ II wide range of primary hcalth care mental and hlllllan support and development
services targeted to the low income and indigent populatioo of tile Inland Empire area since 1978.
Many of thClllc services are provided at no charge to the client. IBHS utilizes a sliding fee discount
schedule, based on faroily size and income, following fcdcnll poverty guidelines, to provide
discounts for reimbursable services proVided. The savings resulting from tho tax-exempt bond
financing will be transferred. in the fonn of disculUlls or expanded tree services, to clients with
income below 2000/" of poverty.
1. 8M Bernardino Project
The pmposed new facility in San Bernardino will provide the space for dIe prilllllJY care clinic
. cum;nlly located at the existing 13,5QO sq. ft. leaSed facility located all963 N. liE" Street. This
facility has been outgrown by the programs and services lBHS manages. When the medical clinic
was established, the primary goal was to serve D3HS' existing mental health and hCll!\clCl1$ client~.
Rlu thc dc;mand for primary health care services within mHS' service area has propelled the
medical clinic as ffiliS' fastest growing program. The available space for the clinic has been
outgrown to the point that IBHS ClIIl no longer hire the medical sta1f it needs to adeqUlltllIy serve the
demand for primary medical services; The lack of adequate parking space at the elcisting leased
facility is anodler ml\ior problem for its employees an<l clients. During the peak houm. clienu have
to park across the street making illlllSllfe to cross the street since th~ is no crosswalk nearby.
Another major sel back with the curreni facility is \hat it does not have any space for the provision
of new medical services in order to meet Federally QUlllified Health Center (FQHC) requirements.
3
Under FQIIC. in additiOl1 to pbysician visits J.B}!S is ~ to provide dental oare, pbannaoy,
diagnostic lab and X--ray, patient case management and preventive health services. The existing
leased facility can not ~en BCCQIlUI10date adequate space for basic pbysioian visilS since It only I1as
three exam rooms.
2. Banning Project
TIle proposed new facility in Banning will serw a bighly impoveri&bed papulation. as 58.3% of the
residents of this community are low income and tht"': is nu medical clinic lIuIt oITenl sliding (""
. discounts based on the patients ability to pay.
The families residing in the City of BillUling as well as the SUITOI1IIding rural area.o;, lleaumont and
Hemet, are in need of compcehensive health earn services. However, these families aro failing \0
receive the necessary oare due to lack of access to, as well as, culturally appropriate healtb care
~Iivery system.
The BanninglBeaumont areas MSSA ID I).umber is #134. This is a newly designated area. The
CWTeIIt population $tB!Ids at 47,404 people of which M07 are childnln at 100-200 pc:rcent of the
Federal Poveny Level (FPL) and 5,029 faIl below the FPL by 200 Pel'llCllt ofFPL. Four poroent or
1,640 are ohil4n:n eligible for HcaJthyFamilies. The num.bcr of H~tI1 ProvidersllUTl'CJltIy seMng
these areas includes 88 physicians and 4 dentists. Of these current PfOvide!'s 8 physioians are
pediatric with one pedialric cardiologist, 12 are family practice, 9 are emerpcy medicine. These
figures are based upon tho data compiled by The California Department of Health ~rvices, Primary
and Rural f{eaJtb Care Systems Divisioll utilizing data tiQm OSIfPD ~ographic data from 1990
CCf\S1IS and from the Deo\llTlber 1997 UCLA Report for HFP eligible.
like most families living in rural areas, the residents of Banning are documented as facing the same
barriers to receiving adequatll hoalth services. These barriers are:
. Lack of 1rIm9portation, either adequate or not
. Lengthy travel distances to COllnty Health Facilities
. Poor road conditions and inaccessible roads from outer lying areas of Banning and
Beaumont with little if any available public transportation
. NOn availability of child C$n: providers in the area
. Lack cultUJ:1lily sensitive and rclevanl beallh providers fUrther isolating 63 percent of
limited English speaking people
The high cost of tre8lment and medicines oflcn prohibit BBI\IIing's low income residents from
receiving the care they need. Banning's tax revenue basis is low due to low propeny values lIIId the
diminishing conslruclill!l of Dew homes.
This project will provide highly needed comprehensive health care services to low income
residents living in Banning and to people scaUered between the cities of aanning and Beaumont
and 6IIJTO\I!\ding areas. .
4
3. Service Explll1sion
Tnland Behllvioml and Health S\lfViccs, Inc. proposes to expand on the services currently provided
at the main CliniC. The newly added aetlvitlcs proposed IIDder Ibis funding for the San Bernardino's
proposed new IlXlation, include; PhlUlDacy, laboratOJY, X-ray, dental care, health education (both
individUllllUld group), case management, assistance in Medi-Ca1 8/ld otllcr insul'ance cligibility,
nutrition, psychosocitll. and pn:na.tal an" postpartIlRl care wilh lIITlllIgeulIlDts for delively services.
At. part of ils c:oaIition witll CaIifomia Perinatal Services Program, tho now clinic will provide
pre-ruuaJ \:8rC, health education, Medi-ClII insurance 8/ld service remral services to un~rved,
pre~ant women, and concentrate on outreaching to monolingual SJ*lish speaking women who are
clisentTanehised from traditional health care services. Through county anai Sf8te contracts.,
additiOll8l SQlVic\\$ will include HIV and sm testing. education and pI'IMllIlion. AJso avllilable to
the patienl$ will be mental health and substance abuse programs tllat inolude co\lllSeling and case
mana.gm1C1'1t. Walk-in, non-urgent clinic serVices will be offi:red along with full iR1llluni~ion
8elVices. Patients neetling optometry and podiatric care will have $lCCSS to part~ ~
specialists who will be conducting rotatloos tbrough the clinic. J)cntlll facilities, fUll-scale
laboratory facilities, on-site phmnacy and racliolog}' will makl: the clinic II onMtOp source for all
of the medical needs of the patient population. .
The S\lrViCCll to be provided. at the proposed new clinic to be located In Banning Include: medical,
dental, referral, outreach, mental health and other support services. IBHS Proposes to hire one
pediatrician, one general practitioner and one Illid.level practitioner as Well II pan~time dentist and
a dental hygienist as part of the core staff. Additional mvices such as !Dental bea1th and homeless
services will be provided !)y rotating staff from the main olinic locllled. in the Cily of San
lJernanlino.
D. Addresses of esch facility to be financed
IBHS proposes III pUTt:base vacant land in the Cily of San aernarclino. The property is comprised
orlWo adjll!lent lots. The 8l1dn;sses are 655 North "D" St and 379 7th St., San aernardlno, CA.
The proposed new raeilily to be located in the Cily of Banning will be built on vacant property
comprised of four ps.rcels, which include APN# 541-20Q-009, 541-200-010, 541-200..0 16. and 541-
200-015.
E. . !}videncc of credit enhancement or intenl to DUrchase bonds
The Couunitment Letter from Cat-Mortgage is attached.
f'. List of olltstandina tax-exemot debt
None
G. Elnancial stalements for last 2Q}nDl\.1e fiscal vear
A copy of audited June 30, 2002 Financial Statements is attached
5
H. l'rQ;ect costs
Total project costs for phase 1 are estimated at $4,908,160 which include land acquisition,
an:biWcturaJ and engineering, collStJ'\letion costs, fixeclllDd mOvable equipment, costs of issuance,
debt service reseIVC, and insunuu;e premium rees..
mHS proposes to finao\le the phase I projecl by issuing $4,270,000 tax-exempt revenue bonds,
combined with $638,160 of corp<mtte equity.
Uses ofFllnds;
Land Acquisition
Apprnisal
ClIl.EPA
l'lan Check Fees, Permits, etc.
AtchitecturaVEnginecring
Construction
lllSUran~CompJetion Bonds
Contingency
Fixed/MQvabJe Equipmcot
Total Project Costs
Costs of Issuance
Loan Origination Fees
Debt Service Rcscrvc
Gross Capitalized Interest
lnsUrlUlCC Premium Fees
Total Uses of Funds
$455,000
6,450
2,600
180,000
2811,120
2,450,000
66,125
245,000
300.000
$3.985.295
. 193,980
42,700
295,420
152,119
238.646
$4.908 106
SoUl'lleS of Funds;
Loan Proceeds (87%)
Corporate Equity (13%)
Total sources of funds
$4,270,000
638160
$4.908.106
I. Interested Darties list
See attaChed
J. $1.500 non-r.efundable llIlDlication f99 payable to CSAC Finance ('..al]10f8tion
The check will be mailed directly by the borrower to CSAC.
6
,
~.~~~
RESOLUTION NO.
2
3
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING THE ISSUANCE OF BONDS
BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY FOR THE PROPOSED NEW INLAND BEHAVIORAL AND
HEALTH SERVICES, INC. MEDICAL FACILITY
4
5
6
WHEREAS, Inland Behavioral and Health Services, Inc., a California nonprofit public
benefit corporation (the "Corporation"), has requested that the California Statewide
7
8
Communities Development Authority (the "Authority") participate in the issuance of one or
9
more series of revenue bonds in an aggregate principal amount not to exceed $4,270,000 (the
10
"Bonds") to (a) finance the acquisition of two adjacent parcels at 655 North "0" Street and
379 7th Street, in San Bernardino, California, (b) construct thereon of an approximately 28,000
square-foot building and (c) construct improvement to, and equip, the building for primarily
11
12
13
comprehensive medical care services, which excludes homeless and substance abuse services
14
(the "Project") and
15
WHEREAS, pursuant to section 147(f) of the Internal Revenue Code of 1986 (the
16
"Code"), the issuance of the Bonds by the Authority must be approved by the City because the
Project is located within the territorial limits of the City; and
17
18
WHEREAS, the Common Council (the "City Council") is the elected legislative body
of the City and is one of the applicable elected representatives required to approve the
issuance of the bonds as a member of the Authority under Section 147(f) of the Code; the
19
20
21
Bonds will be issued by the Authority and the City will have no obligations with respect
22
thereto; and
23
WHEREAS, the Authority has requested that the City Council approve the issuance of
24
the Bonds by the Authority in order to satisfy the public approval requirement of Section
25
1479f) of the Code and the requirements of Section 9 of the Amended and Restated Joint
P:\Agendu\Resolutions\Resolutions\2003\03-11-17 IBHS TEFRA Hearing.doc
I
r
,
Exercise of Powers Agreement, dated as of September I, 1988 (the "Agreement"), among
2 certain local agencies, including the City; and
3 WHEREAS, pursuant to Section 147(f) of the Code, prior to their issuance, private
4 activity bonds are required to be approved by the "applicable elected representative" of the
5 governmental units on whose behalf such bonds are expected to be issued and by a
6 governmental unit having jurisdiction over the entire area in which any facility financed by
7 such bonds is to be located, after a public hearing held following reasonable public notice;
8 and
9 WHEREAS, there has been published, at least 14 days prior to the date hereof, in the
10 Sun newspaper of general circulation within the City, a notice that a public hearing regarding
II the Bonds would be held on November 17, 2003; and
12 WHEREAS, such public hearing was conducted on November 17, 2003 by the Mayor
13 and City Council, at which time an opportunity was provided to interested parties to present
14 arguments both for and against the issuance ofthe Bonds; and
15 WHEREAS, it is intended that this Resolution shall constitute the approval of the
16 issuance ofthe Bonds required by Section 147(f) of the Code and Section 9 ofthe Agreement;
17 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND
18 ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
19 BERNARDINO, AS FOLLOWS:
20 Section I. The City Council hereby approves the issuance of the Bonds by the
21 Authority. It is the purpose and intent of the City Council that this Resolution constitutes
22 approval of the Bonds for the purposes of (a) Section 147(f) of the Code by the applicable
23 elected representative of the governmental unit having jurisdiction over the area in which the
24 Project is located, in accordance with said Section 147(f), and (b) Section 9 ofthe Agreement.
25 II /
P:\Agendas\Resolutions\Resolutions\200J\OJ-11-17IBHS TEFRA Hearing.doc
2
r
.
Section 2.
The officers of the City are hereby authorized and directed, jointly and
2 severally, to do any and all things and to execute and deliver any and all documents that they
3 deem necessary or advisable in order to carry out, give effect to and comply with the terms
4 and intent of this Resolution and the financing approved hereby.
5
Section 3.
The City Clerk of the City shall forward a certified copy of this
Resolution and a copy of the affidavit of publication of the hearing notice to:
Brian Quint
Quint & Thimmig, LLP
One Embarcadero Center, Suite 2420
San Francisco, CA 94111-3737
This Resolution shall take effect upon its adoption and execution in the
11 manner as required by the City Charter.
12 IIII
13 IIII
14 IIII
15 IIII
16 IIII
17 IIII
18 IIII
19 IIII
20 IIII
21 IIII
22 IIII
23 IIII
24 IIII
25 IIII
6
7
8
9
10
Section 4.
P:\Ajendas\Resolutions\Resolutions\2003\OJ-II-17 ISHS TEFRA Hearing.doc
3
.
,
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING THE ISSUANCE OF BONDS
BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY FOR THE PROPOSED NEW INLAND BERA VIORAL AND
HEALTH SERVICES, INC. MEDICAL FACILITY
2
3
4
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
5
Common Council of the City of San Bernardino at a
meeting thereof, held on the
6
day of
7
Council Members:
8
ESTRADA
LONGVILLE
MCGINNIS
DERRY
SUAREZ
ANDERSON
MC CAMMACK
9
10
11
12
13
14
15
16
, 2003, by the following vote to wit:
Aves
Navs
Abstain
Absent
Rachel G. Clark, City Clerk
The foregoing resolution is hereby approved this
17
18
19
20
Approved
21 By:
g...MfllT: City Attorn
22
23
24
25
day of
,2003.
Judith Valles, Mayor
City of San Bernardino
P:\Agendas\Rc$OlutionslR.esolutions\200J\03-1 1-17 IBHS TEFRA Hearing.doc
4
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
FROM: Maggie Pacheco
Deputy Director
DATE: September 23, 2003
SUBJECf: PUBLIC HEARING ON THE TAX AND
EQUITY FISCAL RESPONSIBILITY
ACT (TEFRA) FOR INLAND
BERA VIORAL HEALTH SERVICES,
INC.
SvnoDsis of Previous Commission/Council/Committee Actlon(s):
On September 4, 2003, Redevelopment Committee Members Anderson, Suarez and Estrada unanimously voted to
recommend that the Mayor and Common Council consider this action for approval.
On September 15,2003, the Mayor and Common Council of the City of San Bernardino approved a motion to schedule
a public hearing on October 6,2003 at 7:00 p.m.
Recommended Motlon(s):
OPEN AND CLOSE PUBLIC HEARING
(Mavor and Common Councm
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
BERNARDINO APPROVING THE ISSUANCE OF BONDS BY THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY FOR THE PROPOSED NEW INLAND
BERA VIORAL AND HEALTH SERVICES, INC. MEDICAL FACILITY
MOTION:
Contact Person(s): Maggie Pacheco/Musibau A
Project Area(s) Uptown
Supporting Data Attached: It! Staff Report It! J
FUNDING REQUIREMENTS Amount: $
~K
0r-,.t.. ) Gary Van Osdel, F
Commission/Council Notes: Do
SIGNATURE:
'OI)Q\ 663-1044
cr -2-r--O;>
'JI4A; - 't (fCrc L
&fJ( /Sf; - t5-, 0 /I
~ .N, t
~ ~ (01,1 ~L-./
Ll _ '/ (] J )eputy Drrector
!'TV J '1I'V
~~.
2
1 Letters
P:\AgeDdu\Comm Dev Commissioll\CDC 2OOJIl)3.10-06 IBHS TEFRA Hearing.doc
COMMISSION MEETING AGENDA
Meeting Date: 10/06/2003
Agenda Item Number: R.3 D
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
Public Hearin!! on the
Tax and Equity Fiscal Responsibility Act (TEFRA)
for Inland Behavioral Health Services. Inc.
BACKGROUND:
California Statewide Communities Development Authority ("Authority") is a joint exercise of powers
authority consisting of numerous California cities, counties and special districts, including the City of
San Bernardino ("City''). The Authority, pursuant to its Amended and Restated Joint Exercise of
Powers Agreement, is authorized to assist in the financing of facilities for profit and nonprofit
organizations.
Inland Behavioral and Health Services, Inc. (lBHS) has submitted an application to the Authority to
finance the construction of a new medical facility in San Bernardino through the issuance of tax-
exempt bonds in an amount not to exceed $4,270,000. One ofthe proposed projects will be located at
655 North "D" Street and 379 West 7th Street and another facility in the City of Banning. ffiHS is
currently located at 1963 North "E" Street, a facility that they have outgrown and that lacks adequate
parking facilities.
ffiHS is a private, nonprofit, community-based organization providing primary health care, mental
and human support and development services to low-income and indigent citizens of the Inland
Empire area for over 24 years. Since its establishment in March 1978, ffiHS' mission has been to
improve the health and welfare of the community it serves in an accessible, affordable manner. ffiHS
has evolved from a substance abuse counseling organization to a comprehensive primary health care
and human services delivery system targeted for those residents of its service area who cannot, for
various reasons, obtain these services through traditional local delivery systems.
The overall objective of ffiHS is to help the community achieve and maintain general good health,
education, and welfare through commitment in providing excellent service in the areas of physical
health care, mental health improvement, substance abuse treatment, prevention education, and
employment preparation services. Currently, ffiHS operates and manages four major programs
including: Westside Counseling Center, Perinatal Care Network, Project Home Again and ffiHS
Community Health Care Clinic. Westside Counseling Center provides outpatient alcohol and drug
treatment and educational services to both adolescents and adults. Perinatal Care Network is a day
care rehabilitation program providing substance abuse education and treatment, case management and
mental health interventions to women, infants and children. This program provides ancillary services
in the form of transportation, child care and health care. ffiHS Community Health Care Clinic
provides comprehensive primary health services.
P;\Agcndas\Comrn ~ Commisllion\CDC 2003\03-1O-06IBHS TEFRA Hearing.doe
COMMISSION MEETING AGENDA
Meeting Date: 10/0612003
Agenda Item Nnmber:
Economic Development Agency Staff Report
ffiHS TEFRA Hearing
Page 2
CURRENT ISSUE:
The Authority has requested that the City of San Bernardino conduct a Tax and Equity Fiscal
Responsibility Act (TEFRA) hearing as required by federal law regarding ffiHS' proposed financing
to construct a new medical facility in San Bernardino. Based on ffiHS' proposal, the construction
will be completed in three phases as follows:
San Bernardino Proiect
ffiHS proposes to purchase the property comprised of two adjacent lots which total 70,400 square
feet located at 655 North "0" Street and 379 West 7th Street, San Bernardino, California. ffiHS
proposes to construct on this property a new 28,000 square-foot facility which will provide adequate
space to relocate the existing primary care clinic currently at the leased facility located at 1963 North
"E" Street and provide for additional space for expanded mental health and behavioral services
The construction of the San Bernardino medical facility is anticipated to be completed in two phases
as follows:
a. Phase I - November 1,2003 to August 31, 2004
The scope of work for Phase I provides for building a 28,000 square-foot facility of which only
approximately one-half will be developed with interior functions such as medical, dental and related
functions to provide for a complete functional outpatient clinic. The completed facility under Phase I
will have 23 medical exam rooms, 3 dental operatories, lab, x-ray, pharmacy and other ancillary
services. Total anticipated construction costs are $4.9 million.
b. Phase II - January 1,2004 to September 30, 2004
Phase II provides for completion of the 28,000 square-foot building to supply space for
administration, fiscal, social and support services functions to the extent funds are available. Total
anticipated construction costs are estimated at $1.5 million. Please refer to the attached application
summary for further details about the San Bernardino and Banning projects.
ENVIRONMENTAL IMPACT:
Not applicable.
FISCAL IMPACT:
The Agency will collect a small administrative fee of approximately $2,500 for coordination of the
TEFRA hearing. The proposed bonds do not constitute a debt of the City, or pledge of the faith and
credit of the City or the Agency. The proposed bond funding issuance will be secured by corporate
equity backed up by a Letter of Credit from Cal-Mortgage.
P:\Agel1das\Comm Dev Commission\CDC 2003\03-10.061888 TEFRA Hearing.doc
COMMISSION MEETING AGENDA
Meeting Date: 10/06/2003
Agenda Item Number:
Economic Development Agency Staff Report
ffiHS TEFRA Hearing
Page 3
RECOMMENDATION:
That the Mayor and Common Council adopt the attached resolution.
M.:MZ~
aggie Pacheco, eputy lrector
P:\Ageodas\CommDcv Commiasion\CDC 2003\03-10-06 IBHS TEFRA Hearins.doc
COMMISSION MEETING AGENDA
Meeting Date: 10/0612003
Agenda Item Number:
," .~
I"c' ..~ "<
. '.
i ;
t ..~
~ r"
, -
CALIFORNIA
COMMUNITIES
August27,2003
VIA FACSIMILE ry09) 81111-9413 AND REGULAR Mi\IL
Ms. Maggie Pacl1eco
Deputy Director
City of San lkmardino
201 Norrh E Sc:eer, Suire 301
San Bernardino, eA 92M)1
Re: Public H....,;ng for Inland BeQ,~vioral & Health SetviCCll. Tnc.
Dear Maggie:
Inland Debavioml & Health Services, lne. (the '~ppJ4:;ani") hll8 sublllittcd to the
California Statewide CO"''''lrtlitics DcvclopmcI1t Authority (the '~uthority'') an appliClLtion
(~ '~ppfu:ation'') for the financing certain medical facilities (the "Project'') Thwugh the
L'l.qWIOCC of tax.exempt obligation5 in lUl aggt'egate principalllUlount not to exceed '6.0
million. The Project will be located in the City of San llemafdip.o llt 655 No.rth "D" Sc:eet
and 379 7rh Street. The purpose of this letter is to rcq~t the as5i.tancc of the City of San
'Bernardino in conducting on either Mondoy Sf:ptl':mhf:r 15 or Octoher 6. 2003 a p\,blic
hearing with respect to the proposed financin8 in order to meet the projected bond closing
date of October 30, 2003.
A~ you ai'e aware, the Authol1ty i. a joint exercioe of powers authority con..i.til1g of
mllDerO\lS California cities, CO\1111k.S and special districts, ioch,ding The City of Son
Bernardino. The Authority pursuant to its Amended and Restated Joint Exercise of POWel5
Agreement L.autho~cd to. a..~.t in the financing of faciliries for nonprofit organiza,rions.
In order to initiate S\lCh a financing, the llu:mbcr participant of the Authority in which the
proposed faciliries will be located must (i) conduct ~ public hearing and (il) Ilpprove the
Authority's issuance of indebtedness. Therefore, although the Authority will be the issuer of
the rax-exempt obliglltioDS for the Applicant, the financing call1l\)t pnlCCccl wilhollL me
app~oval of the City of San Bernardino.
T have Ilttll.ched for YClur review the Application filed by the Applicant with the
Authority. You will be receiving shortly II ktrer Jtom Brian Quiur of Quiut & l";rnmig LT .P,
serving as bond counsel, describing the public hL-ating process and the ~c:qui.rc$ents under
BtatC llnd fedemllaws, including the Till< lllld Equity Fiscal Responsibili.ty Act (l'EFRA).
Tbi:; letter will also include for yow review the fotm of Npticc of Public Hearing and the
form of City COlUlcil Resolution evidencing the City's ~pproval of the financing. Bond
Counsel, ~t yow oprion, can col'ltdinatc for you the publication of the Notice and the
adoption of the Resolution.
~p~'I1!o.ur,,'J B).. C"lii,.rnl.'1 ')1.,..... :\S:>4.H.hlll(lfl (d (Ul1nth'" . I ".'lAtH' {II ,L"\lli'or'uid edu....
...!I'....~. (.11It,lrl1i.\ UI\d" Sllil(.' 5!\(\ . \'\dlnul (rl',.L, ,',lli'llrllid q4~qh .I{U\!.(,1'.ltJIJ,
-2-
AUgIl$t 27, 2003
'L'hank you for your assismnce in thi:; 1I1atter. Please let nu: know if you requite any
additionRI infotmation conceming the scheduling of such public hl!ll.ring or if I can be of
any other all$illtallce.
Very ~y youts,
~~~
.Michael~
Enclosures.. .
cc: Brian Quint, QlMt & 'l'himmig LLP (415-765-1555)
Addilionallnfonnation
A.
Detailed applicant historY
Inlllnd Behavioral and Health Sqrvices (Jl3HS) is a privllte. DonplOfil, community-based
organization providing primary health care. meow and human support arid development services to
Iow-inc;ome arid incligent eitizens <If tho Inland Elllpirc area fOl" over twenty-folD' years. Since its
establlsluncntin March 1978, mijS' missioq has been to improve Ihc health and welfare of the
community it serves in an 8c;c;e$Sible affordable manner. lBHS has evolved fro!l1 a sullstanCll abuse:
counseling organi1.ation to be a comprehensive pri!l1l1lY health care and human $CfVi~ delivery
S)'$tem targeted for thOSe rcsidarts of its .-vice 8Ril who cannot. for variou$ reawns, obtain \11_
~c:es through traditionalloc:al delivery systam.
~
The ovcnall objective of the agency is to help lho commllDily achieve and II1lIintain general good
health, education. and wel~ tbrougb <:oIDJl1itment in providing excellent lIeIVic:e in the 8fIl8S of
phY$icat health ~ mer.tal hel!ltb i!l1p1'OVC1Dll!ll, subslancll abuse treaIJIlcnt, ~ention ed~OII,
and entplo)'lD.eot preparation 8elVices. Currently, U~HS opeI'8blS and waivlpfolD' 1Dl!i0!' programs,
iIlcludipg: Westside Counseling Cenwr. Perinatal CBnl Nctworlc, Project }fome Again lIDdIBHS
.CoJilrnunity Health Care Clinic. WC$ide Coun$Cling Canlei' provides o~ent alcohol and drug
lI'eaUDllPt lIJ\d cclu4:ationalSCl!Viees to botIl ado!esccms arid Qlts. I\lriI1lllal em NetwQr!r. ill a day
care laI!bUilation progr8I!IpIOviding S\lbstancc a!:lusc edu<:alioa arid trcatJnent, case ~ arid
mental health inteNentiO:ns to wonien. iufants and children. This program provides anCiUaI}'
scmces in the Conn of trIInsportatioll; child care and health ClU'C. IBIiS COmmunity Health Cl\I'C
Clillic provides comprehensive primaIy healll! services. FIlI81ly, Project liome Again )lfOVides
suppOrtive hQusing $tlrvic:es to San aomarclino's hOlllllless JlllPUIation. taRS haS a staff of diverse
cultures and backgrounds. Having such a rich diversity allows its employees to be culturally and
linguistically sensitive in their approach to the tafget population and tile community as a whole.
Tbe QpeDing of the medical clinic in 1993 -.od 1be CXJl"I"iiI)Q to a. full-time, 4O-bour service in 1996,
In response to the lack of accessibility to tile loc:al Pfialary health care ~Iivery system by it$
behavioral health pali~ts have propelled IBm to reach a poinl whQ\\ now it 15 considered not only
a parlor the traditional 8IId established healtb care delivlll)' system but also for specific SC8!!lCllts Qf
the service area populatioll; to whom 18US is the only health care available.. The addition of
prinwy health care services bu aUowecllBHS to complete the circle in implementing II. multi-
disciplinary appfOllcb to delivering eare to its homeless and behavioral health clients. co!llbining
'aggressive street outreach with its inlegrated SCl!Vices, including. priJllary care, llIental health.
sUbsrance abuse, case management and cliecrt advocacy. .
Wilh the Certification as a FQHC Look Alike on March 16.2000 and the opening of the new
Whitney Young Family Health Clinic JWYFHC) 'Vithin one of San Bernardino's Public tiousing
Projec$ in October 2000, and the desiJ!ll8tion as a Fedci'al1y Funded Cominunity fJcaIth Center on
April I , 2002 (initial grant award foc April I, 2002 tlu'Ql!gh Fcbrua.Iy 28, 2003 totaled $482,861.
thereafiur S536.790 annually). lBHS has been able to il\crease access to comptelJeJlsive prinwy and
preventive health care to San Bernardino's medically underserved populatiQll. Thc propllSed
constnsction of the now facilities would cnablc JBHS to increase the level and ClqI3Dlf the sClVice
area. to the COR1ml!llity ofBIUming whic;h is in clirc need of such services as well as to prov~ ~
SCO'iccs inoluding dental care anci OII1er support services. With tho completion of those projects,
JBl{S ~ to more than cIoubling its primary care setVlces and to provick a greaIet contiPlWICC
of SC!Vices withintbe next three years. This is in direct respolISC to tho growil\g prill\alY health
needs of the community. JBHS is at thl,l beginning of a 24 to 36 month flurry of activity tl!at wiU
. significantly inacase its volume and change its stnlCl\ITC.
B. Descrivfion of proiect
JBHS propoS\lS to (IU1'Cbasc vacant propllrties to COII$lrUct two new medical facilities on them, one
in San Bernardino anci the other one in Bannin$. The oonslnICtion will be completed in three
phases as follows:
1. San B~ino ProjOl;t
JBRS proposes to purchase VI\ClIIIt Ianli. in tho Cily of SlIJ\ Bcroardino. The property is comprised
of two acljacent lots which toIaIe4 70,400 sq. it The ~ b the two properties ~ 65S North.
"0" $l.. and 379 7t\l St., San Bcrriar4ino, CA. The purc\ul~ price is $160,000 IInd ~OO.OOO .
res~ly. IaHSproposcs to OOllBtnlCl on this property a new 28,000 sq. It facilily which will
provl~ adcql\$tC .~ to rclacatc the ClldsUl'lg prillUll)' CI!TQ clinic ~~ _ \he leased facilily
and provide for od4itiooal SJ*C for ~ mcntld bealth and bcbavi()fll\SCl'Viccs. More
~tly. it will provide adequate ~ to bO\lso all serviQOS requ~ under the Federally
. Qualified HCliltl1 cen\er DosignatiQD, ~luding:Comprcboasive primaIy h~th \lOre. 4cntal
1abu,IlMy, X-ray, pluulnacy, \leaIth managCment anci other suppDn services. The ~ filcUity will
~ a tw~ry. Type B, ~1 fiIc\aily with exterior c:ot\cretc block walls MAl bIIlltup flat roof
with concealed !IlechaniCl!1 equipment and f111aWd off-site improvcments, inoludlng, two parldng
. areas. concrete CIIIbs gutters an siclewal\cs. IBlJS also prOposes to ~ fUmi\Ure and equipmem
to lUmisb and equip the new facility for a tolD! of$300,OOO.
The construction of the San Bernardino medical facility will be oomplotod in two phl!Scs.
Phase 1- November 1 ~OO3 to A.ugust J I. ~004
The soopeof work for phase 1 are m build a shellstrucwre of 28,000 square feet of which only
8jJproximatcly one-.\lalf will bedlM!loped Wi1h il1terior fUnotions ~ as mediC4l, (Ienta1, and
relato4 timctloos to provide for a C9IIlplctc functional outpati~ clinic. The co!llPletlld facility
'under Phase l wiU have 23 medical exam lQQlIIS, 3 dental operatories, lab, X-ray,l'Ilarme.9y, ~d
other ~cU1ary services. ..
Sources <;If funds for P"ase oPe wiU be provided as follows:
Bond Proceeds
mas Equity Contribution
Total Sources ofFulld
$4,270,000
638.1 60
~908J60
2
Phase ll-January I to September 30, 2004
The phase J( coll8lr\1cliQn is to complete the 28,OOO-square.f~ building \0 provide space for
,dminiotnnion, fiscal, social, and support services functiollli. The conslnlCtiQII uf space: for 1/1*
filnctions wiU be set up asBn a1tcn)ate bid 90 that Phase II may be initiated as the BOA funds
become available.
ConstructiOll IXlSlS for Phase n arc estimated 111 approximalely $1,S41,991. The BOA grant will
cover 100% ofttlcsc costs and will provide IIpproxirnately $450,003 towuds the coostruetion oithc
medical facilhy in the Cily of Banning.
2.lllSlUling Project (~m - October I, 2004 to June 30, 2005)
Tho proposed nClW facility to be located in the City Ilf Banning will be bllllt on ~ JIfOIlCl1.Y
COI!1priser! offOllJ" parcel$, which inoludeAPN# 541-200-009. S41-2OO'-QIo. S41-200-0l6, lIlld541-
20~IS. This property is 43,000 sq. ft.and the purchll!lCl price is $90,000. IBHS proposes to !mUd a
new tOOO sq. ft. facility 011 the ~ VlIC8I!t lolS. The DClW. faQility will be a single story
buUdingwith ext<<ior stucco finisb lU1d c;14y tile roof with attlo Qlolosed .Dech8pi~ equipment.
ToC:aI .~cost is C$l:imatcd at $1,366,498. AdditionaUy, IBHS proposes to pIifChase
fixedlmovable cqulpm!llltllldfumisbings for the ft~faoiJjly fat l!!leslimlltedlXlst ofS130,QQO.
Funds to complete the projectwiU be sought fi'oml1DA and the California EI1dowment
C. ComnrehenRivc s~ ofDl'Oiectpubllo benefits
tans providellll wide rallge of prim8IY hc;altll care meubll and humansuppon and development
semccs lafgeted to the low inCOlllCl and indigentpopu\Btion of the Inland Blnpire /!I'C8. since 1978.
MaQy of these services are provided at no charge to the client. !BUS utilizes a sliding fee discount
schedule, based. on . fll!liily siJe and income, following flldcral. poverty g\lidelinC$, to provide
discounts for rebnbutsable services provi~. The savings resulting from tile lliX-cxcnnpt bond
Under FQlIC, in addition 10 physician visits lBHS is ~ to provide <!ental care. pbannaoy,
diagnostic lab and Xrray. patient case management and prew!rtive beaIth seorlc:es. Tbe aimng
leased facility can nOl wen accommodate adcq\llItC space for basic physioian vis/IS since it only 1188
tbrce exam rooms.
2. Banni!lgPmject
TIle proposed new faci1ity in Banning will SerYll a highly impoverished populaUOJ!, as 58.3% oflbe
reSidents af this OOII1IIIunity ate low income and then: is no medical clinic Ibat ofl"mi sliding (""
. discounts based on the patients ability to pay.
The families residing in the City of Banning as well as the surrounding rllI'al area... 'Aeaumont and
Heme(, arc mulled ofCOllflll'ChCllSlvellcallh ClltO servicos. However. these fllUli1ies ere failing \.0
receive the neoesslIlY care due to Ia\:k of lK1CClSS to. as well as, cultutallY appl'Qpl'iatc bcaltlt oare
~ivery syst=m.
The B_iTlgIBea\!lllOl11 8I'C8$ MSSA ID number is #134. This isa newly. desigul!ted area. The
current population Slands at 47.404 people of which ~,Q07 arc c/lildi1::n .\d.l0Q.:2QOpe.iWnt of1b",
F~Poverty Level(l?PL) and S.OZ9fall below thO FPL by 200 pel'\lllllt ofFPL. fourpcrol'irt or
1.640 arc ohil4n::n ."ligible for Healthy'FlliniliCS. The numbcrof~thJIrQv~~t1y serving
tltose areas includes 88 physicians and 4 dentists. Of these CIlJ'I'CIIt pcqvi~ SpI1ysicians are
pedillIriewith one pedil!1ric cardiologist, 12 ere fllinily practice, 9 are emorglllW)' medicine. These
figures arc based upotl the data compiled by The California Oeparbncnt afffcalth Services. Primary
and Rural Real1b Clue. Syste!JIS Division llli1lzi1lG data frQm OSffl'D d,emograplUc data from 1990
census andn-om the Oec~ber 1997 UCLA Report for HFP eligible. .
Like most families living in rural areas. the reSidents afBanning IU'C documlll'tIld as facing the same
h!uriers to Nc:eiviug adequate health services. These barriers an:o:
· Lack of transportation, cid1er adequate or not
. ~y travel distances to CoUl1\y Health Facilities
. Poor road conditions and inaccessible roads from outer lying areas of Banning and
Beaumootwith little ifan.Y available publjctransportatla~
. Non aYllilability of cllild care providers in the area
. Lack cult\lfally sensitive and IClcvan~ h(lll/lb providers tiather. isolating 63 percent of
linuted &g1ish spcakWg people
The high cost of treatment and medicines o(\at prohibit Bal!niug'$ IQW income residents from
receiving the care they need. Banuing's tax. revenue basis is low due to low propeIty values lUId the
dinlinislilngconstruc:tion of new homes. .
This. projllCt will provide highly needed comprehensive health care services to low ipcome
residents living in Bannip,g and to people scaUered between the cities of aanning and Beaumont
and IiUlTOUI!dipg areas. .
4
3. SetVioe E:l\pansion
lnllllld Behavioml and Reallh ~ices, Jnc. proposes to lIXIIlIII4 on tho services currently provickld
at me main Clinic. The ~y lidded actlvities proposed IIJ1der Ibis funding for tho San Pcmardino's
proposed new lQ\lation, include: Phamiac:y.laboratmy. X-ray, dental care. h~ edutlltion (both
individual and group), casc R1lIIIBplent, assistance in Medi-caI and o1lIcr insufanco cligibiliw,
nutrition, psychosocial. and prenatal and postparI1Il\\ care wilh lIlT1l"~ fix deliVery sOivicos.
As part of its c;oalition wllh CaIffilmia Perinatal Services Program, the new clinic will provide
p.-aatal \l8fl;, health education, Medi-Cm insurance and $lllVicc rofmal services to unders\lrVed,
p~ women, and C(lIICeD\I'8te on~ng to mOl1Olillpl 8Plll1ish speaking women who are
disen11anchised from traditional health care services. Through 00llIl1y and sratc conlJ'aOtS.
additiQl1ll! scxviCCli wiU include HIV and sm testing. WI/cation muf 1"00aWon. .t\lso lIvl!ilable to
the patiel1111 will be inental health and SIIbstance abuse programs that IQolude CO\!IlSeljngand case
Il1llIlBgCI1Icnt W~.in, DOD-urgcnt clinic l!efVices wiU be ofl'ered along wi1h full iq1inUlli~on
8eIVices. PatiCllts iIceding opIOlIlel1y and podiatric care will have $1CCSS to part-time ~
Sl"""ll1li"'s who will be ClOlIdtIotiIIg rota.tions tbrougb. tho clinio. QonW. facilities, t\JIl.;scaIc
labomo!Y filcilitics, on-$ite pham1acy nnd radiology will_I: the clinic II llnMtOp soorce fur ell
of the medical needs oCtile patient popu~on. .
The S\lfVical to be \ifOVicll;d at the proposed new clinic to be located in BanniQ8 include: medical,
dental. referral, o~ mental health and llthcr wpportll!lrVic;es. JaHS profIOSOS to hire one
pedill11iciau, one general praclitioncw and one mid-level praCtitionCl' ail Well a pilMime cIeiltist and
II dental hy$lenisl as part of the core staff.. Addilill!l!ll services such as mCl!ta1 /Iea1th and homeless
l;CIViCCli will be provided by rotalfug staff from the IQ!Iin olinic.located.in the. ~ of San
Bernardino.
D. Addresses of each facility to be financed
~ PRlpOScs to pUTCbase vacant land in the OilY of San QemanJino. The propetty is comprised
oflWo adj_t lots. The ~are 655 Nonh "0" 81. and 379 7th St., San BcnwtUnQ, CA.
The proposed l1ewfacility to be lQ\lated in the City of Banning win be built on vacant property
comprised offour p~1s, wroCb incluc1eAPN# 541-200-009,541-200-010. 541-200..0Hi.1UId. 541-
2~IS. .
E. . ~videnccof credit enhanccmClnt or iDleDl to Durchase bonds
The Commi1mcnt Letij:r from Cal-Mortgage is aItacbed.
f'. List of outstandiRl! tax-eltIll1lDt debt
None
G. Einanoial statements for last oomDlcte fiscal veQl'
A copy of audited June 30, 2002 Financial Statements is al'lached
5
H. Project costs
Total project costs for phase I are ~ted at $4,908,160 whi~ include land acquisition,
~iWctunll and cnginec:riog, c;oostnICtioo costs, f.xe4 and mOVable ~ipnoot. costs of W"'fl"ne.
debt service ~ and inslll'8lll:C premimn fees.
mHS plOpOSOS to fioanQe tbe phase I project by iliSuing $4,270,000 tax-exempt revenue bo~
COIllbined with 1638,160 of corporate equity.
Uses ofFIII1ds;
Land AcquIsition
Appmisal
ClIl-EPA
1'180 Check Fees. Permits, etc.
Alchi~ne
Coo~on
TnsurancWComple!ion Bonds
Contingency
f~ble Equipment
Total Project Cos\S
Costs QflSsuaooe
Loan Origi~oo Fees
DIlbl Service Roscl've
Gross Capitalized Interest
Insurance Premium Fees
Total Uses ofFlDlds
$45S.Q()O
6,450
2,600
180,000
2811,120
2,45Q,OOO
66,125
245,000
300.DOO
$3.985.295
'. 193,980
42,700
295,420
152,119
238.646
S4 908106
So1l(Cell of Funds:
Loan PfO(leC(\s (67%)
Corporate Equity (13%)
Total ~Qffimds
S4,270.000
618.160
.
$4.908.106
I. Interested Dames list
See mached
]. S 1.500 non-r.etundable IIDJllication f~ payabllllo CSAC Finance C'.ll1]lt11'lItion
The check will be tnlIiled directly by the bom:Jwer to CSAC.
6
1
RESOLUTION NO.
2
3
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING THE ISSUANCE OF BONDS
BY THE CALIFORNIA STATEWIDE COMMUNlTffiS DEVELOPMENT
AUTHORITY FOR THE PROPOSED NEW INLAND BEHAVIORAL AND
HEALTH SERVICES, INC. MEDICAL FACILITY
4
5
6
WHEREAS, Inland Behavioral and Health Services, Inc., a California nonprofit public
7
benefit corporation (the "Corporation"), has requested that the California Statewide
8
Communities Development Authority (the "Authority") participate in the issuance of one or
9
more series of revenue bonds in an aggregate principal amount not to exceed $4,270,000 (the
10
"Bonds") to (a) finance the acquisition of two adjacent parcels at 655 North "D" Street and
379 7th Street, in San Bernardino, California, (b) construct thereon of an approximately 28,000
square-foot building and (c) construct improvement to, and equip, one-half of the building for
11
12
13
the provision of medical, dental and related functions for a complete functional outpatient
14
clinic, replacing the Corporation's current leased space, all to be owned by the Corporation in
15
connection with its provision of physical health care, substance abuse treatment, mental health
16
improvement, homeless and prevention education services (the "Project"); and
17
WHEREAS, pursuant to section 147(f) of the Internal Revenue Code of 1986 (the
"Code"), the issuance of the Bonds by the Authority must be approved by the City because the
18
19
Project is located within the territorial limits of the City; and
20
WHEREAS, the Common Council (the "City Council") is the elected legislative body
21
of the City and is one of the applicable elected representatives required to approve the
issuance of the bonds as a member of the Authority under Section 147(f) of the Code; the
22
23
Bonds will be issued by the Authority and the City will have no obligations with respect
24
thereto; and
25
IIII
P;\Agendas\Rcsolutiont\Rcsolutions\2003\03-lo-o6 IBHS TEFRA Hearing.doc
1
WHEREAS, the Authority has requested that the City Council approve the issuance of
2 the Bonds by the Authority in order to satisfy the public approval requirement of Section
3 1479f) of the Code and the requirements of Section 9 of the Amended and Restated Joint
4 Exercise of Powers Agreement, dated as of September I, 1988 (the "Agreement"), among
5 certain local agencies, including the City; and
6 WHEREAS, pursuant to Section l47(f) of the Code, prior to their issuance, private
7 activity bonds are required to be approved by the "applicable elected representative" of the
8 governmental units on whose behalf such bonds are expected to be issued and by a
9 governmental unit having jurisdiction over the entire area in which any facility fmanced by
10 such bonds is to be located, after a public hearing held following reasonable public notice;
II and
12 WHEREAS, there has been published, at least 14 days prior to the date hereof, in the
13 Sun newspaper of general circulation within the City, a notice that a public hearing regarding
14 the Bonds would be held on October 6, 2003; and
15 WHEREAS, such public hearing was conducted on October 6, 2003 by the Mayor and
16 City Council, at which time an opportunity was provided to interested parties to present
17 arguments both for and against the issuance of the Bonds; and
18 WHEREAS, it is intended that this Resolution shall constitute the approval of the
19 issuance of the Bonds required by Section 147(f) of the Code and Section 9 of the Agreement;
20 NOW, THEREFORE, IT IS HEREBY RESOLVED, DETERMINED AND
21 ORDERED BY THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN
22 BERNARDINO, AS FOLLOWS:
23 Section 1. The City Council hereby approves the issuance of the Bonds by the
24 Authority. It is the purpose and intent of the City Council that this Resolution constitutes
25 approval of the Bonds for the purposes of (a) Section l47(f) of the Code by the applicable
P:\Agendas\Resolutions\Re$olutions\2003\03-10-06 IBIIS TEFRA Hearing.doc
2
1 elected representative of the governmental unit having jurisdiction over the area in which the
2 Project is located, in accordance with said Section 147(f), and (b) Section 9 of the Agreement.
3
The officers of the City are hereby authorized and directed, jointly and
Section 2.
4 severally, to do any and all things and to execute and deliver any and all documents that they
5 deem necessary or advisable in order to carry out, give effect to and comply with the terms
6 and intent of this Resolution and the financing approved hereby.
7
The City Clerk of the City shall forward a certified copy of this
Section 3.
8
Resolution and a copy of the affidavit of publication of the hearing notice to:
Ana Marie del Rio, Esq.
Orrick, Herrington & Sutcliffe LLP
Old Federal Reserve Bank Building
400 Sansome Street
San Francisco, California 94111
9
10
11
12
Section 4.
This Resolution shall take effect upon its adoption and execution in the
13 manner as required by the City Charter.
14 IIII
15
fill
16 1///
17
fill
18 fill
19 ///1
20 /1/1
21 1/1/
22 1/11
23 IIII
24 IIII
25 fill
P:\Agendas\Resolutions\Resolutions\2003\03~10-061BHS TEFRA Hearing.doc
3
1
RESOLUTION OF THE MAYOR AND COMMON COUNCIL OF THE
CITY OF SAN BERNARDINO APPROVING THE ISSUANCE OF BONDS
BY THE CALIFORNIA STATEWIDE COMMUNITIES DEVELOPMENT
AUTHORITY FOR THE PROPOSED NEW INLAND BEHAVIORAL AND
HEALTH SERVICES, INC. MEDICAL FACILITY
2
3
4
5
I HEREBY CERTIFY that the foregoing Resolution was duly adopted by the Mayor and
6
Common Council of the City of San Bernardino at a
meeting thereof, held on the
7
day of
, 2003, by the following vote to wit:
8
Council Members:
Aves
Abstain
Absent
Navs
9
ESTRADA
LONGVILLE
MCGINNIS
DERRY
10
11
12 SUAREZ
13 ANDERSON
14 MC CAMMACK
15
Rachel G. Clark, City Clerk
16
The foregoing resolution is hereby approved this
day of
,2003.
17
18
19
Judith Valles, Mayor
City of San Bernardino
20
Approved as to form and Legal Content:
21
By:
City Attorney
22
23
24
25
P:\AgenlW\Rcsolutions\Re50lutions\2003\03-I0.{l6 IBHS TEFRA Hearing.do<:
4
ECONOMIC DEVELOPMENT AGENCY
OF THE CITY OF SAN BERNARDINO
DATE: September 4,2003
SUBJECT: OCTOBER 6, 2003 PUBLIC HEARING
ON THE TAX AND EQillTY FISCAL
RESPONSIBILITY ACT (TEFRA) FOR
INLAND BEHAVIORAL HEALTH
SERVICES, INe.
FROM: Maggie Pacheco
Deputy Director
--------------------------------------------------------------------------------------------------------------------------
SvnoDsis of Previous Commission/Council/Committee Action(s):
On September 4, 2003, Redevelopment Committee Members Anderson, Suarez and Estrada unanimously voted to
recommend that the Mayor and Common Council consider this action for approval.
--------------------------------------------------------------------------------------------------------------------
Recommended Motion(s):
MOTION:
(Mavor and Common Council)
THAT THE MAYOR AND COMMON COUNCIL OF THE CITY OF SAN BERNARDINO SET A
OCTOBER 6, 2003 PUBLIC HEARING TO CONSIDER THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY ISSUANCE OF BONDS FOR THE PROPOSED
NEW INLAND BERA VIORAL AND HEALTH SERVICES, INC. MEDICAL FACILITY
--------------------------------------------------------------------------------------------------------------------
Contact Person(s):
Gary Van Osdel
Uptown
Phone:
(909) 663- I 044
2
Project Area(s)
Ward(s):
Supporting Data Attached: It! Staff Report 0 Resolution( s) 0 Agreement( s )/Contract( s) 0 Map( s) 0 Letters
'UN"'NG ""'ill""""" /::.. o~t:
(_/i/
$
N/A
----------------------------------------------------------------------------------------.
P:\Agendas\Comm Dev Commission\CDC 2003\03-09-15 IBHS TEFRA Hearing.doe
COMMISSION MEETING AGENDA
Meeting Date: 09/15/2003
Agenda Item Number: /L2I)
ECONOMIC DEVELOPMENT AGENCY
STAFF REPORT
.---------------------.----------------------------------------------------------------------------
October 6. 2003 Public Hearine on the Tax and Eauity Fiscal Responsibility Act (TEFRA)
for Inland Behavioral Health Services. Inc.
BACKGROUND:
California Statewide Communities Development Authority ("Authority") is a joint exercise of powers
authority consisting of numerous California cities, counties and special districts, including the City of
San Bernardino ("City"). The Authority, pursuant to its Amended and Restated Joint Exercise of
Powers Agreement, is authorized to assist in the financing of facilities for profit and nonprofit
organizations.
Inland Behavioral and Health Services, Inc. (ffiHS), a non-profit agency, has submitted an
application to the Authority to [mance the construction of a new medical facility at 655 North "D"
Street and 379 West 7th Street in San Bernardino through the issuance of tax-exempt bonds in an
amount not to exceed $6 million.
CURRENT ISSUE:
The Authority has requested that the City of San Bernardino conduct a Tax and Equity Fiscal
Responsibility Act (TEFRA) hearing as required by federal law regarding ffiHS' proposed financing
to construct a new medical facility in San Bernardino.
ENVIRONMENTAL IMPACT:
The setting of a public hearing does not require CEQA review.
FISCAL IMPACT:
None.
RECOMMENDATION:
Council adopt the Form Motion.
----------------------------------------------------------------------------------
P:\Agendas\Comm Dev Commission\CDC 2003\03.()9..1S IBHS TEFRA Hl.:8ring.doc
COMMISSION MEETING AGENDA
Meeting Date: 09/15/2003
Agenda Item Number: l2.34:-
r
"".,,,,
"
** FOR OFFICE USE ONLY - NOT A PUBLIC DOCUMENT **
RESOLUTION AGENDA ITEM TRACKING FORM
Meeting Date (Date Adopted): I \ - I" -03 Item # /2.:~ "'i- Resolution #
Vote: Ayes (- 'l Nays-<5 Abstain .0-
Change to motion to amend original documents: /
Reso. # On Attachments: --=- Contract term: -
Note on Resolution of Attachment stored separately: =--
Direct City Clerk to (circle I): PUBLISH, POST, RECORD W/COUNTY
Date Sent to Mayor: 11-1"1.0.2,
Date of Mayor's Signature: l\-L-O -0)
Date ofClerk/CDC Signature: I \-'Z() -03
Dat~mo/Letter Sent for Signature:
-
60 Day Reminder Letter Sent on
90 Day Reminder Letter Sent on 45th day:
See Attached:
See Attached:
See Attache
Request for Council Action & Staff Report Attached:
Updated Prior Resolutions (Other Than Below):
Updated CITY Personnel Folders (6413, 6429, 6433, 10584, 10585, 12634):
Updated CDC Personnel Folders (5557):
Updated Traffic Folders (3985, 8234, 655, 92-389):
Copies Distributed to:
v'"
City Attorney
Parks & Rec.
Code Compliance
Dev. Services
Police
Public Services
Water
Notes:
"2tx:B '<31 \
Absent B
NulVVoid After:-
By: -
Reso. Log Updated:
Seal Impressed:
./
../"
Date Returned:
Yes /' No By
Yes No~ By
Yes No ../ By
-
Yes No ./ By
Yes No/ B
fcllt
EDA ../
Finance
MIS
Others:
BEFORE FILING. REVIEW FORM TO ENSURE ANY NOTATIONS MADE HERE ARE TRANSFERRED TO THE
YEARLY RESOLUTION CHRONOLOGICAL LOG FOR FUTURE REFERENCE (Contract Term. etc.)
Ready to File: _
Date:
Revised 01112/01