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HomeMy WebLinkAbout1700 AN ORDINANCE OF THE CITY COm~CIL OF THE CITY OF ARCADIA PROVIDING FOR THE CITY OF ARCADIA HEALTH FACILITIES REVENUE BOND LAW, INCLUDING GENERAL PROVISIONS AND DEFINITIONS, POWERS AND PROCEDURES TO ISSUE REVENUE BONDS FOR THE PURPOSE OF PROVIDING FINANCING TO PARTICIPATING HEALTH INSTITUTIONS FOR. SPECIFIED PURPOSES, AND CERTAIN OTHER SUPPLEMENTAL PROVISIONS. " R E C I TAL: - - -- WHEREAS, the City of Arcadia (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 fOD of Article II of the Charter of the City~ (the .Charter"); 1 1700 - ~rt~~A~, tne Clty Councll ot the City acting under and pursuant to the powers reserved to the City under Sections 3, 5 and 7 of Article XI of the Consti- tution of the State of California and Section 200 of Arti- cle II of the Charter, finds that the public interest and necessity require the establishment by this procedural ordinance of a procedure for the authorization, issuance and sale of revenue bonds by the City for the purpose of providing financing or refina~cing to certain health institutions for certain purposes as specified herein; NOW, THEREFORE, THE COUNCIL OF THE CITY OF ARCADIA DOES ORDAIN as follows: SECTION 1. The following City of Arcadia Health Facility Revenue Bond Law labeled Chapter I is hereby adopted. 2 1700 CITY OF ARCADIA HEALTH FACILITY REVENUE BOND LAW ARTICLE 1. GENERAL PROVISIONS AND DEFINITIONS Section J- This chapter may be cited as the City of Arcadia Health Facilities Revenue Bond Law. Section ~. The Council hereby finds and de- clares that it is necessary, essential, a public ~ purpose and a municipal affair for the City to be authorized to provide financing to health institu- tions within the City that provide essential services to residents of the City in order to aid such health institutions in containing costs and thereby to enable such health institutions to establish lower charges or containment of the rate of increase in hospital rates. Unless the City intervenes to provide such financing or refinancing, such rates and charges may increase at an ever' accelerated pace because such health institutions cannot obtain financing at equiv- alent cost from private sources. 3 1700 Section 3. Unless the context otherwise re- quires, the terms defined in this chapter shall have the following meanings: (a) "Bonds" ~eans any bonds, notes, ceitifi- cates, debentures or other obligations issued by the City pursuant to this chapter and payable ex- clusively from revenues as in this chapter defined and from any other funds specified in this chapter upon which such obligations may be made a charge and from which they are payable. (b) .City" means the City of Arcadia. (c) "Cost" means the total of all costs incurred by or on behalf of a participatIng health institution as are approved by the City as reasonable and neces- sary for carrying out all works and undertakings necessary or incident to acquisition, construction, financing or refinancing of a health facility. "Cost" shall include all such costs, including costs for con- struction undertaken by a participating health facility as its own contractor, which under generally accepted 4 1700 accounting principles are not properly chargeable as an expense of operation and maintenance. (d) "Council" means the City Council of the City of Arcadia. (e) "Health facility. means any facility, place or building within the City which is maintained and operated for the diagnosis, care, prevention and treatment of human illness, physical or mental, in~ eluding convalescence, rehabilitation and care during and after pregnancy or for anyone or more of these services, and which provides and will continue pro- viding to residents of the City essential health care services designated as such in an agreement between the City and the participating health insti- tution providing or operating such facility, place or building. Health facility includes a portion of one of the above .types of facilities and includes the fol- lowing facilities if operated in conjunction with one of the a.bove types of facilities: a laboratory, a laundry, a nurses' or interns' residence, a housing 1700 5 ~ity for patients, staff or employees and the families of any of them, an administration building, an office building, a research, maintenance, storage, utility or parking facility and all structures or facilities related to any of the foregoing or required or useful for the operation of a health facility. Health facility ,shall not include any facility or building used or to be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship. (f) "Participating health institution" means a private nonprofit corporation or association autho~ rized by the laws of the State to provide or operate a health facility as defined in' this chapter and which, pursuant to the provisions of this chapter, undertakes the financing of the acquisition and con- struction of a health facility or undertakes the refunding or refinancing of obligations incurred to finance the acquisition and construction of a health facility. 6 1700 (g) "Revenues" means amounts received by the City as repayment of principal, interest, and all other charges with respect to a loan under this chap- ter, any proceeds received by the City from mortgage, hazard or other insurance on or with respect to such a loan, all other rents, charges, fees, income and receipts derived by the City from the financing or refinancing of a health facility under this chapter, any amounts received by the City as investment earn- irigs on moneys deposited in a reserve fund or any sim- ilar fund securing bonds, and such other moneys as the Council may, in its discretion lawfully designate as revenues. ARTICLE 2. FINANCING HEALTH FACILITIES Section 1. The Ci ty may make, purchase, or otherwise contract for the making of,. a mortgage or other secured or unsecured loan, upon such terms and conditions as the'City shall deem proper, to any participating health institution for the cost of ac- quiring or constructing a health facility or financ- ing thereof; provided, however, that no such loan shall exceed the total cost of such health facility 7 1700 as determlned by the participating health institution and approved by the City. ",' Section 2. The City may make, purchase, or otherwise contract for the making of a mortgage or other secured or unsecured loan, upon such terms and conditions as the City shall deem proper, to any participating health institution to refund or refinance outstanding obligations of such partici- pating health institution incurred to finance the cost of acquiring or constructing a health facility, whether such obligations were incurred prior to or after the enactment of this chapter, if the City finds that such refunding or refinancing is in the public interest and either alleviates a financial or operating hardship of such participating health institution, or is in connection with other financing by the City for such participating health institution or may be expected to result in lower charges or con- tainment of the rate of increase in hospital rates and a saving to third parties, including government, and to others who must pay for care, or any combination thereof. 8 1700 Section 3. The City may acquire, construct, enlarge, remodel, renovate, alter, improve, furnish, equip, own and lease as lessee a health facility for the purpose of selling or leasing such health facility to a participating health institution, and may designate such participating health institution as its agent to undertake to construct, enlarge, remodel, renovate, alter, improve, furnish, and equip such health facility. The City may sell or lease, upon such terms and conditions as the City shall deem proper, to a participating health institution any health facility . . owned by the City under this chapter, including a health facility conveyed to the City in connection with a financing under this chapter but not being financed or refinanced hereunder. Section....!: The City may charge participating health institutions application, commitment, financing and other fees, in order to recover all direct adminis- trative and other costs and expenses incurred in the exercise of the powers and duties conferred by this chapter. 9 1700 1 obtaining, from any department or agency of the United States or of the State of California or any private company, any insurance or guarantee as to, or of, or for the payment or repayment of, interest or prin- cipal, or both, or any part thereof, on any loan, lease or sale obligation or any instrument evidencing or securing the same, made or entered into pursuant to the provisions of this chapter; and may accept payment in such manner and form as provided therein in the event of default by a participating health institution, and may assign any such insurance or guarantee as security for bonds. Section 6. The City may fix rents, payments, fees, charges and interest rates for financing under this chapter and may agree to revise from time to time such rents, payments, fees, charges and interest rates to reflect changes in interest rates on bonds, losses due to defaults or changes in other expenses related to this chapter, including City administrative expenses. 10 1700 .:><:'-'-J.UIl I. 'l"ne Clty may hold deeds of trust or mortgages as security for loans under this chapter and may pledge or assign the same as security for repayment of bonds. Such deeds of trust or mortgages may be assigned to; and held on behalf of the City by, any bank or trust company appointed to act as trustee by the City in any resolution or indenture providing for issuance of bonds. Section 8. The City may employ such engineer- ing, architectural, financial, accounting, legal or other services as may be necessary in the judgment of the City for the purposes of this chapter. Section ~ In addition to all other powers specifically granted by this chapter, the City may do all things necessary or convenient to carry out the purposes of this chapter. ARTICLE 3. BONDS Section 1. (a) The City may, from time to time, issue bonds for any of the purposes specified 11 1700 .... ....~...~Q \,........a.t''-C.L. tlonds snaLL oe nego- tiable instruments for all purposes, subject only to the provisions of such bonds for registration. (b) Every issue of bonds shall be a limited obligation of the City payable from all or any spe- cified part of the revenues and the moneys and assets authorized in this chapter to be pledged or assigned to secure payment of bonds. Such revenues, moneys or assets shall be the sole source of repayment of. such issue of bonds. Bonds issued under the provi- sions of this chapter shall not be deemed to consti- tute a debt or liability of the City or a pledge of the faith and credit of the City but shall be payable solely from specified revenues, moneys and assets. The issuance of bonds'shall not directly, indirectly, or contingently obligate the City to levy or pledge any form of taxation or to make any appropriation for their payment. All bonds shall contain on the face thereof a statement to the following effect: \ ~.2 \ , \ 1700 U'W""\o.U'I;;1. \..1lt:: .i..d.l{..!l dUO creal'C nor tne taxlng power of the City is pledged to the payment of the principal of, or premium or interest on this bond. Section ~. In determining the amount of bonds to be issued, the City may include all costs of the issuance of such bonds, reserve funds, and capitalized bond interest. Section 3 Bonds may be issued as serial bonds, term bonds, installment bonds or pass-through certificates or any combination thereof. Bonds shall be authorized by resolution of the Council and shall bear such date or dates, mature at such time or times, bear interest at such fixed or variable rate or rates, be payable at such time or times, be in such denomi- nations, be in such form, either coupon or registered, carry such registration privileges, be executed in such manner, be payable in lawful money of the United States of America at such place or places, be subject to such terms of redemption and have such other terms and conditions as such resolution or any indenture authorized by such resolution to be entered into 13 1700 a pUblic or private sale and for such prices as the City shall determine. Pending preparation of defini- tive bonds, the City may issue temporary bonds; which shall be exchanged for such definitive bonds when prepared. Section 4. Any resolution authorizing any bonds or any issue of bonds, or any indenture autho- rized by such resolution to be entered into by the City, may contain provisions respecting any of the following terms and conditions which shall be a part of the contract with the holders of such bonds: (a) the terms, conditions and form of such bonds and the interest and principal to be paid thereon, (b) limitations on the uses and purposes to which the proceeds of sale of such bonds may be ap- plied, and the pledge or assignment of such proceeds to secure the payment of such bonds, 14 1700 parity bonds, the terms upon which additional parity bonds may be issued and secured, and the refunding of outstanding bonds, (d) the setting aside of reserves, sinking funds and such other funds as are necessary and the regUlation and disposition thereof, (e) the pledge or assignment of all or any part of the revenues and the use and disposition thereof, subject to such agreements with the holders of bonds as may ,then be outstanding, (f) limitation on the use of revenues for expen- ditures for operating, administration or other expenses of the City or a participating health institution, (g) specification of the acts or omissions to act which shall constitute a default in the duties of the City or a participating health institution to holders of such bonds, and providing the rights and remedies of such holders in the event of default, 15 1700 '''~'''UU.''':l CUlt J.J.IlI~ 1:a1:~ons on tne rlght of action by individual bondholders, (h) the appointment of a corporate trustee to act on behalf of the City and the holders of its bonds, the pledge or assignment of loans, deeds of trust, mortgages and any other contracts to such trustee, and the rights of such trustee, (i) the procedure, if any, by which the terms of any contract with bondholders may be amended or abrogated, the amount of such bonds the holders of which must consent thereto, and the manner in which such consent may be given, and (j) any other provisions which the Council may deem reasonable and proper for the purposes of this chapter and the security of the bondholders. Section 5. Any pledge of revenues or other moneys or assets pursuant to the provisions of this chapter shall be valid and binding from the time such pledge is made. Revenues, moneys and assets 16 1700 .. immediately be subject to the lien of such pledge without any physical delivery thereof or further act, and the lien of any such pledge shall be valid and binding as against all parties having claims of any kind in tort, contract, or otherwise against the City, irrespective of whether such parties have notice thereof. Neither the resolution nor any inden- ture by which a pledge is created need be filed or recorded except in the records of the City. Section JGNeither the members of the Council, the officers or employees of ttie City, nor any person executing any bonds shall be liable personally on the bonds or be subject to any'personal liability or accountability by reason of .the issuance thereof. Section ~ The City shall have the power out of any funds available therefor to purchase its bonds. The City may hold, pledge, cancel, or resell such bonds, subject to and in accordance with agree- ments with the bondholders. 17 1700 ..u~ u.......\..n..;J,. ............ UVIJY;::! L~;::'Ut::U UllUt::=l. the provisions of this chapter or any of the coupons appertaining thereto, and any trustee appointed pur- suant to any resolution authorizing the issuance of bonds, except to the extent the rights thereof may be restricted by such resolution or any indenture authorized thereby to be entered into by the City, may, either at law or in equity, by suit, action, mandamus, or other proceedings, protect or enforce any and all rights specified in law or in such reso- lution or indenture, and may enforce and compel the performance of all duties required by this chapter or by such resolution or indenture to be performed by the City or by any officer, employee, or agent thereof, including the fixing, charging, and collect- ing of rates, fees, interest, and charges authorized and required by the provisions of such resolution or indenture to be fixed, charged, and collected. Section.9 . (a) The Ci ty may issue bonds for the purpose of refunding any bonds then outstand- ing including the paym~nt of any redemption premiums thereof and any interest accrued or to accrue to the 18 1700 sequen purchase, or maturity of such bonds. redemption, (b) The proceeds of bonds issued for the purpose of refunding any outstanding bonds may, in the discretion of the City, be applied to the purchase or retirement at maturity or redemption of such outstanding bonds, either at their earliest or any subsequent redemption date or dates or upon the purchase or retirement at the maturity thereof and may, pending such application, be placed in escrow, to be applied to such purchase or retirement at maturity or redemption on such date or dates as may be determined by the City. (c) Pending use for purchase, retirement at maturity or redemption of outstanding bonds, any proceeds held in escrow pursuant to subdivision (b) may be invested and reinvested as provided in the resolution or indenture. Any interest or other incre- ment earned or realized on any such investment may be applied to the payment of the outstanding bonds to be refunded or to the payment of interest on the refunding bonds. After the terms of the escrow have been fully satisfied and carried out, any balance 19 1700 vL~oceeds and any lnterest or increment earned or of such proceeds and any interest or increment earned or realized from the investment thereof may be returned to the City to be used by it for any lawful purpose. (d) All bonds issued pursuant to this section shall be subject to the provisions of this chapter in the same manner and to the same extent as other bonds issued pursuant to this chapter. Section 10 . The validity of the authorization and issuance of ,any bonds is not dependent on and shall not be affected in any way by any proceedings taken by the City for the making of any loan or the entering into of any agreement, or by the failure to make any loan or enter into any agreement, for which bonds are authorized to be issued under this chapter. ARTICLE 4. SUPPLEMENTAL PROVISIONS Section 1 . This chapter being necessary for the welfare of the City and its inhabitants, shall be liberally construed to effect its purposes. 20 1700 oJ -----.. -- ...~...... _.........~........... to ,order the proposed act is not affected, any omission of any officer or the City in proceedings under this chapter or any other defect in the proceedings shall not invalidate such proceedings or the bonds issued pursuant to this chapter. Section 3. This chapter is full authority for the issuance of bonds by the City for the purposes specified herein. Section 4. This chapter shall be deemed to provide a complete, additional, and alternative method for doing the things authorized thereby, and shall be regarded as supplemental and additional to the powers conferred by other laws. The issuance of bonds under the provisions of this chapter need not comply with the requirements of any other law applicable to the issuance of bonds. The purposes authorized hereby may be effectuated and bonds may be issued for any such purposes under this chapter notwithstanding that any other law may provide for such purposes or for the issuance of bonds for like purposes and without regard to the requirements, 21 1700 tained in any other law. Section ~. To the' extent that the provisions of this chapter are inconsistent with the provisions of any general statute or special act or parts thereof the .provisions of this chapter shall be deemed controlling. Section 6. If any provision of this chapter or the application thereof to any person or circum- stance is held invalid, such invalidity shall not affect any other provision or application of this chapter which can be given effect without the invalid provision or application, and to this end the provi- sions of this chapter are declared to be severable. The Council hereby declares that it would have adopted and passed this chapter and each chapter, section, subsection, sentence, clause, phrase and word hereof, irrespective of the fact that anyone or more of the other chapters, sections, subsections, sentences, clauses, phrases or words hereof be declared invalid or unconstitutional." 22 1700 - Section 2. This ordinance shall take effect and be in force on the thirty-first day after its passage. SECTION 2. If any section, subsection, sentence, clause, phrase or portion of this ordinance is, for any reason, held to be invalid or unconstitutional by the decision of any court of competent jurisdiction, such decision shall not affect. the validity of the remaining portions of this ordinance. The City Council of the City of Fxcadia hereby declares that it would have adopted this. ordinance and each section, subsection, sentence, clause, phrase or portion thereof irrespective of the fact that anyone or more sections, subsections, sentences, clauses, phrases or portions be declared invalid or unconstitutional. SECTION 3 .Neither the adoption of this ordinance nor the repeal hereby of any ordinance shall in any manner affect the prosecution for violation of ordinances, which violations were committed prior to the effective date hereof, nor be construed as affecting any of the provisions of such ordinance relating to the collection of any such license or penalty or the penal provisions applicable to any violation thereof, nor to affect the validity of any bond or cash deposit in lieu thereof, required to be posted, filed or deposited pursuant to any ordinance and all rights and obligations thereunder appertaining shall continue in full force and effect. SECTION 4. The Clerk of the Council shall certify to the passage and adoption of this ordinance and shall cause the same to be published in the official newspaper of the City of Arcadia within fifteen (15) days after its adoption. fi F i f;' ':; PASSED A..'i"D ADOPTED BY THE ing held on the 1 s t day of CITY COUNCIL of the City of Arcadia at its regular meet- April, 1980. ~f{:;!d><o.~~ r r ~~~ City Clerk of tne City of Arcadia I HEREBY CERTIFY that the foregoing ordinance was adopted at a regular meeting of the City Council of the City of Arcadia, California, held on the 1st day of April, 1980, by the affirmative vote of at least three Councilmen, to wit: AYES: Councilmen Gilb, Parry, NOES: None ABSENT: Non.e p:~legrinO' Saelid and rargett ~M~~)f~~'L- City Clerk r ... I:: r 23 1700 i" I