A. 
Hospitals and Health Care Facilities. The city council finds and determines as follows: The health and welfare of the citizens of the city and of the surrounding area is a matter of vital concern to the city and the protection and promotion of such health and welfare is the responsibility of the city, is a proper public purpose and is a municipal affair. In carrying out such responsibility, the city is dependent upon and assisted by private organizations. The issuance of revenue bonds to finance or refinance projects related to hospitals and health care facilities which provide health care services to residents of the city, including such facilities provided by private organizations, is a proper public purpose, is a municipal affair, and promotes the health and welfare of the citizens of the city.
B. 
Industrial and Commercial Facilities. The city council finds and determines as follows: The city is organized and exists to provide to its citizens and other residents of the area services and support which individually such persons cannot provide for themselves and to promote and protect the welfare and security of such persons. The welfare and security of the citizens of the city and of surrounding areas depends upon, and the responsibilities of the city extend to, the development and maintenance of a stable local economy and the provision of adequate and meaningful employment, all of which are dependent upon the maintenance, promotion and development of commercial, business, industrial, manufacturing and agricultural enterprises. The city can attract such enterprises to the area and assist those currently in the area by the issuance of revenue bonds to provide financing and refinancing for such enterprises. The issuance of revenue bonds for industrial and commercial purposes is a proper public purpose, is a municipal affair, and promotes the welfare and well being of the citizens of the city.
(Ord. 271 Art. 1 §§ 1.01, 1.02, 1981)
The city council further finds and determines that the matters addressed in this chapter are of local concern and do not interfere with matters of state concern.
(Ord. 271 Art. 1 § 1.03, 1981)
This chapter, being necessary for the health, welfare and security of the city and its inhabitants, shall be liberally construed to effect its purposes.
(Ord. 271 Art. 10 § 10.01, 1981)
This chapter shall be deemed to provide a complete, additional and alternative authorization and procedure for financing and refinancing projects for participating institutions and shall be regarded as supplemental and additional to the powers conferred by the Charter, other laws and ordinances. 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 or ordinance may provide for such purposes or for the issuance of bonds for like purposes and without regard to the requirements, restrictions, limitations or other provisions contained in any other law or ordinance.
(Ord. 271 Art. 10 § 10.03, 1981)
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 including entering into such written agreements and other documents as may be appropriate to fulfill the purposes of this chapter.
(Ord. 271 Art. 10 § 10.04, 1981)
Unless the context otherwise requires, the terms defined in this section shall have the following meanings whenever used in this chapter:
"Bond" or "bonds"
means any bonds (including refunding bonds), notes (including bond anticipation notes), certificates, debentures or other obligations issued or entered into by the city pursuant to this chapter.
"Bond resolution"
means the resolution authorizing the issuance of, providing terms and conditions related to, bonds issued under the provisions of this chapter.
"City"
means the city of Loma Linda, California.
"Commercial or industrial project"
means any structure or building or portion thereof (and the land on which the same is located) whether or not within the city, and all real and personal properties, including operating equipment and machinery deemed necessary or useful in connection therewith and which shall be suitable for the following or any combination thereof:
1. 
Any activity, business or industry for the manufacturing, processing or assembling of any commercial product, including agricultural, mining or manufactured products, together with storage, warehousing and distribution facilities in respect thereof;
2. 
Any undertaking involving the construction, reconstruction and use of airports, mass commuting facilities, offstreet parking facilities or of railroads, monorails or tramways, railway or airline terminals, cable television, mass communication facilities and related facilities;
3. 
All or any part of any office building or buildings for the use of such tenant or tenants as may be determined or authorized by the city council, including without limitation, any industrial, commercial, financial or service enterprise or any corporation or other enterprise now or hereafter organized;
4. 
Any educational institution in any manner related to or in furtherance of the educational purposes of such institution, including but not limited to classrooms, laboratory, housing, administrative, physical educational and medical research and treatment facilities;
5. 
Any facilities for any recreation or amusement park, public park or theme park;
6. 
Any commercial facilities constructed primarily for making wholesale or retail sales to the general public;
7. 
Any facilities incident to the development of industrial sites, including land costs and the costs of site improvements thereon, such as grading, streets, drainage, storm and sanitary sewers, and other facilities and structures incidental to the use of such site or sites for industrial or commercial use;
8. 
Any convention or trade show facilities, together with all related and subordinate facilities necessary to the development and proper utilization thereof; and
9. 
Any facilities designed and constructed to be used as hotels and/or motels, together with all related and subordinate facilities necessary to the operation thereof, including site preparation and similar facilities.
"Costs,"
as applied to a project financed in whole or in part under the provisions of this chapter, means and includes all reasonable or necessary costs incidental to the acquisition of any interest in, construction, reconstruction, repair, alteration, equipping, enlargement, improvement and extension of such project and the acquisition of any interest in all lands, structures, real or personal property, rights, rights-of-way, franchises, easements, and interest acquired, necessary, or used for, or useful for or in connection with, a project and all other undertakings which the city council deems reasonable or necessary for the development of a project, including without limitation the cost of studies and surveys, the costs for land title and mortgage guaranty policies, plans, specifications, and architectural and engineering services, legal, consulting, organization, marketing or other special services including fees and expenses in connection with the transactions described in Section 3.20.170, financing, acquisition, demolition, construction, equipment, and site development of new and rehabilitated buildings, rehabilitation, reconstruction, repair or remodeling of existing buildings; and all other necessary and incidental expenses, including working capital and bond and interest reserve funds, and interest on bonds issued to finance such project to a date not more than six months subsequent to the estimated date of completion. Costs also include amounts paid or to be paid to a participating institution in reimbursement of amounts previously paid or incurred by such institution for any of the items described above.
"Council"
means the city council of the city of Loma Linda.
"Health facility"
means any structure or building or portion thereof (and the land on which the same is located) whether or not within the city and suitable for use as a hospital, clinic, ambulatory care facility, nursing home, home for the aged or infirm, care and residential facilities for the aged or infirm or other health care or rehabilitation facility, whether such facilities provide inpatient care, outpatient care, or both; laboratories; laundries; nurses', doctors' or interns' residences; administration buildings; research facilities; maintenance, storage or utility facilities; auditoriums; dining halls; food service and preparation facilities; mental or physical health care facilities; dental care facilities; nursing schools; medical or dental teaching facilities; mental or physical health facilities related to any such structure or facility; or any other structure or facility required or useful for the operation of a health facility, including but not limited to offices including medical and other professional offices, parking lots, garages and other parking structures, hotels and motels to be available for use by patients and relatives and attendants of patients or patrons of the participating health institutions and other supporting service structures; and any equipment, furnishings and appurtenances necessary or useful in the operations of a health facility by a health institution and the acquisition, preparation and development of all real and personal property necessary or convenient as a site or sites for any such structure or facility.
"Health institution"
means any person, partnership, corporation, whether for profit or not, trust, association or institution, or any public hospital or institution, which provides or operates a health facility or health facilities.
"Participating institution"
means a health institution or any other person, partnership, corporation, whether for profit or not, trust, association or institution which, pursuant to the provisions of this chapter, undertakes the financing and constructing, reconstruction, improvement, furnishing, equipping, repair, rehabilitation or acquisition of a project or undertakes the refinancing of outstanding obligations as provided in and permitted by this chapter.
"Project"
means a health facility or a commercial or industrial project.
"Refinancing of outstanding obligations"
means the use of the proceeds of bonds issued by the city under this chapter to pay or provide for the payment of any indebtedness of a health institution, or any indebtedness of any other participating institution if the use of bond proceeds for such purpose is approved by resolution of the city council.
"Revenues"
means, with respect to a project, the rents, fees, charges, interest, principal repayments, and other income received or to be received by the city from any source on account of such project.
"State"
means the state of California.
(Ord. 271 Art. 2, 1981)
The city may make, purchase or contract to make a loan, secured or unsecured, upon such terms and conditions as the city council shall deem proper, to any participating institution for the purpose of payment costs. In connection with such loan, the city may enter into a written loan agreement or other contract with the participating institution providing for the repayment of the loan on such terms as the city council may deem appropriate and containing such other provisions as the city council may deem appropriate.
(Ord. 271 Art. 3 § 3.01, 1981)
The city may make, purchase or contract to make a loan, secured or unsecured, upon such terms and conditions as the city council shall deem proper, to any participating institution for refinancing of outstanding obligations of such participating institution if such obligations were incurred to pay costs or to refinance debt previously incurred to pay costs. In connection with such loan, the city may enter into a written loan agreement or other contract with the participating institution providing for the repayment of the loan on such terms as the city council may deem appropriate and containing such other provisions as the city council may deem appropriate.
(Ord. 271 Art. 3 § 3.02, 1981)
A. 
The city may acquire, construct, enlarge, remodel, repair, renovate, alter, improve, furnish, equip, own and lease as lessee a project. Any such acquisition, construction, enlargement, remodeling, repair, renovation, alteration, improvement, furnishing, equipping, ownership or leasing of a project by the city may be for the purpose of selling or leasing such project to a participating institution; and, in such event, the city may designate such participating institution as its agent to undertake to construct, enlarge, remodel, repair, renovate, alter, improve, furnish and equip such project. If the city acquires or leases as lessee a project under the terms of this section for a participating institution, the acquisition price or total rent paid by the city shall not exceed the amount needed by the participating institution to pay costs and to refinance outstanding obligations, if any. The city may sell or lease, upon such terms and conditions as the city council may deem appropriate, any project owned or leased as lessee by the city under this chapter, including a project conveyed or leased to the city in connection with a financing under this chapter, and the city may enter into written lease, sale agreement or other contract with the participating institution and such lease, sale agreement or other contract may contain such provisions as the city council may deem appropriate.
B. 
If the city leases a project to a participating institution, it may charge and collect rent for the project at fixed or variable rates and may terminate any such lease upon the failure of the lessee to comply with any of the obligations thereof; and it may include in any lease agreement options to the lessee to extend the lease for such period or periods and at such rent as shall be determined by the city council or options to purchase any or all of the project, or provisions that, upon payment of all of the indebtedness incurred by the city for the financing of such project, the city may convey any or all of the project to the lessee or lessees thereof with or without consideration.
(Ord. 271 Art. 3 § 3.03, 1981)
The city may from time to time, upon the request of a participating health institution, and upon resolution of the city council, borrow money or issue its bonds under the terms of this chapter to provide funds in connection with any of the transactions described in Sections 3.20.080 through 3.20.100 or, as described in Section 3.20.180, to refund bonds of the city previously issued under the terms of this chapter; provided, however, that if the bonds are being issued to provide funds for a commercial or industrial project, the bond resolution shall state that the city council finds such project and the issuance of bonds therefor to be a proper public purpose.
(Ord. 271 Art. 4 § 4.01, 1981)
Bonds issued under this chapter shall be limited obligations of the city payable from revenues and other funds provided by the participating institution in accordance with its agreement with the city and from the moneys and assets authorized in this chapter to be pledged or assigned to secure payment of bonds. Such revenues, funds, moneys or assets shall be the sole source of repayment of bonds issued under this chapter, and bonds issued under the provisions of this chapter shall not be deemed to constitute a general debt or liability of the city or a pledge of the full faith and credit of the city. 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.
(Ord. 271 Art. 4 § 4.02, 1981)
Bonds may be issued as serial bonds, terms bonds, installment bonds or pass-through certificates, or any combination thereof. Bonds shall be authorized by resolution of the city 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 denominations, be in such form, either coupon or registered or both, carry such registration privileges, be payable at such place or places, be subject to such redemption terms and have such other terms and conditions at such resolution or any indenture authorized by such resolution to be entered into by the city may provide. Bonds shall be executed on behalf of the city by the mayor and the city clerk and any coupons appertaining to such bonds shall be executed by the city clerk, any or all of which signatures may be by facsimile. Bonds may be sold at either a public or private sale and for such prices as the city shall determine. Pending preparation of definitive bonds, the city may issue temporary bonds, which shall be exchanged for such definitive bonds when prepared.
(Ord. 271 Art. 4 § 4.03, 1981)
In the discretion of the city, any bonds issued under this chapter may be secured by a trust indenture between the city and a corporate trustee or trustees, which may be any trust company or bank having the powers of a trust company in the state or in another state. Such trust indenture or the resolution providing for the issuance of such bonds may pledge or assign the revenues to be received or the proceeds of any contract or contracts pledged and may convey or mortgage the project or any portion thereof. Such trust indenture or resolution providing for the issuance of such bonds may contain such provisions for protecting and enforcing the rights and remedies of the bondholders as may be reasonable, proper and not in violation of law. Any such trust indenture may set forth the rights and remedies of the bondholders and of the trustee or trustees and may restrict the individual right of action by bondholders. In addition, any such trust indenture may contain such other provisions as the city may deem reasonable and proper for the security of the bondholders. All expenses incurred in carrying out such trust indenture may be treated as a part of the cost of the operation of a project.
(Ord. 271 Art. 4 § 4.04, 1981)
Any resolution authorizing any bonds or any issue of bonds, or any trust indenture authorized by such resolution to be entered into by the city, may contain provisions respecting any of the following terms and conditions:
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 applied, and the pledge or assignment of such proceeds to secure the payment of such bonds;
C. 
Limitations on the issuance of additional bonds, the terms upon which additional bonds may be issued and secured, and the refunding of outstanding bonds;
D. 
The setting aside of reserves and sinking funds 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 expenditures for operating, administration or other expenses of the city;
G. 
Specifications of the acts or omissions to act which shall constitute a default in the duties of the city to holders of such bonds, and providing the rights and remedies of such holders in the event of default, including any limitations on the right of action by individual bondholders;
H. 
The procedure, if any, by which the terms 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
I. 
Any other provisions which the city council may deem reasonable and proper for the purposes of this chapter and the security of the bondholders.
(Ord. 271 Art. 4 § 4.05, 1981)
The principal of and interest on any bonds issued by the city under this chapter may be secured by a pledge of, or security interest in, the revenues, rentals and receipts out of which the same may be made payable or from other moneys available therefor and not otherwise pledged or used as security and may be secured by a trust indenture (which may assign the city's rights in any loan agreements, leases, sale agreements, mortgages and deeds of trust which the city may have with the participating institution), and/or by a mortgage or deed of trust (including mortgages or deeds of trust from the participating institution to the trustee) covering all or any part of the project from which the revenues, rentals or receipts so pledged or used as security may be derived, including any enlargements of and additions to any such project thereafter made.
(Ord. 271 Art. 5, 1981)
The city may obtain, or aid in obtaining, from any department or agency of the United States or of the state or any private company or banking institution, any insurance, guarantee, letter of credit or contractual agreement as to, or of or for the payment or repayment of, interest or principal, or both, or any part thereof, on any bond issued under the terms of this chapter or 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 institution, and may assign any such insurance or guarantee as security for bonds.
(Ord. 271 Art. 6, 1981)
A. 
The city may issue bonds for the purpose of refunding any bonds then outstanding, including the payment of any redemption premiums thereof and any interest accrued or to accrue to the earliest or any subsequent date or dates of redemption, purchase or maturity of such bonds.
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 together with the earnings thereon to such purchase or retirement at maturity or redemption on such date or dates as may be determined by the city.
C. 
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.
(Ord. 271 Art. 8, 1981)
The city may employ such engineering, architectural, financial, accounting, legal or other advisors or assistants as may be appropriate for the purposes of this chapter and may charge participating institutions application, commitment, financing and other fees, in order to pay and/or recover administrative and other costs and expenses incurred or to be incurred in the exercise of the powers and duties described in this chapter.
(Ord. 271 Art. 9, 1981)
Neither the members of the city council, the officers or employees of the 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.
(Ord. 271 Art. 7, 1981)