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 is full authority for the issuance of bonds by
the city for the purposes specified herein.
(Ord. 271 Art. 10 § 10.02,
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:
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.
means the resolution authorizing the issuance of, providing
terms and conditions related to, bonds issued under the provisions
of this chapter.
means the city of Loma Linda, California.
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:
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;
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;
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;
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;
Any facilities for any recreation or amusement park, public
park or theme park;
Any commercial facilities constructed primarily for making wholesale
or retail sales to the general public;
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;
Any convention or trade show facilities, together with all related
and subordinate facilities necessary to the development and proper
utilization thereof; and
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.
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.
means the city council of the city of Loma Linda.
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.
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.
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.
means a health facility or a commercial or industrial project.
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.
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.
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)
