HomeMy WebLinkAboutORD NO 2871ORDINANCE NO. 2871
PROVIDING FOR THE CITY OF BAKERSFIELD HEALTH
FACILITIES FINANCING 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
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF
BAKERSFIELD AS FOLLOWS:
Section 1.Chapter 3.60 is hereby added to the City
of Bakersfield Municipal Code to read:
CHAPTER 3.60
HEALTH FACILITIES FINANCING LAW
ARTICLE 1. GENERAL PROVISIONS AND DEFINITIONS
Section 101. TITLE. This chapter may be cited as
the City of Bakersfield Health Facilities Financing Law.
Section 102. PURPOSE. The Council hereby finds and
declares that it is necessary, essential, a public purpose
and a municipal affair for the City to be authorized to
provide financing to health institutions 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 rates and
charges than would otherwise prevail and to provide better
service at such rates and charges. Unless the City
intervenes to provide such financing, such rates and charges
may increase at an ever accelerated pace because such health
institutions cannot obtain financing at equivalent cost from
private sources.
Section 103. DEFINITIONS. Unless the context
otherwise requires, the terms defined in this chapter shall
have the following meanings:
(a) "Bonds" means any bonds, notes, certificates,
debentures or other obligations issued by the City pursuant
to this chapter.
(b) "City" means the City of Bakersfield.
(c) "Cost" means the total of all costs incurred
by or on behalf of a participating health institution
necessary or incident to acquisition, construction,
rehabilitation or improvement of a health facility or the
refunding or refinancing of obligations incurred to finance
such acquisition, construction, rehabilition or improvement.
"Cost" shall include all such costs which under generally
accepted accounting principles are properly chargeable to a
capital account (whether or not actually so charged),
including, without limitation, the cost of all lands,
structures, real or personal property, franchises, rights and
interests acquired or used in connection with a heakth
facility, the cost of demolishing or removing any structures
(including the cost of acquiring any lands to which such
structures may be moved), the cost of engineering,
architectural, financial and legal services, plans,
specifications, studies, surveys, estimates, administration
expenses or other expenses necessary or incident to
determining the feasibility of or to acquiring, constructing,
rehabilitating, improving or financing a health facility,
including all costs of issuance of bonds for such purposes,
reserves for debt service and for repairs, replacements,
additions and improvements, and capitalized bond interest for
such period as the City may determine.
(d) "Council" means the City Council of the City
of Bakersfield.
(e) "Health facility" means any facility, place or
building which is maintained and operated for the diagnosis,
care, prevention and treatment of human illness, physical or
mental, including convalescence, rehabilitation and care
during and after pregnancy, or for any one or more of these
services, and which provides and will continue providing to
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residents of the City essential health care services
designated as such in an agreement between the City and the
participating health institution providing or operating such
facility, place or building.
Health facility includes a portion of one of the
above types of facilities and includes the following
facilities if operated in conjunction with one of the above
types of facilities: a laboratory, a laundry, a nurses' or
interns' residence, a housing facility for patients, staff or
employees and the families of any of them, an administration
building, a research, maintenance, storage, utility or
parking facility and all real and personal property, land,
buildings, structures, facilities, equipment, fixtures and
furnishings (including, without limitation, medical office
buildings, skilled nursing facilities, adult day care centers
and bloodbanks) related to any of the foregoing or required
or useful for the operation of a health facility.
Health facility shall not include any facility,
place 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 corporation or association authorized 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,
construction, rehabilitation or improvement of a health
facility or undertakes the refunding or refinancing of
obligations incurred to finance such acquisition,
construction, rehabilitation or improvement.
(g) "Revenues" means amounts received by the City
as repayment of principal, interest, and all other charges
with respect to a loan, lease, sublease or sale agreement
under this chapter, any proceeds received by the City from
mortgage, hazard or other insurance on or with respect to
rents, charges, fees, income and receipts derived by the City
from the financing of a health facility under this chapter,
any amounts received by the City as investment earnings on
moneys deposited in any fund or account securing bonds, and
such other moneys as the Council may, in its discretion,
lawfully designate as revenues.
ARTICLE 2. FINANCING HEALTH FACILITIES
Section 201. LOANS FOR HEALTH FACILITIES. The City
may make, purchase, or otherwise contract for the making of a
mortgage or other loan, upon such terms and conditions as the
City shall deem proper, to any participating health
institution for the cost of a health facility.
Section 202. REFINANCING LOANS FOR HEALTH
FACILITIES. 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
participating health institution incurred to finance the cost
of a health facility, including expenses incident to paying
or otherwise discharging the obligations to be refunded or
refinanced, 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
costs of health care than would otherwise prevail and a
saving to third parties, including government, and to others
who must pay for care, or any combination thereof.
Section 203. ACQUISITION, CONSTRUCTION, LEASING AND
SELLING OF HEALTH FACILITIES. 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 contract with
such participating health institution to undertake on behalf
of the City 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 204. FEES. The City may charge
participating health institutions application, commitment,
financing and other fees, in order to recover all
administrative and other costs and expenses incurred in the
exercise of the powers and duties conferred by this chapter.
Section 205. INSURANCE. The City may obtain, or
aid in obtaining, from any department or agency of the United
States or of the State of California or of any private
company, any insurance or guarantee as to, or of, or for the
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payment or repayment of, interest, principal, rents, fees or
other charges or any part thereof on any loan, lease or sale
agreement 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 206. RENTS AND CHARGES. 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.
Section 207. SECURITY FOR LOANS. The City may hold
deeds of trust, mortgages or security interests as security
for loans and other obligations under this chapter and may
pledge or assign the same as security for repayment of
bonds. Such deeds of trust, mortgages or security interests
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 208. PROFESSIONAL SERVICES. The City may
employ such engineering, architectural, financial,
accounting, legal or other services as may be necessary in
the judgment of the City for the purposes of this ckapter.
Section 209. ADDITIONAL POWERS. 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 301. ISSUANCE OF BONDS; BONDS NOT DEBT OF
CITY. (a) The City may, from time to time, issue bonds for
any of the purposes specified in Sections 201, 202, and 203.
Bonds shall be negotiable 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 specified 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
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source of repayment of such issue of bonds. Bonds issued
under the provisions of this chapter shall not be deemed to
constitute 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 assetsl 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
appropriat on for their payment.
All bonds shall contain on the face thereof a
statement to the following effect:
Neither the faith and credit nor the taxing
power of the City is pledged to the payment
of the principal of or premium, if any, or
interest on this bond.
Section 302. COSTS OF ISSUANCE. 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 303. RESOLUTION; BOND PROVISIONS. 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 denominations, 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 by the City may provide. Bonds may be sold at either a
public or private sale and for such prices as the City shall
determine.
Section 304. BOND PROVISIONS. Any resolution
authorizing any bonds or any issue of bonds, or any indenture
authorized 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,
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(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 such other funds as are necessary or app[opriate
and the regulation and disposition thereof,
(e) the pledge or assignment of all or any part of
the revenues and of any other moneys or assets legally
available therefor (including loans, deeds of trust,
mortgages, leases, subleases, sales agreements and other
contracts and security interests) 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 fc.r
expenditures for operating, administration or other expenses
of the City,
(g) specification of the acts or omissic~ns 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 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,
leases, subleases, sales agreements, and any other contracts
or security interests 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 manne~ 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 305. PLEDGE OF REVENUES, MONEY OR PROPERTY;
LIEN. 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 so pledged and thereafter received by the City
shall 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
indenture by which a pledge is created need be filed or
recorded except in the records of the City.
Section 306. NO PERSONAL LIABILITY. Neither the
members of the 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.
Section 307. PURCHASE OF BONDS. 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
agreements with the bondholders.
Section 308. ACTIONS BY BONDHOLDERS. Any holder of
bonds issued under the provisions of this chapter or any of
the coupons appertaining thereto, and any trustee appointed
pursuant 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
resolution 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 collecting of rates, fees, interest, and
charges authorized and required by the provisions of such
resolution or indenture to be fixed, charged, and collected.
Section 309. REFUNDING BONDS. (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
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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 increment 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.
(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 310. BOND ANTICIPATION NOTES. In
anticipation of the sale of bonds, the City may issue bond
anticipation notes and may renew the same from time to time.
Such notes shall be payable from any revenues or other moneys
authorized by this chapter to be pledged to secure payment of
bonds which are not otherwise pledged, or from the proceeds
of sale of the bonds in anticipation of which they were
issued. Such notes shall be issued in the same manner as
bonds. Such notes and the resolution or indenture providing
for their issuance may contain any provisions, conditions or
limitations which a bond, or a resolution or indenture
providing for the issuance thereof, may contain.
Section 311. VALIDITY OF BONDS. 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 approval of any financing or 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 401. LIBERAL CONSTRUCTION. This chapter
being necessary for the welfare of the City and its
inhabitants, this chapter shall be liberally construed to
effect its purposes.
Section 402. OMISSIONS NOT TO AFFECT VALIDITY OF
BONDS. If the jurisdiction of the Council to order the
proposed act is not affected, any omission of any officer or
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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 403. FULL AUTHORITY. This chapter is full
authority for the issuance of bonds by the City for the
purposes specified herein.
Section 404. ADDITIONAL AUTHORITY. 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, restrictions,
limitations, or other provisions contained in any other law.
Section 405. CHAPTER CONTROLLING. 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 406. SEVERABILITY. If any provision of
this chapter or the application thereof to any person or
circumstance 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 provisions of this chapter
are declared to be severable. The Council hereby declares
that it would have adopted and passed this chapter and each
word hereof, irrespective of the fact that any one or more of
the other articles, sections, subsections, sentences,
clauses, phrases or words hereof be declared invalid[ or
unconstitutional."
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Section 2. I HEREBY CERTIFY that the foregoing Ordinance
was passed and adopted by the Council of the City of Bakersfield at
a regular meeting thereof held on the _7~__ day o~ _~_~)~embe~, 1983,
by the ~ollowing vote:
CITY CLERK ~{nd Ex officio Clerk of the
Council of the City of Bakersfield
APPROVED as to form~
of Bakersfield
ll
Affa av t of osttng (Ordinaries
STATE OF CALIFORNIA, t
County of Kern ss.
PHILIP KELMAR, being duly sworn, deposes and says:
That he is the duly appointed, acting and qualified City Clerk of the City of Bakersfield; and
that on ..............~..?.Z~.~..~..m...~2.~.E_...1...~3. ..................................................................., 19..8...3.... he posted on the Bulletin Board
at the City Hall, a full, true and correct copy of an ordinance passed by the Council of said City
at a meeting thereof duly held on ........................S..~j~.~.?..~.~?....r.......~. ................................, 19....~..3..., which ordinance
was numbere& ............~.~.7~ .......................New Series, and entitled:
AN ORDINANCE OF THE COUNCIL OF THE CITY OF
BAKERSFIELD ADDING CHAPTER 3.60 TO TITLE 3
OF THE BAKERSFIELD MUNICIPAL CODE PROVIDING
FOR THE CITY OF BAKERSFIELD HEALTH FACILITIES
FINANCING LAW INCLUDING GENERAL PROVISIONS
AND DEFINITIONS, POWERS AND PROCEDURES TO
ISSUE REVENUE BONDS FOR THE PURPOSE OF PRO-
VIDING FINANCING TO PARTICIPATING HEALTH
INSTITUTIONS FOR SPECIFIED PURPOSES, AND
CERTAIN OTHER SUPPLE~',ENTAL PROVISIONS.
/~ity Cle k
Subscribed and sworn to before me this
..... ~.~.~:.1~.. day of .....~.~).~.~l~.~.~ ...............!9..~.~...
MARIA ROSA OCHOA '