CC – Item 3B – Staff Report – Res. 98-07 – Approving the Executive and Delivery of Health Care Certificates of Participation by the San Bernardino Ass. Communities E M..
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feport
TO: HONORABLE MAYOR
AND MEMBERS
ROSEMEAD CITY COUNCIL
FROM: FRANK G. TRIPEPI, CITY MANAGER : I
DATE: MARCH 13, 1998
RE: RESOLUTION NO. 98-07 APPROVING THE EXECUTION AND
DELIVERY OF HEALTH CARE CERTIFICATES OF PARTICIPATION
BY THE SAN BERNARDINO ASSOCIATED COMMUNITIES
FINANCING AUTHORITY TO BENEFIT INGLESIDE HOSPITAL
AND RELATED FACILITIES
Attached for your consideration is Resolution No. 98-07 approving the execution and delivery of
health care certificates of participation by the San Bernardino Associated Communities Financing
Authority to benefit Ingleside Hospital and related facilities. These certificates are tax-exempt
and they need the approval of the City of Rosemead prior to selling them.
As indicated in the February 20, 1998 Council Memorandum, a Public Hearing was held on
March 4, 1998 at 11:00 a.m. in the City Hall Conference Room. Attending were the City Clerk,
the Assistant City Manager, and Joel Boehm, representing the Bond Counsel, Sabo & Green. No
one spoke on the item. f, , ,t_*(
Also attached are the Notice of Public Hearing, the minutes the Hearing, an Executive
Summary of the financing, and a copy of the Council Me randum dated February 20, 1998.
It should be noted that the February 20, 1998 Memora um includes a memo from the City
Attorney's Office stating that approval of the financin makesthe project a City project nor
obligate the City with respect to repayment of the debt.
RECOMMENDATION
It is recommended that the City Council approve Resolution No. 98-07 Approving the
Execution and Delivery of Health Care Certificates of Participation by the San Bernardino
Associated Communities Financing Authority.
COUNCIL. AGENDA
MAR 2 41998
ITEM No. 77 ..e.
�_ J
RESOLUTION NO. 98-07
A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF ROSEMEAD APPROVING THE EXECUTION
AND DELIVERY OF HEALTH CARE CERTIFICATES OF
PARTICIPATION BY THE SAN BERNARDINO ASSOCIATED
COMMUNITIES FINANCING AUTHORITY TO BENEFIT
INGLESIDE HOSPITAL AND RELATED FACILITIES
WHEREAS, American Institute for Health Care Centers, Inc., a California non-profit 501
(c)(3) corporation (the "Corporation"), has requested that the San Bernardino Associated
Communities Financing Authority("SANBAC") cause to be executed and delivered tax-exempt and
taxable certificates of participation in an aggregate principal amount not to exceed $50,000,000 (the
"Certificates") for the purpose of financing the acquisition of Cigna Hospital, 1711 West Temple
Street, Los Angeles, California and Ingleside Hospital, 7500 E. Hellman Avenue, Rosemead,
California (collectively, the "Facilities"); and
WHEREAS,pursuant to Section 147(0 of the Internal Revenue Code of 1986, as amended
(the "Code") the financing described above and the execution and delivery of the Certificates must
be approved by the City of Rosemead (the "City") because one of the Facilities is located within the
territorial limits of the City; and
WHEREAS, the City Council is the elected legislative body of the City and is one of the
applicable elected representatives required to approve the financing of the Facility and the issuance
of the Certificates under Section 147(0 of the Code; and
WHEREAS, SANBAC and the Corporation has requested that the City Council approve the
financing of the facilities and the execution and delivery of the Certificates in order to satisfy the
public approval requirement of 147(0 of the Code; and
WHEREAS, pursuant to Section 147(0 of the Code, a duly authorized representative of the
City Council has, following notice duly given, held a public hearing regarding the financing of the
Facilities and the execution and delivery of the Certificates.
NOW, THEREFORE, BE IT RESOLVED AS FOLLOWS:
1. Pursuant to Section 147(0 of the Code, public hearing regarding the financing of the
Facilities and the execution and delivery of the Certificates was held. The City Council hereby
approves the financing described above and the execution and delivery of the Certificates by
SANBAC and the operation of SANBAC within the City to provide financing for the Corporation.
-1-
It is the purpose and intent of the City Council that this Resolution constitutes approval of the
financing of the Facilities and the execution and delivery of the Certificates for the purposes of
Section 147(f)of the Code by the applicable elected representatives of the governmental unit having
jurisdiction over the area in which the Facilities are and will be located, in accordance with said
Section 147(0.
2. The officers of the City are hereby authorized and directed,jointly and severally, to
do any and all things and to execute and deliver any and all documents which they deem necessary
or advisable in order to carry out, given effect to and comply with the terms and intent of this
esolution and the financing transaction approved hereby.
3. City approval pursuant to Section 147(0 of the Code pursuant to this Resolution shall
not constitute approval for other City regulatory or other requirements, such as building permits.
4. This Resolution shall take effect immediately upon its passage.
MAYOR
Attest:
City Clerk
I, Nancy Valderrama, City Clerk of the City of Rosemead, hereby certify that the foregoing
Resolution No. 98-07 was duly adopted by the City Council of the City of Rosemead at a regular
meeting thereof; held on March 24, 1998, by the following vote of the Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
CITY CLERK
-2-
(Space below for use of County Clerk only)
•
SAN GABRIEL VALLEY TRIBUNE
affiliated with
SGV Newspaper Group
1210 N. Azusa Canyon Road
West Covina, CA 91790
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA Proof of Publication of
NOTICE OFPUBLIIC HEARING
County of Los Angeles NOTICE 15'HEREBy GIVENit w ai 11 W
AM:on Wednesday/March-Cl/9E at 8838 E.-
Valley Boulevard City Hall Conference Room:
I am a citizen of the United States, and a resident Rosemead/California t 19770Athet City;of-
Rof the county aforesaid; am over the age of "Public ad willl'�uct a'publiicrhearing.(the.
v9.-asieaulred by Sectioe147(f)=
eighteen years, and not a party to or interested in of the Internal Revenue Cotleof 1998;asamepded,
(the Code:77Eo_disegicbaprovali and.
the above-enticed matter. I am the principal clerk of authorisation onheehho' AArnerlarOarro pio�lif`
the printer of SAN GABRIEL VALLEY TRIBUNE, a 501100)corporation corporation!theittorperatiand)of Me'
newspaper of general circulation which has been execution and dellveryfaEgail"=Bernardino-
Associated CommOnMes Financinyg Authority'
adjudicated as a newspaper of genera! circulation Health Care Cercin vies of pvrtigpofion,tthe
Certificates') for the financing of certain
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by the Superior Court of the County of Los facilities asdescri befow3N ':eroleCts7:q"
Angeles, State of California, on the date of PROJET:5.The„ace u(sit sink Ann'
September 10, 1957, Case Number 684891. The CorsoratigioftMasu ape en I
Me CIgna,H of
notice, of which the annexed is a true printed copy, hospital fac o4cal )1 Wer'
has been published in each regular and entired issue Tempte,5
P 9 and le.Z5 files geYHoinila a wcutlat •
ritear
of said newspaper and not in any supplement • psrcryiairic RospifaU(pcyeH 590
Hellmoo „,„ �orne-
thereof on the following dates, to wit: -s._...1.�- —Y
• AMOUNT.':Tlq 1 orx amount of-
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Executed at West Covina, LA Co. California m fhe Catle y tii °� fia+ri,..
t s 6 .:y of FEBRUARY , i g 98 ;Those w hng�to mmerR.on jhe
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/ the nature nd delivery locution M the3mleces or on
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signature
tic/ submit wnttencommenh textile addreseebownr
below which rpust be recelved'orlo fo The:
hearing a
City of Rosemeatl r ytt,sv,{'LL-
Attn Frank Triouleva T y
1 Ras E Volley Boulevard
Rosemead Californla91770 .I �,
Dated Febrwry1R 1998 v#y+ -
Publi8iyFebrury_16] ...�.`�;;4q ti
San Gabriel Valley Tribune At 1185.
MINUTES OF THE PUBLIC HEARING
MARCH 4, 1998
The Public Hearing was called to order by City Clerk Nancy Valderrama at 11:00 a.m. in the
Council Chambers of the City Hall, 8838 E. Valley Boulevard, Rosemead, California.
Present: Joel Boehm, Sabo & Green
Don Wagner, Assistant City Manager
Nancy Valderrama, City Clerk
I. PUBLIC HEARING
A. PUBLIC HEARING TO DISCUSS APPROVAL AND DELIVERY OF
HEALTH CARE CERTIFICATES OF PARTICIPATION BY THE SAN
BERNARDINO ASSOCIATED COMMUNITIES FINANCING
AUTHORITY TO BENEFIT INGLESIDE HOSPITAL AND RELATED
FACILITIES
The public hearing was opened for any comments.
There being no one wishing to speak, the public hearing was closed.
II. ADJOURNMENT
There being no further action to be taken at this time, the meeting was adjourned at 11:35
a.m.
Respectfully submitted: APPROVED:
rJ 1J d•Oa /i
•
City Clerk Assistan ,anager'
MRR 11 '98 09:PORM SPED E. GREEN
P.3
SABO & GREEN
ATTORNEYS AT LAW
A PROFESRIONAL CORPORATION
LOS ANGELES OFRILL 201 NORTH E"STR3ET
SUIT 206 COACHELLA VALLEY OFFICE
23801 CALABAEA,ROAD SAN BERNARDINO,CALIFORNIA 92401
Sur?'1015 (909)30]-937] 35-325 SUFI- Pn0 Daws
CALABABAE,CALIFORNIA 91302 FAX(909)3R3-9378 SUITE 150
(B18)704.019$ CATHEDRAL 60)CITY,7 0-0873CALIFORNIA 92234
FAX(SIR)704-4729 (]60J 0)70-17
FAX(760)770-1724
EXECUTTVESIIM AARy
C n r
San Bernardino Associated Communities Financing Authority ("SANBAC") is
proposing to have executed not to exceed $50 million of tax-exempt and taxable certificates of
participation ("Certificates") for American Institute for Health Care Centers, Inc., a California
non-profit 50l(c)(3) corporation ("Corporation") the proceeds to be used to acquire the Cigna
Hospital, a closed general acute care hospital facility located at 1711 West Temple Street, Los
Angeles, California and the Ingleside Hospital, an acute psychiatric hospital located at 7500 E.
Hellman Avenue, Rosemead, California.
The financing is necessary for the non-profit Corporation to reopen the closed Cigna
Hospital and to renovate and equip both the closed Cigna Hospital and the Ingleside Hospital and to
continue to provide low-cost quality care to the residents of the greater Los Angeles community.
The Internal Revenue Code Section 1470 requires the local government agency
having jurisdiction over the area in which the facilities are located conduct the required public hearing
1
MFR 11 '98 08:210M SRBO 8 GREEN
regarding the proposed financing and requires the elected representatives of such governmental unit
approve the financing.
All debt indebtedness will be borne by the Corporation and neither the faith and credit
nor the taxing powers of the City of Rosemead is pledged to the payment of the principal of,
premium, if any, or interest on the Certificates nor shall the City of Rosemead be liable or obligated
to pay the principal of, premium, if any, or interest on the Certificates.
The Certificates shall be executed and delivered in fully registered form without
coupons, expected to be dated May I, 1998 and bearing interest on May 1 and November 1 of each
year commencing November 1, 1998. The Certificates shall mature on May 1 of each of the years
from and including 1999 to and including 2028 in principal amounts as set forth in the Certificates,
and will earn interest not to exceed the maximum interest rate permitted by law.
The Corporation has selected the firm of Sabo & Green as Bond Counsel, Miller&
Schroeder Financial, Inc. as Underwriter and Hinshaw&Culbertson as Underwriter's Counsel. Legal
documents will consist primarily of a Trust Agreement, Installment Purchase Agreement and a Deed
of Trust.
The City of Los Angeles has also conducted a public hearing on March 6, 1998 and
is approving the financing.
2
NPR 11 '99 09'21PM SPO & GREEN P.5
Ingleside Hospital
Ingleside Hospital ("Ingleside"), formerly known as Hellman Hospital, is one of the
oldest licensed psychiatric facilities in California, Ingleside is a 118 bed freestanding psychiatric
hospital which serves the greater Los Angeles basin. The freestanding hospital provides services to
adolescent and adult patients with mental illness related to schizophrenia, bipolar disorder (manic
depression), major depression, and other psychiatric illnesses. Ingleside offers 24-hour inpatient
hospitalization, outpatient services, and community support services. The inpatient hospitalization
programs offer a locked unit that emphasizes rapid stabilization for individuals who are in immediate
active crisis.
An important fact to note is the Ingleside facility is restricted from serving adult
MediCal patients between the ages of 21 and 64 due to the hospital's license status as a "freestanding
psychiatric facility." Upon the culmination of the purchase of the two facilities (Cigna and Ingleside)
and the consolidation of the licenses under an acute care license, the Ingleside facility will be able to
serve this patient base which represents a significant portion of the Medical population receiving
psychiatric care in Los Angeles County.
The outpatient program consists of services for crisis intervention and a partial
hospitalization program. Crisis intervention is a response to an emergency with the goal of stabilizing
the individual. The partial hospital service is a highly structured, multi-disciplinary day treatment
program designed to prevent individuals from decompensating and provides a platform for the patient
3
MRR 11 '99 09:21RM SRBO & GREEN p 6
to receive care in a less restrictive setting and maintain the freedom to live and function within the
community.
The program provides services related to medication management, stress and anger
management, decision making and planning, and health and hygiene education.
In addition to the inpatient and day programs, Ingleside provides and sponsors a series
of support services designed to cover the continuum of needs for psychiatric patients. These services
increase access to necessary care and, secondarily, provides the facility with a steady source of
referral opportunities. TeleHealth, one of Ingleside's sponsored programs, maintains a 24-hour
resource line answering questions related to mental illness, acts as a referral source for mental health
services, and in many cases acts as a pre-screening service for patient care. This service generates
a high rate of patients for Ingleside Hospital. The resource center currently receives approximately
5,000 calls per month, including approximately 3 to 4 percent of the calls or 150 to 200 calls
representing a need for inpatient services per month.
Ingleside also sponsors a community service that provides a series of educational,
outreach, and networking programs and meetings for owners, operators, and employees of Adult
Residential Care Facilities ("ARCF"). The programs and meetings feature educational topics on
current issues in the industry. This service, managed by Chevallier's Psychiatric Medical Services,
works with 50 to 60 ARCFs in the immediate area and a total of approximately 150 ARCFs in Los
Angeles County. This group has the contract with the county for providing the continuing
4
MAR 11 '98 89:22AM SABO 8 GREEN
educational units to ARCFs. Chevallier's Psychiatric Medical Services also acts as a 24 hour
community resource center referring patients to medical and social services within the area. The
program receives approximately 75 calls a day for referral services including 50 percent of the calls
for placement to medical or psychiatric facilities (approximately 35 referrals per day).
SDIM/0001/DOC/10
3/1098145 d
5
•
r\L4
;.Y°MRERIA
4 ific� ovfiacad
rk MAYOR PRO TEM: COLS\
pc ROBERT W BRUES[H
couecaMEMEERS: TTT 8838 E.VALLEY BOULEVARD • P.O. BOX 399
MARGARET CLARK 'FT ROSEMEAD.CALIFORNIA 91770
GARY A.TAYLOR TELEPHONE(818)288-6671
JOE vasous TELECOPIER 8183079218
COUNCIL MEMORANDUM
FROM: CITY MANAGER
DATE: FEBRUARY 20, ]998
RE: INGLESIDE HOSPITAL FINANCING
The American Institute for Health Care Centers, Inc., a non-profit 50](c)(3) organization wants
to purchase Ingleside Hospital. They are issuing tax-exempt bonds to finance the purchase of this
facility and another one in the City of Los Angeles. In order to sell the bonds they need the
approval of the City of Rosemead and the City of Los Angeles_
Attached is a memorandum from the City Attorney indicating that approval by the City does not
make the project a City project or obligate the City with respect to repayment of the debt.
The first step in the process is to schedule a Public Hearing in each of the cities. Subsequently a
resolution approving the sale of the bonds must be adopted by each City Council. Rosemead's
Public Hearing has been scheduled for 11:00 a _m. in the City Hall Conference Room on
Wednesday, March 4, 1998. A Resolution will be placed on the Agenda for your consideration at
the March 24, 1998 Council Meeting.
Also attached are documents from the Bond Counsel, Sabo & Green, a sample resolution, and a
copy of the Public Hearing notice. If you have any questions, please let me know.
mneuinwlbds
SENT BY: IS.ALLIN KRESS REISMAN ; 2- 5-98 : 7:50PM ; (3101 450-0506- 818 307 9218;# 1/ 1
•
Wallin, Kress, Reisman & Kranitz
Law Offices
From the 2800 28th Street, Suite 315 fax
Santa Monica, California 90405-6205
desk of Peter - (310) 450-9582
Wallin - Fax: (310)450-0506 memo
to: Don Wagner
fax#: Rosemead City Hall
re: Ingleside Hospital
date: February 5, 1998
pages: 1
The City of Rosemead has been asked to "approve" a bond issue the proceeds of which
will be used in part to acquire Ingleside Hospital. The hospital will be acquired by
American Institute for Health Care Centers, Inc. a non-profit 501(c)(3) organization.
Approval by the City Council is required if tax exempt status is to be extended to the
bond issue.
The Internal Revenue Code pi-units tax-exemption for interest on bonds issued by
hospitals, colleges, museums and other 501(c)(3) organizations. However, these
"Qualified 501(c)(3) bonds" are treated as private activity bonds, and are thus subject to
public hearing and approval requirements applicable to such bonds. IRC Section 145(a)
provides that bonds come within this preferred category if at least 95% of the proceeds
ere to be used in exempt activities of a 501(c)(3) organization. Any property provided by
the bond proceeds must be owned for tax purposes by a 501(c)(3) organization or a
governmental unit.
Under IRC Section 147 (f), if the bond is not issued by or on behalf of a governmental
unit the legislative body of the governmental unit having jurisdiction over the area in
which the facility is located must approve the issue after a public hearing following
reasonable public notice. - - - -
This approval requirement enables the City to aid or refuse to aid the acquisition by
allowing it to be financed with tax exempt bonds. Approval so given does not make the
project a City project nor obligate the City with respect to repayment of the debt.
•
SABO & GREEN
ATTORNEYS AT LAW
A PROFESSIONAL CORPORATION
Los ANGELES O377CE 201 NORTH..E..STREET COACHELLA VALLEY OFfi CE
SUrlE 206
23801 Cu//RAGS ROAN SANBEarurowo,CAUFORNIA 92401 - 35-325 DATE PALM DRIVE
SuITE 1015 (909)383-9373 -
$TY, ALI
50
CALaea(818Cd.6019u 91302 FAX(909)383-9378 CATHEDRAL 3 92234
(B(8)8)70445 (]67)0)7-0813
FAX(818)704-4729 FAX(160)7]0-1]24
MEMORANDUM
TO: Frank Tripepi
City of Rosemead, City Manager
FROM: Joel T. Boehm
DATE: February 2, 1998
RE: Ingleside Hospital Financing
As we discussed last week, San Bernardino Associated Communities Financing
Authority, (SANBAC), has been asked by American Institute for Health Care Centers, Inc., a
California non-profit 50I(c)(3) corporation, to have executed tax-exempt and taxable certificates of
participation, (Certificates)the proceeds to be used to acquire the Cigna Hospital located within the
boundaries of the City of Los Angeles and the Ingleside Hospital located within the boundaries of the
City of Rosemead.
I have attached a summary of what is being done along with a draft of a Notice of
Public Hearing and a draft of the Resolution. If everything appears okay, would you please have the
Notice published in a Rosemead newspaper or call me or Carol Tuchfarber and we will have the
Notice published. The hearing date should be at least 14 days after the Notice is published in the
paper. After the Notice is published and the public hearing date has passed, the City Council will
need to adopt the Resolution. Please call if you have comments or questions.
Thank you for your help.
SDIM/0001/MEML3
2x2/98 1015 ct
•
SABO & GREEN
ATTORNEYS AT LAW
A PROFESSIONAL CORPORATION
Los ANGELES OFFICE 201 NORTH"E"STREET COACHELLA VALLEY OFFICE
SUITE 206
23801 Cal ABASAE ROAD SAA'BERNAROMo,CALIFORNIA 92401 - 35-325 DATE PALM DRIVE
- - ` - -
Suit 1015 - (909)383-9373 SurrE 150
CALABASAS,CALIFORNIA 91302 FAX(909)383-9378 CATHEDRAL CITY,CALIFORNIA 92234
(818)704-0195 (760)770-0873
FAX(818)704-4729 FAX(760)770-1724
February 2, 1998
Mr. Frank Tripepi
City of Rosemead
City Manager
8835 E. Valley Boulevard
Rosemead, California 91770
Dear Mr. Tripepi,
San Bernardino Associated Communities Financing Authority (SANBAC) is
proposing to have executed not to exceed 845 million of tax-exempt and taxable certificates of
participation (Certificates) for American Institute for Health Care Centers, Inc., a California
non-profit 50](c)(3) corporation (Corporation) the proceeds to be used to acquire the Cigna
Hospital, a closed general acute care hospital facility located at 1711 West Temple Street, Los
Angeles, California and the Ingleside Hospital, an acute psychiatric hospital located at 7500 E.
Hellman Avenue, Rosemead, California.
The financing is necessary for the non-profit Corporation to reopen the closed Cigna
Hospital and to renovate and equip both the closed Cigna Hospital and the Ingleside Hospital and to
continue to provide low-cost quality care to the residents of the greater Los Angeles community.
The Internal Revenue Code Section 147(0 requires the local government agency
having jurisdiction over the area in which the facilities are located conduct the required public hearing
regarding the proposed financing and requires the elected representatives of such governmental unit
approve the financing.
All debt indebtedness will be borne by the Corporation and neither the faith and credit
nor the taxing powers of the City of Rosemead is pledged to the payment of the principal of,
premium, if any, or interest on the Certificates nor shall the City of Rosemead be liable or obligated
to pay the principal of, premium, if any, or interest on the Certificates.
The Certificates shall be executed and delivered in fully registered form without
coupons, expected to be dated May 1, 1998 and bearing interest on May 1 and November 1 of each
year commencing November 1, 1998. The Certificates shall mature on May 1 of each of the years
Frank Tripepi
February 2, 1998
Page 2 •
from and including 1999 to and including 2028 in principal amounts as set forth in the Certificates,
and will earn interest not to exceed the maximum interest rate permitted by law.
The Corporation has selected the firm of Sabo & Green as Bond Counsel, Miller&
Schroeder Financial, Inc. as Underwriter and Hinshaw& Culbertson as Underwriter's Counsel. Leeal
documents will consist primarily of a Trust Agreement, Installment Purchase Agreement and a Deed
of Trust.
The City of Los Angeles is also conducting a public hearing and approving the
financing. Please call if you have any questions or comments.
Very truly yours,
SABO & GREEN
A Professional Corporation
9 e•EV"'
Joel T. Boehm
JTB:ct
SDID110001/L R'1
NOTICE OF PUBLIC HEARING
NOTICE IS HEREBY GIVEN that at [1:00 P.M. on Thursday, February 26, 1998] at 2800 28th
Street, Suite 315, Santa Monica, California 90405, the City of Rosemead will conduct a public
hearing(the"Public Hearing") as required by Section 147(f) of the Internal Revenue Code of 1986,
as amended (the"Code") to discuss approval and authorization on behalf of American Institute for
Health Care Centers, Inc., a California non-profit 501(c)(3) corporation (the "Corporation") of the
execution and delivery of San Bernardino Associated Communities Financing Authority Health Care
Certificates of Participation (the "Certificates") for the financing of certain facilities as described
below (the `Projects").
PROJECT: The acquisition by the Corporation of the assets and operations of the Cigna
Hospital, a general acute care hospital facility located at 1711 West Temple Street, Los
Angeles, California and the Ingleside Hospital, an acute psychiatric hospital located at
7500 E. Hellman Avenue, Rosemead, California.
AMOUNT: The total principal amount of the Certificates will not exceed 545,000,000.
The Certificates shall be repaid from revenues derived from the Projects and other security as
provided in the legal documents. Neither the faith and credit nor the taxing power of the City of
Rosemead (the "City"), the San Bernardino Associated Communities Financing Authority (the
"Authority"), the State of California (the "State") or any other political corporation, subdivision or
agency of the State is pledged to the payment of the principal of, premium, if any, or interest on the
Certificates, nor shall the City, the Authority, the State or any other political corporation, subdivision
or agency of the State be liable or obligated to pay the principal of, premium, if any, or interest on
the Certificates_
The Public Hearing is intended to comply with the public approval requirement of Section 147(1) of
the Code,
Those wishing to comment on the proposed execution and delivery of the Certificates or on the
nature and location of the Projects, may either appear in person at the public hearing or submit
written comments to the address shown below, which must be received prior to the hearing.
City of Rosemead
• Atm: Frank Tripepi
8838 E. Valley Boulevard
Rosemead, California 91770
Dated: February 9, 1998
SDIMI000I Docn
2;2/98 1045 et
•
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
ROSEMEAD APPROVING THE EXECUTION AND DELIVERY
OF HEALTH CARE CERTIFICATES OF PARTICIPATION BY
THE SAN BERNARDINO ASSOCIATED COMMUNITIES
- _ FINANCING AUTHORITY TO BENEFIT INGLESIDE _
- HOSPITAL AND RELATED FACULTIES - -
WHEREAS, American Institute for Health Care Centers, Inc., a California non-profit
501(c)(3) corporation (the "Corporation"), has requested that the San Bernardino Associated
Communities Financing Authority("SANBAC") cause to be executed and delivered tax-exempt and
taxable certificates of participation in an aggregate principal amount not to exceed 545,000,000 (the
"Certificates") for the purpose of financing the acquisition of Cigna Hospital, 1711 West Temple
Street, Los Angeles, California and Ingleside Hospital, 7500 E. Hellman Avenue, Rosemead,
California (collectively, the"Facilities");
WHEREAS, pursuant to Section 147(0 of the Internal Revenue Code of 1986, as
amended (the "Code") the financing described above and the execution and delivery of the
Certificates must be approved by the City of Rosemead (the "City") because one of the Facilities is
located within the territorial limits of the City;
WHEREAS, the City Council is the elected legislative body of the City and is one of
the applicable elected representatives required to approve the financing of the Facility and the
issuance of the Certificates under Section 147(0 of the Code;
WHEREAS, SANBAC and the Corporation has requested that the City Council
approve the financing of the Facilities and the execution and delivery of the Certificates in order to
satisfy the public approval requirement of 147(0 of the Code; and
WHEREAS, pursuant to Section 147(0 of the Code, a duly authorized representative
of the City Council has, following notice duly given, held a public hearing regarding the financing of
the Facilities and the execution and delivery of the Certificates.
NOW, THEREFORE, IT IS RESOLVED AS FOLLOWS:
1. Pursuant to Section 147(0 of the Code, public hearing regarding the financing
of the Facilities and the execution and delivery of the Certificates was held. The City Council hereby
approves the financing described above and the execution and delivery of the Certificates by
SANBAC and the operation of SANBAC within the City to provide financing for the Corporation.
It is the purpose and intent of the City Council that this Resolution constitutes approval of the
financing of the Facilities and the execution and delivery of the Certificates for the purposes of
Section 147(0 of the Code by the applicable elected representatives of the governmental unit having
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jurisdiction over the area in which the Facilities are and will be located, in accordance with said
Section 147(0.
2. The officers of the City are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents which they deem
necessary or advisable in order to carry out, given effect to and comply with the terms and intent of
this Resolution and the financing transaction approved hereby.
3. City approval pursuant to Section 147(0 of the Code pursuant to this
Resolution shall not constitute approval for other City regulatory or other requirements, such as
building permits.
4. This Resolution shall take effect immediately upon its passage.
The foregoing Resolution was on the_ day of , 1998, passed and adopted
by the City Council of the City by the following vote:
AYES:
NOES:
ABSENT:
[SEAL]
Attest:
City Clerk of the City of Rosemead
SDJM/0001moc¢
2,2'98❑00 ct
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