HomeMy WebLinkAboutResolution - 2016-R0311 - Approve Issuance Of Bonds - CHS - 09/08/2016Resolution No.2016-R0311
Item No.5.10
September 8,2016
RESOLUTION
BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK:
WHEREAS,the Lubbock Health Facilities Development Corporation (the "Issuer")
was created by the City of Lubbock, Texas (the "City")pursuant to the provisions of the
Health Facilities Development Act,Chapter 221,Texas Health andSafety Code(the"Act"),
and authorized to issue bonds and loan the proceeds thereof for the purpose of providing
permanent financing of the acquisition and equipping of, and additions and improvements
to, health facilities located wholly or partly within the limits of the City and other
jurisdictions within the State of Texas (the "State")(with the approval of such other
jurisdictions), including through refunding the Issuer's existing obligations; and
WHEREAS,Providence Health &Services,a Washington nonprofit corporation
and Section 501(c)(3) organization (the "Borrower"), which is an affiliate of St. Joseph
Health System, a California nonprofit public benefit corporation,and of Covenant Health
System, a Texas nonprofit corporation ("CHS"), has requested the Issuer to issue its bonds
(the "Bonds")in a maximum aggregate principal amount not to exceed $85,235,000 to
finance of refinance the cost of acquisition,construction,expansion,remodeling,
renovation, furnishing and equipping of certain capital projects owned and operated by
CHS and located at Covenant Medical Center—Lakeside (formerly "St. Mary of the Plains
Hospital and Rehabilitation Center")and at Covenant Medical Center (formerly
"Methodist Hospital. Lubbock, Texas"), each located within the limits of the City
(collectively,the "Project");and
WHEREAS,pursuant to the provisions of Section 147(f)of the Internal Revenue
Code of 1986,as amended (the "Code"), the Issuer has caused to be published a notice of
a public hearing withrespectto the issuance ofthe Bonds andthe financingandrefinancing
of the Project,and held sucha hearing aftera reasonable notice on August 10,2016 (the
"TEFRA Hearing");and
WHEREAS,pursuant to the provisions of Section 147(f)of the Code and State law,
theCity Council oftheCityisthe designated "applicableelected representative"authorized
to approve, after the TEFRA Hearing,the issuance of the Bonds by the Issuerto enable the
Bonds to qualify as tax-exempt obligations under the Code; and
THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF LUBBOCK,
TEXAS:
Section 1.THAT the City Council, solely for the purposes of Section 147(f)of the
Code,hereby approves the issuance of the Bonds by the Issuer to finance or refinance the
Project for the benefit of the Borrower.
Section 2. THAT the foregoingapproval is given in accordance with the provisions
of Section 147(0 of the Code and for no other purposes and is not to be construed as a
financial undertaking by the City. The Bonds shall not constitute a liability, indebtedness,
oran obligation of theCity, norshall any ofthe assets of the Citybe pledged to the payment
of the Bonds.
RES.LCU-2016 Refunding Improvement Bonds (TEFRA Approval)8-15-16 Page 1of2
Section 3. THAT this Resolution shall take effect immediately from and after its
passage and is accordingly so resolved.
Passed by the City Council on the 8th day of September 2016.
Q
DANIEL M. POPE, AYOR
ATTEST:
a J-0 A - - - -k
Re cca Garza, City Secret
APPROVED AS TO CONTENT:
41 111Aa_ c>14.
Linda Cuellar, Acting Executive Director of Finance
APPROVED AS TO FORM:
PES.LubbockHealthFacilitiesDevelopmentCorp-2016 Bonds (8-15-16) Page 2 of
GENERAL CERTIFICATE OF
CITY OF LUBBOCK, TEXAS
I, the undersigned official of the City of Lubbock, Texas (the "City"), hereby certify as follows:
1. This Certificate is executed and delivered with reference to the series of bonds styled
"Lubbock Health Facilities Development Corporation Revenue Bonds (Providence St. Joseph Health)
Series 2016C (the "Series 2016C Bonds").
2. The City is a duly created, organized and existing political subdivision of the State of
Texas, acting by and through its City Council and its duly elected, appointed or empowered officials, and
the Mayor of the City is the chief elected executive officer thereof.
3. On January 14, 1982, the City approved the creation of the Lubbock Health Facilities
Development Corporation (the "Issuer"), the Issuer's articles of incorporation and initial bylaws pursuant
to an Ordinance of the City Council and authority conferred by the Texas Health and Safety Code,
Chapter 221, as amended (the "Enabling Act"). The City has approved all subsequent amendments to the
bylaws. There have been no subsequent amendments to the articles of incorporation since their initial
approval.
4. The following persons are the duly appointed and acting members of the Board of
Directors of the Issuer:
Name Office
Cory Church
Director
Cynthia Dunn
Director
Marlise Hernandez
Director
Lori Rice - Spearman
Director
Thomas Termer
Director
Carolyn Thompson
Director
5. The City Council has not taken any action pursuant to the Enabling Act or otherwise to
limit the effectiveness of the bond resolution of the Issuer dated August 18, 2016 or to limit the Issuer's
authority to issue and deliver the Series 2016C Bonds or to affect the transaction to be financed with the
proceeds thereof.
6. The Attorney General of the State of Texas is hereby authorized and directed to date this
Certificate concurrently with the date of the approval of the Series 2016C Bonds and can rely on the
absence of any litigation or contest pertaining to the Series 2016C Bonds or any other matters covered by
this Certificate, and on the veracity and currency of this Certificate at the time of approval of the Series
2016C Bonds, unless otherwise notified.
DATED September 8, 2016
[Sea]]
CITY OF LUBBOCK, TEXAS
By: QdA�
City Secretary
NOTICE OF INTENTION TO ISSUE BONDS
STATE OF TEXAS §
CITY OF LUBBOCK §
LUBBOCK HEALTH FACILITIES §
DEVELOPMENT CORPORATION §
NOTICE IS HEREBY GIVEN TO THE CITY COUNCIL OF THE CITY OF LUBBOCK,
TEXAS, PURSUANT TO SECTION 221.062 OF THE TEXAS HEALTH AND SAFETY CODE THAT
ON September 1, 2016, or thereafter, the Lubbock Health Facilities Development Corporation (the
"Issuer") intends to issue its REVENUE BONDS SERIES 2016C (PROVIDENCE ST. JOSEPH
HEALTH) (the "Series 2016C Bands"), in one or more series in an aggregate principal amount not to
exceed $85,235,000.
I. THE HEALTH FACILITIES
The proceeds of the Series 2016C Bonds are expected to be used for the current refinancing of the
Issuer's Variable Rate Refunding Revenue Bonds (St. Joseph Health System), Series 2008A and/or Series
2008B issued for the benefit of the St. Joseph Health System, a nonprofit corporation organized and
existing under the laws of the state of California ("SJHS'), the proceeds of which were used to finance
and refinance (i) certain obligations originally incurred to finance or refinance improvements and
additions to hospital facilities owned and operated by Covenant Health System, (ii) certain taxable debt
related to capital projects at Covenant Medical Center Lakeside (formerly "St Mary of the Plains Hospital
and Rehabilitation Center"), (iii) operating room, emergency room and radiology capability at Covenant
Medical Center (formerly "Methodist Hospital, Lubbock, Texas"), and (iv) improvements to the physical
and behavioral rehabilitation facilities at Covenant Medical Center Lakeside. The principal addresses for
the facilities where proceeds of the bonds to be refunded were expended is 4000 241 Street, Lubbock,
Texas, for Covenant Medical Center Lakeside and 3615 19" Street, Lubbock, Texas, for Covenant
Medical Center. Such facilities are located within the city limits of the City of Lubbock, Texas.
H. PROJECT COSTS
The total projected cost of refinancing the projects described above will not exceed $85,235,000.
H. NECESSITY
Financing the project by the refinancing of the debt and the issuance of the Series 2016C Bonds
as described above is necessary in order to reduce the cost of health facilities necessary to promote the
present and prospective health, safety and general welfare of the people of the City of Lubbock, Texas,
and the State of Texas and to improve the adequacy, cost, and accessibility of health care to the general
public.
IV. USER
The user of the hospital facilities being financed and refinanced through the issuance of the
Bonds is Covenant Health System, a nonprofit corporation organized under the laws of the State of Texas
("CHS"). CHS is affiliated with Providence Health & Services, a Washington nonprofit corporation
("Providence"). Providence will be the borrower of the Series 2016C Bond proceeds.
SIGNED AND SEALED this P-i— day of 6
LUBBOCK HEALTH FACILI IES
DEV MENCT CORP TION
By: Z
President, Board oof, Direec rs
By: rOf/'�
Secretary, Board of D rectors
Notice oflntention
FILED, this5�day of August, 2016, with the City Council of the City of Lubbock, Texas.
CITY OF LUBBOCK, TEXAS
By:
Ci Secretary
[Seal]
Notice oflntention
NUNUTES OF PUBLIC HEARING
Re: Lubbock Health Facilities Development Corporation Revenue Bonds Series 2016
(Providence St. Joseph Health)
The undersigned, Don C. Dennis, designated Hearing Officer of the Lubbock Health
Facilities Development Corporation (the "Issuer"), the Issuer of the above -referenced bonds (the
"Bonds', called the Public Hearing of the Issuer held at the offices of Boemer, Dennis & Franklin,
920 Avenue Q, Lubbock, Texas, on May 10, 2016 to order at 2:30 p.m.
I declared that a Public Hearing required under Section 147(f) of the Internal Revenue Code
of 1986 was open for purposes of discussing the Bonds and the projects to be financed, refinanced
or constructed with the proceeds of the Bonds (the "Projects").
I declared that the required notice of the Public Hearing for the Projects was published in
the Lubbock Avalanche -Journal, being a newspaper of general circulation in Lubbock County,
Texas, as evidenced by an Affidavit of Publication attached hereto as Exhibit A.
I proceeded to hold the Public Hearing. No member of the public attended the Public
Hearing and thus no comments were made or discussed about the Projects or the Bonds.
After sufficient time was given for any member of the public to make their comments with
respect to the Bonds and the Projects, I declared the Public Hearing closed at 3 : oo p.m.
DATED: August 10, 2016.
Don C. Dennis, Hearing Officer
Lubbock Health Facilities Development
Corporation
EXMBIT A
Affidavit Of Publication
[attached hereto]
THE STATE OF TEXAS
COUNTY OF LUBBOCK Ca.r'0)burt>
Before m-9abe a Notary Public in and for Lubbock County, Texas on this day,
personally appeared Pili Linares of the Southwestern Newspaper Corporation, publishers
of the Lubbock Avalanche -Journal — Morning, and Sunday, who being by me duly sworn did depose and say
that said newspaper has been continuously for more than fifty-two weeks prior to the first insertion of this
Legal Notice No. at Lubbock County, Texas and the
attached printed copy of the Legal Notice is a true copy of
in o Avalanche•Journal on the following dates:
i
NOTARY PUBL�
VP OF SALES My commission e,
LLTBBOCK AVALANCHE:JOURNAL .
Morris Communication Corporation, LLC
fl
Subscribed and sworn to before me this day of
and was printed
for the State of Texas
PYBURN
. Sete of Texas
NOTICE OF PUBLIC HEARING
(a) Covenant Medical Center
(formerly known as Methodist Hospital
U OCk, Texas), a 617-{ICense bed
acute care hospital facility located at
361s i9th Street, Lubbock, Texas; and
(b) Covenant Medical
Center -Lakeside (formerly known as St.
Mary of the Plains Hospital &
Rehabilitation Center) a
iitYnInadatAe0pAsefiPtaclInca 2hSee, Lubbock, Texas;
and (B) pay costs In connection with the
issuance of the Bonds. The facilities
listed above are owned and operated by
Covenant Health System, dba Covenant
Medical Center -Lakeside & Cavenani
Medical Center, a Texas nonprofit
corporation that is an affiliate of the
Borrower and an organization described
7n Section 501(c)(3) of the Code.
Dated. July 27, 2016