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Home My WebLink AboutResolution - 2000-R0147 - Revenue Bond Procceds To Refund Debt & Finance Costs - LHFDC - Health Facilities - 05/25/2000Resolution No. 2000-R 0147 May 25, 2000 Item No. 30 RESOLUTION CONCERNING THE USE OF THE PROCEEDS OF REVENUE BONDS TO BE ISSUED BY THE LUBBOCK HEALTH FACILITIES DEVELOPMENT CORPORATION TO REFUND CERTAIN DEBT AND TO FINANCE CERTAIN COSTS RELATING TO HEALTH FACILITIES WHEREAS, the Lubbock Health Facilities Development Corporation (the "Issuer") was created by the City of Lubbock, Texas ("City of Lubbock") pursuant to the provisions of the Health Facilities Development Act, Chapter 221, Texas Health and Safety Code (the "Act"). WHEREAS, it has been proposed that the Issuer issue its limited obligation revenue bonds (the 'Bonds") and loan the proceeds thereof to St. Joseph Health System ("SJHS"), a non-profit benefit corporation duly organized and existing under the laws of the State of California to provide funds (i) to currently refund certain existing indebtedness of SJHS which was originally issued by the Issuer and the proceeds thereof were used to refinance certain taxable debt related to capital projects at Covenant Medical Center Lakeside (formerly "St. Mary of the Plains Hospital and Rehabilitation Center"), and (ii) to add additional operating room, emergency room and radiology capability at Covenant Medical Center ("Covenant") (formerly "Methodist Hospital, Lubbock, Texas") and to make improvements to the physical and behavioral rehabilitation facilities at Covenant Medical Center Lakeside. WHEREAS, pursuant to Section 147(f) of the Internal Revenue Code of 1986, as amended (the "Code"), the Issuer has conducted a public hearing (the "Hearing") in the City of Lubbock following reasonable public notice with respect to the bonds and the captioned project and has presented to the City of Lubbock (the "Governing Body") a summary of the proceedings from the Hearing; WHEREAS, in order to satisfy the requirements of Section 147(f) of the Code, it is necessary for the Governing Body or the Mayor, as the chief executive officer of the City of Lubbock, to approve the Bonds after the Hearing has been held; WHEREAS it is deemed necessary and advisable that this Resolution be adopted; THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK, TEXAS THAT: SECTION 1. This Resolution is adopted for the purpose of satisfying _the requirements of the Issuer's articles of incorporation and by-laws and the conditions and requirements of Section 147(0 of the Code, the regulations promulgated thereunder, and any other applicable requirements. SECTION 2. The Governing Body hereby receives and accepts of the summary of the proceedings from the Hearing. SECTION 3. The Bonds, which may be issued in one or more series, are hereby approved pursuant to Section 147(f) of the Code, the Issuer's articles of incorporation and bylaws and other applicable laws, such Bonds to be issued in the maximum aggregate face amount of $60,000,000 to provide funds (i) to currently refund certain existing indebtedness of SJHS which was originally issued by the Issuer and the proceeds thereof were used to refinance certain taxable debt related to capital projects at Covenant Medical Center Lakeside (formerly "St. Mary of the Plains Hospital and Rehabilitation Center"), and (ii) to add additional operating room, emergency room and radiology capability at Covenant Medical Center ("Covenant") (formerly "Methodist Hospital, Lubbock, Texas") and to make improvements to the physical and behavioral rehabilitation facilities at Covenant Medical Center Lakeside. SECTION 4. This approval is not to be construed as a financial undertaking by the City of Lubbock, and the bonds shall never constitute an indebtedness or pledge of the City of Lubbock within the meaning of any constitutional or statutory provision, and the owners of the Bonds shall never be paid in whole or in part out of any funds raised or to be raised by taxation or any other revenues of the City of Lubbock. The City of Lubbock shall have no responsibility to furnish any person any continuing disclosure information with respect to the Bonds. 2 SECTION 5. The Mayor and City Secretary of the City of Lubbock and each council member of the City of Lubbock are hereby authorized, jointly and severally, to execute and deliver such endorsements, instruments, certificates, documents, or papers necessary and advisable to carry out the intent and purposes of this Resolution. SECTION 6. This Resolution shall take effect immediately from and after its adoption. PASSED by the City Council this 25th day of May , 2000. ATTEST: fcaythqarnell, City Secretary APPROVED AS TO CONTENT: Betsy Bucy, Managing Di lector of Finance APPROVED AS TO FORM: Anita Burgess, City Attorney ccdocs/M:\LHFDC\COV-2000\CITY 1.RES May 17, 2000 1DYN Ewa •- 3 Resolution No. 2000-80147 May 25, 2000 Item No. 30 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 JUNE 22, 2000, or as soon thereafter as possible, the Lubbock Health Facilities Development Corporation (the "Issuer") intends to issue its (ST. JOSEPH HEALTH SYSTEM) REVENUE BONDS SERIES 2000 (the "Bonds") in an aggregate principal amount not to exceed $60,000,000 with a maximum stated maturity of not later than July 1, 2035 in accordance with a Bond Indenture between the Issuer and Wells Fargo Bank of Texas, N.A., as trustee. I. THE HEALTH FACILITIES The proceeds of the Bonds will be used (i) for the current refunding of the Lubbock Health Facilities Development Corporation Revenue Bonds 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 bonds were used to refinance certain taxable debt related to capital Projects at Covenant Medical Center Lakeside (formerly "St Mary of the Plains Hospital and Rehabilitation Center") and (ii) to provide additional funds to add operating room, emergency room and radiology capability at Covenant Medical Center (formerly "Methodist Hospital, Lubbock, Texas") and to make improvements to the physical and behavioral rehabilitation facilities at Covenant Medical Center Lakeside and (iii) to pay costs of issuance of the Bonds. SJHS is qualified to do business in the State of Texas. The principal address for the facilities for which the bonds are being currently refunded is Covenant Medical Center Lakeside, 4000 2e Street, Lubbock, TX. and the principal addresses for the facilities at which certain bond proceeds will be spent to add operating room, emergency room and radiology capability and for additional improvements to the physical and behavioral rehabilitation facilities are 3615 19' Street, Lubbock, TX., for Covenant Medical Center; 4000 24' Street, Lubbock, TX. for Covenant Medical Center Lakeside; 2002 Miami Avenue, Lubbock, TX., for the School of Nursing and related facilities; the corner of 21' Street and Louisville, Lubbock, TX., for the Knipling Education Center and the West Parking Garage; the corner of 21 St Street and Knoxville for the Lifestyles Center and East Parking Garage; and 3610 21 St Street for the Children's Hospital. All such facilities are located within the city limits of the City of Lubbock, Texas. In addition, the proceeds of the Bonds will be used to pay underwriting, legal and other fees and costs relating to the issuance of the Bonds. Notice to City of Lubbock Page 1 IL PROJECT COSTS The total projected cost of the project as described above will not exceed $ 60,000,000. Expenses associated with issuance of the Bonds will not exceed $ 1,100,000. III. NECESSITY Financing the project by the refunding of the debt and the issuance of additional 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 which is controlled by SJHS. It is proposed that SJHS will be the Borrower under the Loan Agreement relating to the Bonds. SIGNED AND SEALED this &/ day of June, 2000. LUBBOCK HEALTH FACILITIES DEVELOPMENT CORPORATION By: Secretary, Board f Directors Notice to City of Lubbock Page 2 FILED, this 0 44ay of June, 2000, with the City Council of the City of Lubbock, Texas. CITY OF BB CK, TE By: City S c etary [Seal] MALHFDCICOV-2000\CTTY-NOT.001 June 1, 2000 Notice to City of Lubbock Page 3 CERTIFICATE OF PUBLIC HEARING I, the undersigned, hereby certify in connection with the issuance by the Lubbock Health Facilities Development Corporation (the "Issuer") of its Revenue Bonds (St. Joseph Health System) Series 2000 (the 'Bonds") in a principal amount not to exceed $62,000,000, as follows: 1. I am Don Dennis and I have been duly authorized to conduct a public hearing on the proposed issuance of the Bonds to provide funds (i) to currently refund certain outstanding indebtedness of St. Joseph Health System, a nonprofit public benefit corporation duly organized and existing under the laws of the State of California and qualified to do business in the State of Texas ("SJHS"), the proceeds of which indebtedness was used to refinance certain taxable debt related to capital projects at Covenant Medical Center Lakeside ("Covenant Lakeside") (formerly known as "St. Mary of the Plains Hospital and Rehabilitation Center"); (ii) to provide additional funds to add operating room, emergency room and radiology capability at Covenant Medical Center (formerly known as "Methodist Hospital, Lubbock, Texas") and for improvements to the physical and behavioral rehabilitation facilities at Covenant Lakeside; and (iii) to pay costs of issuance of the Bonds ((i), (ii), and (iii), collectively, the ("Project")). 2. Such hearing was conducted by me in accordance with published notice commencing at 5:00 p.m. on Wednesday, May 24, 2000 in the City Council Chambers, City Hall, 1625 13d' Street, Lubbock, Texas 79401, which offices were open to the public for purposes of the hearing. 3. At the time for the commencement of the hearing, I explained the nature of the hearing, the purpose of the financing, and publicly requested comments on the various uses of the proceeds of the Bonds and on the issuance of such Bonds. 4.. At the hearing no members of the public attended or presented comments orally or in writing. No comments in writing were received either before or after the hearing. 5. I imposed no time limitations on any public comments. IN WITNESS WHEREOF, I have hereunto set my hand this 1st day o ne, 2000. Don C. Dennis MALHFMCOV-2000\HEARiNGAPT June 1, 2000 Resolution NO. 2000-80147 BOERNER & DENNIS ATTORNEYS AT LAW 920 Avenue Q P. O. Box 1738 Lubbock, Texas 79401 Lubbock, Texas 79408 (806)763-0044 (806) 763-2084 (fax) Joe V. Boerner, Jr. Don C. Dennis William A. Franklin Board Certified—Civil Trial Law Texas Board of Legal Specialization June 2, 2000 RECEIVED JUK a 7- 76td CITY SECRETARY Hand Delivered I LUB13OGK, TEXAS Kathyie Darnell, City Secretary City of Lubbock 1625 13th Street Lubbock, Texas Re: Notice of Intent to Issue Bonds - Lubbock Health Facilities Development Corporation Dear Ms. Darnell: Enclosed is the original and a copy of a Notice of Intent to Issue Bonds from the Lubbock Health Facilities Development Corporation. Please note your receipt on both the original (for your records) and the copy and return the copy to me with our messenger. Thank you for your attention to this matter. Yours very truly, BOERNER & DENN C Don C. Dennis DCD Encl. MALHFDC\COV-200MITY-SECITR June 2, 2000