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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.
(Ord. 1584 §1 (part))
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. “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, rehabilitation or improvement. “Cost” shall include working capital and 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 health 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.
C. “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 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, an office building, a research, maintenance, storage, utility or parking facility and all real and personal property, land, buildings, structures, facilities, equipment, fixtures and furnishings 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.
D. “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.
E. “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.
(Ord. 1584 §1 (part))
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.
(Ord. 1584 §1 (part))
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.
(Ord. 1584 §1 (part))
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