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HomeMy WebLinkAbout1978 Ordinance No. 014(,,...-• IN TRO DUCE D AS A BILL BY COUNCILMAN BY AUTHORITY ORDINANCE NO . 14 I SERIES OF 1978 AN ORDINANCE AUTHORIZING THE ~SSUANCE OF $7,600,000 HOSPITAL REVENUE BONDS (THE SWEDISH MEDICAL CENTER PROJECT), SERIES 1978 TO REFINANCE CERTAIN OUTSTAND- ING OBLIGATIONS OF THE SWEDISH MEDICAL CENTER; RATIFYING CERTAIN ACTION HERETOFORE TAKEN; AUTHORIZING THE EXECUTION AND DELIVERY BY THE CITY OF A FINANCING AGREEMENT, INDENTURE OF TRUST, CLOSING DOCUMENTS AND SUCH BONDS IN CONNECTION THEREWITH; MAXING DETERMINATIONS AS TO THE .SUFFICIENCY OF REVENUES AND AS TO OTHER MAT';rERS RELATED TO SUCH REFINANCING; AND . REPEAL !NG ACTION HERETOFORE TAKEN IN CONFLICT HEREWITH. , WHEREAS, the City of Englewood, in the County of Arapahoe an d State of Colorado (the "City•), is a legally , and regularly created, established, organized and existing municipal corporation under the provisions of Article XX of the Constitution of the State of Colorado and the Charter of the City; and (1) • • WHEREAS, the Colorado County and Munic.ipality Development Revenue Bond Act, Article 3, Title 29 of Colo- rado Rev ised Statutes 1973, as amended ·cthe •Act•) author- izes counties and municipalities 'to finance, refinance, acquire, own, lease, improve, and dispo~e · of properties to the end tha t more adequate hospital care may be pro- vided, which promotes the public health, welfare, safety, conveni ence , and prosperity; and ~ WHEREAS, the Act further authorizes counties and municipalities to refinance any obligations previously incurred to finance or aid in financing of hospital, health- care, or nursing home facilities which would constitute a project within the meaning of the Act had such facilities been originally undertaken and financed by a county or municipality pursuant to the Act; and WHEREAS, the Act further authorizes counties and municipalities to issue revenue bonds for the purpose of defray ing the cost of· refinancing any project constituting . , hospi tal, health-care or nursing home facilities and all incidental expen ses incurred in issuing such bonds and to secure the payment of such bonds as provided in the Act; and WHEREAS, The Swedish Medical Center, a nonprofit corporat ion, organized and existing under the laws of the State of Colora do (the "Hospital"), has pr~sented to the City a proposal whereby the City will, pursuant to the Act, refin ance Firs t Mortgage Bonds, Series 1973, and First Mort- gage Bonds, Series 1974, of the Hospital which were issued to finance the construction, renovation and remodeling of hospital facilitie s (the "Project") owned and operated by the Hospital i n the City, which Project.would constitute a "proj e ct" within the meaning of the Act had such hospital (2) . 1 facilit ies been originally undertaken and financed by a county or mQnicipality pursuant to the Act1 and WHEREAS, Hospital Revenue Bonda (The Swedi~h Medical Center Project), Series 1978 in the aggregate principal amoun t of $7,600,000 (the "Bodda•) will be issued and delivered by the City to The Aetna Casualty and Surety Company (the "Purchaser"), to pay the cost of refinancing the Project and costs incidental to the authorization, issuance and sale of the Bonds; and WHEREAS, concurrently with the issuance of the Bonds, the Hospital will enter into a financing agreement · with the City providing for payments sufficient to pay the principal of, premium, if any, and interest ·on the Bonds and to meet other obligation• as herein and therein provided; and WHEREAS, on April 17, 1978, the City Council adopted a reso lution whereby the City agreed to authorize . ~he issuance and sale·of the Bonds, it being understood , that no costs of issuance and sale were to be borne by the City and that the necessary financing documents were sub- ject to formal approval by ordinance of the City Council pursuant to the Act; and WHEREAS, on May 15, 1978, pursuant to a resolu- tion duly adopted on that date by the City Council, the City, the Hospital and the Purchaser entered into a Bond Purchase Agreement (the "Bond Purchase Agreement•) under which the Bonds were sold by the City to the Purchaser; and WHEREAS , there have been presented to the City Council: (1 ) the proposed form of Financing Agreement dated as of May 15, 1978 between the Ci~y and the Hospital (the "Agreement") and (2) the proposed form of Indenture (3) n • of Trust d ated as of May 15, 1978 (the •indenture") be- twee n the City and The First National Bank of Denver, as Trustee (the "Trustee"). NOW, THEREFORE, BE IT ORDAINED ·BY THE CITY CO UNCIL OF THE CITY OF ENGLEWOOD, COLORADO: ' Section 1. All action (not inconsistent with the provisio n s of this ordinance) heretofore taken by the C ity Counci l and the officers of the City directed toward the refinanc i ng of the Project and the issuance and sale of the Bond s therefor be, and the same is hereby, rati- fi ed , approved and confirmed. Section 2. The City shall refinance the Project by l oaning the proceeds of the .Bonds to the Hospital in . accordanc e wi th the provisions of the Agreement for the purposes desc ribed above. Sect ion 3. To defray the cost of refinancing t he Project there is hereby ·authorized and created an i s sue of ho s pi tal revenue bonds desi4nated "City of Engle- wood , Colorado, Hospital Revenue Bonds (The Swedish Medical Center Proj e ct), Series 1978" in the aggregate p rincipal am o u nt of $7,600,000 issuable as fully registered bonds in the denominations of $5,000 and any integral multiple the reof, dated May 15, 1978 (except as otherwise p rovided in the I nde nture), b e aring interest from their da te at the rate of 6.75• per annum prior to maturity and at the rate of 7.7 5% per annum after maturity, payable semiann u ally on May 15 and Nove mber 15 in each year, com- mencing Novembe r 15, 1978, and matur i ng on May 15, 1999. T he Bonds shal l b e p ayable, shall be ~ubject to redemption p r ior to maturi ty and shall be in substantially the fo rm as pro v ided i n the Indenture. Pursuant to the Bond Pu rchase Agreemen t th e bonds shall be delivered to (4) • the Purchaser at par plus accrued interest from May 15, 1978 to th e date of their payment and delivery. The ma x imum net effective interest rate permitted for the B o n ~s is he reby declared to be 81 per annum and the actual net effective interest rate · on the. ·Bonds is dete rmined to be under all conditions and at all times dur ing the life of the Bonds, less than such maximum rate. Section 4. The !ollowing determinations and f i nd ings ar e hereby made in accordance with Sections 29-3-113, 2 9 -3-114 and 29-3-120 of the Act: (a) The amount necessary in each year t o pay the principal of and the interest on the Bonds i s as follows: Ann u a l Peri od to and I ncluding May 15 1979 1980 1981 1982 1983 1984 1 985 1986 1987 1988 19 89 199 0 199 1 199 ~. 199 3 199 4 1995 19 9 6 1997 1998 1999 Interest "for such Period $513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 51 3,000 51 3,000 5 1 3,000 51 3,000 51 3,000 513,000 51 3,000 51 3,000 5 13 ,000 51 3,000 513,000 Principal to be Retired · in such Period· (5) $ 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 , $7,600,000 Annual Debt Service Requirement $513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 513,000 $8,113,000 (b) No reserve fund has been established nor is proposed to be established for 'the retirement of' the Bonds or the maintenance of the Project and accordingly it will not be necess~ry to pay amounts into any reserve fund. • ' (c) The terms under which the Project is to be refinanced provide that the Hospital shall maintain the Project and carry all proper insurance with , respect thereto. (d) The revenues payable under the Agreement are sufficient to pay, in addition to all other requirements of the Agreement and this ordinance, all sums referred to in paragraphs (a) and (c) of this Section. (e) The revenues payable under the Agreement • are sufficient t~ pay, in addition to all other requirements of the Agreement and this ordinance, . all taxes payable pursuant to Section 29-3-120 of the Act. Section S. The forms, terms and provisions of the Agreement and the Indenture be and they hereby are approved and the City shall enter into the Agreement and the Indenture in the forms of each of such documents pre- sented to the City Council at this meeting, with such changes therein as are not inconsistent herewith; and the Mayor is hereby authorized and directed to execute and deliver such documents and the City Clerk is hereby . . authorized and directed to affix the City seal to and to attest such documents. (6) , . r -e Section 6. The form, terms and provisions of the Bonds, in the form contained in the Indenture, be and they h e r e by are approved, with such c~an9es therein as are not inconsistent herewith; and the Mayor and the City . . Clerk are ea ch hereby authorized and directed to execute the Bonds and each is authorized 'and directed to deliver them, and the seal of the City is hereby authorized and direc t ed to be impressed on the Bonds. The signature of the Ma y or on the Bonds and the signature of the City Clerk on the Bonds shall be manual~ . Section 7. The Mayor is hereby authorized to execute and deliver to the Trustee the written order of the City f or the authentication and delivery of the Bonds by the Trustee, in accordance with Section 2.6 of the Indenture. Sectioh 8. The First National Bank of Denver, . Denver, Colorado, is hereby appointed as trustee under the Indentu r e, thereby al"so serving as registrar and paying , agent unde r the terms of the Indenture and Agreement. Section 9. The officers of the City shall take all action i n conformity with the Act necessary or reason- ably required to effectuate the issuance of the Bonds and s h a ll take all action necessary or desirable in conformity wi t h th e Act to ref i nance the Project and for carrying out, g iv i ng effe ct to and consummating the transactions contem- p ~~e d by t his ord i nance, the Agreement and the Indenture, inc uding without limitation the execution and delivery of . ' . a ny closing docume nts to be delivered in connection with t h e sale a nd delivery of the Bonds. (7) .• • Section 10. The cost of refinancing the Project will be paid out of the proceeds of th~ Bonds and none of them will be the general obligations of the City nor shall any. of them , including interest thereon, constitute the debt or inde btedness of the City within.the meaning of the Constitution or statutes of the State of Colorado or of the home rule charter of the City nor shall anything con- t~ined in thi s ordinance or in the Bonda, the Agreement, the Indenture, or any other instrument give rise to a pecuniary liability or a charge upon the general credit or taxing powers of the City, nor shall the breach of any agreement contained in this ordinance, or any instrument .. impose any pecuniary liability upon the City or any ·~barge upon its general credit or against i ta taxing powers'· the City having no power to pay out of its general funds, or ;· otherwise contribute any part of the costs of refinancing the Project, nor 0 power to operate the Project as a business or in any manner, nor shall the City condemn any land or . other property for the Project nor co,ntribute any land or other property to the Project. Section 11. After any of the Bonds are issued, this ordinance shall be and remain irrepealable until the Bonds and the interest thereon shall have been fully paid, cancelled and discharged. Section 12. If any section, paragraph, clause or provi s ion of this o ~~ina nce shall for any reason be held to be invalid or ~~e nforceable, the invalidity of unenforce ability of s uc h section, paragraph, clause or provision shall not affect any of the remaining provi- sions of this ordinance. ( 8) ;,. ,'.; ·' .... " ... ,, . . • . - ·. • Section 13. All bylaws, orders, regulations, resolutions and ordinances, or parts thereof,·of the City inconsistent herewith and with th• documents hereby approved, are hereby repealed to the ~~tent only of .such· . . inconsistency. This repealer shall not be construed as reviving any bylaw, order, regulation, resolution or ordinance, or part thereof. Section 14. Thi• ordinance, immediately on its -final passage and adoption, shall be numbered and recorded . : .. · ,._ .•.. · .. . i ' ·,,.. . .: in the official records of ·the City kept for that purpose~···. '· t;,· .. • ., , '• ;' ' I • ~,:. • authenticated by the signatures of the Mayor and City· .clerk,.>··;: : ... ? ... ;: •'. • -.. . -. I .. and published by reference in The .. Englewood Herald Sentinel,".: ;:,'_ ·. · /;' a newspaper .published and of general City •. . ·'-. ·• . •· :•. circulation in the · ·i:•. : ; .. · ·· .-·. ·:.' }, . . . Section 15. This ordinance shall be in fu11 · · force and effect•thirty (30) days after its publication following its final passage. . ' . . . ~· .· .. .. .• :·.· .. . .. ·: . •· ... .. INTRODUCED, PASSED ON FIRST, READING, AND ORDERED PUBLISHED this June 5, 19 (SEAL) ATTEST: (9) I, William o. James, City Clerk of the City of Englewood, Arapahoe County, Colorado, do hereby certify · that the above is a true and correct copy of an ordinance in~roduced, passed on first readinq, ·and ordered published in full in The Englewood Herald Sentin&l .at a regular meeting of the City Council on the 5th day of June, 1978. (SEAL) Attest: Published in The Englewood Herald Sentinel~ First publication June 7 , 19 78. , (10) . . • • • FINALLY PASSED, ADOPTED, AND APPROVED this 19th day of June , 1978. (SEAL) Attest: - Pub lished in The Englewood Herald Sentinel. Second publica- tion {i.e., publication by reference after final passage) Jur\e 21 , 1978. We, James L. Taylor, Mayor, and William o. James, City Clerk, of t~e City of Englewood, in the County of Arapahoe and State of Colorado, do hereby certi2y that the above and foreg oing ordinance is a true and correct copy of the ordinance introduced, passed, and approved on first re ading at the regular mee ting held on the 5th day of June, 1978, published in full in The Englewood Herald Sentinel on the 7th day of June , 1978, introduced a second time , finally passed, adopted and approved, without any amendment , on the 19th day of June , 1978, and pub- lished a second time by reference in The Englewood Herald Sentinel on the 21st day of June , 1978. (SEAL) Attest: