Fresno Municipal Code Art. 4 Revenue Bonds—health Facilities Financing Law

This article may be cited as the City of Fresno Health Facilities Financing Law.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

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 within the city 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.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

(a) Unless the particular provision or the context otherwise requires, the definitions and provisions contained in this section shall govern the construction, meaning and application of words and phrases used in this article, and, except to the extent that a particular word or phrase is otherwise specifically defined in this section, the definitions and provisions contained in Chapter 1, Article 2 and Chapter 8, Division 2, Article 1 of this Code shall also govern the construction, meaning and application of words and phrases used in this article unless the particular provisions or the context otherwise requires. The definition of each word or phrase shall constitute, to the extent applicable, the definition of each word or phrase which is derivative from it, or from which it is a derivative, as the case may be.

(b) "Health facility" means any facility, place or building within the city 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 provided and will continue providing to residents of the city essential health care services as specified in a project agreement between the city and the participating health institution providing or operating such facility, place or building. Health facility is a Facility within the meaning of Article 1 of this division.

Health facility includes a portion of one of the above types of facilities and includes, without limitation, the following facilities if operated in conjunction with one of the above types of facilities: Laboratory, laundry, nurses' or interns' residence, housing facility for patients, staff or employees and the families of any of them, administration building, office, research, maintenance, storage, utility or parking facility and all real and personal property, land, buildings, structures, facilities, machinery, equipment, fixtures and furnishings related to any of the foregoing or required or useful or 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.

(c) "Participating health institution" means a private nonprofit corporation or association authorized by the laws of the State to provide or operate a health facility as defined in this article and which, pursuant to the provisions of this article, undertakes the financing of the acquisition, construction, rehabilitation or improvement of a health facility or undertakes a refunding or refinancing of obligations incurred to finance such acquisition, construction, rehabilitation or improvement. Participating health institution is a company within the meaning of Article 1 of this division.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

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 for the costs of a health facility.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

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 costs 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 article, 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 necessary or appropriate 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.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

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 article, including a health facility conveyed to the city in connection with a financing under this article but not being financed or refinanced hereunder.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).

The city may, from time to time, issue bonds pursuant to the procedures set forth in Article 1 of this division for any of the purposes specified in this article.

(Added Ord. 81-61, § 1, eff. 6-26-81; Am. Ord. 2007-97, § 2, eff. 1-19-08).