San Diego Municipal Code Div. 1 General Provisions and Definitions

(“General Provisions and Definitions” added 11–13–1979 by O–15074 N.S.)

This article may be cited as The City of San Diego Health Facility Revenue Bond Law. (“Citation” added 11–13–1979 by O–15074 N.S.)

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. (“Declaration of Necessity” added 11–13–1979 by O–15074 N.S.)

Unless the context otherwise requires, the terms defined in this article shall have the following meanings:

(a) “Bonds” means any bonds, notes, certificates, debentures or other obligations
issued or entered into by the City pursuant to this article and payable
exclusively from revenues as in this article defined and from any other funds
specified in this article upon which such obligations may be made a charge
and from which they are made payable.

(b) “City” means The City of San Diego.

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(c) “Cost” means the total of all costs incurred by or on behalf of a participating
health institution necessary or incident to the 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 all such costs which under
generally accepted accounting principles are not properly chargeable as an
expense of operation and maintenance, 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.

(d) “Council” means the City Council of The City of San Diego.

(e) “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 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, a research, maintenance, storage, utility or parking facility and all structures, facilities, equipment 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.

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(f) “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 the refunding or refinancing
of obligations incurred to finance such acquisition, construction, rehabilitation
or improvement.

(g) “Revenues” means amounts received by the City as repayment of principal,
interest, and all other charges with respect to a loan under this article, any
proceeds received by the City from mortgage, hazard or other insurance on or
with respect to such a loan (or any property securing such loan), all other
rents, charges, fees, income and receipts derived by the City from the
financing of a health facility under this article (whether by loan, lease,
installment sale or any other method authorized by this article), 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.
(“Definitions” added 11–13–1979 by O–15074 N.S.)

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Article 7: City of San Diego Health Facility Revenue Bond Law