San Leandro Municipal Code Art. 1 General Provisions and Definitions

This Chapter may be cited as the City of San Leandro Health Facility Revenue Bond Law.

The City 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.

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

Bonds.

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

City.

"City" means the City of San Leandro.

Cost.

"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 purpose, reserves for debt service and for repairs, replacement, additions and improvements, and capitalized bond interest for such period as the City may determine.

Council.

"Council" means the City Council of the City of San Leandro.

Health Facility.

"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.

Participating Health Institution.

"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 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.

Revenues.

"Revenues" means amounts received by the City as repayment of principal, interest, and all other charge with respect to a loan under this Chapter, 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 Chapter (whether by loan, lease, installment sale of or any other method authorized by 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.