05-19-2020 - AGENDA ITEM 08 PUBLIC HEARING REGARDING ISSUANCE OF TAX-EXEMPT BONDS FOR EMANATE HEALTH QUEEN OF THE VALLEY HOSPITALAGENDA ITEM NO.8
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AGENDA STAFF REPORT
City of West Covina I Office of the City Manager
DATE: May 19, 2020
TO: Mayor and City Council
FROM: David Carmany
City Manager
SUBJECT: PUBLIC HEARING REGARDING ISSUANCE OF TAX-EXEMPT BONDS FOR EMANATE
HEALTH QUEEN OF THE VALLEY HOSPITAL
RECOMMENDATION:
1. Conduct a Tax Equity and Fiscal Responsibility Act hearing in consideration of the issuance of tax-exempt
bond financing by the California Statewide Communities Development Authority for the benefit of Emanate
Health.
2. Adopt the following Resolution:
RESOLUTION NO.2020-26 - A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF WEST
COVINA, CALIFORNIA, APPROVING THE ISSUANCE OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY REVENUE BONDS (EMANATE HEALTH),
SERIES 2020 IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $260,000,000 FOR
THE PURPOSE OF FINANCING AND/OR REFINANCING THE ACQUISITION,
CONSTRUCTION, EQUIPPING, IMPROVEMENT, RENOVATION, REHABILITATION AND/OR
REMODELING OF HOSPITAL, HEALTH CARE AND RELATED FACILITIES AND CERTAIN
OTHER MATTERS RELATING THERETO
BACKGROUND:
The California Statewide Communities Development Authority (CSCDA) was created in 1988, under California's
Joint Exercise of Powers Act, to provide California's local governments with an effective tool for the timely
financing of community -based public benefit projects. More than 500 cities, counties and special districts, including
the City of West Covina, have become Program Participants to CSCDA — which serves as a conduit issuer and
provides access to an efficient mechanism to finance locally -approved projects. CSCDA helps local governments
build community infrastructure, provide affordable housing, create jobs, make access available to quality healthcare
and education, and more. CSCDA provides an important resource to local government members. CSCDA has
requested that the City conduct a Tax Equity and Fiscal Responsibility Act (TEFRA) public hearing for the
issuance of up to $260 million in tax-exempt bonds for the financing of Emanate Health (Emanate) facilities in
West Covina, Covina and Glendora. The West Covina facility is Emanate Health Queen of the Valley Hospital
Campus (Queen of the Valley) located at 1115 S. Sunset Avenue.
In order for all or a portion of the bonds to qualify as tax-exempt bonds, the City of West Covina, as the
governmental unit having jurisdiction over the area in which the facility is located, must conduct a TEFRA
hearing. The TEFRA hearing is intended to provide members of the community an opportunity to speak on behalf
of or against the proposed project. Prior to the TEFRA hearing, reasonable public notice must be provided to the
members of the community. Notice of the TEFRA hearing was published on May 11, 2020 in the San Gabriel
Valley Tribune (Attachment 2).
Once the TEFRA hearing has been conducted, an "applicable elected representative" of the governmental unit
hosting the proposed project must provide its approval of the issuance of the bonds for the financing of the project
The City Council, as the elected legislative body of the City, is an applicable elected representative.
DISCUSSION:
Emanate is seeking tax-exempt bonds in a principal amount not to exceed $260 million for three facilities in West
Covina, Covina, and Glendora. Since one of the facilities to be financed is located within the jurisdiction of the City
of West Covina, the City has been asked to conduct a TEFRA hearing and adopt a resolution that approves the
issuance of the bonds for the benefit of Emanate (Attachment 1).
Emanate will utilize a portion of the bonds for the expansion of Queen of the Valley Hospital. The City approved
the Specific Plan on November 5, 2019. Proceeds of the financing will be used for the Queen of the Valley Hospital
Medical Arts Building, Parking Structure and a new Emergency Department and Intensive Care Unit Addition (the
"Project"). A summary of each facility is outlined below:
Medical Arts Building
A new building, to be known as the "Medical Arts Building," is expected to be constructed on the Queen of the
Valley Hospital campus and will include the following:
• The Medical Arts Building currently is designed as a two-story, 60,000 square foot building.
• The Medical Arts Building is expected to include: space to provide radiation treatment, medical and surgical
oncology services (which will include a linear accelerator); an ambulatory surgery center with four operating
rooms as well as pre- and post -operative areas and sterile processing; an infusion center with a satellite
laboratory for point -of -care testing and blood draws; and space for specialty clinics.
• In addition to the linear accelerator that will be installed in the Medical Arts Building, shell space that could
accommodate a second linear accelerator also will be constructed.
Parking Structure
A multi -story parking structure and a surface parking lot are expected to be constructed adjacent to the Medical Arts
Building. The parking structure is designed to include 411 spaces, and the surface parking is expected to include
350 additional parking spaces.
Emergency Department and Intensive Care Unit Addition
A new building is expected to be constructed adjacent to the existing Queen of the Valley Hospital facility. The
building currently is designed as a two-story, 60,000 square foot building. The building is expected to include: a
60-bed emergency department; CAT scan and MRI suites; and a 24-bed intensive care unit and related support
space.
LEGAL REVIEW:
The City Attorney's Office has reviewed and approved the resolution as to form.
Prepared by: Paulina Morales, Economic Development and Housing Manager
Fiscal Impact
FISCAL IMPACT:
There is no fiscal impact to the City. The Bonds will be issued as limited obligations of CSCDA, payable solely
from revenues and receipts derived from a loan to be made by CSCDA to the Borrower with the Bond proceeds.
The City bears no liability with respect to the issuance of the Bonds. Further, the City is not a party to any of the
financing documents related to the Bond issuance and is not named in any of the disclosure documents describing
the Bonds or the proposed financing. The City is not committed in any manner if the bonds are issued.
Attachments
Attachment No. 1 - Resolution No. 2020-26
Attachment No. 2 - Notice of Public Hearing
CITY COUNCIL GOALS & OBJECTIVES: Enhance the City Image and Effectiveness
Protect Public Safety
ATTACHMENT NO. 1
RESOLUTION NO.2020-26
A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF WEST COVINA, CALIFORNIA, APPROVING THE
ISSUANCE OF THE CALIFORNIA STATEWIDE
COMMUNITIES DEVELOPMENT AUTHORITY
REVENUE BONDS (EMANATE HEALTH), SERIES 2020 IN
AN AGGREGATE PRINCIPAL AMOUNT NOT TO
EXCEED $260,000,000 FOR THE PURPOSE OF
FINANCING AND/OR REFINANCING THE
ACQUISITION, CONSTRUCTION, EQUIPPING,
IMPROVEMENT, RENOVATION, REHABILITATION
AND/OR REMODELING OF HOSPITAL, HEALTH CARE
AND RELATED FACILITIES AND CERTAIN OTHER
MATTERS RELATING THERETO
WHEREAS, Emanate Health, a California nonprofit public benefit corporation
(the "Corporation'), has requested that the California Statewide Corrnrnnities Development
Authority (the "Authority) participate in the issuance of one or more series of revenue bonds in
an aggregate principal amount not to exceed $260,000,000 (the `Bonds') for the acquisition,
construction, equipping, improvement, renovation, rehabilitation and/or remodeling of hospital,
health care and related facilities (the "Facilities') to be owned and operated by the Corporation
or one of its affiliates (the "Project') and located within the City of West Covina (the "City);
and
WHEREAS, pursuant to Section 147(t) of the Internal Revenue Code (the "Code'), the
issuance of the Bonds by the Authority must be approved by the City because the Facilities are
located or to be located within the territorial limits of the City; and
WHEREAS, the City Council of the City (the "City Council') is the elected legislative
body of the City and is one of the applicable elected representatives required to approve the
issuance of the Bonds under Section 147(4) of the Code; and
WHEREAS, the Authority has requested that the City Council approve the issuance of
the Bonds by the Authority for the purposes of financing and/or refinancing the Project in order
to satisfy the public approval requirement of Section 147(f) of the Code and the requirements of
Section 9 of the Amended and Restated Joint Exercise of Powers Agreement, dated as of June 1,
1988 (the Agreement"), among certain local agencies, including the City;
WHEREAS, the Authority is also requesting that the City Council approve the issuance
of any refunding bonds hereafter issued by the Authority for the purpose of refinancing the
Bonds which financed the Facilities (the `Refunding Bonds'), but only in such cases where
federal tax laws would not require additional consideration or approval by the City Council; and
WHEREAS, pursuant to Section 147(1) of the Code, the City Council has, following
notice duly given, held a public hearing regarding the issuance of the Bonds, and now desires to
approve the issuance of the Bonds by the Authority.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF WEST COVINA,
CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council hereby approves the issuance of the Bonds and
Refunding Bonds by the Authority for the purposes of financing and/or refinancing the Project.
It is the purpose and intent of the City Council that this resolution constitute approval of the
issuance of the Bonds and Refunding Bonds by the Authority and of the financing and/or
refinancing of the Project, for the purposes of (a) Section 147(f) of the Code by the applicable
elected representative of the issuer of the Bonds and the governmental unit having jurisdiction
over the area in which the Facilities are located or are to be located, in accordance with said
Section 147(f) and (b) Section 9 of the Agreement.
SECTION 2. The officers of the City are hereby authorized and directed, jointly and
severally, to do any and all things and to execute and deliver any and all documents which they
deem necessary or advisable in order to carry out, give effect to and comply with the terms and
intent of this resolution and the financing transaction approved hereby.
SECTION 3. The City Clerk shall certify to the adoption of this resolution and shall
enter the same in the book of original resolutions and it shall become effective immediately.
APPROVED AND ADOPTED this 19th day of May, 2020.
Tony Wu
Mayor
APPROVED AS FORM ATTEST
Thomas P. Duarte Lisa Sherrick
City Attorney Assistant City Clerk
I, LISA SHERRICK, ASSISTANT CITY CLERK of the City of West Covina,
California, do hereby certify that the foregoing Resolution No. 2020-26 was duly adopted by the
City Council of the City of West Covina, California, at a regular meeting thereof hell on the
19th day of May, 2020, by the following vote of the City Council:
AYES:
NOES:
ABSENT:
ABSTAIN:
Lisa Sherrick
Assistant City Clerk
San Gabriel Valley Tribune
(Space below for use of County Clerk Only)
Affiliated with SGV Newspaper Group
605 E. Huntington Dr., Suite 100
Monrovia, CA 91016
626-962-8811 ext. 40891
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ORRICK
400 CAPITOL MALL SUITE 3000
SACRAMENTO, CA 95814-4497
PROOF OF PUBLICATION
(2015.5 C.C.P.)
STATE OF CALIFORNIA
County of Los Angeles
I am a citizen of the United States, and a resident of the
county aforesaid. I am over the age of eighteen years and
not a party to or interested in the above -entitled matter. I
am the principal clerk of the printer of SAN GABRIEL
VALLEY TRIBUNE, a newspaper of general circulation for
the City of West Covina, by the Superior Court of the
County of Los Angeles, State of California, on the date of
September 10, 1957, Case Number 684891. The notice, of
which the annexed is a true printed copy, has been
published in each regular and entire issue of said
newspaper and not in any supplement thereof on the
following dates, to wit:
05/11/2020
I declare under the penalty of perjury that the foregoing is
true and correct.
Executed at Monrovia, LA Co. California
On this 11th day of May, 2020.
Signature
Legal No. 0011383557
TEFRANOTICE
NOTICE OF PUBLIC HEARING
or c
int
Ian
Avenue and B20 North Phillips Avenue, each in west Covina, California.
The facilities are to be owned and operated by Emanate Health o r one of
its affilimes, each a nonprofit public benefit corporation and an
organization desc ri bed in
SeCt iurl 541 it ] (31 of the CWL,
The remainder of the proceeds of The Bonds will be used by Emanate
Health or one of its offiiiotes to finance or refinance proiects located in
the City of Covina and the C I ty of G lendara.
The hearing wil3 commence at 7:90 p.m. or os soon Thereafter as the
matter can be heo rd.
In Eight of the COVID-W pandemic, Governor Newsom issued
Executive Orders (N.M.20 and N•29.20), which temporarily suspend
CBrtdin requiremen?5 of the Brown ACtduring the period in which slateor
local public health officials have imposed or recommended social
dista nclA measures. Pursuant to the Executive Orders, the City Council
is authorized To hold public mWings via teleconferencing and 10 make
public r eti s accessible telephonieall or otherwise electronically to
allow the public to observo and odd ress The Clty Council. Consistent with
the covernor•s Executive Orders, the City Council Chambers are closed
to the public and the May W, 2620 City Council meeting will be conducted
via Teconfnrence. The public may view the meeting IVve through the
West Covi no Ciiv You Tube Channel at Www,westaavina,argliiye.
Due to the Clty Council Chambers being closed to the public and
consistent with Revenue Procedure 2020-21 issued by the Internal
Revenue Service on May 4, 2020, the hearing on the issuance of the Bands
will be conducted via teleconference. Interested persons wishing to
express their views on the issuance of The Bonds or on the nature and
location of the facliliies proposed to be financed anc%r refinanced may
attend the public heart ng By telephone, or, prior To the lime of She
hearing, submit written comments via email.
To access the hearing lelephonieallly, members of the public may call
in fa the hearing by ut i la i no the fo I I owing ca I I -in information:
Telephone Number: (OD) 714-7514
Participant Cade: IInM
If you intend to address The Citv Council ura7�g public yomment,
Please
contact the City
Clerk by errea3l a} Clty_. er Krgwesicovina.org or
by Teltohohe di (V6d 737$d33 Iyv b:W P_Ah, W Mdy 19, MI) to advise the
City Clerk that you would like to address the City Council during public
comment. When It is Time for nubllc comments, The City Clerk will call
your name when rt Is you r Turn to speak.
Please be aware that ail rules of procedure and decorum will apply
_
when pdriiCf0dting n the hearing and 0ddeetsin9 the City Council by
teleconference. If attending the hearing by teleconference, please set
your phone to "mute" td eliminate background noise ar other
,Fllerference from teEeohonic participation.
Public comments will oiso be accepted via email to the City Clerk at
City CIL rk@wesfcovina.arg. The subiett line Should specify "Public
Hearl, on Issuance of Tax Exempt Bonds•5119Y1020." Please Include
your full name and address in your a -mail. The City ,lerk wilt read
emails received by 6:30 P.M. on May 19, 2020 out loud into the public
record.
Please visit www.weStdavina.arg for information about the procedure
for accommodation toy Ina I v laua Is W Im d i saoi I nl e&
For additional information cancers the above matter. please
contact the West Covina City Clerk, at 1d44 West Garvey Avenue South,
W251 Covina, CoWfornia, 91790 or by email al
City Clerk4westcovina.org.
C7atea' May 11,'420
Son Gabriel Valley Trfbune Ad#11383557