2005-1358-Order No. 2005-138 Recorded 11/29/2005REVIE ED
-A,4
LEGAL COUNSEL
COUNTY OFFICIAL
NANCYUBLANKENSHIP, COUNTY CLERKS
COMMISSIONERS' JOURNAL 1112912005 04:48:05 PM
I2 05-1358
BEFORE THE BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
An Order approving the issuance, sale,
execution and delivery of Hospital Revenue Bonds
(Cascade Healthcare Community, Inc.), Series 2005
in an aggregate principal amount not exceeding
$128,000,000 issued by The Hospital Facility
Authority of Deschutes County, Oregon.
*
* ORDER NO. 2005-138
*
*
*
*
WHEREAS, it is appearing before the Board of County Commissioners of Deschutes County,
Oregon (the "Board") that The Hospital Facility Authority of Deschutes County, Oregon (the
"Authority") has received a request from Cascade Healthcare Community, Inc., a nonprofit corporation
duly organized and validly existing under the laws of the State of Oregon (the "Borrower") to issue its
Hospital Revenue Bonds (Cascade Healthcare Community, Inc.), Series 2005 (the "2005 Bonds") in an
aggregate principal amount not exceeding $128,000,000 to finance costs of the following project (the
"Project"):
(i) refund all or a portion of the Authority's Hospital Revenue Bonds, Series 2002 (Cascade
Health Services, Inc.) (the "Series 2002 Bonds");
(ii) construct, furnish and equip a surgical hospital on the existing campus of the St. Charles
Medical Center located in Redmond, Oregon;
(iii) construct, furnish and equip a rehabilitation institute which will include a 30-bed inpatient
rehabilitation unit, outpatient therapy and treatment areas, and physician office space at
St. Charles Medical Center in Bend, Oregon;
(iv) expand, remodel, furnish and equip the family birthing unit at St. Charles Medical Center
in Bend, Oregon;
(v) acquire and install equipment and finance other health care related renovations and capital
expenditures incurred at the Borrower's facilities located in the City of Bend, Oregon and
the City of Redmond, Oregon; and
(vi) pay certain costs of issuance of the Bonds, and
WHEREAS, Section 147(f) of the Internal Revenue Code of 1986, as amended, (the "Code")
requires that qualified 501(c)(3) bonds be approved (1) by the applicable elected representatives of the
governmental unit having jurisdiction over the area in which the Project is located; and (2) by the
applicable elected representatives of the governmental unit issuing such obligations. The Board of
PAGE 1 OF 2 - ORDER No. 2005-138 - @ (11/28/05)
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Directors of the Authority are not elected representatives. The Board of County Commissioners of
Deschutes County are the applicable elected representatives for the Authority, and
WHEREAS, on November 21, 2005, the Authority conducted a public hearing and adopted a
Bond Resolution authorizing the execution, sale and delivery of the 2005 Bonds. A copy of the Public
Hearing Report is attached hereto as Exhibit A (the "Public Hearing Report"), and
WHEREAS, notice of the public hearing held by the Authority was published November 7, 2005
in The Bend Bulletin. An affidavit of publication of the Notice is attached hereto as Exhibit B. The public
hearing is intended to provide a reasonable opportunity for members of the public to be heard by the
Authority regarding the Project, and
WHEREAS, the Board finds that it would be in the best interest of Deschutes County to approve
of the execution, sale and delivery of the 2005 Bonds pursuant to the requirements of Section 147(0 of the
Code, and the Board being fully advised; now, therefore,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY,
OREGON HEREBY ORDERS as follows:
Section 1. The Board has reviewed the Affidavit of Publication and finds that such publication
was reasonable public notice of such hearing and the Board has reviewed the Public Hearing Report and
finds that no written comments were received and no members of the public appeared at the public
hearing to express their views on the proposed Project.
Section 2. The Board, as the applicable elected representatives of the governmental unit on behalf
of which the 2005 Bonds will be issued, sold, executed and delivered, and as the applicable elected
representatives of the governmental unit in which the Project financed with the 2005 Bonds is located,
does approve of the issuance, sale, execution and delivery of the 2005 Bonds by The Hospital Facility
Authority of Deschutes County, Oregon.
DATED this 28th day of November, 2005.
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
MICHAEL M. D Vice-Chair
NNIS R. LUKE, Commissioner
ATTEST:
o~
Recording Secretary
PAGE 2 OF 2 - ORDER No. 2005-138 - @ (11/28/05)
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EXHIBIT A
REPORT TO THE BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, OREGON
EXHIBIT A
DOCSPOI :57877.3
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EXHIBIT A
REPORT TO THE BOARD OF COUNTY COMMISSIONERS OF
DESCHUTES COUNTY, OREGON
RE: Public Hearing Regarding
The Hospital Facility Authority of Deschutes County, Oregon
Hospital Revenue Bonds
(Cascade Healthcare Community, Inc.),
Series 2005
On November 21, 2005, the Board of Directors of The Hospital Facility Authority
of Deschutes County, Oregon (the "Authority') held a public hearing at St. Charles Medical
Center - Bend, Center for Health & Learning Conference Room D, 2500 N.E. Neff Road,
Bend, Oregon 97701 pursuant to the provisions of Section 147(f) of the Internal Revenue
Code of 1986. The Chairman conducted such hearing for and on behalf of the Authority.
Notice of the public hearing was published November 7 in The Bend Bulletin. The
purpose of the public hearing was to receive oral or written comments from the public
regarding the proposed issuance, sale, execution and delivery of Hospital Revenue Bonds
(Cascade Healthcare Community, Inc.), Series 2005, in an aggregate principal amount not to
exceed $128,000,000 (the "2005 Bonds').
At 7:35 a.m. the 1~- 6;y, convened the public hearing and requested any oral or
written comments. The following individuals were present: Authority Members, Tom
Schnell, John Bosch, Arthur Johnson, Mike Daly, ?Tom Safley, Senior Vice
President, Finance, Cascade Healthcare Community, Inc., Ron Bryant, Counsel to Cascade,
Marty Wynne, Deschutes County Treasurer, Matthew Swafford, Morgan Stanley & Co.
Incorporated (via telephone), and Douglas E. Goe, Esq. from Orrick, Herrington & Sutcliffe
LLP, bond counsel and special counsel to the Authority.
No comments, written or oral, were submitted to the Authority other than
comments of representatives of Cascade Healthcare Community, Inc. and Morgan Stanley &
Co. Incorporated who made presentations in support of the 2005 Bonds. At approximately
7- a.m. the public hearing was adjourned.
Respectfully submitted,
THE HOSPITAL FACILITY AUTHORITY OF
DESCHUTES COUNTY, OREGON
By:
Authorized Repr entative
DATED: November 21, 2005.
EXHIBIT A
DOCSPNW 1:57877.2
42906-8 SCG
EXHIBIT B
AFFIDAVIT OF PUBLICATION
EXHIBIT B
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11/17/2005 12:32 FAX 541 388 7723 SCMC Administration
Affidavit of Publication
STATE OF OREGON, COUNTY OF DESCHUTES
0 002
No.
1, LAURIE MORIN, a citizen of the Untied states and a
resident of the county aforesaid; l am over the age of
eighteen years, and not party to or interested in the
above-entitled matter. i am the principal clerk of the printer
of
In the Cc urt of the
STATE OF OREGON
Q The Bulletin
a daily newspaper of general circulation, published In the
aforesaid county and state as defined by ORS 193.010 and
ORS 193.020.
that ORRIM HERRINGTON & SUTCLIFFE, CASCADE
HEALTHCARE COMMUNITY, NOTICE OF PUBLIC
HEARING a printed copy of which is hereto affixed was
published In each regular and entire issue of said
newspaper and not In any supplement thereof on the
following dates, to wit:
11/07/2005
I certify (or declare) under perialty of perjury that the
foregoing Is true and correct.
Dated at Bend, Oregon, this 1 i day of NOVEMBER, 2005
for the
COUNTY OF DESCHUTES
AFFIDAVIT OF PUBLICATION
(Copy of notice to be pasted here)
Filed
Cork
By
From the Office of
Of f ICVL SEAL
NOTAKRAVSPEUBL"REGON
COMMISSION NO, 391633 Attorney for
(MLYIPOMMISSION*[.'(PIRESAPFtIL11.2W9
11/17/2005 12:32 FAX 541 388 7723 SCNC Administration Q003
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Background Information:
On November 21, 2005, The Hospital Facility Authority of Deschutes County, Oregon (the
"Authority") approved a final bond resolution authorizing the issuance of its Hospital Revenue
Bonds, Series 2005 (Cascade Healthcare Community, Inc.) (the "2005 Bonds") on behalf of
Cascade Healthcare Community, Inc. ("CHC") and conduct a public hearing regarding the
issuance of the 2005 Bonds. The 2005 Bonds are being issued to refund a portion of the
Authority's Hospital Revenue Bonds, Series 2002 (Cascade Health Services, Inc. Project) and to
finance certain capital construction and equipment at CHC's existing campuses located at St.
Charles Medical Center - Bend and St. Charles Medical Center - Redmond. For the 2005 Bonds
to qualify as tax-exempt, Section 147(f) of the Internal Revenue Code requires that 501(c)(3)
bonds be approved by the governmental unit having jurisdiction over the area in which any
portion of a project is located. Therefore, CHC is seeking approval by the Board of County
Commissioners of Deschutes County, Oregon as the applicable elected representatives of the
governmental unit having jurisdiction over the area in which the Project is located. The
transaction is currently scheduled to close on December 21, 2005.
Budget Implications:
There is no financial impact on Deschutes County. The 2005 Bonds will not constitute a debt of
Deschutes County nor be payable from a tax of any nature levied upon any property within
Deschutes County. The 2005 Bonds will be payable solely from revenues and resources
provided by CHC.
Policy Implications:
Issuance of the 2005 Bonds by the Authority will result in significant cost savings to CHC and
will benefit the residents of Deschutes County. Deschutes County has been asked to approve
these bonds because CHC will be improving facilities and equipment at two existing locations
within Deschutes County - St. Charles Medical Center - Bend and St. Charles Medical Center -
Redmond.
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