HomeMy WebLinkAboutOrder 102 - Hospital Revenue BondsDeschutes County Board of Commissioner
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AGENDA REQUEST & STAFF REPORT
For Board Business Meeting of December 15, 2008
Please see directions for completing this document on the next page.
DATE: December 9, 2008
FROM: Douglas E. Goe, Esq. Orrick, Herrington & Sutcliffe LLP
503-943-4810
TITLE OF AGENDA ITEM:
Consideration of Order No. 2008-102 relating to the Hospital Revenue Bonds for Cascade Healthci;re
Community Inc. (the "Borrower").
PUBLIC HEARING ON THIS DATE? NO
BACKGROUND AND POLICY IMPLICATIONS:
The Hospital Facility Authority of Deschutes County (the "Authority") has received a request from
Cascade Healthcare Community, Inc., an Oregon nonprofit corporation to issue its Hospital
Refunding Bonds, Series 2008 (the "2008 Bonds") to finance or refinance the costs of the following
projects: (i) to fully refund, defease and redeem the Authority's Hospital Revenue Bonds, Series
2005A (Cascade Healthcare Community, Inc.) (the "2005A Bonds") and (ii) to use proceeds of the
2008 Bonds to pay costs, including financing and legal expenses related to the refunding of the
2005A Bonds including without limitation, paying any required termination payments in connection
with the termination of an agreement for the exchange of interest rates related to the 2005A Bonds,
funding a debt service reserve fund and paying fees and expenses related to any bond insurance or
any credit support facility, if any. The 2008 Bonds may be issued in an aggregate principal amount
not to exceed $105,000,000.
FISCAL IMPLICATIONS:
None for the County
RECOMMENDATION & ACTION REQUESTED:
Adoption of Order No. 2008-102
ATTENDANCE: Mike McGinnis, Interim Chief Financial Officer, Kevin Abel, Controller and
Joseph Smith, Senior Vice President, all of Cascade Healthcare Community, Inc.; Marty Wynne,
Deschutes County Treasurer; Ronald Bryant, Esq., Counsel to Cascade Healthcare; Christine Reyn olds,
Esq., Orrick, Herrington & Sutcliffe LLP, Bond Counsel to the Hospital Facility Authority.
DISTRIBUTION OF DOCUMENTS:
Marty Wynne, Finance Department 388-6559
REVIEWED
LEGAL COUNSEL
For Recording Stamp Only
BEFORE THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON
An Order approving an the public hearing
report of The Hospital Facility Authority of
Deschutes County, Oregon and approving the
issuance by the Authority of its Hospital
Revenue Refunding Bonds (Cascade
Healthcare Community, Inc.)
*
*
ORDER NO. 2008-102
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 Refunding Bonds (Cascade Healthcare Community, Inc.), in one or more series (he
"Refunding Bonds") to finance or refinance costs of the following projects: (i) fully refund, defease
and redeem the Authority's Hospital Revenue Bonds, Series 2005A (Cascade Health Services, Inc.)
(the "Series 2005A Bonds") and (ii) to use proceeds of the Refunding Bonds to pay costs, including
financing and legal expenses related to the refunding of the 2005A Bonds including without limitation,
paying any required termination payments in connection with the termination of an agreement for the
exchange of interest rates related to the 2005A Bonds, funding a debt service reserve fund and paying
fees and expenses related to any bond insurance, letter of credit or any other credit support facility, if
any (collectively, the "Project"), and
WHEREAS, on December 15, 2008, the Authority conducted a public hearing with respect to
the Project. A copy of the Public Hearing Report is attached hereto as Exhibit A (the "Public Hear ng
Report"), and
WHEREAS, notice of the public hearing (the "Notice") held by the Authority was published
December 1, 2008 in The Bend Bulletin. An affidavit of publication of the Notice is attached hereto as
Exhibit B. The public hearing is to provide a reasonable opportunity for members of the public to be
heard by the Authority regarding the Project, and
WHEREAS, on December 15, 2008, the Authority adopted a Second Supplemental Resolut on
authorizing the issuance of the Refunding Bonds in an aggregate principal amount not to exceed
$1.05,000,000 to finance the Project, and
WHEREAS, Section 147(0 of the Internal Revenue Code of 1986, as amended, (the "Cod :")
requires that qualified 501(c)(3) bonds be approved (1) by the applicable elected representatives of :he
governmental unit having jurisdiction over the area in which the Project is located; and (2) by :he
applicable elected representatives of the governmental unit issuing such obligations. The Board of
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
PAGE 1 OF 2 — ORDER NO. 2008-102 (12/15/08)
WHEREAS, pursuant to the requirements of Section 147(f) of the Code, the Board as the
applicable elected representatives finds that it would be in the best interest of Deschutes County to
approve of the issuance of the Refunding Bonds in the maximum aggregate principal amount not
exceeding One Hundred Five Million Dollars ($105,000,000), and being fully advised; now, therefor~,
THE BOARD OF COUNTY COMMISSIONERS OF DESCHUTES COUNTY, OREGON, HERE] tY
ORDERS as follows:
Section 1. The Board has reviewed the Affidavit of Publication and finds that such publicati on
was reasonable public notice of such hearing and the Board has reviewed the Public Hearing Rep )rt
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 Refunding Bonds will be issued, sold, executed and delivered, and as he
applicable elected representatives of the governmental unit in which the Project financed with he
Refunding Bonds is located, does approve the issuance of the Refunding Bonds, in one or more series,
in the maximum aggregate principal amount not exceeding One Hundred Five Million Dollars
($105,000,000) by The Hospital Facility Authority of Deschutes County, Oregon.
DATED this day of December, 2008.
ATTEST:
BOARD OF COUNTY COMMISSIONERS
OF DESCHUTES COUNTY, OREGON
DENNIS R. LUKE, Chair
TAMMY BANEY, Vice Chair
Recording Secretary MICHAEL M. DALY, Commissioner
PAGE 2 OF 2 — ORDER NO. 2008-102 (12/15/08)