HomeMy WebLinkAboutAgenda Statement 1977/07/26 Item 051. l
CITY OF CHULA VISTA ,
COUNCIL AGENDA STATEMENT Item No. S .
For meeting of 7/26/77
ITEM TITLE Resolution P :r- Approving the Refinancing of Bay General Community
Hospital
It
SUBMITTED BY City Attorney
ITEM EXPLANATION
(4 /5TH'S VOTE REQUIRED YES NO x )
Representatives of Bay General Hospital have prepared a resolution whereby the City of
Chula Vista will now approve a refinancing of Bay General Hospital. At the time the
l City Council previously approved the financial arrangement, the type of bond that was
originally issued by Bay General Hospital on May 6, 1975, the interest rate on the
bonds was 7 -3/4%.
Since that time interest rates have substantially reduced making it possible to sell
new bonds, the proceeds of which would be used to retire existing high interest rate
bonds. After several months of negotiation with the Internal Revenue Service, Bay
General Hospital has received authorization for such a program dependent upon the
approval of the City of Chula Vista. The net effect of the program would be a savings
to Bay General Hospital of approximately $2 million over the next thirty years and
would also provide immediate capital resources in the sum of $700,000, which will be
used for hospital expansion and construction of additional parking areas.
It is the opinion of the City Attorney that authorization of the refinancing will in
no way change the current relationship of the City and Bay General Hospital nor increase
the City's responsibility or liability of the operation of Bay General Hospital. Fur-
ther, although it will probably not be reflected on a per patient basis, this savings
of $2 million over the next thirty years will contribute somewhat to the reduction of
costs of operating the hospital.
1*4 Therefore, it is recommended that the attached resolution be approved by the City
Council.
■ y.
r %/I I T Tl TTn
LAM 1131 1')
Agreement Resolution x Ordinance Plat Notification List
Other ENVIRONMENTAL DOCUMENT: Attached Submitted on
■ ►
FINANCIAL IMPACT N/A
STAFF RECOMMENDATION Approval of Resolution
■ +