HomeMy WebLinkAboutSS03 - Hoag Hospital Revenue BondsNovember 8, 1999
Study Session Item No. 3
CITY OF NEWPORT BEACH
ADMINISTRATIVE SERVICES DEPARTMENT
Resource Management Division
November 8, 1999
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY
COUNCIL
FROM: Dennis C. Danner, Administrative Services Director Z 4
SUBJECT: STUDY SESSION - HOAG HOSPITAL VARIABLE RATE
DEMAND REVENUE BONDS
DISCUSSION:
On this evening's City Council Agenda is an item for the City to issue not to exceed $125
million of City of Newport Beach Variable Rate Demand Revenue Bonds (Hoag
Memorial Hospital Presbyterian), Series 1999. The City issued similar bonds for Hoag
Hospital in 1984, 1992, and 1996. In each of the previous series, Hoag Hospital paid an
issuance fee to the City that was used for a General Fund Paramedic Reserve or for
infrastructure improvements. Hoag is proposing paying a similar fee for this bond
issuance.
The debt service for these bonds is not a City obligation. All principal and interest on the
bonds will be paid for by Hoag Hospital. The Hospital will use the proceeds of this issue
to: (1) finance the acquisition and construction of certain additions and improvements to,
and equipment for, health facilities located at the campus of Hoag Memorial Hospital
Presbyterian, and (2) provide for the payment of bond issuance expenses..
Present today to answer any questions you may have about this issue are: Peter M.
Foulke and Jennifer Mitzner, Executive Vice President, and Vice President, Finance
respectively of Hoag Hospital; Kurt Yeager, Esq. of Stradling Yocca Carlson & Rauth,
Borrower's Counsel; and Charles G. Plimpton, Director of Merrill Lynch & Company,
the Underwriter for the issue.
RECOMMENDATION:
At this evening's meeting you will be asked to approve the Resolution authorizing the
issue, as well as the Loan Agreement, Indenture, Preliminary Official Statement
(including Appendix A) and the Bond Purchase Contract, and authorize City staff to take
the necessary steps to close the bond sale.