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HomeMy WebLinkAboutItem 08 - Baylor Medical CenterITEM 0 _...9.�...., MEMO TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL FROM: ROGER NELSON, CITY MANAGER Al MEETING DATE: SEPTEMBER 18, 2001 SUBJECT: RESOLUTION CONCERNING THE USE OF THE PROCEEDS OF BONDS ISSUED BY THE NORTH CENTRAL TEXAS HEALTH FACILITIES DEVELOPMENT CORPORATION FOR THE BENEFIT OF BAYLOR MEDICAL CENTER AT GRAPEVINE RECOMMENDATION: City Council to consider a resolution concerning the use of the proceeds of bonds issued by the North Central Texas Health Facilities Development Corporation (NCTHFDC) for the benefit of Baylor Medical Center. FUNDING SOURCE: There are no funding implications for the City. BACKGROUND: This item is a request from Mr. Mark Hood, Administrator of Baylor Medical Center at Grapevine. The medical center is planning a major expansion and the financing vehicle is to be a loan from the NCTHFDC which will issue revenue bonds. The NCTHFDC is a Dallas County entity. Since the project is located in Tarrant County, State Law requires notification and approval from qualified governmental agencies in Tarrant County. The City of Grapevine is an entity whose approval is required. The City approved a similar funding process for Baylor Hospital in 1992. Attached is a letter from Mr. Hood along with a letter from Fulbright and Jaworski, Bond Counsel for the project, explaining the project and requesting approval by the City Council. Mr. Hood will be present at the City Council meeting to answer any questions. This expansion of Baylor Hospital is a welcome project for the community. Staff recommends approval. WAG/cjc Kagmbaylor September 11, 2001 (4:04PM) As AIFA BAYLOR MEDICAL CENTER AT GRAPEVINE A Subsidiary Community Hospital of the Baylor Health Gare System Mark Hood President FAX (817) 481-2962 September 7, 2001 Mr. Roger Nelson Grapevine City Manager Post Office Box 95104 Grapevine, Texas 76099 Dear Roger: I am writing in regard to Baylor Grapevine's patient tower expansion project. Our bond counsel has recently requested the City Council pass a resolution concerning the use of the bond proceeds issued by the North Central Texas Health Facilities Development Corporation for the benefit of Baylor Medical Center at Grapevine. I have attached the resolution for your review. The patient tower expansion project, which is the largest expansion in the medical center's history,, will enhance Cardiology services with the beginning of an open-heart surgery program as well as women's services, which include expanding the special care nursery. In an effort to meet the demand for inpatient admissions, medical/surgical beds will also increase. According to research conducted by Baylor Health Care System, the Grapevine community is severely under bedded in terms of inpatient hospital beds. The national average for hospital beds per 1000 population is 3.3. The average for Dallas County is 2.8; Tarrant County is 2.5; however, the average in our community is 1.1. The new patient tower project will allow Baylor Grapevine to meet this growing need to serve our community. Highlights of the new patient tower expansion include: First Floor—expansion of surgical services includes two open-heart surgical suites. The expansion will also allow for increased capabilities for neurological procedures. The endoscopy lab will also expand increasing gastroenterology services. In addition, the emergency room will increase treatment rooms, add eight observation beds, and enhance the urgent care center. The pharmacy will also expand to the first floor. Second Floor—the new patient tower allows the second floor women's center to expand by adding additional postpartum beds and gynecology beds. The special care nursery, which offers care to infants born at 28 -week gestation and up and full-term babies with breathing difficulties, will add 13 beds for a total of 21. Because of the needs of premature babies, a neonatal nurse practitioner specializing in the care of the tiniest patients is available 24 -hours a day. The hospital's clinical lab will also expand on the second floor. Third Floor—brings a new intensive care unit (ICU) that allows the expansion of cardiovascular services—including the existing cardiac rehabilitation program. Presently, there are eight ICU beds that will expand to 18 with cardiac intensive care capabilities. The third floor will house a heart -specific catheterization lab dedicated to procedures such as catheterizations, angioplasty, and stent placements. 1650 West College Street, Grapevine, Texas 76051 Metro (817) 329-2500 Mr. Roger Nelson Page 2 September 7, 2001 During the next four years, the prevalence of heart disease will increase 28 percent in the Baylor Grapevine service region. And, the number of persons in the same area age 45 and over is expected to increase 27 percent. There is a definite cardiac care need for all the communities the hospital serves. Fourth Floor—will add a 26 -bed medical/surgical unit. In addition, cardiopulmonary services will expand from the first floor to the fourth floor. Fifth and Sixth Floors—will be designed for future medical/surgical bed growth. Funding for the project will be derived from a combination of a $6 million community fundraising campaign, hospital revenues reinvested in the community, and money obtained through the bond financing by the North Central Texas Health Facilities Development Corporation. Baylor Grapevine has worked closely with City of Grapevine officials in the planning for this project and appreciates the strong support provided by City staff members. The Council's support of this resolution will allow our funding plans to go forward and be greatly appreciated. Please feel free to contact me if I can provide any additional information. Sincerely, WW'.0Mark Hood, FACHE President pw via hand -carried: Bill Gaither Director of Administrative Services City of Grapevine 512 536 4598 SEP -07-01 09:31 FROM:FULBRIGHT & JAWORSKI 512*536*4598 TO:16174103005. PAGE:02 FULBRIGHT & JAWORSKI L.L.P. TELEPHONE: Sla/474-SaOl A REGISTERED LIMITED LIAVII-ITY PARTNIER51-11P HOUSTON FACSIMILE: 512/836-459a 600 CONGRESS AvEr4uir, SUITE 2400 WASHINGTON, D.C. AUSTIN, TEXAS 78701 AUSTIN SAN ANTONIO �JQHN C. $QCHM. JR. DALLAS PARYNCA NEW YORK INTERNET ADDRESS: LOS ANGELES J130EH M(1>>F U LORI GHT.COM MINNEAPOLIS LONDON DIRECT DIAL: 512/536-450P HONG KONG September 7, 2001 Re: Saylor Medical Center at Grapevine Mr. Bill Gaither Director of Administrative Services City of Grapevine, Texas Dear Bill: Thank you for taking the time to visit with us this morning. Enclosed for your reference is a copy of the resolution adopted in connection with the 1992 financing. We have previously furnished you a draft of the resolution for this financing. State law allows counties, cities and hospital districts to establish health facilities development corporations to issue bonds for the benefit of, among others, charitable hospitals. Baylor Health Care System and its affiliate, Saylor Medical Center at Grapevine, are eligible for this type of financing. As in 1992, when we last appeared before the City of Grapevine, Baylor Health Care System is undertaking a financing through the issuer created by Dallas County. One purpose of the financing is to provide money for new projects at Baylor Medical Center at Grapevine. That Dallas issuer (North Central Texas Health Facilities Development Corporation) will loan the bond money to Baylor Health Care System, which will then distribute the money among various projects. State law requires that the Dallas issuer must obtain the consent of the City of Grapevine, the Tarrant County Commissioners Court and the Tarrant County Hospital District to the use of that bond money for a project in Grapevine. The statute that imposes the requirement is Health Facilities Development Act, Chapter 221.030, Texas Health and Safety Code. There is no liability to the City for approving this bond issue. The bonds will be approved by the Attorney General of the State, further assurance that all legal procedures will be correctly followed. We understand that Mr. Mark Hood, Chief Executive Officer at Baylor Medical Center at Grapevine, is available to attend the meeting of the City Council on September 18t" to answer any questions that might arise. 45081481.1 512 536 4598 SEP -07-01 09:31 FROM:FULeRIGHT & JAWORSKI 512*536*4599 TO:1e174103005 PAGE:03 Page 2 When the Resolution has been adopted and executed by the City, please return three copies to us. We appreciate your assistance in this matter, let me know if you have any questions. truly Wurs, n OJ Boehm, Jr. Cc: Mr. Mark Hood JCB/js Enclosure 4505 1481 -1 512 536 4598 SEP -07-01 09:31 FROM:FULBRIGHT & JAWORSKI 512*536*4598 TO:18174103005. PAGE:04 RESOLUTION CONCERNING THE USE OF THE PROCEEDS OF BONDS ISSUED BY THE NORTH CENTRAL TEXAS HEALTH FACILITIES DEVELOPMENT CORPORATION TO REFINANCE DEBT OF BAYLOR MEDICAL CENTER AT GRAPEVINE WHEREAS, the North Central Texas Health Facilities Development Corporation (the "Issuer") was created by Dallas County, Texas pursuant to the provisions of the Health Facilities Development Act, Chapter 221, Texas Health and Safety Code (the .,Act"); WHEREAS, it has been proposed that the Issuer issue its limited obligation hospital revenue bonds (the "Bonds") to advance refund certain bonds relating to a health facility which is located within the territorial limits of the City of Grapevine (the "City"), Texas, namely Baylor Medical Center at Grapevine (the "Facility"); WHEREAS, the City is a "sponsoring entity" within the meaning of the Act; WHEREAS, under the Act, use of the proceeds of the Bonds to advance refund certain bonds relating to health facilities located outside the limits of Dallas County, 'T'exas and within the limits of the City requires the consent of the City Council of the City (the "Council"); 1 3( WHEREAS, it is deemed necessary and advisable that this Resolution be adopted; THEREFORE, BE IT RESOLVED BY THE COUNCIL THAT: Section 1: This Resolution is adopted for the purpose of satisfying the conditions and requirements of Section 221.030 of the Act. Section 2: The City, acting by and through its Council, hereby consents, within the meaning of Section 221.030 of the Act, to the use by the Issuer of the proceeds of the Bonds to advance refund all or a portion of the bonds previously issued by the Texas Health Facilities Development Corporation for the benefit of the Facility. Secti. This Resolution is not to be construed as an undertaking by the City, and the Bonds shall never constitute an indebtedness or pledge of the City within the meaning of any constitutional or statutory provision, and the owners of the Bonds shall never be paid in whole or in part out of any funds raised or to be raised by taxation or any other revenues of the City. Section 4. The City Mayor, the City Secretary and each member of the Council are hereby authorized, jointly and severally, to execute and deliver such endorsements, instruments, certificatee, documents, or papers as are necessary or advisable to carry out the intent and purposes of this Resolution. 13081K« .0 cr«ceWrw 512 536 4598 -SEP-07-01 09:31 FROM:FULBRIGHT & JAWORSKI 512*536*4598 70:1E3174103005 PAGE:05 Section -5. This Resolution shall take effect immediately from and after its adoption. PASSED AND APPROVED CITY COUNCIL OF CITY OF GRAPEVINE, TEXAS 7,WA'TMWWiAL IWA m 13%11C.noent; ommine In Qbd 0 RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS CONCERNING THE USE OF THE PROCEEDS OF BONDS ISSUED BY THE NORTH CENTRAL TEXAS HEALTH FACILITIES DEVELOPMENT CORPORATION FOR THE BENEFIT OF BAYLOR MEDICAL CENTER AT GRAPEVINE AND PROVIDING AN EFFECTIVE DATE WHEREAS, the North Central Texas Health Facilities Development Corporation (the "Issuer") was created by Dallas County, Texas, pursuant to the provisions of the Health Facilities Development Act, Chapter 221, Texas Health and Safety Code (the "Act"); and WHEREAS, it has been proposed that the Issuer issue its limited obligation hospital revenue bonds (the "Bonds") and loan the proceeds to Baylor Health Care System, a Texas non-profit corporation, to finance and refinance certain costs of acquisition, improvement, construction, equipping and furnishing (the "Costs") a health facility which is located within the territorial limits of the City of Grapevine, Texas (the "City"), namely Baylor Medical Center at Grapevine (the Facility"); and WHEREAS, the City is a "sponsoring entity" within the meaning of the Act; and WHEREAS, under the Act, use of the proceeds of the Bonds to pay the Costs of the Facility which is located outside the limits of Dallas County, Texas, and within the limits of the City, requires the consent of the City's governing body (the "City Council"); and WHEREAS, it is deemed necessary and advisable that this Resolution be adopted. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS: Section 1. That this Resolution is adopted for the purpose of satisfying the conditions and requirements of Section 221.030 of the Act. Section 2. That the City hereby consents, within the meaning of Section 221.030 of the Act, to the use by the Issuer of the proceeds of the Bonds to finance and refinance the Costs of the Facility. Section 3. That this Resolution is not to be construed as an undertaking by the City, and the Bonds shall never constitute an indebtedness or pledge of the City within the meaning of any constitutional or statutory provision, and the owners of the Bonds shall never be paid in whole or in part out of any funds raised or to be raised by taxation or any other revenues of the City. Section 4. That the Administrative Services Director, City Secretary and each member of the City Council are hereby authorized, jointly and severally, to execute and deliver such endorsements, instruments, certificates, documents, or papers as are necessary or advisable to carry out the intent and purposes of this Resolution. Section 5. This Resolution shall take effect immediately from and after its adoption. The undersigned duly authorized officer of the City hereby certifies that the foregoing resolutions were duly adopted at a meeting of the City's governing body held on September 18, 2001, notice of which was duly given and published as required by law, and at which a quorum was present and acting, and such Resolution has not been amended or rescinded. PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF GRAPEVINE, TEXAS on this the 18th day of September, 2001. FAT . OJJOJ-NMM ATTEST: RES. NO. 2