Resolution - 8002•
RESOLUTION NO. 8002
RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF WEST COVINA APPROVING THE
EXECUTION AND DELIVERY OF HOSPITAL REVENUE
CERTIFICATES OF PARTICIPATION (INTER -COMMUNITY
HEALTH SERVICES, INC. PROJECT) 1987 SERIES A
• IN AN AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED
$28,000,000 AND APPROVING THE USE OF THE
PROCEEDS THEREOF FOR THE PROJECT
WHEREAS, Inter -Community Health Services, Inc., a
California non-profit public benefit corporation (the "Cor-
poration"), proposes to finance and refinance the acquisi-
tion, renovation and construction of medical facilities and
certain medical equipment owned by Inter -Community Medical
Center, Inc. (the "Hospital"); the construction of a ten -bed
hospice facility/home health facility owned by the Hospice of
East San Gabriel Valley (the "Hospice); refinancing certain
capital expenditures of the Hospital for medical facilities
and equipment; and refinancing the acquisition of land for
the Hospice (the "Project");
WHEREAS, the Corporation has requested that the
City of Covina, a municipal corporation and a general law
city duly organized in and existing under and pursuant to the
laws of the State of California, assist the Corporation in
the financing of the Project through the purchase of certain
health facilities (the "Medical Center") from the Corporation
pursuant to an Installment Purchase Agreement (the "Install-
ment Purchase Agreement");
WHEREAS, pursuant to a Trust Agreement (the "Trust
Agreement") by and between the City of Covina and Security
Pacific National Bank, as trustee (the "Trustee"), the City
of Covina will authorize the Trustee to execute and deliver
Hospital Revenue Certificates of Participation (Inter -
Community Health Services, Inc. Project) 1987 Series A (the
"Certificates"), evidencing proportionate interests of the
owners thereof in the Installment Purchase Agreement;
WHEREAS, a portion of the proceeds of the Certifi-
cates will be used for the refinancing of the acquisition of
land for and the financing of the construction of a ten -bed
hospice/home health facility owned by the Hospice and located
in the City of West Covina; and
NOW, THEREFORE, BE IT RESOLVED by the City Council
of the City of West Covina, California as follows:
• Section 1. Pursuant to Section 147(f) of the In-
ternal Revenue Code of 1986, as amended, the sale, execution
and delivery of the Certificates to be issued under and se-
cured by the Trust Agreement, in an aggregate principal
amount not to exceed $28,000,000 and at an interest rate or
rates not to exceed 7-1/4% per annum, is hereby approved.
Payment of the principal, premium, if any, and the interest
with respect to the Certificates shall be made solely from
• certain revenues received by the City of Covina from the
Corporation and Inter -Community Medical Center, Inc., a non-
profit public benefit corporation (the "Hospital"), and said
Certificates shall not be deemed to constitute a debt or
liability of the City of Covina or the City of West Covina
within the meaning of any Constitutional or debt limitation.
Section 2. The acquisition, renovation and con-
struction of the Project and control and management of the
Project by either the Corporation, the Hospital or the Hos-
pice is hereby approved.
Section 3. The City Clerk shall certify to the
adoption of this resolution.
APPROVED and ADOPTED this 23rd day of February, 1987.
ATTEST: z
C'ty Clerk Helene M. Mo ey
•
Mayor Chester E. Shearer
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STATE OF CALIFORNIA
COUNTY OF LOS ANGELES
• CITY OF WEST COVINA
I, Helene M. Mooney, City Clerk of the City of West
Covina, California, do hereby certify that the foregoing
resolution was introduced, approved and adopted by the City
Council of the City of West Covina at a regular meeting of
said Council held on the 23rd day of February, 1987 by the
• following roll call vote:
AYES: COUNCILMEMBERS: Bacon, Manners, Chappell, Shearer
NOES: COUNCILMEMBERS: None
ABSENT: COUNCILMEMBERS: Tennant
APPROVED AS TO FORM:
City Attorney ColA Lennard
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City Clerk of the
City of West Covina
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