Resolution - 8187• RESOLUTION NO. 8187
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
WEST COVINA APPROVING AND RATIFYING A LOAN OF FIVE
• MILLION DOLLARS ($5,000,000) TO WEST COVINA
COMMUNITY INFORMATION, INCORPORATED AND AUTHORIZING
THE EXECUTION OF A LOAN AGREEMENT
• WHEREAS, West Covina Community Information,
Incorporated ("WCCII") is a California nonprofit public
benefit corporation organized for the purposes of presenting,
public meetings, discussion groups, forums, panels,
lectures, and other similar programs in the City of West
Covina ("City"); establishing and maintaining an adequate
line of communication between the City and its resident
citizens and local businesses to the end that they will be
aware of the problems and issues confronting the City and of
the various available alternative solutions to governmental
problems; and providing training and publicity for
educational, personal, recreational, vocational, and
professional development programs for citizens and employees
of the City; and
WHEREAS, WCCII has borrowed the sum of Five Million
Dollars ($5,000,000) from the City and invested the sum in
California's Local Agency Investment Fund ("LAIF"); and
WHEREAS, the City desires to maximize earnings on
City monies; and
WHEREAS, the City and WCCII propose to enter into a
written Loan Agreement ("Agreement") formalizing the loan on
the following terms and conditions:
1. City shall loan to WCCII, and WCCII shall
borrow from City, the sum of Five Million Dollars
($5,000,000). In connection with the Agreement, WCCII shall
execute a Five Million Dollar ($5,000,000) Demand Promissory
Note ("Note") payable to City. The Note shall incorporate
the terms and conditions of the Agreement.
2. WCCII shall invest the Five Million Dollar
($5,000,000) sum with LAIF. WCCII shall notify City of the
date on which the sum is so invested.
3. City may demand repayment of the Five Million
Dollar ($5,000,000) sum, or any portion thereof, at any
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time, provided that any sum so demanded complies with the
withdrawal requirements of LAIF.
4. Upon receipt of a City demand for repayment,
WCCII shall withdraw the sum so demanded from LAIF within
three days of the demand.
5. The rate at which interest shall be payable on
the Five Million Dollar ($5,000,000) sum shall be the
interest rate paid by LAIF to WCCII. Interest income shall
be calculated in accordance with LAIF's rules, regulations
and accounting. procedures. WCCII shall pay City interest
within three days after receiving interest income from LAIF.
6. WCCII shall provide City with copies of all
statements, receipts, reports, records or similar documents
which WCCII receives from LAIF.
NOW, -THEREFORE, BE IT RESOLVED by the City Council
of West Covina, as follows:
SECTION 1. The City Council approves and ratifies
a loan of Five Million Dollars ($5,000,000) to WCCII on the
terms and conditions of the Agreement outlined above and
authorizes the execution of the Agreement.
SECTION 2. The City Clerk shall certify to the
adoption of this resolution by not less than three votes of
the City Council.
APPROVED AND ADOPTED this 9thday of
May , 1988.
ATTEST:
V
City Clerk
or
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I
8187
HEREBY CERTIFY
duly
that the foregoing Resolution No.
by the City Council the City of
was
adopted
of
West Covina
at a regular
meeting thereof held on the 9th
day of
May , 1988,
by the following vote:
AYES:
Councilmembers:
Tarozzi, McFadden, Lewis, Bacon, Manners
•
NOES:
Councilmembers:
None
ABSENT:
Councilmembers:
None
•
ABSTAIN:
Councilmembers:
None
City C1e�IC
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APPROVED AS
TO FORM:
/ M44
General Counsel
•
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