Watsonville Municipal Code Art. 1 General Provisions and Definitions

This chapter may be cited as the “City of Watsonville Health Facility Financing Law”.

(§ 1, Ord. 510-80 C-M, eff. September 25, 1980)

The Council hereby finds and declares that is necessary, essential, a public purpose, and a municipal affair for the City to be authorized to provide financing to health institutions serving the City, which institutions provide essential services to residents of the City, in order to aid such health institutions in containing costs and thereby to enable such health institutions to establish lower rates and charges than would otherwise prevail and to provide better services at such rates and charges. Unless the City intervenes to provide such financing, such rates and charges may increase at an ever accelerated pace because such health institutions cannot obtain financing at an equivalent cost from private sources.

(§ 1, Ord. 510-80 C-M, eff. September 25, 1980)

For the purposes of this chapter, unless otherwise apparent from the context, certain words and phrases used in this chapter are defined as follows:

(a) “Bond” shall mean any bond, note, certificate, debenture, or other obligation issued by the City pursuant to this chapter and payable exclusively from revenues as in this chapter defined and from any other funds specified in this chapter upon which such obligations may be made a charge and from which they are payable.

(b) “Cost” shall mean the total of all costs incurred by or on behalf of a participating health institution as is approved by the City as reasonable and necessary for carrying out all works and undertakings necessary or incident to the acquisition, construction, rehabilitation, or improvement of a health facility or the refunding or refinancing of obligations incurred to finance such acquisition, construction, rehabilitation, or improvement. “Costs” shall include all such costs which, under generally accepted accounting principles, are not properly chargeable as an expense of operation and maintenance, including, without limitation, the cost of all lands, structures, real or personal property, franchises, rights, and interests acquired or used in connection with a health facility, the cost of demolishing or removing any structures (including the cost of acquiring any lands to which such structures may be moved), the cost of engineering, architectural, financial, and legal services, plans, specifications, studies, surveys, estimates, administration expenses, or other expenses necessary or incident to determining the feasibility of or for acquiring, constructing, rehabilitating, improving, or financing a health facility, including all costs of the issuance of bonds for such purposes, reserves for debt service and for repairs, replacements, additions, and improvements, and capitalized bond interest for such period as the City may determine.

(c) “Health facility” shall mean any facility, place, or building serving the City, licensed by the State, and maintained and operated for the diagnosis, care, prevention, and treatment of human illness, physical or mental, including convalescence, rehabilitation, and care during and after pregnancy or for any one or more of such services, and which provides and will continue providing to residents of the City essential health care services designated as such in any agreement between the City and the participating health institution providing or operating such facility, place, or building.

“Health facility” shall include a portion of one of the types of facilities set forth in this subsection and shall include the following facilities if operated in conjunction with one of said types of facilities: a laboratory, a laundry, a nurses’ or interns’ residence, a housing facility for patients, staff, or employees and the families of any of them, an administration building, a research, maintenance, storage, utility, or parking facility, and all structures, facilities, equipment, and furnishings related to any of the foregoing or required or useful for the operation of a health facility.

“Health facility” shall not include any facility, place, or building used or to be used primarily for sectarian instruction or study or as a place for devotional activities or religious worship.

(d) “Participating health institution” shall mean a private nonprofit corporation or association licensed by the laws of the State to provide or operate a health facility as defined in this chapter and which, pursuant to the provisions of this chapter, undertakes the financing of the acquisition, construction, rehabilitation, or improvement of a health facility or undertakes the refunding or refinancing of obligation incurred to finance such acquisition, construction, rehabilitation, or improvement.

(e) “Revenue” shall mean amounts received by the City as repayment of the principal, interest, and all other charges with respect to a loan under this chapter, any proceeds received by the City from mortgage, hazard, or other insurance on or with respect to such a loan (or any property securing such loan), all other rents, charges, fees, income, and receipts derived by the City from the financing of a health facility under this chapter (whether by loan, lease, installment sale, or any other method authorized by this chapter), any amount received by the City as investment earnings on moneys deposited in any fund or account securing bonds, and such other moneys as the Council, in its discretion, may lawfully designate as revenue.

(§ 1, Ord. 510-80 C-M, eff. September 25, 1980)