SR 05:336 - Laserfiche WebLink

and campus enhancements at facilities. ABHOW has eight continuing care facilities throughout Califomia, including t"W'o in Oakland and one each in Los Altos, Los Gatos, Fresno, Santa Barbara, Redlands, and Bakersfield. A Detailed Applicant History is included as Attachment A. ABHOW has requested Califomia Communities include up to $3 million in this financing to provide technology enhancements and upgrades at its headquarters in Pleasanton. In order to include the technology improvements in the financing, the Intemal Revenue Code requires the City to approve the issuance of debt at a TEFRA (Tax Equity and Fiscal Responsibility Act) hearing. This is a requirement because the proposed improvements are located in the City of Pleasanton. Each of the Califomia Communities member cities noted above ("W'ith ABHOW facility improvements to be financed "W'ithin their jurisdiction) "W'ill conduct similar public hearings. A complete list of the ABHOW facilities and the proposed improvements are included as Attachment B. According to bond attomeys Orrick, Herrington & Sutcliffe (Attachment C), the bonds are issued as limited obligations of Califomia Communities, not of the City, payable solely out of the revenues and receipts derived from the applicable project or the loans by Califomia Communities to the respective borro"W'er "W'ith the proceeds of the bonds. Accordingly, the bonds issued for the project "W'ould be indebtedness of Califomia Communities, and the City is not being asked to approve any of the financing documents. The disclosure prepared for the bonds "W'ould not have any information regarding the City and "W'ould not include the City's name, other than "W'ith respect to "W'here the project is located. As such, the bond payment obligation "W'ould not be a debt of the City, nor count against the debt limit of the City. DISCUSSION By the nature of its membership "W'ith California Communities, the City recognizes there is benefit to assisting non-profits "W'ith obtaining tax-exempt financing for projects that provide public benefit to Califomia communities. The primary "W'ay of support is by assisting with the financing of projects the Califomia Communities deems appropriate. The benefit of the Califomia Communities is that assistance can be provided to nonprofits "W'ithout directly involving individual member cities, counties and special districts in the financing of projects. In this case, the City's role "W'ould be to approve a resolution indicating its support for issuance of bonds by Califomia Communities for this project. This approval requires a TEFRA public hearing to allo"W' for public comment prior to the issuance of the bonds. The Council has recently conducted TEFRA hearings for the assisted living and Gardens at Iron"W'ood projects. Unlike these recent projects that involved the approval of additional financing documents, the City's only action "W'ill be the approval of the attached resolution. Further, as indicated, the City "W'ill not be mentioned in the bond documents. SR:05:336 Page 3