SR 06:128 - Laserfiche WebLink

Honorable Mayor and Members of the City Council: BACKGROUND California Communities' mission is to provide local governments and private entities access to low-cost, tax-exempt financing for projects that provide a tangible public benefit, contribute to social and economic growth and improve the overall quality of life in local communities throughout California. Currently 462 California local public agencies are members, including 58 counties, 323 cities, 63 special districts and 17 redevelopment/water agencies. Any California city, county or special district is eligible to become a member of California Communities by governing board adoption of a resolution and joint powers agreement. The City has been a member since the mid 1990' s. California Communities has issued more than $25 billion in tax-exempt bonds since its inception. California Communities issues Qualified 501(c)(3) Bonds to finance the acquisition, construction, installation, expansion or rehabilitation of land, buildings, and equipment to be owned by a nonprofit organization as described under Section 501(c)(3) of the Internal Revenue Code of 1986 (including religious, charitable, scientific, testing for public safety, literary or educational purposes). The interest on the Bonds is exempt from federal income taxes; therefore, a nonprofit organization can finance capital projects at a lower interest rate than conventional financing. The Bonds are limited obligations of California Communities, serving as conduit issuer, payable solely from revenues or other funds provided by the nonprofit organization. Since its inception, California Communities has issued more than $10 billion in Qualified 501(c)(3) bonds for more than 250 nonprofit organizations throughout California including: . Hospital and mental health facilities Private colleges, universities, and K-12 schools . . Student dormitories . Multifamily housing facilities Assisted living facilities . . Substance abuse centers Kaiser Foundation Hospitals is a 501(c)(3) nonprofit corporation with various facilities throughout California and the country (Attachment A provides a company description). Pleasanton offices include Kaiser Permanente Medical Offices at 7601 Stoneridge Drive and the Kaiser Pleasanton Information Technology Campus at 4460-4480 Hacienda Drive. Kaiser Foundation Hospitals has submitted an application to California Communities for $800 million in tax-exempt debt financing to construct or improve hospitals and medical offices in Modesto, Santa Rosa and Vacaville and provide for the acquisition of the Pleasanton Information Technology Campus. SR:06:128