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In order to include the Pleasanton ValleyCare facilities in the financing, the Internal 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. The City of Livermore City Council has scheduled a similar public hearing in April. According to bond attorneys Sidley Austin LLP, the bonds are issued as limited obligations of CSCDA, not of the City, payable solely out of the revenues and receipts derived from the applicable project or the loans by CSCDA to the respective borrower with the proceeds of the bonds. Accordingly, the bonds issued for the project would be indebtedness of CSCDA, and the City is not being asked to approve any of the financing documents. The disclosure prepared for the bonds would not have any information regarding the City and would not include the City's name, other than with respect to where the project is located. As such, the bond payment obligation would not be a debt of the City, nor count against the debt limit of the City. By the nature of its membership with CSCDA, the City recognizes there is benefit to assisting non-profits with obtaining tax-exempt financing for projects that provide public benefit to California communities. The primary way of support is by assisting with the financing of projects the CSCDA deems appropriate. The benefit of the CSCDA is that assistance can be provided to nonprofits without directly involving individual member cities, counties and special districts in the financing of projects. In this case, the City's role would be to approve a resolution indicating its support for issuance of bonds by CSCDA for this project. This approval requires a TEFRA (Tax Equity and Fiscal Responsibility Act) public hearing to allow for public comment prior to the issuance of the bonds. In December 2005, the City Council conducted a TEFRA hearing and approved a CSCDA tax-exempt financing to facilitate information technology improvements for American Baptist Homes of the West (ABHOW), headquartered in Pleasanton. Likewise, in May of 2006 Kaiser Permanente financed similar improvements through CSCDA after obtaining City of Pleasanton approval. As with the ABHOW financing and the Kaiser Foundation financing, the City's only action for the ValleyCare financing will be to conduct the public hearing and approve the attached resolution. Staff views approval of the attached resolution as an action to assist CSCDA and based on its review, the financing is consistent with the mission of CSCDA. Staff has not researched the specific benefits or project budget for the proposed project. As such, staff is not specifically recommending these projects or endorsing the efforts of the project sponsor. Rather, as indicated, approval of the resolution is viewed as supporting the actions of CSCDA. Page 3 of 4