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Item 6h <br />Resolution authorizinll the City to loin the California Statewide Communities Development <br />Authority {CSCDA) and approving an inStallment 0urchase financing to be undertaken bv <br />CSCDA to benefit Kaiser Foundations hospitals and medical facilities. (SR95:297) <br /> <br /> Dave Iremonger presented the staff report. <br /> <br /> Mr. Pico asked if the CSCDA would be able to provide financing for the ValleyCare <br />Hospital facilities. Has this been explored? <br /> <br /> Mr. Iremonger stated that as a non-profit organization, Valley Care may be able to use <br />this option. It's basically a way to get tax exempt financing and to be combined into other tax <br />exempt financing, so the cost of issuance could be reduced. <br /> <br /> Mayor Tarver asked why Council had to approve financing for a non-profit, and why the <br />City has to become a member. <br /> <br /> Mr. Burke stated that the Joint Powers Authority has adopted by-laws that require the <br />City to become a member if facilities within that jurisdiction want to be eligible for this <br />financing. Mr. Burke stated that federal tax law requires that a local jurisdiction hold a public <br />hearing before any private entity receive tax exempt financing. The California State Joint <br />Powers law requires the City to be a member in order for bonds to be issued for any facility <br />within that City. In order for CSCDA to do this financing, the City has to vote and be a <br />member. It has to hold a public hearing, called a TEFRA hearing, in which it solicits input <br />from members of the public regarding the matter. <br /> <br /> Ms. Mohr asked if this only affects cities in whose jurisdiction the facility exists, or is <br />it within the service area. <br /> <br /> Mr. Burke commented that it is in the city where the facility exists. CSCDA does not <br />ask cities to join unless there is a specific project. This program is backed by the Board of <br />Directors of the League of California Cities. <br /> <br /> Ms. Michelotti asked if this is not only a benefit to Kaiser, but to other non-profit <br />medical facilities as well. <br /> <br /> Mr. Burke stated there is a benefit to the City using CSCDA in lieu of doing the bonds <br />itself. This way the City's name is not on the bonds if there is a default and there are no on- <br />going disclosure requirements or administration if any issue occurs in the future. CSCDA has <br />three firm requirements: it will not issue bonds unless the bonds are at least rated A, unless there <br />is a clear public benefit, and unless there is local approval. <br /> <br /> Mayor Tarver asked if this was a TEFRA hearing. <br /> <br />09/19/95 -15- <br /> <br /> <br />