County Manager's Office
August 28, 2001
BOARD MEETING DATE:
September 11, 2001
Honorable Board of Supervisors
Paul T. Scannell, Assistant County Manager
Public Hearing and Approval of California Statewide Communities Development Authority Revenue Bonds for the benefit of Daughters of Charity Health System
Conduct a public hearing regarding the issuance by California Statewide Communities Development Authority ("CSCDA") of bonds for the benefit of Daughters of Charity Health System ("DOCHS") and the acquisition, improvement and equipping of certain facilities known as Seton Medical Center and Seton Medical Center Coastside, located within the County of San Mateo. Following the hearing, adopt a resolution approving such bond issuance.
Daughters of Charity of the West Province, a current sponsor within the multi-sponsored health system known as Catholic Healthcare West ("CHW"), has evaluated the performance of seven of its California hospitals and the future of the mission of each of them and has decided to leave CHW and form a separate health care provider system. The new system will be known as Daughters of Charity Health System ("DOCHS") and will acquire the assets of the seven California hospitals from CHW, including Seton Medical Center, located in Daly City and Seton Medical Center Coastside, located in Moss Beach. The proceeds of the revenue bonds proposed to be issued by CSCDA will be used by DOCHS to pay for the acquisition of the hospital assets. It is anticipated that DOCHS will be in a better position to focus on its mission to the sick poor in the communities they serve.
DOCHS has applied to CSCDA for its assistance in financing the acquisition of certain medical facilities through the issuance of revenue bonds in an amount not to exceed $450 million. CSCDA is a joint exercise of powers authority consisting of numerous California counties, cities and special districts, including the County of San Mateo. CSCDA is authorized in its Joint Exercise of Powers Agreement ("Agreement") to assist California charitable organizations through the issuance of revenue bonds. Said Agreement also requires a public approval by each participating member of CSCDA in which any portion of the project being financed is located. The federal tax law also requires a public hearing to be conducted by a government unit having jurisdiction over the area in which the financed facility is located and approval by the governing body prior to the issuance of tax-exempt bonds.
Orrick, Herrington & Sutcliffe LLP, bond counsel to CSCDA, has prepared and caused to be published the required notice of public hearing. Orrick also prepared the form of resolution submitted to the County of San Mateo Board of Supervisors for its consideration.
The County is not liable for payment with respect to the bonds.
A representative from DOCHS will be present at the Board of Supervisors meeting to respond to any questions.