RESOLUTION NO. _____________

BOARD OF SUPERVISORS, COUNTY OF SAN MATEO, STATE OF CALIFORNIA

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RESOLUTION No. ____

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RESOLVED, by the Board of Supervisors of the County of San Mateo, State of California, that

WHEREAS, on June 24, 2003, the Board approved a lease agreement with California Trousdale LLC and 1100 Trousdale LLC to lease the building at 1100 Trousdale Drive for the operation of a skilled nursing facility known as Burlingame Healthcare Center ("Facility");

WHEREAS, although the County agreed to enter into the above-referenced lease for the Facility, there are certain specific conditions precedent which must be accomplished prior to the County actually taking control over the operations of the Facility;

WHEREAS, the State Department of Health Services (DHS), which has already agreed to several extensions, has agreed to continue funding the bankrupt operation only until August 1, 2003, at which time it will either close the Facility or authorize the County to operate the Facility;

WHEREAS, it is in the interest of the citizens of the County of San Mateo that the County operate and maintain the skilled nursing Facility at 1100 Trousdale Drive in order to avoid closure of the Facility by the DHS, and a loss of resource within the County that provides a significant portion of the long-term skilled nursing beds available in the County;

WHEREAS, the County is finalizing an agreement with E. Don Doyle to employ the current employees and operate the Facility for a 90 day period from August 1 through October 31, 2003, to give the County an appropriate time period to complete the recruitment process and fully integrate the County systems into the Facility;

WHEREAS, the County Manager needs the Board's approval to enter into the necessary and appropriate contracts in an amount not to exceed $4,750,000, and to purchase certain fixed assets, not to exceed $250,000, for a not to exceed amount of $5 million dollars in total, during this 90 day interim period;

NOW THEREFORE, IT IS HEREBY DETERMINED AND ORDERED that

the County Manager is hereby authorized to execute for and on behalf of the County, any and all written contracts necessary and appropriate for the operation of the Burlingame Healthcare Center and to purchase fixed assets during the 90-day transition period from August 1, 2003 through October 31, 2003, not to exceed $5 million dollars in total.

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