COUNTY OF SAN MATEO

Inter-Departmental Correspondence

County Manager's Office

DATE:

July 1, 2003

BOARD MEETING DATE:

July 15, 2003

TO:

Honorable Board of Supervisors

FROM:

Paul T. Scannell, Assistant County Manager

SUBJECT:

CSCDA Financing for Kaiser Hospital Projects

Recommendation

Adopt a resolution approving the issuance of bonds by the California Communities Development Authority (the "Authority") for local Kaiser Hospital projects.

Background

The County of San Mateo is a participant in the California Statewide Communities Development Authority. The Authority serves the California State Association of Counties, the California League of Cities and many California Special Districts in assisting various organizations finance capital projects using tax-free debt. The County has been a participant of the Authority since 1995. On a number of occasions the County has been asked as a member of the Authority to authorize the issuance of tax-free bonds for a project within the County's jurisdiction.

Discussion

Kaiser Hospitals have asked the Authority to assist in the refinancing of $240,000,000 in debt issued at various times for a number of projects at various facilities, including two facilities in San Mateo County, the hospitals in Redwood City and South San Francisco. This particular refinancing is for outstanding debt for projects already completed or underway. The Authority's bylaws require the approval of the local jurisdiction in the issuance of debt. Since this is a current refunding and does not extend the original maturity date of the previously issued bonds, the County does not have to conduct a noticed public hearing on the matter, but must approve a resolution authorizing the issuance.

Vision Alignment

This item keeps the commitments of responsive, effective and collaborative government through goal number 22: County and local governments effectively communicate, collaborate and develop strategic approaches to issues affecting the entire County.

Fiscal Impact

There is no fiscal impact on the County. The Authority is issuing the bonds at the request of Kaiser, and the County's credit is not involved in any way.