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HomeMy WebLinkAboutMINUTES - 12142010 - SD.8RECOMMENDATION(S): 1. a) OPEN a public hearing, as required by Section 147(f) of the Internal Revenue Code of 1986, as amended; b) CONSIDER public testimony concerning the proposed issuance by the California Enterprise Development Authority of bonds in an aggregate principal amount not to exceed $10,750,000; and c) CLOSE public hearing. 2. ADOPT Resolution No. 2010/590, approving the issuance of bonds by the California Enterprise Development Authority to benefit the Home for Jewish Parents. FISCAL IMPACT: Pursuant to the Internal Revenue Code, the issuance of the Bonds must be approved by the County because the Facilities are located within the territorial limits of the County. There is no financial impact on the County. APPROVE OTHER RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE Action of Board On: 12/14/2010 APPROVED AS RECOMMENDED OTHER Clerks Notes: VOTE OF SUPERVISORS AYE:John Gioia, District I Supervisor Gayle B. Uilkema, District II Supervisor Mary N. Piepho, District III Supervisor Federal D. Glover, District V Supervisor Contact: Tim Ewell (925) 335-1036 I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown. ATTESTED: December 14, 2010 David J. Twa, County Administrator and Clerk of the Board of Supervisors By: June McHuen, Deputy cc: SD. 8 To:Board of Supervisors From:David Twa, County Administrator Date:December 14, 2010 Contra Costa County Subject:TEFRA HEARING - HOME FOR JEWISH PARENTS BACKGROUND: The Home for Jewish Parents, a California nonprofit public benefit corporation, has requested that the California Economic Development Authority (the "Authority") participate in the issuance of bonds, in an aggregate principal amount not to exceed $10,750,000 (the "Bonds"). A portion of such Bond proceeds is intended to (i) refinance outstanding Association of Bay Area Governments (ABAG) Finance Authority Certificates of Participation (Home for Jewish Parents), Series 1997, the proceeds of which were used to construct, install, equip and furnish assisted living, skilled nursing and specialized care facilities located at 4000 Camino Tassajara, Danville, California 94506 (the “Refinanced Facilities”), (ii) finance the costs of acquisition, construction, installation, rehabilitation, equipping and furnishing of assisted living, skilled nursing and specialized care facilities at one or more of the following locations: 348 Rheem Boulevard, Moraga, California, 3721 Mt. Diablo Boulevard, Lafayette, California, 1625 Oak Park Boulevard, Pleasant Hill, California 94523, and 11 Altarinda Road, Orinda, California (the “New Facilities” and, together with the Refinanced Facilities, the “Facilities”), and (iii) pay certain costs of issuance in connection with the financing. The resolution states that the bond issuance could be composed of tax exempt and/or taxable bonds, depending on which option is in the best financial interest of the Home for Jewish Parents. In order for tax-exempt bonds to be issued, an "applicable elected representative" of the government unit must approve the issuance of the bonds after a public hearing ("TEFRA hearing") following reasonable public notice. Because the Authority's Board of Directors is not an elected body, the Internal Revenue Code provides that a government unit with elected representatives and jurisdiction over the area in which the project to be financed is located, in this case, the Board of Supervisors of Contra Costa County, is an "applicable elected representative" with respect to the bond issue. The Internal Revenue Code requires that the Board of Supervisors hold a TEFRA public hearing regarding the issuance of the bonds and adopt a resolution approving the issuance of the bonds by the Authority. Staff recommends that the Board of Supervisors hold the public hearing, consider public input, and adopt the resolution regarding the issuance of the bonds. This approval is with the expressed understanding that the County shall have no obligation whatsoever to pay any principal, interest, fees or any other costs associated with the Authority's issuance of these bonds. CONSEQUENCE OF NEGATIVE ACTION: The California Enterprise Development Authority will not be able to issue bonds on behalf of the Home for Jewish Parents delaying or canceling planned improvements to facilities in multiple locations within the county (identified in the Background section). CHILDREN'S IMPACT STATEMENT: No impact. CLERK'S ADDENDUM CLOSED public hearing; ADOPTED Resolution No. 2010/590 approving the issuance of bonds by the California Enterprise Development Authority to benefit the Home for Jewish Parents. ATTACHMENTS Resolution No. 2010/590 Clerk's Certificate - Home for Jewish Parents