Agenda

Return

D. 2

To:	Board of Supervisors
From:	David Twa, County Administrator
Date:	February 26, 2013

Contra

Costa

County

Subject:

TEFRA HEARING - LA CLINICA DE LA RAZA, INC

APPROVE	OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR	RECOMMENDATION OF BOARD COMMITTEE

Action of Board On: 02/26/2013

APPROVED AS RECOMMENDED

OTHER

Clerks Notes:

VOTE OF SUPERVISORS

AYE:

John Gioia, District I Supervisor
Candace Andersen, District II Supervisor
Mary N. Piepho, District III Supervisor
Karen Mitchoff, District IV Supervisor
Federal D. Glover, District V Supervisor

Contact:

Timothy 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: February 26, 2013
David Twa,

BY:	, Deputy

RECOMMENDATION(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 $5,500,000; and

RECOMMENDATION(S): (CONT'D)

c) CLOSE public hearing.

2. ADOPT Resolution No. 2013/117, approving the issuance of bonds by the California Enterprise Development Authority to benefit La Clinica De La Raza, Inc. (Concord area).

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.

BACKGROUND:

Since its beginnings as a single storefront operation in Oakland in 1971, the Borrower has grown into a sophisticated provider of primary health care and other services, with 30 sites spread across Alameda, Contra Costa and Solano Counties. The Borrower delivers health care services in a culturally and linguistically appropriate manner to most effectively address the needs of the diverse populations it serves. In 2011, the Borrower provided care to over 74,000 patients, amounting to 361,261 patient visits. With over forty-one years of experience serving the community, the Borrower is one of the largest community health centers in the state of California.

The County of Contra Costa is an associate member of the California Enterprise Development Authority (“CEDA”), a joint powers authority established by the California Association for Local Economic Development (“CALED”) whose purpose is to issue tax-exempt and taxable conduit revenue bonds to fund commercial and industrial development projects within member jurisdictions.

CEDA will loan the proceeds of the Obligations to the Borrower to (i) refinance outstanding indebtedness incurred by the Borrower, the proceeds of which were used to finance and refinance the cost of the acquisition, construction, installation, rehabilitation, equipping and furnishing of community health care centers located at 2000 Sierra Road, Concord, California (the “Facilities”), (ii) finance the cost of renovating, improving, furnishing and equipping the Facilities, and (iii) pay certain costs of issuance in connection with the Obligations. The Facilities comprise approximately 16,000 square feet and provide expanded medical care, dental care and optometry services, as well as health education, chronic disease management, senior services, OB/GYN and pediatric care. The Facilities are and will be owned and operated by the Borrower in connection with its tax-exempt mission of improving the quality of life of the diverse communities it serves by providing culturally appropriate, high quality and accessible health care for all. Because the Facilities are located within the County’s jurisdiction and interest on the Obligations may be tax-exempt, a public hearing and the approval of the Obligations by the Board of Supervisors is required by the Internal Revenue Code of 1986.

Notice for today's hearing was published in the Contra Costa Times, a newspaper of general circulation, on February 12 ,2013. Proof of Publication is attached for reference.

CONSEQUENCE OF NEGATIVE ACTION:

The California Enterprise Development Authority will not be able to issue bonds on behalf of La Clinica De La Raza, Inc. delaying or canceling planned improvements to the future medical and dental clinic in Concord, California.

CHILDREN'S IMPACT STATEMENT:

The new clinic plans to serve approximately 4,600 youths annually.

CLERK'S ADDENDUM

CLOSED the hearing; ADOPTED Resolution No. 2013/117 approving the tax-exempt financing and the issuance of bonds in an aggregate principal amount not to exceed $5,500,000 to be issued by the California Enterprise Development Authority to benefit La Clinica De La Raza (Concord area).