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REPORT <br />To the Honorable Mayor and City Council <br />From the City Manager <br /> <br />December 18, 2017 <br /> <br />SUBJECT <br />Conduct a public hearing and adopt a resolution approving the issuance of tax-exempt <br />notes by the California Public Finance Authority for the benefit of Verity Health System <br />of California, Inc. <br />RECOMMENDATION <br />1. Conduct a public hearing on the issuance of tax-exempt notes (the 2017 Notes) <br />by the California Public Finance Authority (CalPFA) for the benefit of Verity <br />Health System of California, Inc. (Verity Health) in an aggregate amount not to <br />exceed $25,000,000 to finance and refinance working capital needs of Verity <br />Health for operating costs at its headquarters located in the City of Redwood City <br />and at health care facilities in other communities in California operated by Verity <br />Health and its affiliates; and <br />2. After the hearing, adopt the Approving Resolution (Attachment 1), which <br />approves the issuance of the 2017 Notes by CalPFA <br /> <br />BACKGROUND <br />From time to time, the City of Redwood City is asked to hold a public hearing associated <br />with a private entity’s issuance of tax-exempt private activity bonds. The entity must be <br />located within Redwood City. The bond issuance does not create a financial obligation <br />for the City, other than the cost of staff time to prepare for the hearing. This cost is <br />partially reimbursed through administrative payments to the City. Additionally, the <br />proposed construction funded by the tax-exempt private activity bonds does not require <br />land use entitlements or permits from the City of Redwood City. In the past two years, <br />the City Council has held five public hearings associated with tax-exempt private activity <br />bonds issued by Verity Health and affordable housing developers in Redwood City, <br />such as Mid Pen Housing. <br />Verity Health is a California nonprofit public benefit corporation headquartered in <br />Redwood City, California and is the sole corporate member of five California nonprofit <br />public benefit corporations, each of which operates an acute care hospital and other <br />facilities (collectively, the “Hospitals,” see list below) in the state of California. Verity <br />Health and the following affiliated entities (collectively, “Verity”) operate as a nonprofit <br />7.A. - Page 1