WHEREAS, the San Francisco Health Commission adopted Resolution # 16-99 supporting the proposal of the Laguna Honda Hospital Replacement Planning Committee to build a 1,200 bed skilled nursing bed facility, and at least 140 assisted living units on the existing Forest Hills site of Laguna Honda, at a project cost of $437,045,000 (including financing costs of $8,337,513); and,

WHEREAS, the San Francisco Health Commission recommended that the Board of Supervisors and the Mayor proceed with the placing of a General Obligation Bond(s) and/or other evidences of indebtedness on the November 1999 ballot; and,

WHEREAS, additional efficiencies which will reduce project costs have been determined and these efficiencies will not undermine the basic tenets of the program or alter the project schedule; and,

WHEREAS, constructing the new skilled nursing facility with more 4-bed rooms than originally envisioned (from seven 4-bed rooms to forty 4-bed rooms) will reduce construction costs by $27.1 million to an estimated $401.6 million; and,

WHEREAS, even with an increase in the number of 4-bed rooms, the majority of Laguna Honda residents would continue to be housed in private (1 person) and semi-private (2 persons) rooms; and,

WHEREAS, a reduction in project costs, coupled with a revised plan of finance, will allow the City and County to address community concerns over the capital costs of this replacement project; and,

WHEREAS, a revised plan for financing this replacement project will reduce overall financing by:

1. using a portion of the tobacco settlement money to pay for capital costs,
2. putting aside the tobacco settlement money into an escrow account to earn interest, and
3. more efficiently coordinating the project schedule with the anticipated receipt of tobacco settlement funds; now, therefore, be it

RESOLVED, that the San Francisco Health Commission supports the recommendation to provide more 4-bed rooms in the new skilled nursing facility which will reduce construction costs to an estimated $401.6 million; and, be it

FURTHER RESOLVED, that the San Francisco Health Commission supports the recommendation to revise the financing plan to reduce the amount of General Obligation Bond(s) (and/or other evidences of indebtedness) by relying more heavily on tobacco settlement money; and, be it

FURTHER RESOLVED, that the San Francisco Health Commission approves a General Obligation Bond (and/or other evidences of indebtedness) of $299 million and the revised financing plan, and recommends these to the Board of Supervisors and the Mayor.

I hereby certify that the foregoing resolution was adopted by the San Francisco Health Commission at its meeting of Tuesday, June 1, 1999.

Sandy Ouye Mori, Executive Secretary to the Health Commission