Washington Township Health Care District

Measure XX Bond Measure - 2/3 Approval Required

Background

When Washington Hospital opened in 1958, it served a community of 18,000 people; today it serves more than 365,000 residents and its community is expected to grow over the next several years. Upgrades are needed not only to ensure the Hospital is able to continue to provide care in the event of a disaster, such as a pandemic or earthquake, but also as a result of the growing population throughout the district. In 2000, the Washington Township Health Care District Board of Directors developed a long-range master plan to meet this future demand. Today, implementation of this Facility Master Plan continues.

Hospital staff has been updating the District Board of Directors over the years, but most recently (July 8, 2020) provided another Facility Master Plan update where seismic safety and deficiencies were reviewed. At the July 20, 2020 meeting, Hospital staff also presented to the Board of Directors: Planning for the Future of Your Community Hospital.

With Phases 1 and 2 of the Facility Master Plan complete, on budget and on time, Phase 3 is being further developed. This next phase includes the construction of a new seismically safe building adjacent to the Morris Hyman Critical Care Pavilion and the completion of the build-out in the Pavilion’s unfinished shell space. This would need to be completed in time for the State seismic deadline of 2030. Without execution of Phase 3 of the Facility Master Plan, the District would be required to shut down certain critical programs and services in 2030 under current law, as they would no longer be housed in seismically compliant buildings.

The District anticipates that it will take approximately ten years to design, obtain approvals, and construct the new acute care hospital building. This new patient building will include space for a new cardiac catheterization laboratory, the clinical laboratory, physical therapy, occupational therapy and patient rooms for medical surgical patients, labor and delivery, pediatrics and neonatal intensive care. This phase also includes infill of the empty shell space on the first and ground floors of the Morris Hyman Critical Care Pavilion, which would house the Hospital’s operating room suite or hybrid OR, recovery room, pharmacy, radiology (including CT, MRI and ultrasound).

Prior to recommending the bond measure to the Health Care District Board of Directors, Hospital staff explored various construction options. These options included retrofitting the existing tower, constructing a complete replacement of the current six-story tower, and constructing a new, but smaller, building to replace the existing tower. Ultimately, Hospital staff recommended the last option—constructing a new smaller-size building and infilling shell space in the Pavilion to replace operations in the existing six-story tower.

To provide funding for Phase 3, the Washington Township Health Care District Board of Directors unanimously passed Resolution 1213, calling for the placement of a general obligation bond, Measure XX, in the amount of $425,000,000 on the November 3, 2020, General Election ballot.

Measure XX asks District voters:

“To complete the construction necessary to make Washington Hospital earthquake safe and to ensure the hospital remains open and accessible to provide life-saving care during a major disaster, to provide modern operating rooms, intensive care for infants and modern patient facilities, shall community-owned Washington Township Health Care District authorize $425,000,000 in bonds at legal rates, generating approximately $21,000,000 annually at an average rate of 1 cent per $100 of assessed valuation while bonds are outstanding, with all money staying local?”

As outlined earlier, proceeds from the bond would be used to build a new seismically safe building adjacent to the Morris Hyman Critical Care Pavilion and complete the buildout of services in the Pavilion’s existing shell space. Some of the services that would be moved from the Main Hospital building into either the Pavilion or the new building include:

Operating rooms

Catheterization laboratories

Medical beds

Surgical beds

Labor and delivery/ Birthing Center

Neonatal Intensive Care Unit

Pediatrics

Imaging - MRI, CT, ultrasound, nuclear medicine, X-ray

Pharmacy

Clinical laboratory, including the blood bank

Physical therapy/occupational therapy

What the passage of Measure XX would do

Measure XX, if approved by voters on November 3, 2020, will:

MEET THE NEEDS OF THE COMMUNITY NOW AND INTO THE FUTURE: Allow your Hospital to offer local access to the most advanced diagnostic and treatment options for heart disease, stroke, cancer, and other diseases, ensuring there are quality medical facilities to meet the health care needs of our growing community now and in the future.

FULFILL STATE-MANDATED REQUIREMENTS FOR EARTHQUAKE SAFETY: Build a new seismically safe state-of-the-art building adjacent to the Morris Hyman Critical Care Pavilion; and complete the buildout of services in the Pavilion’s unfinished shell space. Many of the Hospital’s key programs and services remain in the Main Hospital building that does not meet the State seismic standards and is too small to meet the needs of the community. Some of the services that would be moved into either the Pavilion or the new building include: operating rooms, catherization labs, labor and delivery, intensive care units for high risk infants, and other important services such as imaging, pharmacy, clinical laboratory, physical therapy and occupational therapy.

ALLOW THE HOSPITAL TO BE HERE FOR THE COMMUNITY IN THE EVENT OF A PUBLIC HEALTH EMERGENCY OR NATURAL DISASTER: Locally accessible facilities would remain available to our community in the case of a pandemic or earthquake.

ENSURE LOCAL ACCESS TO HIGH QUALITY HEALTH CARE SERVICES: Ensure patients utilizing our emergency department, critical care and medical/surgical units have quick and easy access to lifesaving operating and catherization rooms and other needed services. It is important that the members of our community have access to a full range of services locally when they need it most.

SUPPORT WASHINGTON HOSPITAL BECOMING A DESIGNATED TRAUMA CENTER: There is no Trauma Center in Southern Alameda County. The Hospital is in the process of qualifying as a designated trauma center. By building a seismically safe building for needed services and expanding our surgical suites and catherization labs, the Hospital would be better prepared to meet the needs of the community as a Trauma Center, which provides the highest level of emergency health care to patients.

ENSURE PROPER CONTROLS ARE IN PLACE: Ensure that every penny of Measure XX stays in our community to benefit local residents. This Measure would cost the typical homeowner in the District about $50 per year. No funds can be taken away by the State or be used for other purposes like administrators’ salaries. An independent Bond Oversight Committee will be created in order to ensure every dollar is spent as intended by the voters.

ANALYSIS BY THE COUNTY COUNSEL FOR THE COUNTY OF ALAMEDA OF A WASHINGTON TOWNSHIP HEALTH CARE DISTRICT BOND MEASURE 

Measure XX (“Measure”), a Washington Township Health Care District (“District”) bond Measure, seeks voter approval to authorize the District to issue and sell bonds of up to four hundred twenty-five million dollars ($425,000,000) in aggregate principal amount.   

Pursuant to California Constitution section 1 of Article XIIIA and California Health & Safety Code section 32302, this Measure will become effective upon the affirmative vote of at least two-thirds of the qualified electors voting on this Measure.  

Per the ballot label, the proceeds will fund several projects, including, but not limited to: earthquake safety at Washington Hospital, operating rooms, intensive care for infants, and patient facilities.  The proceeds shall apply only to the projects outlined in the ballot label. 

If two-thirds of those who vote on the Measure vote “yes”, the District will be authorized to issue bonds in the amount above.  Approval of this Measure will authorize a levy on the assessed value of taxable property within the District by an amount needed to pay the principal and interest on these bonds in each year that the bonds are outstanding.   

The Tax Rate Statement for the Measure in this sample ballot pamphlet reflects the District’s best estimates, based upon currently available data and projections, of the property tax rates required to service the bonds.  The best estimate of the highest tax rate required to be levied to fund the bonds is 1.172 cents per $100 of the assessed valuation on all property to be taxed in fiscal year 2026-2027.  The best estimate of the average tax rate over all of the years that the bonds are outstanding is one cent per $100 of the assessed valuation on all property to be taxed with the final year of collection being 2055-2056.  The best estimate of the total debt service, including principal and interest, that would be required to be repaid if the District issues all of the bonds is seven hundred forty-two million nine hundred thousand dollars ($742,900,000).   

An independent citizens’ oversight committee will monitor the bond expenditures to ensure that the funds are spent only as authorized by this Measure.  The District’s CFO will also file an annual report with its governing board. 

If two-thirds of those voting on this Measure do not vote for approval, the Measure will fail, and the District will not be authorized to issue the bonds.  

This Measure is placed on the ballot by the District’s governing board. 

DONNA R. ZIEGLER County Counsel 

The above statement is an impartial analysis of Measure XX, which is printed in full in this sample ballot pamphlet.  If you desire an additional copy of the Measure, please call the Elections Official's office at (510) 272-6933 and a copy will be mailed at no cost to you.  You may also access the full text of the Measure on the Alameda County website at the following address: www.acvote.org.   

An election will be held in the Washington Township Health Care District (the "District") on 

November 3, 2020, to authorize the sale of up to $425,000,000 in general obligation bonds of the District

 (the "Bonds") to finance the acquisition and improvement of real property for health care related purposes.

  If such Bonds are authorized and sold, the principal thereof and interest thereon will be payable from the

 proceeds of tax levies made upon the taxable property in the District. The following information is provided

 in compliance with Sections 9400-9404 of the California Elections Code. This information is based upon

 the best estimates and projections presently available from official sources, upon experience within the 

District and other demonstrable factors.

 

I. The best estimate from official sources of the average annual tax rate that would be required

 to be levied to fund the bond issue over the entire duration of the bond debt service, based on estimated

assessed valuations available at the time of the filing of this statement, or a projection based on experience

 within the District, or other demonstrable factors, is one cent per $100 ($9.98 per $100,000) of assessed

 valuation of all property to be taxed. The final year in which the tax is anticipated to be collected is 2055-

56.

 

2. The best estimate from official sources of the highest tax rate that would be required to be

 levied to fund the bond issue, and an estimate of the year in which that rate will apply, based on estimated

assessed valuations available at the time of filing of this statement, or a projection based on experience

within the District, or other demonstrable factors, is 1.172 cents per $100 ($11.72 per $100,000) of assessed 

valuation on all property to be taxed for fiscal year 2026-27.

 

3. The best estimate from official sources of the total debt service, including the principal and

 interest, that would be required to be repaid if all the Bonds are issued and sold, is $742,900,000.

 

Attention of all voters is directed to the fact that the foregoing information is based upon projections

and estimates only, which are not binding upon the District. The actual tax rates and the years in which

they will apply may vary from those presently estimated, due to variations from these estimates in the

timing of bond sales, the amount of Bonds sold at any given sale, actual assessed valuations over the term

 of repayment of the Bonds and applicable interest rates. The actual interest rates at which the Bonds will

 be sold, which will not exceed the maximum permitted by law, will depend upon the bond market at the

 time of sale. The actual times of sales of the Bonds and the amount sold at any given time will be governed

 by the needs of the District and other factors (including market variations in interest rates on general

 obligation bonds). Actual future assessed valuations will depend upon the amount and value of taxable 

property within the District as determined in the assessment and the equalization process. Assessed

 valuation is not the same as market price of real property. Therefore, the actual tax rates and the years in

 which those tax rates will be applicable may vary from those presently estimated and stated above.

 

Voters should note that the estimated tax rates are based on the ASSESSED VALUE of taxable 

property in the District as shown on the county's official tax rolls, not on the property's market value. 

Property owners should consult their own property tax bills to determine their property's assessed valuation 

and any applicable tax exemptions.

 

Dated: July 20, 2020

BOARD OF DIRECTORS

OF THE 

WASHINGTON TOWNSHIP HEALTH CARE DISTRICT

 

RESOLUTION NO. 1213

 

RESOLUTION ORDERING AN ELECTION TO AUTHORIZE THE

ISSUANCE OF GENERAL OBLIGATION BONDS IN AN AMOUNT NOT TO EXCEED

$425,000,000, SETTING FORTH THE SPECIFICATIONS

THEREOF, REQUESTING CONSOLIDATION WITH OTHER ELECTIONS

OCCURRING ON NOVEMBER 3, 2020, AND AUTHORIZING CERTAIN ACTIONS AND

ACCOUNTABILITY MEASURES WITH RESPECT THERETO.

 

WHEREAS, the Board of Directors (the "Board") of the Washington Township Health Care

 District (the "District"), in the County of Alameda, California (the "County"), is generally authorized to

order elections within the District and to designate the specifications thereof;

 

WHEREAS, pursuant to California Health and Safety Code Sections 32000 et seq. (the "Local

Health Care District Law"), the Board is specifically authorized to order elections for the purpose of

submitting to the electors the questio nof whether general obligation bonds of the District (the "Bonds")

shall be issued and sold for the purpose of raising money for the purposes hereinafter set forth;

 

WHEREAS, the Board considers special assessments to be inadvisable for the purposes set forth 

herein;

 

WHEREAS, the Board deems it necessary and advisable to submit a bond proposition to the

electors which, if approved by two-thirds of the votes cast, would permit the District to issue and sell its 

Bonds;

 

WHEREAS, it is desirable that the election to determine whether the Bonds shall be issued and

sold be consolidated with such other election or elections as may be held on the same day in the same

territory or in territory that is in part the same;

 

WHEREAS, this measure mandates fiscal accountability, including the establishment of a 

Citizens' Oversight Committee, to insure funds are spent as promised;

 

WHEREAS, the Election Code requires at Section 9400 et seq., that a tax rate statement be 

contained in all official publications and ballot pamphlets prepared, sponsored or published by the District

 which relate to the proposition;

 

WHEREAS, this Board desires to authorize the filing of a ballot argument in favor of the

 proposition to be submitted to the voters at the election; and

 

WHEREAS, this Board desires to obtain the services of Nixon Peabody LLP to act as bond

 counsel to assist with the Election (as defined herein);

 

NOW, THEREFORE, IT IS HEREBY FOUND , DETERMINED AND ORDERED, as follows;

Section 1. The Board hereby orders an election and submits to the electors of the District

 the question of whether general obligation bonds of the District shall be issued and sold in one or more

series from time to time. Pursuant to Health and Safety Code Section 32301, a special election shall be held

within the boundaries of the Washington Township Health Care District on November 3, 2020 (the "Election"),

for the purpose of submitting to the registered voters of the District the following proposition (the "Proposition"):

 

"To complete the construction necessary to make Washington

Hospital earthquake safe and ensure the hospital remains open 

and accessible to provide life-saving care during a major

 disaster, to provide modern operating rooms, intensive care for

 infants and modern patient facilities, shall community-owned 

Washington Township Health Care District authorize

 $425,000,000 in bonds at legal rates, generating approximately 

$21,000,000 annually at an average rate of 1 cent per $100 of 

assessed valuation while bonds are outstanding, with all money 

staying local?"

 

Bonds --- Yes Bonds --- No

 

The Bonds proposed to be issued and sold shall bear interest at a rate or rates per annum not

 exceeding the statutory maximum, presently 12% per annum, payable at the time or times permitted by

law, and the term of the Bonds shall not exceed 30 years from the date of issuance of the Bonds or the

date of issuance of any series thereof. The aggregate principal amount of Bonds proposed to be issued

under the Proposition shall not exceed $425,000,000.

 

The District's Chief Executive Officer or its Chief Financial Officer (or the designee of either of

them) are each hereby authorized and directed to make any changes to the text of the Proposition or its

abbreviated form as required to comply with the intent of this Resolution, the requirements of election

officials and requirements of law.

 

Section 2. Pursuant to Section I of Article XIIIA of the Constitution of the State of

California and Health and Safety Code Section 32302, the Proposition shall become effective only if two thirds

 of the votes cast on the Proposition are in favor thereof.

 

Section 3. Pursuant to Government Code Section 53410, the Board hereby provides the

requisite accountability measures. The bond proceeds shall apply only to the single purpose identified in

 the Proposition. The District shall create an account into which the bond proceeds shall be deposited.

The Board hereby directs the District's Chief Financial Officer to file with the Board an annual report as

 required by Government Code Section 53411 no later than the first January 1st following the first issuance

 of the Bonds and at least once a year thereafter. If two-thirds or more of the voters of the District voting 

on the Proposition approve the Proposition, the Board shall establish and appoint members to an 

independent Citizens' Oversight Committee to ensure that all funds are spent only as authorized hereby.

 

Section 4. This Resolution shall stand as the order to the Registrar of Voters to call the

Election within the boundaries of the District on November 3, 2020. The Registrar of Voters is hereby

requested, pursuant to Section 32301 of the Health and Safety Code, to take all steps to call and hold the 

Election in accordance with law and these specifications. This order of election and the foregoing

specifications of the election order are made pursuant to the Local Health Care District Law. Pursuant to 

the Elections Code, the Board of Supervisors of the County is required to permit the Registrar of Voters 

of the County to render all services specified by Section 10418 of the Elections Code relating to the 

election for which services the District agrees to reimburse the County.

 

Section 5. The Board of Supervisors of the County is requested to order consolidation of the 

Election with such other elections as may be held on the same day in the same territory or in territory that

 is in part the same.

 

Section 6. The Clerk of the Board is hereby directed to deliver, no later than August 7, 2020

(which date is at least 88 days prior to the date set for the Election), one certified copy of this Resolution

 and order to the Registrar of Voters of the County and one certified copy to the Clerk of the Board of

 Supervisors of the County.

 

 

Section 7. The Chief Executive Officer of the District is hereby authorized to prepare or

cause to be prepared a tax rate statement (the "Tax Rate Statement") conforming to the requirements of

Elections Code Section 9401 and to file the Tax Rate Statement with the Registrar of Voters of the

County. The Tax Rate Statement shall be in substantially the form attached hereto as Exhibit A.

 

Section 8. The Registrar of Voters of the County is hereby requested to include the Tax

 Rate Statement in all official publications pertaining to the Proposition, pursuant to the terms of Elections

Code Section 9402.

 

Section 9. The Registrar of Voters of the County is hereby requested to transmit a copy of

the Proposition to the County Counsel with a request that the County Counsel prepare an impartial

analysis thereof.

 

Section 10. One or more members of the Board are hereby authorized, but not directed, to

prepare and file with the Registrar of Voters of the County a ballot argument in favor of the Proposition

pursuant to the requirements of Elections Code Section 9501.

 

Section 11. The Secretary of the Board is hereby directed to submit a copy of the ballot

argument, if the same is filed pursuant to Section 10 above, to the Registrar of Voters of the County on or

 before the deadline date fixed by the Registrar of Voters of the County.

 

Section 12. The Board has determined to appoint Nixon Peabody LLP to act as bond counsel

to assist with the Election and the purposes of this resolution.

 

Section 13. The Board presently intends and reasonably expects to have tax-exempt

obligations (the "Obligations") issued on its behalf no later than 18 months of (i) the date of the

expenditure of moneys, if any, made with respect to the projects outlined in the Proposition (the

"Projects") or (ii) the date upon which the Project for which expenditures are to be reimbursed is placed

in service or abandoned, whichever is later (but in no event more than 3 years after the date the original

expenditure of such moneys is paid), and to allocate an amount of the proceeds thereof not to exceed

$300,000,000 to reimbursable expenditures in connection with the Projects, as may be qualified under the

 provisions of Section 1.150-2 of the Treasury Regulations of the Internal Revenue Service (the

"Reimbursable Expenditures").  All of the Reimbursable Expenditures covered by this Section were paid

 not earlier than 60 days prior to the date of this Resolution or constitute preliminary expenditures within

 the meaning of Section 1.150-2 of the Treasury Regulations.  The Board intends to allocate within 30

 days after the date of issue of the Obligations, the proceeds therefrom to reimburse the District for the

 Reimbursable Expenditures. With respect to the proceeds of the Obligations allocated to reimburse the

 District for prior expenditures, the Board hereby covenants not to employ an abusive device under

 Treasury Regulation Section 1.148-10, including using within one year of the reimbursement allocation,

 the funds corresponding to the proceeds of the Obligations in a manner that results in the creation of

replacement proceeds, as defined in Treasury Regulation Section 1.148-1, of the Obligations or another

 issue of tax-exempt obligations.

 

The above provisions are made solely for the purpose of establishing compliance with the

requirements of said Section 1.150-2 of the Treasury Regulations. This provision does not bind the

District or the Board to make any expenditure, incur any indebtedness, or proceed with the financing,

acquisition or construction of the Projects.

 

Section 14. This Resolution shall take effect from and after its date of adoption.

 

PASSED AND ADOPTED by the Board of the Washington Township Health Care District at a

regular meeting thereof, at which a quorum of its members participated and were acting throughout,

conducted electronically at Fremont, California on July 20, 2020, through a system freely accessible to

the public, by the following roll-ca ll vote:

 

AYES: Wallace, Nicholson, Yee, Eapen, and Stewart

NOES:

ABSTAIN:

ABSENT:

 

EXHIBIT A

FORM OF TAX RATE STATEMENT

 

TAX RATE STATEMENT IN CONNECTION WITH WASHINGTON TOWNSHIP HEALTH CARE DISTRICT BOND MEASURE TO BE SUBMITTED AT BOND ELECTION TO BE HELD ON NOVEMBER 3, 2020

 

An election will be held in the Washington Township Health Care District (the "District") on November 3, 2020, to authorize the sale of up to $425,000,000 in general obligation bonds of the District (the "Bonds") to finance the acquisition and improvement of real property for healthcare related purposes. If such Bonds are authorized and sold, the principal thereof and interest thereon will be payable from the proceeds of tax levies made upon the taxable property in the District. The following information is provided in compliance with Sections 9400-9404 of the California Elections Code. This information is based upon the best estimates and projections presently available from official sources, upon experience within the District and other demonstrable factors.

 

1. The best estimate from official sources of the average annual tax rate that would be required to be levied to fund the bond issue over the entire duration of the bond debt service, based on estimated assessed valuations available at the time of the filing of this statement, or a projection based on experience within the District, or other demonstrable factors, is one cent per $100 ($9.98 per $100,000) of assessed valuation of all property to be taxed. The final year in which the tax is anticipated to be collected is 2055-56.

 

2. The best estimate from official sources of the highest tax rate that would be required to be levied to fund the bond issue, and an estimate of the year in which that rate will apply, based on estimated assessed valuations available at the time of filing of this statement, or a projection based on experience within the District, or other demonstrable factors, is 1.172 cents per $100 ($11.72 per $100,000) of assessed valuation on all property to be taxed for fiscal year 2026-27.

 

3. The best estimate from official sources of the total debt service, including the principal and interest, that would be required to be repaid if all the Bonds are issued and sold, is $742,900,000.

 

Attention of all voters is directed to the fact that the foregoing information is based upon projections and estimates only, which are not binding upon the District. The actual tax rates and the years in which they will apply may vary from those presently estimated, due to variations from these estimates in the timing of bond sales, the amount of Bonds sold at any given sale, actual assessed valuations over the term of repayment of the Bonds and applicable interest rates. The actual interest rates at which the Bonds will be sold, which will not exceed the maximum permitted by law, will depend upon the bond market at the time of sale. The actual times of sales of the Bonds and the amount sold at any given time will be governed by the needs of the District and other factors (including market variations in interest rates on general obligation bonds). Actual future assessed valuations will depend upon the amount and value of taxable property within the District as determined in the assessment and the equalization process. Assessed valuation is not the same as market price of real property. Therefore, the actual tax rates and the years in which those tax rates will be applicable may vary from those presently estimated and stated above.

 

Voters should note that the estimated tax rates are based on the ASSESSED VALUE of taxable property in the District as shown on the county's official tax rolls, not on the property's market value. Property owners should consult their own property tax bills to determine their property's assessed valuation and any applicable tax exemptions.

 

Dated: July 20, 2020