City Council to consider Barton financing |

City Council to consider Barton financing

Whether the city should help Barton Healthcare System finance two projects with a combined cost of about $13.6 million will be considered by the South Lake Tahoe City Council on Tuesday.

Under the proposal, the city would lease the projects, and then sublease them to Barton. During the council’s meeting on July 21, a Barton representative said such financing would be tax-exempt, reducing Barton’s costs and allowing Barton to keep health care costs down.

In a report to the council for Tuesday’s meeting, City Attorney Jacqueline Mittelstadt said the arrangement is allowed under California’s government code.

Mittelstadt noted that the city has previously helped Barton finance capital projects, as recently as 2006.

“The city’s obligation to make lease and other payments will be a limited obligation under which the city is obligated to make those payments solely from sublease and other payments made by Barton,” her report states.

The agreement would not affect other borrowing by the city, Mittelstadt said.

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The agreement would cover two projects: one costing about $10.1 million for facility improvements and equipment; the second for about $3.5 million in facility improvements.

One of the agreements would be with Banc of America Public Capital Group; the other with Siemens Public Inc.

In a report last month, City Manager David Jinkens called Barton Healthcare System a valuable resource for South Lake Tahoe. Developing new health care facilities will boost the local economy, he said.

– The council will vote on increasing the police department budget by $17,000 to reflect the receipt of funding from an Edward Byrne Memorial Justice Assistance Grant.

The funds would be used to buy safety equipment for the police department’s SWAT team – including a paint-ball-like training system. Other equipment would include mirrors, lighting, communications devices and less-than-lethal weapons.

– The council will vote on a $1.7 million contract to Herback Construction of Minden for the next phase of the Sierra Tract erosion control project. The work is scheduled to start this year, possibly continuing next year.The work would take place on city right-of-way and public land in the southeastern portion of the Sierra Tract neighborhood.

– The council will vote on whether to establish an underground utilities district for Sierra Boulevard.

The meeting starts at 9 a.m. in council chambers at the Lake Tahoe Airport. For a full agenda and staff reports, see