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HomeMy WebLinkAboutMINUTES - 09261995 - D11 TO: ` ;BOARD OF SUPERVISORS D.11rs' Contra FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR Costa County DATE: September 22, 1995 COUN SUBJECT: STATUS OF SITUATION REGARDING LOS MEDANOS COMMUNITY HOSPITAL DISTRICT SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS: 1. ACKNOWLEDGE receipt of a letter dated September 19, 1995, from Al Prince, President of the Board of Director of the Los Medanos Community Hospital District responding to the County's recent September 8, 1995 proposed transaction concerning the Los Medanos Community Hospital. Mr. Prince indicates that, "...the Boards [Los Medanos Community Hospital District and Los Medanos Health Care Corporation] concluded that the Pittsburg community would be best served by attempting to address the County's needs through the District/Mt. Diablo/ City of Pittsburg joint powers arrangement that is on the verge of consummation." 2. ACKNOWLEDGE receipt of a letter dated September 19, 1995, from Andrea T. Porter of the law firm of Murphy, Weir & Butler, clarifying the position of the Los . Medanos Health Care Corporation and the Los Medanos Community Hospital District regarding the County's recent proposed transaction concerning the Los Medanos Community Hospital. Ms: Porter says, "Please be assured that the Debtor and the District have declined to pursue the negotiations suggested by the County and have reiterated their commitment to completing negotiations with Mt. Diablo Health Care District (sic) and the City of Pittsburg." She goes on to add, "The letter [of September 8, 1995] appears to be an invitation to negotiate for a period of thirty days and, to the extent that it is such an invitation, the Debtor and the District have elected to decline." 3. In view of the content of the two letters cited above, DETERMINE whether it would be fruitful to continue making arrangements for a meeting with all parties. r CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER X _ September 26, 1995 See Addendum for Board action and votes VOTE OF SUPERVISORS See Addendum I HEREBY CERTIFY THAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. ATTESTED September 26, 1995 Contact: PHIL BATCHELOR,CLERK OF THE BOARD OF CC, See Page 3 SUPERVISORS AND COUNTY ADMINISTRATOR a BY DEPUTY D.11 4. If the Board of Supervisors wishes to continue with a meeting with all parties, SELECT a date for a public meeting, as requested, for all parties apparently involved with and interested in the current Los Medanos Community Hospital District situation, and DIRECT the County Administrator to invite the following parties to the public meeting with the Board of Supervisors: The Los Medanos Community Hospital District Board of Directors. The Los Medanos Health Care Corporation. City Council, City of Pittsburg. Mt. Diablo Hospital District Board of Directors. John Connolly, bankruptcy trustee. Dr. David Werdegar, Director, the Office of Statewide Health Planning and Development (on behalf of Cal-Mortgage). One possibility would be to hold the public meeting on Tuesday, October 17, 1995 at 3:OO.P.M. [Location?] 5. CONSIDER whether or not to extend the response and agreement date of the County's proposed transaction beyond its current thirty day date to allow further debtor consideration. BACKGROUND: On September 19, 1995, the Board of Supervisors discussed at some length the joint letter dated September 7, 1995 which had been received from the President and CEO of Mt. Diablo Medical Center, the President of the Board of Directors of Los Medanos Hospital District, and the Vice-Mayor of the City of Pittsburg, urging that the Chair of the Board of Supervisors facilitate a public meeting as soon as possible of all the parties involved, including County officials, the Board of Supervisors, Mt. Diablo Medical Center, the City of Pittsburg and the Los Medanos Hospital District. During the discussion on this issue, the Board approved a motion to schedule a public meeting with all involved parties. A second motion was made to direct staff to extend the response and agreement date for the County's proposed transaction. Because that specific issue had not been included in the listed agenda item, the Board directed that this question be returned to the Board on September 26, 1995 for further consideration. The Board has received several pieces of correspondence which need to be made a part of the discussion on this subject. They include at least the following: ✓ The September 7, 1995 joint letter which the Board had under discussion on September 19, 1995. ✓ A September 19, 1995 letter from Al Prince responding to the County's offer and suggesting that the Board of Supervisors convene the meeting suggested in the September 7, 1995 joint letter. ✓ A September 19, 1995 letter from Andrea T. Porter asking that the Board of Supervisors respond to the September 7, 1995 joint letter and convene the suggested meeting. 2 D.11 Staff would provide the following background information for the Board's consideration of this subject: 1. The Board's proposed transaction for debtor consideration and agreement was provided for a period of 30 days from September 8, 1995 and therefore remains open until approximately October 8, 1995. 2. The terms of the Board's proposed transaction have been forwarded to the involved parties, resulting in the two September 19, 1995 letters noted above and attached to this report. cc: County Administrator Health Services Director County Counsel Al Prince, President, Board of Directors Los Medanos Hospital District Los Medanos Health Care Corporation Andrea T. Porter; Murphy, Weir & Butler, Attorneys at Law John Connolly, Bankruptcy Trustee Dr. David Werdegar, Director, OSHPD (on behalf of Cal Mortgage) Mary Erbez, Mayor, City of Pittsburg City Manager, City of Pittsburg Michael L. Wall, President and CEO, Mt. Diablo Medical Center 3 ADDENDUM TO ITEM D.11 SEPTEMBER 26, 1995 On September 19, 1995,the Board declared its intent to agenda on September 26, 1995, a discussion of the situation regarding the Los Medanos Community Hospital District. Phil Batchelor, County Administrator, advised that the County has received a communication from the President of Los Medanos Hospital Board that said they did not intent to consider the proposal that the County has put out and that they had voted unanimously on the matter and that the County has also received a letter from the attorney for the bankrupt corporation that said in essence the same thing,that they were not interested in the County's invitation. Mr. Batchelor advised that if the Board still wished to establish a meeting they would need to determine who is to be invited and where and when it would be held and he recommended getting concurrence from Andrea Porter,the attorney for the Health Care Corporation and from Cal Mortgage prior to the meeting. He also advised that the Board should decide whether they want to extend the current proposal date which gave them 30 days to respond which expires on October 8, 1995. Supervisor Torlakson expressed support for having the meeting and possibly having it in Bay Point or Pittsburg, and directing staff to proceed along the guidelines for October 17, 1995. Supervisor Smith seconded the motion with the presumption of getting concurrence from Andrea Porter representing the District and someone from Cal Mortgage. Supervisor Rogers clarification that the intent of the motion was to discuss a cooperative approach and discuss the plan where the County would be the purchaser. Supervisor Torlakson concurred. The Board discussed the motion. Supervisor Bishop indicated that she would be abstaining from that part of the motion that speaks to pursuing the County's.proposal. The vote on the motion was as follows: AYES: Supervisors Rogers, Smith, DeSaulnier, and Torlakson NOES: None ABSTAIN: Supervisor Bishop (on the part relating to a proposal) ABSENT: None Donna Gerber, representing the California Nurses Association, presented testimony. IT IS BY THE BOARD ORDERED that October 17, 1995, is SELECTED for a public meeting, provided that there is concurrence from parties, for all parties apparently involved with and interested in the current Los Medanos Community Hospital District situation- and the County Administrator is DIRECTED to invite the parties to the public meeting with the Board of Supervisors; and it is DETERMINED to continue to pursue the County's proposal relative to Los Medanos Community Hospital., DATE: // a' REQUEST TO .SPEAK FORM (THREE (3) MINUTE LIMIT) Complete this form and place it in the box near the speakers' rostrum before address' the Board. NAME: 6P40NE: ADDRESS: Cm': I am speaking formyself OR organization: W X Af w2�g Azz-�, Al Check one: ("AME OF ORGANIZNTION) I wish to speak on Agenda Item # My comments will be: general for . _against I wish to speak on the subject of I do not wish to speak but leave these comments for the Board to consider. 09/19/95 11:17 $510 427 1669 LOS MEDANOS HOSP .-ZO02/003 LM AGENDA #D9 Dij CH Los Medanos Community Hospital September 19, 1995 Supervisor Gayle Bishop Contra Costa County Board of Supervisors 651 Pine Street Martinez, CA 94553 Dear Supervisor Bishop: The Boards of Directors of Los Medanos Community Hospital District and Los Madanos Health Care Corporation met in joint session last night to consider the September 8, 1995 letter we received from Contra Costa County regarding its use of our facilities. We appreciate the County"s efforts in developing that letter; however, in deliberations last night, the Boards concluded that the Pittsburg community would be best served by attempting to address the County's needs through the District/14t. Diablo/City of Pittsburg joint powers arrangement that is on the verge of consummation. To that end, we would encourage the Contra Costa County Board of Supervisors to review our letter of September 7, 1995 (copy attached) and consider convening a meeting such as we suggest. We look forward to hearing from you. _ Sincerely,. Al Prince, President Board of Directors Los Medanos community Hospital District AP:ld Attachment cc: Phil Batchelor Mark Finucane Mike Wall John Connolly Joe Canciamilla Mary Erbez LMCH Board of Directors '4157881545 STATION B F-202 T-673 P-002 SEP 19'95 21:33 MURPHY, WEIR 8 BUTLER ATTORNEYS AT LAW, A PROFESSIONAL CORPORATION Los AN6E M OFFICE 101 CAIUKANTA STREET. 3971-1 FLOOR 2049 Ct'NIVAY PARK EAST.21sT MOOR SAN FRANWCa CaIIORNIA 94111 - LOS ANGELES.CALIFORNIA 000eT (.415)39a-4700 (3101768-3700 FAC3KILE 1415)421.7879 FACSIMILE(3101 788-3777 September 19, 1995 VIA FACSIMILE AND 'UNITED STATES MAIL Victor J. Westman, Esq. County Counsel Contra Costa County Count Administration Building 651 Fine Street, 9th Floor Martinez, California 94553-0116 Rez In re Los Medanos Health .CareCorporation, ChMter .9 Case No. 94-42864-,T Dear Mr. Westman: Thank you for'your letter of September 18, 1995 which I received today. I an responding immediately in light of your reference to the county Administrator's letter of September 8, 1995 and events that evidently took place during the meeting of the Contra Costa County Board of Supervisors this afternoon. Today, Mr. •Prinee wrote a letter to Supervisor Gayle Bishop that may have been misunderstood by certain County representatives. I..attach a copy of that letter for your convenience. I have spoken with Mr. Prince and he has asked that I make clear to you, and request that you make clear to your , client, that Los Medanos Health Care Corporation, Debtor in the above-referenced Chapter 9 case (the "Debtor") and Los Medanvs Community Hospital' District (the "District") have addressed the September 8, 1995 letter. Please be assured that the Debtor and the District have ,declined to pursue the negotiations suggested by the County and have reiterated their commitment to completing negotiations with Mt. Diablo Health Care District and the City of Pittsburg. The Debtor ,and the District do not consider the September 8, 1995 letter, which clearly states that it shall not "be construed as a commitment or obligation of the County. ." to be an offer subject to rejection. The letter appears to be. an invitation to negotiate for a period of thirty days and, to the extent that `it is such an invitation, the Debtor and the District have elected to decline. At last nightfs joint meeting of the Boards of Directors of the Debtor and the District, a motion to 4436\L260.ATP eag SEP-19-1995 21:34 4157881545 P.002 k 4157881545 STATION B F-202 T-673 P-003 SEP 19 '95 21:33 Victor J. Westman September 19, ,1995 page 2 acknowledge receipt of the September 81 1996 letter and to refer the County to the September 7 letter of the Debtor, Mt. Diablo Medical Center, and the City of Pittsburg passed unanimously. Again, .the Debtor urges the County Board of Supervisors to review its letter .of September 7, 1995 (a copy of which I have also attached for your convenience) and to consider convening a meeting as suggested by that letter. Finally, I very much appreciate your willingness to discuss further my .letter of August 30, 1995 .and request that you first provide me, on an informal .basis, with copies of the ..letters, memoranda, and or other documents requested in that letter. To assist you in your analysis of the Debtors' position, YOU may wish to review 11U.S.C. § 362(a) (3) , violation of which can subject the persons responsible to sanctions in the Bankruptcy case. Thank you for your attention to the foregoing. Vt truly yours, A drea T. Po er Enclosures cc via facsimile only (w/o encl) : Board of Directors, Los Medanos Health Care Corporation 'Mr. John Connally, IV Mr. Michael L. Wall Joseph Caniamilla, Esq. Ms. Mary Erbez Thomas C. Mitchell, Esq. -_ 4436\1260.ATP eag SEP-19-1995 21:34 4157881545 P.003 *SEP 25 '95 12:21PM CALIF. NURSES ASSOC P.2/2 MOTION PASSED AT LOS MEDANOS BOARD MEETING Motion by Roseann Lazio: "I move that: Correspondence be sent to the County in response to their offer -- and state that we would like them to again revisit our letter of 9/7/95 and collectively Los Medanos District, City of Pittsburg and Mt. Diablo welcome any collaboration effort on their part." Motion passed unanimously.