HomeMy WebLinkAboutMINUTES - 06212011 - SD.4RECOMMENDATION(S):
APPROVE and authorize the Health Services Director to execute an agreement with
West Contra Costa Healthcare District terminating Doctors Medical Center
Management Authority and amending Property Tax Transfer Agreement; and
1.
ACKNOWLEDGE and APPROVE the four County representatives serving on the
Doctors Medical Center Governing Body.
2.
FISCAL IMPACT:
No fiscal impact.
APPROVE OTHER
RECOMMENDATION OF CNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
Action of Board On: 06/21/2011 APPROVED AS RECOMMENDED OTHER
Clerks Notes:See Addendum
VOTE OF SUPERVISORS
AYE:John Gioia, District I
Supervisor
Mary N. Piepho, District III
Supervisor
Karen Mitchoff, District IV
Supervisor
Federal D. Glover, District V
Supervisor
ABSENT:Gayle B. Uilkema, District II
Supervisor
Contact: Dorothy Sansoe,
925-335-1009
I hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the
Board of Supervisors on the date shown.
ATTESTED: June 21, 2011
David J. Twa, County Administrator and Clerk of the Board of Supervisors
By: June McHuen, Deputy
cc:
SD. 4
To:Board of Supervisors
From:William Walker, M.D., Health Services Director
Date:June 21, 2011
Contra
Costa
County
Subject:Termination of Doctor's Medical Center Joint Powers Authority
BACKGROUND:
1. Termination of Doctors Medical Center Management Authority
In February 2007, the Board approved the creation of the Doctors Medical Center
Management Authority (the “Authority”) pursuant to a joint powers agreement, for the
purpose of oversight of Doctors Medical Center by the County and the District.
On April 5, 2011, the Board held a hearing on a $10 million property tax transfer
agreement (the “Property Tax Transfer Agreement”) with the District. The Property Tax
Transfer Agreement obligates the District to reorganize its governance structure. On
April 29, 2011, the District Board of Directors held a special meeting to amend the
District’s by-laws. The amended bylaws established a committee of the District (the
“Governing Body”), consisting of representatives from the District, County and Doctors
Medical Center medical staff. This structure meets the County's request for governance
changes and renders the existence of the Authority unnecessary. Accordingly, the
Amendment Agreement terminates the Authority.
2. Amendments to Property Tax Transfer Agreement
On April 5, 2011, the Board approved the Property Tax Transfer Agreement. The
attached Amendment Agreement amends the Property Tax Transfer Agreement to: (i)
remove the prohibition on termination of the Doctors Medical Center Management
Authority; (ii) modify a representation by the District regarding the status of its
bankruptcy reorganization plan, and (iii) add provisions addressing County
representatives’ continued participation in the operation of Doctors Medical Center.
The District’s representation in the Property Tax Transfer Agreement regarding its
bankruptcy reorganization plan presently states: “District hereby represents and warrants
that it has satisfied its plan of bankruptcy reorganization and that the United States
Bankruptcy Court no longer has any jurisdiction over it.” However, the reorganization
plan is not yet complete. A payment of approximately $1.8 Million remains. The
bankruptcy court did confirm the reorganization plan. Because the reorganization plan
was confirmed by the bankruptcy court, the bankruptcy court’s approval of the Property
Tax Transfer Agreement is not required. The Amendment Agreement amends the
representation to state: “District hereby represents and warrants that its Plan of Debt
Restructuring has been confirmed and United States Bankruptcy Court approval is not
required to enter into this Agreement.”
3. Confirm Appointment of County Representatives to Governing Body
Under the District’s amended bylaws, four County representatives sit on the Doctors
Medical Center Governing Body committee: (i) the District One representative of the
Board of Supervisors; (ii) the County Health Services Officer or his/her designee; (iii)
the County Public Health Director or his/her designee; and (iv) the County Health
the County Public Health Director or his/her designee; and (iv) the County Health
Services Chief Financial Officer or his/her designee. The Board of Supervisors’ action
today acknowledges and confirms these appointments and provides for their continued
participation on the Doctors Medical Center Governing Body.
CONSEQUENCE OF NEGATIVE ACTION:
If the Board does not approve the Amendment Agreement (i) the Doctors Medical Center
Management Authority will not be terminated, per the terms of the Property Tax Transfer
Agreement, (ii) the District’s representation regarding the status of its bankruptcy
reorganization plan will be incorrect, and (iii) the continued participation of County
representatives in the governance of Doctors Medical Center will be uncertain.
CHILDREN'S IMPACT STATEMENT:
Not Applicable
CLERK'S ADDENDUM
APPROVED and AUTHORIZED the Health Services Director to execute an
agreement with West Contra Costa Healthcare District terminating Doctors Medical
Center Management Authority and amending Property Tax Transfer Agreement, as
amended today to reflect the effective date as May 25, 2011; and ACKNOWLEDGED
and APPROVED the four County representatives serving on the Doctors Medical
Center Governing Body.
ATTACHMENTS
DMC Tax Transfer Agreement