HomeMy WebLinkAboutMINUTES - 12021986 - X.5 TO: BOARD OF SUPERVISORS
Contra
FROM: SUNNE WRIGHT MC PEAK Costa
DATE: December 2 , 1986 rvvuq
SUBJECT: MT. DIABLO HOSPITAL TRUST FUND FOR RETIREMENT OF ADMINISTRATOR
SPECIFIC REQUEST(S) OR RECOMMENDATION(S) & BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
Formally urge by letter the Mt. Diablo Hospital Board of Directors
to rescind their actions on November 28 , 1986 to establish a
retirement trust fund for the Administrator that will guarantee
him $95 , 000.. 00 per year for the rest of his life. Further,
request the Contra Costa County Grand Jury to investigate the
legality and propriety of such actions by the Mt. Diablo Hospital
Board of Directors .
BACKGROUND:
Attached are newspaper articles and editorials that describe the
actions of the Mt. Diablo Hospital Board of Directors on
November 28 , 1986 . The retirement trust fund established and
retirement provisions are so extraordinary that public review and
examination are in order. The Grand Jury is the appropriate
local body to investigate and report on the legality of the
actions of the Mt. Diablo Hospital Board.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURE(S)
ACTION OFBOARD ON December 2, 1986 APPROVED AS RECOMMENDED X OTHER
VOTE OF SUP15RVISORS
X UNANIMOUS (ABSENT ) 1 HEREBY CERTIFY THAT THIS IS A TRUE
AYES: NOES: AND CORRECT COPY OF AN ACTION TAKEN
ABSENT: ABSTAIN: AND ENTERED ON THE MINUTES OF THE BOARD
OF SUPERVISORS ON THE DATE SHOWN.
CC: Mt. Diablo Hospital Board ATTESTED / eq 1!?n
of Directors Phil Batchelor, Clerk of the Bo ud of
Grand ,jury Supervisors and County Administrator
County Administrator
County Counsel
M382/7-e3 BY a4, DEPUTY
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Green bonanza
misuse of funds
he $95,000-a-year lifetime "golden para
chute" given given resigned Mt. Diablo Hospital /9L
administrator Riley Green is one more example
of inappropriately hasty action by directors of
the public hospital district. The gift of public
funds is extraordinary and highly questionable.
Green, 50, suddenly resigned after five years
as chief executive officer of the Concord-Pleas-
ant Hill hospital district. Dr. Roger Lang,one of
his supporters on the board of directors, said
Green wanted "to circumvent what he per-
ceives as a hostile environment in the cumin
.yam ,. ..
In an unusual closed meeting on Friday
night of Thanksgiving weekend on the eve of a
change in the makeup of the board of directors,
a board majority decided to give Green a kind
of "golden parachute" more common in the
case of business executives who are dismissed
after a corporate takeover. Voting in favor o
the deal were Lang, Art Bacigalupo and Char-
lotte Allen, who was about to lose her seat be-,
cause she was defeated in the Nov. 4 election.
Voting against were directors John Baie and!
Dr. Jason Appel.
Under the agreement, which the dissenting
directors said came out of the blue, Greenl
will get $95,000 a year for as long as he lives
and be free to take other work. In addition,thel
district will provide lifetime dental, health and
major medical insurance for Green and his!
family and pay for a $237,500 life insurance'
Policy.
Moreover, Green will be entitled to his vest-
ed retirement benefits when he reaches age 65.
i The lameduck board majority also agreed to:
pay Green's wife $47,500 annually for the rest!
of her life upon Green's death and to pay,
Green's attorney for drawing up the agree
ment.
Green deserves credit for his sound fiscal
management of Mt. Diablo Hospital,which h
supported itself without district taxes for
number of years. Furthermore, during his ten
ure,the hospital has continued to improve wi
new services and programs, maintaining a re
utation for excellence in medical care.
At the same time, Green—along with direr
tors Lang, Bacigalupo and Allen—has been a
center of misguided hospital policies that have
been resoundingly rebuked by the public.
Last year, without public notice or discus-
sion,they converted the public hospital to a
private operation and transferred$55 million in
public hospital assets to a new corporation
Public protest, legal questions and state Sen.
Dan Boatwright of Concord forced an election
in which vyters rejected the move by a three to
one margin. The next month, the board gave,
Green, a principal "privatization" proponent, aj
10.3 percent raise to make him, at $116,000 a
year,by far the highest paid public employee'
Contra Costa County.
Concord and Pleasant Hill voters have co
tinued to indicate displeasure with the hospi
district. In the Nov. 4 election, they the,
Allen's re-election bid and elected challenge
Mary Mahoney, a critic of the conversion at
tempt, Green's salary and a board plan to
re-
quire a four-fifths vote of the board to termi-
nate him. Mahoney's election meant that critics
of board and hospital actions would have a ma
jority on the board when she took office thisl
week On the very day Mahoney was elected,)
the old board majority gave Green another
raise, this time 9.5 percent.
Now Green and three hospital directors have
Collaborated in pushing through a severance
package that could amount to a multimillion.
dollar bonanza for Green. Once again, mem,
bers of the Mt. Diablo Hospital board have
abused the public trust.