HomeMy WebLinkAboutMINUTES - 02031987 - 2.4 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY
Adopted this Order on February 3 , 1987 by the following vote:
AYES: Supervisors Powers, Fanden, Schroder, Torlakson, McPeak
NOES: None
ABSENT: None
ABSTAIN: None
SUBJECT: Grand Jury Report on Mt. Diablo
Hospital District Action
At the request of the Board of Supervisors the 1986-87
Grand Jury conducted an investigation of an action taken by the
Mt. Diablo Hospital District Board of Directors relating to
approval of an agreement between the Mt. Diablo Hospital District
and Riley M. Green, Jr.
The Board received the attached Special Report dated
January 21, 1987 by the 1986-87 Contra Costa County Grand Jury
relative to the action of the Mt. Diablo Hospital District Board
of Directors.
IT IS BY THE BOARD ORDERED that the County
Administrator is DIRECTED to send a letter to the 1986-87 Grand
Jury expressing the Board' s appreciation for the investigation
they conducted.
IT IS FURTHER ORDERED that the County Administrator is
REQUESTED to provide copies of the Grand Jury' s report to the
appropriate Special Districts.
cc: County Administrator
1 hereby certify that this is a true and correct copy of
an action taken and entered or, the minutes of the
Board of Supervisors on the date shown.
ATTESTED: J. 987
PHIL BATCHELOR, C149 of the Board
of Supervisors and County Administrator
By tau-,c_F� �.� Deputy
T t
2-0- 04
SPECIAL REPORT
JAN 2
�//Ly,
BOARD OF DIRECTORS OF THE
MT. DIABLO HOSPITAL DISTRICT
by the
1986-1987
CONTRA COSTA COUNTY
GRAND JURY
JANUARY 21, 1987
APPROVED BY THE GRAND JURY:
DATE: JANUARY 21 , 1987
GRAND JURY FOREWOMAN
ACCEPTED FOR FILING:
DATE: JANUARY 21 , 1987
JUDGE OF THE SUPERIOR COURT
g�.
V
Subsequent to receipt of written requests from the public
and a request from the Contra Costa County Board of Supervisors, the
1986-1987 Contra Costa County Grand Jury initiated an inquiry into
the action taken on November 28 , 1986 by the Board of Directors of
the Mt. Diablo Hospital District. Such Action was the Board of
Directors ' approval of the November 28 , 1986 Agreement between the
Mt. Diablo Hospital District and Riley M. Green, Jr. The Grand Jury
consulted with the District Attorney' s Office on criminal and civil
matters of law. The investigation was conducted between December 3
and December 23 , 1986 .
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Z . ISSUE
Whether the Board of Directors of the Mt. Diablo Hospital
District used appropriate methods to protect the interests of the
District and the public when it approved the (Termination of
Employment) Agreement dated November 28 , 1986 , which was presented
to the Board by Riley M. Green, Jr. , at a special meeting on Nov-
ember 28 , 1986 .
II . FACTS
The 1986-1987 . Contra Costa Grand Jury reviewed the following
documentation relative to Green:
A. The (Employment) Agreement dated November 2, 1982 and
Amendments thereto dated December 10, 1985 and November 4 ,
1986 .
1 . The November 2 , 1982 ( Employment) Agreement
stipulates, in part, the following:
a) The Mt. Diablo Hospital Board may terminate
Green' s duties as Chief Executive Officer ( CEO)
by a majority ( 3 ) vote of the entire Board and
the termination shall become effective when such
vote is taken.
b) Subsequent to his termination, Green would be
entitled to his monthly salary ( including
housing allowances) for the month of termination
and 24 consecutive months thereafter. Also for
the period during which such payments are being
made, the Hospital agrees to keep Green' s group
life, dental, health and major medical insurance
coverage paid up and in effect.
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C) Should Green, in his discretion, elect to
terminate his employment contract, he shall give
the Board 120 days advance written notice. At
the end of these 120 days all rights, duties and
obligations of both parties to the contract
shall cease. The Amendment to Agreement, dated
December 10 , 1985 does not amend this provision.
2 . The Amendment dated December 10, 1985 to the November
2 , 1982 (Employment) Agreement provides, in part,
that:
a) The Mt. Diablo Hospital Board' s termination of
Green' s duties as CEO shall require a
four-fifths ( 4/5 ) vote of the entire Board and
shall become effective when such vote is taken.
b) Subsequent to his termination, Green would be
entitled to his monthly salary ( including
housing allowance) for the month of termination
and 48 consecutive months thereafter. Green
will also receive group life insurance policy,
dental, health and major medical insurance,
retirement or deferred compensation plan, and be
enrolled in the District retirement plan.
B. A (Termination of Employment) Agreement between Green and
the District dated November 28, 1986 and an accompanying
undated Resolution.
1 . Some of the stipulations contained in the November
28 , 1986 (Termination of Employment) Agreement are as
follows:
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a) A sum of not less than $822 ,614 shall be main=
tained in a separate trust account for the sole
benefit of Green and his spouse.
b) Upon establishment of the trust account on the
employment ending date, November 28, 1986 , a
guaranteed payment of $95 , 000 per year would be
made to Green for his life.
c) Should Green predecease his wife, a guaranteed
payment of $47 , 500 per year would be paid to his
spouse for her life.
d) The corpus of the trust fund, which cannot be
used to satisfy any other obligations of the
District, will revert to the District General
Fund upon the deaths of Green and his spouse.
2 . Other provisions stipulated in the November 28, 1986
(Termination of Employment) Agreement are as follows:
a) Comprehensive dental, health and major medical
insurance for Green and family for the life of
Green and his spouse;
b) a group live insurance policy upon Green' s life
in the sum of $237 , 500 payable to a beneficiary
of his choice.-
c)
hoice;c) continued coverage for Green under the
District ' s general liability insurance policy
for his actions while employed by the District; ;
d) payment of all Green' s professional dues and
membership fees for 4 years. `
3 . Upon attaining age sixty-five ( 65) Green shall be
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entitled to receive his vested retirement benefits
under the District' s retirement plan, attributable to
an employment period of fourteen ( 14 ) years.
4 . "Green may, at his option, at any time reinstate the
terms of his Employment Agreement with District
should District fail to comply in a timely and
complete manner its duties and obligations
hereunder. "
C. Bylaws for Mt. Diablo Hospital District and Board of
Directors ' Policy Manual.
The requirement for the recording of minutes for
regular and special meetings of the Board of Directors
(open and closed sessions) was of special concern.
In regard to the minutes, the Board of Directors '
Policy Manual stipulates:
"The Chief Executive Officer is charged with the
responsibility for insuring that recorder duties
are performed for the Board of Directors. . . "
III . FINDINGS
The Grand Jury received testimony under oath concerning the
November 28, 1986 (Termination of Employment) Agreement and its
approval.
A. It is the opinion of the Grand Jury, based on the evidence
received, that the majority ( 3 ) of the Board of Directors
on November 28, 1986 :
1 . Relied more on oral explanations of the Trust Fund
of $822, 614 , , plus other financial considerations,
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than on their own comprehension of the total
financial ramifications of the proposed agreement
between Green and the District.
2 . Refused to delay the vote on Green' s (Termination
of Employment) Agreement in spite of their
questionable comprehension, and the lack of docu-
ments detailing the actuarial impact of the
agreement.
IV. CONCLUSIONS
A. It is the opinion of the 1986-1987 Grand Jury, that. in
approving the (Termination of Employment) Agreement for
Green, the Mt. Diablo Hospital Board of Directors:
1 . Acted in a questionable and precipitous manner
based on information regarding possible actions which
could affect Green' s future employment with the
District and,
2 . Failed to use a decision-making methodology
appropriate to protect the best interest of the
Mt. Diablo Hospital District and the taxpayers of the
District.
B. It is the opinion of the 1986-1987 Grand Jury that the
Board should have considered Item A. 6 of the (Employment)
Agreement, dated November 2 , 1982, which states, in part,
that should Green, in his discretion, elect to terminate
his contract, he shall give the Board 120 days advance
written notice of his decision to terminate; and after
such termination, all rights, duties and obligations of
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both parties shall cease, except that Green shall
continue to receive his monthly salary ( including housing
allowance) for 48 consecutive months thereafter.
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RECOMMENDATIONS
The 1986-1987 Contra Costa Grand Jury recommends the
following:
1 . Legislation should be enacted to increase the membership of the
Mt. Diablo Hospital Board of Directors from five to seven
elective members.
2. Legislation should be enacted to limit the terms of the Mt.
Diablo Hospital Board of Directors to two terms.
3 . The members of the Board of Directors should be required to
reside in the Mt. Diablo Hospital District during the entire
period of their tenure.
4 . The Office of Board President should be rotated among all
Mt. Diablo Hospital Board members .
5. The Board of Directors should comply with the Mt. Diablo
Hospital District Bylaws and Board of Directors ' Policy Manual
in reference to the recordation of all minutes.
6 . The role of the legal counsel for the Mt. Diablo Hospital
District should be clearly defined.
7 . The personnel committee of the Mt. Diablo Hospital District
Board of Directors should conduct an annual job performance
evaluation of the Chief Executive Officer with its
recommendations, in writing, presented to the Board of
Directors for appropriate action. Job performance evaluation
of the CEO should be based on clearly-written goals and
objectives. A copy of this job performance evaluation shall be
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an integral part of the CEO' s personnel folder, which must be
maintained and stored, at all times, in the personnel office
files of the Mt. Diablo Hospital.
8. All contractual agreements of the Mt. Diablo Hospital District
should be read at three consecutive regular or special meetings
(open or closed sessions) prior to calling for a vote.
1986 should be rescinded by whatever legal means available.
9. At least one copy of all contractual agreements between the
Mt. Diablo Hospital District and the CEO should be maintained
at both the hospital personnel office and in the hospital
attorneys ' files.
10. The (Termination of Employment) Agreement dated November 28 ,
1986 should be rescinded by whatever legal means available.
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