HomeMy WebLinkAboutMINUTES - 03072000 - SD.3 5D 3
TO: BOARD OF SUPERVISORS Contra.
FROM: PHIL BATCHELOR, COUNTY ADMINISTRATOR � �� `.;. Costa
March 7, 20C}0 4y., "' �.. ` ty
DATE: d e
SUBJECT: COUNTY" RECOMMENDATION TO LAFCO RE PROPOSED
DISSOLUTION OF LOS MEDANOS COMMUNITY HOSPITAL DISTRICT
SPECIFIC REQUESTS)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATIONS
1. RECOMMEND to LAFCO that, should it approve the proposal for dissolution
of the Los Medanos Community Hospital District, the County should be
named as successor agency to the District and its assets (property, funds
any tax rate surplus)to be used by the County for the provision of health care
services, programs, facilities and activities for the benefit of the area and
people formerly served by the District.
2. CONCLUDE that, because the Los Medanos Community Hospital District
includes the City of Pittsburg, the unincorporated community of Bay Point
and the City of Clayton, no one city is in a position to adequately serge the
entire area of the District, whereas the County routinely provides a wide
variety of services both within and outside of incorporated cities.
3. ACKNOWLEDGE that the County has committed some $13 million to
improve the exterior of the property, the interior of the hospital and to
upgrade much of the building maintenance, that the County is remodeling
four floors and a portion of a fifth floor for use as a health center, that the
heating,ventilating and air conditioning system (HVAC)central plant is being
replaced, that all new waste pipe lines are being installed throughout the
CONTINUED ON ATTACHMENT: YES ,IGNArURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE
APPROVE OTHER
SIGNATURES
MOO
ACTION OF BOARD ONfC , APPROVED AS RECOMMENDED OTHER
VOTE OF SUPERVISORS
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
Contact: Health Services PHIL ATCHELOR,CLERK OF THE BOARD OF
Cc: County Counsel SUPERVISORS ANDCOU Y ADMINISTRATOR
C�
BY DEPUTY
building, that a significant portion of the water lines and drain valves are
being replaced, and that, in view of this investment, it is important that the
County provide the continuity of being named the successor agency to the
hospital district, if LAFC4 decides to approve the dissolution.
4. DIRECT the County Administrator to notify LAFCO of the Board's request.
FISCAL IMPACT
As successor to the District, the County would assume the assets and
obligations of the District and handle the winding up of the District. Following
dissolution, special taxes levied for bonded indebtedness would continue to
be levied for that purpose until the bonds are paid off in full. Taxes levied for
general District purposes generally go to the successor agency which will be
used to provide services similar to those previously provided by the
dissolving District. General District taxes would likely be used to satisfy the
remaining obligations of the District.
BACKGROUND
A petition of application for the proposed dissolution of the Los Medanos
Community Hospital District has been filed by certain voters in the District
(the "Committee to Dissolve Los Medanos Health Care District," Darnell
Turner, Chair). The Committee's petition states that the dissolution is being
requested because, although property taxes are being collected for the
purposes of providing a hospital and health care to the members of the
District, the District itself has not provided health care to its members since
the Los Medanos hospital facility was closed in 1994.
The District currently collects approximately $1,550,000 per year in taxes.
Approximately$1,000,000 is restricted and used solely for the repaymentthe
1977 bonds that were used to construct the Los Medanos hospital. It is
anticipated that the taxes used for this purpose will continue to be collected
through 2004, when the bonds are currently scheduled to be repaid. The
District has advised that, under the terms of a 1998 bankruptcy plan, the
District has committed another $400,000 of annual general taxes to the
repayment of monies owed to the Office of Statewide Health Planning and
Development of the State of California("Cal-Mortgage")for the next 12 years.
The Cal-Mortgage loan is secured by a deed of trust on the Los Medanos
hospital property. The remaining $150,000 of annual general tax revenue is
used for ongoing District operations. Besides the District's outstanding debt,
it has the ongoing obligation of storing, maintaining and providing access to
medical records of former patients of the hospital, until such time as the
records can be destroyed under California law.
The primary property asset of the District is the former Los Medanos hospital
site. Effective August 1, 1998, the District leased the hospital property to the
County for a term of twenty years. The County is in the process of converting
the former Los Medanos Hospital into an ambulatory care facility for the
purpose of providing clinics, urgent care facilities, medical offices and related
health care services to the residents of East County. The facility is currently
undergoing extensive renovation and is expected to open in March 2001.The
County's rent of$100,000 per year is paid to Cal-Mortgage under the terms
of the District's 1998 bankruptcy plan. The District also guaranteed a
minimum annual lease payment to Cal-Mortgage of$500,000 per year for an
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additional two-year term at the conclusion of the County's initial lease term
(the County has two five-year options to extend the term of the lease).
On February 8, 2000, the Contra Costa County Local Agency Formation
Commission (LAFCO) notified the County that the proposal to dissolve the
District has been tentatively scheduled for review and possible determination
at the Commission's April 12, 2000 meeting. LAFCO has asked for the
County's written comments regarding local and regional issues of
significance relative to the dissolution of the District no later than March 24,
2000. LAFCO will conduct a study and hold a hearing on the proposal for
dissolution. If LAFCO approves the dissolution, it will forward the matter to
the Board of Supervisors to order the dissolution, subject to confirmation of
the voters (required under Govt. Code §57083.5). LAFCO has the authority
to subject the dissolution to its own terms and conditions, covering issues
such as taxes,distribution of assets,bonds and other outstanding obligations
(Govt. Code §56844).
The Los Medanos Community Hospital District includes the City of Pittsburg,
the unincorporated community of gay Point and the City of Clayton. No one
city is in a position to adequately serve the entire area of the District,whereas
the County routinely provides a wide variety of services both within and
outside of incorporated cities.
In addition, the County has committed some $13 million to improve the
exterior of the property, the interior of the hospital and to upgrade much of
the building maintenance. The County is remodeling four floors and a portion
of a fifth floor for use as a health center. The Heating, Ventilating and Air
Conditioning system (HVAC) central plant is being replaced. All new waste
pipe lines are being installed throughout the building. A significant portion of
the water lines and drain valves are being replaced. In view of this
investment, it is important that the County provide the continuity of being
named the successor agency to the hospital district, if LAFCO decides to
approve the dissolution.
The preeminent issue of local and regional significance relative to the
dissolution of the District is that the residents of Fast Contra Costa County
require and should continue to receive medical care and resources in their
area. The County is the public entity best able to insure the continuance of
health care services for the benefit of the District's area and people. The
County is the only agency equipped and committed to providing health care
services to the East County residents. As such, the County is the logical
successor to the District and should be named by LAFCO as successor
agency to the District, and to its assets, funds and any surplus tax revenues,
in the event of the District's dissolution.
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