HomeMy WebLinkAboutMINUTES - 07172001 - C.146 • C/o
TOO:- BOARD OF SUPERVISORS '�' " Contra
FROM: JOHN SWEETEN, County Administrator ' f
; ►. Costa
DATE: JULY 17, 2001 --- sCO ;•�
ST' ------
County
SUBJECT: RESPONSE TO GRAND JURY REPORT NO. 0101 ENTITLED
"MT. DIABLO HEALTH CARE DISTRICT"
SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION
RECOMMENDATION:
ADOPT report as the Board of Supervisors' response to Grand Jury Report No. 0101 entitled,
"Mt. Diablo Health Care District".
BACKGROUND:
The 2000-2001 Grand Jury, on April 24, 2001, filed the above-referenced report, which was
reviewed by the Board of Supervisors on May 8 and subsequently referred to the County
Administrator and the Health Services Director, who prepared the attached response that
clearly species:
A. Whether the finding or recommendation is accepted or will be implemented;
B. If a recommendation is accepted, a statement as to who will be responsible for
implementation and a definite target date;
C. A delineation of the constraints if a recommendation is accepted but cannot be
implemented within a six-month period; and
D. The reason for not accepting or adopting a finding or recommendation.
CONTINUED ON ATTACHMENT: YES SIGNATURE:
RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMEND, OF BOARD COMMITTEE
.-APPROVE OTHER
SIGNATURE(S):
a//-1.6-- -
ACTION OF BOAR Ju1V 17, 2001 APPROVE AS RECOMMENDED XX OTHER
VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE
AND CORRECT COPY OF AN ACTION TAKEN
XX UNANIMOUS(ABSENT ----- 1 AND ENTERED ON THE MINUTES OF THE
BOARD OF SUPERVISORS ON THE DATE
AYES: NOES: SHOWN.
ABSENT: ABSTAIN:
ATTESTED July 17, 2001
CONTACT: JULIE ENEA(925)335-1077 JOHN SWEETEN,CLERK OF THE
BOARD OF SUPERVISORS AND
COUNTY ADMINISTRATOR
CC: COUNTY ADMINISTRATOR
HEALTH SERVICES DIRECTOR
PRESIDING JUDGE OF THE SUPERIOR COURT
LAFCo EXECUTIVE OFFICER
MT.DIABLO HEALTH CARE DISTRICT BOARD OF DIRECTORS /
BY � L(/Cl�/ IC�.(/� ,DEPUTY
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July 17, 2001 Page 1
Response to the Contra Costa Grand Jury Report No. 0101
Mt. Diablo Health Care District
FINDINGS
1. Currently, Mt. Diablo Health Care District does not operate any health care facility nor
provide assistance in the operation of health facilities nor any other medical services to its
constituents.
Response: Partially disagree. It is the Board of Supervisors' understanding that although the
District Board of Directors no longer operates the Mt. Diablo Medical Center, it still
maintains administrative and fiduciary responsibilities for the Community Benefit
Corporation, and represents the District's residents on the Muir/Diablo Health System Board
of Directors.
2. In the Community Benefit Agreement, Mt. Diablo Health Care District has limited identified
duties. These are:
a. To perpetuate itself as the body to reclaim the assets the District transferred in the
merger, should that merger fail.
b. To approve payments from two small pension funds to former District employees even
though the merged System processes requests and payments.
c. To nominate five members to the board of the John Muir-Mt. Diablo Community Health
Benefit Corporation. With only one exception, the District Board has nominated its own
members.
d. To accept or reject, but not nominate, half of the sixteen John Muir-Mt. Diablo Health
System Directors; the eight required to reside or have their principal place of business
within the District boundaries. No rejections have been exercised to date.
Response: N/A. Because the Board of Supervisors does not govern the District, the Board is
not directly knowledgeable about these findings.
3. Mt. Diablo Health Care District Board members are compensated with a $100 stipend for
each Board or Committee meeting they attend up to a maximum of $500 each month. Board
member stipend compensation in 1999 averaged $3160 per member.
Response: N/A. Because the Board of Supervisors does not govern the District, the Board is
not directly knowledgeable about this finding.
4. After 12 years of service on the Mt. Diablo Health Care District Board, the Directors become
entitled to lifetime post retirement benefits: medical, dental and life insurance funded out of
the District's tax revenues. As of this writing, all current Board members will qualify for these
lifetime benefits which had an annual cost of $70,205 (1999 audit report).
Response: N/A. Because the Board of Supervisors does not govern the District, the Board is
not directly knowledgeable about this finding.
5. The following financial statistics were included in the Mt. Diablo Health Care District's
calendar year 1999 audit report performed by Brokstein & Rosen, Certified Public
Accountants, Walnut Creek, CA.
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July 17, 2001 Page 2
Income 1999
$137,910 From property taxes
11,838 Interest on reserves
25,000 Annual subsidy from the John Muir-Mt. Diablo
Health System
$174,748 Total Income
Distribution of Funds 1999
$112,509 Board Operating
Expense
10,000 Community Support
142 Miscellaneous
$122,651 Total Expenditures
52,097 Cash and Reserves
$174,748 Total Distribution
Response: NIA. Because the Board of Supervisors does not govern the District, the Board is
not directly knowledgeable about this finding.
6. Board elections are held every two years and the District is responsible for the associated
costs. There was no election in 1999 and, therefore, no election costs. In 1998, election
costs were $53,474. In 1999, even without election costs, money spent to maintain Mt.
Diablo Health Care District Board of Directors was 91.7% of the total expenditures.
Expenditures made to maintain the Board include office expense, professional fees, stipends,
travel, health and life insurance, and retirement.
Response: NIA. Because the Board of Supervisors does not govern the District, the Board is
not directly knowledgeable about this finding.
7. At year-end 1999, the financial assets of Mt. Diablo Health Care District were $437,568 of
which $199,396 were reserves for Board members' post retirement benefits.
Response: NIA. Because the Board of Supervisors does not govern the District, the Board is
not directly knowledgeable about this finding.
8. Mt. Diablo Health Care District Board has established contact with Los Medanos Community
Hospital District and West County Health Care District. A joint Powers Agreement "to
develop regional health education and planning programs" has been discussed. No
conclusive actions on this initiative have been taken.
Response: NIA. Because the Board of Supervisors does not govern the District, the Board is
not directly knowledgeable about this finding.
9. According to Government Code, dissolution of the Mt. Diablo Health Care District is subject
to approval of the Local Agency Formation Commission of Contra Costa County (LAFCO).
Application for LAFCO approval can be made either by a resolution adopted by an affected
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July 17, 2001 Page 3
agency, which would include the County, or by a petition signed by a requisite number of
residents of the District.
Response: Partially disagree. According to the Government Code, dissolution of the Mt.
Diablo Health Care District is subject to both LAFCo and voter approval.
10.California Government Code sections 57450 and 57451 address the effects of the
dissolution of a special district such as Mt. Diablo Health Care District. Upon dissolution,
the successor agency would be the city in the affected area whose assessed valuation is the
greatest. Based on Fiscal Year 2000 Assessors rolls, the City of Concord would become that
agency and would assume all the duties and contractual obligations of the District. LAFCO
could impose conditions. Dissolution will require an election to get the approval of the
constituents of the District.
Response: N/A. Because the Board of Supervisors does not govern the District, the Board is
not directly knowledgeable about this finding.
11.When the Mt. Diablo Health Care District is dissolved, taxes would not necessarily be
reduced. That portion of tax revenues allocated to the District would be distributed over the
County ad valorem expenditures.
Response: Partially disagree. It is the Board of Supervisors understanding that LAFCo may
impose conditions, one possibly being that provisions for long-term financial obligations of
the District be satisfied from the tax revenues allocated to the District.
CONCLUSIONS
1. The Mt. Diablo Health Care District receives property taxes, which are largely used to
support the expense of the District Directors and their current and retirement benefits.
2. With little success, Mt. Diablo Health Care District Directors have been searching since the
merger for some tangible health related activity to perform. The community health services
they are considering are already being provided by other organizations such as: The John
Muir-Mt. Diablo Community Health Benefit Corporation, The John Muir-Mt. Diablo Health
Network and the Community Health Institute.
3. The original purpose of Mt. Diablo Health Care District of providing and operating a
hospital is no longer justification for continuation of the District.
4. Substantial financial resources intended for health related activities are not being utilized for
these activities.
RECOMMENDATIONS
The 2000-2001 Contra Costa County Grand Jury recommends that:
1. Mt. Diablo Health Care District be dissolved.
Response. N/A. Dissolution of the District is a matter of public policy that is the
jurisdiction of the elected representatives of the affected residents.
2. Dissolution of Mt. Diablo Health Care District be initiated by each of the following: Board of
Directors of the Mt. Diablo Health Care District; Contra Costa County Board of Supervisors,
and Local Agency Formation Commission of Contra Costa County.
Response: Will not be implemented. The Mt. Diablo Health Care District was sustained
through the merger with John Muir Medical Center to provide the District residents a voice
in the planning and decisions related to community health services affecting them. The
Board of Supervisors believes that it is in the best interest of the District residents and the
County to not initiate action at this time to dissolve the District, since such action could
jeopardize sensitive negotiations on the proposed closure of the Mt. Diablo Obstetrics Unit.
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