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09/09/1985r CLEARWATER HEALTH FACILITIES AUTHORITY September 9, 1985 The City of Clearwater Health Facilities Authority met in special session in the Mayor's Conference Room, City Hall on Monday, September 9, 1985. The following members were present: C. J. Wollett George Bouse, Jr Frank George, Jr Florence Hosch Absent: Ruth Condon Also present were: Chairman Vice - Chairman Emil C. Marquardt, Attorney for Morton Plant Hospital Jerry Neal (M. P. H.) Glen Hubbard (M. P. H.) Duane Houtz (M. P. H.) Spencer Kisby (M. P. H.) Bill Cantlin, Chief Accountant, City of Clearwater Frank X. Kowalski, Acting City Attorney Cynthia E. Goudeau, City Clerk The meeting was called to order at 4 :00 p.m. by Chairman C. J. Wollett. He presented the minutes of the April 17, 1985, meeting which had been mailed to the members of the Authority. Upon hearing no corrections or additions, he declared the minutes approved. The purpose of this meeting is to consider a Resolution authorizing the issuance by the Authority of not exceeding $40,000,000.00 of Hospital Revenue bonds, Series 1985, Morton Plant Hospital Project. Attorney Marquardt stated the Treasury II Bill will eliminate tax - exempt bonds for not for profit organizations after December 31, 1985. They are requesting the Resolution be adopted to start a 60 day time frame for validation. The projects proposed to be funded by this bond issue were reviewed. They are as follows: ITEMS REQUIRING A CERTIFICATE OF NEED: 40 BED REHABILITATION FACILITY $ 6,026 1000 CAR PARKING GARAGE 5,380 REPLACEMENT OF HOSPITAL COMPUTER SYSTEM 5,203 NORTH WITT ADDITION & SAME DAY SURGERY CENTER 5,370 - ADLER LABORATORY 2,735 MAGNETIC RESONANCE IMAGING CENTER 2,302 27,016 ITEMS NOT REQUIRING A CERTIFICATE OF NEED: FIRE ALARM SYSTEM RENOVATIONS 721 COMPREHENSIVE OUTPATIENT REHABILITATION FACILITY 700 CARDIOVASCULAR CATH LAB CONSTRUCTION & RELOCATION 450 OBSTETRICS BED CAPACITY ADDITION 400 AUTOPSY ROOM & LAB REMODELING 397 OUTPATIENT DIAGNOSTIC FACILITY 561 3,229 ESTIMATED ANNUAL RENOVATION EXPENDITURES (THREE YEARS) 6,000 LAND ACQUISITIONS 1,615 TOTAL PROJECT DEMAND $37,860 Those projects requiring a certificate of need have said certi- ficates. It was stated some of the projects are completed and some are currently under construction. Chairman Wollett reiterated that one - third of the bond issues are to arrange better financing for monies already spent which is allowed by law. All projects have been approved by the various Morton Plant Hospital Boards. A smaller issue, which was approved several years ago, has been paid off. Mrs. Hosch questioned what responsibility the City would have if the bonds are defaulted. The response was the City would not be liable for any monies. Chairman Wollett questioned, with admissions decreasing, stays shortened and Medicare payments down, whether or not these projects are necessary. It was stated in order to stay competitive with other health facilities in the area, these projects are needed. Spencer Kisby stated that the overall thrust in health care is away from in- patient care. Four of the projects proposed are for out - patient treatment. The need for $40,000,000 in bonds was questioned when the listed projects show a cost of $37,860,000. In response it was stated that a debt service reserve is needed and that the actual bonds should probably be $45,000,000. Mrs. Hosch questioned why the Authority should approve this. In response, it was stated that Morton Plant Hospital does serve mainly Clearwater reesidents; and that if this is not approved now, money will be more expensive to borrow and therefore, rates would have to go up. It was stated that Morton Plant cares for indigents in the area. Mr. Bouse moved to adopt the Clearwater Health Facilities Authority Resolution No. 85 -1, modifying the amount of the bonds to $45,000,000 subject to page two being amended to list the approved projects. The notion was duly seconded and carried unanimously. The next meeting was set for September 23, 1985 at 4:30 p.m. The meeting adjourned at 4:57 p.m.