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04/18/1990UNAPPROVED CLEARWATER HEALTH FACILITIES AUTHORITY April 18, 1990 The City of Clearwater Health Facilities Authority met in regular session in the Mayor's Conference Room, City Hall, on Wednesday, April 18, 1990. The following members were present: C. J. Wollett, Chairman George Bouse, Vice-Chairman Frank George, Jr. Ruth Condon Florence Hosch Also present: Emil C. Marquardt, Attorney for Morton Plant Hospital Glen Hubbard, Morton Plant Hospital Rose and Lloyd Moore Marcia Vivian, Osceola Inn Bill Goodwin, Citizens Advisory Board, Drew Gardens Bill Cantlin, Accounting Manager, City Michael Wright, Assistant City Manager/Community Services Mary K. Diana, Assistant City Clerk The meeting was called to order at 4:30 P.M. by the Chairman. He presented the minutes of the regular meeting of April 26, 1989 and the special meeting of March 2, 1990, which had been mailed to the members of the Authority. Mrs. Hosch moved to approve the minutes of April 26, 1990 as submitted and the minutes of March 2, 1990 as corrected by the Secretary. The motion was duly seconded and carried unanimously. The next meeting of the Authority was scheduled for April 17, 1991 at 4:30 P.M. Attorney Marquardt stated the Pinellas County Health Authority is a very active board and he indicated they would be pleased to share their policies in regard to application fees, indigent care fees, etc. with the Authority. He indicated, if a proposed project is within the boundaries of a municipality that has a health authority, the County does not get involved. Chairman Wollett stated guidelines similar to the County's had been recently adopted except that the indigent care fee is to go to the County rather than to the City. Bill Cantlin, Accounting Manager, stated a $175 annual registration fee is now required for special districts and he indicated complex regulations are down the road. Glen Hubbard, Morton Plant Hospital, gave a report and distributed a listing of potential projects for the next five years. He indicated relocation of the Womens Center/Psychiatric Hospital and renovations to the Cardiology/Nuclear Medicine are ongoing. In response to a question, it was indicated the psychiatric facility will have 68 beds and the Women's Center approximately 40 beds. He said it has been a long time since any major construction project has been done to house patient beds. He indicated the hospital has been efficiently operated and receives community support through the Foundation. In response to a question, it was indicated R/NC Replacement refers to the 126-bed nursing home located on the south side of Pinellas Street and Fort Harrison Avenue which is a very old facility. It is hoped it can be replaced in the near future; however, there have been problems with the zoning and HRS regulations. Mr. Hubbard indicated a multi-level building is being proposed that will connect the Barnard Building with the new Women's Center and will house ancillary services. In response to a question, it was indicated the Women's Center is anticipated to be completed around October with occupancy around the beginning of the year. Discussion ensued in regard to the National Healthplex application for the acquisition of Drew Village Nursing Center and the rating of the bonds to be issued. Bill Goodwin, Citizens Advisory Board, Drew Gardens, indicated the bonds would be privately placed with credit worthy investors. Chairman Wollett stated the bond counsel for the applicant would be requesting a signed letter from the investors certifying they know the risks involved thereby relieving the Authority of any obligations. Concern was expressed regarding default of the bonds triggering additional disclosure requirements for the Authority which may also apply to the City of Clearwater. Assistant City Manager Michael Wright arrived at 5:20 p.m. Reference was made to the article in the "The Bond Buyer" regarding transactions that involve 501(3)(c) organizations. Concerns were expressed regarding the difference in the amounts of the current issue and the new issue, why CMS is selling the facility after owning it for just a short period of time and National Healthplex's ability to pay for the bonds. Mr. Goodwin stated the current debt service is approximately $600,000 and there is money available in the operational funds of the facility. In response to questions, it was indicated the cost of operation would be slightly higher than the current cost and this bond issue would pay off the previous one. Discussion ensued in regard to an appraisal not being done, and it was indicated one would be available in approximately two weeks. It was indicated the facility has an approximate two year service reserve of $1,200,000. In response to a question, it was indicated a flat per diem charge is received for Medicaid patients. Concerns were also expressed regarding the application not being for a new facility, a for-profit organization selling to a not-for-profit organization and cross collateralization with other facilities not located in this area. The Chairman said he would forward the Authority's concerns to the seller and buyer. He indicated the Authority was not totally satisfied with the financial advisor's report and he indicated an appraisal of the property needs to be done and more information obtained. Mrs. Hosch nominated C. J. Wollett as Chairman and George Bouse as Vice-Chairman of the Clearwater Health Facilities Authority for 1990. The motion was duly seconded and carried unanimously. Mr. George nominated Florence Hosch as Secretary/Treasurer and Ruth Condon as Assistant Secretary/Treasurer of the Clearwater Health Facilities Authority for 1990. The motion was duly seconded and carried unanimously. In regard to the special district registration fee, Mr. Wollett felt it would be appropriate for the City of Clearwater to pay this fee. The meeting adjourned at 6:10 p.m.