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HomeMy WebLinkAboutMinutes - 07-18-00 - Adjourned w CDC 013530 MINUTES OF THE CITY COUNCIL /COMMUNITY DEVELOPMENT COMMISSION OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING JULY 18, 2000 The City Council/Community Development Commission of the City of Downey held an regular g adjourned ular meeting at 6:05 p.m., July 18, 2000, in the Council Chamber of the Downey City Hall, Mayor Keith McCarthy presiding. as II PRESENT: Council Members: Keith McCarthy Mayor /Chairman Robert C. Winningham Mayor Pro Tem/Vice- Chairman Meredith H. Perkins Gary P. McCaughan, M.D. Barbara J. Riley ALSO PRESENT: Gerald Caton, City Manager Charles Vose, City Attorney Lee Powell, Assistant City Manager Dana Levitt, Special Legal Counsel Jonathan Gluck, Special Legal Counsel Judith McDonnell, City Clerk RECEIVE PUBLIC INPUT AND CONSIDER A SETTLEMENT OF THE LAWSUIT WITH THE DOWNEY COMMUNITY HOSPITAL Mayor /Chairman McCarthy announced the purpose of the meeting, and asked the City Attorney to provide a brief introduction of this matter and to then introduce special legal counsel to make a presentation. Following that, the Council will take comments from the audience. Mr. Vose commented on the litigation between the City and the Downey Community Hospital, which arose because of a dispute regarding the City's interest and participation in the Hospital. The law firm of Alschuler, Grossman, Stein & Kahan, was retained to handle the litigation on behalf of the City and its interpretation of the 1983 lease and the rights of the City in connection with that lease. He introduced Mr. Dana Levitt, special legal counsel. Mr. Levitt explained his firm was retained to aggressively advance the City's position in the litigation pending against the Hospital. He gave an overview of the City's lawsuit with the Hospital, citing the City's position that its representatives, the City Council and City Manager, be entitled, as ex- officio (non- voting) members, to attend special and executive sessions of the Hospital board of directors and health services board and to participate in substantive decisions that affect the operations of the Hospital. He also discussed the extensive document discovery that was undertaken by his firm and commented on other elements of the case. Mr. Levitt reviewed the mediation process that took place under a court- appointed mediator, Armand Arabian, and pointed out that some of the provisions of the settlement agreement would probably not have been approved if the case had gone to City Council /Community Dev. Comm. Minutes 7/18/00 (Adj .) -1- os Sant litigation. He then reviewed the terms of the settlement agreement, which has been submitted to h g of the Council for consideration. Mayor /Chairman McCarthy asked if there was anyone present to speak regarding the proposed settlement with Downey Community Hospital. Jim Derry, 7845 Fourth Street, Acting Director of Corporate Communications for Downey Regional Medical Center, offered his support of the proposal and looks forward to working with the City in the future. Betty Ferraro, 7605 Second Street, requested clarification of the enforcement mechanism, which was responded to by Mr. Levitt. Diane Boggs, 10568 Chaney Avenue, mentioned the issues involving the Hospital have had a great impact on the community and users of the Hospital and feels the proposed settlement will benefit the entire community, be a great savings to both the City and the Hospital, and will create a feeling of openness and dialogue between the concerned citizens of the community and the Hospital. Dr. Verner Waite, resident of the City of Cypress, former member of the Hospital Board of Directors, commented on a loan made by the Hospital, which was not intended to be repaid and referred to a memorandum of understanding that states all loans were to be forgiven. He felt with the proposed settlement agreement and the attendance of Council Members at Hospital board meetings, these situations will not occur again. He stressed the issue is honesty. ORAL COMMUNICATIONS: None RECESS TO CLOSED SESSION Mayor /Chairman McCarthy announced the Council /Commission is recessing to Closed Session (7:08p.m.) to discuss the following Section of the Government Code: Section 54956.9 - Subdivision (a) — Conference with legal counsel — existing litigation: Downey Community Hospital Foundation vs. City of Downey. The meeting reconvened in open session at 8:20 p.m. with all Council Members/ - Commissioners present. There were no Closed Session actions to report. SETTLEMENT OF THE LAWSUIT WITH DOWNEY COMMUNITY HOSPITAL FOUNDATION It was moved Council Member /Commissioner Perkins, seconded by Council Member/ - Commissioner Winningham, and unanimously carried to approve the settlement. Prior to the vote, the Council Members /Commissioners made the following comments: Council Member /Commissioner Winningham concurred with Dr. Waite and indicated he was encouraged by the progress between the Hospital and the City, noting one of the key points is that the City Council/Community Dev. Comm. Minutes 7/18/00 (Adj.) -2- 013532 problems will cease if the Council is in attendance at the Hospital board meetings. He feels to make the agreement work will take interaction on the part of the Council and the Hospital for the best interests of the community, and he looks forward to working with the Hospital board. Also, the Hospital needs to be more open in its communications, and one of the key points of the agreement is the Hospital represents that all material business decisions and financial transactions concerning the Hospital shall be before the board of directors. Council Member /Commissioner Riley mentioned studying this matter at great length and commented on the City's inability to solve the issues that have been brought forth in recent years. She noted this settlement provides the opportunity for Council to attend the Hospital board meetings and to have the informational packets delivered to their homes for review prior to the meetings. Financial statements will be made available. There is a provision for arbitration if the conditions are not met. It is her hope the Hospital will decide to spend $100,000 and be able to communicate with the Downey Paramedics. Council Member /Commissioner McCaughan expressed some concerns regarding the settlement but emphasized the City and the Hospital need each other. He pointed out this is a test of trust and an opportunity for future cooperation. The settlement places the Council and the Hospital Commission in a position to continue their good work and seal the relationship between the Hospital, the City and the public and to move forward in a positive direction toward the future. Council Member /Commissioner Perkins commented on the need for trust and cooperation and feels the Hospital Commission has done an outstanding job. He pointed out there were questions of the Commission that were not answered and hopes this settlement will provide the vehicle to ask questions and if answers are not provided within 60 days then it can go to arbitration. He favored keeping the Commission involved, noting they have been the liaison between the Hospital and the Council. He commented on the settlement negotiations, which culminated in the final settlement, noting it contains provisions that might not have been granted had this matter gone to litigation. He also stressed the importance of trust. Mayor /Chairman McCarthy explained that the settlement will give the City the tools and means to achieve a better relationship, be better informed and to work more cooperatively with the Hospital and its board. He believes that upon achieving settlement, the City and Hospital can focus on the respective issues at hand to provide a better, healthier and safer community. ADJOURNMENT: 8:40 p.m. The meeting was adjourned to 6:30 p.m., July 25, 2000, in the Council Chamber of Downey City Hall. • z / Judith E. McDonnell, City Clerk/Secretary � y Keith McCarthy, Mayor / Chairman 1 H:\ CCLERK \JMCDONNE\MINUTES \CC- CDC7 -18aj . WPD City Council /Community Dev. Comm. Minutes 7/18/00 (Adj.) -3-