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HomeMy WebLinkAboutMinutes-01-18-64-Regular Meeting1921 MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY JANUARY 18TH, 1964 The City Council of the City of Downey held a regular adjourned meeting in the Council Chamber of the Downey City Hall at 8:00 A.M., January 18, 1964, Mayor Stephen G. Skinner, Jr. presiding. PRESENT: COUNCILMEN: Temple, Morton, Dickerson, Corbin, Skinner ALSO PRESENT: Oren L. King, City Manager A. C. Gabriel, Director of Finance Della Doyle, City Clerk Reverend Rodney Cogswell gave the invocation. The City Manager presented the following resolutions: RESOLUTION NO. 1320 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNEY ORDERING THE CITY ENGINEER TO MAKE AND DELIVER TO THE STREET SUPERINTENDENT A DIAGRAM OF THE ACQUISITION AND OF THE PROPERTY WITHIN THE ASSESSMENT DISTRICT DESCRIBED IN ORDINANCE NO. 165 OF THE CITY OF DOWNEY It was moved by Councilman Morton, seconded by Councilman Temple and so ordered that further reading be waived. It was moved by Councilman Temple, seconded by Councilman Morton and passed by the following vote that Resolution No. 1320 be adopted. AYES: 5 Councilmen: Temple, Morton, Dickerson, Corbin, Skinner NOES: 0 ABSENT: 0 RESOLUTION NO. 1321 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF DOWNET DETERMINING THAT A PORTION OF THE COST AND EXPENSES FOR VEHICLE PARKING DISTRICT NO. 1 SHALL BE PAID BY THE CITY (AD 66) It was moved by Councilman Corbin, seconded by Councilman Temple and so ordered that further reading be waived. It was moved by Councilman Corbin, seconded by Councilman Dickerson and passed by the following vote that Resolution No. 1321 be adopted. AYES: 5 Councilmen: Temple, Morton, Dickerson, Corbin, Skinner NOES: 0 ABSENT: 0 The meeting was opened for discussion on the Downey Community Hospital. The Mayor asked Mr. Ross Garrett of the Garrett Organization to further analyze the Feasibility Report %h ich he had previously submitted. This Feasibility Report included the three principal methods of financing the hospital as General Obligation Bonds, Revenue Bonds and a Leaseback arrange- ment. The General Obligation Bonds would require a 2/3 vote. Revenue Bonds would require a majority vote and through certain procedures proved by the Council, Minutes 1/18/64 (adj.) -1- 1q22 State Statutes a leaseback arrangement may be set forth which would not require a vote of the people, providing all of the requirements as set forth under the statutes are complied with, such as the establishment of a Hospital Development Commission which would have power to issue the bonds to build the hospital and lease it back to the City. The City, in turn, would lend its credit to this type of financing through the lease - purchase arrangement. Mr. Garrett's recommendation on Page 58 and 59 of the Feasibility Report dated January 8, 1964, set forth the following: "That a Downey Community Hospital Development Commission, representative of the City of Downey government and the 15- member governing board of the Downey Community Hospital Foundation, be officially established. "That the Hospital Commission produce, with the aid of professional consultation and assistance, a Hospital Development Program, consist- ent with the Findings of this Feasibility Report. "That the PROGRAM be put together with the intent of making its pro- visions, plans and ways and means of total accomplishment definitively known to the people of Downey so that, at an election in May or June (six months after the October 29, 1963, election) a completely informed electorate can again express itself with knowledge of the assurances regarding non -use of tax money, which this feasibility report and enactment of a program based upon it make possible. "That in the public information campaign preceding the election, it be made crystal clear what the difference is between the general obligation bond way and the type of "finance" bond way described in this report . . . that non - recourse to taxes is assured in either instance, pay - ment being "assured" by revenues from hospital users in either instance and the role of the City being that of "guarantor" in order to secure tax - exempt status for bonds and lower interest cost as a result. "That the Program, when developed, provides for: An Agreement for the Downey Community Hospital Foundation to: a - renewably sub -lease the completed hospital from the City of Downey for operation by the Downey Community Hospital Foundation, at no expense to the City of Downey, and to pay to the City of Downey rentals required for the City of Downey to pay in full the bond retirement payment; b - as consideration, provide the site, except for the unpaid balance which will become payable from bond proceeds, and c - provide and /or advance to the Commission . . for repayment if or when bond sale proceeds exist . . . the funds for the functioning of the Commission in obtaining the neces- sary professional assistance . . . . . consultants, architects, engineers, program developers . . . and for the payment of public information costs such as advertis- ing, mailing, printing, and for administrative expenses of .� the Commission in the accomplishment of its purpose. "That the Program, when developed, if the Lease - Finance method is chosen, also arrange for the incorporation of a Non - profit Corporation . . . . . The DOWNEY COMMUNITY HOSPITAL FACILITY CORPORATION . . with the minimum number of directors who shall also be identified with the desires of the Commission. This Non - profit Corporation would be formed to acquire (hold) the land, build and equip the hospital and in turn, lease same to the City for sub -lease to the Downey Community Hospital Foundation. By agreement, the Facility Corporation would make the Development Council Minutes 1/18/64 (adj.) -2- 1923 Commission its planning and functional arm until completion of the project and assumption of operation by the Foundation under its sub - lease. "That, in the development of the Program, consideration be given to utilization of the existing Downey Community Hospital plant as minimal nursing care, long term care, convalescent and "nursing home' adjunct of the new acute care general hospital. "These recommendations, we sincerely believe, meet the test of what the majority of the using citizens of the present and the foreseeable future, the majority of the men who make up and will continue to be the hospital's medical staff, and the men who will become its medical staff in the future will wish had been authorized to be started by those in authority back in 1964 . . . looking back from 1970 - 1975 - 1980 - 1985 - and even the year 2000 "In keeping with a policy to never make recommendations which it is unwilling to help see through to successful enactment, The Garrett Organization stands ready to provide the required technical assistance to attain this end -- to develop immediately the defini- tive master program and carry it into enactment in conjunction with a program of public information and public acceptance." Further discussion took place from Maurice McAllister„ Al Springer, John Dennis, Reverend Cogswell, Mary Hollis, Irvin Phelan, Bill Wilson, among others speaking in favor of the City Council's supporting a Downey Community Hospital and setting the plan into action in accordance with the Garrett recommendations. It was recommended by Mr. Mcallister that the City Council proceed with the Lease - Purchase arrangement and submit the proposition later to the people. Those speaking in opposition included Mr. Robert Garstang and Mr. Garo who were primarily opposed to proceeding with construction of a hospital without a vote of the people, or without more definite assurance that no general fund monies would be needed; that the payment for the principal, interest and expenses would come solely from revenues of the hospital. Mr. Garo indicated his preference for the City to run the Hospital. After a thorough discussion on the pro's and con's relative to the need for another election, the possibility of putting two issues on the ballot: one which would require the 2/3 vote for a General Obligation Bond, the other requiring only a majority vote, authorizing the Council to issue an accepted form of Revenue Lease -Back type of tax free bonds. The City Council set forth a program of action as follows: It was moved by Councilman Temple, seconded by Councilman Morton and passed by the following vote that if and when the City of Downey is obligated to finance a hospital, it is the intent to enter into a lease agreement with the Downey Community Hospital Foundation for the operation of the said hospital. AYES: 5 Councilmen: Temple, Morton, Dickerson, Corbin, Skinner NOES: 0 ABSENT: 0 .--. It was unanimously agreed that the City Attorney would prepare a resolu- tion setting forth the Council's support of the hospital. The City Council also requested the City Attorney to give his opinion on the various manners in which the above mentioned bond propositions could be put on the ballot relative to the various types of financing. In accordance with suggestions from members of the Hospital Foundation, it was further agreed to have the City Attorney prepare a draft of a formal agreement between the Hospital Board and the City of Downey, setting forth the part and contribution the Council Minutes 1/18/64 (adj.) -3- Downey Community Hospital would contribute, as well as the actual agreement for the City of Downey to contract with the Downey Community Hospital for the operation of the hospital if the financing was completed. In conclusion the members of the City Council concurred with members of the Downey Hospital Foundation in the recommendation of Mr. Garrett ^� relative to the appointment of a Downey Community Hospital Development Commission in order to establish provisions, plans, ways and means in the progressive accomplishment of a 150 -bed hospital for the City of Downey. It seemed to be generally agreed by those present that Mr. Garrett's sug- gestion that a membership of 15 be accepted for the Hospital Development Commission, to be appointed by the members of the Hospital Foundation and the City Council. r-. The meeting was adjourned by the Mayor at 10:45 A.M. to 7:30 P.M., Monday, January 27, 1964, in the Council Chamber of the Downey City Hall. r City Cler,)c Mayor Council Minutes 1/18/64 (adj.) -4- A. 24