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<br />e corporation from the city, to provide citizens with adequate access to <br /> medical and hospital facilities. The authority is allowed to acquire, lease, <br /> own or ~ll medical-related facilities, or issue debt to support the <br /> establishment of hospitals or equipment acquisition, but is not authorized to <br />.- operate hospitals. Essentially, the process is what is known as conduit <br /> financing, with the authority being capable of issuing tax-exempt debt with. <br /> the credit of the issue based~on the applicant. <br /> .. <br /> State statute requires the council to consider and take formal action on a <br /> written petition received September 13, 1989, to form such a hospit~l <br /> facil ity authority. ~',' <br /> The proposed ordinance to create the Eugene Hospital Authority has been <br /> revised to allow the expansion of the field of applicants and includes the <br /> definitions of the types of facilities that would qualify as applicants. The <br /> proposed board must consist of a minimum of five members, at least one of <br /> which must be an elected official. The board would initially consist of <br /> Mayor Miller and councilors Bennett, Boles, Green, and Holmer. The powers of <br /> the authority would not include the ability to levy a property tax. A 11 debt <br /> issues would be revenue supported. Restrictions include that the facilities <br /> are within the corporate limits of the City of Eugene, that there is a <br /> demonstrated medical need for the facilities, and that the rating of the bond <br /> issue be investment grade (an A-rating is recommended). Additionally, staff <br /> recommended requiring a feasibility study, to be performed by the applicant's <br /> staff or a nationally recognized firm, and audited financial statements from <br />e the applicant. <br /> All costs incurred in operating the authority. staff, consultants, annual <br /> audit, etc., will be recovered from the benefiting parties. <br /> Referring to language in the proposed ordinance, Mr. Holmer asked if the word <br /> "recitals" was the same as "findings." <br /> Keith Martin, City Attorney's Office, explained that a recital is intended to <br /> recite the procedures to date in compliance with the predicates established <br /> in the ORS, in order to show that ORS procedure has been followed. <br /> Mr. Holmer asked whether the Board of Directors as described in Section 4 (4) <br /> could include members of the EWEB Board of Directors as elected officials of <br /> the City of Eugene. Mr. Martin responded that the intent was for the Mayor <br /> and City Council to be represented on the board. <br /> Referring to Section 5 (2)(d)(i), Mr. Holmer asked why the City Manager, as <br /> chief executive officer of the hospital authority, would be authorized to <br /> find the feasibility study acceptable. Mr. Martin replied that the intent <br /> was to reduce the volume of words in the ordinance and while the CEO would <br /> establish standards for a feasibility study, the board would have the final <br /> say on the study's acceptability. He emphasized that what was being <br /> addressed was the initial presentation of a feasibility study and if the <br /> staff could not recommend a proposed project because of a faulty feasibility <br /> study (one that fails to meet the standard presented by the executive <br />- MINUTES--Eugene City Council October 9, 1989 Page 2 <br />