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<br /> e Holmer both favored a board comprising at least five councilors. They <br /> pointed out that the board can easily solicit advice from the larger <br /> community. <br /> Ms. Ehrman expressed reservations about including only councilors on the <br /> Board of Directors. She said that while councilors may understand the <br /> separation between their roles on the board and their roles on the City <br /> Council, members of the community may not. Community members may mistakenly <br /> assume that councilors have power over hospital practices. Ms. Ehrman also <br /> thought that it would be valuable to have community members serve on the <br /> board. <br /> In response to a question, Mr. Wong said staff recommends that the authority <br /> be limited to acute care facilities because the default rate on non-acute <br /> care facilities is higher than for acute care facilities. He said staff <br /> believes that the council should limit the scope of the authority initially, <br /> expanding the scope later if desired. Mr. Gleason added that by limiting the <br /> scope of the authority to acute care facilities, the risk that an applicant <br /> would default and create a secondary credit risk for the City is <br /> substantially reduced. <br /> Mr. Bennett asked whether debts could be issued for projects (e.g., parking <br /> structures) associated with acute care facilities. Mr. Gary said this type <br /> of project would be permissible--the definition of hospital facility is very <br /> broad and includes anything that is incidental to the provision of hospital <br /> services. <br /> e Mr. Holmer said that if applications were not limited to acute care <br /> facilities, the hospital authority could help meet the health care needs of <br /> Eugene's increasing population of senior citizens. <br /> Ms. Schue voiced concern about making a public contribution to an institution <br /> that does not offer all legal medical procedures to people who require them. <br /> Mr. Boles expressed concern that the hospital authority could issue debt for <br /> projects that are only indirectly related to the provision of health care. <br /> He said the council may want to consider restricting debt issuance to <br /> projects which are directly related to the provision of health care. <br /> Ms. Bascom moved, seconded by Ms. Schue, to direct staff to <br /> draft an ordinance establishing a hospital authority, with <br /> optional sections pertaining to the composition of the Board <br /> of Directors. <br /> Councilors agreed to hold another work session on this issue before holding a <br /> public hearing. Mr. Gleason cautioned that the council should not delay its <br /> action too long; Sacred Heart General Hospital has capital expansion and <br /> equipment acquisition plans and is hoping to secure tax exempt debt from the <br /> newly formed authority. <br /> The motion carried 7:0:1, with Mr. Rutan abstaining. <br /> e MINUTES--Eugene City Council September 13, 1989 Page 6 <br />