10/09/1989 Meeting (2) - Laserfiche WebLink

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