HomeMy WebLinkAboutAgenda Statement 1986/08/19 Item 13 COUNCIL AGENDA STATEMENT
Item 13
Meeting Date 8-19-86
ITEM TITLE Resolution/ l- Amending FY 1986-87 Budget to Pay for
Professional Services Related to City's Reversionary Interest in
Bay Hospital
SUBMITTED BY City Manager'
4/5 Vote: Yes X No
At its August 12, 1986 meeting, the City Council was informed that staff had begun
deliberations with representatives from Scripps Hospital regarding the value of
the City's reversionary interest in Bay Hospital . Further, Council was informed
that staff might request a supplemental budget appropriation to cover
unanticipated costs for legal , appraisal and/or other consulting services required
for these negotiations.
RECOMMENDATION
That the City Council amend the Fiscal Year 1986-87 budget in the amount of $8,000
to cover costs for legal , appraisal and/or other consulting services required for
negotiations with Scripps Hospital .
BOARDS/COMMISSIONS RECOMMENDATION: N.A.
DISCUSSION
To date staff has contracted with Mr. Knox Bell , an attorney with Gray, Cary, Ames
and Frye, to assist staff in negotiations with Scripps Hospital over the value of
the City's reversionary interest in Bay Hospital . Mr. Bell 's assistance provides
staff with much needed expertise in the area of hospital acquisitions and
valuation of reversionary interests. The following are representative of Mr.
Bell 's hospital acquisition experience.
Villa View Community Hospital affiliation with Baptist Hospital
of Phoenix (1986)
Green Hospital of Scripps Clinic lease of Hospital Facilities and
transfer of Hospital Business to Hospital Corporation of America
(1985)
Loma Linda Community Hospital sale to Loma Linda University
Medical Center (1985)
Doctors Hospital (Cabrillo) sale to Sharp Hospital (1982)
Hartland Hospital sale to Kaiser Permanente (1979)
Item 13 ,Page 2
Meeting Date 8-19-86
Mr. Bell 's expertise will ensure that all potential ramifications of the Scripps
offer to purchase Bay Hospital and the City's reversionary right in that hospital
are fully examined.
Further, it is anticipated that additional expertise may also be required during
the negotiations with Scripps for appraisal services and/or further valuation of
the City's reversionary interest. These services, if necessary, will be used to
ensure that the City Council receives sufficient information to make an informed
decision with regard to the sale of the City's reversionary interest.
FISCAL IMPACT
Appropriate $8,000 from the unappropriated balance of the General Fund.
suppbud
by the City Coun'+l of
Chula Vista, California ,
Dated (1. //y. /41?/ /(0;