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League of Women Voters of California Education Fund
San Mateo County Libraries Voter Guide@SMCLibraries
November 7, 2017 — Local Elections
Distrito especial

Antelope Valley Health Care District
Measure H - Majority Approval Required

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Resultados electorales

Se aprueba

11,387 votos si (73.23%)

4,162 votos no (26.77%)

100% de distritos activos (82/82).

Shall the proposed lease and transfer of Antelope Valley Hospital by the elected Board of The Antelope Valley Health District to a public benefit non-profit corporation, pursuant to state law, for the continued operation of the Hospital as a non-profit and locally governed Hospital, with all revenues from the Hospital reinvested into improving the Hospital facilities, to improve medical technologies, treatments, and patient care without any new taxes or fees and at no additional cost to taxpayers, be adopted?

¿Qué es esta propuesta?

Información básica sobre la iniciativa de ley — Información oficial sobre esta iniciativa

Análisis del analista legislativo / Proposal

Mary C. Wickham, County Counsel

Approval of Measure H (“Measure”) would authorize the Board of Directors (“Board”) of Antelope Valley Healthcare District (“District”) to lease the Antelope Valley Hospital, located at 1600 West Avenue J, Lancaster, California 93534 (“Hospital”), to Antelope Valley Hospital, Inc. (“AVH, Inc.”), a nonprofit public benefit corporation, and to transfer and assign the ownership and control of specified assets used to operate the Hospital to AVH, Inc., including real and personal property and cash and accounts receivable. This Measure was placed on the ballot by Resolution No. 072617A of the Board (“Resolution”).

The lease will begin on the date this Measure is approved by the voters, and terminate after 30 years, on November 7, 2047, unless terminated sooner. Upon termination of the lease, AVH, Inc., shall surrender the Hospital, land, associated medical buildings, furniture, fixtures, equipment, furnishings, and other assets back to the District in good condition and useable, with normal wear and tear excepted, free and clear of all third-party property rights, liens, or other security interests.

The base rent for the Hospital is $8,500,000 per year, consisting of debt service on the District’s bonds in the amount of $7,900,000 annually plus other expenses of the District amounting to $600,000 annually. The District will receive administrative and secretarial services, office space and equipment for the duration of the lease. Based on an independent valuation report, the appraised market value range of the Hospital assets to be transferred and/or leased to AVH, Inc., is $168 million to $250 million and the cash funds and short-term securities to be transferred to AVH, Inc., total $139 million, according to the Resolution.

AVH, Inc., will be required to maintain any accreditation that is necessary for the operation of the premises as a nonprofit general acute-care hospital. AVH, Inc., shall maintain valid licenses and certification for participation in Medicare and Medi-Cal, and shall maintain any additional permits and governmental approvals necessary for the operation of the Hospital and its improvements.

The lease includes the Hospital, land, associated medical buildings, joint venture partnerships, furniture, fixtures, equipment, furnishings, and other assets. AVH, Inc., will be solely responsible for the Hospital’s expenses, including the repair, maintenance, and improvements, of the Hospital and the utilities needed for the operation of the Hospital. AVH, Inc., shall not assign, sublet, or transfer its interest in the lease or the Hospital without the District’s written permission.

At the time the lease commences, AVH, Inc., will assume and discharge the duties, liabilities, and obligations of the District. The duties, liabilities, and obligations include District contracts, collective bargaining agreements, and any unpaid real and personal property taxes. Employees at the Hospital will cease to be District employees upon commencement of the lease term.

This Measure requires a majority vote of the qualified voters in the District who cast votes in the election for passage.

Published Arguments — Arguments for and against the ballot measure

Argumento A FAVOR

Antelope Valley Hospital is our local hospital. Seniors, children and families benefit from access to quality care. Dedicated nurses and doctors serve our community, but the hospital has faced challenges from political turmoil and revolving-door management.

The Antelope Valley Healthcare District has decided to stabilize the hospital. With public input, Measure H was created to strengthen the board structure and management while adding additional community members to serve our community.

Passing Measure H keeps our hospital moving forward to best serve patients and the community. Here’s how:

- Take politics out of local healthcare. Decisions will be made by a nine-member nonprofit board, consisting of the existing District Board, hospital CEO and three additional community representatives including medical specialists, patient advocates, and experts in finance, budget and community services.

- Ensure money is spent to improve healthcare. All proceeds will be invested back into the community.

- Respect local nurses and doctors. Passing Measure H will help attract new physicians and support investments in nurse education/training. We can provide adequate staffing, wages, benefits, secure pensions, and a quality work environment to attract and maintain the best employees.

- No new (or increased) taxes, charges or fees. Measure H protects our community and improves Antelope Valley Hospital without new taxes or tax increases.

- Benefit the community. Experts studied Measure H concluding it’s good for nurses and doctors who work at the hospital, local emergency responders, patients and their families.

Your vote for Measure H stabilizes, strengthens and makes Antelope Valley Hospital better, now and in the future. Please join us and Vote Yes.

Learn more at AVMeasureH.org.

          DR. PRAMOD KADAMBI
          President of Medical Staff

          DR. MARK BROWN
          Medical Director of the Emergency Department

          KRISTINA HONG
          R.N., MICN

          MATEO OLIVAREZ
          R.N.

Argumento EN CONTRA

NO ARGUMENT AGAINST THIS MEASURE WAS SUBMITTED

Leer la legislación propuesta

Legislación propuesta

Exhibit A

RESOLUTION TO APPROVE ANTELOPE VALLEY HOSPITAL ASSET TRANSFER AGREEMENT AND HOSPITAL LEASE TO AFFILIATED NON PROFIT CORPORATION

The Board of Directors of the Antelope Valley Healthcare District does hereby resolve as follows:

WHEREAS, the Antelope Valley Health Care District (“District”) owns and operates Antelope Valley Hospital, a 420 bed acute care facility located at 1600 West Avenue J, Lancaster, California and other related ancillary and outpatient clinics and health care businesses and services incident to the operations thereof (collectively, the “Hospital”); and

WHEREAS, the District desires to transfer certain assets and operations of the Hospital to Antelope Valley Hospital, Inc., a newly created California nonprofit public benefit corporation (the “New Operator”), and to enter into a long-term lease with the New Operator for the real property associated with the Hospital for the purpose of furthering the District’s mission and assuring that quality health care services will continue to be provided to the District residents, with all revenues from the Hospital reinvested into improving hospital facilities, improved medical technologies, and improved patient care and treatment; and

WHEREAS, pursuant to Health & Safety Code Section 32121(p)(2), the Board of Directors have held five public meetings dedicated to discussing and receiving input on the proposed Hospital Asset Transfer Agreement and Hospital Lease (attached hereto as Exhibit 1 and Exhibit 2 respectively and thereby incorporated herein), along with all arrangements related thereto; and

WHEREAS, the Board of Directors and the community do not want to raise taxes or fees to achieve the above-stated objectives and desire to maintain local governance of the Hospital; and

WHEREAS, the Antelope Valley Healthcare District Board during its planning process has considered a wide-ranging number of potential operational models, and concluded that the public/private model was the optimal choice for meeting the above described objectives, and more particularly to create a larger and more stable governance structure to meet the demands of the rapidly evolving healthcare environment; and

WHEREAS, the District through its Board and management proceeded to draft and distribute for its five public meetings proposed Articles and Bylaws of the newly created Antelope Valley Hospital Inc., a California Nonprofit Public Benefit Corporation, intended to gain charitable exempt status as an IRS recognized 501 (c)(3) corporation, with a close affiliation with the District based on corporate membership, reserved District powers, the Lease, overlapping governance and management, to be operated based on state law and regulations applicable to a private nonprofit community hospital; and

WHEREAS, as a result of these deliberations and the conduct of at least five public input study sessions on the proposed Hospital Asset Transfer Agreement and Hospital Lease, the District has established the terms of the Hospital Asset Transfer Agreement and Hospital Lease, dated as of August 8, 2017, as presented before the Board along with this Resolution, whereby the District and the New Operator will transfer certain assets of the Hospital and commence a new Lease for 30 years commencing on a date to be determined based on the closing of the transaction subject to contingencies set forth in the Transfer Agreement, subject to voter approval, thereby effecting a new transfer of all the real and personal property associated with the Hospital and its campus and operations, as described in the Hospital Asset Transfer Agreement and Hospital Lease, to the New Operator; and

WHEREAS, pursuant to Section 32121(p)(2) of the California Health & Safety Code the appraised fair market value range of the Hospital assets being transferred and/or leased is $168.0 Million to $250.0 Million based on the report by Premier, Inc, an independent expert on valuation of such facilities, along with the value of additional assets including cash funds and short-term securities in the amount of $139.0 Million, [and other assets, including patient accounts receivable, inventories, fixed and moveable equipment and other tangible and intangible assets required in the normal course of business] and the consideration received by the District from the New Operator, as tenant, in exchange for the asset transfer and 30 year lease consists of, among other considerations:

– The District Board’s determination hereby that the form of operations that will produce the optimal chance for long term successful provision of nonprofit, community-based hospital and related healthcare services for the District residents, is the operation of the Hospital by the District’s affiliated tax exempt nonprofit corporation under the proposed asset transfer and 30 year Hospital Lease with the New Operator, without the burden of significant rent, as opposed to a sale or lease at full market value to an outside entity without District oversight;

– The District will receive cash rent of $8,500,000 per year consisting of debt service on the District’s bonds in the amount of Seven Million Nine Hundred Thousand Dollars ($7,900,000) annually, plus base rent in an amount equal to Six Hundred Thousand Dollars ($600,000) annually, plus assumption by the New Operator of Hospital liabilities;

– The New Operator will provide the District administrative and secretarial support services, office space, furniture, computer hardware and software and equipment as required for the District to conduct its affairs, along with other overhead expenses, including insurance, and other items; and

WHEREAS, the Board finds that the transactions contemplated by the Hospital Asset Transfer Agreement and Hospital Lease are necessary to provide for the continued maintenance and operation of the District’s healthcare facilities, services and programs, thereby assuring availability to residents of the District of local emergency and hospital services, and has determined it to be in the public interest, in the best interests of the District, and in the best interests of the communities served by the District, and in furtherance of the purposes of the District, that the District enter into the Hospital Asset Transfer Agreement and Hospital Lease and consummate the transactions contemplated therein.

NOW, THEREFORE, the Board of Directors of the Antelope Valley Healthcare District hereby resolve:

1. That all the determinations, findings, and conclusions of the Board described above are hereby severally ratified, confirmed, approved and adopted in all respects.

2. That the form, terms and provisions of the Hospital Asset Transfer Agreement and Hospital Lease are hereby approved in all respects.

3. That the execution of the Hospital Asset Transfer Agreement and Hospital Lease by the Chair of the Board and/or the Chief Executive Officer is hereby authorized and approved.

4. That the Chair and Secretary of the Board and any person or persons designated and authorized to act by the Chair and Secretary are hereby authorized and directed to:

(a) Prepare, or cause to be prepared, and/or approve and execute in accordance with, as contemplated by or as consistent with the terms of the Hospital Asset Transfer Agreement and Hospital Lease, all exhibits, schedules, certificates, letters, agreements, papers and instruments and other documents, and appropriate revisions, amendments and restatements thereof (collectively, with the Agreement, the “Transaction Documents”),

(b) To make such representations in writing, and

(c) To take such other steps and do such acts and things, all as in their respective individual judgments may be necessary, appropriate or desirable on behalf of and in the name of the District to carry out, observe and perform and enforce the performance by others of, and comply with the terms and provisions of the Transaction Documents, and to consummate the transactions contemplated by the Transaction Documents.

5. That, in addition to gaining the approval and execution of the Hospital Asset Transfer Agreement and Hospital Lease by the New Operator, the District shall hereby submit to the voters of the District a measure proposing to approve the transfer and lease of assets as contemplated by the Transaction Documents.

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