TO: City Council
THROUGH: Krishna Namburi, Acting City Manager
FROM: Board and Commission Appointments Committee
SUBJECT:
title
Appointments to the Hospital Facility Authority Board and status of Ward 5 Budget Committee candidates
Ward(s): All Wards
Councilor(s): All Councilors
Neighborhood(s): All Neighborhoods
Result Area(s): Good Governance
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SUMMARY:
summary
The Council Board and Commission Appointments Committee convened on Monday, March 3, 2025, to consider reappointments and appointments to the Hospital Facility Authority Board as well as review applications for the Ward 5 position on the City and URA Joint Budget Committee.
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ISSUE:
Shall City Council approve the appointments and reappointments on the Hospital Facility Authority Board and direct staff to schedule interviews for the two applicants for the next Ward 5 member of the City and URA Joint Budget Committee?
RECOMMENDATION:
recommendation
Approve the appointments and reappointments on the Hospital Facility Authority Board and direct staff to schedule interviews for the two applicants for the next Ward 5 member of the City and URA Joint Budget Committee.
body
FACTS AND FINDINGS:
At its March 3 meeting, the Board and Commission Appointments Committee recommended the following appointments and reappointments (four-year terms):
Hospital Facility Authority Board
• Reappoint Mike Compton to a term beginning January 13, 2025, and expiring on January 13, 2029
• Reappoint Steven Hunter to a term beginning January 13, 2025, and expiring on January 13, 2029
• Appoint Councilor Shane Matthews to a term beginning January 13, 2025, and expiring on January 13, 2029
• Appoint Councilor Dr. Irwin Brown to a term beginning January 13, 2025, and expiring on January 13, 2029
Budget Committee, Ward 5 position
• The Committee recommends that Council to conduct interviews of two candidates, Bayard Mentrum and Mel Whisler, in a special Council meeting on Monday, March 24, immediately prior to the regular Council meeting at 6 p.m.
BACKGROUND:
The Hospital Facility Authority is a public body that was created by the Salem City Council in 1973, pursuant to Oregon law. The purpose of the HFA is to allow public and private non-profit health care facilities to pay for capital improvements through tax-exempt bonds. The use of tax-exempt bonds lowers the cost of these capital improvements, which helps maintain the cost of service for area health care providers.
The tax-exempt bonds are issued by the HFA and are repaid by the health care facility owners (borrowers). The City has no financial obligation in regard to the bonds and generally receives a modest service fee when the bonds are issued.
The HFA Board was created through City Council resolution. Under Oregon law and as set forth by City Council resolution, the HFA Board is a seven-member governing body for the HFA. At least one HFA board member must be a member of City Council.
With the recent change in council members and the expiration of the terms for Board members Compton and Hunter, it is necessary for City Council to make reappointments and appointments to the HFA in order for it to have a quorum to conduct business.
The HFA receives staff assistance from Salem Health and its legal counsel is the law form or Orrick, Herrington and Sutcliffe, with Doug Goe serving as their lead counsel.
Mr. Goe and HFA staff have requested that City Council reappoint Mike Compton and Steven Hunter to the HFA and appoint at least two members of council as well. In January, Mayor Julie Hoy announced that Councilors Brown and Matthews were appointed to the HFA. However, due to an administrative error, it wasn’t clear that Council, and not the Mayor, made these appointments. Councilors Brown and Matthews have indicated a willingness to serve on the HFA and therefore, it is recommended that the Committee recommend that each be appointed by City Council.
HFA staff and the City are listing the openings on the HFA and seeking interested community members to serve on the Board. Once new applicants for these open Board positions are identified, this Committee will review the applicants and make a recommendation to Council for additional appointments.
Attachments:
None