JMH Foundation Board One Step Closer To Answer
The Jefferson County Commission met in Called Meeting on Monday, March 11, 2013 in the Historic Jefferson County Courthouse. The Meeting was Called to Order by Chairman of the Commission Mills. Absent from Roll Call were Commissioners Patterson and Barreiro.
Jefferson County Attorney Drinnon addressed the Commission regarding a request from the Jefferson Memorial Hospital Foundation Board to allow funding in the amount of $50,000 for operational cost associated with the management of the fund including attorney fees, financial advisor fees and costs associated with future contracts associated with audits. Drinnon informed the Commission that Resolution 31311 was before them for action and discussion and a like resolution had been approved by the Jefferson City Council. The Jefferson Memorial Hospital Foundation Board has been seeking a designation of the $12.4 million in Foundation funds as either Public or Private money, which will determine the investment avenues available to the Foundation Board. According to Drinnon, Public funds have a much more limited scope of investment avenues than Private money has available and the investment interest reflects those limits. Attorney McSween is familiar with the question facing the Foundation Board and has stated that he is comfortable issuing a written statement that the funds can be invested in vehicles other than those that are options for public funds. The Foundation Board has sought a response from the Attorney General, however, as there is no precedent in this case the Attorney General declined to render an opinion. Another option to the Foundation Board is to instigate a friendly lawsuit for a judgment on the issue. Drinnon stated that the Commission can request that the Foundation Board file suite but that could be a much more costly endeavor. Chairman of the Foundation Board Fain stated that the funds are currently in a CDAR, which is a secure investment with FSG Bank, though they are getting a very low return on the investment. Fain said that the Foundation Board has limited avenues to procure a determination if the funds in question are private or public. Those include seeking legislative declaration, which is not possible due to new time constraints at the legislative level-seeking a judicial opinion through suit-and getting an opinion from an attorney, which has been offered and will be backed by McSween. According to Chairman Fain, ultimately the investment avenues will come back before the County Commission and the Jefferson City Council for approval.
Commissioner Beeler stated that, if the judicial decision is off of the table, the Foundation Board would not need access to the full $50,000 that was requested. Chairman Fain stated that the request had been approved by the Jefferson City Council and that any funds that were not needed for operational costs would simply not be used. Any change in the resolution would require a return to Jefferson City Council for approval.
Upon a Motion from Commissioner Dockery and 2nd from Commissioner Scarlett the Commission Approved 18-1 (Beeler No) the resolution as presented. The Meeting was Adjourned.
