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MIIVUTES Page 2 City of San Leandro Ciry Council Special Meeting-Apri127, 2009 Gloria Pineo, San Leandro resident, addressed the City Council, commenting on the importance of keeping San Leandro Hospital open, especially for disasters and emergencies. Ms. Pineo expressed concerns about the future neighbor to the new Senior Center and school campus. Mayor Santos provided clarifications on the San Leandro Hospital situation. He commented that the present discussions have been about taking the hospital into another direction, rather than closure, and that the City has no jurisdiction over the Eden Township Healthcare District. The agreement that Sutter entered into with the District to operate the hospital allows Sutter to terminate the agreement between July 1, 2009 and June 30, 2010. Mayor Santos announced that the Board of Supervisors has rescheduled the San Leandro Hospital item from April 28 to May 12. Mayor Santos reported that he had attended a recent Eden Township Healthcare District Board meeting and suggested that the Board make a public statement regarding its intentions for the San Leandro Hospital. He noted that a confidentiality agreement between Sutter and the District has prohibited any public comments, but he is hopeful that a public statement will be made by both parties in the near future. Mayor Santos also reported that he and City Manager Steve Hollister recently met with Sutter, Supervisor Alice Lai- Bitker, and Alameda County Health Caze Services Agency Director David Kears to discuss the San Leandro Hospital situation. Mayor Santos commented that the hospital issue is very complex. He stated that he had looked into other suggested options. Incorporating the District within the City boundary would entail a lengthy process through the Local Agency Formation Commission (LAFCO). A ballot measure to support the hospital would likely result in a similaz situation as Alameda Hospital, in which every pazcel pays between $300 to $400 per year, but the hospital still cannot operate profitably and requires subsidy. Vice Mayor Stephens thanked Mayor Santos for the insight. He commented that the proposed resolution is very general and expressed that he is not ready to vote on the resolution until he understands the full dimension of the situation. Mayor Santos expressed understanding of Vice Mayor Stephens' sentiments. Mayor Santos commented that St. Rose Hospital is classified as a disproportionate hospital. Hospitals in this classification provide basic healthcare service for the poor, and receive additional federal and state funding. San Leandro Hospital does not have such classification. Mayor Santos noted two other facets to the problem: 1) Sutter's investment portfolio dropped significantly last year, and 2) Operational subsidy for the San Leandro Hospital runs between $1.2 to $1.5 million per month. Councilmember Prola commented that Sutter, a nonprofit organization, is making profits in Alameda County, and that profits from other Sutter hospitals would offset the loss from the San Leandro Hospital. He expressed that Sutter has an obligation to keep the emergency room open and should have some concerns for San Leandro and Alameda County. He recommended that the City Council put some pressure on Sutter to keep the emergency room open.