Maverick County Hospital District Board approves revised By-Laws & Increased Deferred Retirement Plan
By: Miguel Munoz, Eagle Pass Business Journal, Inc., Copyright 2016
The Maverick County Hospital District Board of Directors held a regular meeting on Tuesday, November 29, 2016, at the District’s Second Floor Conference Room, located at 3406 Bob Rogers Drive, in Eagle Pass, Texas, approving revised By-Laws, a Resolution adopting an optional Nation Wide Deferred Retirement Plan for employees, and other matters.
Board Chairman Adolfo “Fito” Olivares called the meeting to order at 12 Noon sharp with fellow Board members Jesus Casas, Rebecca “Becky” Robinson, Ronald Hixson, and Juan Manuel “Chuco” Farias present.
During the Visitor Recognition of the agenda, Eladio Montalvo, Chief Executive Officer of Fort Duncan Regional Medical Center, welcomed the new Board of Directors and offered his and the Fort Duncan Regional Medical Center’s services with any issues and/or questions which may arise during their tenure as Board members. Montalvo offered to give each Board member a tour of the facilities at Fort Duncan Regional Medical Center to acquaint them with the medical services being provided.
Following the approval of the minutes of the October 25th and November 16th meetings, the Board proceeded to tackle the approval of the updated Maverick County Hospital District By-Laws. Discussion was very minimal with a few questions to CEO Terri Contreras-Patlan and General Counsel Alex Fuller. These revised By-Laws were tabled for consideration and action at last month’s October 25th meeting until the Maverick County Hospital District’s State Enabling Statute is amended at the 2017 Texas Legislative Session during January-May 2017 after State Representative Poncho Nevarez and State Senator Carlos I. Uresti introduce appropriate legislation to amend the District’s State Statute and is formally approved by the Texas Legislature.
CEO Terri Contreras-Patlan advised the Board that she had already spoken with State Representative Poncho Nevarez regarding the need to introduce legislation to amend the Hospital District’s State Statute and Nevarez had stated that it should be no problem passing through the Legislature. General Counsel Alex Fuller advised the Board that State Representative Poncho Nevarez told the District that the necessary amendments would be approved.
Previously, the Hospital District Board took a conservative approach to not approve these amendments until after the Texas Legislature approves the amendments to the District’s State Statute. However, the newly constituted Hospital District Board with two new members relied on the assurances made to them by CEO Terri Contreras-Patlan and the recommendation of General Counsel Alex Fuller to approve the revised By-Laws before the Texas Legislature amends the District’s State Statute. The newly approved District’s By-Laws now are inconsistent and different than what is currently stated in the District’s State Enabling Statue.
The Hospital District Board also approved unanimously a Resolution to allow employees to participate in a Nation Wide Deferred Retirement Plan that will enable employees to voluntarily contribute up to 12 percent of their annual salaries and wages to a deferred retirement plan from the current 6 percent plan allowed by the Texas County Retirement System (TCRS). During discussion, CEO Terri Contreras-Patlan stated that several Physicians employed by the District had requested they be allowed to invest a larger percentage of their salaries and wages into a deferred retirement plan. The Hospital District’s current Texas County Retirement System only allows employees to invest a maximum of six percent of their annual salary into retirement with the Hospital District matching the employee’s contribution. Under the newly approved Nation Wide Deferred Retirement Plan, Hospital District employees will be allowed to invest up to 12 percent of their annual salary into a deferred retirement plan. Board Chairman Olivares and Vice-Chariman Jesus Casas questioned CEO Contreras-Patlan if this Nation Wide Deffered Compensation Plant would cost the District additional monies to fund the employees voluntary investment of up to 12 percent annually of their salaries and Contreras-Patlan replied “No.” Contreras-Patlan assured the Board that the employees voluntary participation in the optional Nation Wide Defferred Compensation Plan will not cost the District nor taxpayers any additional funds. Contreras-Patlan stated that the Hospital District will not match the employees voluntary contributions up to 12 percent. The Hospital District is only responsible for matching the employees the 6 percent of the Texas County Retirement System.
Board Chairman Adolfo “Fito” Olivares questioned CEO Contreras-Patlan if the District’s Human Resources Director had surveyed the employees concerning their interest in participating in this Nation Wide Deferred Retirement Plan and she replied “Yes” and that about 20 of the District’s 50 employees had expressed an interest. The most interested employees in this increased deferred retirement plan are the District’s Physicians who seek to save income taxes while securing a higher deferred retirement plan.
According to the Sample Resolution presented at the Board meeting on the screen, Board members will also be able to participate as the resolution contained language that “County Elected Officials” are eligible to participate in the Nation Wide Deferred Retirement Plan, raising serious emolument legal issues as the Maverick County Hospital District Board of Directors do not receive any emolument (payment) for their public service. This issue was not raised nor discussed by the Board and Administration in approving the Resolution to participate in the Nation Wide Deferred Retirement Plan.
Another agenda item discussed and approved was the Hospital District’s Media Advertising contracts. Board member Juan Manuel “Chuco” Farias stated that he had placed this item on the agenda to get a status report on the District’s Media Advertising Contracts. CEO Contreras-Patlan advised the Board that the District had an Advertising Budget of $37,000 for the 2016-2017 Fiscal year and that the District had received advertising proposals from local media. Contreras-Patlan stated that the District had selected Texas Media Link to handle the design and management of a new logo, website, and advertising at a cost of approximately $20,000. Some Board members asked CEO Contreras-Patlan for a breakdown of the $37,000 Advertising Budget. Board Secretary-Treasurer Becky Robinson made a motion to allow CEO Terri Contreras-Patlan to develop an Advertising Plan and present to the Board for approval at the next month’s meeting, which was approved unanimously.
During the Financial Report by the District’s Comptroller Nestor Bonilla, Board Vice-Chairman Jesus Casas, a Certified Public Accountant, raised the point that the Hospital District’s Monthly Financial Report presented to the Board do not accurately reflect how the District is doing financially and the Board needed to receive a report showing more accurately how the District finances are doing to avoid any problems from occurring. Several years ago, the District used the Monthly Accrual Financial Reports for the Board, but changed to the GAAP Monthly Reports which Casas complained about. CEO Conteras-Patlan and CFO Bonilla agreed to provide the Board a modified Monthly Report with Accrual Financial Information at the next Board meeting.
The Board also heard several agenda items under Executive Session, including the District’s Uncompensated Care Contract with Fort Duncan Regional Medical Center/Universal Health Services, Inc., the District’s Medical Office Building Lease Agreement, the District’s Advisory Board with Fort Duncan Regional Medical Center, and the appeal of the Texas Commission on Environmental Quality permit to Dos Republicas Coal Partnership to discharge its coal mining waste waters into Elm Creek and Rio Grande River.
The Hospital District has listed on its Board agendas for several months the District’s Uncompensated Care Contract with Fort Duncan Regional Medical Center/Universal Health Services, Inc. signifying that there are some issues being discussed and/or negotiated between the District and Fort Duncan Regional Medical Center.
Also, the District’s Board has listed on its agendas the issue regarding the Medical Office Building Lease Agreement with Fort Duncan Regional Medical Center/Universal Health Services, Inc.
Another agenda item on the District’s Board meetings is the District’s Advisory Board with Fort Duncan Regional Medical Center/Universal Health Services, Inc.
The Board also received a report on the status of the appeal of the Texas Commission on Environmental Quality permit to Dos Republicas Coal Partnership to discharge its coal mining waste waters into Elm Creek and Rio Grande River before the Texas Court of Appeals.
