Tulare Local Health Care District

Board of Directors
Special Meeting Minutes
Tuesday November 21, 2017
Board Convenes at 7:00 pm
Evolutions Fitness & Wellness Center
1425 E. Prosperity Ave., Tulare CA 93274
In attendance:

Kevin Northcraft
Mike Jamaica
Senovia Gutierrez
Xavier Avila
Stephen Harrell
Larry Blitz Interim CEO
Dan Heckathorne Interim CFO

I. Call to order

Meeting called to order at 7:03 p.m.

II. Swearing in Ceremony for District 1 Appointee, Stephen C. Harrell

Tulare County Superior Court Judge Walter Gorelick administered the oath the Stephen
Harrell, District 1 Director
III. Citizen Requests/Public Comments

Jan Smith, Tulare Hospital Foundation Executive Director, unveiled a community wide
campaign, Tulare Strong, in support of the reopening of the hospital. Tulare Strong signs
can be obtained by calling the Hospital Foundation Office
Joseph Soares commented support of the Evolutions lease agreement

IV. Approval of minutes of Board meetings on November 7 and 14, 2017

Mike Jamaica moved the minutes of the November 7 and 14, 2017 be approved. Senovia
Gutierrez seconded the motion. Motion passed 4-0.

V. Update on plans to reopen Evolution Fitness Center; discussion and consideration of lease
agreement with EVO MANAGEMENT COMPANY, LLC for lease of Evolutions

Director Stephen Harrell recused himself from participating in the matter

Dennis Mederos gave the Board an update on the lease agreement. If approved
Evolutions would open Saturday, November 25th, at 6:00 a.m. EVO will advance $45,000
in rent to the district. EVO will not profit from the lease agreement, all profits will go to
the hospital district. Three entities will manage Evolutions: Tulare Local Development
Company, Tulare Industrial Site Development Foundation, and the Tulare Hospital
Foundation. Three managers will represent each of the entities. Paul Atlas from TLDC,
 Mike Lane from TISDF, and Patricia Hitlin from the THF. The hospital board will create
an oversight committee. Turnover will occur with 30 days notice. EVO will be
reimbursed their investment with a $300,000 cap. A business plan has been presented
to the Board and insurance is in place. There has been a cap in expenditures
established: $10,000 for A/C and heating, $10,000 for roofing, and $5000 for anything
else. Gym dues will be waived for members for the month of November. Subsequent
fees will remain the same.

Xavier Avila made a motion to accept the lease agreement. Mike Jamaica seconded the
motion. Motion passed 4-0.

VI. Discussion and consideration of Resolution No. 857, terminating any and all authority
previously granted to HCCA to serve as agent in any capacity for Tulare Local Healthcare
District, and directing Tulare County regarding tax revenues

Senovia Gutierrez moved to approve Resolution No. 857. Mike Jamaica seconded. Motion
passed 5-0.
VII. Update on Plans to reopen Hospital and clinics

Interim CEO Larry Blitz reported that the District has begun advertising for employment.
Applications are coming in like crazy. The District must file applications with the State.
The district is preparing for the California Department of Public Health. The survey will
cover 8 major areas of the hospital and staff must be in place. Next week a pro forma
budget will be presented. Previously, the physician force had eroded. Currently physicians
are calling every day wanting to come back. Financials will be presented each month.

VII. Suspend open session-Recess to closed session (if necessary)

Conference with Interim Legal Counsel Existing Litigation (Gov. 54956.9)

In re: Tulare Local Healthcare District dba Tulare Regional Medical Center; United States
Bankruptcy Court Eastern District of California Case No. 17-13797

VIII. Adjourn closed Session/reconvene open session (if necessary)--Public report of action taken in
closed session, pursuant to Government Code section 54957.1

IX. Adjournment