FPTF Community Questions Answered « The City of Lakewood, Ohio -

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FPTF Community Questions Answered

 

What exactly is the Foundation Planning Task Force doing?

 

1. Are you Lakewood Hospital Foundation or employed by Cleveland Clinic?

No. We are volunteer citizens appointed by City Council and the Mayor after an open application process in 2016. We have been charged with determining the structure and mission of the new wellness foundation. We are not the board of the new foundation

2. Are you the group that made the decisions for the former Lakewood Hospital property?

No. The foundation task force has nothing to do with the development of the hospital property. None of our task force members were associated with that panel. For more information on the hospital property development, go here.

3. What do you anticipate your final work to look like, and when will it be completed?

We will submit recommendations, to be approved by City Council and the Mayor, for mission, structure, and initial board makeup of the new foundation that will serve Lakewood. A full list of our responsibilities can be found here. We anticipate our final work product to be done by mid-2018.

4. What permits our elected leaders to vote on the task force’s recommendations?

Ohio Constitution Sections 18.01 & 18.03, and Ohio Revised Code 715.01, as well as city charter permits our elected leaders to consider and vote on our recommendations. As part of the Master Agreement, the city is not forming a non-profit entity as a member or incorporator. It is only to follow the obligations found in Section 4.1 of the Master Agreement – specifically, to work with Lakewood Hospital Association (LHA) in formulating the initial governance and documents of the new foundation. Hence, our task force formation in early 2017.

 

What is the source of the funds for the new foundation?

 

1. Who is funding the foundation?

Per the Master Agreement’s Section 6.1, Cleveland Clinic is making the contributions over eight years, totaling $24.4 million. This is in exchange for the right to receive the assets of Lakewood Hospital Association (LHA) upon its dissolution (per Section 3.3).  Cleveland Clinic will also make additional contributions, which will be held in a segregated account, of $500,000 per year for 16 years, totaling $8 million The total funding, from this private entity, will be $32.4 million. Here is the full funding schedule.

2. Why is the foundation being formed? Can’t the City of Lakewood just take the money?

Per the Master Agreement in Section 4.1, the foundation must be created and funded for the purpose of community health and wellness in the city. LHA’s assets weren’t the city’s assets.

3. Why is the funding being timed and delayed? Can the money be disbursed immediately?

The Master Agreement’s Section 6.1 calls for the timing of the payments. It was a heavily negotiated point within the agreement, and the timing and payment amounts involved net present value calculations each party (City of Lakewood, LHA, and Cleveland Clinic) made in order to reach a final compromise. The new board can have the right to request funds on a faster schedule, but whether to accelerate payments would only be at the agreement of Cleveland Clinic. 

4. Will the new foundation be a public fundraising entity?

It is yet to be decided on the structure of the new foundation, though many options are being considered, as shown here.

 

How will the foundation board be selected and governed?

 

1. What will be the process for appointing board members, and who is responsible for appointing them?

The task force is in the process of determining the structure of the foundation, which includes the recommended structure and makeup of the board. We anticipate making a recommendation, to be determined, on a fair process for selection. Under Section 4.1 of the Master Agreement, Lakewood’s elected officials and LHA have agreed to jointly select initial individual board members.

2. Will there be a conflicts of interest provision in the bylaws in order to maintain integrity and independence of board members?

While we anticipate the answer to be yes, this has not yet been determined.

3. Will board members be required to be Lakewood residents?

We have not yet determined our recommendation for the structure or makeup of the board. We anticipate the answers for this over the coming months.

4. What will be the size of the board, how many seats is Cleveland Clinic going to hold, and will there be term limits?

We have not yet determined our recommendation for the structure or makeup of the board. We anticipate the answers for this over the coming months. According to Section 4.2 of the Master Agreement, the board must be 5-21 members. Of these members, two (2) will be appointees of Cleveland Clinic.

 

How will the money be spent for the new foundation?

 

1. Have you run any pro forma financial documents to show disbursements, expenses, and returns?

Yes, we have run some estimates. These were presented at our October 19, 2017 task force meeting. The documents can be viewed here.

2. Will the new foundation seek matching funds from any other non-profit entities for programming, including, but not limited to the former Lakewood Hospital Foundation?

As was stated in The Mt. Sinai Health Care Foundation President, Mitch Balk’s presentation, collaboration is very high amongst non-profits in Northeast Ohio. We will encourage collaboration, and look to avoid duplication of services.

3. Will this be a spend-down foundation, or operate in perpetuity?

We have not yet determined our recommendation the structure of the foundation.

4. Transparency will be key to the new foundation in its grant making endeavors. How will success be gauged, and will there be public meetings?

While not finalized, the task force anticipates making transparency a key element of the bylaws. Ultimately, the board will make the determination on how they disperse information beyond their required annual filings, and how they gauge success.

5. Will funds be used in Lakewood, or regionally?

While we have not determined a structure yet, the Master Agreement’s Section 6.1(a) states the money is to be used “for the benefit of the Lakewood community and its residents”.