You Be The Judge

[Mark Kindt]

You Be The Judge

You can see that the 2013 City of Lakewood Comprehensive Annual Financial Report (2013 CAFR) issued in June 2014 is completely silent on the closure of Lakewood Hospital.

However, during this same time period, the city administration is deep into its review to close Lakewood Hospital--right down to the demolition blue prints.

Here are the relevant pages from the 2013 CAFR on Lakewood Hospital.

2013_Lkwd_CAFR 96.jpg (385.81 KiB) Viewed 4082 times

2013_Lkwd_CAFR 105.jpg (297.4 KiB) Viewed 4082 times

[Mark Kindt]

Plans To Demolish The Hospital Were Well Along By 2012 and 2013

A reader of the 2013 CAFR, such as a citizen or a bond-holder of Lakewood debt, would have no knowledge from reading the Annual Report that the City of Lakewood was planning to terminate the lease and demolish certain "off-book" public assets with the loss of the associated lease revenues and the employee income tax revenues from more than 1,400 employees.

Here are some document pages that reflect the closure and demolition of Lakewood Hospital.

Master Plan Report 11-30-2012 2.jpg (632.83 KiB) Viewed 4078 times

The color purple denotes the demolished Lakewood Hospital.

It is worth noting that this is from Version 5.3 of the presentation dated 9/23/2013

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[Mark Kindt]

So What Does The 2014 Budget Tell Us?

It has no mention of "health care" related to Lakewood Hospital, but Lakewood Hospital has now curiously moved into the category of "Economic Development".

Only insiders could have any idea of what this cryptic description actually meant. This is a complete mealy-mouth fudge.

But, keep in mind, the city started the review process with the consultant (Subsidium) by reviewing closure and demolition documents in the Fall of 2013 from the hospital lessee.

2014_Lakewood_Comprehensive_Budget 59.jpg (333.3 KiB) Viewed 4055 times

[Mark Kindt]

Just To Make This Observation Today

Keep in mind that it took two lawsuits and two teams of lawyers and several years of hard-fought effort, just so I can make this observation today with a few comparative documents.

Lakewood Hospital was on the chopping-block years before any citizen had the opportunity to object to the loss of our community's invaluable, award-winning hospital.

Or, even to ask a question about it...

[Mark Kindt]

Why All This Rigamarole?

The disclosure could have been simple, true, and accurate, for example:

"The Mayor of Lakewood is meeting with representatives of the Lakewood Hospital Association and its consultant to review current plans that are most likely to lead to the closure of Lakewood Hospital in the near future. Every effort will be made to identify other hospital systems to maintain Lakewood Hospital as a going-concern for our community. In the event that we are forced to close the hospital, other economic development alternatives will be considered."

While I disagree with the city administration as a matter of public policy on most issues related to its disposition of Lakewood Hospital and the future misuse of this former, but vital, civic infrastructure for mundane commercial uses; the city administration never had justification to misrepresent its planning to either its citizens or its bond-holders or to the courts.

Honesty and frankness with the public has its benefits. Americans have always known how to take the good with the bad.

[Mark Kindt]

Radio Silence In 2013

Take a moment to return to the top of this post and look at the pages from the 2013 CAFR.

You can see that it does not disclose any material information about changes in the City's operating lease with the Lakewood Hospital Association, though the city administration is deep in reviewing LHA plans to close and demolish Lakewood Hospital, a city-owned asset. (The lease has more than a decade to run and, as a going-concern, Lakewood Hospital in probably worth more than $100,000,000 in market value.)

This is a major "off-book" asset and there is virtually no financial disclosure of the fact that these public assets will soon be taken off-line and liquidated.

Now, take a look at what the 2012 CAFR has to say about Lakewood Hospital. It implies that the City is working toward a lease extension beyond 2027 with full citizen involvement.

2012_Lkwd_CAFR 33.jpg (362.07 KiB) Viewed 3859 times

[Bill Call]

One of the disadvantages faced by Save Lakewood Hospital was that our facts were answered by lies.

Lies such as:

The City does not own the Hospital.
The Hospital is not closing.
Supporting issue 64 will close the Hospital.
The Hospital is losing money.
The City has no interest in the Lakewood Hospital Foundation.

[Mark Kindt]

Complete Disconnect With Reality

Here's what the 2013 City of Lakewood Budget has to say about Lakewood Hospital. This budget was prepared at the end of 2012.

Again, here's what the Lakewood Hospital Association is planning --decant & demolish.

These two documents represent a complete divorce from reality.

In 2012, LHA has plans to demolish Lakewood Hospital.

In 2012, the City is crowing about its post-2027 strategy for Lakewood Hospital.

You be the Judge.

2013_Lakewood_Comprehensive_Budget 9.jpg (346.5 KiB) Viewed 3845 times

Master Plan Report 11-30-2012 2.jpg (632.83 KiB) Viewed 3845 times

[Mark Kindt]

A Pattern of Material Misrepresentations In City of Lakewood Financial Reporting

In this Deck essay, I have illustrated what I believe to be patterns of material misrepresentation in the City of Lakewood's financial reporting in likely violation of the U.S. securities law.

This same issue is reviewed in two other Deck essays with additional examples and documents:

"Civic Accountability -- Honesty in Local Government I"

viewtopic.php?t=23643

"Water and Sewer Upgrade Costs -- $274,000,000?"

viewtopic.php?f=7&t=24991

I appreciate your interest and patience as I have explored these matters. I could not have done this without all of the legal effort of other public interest lawyers in their recent litigation with the City.