Tulare City Council lends $9M to medical center

The Tulare (Calif.) City Council voted Feb. 12 to extend a $9 million loan to Tulare Regional Medical Center, which will allow the struggling hospital to purchase equipment and pay critical bills, according to the Visalia Times Delta.

Vice Mayor Dennis Mederos abstained from the vote; Councilman Greg Nunley recused himself, and Councilman Carlton Jones was absent. The council was scheduled to vote on the loan last month but without the three lawmakers the vote lacked a quorum and was delayed.  

But on Feb. 12,  the vice mayor invoked a "rule of necessity" Feb. 12, which allows a public officer to carry out council member duties when it is necessary to proceed with certain government functions. He said Mr. Jones indicated he would attend a March council meeting but recuse himself from a loan vote.

"It is abundantly clear from these circumstances and the facts presented to me that Mr. Jones is engaging in conduct to permanently make himself unavailable to consider this matter," said Mr. Mederos. "Mr. Jones appears to be bargaining as to whether he will appear. His actions have caused government paralysis on this issue both as it relates to the city and the hospital district."

Hospital leadership will need to prove a direct need for funds every time they withdraw money from the loan's line of credit, but Mr. Jones has expressed opposition to the loan in previous council meetings due to existing unpaid loans.

"We are not a bank. They owe us money already. I don’t think there's any bank in the world that you can default on a loan and then go and get a line of credit that's six times the amount they owe," Mr. Jones said in December.

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