Legal Opinion Ends Hospital’s Use of Public Funds for Gifts : Antelope Valley: The medical center’s practice was determined to be a state violation. But it won’t ask ex-board members to return retirement presents.

Executives of the Antelope Valley’s largest hospital have accepted legal advice that it was a violation of state law to give two board members $4,000 in retirement gifts and promised not to do it again, but they will not ask for the gifts back.

An attorney for the Assn. of California Hospital Districts advised executives of Antelope Valley Hospital Medical Center in Lancaster that the gifts were an illegal use of funds for a publicly run hospital under state law.

The hospital will not seek compensation for the gifts, but “the practice has been adjusted so it won’t happen again,” said Larry Parker, chairman of the board of directors of the Antelope Valley Hospital District, which operates the 301-bed medical center.

The episode earlier this year caused the hospital board to reprimand Jack Evans, hospital administrator, for authorizing expenditures for the gifts and a $1,066 hotel bill for the Jan. 19 retirement party.

The issue also helped spark a continuing recall campaign against two current hospital board members, Steve Fox and Ann Brouillette, who were critical of Evans and the gifts.

Hospital workers promoting the recall claim that the pair have been too critical of Evans and the hospital.

A $2,800 travel certificate went to Clarence Kelly, a 28-year board member and retired farmer.

An aviation radio and related gift certificates worth $1,200 went to Michael Schafer, a 12-year board member and owner of a Palmdale moving van company.

The two were unseated in a Nov. 6 election by Fox and Brouillette.

Evans said he decided to give the retiring board members gifts worth $100 for each year they held office.

Evans had maintained that he did nothing wrong and was just following past hospital practice.

But Parker said Wednesday that he and Evans have decided to abide by the advisory legal opinion they received from Joseph Sheeks, a San Rafael-based attorney for the hospital districts association, which represents publicly run hospitals.

The hospital’s board requested the opinion earlier this year at Fox’s urging.

In the opinion, Sheeks detailed the state Constitution’s ban on gifts of public funds or property and the exceptions California courts have granted when a “public purpose” is served.

However, Sheeks said the hospital’s gifts appeared to mainly benefit the two retiring board members.