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HomeMy WebLinkAboutMINUTES - 01311989 - T.2 T. 2 THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this Order on _January 31 , 1989_, by the following vote: AYES: NOES: (See below for vote) ABSENT: ABSTAIN: ------------------------------------------------------------------ SUBJECT: Workshop on the Replacement of the Merrithew Memorial Hospital In introducing the scope of the presentation today on the replacement of the Merrithew Memorial Hospital, Phil Batchelor, County Administrator, commented on the many questions that require answers and the many obstacles that need to be overcome in order to construct a facility to serve the citizens of Contra Costa County. Frank Puglisi, Executive Director, Merrithew Memorial Hospi- tal, gave a slide presentation depicting the obsolescence of the hospital facility. Mark Finucane, Director of Health Services, commented on the need to replace the current hospital facility. He noted that the hospital has received many unfavorable citations from the State Department of Health Services because of deficiencies in the plant structure. He advised that an estimated $14 to $15 million is required to make the corrections which would not extend the life of the current facility. He noted that the patient census is high and that the deficiencies of the hospital are particularly evident when the patient census is high. He also noted that there is an in- creased demand for outpatient care resulting in longer office hours to accommodate this need. Mr Finucane advised that consideration has been given to closing the hospital and contracting for services. He commented on the disadvantages of this proposal citing the reluctance of private doctors and hospitals to accept Medi-Cal and indigent patients; the high costs that would be associated with contracting with private doctors and hospitals to accept Medi-Cal and indigent patients; the inability to negotiate long-term contracts as a method of control- ling future costs for providing mandated services; and further the inability of potential contractors to provide acute psychiatric services as well as services to jail inmates. Phil Batchelor spoke on financial considerations in estimating the cost for the replacement facility, and the need for careful analysis to size the hospital to meet current and future needs. He noted that construction costs are estimated to be $95 million for a 227 bed facility with completion of the construction anticipated in the mid 19901s. However, he called attention to the fact that there is a great deal of pressure by the State and local agencies to correct the deficiencies or replace the current facility. Mr. Batchelor referred to the financial opportunities avail- able to finance hospital construction, namely, the recently passed Proposition 99 (Tobacco Tax Initiative) , and SB 1732 (Presley) . He advised that in conversations with various legislators Contra Costa County would qualify to receive Prop 99 monies for replacement of the County Hospital if it is determined to allocate these monies for hospital construction costs. The County Administrator noted that the distribution formula for Proposition 99 monies is still unclear and that many legislative bills are being proposed for the use of this money. He called attention to the fact that the Governor' s budget for the 1989-1990 fiscal year proposed a new 1 procedure for funding the Medically Indigent Adult (MIA) program through tobacco tax revenues. He advised that SB 1732 provides for a five-year window to guarantee funding for a project. Even with half of the construction costs provided by Prop 99 and SB 1732 monies, the County would still have to finance the remainder. Mr. Batchelor referred to the recommendations as set forth in the attached report and advised that allowing him to issue Requests for Qualifications/Proposals (RFP' s) for an architect and con- struction manager is not indicative of a Board decision to replace the facility; and further that this action would enable him to screen for qualified professionals to assist in the development of the construction project for presentation to appropriate State agencies, as well as address some of the other issues associated with this project that have not been addressed today. Supervisor Powers referred to the language in Proposition 99 and the proposed intent of the Governor to use these funds to finance the MIA program. He recommended that a lobbying effort be initiated to insure utilization of these funds for hospital con- struction. He also recommended that the County Administrator begin development of a financial plan for presentation to the Board. Supervisor McPeak commented on the need to have complete data on construction costs and cash flow anticipated to apply to the debt service. She requested information on what percentage of revenues derived from patient utilization could be applied to the debt service. Mr. Batchelor responded that the financial marketing analysis will not be completed for two months. He referred to the problem with the uncertainty with the allocation of Proposition 99 monies for this project which could be used as a match for SB 1732 funds. He estimated that increased patient utilization of the hospital would provide the cash flow to fund increased operating costs. The County Administrator cautioned against anticipating revenues from this source to apply to the debt service. Mr. Finucane advised that patient revenue projections for the proposed new facility have been very conservative. He further advised that these projections are being subjected to further study. Supervisor Schroder commented on the need to have all infor- mation available on the cost for the replacement of Merrithew Memorial Hospital prior to making a decision. He expressed support for the County Administrator' s recommendations. Supervisor Fanden expressed the belief that replacing the County Hospital with a new facility is cost effective to County taxpayers than contracting with private medical carriers for this service. She expressed a desire to have the Health Services Director provide the Board with a report reflecting revenue pro- jections over a 30 year period. She called attention to the fact that State Law requires the County to provide medical care for indigents. She recommended that the Board establish a subcommittee to meet with the County' s legislative representatives to solicit their assistance in preserving Proposition 99 monies for hospital construction including the protection of Contra Costa County' s interests in this endeavor. She further recommended that the Board approve the recommendations of the County Administrator as set forth in the attached report, and that staff be requested to respond to questions raised by Board members today. Supervisor Powers concurred and commented on the need to have an analysis of the demographics and financial components associated with the replacement of the County Hospital. Mr. Batchelor suggested availing the County of the services of investment banking in the development of financial data to assist in the lobbying effort for this project. 2 Supervisor McPeak inquired as to the timetable for the Board to receive a report on the RFP' s submitted for the architect and construction manager, a financial analysis and design analysis on the replacement facility. Mr. Batchelor responded that the studies of these components is being done concurrently. He advised that some of the marketing analysis and development of the plant model is being done by current staff. He anticipated reporting to the Board in April as to the responses received to the RFP. He also advised that within the next few months he would be reporting to the Board on financial and legal issues associated with this project. Mr. Batchelor commented on the interest shown by many health, financial, and business professionals in this endeavor. He noted that several workshops have been scheduled to provide information on the many issues associated with this project. Supervisor Torlakson requested that workshops be scheduled far enough in advance to afford interested parties opportunity to attend and participate. Supervisor Powers requested that consideration be given to the development of a brochure depicting what is being proposed and soliciting support from all interested parties in focusing atten- tion to the need to replace the County Hospital. In response to an inquiry of Supervisor Torlakson, Mr. Batchelor advised that funding for the RFP' S has been provided in the budget of the health Services Department and that no additional funds are required at this time. He commented on the need to have all data assembled on the project in order to make a good decision. On motion of Supervisor Fanden, seconded by Supervisor Powers, IT IS BY THE BOARD ORDERED that the recommendations of the County Administrator as set forth on the attached report are APPROVED, and that the County Administrator is REQUESTED to respond to questions raised by Board members. The vote on the motion was as follows: AYES: Supervisors Powers, Fanden, Schroder, Torlakson NOES: Supervisor McPeak ABSENT: None On recommendation of Supervisor Fanden, IT IS BY THE BOARD ORDERED that Supervisors Fanden and Powers are DIRECTED to meet with the County' s legislative Delegation to obtain a commitment to secure funds from SB 1732 (Presley) and Proposition 99, the Tobacco Tax Initiative, to assist in the financing of the replacement of the Merrithew Memorial Hospital. The vote was as follows: AYES: Supervisors Powers, Fanden, Schroder, McPeak, Torlakson NOES: None ABSENT: None �:�'i-i171'C ,ri-i':d.r s�•�p�b.L�r.. ..trn:'EC�d: an actioni taftcn and onto e:Y on Z�^F a3. ►m `.3t7 cc• County Administrator D°aecf°�Supervisors°f� the -+le Shown. • Director of Health Services ATTEST"ED: .51l9.p Supervisor Fanden PI-31L F3 c CHELOF , ClleeK of vie B_o Supervisor Powers of Supervisors unr' County By 3 7.2 TO: BOARD OF SUPERVISORS ...... Contra _, FROM: Phil Batchelor, County Administrator V" '� Costa s _ o� County DATE: January 17 , 1989 WN SUBJECT: Merrithew Memorial Hospital Replacement Facility SPECIFIC REOUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATION• 1. Approve draft Requests for Qualifications/Proposals for consultants to prepare information to determine feasibility for proceeding with a replacement facility for the Merrithew Memorial Hospital. 2. Direct staff to issue RFQ' s and proceed to select consultants for recommendation to the Board. 3 . Accept report from the Community Development Department on requirement for an environmental impact report and direct staff to initiate steps to accomplish the EIR when appropriate. 4. Direct staff to prepare presentation material on the project study for the workshop scheduled for January 31, 1989 at 2 : 00 p.m. in the Board Chambers. BACKGROUND: On December 13 , 1988, the Board considered recommendations by the Health Services Director concerning the Arthur Young study on the Merrithew Memorial Hospital Replacement Facility. The Health Services Director' s recommendations were approved and, in addition, staff was directed to bring back to the Board draft copies of the Request for Qualifications for the consultants necessary to proceed with the schematic design; a timetable for further actions; a determination as to whether a environmental impact report was necessary and a request to hold workshops to inform the Board and the public of the activities related to the replacement study. CONTINUED ON ATTACHMENT: ✓ YES SIGNATURE: al� RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON APPROVED AS RECOMMENDED OTHER VOTE OF SUPERVISORS I HEREBY CERT HAT THIS IS A TRUE UNANIMOUS(ABSENT ) AND CORRECT COPY O ACTION TAKEN AYES: DES: AND ENTERED ON THE MINUT THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOW ATTESTED PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY DEPUTY M382 (10/88) -2- The attached materials contain drafts of the Requests for Qualifications for Architects, Construction Management firms, Financial Advisors and Bond Counsels for review and approval. These consultants, along with County staff, will make up the core project staff needed to manage the project. The Community Development Director has reviewed the project for environmental requirements and prepared the attached memo indicating that a full review of environmental considerations will be required for the project in accordance with the requirements of the California Environmental Quality Act. He further recommends that the EIR process should be initiated at the time the schematic design phase is completed when the actual design of the project is firmly fixed. The Requests for Qualifications contain a preliminary schedule of future events with regard to the project. The selection process is anticipated to require until May 1989 for advertising, screening, interviews and contract negotiations, assuming the Board approves the draft RFQ' s. The preliminary schedule further contemplates that the appointed architect will complete the schematic design services by January 1990. In accordance with the Board request, a workshop has been scheduled before the Board on Tuesday, January 31, 1989 at 2: 00 p.m. in the Board Chambers to inform the Board and the Community of the activities related to the Hospital replacement study. Martinez City officials, the local news media and the Project Oversite Committee have been notified of the date and time for the workshop. cc: Health Services Director General Services Director County Counsel Community Development Director t s . /ad THE BOARD OF SUPERVISORS, OF CONTRA COSTA COUNTY, CALIFORNIA Adopted this.Order on —_ June 3. 1997 , , by the following vote: AYES: Supervisors Rogers, Uilkema, Gerber, Canciamilla and DeSaulnier NOES: None ABSENT: None ABSTAIN: None SUBJECT: ACCEPTING CANVASS OF VOTES FOR POLICE SERVICE DISTRICT P-6, ZONE 124 The Board received the Certificate of the County Clerk giving the results of the May 6, 1997 Special Election for Police Service District P-6, Zone 124, wherein each landowner of the district was allowed one vote approving Ordinance No. 97-6 so as to authorize a special tax on property located in Zone 124 of County Service Area P-6 to maintain funding for increased police protection service. The Board hereby ACCEPTS the Canvass of votes from the County Clerk- Recorder showing the Measure passed as follows: Total Landowner Voted Yes No 6 6 6 0 o hereby certify that this is a true and correct copy of an action taken and entered on the minutes of the Board of Supervisors on the date shown, ATTESTED: June 3. 1997 PHIL BATCHELOR,Cierk of the Board o upervi and Co ty dministrator 0 By 4AA Deouty Orig. Dept.: cc: Elections Officer Community Development County Counsel County Administrator County Auditor-Becky a:\labdcanv