HomeMy WebLinkAboutMINUTES - 04251989 - T.1 T. 1
THE BOARD OF SUPERVISORS OF CONTRA COSTA COUNTY, CALIFORNIA
Adopted this Order on ,April 25, 1989 by the following vote:
AYES: Supervisors Powers, Fanden, Schroder, McPeak, Torlakson
NOES: None
ABSENT: None
ABSTAIN: None
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SUBJECT: Third Workshop on the Replacement of
Merrithew Memorial Hospital
The Chairman convened the third workshop on the replacement of
Merrithew Memorial Hospital to consider options available for
financing the construction of a new facility and to consider
information pertinent to the selection of architectural and finan-
cial advisors.
Mark Finucane, Health Services Director, provided the Board
with copies of the "Market and Financial Analyses for a Replacement
Contra Costa County Hospital" prepared by Robert A. Derzon and Joan
Meisel, Vice Presidents of Lewin/ICF, 5028 Geary Boulevard, San
Francisco, California 941188 .
Mr. Derzon commented briefly on the scope of the report and
referenced the results of the financial analysis as shown in
tabular form on Page 4 (Attachment A) . He noted that the results
show that the financial support provided by the County to the
Hospital, if the facilities are replaced, could increase from $6 . 2
million for 1988 up to a range of $11. 8 million to $19.5 million
"for fiscal year 1996 . Mr. Derzon referred to the two final sce-
narios, in which the County does not replace the Hospital but
corrects currently known deficiencies in the facilities at a cost
of $12 million indicate that, given the achievement of the projec-
tion assumptions, the County contribution could increase to $8. 8 to
$9.7 million by 1996 . It was brought to the attention of the Board
that this last scenario does not reflect on the need to correct any
future deficiencies that may arise as a result of meeting
accreditation/licensing requirements or major repairs to the
facility.
Since the report was just provided to the Board, there was
consensus to consider this matter on another day to give Board
members and staff opportunity to review the report and to consider
it on May 9, 1989.
Therefore, IT IS ORDERED BY THE BOARD that the Lewin/ICF
report is hereby RECEIVED.
IT IS FURTHER ORDERED that Board Members are REQUESTED to
submit comments/questions to the County Administrator and Lewin/ICF
Consultants prior to May 9, 1989, when this report will be consid-
ered by the full Board.
I hereby certify that this is a true and correct copy of
an action taken and entered on the minutes of the
Board of Superviso on the date shown.
CC: County Administrator ATTESTED: —
� � K•✓j ��
PHIL BATCHELOR,Clerk of the Board
Health Services Director of Supervisors and CountyAdminiatmtoe
Athens Management Engineers ey � .
3093 Citrus Cir . , #180 .deputy
Walnut Creek 94598 tv
" A T T A C H M E N T A
Mr. Mark Finucane
April 21, 1989
Page 4
Merrithew Memorial Hospital
Results of Financial Analysis
Project Cost County Contribution (OOOs)
Scenario MOOS)* 1992 1996
A - Business as Usual $88,788 $8,476 $13,823
B - "Good" Market 96,701 8,481 14,918
,Z340qqe.,z
C - "Bad" Market 15,579
D - Business as Usual with 84,345 8,176 11,808
Aggressive Utilization
Management
Business as usual, with
optimistic financial
assumptions 88,788 5,676 10,015
Business as usual, with
pessimistic financial
assumptions 88,788 8,672 17,936
Business as usual,
remaining in the current
facility 12,000 8,642 9,737
Aggressive utilization
management, remaining
in the current facility 12,000 8,382 8,843
"Worst" case scenario 88,788 9,411 19,451
*Source of project costs: Estimates by Stone, Marraccini, and Patterson (the
County's original architectural consultants) and Department of Health staff.
Note: The estimated County contribution for Merrithew in fiscal year 1988 was
$6,202,000.
The two final scenarios, in which the County does not replace the
Hospital, but corrects currently known deficiencies in the facilities at a
LewinllCF
A T T A C H M E N T A