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HomeMy WebLinkAboutMINUTES - 04281992 - 2.1 TO: BOARD OF SUPERVISORS ; .. Contra FROM: Costa Phil Batchelor, County Administrator : •AQ County DATE: April 28 , 1992 r � Trq-c0u�`�' SUBJECT: Merrithew Hospital Replacement Project Status' Report SPECIFIC REQUEST(S)OR RECOMMENDATION(S)&BACKGROUND AND JUSTIFICATION RECOMMENDATIONS 1. Acknowledge that several steps have been taken toward the financing and construction of the Merrithew Hospital Replacement Project. since the Board approved the project on March 3 , 1992. The most significant accomplishment has been the receipt of the ratings of Al from Moody' s - Investors a Service and A+ from Standard & Poor' s for the project. 2. Affirm that the Financial Advisor and Underwriters have determined that the issue size for the -Merrithew Hospital Replacement Project will be $114,960,000. 3 . Acknowledge that. the Underwriters for the project have determined that .the total interest rate charge for the financing is anticipated to be 6.7% or less due_ to the high ratings and favorable market conditions. 4. Affirm that the sale of the Certificates of Participation for the project will be completed on April 28 , 1992 and the final closing with the funds available for the project will be May 13 , 1992 . 5. Acknowledge that while contract negotiations are continuing for the final phase of the architectural agreement, the architects (KMD) are maintaining the work schedule toward completion of the Design Development documents. 6. Acknowledge that Hospital Steering Committee meetings have been scheduled through August 1992 for review of the Design Development Documents. CONTINUED ON ATTACHMENT: YES SIGNATURE: RECOMMENDATION OF COUNTY ADMINISTRATOR RECOMMENDATION OF BOARD COMMITTEE APPROVE OTHER SIGNATURE(S): ACTION OF BOARD ON Anri 1 9.8, 1 qw, APPROVED AS RECOMMENDED X OTHER X The Board APPROVED the recommendations contained in the above report, and AGREED to have a public open house tour in the Richmond Health Clinic in Richmond, and to meet with the Brookside Hospital Board immediately thereafter in the Richmond Clinic to discuss common interests and proposed joint venture participation under Series B, and to have appropriate staff available at the May 6 meeting with the Los Medanos Hospital Board to discuss financing, including the policy for using special district augmentation funds in Contra Costa County. VOTE OF SUPERVISORS I HEREBY CERTIFY THAT THIS IS A TRUE X UNANIMOUS(ABSENT ) AND CORRECT COPY OF AN ACTION TAKEN AYES: NOES: AND ENTERED ON THE MINUTES OF THE BOARD ABSENT: ABSTAIN: OF SUPERVISORS ON THE DATE SHOWN. CC: County Administrator ATTESTED &ril: 28, 1992 Health Services Director PHIL BATCHELOR,CLERK OF THE BOARD OF SUPERVISORS AND COUNTY ADMINISTRATOR BY ,DEPUTY 7 . Acknowledge that the Health Services staff have met with the recently appointed Administrator of the Los Medanos Community Hospital on April 16, 1992 and further meetings are scheduled for discussion of joint service cooperation. 8. Approve the action of the selection committee reviewing construction management firms in recommending two firms as the top ranked among the final six firms interviewed. 9. Direct the County Administrator to initiate negotiations for an agreement for construction management services. 10 . Authorize and direct the County Administrator to continue negotiations with the Martinez School District for a cooperative, long-term parking arrangement for Merrithew Hospital staff, since preliminary meetings with the District, their engineers and the City of Martinez indicate a favorable agreement can be attained. 11. Acknowledge that preliminary steps have been taken by the Health Services staff to establish the committees for community liaison and construction advisory as directed by the Board, in order to fully integrate the committees into the Health Services Department structure. BACKGROUND The Board on March 3 , 1992 directed the County Administrator and Health Services Director to proceed with the financing and construction of the Merrithew Hospital Replacement Project. Since that date a significant number of steps have been taken to accomplish the Board' s direction, as outlined in the recommendations. The confirmation of the County' s excellent credit rating by the rating agencies has allowed the underwriters to move forward at a rapid pace for the sale of the Certificates of Participation to finance the hospital replacement project. The high ratings will result in substantial long-term cost savings through reduced interest rates for the borrowing. There have been continuing meetings with the project architect, both for contract negotiation and for the on-going process of development of the Design Development documents. The project design becomes more refined as the process proceeds. A Selection Committee consisting of representatives from Health Services, General Services, Affirmative Action, County Administrator and the project architect reviewed 14 submittals for selection of a construction management firm to assist with the management of the project. The committee subsequently interviewed six well qualified project teams. The County Administrator has further interviewed two of the top ranked firms. Additional references are being checked on the individuals proposed for each of the two project management firms. Each of the two firms presented strong, well experienced project management individuals backed by a well qualified support staff. The top ranked firms are O'Brien-Kreitzberg & Associates, Inc. located in San Francisco and the firm of CRSS Constructors, Inc. located in Irvine. The County Administrator will return a final contract to the Board for approval based upon the negotiations and the results of the in- depth reference checks currently in progress. Health Services staff have met with the newly appointed Acting Administrator for the Los Medanos Community Hospital to discuss areas of mutual interest and have scheduled a further meeting on May 6 , 1992 to discuss joint service arrangements consistent with the direction given at the March 16 , 1992 meeting between the Board and the District Board. County staff and the project architects have met with the Martinez School District Superintendent along with the school consulting engineers to explore in-depth the feasibility and cost for joint development of parking for the hospital and the high school. A subsequent meeting was held with the City of Martinez on the issues. The costs and engineering appear very favorable for both the County and the school district. A further meeting is scheduled to discuss the conceptual terms of an operating agreement. If the arrangements are successful, approximately 120 additional parking spaces will be made available to the hospital staff within one year at a very convenient location. The enthusiasm of the staff and others involved in the project is a strong factor in working to assure a successful project. With the funding to be in place on May 13 , 1992 the focus will move to the technical execution of the construction where there is a strong team in place. Orig. : County Administrator cc: Health Services General Services