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HomeMy WebLinkAbout02-24-15 Ad Hoc Health Center Construction Minutes MEETING MINUTES AD HOC HEALTH CENTER CONSTRUCTION COMMITTEE February 24, 2015 2:30 PM County Board Room-Government Center County Board Room - 1101 Carmichael Road, Hudson, Wisconsin CALL TO ORDER Vice Chair Leibfried called the meeting to order at 2:30 p.m. ROLL CALL Attendee Name Organization Title Status Arrived David Peterson St. Croix County Supervisor Excused Agnes Ring St. Croix County Supervisor Present Deb Rasmussen St. Croix County Citizen Present Roy Sjoberg St. Croix County Supervisor Excused Daniel Hansen St. Croix County Supervisor Present Judy Achterhof St. Croix County Supervisor Present Shaela Leibfried St. Croix County Supervisor Present Suzanne Van Mele St. Croix County Citizen Present Scottie Ard St. Croix County Citizen Present OTHERS PRESENT: County Board Supervisors Roger Larson, Dave Ostness and Stephen Nielsen, County Administrator Pat Thompson, Facilities Director Jim Elsbury, Health & Human Services Director Fred Johnson, Health Center Administrator Sandy Hackenmueller, Corporation Counsel Scott Cox, Management Analyst Kristen Ziliak, Assistant Finance Director Bob Mittet, Fiscal Manager Beata Haug and Recording Secretary Monica Lucht GUESTS PRESENT: Representatives from Horty Elving, Rick Moore, Tu-Anh Johnson and Diedre Jones. Representatives from Market & Johnson, Kevin Renley and Kris Hahn. APPROVAL OF MINUTES 1. Ad Hoc Health Center Construction Committee - Regular Meeting - Jan 27, 2015 2:30 PM Motion by Ard, 2nd by Van Mele to accept the minutes of January 27, 2015 as distributed. RESULT: ACCEPTED PUBLIC COMMENTS None BUSINESS ITEMS 1. Home and Community Based Settings Funding Requirements The impact of new Federal regulations for Home and Community based settings were reviewed and discussed. Under the Federal regulations, facilities with the qualities of an institution or adjacent to a public institution (such as the Skilled Nursing Facility) are presumed not to qualify as home based facilities for funding waivers. The new regulations will be phased in through 2019. The County is seeking legal advice on the impact of the new regulations on the funding of the new facility. Meanwhile, the project planning will continue. RESULT: DISCUSSED 2. Design Update - Schematic Design Documents Horty Elving reviewed the Schematic Design (SD) documents. Any companies specifically listed in the SD document are just for basis of design, all divisions will be competitively bid. Questions from the committee about Focus on Energy HVAC systems, roof type, exterior landscaping and tornado protection were answered. Metal roofs are five to six times the cost of a regular shingle roof. Building sections of some corridors out of concrete anchored to the ground for tornado protection will be priced versus moving residents to individual interior rooms. Fire code for skilled care is designed around the concept of 24 hour staff with responsibilities for the safety of the residents. Costs for a therapy pool and adult daycare will be estimated for the concept budget and likely bid out as alternates. The pending updated Market Study by Wipfli will address the local market for pool therapy. Thompson asked the committee for approval of the Schematic Design to date. Horty Elving will then proceed to the next level of design detail. Motion by Hansen, 2nd by Ard to approve, in general, the plans to this point understanding they are fluid and will be changing. Discussion. Motion carried. RESULT: DISCUSSED 3. Market Study Update Johnson updated that the last Wipfli Market Study was presented to the Health and Human Service Board in July of 2014. Wipfli will provide updated Market Study data at the next Ad Hoc meeting. Occupancy rate projections were requested. RESULT: DISCUSSED 4. Wipfli Examination Update Johnson updated that Wipfli is working on an Examination Financial Forecast. 2014 financial outcomes and the 2015 Health Center budget have been submitted to Wipfli. The Examination will include financial performance forecasts for both Skilled Nursing and the CBRF. The viability of the Health Center and pending Federal regulations were discussed as was the ability of residents outside the County to use the CBRF. The design is for a regional center but St. Croix County residents would be accepted first. It was clarified that the 2014 Market Study could be found in the online packet for the July 2014 Health and Human Services Board meeting. RESULT: DISCUSSED 5. Health Center Project Financing Options Administrator Thompson reviewed four bonding scenario options provided by Joe Murray, bond consultant from Springsted. Breaking the $20 million in debt into two separate $10 million dollar issuance's maintains bank qualification, securing a lower interest rate and cost. Murray estimated the savings at $1.25 million with some rate inflation risk. The savings exceed the costs of a second issuance. Corporation Counsel Cox stated that in order to be bank qualified, the bond sales have to be in different years and there is a $10 million limit to be bank qualified. The first bond sale would take place 60 to 90 days after County Board approval with the second sale in approximately December, closing in January. Thompson explained that the bonding approval requires a 3/4 vote of the entire County Board membership and would likely take place in April or May. The two subsequent sale votes would require a majority vote of the County Board. Thompson recommended options 2a or 2b to save $1.25 million, preferably 2a, which is a 20-year repayment versus 16-years. A 20-year repayment schedule allows for some additional debt capacity for future capital bonding. Assistant Finance Director, Mittet answered questions about the bonding process and timelines. There was discussion about continuing to look at several funding options versus just bonding. Motion by Hansen, 2nd by Van Mele that the Ad-hoc committee recommends to staff that they prepare Option 2a, the 20-year bond plan, to go before the Administration Committee first in preparation for the April County Board meeting. Based on the roles and responsibilities of the Administration Committee in the Rules and Bylaws, the Administration Committee will sponsor the resolution to come before the County Board for bonding. Motion carried. RESULT: DISCUSSED 6. March 31, 2015 Committee of the Whole Agenda Thompson discussed meeting schedules for the design and bonding approval as well as presentation of the Wipfli Market Study and Examination. If the Wipfli reports are not final by the March 31, 2015 Committee of the Whole meeting, an additional Committee of the Whole meeting will need to be held in April with the bonding vote by the full County Board in May. Questions about the one month delay and any financial gap were answered. Thompson explained a $1 million budget amendment will come before the County Board at its March meeting for project costs incurred prior to bonding authorization. The $1 million is not in addition to the $20 million budget. If bonding is approved, the $1 million will be reimbursed by bonding. Thompson asked for the committees preference. Motion by Van Mele, 2nd by Hansen to delay the bonding resolution to separate Committee of the Whole meetings in March and April, with a May County Board vote. Discussion. Motion carried. RESULT: DISCUSSED ANNOUNCEMENTS & CORRESPONDENCE ADJOURN The meeting was adjourned at 4:34 p.m. DATE OF NEXT MEETING - MARCH 24, 2015 IN HUDSON