The mood in the room last night bordered on celebratory, as the Sonoma Valley Hospital board members unanimously agreed to go forward with Chief Executive Officer Carl Gerlach’s plan for a new general obligation (GO) bond measure. Community member Carl Rogge, summed it up saying, “I’m proud of our community and particularly proud of you guys. I think this is pretty good. I think it’s saleable.”
Gerlach’s plan is a $35 million, 21-year general obligation bond measure for current site infrastructure only. He emphasized that no land, no new separate facility planning and no prior planning costs would be included. He said the tax impact on property owners would be $15.49 per $100,000 of assessed value. Gerlach outlined the budget for the bond as follows:
Central utility plant (CUP) and components – $20.4 million;
HVAC upgrades (air handling, and air conditioning) – $2.3 million;
West Wing seismic upgrades – $2 million;
Electrical panels – $700,000;
Master Plan required by SB306 to satisfy legislative requirements that would allow the hospital to defer any building to 2020) – $600,000;
Medical equipment – $400,000;
Information technology (GO bonds can’t pay for servers or software, Gerlach said, but can pay for the server room.) – $1 million;
Prior infrastructure debt (Next April, he explained, the hospital will expect an operating debt of $4 million and it makes good operating sense to refinance that to provide needed working capital) – $4 million;
Board members praised Gerlach for his clarity, his precision, and his receptiveness.
Board chair Dick Kirk said, “I’m aware also that you have included comments and suggestions that people gave at the last meeting – such as Peter Hohorst’s suggestion of the 21-year bond period. So you have responded to people’s concerns.”
Board member Bill Boerum agreed. “I think Carl and the staff have done a terrific job. Outstanding work. Which I fully support…The board will be doing everything it can possibly do to get this passed.”
Gerlach, accepting the praise, said, “I look out into this room and there are a lot of people here who have helped us with this. The facility upgrade group, FUG, has been working on some incredibly challenging issues to make sure our thinking covered the bases. The finance committee did a great job. I think we got a lot of community expertise and input.”
Board member Arnold Riebli said, “This is as good as it’s going to get. If this doesn’t happen, there’s probably going to be no tomorrow. We can’t get 67 percent of this community to agree to build a new hospital. We have to accept the facts as they are, and work with what we have, and look each other in the face – and I have to look at each of you and say, I’ve done the best I can.”
The board agreed to defer a formal vote on the plan until next week, allowing for time to refine and clarify the language.
