Hospital okays $12 million bond sale

The Sonoma Valley Health Care District board of directors voted unanimously on Wednesday night to authorize the issuance and sale of $12 million in bonds. This represents the first issuance or “tranche” of the $35 million of general obligation bonds authorized in November by Measure P, and enables the hospital to take the first steps toward renovation. The 4-0 vote was greeted by applause from the audience; Board member Arnold Riebli was absent from the meeting.
Sonoma Valley Hospital Chief Executive Officer Carl Gerlach put to rest any remaining concerns whether failure to qualify for an SB 306 extension could force the hospital to close. He said smilingly, and emphasizing first three words, “Yes we can operate the hospital after 2012 without SB 306.” Even so, he is working with Assemblymember Jared Huffman and Senator Patricia Wiggins to correct the flaw in the bill that excludes SVH.
Gerlach reminded the board that SB 306 would simply enable the use of the central wing for inpatient services from 2013 to 2020. He pointed out that the majority of the in-patient services in that wing are non-surgical, and could be relocated. Regardless of the central wing status, he said, all bond-funded initiatives go forward.
Marilyn Goode urged the board to move forward. “The only thing to fear is fear itself,” she said. “You need to go forward, and sometimes, it’s better to act than not act. And this is the time to do so.”
The district’s Finance Committee Chair Alden Brosseau supported Gerlach’s view. He said the finance committee voted to recommend moving ahead because of its confidence in the current management and because of the urgency. “We need to do it from a point of view of safety, good service to the community, attracting business,” he said. “We need to do it and to do it now.”
In other business, the board approved a new anesthesia contract, said there was progress with the joint powers agreement, and heard an encouraging financial report. “We are ahead $1 million for the first six months,” said Brosseau, “and $800,000 ahead of last year.” He attributed this gain to what he called a new, tough-minded management attitude.