Your account does not include highlighter on images.
Searches Highlighted on Image
National Sponsors
| September 28, 2011 Indian Valley Record |  |
|
©
Indian Valley Record. All rights reserved. Upgrade to access Premium Tools
PAGE 2 (2 of 32 available) PREVIOUS NEXT Jumbo Image Save To Scrapbook Set Notifiers PDF JPG
September 28, 2011 |
|
|
Website © 2025. All content copyrighted. Copyright Information Terms Of Use | Privacy Policy | Request Content Removal | About / FAQ | Get Acrobat Reader 
|
2A Wednesday, Sept. 28, 2011 Indian Valley Record
Portola loans $348,000 to EPHC
Diana Jorgenson
, Staff Writer
djorgenson@plumasnews.com
Portola's City Council
unanimously voted to loan
Eastern Plumas Health Care
$348,000 to pay off a loan on a
34-acre parcel adjoining the
hospital. The low-interest
loan will reduce the hospital's
monthly payments, ultimate-
ly easing EPHC's struggle
with cash flow.
Although the loan indicates
the city's willingness to help
the hospital, there continues
to be much discussion about
who can or will develop the
property and about the prop-
erty's value relative to devel-
opment.
EPHC's Chief Executive
Officer Tom Hayes, along
with board members Larry
Fites and Jay Skutt, first pre-
sented the council with a re-
quest to buy the property
outright at the June 8 meet-
ing of the city council. Coun-
cil members, who are cur-
rently under attack by for in-
stituting/'ate hikes commu-
nity members feel they can-
not afford, were reluctant to
purchase a property for
which they had no use.
Real estate agent B.J. Pear-
son, one of the community
members protesting rate in-
creases, argued for a city pur-
chase of the property, stating
that the city had the authority
to re-zone the property (cur-
rently about two-thirds resi-
dential and one-third light in-
• dustrial) into light industrial,
an act that would automati-
cally increase its value.
The council was reluctant to
enter into the development
business in the current econo-
my, especially since Wood-
bridge, both residential and
commercial, was at a stand-
still and the Portola 192 project
had stalled. Other develop-
ment plans had been unsuc-
cessful so there was discus-
sion of how a city-financed de-
velopment would impact or
compete against developments
already in progress. City staff
worried that they did not
have the financial or man-
power resources to invest in
infrastructure.
There was also consider-
able discussion about the
property's value. EPHC origi-,,
nally purchased the property'
for $552,000 in 2003 at 7.8 per.
cent interest, with monthly
payments of $5,200 and a final
balloon payment of $26',000
due in 2013. EpHC currently
owes $548,000. "*
At the June 8 meeting, the
council asked Hayes and
board representatives to se-
cure a current appraisal of
the property and offered the
hospital a loan rather than
was less than EPHC owed on
the property. He did add that
there were few property sales
to compare with, but a recent
one-haft-acre plot zoned light
industrial in the area had sold
for $29,000.
City Manager Leslie Tigan
reported that the hospital dis-
trict board had also approved
a conflrct waiver, which al-
lowed Gross to participate in
discussions. Gross responded
that for the city to pay more
than the land was appraised
for might leave the city open
to charges that the purchase
was "a gift of public funds."
By the same token, if the
city loaned the money, using
the property as collateral, did
outright purchase. At that the hospital have some fiddi-
timd, they also voted to,waive.ti0nfil collateral to make the
conflict of interest regarding" difference between the ap-
legal advicefrom Steve Gross/ praised amount and the
who represents both the city'), amount owed? This question
and EPHC :'
At that time, Supervisor
Terry Swofford also agreed to
approach the county to see if
it Would be willing to loan
hatfof the amount.
City Finance Officer Susan
Scarlett sent the hospital
some loan terms for review,
te.rms that envisioned sharing
$1.1 million loss to EPHC,
which houses approximately
60 patients in the two facili-
ties in Portola and Loyalton.
"If that decrease goes into
effect, there's no doubt in my
mind that we'll have to close
both units," Hayes said. He
added that 65 employees
would lose their jobs.
Council member John Lar-
rieu noted that a loan from
the city would be a one-time
infusion and asked if it
would help with the skilled
nursing unit situation. It
would not, said Hayes;
they're separate issues. One
of EPHC's largest loans was
used to renovate the skilled
nursing unit and he was not
sure the district would be
able to continue payments on
that if the skilled nursing fa-
cilities were closed.
Community member Larry
Douglas urged the council to
buy the property outright.
Council member William
Weaver invited B.J. Pearson
to offer his expertise. Pearson
started by stating that it was
obvious that the city could
not solve this problem by it-
self; the hospital district en-
compassed Graeagle and Sier-
ra Valley as well.
"I believe it's better for the
taxpayers for the city to buy
came.Smm ScarieSt.
Hayes saidff, but pro-
posed, "We would Jike to start
breaking up the property into
parcels now."
Hayes gave an update of the
hospital's current financial
situation since the last meet-
ing, when he had reported a
half-million dollar loss in Feb-
t
coaty: 15 years, interest only
payments for the first year,
interest rate at 1 percent
above LAIF rate (currently 0.5
percent) adjusted annually.
EPHC's monthly payments
would be roughly $2,260, di-
vted equally between the
cfl] and the county, if the
county participates.
By the Sept. 14 meeting,
Swofford had enlisted the ex-
pertise of County Assessor
Chuck Leonhardt to provide
an appraisal of the M-acre
piece. Leonhardt valued the
property at $6,000 to $7,000 per
acre, for a high-end total of
$238,000. .;
Haes returned to tti0un-
cil wth vice chairman Larry
Fite at the last meeting to
contfnue lobbying for finan-
cr'help. He was disappoint-
etby the valuation, which
debt burden with the oruary. Since then he had cut
back at the hospital: every-
body took a cut in pay. Hayes
expected to end the year with
an $800,000 - $9OO,000 loss in
operating income, which
would amount to a $150,000 to
$200,000 overall loss, once tax
receipts and donations were
factored in.
"Our Achilles' heel is cash;
we don't have enough cash,"
he said.
Cui'rently, the hospital is
trying to refinance its debt
burden, he reported. There
are also ominous signs from
the federal government re-
garding MediCal and
Medicare payment rates. The
state had already passed cuts
to MediCal payments to
skilled nursing units, but the
federal government still had
to approve the reductions.
The state cuts amount to a
MAXIMUM CHOIC
MINIMUM PRICES
For 12 ronths
PLUS
Packages Starting at
i ......
FOR LIFE'
TV Everywhere I
Plumas Satellites
Serving Plumas & Lassen Counties Since 1989
(800) 434-7428 N w o
AUTHORIZED RETAILER
e ,
the property rather than the
loan, and here's the reason.
The city has the unique abili-
ty to legally create value, as it
did with Woodbridge."
The city can divide the
property any way it wants as
well as re-zone it. People will
buy smaller parcels, he said.
"What I think has to hap-
pen is this: The city buys the
property and, at the same
time, sets up a committee of
two people, with people from
Sierra Valley and a couple
from Graeagle, and you start
the process right now for a
special election.
"If you want to save the hos-
pital, what's going to have to
happen: the people will have
to backfill the money the state
takes from us. I suggest that
you structure it with a very
narrow scope: this can only
be used for operating capital,"
Pearson proposed.
"I think that if the people
understood that it was only to
keep the doors of the hospital
open, they'd vote for it. And if
they don't, we're going to lose
our hospital."
There was considerable dis-
cussion about appraisals,
their cost ($4,000 - $5,000),
who should parcel out the
property and sell it -- discus-
sions which did not result in
consensus. Council members
Juliana Mark and Weaver
spoke for the city buying the
property outright; Larrieu
voiced caution and advised
that the city get an official ap-
praisal before committing
further.
Fites commented, "Speak.
ing as one board member,
Eastern Plumas will not
close. The skilled nursing
unit is only one part and we
will keep as much open as we
can."
He offered to begin a plan
for dividing up the property.
Scarlett then suggested that
the city go ahead and give the
hospital the full loan, with or
without the county's involve-
ment, and continue working
out the details regarding the
property.
Tigan agreed, saying that
subdividing and providing in-
frastructure was both time
consuming and costly: "All
that splitting up is a nice dis-
cussion, but it's a long,
lengthy project." She remind-
ed the council that the city
had a part-time planner and a
reduced staff.
The council then voted to
loan EPHC $348,000 at the
terms discussed, with proper-
ty developmeht details to be
worked out at a later date.
Accused pleads not guilty
in Antelope Lake shooting
Dan McDonald
Staff Writer
dmcdonald@plumasnews.com
The man charged with
shooting a Susanville resi-
dent to death during a car
chase won't have a prelimi-
nary hearing until early next
year.
Gregory Chad Wallin-Reed
agreed to wait until Jan. 19,
2012, for the hearing to allow
his defense attorneys more
time to review evidence.
Wallin-Reed, 36, of Reno,
who has pleaded "not
guilty" in the shooting death
of 20-year-old Rory McGuire,
appeared in Plumas County
Superior Court on Friday,
Sept. 23.
A pre-trial conference
scheduled for that day was
continued to Dec. 16 at 11 a.m.
Judge Thomas W. Kelly
asked Wallin-Reed if he un-
derstood that he had the right
to a quicker trial.
"Yes, sir," Wallin-Reed re-
sponded.
Wallin-Reed is charged
with murder in the July 2
shooting of McGuire, who
died July 4 at Renqvn Region-
al Medical Center in Reno.
McGuire was flown to the
medical center after suffering
a gunshot wound to the head
near Antelope Lake.
Wallin-Reed, who reported-
ly admitted to the shooting
during a 911 call, was arrested
July 3. He was charged with
murder after McGuire died.
He is being held in the
Plumas County Jail on $1 mil-
lion bail.
Wallin-Reed is accused of fir-
ing several rounds from an AR-
15 assault rifle at a car driven
by McGuire during a late-night
car chase. The chase began at
WaUin-Reed's residence along
the Janesville grade, about
nine miles from Antelope Lake.
Wallin-Reed told 911 dis-
patchers he chased the fleeing
car after the occupants stole
solar lights from his property.
About seven miles from
where the chase began,
McGuire was shot in the head
and hand.
Another two of the five men
in the car were also hospital-
ized after being wounded by
gunfire. Those two men both
survived.
Plumas
DISTRICT HOSPITAL
2011 Fall Health Screening
Testing Includes:
• Comprehensive Metabolic Panel
• ThyroidScreening
• Complete Blood Count (CBC)
• Cholesterol
• Triglycerides
• HDL, Direct LDL and Ratio
co0000$50
Optional Testing:
• Dexa Scan* (Bone Density
Screening): $25
• Prostate Cancer Screening: $15
*Appointment required. Appointments will be
scheduled at time of Health Screening only. No
phone appointments will be made.
October 10-13, 2011
6:30 am - 8:30 am
North Fork Medical Building
1060 Valley View Drive, Quincy
(Behind the hospital)
ff possible, please come on the day assigned to
the first letter of your last name. No
appointment necessary.
A-F Monday, October 10
G-M Tuesday, October 11
N-S Wednesday, October 12
T-Z Thursday, October 13
Must be 18 years or older for blood draws.
'/ou must not eat for 12 hours prior to the
blood draw. You may continue your normal
intake of water and take any medication as
usual.
To send an obituary, birth, death notice or legal, please
send it here: typesetting@p.!urnasnews.com
If you want to send a letter to the editor or a press release, please
send it here: dfragnoli@plumasnews.com