Hospital's Auditor: ‘All Good News’

Tulare - The financial news was good all around when Rick Jackson presented Tulare Regional Medical Center trustees with the financial audit for the fiscal year that ended June 30.

Board Chairman Dr. Parmod Kumar stressed Jackson, owner of TCA Partners LLP in Fresno, works directly for the board and “gives us an independent eye” as to what Chief Executive Officer Shawn Bolouki, Chief Financial Officer Fred Capozello and other finance staff members have reported.

The auditor confirmed the district had a $4.2 million operating income in 2009-10, and also said federal stimulus money will save taxpayers millions of dollars in interest payments over the lifetime of the general obligation bonds sold to fund the hospital's expansion.

“It's all good news today,” Jackson told the board on Sept. 22. “It's probably the best news the hospital has had in my recollection.”

The infusion of stimulus money is the result of the district choosing to sell Build America taxable bonds, which have higher interest rates, than the traditional non-taxable issue.

During his presentation, Jackson spoke of a $40 million savings to taxpayers and Capozello later explained that was the gross amount generated by the Build America Bond program. The district's bond consultant placed the net savings to taxpayers at $11.9 million.

The hospital also saw a $10 million increase in net assets in 2009-10, of which $4 million came from operations alone, Jackson said.

“A lot of hospitals don't experience this,” he said.

Capozello said Tulare Regional's operating margin as a percent of revenues was 5.2 percent, exceeding the district's goal of 4.5 percent.

The district is challenging itself to reach 6 percent in the 2010-11 fiscal year, he added.

Jackson warned Tulare Regional will see an approximately $2 million increase in depreciation and a $4 million hit in interest expenses when the hospital's new medical tower opens in 2012.

“Be aware and plan accordingly,” he said.

With regards to the district's $70 million bond sale, Jackson said Tulare Regional “hit the market just right,” because $62 million qualified for Build America Bonds, a federal stimulus tool that will end Dec. 31.

The stimulus money is offsetting about 35 percent of the interest and the federal government is sending the district a rebate of about $800,000 twice a year, which reduces taxpayer payments, Capozello said.

“It was a great program for you,” Jackson said.

He reported the district is expected to get an estimated $4 million more in federal stimulus money before Dec. 31 as part of legislation enacted by the state.

“I'm excited with how things are progressing around here … at a time when things are really tough,” Jackson said.

In related matters, the audit report indicated:

· The district's regular property tax revenues – which comprise about 2 percent of its financial support – were down slightly, going from $1.47 million in 2009 to $1.43 million in 2010.

· The district's combined operating and non-operating revenues were $5.62 million more than expenses.

· The amount of traditional charity care and unpaid Medi-Cal and county indigent program charges increased, going from $64.57 million in 2009 to $78.55 million in 2010.

· Unpaid Medicare program charges also increased, going from $54.16 million in 2009 to $56.36 million in 2010.

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New Chamber CEO Has Local Roots

Tulare - Nina Akin, director of membership and sales for the Visalia Chamber of Commerce, is leaving that job to become president and CEO of the Tulare Chamber on Monday.

Tulare chamber officials announced Akin's selection Friday, bringing to a close a selection process that drew approximately 40 applicants. She will replace Nona Watson, who left the chamber in early July and was recently named CEO of the Palm Springs Chamber of Commerce.

Chamber Chair Patty Rocha, a member of the selection committee, said she was impressed by Akin's “vast knowledge” of chamber work and the area.

“She knows our community and she knows the economics of our community and our Valley,” Rocha said. “She also has a great personality, is outgoing, energetic and friendly.”

Interim CEO Tony DeRose said Akin has worked and been “very successful in the sales and marketing arena” and did this and other types of work for the Visalia Chamber.

“I think we're very lucky to have found someone like her,” De Rose said.

Akin said the Chamber of Commerce is the core of a community and she likes that it is the nucleus of most activities.

She was a good friend of the late Jennifer McCoun, who was president and CEO of the Tulare Chamber when she died in a 2009 skydiving accident. Friends had encouraged her to apply for McCoun's position, but Akin said the time wasn't right.

When the position came open again this year, she said she thought: “It's time. I think that's where I'm supposed to be.”

McCoun was not Akin's only connection to the Tulare Chamber. She also is a 2002 graduate of its Leadership Tulare program, which she participated in while working as director of sponsorship for World Ag Expo.

Born in Indonesia, where her father worked for a construction company, Akin moved to Hanford with her family when she was 2-years old and was raised in that Kings County community.

After graduating from Hanford High School, she joined the Army, spending three years working in Germany for its security agency. After her discharge, she lived in Delaware before moving back to the Valley, where she graduated from College of the Sequoias and then attended California State University, Fresno.

Her senior year, she said, she decided to stay home to tend to her two baby boys. She later worked at Gottschalks in Hanford, where she eventually became an area manager for the cosmetic and accessories department. From there she joined Provident Mortgage, where she marketed loans.

She later worked as an independent contractor, coordinating sponsorships for the Tulare and Kings County fairs, before going to work for World Ag Expo for three years. Her career also included a stint as ad director for the Hanford Sentinel before she joined the Visalia Chamber.

DeRose, a recently retired Wells Fargo bank executive, said he will stay on at the chamber during the transition and has made a commitment to see certain projects done and to work with Leadership Tulare through April.

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Maple Area Could Get Sidewalks Next

Tulare - The Tulare Redevelopment Agency has rolled out more than 24,000 square feet of new sidewalks and other improvements in the Roosevelt Elementary and Mulcahy Middle school area over the past two years and now the focus is shifting to the Maple School neighborhood.

The agency has contracted with TPG Consulting in Visalia to study the 75-block area surrounding the West Cross Avenue campus with an eye toward developing a plan to create safer routes to walk or bicycle to the school. The agency then will search for money to make the improvements.

Organizers of next Wednesday's Walk to School Day hope the success of the earlier effort, which is in its third phase in the Roosevelt/ Mulcahy area, will prompt Maple neighborhoods to participate in the event, which will coincide with the International Walk to School Day.

Those who work and live in Roosevelt/Mulcahy neighborhoods say the newly constructed sidewalks have made a big difference in that neighborhood.

“I have seen not only more kids walking to school, I've seen more parents as well,” said Roosevelt School Principal Ira Porchia. “I've even seen parents exercising on it, walking around the Mulcahy School campus.”

Porchia was among the more than 800 students, parents, teachers, administrators and community leaders who participated in the 2008 Walk to School event and provided the feedback that led to an action plan.

The walk was “eye opening” to Mayor Craig Vejvoda, who made the walk with Councilman Richard Ortega and City Manager Darrel Pyle. “I don't walk those streets and the lack of sidewalks was a real concern and I'm glad we've made improvements.”

Diana Salinas, Roosevelt's parent community coordinator for more than 20 years, said the school children needed a place to walk and so did parents, most of whom walk to school with strollers and are benefiting from the handicapped access curbs installed on corners as part of the project.

“The parents at the Coffee Club and different meetings we have say it's made a big difference,” Salinas said.

While the primary reason for the improvements was to create safe routes to school for children, Porchia said teachers have enjoyed the new sidewalks as well.

Last year he organized a camaraderie building day in the spring for his staff and the teachers walked the perimeter of Mulcahy School twice, logging a mile.

“Some of my teachers decided they would run and we cheered on the teachers behind us,” he said. “Then we had kids from the neighborhood who came out and cheered for us. We love it.”

Tulare Western High School students from the ASB class and Link Crew program have signed on to help with the Maple event Wednesday and will organize walking school buses to help students get safely to school.

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Mediation on Three Lawsuits Set for Oct. 8

Tulare - Attorneys for the plaintiffs and defendants in three civil lawsuits involving the City Council or individual members will attempt to resolve the issues in a mediation session scheduled for Friday, Oct. 8, before retired Tulare County Superior Court Judge Howard Broadman.

All three cases involve Visalia attorney Michael Lampe, who blasted city officials on Sept. 21 for dismissing Gregory Wedner, who had been representing them in one of the cases involving alleged Brown Act violations, and then asking to reschedule the mediation so Martin Moczanowicz, the new city attorney could have time to become familiar with the case.

Wedner had requested the early mediation on Aug. 4, a day after he took Councilman Richard Ortega's deposition, according to Lampe.

“You people have a history of shooting the messenger when you don't like the message,” he told the council prior to its closed session on the matter.

He made specific reference to former City Attorney Steve Kabot who was fired and interim City Attorney Seth Merewitz, whom Lampe said was “too cautious for certain members of the council.”

The direction to mediate came from the City Council on Aug. 17 and since he had not seen the case on the closed session agenda since then, Lampe said he assumed City Manager Darrel Pyle made the decision to delay the talks.

City officials have said the reason they put out a request for a new city attorney was to find a firm that could handle a variety of cases, thus reducing the number of times the city has to hire special counsel at higher rates. Cota Cole, where Koczanowicz works, has attorneys who can handle cases for which the city now has special contracts, they said.

Tulare attorney Dennis Mederos, who represents the Tulare Industrial Site Development Foundation, which is a defendant in one of the three cases, also spoke to the City Council.

“I am encouraged about the parties talking about a global resolution,” Mederos said before urging the council to pay for Wedner to participate in the mediation and “get it done.”

Koczanowicz said later in the week that the council will mediate. Lampe said he was told Wedner will participate.

Lampe represents:

· Several Tulare residents, including his parents John and Joyce Lampe, in Sparlin v. City of Tulare, a lawsuit charging the city violated the Ralph M. Brown open meeting law on April 20, May 18 and June 2 ,when the council went into closed sessions to discuss what was listed only as “anticipated litigation.” Lampe contended, among other things, the description failed in each case to provide enough information to comply with the law.

· Former Mayor Tom Drilling in a lawsuit against Councilman Richard Ortega, the Tulare Industrial Site Development Foundation and the Tulare Motor Sports Complex. Allegations center around Ortega's vote on Nov. 21, 2006, in support of a memorandum of understanding involving the city, TMSC and TISDF. Ortega sat at the time on the board of directors of the for-profit foundation, which had expected to receive a commission for facilitating land sales for the racetrack project.

· Former Tulare Mayor Dr. Tom Drilling in a lawsuit against Phil Vandegrift, charging the vice mayor illegally accepted $200,000 from Hidden Oak Development after the company sold the city land on Cartmill Avenue and Highway 99 for $5.24 million. Vandegrift, a real estate broker, did not vote on the sale and said the money was for work he did on the property in the six years prior to Hidden Oak and the city entering into negotiations.

The city is paying for attorney services in the Brown Act case and in the one involving Ortega, presumably because the then-city attorney told Ortega he could vote in the matter. Vandegrift must pay for his own defense.

Lampe spoke to the City Council a second time on Sept. 21, after the closed session and during the public comment portion of the regular meeting.

This time he questioned why two weeks after he had told a city official, City Council members still were unaware of a sworn declaration he had received regarding the appraisal of the Cartmill property involved in the Vandegrift case.

“This lawsuit can only benefit the city,” said Lampe, who asked later, “How can that happen…?”

The declaration by a Bakersfield MAI appraiser said the appraisal contained a wrong purchase price for a piece of property used for comparison purposes and omitted other relevant information. He estimated the fair market value of the property at $1 million to $2 million less than what the city paid.

Lampe also criticized Mayor Craig Vejvoda for comments made on KTIP radio regarding the lawsuits against Vandegrift and the city.

“It's all because …they don't want the Motor Sports project to happen,” he said, according to a transcript of the Sept. 13 broadcast. “It's disgusting.”

“You embarrass yourself when you say things like that; you embarrass the community at large,” Lampe told Vejvoda.

He told the mayor he is obliged to protect the city, not a “flawed politician.”

Neither Vejvoda nor any other council member responded to Lampe's comments.

The mayor said later he didn't want to jeopardize a possible settlement with any comments he might make.

Vandegrift has denied wrongdoing and, as for the appraisal specifically, he said he had nothing to do with it.

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