Asterisks “*” indicate anticipated action Action is not limited to those designated items PALOMAR POMERADO HEALTH (PPH) HOSPITAL, EMERGENCY CARE, TRAUMA CENTER IMPROVEMENT AND REPAIR MEASURE BONDS INDEPENDENT CITIZENS’ OVERSIGHT COMMITTEE (ICOC) NOTICE & MEETING AGENDA November 12, 2009 PPH Administrative Offices, 1 st Floor Conference Room 3:00 p.m. 456 E. Grand Avenue, Escondido, California Pg# Time Target I. CALL TO ORDER and ROLL CALL ................................................................................................................ 5 3:05 p.m. II. PUBLIC COMMENTS ....................................................................................................................................... 5 3:10 p.m. (5 minutes allowed per speaker, with a cumulative total of 15 minutes per group – for further details & policy, See Request for Public Comments notices, available in the meeting room) III. INFORMATION ITEM(S) ...................................................................................................... • PPH Audited Financials for Fiscal Year 2009 ............................. 5 3:15 p.m. IV. OATHS OF OFFICE .......................................................................................................................................... 5 3:20 p.m. • New Members – (As of July 1, 2009) John A. Amodeo, Alex A. Galenes, Ronald D. Klingensmith V. * MINUTES – ICOC Meeting – April 21, 2009 (Addendum A) ................................................ Ag2 ................ 5 3:25 p.m. VI. DISCUSSION AGENDA...................................................................................................................................... ............. REPORTS A. * Suggested Dates for Meetings in Calendar Year 2010 ...............................................Ag3-6 .............. 10 3:35 p.m. PRESENTATIONS A. Construction Auditor’s Report (Addendum B) Jeff Miller, Sub-contracted PPH Construction Auditor ....................................................... Ag7 .............. 15 3:50 p.m. B. Master Facility Plan – Status Report Mike Shanahan, Director of Facilities Planning & Development, PPH .............................. Ag8 .............. 15 4:05 p.m. C. Report on the RFP Process for Construction Contracts at PPH Marty Knutson, Corporate Compliance Officer PPH .......................................................... Ag9 .............. 15 4:20 p.m. D. District Expenditure Report for Fiscal Year 2009 (Addenda C-E) Bob Hemker, CFO, PPH .................................................................................................. Ag10 .............. 20 4:40 p.m. E. * Annual Report of the Committee to the PPH Board (Addendum F) Margaret Moir, Chair ........................................................................................................ Ag11 .............. 15 4:55 p.m. VII. BOARD MEMBER COMMENTS/AGENDA ITEMS FOR NEXT MEETING..................................................... 5 5:00 p.m. VIII. FINAL ADJOURNMENT ..................................................................................................................................... 5:00 p.m. NEXT MEETING: 3:00 P.M., DATE AND LOCATION TO BE DETERMINED NOTE: If you have a disability, please notify us at 760-740-6383 72 hours prior to the event so that we may provide reasonable accommodations Ag1
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Asterisks “*” indicate anticipated action Action is not limited to those designated items
PALOMAR POMERADO HEALTH (PPH) HOSPITAL, EMERGENCY CARE, TRAUMA CENTER IMPROVEMENT AND REPAIR MEASURE BONDS
November 12, 2009 PPH Administrative Offices, 1st Floor Conference Room3:00 p.m. 456 E. Grand Avenue, Escondido, California
Pg# Time Target
I. CALL TO ORDER and ROLL CALL ................................................................................................................ 5 3:05 p.m.
II. PUBLIC COMMENTS ....................................................................................................................................... 5 3:10 p.m.
(5 minutes allowed per speaker, with a cumulative total of 15 minutes per group – for further details & policy, See Request for Public Comments notices, available in the meeting room)
III. INFORMATION ITEM(S)......................................................................................................• PPH Audited Financials for Fiscal Year 2009
............................. 5 3:15 p.m.
IV. OATHS OF OFFICE.......................................................................................................................................... 5 3:20 p.m.
• New Members – (As of July 1, 2009) John A. Amodeo, Alex A. Galenes, Ronald D. Klingensmith
V. * MINUTES – ICOC Meeting – April 21, 2009 (Addendum A)................................................Ag2 ................ 5 3:25 p.m.
VI. DISCUSSION AGENDA...................................................................................................................................... .............
REPORTS
A. * Suggested Dates for Meetings in Calendar Year 2010 ...............................................Ag3-6 .............. 10 3:35 p.m.
PRESENTATIONS
A. Construction Auditor’s Report (Addendum B) Jeff Miller, Sub-contracted PPH Construction Auditor .......................................................Ag7 .............. 15 3:50 p.m.
B. Master Facility Plan – Status Report Mike Shanahan, Director of Facilities Planning & Development, PPH ..............................Ag8 .............. 15 4:05 p.m.
C. Report on the RFP Process for Construction Contracts at PPH Marty Knutson, Corporate Compliance Officer PPH..........................................................Ag9 .............. 15 4:20 p.m.
D. District Expenditure Report for Fiscal Year 2009 (Addenda C-E) Bob Hemker, CFO, PPH ..................................................................................................Ag10 .............. 20 4:40 p.m.
E. * Annual Report of the Committee to the PPH Board (Addendum F) Margaret Moir, Chair ........................................................................................................Ag11 .............. 15 4:55 p.m.
VII. BOARD MEMBER COMMENTS/AGENDA ITEMS FOR NEXT MEETING..................................................... 5 5:00 p.m.
VIII. FINAL ADJOURNMENT ..................................................................................................................................... 5:00 p.m.
NEXT MEETING: 3:00 P.M., DATE AND LOCATION TO BE DETERMINED
NOTE: If you have a disability, please notify us at 760-740-6383 72 hours prior to the event so that we may provide reasonable accommodations
Ag1
ICOC Meeting Minutes Tuesday, April 21, 2009
Form A - Minutes.doc
TO: Independent Citizens’ Oversight Committee MEETING DATE: Thursday, November 12, 2009 FROM: Tanya Howell, Executive Assistant Background: The minutes from the Independent Citizens’ Oversight Committee (ICOC) meeting held on Tuesday, April 21, 2009 (Addendum A) are respectfully submitted for formal Committee approval, having previously been vetted via email during the first week of May, 2009.
TO: Independent Citizens’ Oversight Committee MEETING DATE: Thursday, November 12, 2009 FROM: Tanya Howell, Executive Assistant Background: Pursuant to the Procedures, Policies & Guidelines (PP&G) of the Independent Citizens’ Oversight Committee (ICOC), meetings shall be held at least annually, but may be held more frequently as deemed necessary.
At the September 2008 meeting, in anticipation of more frequent reimbursements as the construction projects continue to move forward, the addition of a mid-year meeting was discussed and approved; and a meeting was held in April 2009.
It is recommended that the mid-year meeting again be held in the month of April, and that the Annual Meeting be moved to late October or early November. The meeting time of 3:00 to 5:00 p.m.—having worked for most members in the past—is also being suggested. Both meetings would be held in the first floor conference room of the PPH Administrative Offices at 456 E. Grand Avenue in Escondido.
Dates on which PPH staff are available are noted on the attached calendars. Members are requested to review the dates listed so that a meetingschedule for Calendar Year 2010 can be established during the Annual Meeting.
TO: Independent Citizens’ Oversight Committee MEETING DATE: Thursday, November 12, 2009 FROM: Bob Hemker, CFO Background: As requested and discussed at the April 2009 ICOC meeting, Jeff Miller, the sub-contracted PPH Construction Auditor, will be presenting information on the Internal Audit work he has performed since that meeting (Addendum B).
RECOMMENDATION: Motion: Individual Action: Information: X Required Time: 15 minutes
Ag7
Master Facility Plan Status Update
Form A - Master Facility Plan.doc
TO: Independent Citizens’ Oversight Committee MEETING DATE: Thursday, November 12, 2009 FROM: Mike Shanahan, Director Facilities Planning & Development Background: A brief overview of the status regarding the Facilities Master Plan(FMP) realization, planning and construction efforts to date will be presented atthe meeting.
RECOMMENDATION: Motion: Individual Action: Information: X Required Time: 15 minutes
Ag8
RFP Process for Construction Projects at PPH
Form A - RFPs.doc
TO: Independent Citizens’ Oversight Committee MEETING DATE: Thursday, November 12, 2009 FROM: Bob Hemker, CFO Background: Marty Knutson, Corporate Compliance Officer, has been requested to make a presentation to the ICOC on the process used for inviting and vetting responses to Requests for Proposals (RFPs) for the construction projects in the District. More information will be available from Ms. Knutson at the meeting.
RECOMMENDATION: Motion: Individual Action: Information: X Required Time: 15 minutes
Ag9
District Expenditure Report Fiscal Year 2009
Form A - Expenditure Report.doc
TO: Independent Citizens’ Oversight Committee MEETING DATE: Thursday, November 12, 2009 FROM: Tanya Howell, Executive Assistant Background: The District Expenditure Report for Fiscal Year 2009 [July 1, 2008 to June 30, 2009] for the following General Obligation (GO) Bond issues is submitted for review and approval (ADDENDA C-E):
• Election of 2004, Series 2005A
• Election of 2004, Series 2007A
• Election of 2004, Series 2009A
The report is broken down as noted below:
a) A recap of the project fund trust accounts, from sale through final draw (ADD C)
b) Draws made during FY2009
i) Nos. 002-013 (reviewed at the April 2009 ICOC meeting)
ii) Nos. 014-020 (ADD D)
c) Reports of expenditure reimbursements (ADD E):
i) Summarized by vendor name
ii) Summarized by expenditure description
iii) Detailed, sorted by vendor name
RECOMMENDATION: Approval. It is further recommended that all FY2009 transactions be included in the ICOC Annual Report without need for further review. Motion: X Individual Action: Information: Required Time: 20 minutes
Ag10
Annual Report of the ICOC To the District Board
Form A - Annual Report.doc
TO: Independent Citizens’ Oversight Committee MEETING DATE: Thursday, November 12, 2009 FROM: Bob Hemker, CFO Background: The Draft Annual Report of the Committee to the DistrictBoard (Addendum F) regarding expenditures made from General Obligation (GO)Bond revenues during Fiscal Year 2009 was compiled based on reports fromprior years. It is submitted for Committee review, discussion and approval.
(I.A.) AGENDA ITEM/PURPOSE • DISCUSSION/RECOMMENDATION ACTION/COMMENTS I. CALL TO ORDER & ROLL CALL • The meeting was called to order at 2:00 p.m. by Chair Bob Wells, followed by roll call. See roster for attendance. • Bob Hemker stated that General Counsel to the ICOC/PPH Bond Counsel Kathleen Leak was available by phone if any
portion of the meeting required assistance from her.
II. PUBLIC COMMENTS • There were no public comments
III. INFORMATION ITEM(S) • Mr. Hemker informed the Committee that PPH issued General Obligation (GO) Bonds in the amount of $110M principle
proceeds on March 18, 2009. Expenditures from these bonds will now come into play under the purview of the ICOC. o Issued capital appreciation bonds (CABs) o Prior issuance history:
2005 were GOs 2006 were Certificates of Participation (CoPs) – a form of Revenue Bond, that is currently traded as Auction
Rate Securities (ARS) 2007 were GOs
o We currently have approximately 15 months of project funds available Plan is to try to always keep at least a year’s cash on hand
Required to spend-down all proceeds from the bond issues within 3 years of issuance, and there are other taxation tests
• Vice Chair Margaret Moir stated concerns about expenditures for construction management and fees o Thought paying up-front expenses was to ensure that we didn’t have $30M in expenses that we didn’t know about
ahead of time Dr. David Tam explained that the construction project is constantly refining itself
Begin with concept drawings of what we think it will be, and an estimate of the costs Refine costs as you get to the actual design/build documents Refine yet again when you get to the actual construction documentations and all the trades confirm cost
estimates The $30M moving expense that was characterized as having been completely overlooked was not part of what
we call the Facilities Master Plan (FMP). Although not part of ICOC discussions, Dr. Tam noted that: If you include everything—including training our staff from using the old facility to using different equipment
at the new facility—then it is technically part of the project We’re doing transformation planning
(b) Cannot know exactly how much it is going to be until we get an exact quote on estimates, internal resources needed, etc.
o Further discussion tabled to end of agenda
IV. OATH OF OFFICE • New member Bill Hoffman was requested to silently read the oath, then he raised his right hand and stated that he had
read, understood and agreed to its terms and conditions. He then signed copies for his files and for the record. • Chair Wells asked Mr. Hoffman to introduce himself
o A lifetime resident of San Diego, Mr. Hoffman has Bachelors and Masters Degrees in Business, as well as a law degree. He has 30 years in the corporate world, having worked at the shipyards, as well as in the aerospace and biochemical industries. Currently self-employed in business & financial planning, Mr. Hoffman is also licensed as a general contractor and believes his background will enable him to look at the records and provide his insights to the rest of the ICOC.
V. MINUTES – ICOC MEETING – SEPTEMBER 23, 2008 • The minutes from the September 23, 2008, meeting were distributed on January 7, 2009, via email
o Secretary Tanya Howell reminded the members that the minutes had been vetted via email vote After ICOC review, comment and correction as necessary, an original was signed by Chair Steve Yerxa and
Secretary John McIver and forwarded to the District Board’s Finance Committee The District Board’s Finance Committee then forwarded the minutes for inclusion in the District Board’s
permanent records o The formal vote at this meeting is merely to commemorate actions previously taken via email vote
MOTION, seconded and carried to formally vet the email approval of the Minutes of the September 23, 2008, ICOC Meeting.
VI. DISCUSSION AGENDA REPORTS A. RECOMMENDED NOMINEES FOR OFFICERS FOR APPOINTMENT BY PPH BOARD OF DIRECTORS
• Mr. Hemker reminded the members that, although the District Board is responsible for final appointment of new members to the ICOC, the Chairs of the District Board and the District’s Board Finance Committee have been ceded the responsibility for making officer appointments
• Mr. Hemker then requested recommendations from this group to carry forward to the April 28, 2009, Board Finance Committee meeting for action o Chair Wells accepted nominations for officers:
• Nomination(s) for Chair o John McIver nominated Vice Chair Moir, no further nominees
− All in favor, none opposed • Nomination(s) for Vice Chair
MOTION: By Margaret Moir, seconded by Marguerite Jackson Dill and carried to accept the recommendations for officers
o Chair Wells nominated Bill Bonner, who declined and nominated Bill Hoffman − All in favor, none opposed
• Nomination(s) for Secretary o Scott Peck nominated John McIver
− All in favor, none opposed
PRESENTATIONS B. REQUEST BY ICOC FOR INDEPENDENT AUDIT OF GENERAL OBLIGATION BOND EXPENDITURES
• Chair Wells stated that he was extremely pleased by the cooperation received from Mr. Hemker, his office and PPH. He has previously met with Tom Boyle at the audit meetings of the PPH Foundation and thinks he does a wonderful job. Mr. Wells also stated that he was very pleased to have Dr. Tam at the meeting. He then turned the floor over to Mr. Hemker.
• Mr. Hemker stated that the Chair had inquired about hiring an external auditor, and he had presented that request to the District Board’s Finance Committee o Nature of the duties of the ICOC is the validation of expenditures o ICOC takes on the role of auditor in their review of expenditures o There were no provisions in Measure BB to pay for the expense of an auditor
− No budget at PPH for ICOC expenses, but members are eligible for mileage reimbursement when requested o In the parameters of what we do today, PPH, the PPH Foundation and the ICOC all have a vested interest to ensure
the new hospital and other projects are built in the most efficient manner possible o The District does employ external auditors (Deloitte & Touche/D&T), the scope of whose duties are to render an
opinion on the District’s financial statements − Would include part of what the ICOC has requested, but doesn’t encompass the full request
o When apprised of Chairman Wells’ request, the District Board’s Finance Committee suggested that the ICOC be made aware of everything that PPH does to validate all controls and its systems of fiscal accountability − D&T, as external auditor, reviews the District financials, including:
1) Audit of all the bank statement documents, which would include auditing requisitions 2) Validation that our booked assets are truly assets 3) Awareness that PPH has an ICOC
− Mr. Boyle, as internal auditor, reviews more portions of the financial statements than Deloitte & Touche − We also have Jeff Miller as external construction auditor, who provides another set of reviews from a different
standpoint than either Deloitte & Touche or Mr. Boyle − Both Mr. Boyle and Mr. Miller were invited to discuss the work they perform on behalf of PPH, and Mr. Boyle
was introduced • Mr. Boyle introduced himself, noting that he is the Chief Audit Officer, has been with PPH for over 4 years, and has
Information only • Mr. Miller’s audit report will be distributed to the ICOC after review & approval by the District Board
worked in the industry for about 25 years. He reports directly to the CEO and the elected Audit & Compliance Committee of the District Board, and provides that body with monthly reports. Mr. Boyle presented information on what PPH has been doing from an audit perspective o Construction is one of the biggest risks for audit o Rather than hire more internal staff, PPH chose to hire from an outside source
− Guarantees that if the assigned auditor is not available, someone else in the firm will be able to take over o PPH designs the scope and magnitude of the audit, making revisions as needed, based on what is typically looked
for in construction phase − There are some overlaps with what is being done by the ICOC
o Vice Chair Moir inquired if the audit process determined from what fund monies should be spent − The auditor reviews dollars spent from various subcontractors (e.g., time, mileage, meals, etc.) − Mr. Miller is also aware this is also supposed to be just for the construction process, so he also looks at bills for
the project account o Use of revenue bonds vs. GO bonds
− When we expend monies, we review what asset is being acquired: 1) Equipment is only reimbursed via revenue bonds 2) If there are items that could go either way—revenue or GO—a report is sent to Mr. Hemker, who assesses
whether to spend GO or revenue bonds based on purpose and timing to assure compliance with tax-exempt financing rules
o Mr. Hoffman inquired how far into the type of items the ICOC reviews that Mr. Boyle, as auditor, delves − Our outside auditors would overlap that scope of their work as, aside from the specific scope of work delegated
to an outside source, a general ledger audit would catch misappropriation/mislabeling of accounts • Mr. Miller has a strong background and has been a career auditor for 20 years (Attachment1)
o Mr. Miller stated that it is better to utilize outside auditors − They are more effective than staff auditors, due to specialized expertise − All outside auditors do is audit, and they have developed systems of checks and balances for their reviews
o In construction in general, the auditor ensures that each contractor follows the rules and bills properly; as well as ensuring the construction managers review appropriately − Contracts are written so that the auditor can review the HR records of the contractors
1) Invoices bill time based on labor classifications, so if an invoice bills for a Superintendent 3, that should also be that individual’s title in their payroll system
− Construction auditor also reviews for overpayments made compared to contract o Vice Chair Moir inquired about contract pricing that goes up
− Mr. Miller stated that he assists in the review and wording of contracts to avoid extra costs due to change orders
o Mr. Miller was requested to share his reports with the ICOC − Stated that they would become public records once the audit has been completed and they’re reported through
the District Board, and can be forwarded to the ICOC at that time • ICOC Comments & Discussion:
o Mr. Hoffman commented that it appeared to him that what Mr. Miller is doing covers what the ICOC would normally be doing
o Chair Wells stated that he was very pleased to have Mr. Miller here with something for the ICOC to read and have it described for them
o Secretary McIver asked whether there was a series of audits and on what timeline? − Commented that there is an interest in history as there appears to have already been about 7 layers of audit
before documentation reaches the ICOC, so District’s timing might be out of synch with that of the ICOC − Mr. Miller stated that his audits are based on risk and materiality
1) He starts where the costs are 2) If a project has ended or a construction manager is leaving, there is more potential of risking recovery if
action is not taken before those things occur − Mr. Boyle stated that the District has an open-ended service agreement with Mr. Miller to perform work at will
1) Scope can be added/expanded/changed as needed 2) He anticipates needing construction audit services as long as we’re expending dollars in that direction
a) Not only at PMC-West, but for all other ongoing District projects o Mr. Peck commented that he was still uncomfortable about the ICOC playing the role of investigator
− The scope of the ICOC is not to determine if a fair price was paid, rather to report on whether reimbursement was appropriately made via GO bonds or if should have been via revenue bonds
o Mr. Corwin stated a need to feel comfortable that what is being presented is appropriately spent − Chair Wells reminded him that the external auditors tie everything in the District’s financials out to the bank
statements and tie it back to the bank 1) Requisitions are drawn from the trusteed funds 2) The Trustee requires signed requisitions from which to pay
a) Then reviews supporting documents to ensure that $5M in requests is matched by $5M in invoices 3) A review of the requisitions in the books would confirm that all were signed off on via appropriate
steps/checks & balances o Mr. Bonner stated that he is comfortable with what Mr. Miller is doing to help save costs o Vice Chair Moir inquired into the departure of the construction management firm in September, including why they
were leaving when we had paid them so much up-front money − Mr. Hemker stated that we needed to incorporate designs and methodologies at which Rudolph & Sletten (R&S)
weren’t as proficient, and the District Board made a conscious decision to hire DPR
1) The decision to change construction managers in mid-stream was not taken lightly by the District Board 2) The up-front monies in question were for architectural fees, not to the construction managers
• Mr. Hemker stated just reviewing the number of individuals on site 24/7 (multiple PPH employees here on a daily basis; DPR staff; staff from regulatory bodies – 3 from the inspector of record, Office of Statewide Health Planning & Development (OSHPD), plus several other firms that contract with PPH to assist with the regulatory process) should provide a sense of comfort that the project was being given appropriate oversight
• Mr. Miller was requested to provide a report as part of the regular ICOC meetings and stated that he would be happy to oblige that request
C. YTD DISTRICT EXPENDITURE REPORT FOR FISCAL YEAR 2009 • Utilizing Addendum B of the agenda packet, the annual expenditures were reviewed for appropriateness and
consistency with Measure BB authorization: • Mr. Hemker was given kudos for the record keeping of the Finance Department • At the end of the day, the District must be able to segregate between GO and revenue bond monies for asset
categorization o Reserving as much revenue bond monies as possible for purchase of equipment o Has to be able to prove the spend-down rules are met o Once the buildings are finalized, if GO monies were used to construct them, final use cannot be for non-tax free
• Cannot lease the building for income • The ICOC Annual Report will still not be issued until after the audit
o The draws presented are as of March 31st, and the Annual Report will cover the audited financials as approved by the District Board in the fall
• When the last draw was made in FY2008 from the Series 2005A GOs, there was $14 in interest income remaining in that fund o That amount was cleared out and the account closed in October 2008
• None of the just-issued $110M has yet been spent down o Have now issued $431M of the $496M in GOs authorized by Measure BB o Next GO Bond issue will likely be in 2011, with the intent at this time to issue revenue bonds
• Mr. Hemker highlighted the listing of expenditures provided with Requisition #002, which provides a schedule to the Trustee of where the monies have been expended o Finance paid for items on the list from general reserves, then requested reimbursement o Trustee can be requested to pay vendors directly if it is more appropriate for large expenditures
• Requisition #008 was delegated out to Stephanie Schulte o Specific language for delegation via a memo in the file
− Memo is also sent to the District Board and the Trustee
Information Only
7 ADD A-8
Independent Citizens’ Oversight Committee – Meeting Minutes – April 21, 2009 (I.A.) AGENDA ITEM/PURPOSE • DISCUSSION/RECOMMENDATION ACTION/COMMENTS • Standard report, vendor complements are standard, will start seeing new names as additional trades start their work • Mr. Hemker (or his designee) signs the requisition form, attesting to the fact that the request is valid
o Must be comfortable that the documentation provided by the staff is accurate
VII. BOARD MEMBER COMMENTS/AGENDA ITEMS FOR NEXT MEETING • After a committee inquiry, Dr. Tam led a discussion regarding the newspaper articles stating that the District had a $30M
expense that we didn’t know about, a topic tabled at the beginning of the meeting o Commented that there are many operational costs that were not included in the accounting process when preparing
the capital budget − There are things we know will take operational resources that are not totally built into the building costs − The budget as we have defined it includes the bricks and mortar and everything else necessary to build the
hospital o The expense in question is related to time that will be incurred to train staff to use new items at new hospital
− State licensing requirements play into the training − As an operational cost, we know it will be incurred, but not necessarily the magnitude until closer to having the
final design finished • Chair Wells stated that the scope and size of the project is very impressive
o Questioned purchases of additional buildings on Grand Avenue and Enterprise Street, as they’re not part of PMC-East or West
o Mr. Hemker explained that 456 E. Grand is part of the greater campus solution for PMC-East − Part of the Valley Boulevard segment that will eventually be closed by the City
o The other buildings purchased in Escondido are to add to the infrastructure of PPH assets & services − Starting to create a hub of centralized services for the District − Enterprise is a support building that houses Supply Chain Services and the Finance Department
1) Could have been included as a part of PMC-West, but OSHPD requirements would have made the real estate costs much higher
2) Three are also entitlements to the ERTC property in terms of the ultimate number of square feet on which we can build, so locating some services elsewhere allows us to remain below those entitlements
3) Logistically located well to serve PMC-West, PMC-East and POM 4) Cost per square foot for these buildings is significantly less than for OSHPD-grade hospital buildings
• PMC-West is on schedule, with steel topping off scheduled for July 10th o On a path to hit substantial completion by the end of 2011 o Then we will have to do nursing training and get licensing in place before a final move
Information only
8 ADD A-9
ADD A-10
ATTACHMENT 1
ATT 1-1 ADD A-11
5/7/2009
This report is intended solely for the use of Palomar Pomerado Health’s internal management and is not intended to be and should not be used by any other parties without the prior written consent of Palomar Pomerado Health.
Construction Audit Construction Audit ServicesServices
Palomar Pomerado HealthPalomar Pomerado HealthReport to the Independent Report to the Independent
What is a Construction Audit?What is a Construction Audit?How do you know that your general contractor billed correctly for construction costs? Does your architect, project manager, engineer or construction management firm review all of the construction costs? Traditional audits typically result in a checklist of accounting issues, while construction audits can deliver tangible and quantifiable benefits The opportunity exists to fine-tune your control environment, enhance accountability, achieve fiscal responsibility, recover lost dollars and safeguard your investment
ATT 1-2 ADD A-12
5/7/2009
3
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What is a Construction Audit What is a Construction Audit continuedcontinued
Construction audit services can provide value for any Construction audit services can provide value for any size of construction or capital project including: new size of construction or capital project including: new construction projects, plant or building additions, construction projects, plant or building additions, renovation or remediation projects, major capital renovation or remediation projects, major capital equipment overhauls, demolition projects, etc.equipment overhauls, demolition projects, etc.Construction auditing contributes to better managing Construction auditing contributes to better managing and controlling construction and major capital projects and controlling construction and major capital projects during the project life cycleduring the project life cycleActivities are performed during the PreActivities are performed during the Pre--Award (planning Award (planning stage), Construction and Project Closestage), Construction and Project Close--out phasesout phases
4
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When is a Construction Audit When is a Construction Audit relevant?relevant?
Projects involve substantial commitment of Projects involve substantial commitment of funds for the organizationfunds for the organizationThe investment is organizationally mission The investment is organizationally mission criticalcriticalThe organization is focused on continual process The organization is focused on continual process improvementimprovementLimited inLimited in--house expertise and experience in house expertise and experience in conducting, controlling, and monitoring conducting, controlling, and monitoring construction projects construction projects
ATT 1-3 ADD A-13
5/7/2009
5
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What are some of the benefits of a What are some of the benefits of a Construction Audit?Construction Audit?
Identifying and taking advantage of cost avoidance opportunities as follows:
• negotiating owner favorable contracts• critical tasks can be identified and
assigned to the owner’s internal project team
• establishing an effective control environment
6
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What are the benefits of a Construction What are the benefits of a Construction Audit continuedAudit continued
Ensuring that controls are developed and maintained Ensuring that controls are developed and maintained ––both the ownerboth the owner’’s and contractors and contractor’’s controlss controlsIdentifying overcharges/undercharges: Identifying overcharges/undercharges: constructionconstructionaudit services usually pay for themselves by audit services usually pay for themselves by providing a strategy that can result in significant providing a strategy that can result in significant savings, typically between one to five percent of savings, typically between one to five percent of the total construction project coststhe total construction project costsAvoiding litigation Avoiding litigation –– well managed and controlled well managed and controlled projects have a lower incidence of conflict and thus are projects have a lower incidence of conflict and thus are less likely to require court action to resolve disputesless likely to require court action to resolve disputesReinforce fiduciary requirements (bond expenditures)
ATT 1-4 ADD A-14
5/7/2009
7
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Construction Audit Services Construction Audit Services First Interim AuditFirst Interim Audit
ProjectProject’’s inception through the end of February 2007 s inception through the end of February 2007 Phase I of the Pomerado Hospital ExpansionPhase I of the Pomerado Hospital Expansion
Audit Objectives Audit Objectives Review the CMReview the CM’’s accounting records and compare to s accounting records and compare to billed amountsbilled amountsReview the CMReview the CM’’s bid process s bid process Review the labor reports and reconcile the labor charge Review the labor reports and reconcile the labor charge to the billingsto the billingsIdentify potential overchargesIdentify potential overchargesReview job site policies, processes and controlsReview job site policies, processes and controls
8
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Construction Audit Services Construction Audit Services First Interim AuditFirst Interim Audit
ResultsResults
FineFine--tuned and reinforced controlstuned and reinforced controlsEnsured processes were working appropriatelyEnsured processes were working appropriatelyRecovered Overcharges of approximately Recovered Overcharges of approximately $230,000 relating to: $230,000 relating to:
Work in process at PalomarWork in process at PalomarAssessed the draft contract between Palomar and Assessed the draft contract between Palomar and DPR (Rudolph & Sletten replacement)DPR (Rudolph & Sletten replacement)Reviewing a sample of invoices for appropriateness Reviewing a sample of invoices for appropriateness (50% of R&S PMC West) of:(50% of R&S PMC West) of:
•• bill Ratesbill Rates•• reimbursable expensesreimbursable expenses•• employee classificationemployee classification
Performing a study of contractual labor rates and Performing a study of contractual labor rates and prepared a worksheet comparing rates to different prepared a worksheet comparing rates to different multipliersmultipliers
Construction Audit Services Construction Audit Services Second Interim AuditSecond Interim Audit
March 2007 to December 2009March 2007 to December 2009PMC West (Rudolph and Sletten, Inc.)PMC West (Rudolph and Sletten, Inc.)
10
.
Construction Audit Services Construction Audit Services Second Interim AuditSecond Interim Audit
Progress To Date ConProgress To Date Con’’tt
Performing on site at the R&SPerforming on site at the R&S’’ trailertrailerReviewing additional support for invoices for PMC West Reviewing additional support for invoices for PMC West Reviewing trade contractorReviewing trade contractor’’s files, noted lien waivers, s files, noted lien waivers, bonds, title certifications, etc.bonds, title certifications, etc.Reviewing bid filesReviewing bid filesReviewing insuranceReviewing insuranceInterviewing R&S project personnelInterviewing R&S project personnelTesting labor hours. Sample of timesheets vs. billed vs. Testing labor hours. Sample of timesheets vs. billed vs. job cost detailjob cost detailVerifying rates billed vs. job cost ratesVerifying rates billed vs. job cost ratesBeginning the review of Phase 2Beginning the review of Phase 2
ATT 1-6 ADD A-16
ADDENDUM B
ADD B-1
This report is intended solely for the use of Palomar Pomerado Health’s internal management and is not intended to be and should not be used by any other parties without the prior written consent of Palomar Pomerado Health and MC Solutions.
Construction Audit Construction Audit ServicesServices
Palomar Pomerado HealthPalomar Pomerado HealthReport to the Independent CitizensReport to the Independent Citizens’’
Construction Audit Services Construction Audit Services –– Second Interim AuditSecond Interim AuditRudolph and Sletten, Inc. (R&S)Rudolph and Sletten, Inc. (R&S)
Progress To DateProgress To Date
Performed on site at the R&S trailerPerformed on site at the R&S trailerReviewed additional support for invoices Reviewed additional support for invoices Reviewed trade contractorReviewed trade contractor’’s files, noted s files, noted lien waivers, bonds, title certifications, etc.lien waivers, bonds, title certifications, etc.Reviewed bid filesReviewed bid filesReviewed insuranceReviewed insuranceInterviewed R&S project personnelInterviewed R&S project personnel
ADD B-3
.
Construction Audit Services Construction Audit Services –– R&S AuditR&S AuditProgress To Date Progress To Date (Cont'd)(Cont'd)
Tested labor hours (timesheets vs. billed Tested labor hours (timesheets vs. billed vs. job cost detail)vs. job cost detail)Verified rates billed vs. job cost ratesVerified rates billed vs. job cost ratesReviewed invoices for appropriateness of:Reviewed invoices for appropriateness of:
•• bill ratesbill rates•• reimbursable expensesreimbursable expenses•• employee classificationemployee classification
ADD B-4
.
R&S Audit ResultsR&S Audit Results
Substantial discrepancies and potential Substantial discrepancies and potential issues have been discovered relating to:issues have been discovered relating to:1.1. Reimbursable expensesReimbursable expenses2.2. Employee positionsEmployee positions3.3. Labor rates Labor rates PPH met with R&S to negotiate the issues. PPH met with R&S to negotiate the issues. Contractually, mediation is the next step Contractually, mediation is the next step with a date set in December.with a date set in December.
Identifying and taking advantage of cost Identifying and taking advantage of cost avoidance opportunities as follows:avoidance opportunities as follows:
Negotiating owner favorable contractsNegotiating owner favorable contractsCritical tasks can be identified and assigned Critical tasks can be identified and assigned to the ownerto the owner’’s internal project teams internal project teamEstablishing an effective control Establishing an effective control environmentenvironmentEnsuring that controls are developed and Ensuring that controls are developed and maintained maintained –– both PPH and contractor / both PPH and contractor / trade controlstrade controls
Identifying overcharges/underchargesIdentifying overcharges/underchargesReviewing daily time sheets submitted by Reviewing daily time sheets submitted by employees attesting to reasonableness and employees attesting to reasonableness and accuracyaccuracyObserving employees reporting to and leaving Observing employees reporting to and leaving the job site; note control deficienciesthe job site; note control deficienciesAttending subcontractor meetings and take Attending subcontractor meetings and take notes on the proceedingsnotes on the proceedings
Confirming significant deliveries and Confirming significant deliveries and removals including scrapremovals including scrapIdentifying subcontractors and note Identifying subcontractors and note number of employees number of employees Identifying professional service and testing Identifying professional service and testing firms on site along with the number of firms on site along with the number of employeesemployees
Attending the Owners meetingsAttending the Owners meetingsObserve, note and report on safety and Observe, note and report on safety and security issuessecurity issuesReview, note and retain copies of Review, note and retain copies of Architectural BulletinsArchitectural BulletinsConducting job site walkthroughsConducting job site walkthroughs
Identifying backIdentifying back--charge items and charge items and comparing to backcomparing to back--charge logscharge logsReviewing change orders for Reviewing change orders for appropriateness and pricingappropriateness and pricingProviding briefings to PPH Project Providing briefings to PPH Project Managers and others on the OwnerManagers and others on the Owner’’s s project team when requestedproject team when requested
Reviewing billings submitted by the Reviewing billings submitted by the contractors/trades and professional services contractors/trades and professional services firms, ensure that lien waivers have been firms, ensure that lien waivers have been obtained and pay certifications have been obtained and pay certifications have been completedcompletedAuditing the major pieces of equipment charged Auditing the major pieces of equipment charged to the project and on siteto the project and on siteAdditional projects as requested based upon riskAdditional projects as requested based upon risk
ADD B-11
ADDENDUM C
ADD C-1
PALOMAR POMERADO HEALTHGeneral Obligation Bonds, Election of 2004, Series 2005A
Recap of Project Fund Trust Account through June 30, 2009
MONTH DESCRIPTION ADDITIONS REDUCTIONS BALANCE
July 7 ,2005 Sale of Series 2005A Bonds 80,000,000 80,000,000$
PALOMAR POMERADO HEALTHGeneral Obligation Bonds, Election of 2004, Series 2009A
Recap of Project Fund Trust Account through June 30, 2009 and YTD
MONTH DESCRIPTION ADDITIONS REDUCTIONS BALANCE
March 18, 2009 Sale of Series 2009A Bonds 110,000,000 110,000,000$
March-09 Interest Income - No Draw Schedule - 110,000,000
April-09 Interest Income 10,922 No Draw Schedule - 110,010,922
May-09 Interest Income 16,002 Transfer to Funded Int Acct (16,002) No Draw Schedule - 110,010,922
June-09 Interest Income 14,037 Reverse May Transfer Entry 16,002 No Draw Schedule - 110,040,961
110,040,961$ -$ 110,040,961$ Totals for Fiscal Year 2009
Page 1 of 1 ADD C-10
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ADD C-41
ADDENDUM D
ADD D-1
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ADD D-50
ADDENDUM E
ADD E-1
PALOMAR POMERADO HEALTH ICOC REVIEW #6SUMMARY OF BLDG EXPANSION EXPENDITURES GO BOND--SERIES 2007A Measure BB Project Fund VENDOR SUMMARY2007 GO DRAW #014 to #020Reimbursement Period: April 1, 2009 to June 30, 2009
SORT: VENDOR NAME
VENDOR NAME VENDOR # BANK CHK AMT DESCRIPTION
A O REED & COMPANY 13223 39,385.30 CONSTRUCTION
ADAMO FAMILY TRUST 19548 26,800.00 CONSTRUCTION
ADVANCED PNEUMATIC TUBES IN 18264 11,330.00 CONSTRUCTION
ADVANCED SYSTEMS 19549 73,343.70 CONSTRUCTION
ADVANCED TECHNOLOGY RESOUR 17656 1,914.00 A & E and CONSULTING
RICK ENGINEERING 16982 4,792.00 A & E and CONSULTING
RINCON DEL DIABLO WATER DIST. 12022 815,657.87 CONSTRUCTION
RTKL ASSOCIATES INC 18755 56,999.09 A & E and CONSULTING
RUDOLPH AND SLETTEN 13787 251,031.42 CONSTRUCTION
S D G & E 999004264 290.00 CONSTRUCTION
SAN DIEGO COUNTY AIR POLLUTIO 14318 30,700.00 PERMIT & INSPECT
SCHMIDT DESIGN GROUP INC 19131 361.45 A & E and CONSULTING
SECURITY FENCE CO INC 18416 136.00 CONSTRUCTION
SENSORWAVE TECHNOLOGY, INC. 19938 6,323.76 SECURITY
SHENGXING GLASS AND CLADDING 18413 3,284,939.00 CONSTRUCTION
SIDEPLATE SYSTEMS INC 17170 23,850.00 A & E and CONSULTING
SIERRA MEDICAL GAS 13044 4,545.00 CONSTRUCTION
SMART SAFETY GROUP 19617 403.31 PERMIT & INSPECT
Thursday, October 22, 2009 Page 3 of 4ADD E-4
VENDOR NAME VENDOR # BANK CHK AMT DESCRIPTION
SOUTHLAND ELECTRIC 13183 322,511.49 CONSTRUCTION
SOUTHLAND ELECTRIC/CALIFORNI 18729 194,458.31 CONSTRUCTION
SOUTHWEST GENERAL CONTRACT 18424 103,140.00 CONSTRUCTION
SPOONER'S WOODWORKS, INC 19465 8,182.89 CONSTRUCTION
STATE WATER RESOURCES CONTR 16031 1,362.00 PERMIT & INSPECT
SUPERIOR ROOFING 19487 2,688.50 CONSTRUCTION
SWANILLON INC dba 19562 292,567.45 CONSTRUCTION
SWISSLOG HEALTHCARE SOLUTION 12664 5,727.00 CONSTRUCTION
THYSSENKRUPP ELEVATOR CORP 16556 1,059,602.08 CONSTRUCTION
TOWER GLASS INC 18774 25,225.71 CONSTRUCTION
UNIVERSITY MECHANICAL 15442 16,563,888.00 CONSTRUCTION
URS CORPORATION 11122 98,766.75 A & E and CONSULTING
WESTERN STATES CONCRETE SRVC 19535 6,566.40 CONSTRUCTION
WHITMORE STEEL, INC. 17695 8,572.50 CONSTRUCTION
WINDCO PAINTING, INC. 19488 35,698.00 CONSTRUCTION
WORKPLACE SERVICES 11014 9,746.15 CONSTRUCTION
Grand Total 52,185,194.01
Thursday, October 22, 2009 Page 4 of 4ADD E-5
PALOMAR POMERADO HEALTH ICOC REVIEW #6SUMMARY OF BLDG EXPANSION EXPENDITURES GO BOND--SERIES 2007A Measure BB Project Fund VENDOR SUMMARY2007 GO DRAW #014 to #020Reimbursement Period: April 1, 2009 to June 30, 2009
SORT: DESCRIPTION
VENDOR NAME VENDOR # BANK CHK AMT DESCRIPTION
ADVANCED TECHNOLOGY RESOUR 17656 1,914.00 A & E and CONSULTING
AUTODESK, INC 19089 22,500.00 A & E and CONSULTING
CALIFORNIA CONSTRUCTION 13157 360.00 A & E and CONSULTING
CHILDS MASCARI WARNER ARCH 15514 56,447.10 A & E and CONSULTING
CO ARCHITECTS 16122 2,547,358.34 A & E and CONSULTING
CSI 13464 189,538.32 A & E and CONSULTING
E CUBE, INC 17597 20,212.44 A & E and CONSULTING
IMPACT ADVISORS, LLC 20007 64,474.06 A & E and CONSULTING
LINSCOTT LAW & GREENSPAN 19232 1,399.50 A & E and CONSULTING
METROPLAN LLC 15003 10,800.00 A & E and CONSULTING
PBS&J 15446 4,921.50 A & E and CONSULTING
RICK ENGINEERING 16982 4,792.00 A & E and CONSULTING
RTKL ASSOCIATES INC 18755 56,999.09 A & E and CONSULTING
SCHMIDT DESIGN GROUP INC 19131 361.45 A & E and CONSULTING
SIDEPLATE SYSTEMS INC 17170 23,850.00 A & E and CONSULTING
URS CORPORATION 11122 98,766.75 A & E and CONSULTING
JRMC REAL ESTATE, INC 17732 25,000.00 ADMIN & OTHER
A O REED & COMPANY 13223 39,385.30 CONSTRUCTION
ADAMO FAMILY TRUST 19548 26,800.00 CONSTRUCTION
ADVANCED PNEUMATIC TUBES IN 18264 11,330.00 CONSTRUCTION
ADVANCED SYSTEMS 19549 73,343.70 CONSTRUCTION
AMERICAN SHEET METAL 19604 5,500.00 CONSTRUCTION
ANNING-JOHNSON CO. 19591 762,118.00 CONSTRUCTION
AQUATEC CHEMICAL SERVICES IN 19952 11,200.00 CONSTRUCTION
AWT-APPLIED WATERPROOFING,IN 17696 24,057.00 CONSTRUCTION
BERGELECTRIC CORPORATION 14082 2,516,958.33 CONSTRUCTION
Thursday, October 22, 2009 Page 1 of 4
ADD E-6
VENDOR NAME VENDOR # BANK CHK AMT DESCRIPTION
BEST CONTRACTING SERVICES, INC 19490 63,431.30 CONSTRUCTION
BRADSHAW ENGINEERING CORP 18526 162,946.80 CONSTRUCTION
BRADY COMPANY 15749 1,512.00 CONSTRUCTION
BRICKMAN GROUP LTD 18259 660.00 CONSTRUCTION
BSD BUILDERS, INC 18629 58,980.60 CONSTRUCTION
BURTECH PIPELINE INC 18947 70,152.40 CONSTRUCTION
CABRILLO HOIST 19682 157,850.59 CONSTRUCTION
CALIFORNIA COMMUNITY BANK 19252 17,291.90 CONSTRUCTION
CALIFORNIA CONSTRUCTION 13157 9,700.00 CONSTRUCTION
CALIFORNIA SHEET METAL 15748 21,060.31 CONSTRUCTION
CAL-WATER 19828 1,300.00 CONSTRUCTION
CEMENT CUTTING 18336 35,774.10 CONSTRUCTION
CENTEX GLAZING 18335 2,229.00 CONSTRUCTION
CHILDS MASCARI WARNER ARCH 15514 14,240.11 CONSTRUCTION
CLARK STEEL FABRICATORS INC 18344 374,602.10 CONSTRUCTION
CONCRETE CONTRACTORS INTERS 17059 46,008.40 CONSTRUCTION
CONDON-JOHNSON & ASSOC 17665 185,464.80 CONSTRUCTION
COSCO FIRE PROTECTION 15284 53,034.98 CONSTRUCTION
CSI 13464 400.00 CONSTRUCTION
DARYL GRIFFIS ACOUSTICS, INC 13182 1,962.00 CONSTRUCTION
DPR CONSTRUCTION, INC. 19274 3,054,738.72 CONSTRUCTION
E.L. HOBBS 19908 87,993.45 CONSTRUCTION
FILEFAX 13663 -26,341.42 CONSTRUCTION
GROUND SERVICE TECHNOLOGY I 16983 6,974.35 CONSTRUCTION
H & R STEEL 19466 8,270.00 CONSTRUCTION
HCI, INC. SECURITY INTEGRATION 13128 1,364.29 CONSTRUCTION
HEINAMAN CONTRACT GLAZING 18338 40,800.00 CONSTRUCTION
HERRICK CORP/UNION BANK OF C 19407 973,093.00 CONSTRUCTION
HERRICK CORPORATION, THE 19057 8,757,834.00 CONSTRUCTION
HOWARD'S RUG CO 18436 38,193.30 CONSTRUCTION
HUNSAKER & ASSOCIATES S.D. INC 16439 3,404.70 CONSTRUCTION
INCOUNTERS, INC 19818 2,531.00 CONSTRUCTION
J & M KEYSTONE INC 13633 3,733.00 CONSTRUCTION
JACKSON & BLANC 13074 15,103.30 CONSTRUCTION
Thursday, October 22, 2009 Page 2 of 4
ADD E-7
VENDOR NAME VENDOR # BANK CHK AMT DESCRIPTION
JANUS CORP 13395 21,007.80 CONSTRUCTION
JOHNSON CONTROLS INC. 12436 0.00 CONSTRUCTION
JOHNSON, BARNES & FINCH INC 13219 206,150.30 CONSTRUCTION
JONES LANG LASALLE AMERICAS 17711 55,000.00 CONSTRUCTION
JRMC REAL ESTATE, INC 17732 -25,000.00 CONSTRUCTION
KENNY AKINS PLUMBING 15402 2,600.00 CONSTRUCTION
MASSON & ASSOCIATES 17985 44,429.00 CONSTRUCTION
MCCOY DESIGN & CONSTRUCTION 12483 5,209.85 CONSTRUCTION
MELCHIOR LAND SURVEYING INC 19936 16,014.00 CONSTRUCTION
MINTIE CORPORATION 13549 12,659.00 CONSTRUCTION
MORLEY CONSTRUCTION CO 18985 1,019,603.70 CONSTRUCTION
NATIONAL CONSTRUCTION RENTAL 16440 576.21 CONSTRUCTION
NEAL ELECTRIC CORP 15936 47,642.00 CONSTRUCTION
NEC-UNIFIED SOLUTIONS INC 13570 420.72 CONSTRUCTION
PACIFIC COAST CLEANING 20006 1,710.00 CONSTRUCTION
PACIFIC RIM MECHANICAL 14054 1,324,533.11 CONSTRUCTION
PARK WEST LANDSCAPE 17528 118,284.95 CONSTRUCTION
PAUL HANSEN EQUIPMENT 16437 1,086.75 CONSTRUCTION
PECORARO PAINTING 19784 3,340.80 CONSTRUCTION
PINNICK INC 18265 374,260.12 CONSTRUCTION
PREMIER REPROGRAPHICS 19543 7,740.58 CONSTRUCTION
RINCON DEL DIABLO WATER DIST. 12022 815,657.87 CONSTRUCTION
RUDOLPH AND SLETTEN 13787 251,031.42 CONSTRUCTION
S D G & E 999004264 290.00 CONSTRUCTION
SECURITY FENCE CO INC 18416 136.00 CONSTRUCTION
SHENGXING GLASS AND CLADDING 18413 3,284,939.00 CONSTRUCTION
SIERRA MEDICAL GAS 13044 3,745.00 CONSTRUCTION
SOUTHLAND ELECTRIC 13183 322,511.49 CONSTRUCTION
SOUTHLAND ELECTRIC/CALIFORNI 18729 194,458.31 CONSTRUCTION
SOUTHWEST GENERAL CONTRACT 18424 103,140.00 CONSTRUCTION
SPOONER'S WOODWORKS, INC 19465 8,182.89 CONSTRUCTION
SUPERIOR ROOFING 19487 2,688.50 CONSTRUCTION
SWANILLON INC dba 19562 292,567.45 CONSTRUCTION
SWISSLOG HEALTHCARE SOLUTION 12664 5,727.00 CONSTRUCTION
Thursday, October 22, 2009 Page 3 of 4
ADD E-8
VENDOR NAME VENDOR # BANK CHK AMT DESCRIPTION
THYSSENKRUPP ELEVATOR CORP 16556 1,059,602.08 CONSTRUCTION
TOWER GLASS INC 18774 25,225.71 CONSTRUCTION
UNIVERSITY MECHANICAL 15442 16,563,888.00 CONSTRUCTION
WESTERN STATES CONCRETE SRVC 19535 6,566.40 CONSTRUCTION
WHITMORE STEEL, INC. 17695 8,572.50 CONSTRUCTION
WINDCO PAINTING, INC. 19488 35,698.00 CONSTRUCTION
SAN DIEGO COUNTY AIR POLLUTIO 14318 30,700.00 PERMIT & INSPECT
SIERRA MEDICAL GAS 13044 800.00 PERMIT & INSPECT
SMART SAFETY GROUP 19617 403.31 PERMIT & INSPECT
STATE WATER RESOURCES CONTR 16031 1,362.00 PERMIT & INSPECT
HAWKS INT'L SECURITY, INC. 19716 24,618.75 SECURITY
OXBLUE CORPORATION 19083 990.00 SECURITY
SENSORWAVE TECHNOLOGY, INC. 19938 6,323.76 SECURITY
Grand Total 52,185,194.01
Thursday, October 22, 2009 Page 4 of 4
ADD E-9
PALOMAR POMERADO HEALTHSCHEDULE OF BLDG EXPANSION EXPENDITURES GO BOND--SERIES 2007A Measure BB Project Fund 2007 GO DRAW #014 to #020Detail ReportReimbursement Period: April 1, 2009 to June 30, 2009
ICOC REVIEW #6
VENDOR NAME
SUBMISSION STATUS INVOICE
VENDOR #
CHECK-DATE CK # BANK CHK AMTAC POSTING
DATE DESCRIPTION CAMPUS
A O REED & COMPANY 13223
2007 GO DRAW #014 9520*05R1 4/6/2009 126619 4/30/2009 CONSTRUCTION POMERADO31,110.98
2007 GO DRAW #016 9354*RETBR3 4/20/2009 127400 4/30/2009 CONSTRUCTION POMERADO1,642.00
2007 GO DRAW #019 9520*06 6/15/2009 130488 6/30/2009 CONSTRUCTION POMERADO6,632.32
SUM --- A O REED & COMPANY (3 detail records) 39,385.30
ADAMO FAMILY TRUST 19548
2007 GO DRAW #014 APR 2009 RENT 3/30/2009 126224 4/30/2009 CONSTRUCTION PALOMAR-WEST13,400.00
2007 GO DRAW #016 MAY 2009 RENT 4/27/2009 127672 5/31/2009 CONSTRUCTION PALOMAR-WEST13,400.00
SUM --- ADAMO FAMILY TRUST (2 detail records) 26,800.00
ADVANCED PNEUMATIC TUBES INC 18264
2007 GO DRAW #019 26107 6/8/2009 129929 6/30/2009 CONSTRUCTION POMERADO10,080.00
2007 GO DRAW #019 26071R 6/15/2009 130489 6/30/2009 CONSTRUCTION POMERADO1,250.00
SUM --- ADVANCED PNEUMATIC TUBES INC (2 detail records) 11,330.00
ADVANCED SYSTEMS 19549
2007 GO DRAW #014 3 4/6/2009 126774 4/30/2009 CONSTRUCTION POMERADO51,624.00
2007 GO DRAW #019 4 6/15/2009 130656 6/30/2009 CONSTRUCTION POMERADO8,460.00
2007 GO DRAW #019 5 6/15/2009 130656 6/30/2009 CONSTRUCTION POMERADO13,259.70
SUM --- ADVANCED SYSTEMS (3 detail records) 73,343.70
ADVANCED TECHNOLOGY RESOURCES 17656
2007 GO DRAW #017 1096 5/11/2009 128451 5/31/2009 A & E and CONSULTING PALOMAR-456 E GRAND1,914.00
SUM --- ADVANCED TECHNOLOGY RESOURCES (1 detail record) 1,914.00
Thursday, October 22, 2009 Page 1 of 22
ADD E-10
VENDOR NAME
SUBMISSION STATUS INVOICE
VENDOR #
CHECK-DATE CK # BANK CHK AMTAC POSTING
DATE DESCRIPTION CAMPUS
ALLIANT INSURANCE SERVICES 18392
2007 GO DRAW #015 964835 4/13/2009 127094 4/30/2009 INSURANCE PALOMAR-WEST34,000.00
SUM --- ALLIANT INSURANCE SERVICES (1 detail record) 34,000.00
AMERICAN SHEET METAL 19604
2007 GO DRAW #016 08135 5/4/2009 128358 5/31/2009 CONSTRUCTION PALOMAR-456 E GRAND5,500.00
SUM --- AMERICAN SHEET METAL (1 detail record) 5,500.00
ANNING-JOHNSON CO. 19591
2007 GO DRAW #014 JOB L-2426 APP#4 3/30/2009 126216 3/31/2009 CONSTRUCTION PALOMAR-WEST85,945.00
2007 GO DRAW #017 JOB L-2426 APP#5 5/11/2009 128440 5/31/2009 CONSTRUCTION PALOMAR-WEST676,173.00
SUM --- ANNING-JOHNSON CO. (2 detail records) 762,118.00
AQUATEC CHEMICAL SERVICES INC 19952
2007 GO DRAW #019 900454 6/15/2009 130652 6/30/2009 CONSTRUCTION PALOMAR-WEST11,200.00
SUM --- AQUATEC CHEMICAL SERVICES INC (1 detail record) 11,200.00
AUTODESK, INC 19089
2007 GO DRAW #017 9450166731 5/11/2009 128574 5/31/2009 A & E and CONSULTING PALOMAR-WEST22,500.00
SUM --- AUTODESK, INC (1 detail record) 22,500.00
AWT-APPLIED WATERPROOFING,INC. 17696
2007 GO DRAW #015 28050-7 4/13/2009 126885 4/30/2009 CONSTRUCTION PALOMAR-WEST11,924.10
2007 GO DRAW #017 28050-8 5/18/2009 128950 5/31/2009 CONSTRUCTION PALOMAR-WEST12,132.90
SUM --- AWT-APPLIED WATERPROOFING,INC. (2 detail records) 24,057.00
BERGELECTRIC CORPORATION 14082
2007 GO DRAW #016 10621-25 4/7/2009 126877 4/30/2009 CONSTRUCTION PALOMAR-WEST139,918.22
2007 GO DRAW #016 11298-1 5/4/2009 128132 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND4,500.00
2007 GO DRAW #016 11298-2 5/4/2009 128132 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND7,200.00
2007 GO DRAW #016 11298-3 5/4/2009 128132 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND4,315.50
2007 GO DRAW #016 11298-4 5/4/2009 128132 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND137,119.50
2007 GO DRAW #016 11298-5 5/4/2009 128132 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND35,173.80
2007 GO DRAW #016 11298-6 5/4/2009 128132 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND45,797.40
2007 GO DRAW #016 11298-7 5/4/2009 128132 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND19,354.50
2007 GO DRAW #016 11298-8 5/4/2009 128132 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND28,162.30
Thursday, October 22, 2009 Page 2 of 22
ADD E-11
VENDOR NAME
SUBMISSION STATUS INVOICE
VENDOR #
CHECK-DATE CK # BANK CHK AMTAC POSTING
DATE DESCRIPTION CAMPUS
2007 GO DRAW #017 10621-26 5/11/2009 128439 5/31/2009 CONSTRUCTION PALOMAR-WEST394,123.10
2007 GO DRAW #019 10621-27 6/8/2009 129943 6/30/2009 CONSTRUCTION PALOMAR-WEST1,701,294.01
SUM --- BERGELECTRIC CORPORATION (15 detail records) 2,516,958.33
BEST CONTRACTING SERVICES, INC 19490
2007 GO DRAW #014 105354 4/6/2009 126618 4/30/2009 CONSTRUCTION POMERADO21,416.40
2007 GO DRAW #016 105515 5/4/2009 128123 4/30/2009 CONSTRUCTION POMERADO31,725.90
2007 GO DRAW #019 105723 6/8/2009 129930 6/30/2009 CONSTRUCTION POMERADO10,289.00
SUM --- BEST CONTRACTING SERVICES, INC (3 detail records) 63,431.30
BRADSHAW ENGINEERING CORP 18526
2007 GO DRAW #019 APPL 3 1630-3205 6/9/2009 1662 6/30/2009 CONSTRUCTION PALOMAR-WEST162,946.80
SUM --- BRADSHAW ENGINEERING CORP (1 detail record) 162,946.80
BRADY COMPANY 15749
2007 GO DRAW #016 7207 5/4/2009 128364 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND1,512.00
SUM --- BRADY COMPANY (1 detail record) 1,512.00
BRICKMAN GROUP LTD 18259
2007 GO DRAW #017 4622589302 5/11/2009 128653 4/30/2009 CONSTRUCTION PALOMAR-WEST660.00
SUM --- BRICKMAN GROUP LTD (1 detail record) 660.00
BSD BUILDERS, INC 18629
2007 GO DRAW #015 268001-08 RET 4/13/2009 126889 4/30/2009 CONSTRUCTION ANDREASON RENOVATION25,872.60
2007 GO DRAW #019 269001-01 6/15/2009 130476 6/30/2009 CONSTRUCTION ANDREASON RENOVATION33,108.00
SUM --- BSD BUILDERS, INC (2 detail records) 58,980.60
SUM --- STATE WATER RESOURCES CONTROL (1 detail record) 1,362.00
SUPERIOR ROOFING 19487
2007 GO DRAW #016 8215R 5/4/2009 128410 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND2,688.50
SUM --- SUPERIOR ROOFING (1 detail record) 2,688.50
SWANILLON INC dba 19562
2007 GO DRAW #015 3000020508-20510 4/15/2009 127398 4/30/2009 CONSTRUCTION PALOMAR-WEST54,161.07
2007 GO DRAW #017 APPLICATION NO. 18 RET 5/18/2009 128952 5/31/2009 CONSTRUCTION PALOMAR-WEST24,213.50
2007 GO DRAW #018 3000021131 5/20/2009 129269 5/31/2009 CONSTRUCTION PALOMAR-WEST214,192.88
SUM --- SWANILLON INC dba (3 detail records) 292,567.45
SWISSLOG HEALTHCARE SOLUTIONS 12664
2007 GO DRAW #014 90251431 3/30/2009 126221 3/31/2009 CONSTRUCTION PALOMAR-WEST5,727.00
SUM --- SWISSLOG HEALTHCARE SOLUTIONS (1 detail record) 5,727.00
THYSSENKRUPP ELEVATOR CORP 16556
2007 GO DRAW #018 APPLICATION NO: 2 5/25/2009 129416 5/31/2009 CONSTRUCTION PALOMAR-WEST227,441.42
2007 GO DRAW #019 1037037609 6/15/2009 130662 6/30/2009 CONSTRUCTION POMERADO52,060.82
2007 GO DRAW #019 1037037778 6/15/2009 130662 6/30/2009 CONSTRUCTION POMERADO24,857.20
Thursday, October 22, 2009 Page 20 of 22
ADD E-29
VENDOR NAME
SUBMISSION STATUS INVOICE
VENDOR #
CHECK-DATE CK # BANK CHK AMTAC POSTING
DATE DESCRIPTION CAMPUS
2007 GO DRAW #020 1037037782 6/22/2009 130980 6/30/2009 CONSTRUCTION PALOMAR-WEST755,242.64
SUM --- THYSSENKRUPP ELEVATOR CORP (5 detail records) 1,059,602.08
TOWER GLASS INC 18774
2007 GO DRAW #019 APPLIC NO: 2 6/15/2009 130475 6/30/2009 CONSTRUCTION POMERADO25,225.71
SUM --- TOWER GLASS INC (1 detail record) 25,225.71
UNIVERSITY MECHANICAL 15442
2007 GO DRAW #015 15350 / 15351 4/13/2009 126894 4/30/2009 CONSTRUCTION PALOMAR-WEST2,080,103.00
2007 GO DRAW #016 15417 / 15418 5/4/2009 128136 4/30/2009 CONSTRUCTION PALOMAR-WEST4,407,449.00
2007 GO DRAW #020 15502 / 15501 6/22/2009 130756 6/30/2009 CONSTRUCTION PALOMAR-WEST10,076,336.00
SUM --- UNIVERSITY MECHANICAL (5 detail records) 16,563,888.00
URS CORPORATION 11122
2007 GO DRAW #014 3735132 4/6/2009 126615 4/30/2009 A & E and CONSULTING POMERADO15,107.50
2007 GO DRAW #016 3785300 5/4/2009 128124 4/30/2009 A & E and CONSULTING PALOMAR-WEST32,632.75
2007 GO DRAW #017 3824148 5/11/2009 128435 5/31/2009 A & E and CONSULTING PALOMAR-WEST28,050.50
2007 GO DRAW #020 3862926 6/22/2009 130753 6/30/2009 A & E and CONSULTING PALOMAR-WEST22,976.00
SUM --- URS CORPORATION (4 detail records) 98,766.75
WESTERN STATES CONCRETE SRVCS 19535
2007 GO DRAW #019 PROJ 50019-0, APPL 3 6/15/2009 130722 6/30/2009 CONSTRUCTION POMERADO6,566.40
SUM --- WESTERN STATES CONCRETE SRVCS (1 detail record) 6,566.40
WHITMORE STEEL, INC. 17695
2007 GO DRAW #014 50019, APPL#1 4/6/2009 126629 4/30/2009 CONSTRUCTION POMERADO6,858.00
2007 GO DRAW #019 50019, APPL#2 6/15/2009 130494 6/30/2009 CONSTRUCTION POMERADO1,714.50
SUM --- WHITMORE STEEL, INC. (2 detail records) 8,572.50
WINDCO PAINTING, INC. 19488
2007 GO DRAW #016 09-142 5/4/2009 128346 4/30/2009 CONSTRUCTION PALOMAR-456 E GRAND35,698.00
SUM --- WINDCO PAINTING, INC. (1 detail record) 35,698.00
WORKPLACE SERVICES 11014
2007 GO DRAW #016 055239 4/14/2009 1386 4/30/2009 CONSTRUCTION POMERADO3,615.80
2007 GO DRAW #017 54409/2 5/12/2009 1497 5/31/2009 CONSTRUCTION PALOMAR-456 E GRAND2,827.94
Thursday, October 22, 2009 Page 21 of 22
ADD E-30
VENDOR NAME
SUBMISSION STATUS INVOICE
VENDOR #
CHECK-DATE CK # BANK CHK AMTAC POSTING
DATE DESCRIPTION CAMPUS
2007 GO DRAW #017 55429 5/12/2009 1497 4/30/2009 CONSTRUCTION POMERADO3,302.41
SUM --- WORKPLACE SERVICES (3 detail records) 9,746.15
Grand Total 52,185,194.01
Thursday, October 22, 2009 Page 22 of 22
ADD E-31
ADDENDUM F
ADD F-1
DRAFT
PALOMAR POMERADO HEALTH HOSPITAL, EMERGENCY CARE, TRAUMA CENTER IMPROVEMENT
AND REPAIR MEASURE BONDS
INDEPENDENT CITIZENS’ OVERSIGHT COMMITTEE
ANNUAL REPORT FOR DISTRICT FISCAL YEAR 2008-2009
Background
Measure BB
On November 2, 2004, voters passed Measure BB, the Palomar Pomerado Health Hospital, Emergency Care, Trauma Center Improvement and Repair Measure. Measure BB authorized the issuance by Palomar Pomerado Health [“PPH”/”District”] of General Obligation [“GO”] Bonds to acquire and improve real property for hospital and health care purposes, including the acquisition and construction of new health care facilities and the renovation of existing health care facilities within the District. Pursuant to Measure BB, all proceeds of GO Bonds issued by PPH are required to be used for costs incurred in connection with the acquisition and construction of medical facilities and costs of issuance of the GO Bonds and no proceeds may be used for any other purpose, including staff and administrative salaries and other operating expenses. Measure BB was passed by the voters with a 69.84% vote, which exceeded the two-thirds minimum required. In accordance with Measure BB, the PPH Board of Directors [“the Board”] established a nine-member, unpaid, Independent Citizens' Oversight Committee [“ICOC”], the members of which are appointed by the PPH Board of Directors [“the Board”].
Responsibilities
As provided in Measure BB, the ICOC is composed of community leaders with experience in finance, accounting, construction, and healthcare. To carry out its stated purpose of assuring voters that GO Bond proceeds are expended solely for the purposes permitted by Measure BB, the ICOC has reviewed each annual expenditure report produced by the District in accordance with Measure BB to ensure that (a) GO Bond proceeds were expended only for purposes permitted by Measure BB; and (b) that no GO Bond proceeds had been used for staff or administrator salaries or other operating expenses.
In furtherance of these responsibilities, the ICOC has met at least once annually since first being seated in July 2005. ICOC meetings are open to the public and regulated by the Brown Act. The meetings are held at the Administrative Offices of the District, located at 15255 Innovation Drive, San Diego, CA 92128, or other District facilities, or such other public space as designated by the ICOC, provided, however, that all meetings shall be held within the District. Meeting dates, agendas and minutes are posted on the PPH web site [http://www.pph.org/default.aspx?nd=2144].
The first Annual Report of the ICOC for the District’s Fiscal Year 2005-2006 was contained within the minutes of the ICOC’s December 19, 2006, Annual Meeting, which were presented to the Board for review and approval on February 12, 2007.
The second Annual Report of the ICOC for the District’s Fiscal Year 2006-2007 was presented to and approved by the Board at its February 11, 2008, meeting.
The third Annual Report of the ICOC for the District’s Fiscal Year 2007-2008 was presented to and approved by the Board at its October 20, 2008, meeting. Copies of all Annual Reports of the ICOC are also posted on the ICOC page on the PPH web site. Reconciliation of Funds and Uses
SEE ADDENDUM
Accountability
The ICOC is actively executing its mission of monitoring and overseeing Measure BB expenditures. ICOC members have:
1. Reviewed project expenditures to ensure that proceeds of GO Bonds issued pursuant to Measure BB funds were expended only for purposes permitted by Measure BB;
2. Reviewed the reconciliation of sources and uses for the first two series of GO Bonds, which were issued in July 2005 [“the Series 2005A Bonds”] and in December 2007 [“the Series 2007A Bonds”], against the Statement of Funds provided by Wells Fargo Bank, National Association, as paying agent for both the Series 2005A and Series 2007A Bonds;
3. Reviewed that requisitions were properly documented and authorized; and
4. Reviewed specific expenditure invoices, as necessary, to assure expenditures were made pursuant to Measure BB authority;
Our review indicated that PPH is in compliance with the requirements of Measure BB as follows:
1. Proceeds of both the Series 2005A and Series 2007A Bonds have been used only for the construction of facilities or the acquisition of real property for facilities as authorized by Measure BB.
2. Projects funded were included in Measure BB.
3. No funds have been used for staff or administrator salaries or other operating expenses.
ADD F-3
DRAFT
ICOC Annual Report District FY2007-2008
Page 3 of 4
There were no issues of current concern to the ICOC, unless specified below:
1.
2. Membership
The ICOC shall consist of not less than nine (9) members, the exact number to be determined from time to time by the Board, appointed by the Board from a list of candidates who have submitted written applications.
To be a qualified member of the ICOC, a person must:
1. Be at least 18 years of age and a citizen of the State of California and reside within the boundaries of the District;
2. Not be an employee, official, vendor, contractor or consultant of the District; and
3. Not have an immediate family member who is an employee, official, vendor, contractor or consultant of the District.
The ICOC shall at all times, except during the period of a vacancy, include the following members (collectively, the “Required Members”):
1. One member who is active in a business organization
2. One member who is active in a senior citizens’ organization
3. One member who is active in a bona fide taxpayers’ organization; and
4. One member who is a nurse or physician.
The current members of the ICOC are: John A. Amodeo, At Large
William C. Bonner, Senior Citizens’ Org.
William L. Corwin, At Large
Alex A. Galenes, At Large
William Hoffman, At Large
Marguerite Jackson Dill, PHD, RN, FAAN, Nurse Representative
Ronald D. Klingensmith, Taxpayers’ Org.
John McIver, Business Org.
Margaret Moir, At Large
Barry I. Newman, At Large
H. Scott Peck, At Large
ADD F-4
DRAFT
ICOC Annual Report District FY2007-2008
Page 4 of 4
Officers
Pursuant to the ICOC Procedures, Policies and Guidelines, the Board shall annually appoint a Committee Chair, Committee Vice Chair and Committee Secretary. The following individuals were appointed by the Board to fill the positions indicated for the July 1, 2009 through June 30, 2010, terms of office:
1. Chair Margaret Moir
2. Vice Chair William Hoffman
3. Secretary John McIver Submitted to the Palomar Pomerado Health Board of Directors on behalf of the Palomar Pomerado Health Hospital, Emergency Care, Trauma Center Improvement and Repair Measure Bonds Independent Citizens’ Oversight Committee, BY: Margaret Moir, Chair