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Wednesday, Aug. 27, 2008

Oakdale voters again reject hospital bond bid

Oak Valley officials must go back to drawing board for more options

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OAKDALE -- Measure Q supporters swallowed bitter medicine Tuesday as voters defeated Oak Valley Hospital's $27 million bond effort for the second time this year.

Among ballots cast, 57 percent favored the bond and 42 percent were against it, according to official results.

The measure required 66.7 percent approval to pass. In April, an identical measure failed by a smaller margin, falling short by just 86 votes.

The question for hospital officials is what's next. "We'll have to go though the whole planning process again and identify other options, because the board as a whole didn't really consider any other options," said Bob Wikoff, Oak Valley Hospital District board director.

That discussion probably will start tonight, when the board meets. Also on the agenda -- in closed session -- is the annual evaluation of John Friel, chief executive officer.

Friel angered some voters in July when he said he didn't want Measure Q to appear on the November ballot because too many Republicans would vote in that election. Republicans, he said, weren't likely to support Measure Q.

Among registered voters in the Oak Valley Hospital District, 8,638 are Republicans; 6,045 are Democrats.

Friel said in July that if Measure Q were defeated, the hospital probably wouldn't try another bond measure.

"I can't say never, but if the voters turn down this bond, I'll take their answer to heart and we will not go forward with another election so long as I'm CEO," Friel said.

Had it prevailed, Measure Q would have added $12.13 per $100,000 of assessed property value to tax bills for 30 years. Homeowners already are paying for a $37 million bond passed in 2004 to build a replacement for the 35-year-old hospital.

The 2004 measure passed handily, garnering 78 percent of the vote. Since then, voters' wallets have been squeezed by a slowing economy. Hospital officials say they're feeling pinched, too -- estimated construction costs for the new hospital have skyrocketed since the 2004 bond was passed, they said.

That's why they asked voters to tax themselves again this year. The new hospital would nearly double the size of Oak Valley, which was built in 1973. A bigger, better facility would cut wait times in the emergency room and attract better doctors to the area, supporters said.

The other motivation behind replacing Oak Valley is new state seismic standards for hospitals. Originally, the state gave Oak Valley until 2013 to meet the requirements, but the hospital was granted a 17-year extension earlier this year.

In addition to the 2004 bond, the new hospital would be funded by a combination of hospital reserves, a capital campaign and borrowed funds. The hospital says it needs bonds like Measure H and Measure Q because there are no state and federal sources to help rebuild hospitals that don't meet seismic standards.

Construction on the new building hasn't started.

There are 70,000 residents in the hospital's district, which includes Oakdale, Waterford, Knights Ferry, Valley Home and part of Riverbank.

The two elections the hospital held this year cost about $200,000.

At the Stanislaus County election office Tuesday night, hospital spokeswoman Susanna Mendieta refused to guess why Measure Q failed.

"What I can do is say thank you to all of the volunteers who supported us. We're extremely disappointed," she said.

Bee staff writer Leslie Albrecht can be reached at lalbrecht@modbee.com or 578-2378.