<p>From left, health district board members Bob Williams, Nick Lunde and Kate Loftus discuss the fate of the new residential care center with district CEO Dave Harman at the Dec. 12 board meeting.</p>

ENTERPRISE – Despite a jump in the cost and many variables, the new Residential Care Facility (RCF) received its final vote of confidence this week from the Wallowa County Health District board of directors before the point of no return.

The unanimous vote to go ahead came after a financial update from project manager Ted Johnson on the 26-bed care facility at the board’s Monday, Dec. 12, meeting. His detailed report showed that – even with many cost-saving measures in place – the final project cost was still $327,000 above the original $4 million estimate.

“Are we still going forward with it? Frankly, I’m some worried,” district CEO Dave Harman said to the board. He compared the project to a Rubik’s cube, with a view at many different angles to try to bring the cost down.

Johnson lined out the projected construction cost in detail, as well as an operating budget that relies on 24 of 26 beds to be filled in a precise patient mix of memory care, bariatric, heavy care, private care and Medicaid patients.

At present it is expected that 15 of the 18 present residents of the Wallowa County Care Center would move to the new RCF, and Harman said that he has received assurances that local families would move their loved ones with Alzheimer’s to the new facility.

“It’s doable. There are concerns, but with what we have now, it looks good,” said Johnson. “I think it can be done. It just has to be staffed properly.”

District chief financial officer Lexi Fields said that one of her concerns is that since the RCF will be its own legal entity, it won’t be able depend on the hospital to subsidize it as it now does the care center. “It will have to follow that (operating) budget to a gnat’s eyebrow,” Fields said.

The original estimate of $4 million was shot in the foot by the winning bid from Anderson Construction, which was $700,000 over budget. That hike was attributed to the time that passed from the original estimate and underestimating prevailing wages.

Among cuts made to whittle down the cost was the use of the district’s own property for a building site, instead of buying land across the street, and the partial use of modular construction.

The $4 million estimate was made before voters approved a 10-year local option tax levy in November 2010 to build a new RCF to replace the aging Wallowa Valley Care Center, which otherwise would have been closed down by July 1 this year.

The money received from the levy, in the end estimated at $3.2 to $3.4 million after interest, would pay most of the cost of building the RCF, with the difference made up from district reserves.

The care center, which started life as the Wallowa County Nursing Home in 1964 (with a construction bid of $221,000) adjoining Wallowa Memorial Hospital, was left behind in the old building when the hospital moved into its brand-new facility in 2007.

During discussion Stacy Green, executive director of the Wallowa Valley Health Care Foundation, offered to present the district’s situation before the foundation board in hopes it could help.

In the end, all five board members decided that the residential care facility is worth the risk.

“You can plug in a lot of variables. The only way you know for sure,” said chairman Bob Williams. He said that the county’s past support of the nursing home makes the viability of the new RCF not “just wishful thinking.”

“If it’s not built, there are no options,” board member Sue Coleman said. “I think we can whittle that $200,000 down to nothing.”

“I think it’s close enough,” Nick Lunde said. “It’s always been on shaky ground operationally. It’s that it’s work the risk. The bottom line is that we need it.”

“I’m an eternal optimist,” contributed Marsha Svensen.

Kate Loftus echoed that optimism, adding that she felt that the people of the county “have given us their faith that we will do this for them.” She moved to go forward with the project, with unanimous approval.

Dave Harman said that with the board’s vote, he will immediately proceed with obtaining financing for the project. Following the meeting, Harman said that he’s been in discussion with Lancaster-Pollard investment banking firm, which will arrange for revenue bonds based on the levy election.

“I think it’s still the best thing for the community,” Harman said. “I’m just nervous because it’s my responsibility to make it work. … But it was the board’s ultimate responsibility to say go’ or no go.'”

The target date for the new residential care facility to be ready for occupancy is Aug. 1, 2012.