By Jim Misunas
LARNED — The Pawnee County commissioners and the Public Building Commission completed the bond closing Monday for the Pawnee Valley Community Hospital with the bond counsel, Gilmore & Bell.
Sarah Steele represented Gilmore & Bell during Monday’s Pawnee County commission meeting. Also attending were Dick King and Tom Giessel, Public Building Commission; Kathy Bowman and Donna Pelton, Pawnee County commissioners; and John Settle, Pawnee County attorney.
The bond closing completed the 2011 tax compliance agreement; the 2012 bond issue certificate of deeming preliminary official statement; authorization of official statement and a county closing certificate. An afternoon conference call finalized the closing.
The Pawnee Valley Community Hospital has a “Guaranteed Maximum Price,” of just under $18.3 million. The total of two bonds amounted to $19.6 million because some debt was added that was tied to the Pawnee Valley Medical Associates.
The sale of the bonds came in two phases, $10 million and $9.62 million. The second bond secured a net interest rate of 3.82 percent. The first bond sale had a net interest rate of 4.23 percent. The bonds were marketed by underwriters Country Club Bank and Oppenheimer & Co., Inc.
After the sale, the revenue is placed in a trust account monitored by a bond trustee. Expenses for the hospital project are paid by the trustee, following regular submission by contractors and sub-contractors.
Philip Schultze, Murray Company principal, Shelton Streeter, Murray project developer, and David Wright, Health Facilities Group vice president, will have the lead group on the Guaranteed Maximum Price. Mike Smith, Murray Company, will be the construction superintendent who will spend all his time in Larned over the next two years.
The Wichita Health Facilities Group is the architectural firm for PVCH. Murray Company of Overland Park is the construction firm.
Initial work has removed asbestos, relocated utilities and demolition. ACM Removal will take out asbestos and linoleum from the current Pawnee Valley Community Hospital.
The second phase of construction of the new PVCH has started. The 15-month project will include building, clinic modification and site work with occupancy planned for Feb. 22, 2013.
The final phase will be final removal of the old PVCH from Feb. 25, 2013, until May 20, 2013. Demolition, asbestos abatement and construction of a south parking lot will be final projects.
Pawnee Valley Community Hospital is using “construction management at risk.”
CMR is described as a project delivery process where a contractor is engaged by the owner during the design process to assist in pre-construction project management support services, and then acts as a general contractor during the construction process. The process offers a “guaranteed maximum price,” for the project. Proposed CMR fees are $992,825 for Murray.
By Jim Misunas