A Public Building Commission meeting and election was held inside a Barber County Commissioner’s meeting on Tuesday, January 31, 2012. After moving the meeting location three times to accommodate the group of people that were in attendance, the meeting got underway shortly before 2 p.m.

Representatives from the Kiowa District Hospital, Bond Attorney Kevin M. Cowan and representatives with the USDA appeared before the PBC and commissioners concerning the $4 million dollars in pledged funding for Kiowa’s hospital project.

Tom Finger with the USDA assured the commissioners and the PBC, "There is ample supply of funding in this program."

Rates are currently at 3.75% now, but will adjust in March. Since this project began, interest rates have climbed about 1%.

To go through the process of issuing bonds for the Kiowa District Hospital, the county will again go through a credit rating process. Because the county has had a recent credit rating, this process should take no more than a 20 minute phone call to complete.

"We should even have a better rating this go around," stated Commissioner Steve Garten. "We’ve sold Home Health to a private company locally."

The home health loss and line item did slightly alter the county’s good credit score in 2011.

The county’s auditor Ron Bouska stated, "The financial condition is better now at the end of 2011 than in 2010."

Kiowa District Hospital CEO Alben "Van" Vandeveer stated that their hospital was making progress with the USDA loan process, foundation monies and grants to fill in the "gap" funding that was needed to begin their approximately $7 million building project.

"We have a "Friends of Kiowa District Hospital and Manor" foundation established that is currently raising money in addition to our loan application to the USDA," he stated. Vandeveer told commissioners that the hospital already had $100,000 saved for equipment purchasing for the new 8 bed facility.

The Kiowa hospital application has been pre-approved. Medicine Lodge is also at the same point in the loan process, but has already received its $6 million from the PBC and has also completed and reached 100% design development. The hospital is currently waiting on USDA to fund the remainder of the project. Kiowa District Hospital is not yet at this point, but is close.

Commissioner Steve Garten stated he was concerned with escalating costs to the project, but neither hospital is asking for any additional county funds.

"Because of the USDA’s application process, much of the improvements had to be rebid," said Medicine Lodge Memorial Hospital Administrator Kevin White. This added slightly to the cost of the project.

"We have started and we already have accessed about $700,000 - $730,000 of the funds made available by the county," White informed the commissioners. Quarterly reports of this spending were approved and copies were sent to the PBC.

There was some confusion as to how these funds would be filtered. Commissioner Garten thought that the money would flow through the Treasurer’s Office, but it actually is approved by office of the Kansas State Treasurer and flows to the hospital.

Commissioner Paul Harbaugh expressed his concern in the change of the gap funding for the Medicine Lodge Hospital building project.

"Originally, we approved that funding contingent on your gap funding proposal using private funding and securing the hospital’s ranch," he said.

White explained that the ranch and private funding were options, but that USDA had proposed a package deal that did not involve securing the ranch, but instead secured the hospital’s revenues. Income derived from the ranch is part of the security in the USDA’s package and the hospital will agree to not altering that source of income without approval by the USDA in the future.

"The local bank and property were an option," explained White, "but the USDA feels they can do a consolidated package."

Some discussion was held on liens held by the PBC and USDA and first rights. Tom Finger stated that final language had not yet been completed in the agreements.

Like Kiowa, Medicine Lodge Memorial Hospital also has a foundation established and White informed the PBC and commissioners of its progress.

"We have a former resident, anonymous donor, that has pledged $500,000 in matching funds for our hospital," White stated.

After discussion ended on the hospitals’ funding progress, Commissioner Harbaugh stated, "I think we’re ready to move forward."

Those attending on behalf of the Public Building Commission called a meeting to order for the purpose of electing new officers. Jim Colborn was nominated as president and the nomination carried. Also elected were Tom Bedwell - Vice President and Chantae Simpson - Secretary.

After the election was held, the PBC approved modifications and passed Resolution 2012-1 authorizing funds for Kiowa District Hospital.