Occupancy date at hospital not affected by high dollar change order dispute

Commissioners claim crucial equipment hookup to backup power system was not on option list

Lincoln County commissioners agreed to authorize the county manager to spend up to $160,000 on a change order to hook-up essential equipment to backup power at the replacement hospital in Ruidoso.

They took the action last week to ensure the 25-bed Lincoln County Medical Center project moves forward and the projected date in April for a temporary certificate of occupancy is not affected.

But Commission Vice Chairman Lynn Willard said Thursday even with the action, the board is not sure how the "stay in place" state order in reference to containing the spread of the coronavirus may impact the schedule.

The architectural rendering of the new entrance to the hospital shows the second floor.

Commissioners contended the county is not responsible for the oversight of failing to plan for the system needed to hook up the magnetic resonance imaging (MRI), X-ray and computed tomography (CAT scan) machines to the back up generator, and that the system was not in the original design or listed as an option for later addition.

This isn't the first hospital Dekker Perich Sabatini has designed for Presbyterian Healthcare Services, which leases and manages the county hospital, County Attorney Alan Morel pointed out. 

"(The missing system) is in every Presbyterian hospital ever built," he said, adding that Presbyterian officials were "amazed" it was not on list of options, at least. "This is not on any list or correspondence or a single email we can find. We can prove we were not at any meeting when this was decided."

He acknowledged that county officials were interested in keeping costs down as the design was worked out.

Although the system is not required by the state Construction Industries Division, "I think Presbyterian will require it as part of operating a safe hospital to ensure there is backup power. If the power goes out, you can’t do CAT scan," Morel said.

The system will be ordered immediately, but not installed until after a temporary certificate of occupancy is issued and inspections by the state CID are completed, County Manager Nita Taylor said.

"We still have ongoing discussions who responsible for the cost," she said. "Dekker Perich is saying it was not in the plans and they not responsible."

The company's architect on the project, Bobby George submitted a three-page letter outlining what he contends occurred, she said. He was not available for comment and did not appear at the commission meeting.

After the temporary certificate of occupancy is issued, the installation can be added as another project and won't hold up anything, Taylor said.

The old entrance will be removed at the Lincoln County Medical Center in Ruidoso.

"And we can start the clock to getting the higher rent," Commissioner Tom Stewart said.

He was referring to an increase in the annual lease payment approved in 2016 that will increase the figure from $1.1 million to $3.2 million, reflecting the added value of the new hospital, with $2.3 million in cash and $900,000 in uncompensated services documented by the hospital. The lease payment is to be used for repayment of the construction debt, including a $25 million bond issue approved by voters. 

The most recent pay application submitted by contractor Jaynes Corporation was dated March 5, 2020 for $868,734.77, bringing their total invoiced amount to date to $25,780,075.88, County Treasurer Beverly Calaway reported. Based on the company's contractual sum, the balance left on their portion of the project is $2,620,888.12.

As of last week, the replacement cost hit $31,227,000.69, leaving $3,478,000, not including a $460,340 capital improvement allocation approved by the state legislature and signed by the governor.

More:Hospital may go out for bid in January

More:Contract awarded for construction of new Lincoln County Medical Center

More:Date for first patient at county hospital May 13

Dianne Stallings can be contacted at dstallings@ruidosonews.com.  This coverage only is possible with support from our readers. Sign up today for a subscription to the Ruidoso News.