To the Editor:
I have a comment on the article in the January 12, 2012 Wrangell sentinel regarding David Jack’s concerns over spending of capital reserves at Wrangell Medical Center in relation to the WMC Renovation project. He indicated “several assembly members have expressed concern over the spending of the hospital’s reserves.” Although I am no longer on the board of Wrangell Medical Center and therefore do not know what current expenditures are being paid from reserves, I must respond.
Wrangell Medical Center had $3,000,000 in reserves that had been acquired by the prudent administration of Noel Rea, hospital staff and board. Those monies were earmarked for the new medical facility. When the assembly, as the City of Wrangell took over the medical facility project and delayed the start due to their concerns over legalities, the cost for construction increased. Not only that, tax rebates amounting to between $3 and $4 million, which the project would most likely have qualified, were also lost. Then the assembly, after over a year of searching for problems and finding nothing significant, signed contracts with all but one of the entities originally selected by WMC’s board and the basic change was using City of Wrangell instead of Wrangell Medical Center on the contracts. (It was pointed out to the assembly early on that doing that would solve their issue and allow the project to begin.)
The one entity with whom they did not sign a contract is Innovative Capital. Project funds, from all sources could legally be used to pay Innovative, as they are a legitimate and vital piece of the project. Instead, the assembly deferred that contract to Wrangell Medical Center and stipulated that WMC could not use monies earmarked for the project to pay Innovative. So, where is the money to come from? I would think that reserves are a likely source.
From what I read in the Wrangell Sentinel, City Maanger Tim Rooney reports the “hospital project is $1.8 million under budget.” It is also prioritized by the city as their number two project on the unapproved capital budget request list. This report makes me sad and angry. WMC handed the city a plan to build a new hospital with no local dollars needed. If construction had begun according to that plan we would currently see a new facility. When the City and WMC finally agreed the project could proceed, as anticipated and predicted the cost has escalated. Again, Noel Rea sought and procured the additional funds to cover the increased cost. What we have now is a project that may very well find costs continuing to escalate.
My personal opinion is there are people who want Noel Rea to resign and leave Wrangell and perhaps see the delay of the hospital as a means to that end. That would be a tremendous loss to Wrangell Medical Center and the community. Without his leadership, perseverance and political connections we would not be in a position of being able to build a new hospital especially without taxing local citizens.
From what I read and hear from national news, Wrangell could very well lose Federal funding if the project does not get underway and soon. There are many, many places that qualify and would make immediate use of funds for projects.
Please, please, I ask Assembly Members, Mayor Jeremy Maxand, City Manager Tim Rooney and all who live in Wrangell, do not allow this project to not happen. Put aside personal prejudice and feelings. Everyone needs to come together and put this project forward now.
Lynne Campbell
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