Council hears proposal to help decrease NRMC debt

Nevada City Council met in regular session Tuesday evening with council members Carol Gallagher, Lyndon Eberhard, Brian Leonard, Ryan Watts and Mayor George Knox in attendance. Also present were City Treasurer Kristie Modlin, City Attorney Bill McCaffree, City Manager JD Kehrman and City Clerk Johnna Williams.

The Mayor recognized special guests, Boy Scout Troop 42, who are working on their citizenship merit badges.

Council heard a proposal from Dr. Warren Lovinger, on behalf of the group Citizens United to Strengthen Our Hospital, for a ballot issue asking for a half-cent sales tax. “What we are proposing is a half-cent sales tax, which would bring in around $800,000 per year during that 12 year period of time, and would go a very long way toward paying the 1.5 million bond responsibility.”

Lovinger highlighted the importance of having a hospital to serve rural areas and briefly described the formation of the group. “This is a group of citizens who wanted to get involved and do what they could to help get things stabilized.” Thus, Citizens United to Strengthen Our Hospital was born. Some of the board members were present and were introduced to the council.

Once formed, the group immediately began studying the situation for Nevada Regional Medical Center. Lovinger noted that he is the only one who is a health care professional. “It was very important to have laypersons looking at this. It very quickly became apparent to us that our hospital is run well, but that because of several different things the debt situation was really choking us down.”

Lovinger explained that the 1.5 million dollars a year that is owed for bond services is a commitment that NRMC has until October, 2032, or about another 12 years. “It was felt by the group that they needed to look at income sources that would help to pay that down – it would be oriented to debt expungement. This is something that could sunset at the end of that 12 years but should be substantial enough to allow NRMC to use its other funds to help build days cash on hand, which is an issue.”

“Our group would like to propose to you that you move forward with that by outing that on the ballot, as quickly as possible which would be Aug. 6.” Additional information will be included in the next edition of the Nevada Daily Mail.

Council approved the appointment of Leslie Carroll to the Planning Commission, replacing Jim Liley with a term expiring November, 2023.

After hearing details of a pump failure, council approved funds to repair a failed pump at Pump Station No. 2. A quote of $9,505.38 from Independent Electric in Springfield for the repair was approved for emergency repair with the understanding it is an estimate and the cost could be more depending on what they find is necessary. The pump experienced a mechanical seal failure. The seal keeps sewage from entering the pump and causing a failure of the electrical portion of the pump. The repair is already in the budget. Council also received an update on current and upcoming sewer projects.