And the beat goes on
EDITOR: While your recent headline “Fears of Third Bankruptcy Grow” brought the predictable wailing and gnashing of teeth from SWMC’s most zealous supporters, it was accurate if unwelcome.
Inadequate cash flow can doom even companies that are profitable or have a positive net worth. Unfortunately, SWMC enjoys neither of those benefits. SWMC had an operating loss of more than $300,000 in the month of January, nearly six times what its CFO had predicted. And SWMC’s liabilities—unpaid bills and long-term deb—totaled roughly $9 million as of January 31, millions more than its assets.
But recent cash flow problems amply justified your use of the B-word (bankruptcy). In a space of just four weeks, SWMC twice was forced to beg the Palm Drive Health Care District for cash to meet its payroll. And not meeting payroll is a Big Deal—especially for a company like SWMC that spends 65 percent of its money on salary and benefits.
On Jan. 5, SWMC pleaded for $1 million “no later than the close of business on January 6.” The District, although still mired in its second bankruptcy in six years, agreed the next day to give SWMC $600,000.
Less than four weeks later, on February 1, SWMC implored the District to provide another “immediate” $600,000 contribution along with a $1 million loan “no later than February 22.” At the time, SWMC’s CEO and CFO stated publicly that they were unable to obtain loans from any private sources. The District again came to the rescue, approving an immediate $500,000 loan to SWMC (which the District really couldn’t afford) and agreeing to pursue an additional $1 million loan from the County of Sonoma for SWMC’s benefit (at substantial cost to the District and, thankfully, since abandoned).
These were the events leading up to Rollie Atkinson’s article in your newspaper that accurately, if inconveniently, described SWMC’s immediate, dire financial condition. Curiously, SWMC’s CEO and supporters argue that, because they never used the B-word, no one else can, either. That’s just nonsense.
Even though your article also reported some promising statistics on hospital usage, along with many hopeful predictions from SWMC leaders, you were roundly criticized for expressing any doubts whatsoever by those who think the reopened hospital is like Tinkerbell—if we all don’t clap for it, it will die.
One letter to the editor last week, which its authors claimed was a “letter from our hearts on this Valentine’s Day,” scolded Rollie for impeding the “resurrection of our hospital” and implored him to consider his religious and moral beliefs before writing any more articles (his beliefs about cash flow and receivables, presumably). A second writer accused him of “malicious intent” and of trying to “undermine our hospital with a life-saving ER.” Killed anyone lately, Rollie?
For nearly two years, anyone who has dared to question the validity of business plans and financial projections for reopening Palm Drive Hospital has been publicly and often personally attacked. And the beat goes on…
Jim Horn
Sebastopol
Clarifying a few points
EDITOR: I read with interest Frank Robertson’s column last week, and would like to clarify a couple of points.
One: I’ve been farming outside of Forestville in the Russian River Valley — geographically West County — for 9 years. Our farm is near the 5th District line. My husband and I have also, for over five years, been searching for a home of our own in West County. We never gave thought to what political district we would be living in: just that we would continue to be part of the community near our farm.
Last Spring, we bought a house in Forestville, the closest town to the farm. It’s six minutes down the road from our fields.
Although we crossed political districts, it is simply not true that we are new to the area or that our move had anything to do with politics. When we bought our home, I had never even considered running for elected office.
I’m running for office because last summer I became involved in a local land use issue that showed me just how broken our government is. I believe in a better government: one that moves beyond mudslinging in the local papers and into constructive discussions about innovative policies that can make our county a better place.
Point two: Nick Tibbetts, a veteran Sonoma County politico, is supporting Jack Picinini. In Frank’s column, unsurprisingly, Nick attacked the two declared female candidates. Although he has never met me, Nick insinuated that I don’t make enough money and am in need of a job.
To carry Nick’s attack through to its logical conclusion, apparently only rich people earning six figure salaries should be allowed to seek elected office.
If one’s income becomes a litmus test for whether or not one should run for office, what will our leadership look like? I suppose it would look a lot like it does today. In my opinion, diversity of life experience only adds to the collective wisdom of our leadership. We should encourage, not discourage, people of all walks of life to run for office.
Lynda Hopkins
Forestville
New vineyard
EDITOR: Once again we have a new vineyard/winery submitting an application in our residential neighborhood and next to schools and a cemetery. Is there no end to these continuous applications? People live here and we pay hefty property taxes, so why doesn’t the county officials hear our voice? We don’t want any more wineries and vineyards in our neighborhoods poisoning our children, ruining our trails and peaceful lives. And West County residents are also fed up of being portrayed as a bunch of pot smoking hippies. We are a very diverse population; we are mostly average families trying to protect our children, landscapes and mellow lifestyle. So our message is loud and clear: we will not allow for any more encroachment of the wine industry into our neighborhoods and least of all near our schools and beloved trails.
Jacqueline Schael–
Sebastopol