Health Care Center funds won't include much wiggle room
By Tim Damos / News Republic
The winning bid for construction of a new county-run nursing home fell just within what Sauk County officials budget, leaving little cash available for unanticipated costs. But savings measures worked into the project should help bolster the reserve fund, one official says. The Sauk County Board this week voted to pay a local contractor $12.56 million to construct the facility using new-age building material, insulated concrete. That was a complete reversal of an oversight committee's original recommendation last week to have a Madison firm build the nursing home with wood for $12.35 million, about $210,000 cheaper. The county has budgeted $12.89 million for construction costs. The Madison firm's bid would have left about 4.2 percent of the construction budget available for unanticipated costs. During committee meetings this week, the county's architect warned accepting a higher bid would shrink the reserve fund. "That's not something we think is acceptable," said Jeri Zuber of Horty Elving, the county's Minnesota-based architectural firm. But county officials plan to purchase materials for the project themselves, meaning the contractor won't have to pay a 5.5 percent sales tax. That could save the county up to $240,000 on the project, said Tim Stieve, Sauk County's facilities manager. He also said the county will purchase workers' compensation insurance for contracted employees involved in the project, which would allow the county to get a portion of the insurance cost back if the project is completed safely. Stieve said those combined savings should bring the project reserve fund back into an acceptable range. "But it's definitely going to be tight," he said. Supervisors have approved borrowing $15 million for the project, which includes non-construction costs. The new 82-bed facility in the city of Reedsburg will replace the aging Sauk County Health Care Center south of Reedsburg. A groundbreaking ceremony for the project will be held Monday morning. If you go What: When: Where: