Local News

March 20th, 2008

Moody’s Drops Palomar Pomerado Health Bond Rating from Stable to Negative

Palomar Pomerado Health Board Member Ted Kleiter appears to be prophetic. At the close of last week’s PPH Board meeting Kleiter, who is Chair of the Finance Committee, indicated that recent issues in the municipal bond market may impact PPH.

On March 7th Moody’s dropped PPH’s bond rating from stable to negative. The change to a negative rating was based on poorer than expected operating performance, weakening liquidity, and a plan of finance anticipating a significant revenue bond issue in 2009 to support the Master Facility Plan.

Moody’s pointed out some of the challenges faced by Palomar Pomerado: Heavy debt load with a tripling of outstanding revenue bond debt in 2006, at fiscal year end (FYE 2007) cash to debt was a low 47%, and debt to cash flow an unfavorable 6.5 times. Additional bond debt might be issued as early as 2009. The hightened construction risk as PPH embarks on a large replacement project of Palomar Medical Center and significant expansion of Pomerado Hospital, were also causes for concern. Cash flow, profitablility and debt coverage levels all fell below expectations in FY2007.

Moody’s also pointed out that PPH’s balance sheet has thus far not met growth projections; it remains thinly capitalized and heavily leveraged. Additional debt would likely increase pressure to the rating significantly. Investors are keeping a sharp eye on the PPH bond issue, given the negative rating.

North County Trade Tech High School Awarded $317,000 Grant Funding to enhance programs, create staff positions

North County Trade Tech High School, a construction-oriented public charter school slated to open in Vista this fall, has received a $317,000 grant from the Gary and Mary West Foundation (GMWF).

The GMWF grant will fund staff positions, and enhance programs for the school including the purchase of curriculum supplies. The grant also funds the addition of two vans to transport students to internship sites, industry work site tours and local community service projects.

Trade Tech is now enrolling the freshman class for the 2008 – 2009 school year. The 1.2-acre campus is located at 2585 Business Park Drive in Vista. The public will get a sneak peak at the school during three one-day camps on March 26, 27 or 28. During the camps students will work in Trade Tech’s state of the art construction labs, complete much needed park benches for a local community park, meet successful mentors from the construction industry, and enjoy a full lunch, sponsored by Berg Electric. To register for the camps or for a tour, call (760) 598-0782 or e-mail info@tradetechhigh.org.

The School is an innovative public charter school slated to open in the Fall of 2008. Trade Tech, a non-profit, will be tuition-free. It will provide project-based instruction in Trade Tech will accept 100 ninth-grade students through a publicly-held lottery, growing to 400 students across grades 9 to 12 by 2011. Students will learn through hands-on, project-based instruction while focusing on leadership development, civic engagement, on-the-job training opportunities and internships and community service. Trade Tech graduates can meet all California State University and University of California eligibility requirements while also being prepared for an accelerated apprenticeship in the trade of their choice.

Homeschooling Ban Creates Unhappy Parents

An early reading of case law suggests that non-classroom based instruction in charter schools is not affected by the recent ruling of the California Appeals Court that ruled homeschooling is unlawful.

On February 29, 2008, in the case of Rachel L. v. Superior Court of Los Angeles County, the Second District California Court of Appeals ruled that parents do not have a constitutional right to “home school” their children. The court ruled that all children between the age of six and 18 must be enrolled in a recognized California public school or be subject to one of the State’s limited exemptions to compulsory education.

Noted legal practitioners have noted that this case does not address nor affect the legality of nonclassroom based education in public schools (both charter and non-charter) that is conducted in accordance with the Education Code and applicable implementing regulations.

As a result, parents who homeschooled their children without filing a private school affidavit (and outside of public school enrollment) could be subject to a criminal complaint and prosecuted for the truancy of their children.

Several local charter schools, The Classical Academy and the Escondido Charter schools are not affected by this ruling because the charter document is written to include the independent study (homeschooling) component as a viable educational option. The local public school district and the State Board of Education approved this document. Also, parents are working with children under the direction of a California credentialed teacher. Charter Schools are viable public school options under state law and established Education Code. This also is known as the Charter School Act of 1992.

Feller Drops Out of Mayor’s Race - Will Focus on Holding His Council Seat

Recognizing that maintaining the political power by retaining the majority vote, Oceanside Councilmember Jack Feller has announced he will not run for mayor of Oceanside in the November election.

He had announced his candidacy for mayor almost two years ago. He has now decided instead to run for a third four-year term on the council.

Feller said he hopes to be re-elected so the council retains a voting majority consisting of himself, Councilmen Rocky Chavez and Jerry Kern. In a press release, Feller said he believes that as a council member he can help the city ride out “such turbulent economic times” as it is now facing.

In addition to the mayoral seat, two council seats will be decided Nov. 4 – those now occupied by Feller and Esther Sanchez. Sanchez has not said whether she will seek re-election.

Asked how being on the council would help the city economically, Feller said businesses poised to come to town like to work with a stable council. Working with Chavez and Kern has become more crucial than his running for mayor and perhaps losing the council seat to someone not like-minded. Feller also said the public would prefer a stable council, with candidates they know.

Late Breaking Developments Regarding Palomar Pomerado Health

Monday morning we received a call from Andy Hoang, Manager, Communications & Media Relations, Palomar Pomerado Health. He was the media spokesman referred to in our lead article who had stated Mr. Covert would be traveling and unavailable for comment.

We had called Administration to confirm the starting salary for Mike Covert when first hired. Mr. Hoang heard of our inquiry and advised us we had to file a Public Records Act request. (It is public information and should be available to anyone, not just the media, for the asking). Mr. Hoang also advised us we would no longer be allowed to distribute The Paper within Palomar Medical Center, a public institution supported by taxpayer funds.

The Paper believes this to be retaliation for articles critical of Palomar Pomerado Health management, pure and simple, and, more particularly, this article which is critical of Michael H. Covert. We further believe it is an infringement of both state and federal constitutional rights to a free press and the ability to distribute that free press to the public.

The Paper intends to take appropriate action. Stay tuned.