Facility Evaluation Report

At this informal conference present were Randy Brown, Executive Director; Michael Beeman, Chief Financial Officer; Pam Kaufmann, attorney; Mark Damon, Certified Public Accountant; Jim Stearman, attorney; Don Allen, Licensee Board Member; Ann Hablitzel, Licensee Board Member; Jeff Davis, Licensee Board Member; Stan Leach, Licensee Board Member, Bill Hendrickson, CDSS Financial Consultant, William Young, Financial Analyst; Paramjit Judge, Financial Analyst; Marina Stanic, Licensing Program Manager; Allison Nakatomi, Manager; and Katie Anderson, Assistant Branch Chief.

The informal conference process was explained to the Licensee.

During the meeting the following was discussed with Licensee:

- board accountability (Title 22, Division 6, Chapter 8, Article 4. Operating Requirements, 87205 (a)(b) Accountability of Licensee Governing Body

- short-term plan to ensure financial obligations are met

- sale of the J1 and J2 houses; expect gross proceeds of approximately $1.6 million

- agreement to cease offering Type A contracts

- financial goals to break even or show 12 months positive results from operations prior to selling Type A or Type B continuing care contracts

- restrictions put in place until short-term plan is met

- possibility of updating Corrective Action Plan