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Home My WebLink AboutRes2017-049Sponsored by: Hunt CITY OF SEWARD, ALASKA RESOLUTION 2017-049 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE 2018 GRANT YEAR BUDGET FOR THE SEWARD COMMUNITY HEALTH CENTER AS REQUIRED BY THE CO - APPLICANT AGREEMENT BETWEEN THE CITY OF SEWARD AND THE SEWARD COMMUNITY HEALTH CENTER WHEREAS, the Seward City Council enacted Ordinance 2010-008 on December 13, 2010, establishing the powers and duties of the Governing Board of Directors ("Governing Board") charged with oversight of the Seward Community Health Center, as amended by Ordinance 2013- 013 on December 16, 2013, which agreement expires January 31, 2019; and WHEREAS, the City of Seward ("City") and the Seward Community Health Center ("CHC") are co -applicants as a federally qualified health center in accordance with Section 330 of the Public Health Service Act (42 U.S.C. §254b); and WHEREAS, the City and the CHC entered into a Co -Applicant Agreement dated February 20, 2014, wherein the parties agreed that the CHC budget would be submitted to the City Council after approval by the Governing Board and providing that "the City Council may not unilaterally revise a budget approved by the Governing Board or approve an alternate budget for the Health Center without review and final approval by the Governing Board, with subsequent follow-up by the City Council"; and WHEREAS, the Governing Board of the CHC approved the 2018 Seward Community Health Center Section 330 (Year 4) grant budget at a board meeting held on July 27, 2017, and the Coordinating Committee ("Committee") of the CHC met to review the grant budget, and both the Governing Board and the Committee recommend approval by the Seward City Council. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA that: Section 1. The Seward City Council hereby approves the 2018 budget of the Seward Community Health Center ("CHC"), representing the Year 4 grant budget for Section 330 funding through the Health Resources and Services Administration. Section 2. The CHC is requesting a financial contribution from the City of Seward in the amount of $300,000 for the 2018 grant year which will be subject to approval by the Seward City Council during its upcoming budget deliberations. Section 3. This resolution shall take effect immediately upon its adoption. CITY OF SEWARD, ALASKA RESOLUTION 2017-049 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 28tn day of August, 2017. THE CITY OF SEWARD, ALASKA (;�2� 4�92�� can Bardarson, Mayor AYES: Casagranda, Squires, McClure, Altermatt, Bardarson NOES: None ABSENT: Keil, Slater ABSTAIN: None ATTEST: JJ hanna ' , �Cj� ty Clerk (City Seal) •�*,,.:...,, .•�:� o S E yyq,,� � , 'oaPO�q�. O Olt k' ■�: SEAL ate, . % •+-ice' • j k �•OF •Pa _�. r+��rrasnaa�ak• Agenda Statement Meeting Date: August 28, 2017 To: City Council Through: Jim Hunt, City Manager --o From: Kristin Erchinger, Finance Director Agenda Item: City Council Co -Applicant Approval of Section 330 Seward Community Health Center 2018 Budget BACKGROUND & JUSTIFICATION: The Seward City Council authorized the creation of the Seward Community Health Center (SCHC) and governing Board when it enacted Ordinance 2010-008 in December 2010, subsequently amended by Ordinance 2013-013 on December 16, 2013, and set to expire January 31, 2019.. The City of Seward and SCHC are co -applicants for Section 330 federal funding to operate a federally qualified health center in Seward; together, the entities comprise the Health Center, The parties entered into a Co -Applicant Agreement (Agreement) on February 20, 2014 approved by City Council Resolution 2014-018. This Agreement requires that the SCHC budget be approved first by the governing Board and then by the City Council, and includes the following language: § 3.2.4 "The Governing Board shall approve the annual operating and capital budget in accordance with Section 330 requirements and City policies. The overall plan and budget shall be prepared under the Governing Board's direction by the Health Center's management team and the Finance Committee of the Governing Board. " § 3.2.5 "The Governing Board shall submit an annual budget for the health center to the City Council for approval, as a co -applicant requirement of Section 330. The Board shall submit the budget no later than October I of each year, for the following year. If the Board unreasonably fails to approve an annual budget, the City may still submit the annual funding request under Section 330 of the Federal Public Health Service Act. No budget shall become effective without City Council approval. " 4.2.4 "The City Council shall be responsiblefor adopting the Health Center's annual operating and capital budgets as finally approved by the Governing Board, the City Council may not unilaterally revise a budget approved by the Governing Board or approve an alternate budget for the Health Center without review and final approval by the Governing Board, with subsequent follow-up by the Council in accordance with Seward City Code 2.40.030(a). In accordance with Section 5 of the Agreement, the parties also agree to participate in a Coordinating Committee comprised of one member each of the Governing Board, the City Council, the Health Center executive director, and the City Manager or his designee. This group met to review the proposed 2018 Seward Community Health Center budget and has recommended its approval. The budget must be submitted to HRSA no later than September 15, 2017. Further, Health Resources and Services Administration (HRSA) issued Policy Information Notice 2013-01 on March 18, 2014, requiring that health centers prepare and submit grant applications that contain a total budget for the health center scope of services for 12 months, and the budget must include a separate budget breakdown for the Section 330 funding proposed for the application period, showing costs supported by the grant and costs supported by other sources of non-HRSA funding (i.e. patient revenue, City grant funding, other funding). INTENT: Fulfill the City's obligation as co -applicant Section 330 grantee, to approve the 2018 Seward Community Health Center grant budget. CONSISTENCY CHECKLIST: Yes I No I N/A 1 Comprehensive Plan (document source here): "Effective, accessible, — affordable healthcare ", p. 12. X 2. Strategic Plan (document source here): "Maintain and enhance medical services", p. 18 X 3 Other (list): Co Applicant Agreement dated 2/20/14; HRSA PIN 2013- 01, pp 5-6 X FISCAL NOTE: The SCHC anticipates HRSA federal funding for the period 2/1/18-1/31/19 totaling $1,147,754. Grant amounts are subject to change by HRSA, depending on patient visits. The SCHC requests $300,000 from the City to support its 2018 operations, with the additional $200,000 in funding to be set aside toward future facility expansion. Should the organization be unable to meet its operational mandate within the requested $300,000 City contribution, a request can be made to access a portion of the additional $200,000. As the clinic achieves its goal of increasing patient visits, it is expected that patient revenues will comprise a larger portion of clinic funding, necessitating less operating subsidy from the City. The clinic is estimating patient revenues of $1,257,660 in 2018. Approved by Finance Department: zZJ,r¢¢, LZ�� ATTORNEY REVIEW: Yes No—X RECOMMENDATION_: City Council approve the Section 330 Co -Applicant Seward Community Health Center 2018 Budget..