HomeMy WebLinkAboutRes2014-083 Sponsored by: Hunt
Ism CITY OF SEWARD,ALASKA
RESOLUTION 2014-083
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,APPROVING THE SEWARD COMMUNITY HEALTH CENTER
2015 BUDGET IN ACCORDANCE WITH SECTION 330 OF THE PUBLIC
HEALTH SERVICE ACT,AND 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; and
WHEREAS,the City of Seward("City")and the Seward Community Health Center are co-
applicants as a federally qualified health center("CHC)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 2015 Seward Community
Health Center Section 330(year 2)grant budget at a board meeting held on September 25,2014,and
the Coordinating Committee("Committee")of the CHC and the City administration met to review
the grant budget, and both the 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 2015 budget of the Seward
Community Health Center,representing the Year 2 grant budget for Section 330 funding through the
Health Resources and Services Administration.
Section 2. The City of Seward's financial contribution to the Seward Community Health
Center for 2015 was approved in the City's 2014/2015 Biennial Budget,and reflects a contribution
from the City to the CHC in the amount of$500,000 for 2015.
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CITY OF SEWARD,ALASKA
RESOLUTION 2014-083
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Section 3. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska,this 13`"
day of October, 2014.
THE CITY OF SEWARD ALASKA
i&Zda/Wer)
can Bardarson, Mayor
AYES: Keil, Casagranda, Terry, Squires, Butts, Darling, Bardarson
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
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L 'Gii•■- . L-�
J. anna Kin er MC
C ty Clerk 4
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COUNCIL AGENDA STATEMENT ; F sew
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Meeting Date: October 13,2014
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From: James Hunt, City Manager •
Agenda Item: Council Co-Applicant approval of Section 330 Seward Community Health
Center 2015 Budget
BACKGROUND&JUSTIFICATION:
The Seward City Council authorized the creation of the Seward Community Health Center("CHC") and
Board when it enacted Ordinance 2010-008 in December, 2010, formalizing the powers and duties of the
board of directors charged with overseeing the Seward Community Health Center.
The City of Seward and the CHC 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 Council
Resolution 2014-018. This Agreement requires that the CHC 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 1 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 responsible for 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 2015
Seward Community Health Center budget and has recommended its approval.
Further, Health Resources & 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-grant funds (i.e. patient
service revenue, City grant funding, other funding).
CONSISTENCY CHECKLIST: Yes No N/A
1. Comprehensive Plan(document source here):
2. Strategic Plan(document source here):
3. Other(list): Co-Applicant Agreement dated 2/20/2014;HRSA PIN 2013-01 pp. 5-6 X
ATTORNEY REVIEW: Yes X No
FISCAL NOTE:
The City of Seward's 2015 Budget includes $500,000 in funding for the Seward Community Health
Center. On a going-forward basis, if the CHC meets certain targets for expanded services to new
patients, annual funding from HRSA is estimated at $855,750 which includes the original $650,000 base
grant plus $18,750 CPI increase, plus $187,000 for expanded services. These funds will help to provide
lower-cost primary healthcare services to Seward residents, helping to divert patients from much higher
cost of care in the hospital emergency room. These healthcare dollars coming from outside the
community provide significant economic benefits to Seward and its residents, as well as improved access
to primary healthcare for our uninsured and under-insured residents. As federal grant funding increases,
it is expected that the CHC will become less reliant on City funding for operations.
Approved by Finance Department: i c1 4Le
RECOMMENDATION: ifl)
Council approve Resolution 2014- approving the 2015 Seward Community Health Center budget.
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