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Home My WebLink AboutRes2020-070 Sponsored OF SEWARD,ALASKA by: Meszaros RESOLUTION 2020-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE 2021 GRANT YEAR BUDGET FOR THE SEWARD COMMUNITY HEALTH CENTER (SCHC) AS REQUIRED BY THE CO-APPLICANT AGREEMENT BETWEEN THE CITY OF SEWARD AND THE SCHC WHEREAS, on December 13, 2010, the Seward City Council enacted Ordinance 2010- 008 establishing the powers and duties of the Governing Board of Directors ("Governing Board") charged with oversight of the Seward Community Health Center (SCHC), as amended by Ordinance 2013-013 on December 16, 2013; and WHEREAS, the City of Seward (City) and the SCHC 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 SCHC entered into a Co-Applicant Agreement dated February 20, 2014, and the City Council authorized submission of the previous Service Area Competition Grant application via Resolution 2015-080 approved on September 2, 2015, wherein the parties agreed that the SCHC 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 SCHC approved the 2021 Seward Community Health Center budget at a board meeting held on July 23, 2020; and WHEREAS, the SCHC 2021 budget is due to the U.S. Health Resources and Services Administration by September 25, 2020. 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 2021 budget for the Seward Community Health Center as attached herein. Section 2. Both the City of Seward and the Seward Community Health Center agree to abide by the co-applicant agreement and all applicable laws, regulations, and governing policies. Section 3.This resolution shall take effect immediately upon adoption. CITY OF SEWARD, ALASKA RESOLUTION 2020-070 PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 24th day of August,2020. TH F S + ARD ALASKA C is Terry, ayor AYES: Baclaan, McClure, Seese, Osenga, Terry NOES: None ABSENT: None ABSTAIN: Crites (This item was approved on consent; Council Member Crites abstained from voting on the Agenda and Consent Agenda due to a Conflict of Interest) ATTEST: Brenda J. Bal u, MC City Clerk .�y O E1jF S . 0 Vo�O�rF iO •* • • 5 • = SEAL • = •.,4* OF P��, Sponsored by: Meszaros CITY OF SEWARD,ALASKA RESOLUTION 2020-070 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, APPROVING THE 2021 GRANT YEAR BUDGET FOR THE SEWARD COMMUNITY HEALTH CENTER (SCHC) AS REQUIRED BY THE CO-APPLICANT AGREEMENT BETWEEN THE CITY OF SEWARD AND THE SCHC WHEREAS, on December 13, 2010, the Seward City Council enacted Ordinance 2010- 00E establishing the powers and duties of the Governing Board of Directors ("Governing Board") charged with oversight of the Seward Community Health Center (SCHC), as amended by Ordinance 2013- 013 on December 16, 2013; and WHEREAS, the City of Seward (City) and the SCHC 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 SCHC entered into a Co-Applicant Agreement dated February 20, 2014, and the City Council authorized submission of the previous Service Area Competition Grant application via Resolution 2015-080 approved on September 2, 2015, wherein the parties agreed that the SCHC 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 SCHC approved the 2021 Seward Community Health Center budget at a board meeting held on July 23, 2020; and WHEREAS, the SCHC 2021 budget is due to the U.S. Health Resources and Services Administration by September 25, 2020. 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 2021 budget for the Seward Community Health Center as attached herein. Section 2. Both the City of Seward and the Seward Community Health Center agree to abide by the co-applicant agreement and all applicable laws, regulations, and governing policies. Section 3. This resolution shall take effect immediately upon adoption. 218 Agenda Statement Meeting Date: August 24, 2020 • To: City Council Through: Scott Meszaros, City Manager Agenda Item: City Council Co-Applicant Approval of Section 330 Seward Community Health Center 2021 Budget BACKGROUND & JUSTIFICATION: The Seward City Council authorized the creation of the Seward Community Health Center(SCHC) and governing Board when it enacted Ordinance 20I0-008 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 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, and subsequently amended it in Resolution 2018-067, approved on August 13,2018.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 tinder the Governing Board's direction by the Health Center's management team and the Finance Connnittee of the Governing Board." 3.2.5 "The Governing Board shall sttbrnit an annual budget/or 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 follosving year. If the Board unreasonably fails to approve an annual budget, the City may still submit the annual funding request tinder 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 fatally approved by the Governing Board, the City Council stay trot unilaterally revise a budget approved by the Governing Board or approve an alternate budget/or the Health Center without review and final approval by the Governing Board, with subsequent follow-tip by the Council in accordance with Seward City Code 2.40.OJ0(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 2021 Seward Community Health Center budget and has recommended its approval. 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 219 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 2021 Seward Community Health Center grant budget. CONSISTENCY CHECKLIST: Yes No NIA 1' Comprehensive Plan: (document source here): "Effective, accessible, affordable healthcare", p. 12. X 2 Strategic Plan: (document source here): "Maintain and enhance medical X services", p. 18 3 Other: Other(list): Co-Applicant Agreement dated 220114, • HRSA PIN X 2013-01, pp 5-6. FISCAL NOTE: The SCHC anticipates HRSA federal funding for the 2021 budget year totaling $1,456,336. Grant amounts are subject to change by HRSA,depending on patient visits.The clinic is estimating patient revenues of$1,708,282. The City's 2020 budget includes the final $100,000 contribution to the CHC.The original goal of the City's contribution was to gradually reduce the amount over five years with the hope that patient revenues were high enough to eliminate the need of operating subsidy from the City. The 2021 City budget does not include any contribution to the CHC. Approved by Finance Department: ATTORNEY REVIEW: Yes No X Not Applicable RECOMMENDATION: City Council approve Section 330 Co-Applicant SCHC 2021 Budget. Resolution 2020-070 220 Seward Community Health Center, Inc. Year 1 2021 Budget For Approval HRSA Other TOTAL Excludes One-Time Funds (Qual/IBHS) Federal Non-Federal Volume: #of Patients 2,264 Patient Encounters 5,204 Revenue: Federal BPHC 330 Grant 1,456,336 1,456,336 Applicant - State / Local - - - Other Federal Funding - - Other - 239,940 239,940 Program Income (Net Patient Revenue) - 1,708,282 1,708,282 TOTAL REVENUE 1,456,336 1,948,222 3,404,558 Expense: Personnel - Refer to Form 2 Staffing Profile Administration/Management 267,236 121,153 388,389 Facility & Non-Clinical Support Staff 151,927 66,642 218,570 Physician 164,252 140,933 305,186 NP, PA, and CNMs 229,559 106,499 336,058 Medical 250,167 109,800 359,966 Dental - - - Behavioral Health (Mental Health & Substance 51,398 22,607 74,005 Professional Services - - - Vision Services - - - Pharmacy - - - Enabling Services 103,879 45,079 148,958 Other Programs and Services - - - Total Salary Expense 1,218,419 612,713 1,831,131 Fringe Benefits: Health Insurance (Includes Med/Den/Vis/LTD/STD/Life) - 440,532 440,532 Wellness Program 3,600 3,600 Housing Allowance 5,800 5,800 Medicare/SS 133,580 133,580 AK SUI 17,811 17,811 Retirement - 50,992 50,992 Workers' Compensation - 17,997 17,997 Total Fringe Benefits - 670,312 670,312 Subtotal Personnel and Fringe 1,218,419 1,283,025 2,501,443 Travel: Providers and Staff - 6,500 6,500 Board - 11,500 11,500 Other- Offsite Staff/Contracted Physicians - 7,000 7,000 Subtotal Travel - 25,000 25,000 Page 1 of 2 221 Printed On: 7/17/2020 Seward Community Health Center, Inc. Year 1 2021 Budget For Approval HRSA Other TOTAL Excludes One-Time Funds (Qual/IBHS) Federal Non-Federal Supplies: Pharmacy/ Medications - 36,000 36,000 Medical Supplies 37,000 37,000 Office - 15,060 15,060 Minor Equipment (<$5,000) - 1,000 1,000 Subtotal supplies - 89,060 89,060 Contractual: Patient Care: Patient Related/Contractual 237,917 3,600 241,517 Non-Patient Care: Accounting - 43,520 43,520 Audit 22,000 22,000 Billing & Coding 3,000 3,000 Legal - 5,000 5,000 Services - Electronic (HIT) 60,165 60,165 Janitorial - 10,600 10,600 Other - - - Subtotal Contractual 237,917 147,885 385,801 Other: Bank Fees 6,975 6,975 Communications 27,300 27,300 Dues & Subscriptions 36,719 36,719 Equipment Maintenance/ Lease 7,120 7,120 Insurance - Malpractice, Propety, D&O 24,000 24,000 O&E Promotion Supplies / Postage/ Events 5,000 5,000 O&E Advertising 3,000 3,000 Postage/ Freight 3,000 3,000 Recruiting & Retention 61,880 61,880 In-Kind Expenses (Rent+ USAC Telecom) 81,420 81,420 Rent/ Leases (Other) - - Repairs & Maintenance 42,600 42,600 Training 2,660 2,660 Utilities 39,600 39,600 Subtotal Other - 341,274 341,274 TOTAL DIRECT COSTS 1,456,335 1,886,244 3,342,579 Retained Earnings - 61,979 61,979 TOTAL EXPENSE 1,456,335 1,948,222 3,404,558 Page 2 of 2 222 Printed On: 7/17/2020