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HomeMy WebLinkAboutRes2005-121 Sponsored by: Corbridge -- CITY OF SEWARD, ALASKA RESOLUTION 2005-121 A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, AUTHORIZING FUNDING IN THE AMOUNT OF $30,000 TO PROVIDENCE SEWARD MEDICAL AND CARE CENTER FOR THE PURPOSE OF PURSUING THE CERTIFICATE OF NEED PROCESS FOR CONSTRUCTION OF THE REPLACEMENT LONG-TERM CARE FACILITY, AND APPROPRIATING FUNDS WHEREAS, the City of Seward has issued a Request for Proposals for an architectural firm to conduct planning and design for a new long-term care replacement facility to replace the Wesley Rehabilitation and Care Center; and WHEREAS, construction of new or replacement healthcare facilities in Alaska requires that applicants complete a Certificate of Need Application through the State of Alaska Department of Health and Social Services in order for the State to determine the number of beds it will license, such that facilities will not build excess capacity resulting in higher costs to the statewide healthcare system; and .... WHEREAS, the application for a Certificate of Need requires budgetary information relative to the specific facility being designed, and it was therefore necessary for the City to delay submission of an application for a Certificate of Need until further information was available from the planning and design process; and WHEREAS, the Certificate of Need Application process is extensive and requires specific expertise in the area of health care, and the City desires to utilize the services of health care experts from Providence and any subcontractors they may deem appropriate to assist in the preparation and submission of the Certificate of Need application. NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Council hereby authorizes expenditures not to exceed $30,000 for the purpose of preparing and submitting the Certificate of Need Application to the State of Alaska Department of Health and Social Services, for the replacement long-term care facility. - CITY OF SEWARD, ALASKA RESOLUTION 2005-121 1 ....J Section 2. Funds in the amount of$30,000 are hereby appropriated from the General Fund fund balance account no. 101-0000-3050 to the General Services pass-thru account no. 101-1180- 5998. Section 3. This resolution shall take effect immediately upon adoption. PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 14th day of November, 2005. THE CITY OF SEWARD, ALASKA LIz, jj~~/ Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: Branson, Valdatta, Lorenz, Thomas, Shafer None Dunham, Schafer None I i ....J ATTEST: (City Seal) ~,\~HHU,,~.. ~~"'. ,'"\ -: ""-- ~" ,.,,""''*~,{ \..Jt '-,)':'~)1, ",.(1': ~'f' ~\. e.....'''' ./"1. (. +". U "0" ~po.c:~" 'If.\; ~ to:~ .~.:G 1l.1,:","",,'~--' ~ I;; .. "r:;- J(:', '" -., $..." :: :" ~ de,. ~ u 0: S~'~...\!' : ~. ~: t:, ,,'.~ :i, : I;") :~ 1."'1 ': .....,....~.,~.......,: ~'__ ,;..t ~~~ ~ :,".~l ":~ rrJ \V" ('j / /j ;';". ~"'",.......1tt:'... '("'.'e'..:.r.f.:.... J~" <'\::;:;::';':~!"';';':j" . <It: " .J Council Agenda Statement Meeting Date: November 14, 2005 Through: Clark Corbridge, City Manager From: Kristin Erchinger, Finance Director Agenda Item: Long-Term Care Facility Certificate of Need Application BACKGROUND & JUSTIFICATION The City of Seward has issued a request for proposals for an architectural firm to begin the planning and design process to replace the Wesley Rehabilitation and Care Center with a new community-owned long-term care facility. In order to construct a new facility, or to replace an existing facility, the City is required to submit an application to the State of Alaska Department of Health & Social Services (“DHSS”), for a Certificate of Need (“CON”). The purpose of this process it to enable the State to assure that healthcare facilities are being constructed to meet existing demand, in order to prevent the construction of excess capacity which ultimately drives up the costs of healthcare throughout the State. The State’s reimbursement system is cost-based, so cost efficiency is an important principle in preserving the stability of the statewide healthcare system. The CON process is extensive and involves considerable research to justify required service levels, staffing needs, project costs, facility financial pro forma projections, local population demographics, organizational structure, quality control, etc. The outcome of this application process will be a decision by the State DHSS, as to the number of beds it is willing to license in the new facility, which will have a financial impact on Seward’s healthcare system. Due to the requirement to complete the replacement facility as soon as possible -- to minimize the projected financial deficit associated with the potential loss of the statewide average reimbursement rate -- the City administration desires to utilize the services of healthcare experts from Providence and any subcontractors they may deem appropriate, to expedite the preparation and submission of the Certificate of Need application. The estimated cost of this project is $30,000. Once the data is compiled and submitted in the form of the CON application, DHSS staff has 20 days to review it for completeness, and an additional 90-120 days to review the application once it is declared complete, before it is submitted to the Commissioner for final approval. For that reason, it is crucial that the CON process be initiated as soon as possible. CONSISTENCY CHECKLIST Where applicable, this agenda statement is consistent with the Seward City Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures. Other: FISCAL NOTE The cost of this project is estimated to be $30,000, with funding for the project recommended to come from the City’s General Fund fund balance. RECOMMENDATION Seward City Council approve Resolution 2005- 121 authorizing an appropriation in an amount not-to-exceed $30,000 to Providence Seward Medical and Care Center, for the purpose of pursuing an application with the State of Alaska Department of Health & Social Services, for a Certificate of Need for the long-term care replacement facility.