HomeMy WebLinkAboutRes2008-055Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2008-055
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING A 74-DAY EXTENSION OF THE
MANAGEMENT AND OPERATING AGREEMENT BETWEEN THE
CITY OF 5EWARD AND PROVIDENCE HEALTH SYSTEM
WASHINGTON, DBA PROVIDENCE HEALTH AND SERVICES,
ALASKA
WHEREAS, Providence Health and Services, Alaska ("Providence"} leased the
Providence Seward Medical Center ("PSMC"} property and operated a hospital thereon from
June 28, 1996 to April 10, 2003 pursuant to a lease and operating agreement with the City; and
WHEREAS, the nature of the hospital lease and operating agreement changed when the
City and Providence entered into a management and operating agreement in April, 2003, when
Providence began operating the collocated hospital and long-term care facilities on the City's
land; and
WHEREAS, at the October 8, 2007 City Council Meeting, the Seward City Council gave
direction to the administration to begin negotiating a new contract with Providence; and
WHEREAS, the management and operating agreement between the City and Providence
was set to expire on April 11, 2008 and was subsequently amended on March 10, 2008 via
~» Resolution 2008-18 to expire July 11, 2008; and
WHEREAS, the administration desires to extend the current contract by an additional 74
days in order to allow for further negotiations and legal review aimed at ensuring that the
provisions of the contract are consistent with the tax-exempt status of the bonds used to construct
the City's improvements.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
Section 1. The City Manager is hereby authorized to approve Amendment No. 3 to the
Management and Operating Agreement between Providence Health and Services, Alaska and the
City of Seward, in substantially the form as attached hereto.
Section 2. The Management and Operating Agreement between Providence and the City
is hereby extended to September 23, 2008.
Section 3. This Resolution shall take effect 30 days following its adoption.
PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 23rd day of
June, 2008.
CITY OF SEWARD, ALASKA
RESOLUTION 2008-055
THE CITY OF SEWARD, ALASKA
Clark Corbridge, Mayor
AYES: Dunham, Valdatta, Bardarson, Amberg, Kellar, Corbridge
NOES: None
ABSENT: Smith
ABSTAIN: None
ATTEST:
Je Lewis, ACM '
Ci Clerk
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Council Agenda Statement
Meeting Date: June 23, 2008
Through: Phillip Oates, City Manager~~~~
From: Kristin Erchinger, Finance Director
Agenda Item: 74-Day Extension of Contract with Providence
BACKGROUND & JUSTIFICATION
The City of Seward currently has a contract with Providence Health and Services, Alaska ("Providence") to
manage and operate the local hospital and long-term care facility. This contract initially expired April 11, 2008,
and was extended by the Seward City Council for 74 days (based on Council meeting scheduling), to allow
sufficient time for redrafting the agreement.
The administration intended to have the new contract available for Council approval in June. However, we find
it necessary to request additional time for legal review of the contract, in an effort to ensure that the management
fee provisions of the contract are consistent with IRS regulations, to ensure they protect the tax-exempt status of
our bonds for the hospital and long-term care facility.
CONSISTENCY CHECKLIST
Where applicable, this agenda statement is consistent with the Seward City Cade, Charter, Comprehensive
Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
FISCAL NOTE: There is no cost to the City of extending this contract. ~~
RECOMMENDATION: Seward City Council approve Resolution 2008-,~ authorizing a 74-day
extension to the Management and Operating Agreement between Providence and the City of Seward.
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