Loading...
HomeMy WebLinkAbout05282013 City Council Special Meeting Minutes City of Seward, Alaska May 28, 2013 City Council Special Meeting Minutes Volume 39, Page 132 CALL TO ORDER War The May 28, 2013 a special meeting of the Seward City Council was called to order at 6:30 p.m. by Mayor David Seaward. OPENING CEREMONY Council Member Shafer led the Pledge of Allegiance to the flag. ROLL CALL There were present: David Seaward presiding and Jean Bardarson Christy Terry Vanta Shafer Bob Valdatta Ristine Casagranda Marianna Keil comprising a quorum of the Council; and Jim Hunt, City Manager Johanna Kinney, City Clerk Nanci Richey, Administrative Assistant Absent — None CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING - None APPROVAL OF AGENDA Motion (Bardarson /Terry) Approval of Agenda Motion Passed Unanimous NEW BUSINESS Resolution 2013 -040, Acknowledging Review Of The Settlement And Release Agreement Negotiated Between The State Of Alaska And Providence Seward Medical And Care Center Relating To A Medicaid Rate Appeal In An Approximate Amount Of 56.1 Million Over Four Years. Motion (Bardarson /Shafer) Approve Resolution 2013 -040 Hunt stated the lay down version before council tonight was due to an oversight between staff. The version in the packet was reviewed by the attorney and what her recommendation was for council. The resolution in the packet recommended council acknowledge review and non objection City of Seward, Alaska City Council Special Meeting Minutes May 28, 2013 Volume 39, Page 133 to the settlement agreement and specifically not having the city be an agreeing party to the settlement. Hunt and the Finance Director disagreed with this approach and felt the city needed to Wrri actually approve the settlement rather than give acceptance of review and non - objection. The laydown version proposed council taking more definitive action on the settlement agreement. He recommended council accept this settlement as proposed in the laydown version tonight, so the city would be formally accepting the settlement offer and signing the agreement. Shafer asked who would carry the burden if the city decided to litigate. Hunt noted the city would be responsible either way, financially. Valdatta said the state was not strapped for money and he did not think the city should accept financial responsibility by approving this agreement. Terry asked if the attorney reviewed both documents, Hunt said she had reviewed both. City Clerk Johanna Kinney noted if council were to pursue the laydown version, it should be assumed the attorney would request that the attorney review should be marked "no ". Terry wondered if the state had seen this resolution already. Hunt said he needed to be careful in what he said due to negotiations, but it had been vetted through Providence. Motion to Recess (Keil /Casagranda) Recess until the May 28, 2013 7:00 p.m. regular meeting is adjourned. Council stated they were running out of time as they were required to go into their regular meeting at 7 :00 p.m. Motion Approved Unanimous Council Recessed at 6:41 p.m. Council Resumed at 9:06 p.m. Motion to Amend (Terry /Casagranda) Amend Resolution 2013 -040 by adopting the laydown changes provided by administration. In response to Casagranda, Hunt said the language in the packet was designed to appease Providence and the city. Hunt was concerned the language proposed by the attorney left the door open for suspicion and possible litigation. Valdatta said he felt differently than earlier and the city should just do what was needed to settle. Shafer clarified the attorney's recommendation was to settle, but did not want the city to personally accept the settlement and would recommend Providence Seward officially accept the settlement. Shafer preferred the city accept the settlement because they did own the facility. Terry wondered what the deadline was on this issue. Hunt said the state did not give a specific deadline. The Finance Director and the City Attorney were both currently out of state and unavailable. City of SeN urd, Alaska City Council Special Aleeting Minutes May 28, 2013 Volume 39, Page 134 By unanimous consent, council suspended the rules to allow Joe Fong from Providence Seward to speak. Fong clarified the money involved was the City of Seward's money. He stated Providence Attorney Kathy Drummy also thought the city not accepting the settlement agreement with Providence could result in problems with the state agreeing to the settlement. This issue was originally brought forward as "the City of Seward doing business as Providence Seward ". He noted in February the council wanted the final agreement to come to them for ratification and final approval. Fong noted the only material term that was different from February was the payment for previous charges was originally proposed to be given within 90 days of the settlement. Now, the state was not able to accommodate that, but instead would process the payments by the end of the year. In response to Shafer, Fong said waiting that long for the payments did not leave them in immediate jeopardy. The rate they had last year was the rate from 2011 as well, so they were not losing any more money. The current census at Mountain Haven was either 34 or 35, which had been helping them. Shafer said she didn't agree with the attorney's review. They owned the facility and the city sought to pursue this with the state. They agreed in February to the $6.1 million dollars. She didn't see why the city wouldn't be the agreeing party. Bardarson said they weren't given a choice on what to settle on. Fong added there was a clause that dismissed any future appeals in the next four years — which might be of concern to the attorney. The state was holding very firm on this clause. The terms of this agreement stated the city agreed not to come back for any other reason to appeal. Motion to Amend Passed Unanimous Motion to Amend (Terry /Bardarson) Amend Resolution 2013 -040 by striking the word "their" and replacing with "Council's" in the last Whereas. Terry felt this made the sentence more grammatically correct and clear that the final settlement agreement was to come back for "council's final consideration and review." Motion to Amend Passed Unanimous Main Motion Passed Unanimous COUNCIL COMMENTS - None CITIZEN COMMENTS - None COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS - None City of Seward, Alaska City Council Special Meeting Minutes May 28, 2013 Volume 39, Page 135 ADJOURNMENT The meeting was adjourned at 9:31 p.m. Arr: • Ar* 4Li Johanna Kin ; P y , CMC David Seaward City Cle k -5,4G f Mayor J (City Seal .).T ,>,e 're, 17: t ° 4 , , , a ° ....�>..,. • V " e : • 4,r'mr,. m •h ..fi � �. • c.. mxcros ..,�'' Y, w V1 Cj ° Ad d ∎L'I' yry� j