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6■11 CITY OF SEWARD, ALASKA
RESOLUTION 2008-051
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING A MANAGEMENT AND OPERATING
AGREEMENT BETWEEN THE CITY OF SEWARD AND PROVIDENCE
HEALTH & SERVICES — WASHINGTON, D/B/A PROVIDENCE
HEALTH SYSTEM ALASKA, AND APPROPRIATING FUNDS
WHEREAS, the City owns real property consisting of land, a hospital building, and a
long-term care facility in the process of being constructed, together with other improvements
thereon (collectively, the "PSMC Property"); and
WHEREAS, Providence Health and Services, Alaska ("Providence") leased the hospital
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 City and Providence eliminated the lease agreement and entered into a
management and operating agreement in April, 2003, when Providence began operating the
collocated hospital and long-term care ("LTC") facilities on the City's behalf, with said
agreement expiring on April 11, 2008, and extended by the Seward City Council until July 1 1
2008, pending completion of a new contract; and
WHEREAS, SCC 6.10.120 exempts contracts for professional services from competitive
selection procedures; and
WHEREAS, the City and Providence desire to enter into a new five-year contract
whereby Providence will continue to operate Providence Seward Medical and Care Center
("PSMCC") on the PSMC Property, as a collocated hospital and long-term care facility; and
WHEREAS, the parties desire to continue to provide safe, timely, efficient, effective.
and quality healthcare services to the residents of Seward and the surrounding area, and to
become the State's first Green House-certified long-term care facility, restoring the choices of
daily living to the LTC residents through a transformational model of care; and
WHEREAS, the City Council has previously designated $500,000 for the purpose of
covering hospital operational shortfalls (Resolution 2002-042 and Resolution 2003-045), and
under the new agreement, $500,000 is to be made available to cover potential shortfalls
anticipated pending opening of the new long-term care facility.
NOW THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA, that:
CITY OF SEWARD, ALASKA
RESOLUTION 2008-051
Section 1. The City Council authorizes the city manager to execute and deliver, in
substantially the form as attached hereto, the Management and Operating Agreement between the
City of Seward, Alaska and Providence Health & Services — Washington, d.b.a. Providence
Health System Alaska.
Section 2. Based on Providence's solid reputation for providing quality healthcare
services throughout Alaska, on the positive relationship which exists between Providence and the
community of Seward, and on the continued positive performance Providence has demonstrated
In managing and operating both the hospital and the long-term care facility in Seward, the
Seward City Council finds and determines that the public interest would be best served by not
requiring competitive bids or proposals before the City enters into the Agreement.
Section 3. The amount of $500,000 is hereby appropriated from the Designated for
I-Iospital Operations account no. 101-0000-3042, to pass-through account no. 101-1191-
5998, to be utilized for the purpose of covering operational shortfalls in the hospital/long-term
care facility, per the attached Management and Operating Agreement between the City of Seward
and Providence.
Section 4. This Resolution shall take immediately following its adoption.
APPROVED by the City Council of the City of Seward, Alaska, this 9th day of June,
2008.
THE CITY OF SEWARIBI5LASKA
Aitt
Clark Corbridge, Mayor
CITY OF SEWARD, ALASKA
RESOLUTION 2008-051
AYES: None
NOES: Bardarson, Amberg, Kellar, Corbridge
ABSENT: Valdatta, Smith, Dunham
ABSTAIN: None
ATTEST:
FP LED
Jean Lewis
City Clerk, CMC
(City Seal)
L.