HomeMy WebLinkAbout09022015 City Council Special Meeting Packet - CHC Budget Seward City Council
Agenda Packet
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Special CCouncil Meeting
September 2, 2015
City Council Chambers 5:30 p.m.
The City of Seward, Alaska
Special City Council Meeting
September 2, 2015 5:30 p.m. Council Chambers
Jean Bardarson 1. Call To Order
Mayor 2. Pledge Of Allegiance
Term Expires 2015 3. Roll Call
4. Citizen Comments On Any Subject Except Those Items
Marianna Keil Scheduled For Public Hearing. [Those Who Have Signed In Will
Vice Mayor Be Given The First Opportunity To Total Time For This Agenda Item.]
Term Expires 2016 5. Approval Of Agenda And Consent Agenda [Approval of
Ristine Casagranda Consent Agenda passes all routine items indicated by asterisk (*).
Council Member Consent Agenda items are not considered separately unless a council
Term Expires 2016 member so requests. In the event of such a request, the item is
returned to the Regular Agenda.]
Christy Terry 6. Special Orders, Presentations And Reports —None
Council Member
Term Expires 2015 7. New Business
David Squires A. Resolutions
Council Member
Term Expires 2015 Resolution 2015-079,A Resolution Of The City Council Of The
City Of Seward Alaska,Approving The 2016 Grant Year Budget
Dale Butts For The Seward Community Health Center As Required By The
Council Member Co-Applicant Agreement Between The City Of Seward And The
Term Expires 2016 Seward Community Health Center Pg.4
Iris Darling Resolution 2015-080,A Resolution Of The City Council Of The
Council Member
Term Expires 2015 City Of Seward Alaska, Authorizing Submission Of A Service
Area Competition Grant Application To The Health Resources
James Hunt And Services Administration On Behalf Of The City Of Seward
City Manager And The Seward Community Health Center,For The Purpose Of
Continuing Operations As A Federally Qualified Health
Johanna Kinney Center Pg. 13
City Clerk
8. Council Comments
Will Earnhart
City Attorney 9. Citizen Comments
10. Council And Administration Response To Citizen Comments
11. Adjournment
City of Seward, Alaska Council Agenda
September 2, 2015 Page 1
SPECIAL MEETING REQUEST
icAso
Pursuant to Seward City Code 2.10.030 (2), this is to serve as
the written notice calling a Special City Council Meeting on Wednesday,
September 2, 2015 at 5:30 p.m. for the purpose of:
Resolution 2015-079, A Resolution Of The City Council Of
The City Of Seward Alaska, Approving The 2016 Grant
Year Budget For The Seward Community Health Center As
Required By The Co-Applicant Agreement Between The
City Of Seward And The Seward Community Health
Center.
Resolution 2015-080, A Resolution Of The City Council Of
The City Of Seward Alaska, Authorizing Submission Of A
Service Area Competition Grant Application To The Health
Resources And Services Administration On Behalf Of The
City Of Seward And The Seward Community Health
Center, For The Purpose Of Continuing Operations As A
Federally Qualified Health Center.
Signed this 31st day of August, 2015.
Mayor
Cit anager
or
2 Council Members
Upon this request the City Clerk will give due and proper notice as
required by SCC 2.10.032
(No business shall be transacted other than stated above.)
2
eAof sett.
NOTICE OF ki7 9�
SPECIAL MEETING AP
NOTICE IS HEREBY GIVEN that the Seward City Council will meet in a special meeting on
Wednesday, September 2, 2015 at 5:30 p.m. for the purpose of:
Resolution 2015-079, A Resolution Of The City Council Of The City
Of Seward Alaska,Approving The 2016 Grant Year Budget For The
Seward Community Health Center As Required By The Co-
Applicant Agreement Between The City Of Seward And The Seward
Community Health Center.
Resolution 2015-080, A Resolution Of The City Council Of The City
Of Seward Alaska, Authorizing Submission Of A Service Area
Competition Grant Application To The Health Resources And
Services Administration On Behalf Of The City Of Seward And The
Seward Community Health Center, For The Purpose Of Continuing
Operations As A Federally Qualified Health Center.
The meeting will be conducted in City Council Chambers,City Hall,410 Adams Street,Seward. All
interested persons are invited to attend.
BRENDA BALLOU
DEPUTY CITY CLERK
POSTED: Monday, August 31, 2015
City Hall bulletin board
U.S. Post Office
Harbormaster's Building
Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2015-079
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROVING THE 2016 GRANT YEAR BUDGET FOR THE
SEWARD COMMUNITY HEALTH CENTER AS REQUIRED BY THE CO-
APPLICANT AGREEMENT BETWEEN THE CITY OF SEWARD AND THE
SEWARD COMMUNITY HEALTH CENTER
WHEREAS,the Seward City Council enacted Ordinance 2010-008 on December 13,2010,
establishing the powers and duties of the Governing Board of Directors ("Governing Board")
charged with oversight of the Seward Community Health Center, as amended by Ordinance 2013-
013 on December 16, 2013; and
WHEREAS, the City of Seward ("City") and the Seward Community Health Center
("CHC")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 CHC entered into a Co-Applicant Agreement dated February
20, 2014, wherein the parties agreed that the CHC 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 CHC approved the 2015 Seward Community
Health Center Section 330 (Year 3) grant budget at a board meeting held on August 27,2015, and
the Coordinating Committee("Committee")of the CHC met to review the grant budget,and both the
Governing Board and the Committee recommend approval by the Seward City Council.
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 2016 budget of the Seward
Community Health Center("CHC"),representing the Year 3 grant budget for Section 330 funding
through the Health Resources and Services Administration.
Section 2. The CHC is requesting a financial contribution from the City of Seward in the
amount of$500,000 for the 2016 grant year which will be subject to approval by the Seward City
Council during its upcoming budget deliberations.
Section 3. This resolution shall take effect immediately upon its adoption.
CITY OF SEWARD,ALASKA
RESOLUTION 2015-079
PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 2"d day
of September, 2015.
THE CITY OF SEWARD, ALASKA
Jean Bardarson, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
5
Agenda Statement
OF
Meeting Date: August 31, 2015 1:'�' �°'Qa
To: City Council 4=cst
'41-ASKP
Through: Jim Hunt, City Manager
From: Kristin Erchinger, Finance Director )5'"v
Agenda Item: City Council Co-Applicant Approval of Section 330 Seward Community
Health Center 2016 Budget
BACKGROUND & JUSTIFICATION:
The Seward City Council authorized the creation of the Seward Community Health Center(SCHC)
and governing Board when it enacted Ordinance 2010-008 in December 2010, subsequently
amended by Ordinance 2013-013 on December 16, 2013.
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. 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
under the Governing Board's direction by the Health Center's management team and the
Finance Committee of the Governing Board"
§3.2.5 "The Governing Board shall submit an annual budget for 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 1 of each year,for the following year. If the Board unreasonably fails to
approve an annual budget, the City may still submit the annual funding request under 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 finally approved by the Governing Board; 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 Council in accordance with Seward City Code 2.40.030(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 2016 Seward Community Health Center budget and has recommended its approval. The
budget must be submitted to HRSA no later than September 15, 2015.
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
l0
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 2016 Seward
Community Health Center grant budget.
CONSISTENCY CHECKLIST: Yes No N/A
1 Comprehensive Plan (document source here): "Effective, accessible, X
affordable healthcare",p. 12.
2 Strategic Plan (document source here): "Maintain and enhance medical X
services", p. 18
3 Other (list): Co-Applicant Agreement dated 2/20/14; HRSA PIN 2013- X
Ol,pp 5-6.
FISCAL NOTE:
The SCHC anticipates HRSA federal funding for the period 2/1/16-1/31/17 totaling $891,555
including a base allocation of approximately$650,555,an expanded services allocation of$187,000
and an outreach and enrollment allocation of$54,000. These amounts are subject to change by
HRSA,depending on patient visits. The SCHC requests$500,000 from the City to support its 2016
operations during its first year operating with a full staff of three full-time providers. As the clinic
achieves its goal of increasing patient visits, it is expected that patient revenues will comprise a
larger portion of clinic funding, necessitating less operating subsidy from the City. The clinic is
estimating patient revenues of$1,217,817 in 2016.
Approved by Finance Department: i6.441iD �!t4,Q
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: R GO 2,0 i 5 - 0 '7 9
City Council approve the Section 330 Co-Applicant Seward Community Health Center ty er 2016
Budget.
11
2016 330 Grant Budget Highlights and Key Assumptions
SUMMARY:
Following the required federal grant budget format, there are two sections/columns to the grant
budget which when combined make up the total budget:
• HRSA(Federal)330 grant revenue$891,555, and
• Other(Non-Federal) revenue of$1,711,770
The budget includes a breakdown of source for Revenue & Expenses.
• Revenues [$2,669,372]
o HRSA 330 Budget$891,555'
o City of Seward contribution$500,0002
o Patient Revenue$1,217,817
o Other/In-kind revenue$60,000
• Expenses [$2,69,372]—Note: HRSA grant budgets require that expenses equal revenues
o HRSA 330 used entirely for Salaries $891,555
o Non-Federal Expenses (includes some salaries/benefits &operating)$1,454,541
• Salary& Benefits$1,197,284
• Operating Costs$229,542
KEY ASSUMPTIONS:
Patient volume totals 6,590 billable encounters. Midlevel Provider=2,208 encounters;
Physicians=4,382 encounters. Encounters per provider are generally based on a productivity
rate of 14 visits per day for physicians and 12 visits per day for mid-levels for only those days
they are in clinic (excludes PTO days, holidays, admin and CME days). The number of patients
assumption is then derived using an average of 2.2 visits per patient per year for a total of 2,995
patients. New patient visits are expected to drop as a percentage of total visits as our practice
naturally grows from our current 34%to 25%.
Patient revenue/payer mix is based on estimated billable encounters per payor from our actual
billing history and net income (gross charges less discounts and allowances) per visit as follows:
• 52% Private Insurance @$204.82 (no deductibles or co-pays collected)
• 11%Medicaid @ $289.74
• 20% Medicare @ $194.52 (partial deductibles or co-pays collected)
• 17%Self-pay @ $44.15
The Staffing Profile, which includes 2 physicians and 1 mid-level (PA), lists the FTE's (18.25)
projected for 2016 as well as the salaries projected for the staff.
• FTE's are not being increased from current level and include:
o 2.75 providers (2 physicians [incl. med director] & 1 physician assistant)
o 5.50 clinical support staff(RN, medical and nursing assistants)
o 3.0 front desk staff(registration& medical records)
o 1.0 health educator/case manager
o 2.0 outreach&enrollment(1 coordinator/1 assistant)
o 1.0 billing specialist
Reflects recommended adjustment in SCHC patient projection and grant award amount of$18,195
2 SCHC will request$500,000 from the City for 2016 and a$400,000/$100,000 two-tier allocation in 2017
3
o 3.0 admin staff(Executive Director, Finance Director,Admin Asst., Medical Director)
• Usual and customary non-personnel expenses includes:
o Billing/RCM services($60,891 or 5%of net patient revenue)
o Electronic Health Records System fees($52,223)
o CHC CFO/fiscal management oversight services($19,800—Community Link)
o Independent Auditor($15,000)
o Legal Services ($6,000)
o CHC technical consultation ($36,000—Suzanne and others)
o Utilities&Services from Providence ($90,982)
o Liability insurance packages ($18,530)
o Medical, pharmaceutical and office supplies ($93,847—detailed analysis of recent
history done for this budget)
o Minor equipment ($30,730—this is where we adjusted expenses to get bottom line
to zero)
o Board travel and education($14,000—4 director trips @ $3,500/trip)
o Provider and staff travel and training($29,000)
Patient Projection and Grant Award Adjustment
HRSA is now holding grantees accountable for meeting their unduplicated patient projections. Failure to
meet or exceed hitting 95%of the grantees current target will result in a reduction in the award as per
the table below. A significant reduction or loss of eligibility to retain the grant award may occur if the
grantee fails to hit at least 75%of the target. Because SCHC is still early in its development making
accurate future projections difficult,Administration and the Board of Directors is recommending that
the patient projection contained in the budget and SAC application be adjusted downward to a more
reachable level of 3,010 patients by calendar year 2017 in order to avoid more serious possible
reductions in the grant award amount,or possible loss of the award, in future years. This adjustment
results in a reduction of$18,195 (2%)from our current award total bringing it to$891,555 per year.
% of Target Reduction % SCHC Patients SCHC Grant S's
95%to 100%+ No reduction 3,787 - 3,986 $909,750
90%to 94.9%% 0.5% 3,587 - 3,786 $905,201
85%to 89.9% 1.0% 3,388 - 3,586 $900,653
80%to 84.9% 1.5% 3,189 - 3,387 $896,104
75%to 79.9% 2.0% 2,990 - 3,188 $891,555
< 75% Not eligible _
• Current SCHC Patient Target=3,986 to be achieved by calendar year 2017(3,796 from 2013
NAP application projection plus 190 additional patients projected in the 2014 Expanded Services
Supplemental Grant).
• Number of unduplicated patients seen in 2014= 1,072
• Number of unduplicated patients seen so far in 2015 = 1,404 (annualized this would be 2,106)
• Number of unduplicated patients projected in the 2016 grant budget= 2,995
q
Seward Community Health Center, Inc. Year 1
Budget Period Renewal HRSA Other TOTAL
WORKING BUDGET-NOT FOR SUBMISSION Federal Non-Federal
Volume:
#of Patients 2,995
Patient Encounters 6,590
Revenue:
Federal BPHC 330 Grant 891,555 891,555
Applicant -
State/Local - 500,000 500,000
Other Federal Funding -
Other - 60,000 60,000
Program Income(Patient Revenue) - 1,217,817 1,217,817
TOTAL REVENUE 891,555 1,777,817 2,669,372
Expense:
Personnel- Refer to Form 2 Staffing Profile
Administration/Management 368,495 60,000 428,495
Facility and Non-Clinical Support Staff 36,925 - 36,925
Physicians 75,572 344,428 420,000
NP, PA,and CNMs - 123,080 123,080
Medical 257,688 - 257,688
Dental - - -
Enabling Services 152,875 - 152,875
Other Programs and Services - - -
Total Salary Expense 891,555 527,508 1,419,063
Fringe Benefits:
Health Insurance 31.94% - 453,249 453,249
Housing Allowance 1.27% 18,000 18,000
Medicare/SS 7.65% 108,558 108,558
AK SUI 2.15% 30,510 30,510
Retirement 3.00% - 42,572 42,572
Workers' Compensation 1.19% - 16,887 16,887
Total Fringe Benefits 47.20% - 669,776 669,776
Subtotal Personnel and Fringe 891,555 1,197,284 2,088,839
Travel:
Providers and Staff - 22,500 22,500
Board - 14,000 14,000
Other - -
Subtotal Travel - 36,500 36,500
Supplies:
Pharmacy/Medications $ 6.08 - 40,067 40,067
Medical Supplies $ 4.57 30,116 30,116
Office - 23,664 23,664
Minor Equipment(<$5,000) - 30,730 30,730
Subtotal supplies - 124,577 124,577
Contractual:
Non-Patient Care:
Accounting - 19,800 19,800
Audit 15,000 15,000
Billing&Coding 60,891 60,891
Legal - 6,000 6,000
Services-Electronic(EPM, EHR) 52,223 52,223
Technical Assistance/Consulting 0 - 36,000 36,000
Subtotal Contractual - 189,914 189,914
Seward Community Health Center, Inc. Year 1
Budget Period Renewal HRSA Other TOTAL
WORKING BUDGET-NOT FOR SUBMISSION Federal Non-Federal
Other:
Bank Fees - 7,140 7,140
Communications - 31,800 31,800
Dues&Subscriptions - 5,000 5,000
Equipment Maintenance - 3,000 3,000
Facility Janitorial Contract/PSMC 10,560 10,560
Insurance - Malpractice Gap Coverage - 17,207 17,207
Insurance- Property 1,313 1,313
Patient Transportation 1,200 1,200
Postage/Freight - 3,000 3,000
Rent: Clinic - 60,000 60,000
Repairs& Maintenance - 40,616 40,616
Training - 6,500 6,500
Utilities - 39,806 39,806
Staff Appreciation - 2,400 2,400
Subtotal Other - 229,542 229,542
TOTAL EXPENSE 891,555 1,777,817 2,669,372
Must=0 for balanced budget o 0 0
I1
Seward Community Health Center,Inc. DO NOT INCLUDE THIS PAGE IN THE GRANT APPLICATION !
Payor Mix for Income Analysis
2015 YTD Actual(1/3 only) BPR Projections
Enc per +1-Enc per Visits per
Encounters Patients Enc per Pt FTE's Provider FTE's (Provider Encounters Patient Patients
Medical
Physician 4,382 2,004 1.75 2,504.00 1.75 0 4,382
MidLevel Provider 2,208 1,144 1.00 2,208.00 1.00 0 2,208
TOTAL 6,590 3,148 2.20 2.75 6,590 2.20 2.995
Expected Medicaid Reimbursement per Encounter $ 289.74
Expected Medicare Reimbursement per Encounter $ 194.52
Expected Private Insurance Reimbursement per Encounter $ 204.82
Expected Self Pay Reimbursement per Encounter $ 44.15
Pavor Mix-Medical I Actual J 1+1-Actual I 100.00%
Payor Mix-Medicaid 11.00% 0.00% 11.00%
Payor Mix-Medicare 20.00% 0.00% 20.00%
Payor Mix-Private Ins 52.00% 0.00% 52.00%
Payor Mix-(self pay)slide 17.00% 0.00% 17.00%
1.00
Encounters Patients
#by Payor Mix-Combined 6,590 2,996
Payor Mix-Medicaid 725 330
Payor Mix-Medicare 1,318 599
Payor Mix-Private Ins 3,427 1,558
Payor Mix-(self pay)slide 1,120 509
( 2
Sponsored by: Hunt
CITY OF SEWARD,ALASKA
RESOLUTION 2015-080
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, AUTHORIZING SUBMISSION OF A SERVICE AREA
COMPETITION GRANT APPLICATION ON BEHALF OF THE CITY OF
SEWARD AND THE SEWARD COMMUNITY HEALTH CENTER, FOR
THE PURPOSE OF CONTINUING OPERATIONS AS A FEDERALLY
QUALIFIED HEALTH CENTER
WHEREAS,the Seward City Council enacted Ordinance 2010-008 on December 13,2010,
establishing the Seward Community Health Center(SCHC),as subsequently amended by Ordinance
2013-013 on December 16, 2013; and
WHEREAS,the City of Seward("City")and the Seward Community Health Center 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,as required by the Health Resources and Services Administration,the federal sponsoring
agency for Section 330 funding; and
WHEREAS,as co-applicants for Section 330 funding under the public entity model,both the
Governing Board of SCHC and the Seward City Council have shared authority which requires joint
approval to submit grant applications on behalf of the health center; and
WHEREAS,the parties desire to continue operations of a federally qualified health center
and as such,must submit a Service Area Competition grant application no later than September 15,
2015, in order to qualify for continued Section 330 federal funding.
NOW,THEREFORE,BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD,ALASKA that:
Section 1.The Seward City Council hereby expresses their authorization to submit a Service
Area Competition Grant Application for the Seward Community Health Center for the three-year
grant project period beginning February 1, 2016 through January 31, 2019.
Section 2. This resolution shall take effect immediately upon its adoption.
PASSED AND APPROVED by the City Council of the City of Seward,Alaska,this 2nd day
of September, 2015.
l -5
CITY OF SEWARD,ALASKA
RESOLUTION 2015-080
THE CITY OF SEWARD, ALASKA
Jean Bardarson, Mayor
AYES:
NOES:
ABSENT:
ABSTAIN:
ATTEST:
Johanna Kinney, CMC
City Clerk
(City Seal)
Agenda Statement
of stk,
Meeting Date: August 31, 2015 e Y o i` 0
To: City Council
gtASr�
Through: Jim Hunt, City Manager
From: Kristin Erchinger, Finance Director 01 _
Agenda Item: Co-Applicant Authorization to Submit Service Area Competition Application
for 2016-2019 for Seward Community Health Center
BACKGROUND & JUSTIFICATION:
The City of Seward and the Seward Community Health Center(SCHC)are co-applicants for Section
330 federal funding to operate a federally qualified health center(FQHC) 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, requiring the
Governing Board of the CHC approve Section 330 and related grant applications'.
Every three years,Section 330 grantees are required to re-apply for FQHC funding through a process
known as a Service Area Competition (SAC). This competing continuation application requires
much the same rigorous research and documentation as the original New Access Point application,
and must be submitted no later than September 15, 2015. The three year grant award period or
"project period"will be for the period February 1,2016 through January 31,2019. During the grant
application period, other applicants could technically apply for the grant for this service area,
although the chances of another entity receiving funding is slim so long as HRSA deems the SCHC
as doing a reasonably good job. We have no reason to expect other applicants will submit competing
applications for this service area.
As co-applicants for Section 330 HRSA funding, submission of grant applications is considered a
"shared authority"2 requiring approval by both the City and the SCHC Governing Board. The
Governing Board of SCHC met on August 27, 2015 and approved a recommendation to submit a
Service Area Competition Application for 2016-2019 for Seward Community Health Center. The
Coordinating Committee of the CHC--comprised of one member each of the Governing Board,the
City Council,the Health Center executive director,and the City Manager or his designee--has met
and also recommends submission of the SAC Application.
INTENT:
Fulfill the City's obligation as co-applicant Section 330 grantee, to approve submission of CHC
grant applications, including the Service Area Competition application.
1 See Co-Applicant Agreement §3.2.6.
2 See HRSA Policy Information Notice 2014-01: Health Center Program Governance.
CONSISTENCY CHECKLIST: Yes No N/A
l Comprehensive Plan (document source here): "Effective, accessible, X
affordable healthcare", p. 12.
2 Strategic Plan (document source here): "Maintain and enhance medical X
services",p. 18
3 Other (list): Co-Applicant Agreement dated 2/20/14; HRSA PIN 2014- X
01.
FISCAL NOTE:
The cost of compiling and submitting the Service Area Competition application will be borne by the
SCHC and will not result in additional costs to the City.
Approved by Finance Department: 4 2____tddne
ATTORNEY REVIEW: Yes No X
RECOMMENDATION: /4J ZO i s'_ 0 g 0
Seward City Council, as co-applicant for Section 330 federal grant funding, authorize submission
of a Service Area Competition application for the Seward Community Health Center.
I '
CO-APPLICANT AGREEMENT
BETWEEN
SEWARD COMMUNITY HEALTH CENTER, INC.,and
THE CITY OF SEWARD,ALASKA
FOR THE MUTUAL OPERATION OF A
FEDERALLY QUALIFIED HEALTH CENTER
IN ACCORDANCE WITH SECTION 330 OF THE PUBLIC
HEALTH SERVICE ACT, 42 U.S.C.§254b
SECTION 1.RECITALS.
1.1. This Co-Applicant Agreement (the "Agreement") is for the purpose of maintaining a co-
applicant relationship for the mutual operation of a federally qualified health center in
accordance with Section 330 of the Public Health Service Act,42 U.S.C. §254b ("Section
330").
1.2. The facilities and operations that are supported by Bureau of Primary Health Care funds
and are operated by the City of Seward, Alaska and the co-applicant Governing Board
under the name of"Seward Community Health Center"comprise the"Health Center" for
purposes of this Agreement.
1.3. Seward Community Health Center, Inc., the Health Center's governing board (the
"Governing Board") is a separate, non-profit corporation which meets the requirements
of Section 330 and is the Co-Applicant board providing the required community-based
governance for the Health Center.
1.4. The City of Seward,Alaska("City") is the Section 330 grantee, a local government entity
governed by the Seward City Council ("City Council") and is a home rule City of the
State of Alaska providing general government services for the City, including
management of public health facilities,per Chapter 16 of the Seward City Charter.
1.5. The Governing Board and City have been awarded a New Access Point Grant as a
Federally Qualified Health Center in accordance with a Notice of Award issued by the
United States Department of Health & Social Services, Health Resources and Services
Administration, establishing a project period of November 1, 2013 through January 31,
2016.
1.6. The Health Center's Governing Board and the City (the "Parties") enter into this
Agreement is order to: advance the Health Center's mission to provide accessible primary
health care to the medically underserved population in the region through a partnership of
community resources; to preserve the local partnership which founded the Health Center;
and to set forth their respective roles and responsibilities to govern and operate the Health
Center in accordance with applicable law and policies
1.7. The Parties mutually agree that the Public Entity Model (which establishes the Co-
Applicant partnership between the City and the Governing Board) is deemed by the
Co-Applicant Agreement-Page 1
I 'T
Parties to be the operating model which best accomplishes the following mutually desired
goals:
1.7.1. Requires cooperation rather than competition among the community's healthcare
providers, creating partnerships to drive a more efficient healthcare delivery
system and strengthen safety net programs;
1.7.2. Provides City financial and administrative support to build a strong foundation for
the newly-formed community health center;
1.7.3. Provides City financial oversight of funding that flows from the City to the health
center, including the Section 330 federal grant funding;
1.7.4. Provides the City with a means to ensure that the Governing Board operates the
Health Center consistent with the requirements of Section 330 and the overall best
interests of the community;
1.7.5. Restricts the City's role in the operation and management of the Health Center to
the highest levels necessary to provide legally required and appropriate oversight,
without involvement in daily operations or management of the Health Center.
Therefore,the Parties mutually agree to the following:
SECTION 2.DEFINITIONS.
2.1. "Agreement"means this Co-Applicant Agreement.
2.2. "City Council"means the Seward,Alaska City Council.
2.3. "Council Members" means the City of Seward,Alaska City Council Members
2.4. "Coordinating Committee" means a committee composed of one member each of the
Governing Board; the City Council; the Health Center Executive Director; and the City
Manager, or their respective designees.
2.5. "City" means the political subdivision of the State of Alaska incorporated as the City of
Seward,Alaska.
2.6. "DHHS" means the United States Department of Health and Human Services.
2.7. "FTCA"means the Federal Tort Claims Act.
2.8. "Governing Board" means Seward Community Health Center, Inc., an Alaska non-profit
organization that is the co-applicant governing board providing the community-based
governance for the Health Center in accordance with the requirements of Section 330.
2.9. "Health Center" means the facilities and operations that are supported by Bureau of
Primary Health Care funds and are operated by the Co-applicant Governing Board under
the public name"Seward Community Health Center."
Co-Applicant Agreement-Page 2
2.10. "HRSA"means the federal Health Resources and Services Administration.
2.11. "Parties"means Governing Board and the City.
2.12. "Public Entity Model" refers to a partnership between a public entity and a co-applicant,
where the public entity is the licensed provider of services and receives the Section 330
grant from HRSA, and collectively, the two entities meet all other Section 330
requirements and are referred to as the"health center."
2.13. "Section 330" means the Section 330 of the Public Health Service Act,42 U.S.C. § 254b.
SECTION 3. GOVERNING BOARD: ROLES AND RESPONSIBILITIES
3.1. Composition. The Governing Board shall comply with the composition and selection
requirements of Section 330 and implementing regulations as set forth in the Governing
Board Bylaws.
3.2. The Governing Board shall exercise the following authorities and responsibilities of a co-
applicant set forth in Section 330 and implementing regulations and policies.
3.2.1. The Governing Board shall select the services to be provided and adopt health
care policies including the scope and availability of services to be provided, the
location and hours of operation and quality-of-care audit procedures.
3.2.2. The Governing Board shall adopt a policy for eligibility for services, including
criteria for a schedule of discounts on charges for services provided to uninsured
and underinsured patients with annual incomes at or below 200% of the federal
poverty guidelines, with nominal fees for patients with income less than or equal
to 100%of the federal poverty guidelines.
3.2.3. The Governing Board shall evaluate Health Center activities including service
utilization patterns, productivity, patient satisfaction, achievement of program
objectives, and development of a process for hearing and resolving patient
complaints.
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 under the Governing Board's direction by the Health
Center's management team and the Finance Committee of the Governing Board.
3.2.5. The Governing Board shall submit an annual budget for 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 1 of each year, for the
following year. If the Board unreasonably fails to approve an annual budget, the
City may still submit the annual funding request under Section 330 of the Federal
Public Health Service Act. No budget shall become effective without City
Council approval.
Co-Applicant Agreement-Page 3
•
3.2.6. The Governing Board shall approve Section 330 and related grant applications.
3.2.7. The Governing Board shall have the sole authority to select, evaluate (at least
annually) and dismiss the Health Center's Executive Director.
3.2.8. The Governing Board shall assure that the Health Center is operated in
compliance with all applicable Federal, State and local laws and regulations.
3.2.9. The Governing Board shall evaluate the Health Center's achievements at least
annually, and shall use the knowledge gained thereby to revise the Health
Center's goals,objectives, plan and budget as necessary and appropriate.
3.2.10 The Governing Board shall have other authorities and responsibilities which are
required by Section 330.
3.3. Executive Director. The Executive Director shall be the chief executive officer of the
Health Center and shall be subject to the direction and supervision of the Governing
Board.
3.3.1. The Executive Director shall have responsibility for the management,supervision,
and direction of the Health Center's affairs in furthering policies, procedures and
programs established by the Governing Board.
3.3.2 The Executive Director shall have the authority to negotiate, execute and
administer all contracts for goods and services required for the Health Center. All
major purchases (defined as a single item exceeding $50,000) shall be made in
accordance with competitive procurement Ordinance and purchasing policies of
the City except governing board approval would replace City Council approval.
3.3.3. The Executive Director shall assure that the Health Center becomes and remains
eligible for Federal Tort Claims Act("FTCA")coverage.
3.3.4. The Executive Director shall coordinate with the City Manager or the manager's
designee on administrative actions pursuant to applicable City policies (i.e.
purchasing policies,grant reporting requirements).
3.3.5. The Executive Director shall bring any and all new federal guidance pertaining to
this Agreement to the attention of the Parties.
3.3.6. The Executive Director of the Health Center shall ensure that the Health Center
maintains all licenses, permits, certifications and approvals necessary and
appropriate for the operation of the Health Center and ensure that all employees
who work at or for the Health Center apply for and maintain all professional
licenses and certifications necessary and appropriate.
3.4. The Health Center will work closely and cooperatively with the City as co-applicants of
Section 330 federal grant funding. The City Council and the Governing Board have
Co-Applicant Agreement-Page 4
agreed that it is mutually beneficial for the employees of the Health Center to be deemed
to be City employees for a limited period of time. Therefore, the issue of employment
will be reconsidered by the parties no later than three years from the effective date of this
Agreement, and the following shall apply:
3.4.1. To the extent the Health Center requests administrative assistance from the City
and such is approved by Resolution of the City Council, the Health Center shall
comply with applicable administrative, fiscal, risk management and human
resource policies of the City. Pursuant to City fiscal policies, the Governing
Board shall be responsible for maintaining a balanced budget.
3.4.2. For a period of no longer than three years, Health Center staff, including the
Executive Director, shall be City employees subject solely to the Personnel
Policies of the Seward Community Health Center, as approved by the Governing
Board. The Health Center is fully and solely responsible for all aspects of
employment, including payroll administration, hiring, training, supervision,
discipline, grievances, and termination, in accordance with the Personnel Policies
adopted by the Governing Board.
3.4.3. The Health Center may adopt provisions of the City of Seward's personnel
ordinances as components of its employment policies and procedures, subject to
approval of the Governing Board.
3.4.4. The Health Center will maintain health insurance, liability insurance and workers'
compensation insurance coverage for so long as health center employees remain
City employees.
3.4.5. For a period of no longer than three years, Health Center staff may be eligible to
participate in City employee benefit plans authorized by the Governing Board,
with the exception that they are expressly prohibited from participating in the
Public Employees Retirement System.
3.4.6. For a period of no longer than three years, Health Center Staff are expressly
considered to be City employees for the purpose of participating in health
insurance coverage and retirement plans other than the Public Employees
Retirement System, although the Health Center may also pursue an alternate
retirement defined contribution plan, if necessary.
3.4.7. The Governing Board of the Health Center shall have exclusive responsibility for
hiring, evaluating, managing,and terminating the Executive Director.
3.4.8. The Executive Director of the Health Center shall be appointed by the Governing
Board and shall serve at the sole pleasure of the Governing Board.
3.4.9. All employees of the Health Center, including those serving under individual
employment contracts (e.g. physicians) shall be appointed by the Executive
Co-Applicant Agreement-Page 5
2I
Director of the Health Center and shall serve at the pleasure of the Executive
Director. Health Center employees have all the rights afforded them under the
Seward Community Health Center Personnel Policies, as approved by the
Governing Board, and as amended from time to time.
SECTION 4.THE CITY AND CITY COUNCIL: ROLES AND RESPONSIBILITIES.
4.1. Retention of Authorities. The City Council and the City Manager shall retain all
authority not delegated to the Governing Board by federal law or through the terms of
this Agreement.
4.2. City Administrative Policies and Resources.
4.2.1. The City may provide general administrative services to the Health Center, such
as accounting services, risk management services, personnel assistance, etc.,
subject to approval by the Seward City Council by Resolution
4.2.2. The City shall provide, without limitation, fiscal management and oversight of
grant and local funds passed through the City of Seward, in accordance with
applicable law and City policies.
4.2.3. The City will treat the Health Center as a separate accounting fund of the City
(the "Community Health Center Fund") for purposes of accounting for and
segregating the Health Center's funds. The City will deposit money from the
City's General Fund into the Health Center Fund annually, in amounts approved
by the City and consistent with the annual operating and capital budgets approved
by the City and the Governing Board. The Community Health Center Fund will
also include and account for the federal grant funds that the City receives as the
Section 330 grantee.
4.2.4. The City Council shall be responsible for adopting the Health Center's annual
operating and capital budgets as finally approved by the Governing Board; 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 Council
in accordance with Seward City Code 2.40.030(a).
4.2.5. The City may provide human resource services to the Health Center, including
advertising, compiling applications, notifying applicants as requested by the
Executive Director, drug and background tests, filing applications, etc. if
approved by the City Council by Resolution.
4.2.6. The City may provide risk management oversight and services, and insurance for
the Health Center, the Health Center's employees and the Governing Board to
Co-Applicant Agreement-Page 6
2Z-
cover liabilities for each of them not otherwise covered or preempted by the
FTCA.
4.2.7. The City may provide legal consultation to the Health Center and the Governing
Board,but the Governing Board shall be free to retain separate counsel.
4.2.8. The Health Center, out of its Community Health Center Fund, shall pay for or
reimburse the City for the services and the insurance coverage that the City may
provide to the Health Center under this Agreement, including general
administrative services, human resource services, accounting services and legal
services, to the extent that cash is available for this repayment. The amount to be
paid or reimbursed by the Health Center shall constitute the Heath Center's pro-
rata share of the cost of such services, all in accordance with the annual budgets
for the Health Center that are approved by the City and the Governing Board.
SECTION 5. PARTIES' AGREEMENT TO PARTICIPATE IN COORDINATING
COMMITTEE.
5.1. For purposes of implementing, amending, or renewing this Agreement, the Parties 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 their respective designees.
5.2. Meetings may be called by any one member of the Coordinating Committee and may be
held telephonically or electronically.
SECTION 6.TERM OF AGREEMENT.
6.1. The Agreement shall remain in effect during the project period of each Section 330 grant
award and shall remain in effect until terminated in accordance with the terms of Section
7.
6.2. Subject to any Federal and/or state regulatory approval which might be required to
terminate the operation of the Health Center, nothing in this Agreement is intended to
require,nor should be construed to require,that the Health Center remain in operation,or
that the City apply for any grant funding,including continued Section 330 funding for the
Health Center.
SECTION 7. TERMINATION OF AGREEMENT.
7.1. Immediate Termination. This Agreement shall terminate immediately upon the effective
date of any termination of City's Section 330 grant (without renewal), or upon the loss of
any license, permit or other authorization required by law or regulation for operation of
the Health Center.
7.2. For Cause Termination. Subject to Section 7.5, any of the Parties may terminate this
Agreement for cause in the event that another Party fails to meet its material obligations
Co-Applicant Agreement-Page 7
23
under this Agreement. Such termination shall require ninety days' prior written notice of
intent to terminate, during which period the Party that has failed to meet its material
obligations may attempt to cure such failure. If the material breach is cured within the
ninety day period, termination shall not occur. If the Parties do not agree that a breach of
a material obligation has occurred or that such a breach has been satisfactorily cured, the
Parties shall submit their claims to a mutually-approved independent mediator, as set
forth in 7.4,who shall attempt to assist the Parties in resolving their disagreement.
7.3. Termination for Mutual Convenience or Without Cause. This Agreement may be
terminated upon the written agreement of both Parties, subject to Section 7.5. In
addition,any of the Parties may terminate this Agreement without cause upon giving one
hundred and eighty(180) days' prior written notice to the other Party.
7.4. In the event either Party gives notice of intent to terminate this Agreement and the other
Party does not concur, the Parties shall submit to a review by a mediator to determine if
issues leading to termination can be resolved. The mediator shall be chosen by a process
in which all Parties first attempt to concur in the selection. In the event concurrence
cannot be reached, the City Human Resources Officer shall prepare a list of five
independent mediators and each of the Parties shall strike one name until one remains
who shall serve as mediator.
7.5. Termination Contingent upon HRSA Approval. Termination under Sections 7.2 or 7.3
shall not become effective unless and until HRSA issues its written approval of such
termination.
SECTION 8.NOTICES.
All notices permitted or required by this Agreement shall be deemed given when in
writing and delivered personally or deposited in the United States Mail, first class postage
prepaid, Certified and Return Receipt Requested, addressed to the other Party at the
address set forth below,or such other address as the Party may designate in writing.
For Governing Board:
Chairperson
and
Executive Director
Seward Community Health Center,Inc.
PO Box 2895
417 1s` Avenue
Seward, AK 99664, and
For City:
City Manager
PO Box 167
410 Adams Street
Co-Applicant Agreement-Page 8
2 L
Seward,AK 99664
SECTION 9. ASSIGNMENT.
This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto
and their respective transferees, successors and assigns, provided that neither Party shall
have the right to assign, delegate or transfer this Agreement, or its rights and obligations
hereunder,without the prior written consent of the other Parties.
SECTION 10.AMENDMENTS TO COMPLY WITH LAW.
10.1. In the event that any one or more provisions of this Agreement are deemed null, void,
illegal or unenforceable,or should any part of this Agreement cause the Governing Board
or the City (as co-applicants)not to comply with Section 330,the Parties agree to attempt
to amend this Agreement as reasonably necessary to achieve legal compliance.
10.2. In the event that no such amendments or agreements for amendments can reasonably be
made, this Agreement shall immediately terminate.
SECTION 11.ENTIRE AGREEMENT; AMENDMENTS.
11.1. This Agreement, City Ordinance 2013-013,the New Access Point Grant Application,and
the New Access Point Grant Award issued by HRSA, and the provisions of the Health
Information Portability and Protection Act (HIPPA) respecting the confidentiality of
patient records, constitutes the entire agreement between the Parties and supersedes all
prior written and oral agreements among the Parties relating to the subject matter hereof.
No statements, promises or inducement made by any party or by agents of any of the
parties which are not contained in this Agreement shall be valid or binding.
11.2. This Agreement shall not be enlarged, modified or otherwise altered without the written
agreement of all Parties. The Parties may adopt, from time to time, supplemental or
additional agreements which enlarge,modify or otherwise alter this agreement.
Being the persons duly authorized to sign this Agreement and thereby bind the above-named
Parties,we do hereby affix our signatures on this,the 20 day of `',2014.
SEWARD COMMUNITY HEALTH CENTER, INC. (GOVERNING BOARD)
By: Patricia Beals
Its: Chairperson
Co-Applicant Agreement-Page 9
2_5
CITY OF SEWARD
By: James H �t
it . City Manager
Attest:
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Joh: a Kinney, ;777,City Clerk
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Co-Applicant Agreement-Page 10
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Sponsored by: Hunt
Introduction: December 9, 2013
Public Hearing: December 16. 2013
Enactment: December 16. 2013
CITY OF SEWARD, ALASKA
ORDINANCE 2013-013
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA,AUTHORIZING EMPLOYEES OF THE SEWARD COMMUNITY
HEALTH CENTER TO BE NON-PERS EMPLOYEES OF THE CITY FOR A
LIMITED TIME, AND AMENDING PORTIONS OF TITLES 2 AND 3 OF
THE SEWARD CITY CODE
WHEREAS, the City Council approved Resolution 2010-109 on November 8. 2010
directing the City Manager to submit an application for federal funding to establish a Federal
Qualified Community Health Center; and
WHEREAS, the City Council approved Ordinance 2010-008 on December 13. 2010
establishing a Board of Directors of the Seward Community Health Center("CHC"): and
WHEREAS, in accordance with the federal statutes and regulations regarding Federal
Qualified Community Health Centers, the City appointed the initial Board of Directors; and
WHEREAS,the City and the CHC partnered to apply to the federal Health Resources and
Services Administration for grant funding for a Federal Qualified Community Health Center. and
WHEREAS. the grant application was approved and the City is working with CHC to he
able to provide an operating clinic in February 2014; and
WHEREAS, the City Council held a work session November 25. 2013 to discuss whether
the clinic employees should be City employees, under what terms, and for how long: and
WHEREAS, the City Council finds that it is in the best interests of the City of Seward to
temporarily employ CHC staff so that employees can obtain City benefits and the CHC can adopt
certain of the City's employment procedures.allowing the CHC Board to focus on other operational
matters during the initial operating period.
NOW THEREFORE,THE CITY COUNCIL OF THE CITY OF SEWARD,ALASKA.
HEREBY ORDAINS that:
Section 1. Chapter 2.40 ESTABLISHMENT OF SEWARD COMMUNITY HEALTH
CENTER BOARD of the code of the City of Seward,Alaska is hereby amended to read as follows:
L.
zr
CITY OF SEWARD, ALASKA
ORDINANCE 2013-013
Page 2 of 6 j
Strikeout = Delete Bold =New
2.40.010 Purpose. It is the purpose of this chapter to authorize and-appointtt al the
bBoard ofdDirectors for the Seward Community Health Center,an independent non-profit entity,
to operate a community health center in Seward. The city and the Board intends to work
cooperatively together with-sueh-entity to improve access to primary health care in the community,
pursuant to Section 330 of the Public Health Service Act (42 U.S.C. § 254b).
2.40.020 SCHC Board.
A. There is established the Seward Community Health Center ("SCHC") Board of
Directors ("Board"),, serving as the Co-applicant Board providing the required community-
based governance for the community health center. • •-' •
- • - .. ..
B. The Board shall operate the SCHC consistent with the requirements of federally
qualified health centers under Section 330 of the Public Health Service Act(42 U.S.C.§254b),
in the best interests of the community, this chapter 2.40 of the Seward City Code, and in
accordance with its own bylaws.
r - . •. . . .•.• .... •• •. - -- - .. - .. - .. e' --•
rwedeeesseFls_terim
.- . . .
. • . . •.. : . :
CITY OF SEWARD, ALASKA
ORDINANCE 2013-013
Page 3 of 6
L.
3. Is-convicted-of a-felony offense, or - . • - - • . • . •:
2.40.030 Powers and Duties of the Board.
A. The Board shall create operate SCHC consistent with the requirements of community
health centers under Section 330 of the Public Health Service Act (42 U.S.C. § 254b). and shall
appoint an Executive Director for SCHC, who shall serve at the pleasure of the Board. The
. .• . . !
The Board shall submit an annual budget for the health center to the council for
approval,as a co-applicant requirement of Section 330. The Board shall submit the budget no
later than October 1 of each year,for the following fiscal year. If the Board unreasonably fails
to approve an annual budget, the City may still submit the annual funding request under
Section 330 of the Federal Public Health Service Act. No budget shall become effective without
council approval.
.
( 1. Select the services to be provided
him
3. Hire an Executive Director of the SCIIC.
•
.. • • . • • •
-
council approval. •
C. Board meetings shall be subject-to-the-following:
• . .- • ..
• . _ .
•
CITY OF SEWARD, ALASKA
ORDINANCE 2013-013
Page 4 of 6
.:• :. : „ :: :
:.• : •• ••
• .
• - . .
. •: . • •• • .
queFum-is-present-:
• - . • • .. •, .
• : .. . •- . . -1. - - : : :•
.. . . •• • • : - s. . : .. . - . .. : . . - .
6-. All SCHC Board meetings shall be open to the public.
information.
B. The Board shall provide annually all the SCHC records necessary to assure that the
SCHC operations comply with applicable Federal, State and local laws and regulations.
C. The Board shall enter into a co-applicant agreement with the City of Seward.
2.40.040. City Powers and Duties.
A. The city shall have access to SCHC records necessary to assure that the SCHC
operations comply with applicable Federal, State and local laws and regulations.
. - - . - • . • . . . • . . ! al Re a Se
SCHC.
B. The City shall provide fiscal oversight in accordance with current law and City
policies.
C. The City Council shall be responsible for adopting the community health
center's annual operating and capital budgets as finally approved by the Board; the City
Council may not unilaterally revise a budget approved by the Board or approve an alternate
budget for the community health center without review and final approval by the Board,
which then returns to council as governed in Seward City Code 2.40.030 (a).
30
CITY OF SEWARD, ALASKA
ORDINANCE 2013-013
Page 5 of 6
: :": . . :
. , :
" .•. •: • •._
L
D. If approved by council resolution, the city may provide human resources, risk
management, legal, accounting, and general administrative services to the SCHC.
Section 2. Section 3.01.020 of the Seward City Code is amended to read as follows:
Strikeout = Delete Bold = New
3.01.020. Scope.
A. This title establishes policies and procedures for personnel administration for all
employees of the city except the city manager,the city attorney,the city clerk, the mayor,members
of the city council and members of city boards and commissions. The provisions of this title may
apply to the city manager, the city attorney, or the city clerk only to the extent that they are
incorporated by specific reference in a written employment contract with the city.
B. Where a provision of this title conflicts with a provision of a collective bargaining
agreement covering city employees, the provision of the collective bargaining agreement shall
govern. This title shall govern personnel policies and procedures for city employees covered by a
collective bargaining agreement to the extent that its provisions do not conflict with provisions of the
collective bargaining agreement.
C. For purposes of health insurance,and any other aspects of employment agreed
upon in a co-applicant agreement approved by city council, Employees of the Seward
Community Health Center shall be deemed city employees. Such agreement will require the
health center to be fully and solely responsible for all aspects of employment,including payroll
administration, hiring, training, supervision, discipline, grievances, and termination. The
health center may adopt provisions of this title as its employment policies and procedures. The
health clinic will maintain health insurance,liability insurance,and workers'compensation for
so long as health center employees remain City employees. The health center may provide
retirement benefits but health center employees shall not be covered by PERS.
Section 3. This ordinance shall take effect ten days following its enactment.
ENACTED by the City Council of the City of Seward, Alaska. this 16`" day of December.
2013.
L
3 �
CITY OF SEWARD, ALASKA
ORDINANCE 2013-013
Page 6of6 J
THE CITY OF SEWARD, ALASKA
A 20
can Bardarson, Mayor
AYES: Keil, Shafer. Casagranda. Terry, Squires, Butts, Bardarson
NOES: None
ABSENT: None
ABSTAIN: None
ATTEST:
. J
f.canna Kinn MC
ty Clerk
(City Seal)
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COUNCIL AGENDA STATEMENT
Meeting Date: December 9, 2013 /4� �qa
From: James Hunt,City Manager
Y �
Agenda Item: Community Health Center Employees to be Employees of 4SA,y,
the City of Seward
BACKGROUND&JUSTIFICATION:
The City of Seward and the Seward Community Health Center (SCHC) Board are co-applicants in the
newly funded Section 330 federally qualified health center (FQHC) in Seward. As the entities work
together to improve access to primary healthcare in Seward, it appears that City employment of the
SCHC employees will help to strengthen the safety net of the newly established clinic, improving the
opportunity for the clinic to recruit and retain qualified employees, and giving the clinic a strong
foundation on which to begin operation. In particular, employees will have access to City health
insurance and other benefits, which are considered to be attractive benefits for prospective clinic
employees. SCHC employees are expressly not to be included in the Public Employees Retirement
System. The City may offer additional support to the SCHC, if approved by Council resolution, in the
form of human resource assistance, processing payroll and accounts payables, general administrative and
legal support,and other requested support as may be requested by SCHC, and as the City staff is able to
provide.
The Seward City Council authorized the creation of the Seward Community Health Center (SCHC) and
Board (Board) when it enacted Ordinance 2010-008 in December, 2010, formalizing the powers and
duties of the Board. Since that time, the SCHC has become a 501(C)(3) non-profit corporation, now
subject to its own bylaws and federal requirements of Section 330, so many of the provisions of the
Ordinance which established the SCHC Board are now in conflict with the bylaws of the organization
and the requirements of federal regulations. For that reason, it is important to update the Ordinance to
reflect the new legal status of the SCHC, as well as to address the status of the employees of the clinic as
City employees.
The SCHC Board has requested that the City Council employ the clinic employees for the initial period
of start-up,and that the issue of employment be revisited within the next few years, to determine whether
it is possible for the SCHC clinic to stand-alone and employ providers and employees on its own. For
that reason, this Ordinance authorizes the employees of the clinic to be non-PERS City employees for a
limited period of time, to give the Council and the Board the opportunity to revisit this issue in the future.
INTENT:
The intent of this action is to authorize the employees of the Seward Community Health Center to be
employees of the City for a limited period of time. This issue will be revisited by the City Council and
Seward Community Health Center Board in the future. The employees of the clinic will be entirely
subject to the personnel and employment policies of the SCHC rather than the City's personnel policies,
and the SCHC will be solely responsible for all aspects of employment of SCHC employees, to include
wage and salary structure (pay scale, merit increases, cola, etc.), personnel administration, hiring,
training, supervision, discipline, grievances, termination, etc. The Seward City Council will not have any
involvement in employment matters of the SCHC other than if the Ordinance authorizes Council to
authorize the selection of the executive director by the SCHC Board. Neither will the city manager of the
City have any involvement in employment matters of the SCHC.
# 33
CONSISTENCY CHECKLIST; Yes No N/A
Comprehensive Nan(document source here):p. 12 "We value effective, accessible
1. and affordable healthcare"; "encourage cooperation between all healthcare X
providers";
2. Strategic Plan(document source here): X
3. Other(list): X
ATTORNEY REVIEW: _X____Yes No
FISCAL NOTE:
The personnel costs associated with employees of the Seward Community Health Center will be costs
borne by the Seward Community Health Center. While the City may assist with processing payroll and
payables,all personnel and other costs paid on behalf of the SCHC by the City, will be reimbursed by the
SCHC and are considered costs of the SCHC.
Approved by Finance Department:
RECOMMENDATION:Ova i n0.41 a 2Ot -O i 3
Council approve authorizing the employees of the Seward Community Health Center
to be employees of the City of Seward for a limited time.
3 "{
September 2015 Su Mo September 2015 October 2015
Tu We Th Fr Sa Su Mo Tu i Th Fr Sa 1 3 4 5 6 8 10 11 12 13 15 117 18 19 20 22 224 25 26 27 29 30 31
Monday Tuesday Wednesday Thursday Friday
Aug 31 Sep 1 2 3 4
6:00pm 7:00pm P&Z WS;Flood 12:00pm 2:00pm PACAB Mtg
N 7:00pm 10:30pm P&Z Mtg 5:30pm 8:30pm Special Meetirn
m
o
7 8 9 10 11
HOLIDAY;Labor Day
0
a)
14 15 16 17 18
6:00pm 7:00pm Work Session;( 6:00pm 9:30pm P&Z WS 12:00pm 2:00pm PACAB Work So
7:00pm 10:30pm CC Mtg
a
a)
Vt
21 22 23 24 25
Vt
N
r-1
N
Q.
a)
N
28 29 30 Oct 1 2
7:00pm 10:30pm CC Mtg
N
V
0
CO
N
O-
W
N
Nand Richey 1 8/31/2015 1:11 PM
October 2 015 Su Mo T October 2015 November 2015
u We Th Fr Sa Su Mo Tu We Th Fr Sa
1 2 3 1 2 3 4 5 6 7
4 5 6 7 8 9 10 8 9 10 11 12 13 14
11 12 13 14 15 16 17 15 16 17 18 19 20 21
18 19 20 21 22 23 24 22 23 24 25 26 27 28
25 26 27 28 29 30 31 29 30
Monday Tuesday Wednesday Thursday Friday
Sep 28 29 30 Oct 1 2
N
v
0
co
N
L1
v
N
5 6 7 8 9
ELECTION DAY ; 12:00pm 2:00pm PACAB Mtg 1:00pm 5:00pm Canvass Board; 6:00pm 9:00pm CC WS-Budge
rn 7:00pm 10:30pm P&Z Mtg 6:00pm 9:00pm CC WS-Budge 6:00pm 9:00pm CC WS-Budge
u,
V
0
12 13 14 15 16
7:00pm 10:30pm CC Mtg
Lo
N
V
0
19 20 21 22 23
HOLIDAY;Alaska Day 6:00pm 9:30pm P&Z WS 12:00pm 2:00pm PACAB Work St
m
N
a,
N
V
0
26 27 28 29 30
7:00pm 10:30pm CC Mtg
0
m
N
v
0
Nanci Richey 2 8/31/2015 1:11 PM