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Home My WebLink AboutRes2015-079 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 2nd day of September, 2015. THE CITY OF SEWARD,ALASKA 4; • can Bardarson, Mayor AYES: Casagranda, Terry, Butts, Squires, Bardarson NOES: None ABSENT: Keil, Darling ABSTAIN: None ATTEST: J o hanna Ki , CMC ity Clerk (City Seal) •**<c, ®F's'EEyr . • K A 0\14*• • w i '•. OF Agenda Statement e,�of sett, q'A Meeting Date: August 31, 2015 .=1:' �. To: City Council Through: Jim Hunt, City Manager From: Kristin Erchinger, Finance Director )jftk 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 ofSection 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 O1,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: Y ./!t4 , ATTORNEY REVIEW: Yes No X DDD RECOMMENDATION: g€0 2.0 l 5 - () 1 9 City Council approve the Section 330 Co-Applicant Seward Community Health Center 2016 Pp tY Budget. 1