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HomeMy WebLinkAboutRes2004-097 I I I Sponsored by: Shealy CITY OF SEWARD, ALASKA RESOLUTION 2004-97 (substitute version) A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, ACCEPTING A DENALI COMMISSION FEDERAL FINANCIAL ASSISTANCE AWARD IN THE AMOUNT OF $1,600,000 FOR THE PURPOSE OF FUNDING PLANNING AND DESIGN FOR THE REPLACEMENT OF THE LONG-TERM CARE FACILITY WHEREAS, in May, 2003 the City of Seward was asked by the State of Alaska to negotiate an arrangement with the privately-owned Wesley Rehabilitation and Care Center and Providence Alaska Medical Center to facilitate co-location of the acute care hospital and the long-term care facility in order to avert closure of the facility by the federal government; and WHEREAS, the City engaged the services of Providence Alaska Medical Center to operate and manage the facility as a co-located entity with Seward's local acute care hospital, resulting in significant cost efficiencies and a positive net income in the first year of operation despite significant costs associated with mitigating serious building deficiencies and start-up costs; and WHEREAS, initial studies indicate that co-location will result in financial sustainabi1ity for both acute care and long-term healthcare in Seward, but the serious nature of the building defects at the current long-term care facility make it necessary to replace the facility in the very near future in order to continue serving the healthcare needs ofthese residents; and WHEREAS, since May, 2003, the City's persistent efforts to seek funding for this project have generated support from the State Department of Health and Social Services and the federal delegation, ultimately resulting in a grant award from the Denali Commission in the amount of $1,600,000 (per their authorizing Resolution 04-02) to fund the initial planning and design of the replacement facility. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF SEWARD, ALASKA, that: Section 1. The City Manager is authorized to accept a federal financial assistance award in the amount of$1,600,000 from the Denali Commission to the Long-Term Care Facility Replacement account no. 670-6700-4680-0100. Section 2. Funds in the amount of $1,600,000 are hereby appropriated for the purpose of planning and design for the long-term care facility to account no. 670-6700-5390, and per the award conditions, the City will not be entitled to recovery of indirect costs for this project. Section 3. This resolution shall take effect immediately upon its adoption. PASSED AND APPROVED by the City Council of the city of Seward, Alaska, this 27th day of September, 2004. THE CITY OF SEWARD ALASKA // tv J1+ I t-t--A Vanta Shafer, Mayor AYES: NOES: ABSENT: ABSTAIN: Dunham, Branson, Va1datta, Clark, Amberg, Anderson None None Shafer :\\""FUIS""/!/~ ~.." _I 0 E;!A" 1",,- ~ ~, ......... "'J<!L\ " $ (}.,"o~?OR.i~.:1() ~ :: ...~C; ~... ~ = :~ -0- OD. : - : S ~. 58: E/1L :0: -- , : .. ............ ... ~ -.. .: ::: -;. ("n" '~-1t, <';l'~", ~ :: ~ r::. -o.!' 11 "\./1 ",,_ ~ ..... .... ,,-t:;1~'''''' ..~ ....",. OF ".\..'(":."j;>' I"CfiiJlilil'!}i.t..,'I ATTEST: COUNCIL AGENDA STATEMENT Meeting Date: September 27, 2004 Through: Phil Shealy, City Manager From: Kristin Erchinger, Finance Director Agenda Item: Acceptance of $1.6 million Denali Commission Award for Long-Term Care Facility Replacement planning and design BACKGROUND & JUSTIFICATION: In 2003 the City of Seward was asked by the State of Alaska to intervene and accept responsibility for operating and managing the privately-owned Wesley Rehabilitation and Care Center, in order to avert closure of the facility by the federal government. The City agreed to accept responsibility for the facility and in May, 2003, entered into a Management and Operating Agreement with Providence Alaska Medical Center to manage the newly co-located hospital and long-term care facility. While the serious condition of the facility was acknowledged by both the City and Providence upon agreeing to operate the long-term care facility, it became immediately clear that the existing facility would require replacement in the very near future in order to continue to serve the healthcare needs of the resident patients. In April, 2004, the Seward City Council approved Resolution 2004-45 appropriating $65,000 to begin the process of planning for the replacement of the long-term care facility. Since May, 2003, City staff and Providence representatives have worked diligently to garner financial support for replacement of this facility. The war in Iraq has made it difficult to compete for federal funding, despite very strong support from our federal delegation, and the serious fiscal problems at the State level makes it impossible for the State Department of Health and Social Services to participate in funding the project at this time. At our urging, in June, 2004 Denali Commission representatives visited the long-term care facility and saw first-hand the serious nature of the building defects plaguing the long-term care facility. That site visit demonstrated the need for immediate replacement of the facility, and highlighted the unique niche that this facility serves within the State, serving patients with multiple medical, mental and/or behavioral diagnoses that other facilities in Alaska are often unable or unwilling to admit. Following that visit, the City of Seward submitted an addendum to our initial Letter of Interest to the Denali Commission imploring the Commission to reconsider funding for this project. In the Financial Assistance Award documents dated September 17, 2004, the Commission has awarded the City $1.6 million to fund planning and design of the replacement facility. This award will fund a project management contract to oversee both the design and the construction contracts, as well as a contract for the firm selected to design the new facility. Denali Commission Award September 27, 2004 Page Two Yes No N/A CONSISTENCY CHECKLIST: 1. Comprehensive Plan X 2. Strategic Plan X 3. Other X FISCAL NOTE: The planning and design of the long-term care facility is to be funded from the federal award, with no matching required by the City. The Denali Commission has stated that it does not intend to assist with financing the construction of this facility, and the City of Seward will be pursuing revenue bonds for construction. Approved by Finance Department RECOMMENDATION: Council approves Resolution 2004-___ authorizing the city manager to accept a federal financial assistance award in the amount of $1.6 million from the Denali Commission, and appropriate the same amount for the planning and design of the long-term care facility replacement.