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Sponsored by: Oates <br /> CITY OF SEWARD, ALASKA <br /> RESOLUTION 2010 -018 <br /> A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD, <br /> ALASKA, AUTHORIZING A MEMORANDUM OF UNDERSTANDING <br /> WITH PROVIDENCE HEALTH & SERVICES TO ACCOUNT FOR THE <br /> TRANSFER OF FUNDS NECESSARY TO FACILITATE DEBT SERVICE <br /> PAYMENTS ASSOCIATED WITH SEWARD MOUNTAIN HAVEN <br /> WHEREAS, the Seward City Council passed Resolution 2006 -28 on March 13, 2006 and <br /> Resolution 2007 -50 on May 14, 2007, authorizing the issuance of $27 million in revenue bonds for <br /> the purpose of financing, designing, constructing and equipping a new long -term care facility in <br /> Seward, known as Seward Mountain Haven ( "SMH "); and <br /> WHEREAS, the primary mechanism for repayment of these bonds is the capital cost <br /> component of patient charges, including Medicare revenues, generated from Seward Mountain <br /> Haven, which began operations on October 1, 2009; and <br /> WHEREAS, the City will utilize 100% of the capital cost component of patient revenues for <br /> the sole purpose of repaying bond debt and capital costs of Seward Mountain Haven; and <br /> WHEREAS, the City and Providence Health and Services are entering into a Memorandum <br /> of Understanding to ensure that the capital cost - related revenues of Seward Mountain Haven are <br /> transferred to the City to be deposited into the Seward Mountain Haven Debt Service Fund to be <br /> designated solely for the purpose of bond repayment and capital costs. <br /> NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY <br /> OF SEWARD, ALASKA that: <br /> Section 1. The city manager is hereby authorized to sign the Memorandum of Understanding <br /> between the City of Seward and Providence Health & Services, in substantial form as attached <br /> hereto. <br /> Section 2. The City will account for and segregate the revenues associated with the capital <br /> costs of the facility, in the Seward Mountain Haven Debt Service Fund, and will utilize those funds <br /> to pay debt service and capital costs associated with Seward Mountain Haven. <br /> Section 3. This resolution shall take effect immediately upon its adoption. <br /> PASSED AND APPROVED by the City Council of the City of Seward, Alaska, this 22nd day of <br /> February, 2010. <br />