HomeMy WebLinkAbout07112011 City Council Packet Seward City Council
Agenda Packet
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July 11 2011
City Council Chambers Beg at 7:00 p.m.
963 1965 2005 The City of Seward, Alaska
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* * * * * CITY COUNCIL MEETING AGENDA
All- America City
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} Please silence all cellular phones and pagers during the meeting} fir'
July 11, 2011 7:00 p.m. Council Chambers
1. CALL TO ORDER
Willard E. Dunham 2. PLEDGE OF ALLEGIANCE
Mayor 3. ROLL CALL
Term Expires 2011 4. CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE
ITEMS SCHEDULED FOR PUBLIC HEARING [Those who
Jean Bardarson have signed in will be given the first opportunity to speak. Time is
Vice Mayor limited to 2 minutes per speaker and 30 minutes total time . for this
Term Expires 2012 agenda item.]
Robert Valdatta 5. APPROVAL OF AGENDA AND CONSENT AGENDA [Approval
Council Member of Consent Agenda passes all routine items indicated by asterisk ( *).
Term Expires 2011 Consent Agenda items are not considered separately unless a council
member so requests. In the event of such a request, the item is
Tom Smith returned to the Regular Agenda]
Council Member
Term Expires 2011 6. SPECIAL ORDERS, PRESENTATIONS AND REPORTS
A. Proclamations and Awards
Vanta Shafer
Council Member 1. July is National Recreation and Parks Month Pg. 3
Term Expires 2011
B. Borough Assembly Report
Marianna Keil C. City Manager's Report
Council Member D. Mayor's Report
Term Expires 2012 E. Other Reports and Presentations
Ristine Casagranda
Council Member
Term Expires 2012
Phillip Oates
City Manager
Johanna Kinney
City Clerk
Cheryl Brooking
City Attorney
City of Seward, Alaska Council Agenda
July 11, 2011 Page 1
7. NEW BUSINESS
A. Resolutions
*1. Resolution 2011 -056, Accepting A Grant From The Alaska SeaLife Center In The
Amount Of $4,500 For The Purpose Of Installing A Downtown Seward Humpback Whale
Mural, And Appropriating Funds Pg. 4
2. Resolution 2011 -057, Appropriating $750,000 To Providence Seward Medical And
Care Center For The Purpose Of Covering Costs Associated With Implementation Of An
Electronic Health Records Program And Disputed Reductions In Medicaid Cost
Reimbursements Pg. 6
B. Other New Business Items
*1. Approval of the June 20, 2011 City Council Special Meeting Minutes and the June
27, 2011 City Council Regular Meeting Minutes Pg. 10
2. Water Tower Site Update by Public Works.
3. Discussion on request to purchase the Jesse Lee Home Pg. 24
8. INFORMATIONAL ITEMS AND REPORTS
1. April and 1L1ay Providence Financial Reports Pg. 25
9. COUNCIL COMMENTS
10. CITIZENS' COMMENTS [5 minutes per individual - Each individual has one
opportunity to speak]
11. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS
12. ADJOURNMENT
City of Seward, Alaska Council Agenda
July 1I, 2011 Page 2
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Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -056
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, ACCEPTING A GRANT FROM THE ALASKA SEALIFE
CENTER IN THE AMOUNT OF 54500 FOR THE PURPOSE OF
INSTALLING A DOWNTOWN SEWARD HUMPBACK WHALE MURAL,
AND APPROPRIATING FUNDS
WHEREAS, local artists have approached the City to beautify an area of downtown Seward
with a humpback whale mural that will be seen by thousands of visitors annually; and
WHEREAS, the Alaska Sealife Center has provided 54,500 in funding towards the $5,000
mural project and the City proposes to provide 5500 in materials funding; and
WHEREAS, Seward is mural capital of Alaska; and
WHEREAS, the artists propose to complete this mural project by September 2011.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF SEWARD, ALASKA that:
Section 1. Funding in the amount of 54,500 is hereby accepted from the Alaska Sealife
Center to miscellaneous grant account no. 101 -0000- 4680 -0900, and appropriated to the community
development department other special services account no. 101 -1150 -5190.
Section 2. Matching grant funding in the amount of 5500 will be provided from the
Community Development department's existing budget.
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 11 `'' day of
July, 2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
Council Agenda Statement
Meeting Date: July 11, 2011
To: Phillip Oates, City Manager - { TIt
From: Michelle Weston, Assistant City Manager
' ash
Agenda Item: Humpback Whale Mural Appropriation
BACKGROUND & JUSTIFICATION:
Two local artists recently approached the city with a downtown beautification project. This project consists of
painting a Humpback whale mural on a building facing the Alaska Sealife Center on 4 and Railway in July
2011. The proposed project has a total budget of $5,000, which consists of $500 for painting materials and
$4,500 for labor. The building wall proposed for the mural and land adjacent to the building are privately
owned. The Alaska Sealife Center has granted the city $4,500 for the labor and the City will match these funds
with $500 for the painting materials.
INTENT: To authorize the City Manager to approve the authorization of $5,000 for a downtown Humpback
Whale mural funded by $4,500 from the Alaska Sealife Center and $500 from Community Development
Funds.
CONSISTENCY CHECKLIST: Where applicable, this agenda statement is consistent with the Seward City
Code, Charter, Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures or
Other Plans or Policies:
FISCAL NOTE:
Funding for this project will come from the following: $4,500 from a grant from the Alaska Sealife Center,
and $500 from the community development department's existing budget.
Approved by Finance Department: .3
ATTORNEY REVIEW: Yes No X
RECOMMENDATION:
Recommend approval of Resolution 2011 - appropriating $5,000 for the Humpback Whale mural project
consisting of $4,500 in funding from the Alaska Sealife Center and $500 from Community Development
Funds.
1
Sponsored by: Oates
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -057
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SEWARD,
ALASKA, APPROPRIATING S750,000 TO PROVIDENCE SEWARD
MEDICAL AND CARE CENTER FOR THE PURPOSE OF COVERING
COSTS ASSOCIATED WITH IMPLEMENTATION OF AN ELECTRONIC
HEALTH RECORDS PROGRAM AND DISPUTED REDUCTIONS IN
MEDICAID COST REIMBURSEMENTS
WHEREAS, the City of Seward ("City ") owns the local hospital and long -term care facilities
which are operated on the City's behalf by Providence Health & Services, as Providence Seward
Medical and Care Center ("PSMC"); and
WHEREAS, the Centers for Medicare and Medicaid Services announced an American
Recovery and Reinvestment Act incentive program in July 2010 that provides incentive payments to
critical access hospitals electing to implement certified electronic health record ( "EHR ") technology
aimed at enhancing the ability of health providers to improve health care quality, efficiency, and
patient safety; and
WHEREAS, the cost of the electronic health record systems implemented by PSMC in 2011
was in excess of $300,000 and a portion of this may be eligible for future incentive payment
reimbursement depending on whether PSMC is confirmed to have met the "meaningful use"
requirements as established by the Centers for Medicare and Medicaid; and
WHEREAS, PSMC is experiencing operational shortfalls in both the long -term care facility
and the hospital, with the bulk of the shortfall attributed to lower than needed census at Seward
Mountain Haven, combined with a reduced cost - based reimbursement rate from the State of Alaska
Department of Health & Social Services ( "DHSS ") which amounts to nearly $450,000 year -to -date
in 2011; and
WHEREAS, PSMC has appealed the State - determined reimbursement rates on the basis that
they are inconsistent with prior computation methodologies utilized by DHSS and that this change in
methodology does not appear to be consistent with federal reimbursement requirements and does not
appear to be the result of any change in State law or regulation: and
WHEREAS, if the appeal of reimbursement rates is unsuccessful at the administrative level,
it is highly likely that PSMC will join with other healthcare facilities in the state to take legal action
to oppose what appears to be an arbitrary change in reimbursement methodology, in the hopes of
recovering higher Medicaid reimbursements for our legitimate costs incurred in operating Seward
Mountain Haven; and
WHEREAS, the census at Seward Mountain Haven has fluctuated up to 36 elders since its
opening in October 2009, with a current census of 32 compared with pro forma projections for 2010
b
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -057
of 34.8, which is also having an adverse impact on the financial status of the facility. since
reimbursements are made on a patient day basis; and
WHEREAS, to date the cash shortfall is approximately $750,000 and the contract between
the City and Providence requires that the City cover a cash shortfall in a timely manner; and
WHEREAS, the estimated undesignated fund balance in the General Fund is approximately
$3.5 million prior to this appropriation, and the City's Fund Balance Policy band requires
undesignated fund balance between $2.8 million and $5.7 million, representing between three and
six months operating costs; and
WHEREAS, this appropriation will reduce the undesignated fund balance in the General
Fund to approximately $2.75 million which is slightly below the minimum required threshold
according to the City's Fund Balance Policy; and
WHEREAS, this action will not reduce the $500,000 designated fund balance currently set
aside for the purpose of covering operational shortfalls at PSMC, since it is very likely that until such
time as the reduction in reimbursement rates is rectified, the healthcare system will continue to
experience annual financial losses of this magnitude.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF SEWARD, ALASKA that:
Section 1. The amount of $750,000 is hereby appropriated from undesignated fund balance
account no. 101- 0000 -3050 to Providence Seward Medical and Care Center via account no. 101-
1191 -5610 to be used for operational shortfalls and electronic health records costs.
Section 2. This resolution shall take effect immediately upon adoption.
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 1 1`'' day of
July, 2011.
THE CITY OF SEWARD, ALASKA
Willard E. Dunham, Mayor
Council Agenda Statement
of St s.
Meeting Date: July 11, 2011 ° .�►• o •
v ry 7 %, a-."�`
Through: Phillip Oates, City Manager
From: Kristin Erchinger, Finance Director (.
Agenda Item: Appropriation to cover health facility losses
BACKGROUND & JUSTIFICATION:
The City of Seward owns the local hospital and long -term care facility which are operated by
Providence Health & Services, under management agreement with the City. The City is financially
responsible for the operations of the health facilities.
In 2010, the Centers for Medicare and Medicaid Services announced an American Recovery and
Reinvestment Act incentive program to encourage critical access hospitals to implement certified
electronic health record ( "EHR ") technology aimed at enhancing the ability of health providers to
improve health care quality, efficiency, and patient safety. Providence Seward participated in
that program by implementing a new EHR system which would be compatible with all
Providence facilities in Alaska, at a cost of approximately $300,000. It is expected that much of
this investment in software and hardware may be eligible for reimbursement depending on
whether PSMC is confirmed to have met the "meaningful use" requirements as established by the
Centers for Medicare and Medicaid.
In addition to shortfalls arising from the implementation of a new EHR system, PSMC is
experiencing operational shortfalls in both the long -term care facility and the hospital, with the
bulk of the shortfall attributed to lower than needed census at Seward Mountain Haven,
combined with a reduced cost -based reimbursement rate from the State of Alaska Department of
Health & Social Services ( "DHSS "). These together account for shortfalls of approximately
$450,000 year -to -date in 2011.
PSMC has appealed the State - determined reimbursement rates on the basis that they are
inconsistent with prior computation methodologies utilized by DHSS and that this change in
methodology does not appear to be consistent with federal reimbursement requirements and does
not appear to be the result of any change in State law or regulation. If the appeal is not
successful, PSMC is prepared to enter into a lawsuit with other healthcare facilities to oppose the
change in reimbursement methodology. It is possible that this approach may result in higher
cost -based reimbursements, since those reimbursements are made based on the actual costs
incurred at the facilities.
Shortfalls are also the result of a lower census at Seward Mountain Haven. Census has been as
high as 36 since opening of the facility in October, 2009, but the facility has held off on efforts to
fill the facility in order to address a number of challenges that have arisen from Seward's
implementation of the Green House Model. For example, encouraging elders to become more
mobile has elevated the risks of falls, so care is being taken to address these types of challenges
prior to ramping up the census. The pro forma projections estimated that in 2010 the census
would be 34.8 and the current census stands at 32, although that routinely varies.
CITY OF SEWARD, ALASKA
RESOLUTION 2011 -
The cash shortfall is approximately $750,000 year -to -date and the contract between the City and
Providence requires that the City cover a cash shortfall in a timely manner, so this appropriation is
being made to satisfy those contractual requirements.
The estimated undesignated fund balance in the General Fund is approximately $3.5 million prior to
this appropriation, and the City's Fund Balance Policy band requires undesignated fund balance
between $2.8 million and $5.7 million, representing between three and six months' operating costs.
This appropriation will reduce the undesignated fund balance in the General Fund to approximately
$2.75 million which is slightly below the minimum required threshold according to the City's Fund
Balance Policy. This action will not reduce the $500,000 designated fund balance currently set aside
for the purpose of covering operational shortfalls at PSMC, since it is very likely that until such time
as the reduction in reimbursement rates is rectified, the healthcare system will continue to experience
annual financial losses of this magnitude
CONSISTENCY CHECKLIST:
Where applicable, this resolution /ordinance is consistent with the Seward City Code, Charter,
Comprehensive Plans, Land Use Plans, Strategic Plan and City Council Rules of Procedures.
Other:
FISCAL NOTE:
This appropriation reduces the City's undesignated fund balance by $750,000 to be slightly below
the City's Fund Balance Policy of betwe n three to six months' of operating reserves in undesignated
fund balance. Finance Department:
RECOMMENDATION: d0"1
City Council approve Resolution 2011- , authorizing the appropriation of $750,000 to cover hospital
operating shortfalls and electronic health records implementation.
- � rne i3 eew ° No
City Council 14inutes
City ofSeward, Alaska Volume 38. Page
June 20, 20i 1
CALL TO ORDER
The June 20, 2011 Special Meeting of the Seward City Council was called to order at 6:00
p.m. by Mayor Willard E. Dunham.
OPENING CEREMONY
Police Lieutenant Butch Tiner led the pledge of allegiance to the flag.
ROLL CALL
There were present:
Willard E. Dunham, presiding; and Jean Bardarson
Marianna Keil Vanta Shafer
Tom Smith Bob Valdatta
*Ristine Casagranda — arrived at 6:07 p.m.
comprising a quorum of the Council; and
Phillip Oates. City Manager
Johanna Kinney, City Clerk
Absent — None
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Keith Campbell urged council to approve this contract with PCL construction tonight. It
was a good plan; the public was enthused about it The committee had raised $30,000 more since the
groundbreaking ceremony. The committee urged council to approve this and move forward with the
project.
Mary Hart, representing GCI, spoke on the new information provided this morning by
Electric Utility Manager John Foutz for City Council. She believed it was another attempt to divert
this project. Utility departments should not be able to unilaterally impose these additional standards.
The proposed project followed the national standards and therefore the joint use agreement that was
approved by Resolution 1987 -030. Hart stated construction season was slipping away.
APPROVAL OF AGENDA
NEW BUSINESS
Resolution 2011 -051, Authorizing Acceptance Of The Guaranteed Maximum Price Proposal
From PCL Construction To Construct The Seward Museum /Library, Appropriating
S7,399,999 To Fund The Project, Issuance Of The Notice To Proceed And Approval Of
t
City of Seward, Alaska
Jame 20, 2011 City Council .1
t'ohune 38. Page
Amendment No. 1 To The Construction Phase Work Contract.
Motion (Keil /Smith) Approve Resolution 2011 -051
Oates stated the project manager and architect were in attendance tonight if council had
further questions. Oates gave a summary of the resolution before them and explained this amended
the contract to phase the project out and explained the two "phases" proposed. Right now, the city
had approximately $3.4 million available to draw from. Some of the other grants would flow to
council over time. The guaranteed maximum price (GMP) was determined and the contractor had
ample opportunity to work with the contracts and design specifications. Oates stated he had a high
degree of confidence this GMP would hold at $7,399,999. Certain aspects, like making changes to
the building or unforeseen things like ground contamination could change the figure. but that aside
they were confident this number would hold.
Valdatta asked what the bond bank was going to say when they saw all the deletions to the
original building plan, Oates stated the status of the funding and revenue sources would have an
impact, but didn't think the deletions would make a difference. The deletions were not shaky and
had not compromised the project. Contingencies were still funded in case the city needed to put
some of the deletions back in Many different alternatives were being examined.
Bardarson clarified Rise Alaska was being obtained as project manager and it was confirmed
this expenditure was not part of the aforementioned $7.4 million and inquired how that cost was
being paid for Assistant City Manager /Community Development Director Michelle Weston
explained the city had $3.4 million left from state funding. Not included in that figure was the new
grant money that would be issued in phases and private foundation and fundraising money.
Motion Passed Unanimous
OTHER NEW BUSINESS
Council direction on wind loading safety standards for downtown Seward.
Dunham stated he leased the building for the local GCI office and asked for a ruling of
a conflict of interest. Keil thought to be safe, it might be best for Dunham not participate. Valdatta
agreed just to avoid any potential hard feelings. Dunham passed the gavel to Vice Mayor
Bardarson and Dunham left the dais and sat in the audience.
Oates stated two individuals from Dryden and LaRue were here to provide their assistance.
Del Larue and Jack Anderson of Dryden and LaRue gave a PowerPoint presentation.
LaRue stated NESC codes were a minimum safety code. Alaska was generalized as a "heavy
zone" and the city's standards stated it should not go less than the NESC code, and take into account
local conditions and practices for the environment. City of Seward loading conditions presently were
NESC Heavy, which was 40 mph wind on V2 inch ice. In addition, City of Seward took into account
115 mph (sustained) on bare conductor and 70 mph on 1/2 inch ice. LaRue stated this was more than
the NESC required, but Seward was allowed to do that. In a recent review of the city's wind loading
1'
City of Seward. Alaska City Council Minutes
June 20, 2011 Volume 38. Page
standards as requested by the City, Dryden and LaRue was recommending a minimum of a 100 mph
wind in addition to the NESC heavy standards. LaRue stated it was a risk game and the city needed
to determine how conservative it wanted to be. He agreed 115 mph was a bit of a stretch, since no
poles have broken. Other factors, such as the history and condition of each individual pole, also
needed to be taken into account. Any utility has the right to go beyond the NESC standards. Oates
would submit a resolution for approval of Dryden and LaRue's recommendation.
Smith asked council where did they want the loading to be? He noted they needed to take
into consideration the condition of the poles. The city needed to find out the condition of its poles,
regardless of what GCI did. Oates said that carne back to a funding issue within the department.
Foutz said the poles the fiber optics on were most likely the same age, give or take a few years.
Shafer felt this was a policy decision. Oates could only say what they were adhering to now
was what was in place when he came to Seward.
Smith said if they wanted to change the standard, they should approve a new resolution of a
standard. Foutz said in 2001 the criteria was the NESC heavy standard with an additional 70 mph no
ice. That was lower than what was proposed.
After much discussion, council directed staff to bring forward a resolution that set the policy
for a new standard for the community with Dryden and LaRue's recommendation.
Discussion on the City Manager hiring process.
Kinney provided council with a packet of the current City Manager job description and
possible advertising notices of the position as well as a timeline for the process. Council agreed to
first approve a resolution accepting the City Manager's resignation at the next meeting. In the
meantime, they would review packet given to them and give final direction on job description and
the hiring process at the next meeting.
COUNCIL COMMENTS
Shafer said she was worried they city could end up without a direct revenue stream for the
Library Museum Project. She recently realized that with the completion of the levee project, 72 lots
would be available for sale. If the city sold those lots they could use those funds towards the library
museum project and would be trading an asset for an asset. It was something to look at, and if the
city didn't use the revenue for the Library Museum Project, they still needed land for new homes in
Seward. Shafer also noted the city would soon stop paying approximately $150,000 in bond
payments by the end of this year on various bonds. She was trying to think of other alternatives that
might be more amenable to the community.
Casagranda would like to see more information and research on the viability of Shafer's
comments. Oates said they could bring forward an assessment of the current status of the land
Shafer mentioned. He would try to bring something to council in July.
Valdatta stated Gary Superman had indicated he was going to run for Borough Mayor and it
I
City of Seward, Alaska
June 20, 2011 City Minutes
Volume 38, Page
was now up to four candidates.
Dunham said it was unfortunate about the passing of Bill Noll. The memorial service was
tonight in Girdwood. He was a great man and was a big booster of this town. Underground lines
were a good thing, but he recalled spending a lot of money on an estimate for utilities for the Alaska
SeaLife Center and the quote was over $500,000 for a very little distance. It was a great thing. but
incredibly expensive. Smith added it was also expensive to repair underground lines as well.
CITIZENS' COMMENTS
Sue McClure commented on the passing of Bill Noll and the Borough bringing forward a
resolution in his honor at the next assembly meeting.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS - None
ADJOURNMENT
The meeting was adjourned at 7:48 p.m.
Johanna Kinney, CMC Willard E. Dunham
City Clerk Mayor
(City Seal)
IS
City of Seward, Alaska City Council Minutes
June 27, 2011 Volume 38, Page
CALL TO ORDER
The June 27, 2011 regular meeting of the Seward City Council was called to order at 7:00
p.m. by Mayor Willard E. Dunham.
OPENING CEREMONY
Lieutenant Butch Tiner led the pledge of allegiance to the flag.
ROLL CALL
There were present:
Willard E. Dunham, presiding; and Marianna Keil
Bob Valdatta Vanta Shafer
Tom Smith Ristine Casagranda
comprising a quorum of the Council, and
Phillip Oates, City Manager
Johanna Kinney, City Clerk
Absent — Jean Bardarson
CITIZENS' COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED
FOR PUBLIC HEARING
Mary Hart, on behalf of. GCI, stated she first saw the proposed new design standards
contained in tonight's resolution late last Thursday afternoon; she said they were not shared at all
with GCI prior to the City receiving them, and they did not comply with the GCI's existing
requirements and was a breach of contract. If the permits were not issued very soon, Seward would
not be getting fiber optic. If the council accepted the resolution tonight, it would create a contract
dispute. She asked council approve GCI's permit requests.
Matt Hershock thanked the crew who painted the street lines on Fourth Avenue; he
appreciated them corning in before business hours. He also thanked the crew who went down to the
waterfront during the tsunami false alarm to notify them that it was a false alarm. Further, he thanked
the crews for getting the power back on today; he asked what methods of communication were used;
Oates noted they had press releases and had visited businesses to inform them.
Matt Gray gave kudos for the Public Works department for pulling together the Scheffler
Creek Pedestrian Bridge Project; he hoped it would help the environmental concerns, repair some
damage that had been done to the vegetation there, and would get more attention to the area. He
thanked everyone involved with the project.
Cuy of Seward, Alaska
June 27, 2011 City Council Minutes
Volume 38, Page
Bob Barnwell, sixth grade teacher at Seward Elementary, also supported the Scheffler Creek
project; the students were doing a lot of science projects on the creek and he hoped the city would
continue to support the project.
APPROVAL OF AGENDA AND CONSENT AGENDA
Motion (Keil /Shafer) Approval of Agenda and Consent Agenda
A proclamation to congratulate the Seward High Track Teams was added to the agenda.
The City Attorney report was removed from the agenda.
Motion Passed Unanimous
The clerk read the following approved consent agenda items:
The June 13, 2011 City Council Regular Meeting Minutes Were Approved.
Council rescheduled the July 11, 2011 work session to discuss building codes to August 8, 2011
at 5:45 p.m.
Council recommended Cindy Ecklund to the Kenai Peninsula Borough Planning Commission.
Resolution 2011-052, Authorizing The City Manager To Approve An Intergovernmental
Cooperative Agreement Between The State Of Alaska, Department Of Natural Resources,
Division Of Forestry And The City Of Seward.
Resolution 2011 -053 Authorizing A One Year Contract For $533,210.00 With The State Of
Alaska, Department Of Corrections, To Provide For Operating The Seward Community Jail
And Housing Prisoners Charged And /Or Sentenced Under Alaska Statutes.
Resolution 2011 -054, Accepting The Resignation Of City Manager Phillip Oates And Setting
The Terms For His Departure From City Employment.
SPECIAL ORDERS, PRESENTATIONS AND REPORTS
Proclamations and Awards
A welcome proclamation was read for the U.S. Navy's ship the USS Lake Erie.
A Certificate of Memoriam was read for William Noll.
A proclamation congratulating the Seward High School Track Team was read.
City Manager's Report, City Manager Phillip Oates had Utilities Manager John Foutz
explain today's outages. Foutz said there were multiple issues, including a fault on Nash Road of
l•6
City Council Minutes
y of Seward, Ala Volume 38, Page
June 27, 2011
trees growing into the lines. The company that installed two new generators, EPS, sent
representatives down to Seward to fix them; the Electric Department could not determine what the
problems were. Two other generators were also having difficulty, so only two out of six generators
were functioning today. Also, a lightening arrestor blew up and resulted in a black -out in the
afternoon. Currently the City was on Chugach power, and repairs needed to be made to the lightening
arrestors. He believed there was a fault within the substation underground that attributed to the
problems with the generators. Oates said the Electric Department and linemen did a great job today.
Until the repairs were completed, the City would not have any back -up generation capability. and
would rely solely on Chugach's power.
Oates discussed the recent tsunami warning last week. An alert was issued due to a 7.3
earthquake in the Aleutian chain; the warning was issued and then cancelled, but unfortunately the
sirens went off anyway right after the cancellation. The recorded public announcement was difficult
to hear, and there were many confused visitors who did not know what to do. The police and fire
patrolled the streets to alleviate concerns and explain that the warning was cancelled. The siren was
controlled by the weather service, but fundamentally they were trying to come up with a system they
could have more control over For a warning with little impact, the city needed to be in control. The
city had a commitment from the Borough to make this happen, and he hoped the sirens did not turn
into something people would soon start to ignore.
Harbor /SMIC: Letters would be sent to businesses in the harbor regarding 2011 billing for
trash services. The Harbor Enterprise fund had paid all invoices from Alaska Waste for all dumpsters
in the harbor for 2011, and the City would assess an annual fee for businesses utilizing those
dumpsters.
Fire Department: Received permission from the City Manager to expend funds in the amount
of $6,100 to replace non - functional garage door openers with modern equipment meeting current
safety standards. With the upcoming 4 of July holiday, he reminded everyone that the use of
fireworks was prohibited inside and outside of city limits.
Building Department: Processed 31 permits year -to -date; in comparison with last year's total
of 51 permits, they were approximately a month and a half ahead of schedule; this year saw an
increase in remodeling projects as opposed to new construction. Building department staff attended
two days of International Code Council (ICC) training this week in Wasilla; the permit technician
class would provide staff with the skills to better perform their jobs in code administration.
Public Works: Dolphin Project would have 100% design completed by June 2011; they were
still working on permitting issues; construction would be delayed until 2012 due to permit hurdles.
USCG Relocation: Issued notice to Metco to proceed for final scope of work to complete the
interior slab of the new foundation; the USCG was targeting the building relocation by early
September /October 2011.
Scheffler Creek Pedestrian Bridge: Bid for construction was advertised on June 17, 2011;
construction would begin in July 2011; work must be completed by August 2011; working with
Kenai Watershed Forum to discuss a ribbon cutting ceremony.
ko
City of Seward, Alaska
June 27, 2011 City Council A4inutes
6oluine 38, Page
General Administrative: An update on the water storage tank site selection would be provided
at the July 11, 201 1 council meeting. Superintendent of Public Works, Kirsten Vesel, submitted her
resignation.
Street and Shop: Working with Mount Marathon race coordinators and Chamber of
Commerce to prepare for the 4th of July events.
Mayoral Report, Mayor Willard E. Dunham updated the council on his recent travels and
participations. He talked about the congressional letter written for the Pacific Division. Dunham
had been working on Coastal Villages and spoke with AIDEA about the project. The city would not
receive state funding, if awarded, until September. He noted his visits with the U.S. Office of
Protocol with foreign ambassadors, including the Japanese Counsel and the Ambassador from Chile;
of the 43 Ambassadors in attendance, all but five of them came to Seward on Friday for a Kenai
Fjords Tour. He attended Ocean's Day at the SeaLife Center and noted they unveiled two new
exhibits. His meeting with congressional delegation for Murkowski and Begich went well. He
represented Seward for the first time at the Frontier Community Service's 8 Annual Little League
World Series in Kenai.
Other Reports, Announcements and Presentations
An update on the Jujiro Wada Project was given. Jim Sinnett of the Jujiro Wada
Memorial Association, Dr. Tony Nakazawa, Professor Edgar Blatchford, and Don Chu were in
attendance to give council a progress activity report. A new, comprehensive website would be
unveiled on July 15, 2011 at the address 3 cjujirowadamemorialassociation .corn. Sinnett spoke of the
association's intent to have ,a road relay marathon from Mile 0 to Crow Pass in Girdwood.
coordinated with the unveiling of the Iditarod Monument, and modeled after the Klondike '98 Road
Relay that went from Skagway to White Horse. Potential attendance would be up to 5,000 people
with up to 900 runners taking part in the race. They wanted to call the marathon the International
Invitational Jujiro Wada Midnight Sun Marathon; they wanted communities in Seward, Fairbanks,
Nome and Barrow to co- sponsor the marathon with them.
An Audit Presentation was given by John Bost. Bost, with Mikunda Cottrell, stated the
council met earlier that evening in a work session to recap the 2010 audit so Bost offered a quick
summary. The audit went very well; there were no findings or internal control weaknesses, which
meant the internal policies and procedures were functioning well. The final audit opinion was a clean
and unqualified opinion, which was the best opinion that could be achieved from an audit firm. The
general fund had a good year; the undesignated fund balance was slightly above $4.000,000; it had
$300,000 less in expenditures in 2010 than in 2009; the current undesignated fund balance
represented about four months, which was just in the mid -range of the required 2 -6 months of
reserves. Most enterprise funds had less expenditures; some were still are not generating enough
revenues to cover their debts and operating expenses. Overall, 2010 was a good year financially for
the city. He thanked Kris Erchinger, the finance department and the council for their time.
PUBLIC HEARINGS
City of Seward, Alaska City Council Minutes
June 27, 2011 Volume 38. Page
Resolution 2011 -050, Authorizing The City Manager To Enter Into A Lease Agreement With
Global Tower Assets, LLC, For Lot 1, Block 6, Fourth Of July Creek Subdivision, Seward
Marine Industrial Center, For The Purpose Of Constructing And Operating A
Communication Tower.
Motion (Keil /Shafer) Approve Resolution 2011 -050
Oates stated the intent behind the resolution and of the lessees. They were current lease
holders over at SMIC, but due to erosion problems that threatened the existing tower, Global Tower
Assets was requesting to build a tower in this location. The site was to be used only as a
communication tower. Oates recommended approval.
Notice of the public hearing being posted and published as required by law was noted and the public
hearing x'as opened No one appeared to address the Council and the public hearing was closed.
In response to Keil's inquiry, Oates stated this land was only a small portion of the expiring
Racing Lion's lease. Oates stated they did not know if the Racing Lion's wanted to renew their lease;
Harbormaster Kari Anderson noted she had received no response to any attempts at communication.
Oates said the location was pretty important to get reception. Shafer asked if the Racing Lion's had
any infrastructure there now; Anderson responded that they did not.
Motion Passed Unanimous
UNFINISHED BUSINESS
Resolution 2011 -049, Appropriating Funds In An Amount Up To S1,500,000 For Purposes Of
Paying Costs Associated With The Proposed Seward Community Library Museum. (Clerk's
Note: postponed from the June 13; 2011 council meeting. Original motion made by Smith and
seconded by Bardarson)
Motion (Smith/Bardarson) Approve Resolution 2011 -049
Oates stated this resolution was asking if the council wanted to take money from the general
fund reserve to reduce the potential amount of the general obligation bond for the Library Museum
Project. The finance director had concerns about taking funds from these reserves. Oates agreed and
thought the council should ask for the full bond amount of $3,700,000 instead of taking from the
general fund reserves. As an example, Finance Director Kris Erchinger said if the city took
$1,000.000 from the general fund balance and cut the bond amount to $2,700,000, the city would
save about $80,000 a year in debt service costs. assuming a 25 -year bond.
Motion to Amend (Shafer /Keil) Amend Resolution 2011 -049, reducing the
amount from S1,500,000 to S700,000.
Erchinger said the council would pay higher interest premium costs if they wanted to pay off
the bonds quicker. She thought for the sake of clarification, they needed to submit to the bond bank a
CIO of Seward, Alaska
June 27, 2011 City Council Minutes
1 olu/ne 38, Page
specific amount. She added that they could not request a bond in any amount and not use the funds
fully without facing a penalty.
Smith stated that he was in favor of using $1,00,000 from the general fund reserves as well
as paying a higher interest rate to the bond bank in exchange for the ability to pay off the general
obligation bond early.
Erchinger said they could get creative if council wished to use the general fund reserves in
that the city could borrow $3,700,000 for the project and, at the same time, set aside an amount from
the reserves that would sit in escrow until such time that the general obligation bond became
callable. That way, the city would have a large lump amount to kick off an early pay -down of the
bond. This option would allow the city to maintain access to the funds in the event of an emergency.
She believed that if the bond was not callable until after the first five to seven years, the city would
avoid incurring additional penalties for paying it off early.
Motion to Amend Failed Yes: Valdatta, Shafer
No: Keil, Casagranda, Smith, Dunham
Shafer stated she was in favor- of setting aside some general funds in this year's budget
process. Dunham added that he wanted the bond application to definitely include the ability for early
pay -off.
Main Motion Failed Yes: Valdatta, Casagranda
No Keil, Shafer, Smith, Dunham
Resolution 2011 -048, Designating S100,000 Of General Fund Undesignated Fund Balance To
Cover Costs Associated With The Kenai Peninsula Borough's Implementation Of The City Of
Seward's Increase In Sales Tax On Alcohol Beverages And Tobacco Products. (Clerk's :Vote
postponed fi°om the June 13, 2011 council meeting. Original motion made by Shafer and seconded
by Keil)
Motion (Shafer/Keil) Approve Resolution 2011 -048
Oates stated there was uncertainty if this resolution was still needed because of the
referendum out there. If council passed the resolution, the city did not have to spend the funds, but
this was simply setting it aside if needed. Keil thought council would be jumping the gun if they
passed this resolution now and they should wait until after the October election. Shafer agreed. Smith
said he would just as soon see this passed now so that they had all their options before them.
Casagranda didn't think the city should have to pay for it. Valdatta said the Borough had just
received $900,000 from the Bureau of Land Management and that maybe they would help Seward
pay for this cost.
Oates said legally' they could demand the Borough collect this money for the city; they likely
would have to get legal advice on this issue. Also, it could take about four months to get the
Borough's software updated; he said perhaps they should consider this at a later date. Dunham was
opposed to this and stated the Borough slid every time something like this came up, and it was their
City Council Minutes
City 0/ " Sei4a� - d, Alaska Volume 38. Page
June 27. 2011
responsibility to collect our taxes to the city. The law says the Borough was the taxing agent. Smith
said that was true, and the city shouldn't have to pay for it, but the Borough had the city over a barrel
and the city did not have a lot of leverage over them.
Motion Failed Yes: Valdatta, Smith
No: Keil, Shafer, Casagranda, Dunham
Resolution 2011 -036, Amending The Surveillance Camera Policy. (Clerk's Note: postponed front
the tVlay 9, 2011 council meeting. Original motion made by Bardarson and seconded by Keil)
Motion (Bardarson /Keil) Approve Resolution 2011 -036
Oates said Police Chief Clemons was ill tonight. He didn't think they needed this resolution.
Administration had been working with council member Shafer to remove the Fire Department
camera. Staff was willing to do that but other than that change, Oates felt that council had the tools
they needed and he didn't feel this amending resolution was necessary.
Shafer confirmed the Police Chief was working for a solution to move the camera on a pole
on Church Street, which satisfied her because the camera would then be off Fourth Avenue, and
would provide better surveillance for the Fire Department. She was very satisfied with this solution.
Motion (Shafer /Keil) Amend Resolution 2011 -036 by striking the
sentences: "If camera surveillance of the
Seward Fire Department Building is
required, the camera shall be placed inside
the facility to protect fire equipment from
unknown danger. Any potential placement
of surveillance cameras on any
pedestrian /public areas must have final
approval by the City Council of the City of
Seward by resolution," and changing the
location of cameras not allowed on 4th
avenue from "south of the boat launch
ramp in the Small Boat Harbor" to "south
of Van Buren Street."
Smith didn't understand why they had this resolution at all.
Motion to Amend Passed Yes: Smith, Keil, Shafer, Casagranda
No: Valdatta, Dunham
Main Motion Passed Yes: Valdatta, Keil, Shafer, Casagranda
No: Smith, Dunham
NEW BUSINESS
City "Seward. Alaska
June 27, 2011 City Council Minutes
I 'olume 38, Page
Resolution 2011 -055, Adopting The Climatic Design Criteria For The Electric Utility Of All
Distribution Poles South Of Nash Road For The Purpose Of Construction And Attachment.
Motion (Shafer /Smith) Approve Resolution 2011 -055
Mayor Dunham asked for a ruling on a conflict of interest because he leased his building to
GCI. Council debated whether this issue was a policy issue or represented a conflict due to a direct
business affiliation with one company.
Motion (SmithBardarson) Declare an existing conflict of interest with
Mayor Dunham and Resolution 2011 -055.
Motion Failed Yes: Casagranda
No Valdatta, Shafer, Smith, Keil
Keil reiterated what the cunent policy stated for poles south of Nash Road: NESC Heavy 40
miles per hour with half inch of ice; 70 miles per hour with half inch of ice at 30 degrees Fahrenheit:
and 115 miles per hour with no ice. Utility Manager Foutz clarified that since 2007 those were the
standards the Electric Department had been using; Oates suggested that those standards had been in
place since before 2007 since they were in use when Oates started working for the city.
Oates read the background and justification of this resolution. The attorney said what the city
was doing was consistent with the current practices. The recommendation of the city's engineering
firm was incorporated in this resolution and he recommended approval. Oates was in favor of fiber
optic in Seward, but disagreed with some of what the GCI representatives had said he said the city
should proceed ahead with a great deal of care. Foutz said these standards recommended were based
on safety and were considered minimum safety standards.
Field Engineer Jeff Estes stated that four pounds per foot of wind plus half inch of ice had a
safety factor of two Our poles could take twice that much, but that was the absolute minimum
standard according to NESC rules. Estes further explained that height, wind span and temperature all
played into those calculations.
Several council members questioned what the standards were in 2001 when the existing poles
were installed, but no one could recall.
Motion (Casagranda) Postpone Resolution 2011 -055 to the July'
11, 2011 meeting.
Motion died for lack of second.
Smith said the real issue was that the city needed to establish a pole policy.
Main Motion Passed Unanimous
OTHER NEW BUSINESS
City Council tllinaites
City of seward..Alaska Volume 38, Page
June 27, 2011
Discussion on Council's Position on Redistricting (Seward Senate and House Redistricting
Plan).
It was noted with the new redistricting changes; Seward would be grouped with Nikiski and
South Anchorage for senate and house districts. Smith thought it was ludicrous for Seward to be
attached to South Anchorage. Keil didn't want to take any legal action and Shafer said she wouldn't
mind writing a letter saying being in these new house and senate districts were not in Seward's best
interest. Oates said this redistricting could compromise Seward's ability to be effective in the future.
If a lawsuit came forward, the city should support it by an amicus brief, but not take legal action
individually. Dunham said the city inquire what happened to Ketchikan or Kodiak, as that was where
Seward was originally going to be grouped with.
Direction was given for administration to send a letter to the redistricting board, stating the above
concerns.
Direction on City Manager Hiring Process
By resolution this evening, Council accepted the Oates' resignation. Council directed the
City Clerk to advertise for the open City Manager position for three weeks. They further directed the
clerk to adjust the current job notice by removing the salary amount.
INFORMATIONAL ITEMS AND REPORTS (No action required)
Resolution 2011 -003. A Resolution Of The Port And Commerce Advisory Board, To Recommend The
City Of Seward Investigate Funding Opportunities Including Grants For Constructing And
Installing The Slips Connected To Z Float In The Seward Harbor.
COUNCILS' COMMENTS
Councilrnember Shafer wished everyone a Happy 4 of July.
CITIZENS' COMMENTS
Mary Hart stated that GCI was disappointed that the city had allowed the Electric
Department to repudiate the binding agreement with GCI. They were especially disappointed with
the Electric Department and administration's attempt to arrive at a mutual agreement. Despite set-
backs. GCI would, under protest, submit permit paperwork tomorrow that comply with the standards
passed in tonight's resolution. She said it was interesting and frustrating that despite the fact that the
standards contained in the resolution did not actually require any change in GCI's downtown project
this year, the ongoing legal dispute was being preserved by GCI for future action as yet undecided.
Hart stated GCI expected and basically demanded that the city would process their permits
immediately and the permits be granted by the end of this week. In order to expedite the process,
Hart stated she could produce the pole calculations this evening. To clarify what standards were used
in the Jason Project in 2001, GCI built that to the NESC Heavy standards, which was what GCI's
contract had stated since it went into effect in 1987. She challenged council to find any record of a
City ofSeward, ,91aska
June 27, 2011 City Council Vinuies
l'olanne 38, Page
contract modification with GCI since that time; she said it did not exist. Hart thanked council for
their time and efforts. She reiterated that she needed to have the permits by the end of this week.
COUNCIL AND ADMINISTRATION RESPONSE TO CITIZENS' COMMENTS –
Keil said that council should get the GCI project done and honor their contract. Smith,
Shafer. and Dunham agreed. Oates disagreed and said he believed the city had honored their contract.
ADJOURNMENT
The meeting was adjourned at 10:27 p.m.
Johanna Kinney, CMC — – -
Willard E. Dunham
City' Clerk Mayor
(City Seal)
-Olt, _3 L
FRIENDS OF THE
** * * *Jesse.
HOME
o
June 27, 2011 A 2
g 2 °
Attn: Mayor Willard E. Dunham and Mr. Phillip Oates °hf` /
City of Seward
P.O. Box 167 � co ���
Seward, AK 99664
Dear Mayor Willard E. Dunham and Mr. Phillip Oates,
This letter is an official request from the Friends of the Jesse Lee Home (FJLH) to purchase the Jesse Lee
Home property and structure(s) from the City of Seward for $1.00. Site control is critical to enable us to
begin applying for our historic tax credits and other grant funding. The FJLH have worked diligently for
over six years in partnership with the City and State of Alaska to establish our foundation. We have
formed a nonprofit 501 (c) 3, developed a relationship with funders, the legislature and established a
team that will ensure success. The University of Alaska has endorsed support for our cutting edge
leadership curriculum that will be the first and best in the State. The Balto School will honor the Jesse
Lee Home site and feature Alaska's history throughout the facility. Seward will soon become the
educational hub of Alaska creating leaders to solve complex issues that face our State's future.
We appreciate the City's ongoing support for the project and site. The Legislature has offered us
continued support for the project and has commended the City for their endorsement of the project.
The City's Library /Museum, the Alaska SeaLife Center and AVTEC will complement the Balto School,
offering resources necessary for the bright and brilliant students that we intend to recruit.
Site control is necessary to continue our efforts to complete the project. As originally agreed upon,
there is an expectation from the FJLH and the State of Alaska to transfer the Jesse Lee Home property
and structure(s) to the FJLH at little to no cost. Please let us know whether your attorney or ours should
draft the purchase agreement for the acquisition. If the City Council would like a project update, we will
be available for a work session at your convenience. Our intent is to acquire the property prior to the
end of September 2011. We look forward to your response.
Please contact me at (907)263 -5124 or (907)240 -8022 to discuss this acquisition and determine whether
or not a City Council work session is necessary. We look forward to your prompt response.
Sincerely,
.-7 fgt.
Barbara Donatelli
Friends of the Jesse Lee Home
Cc: Ann Bruner, Durrell Law Group
745 W. 4 Ave, Suite 250 • Anchorage AK 99501 • www.jesseleehome.net
act
5/26/2011 11:04 AM
Run Date - 5/26/11 @ 11:04 AM Providence Health & Services DETOPS
110 - MGD - PROV SEWARD MED CTR
Detail Statement of Operations (in Thousands)
Reported as of April 2011
Variance % Variance Last Year ;% Variance
Actual MTD Budget MID MID Actual YTD Budget YTD YTD Actual YTD YTD
Cross Service Revenues:
94 157 u,, 58 6 r °/
�4 1�r (40.1 :o) Acme Care - Inpatient 7�0 28 20.4 v, 729 ,,.7,0
407 481 (15.4 %) Acute Care- Outpatient 1,781 1,897 (6.1 %) 1.893 (5.9 %)
72 127 (43.3 %) Primary Care 421 :306 (16.8 %) 495 (14 -9 %)
1.200 85(1 39.7% Long -term Care 4,571 3.436 33 -0% 3,073 48.7 %,
- - - Homecare & Hospice -
- - - Housing & Assist. Living - - -
1,773 1,624 9.2% Total Gross Service Revenues 7,529 6,467 16.4% 6,190 21.6%
Revenue Deductions:
69 29 137.9% Charity Care 134 116 15.5% 74 81.1%
457 44 938.6% Medicare & Medicaid 1,430 172 731.4% 342 318,1%
7 4 75.0% Negotiated Contracts 60 17 22529% 17 252.9%
55 40 37.5% Other 196 159 23.3% 125 56.8%
588 117 402.6% Total Deductions 1,820 464 292.2% 558 226.2%
1,185 1,507 (21.4 %) Net Service Revenue 5.709 6,003 (4.9 %) 5,632 1.4%
- - Prernium Revenue - - - - -
- Rental and Education Revenue - -
20 7 185.7% Other Operating Revenue 48 29 65.5% 147 (6T3%) 1
1,205 1,514 (20.4 %) Total Net Operating Revenues 5,757 6,032 (4.6%) 5,779 (0.4%)
Expenses from Operations:
- - - Purchased and Healthcare Expenses - - -
Other Expenses from Operations:
735 719 2.2% Salaries & Wages 2,865 2,824 1.5% 2,669 7.3 °/0
187 209 (10.5 %) Employee Benefits 813 835 (2.6 %) 791 2.8%
46 6 666.7% Professional Fees 77 25 208.0% 20 285.0%
70 69 1.4% Supplies 326 276 18.1% 320 1.9%
224 174 28.7% Purchased Service 893 690 29.4. ° /, 6522 37.0%
2 2 - Depreciation 7 7 7 -
4 - - Interest and Amortization 9 1 800.0% 2 350.0%
32 70 (54.3 %) Bad Debts 177 277 (36 1 %) 250 (29.2 %)
- - - Healthcare Taxes 2 2 - 3 (33.3 %)
63 55 14.5% Other Expenses 281 221 271% (449) 162.6%
1,363 1,304 4.5% Total Other Exp from Operations 5,4 5.158 5.7% _ x,265 - -.-_ 27788""/°
1,363 _ 1,304 _ _ 4.5% Total Operating Expenses 5,450 5,158 5.7% 4,265 27.8`%
(158) 210 (175.2 %) Excess of Rev Over Exp from OPS 307 874 (64.9 %) 1,614 (79.7 %)
- - Non - Operating Gain (Loss) - - - .. -
(158) 210 (1 ?5.2 %) Excess of Revenues Over Expenses 307 874 (64.9 %) 1,514 (79.7 %)
Other Activity - Unrestricted (715) 02) - 3K - 5 - %
Increase (Decrease) in UR Net Assets -____ (408) 406 200.5%
I
5/26/2011 11:04 AM
PRELIM - Run Date - 5/26/11 (d ) 11:04 AM Providence Health & Services ,l_ SI-IT
110 - MGD - PROV SEWARD MED CTR
Balance Sheet (in Thousands)
Reported as of April 2011
April 2011 December 2010 April 2011 December 2010
Actual Last Year Actual Last Year
ASSETS LIABILITIES & NET ASSETS
Current Assets: Current Liabilities:
Cash and Cash Equivalents (712) (414) Accounts Payable 206 223
System Pooled Cash - Accrued Compensation 671 334
Mgmt Designated Cash & Cash Equiv. - - Affiliates Payable
Short Term Investments - Payable to Contractual Agencies 411 420
Assets Held Under Securities Lending - Deferred Revenue /Unearned Premiums 8 30
Accounts Receivable, Net 2,783 2,111 Liability for Unpaid Medical Claims - -
Affiliate Receivable - Liability for Risk - Sharing -
Premiums Receivable - Liabilities Under Securities Lending -
Other Receivables 41 (18) Other Current Liabilities 2,834 1.231 ...-9
Supplies Inventory at Cost - Short -Term Debt
Other Current Assets 46 24 Current Portion of Long -Term Debt -
Current Port. of Assets -Use is LTD _ - Total Current Liabilities 4,130 2,738
Total Current Assets 2,158 1,703
Assets Whose Use is Limited: Lonq -Term Debt:
Mgmt Designated Cash and Investments - - Master Trust Debt
Funds Held for Long -terrn Purposes 1,003 476 Loans from Affiliates - _
Gift Annuity and Trust Funds - - Other
Funds Held by Trustees - Long -Term Debt -
Non- Current Assets Limited as to Use 1,003 476
Property. Plant & Eauipment: Other Long -Term Liabilities 81 69
Gross Property, Plant & Equipment 107 107
Less: Accumulated Depreciation (82) (75) Total Liabilities 4,191 2,807
Net Property, Plant & Equipment 25 32
Net Assets:
Other Assets: Unrestricted (977) (569)
Unamortized Financing Cost - Temporarily Restricted 3 3
Interaffiliate Notes Receivable - Permanently Restricted
Other (Incl. Long -term Investments) 31 30 —
-- . - -- -- — Total Net Assets (074) (566
Total Other Assets 31 30
Total Liabilities and Net Assets 3217 2 241
Total Assets —_— 3_217 _. 2,241 -.
8
5/26/2011 11 .04 AM
PRELIM - Run Date - 5/26/11 r. 11 04 AM Providence Health & Services CASHIPLOW
110 - MGD - PROV SEWARD MED CTR
Statement of Cash Flows (in Thousands)
Reported es of April 2011
April 2011 April 2010 April 2011 April 2010
Current Year Last Year Current Year Last Year
Ooeratino Activities:
Change in Net Assets (408) 409 Financing Activities:
Adjustments to Reconcile to Net Cash Provided Proceeds from Rest. Contrib. and invest Inc. - 3
by Operating Activities: Debt Borrowings - -
Depreciation 7 7 Debt Reductions -
Amortization - - (Increase) Decrease in Def. Financing Costs - -
Provision for Bad Debts 177 250 (Increase) Decrease in Funds Held by Trustee -
Extraordinary Items and Other - Interdivision Transfers & Other (715) (1,107)
Loss (Gain) on Sale of Cap. Assets - - Net Cash Prov by (Used 0) Financing Act. (715) (1,104)
Equity Income from Joint Ventures
Changes in Certain Current Assets/Liab. 460 (1,061) Increase (Decrease) in Cash & Cash Equiv. (298) (852)
Increase (Decrease) in Other Liabilities (7) (11)
Restricted Contrib. /Investment (Income)Loss - (3) Cash & Cash Equiv- Beginning of Period (414) 758
Net Assets (Contributed)Assumed and Other 715 1,108 (�`[}
Net Real. /Unreal. (Gains)Losses on Invest. � Cash & Cash Equiv- End of Period ___(7� -___ (94�
Net Cash Provided by (Used in) Op. Act. 944 0099
Investino Activities:
PP &E Additions - Supplemental Disclosure_
Proceeds on Me Disposal of PP &E - Cash Paid for Interest, Not of Capital 9 2
Purchases of Investments - - Capitalized Lease Obligations - -
Proceeds on Me Sale of Investments (526) (447)
Capital Contributions to Joint Ventures - -
Distributions from Joint Ventures - -
(Increase.) Decrease in Other Long -Term Assets (1)
Net Assets (Liab.) Assumed and Other
Net Cash Provided by (Used in) inv. Act. (527) (447)
11
6/21/2011 2:54 PM
Run Date - 6/21/11 @ 2:54 PM Providence Health & Services DET OPS
110 - MGD - PROV SEWARD MED CTR
Detail Statement of Operations (in Thousands)
Reported as of May 2011
Variance % Variance Last Year % Variance
Actual MTD Budget MTD MTD Actual YTD Budget YTD YTD Actual YTD YTD
Gross Service Revenues:
222 159 39.6% Acute Care- Inpatient 977 786 24.3% 876 11.5%
480 514 (6.6 %) Acute Care - Outpatient 2,261 2,411 (62%) 2,339 (3.3 %)
95 128 (25.8 %) Primary Care 517 635 (18.6 %) 619 (16.5 %)
1,173 886 32.4% Long -term Care 5,744 4,322 32.9% 3,862 48.7%
- - - Homecare & Hospice - - - -
Housing & Assist. Living - - _ -
1,970 1,687 16.8% Total Gross Service Revenues 9,499 8,154 16.5% 7,696 23.4%
Revenue Deductions:
- 29 (100.0 %) Charity Care 134 146 (8.2 %) 141 (5.0 %)
502 46 991.3% Medicare & Medicaid 1,931 217 789.9% 457 322.5%
1 5 (80.0 %) Negotiated Contracts 61 22 177.3% 21 190.5%
57 42 35.7% Other 253 _ 201 _ 25.9% 170 48.8%
560 122 359.0% Total Deductions 2,379 - _ 586 306M% 789 201.5%
1,410 1,565 (9.9 %) Net Service Revenue 7,120 7,568 (5.9 %) 6,907 3.1%
- - - Premium Revenue - - - - -
- - - Rental and Education Revenue - - - - -
110 7 1,471,4% Other Operating Revenue 158 36 338.9% 164 (3.7 %)
1,520 1,572 (3.3 %) Total Net Operating Revenues 7,278 7,604 (4.3%) 7,071 2.9%
Expenses from Operations:
- - - Purchased and Healthcare Expenses - - - - -
Other Expenses from Operations:
786 732 7.4% Salaries & Wages 3,653 3,555 2.8% 3,394 7.6%
243 213 14.1% Employee Benefits 1,056 1,048 0.8% 1,009 4.7%
° 183.9% 11 6 83.3 /° Professional Fees 88 31 183. 28 214.3% 9 /°
78 70 11.4% Supplies 404 346 16.8% 382 5.8%
166 173 (4.0 %) Purchased Service 1,058 864 22.5% 802 31.9%
2 2 - Depreciation 9 9 - 9 -
11 - - Interest and Amortization 20 1 1,900.0% 2 900.0%
140 73 91.8% Bad Debts 317 350 (9.4 %) 308 2.9%
- - - Taxes and Licenses 2 2 3 (33.3 %)
48 56 (14.3 %) Other Expenses 329 277 18.8% (400) 182.3%
1,485 1,325 12.1% Total Other Exp from Operations _ _ 6,936 - J 6,483 __ _ 7.0% 5,537 25.3%
1,485 1,325 12.1% Total Operating Expenses 6,936 6,483 7.0% 5,537 25.3%
35 247 (85.8 % Excess of Rev Over Exp from OPS 342 1,121 (69.5 %) 1,534 (77.7 %)
- - - Non - Operating Gain (Loss) - - - 1 -
35 247 (85.8 %) Excess of Revenues Over Expenses 342 1,121 (69.5 %) 1,535 (_77.7 %)
Other Activity- Unrestricted (1,220) (1,321) 7.6%
Increase (Decrease) in UR Net Assets _ _ -____ (878) 214 - -. - X510.3%0)
1
6/21/2011 2:54 PM
PRELIM - Run Date - 6/21/11 @ 2:54 PM Providence Health & Services BAL_SHT
110 - MGD - PROV SEWARD MED CTR
Balance Sheet (in Thousands)
Reported as of May 2011
May 2011 December 2010 May 2011 December 2010
Actual Last Year Actual Last Year
ASSETS LIABILITIES & NET ASSETS
Current Assets: Current Liabilities:
Cash and Cash Equivalents (506) (414) Accounts Payable 245 223
System Pooled Cash - - Accrued Compensation 769 834
Mgmt Designated Cash & Cash Equiv. - - Affiliates Payable - -
Short Term Investments - - Payable to Contractual Agencies 48 420
Assets Held Under Securities Lending - - Deferred Revenue /Unearned Premiums 8 30
Accounts Receivable, Net 2,947 2,111 Liability for Unpaid Medical Claims - -
Affiliate Receivable - - Liability for Risk - Sharing - -
Premiums Receivable - - Liabilities Under Securities Lending - -
Other Receivables 43 (18) Other Current Liabilities 3,415 1,231
Supplies Inventory at Cost - - Short -Term Debt - -
Other Current Assets 42 24 Current Portion of Long -Term Debt -
Current Port. of Assets -Use is LTD _ - - Total Current Liabilities 4,485 2,738
— — - - - ----
Total Current Assets 2,526 1,703
Assets Whose Use is Limited: Long-Term Debt:
Mgmt Designated Cash and Investments - - Master Trust Debt - -
Funds Held for Long -term Purposes 521 476 Loans from Affiliates - -
Gift Annuity and Trust Funds - Other - -
Funds Held by Trustees - Long -Term Debt -
Non - Current Assets Limited as to Use 521 476
Property, Plant & Equipment: Other Long -Term Liabilities 59 69
Gross Property, Plant & Equipment 107 107
Less: Accumulated Depredation (84) (75) Total Liabilities 4,544 2,807
Net Property, Plant & Equipment 23 32
Net Assets:
Other Assets: Unrestricted (1,447) (569)
Unamortized Financing Cost - - Temporarily Restricted 3 3
Interaffiliate Notes Receivable - - Permanently Restricted - -
Other (Incl. Long -term Investments) 30 30 Total Net Assets (1,444) (566)
Total Other Assets 30 30
Total Liabilities and Net Assets 3 100 2 241
Total Assets _ 3,100 2 241 _
-
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7:OOpm City Council M)
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Nanci Richey 1 7/6/2011 3:01 PM
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Monday Tuesday
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5:45pm City Council W1 12
7:OOp r City Council M 11:30am Seward Comm
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