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HomeMy WebLinkAbout02282013 City Council Special Meeting Minutes City of Seward, Alaska City Council Special Meeting Minutes February 28, 2013 Volume 39 Page 91 Iwo CALL TO ORDER The February 28, 2013 Special Meeting of the Seward City Council was called to order at 7:00 p.m. by Vice Mayor Jean Bardarson. OPENING CEREMONY Council Member Keil led the Pledge of Allegiance to the flag. ROLL CALL There were present: Jean Bardarson presiding and Ristine Casagranda Marianna Keil Vanta Shafer Bob Valdatta Christy Terry comprising a quorum of the Council; and Ron Long, Acting City Manager Johanna Kinney, City Clerk him Absent — David Seaward CITIZEN COMMENTS ON ANY SUBJECT EXCEPT THOSE ITEMS SCHEDULED FOR PUBLIC HEARING Paul Rupple said this was a small town and he was a member of many different organizations. He recognized that community members in a small town often had to wear several hats. Regarding conflicts of interests, Rupple felt if there was a financial interest, there was concern. If there was not a financial interest present, there should be no concern. He encouraged the council to follow past precedence of using a substantial direct or indirect financial interest as the mechanism to determine if council members should be allowed to vote on issues or not. APPROVAL OF AGENDA Motion (Shafer /Terry) Approval of Agenda Motion Passed Unanimous NEW BUSINESS Resolution 2013 -015, Authorizing General Terms Of Settlement Of A Rate Dispute With The State Of Alaska And Providence Seward Medical And Care Center Relating To A Medicaid Rate Appeal In An Approximate Amount Of $6.1 Million Over Four Years, And Authorizing Negotiation Of A Formal Settlement Agreement To Be Approved When Negotiations Are City of Seward, Alaska City Council Special Meeting Minutes February 28, 2013 Volume 39 Page 92 Complete. Motion (Shafer /Terry) Approve Resolution 2013 -015 Finance Director Kris Erchinger talked through the council agenda statement to provide a history of the issue at hand. The state was agreeing to settle with Providence Seward for Medicaid reimbursement rates at $6.1 million. Providence attorneys were recommending to Providence and the city that they settle. As proposed, the settlement would come to Seward over a four -year period. What Providence had budgeted in for their daily rates and what the benefit would be to Seward, would ultimately depend on what the census of the Seward Long Term Care Facility was and how many of those patients were on Medicaid. In response to Valdatta, discussions on this issue began with the Office of Rate Review, then went to the State of Alaska Attorney General's Office, which was where the recommendation before the council tonight for consideration was generated. Erchinger explained the $6.1 million figure would give Providence Seward reimbursements to the city for 2011 and 2012, for about half of the figure. It would need to be decided how Seward Providence would receive the other three million. One consideration was to allow Providence Seward to get caught up with its cash flow because it owed Providence Anchorage roughly $2 million. This would get the city and Providence Seward close to even, putting them both in a much better position. ..� In response to Shafer, Erchinger said Providence Health Services Alaska had been arguing this on behalf of Seward Providence and Valdez Providence, and the costs would not be borne by either city. Erchinger noted it was important to remember that Providence Seward was losing $6 million, not Providence Alaska. Providence Seward was owned by the taxpayers of the city. Erchinger said the $750,000 previously paid to Providence Seward was for electronic medical records and to help recover cash flow. Long stated this was a lot of information that came at the expense of many hours of preparation. The effort put forward in this was a tremendous value and noted how much the city owed Erchinger for her time and patience in presenting this issue. Motion Passed Unanimous Other New Business Council discussion on City Council Conflict of Interest Rules according to the City Code. Shafer's concern and question was what was listed in the city's code and charter regarding conflicts of interest, as well as how other Alaskan communities handled conflicts of interest. It appeared other municipalities had similar conflict of interest language in their codes, which addressed those of a financial interest. The mayor or council should decide whether or not a conflict existed based on the specific language in the code. She was wondering if they needed to write something to clarify in the code that these were strictly the guidelines they were to follow. Shafer City of Seward, Alaska City Council Special Meeting Minutes February 28, 2013 Volume 39 Page 93 understood what the attorney said regarding common law, but she didn't see how that applied to the �r.. non - profit boards in town. She said when she was sworn in as a council member she took an oath to follow the laws of the City of Seward, the State of Alaska, and the United States. She wondered if there needed to be further clarification. Terry said she didn't disagree that council members had the duty of loyalty under the common law. When she looked at the city's code, the only thing the mayor was allowed to make a determination on was if they had a substantial direct or indirect financial conflict of interest, not if they had a conflict of interest under the common law. Terry felt stating conflicts other than of a financial nature was a matter of courtesy, but nowhere in common law did it give the presiding officer the role to determine on ruling on common law of duty of loyalty. Long said they had all been on a number of boards and part of organizations. On the Kenai Peninsula Borough Assembly, their code trumped common law, the way it was written. But there had to be more detailed of examples that might rise to the level of conflict, such as in terms of relating to contractual agreements. Perhaps the rulings needed to be applied judiciously with a fact -based analysis. As it was being determined lately, conflicts were substantive and prospective. If there was an issue of duty of loyalty when a member was a part of two boards that had a deliberative process, the member should disclose and observe the right to abstain from voting twice. Long recommended tightening up some of that language, but they should ask themselves the fact -based question if a reasonable person in that position would be biased and unable to act in the City's interest. it Shafer said this issue had never come up before and she found this to be inane. They sit on the council and it was common sense that they have the duty of loyalty as a council member. Perhaps they should make their language closer to the Kenai Peninsula Borough's. Keil and Long both noted the city code could supercede the common law if they so chose, but it would have to be amended by ordinance. Casagranda understood common law to what the courts would hold accountable. At the last regular meeting where a conflict was ruled, she voted by what the attorney cited as conflicts of interest relating to the city code and to the common law. Casagranda thought of her appointment of the recently- formed recreation committee. If she were to vote on the committee, she didn't think it was right to vote on the council level afterwards. With the information she was given at the last regular meeting, that was why and how she voted. She would also feel more comfortable with tighter language in the code and with what the attorney recommended. Long said the council wasn't necessarily given the entire picture of common law. For the purposes of duty care or loyalty, their presence on the board didn't assume a higher duty on one board over the other. That determination was needed on a case -by -case basis. Terry said they had an attorney opinion in front of them that supported the common law. Shafer did not want this happening again. Casagranda would like to see the guidelines stated clearer in the code if the council was to supersede common law. She personally didn't want the right City of Seward, Alaska City Council Special Meeting Minutes February 28, 2013 Volume 39 Page 94 to vote on the boards she was appointed to and then have the ability to vote on the council level again. Terry suggested speaking to the attorney about providing suggested language when disclosing potential conflicts of interest. Council directed the City Clerk to work with the City Attorney to provide suggested language to council for purposes of disclosure regarding duty of loyalty within the City Council in addition to addressing any direct or indirect substantial financial conflict of interest. Casagranda objected to this direction and also stated she would have preferred to have this discussion with the mayor present. COUNCIL COMMENTS Shafer said the reception last night in Juneau went well. They had great attendance; people were excited about the SMIC expansion project. She spoke with Senator Giessel on funding possibilities, and she recommended a council letter be sent to each member to the senate finance committee and the house finance committee to help bring attention to the project. A lot of the younger staffers that attended the reception were less knowledgeable about the project, and upon learning more about it, they became very interested and excited about it. She thanked the companies that donated money towards this and said no city funds were expended on this reception. Casagranda looked forward to the opportunity to being involved on a Juneau level and to g pp Y g speaking on behalf of Seward more frequently. She was happy to speak and represent the City of Seward on the Kenai Peninsula Economic Development District and felt ready to move on to higher things. Long said attendance could have been better in Juneau, especially if he had made it to the airplane on time. He thanked those involved in supporting the reception. He met with the Department of Labor earlier today to go over some other aspects of work force readiness as was recommended to him. Long also met with Senator Steven's staff, who was still very much interested in Seward. He also met with Representative Osterman, who was a great fishing industries supporter. Valdatta commented on the highway by Girdwood and felt the biggest problem with accidents was tailgating. He wondered how they city could enforce that type of reckless driving better. Perhaps they could make signs and enforce it like they do with headlights and seatbelts. CITIZEN COMMENTS Sarah Aslam noted she read an article in Florida that showed the amount a driver would be ticketed if they were pulled over, to help encourage people to slow down. Joe Fong, Seward Providence Administrator, thanked the council for their time and deliberation and consideration on the resolution tonight. They had learned a lot in the last few days, so he appreciated them taking the time. It had also given him an orientation of the relationship City of Seward, Alaska City Council Special Meeting Minutes February 28, 2013 Volume 39 Page 95 between Providence Seward and the City of Seward. Fong would do the best he could to keep quality medical experience and finances up to speed p p eed for the residents of the Seward area. p Paul Rupple said regarding the conflict of interest laws, the council and community needed education more than anything, which he felt they received tonight. He noted it cost him $140 the last time he tailgated another driver. COUNCIL AND ADMINISTRATION RESPONSE TO CITIZEN COMMENTS - None ADJOURNMENT The meeting was adjourned at 8:32 p.m. -M GC S AA- mac, .1/ Jo anna Kinney, C 2darson Ci y Clerk Vice Mayor (City Seal) • s/ ,,,,, ,, as ha OF S: �'® s • cf , t °F • .r Y N`e . a 9 • f • ( .,., r' eb • • 3 : e • S• : �R •y �Wr..•s