By SHANNON HAUGLAND
Sentinel Staff Writer
The Assembly at its regular meeting Tuesday will consider issuing a request for proposals related to the sale or potential lease of the former Sitka Community Hospital properties, among other items of business.
Another major issue on the agenda is first reading of the general fund budget, the internal service funds and special revenue funds for 2021-22.
The Assembly also will discuss a cell tower parcel lease, amending an employment agreement between the city and City Attorney Brian Hanson, and a supplemental appropriation for the Sitka Community Hospital dedicated fund.
The meeting is open to the public and starts at 6 p.m. at Harrigan Centennial Hall.
The meeting will begin with a six-month report from SEARHC President Charles Clement; and a special report on “fire mitigation recommendations” for waste shipments out of Sitka.
Hospital Property Sale
SEARHC approached the city last fall to purchase the properties and buildings at 209 Moller Drive, 202 and 204 Brady Street and 302 Gavan Street. SEARHC later asked to pursue the purchase through a competitive bid process.
City officials and the Assembly have been waiting for an appraisal to help make some final suggested changes to the RFP before sending it out. The appraisal was received by city officials April 30 and distributed to Assembly members but has not been made available yet to the public, city officials said.
The Assembly packet has a suggested Step 1 to “go into executive session to the independent appraisal” and the potential incorporation of the appraisal into the RFP.
“We’re going to be talking specific dollar values,” member Kevin Mosher said. “When negotiating regarding a business we should do that behind closed doors.”
The proposed Step 2 in the package suggests reconvening in regular session for the rest of the discussion.
The RFP allows respondents to submit a proposal for leasing or buying the properties. Assembly members had no consensus at their last special meeting on whether to give more weight to a lease versus a sale, when scoring the proposals. Some said they wanted time to consider the appraisal before making a decision.
SEARHC currently leases the 134,000 square feet in properties in which it provides a number of services, including long-term care, rehabilitation services (physical therapy, occupational therapy) and other outpatient services, in the former hospital building and SEARHC Mountainside Family Clinic next door.
Commenting today, City Administrator John Leach said he believes city staff has incorporated into the RFP “what the Assembly is looking for, based on feedback from the community in both the town halls and the (community) survey. I expect it to move forward with only minor modifications, if any.”
Early in the meeting, the SEARHC president and CEO Charles Clement will give a report on “integrated health care.” The Assembly approved an Asset Purchase Agreement and Lease Agreement in 2019, which made SEARHC the health provider for the community; SEARHC said it would keep the community informed through regular reports.
The two-page summary in the Assembly packet says the health consortium is working to expand services, including the expansion of specialty clinics. “Several new specialists will be traveling to Sitka from our partner medical organizations, ANMC and Swedish Medical Center. The expansion of specialty care includes three additional neurologists, three additional cardiologists, full-time orthopedic surgery services and more.”
Another section of the report talks about efforts to mitigate COVID-19, including through vaccinations and testing, with some 57,485 tests administered as of April 30 in Sitka alone.
The second page discusses plans to expand the hospital. SEARHC said the city will realize benefits through $1 million in electrical revenue, and increased economic activities.
Construction is expected from 2021 through 2024, opening in late 2024.
The Assembly is also taking up on final reading a $425,000 appropriation from the Sitka Community Hospital Fund to cover long-term contracts, legal expenses and increased unemployment costs for previous SCH employees.
The fund balance currently is in the red, due to restrictions on the fund related to the APA, but the fund balance is expected to increase over time once remaining liabilities are paid off and the requirements for lifting restrictions are met, the city finance office clarified.
First Reading on the Budget
The budget for 2020-21 is up for first reading at the Tuesday meeting. If the Assembly takes no action by 10 days before the end of the fiscal year, the budget as proposed by the administrator is automatically adopted.
The first meeting on the various budgets was in December, and regular work sessions and special meetings have been held since then.
“We feel like we’ve gotten all the feedback,” City Finance Director Melissa Haley said. “Unless (Assembly members) give us any changes this is the budget we’re coming forward with.”
The general fund is generally the source of the most debate and discourse. It includes funding for the schools, as well as public safety (police, fire), the library and public works, among other departments.
Enterprise funds are related to utilities (electric, sewer, water) as well as services that are supported by rates and fees, including harbors, the marine services center, and the Gary Paxton Industrial Park. Internal Service Funds are supported by charges to other departments in the city (IT, central garage and buildings).
The final version of the budget book was published earlier this month. Assembly member Valorie Nelson said she hadn’t had time yet to review the entire book, but planned to vote against approval.
“I just see us digging ourselves deeper and deeper into a hole,” she said.
Rebecca Himschoot said that, as a novice on the Assembly, she appreciates approaching the budget piecemeal through the work sessions and special meetings, and looks forward to the discussion.
“We’ve also been discussing it all along so I think it will be a limited discussion,” she said.
Mosher said he plans to vote in favor, and felt his questions had been addressed in previous meetings.
“It’s not perfect, but nothing is perfect; it’s a good budget,” he said.
