HomeMy WebLinkAbout2010-12-14 Government Operations Committee Minutes
Government Operations Committee
December 14, 2010
Minutes
Councilors: Blanchette, Gratwick, Bronson, Palmer, Longo
Staff: Conlow, Yardley, Nicklas
Others: Ken Huhn, Andy Sturgeon
1. Bangor Nursing and Rehabilitation Center
Ken Huhn, President of the Board for the Bangor Nursing and Rehabilitation
Center, provided an annual report on the Center. The facility was founded in
1828 and was owned by the City of Bangor until 1999. The City then appointed
a citizens committee to make recommendations on the facility and that
committee recommended that the organization be turned into a private, non-
profit corporation. It is operated as a standalone 51C3 since 2000 under a
master transaction agreement with the City. A portion of that agreement
allowed the accounts receivable, which were about $600,000, to be used as a
loan to the facility as operating capital. Since then, the $600,000 has been
repaid to the City. BNRC is as asset to the City and to the region. As part of
the master transaction agreement, there was $2.3 million in bonding previously
approved by the City to bring the facility up to code and to make improvements.
There is $600,000 remaining in that bonding agreement. The BNRC has been
profitable for the last four years. Huhn noted that Andy Sturgeon will be the
next President of BRNC taking over in 2011.
Huhn noted that a new strategic planning process has commenced for the
planning for future generations of patients. A new building will be needed. It is
an original military facility built in 1968. Plans are in place to make into a state
of the art facility. A capital campaign will be launched. Huhn reviewed a
financial report.
Responding to Bronson, Huhn noted that if the facility ever ceases to operate as
a nursing facility that the property would revert back to the City. Bronson noted
the success of the facility. Huhn attributed the success to much hard work and
planning, support of the local medical community, and staying with the
organization’s original mission – to serve everyone in the Bangor area including
the poor. Gratwick noted that the rehabilitation portion of the facility supports
the Medicaid population. Huhn said there is about a 30% Medicaid population.
Sturgeon noted that the overhead structure with Bangor Nursing staff and
management is way low compared to other organizations. Longo noted that
Health and Community Services leases space from the BNRC. Huhn noted that
the City is the only tenant at the moment. Huhn noted that their accountant had
suggested a rental rate increase. Sturgeon talked about the new strategic plan
and, what results from that, will be what the facility plans will be for the future.
He also stressed that there will not be a new facility but an updating of the
current facility as well as a possible addition. Some BNRC Board members have
building experience. Palmer spoke about the successful story of the transition.
The BRNC appoints their board members. Responding to Longo, Huhn provided
the facility’s contact information for anyone who might want to tour the facility.
Blanchette spoke about the success of the facility and agreed that it needs to be
updated.
2. Winter Emergency Fund
There has been a request for the City of Bangor to act as Fiscal Agent for a
Winter Emergency Fund for housing needs. Yardley noted that in past years,
Maine State Housing has provided funding to the Bangor area for winter
emergency housing needs not easily dealt with through other resources. That
funding is no longer available. He said that a number of organizations and
churches are seeking donations to replace this funding. Community Health and
Counseling Services has offered to continue to be the point of contact for those
in need, but has asked the City to serve as the fiscal agent for the donated
funds. Although an unusual request, if the City is the fiscal agent, other
organizations will be better able to solicit donations for this Winter Emergency
Fund without impacting their own fundraising efforts. Yardley noted that he has
talked with Finance Director about this request. In response to Gratwick, Yardley
clarified that pay-it-forward and this request are separate. A motion was made
and seconded to approve staff’s recommendation. The vote was unanimous.
The item will move forward to the City Council for final action at their meeting of
th
December 27. Conlow suggested that the Order will be prepared with rules in
place with the assistance of the Finance Director. Yardley asked if the
organizations can go ahead now to start their fundraising prior to the December
th
27 Council meeting. Blanchette noted that the five Councilors in attendance
agreed with Yardley moving forward.
Adjourned at 5:48 pm.