Loading...
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.