City and Borough Assembly

ASSEMBLY CHAMBERS CITY AND BOROUGH OF SITKA 330 Harbor Drive Sitka, AK (907)747-1811 Minutes - Final City and Borough Assembly Mayor Mim McConnell Deputy Mayor Matt Hunter Vice-Deputy Mayor Benjamin Miyasato Aaron Swanson, Steven Eisenbeisz Tristan Guevin, and Michelle Putz Municipal Administrator: Mark Gorman Municipal Attorney: Robin L. Koutchak Municipal Clerk: Colleen Ingman, MMC Friday, January 2, 2015 5:30 PM Assembly Chambers SPECIAL MEETING I. CALL TO ORDER II. FLAG SALUTE III. ROLL CALL Present: 6 - McConnell, Hunter, Swanson, Miyasato, Eisenbeisz, and Guevin IV. PERSONS TO BE HEARD None. V. NEW BUSINESS: A 14-245 Appoint an Assembly Member to serve the remainder of Phyllis Hackett's term until the results of the next regular election are certified on October 13, 2015 (individual will be sworn in if present) A motion was made by Hunter to nominate Orion Hughes-Knowles, Thor Christianson, Larry Crews, Michelle Putz, and Mitch McGraw to serve the remainder of Phyllis Hackett's term until the results of the next regular election are certified on October 13, 2015. Shannon Haugland of the Daily Sitka Sentinel requested the Assembly vote in public rather than by secret ballot. Michelle Putz, Orion Hughes-Knowles, and Thor Christianson thanked the Assembly for the opportunity to submit their names for the vacant seat. The Assembly offered thoughts on the process of filling a vacancy and thanked the applicants for applying. Ultimately, the Assembly decided to vote by voice vote in CITY AND BOROUGH OF SITKA Page 1 City and Borough Assembly Minutes - Final January 2, 2015 public. On the first round there was not a majority vote for any of the applicants. Christianson received 3 votes, Putz 2 votes, and Crews 1 vote. The Assembly proceeded with a second round in which Michelle Putz received 4 votes. Ms. Putz was sworn in and took a seat at the Assembly table. B 14-246 Update/Direction on Sitka Community Hospital matters Mayor McConnell announced an email had been received late afternoon from Sitka Community Hospital (SCH) CEO, Jeff Comer. Celeste Tydingco, SCH Board President, came forward to read his email. Comer relayed he had been physically attacked earlier in the day and therefore would not be at the meeting to provide an update on the matters of SCH. Comer, who had submitted his resignation December 30, shared his thoughts on the future of the Hospital and that he would be willing to help with a transition plan after he returned to Arizona. Administrator Gorman noted it was unfortunate there was misinformation circulating within the community. He urged the community to come together to help address the significant challenges and find solutions to address the healthcare of citizens. Tydingco stated the Hospital Board would be holding a special meeting on January 5 to formally accept Comer’s resignation and decide how to proceed. Mayor McConnell suggested the Assembly task the Administrator and Jay Sweeney, Chief Finance and Administrative Officer, with working on a transition plan. She noted the importance of continued communication between the Hospital Board, Assembly, City Staff, and Hospital Staff. Eisenbeisz commented he would like to see Gorman working side by side with the SCH Board and pointed out the Board was responsible for appointing a Hospital Administrator. He hoped the Board would come together and start the search for a new Administrator and develop a plan for moving forward. Hunter stated it was important to step back from the emotions and look objectively at the issue. He reminded that ultimately the liabilities of the Hospital were the liabilities of the City. Hunter suggested the Assembly direct the Administrator and Attorney to develop a plan on how to move forward. Miyasato hoped the Hospital Board would be mindful of some of the comments made by Comer regarding his resignation. He urged the Board to look at other ways to generate revenue. Miyasato reminded that transparency was crucial throughout the process. Gorman noted that with the agreement of the SCH Board, the critical issue was identifying a transition team, an agile team moving quite quickly to ensure that there was confidence and stability at SCH and that all patient care functions were moving forward and to ultimately determine a plan. He reminded the power to appoint a CITY AND BOROUGH OF SITKA Page 2 City and Borough Assembly Minutes - Final January 2, 2015 hospital administrator rested within the Hospital Board and he could only be active to the extent that the Hospital Board wanted that involvement. His professional view was that during this critical time the Hospital CEO should either report directly to the Assembly or the City Administrator. Eisenbeisz wondered how much money was left on the line of credit and how long that might last. Sweeney noted that $650,000 in payroll liabilities needed to be paid leaving approximately $400,000. He stated a cash flow forecast needed to prepared and suspected the Hospital would be asking for more money. Eisenbeisz also wondered on what level the community was willing to support SCH. Guevin noted the sense of urgency and the need to know the cash position moving forward. Ultimately the fiduciary responsibility was with the City. The general consensus was the Administrator, Chief Finance and Administrative Officer, and Municipal Attorney would meet to further develop a plan and keep the Assembly apprised of matters at Sitka Community Hospital. Public Comment: Ann Wilkinson - SCH Board member shared that charity care had decreased over the last few years. She shared Comer had been working to initiate point of service payment and she would like to see continued movement in that direction. Hans von Rekowski - SCH Board member offered the Hospital was beginning to collect money and urged the Assembly to give the Hospital a chance. There were many options to be explored. Beth Kindig - spoke in support of organizing a committee. VI. ADJOURNMENT A motion was made by Miyasato to ADJOURN. Hearing no objections, the meeting ADJOURNED at 6:38pm. ATTEST: ___________________ Sara Peterson, CMC Acting Municipal Clerk CITY AND BOROUGH OF SITKA Page 3