ITEM TITLE:
Approval of Hospital Project Expenditures in an Amount up to $6,375,000
SUBMITTED BY: Nathan Duval, Assistant City Manager / Capital Facilities Director
FISCAL NOTES:
Expenditure Required: $6,375,000
Unencumbered Balance: $9,720,145
Funding Source: Providence Valdez Medical Center (PVMC) Fund
RECOMMENDATION:
Approve hospital project expenditures in an amount up to $6,375,000
SUMMARY STATEMENT:
Providence Valdez Medical Center (PVMC) is seeking approval to make an alteration to the current facility.
The attached project list reflects the projects discussed during the 2023 Hospital Projects Work Session. Some of these projects have been approved in prior years with funding previously appropriated and completed designs. The funding usage is contingent upon workload of Providence project management staff, consultants and contractors. Expenditures may span multiple years through construction.
The attached list indicates the projects for approval and the necessary 2023 appropriation. This is an amendment to the 2023 Capital List approved with the 2023 Providence budget.
The funding source of these projects will be PVMC Fund in excess of required and reserve Days Cash on Hand (Days COH).
Total (unaudited) Fund Balance: $16,094,010
Fund Balance less 90 Days Required COH: $11,313,611
Fund Balance less 120 Days Reserve COH: $9,720,145
Pursuant to Section 4(d) of the Management and Operating Agreement between Providence Health & Services and the City of Valdez, notification of alterations requiring substantial expenditure must be approved by the City.
4(d) Alterations. Providence shall have the right to make alterations, additions, improvements and renovations to the Health Care Facilities, the costs of which shall be recoverable as Reimbursable Expenses, provided: 1) Providence shall notify the City with respect to any such work requiring any substantial expenditure; 2) Such work shall not adversely affect the structural integrity of the Health Care Facilities or diminish the value thereof; 3) Any such work shall be performed in a good and workmanlike manner and in conformance with all applicable building, fire and health regulations; and 4) The City shall have approved in writing such work in advance, such approval to not be unreasonably withheld.