HomeMy WebLinkAbout2013-06-13 Commissioner MinutesTHURSDAY, JUNE 13, 2013
The Franklin County Commissioners met Thursday, June 13, 2013, with the
following members present: David S. Keller and Robert G. Ziobrowski. Chairman Keller
presided and after calling the meeting to order, a Moment of Silence, and the Pledge of
Allegiance proceeded with the business of the day.
Chairman Keller asked to include Chairman's time to answer a few questions
from past meetings to the agenda. On a motion by Robert G. Ziobrowski, seconded by
David S. Keller; unanimously approved to adopt the amended agenda.
Chairman Keller wanted to answer the following questions: James
Wyrick asked if the County has a contingency plan in place if Federal and State funds
are significantly reduced. Chairman Keller answered that the County does have a plan
in place but it's not based on specific dollar cuts but do have a strategy to determine
how to most effectively allocate funds that have and have done this the past couple
years; Allen Piper asked about the Human Service Training Day contract with Rhodes
Grove and how many attend? Chairman Keller answered that the annual event typically
has 200 folks participating and there is a combination of county employees and folks
who work for various human service agencies in the County. In reference to if it could be
held in a county building, the answer is no due to having 200 folks and serving food it
could not be done in a county facility; Mr. Piper asked about the Waiver program.
Chairman Keller explained that the program is authorized through the State where
Medical Assistance dollars can be tasked for various programs. The programs consist
of: Home & Community Habilitation, Residential Habilitation, Companion, Day Services,
Supports Coordination, Employment Services, Nursing, Therapy, Behavioral Supports,
Respite, Transportation, Home & Vehicle Adaptations, Assistive Technology,
Administrative Services (Agency with Choice); Mr. Piper asked what is an administrative
entity operating agreement and Chairman Keller responded it's an agreement between
the Commonwealth of PA and the County to operate these programs for the County and
in turn the County will be reimbursed for the services provided. Chairman Keller said he
has a few other questions to answer but will follow up at a later date.
Bob Lundy, has a comment /statement about the Falling Spring Nursing &
Rehabilitation Center. His wife Marie has been there for 2.5 years and he is very
pleased with the facility. He is concerned because they have a good handle on the
facility. There are a lot of people on Medicaid and high percentage are immobile,
incontinent with frequent skin breakdowns, and require feeding. He didn't get where
he got in life by being naive. He said there is no way that any for - profit will be able to
do what the County home is doing now, some services will have to suffer — the key is
for - profit. They will accept who is there now but when the most vulnerable pass on, if
they want to show a profit they will not be replaced in kind by the same type of people.
There is no way they will provide for this type of resident — may take 2 -4 years but mark
his words the face of the facility will not be the same. Mr. Lundy thanked them for their
time and he hopes that things work out as the Lord wants them to workout.
On a motion by Robert G. Ziobrowski, seconded by David S. Keller; unanimously
approved all bills presented and ordered paid.
On a motion by Robert G. Ziobrowski, seconded by David S. Keller; unanimously
approved the minutes of June 4, 2013 and June 6, 2013 meetings.
Continued on page 2
The Board reviewed Fiscal matters. On a motion by Robert G. Ziobrowski,
seconded by David S. Keller; unanimously approved the Supplemental Appropriation in
the amount of $32,000.00 to reflect reappropriation of funding in the Human Services
Block Grant. This appropriation is moving funds from mental health operating expenses
to the Homeless Assistance Program (HAP) for rental assistance and shelter support
and to record the corresponding expenditures.
The Board reviewed Human Services Administration /Grants matters. On a
motion by Robert G. Ziobrowski, seconded by David S. Keller; unanimously approved
the Assurance of Compliance to PA Department of Public Welfare to comply with State
Fiscal year 2013 -14 Block Grant requirements and the Board approval of the draft 2013-
14 Block Grant Plan.
The Board reviewed Information Technology Services matters. On a motion
by Robert G. Ziobrowski, seconded by David S. Keller; unanimously approved the
proposal from Dell to purchase 1 laptop computer and 10 desktop computers to
replace 8 computers and add 3 new computers in the Information Technology Services
Department at a cost of $14,552.01. Dell is on the Co -Stars State contract listing.
The Board reviewed Jail matters. On a motion by Robert G. Ziobrowski,
seconded by David S. Keller; unanimously approved the amendment to the contract
between the County of Franklin and Trinity Services Group, Inc. for an increase for
inmate meals, based upon the Bureau of Labor Statistics Consumer CPI, US City
Average Food Away From Home Table for the period of June 1, 2013 through May 30,
2014, for an increase of 2.3 %.
The Board reviewed Transportation matters. On a motion by Robert G.
Ziobrowski, seconded by David S. Keller; unanimously approved the Federal Fiscal Year
2013 Certifications and Assurances Signature Page to the Pennsylvania Department
of Transportation for the Federal Transit Administration Assistance Programs for
the County to be in compliance with all Federal statutes and regulations and follow
applicable Federal Directives on each application the County makes to the Federal
Transit Administration for Federal Fiscal Year 2013. This is required because Franklin
County Transportation has been approved a capital grant for the shared ride program for
contract year 2013 -2014.
In accordance with PA Acts 67, 68 and 127 notifications, Carl Bert & Associates
notified the County of a Pennsylvania Department of Environmental Protection NDPES
Permit application being applied by Cameron S. Pederson for construction of a utility
barn and shop building serving existing agricultural operations on property located in
Metal Township.
In accordance with PA Act 14 notifications, Valley Quarries, Inc. notified the
County of a Pennsylvania Department of Environmental Protection Air Quality Permit
application being applied for Plant #1 site located on Mt. Cydonia Road on property
located in Guilford Township.
In accordance with PA Acts 67, 68 and 127 notifications, David Black Associates
notified the County of a Pennsylvania Department of Environmental Protection NDPES
Permit application being applied by Franklin County General Authority to remove two
existing concrete culverts that cross the Conodoquinet Creek on Letterkenny Dam
access road and construct two steel bridge structures on property located in Lurgan and
Letterkenny Townships.
Continued on page 3
The Board held the second public meeting on the possible sale of the Falling
Spring Nursing and Rehabilitation Center.
Jay Wenger of Susquehanna Group Advisors, Inc., Harrisburg was present today
and gave his presentation that he gave on Tuesday for the benefit of anyone in the
audience that didn't see it.
After the presentation, Chairman Keller opened the floor for public comments.
Ken Jones asked if the County cannot make a profit in the nursing home
business how would private ownership? He said since the Board announced the
news on Tuesday, there is not adequate time for folks to respond. The profit aspect
will control the sale of the facility and the Affordable Care Act will have most effect on
nursing home care. Mr. Jones mentioned that we will have more bureaucrats making
medical decisions as it showed in the young girl that needed a lung transplant. He is
concerned that government bureaucrats will be making decisions that Dr.'s and patients
should be making. He said for profit homes are not in business to lose money and
Medicare and Medicaid will be cut. Focus is misdirected private vs. nonprofit when they
will be government owned anyway.
Jim Wyrick said that according to Mr. Wenger's presentation, costs to the county
have been expanding. Mr. Wyrick asked if part of the evaluation of sale is to look at
projected cost to the County, do they have a three to five year projected cost of funding
programs? The high level of care at the nursing home will be hard to support. Due
diligence should be made in making this decision.
Sheri Morgan said she will be providing a written commentary on offering her
ideas for funding solutions. She said this is a safety net service and nursing home of
last resort. Big savings come with economy of scales. Since they are County owned do
they get discounts with purchasing or share purchasing with other healthcare providers?
Could the nursing home have agreements with other systems of care and join them with
their purchasing? She knows there are different discount purchasing arrangements
for contracts with the State contract. Chairman Keller said that they do participate
in consortiums where other municipalities in state have a right to buy products. Ms.
Morgan asked if they can join other systems of care outside of county like Keystone
Healthcare? Jay Wenger responded that it would be rare that competitors join forces
to share services. Counties do benefit from County Commissioners Association of PA
(CCAP) who offer grants to counties for improvements of nursing home. These Grants
are to downsize county beds where there were counties trying to get rid of county owned
homes. Ms. Morgan said they may be morally obligated to provide these services. She
will put her comments in writing but the County is morally obligated to provide for the
most frail disadvantaged citizens. She also mentioned that recently graduated nurses
are having a hard time finding a job. It's not the great opportunity for nursing as they
think it is.
Mr. Wyrick said Commissioners are hoping that the public gets involved, but he
reviewed some recent reports looking at Obama care. One thing that stuck out with him
is that Obama Care has been a hot topic for years but 42% of Americans are unaware
of this law after all these years and 49% said they don't have enough information to
comment about it. Says a lot about our citizenry.
Continued on page 4
Allen Piper had a few questions: could a buyer buy a nursing home for
another purpose and would Commissioners consider an RFP for anything other than a
nursing home? Chairman Keller said no, the intent is that FSNRC will continue to be
operated as a skilled nursing facility. Jay Wenger responded that they would not accept
anything for other than this purpose. Mr. Piper asked if there are any plans for the
money from the sale, any plans for a property tax reduction? Have they discussed this?
What percentage does the consultant get at time of sale or agreement? Mr. Piper
wanted to comment what was already stated today that it's not enough of time, since
first time heard about this was Tuesday. Would like to make notice that there should be
ample time that this not be fast tracked. Mr. Piper asked if there is a meeting again next
week. Chairman Keller said there will be opportunity during this meeting on Tuesday
morning of June 18th and at Administration Annex at 6:00 p.m. and Thursday, June 20th
at 10:00 a.m.. Mr. Wenger wanted to respond to the question about sale proceeds. He
said 10 Million is high end and 6 million is low end and there is 2 million needed to settle
debt so will net about 4 million to decide what doing with but he said to keep in mind, it
eliminates the annual contribution from the general fund that will free up money to not
have a tax increase so it will help maintain taxes where they are. What they do with net
proceeds has not been discussed or determined. Chairman Keller added that a
reduction in the millage would be considered if it was prudent based on the final
outcome of any sale. The board is not giving a possible sale consideration to satisfy any
specific long -term needs and there are no projects in line that the proceeds of a sale
would be used for. The board has not discussed the disposition of any proceeds. The
priority here is to determine if there are nonprofit and for - profit entities going forward that
will take similar Medicaid resident census and keep employees. Adams County's
approach was very similar as home was not sold to highest bidder.
Commissioner Ziobrowski said there are two points: the moral obligation
to go forward. He said the Board of Commissioners takes money seriously, and
recognizes that there may be potential profit from a nursing home sale, as well as
operational savings. But in the long run, considering Medicaid funding and the state
incentivizing counties to reduce beds, should the county remain in the nursing home
business? He asked Mr. Wenger how a private company can invest over $35,000 per
bed when counties cannot even break even? Mr. Wenger responded that someone
coming in to buy will already own and operate other nursing homes so they may own
1,000 nursing home beds, its economies of scale. Second, counties are not as
aggressive at providing services, the entity coming in will actually expand services.
They look at every reimbursement they can get. They are spreading overhead over a
broader spectrum of resident's county wide. Reasons to expand are interest rates are
very low and doing this at 100% loan value. Commissioner Ziobrowski said that the
State has compensated counties if they reduced number of beds. He also noted the
difference in state funding for county homes versus private nursing homes so there is a
slight advantage to not be a county owned facility. Mr. Wenger said if county
government says they are making money, he believes they are not properly allocating
funds. Very difficult to own and operate a skilled facility. For profit entities operate just
as county owned facilities and are familiar with how we own and operate. Their
business model is the same.
Jay Lightfoot said he agrees with comments by Piper, Jones, and Wyrick and
asked that the county pull out the weed behind the Vietnam War monument.
Jim Wyrick asked if all employees at nursing home are County. Chairman Keller
said all but 15 are county employees. Jay Wenger said there would be a savings on
employee end of budget as well.
Continued on page 5
Barb Cleary, daughter of Fred Rock, former commissioner, said her dad had a
great deal to do with establishing the current nursing home. She came to represent her
family. She is here to represent the other residents. This is considered a home to them,
which is largely due to efforts of staff and administrators and the Commissioners. She
has listened carefully to comments being made today. Board has determined that it is
not necessary for County to own and operate a nursing facility but County Code requires
counties to care for the indigent. She said there is a major difference. She said the
Board states that a buyer needs to share the Counties perspective. She hopes that they
consider everything stated today. She challenges them today to do what is right and
respectfully consider how the aspect of this will affect the residents and families. She
said that putting this out to the public is appreciated.
Sheri Morgan said the reason a potential buyer is able to buy at a reduced rate
is because tax payers subsidize that. It's a surprise that the employees aren't organized
so they need to get organized quickly. When these sales happen is there much
organized labor organization? Mr. Wenger said this has not happened in his experience,
the employees have been very satisfied with new ownership. Chairman Keller wanted
to answer the question from Mr. Piper about consultant fee if county moved forward. He
said a contract will be publicly reviewed after all public meetings and it will be reviewed
what the fee will be at that time. Mr. Wyrick's comment about costs for years will be
addressed at a subsequent meeting.
Commissioner Ziobrowski mentioned that Mr. Wenger's presentation estimated
that the operation of the nursing home would cost the county general fund over
$900,000. He noted that that figure is a budgeted number, not an actual figure. He
noted that over the years the actual costs by the end of the year have not been as high
as budgeted because of good management.
The meeting was adjourned at 11:15 a.m. with a motion by Robert G. Ziobrowski;
seconded by David S. Keller.
FRANKLIN COUNTY COMMISSIONERS