Title
a. Accept a $2,429,682 Capital Implementation Grant Award from Central California Alliance for Health (CCAH) in support of the construction of outpatient cardiology and women’s diagnostic imaging clinics, expanding access to specialty care services for Medi-Cal members.; and
b. Ratify execution by the Deputy Purchasing Agent for NMC of an Agreement for Medi-Cal Capacity Grant, Grant Number 1116-NMC-CI, in the amount of $2,429,682, in support of the construction of outpatient cardiology and women’s diagnostic imaging clinics, effective as of the Grant Effective Date, remaining in effect so long as the Statement of Services of the Grant is in effect, and in any event terminating no earlier than one year after the date of the last payment made to Grantee or on Grantee’s behalf.
Report
RECOMMENDATION:
It is recommended that the Board of Supervisors:
a. Accept a $2,429,682 Capital Implementation Grant Award from Central California Alliance for Health (CCAH) in support of the construction of outpatient cardiology and women’s diagnostic imaging clinics, expanding access to specialty care services for Medi-Cal members.; and
b. Ratify execution by the Deputy Purchasing Agent for NMC of an Agreement for Medi-Cal Capacity Grant, Grant Number 1116-NMC-CI, in the amount of $2,429,682, in support of the construction of outpatient cardiology and women’s diagnostic imaging clinics, effective as of the Grant Effective Date, remaining in effect so long as the Statement of Services of the Grant is in effect, and in any event terminating no earlier than one year after the date of the last payment made to Grantee or on Grantee’s behalf.
SUMMARY/DISCUSSION:
Central California Alliance for Health (CCAH) established the Medi-Cal Capacity Grant Program to offer grants to health care providers and community organizations to support efforts that advance the mission of CCAH to provide timely access to quality health care services and to increase Medi-Cal capacity in the service area.
CCAH has awarded the Capital Program Implementation Grant (grant #1116-NMC-CI) to support the construction of outpatient cardiology and women’s diagnostic imaging clinics to expand access to specialty care services for Medi-Cal members, that will be located at 1441 Constitution Blvd., Bldg 400, 1st floor, Salinas, CA 93906. The Grant Amount shall not exceed $2,429,682.
The Building 400 projects were originally approved by the Board of Supervisors on March 1, 2016 with estimated costs. On November 1, 2016, after receiving the construction bids, NMC brought the projects back to the Board to approve an increase to the total cost driven by the bids received. The additional funding was approved by the Board at this time as follows:
1) Mechanical Upgrade Project: No. B16-2016-196
Total cost $844,381 approved (plus 10 percent contingency)
2) MOB Buildout - Floor One Project: No. B16-2016-093
Total cost $2,215,752 approved (plus 10 percent contingency)
The total of both projects combined is $3,060,583 (plus contingency). The total amount spent through March 2017 on these projects is approximately $1,523,963. The $2,429,682 in grant funds received via this agreement cover the majority of the costs for both projects.
NMC anticipates the Building 400 projects to complete and close out first quarter FY 2018.
OTHER AGENCY INVOLVEMENT:
County Counsel has reviewed and approved the grant agreement as to form and risk. The County Auditor-Controller has reviewed and approved the grant agreement. NMC did not have ample time to submit the grant agreement for review by the NMC Finance Committee and by NMC Board of Trustees due to a May 4, 2017 deadline by CCAH to return the grant agreement signed.
The construction projects associated with this item were reviewed and supported by the NMC Finance Committee on August 30, 2016, the NMC’s Board of Trustees on September 2, 2016, the county Capital Improvement Committee on September 12, 2016 and the county Budget Committee on September 28, 2016.
FINANCING:
Payments for the Capital Improvement Grant shall be made to the County by the Alliance according to the schedule provided below, subject to the receipt of all documentation reasonably required by the Alliance, and all other terms of the Agreement:
First Payment.
The first payment shall be based on costs for the major milestones described in the Grant Application and designated in the final project budget (Milestones), and outlined below. The first payment shall not exceed 45% of the Grant Amount, and shall be paid within twenty (20) business days of the receipt of the signed Agreement.
Interim Payments.
There shall be two additional interim payments based on costs for the Milestones outlined below. These payments shall be paid within twenty (20) business days of receipt of a progress report (narrative and original project budget versus actual expenses) and verification of project expenses incurred since the previous payment. Progress report should include documentation (e.g., project management report, inspection report, permit) demonstrating that specified milestones have been completed.
Final Payment.
Final payment of 10% of the Grant Award shall be paid within twenty (20) business days of the receipt by the Alliance of a progress report indicating that all Milestones of the project have been completed. The progress report will include a narrative, original project budget versus actual expenses, and verification of project expenses incurred since the previous payment. Progress report should include documentation demonstrating that the project is complete (e.g. certificate of occupancy).
BOARD OF SUPERVISORS STRATEGIC INITIATIVES:
__ Economic Development
__ Administration
X Health and Human Services
This grant provides financial support for the construction of outpatient cardiology and women’s diagnostic imaging clinics to expand access to specialty care services for Medi-Cal members which will lead to improved healthcare and promotes access to equitable opportunities for healthcare choices.
X Infrastructure
This grant allows for needed improvements to the hospital’s physical infrastructure. These improvements ensure that NMC maintains itself as a first rate medical facility which, in turn, enables NMC staff to provide quality medical care that leads to an improved quality of life for its patients and their families.
__ Public Safety
Prepared by: Julie Edgcomb, Bureau Chief, 796-1370
Approved by: Gary R. Gray, DO, Chief Executive Officer, 783-2504
Attachments:
1. Agreement for Medi-Cal Capacity Grant (grant #1116-NMC-CI)
2. Approved Capital Project Plan
3. Approved Capital Implementation Project Budget
Attachments on file with the Clerk of the Board