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File Reference Number: 4652-3 TT 960229
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ADMINISTRATIVE REPORT
Date: February 27, 1996
Dept. File No. C611
TO: Vancouver City Council
FROM: Manager of Non-Market Housing, in consultation with the
Director of Legal Services and the
General Manager of Human Resource Services
SUBJECT: Transfer of Cordova House Continuing Care Facility
to The Wilberforce Cooper Care Society
RECOMMENDATION
A. THAT Council approve the transfer of the operation of
Cordova House from the City to The Wilberforce Cooper Care
Society (WCCS) effective April 1, 1996 or as soon as
possible thereafter on the following terms and conditions:
1. The City transfer the non-fixed capital assets situated
at Cordova House valued at $153,940 (depreciated value
at December 31, 1995 as shown in Appendix A attached
hereto) plus other physical assets not on inventory but
in the facility, excluding residents' personal
belongings, be transferred to the WCCS for the nominal
fee of $1.00.
2. Accumulated operating surplus to cover 100% of real
liabilities (vacation, gratuity, statutory and
compensating time) and 50% of contingent liabilities
(sick leave) for employees who transfer to WCCS
estimated as $118,097 as at February 1, 1995 be
transferred to WCCS. Source of funds to be from
combined accumulated surpluses of Taylor Manor and
Cordova House.
3. WCCS offer employment to all City employees whose
worksite is Cordova House (except the Administrator for
whose services WCCS proposes to contract with the City
for 12 months).
4. The City contract to WCCS the services of the
Administrator for 12 months, subject to his continued
availability.
5. The City assign to WCCS obligations for administering
the Operating Agreement dated April 25, 1975, with BC
Housing and Canada Mortgage and Housing, and the
General Manager of Community Services be authorized to
sign the Amending Agreement.
6. The City give notice to the Ministry of Health,
Vancouver Health Board and Community Care Facilities
Licensing that the City of Vancouver will cease to
operate Cordova House, effective the transfer date.
7. The City assign, convey or transfer to the WCCS such
other interests, obligations and documentation
including the food service contract, personnel records
and residents files and trust funds, as deemed
appropriate by the General Manager of Community
Services, effective the transfer date.
8. The WCCS enter into a new operating agreement with the
Ministry of Health, Continuing Care Division, and apply
for a new license from Community Care Facilities
Licensing.
9. The City indemnify WCCS for any liabilities which might
arise from events occuring prior to the transfer date.
When the City operated Cordova house, liabilities were
covered by the City's self-insurance program.
Accordingly, the City would cover liabilities incurred
prior to the transfer date and would indemnify WCCS for
these liabilities. (Staff are unaware of any potential
claims which predate the transfer date.)
10. Such further and other arrangements as seen on
appropriate to the General Manager of Community
Services and the Director of Legal Services.
B. THAT Council authorize the General Manager of Community
Services and/or the Director of Legal Services to execute
the necessary documentation to effect the above
recommendations. No legal obligation shall arise until the
documentation is fully executed.
C. THAT Council instruct the General Manager of Community
Services to report back on options to deal with the
shortfall in administrative fees.
GENERAL MANAGER'S COMMENTS
The General Manager, Community Services RECOMMENDS approval of A,
B and C.
COUNCIL POLICY
There is no applicable Council policy.
PURPOSE
This report recommends that Council approve the transfer of the
sixty-six-bed City-operated continuing care facility Cordova House to
The Wilberforce Cooper Care Society, effective April 1, 1996, or as
soon as possible thereafter, on the terms and conditions negotiated to
the satisfaction of the General Manager of Community Services and the
Director of Legal Services.
BACKGROUND
On April 25, 1975, the City signed an agreement with the Province,
CMHC and GVRD to develop and operate housing for hard-to-house
residents of the Downtown Eastside. Since 1978, Cordova House has been
operated by the City and is licensed under the Community Care
Facilities Licensing Act. Cordova House is owned by the Federal and
Provincial Governments (CMHC and BCHMC). Cordova House operates at no
cost to the City with funding from the Ministry of Health, the
Federal/Provincial Housing Partnership and resident user fees.
On November 14, 1995, Council approved the transfer of the Vancouver
Health Department to the Vancouver Health Board, effective January 1,
1996. As a result, the City decided to withdraw from health services,
and an alternative operator for the City-operated continuing care
facilities Taylor Manor and Cordova House had to be identified.
DISCUSSION
1. Transfer to a Non-profit Society
Options considered were transfer to the Vancouver Health Board;
creation of a new non-profit society; or transfer to an existing
non-profit society. The Vancouver Health Board was not prepared
to manage any care facilities. Creating a new society was
contrary to the objectives of health regionalization which
includes integration, consolidation and mergers. Consequently,
transfer to an existing non-profit society experienced with
continuing care was deemed to be the best solution and was the
preferred option of the Vancouver Health Board. As the assets
were purchased from Provincial and Federal funds, the City has
not incurred costs in building or operating Cordova House and
would not expect to receive compensation for the transfer of the
facility and its assets.
2. The Wilberforce Cooper Care Society
Interest in assuming responsibility for Cordova House was
explored with several facilities within the same Community Health
Committee region. WCCS seems to be the best "fit" since its
facility, Cooper Place, is an accredited continuing care facility
for seniors located on the same City block as Cordova House. The
geographic proximity would be an advantage for service
integration. The WCCS is experienced and dedicated with a strong
focus on the importance of quality care for the residents. Their
Mission, Process, Purpose and Philosophy are attached as Appendix
B, for Council's information. WCCS is also an equal opportunity
employer that provides training and development for its
employees. The WCCS is financially healthy with a Board that
takes its responsibilities seriously.
WCCS has agreed to include on its Board, representation for
Cordova House. The WCCS Board presently has representatives from
St. James Social Services, First United Church, and a Provincial
Government appointee. They propose to request two more
government appointments for which their Constitution and By-laws
provide. They would recommend that these appointees have
knowledge and experience with problems common to the Cordova
House clientele such as alcohol and drugs, mental health and
complex behavioural problems, and will instruct their Nominating
Committee accordingly. It is expected that these appointees will
be confirmed at their Annual General Meeting in June.
3. Transfer of Operating Agreement
At the City's request, BCHMC and CMHC will amend the Operating
Agreement to transfer the administration of Cordova House to
WCCS. The City must agree to assign responsibility to WCCS, and
the General Manager of Community Services should be authorised by
Council to sign the Amending Agreement. The land and buildings
are owned by the BCHMC and CMHC partnership, which subsidizes the
building and maintenance costs of the operations.
4. Transfer of Capital Assets
The physical assets located at Cordova House including a vehicle,
computers, beds, dishes and floor polishers, were purchased with
funds from BCHMC or the Ministry of Health and should transfer
with the facility. The inventory of capital assets appended is
not comprehensive and only includes items with a capital value of
$500 or more. The December 1995 depreciated value of these items
are $153,940. The remaining physical assets while not listed on
the inventory and not valued, have also been purchased with
Federal and Provincial monies and should remain with the
facility. Accordingly, WCCS shall pay the City only a nominal
fee for the transfer of all capital assets.
5. Transfer of Accumulated Surplus
During the years of operating Cordova House, the City had
accumulated a healthy surplus. Funds from this accumulated
surplus were approved in 1993 and 1994 to sprinkler the building,
purchase a paratransit vehicle and computers. At the end of
1995, there were $176,891 remaining in the surplus.
Taylor Manor, the other City-operated continuing care facility
which is being transferred to a different non-profit society,
also has an accumulated surplus but has been drawing down its
surplus due to a sustained vacancy of two to three beds for the
last two years because of the building's inadequacies for
increasingly frail intermediate care clients. Taylor Manor has
only $29,301 remaining in its accumulated surplus as at December
31, 1995.
In the City's negotiations with the two non-profit societies, it
has become clear that the societies require indemnification from
liabilities accumulated by the City. The City has accumulated
both real and contingent liabilities for which no accruals were
made. The value of the total vacation, sick and other leave
accumulated for Cordova House as at December 31, 1995 is
$276,507. The value of the owed time for employees who are
expected to transfer to WCCS is $201,087. The Ministry of
Health's share is $176,795. The B.C.H.M.C.'s share is $24,292.
As B.C.H.M.C. has indicated they are prepared to assume
responsibility for their share, the $24,292 is not a concern.
While the combined Ministry of Health's surpluses of $206,192 as
at December 31, 1995, are not sufficient to cover 100% of the
combined Ministry of Health's liabilities of $297,694, there is
only a shortfall of $6,988 to cover 100% of the real liabilities
and 50% of the contingent liabilities for employees expected to
transfer. Furthermore, having implemented budget reduction
measures in the latter part of 1995 and early 1996, the surplus
for the first three months of 1996 should be sufficient to cover
the $6,988 shortfall.
With the approval of Continuing Care, the City will combine the
surpluses of both Cordova House and Taylor Manor and transfer
with each facility, sufficient funds to cover all the real
liabilities and half the contingent liabilities. This amounts to
$118,097 for Cordova House and $95,083 for Taylor Manor.
Indications are that the Ministry of Health will fund any
exceptional expense such as severance or extended sick leave for
employees who have transferred to the societies for which the
societies may be unable to pay.
6. Employees
The WCCS has advised that with the exception of the
Administrator, they intend to offer employment to all the
employees of Cordova House. Once the Transfer Agreement is
signed, the City will notify its employees of the decision to
cease operating Cordova House and WCCS will send offers of
employment. Not all employees are expected to accept the offer.
Rather, employees with qualifica-tions that are likely to find
alternate work with the City may choose to remain with the City.
Employees who choose not to accept the offer of employment with
WCCS will remain the responsibility of the City. It is expected
that those who choose to remain with the City will be easily
relocated.
During the transition, The WCCS would like to contract for the
Administrator's services from the City. It is recommended that
Council approve a 12-month contract with The WCCS subject to the
continued availability of the Administrator.
7. Formal Notice of Transfer
The City should notify the Ministry of Health, the Vancouver
Health Board and Community Care Facilities Licensing that the
City intends to cease operating Cordova House effective the
transfer date and that The WCCS will be applying for a license,
an operating agreement and funding.
8. Other Obligations
To provide for the transfer of personnel records, resident files,
trust funds, insurance, warranties, and contracts, Council should
authorize the General Manager of Community Services to convey or
transfer to The WCCS such other interests, obligations and
documentation as he deems appropriate.
9. Other Terms and Conditions
Council should authorize the General Manger of Community Services
and the Director of Legal Services to make such further and other
arrangements as seem appropriate and one or both to execute the
necessary documentation to effect the transfer of the operation
of Cordova House.
10. Administrative Fee Charged to Cordova House
In 1995, the City received $59,400 from the Provincial Government
for the administration of Cordova House. With the transfer to
WCCS this income will no longer be available to the City. The
General Manager of Community Services will report back on options
to deal with this shortfall in April.
CONCLUSION
With the transfer of the two City-operated continuing care facilities
(Cordova House and Taylor Manor) the City will effectively complete
their withdrawal as a provider of health services. The City's
obligations for Cordova House can be transferred to The Wilberforce
Cooper Care Society which is prepared to assume these obligations
provided the terms and conditions they require to continue operating
the facility are met. This report recommends that Council approve the
transfer of the operation of Cordova House to The Wilberforce Cooper
Care Society on the above terms and conditions.
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