Number
050370
Version
Original
Reference
031612
Sponsor
THE CHAIR
Title
Resolution to amend an agreement attached to resolution 031612, authorizing the use of Community Block Grant Reprogramming funds for health care of uninsured persons and Milwaukee Health Services, Inc.
Analysis
This resolution amends an agreement attached to resolution 031612, authorizing the use of Community Block Grant Reprogramming funds for health care of uninsured persons and Milwaukee Health Services, Inc., by releasing Milwaukee Health Services, Inc. from its requirement to hold a letter of credit.
This provision, included in the Service Agreement between the City of Milwaukee and Milwaukee Health Services (MHS), Inc., requires Milwaukee Health Services, Inc. to obtain and hold a letter of credit in the amount of $93,000 which can be drawn upon by the City in the event that any final settlement by the Centers for Medicare and Medicaid with Milwaukee Health Services, Inc. results in a negative balance.
Body
Whereas, Resolution 030162, adopted April 13, 2004, declared the intent of the Common Council to allocate $150,000 in 2004 Community Block Grant reprogramming funds to Milwaukee Health Services, Inc. for the purpose of providing health care to uninsured persons; and
Whereas, Resolution 030162 included an attachment that amended the service agreement between the City of Milwaukee and Milwaukee Health Services, Inc.; and
Whereas, The amended service agreement required that, in order to provide financial protection to the City of Milwaukee in the event of negative cost adjustments against Milwaukee Health Services (MHS) by the Centers of Medicare and Medicaid, Milwaukee Health Services was to obtain a letter of credit in the amount of $93,000 which could be drawn upon by the City in the event that a program year ended with a negative balance for MHS in its financial obligation to the City; and
Whereas, Legacy Bank, 2102 West Fond du Lac Avenue, Milwaukee Wisconsin, holds Letter of Credit #12, dated June 30, 2004, and Milwaukee Health Services is requesting release of this letter of credit; and
Whereas, The letter of credit is a condition of the receipt of $150,000 in Community Block Grant reprogramming funds that must be approved by the Common Council; now, therefore, be it
Resolved, By the Common Council of the City of Milwaukee, that the service agreement attached to resolution 030162 is amended by deleting the provision that Milwaukee Health Services must obtain and hold a letter of credit in the amount of $93,000; and that the appropriate City officials are authorized to execute this amendment, substantially in the form attached to this resolution, with such revisions as may be approved by the City Attorney.
Requestor
MHD
Drafter
LRB05250-1
mar
06/13/2005