Daily Sitka Sentinel

Assembly Closes Doors For Talk On Hospital

By SHANNON HAUGLAND
Sentinel Staff Writer
    The Assembly met in executive session Thursday night to discuss a letter of intent and negotiating strategies related to SEARHC ’s proposal to purchase the health care business of Sitka Community Hospital.
    After about three hours, the Assembly returned to open session and voted to hire an outside attorney and to draft an ordinance appropriating $150,000 to cover attorney fees. The attorney is to be named later.
    “We discussed the hospital letter of intent and negotiating strategies and heard from staff, and the consultant about best practices and concerns,” Mayor Matt Hunter said, summarizing the executive session. “It was a good discussion and I feel comforted on the path we’re going, and discussion we’ve had to figure out how to protect Sitka, and the people of Sitka, and make it a positive outcome for everyone.”
    The Assembly has moved into Phase III of the request for proposals process, with the goal of signing a nonbinding letter of intent, and SEARHC and the city working together toward completion of due diligence “with the objective of drafting and entering into an exclusive agreement that best satisfies the objectives of CBS (City and Borough of Sitka) and the selected proposer,” according to the city’s summary of the RFP process. The request had been for proposals from health care entities interested in managing, affiliating with or purchasing Sitka Community. The Assembly on Aug. 28 voted 6-1 to go with the SEARHC proposal to purchase the hospital business.
    Attending the executive session Thursday night were six members of Assembly, City Administrator Keith Brady, City Clerk Sara Peterson, consultant Sarah Cave, and City Attorney Brian Hanson. City Finance Director Jay Sweeney was invited in at 8:10 p.m. Richard Wein, who attended by teleconference, was traveling and had to leave the meeting at 8:25 p.m.
    The vote was 5-0 to hire an attorney, with Hunter, Ben Miyasato, Aaron Bean, Kevin Knox and Bob Potrzuski voting in favor. Steven Eisenbeisz was absent because he was attending the Southeast Conference meeting.
    There was some discussion at the outset of the meeting about whether to go into executive session.
    Hanson said the Assembly could meet in open session, but it was not considered “best practices,” on matters such as this, when the Assembly might be discussing items it doesn’t want other parties to hear. The vote was 5-1, with Wein against, to go into executive session.
    Assembly members said once the Letter of Intent was finished, it would be released to the public. But at this point, when there will be negotiations over details, it made more sense to meet in executive session.
    Bean said he would be in favor of releasing the draft of the letter to the public, but expects some issues about the city’s position needs to be discussed in private before then.
    Kevin Knox agreed.
    “We have a lot to negotiate here,” Knox said. “Some of it, we don’t want to show our cards.”
    Wein voted against, saying he believes the items that would be discussed were already known to both the city and SEARHC.
    “There’s no reason not to have complete transparency,” he said. “Our cards have been shown from Day One. I can’t imagine the things that are possibly said that would be so controversial” not to be said in public.
    A few members of the public testified about the executive session before the Assembly voted in favor.
    Hunter said at the end of the meeting the public can expect a number of discussions to take place behind closed doors at this stage of the process.
    “As the Assembly is working through the negotiations phase, a lot of discussions will be held in executive session,” he said. “I understand the community’s nervousness. ... Until we get something (both parties) can sign, a definitive agreement in the coming months, it’s important we’re able to protect the community’s interest.”