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Council hears Rural Health Development plan as Pawnee City Assisted Living cited as out of compliance with lease
Summary
At the July 8 meeting the Pawnee City Council heard a plan from Rural Health Development to stabilize Pawnee City Assisted Living after the operator was described as not meeting lease cash-on-hand requirements; the council reviewed an auditor’s recommendations and discussed possible monthly financial review and board involvement.
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Mayor Charles Hatfield and the Pawnee City Council on July 8 heard a presentation from Matt Ross, vice president of Rural Health Development (RHD), about steps RHD could take to stabilize Pawnee City Assisted Living (PCAL).
RHD described its experience managing rural assisted-living facilities and offered to prepare a formal plan to address staffing, job descriptions, overtime reductions and financial controls. Council members said the city had already commissioned consultant Julie Bauman to produce a review and recommendations plan and noted that PCAL is currently not in compliance with the City/PCAL lease’s cash-on-hand requirements. Council Member Laura Poskochil read the lease provision requiring 60 days cash on hand during construction and 90 days after substantial completion and said the lease ties the calculation to GAAP and the lessee’s annual financial statements.
Ross said he had received Bauman’s consulting plan and would review it alongside RHD’s recommendations; Clerk Tamela Curtis provided Ross a copy of the lease. Ross and RHD staff offered to help write clearer job descriptions, review the chain of command and propose operational changes intended to reduce overtime and turnover. Mayor Hatfield and Council Member Susan Eisenhauer said the council would discuss with the city attorney whether monthly executive-session review of PCAL financials could comply with open-meeting laws and would advise Ross of that guidance.
Poskochil said she would like to serve as an active PCAL board member and help implement recommendations from Bauman’s report and the city’s earlier ad-hoc PCAL Advisory Committee; the council reaffirmed interest in collaborating with RHD and local stakeholders to keep PCAL operating. The council also reviewed PCAL meeting minutes and the June 26 PCAL agenda as part of ongoing oversight.
What happens next: Ross said he would contact Julie Bauman for more details, and the council will report back after consulting the city attorney about the permissibility and format of monthly financial reviews of PCAL. No change of operator or formal contract with RHD was approved at the meeting.
