FRASER VALLEY REGIONAL HOSPITAL DISTRICT BOARDPOST MEETING AGENDA

Wednesday, March 18, 20157:00 pm

FVRD Boardroom, 45950 Cheam Avenue, Chilliwack, BC

Pages

1. CALL TO ORDER

2. APPROVAL OF AGENDA AND ADDENDA

2.1 Approval of Agenda

All/Unweighted

MOTION FOR CONSIDERATION

THAT the Agenda for the Fraser Valley Regional Hospital District Board OpenMeeting  of  March 18, 2015  be approved;

AND THAT all delegations, reports, correspondence and other information set tothe Agenda be received for information.

2.2 Approval of Addenda (If any)

All/Unweighted (2/3 Majority)

MOTION FOR CONSIDERATION

THAT the Addenda for the Fraser Valley Regional Hospital District Board OpenMeeting of  March 18, 2015  be approved;

AND THAT all delegations, reports, correspondence and other information set tothe Addenda be received for information.

3. DELEGATIONS

3.1 Fraser Health 3 - 40

• PRESENTATION by Fraser Health

In Attendance:

• Peter Goldthorpe, VP Corporate Services & Facilities• Brenda Liggett, Director, Financial Planning & Business Support• Michael Marchbank, Chief Executive Officer• PowerPoint Presentation

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4. MINUTES / MATTERS ARISING

4.1 Fraser Valley Regional Hospital District Board - January 27, 2015 41 - 44

All/Unweighted

MOTION FOR CONSIDERATION

THAT the Minutes of the Fraser Valley Regional Hospital District Board OpenMeeting of  January 27, 2015  be adopted.

5. NEW BUSINESS

None

6. LATE ITEMS

7. REPORTS FROM BOARD DIRECTORS

8. PUBLIC QUESTION PERIOD FOR ITEMS RELEVANT TO AGENDA

9. RESOLUTION TO CLOSE MEETING

All/Unweighted

MOTION FOR CONSIDERATION

THAT the Meeting be closed to the public, except for Senior Staff and the ExecutiveAssistant, for the purpose of receiving and adopting Closed Meeting Minutes convenedin accordance to Section 90 of the Community Charter and to consider matters pursuantto:

• Section 90(1)(e) of the Community Charter - the acquisition, disposition orexpropriation of land or improvements, if the Board considers that disclosure couldreasonably be expected to harm the interests of the Regional District.

10. RISE AND REPORT OUT OF CLOSED MEETING

11. ADJOURNMENT

All/Unweighted

MOTION FOR CONSIDERATION

THAT the Fraser Valley Regional Hospital District Board Open Meeting of  March 18,2015  be adjourned.

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Fraser Valley Regional Hospital District

Board Meeting March 18, 2015

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Overview

FVRHD – Fraser Health Services Historical Spending Per Capita Spending Fraser Health Capital Spending 2013/14

& 2014/15 Fraser Health Capital Planning Unfunded Capital Needs MSA Redevelopment Status

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FVRHD – Fraser Health Services Who we serve…

Population of 289,700 Cities of Abbotsford & Chilliwack Districts of Hope, Kent and Mission, and

the Village of Harrison Hot Springs There are health differences between the

various communities that influence the services we offer. For example, between 14 to 25 percent of the various populations are seniors.

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FVRHD – Fraser Health Services

Hospitals: Abbotsford Regional Hospital & Cancer Centre Chilliwack General Hospital Mission Memorial Hospital Fraser Canyon Hospital

Community Services: Residential & Assisted Living Home Health Mental Health & Substance Use Public Health

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FVRHD – Fraser Health Services Our Roles…

FVRD: manages community and regional growth strategies. Fraser Health: provides health care

services to the FVRHD. Manages capital and operating plans. FVRHD & Fraser Health: together fund

capital projects and equipment.

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FVRHD – Fraser Health Services Cost Sharing…

FVRHD: The main purpose of our Regional Hospital District is to raise funds for capital costs associated with the construction and acquisition of hospital facilities and major equipment in our region. These capital costs are normally shared with the Health Authority, with the Regional Hospital District funding 40% of such costs.

MoH: Funds 60% of the capital costs in communities that have Regional Hospital Districts.

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Three Key Areas of Focus for the Health Sector

Delivering patient-centred services and care

Driving performance management through continuous improvement across service and operational accountabilities

Over the next two to three years there will be a provincial focus on the following areas, in which Fraser Health will participate fully: Effective primary and community care to reduce

hospital use Timely access to appropriate surgical care 9

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Historical Spending

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Per Capita Spending

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Slide title

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Capital Spending 2012/13 to 2014/15

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Fraser Health Capital Spending 2013/14

2013/14 FH Investment ($2.93 million) $1.80m Pleasant View Site Acquisition $1.13m equipment

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Fraser Health Capital Spending 2014/15

2014/15 Fraser Health Investment ($6.13 million) $1.85m CGH CHC Building Envelope

Remediation $1.10m ARH Breast Health Clinic $0.36m ARH Parking Stalls $0.60m CGH Elevator (1,2,3) Upgrade $1.02m CGH Contact Centre Renovation

($1.02 million) $0.38m CGH CNCP Energy & CGH Reductions $0.88m equipment

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Fraser Health Capital Planning

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Fraser Health Capital Planning Environment

eHealth Initiatives

Government

Publ

ic(P

atie

nts/

Resi

dent

s)

Funding Partners

Audit

Board

Funding

Restrictions

Managem

ent

Capita

l

Policies

Operating Plan

Capital Plan

Changes in Care

Requirements

Infrastructure Maintenance

Technology Changes

FH Strategic Plan

Replacement of Existing

Assets

Rules

Stakeholders

Capital Pressures24

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Fraser Health Capital Funding

Ministry of Health Restricted Capital Grants (RCG): capital assets over $100,000.

Ministry of Health non-Restricted Capital Grants (non-RCG): capital assets between $5,000 and $100,000.

Foundations: restricted for specific projects and/or equipment at a specific hospital.

Fraser Valley Regional Hospital District: funds are restricted for hospitals and/or some community services in Fraser East.

Internal: e.g. working capital (depreciation impact), sale or disposal of assets.

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Capital Planning & Steering Committee Responsibilities

Development of Fraser Health’s annual capital plan for Executive Team and Board approval

Prioritization of all over $100K capital needs

Allocation of capital funds

Development of corporate prioritization criteria

Ensure appropriate approval is received for individual projects

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Capital Planning & Steering Committee Prioritization Criteria (MoH)

Strategic alignment Innovation Health outcomes Access & flow Human resources Safety & risk management Urgency Funding partnerships Operating cost benefit

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2015/16 2016/17 2017/18 2018/19 Total MoH 60% FVRHD 40%

Facilities Priority Investments:MSA Residential Replacement 400 12,900 19,500 2,400 35,200 21,120 14,080 CGH Residential Replacement - 5,000 20,000 20,000 45,000 27,000 18,000 Total Priority Investments 400 17,900 39,500 22,400 80,200 48,120 32,080

Facilities Routine Capital Projects:MMH Fire Alarm Upgrade 350 - - - 350 210 140 MMH Case Cart System 200 275 - - 475 285 190 CGH Case Cart System 500 2,000 2,000 - 4,500 2,700 1,800

Equipment over $100K:ARH Vascular C-arm (R 2006) 300 - - - 300 180 120 ARH Immunohistochemistry Stainer 165 - - - 165 99 66 CGH Analyzer Blood Cell Counter -Hem (R 2005) 125 - - - 125 75 50 ARH Sterilizer Sterrad 175 - - - 175 105 70 ARH Multi-Purpose Angio Interventional Suite 1,300 - - - 1,300 780 520

- Equipment under $100K (note 1): 800 - - - 800 480 320

Total Routine Facility Projects & Equipment 3,915 2,275 2,000 - 8,190 4,914 3,276

Note 1: FH spends approximately $800,000 annually on equipment under $100K.

Fraser East 2015/16 Unfunded Capital Needs

($000's)

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MSA Redevelopment Status

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MSA Site Redevelopment

Presentation to the Board of Directors Fraser Valley Regional Hospital District

March 18, 2015

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The Need

Campus of Care for Seniors Current facilities (Cottage/Worthington) do

not meet current complex care standards Various pest issues including ants Electrical system and other infrastructure

deficiencies

Community Health Centre Programs currently spread over 10 different

leased sites Existing facilities are undersized Existing facilities do not support current

models of care

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The Opportunity

• 13.34 acre former MSA Hospital site and Cottage and

Worthington Pavilions (Residential Care)

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Project Goals

Replace 119 non-compliant residential care beds at Cottage and Worthington Pavilions with a new 200 bed complex care facility that meets or exceeds current guidelines and capacity.

Support the redevelopment of Menno Place by transferring 81 beds to the new complex care facility.

Consolidate community health programs into a ‘one stop shop’ CHC that supports plans for redesign of community services (e.g. extended hours, group visits)

Maximize the financial benefits from the disposition of the land to support capital renewal in the community

Support City of Abbotsford’s urban renewal goals

Mitigate land and facility risk to Fraser Health

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Development Goal

To enter into a unique partnership that will create a visionary development which integrates the best urban planning principles with leading practice in care delivery

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The Expected Outcome

A modern 200 bed Campus of Care for Seniors (CCS). Projected capital cost of $35.2M. Facility to be owned and operated by FH.

Complex populations with greater clinical needs

Assures placement of all residents in community (i.e. smokers)

A 57,000 s.f. Community Health Centre (CHC) that will be built to suit and leased back to Fraser Health

High density, ‘urban village’ with multi-family housing, social housing, retail and other amenities

An urban park on 1.1 acres of existing treed land

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The Partners

The FVRHD – through its contribution of 40% of CCS capital costs ($14.1 million) and participation on project steering committee

The City of Abbotsford – through its support of re-zoning to enable the project

Fraser Health - through its contribution of: $21.1M (includes land value) for construction of the CCS (60%) $3.4 M for start-up costs for the CCS $4.1 M net increase in operational costs for additional 81 beds

(beds to be transferred from Menno Site with $1.3 M contribution in funding)

Increased lease costs for community programs that are moved to the purpose-built CHC

$2.0 M for start-up costs for CHC The Mennonite Benevolent Society – through the

potential associated advancement of the Menno Place Redevelopment

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Steps Taken To Date

Upon approval from the MoH, a 2 stage RFP was issued to the market in August 2014 with a view to achieving a land sale by March 31, 2015 to meet a Provincial Government mandate (RAEG) for land disposition.

2 shortlisted proponents were named after the 1st stage

At the 2nd stage, it was determined that neither proposal met FH’s expectations

FH exercised its right to cancel the RFP with a plan to re-structure the RFP and re-issue at a later date

Government has provided a one-year extension to meet the RAEG deadline (March 31, 2016).

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Next Steps

After consultation with FH’s Board Chair and the City of Abbotsford planning department, the RFP is currently being modified to allow for a more simplified response:

Proponents will have the option to purchase land separately from the development agreement for the health care facilities.

Proponents can bid on one or both parcels of land.

FH may subdivide and retain a portion of land prior to issuing the RFP.

RFP will be brokered by Cushman & Wakefield to improve market exposure and elicit bids.

RFP release currently on hold in order to explore potential synergistic opportunities and to finalize land subdivision strategy and CCS strategy.

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Milestone Schedule

Mar-Apr 2015 Confirm subdivision boundary

May 2015 Subdivision application to the City

May 2015 Issue Offer to Sell Land via broker

June 2015 Confirm land sale proceeds

Sept 2015 Land sale transaction completion

June 2015 Issue RFP for facilities

Sept 2015 Select Preferred Proponent

Nov 2015 Preferred Proponent negotiations complete

Dec 2015 Sign Development Agreement for facilities

Jan-Sept 2016 Facilities design and municipal approvals

Oct 2016 Construction of facilities commences

Summer 2018 Construction of facilities complete

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Questions?

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FRASER VALLEY REGIONAL HOSPITAL DISTRICT BOARD MEETING Tuesday, January 27, 2015 @ 7:00 p.m. FVRD Boardroom, 45950 Cheam Avenue, Chilliwack, BC

O P E N M E E T I N G M I N U T E S

Present:

Director Henry Braun, City of Abbotsford, Chair Director Dennis Adamson, Electoral Area B Director Pam Alexis, District of Mission Director Ray Boucher, Electoral Area F Director Kelly Chahal, City of Abbotsford Director Bill Dickey, Electoral Area D Director Taryn Dixon, Electoral Area H Director Orion Engar, Electoral Area E Director Leo Facio, Harrison Hot Springs Director Sharon Gaetz, City of Chilliwack Director Moe Gill, City of Abbotsford

Director Jim Hinds, District of Mission Director David Loewen, City of Abbotsford Director Jason Lum, City of Chilliwack Director Alec Niemi, Electoral Area C Director Ken Popove, City of Chilliwack Director Terry Raymond, Electoral Area A Director Patricia Ross, City of Abbotsford Director Ross Siemens, City of Abbotsford Director John VanLaerhoven, District of Kent Director Wilfried Vicktor, District of Hope Director Sam Waddington, City of Chilliwack

Regrets:

Director Al Stobbart, Electoral Area G Director Boucher, Electoral Area F

Staff Present:

Paul Gipps, Chief Administrative Officer Suzanne Gresham, Director of Corporate and Electoral Area Administration Margaret Thornton, Director of Planning and Development Barclay Pitkethly, Director of Regional Programs Tareq Islam, Director of Engineering and Community Services Mike Veenbaas, Manager of Financial Services Jennifer Kinneman, Manager of Communications Milly Marshall, Manager of Recreation, Culture and Airpark Services Stacey Barker, Manager of Environmental Services Alison Stewart, Manager of Strategic Planning Graham Daneluz, Manager of Planning/Deputy Planner Chris Wilson, Manager of Electoral Area Emergency Services Christina Vugteveen, Manager of Parks Neil Bains, Network Analyst II Tyler Davis, Network Analyst I Tina Mooney, Executive Assistant Jaime Schween, Executive Assistant to CAO and Board

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Fraser Valley Regional Hospital District Board Meeting Minutes – January 27, 2015 Page 2 There were 13 members of the public and no members of the media in attendance. 1 CALL TO ORDER Chair Braun called the meeting to order at 7:00 p.m. 2 APPROVAL OF AGENDA AND ADDENDA 2.1 APPROVAL OF AGENDA GAETZ/CHAHAL THAT the Agenda for the Fraser Valley Regional Hospital District Board Meeting of January 27, 2015 be approved; AND THAT all delegations, reports, correspondence and other information set to the Agenda be received for information. [HOSP 2015-001] CARRIED

All/Unweighted 2.2 APPROVAL OF ADDENDA (if any) GAETZ/CHAHAL THAT the Addenda for the Fraser Valley Regional Hospital District Board Meeting of January 27, 2015 be approved; AND THAT all delegations, reports, correspondence and other information set to the Addenda be received for information. [HOSP 2015-002] CARRIED

All/Unweighted (2/3 Majority) 3 MINUTES/MATTERS ARISING 3.1 Fraser Valley Regional Hospital District Inaugural Board – December 17, 2014 SIEMENS/NIEMI THAT the minutes of the Fraser Valley Regional Hospital District Board Inaugural Meeting of December 17, 2014 be adopted. [HOSP 2015-003] CARRIED All/Unweighted 4 NEW BUSINESS 4.1 2015 – 2019 FVRHD Annual Budget Bylaw No. 0061, 2015 Mike Veenbaas, Manager of Financial Services noted that the provisional budget was adopted by the previous Hospital Board in October 2014. The Hospital District is a financing operation, and the current budget includes money in reserves for future capital projects, including the MSA redevelopment project. The following motion was brought forward:

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Fraser Valley Regional Hospital District Board Meeting Minutes – January 27, 2015 Page 3 ADAMSON/VICKTOR THAT the Fraser Valley Regional Hospital District Board recommend to the Fraser Health Authority that additional capital projects be committed to in support of Hope, B.C. and vicinity. [HOSP 2015-004] DEFEATED Discussion on the motion ensued and there was general consensus that further study, along with the development of a business case needed to be undertaken before the Board could recommend any further capital initiatives in the Hope area. Further discussion ensued regarding the strategic priorities already provided to FHA by the Board. It was noted that it would be prudent for discussions to take place between FHA and the Hospital District Chair and Acting Chair prior to any additional capital requests being submitted to FHA by the Board. Staff noted that representatives from FHA would be asked to come to a meeting of the Fraser Valley Regional Hospital District to speak to the Board about FHA’s 2015 Strategic Plan, capital plan and other priorities. The following motion was brought forward after discussion. FACIO/GILL THAT the Fraser Valley Regional Hospital District Board give first reading to the bylaw cited as "Fraser Valley Regional Hospital District Annual Budget Bylaw No. 0061, 2015". [HOSP 2015-005] CARRIED

All/Weighted GAETZ/LUM THAT the Fraser Valley Regional Hospital District Board give second and third reading to the bylaw cited as "Fraser Valley Regional Hospital District Annual Budget Bylaw No. 0061, 2015". [HOSP 2015-006] CARRIED

All/Weighted VAN LAERHOVEN/HINDS THAT the Fraser Valley Regional Hospital District Board adopt the bylaw cited as "Fraser Valley Regional Hospital District Annual Budget Bylaw No. 0061, 2015". [HOSP 2015-007] CARRIED

All/Weighted (2/3 Majority) 5 ITEMS FOR INFORMATION None. 6 REPORTS FROM BOARD DIRECTORS None. 7 PUBLIC QUESTION PERIOD FOR ITEMS RELEVANT TO AGENDA None.

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Fraser Valley Regional Hospital District Board Meeting Minutes – January 27, 2015 Page 4 8 ADJOURNMENT CHAHAL/DIXON THAT the Fraser Valley Regional Hospital District Board Meeting of January 27, 2015 be adjourned. [HOSP 2015-008] CARRIED

All/Unweighted The meeting adjourned at 7:13 p.m. MINUTES CERTIFIED CORRECT: …………………………………………………. …………………………………………………….. Director Henry Braun, Chair Corporate Officer / Deputy

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