HomeMy WebLinkAboutAdmin 89-84CORPORATION OF THE TOWN OF NEWCASTLE
40 TEMPERANCE STREET
BOWMANVILLE, ONTARIO
L1C 3A6
REPORT TO THE HYDRO LIAISON COMMITTEE MEETING HELD
DECEMBER 7 1984
ADMIN. 89 - 84
SUBJECT: BOWMANVILLE MEMORIAL HOSPITAL FOUNDATION REQUEST
RECOMMENDATIONS:
It is respectfully recommended that the Hydro Liaison Committee
recommend to Council the following:
1. That Administrator's report ADMIN 89 - 84 be received;
2. That the total impact to both the "A" and "B" accounts be
identified as having a maximum value of $359,199.00 and
comprised of the following components:
Account "A" Cost of construction based on detailed drawings
and construction estimates to a maximum of $135,000.00
Account "B" - $224,199 ($124,199 paid in 1985 and
$100,000 paid in 1986)
3. That Supplementary Agreements authorizing the transfer of
said monies from the "A" and "B" Accounts be presented
to Council together with the necessary by-laws authorizing
the Mayor and Clerk to enter into Agreements on Accounts
"A" and "B" as outlined in Recommendation #2.
TELEPHONE 623-3379
4. That the Bowmanville Memorial Hospital Foundation be notified
of Council's actions.
BACKGROUND AND COMMENT:
At the Council meeting held March 12th 1984, the Chief Administrative
Officer and the Treasurer were requested along with representatives of
Ontario Hydro to form a technical liaison committee with hospital officials
to try to identify any impact by the Darlington Generating Station on
the Bowmanville Memorial Hospital.
-2 -
ADMIN. 89 - 84
Ontario Hydro officials conveyed in the early part of the summer a list of
documentation that would be necessary in order to fully assess impact. In the
fall of 1984, several meetings were held with hospital officials in an attempt
to obtain the requested information and to determine an impact cost.
The conclusion reached by the technical committee was that there was indeed
impact but perhaps not as much as originally felt. Technical staff attempted
to identify various factors which have been attributed to impact and how to
most appropriately weight these factors without missing a factor or double
counting an impact.
After considerable discussion a three-part formula was identified. First, it
was agreed that the adjusted project cost had been impacted upon by the projected
Darlington Generating Station population estimate. However, it was also
recognized that the building of hospital improvements could not be solely
attributable to Hydro workers. When the Darlington Generating Station'population
was weighted with the overall projected population of the Town, an impact of
$168,102 was calculated. The technical staff all agreed that this was a
legitimate impact.
The second and third part of the formula identified active patient days and
the out-patient days respectively. Through discussion with hospital officials
it was learned that a hospital building had been advanced by approximately
three years. Part of this advancement is attributable to the Town of Newcastle's
natural growth and part is attributable to the Darlington Generating Station.
To pay for the advancement of services we estimated active patient days and
out-patient contacts that were attributable to the Darlington Generating
Station. These contacts were multiplied by the incremental capital costs per
person. This was then multiplied by one year as opposed to the three year
advancement.
ADMIN. 89 - 84 -3-
There was much discussion as to what timeframe should be utilized for
this portion of the formula. However, it was felt that the complete
advancement of the building could not be attributable to the Hydro Generating
Station and as such, it should be factored by reducing the number of years
of advancement from three to one year. As a result, the active patient days
formula yielded a value of $33,692.00, the out-patient contacts yielded
a value of $22,405.00. Total impact using this three -factor formula amounted
to $224,199.00. This accounts for the total impact that would be generated
to the "B" account. A detailed breakdown is provided in Appendix "A".
The second consideration from the Hydro Accounts is the development of a
special operating room and treatment area. Ontario Hydro have agreed.that
this cost should be attributable to the "A" account as it is a direct hard
service impact. It has been estimated that the contribution for the
development of this room would be in the neighbourhood of $135,000.00.
Accordingly, the total impact monies received from the "A" and "B" Accounts
would be in the order of $359,199.00.
Attached to this report are several appendices together with an index
indicating the submissions that were made to the Ministry of Health with'
respect to the Bowmanville Memorial Hospital Renovation and Expansion plan.
The reaction of the District Health Council and the concerns as expressed
by the Ministry of Health have also been attached. We have attached,
a copy of the questionnaire which was forwarded to hospital officials and
a consolidation of the responses to those questions. I have also attached a
letter from the Chairman of the Hospital Foundation agreeing to the identified
impact.
All of which is respectfully submitted,
DavidJohnston, M.C.I.P.,
Chief Administrative Officer
DSJ:nof
LIST OF APPENDICES
1. Appendix A
2. Appendix B
3. Appendix C
4. Appendix D
5. Appendix E
6. Appendix F
- Detailed Calculation of Impact
- Hydro Questionnaire
- Hospital Response
- November 6th letter from Mr. Elston
clarifying funding
- November 7th letter from Durham Region District
Health Council
- November 13th letter from Durham Region District
Health Council
7. Appendix G - Submission of Bowmanville Memorial Hospital to
the Ministry of Health
(Available through Administrator's Office)
8. Appendix H - Letter from Memorial Hospital Foundation dated
December 7 1984
e- 7el; � 1
Pe.iv-dd
Definitions:
(a) Adjusted Project Cost is the $5,800,000 cost less the $35,000
which relates to the special operating room.
(b) Active Patient Days are the number of days which a person is
an "in-patient" at the hospital. Ministry of Health
statistics indicate that 1.4 active patient days is used per
1,000 of population(based on DGS 1985 population)
DGS population x 1.4 = 1015 x 1.4 = 1421
(c) Incremental Capital Cost is the cost of the building addition
and renovation divided by annual active patient days
estimate.
Addition/Renovation Annual Cao tal Depreciation
Buildings 4,765,000 x 5% _ $238,250
Equipment 1,000,000 i 5 yr average = 200,000
life
$438,250
Estimated Annual Ca ital De reciation
nnua cove a lent ay
s
_
$438 250
$23.71 per diem
(d) Out Patient Contacts involve visits to the hospital emergency
service, X -Ray, Therapy, etc. and are based on the actual
occurrence for a six month period from to 1984.
FUNDING PROPOSAL:
IMPACT
(A) Adjusted Project Cost x DGSPo ulation Estimate
own opu atio st mate
$5,765,000 x 10155 _ $168,102
(B) (Estimated DGS Active Patient Days x Incremental Capital) 1 year
Cost Per Diem
= (1421 x $23.71) 1 year
_ $ 33,592
(C) Estimated DGS Out Patient Contacts x Incremental Capital) 1 year
Cost Per Diem
(945 x $23.71) 1 year = $ 22,405
TOTAL IMPACT $224,199
Memorial Hospital Funding Proposal
Total Contribution:
Impact Funds
DGS Account "B'
Special
Operating
Room
DGS Account "A"
Municipal Cash Contribution
(over 3 years)
Value of Lands from Road Closing
* subject to confirmation
$224,199
$135,000*
$250,000
$ 50,000
$659,199