1987-046
17S0L
NO
fr7-o ~ (p
AN ORDINANCE APPROVING A CONTRACT BbTWEEN THE CITY OF DENTON AND
DELOITTE HASKINS & SELLS FOR PROFESSIONAL SERVICES RELATING TO
AN EVALUATION OF FLOW MEMORIAL HOSPITAL, AND DECLARING AN
bFFECTIVE DATE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAIN~
SECTION I That the C1 ty Counc1l of the C1 ty of Denton
hereby approves an agreement between the C1ty of Denton and
Delo1tte Hask1ns & Sells for profess1onal serV1ces for an
evaluat1on of Flow Memor1al Hosp1tal, a copy of wh1ch 1S
attached hereto and 1ncorporated by reference here1n
SECTION II That the C1ty CouncIl authorizes the
expenditure of one-half of the funds In the manner and amount as
speclf1ed 1n the Agreement
SECTION III That this ord1nance shall become effective
Immediately upon Its passage and approval
PASSED AND APPROVED th1S the /~ay of ~, 1987
ATTE~T
APPROVED AS TO LEGAL FORM
DEBRA ADAMI DRAYOVITCH, CITY ATTORNEY
CITY OF DENTON, TEXAS
BY
/J¿~ A- )°(j~Á
Delc.'e
Haskins+Sells
-~-~---
1400 Lincoln Plaza
LB #4
Dallas Texas 75201
(214) 9544500 Telex 732648
Writer s DICect Dial Number
Mr John F McGrane
Director of Finance
C1ty of Denton
Municipal Bu1ld1ng
215 East McKinney street
Denton, Texas 76201
March 9, 1987
Dear Mr
McGrane
Th1S letter w1ll update our proposal dated February 20,
1987, and address the Issues we discussed at our meeting on
March 6,1987 Our understand1ng of the key 1ssues are as
follows
We w1ll perform the proJect under the Joint fund1ng from,
d1rect1on of, and report1ng to both the city and County
of Denton We ant1c1pate that you w1ll cont1nue to be
our pr1mary llas1on w1th those agenc1es and the Hosp1tal
We w1ll beg1n the proJect as soon as poss1ble after
rece1v1ng formal city and county approval, but no later
than ten days after those dates Our current
relat1onsh1p w1th the C1ty should facll1tate contract
development
We have added a task to analyze the Hosp1tal's planned
def1c1t for the current fiscal year This analysIs will
be designed to determine an appropriate amount of funding
this year, by the city and county Assuming these
hospitals' cooperation, our oral report and outline of
flnd1ngs from th1S analys1s w1ll be ava1lable w1th1n two
weeks of our start date
Our overall analys1s of the Hosp1tal's long-term
"surv1val potent1al" w1ll be determined four weeks from
our start date Th1S analys1s w1ll cons1der the
f1nanc1al 1mpl1cat1ons of three maJor operat1ng opt1ons
current operat1ons w1th management 1mprovement, leas1ng
to an outs1de group. and, clos1ng the Hosp1tal Our
wr1tten report from th1S alternative analys1s w1ll also
present advantages and d1sadvantages of each alternat1ve,
but not offer a recommended course of act1on We will
d1SCUSS our report 1n one or two read1ngs w1th selected
representat1ves from the C1ty and county
Mr
John F
McGrane
page 2
I hope th1S addresses all of the 1ssues We look forward to
start1ng as soon as poss1ble please call me w1th any
questlOns
Slncerely, ~
(~ C
/' I' ? ~é - ~4L-Z~
Mark E Delane ~¿[~
Manag1ng D1rector U
of consulting SerV1ces
Enclosure