RFP 14198 Addendum # 1-Please note mulitple questions can be submitted at one time.

7/11/14

Question 1: Would the county entertain a purchase offer now, instead of a lease agreement?

Response 1:  The building and land are not for sale.  The intent is for the successful proposer to identify a replacement facility or facilities in the Lake County market.
 

Question 2: Would the county entertain a lease with an option to buy offer?

Response 2: See response 1.

Question 3: The RFP calls for the operator to find a new location for the residents. What about the new operator renovating the current facility during the lease term, and then purchase the facility from the county after the two years?

Response 3:  See response 1.

Question 4: What is the county’s goal for the Winchester House property? Would the county sell the current facility to a private operator?

Response 4:  See response 1.
 

Question 5: What is the county's expectations and goals for the new operator, after the two years time period? Would the county sell the bed licenses at that point? Does the county want to retain ownership in some way?

Response 5:  The expectation of the County is that the successful proposer would identify a replacement facility or facilities following the two year lease period and ensure current facility residents are provided residency in the replacement facility.  The County's bed license is not transferable.  The successful proposer shall be responsible for obtaining a bed license for 224 beds and provide services as detailed in Section 4 of the Specifications in the RFP..  It is the intent of Lake County to continue to keep the involvement of the Winchester House Advisory Board in an oversight role until a complete transition of service and residents to a new and/or replacement facility is completed.

7/18/14

Question 6:  Will site visits be scheduled for interested vendors to tour the Winchester House facility?

Response 6:  Yes, there will be two site visits scheduled.  One at 9:00 a.m. and another at 3:00 p.m. on Wednesday, July 23, 2014.  Purchasing Staff will meet interested vendors at the reception desk.

 

7/21/14

Question 7: Will the selected vendor be required to contract with the current management company?

Response 7: No, the County's contract with the current management company expires on 11/30/14.

Question 8: What is the county's plan with the current property/facility after the transition of patients to a new facility?

Response 8: The County has not begun those deliberations.

 

7/22/14

Question 9: How many beds are authorized under the County’s supportive living facility (slf) license?

Response 9: 81 beds.

Question 10: When does the SLF expire?

Response 10: The SLF expires on August 26, 2014, but the County is requesting an extension.  See page 14 of RFP.

Clarification 10:  Lake County received an extension for the SLF until August 26, 2015.

Question 11: Is the County willing to provide financial support under a lease?

Response 11: The County will be evaluating the cost proposals as noted on page 16 of the RFP.

Question 12: Is the union representing employees at the facility still American Federation of State, County and Municipal Employees (AFSCME)?

Response 12: Yes.

Question 13: Question regarding site visits on Wed the 23rd.  Is it ok to just show up at either 9 or 3 for a tour?

Response 13: Yes

Question 14: Is it possible to get a copy of the Winchester House audit (or financial statements) for 2013 and a YTD for 2014, and if so how?

Response 14: Winchester House is considered a department of Lake County. As such, it is included in the financial statements prepared by the County as a whole, though Winchester House is presented as a separate and unique fund. The Comprehensive Annual Financial Statement (CAFR) for FY13 and several prior years are available on the County’s website. To view the CAFR, visit Financial Documents.

While the County prepares internal financial reports on a monthly and quarterly basis, the County uses modified accrual accounting and does not finalize YTD reports for external purposes.

 

7/23/14

Question 15: The Aug 7 deadline is very tight and very little financial information was provided in the RFP. Is there any way the deadline can be extended? Extending the deadline will only improve the quality of the responses.

Response 15: The RFP opening date has been changed to August 14, 2014 at 2:00 p.m. local time. To view the updated cover page, please visit Updated RFP Cover Page.

Question 16: Does the County expect or require the new operator to continue to provide services to medicaid eligible residents once the new or replacement facility is operational, and if so, to what extent?

Response 16: Proposer will use commercially reasonable efforts to achieve and maintain an occupancy rate consistent with historical trends and the County’s mission. Proposals shall either identify plans to meet those trends or delineate a separate plan if proposed occupancy rate is significantly different. Proposals should include plans for current Facility and Lake County residents. Lake County has an interest in resident continuity and preserving the ability of current Winchester House residents to receive care at Winchester House during the leasing period and in the proposed replacement facility or facilities.

Question 17: Regarding the financial statements: The format is different from what LTC providers typically see in an summary statement.  Can you describe what usual and customary items are either included and excluded in the following line items?

Revenues:  Taxes, Charges for Services, Intergovernmental.

Expenditures:  Commodities, Contractual

Other Financing Sources:  Transfers in.

Finally. is Net Change in Fund Balance the equivalent of an EBITDARM, EBITDAR, or EBITDA calculation?

Response 17: The fiscal year budgets that are also available at the same website link, Financial Documents  and will provide more detail as to the breakdown of the Winchester House revenues and expenses.

To specifically answer the questions however:

1. REVENUE
   1. Taxes – property taxes
   2. Charges for Service – private pay fees and charges
   3. Intergovernmental – Illinois Public Aid, Medicare, Managed Care, Hospice (all payments from other government organizations)
   4. Transfers In – IGT transfer from the County’s General Fund
   5. Miscellaneous – Interest and employee meal reimbursements
2. EXPENSES
   1. Commodities: Office supplies, operational supplies, craft & recreational supplies, food and provisions, medical supplies, oxygen, drugs and medicines, housekeeping supplies
   2. Contractual: Staffing services, consultants, data processing, computer services, lab fees, medical fees, radiological fees, employment fees, trips and training, pest control, laundry and cleaning, housekeeping, dues and subscriptions, advertising, gas for heating, electricity, water and sewer charges, telephone, cell phones, liability and workers comp insurance, equipment rental, postage, temporary employment services, contract providers, management fees, bad debt expense, indirect cost allocations, bed tax, and miscellaneous

The net change in fund balance is simply the difference between revenues (including transfers) and expenses. This includes Interest and Management Fees. It does not include depreciation or amortization (depreciation is calculated County-wide, not by individual fund).  There are no Tax expenditures (the County is tax exempt and the fund does not currently support any direct staff) or Rent expense incurred by the Fund.

Question 18: Would a for profit lessee be subject to property taxes on Winchester House? Presently it is owned by the County and is tax exempt.

Response 18: Lake County is exempt from paying certain Illinois State taxes; however, successful Proposer may be required to pay certain Illinois State taxes.

 

7/24/14

Question 19: Does the County expect the new operator to continue the employee union contract when the replacement facility is opened? In other words, can that contract be termed with a new entity?

Response 19: The County expects the successful Proposer to comply with all federal and state labor laws.

Clarification 20: FY13 Financials for Winchester House are available at the following link: FY13 Financials

 

7/28/14

Question 21: Is it possible to get detailed payroll information, i.e., #FTEs, positions by department, wages, etc?

Response 21: All staffing-related expenses for full-time and part-time/flex staffing can be found in the staffing services line item (71125) on page 189 of the FY14 Approved Budget (which also shows the actual expense in this line item in FY12 and FY13). There are currently approximately 128 non-county full time and 79 non-county part time/flex employees working at Winchester House. It is estimated that approximately $778,765 on a monthly basis accounts for payroll and benefits.

Question 22: What is the expectation for health insurance coverage for employees during the transition? New provider will have a different plan presumably for its own employees from the one that is in place presently for the employees of Winchester House.

Response 22: The employees are currently covered by a collective bargaining. The County expects the successful Proposer to comply with all federal and state labor laws.

 

7/31/14

Question: 23 What services is the facility contracting for and what are the current costs and terms?

Response 23: A listing of current Winchester House contracts procured and maintained by Lake County Purchasing is provided within the RFP as Exhibit A. The list includes the contract expiration and FY14 budget.

Question 24: What pharmacy is being used?

Response 24:  The County currently contracts for pharmacy & consulting services. The vendor operates their own in-house pharmacy.

Question: 25 Does the facility use contract therapy or in-house staff?

Response 25: The County currently contracts for rehab and occupational therapy.

Question 26: Does the County charge the facility for maintenance and repairs performed by facility staff?

Response 26: The cost of facilities and maintenance staff is included in the indirect cost allocation that is available in the Winchester House budget document. The indirect cost also includes other administrative support from the County including mail service, cashiering, banking, audit, accounting, A/P, and other centralized services.