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HomeMy WebLinkAboutCounty Board 07-21-1992AGENDA ST. CROIX COUNTY BOARD OF SUPERVISORS July 21, 1992 7:00 P.M. Health Center, New Richmond Compiled by Chair Richard B. Peterson TOUR OF HUMAN SERVICES AND NURSING HOME COMPLEX -- 6:00 P.M. CALL TO ORDER COUNTY BOARD OF SUPERVISORS, 7:00 P.M. PLEDGE OF ALLEGIANCE: ROLL CALL: ADOPTION OF AGENDA: Date of Next Session: August 18, 1992 9:00 a.m. NEW BUSINESS: 1. Resolution Imposing Moratorium on Sale of Human Services and Nursing Home Properties (postponed in January for consideration in July) a. Presentation by Ad Hoc Marketing Committee and discussion of new offer to purchase Announcements: Adjournment Note: Amended agenda due to Good Samaritan withdrawing their offer to purchase, July 20, 1992. Further amended July 21, 1992 COUNTY BOARD SESSION Special Session July 21, 1992 Health Center New Richmond Meeting called to order at 7:00 pm by Chair Peterson. Pledge of Allegiance was recited. The Public Hearing previously scheduled was cancelled due to Good Samaritan withdrawing their offer to purchase. Roll call: 30 present, 1 absent - Judith Hayducsko, excused Motion by Supr. Bailey, 2nd by Supr. Sinclear to adopt the agen- da. Motion carried. Chair presented background information on the sale of the Nursing Home. Resolution No. 14 (88) was the first action regarding the sale. After one sale did not materialize and a one year morato- rium, an Ad Hoc Marketing Committee was formed in August of 1991. Peterson gave a special thank you to this Committee and the County Staff for the hours of work spent in finding a buyer and obtaining facts and figures. Resolution #29 (92): Imposing Moratorium on Sale of Human Serv- ices and Nursing Home Properties. Motion to adopt by Supr. Boche, 2nd by Supr. Becker. Supr. Sinclear emphasized it is time to settle the sale issue. The Ad Hoc Committee has had nine months to look for an offer. Sinclear firmly stated the resi- dents and staff deserve a final decision by the Supervisors. Motion by Supr. Sinclear, 2nd by Supr. Boche to amend the morato- rium by extending it from three years to eight years. Sinclear stated the bond will be paid in eight years and then another look can be taken at the financial situation. Supr. Stephens said a better solution would be to remove it from the sale block. Supr. Bradley indicated an eight year moratorium would be a distinct disadvantage for the Personnel Committee when bargaining with the Health Center employees. Supr. Nyland asked what guarantee there would be -the Center would be profitable in the next five years. Supr. Rebhan cited the cost to taxpayers based on 50,000 popula- tion is only 20 cents per week which he feels is a cost of only pennies to provide care for our disabled and elderly citizens. Supr. Jensch commented on possibilities for creative financing for the Health Center budget. Administrative Coordinator Krizek stated the Finance Committee will be considering advance refund- ing of the 1982 Health Center Bonds which have a present interest rate of 9 3/4%. Refinancing of these bonds at 5% will result in savings of $320,000 to $400,000. Krizek added management of Workers' Compensation and expenses is possible but future Federal medicaid reimbursements are unknown. Supr. Oemichen asked what effect an eight year moratorium would have on future County Boards in two, four or eight years. Corpo- ration Counsel Timmerman replied that future Boards cannot be 1 bound by previous Boards' actions and can choose to either disre- gard or honor a moratorium. Supr. Giese believes Supervisors should vote as their constitu- ents wish them to. Supr. Bradley said he has had many calls to sell the home; Chair Peterson has been advised not to sell by his constituents. Supr. Becker reported $1.2 million spent in 1990 on garbage disposal at the incinerator, $1 million in 1991 and $700,000 so far in 1992. He expressed his opinion that if the county could spend this much on garbage, the county could appropriate $200,000 for the Nursing Home. Supr. Draxler commented the amount spent on the Nursing Home is little in comparison to incarceration costs and favors the moratorium. Supr. Boche had received several letters from families of resi- dents urging the Supervisors not to sell. Supr. Dorsey favors taking the Home off the market. Supr. Bradley said we need to consider the taxpayers regarding the amount of money needed for repairs if the home is not sold. Supr. Boche asked Bradley if he is willing to sell the county parks because they do not make a profit. Roll call vote on the eight year moratorium: 14 yes; 16 no. Amendment failed. Presentation by Ad Hoc Committee: Committee Chair Stephens gave background information on the sale of the home. Former Nursing Home Director Gary Johnson had predicted it would cost the county $1.3 million per year to operate. In 1989 an offer to purchase was made by Wisconsin Health Systems but the sale did not materi- alize. The Ad Hoc Committee received an offer from Good Samari- tan prior to this meeting which was withdrawn on July 20th. Stephens read the letter explaining the circumstances of the withdrawal. A surprise visit by County Supervisors and others to the Good Samaritan homes in St. Croix Falls and Siren revealed some deficiencies and unfavorable press releases. Good Samari- tan does not believe they could successfully operate the home in New Richmond under these circumstances. Stephens stated he would take full responsibility for the unannounced visit to the two homes. Stephens also reported another offer is on the table but nothing has been received in writing so the offer cannot be discussed. He complimented Craig Smith, Nursing Home Administrator for his fine work. Guido Cecchini, AFSCME Union representative, remarked the Nursing Home provides an essential service and agreed State funding is unkown. Cecchini said there must be communication and coopera- tion between labor and management. He assured the Supervisors the Health Center employees want to do their part. Cecchini emphasized the St. Croix Health Center provides a home for Sen- iors for their last days along with the dignity they deserve. 2 Motion by Supr. Stephens, 2nd by Supr. Sinclear to amend the Moratorium resolution by omitting the last two THEREFORE BE IT RESOLVES and adding, "THEREFORE BE IT RESOLVED, that the Nursing Home be taken off the market and not offered for sale at this time." Motion by Supr. Malick, 2nd by Supr. Krueger to amend Supr. Stephens' motion by adding "and this moratorium shall cease if, applying generally accepted accounting principles, during any calendar quarter, the sum of operation expense, interest on the bonds, and depreciation exceeds the income of the nursing home by more than $62,500.00." Corporation Counsel advised this amendment was out of order because it relates to the moratorium and not the proposed amend- ment. Chair Peterson ruled Malick's amendment out of order. Supr. Malick appealed to the Board to overrule the Chair. Roll Call vote: 16 yes for Chair's ruling to stand, 13 no. Appeal was defeated. Chair abstained from voting. Supr. Jensch introduced Nursing Home Administrator Craig Smith who addressed the Board. Smith noted this was the first time he has been allowed to address the full Board and went on to outline the packet of materials sent to Board members. He believes a moratorium of at least five years is a good idea to get the Home on a sound financial basis. Smith pointed out the census in the Nursing Home always decreases when the Board proposes a sale and lost revenue since 1989 totals $444,000. The St. Croix Nursing Home offers care levels other homes do not. Some of the residents (23.8%) have been here 22 years or longer. If sold, difficult care patients could be transferred to Trempe- leau County or Mendota State Hospital in Minnesota. Smith stated the State pays $120 per day for transferred patients but there are significant other costs. The County appropriated $205,694 for 1992 and thus far only $18,884 has been used. He noted the Nursing Home has provided special care for 96 years and believes it can operate at a break even point and not be a burden to the taxpayers. Applause by Board and guests. Chair Peterson thanked Craig Smith for his fine work as administrator. (Smith has resigned his position effective July 24, 1992.) Chair called for a 10 minute recess. Supr. Bradley noted this was an interesting amendment and asked if we are only paying lip service to reducing taxes. Bradley added it will be interesting during Personnel Committee negotia- tions to see how willing the employees are to make concessions. Roll call vote on the amendment "the Nursing Home be taken off the market and not for sale at this time." 21 yes, 9 no. Amend- ment carried. 3 Chair Peterson disbanded the Ad Hoc Committee and thanked them for their efforts. Motion to adjourn by Supr. Bradley, 2nd by Supr. Rebhan. Meeting adjourned at 9:20 p.m. Richard B. Peterson, Chair St. Croix County Board of Supervisors (`.'v Sue E. Nelson St. Croix County Clerk 4