RES 11-43CITY OF OTSEGO
COUNTY OF WRIGHT
STATE OF MINNESOTA
RESOLUTION NO. 2011-43
RESOLUTION STATING OTSEGO CITY COUNCIL POSITION ON
PROPOSED CHANGES TO LEGAL STATUS OF THE NEW RIVER
MEDICAL CENTER
WHEREAS, the City of Otsego (Otsego) has previously petitioned for
detachment from the New River Medical Center Hospital District (Hospital
District); and
WHEREAS, said petition was denied by the Hospital District Board of
Directors (Hospital Board) and subsequently by the Minnesota Court of Appeals;
and
WHEREAS; the Otsego City Council still strongly believes that the City
taxpayers should not be burdened by the levy imposed by the Hospital District;
and
WHEREAS, subsequent to Otsego's petition the Hospital Board has pledged
to gradually reduce the levy; and
WHEREAS, the Hospital Board has initiated studies to determine whether or
not the Hospital District should proceed in its present legal form or make
modifications to or change that form; and
WHEREAS, the Hospital Board has been provided with a variety of options
regarding these issues; and
WHEREAS, Otsego believes that it should appropriately provide input on
behalf of its citizens regarding the proposed options.
NOW, THEREFORE BE IT RESOLVED by the City Council of the City of
Otsego, Wright County, Minnesota as follows:
1. That the Hospital Board take all appropriate actions to dissolve the District
at the termination of the current bonds in 2016.
2. That no new bonds be issued by the Hospital District containing a pledge of
levy funds.
3. That any lease or other agreement between the Hospital District and another
organization include provisions that would preclude the issuance of further
bonds by the Hospital District for the benefit of the organization or the
Hospital District.
4. That any lease or other agreement between the District and another
organization require an eventual buyout including repayment of any
amount levied between the date of the lease or agreement and date of
termination or buyout to be disbursed to the member Cities and Townships,
assumption of all Hospital District debts and assumption of all Hospital
District liabilities. Any levy amounts repaid would go to the Cities and
Townships included in the District in proportion to their payment.
5. That any lease or agreement between the Hospital District and another
organization include Hospital District members as third party beneficiaries
of the lease or agreement with authority to seek injunctive or other
remedies in District Court, including an award of costs and disbursements
and witness and attorney's fees.
ADOPTED BY THE CITY COUNCIL OF THE CITY OF OTSEGO this
22nd day of August, 2011.
MOTION BY: CM HEIDNER
SECOND BY: CM SCHROEDER
IN FAVOR: MAYOR STOCKAMP; COUNCILMEMBERS: HEIDNER, SCHROEDER, SCHARBER
AND DARKENWAU
OPPOSED: NONE
2
CITY OF OTSEGO
I
Sit v F -z A.,
JUX-11 ' 1 \ •4
Tami Loff, CYiy Clerk