0809200564
MINUTES
CITY OF DUNN
DUNN, NORTH CAROLINA
The City Council of the City of Dunn held a Special Call Meeting on Tuesday, August 9, 2005, at 7:00
p.m, in the Dunn Municipal Building. Present was Mayor J. Dal Snipes, Mayor Pro -Tent Donnie
Olds, Council Members Buddy Maness, Bryan Galbreath, Billy Tart, Billy R. Godwin, Jr. and Joey
Tart. Also present was City Manager Michael Uskiewicz, Human Resources /Safety Officer Moses
Gallion, City Attorney P. Tilghman Pope, City Clerk Debra West and Daily Record Reporter
Gregory Phillips.
INVOCATION
Mayor Snipes opened the meeting at 7:00 p.m, and asked Council Member Maness to give the invocation.
Afterwards, the pledge of allegiance was repeated.
ADJUSTMENT OFAGENDA
Motion by Council Member Galbreath, seconded by Council Member Joey Tart to add Contracts for
Recreation Center and Facilities Naming Rights to the agenda under Items for Decision. Motion
unanimously approved
Mayor Snipes closed the regular meeting and opened public hearing at 7:02 p.m.
PUBLIC HEARING
MEMORANDUM OF UNDERSTANDING
RELATING TO A NON - PROFIT HEALTHCARE
SYSTEM FOR HARNETT COUNTY
Mayor Snipes explained that the Council will be considering a Memorandum of Understanding as it relates
to a unified not - for - profit healthcare system for Hamett County. This non - profit system will be providing
care to all people in the county regardless of their ability to pay and will consist of two medical facilities,
one being the existing Betsy Johnson Campus in Dunn and a new fifty (50) bed, three (3) operating room
hospital to be built at a site in the Lillington area.
Mayor Snipes explained that because of the City's financial arrangement with Betsy Johnson Regional
Hospital, the City is being asked to be a part of this new system with Harnett County, Betsy Johnson, Wake
Med and Good Hope Hospital if they would choose to participate in this process.
Mayor Snipes pointed out that this public hearing is not a legally required public hearing by the City �-
Council, but something that this council wanted to do to hear from the citizens of Dunn. Mayor Snipes
opened the floor for public comment.
Mr. Rick Lashmit of 715 Westbrook Avenue stepped forward and questioned if the annual inflated fee paid
by Betsy Johnson Regional Hospital to the City of Dunn includes only the main hospital property or does it
include all properties owned by Betsy Johnson and how will this be affected by entering into a partnership
with WakeMed. He also asked how much money ivoulil be gerieraied if the hospital had to pay property
taxes to the City of Dunn.
Mayor Snipes asked if anyone else would like to speak for or against this proposal. Hearing none, motion
by Mayor Pro -Tem Olds, seconded by Council Member Billy Tart to close the public hearing and
reconvene the regular council meeting at 7:06 p.m.
Mayor Snipes yielded to City Attorney Pope to further explain this issue as it relates to the annual
payments received from Betsy Johnson Hospital.
Attorney Pope stated that the payment that Betsy Johnson Regional Hospital makes to the City of Dunn on
an annual basis is based on a restrictive covenant that was placed on the property when the City transferred
that property to Betsy Johnson Hospital Authority. It is mandated as a restrictive covenant against the
property and will continue under the new arrangement. If the payment failed to be made to the City of
Dunn, then the City could repossess the property. The payment has an inflationary formula based on the
consumer price index. The payment increases annually on a pre - determined rate index that was negotiated
and agreed upon by the Hospital and the City of Dunn back in 1996.
In addressing the question with regard to the property taxes, City Attorney Pope stated that he did not know
the answer to this question or if it has ever been calculated. The annual payment relates to all property
which the City of Dunn transferred to Betsy Johnson Hospital Authority two years ago and previously to
Betsy Johnson Hospital Corporation back in 1996. Mr. Pope stated that his recollection from some rough
calculations that were done by the Council, is that the property taxes would actually be less than what the
annual payment is if they were paying property taxes rather than the payment to the City as required under
the previous agreement between the City and the Hospital, however, he does not have any exact figures on
it.
Council Member Joey Tart stated that if the hospital had a value of fifty million dollars, at the current tax
rate of .46 cents per one hundred dollar valuation; the property tax would be $230,000. Currently the City
is receiving $291,000 annually with yearly increases from the hospital.
Mayor Snipes pointed out that in absence of this annual payment from the hospital, property taxes would
need to be raised .06 cents.
t
ITEMS FOR DECISION
CONTRACTS FOR RECREATION CENTER
AND FACILITIES NAMING RIGHTS
The City Council approved five (5) Recreation Center and Facilities Naming Rights Agreements during the
council meeting of July 7, 2005 and one (1) Agreement during the council meeting of August 4, 2005.
The remaining two (2) agreements are before the council for consideration.
Mayor Snipes proceeded to announce each donor individually along with the amount pledged and the name
they propose to display.
City of Duna Amt, Pledeed Namine Rielet Intended Name to Disolav
Recreation Center and
Facilities Namine Rights
1) Branch Bank & Trust $25,000.00 Multi- Purpose BB & T
Room
Motion by Council Member Godwin, seconded by Mayor Pro -Tem Olds to approve the Recreation Facility
Naming Rights Agreement with Branch Bank & Trust for the naming rights to the Multi- Purpose Room.
Motion unanimously approved. A copy of this Agreement for Sale of Naming Rights by Branch Bank &
Trust is incorporated into these minutes as Attachment #1.
2) Oscar N. Harris $25,000.00 %: Gymnasium Oscar N. Harris & Associates, P.A.
Certified Public Accountants
(CPA Logo)
Motion by Council Member Buddy Maness, seconded by Council Member Billy Tart to approve the
Recreation Facility Naming Rights Agreement with Oscar N. Harris for the naming rights to %z of the
gymnasium. Motion unanimously approved. A copy ofthis Agreement for Sale of Naming Rights by
Oscar N. Harris is incorporated into these minutes as Attachment #2.
Mayor Snipes recognized and thanked each donor for their support. He announced that the ribbon
cutting and dedication of the Recreation Center will be held on Monday, August 29, 2005.
MEMORANDUM OF UNDERSTANDING.
RELATING TO A NON - PROFIT HEALTHCARE
SYSTEM FOR HARNETT COUNTY
Mayor Snipes opened the floor for discussion and/or motion.
Motion by Council Member Godwin, seconded by Council Member Galbreath to approve the
Memorandum of Understanding between Harnett County, the City of Dunn, Betsy Johnson Healthcare
Systems, Inc., Betsy Johnson Hospital Authority and WakeMed. Motion unanimously approved. A copy
ofthis Memorandum of Understanding Relating to a Non - Profit Healthcare System for Harnett County is
incorporated into these minutes as Attachment #3.
Mayor Snipes asked WakeMed President and CEO William K. Atkinson, Ph.D. to come forward to make a
few comments. He welcomed Dr. Atkinson.
Dr. Atkinson gave the following statistics and information with regard to WakeMed and the proposed
MOU:
•
WakeMed has a nearly fifty (50) year history serving generations of North Carolinians
•
WakeMed served ninety-nine (99) of one - hundred (100) counties in the state last year
•
WakeMed is the second largest provider of indigent care in the state of North Carolina, providing
indigent care in excess of 99.9 million dollars last year, with a projection of 117 million dollars in
uncompensated care this year
•
Private Not - for - Profit organization
•
Serve a very large and growing geographic area of North Carolina
•
WakeMed has been a significant provider of care for the citizens of Harnett County for nearly (50)
years
•
Total of 138 hospitals in North Carolina with different types of ownership
•
Local communities decide how they will provide healthcare
•
Fifty percent (50 %) of all admissions that occur in the state, occur in only eleven (I1) hospitals.
Those principally tend to be hospitals that provide the most advanced and expensive services such
as bum treatment, heart transplant services, advanced cardiac services, and trauma services
•
Due to demand of advanced services, WakeMed experiences over 100% use of their beds each day
•
Urban hospitals and hospitals that provide the most advanced, expensive services and the largest
amount of indigent care are looking for methodology to even out the delivery of care
•
A Non - Profit organization is a very strong way to provide care
•
WakeMed system does not receive any government agency subsidy
•
Board Representation should include everyone within the geographic district that is served so that
all of Harnett County is represented
66
Proposed hospital for central Harnett County located in Lillington should start with a minimum of
fifty (50) beds with potential to grow and three (3) operating rooms
Harnett County has been asked to make available enough property to open the initial hospital with
the ability to grow. This facility will grow and will become a major source of new employment in
central Harnett County
This proposed facility will have new additional technology and will attract employment of
caregivers and a level of care that has never been available
Dr. Atkinson thanked the Council for allowing him the opportunity to speak.
Mayor Snipes thanked Dr. Atkinson for his comments. With regard to healthcare for the entire County,
Mayor Snipes stated that this is a major step in going forward to the future for the citizens in Harnett
County.
Mayor Snipes thanked everyone for uniting to move forward with this healthcare system.
With no further business to discuss, the meeting was adjourned at 7:20 p.m.
Attest:
Debra G. West
City Clerk
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Mayor