March 26, 2002

SE Council approves hospital plans

Referendum vote

set April 25

By FRITZ BUSCH

Journal Staff Writer

SLEEPY EYE -- The Sleepy Eye City Council unanimously approved a $4.9 million hospital expansion and renovation plan at a special meeting Monday night.

Project funding by the U.S. Food and Drug Administration hinges on a $4.5 million bond referendum vote set for noon to 8 p.m., Thursday, April 25, in the City Council Chambers.

A hospital capital campaign will be designed to raise another $500,000.

City property taxes would rise to pay for the project only if the hospital and clinic could not pay for the general obligation bonds.

Most of the project funding -- $4.5 million -- would be guaranteed by the USDA over a 40-year period at no more than 4.75 percent interest and possibly at a lower rate.

The purpose of the project is to integrate the clinic -- which was recently purchased by the city from two local doctors -- into the hospital, creating a community medical center. The project is geared to provide a more patient-friendly environment, higher-quality care and more efficient staff service.

A new weather-protected front entrance will be handicap-accessible on grade. Laboratories will be larger to allow for ample space for all equipment with computer and paperwork areas and allow for additional diagnostic equipment to meet long-range needs. The clinic and hospital labs and radiology departments will be combined.

A central nurse station will support all functions. The emergency room will be located near by.

The 30,000 square foot, two-story project would include a 2,100 square feet lobby and reception area, medical records and business office (3,300 square feet), clinic (4,650 square feet), emergency services and radiology lab (3,875 square feet), nurse station and pharmacy (2,493 square feet) and obstetrics and bathing (804 square feet). Heating, ventilation and air conditioning and fire sprinklers would be added to the 1941 section of the hospital building.

"We want to provide the best health care service we can," said hospital board member Chisey Hansen. "The hospital is free of debt now and has been that way for years."

Council President Wayne Novotny said the health care industry is changing, and the hospital and clinic need to adjust to keep up. With low interest rates, he said now is a good time to take on long-term debt.

Hospital board member Ed Treml said the hospital project would be a community economic development tool and provide much more service to the community. Treml said the hospital already employs 80 full and part-time employees and would add more, including two doctors, after the project.

"It's important to do this and do it right now," Sleepy Eye Hospital Administrator David Hartberg said. "We now have a small, antiquated building. We need more room to handle more providers and patients. We should be able to generate enough revenue to handle the construction costs."

Hartberg said an outside firm will create a brochure to help promote the project. Open forums on the project will be held in town in the near future.

Sleepy Eye resident Del Berg praised the hospital board, administration and staff for its work on the project, designed by Engan Associates Architects of Willmar.

In other action, the council unanimously approved the appointment of Rob Anderson of Redwood Falls as its new, first-ever Community Development Director for the Sleepy Eye Economic Development Authority. Anderson, the former director of the Redwood Area Development Corporation, starts working in Sleepy Eye on April 1.

Anderson's starting salary is $48,000. With a satisfactory performance evaluation after six and 12 months, he would get 2 to 5 percent raises. He would receive performance evaluations and raises yearly thereafter, subject to council and EDA approval.

If he moved to Sleepy Eye within 24 months, he would get another 2 to 5 percent pay raise plus $2,000 for moving expenses. He is also eligible for the city's deferred compensation plans and a member of the Public Employees Retirement Association.