HomeMy WebLinkAboutA001 - Letter from MGMC with changes to Chapter 12 a
aMAR Y GREELE Y
MEDICAL CENTER Q
Specialized care. Personal touch.
APR 2 0 2011
April 15, 2011 CITY CLERK
CITY OF A -"E�,In1NA
The Honorable Ann Campbell,Mayor and
Members of the City Council of the City of Ames, Iowa
515 Clark Avenue
Ames, IA 50010
Re: Proposed Amendments to Municipal Code Chapter 12—The City Hospital
Dear Mayor Campbell and City Council Members:
At their March 28, 2001 meeting, the Mary Greeley Medical Center Board of Trustees
reviewed and discussed several recent changes to the Iowa Code related to the functions
of municipal hospitals. Those State statutory changes have resulted in some
inconsistencies between the provisions of the Iowa Code regarding municipal hospitals
and the provisions of the Ames Municipal Code regarding Mary Greeley Medical Center.
City Attorney Doug Marek has prepared an analysis of the incompatible code sections,
and he also has drafted an ordinance that would bring the Municipal Code into
conformity with the corresponding State statutes. Enclosed are a copy of the draft
ordinance and an annotated copy of Chapter 12 indicating how the ordinance would
modify the current Municipal Code. The draft ordinance would affect five sub-sections
of Chapter 12:
Municipal Code Section 12.4 currently provides that Trustees shall not receive
compensation for services performed but may receive reimbursement for expenses
incurred in carrying out their duties. The Iowa Code provides that Trustees shall
not receive compensation for services performed but shall receive reimbursement
for expenses incurred. The proposed change would not result in any change from
current procedures for Mary Greeley Medical Center.
Municipal Code Section 12.6 concerns the initial organization of the Board of
Trustees, and provides for election by the Board of a chairperson and a secretary.
The new provisions of the Iowa Code specify election of a treasurer in addition to
the chairperson and secretary. The new Iowa Code also distinguishes between
the beginning dates of terms of office for trustees who are elected at general or
regular city elections from those who are appointed or who are elected at special
elections. The current Municipal Code section 12.6 does not make that same
distinction and should therefore be amended to correspond with the Iowa Code.
i
1111 Duff Avenue,Ames,IA 50010•(515)239-2011 •www.mgmc.org
Municipal Code Section 12.15(3) is based on former Iowa Code sections 347.28
and 347.29, both of which were repealed by the General Assembly. Under
current Municipal Code procedures, the Board of Trustees is required to twice
provide public notice and then, no sooner than two weeks after the second notice,
hold a hearing prior to selling or leasing property that is no longer needed for
hospital purposes. The proposed change would eliminate this requirement and
would allow the Board of Trustees without delay to take action to dispose of
property no longer needed for hospital purposes.
Municipal Code Section 12.15(4) is modeled after Iowa Code former section
374.30, which also has been repealed. For property that is still needed for
hospital purposes, leases of more than three years now require specific approval
by the City Council. The proposed changes would eliminate the requirement for
City Council approval of leases of hospital property for more than three years.
Municipal Code Section 12.17 provides the manner for filling vacancies on the
Hospital Board of Trustees in accordance with procedures applicable to elected
city office. Persons appointed to fill vacancies are approved by the City Council.
Under new Iowa Code procedures, however, vacancies on the Board of Trustees
may, until the next general election, be filled by appointment by the remaining
members of the Board. The proposed change would make the Municipal Code
conform to the Iowa Code. The procedure for election of Trustees who are
residents of the hospital service territory by the voters of the City of Ames would
remain unchanged.
The Board of Trustees considered the proposed draft ordinance and determined that
amending the Municipal Code to clarify it and to avoid any conflicts with the Iowa Code
would benefit Mary Greeley Medical Center. The Trustees request that the City Council
proceed with adoption of the proposed ordinance amending Chapter 12 of the Municipal
Code.
If there are any questions related to this request or other matters, please contact me at
515/239-2102.
Sincerely yours,
Z'-'L /"0'�'
Brian Dieter
President & CEO
2
City Attorney's Office
515 Clark Avenue,P. O.Box 811
Caring People 7 A
Quality Programs Ames,IA 50010
Exeep(ioaal Service Phone: 515-239-5146 •Fax: 515-239-5142
April 8, 2011
Brian Dieter
President/CEO
Mary Greeley Medical Center
1111 Duff Avenue
Ames, Iowa 50010
Re: Proposed Amendments to Ames Municipal Code Chapter 12 —The City Hospital
Dear Brian:
Last month I drafted for consideration by the Board of Trustees proposed amendments to the Ames
Municipal Code Chapter 12,which provides for the management,control,and government of Mary
Greeley Medical Center. The proposed amendments were prompted by recent state legislation that
modified Iowa statutory authority regarding municipal hospitals and made some provisions of the
Municipal Code inconsistent with the corresponding provisions in the Iowa Code.
During their discussion of the draft amendment, the Board of Trustees identified one additional
section of Chapter 12 that is inconsistent with the current Iowa Code. Municipal Code Section 12.6
concerns the initial organization of the Board of Trustees, and provides for election by the Board of
a chairperson and a secretary. In contrast,the new provisions of the Iowa Code provide for election
of a chairperson,a secretary,and a treasurer. The new provisions of the Iowa Code also distinguish
the beginning dates of terms of office for trustees who are elected at general or regular city elections
from those who are appointed or who are elected at special elections. The current Municipal Code
Section 12.6 does not make that same distinction and should therefore be amended to correspond
with the Iowa Code. I suggest that in addition to the changes noted in my prior draft ordinance,
Municipal Code Section 12.6 be clarified and amended as follows:
Sec. 12.6 INITIAL ORGANIZATION
Terms of office of trustees elected pursuant to general or regulary elections
shall begin at noon on the first day in Januarywhich is not a Sunday or legal holiday.
Terms of office of trustees appointed to fill a vacancy or elected pursuant to special
elections shall begin at noon on the tenth day after appointment or the special
election which is not a Sunda or legal holiday. The Hospital Trustees shall begin
their terms of office b taking the
oath of office, and organize as a board by the election of one trustee of their nmirber
as chairperson,one trustee as treasurer,and one trustee as secret _
}
be req-aired of them.Terms of office of Hospital Trustees shall extend to noon on the
first day in January which is not a Sunday or legal holiday or until their successors
are elected and qualified.
[State Law reference: 2011 Iowa Code§392.6(3)(a)J.
Based on the Board of Trustees' discussion at their last meeting, I understand that they will be
requesting that the Ames City Council adopt changes to the Municipal Code to make Chapter 12
consistent with the analogous provisions in the Iowa Code. To facilitate that process,I am enclosing
with this letter an annotated copy of Municipal Code Chapter 12, with all of the proposed changes
indicated in bold. I am also enclosing a copy of a draft ordinance that incorporates all of the changes
considered by the Board of Trustees last month,including the change to Section 12.6 described above.
Yours truly,
Douglas R. Marek
City Attorney
Enclosures
City Attorney's Office
515 Clark Avenue, P. O. Box 811
Caring People Ames, IA 50010
Quality Program Phone: 515-239-5146 • Fax: 515-239-5142
Exceptional Service
March 11, 2011
Brian Dieter
President/CEO
Mary Greeley Medical Center
1111 Duff Avenue
Ames, Iowa 50010
Re: Proposed Amendments to Ames Municipal Code Chapter 12—The City Hospital
Dear Brian:
Chapter 12 of the Ames Municipal Code provides for the management, control, and government
of Mary Greeley Medical Center and such other hospitals and health care facilities established,
operated, and maintained by the Hospital Board of Trustees. The Ames City Council most
recently amended Chapter 12 in 1995 for the purpose of bringing the municipal ordinances into
conformity with corresponding state statutes setting out the powers and duties of municipal
hospital trustees.
State statutory authority regarding municipal hospitals changed in several ways during the recent
83"d session of the Iowa General Assembly. With the passage and approval of House File 260--
an act relating to the operation of county, city, and memorial hospitals and the powers and duties
of hospital trustees--the legislature consolidated several sections of the Iowa Code related to
public hospitals. Because of those legislative changes, it is appropriate for the Ames City
Council to consider whether the Ames Municipal Code should once again be amended to
conform to the recently-amended corresponding state statutes.
Four current municipal code sections differ from the new state code provisions. Briefly, the
proposed changes are as follows:
Municipal Code Section 12.4 currently provides that Trustees shall not receive
compensation for services performed but may receive reimbursement for expenses
incurred in carrying out their duties. The state code provides that Trustees shall not
receive compensation for services performed but shall receive reimbursement for
expenses incurred. The proposed change would not result in any change from current
procedures for Mary Greeley Medical Center.
Municipal Code Section 12.15(3)is based on Iowa Code sections 347.28 and 347.29,
both of which were repealed by HF 260. Under current Municipal Code procedures the
Board of Trustees is required to twice provide public notice and then,no sooner than two
weeks after the second notice,hold a hearing prior to selling or leasing property that is no
longer needed for hospital purposes. The proposed change would eliminate this
requirement and would allow the Board of Trustees without delay to take action to
dispose of property no longer needed for hospital purposes.
Municipal Code Section 12.15(4)is modeled after Iowa Code section 374.30,which also
has been repealed. For property that is still needed for hospital purposes, leases of more
than three years now require specific approval by the City Council. The proposed
changes would eliminate the requirement for City Council approval of leases of hospital
property for more than three years.
Municipal Code Section 12.17 provides the manner for filling vacancies on the Hospital
Board of Trustees in accordance with procedures applicable to elected city office.
Persons appointed to fill vacancies are approved by the City Council. Under new Iowa
Code procedures,however,vacancies on the Board of Trustees may,until the next
general election,be filled by appointment by the remaining members of the Board. The
proposed change would make the Municipal Code conform to the Iowa Code. The
procedure for election of Trustees who are residents of the hospital service territory by
the voters of the City of Ames would remain unchanged.
Attached to this letter is a copy of current Municipal Code Chapter 12,with suggested changes
indicated in bold. Additions are indicated with underlining, and deletions are marked with
strikethroughs. For each proposed Municipal Code amendment, I have included a citation to the
corresponding amended section of the Iowa Code. I have also attached a copy of House File 260
for your reference.
Please present this information to the Hospital Trustees for their consideration. I am certain that
the Ames City Council would appreciate having the Trustees' recommendation on these
proposed changes.
Yours truly,
d f-� -4�P-4
Douglas R. Marek
City Attorney
Enclosures
c: Mayor Ann Campbell and Members of the City Council
PROPOSED CHANGES TO MUNICIPAL CODE CHAPTER 12
THE CITY HOSPITAL
(All Sections with Changes Noted in Bold, with Editing Marks & State Code
References)
Sec. 12.1. ADMINISTRATIVE AGENCY CREATED; PURPOSE, TITLE.
There is created an administrative agency, in the form of a board of trustees, for the
purpose of providing for the management, control and government of the city hospital of the City
of Ames known as the "Mary Greeley Medical Center" and such other hospitals and health care
facilities as may be established, operated or maintained by the City of Ames, said board to be
entitled the Ames City Hospital Board of Trustees. (Hospital Trustees)
Sec. 12.2. ELECTION OF MEMBERS, TERM OF OFFICE.
The Ames City Hospital Board of Trustees shall consist of five(5)persons elected in the
regular city elections, whose terms of office shall be four(4) years.
Sec. 12.3 QUALIFICATIONS.
Any adult may be a candidate for the Ames City Hospital Board of Trustees. A candidate
for Hospital Trustee must be nominated by petition of residents of the City in accordance with
the election laws of Iowa.
Sec. 12.4. COMPENSATION.
Hospital Trustees shall not receive any compensation for services performed, but
may shall receive reimbursement for actual and necessary expenses incurred in
performance of the trustees' duties as trustee.
[State Law reference: 2011Iowa Code§392.6(4)].
Sec. 12.5. GENERAL POWERS AND DUTIES.
The Hospital Trustees elected pursuant to this chapter shall, subject to the provisions of
this chapter, be vested with the authority and duty to provide for the management, control and
government of the City Hospital or health care facilities.
Sec. 12.6. INITIAL ORGANIZATION.
Terms of office of trustees elected pursuant to general or regular city elections shall
begin at noon on the first day in January which is not a Sunday or legal holiday. Terms of
office of trustees appointed to fill a vacancy or elected pursuant to special elections shall
begin at noon on the tenth day after appointment or the special election which is not a
Sunday or legal holiday. The Hospital Trustees shall begin their terms of office by;
within ten (fO) days after their election, qualify by taking the oath of office, and organize as
a board by the election of one trustee of their number as chairperson, one trustee as
treasurer, and one trustee as secretary, but no bond shall be required of t .Terms of
office of Hospital Trustees shall extend to noon on the first day in January which is not a
Sunday or legal holiday or until their successors are elected and qualified.
[State Law reference: 2011 Iowa Code§392.6(3)(a)J.
Sec. 12.7. DISCONTINUANCE.
In the event of the discontinuance of the City Hospital or health care facilities, the City
Council may discontinue the Hospital Trustees by adopting a resolution proposing such action
and publishing a notice as required by law, of the resolution and of a date, time and place of
public hearing on the proposal, and may discontinue the Hospital Trustees by ordinance or
amendment not sooner than thirty(30) days following the hearing.
Sec. 12.8. RULE MAKING.
Except as otherwise specifically provided in this chapter, the Hospital Trustees shall have
rule-making authority, and shall provide all needed rules and regulations for the use, economic
conduct, management, control and government of city hospitals and health care facilities not
contrary to law or inconsistent with the provisions of this chapter.
Sec. 12.9. ACCEPTANCE AND USE OF GIFTS.
The Hospital Trustees may accept property by gift, devise, bequest or otherwise; and, if
the Hospital Trustees deem it advisable, may, at public sale, sell or exchange any property so
accepted upon a concurring vote of a majority of all Hospital Trustees, and apply the proceeds
thereof, or property received in exchange therefor, to any legitimate hospital or health care
facility purpose.
Sec. 12.10. FUND FOR DEPRECIATION.
The Hospital Trustees may in their discretion establish a fund for depreciation as a
separate fund. Said funds may be invested in United States Government bonds and when so
invested, the accumulation of interest on the bonds so purchased shall be used for the purposes of
the depreciation fund. An investment when so made shall remain in United States Government
bonds until such time as in the judgment of the Hospital Trustees it is deemed advisable to use
the funds for hospital or health care facility purposes.
Sec. 12.11. JOINT VENTURES AND AFFILIATIONS.
The Hospital Trustees are hereby authorized to enter into any and all manner of contracts,
with any and all kinds of parties, public or private, for profit or non-profit, for the purpose of
joint ventures, affiliations, shared services, and cooperative activities of any and all kinds
pertaining to health care, including contracts that entail the formation and capitalization of new
legal entities, whether non-profit or for profit; and, such transactions, to the extent that they are in
accordance with law, are hereby fully approved by the City Council. No further specific approval
by the City Council of each such contract is required.
Sec. 12.12. RATES AND CHARGES.
(1) The Hospital Trustees may establish, impose, adjust and provide for the collection
of rates and charges to produce gross revenues at least sufficient to pay the expenses of operation
and maintenance of the City Hospital.
(2) When revenue bonds are issued and outstanding, the Hospital Trustees shall
establish, impose, adjust, and provide for the collection of rates to produce gross revenues at least
sufficient at all times to pay the principal of and interest on the revenue bonds as they become
due and to maintain a reasonable reserve for the payment of principal and interest, and a
sufficient portion of net revenues must be pledged for that purpose. Rates must be established by
resolution of the Hospital Trustees, published in the same manner as a city ordinance.
(3) So long as there are revenue bonds or pledge orders outstanding, the rates
established by the Hospital Trustees are subject to approval by the City Council.
Sec. 12.13. BORROWING, LIMITATIONS AND PROHIBITED ACTS.
(1) The Hospital Trustees shall not issue bonds or enter into a loan agreement or other
transaction that creates or purports to create a general obligation of the City of Ames.
(2) The Hospital Trustees shall not pledge the credit or taxing power of the City.
(3) There is not delegated to the Hospital Trustees, the powers, authorities and duties
provided in Division V of Chapter 384 Code of Iowa pertaining to issuance and sale of revenue
bonds.
Sec. 12.14. POWER AND AUTHORITY TO MAKE VALID CONTRACTS.
Except as otherwise provided in this chapter, the Hospital Trustees shall have the power
and authority to enter into contracts, and such contracts shall not be subject to review and
approval by the City Council if made and entered into pursuant to the procedures and provisions
of Iowa law and this chapter; and, when so made and entered into, such contracts, to the extent
otherwise valid by law, shall be valid, enforceable and not voidable by subsequent actions of the
City Council even if the Hospital Trustees should be dissolved.
Sec. 12.15. REAL ESTATE TRANSACTIONS.
(1) The Hospital Trustees may accept property by gift, devise, bequest or otherwise;
and, if the Hospital Trustees deem it advisable, may, at public sale, sell or exchange any property
so accepted upon a concurring vote of a majority of all Hospital Trustees, and apply the proceeds
thereof, or property received in exchange therefor, to any legitimate hospital or health care
facility purpose.
(2) Transactions for the acquisition of real estate, or of an interest in real estate,
including leases in which the City Hospital shall be the tenant, may be done on authority of the
Hospital Trustees without specific approval by the City Council.
(3) i he Hospital Tr istees may, on their ovvn antholity without spe
pliol to two vveel%-,s publication.
[State Law reference: House File 260, §17, 83'd General Assembly, 2009, repealing Iowa
Code§347.28 and§347.29]
' ' . [State Law reference: House
File 260, §17, 83'General Assembly, 2009, repealing Iowa Code§347.30]
Sec. 12.16. AUDIT AND BUDGET LAWS, COOPERATION.
(1) The Hospital Trustees shall take such measures as are necessary and appropriate,
at hospital expense, to meet requirements of law for an annual audit.
(2) The Hospital Trustees shall take such measures as are necessary and appropriate
to fully cooperate and assist in meeting the law and regulations of Iowa with respect to
certification of a city budget to the extent such laws and regulations pertain to the activities of the
City Hospital.
Sec. 12.17. FILLING OF VACANCIES.
A vacancy in a Hospital Trustee position shall be filled in the manner prescribed by
the laws of the State of Iowa pertaining to vacancies in elected city offices boards of
hospital trustees.
[State Law reference: House File 260, §16, 83`d General Assembly, 2009, amending Iowa
Code§347.10 and§392.6(3)(b)J