12-14-1976 CCM (2)MINUTES
SPECIAL MEETING - HUTCHINSON CITY COUNCIL
TUESDAY, DECEMBER 14, 1976
Mayor Black called the meeting to order at 4:08 P.M. with the following mem-
bers present: Aldermen Westlund, B. Peterson, Haag, and K. Peterson in addi-
tion to Mayor Black. Also present were: Administrative Assistant Fleetham
and City Attorney Schantzen.
Mr. Philip Graves, Hospital Administrator, presented the recommendations from
the Hospital Board for the Medical Office Building. The new clinic will cover
approximately 15,000 square feet and will be occupied by the doctors of the
Hutchinson Medical Center (70%), Dr. Russell Thompson, Willmar ophthalmologist
(8%) and some hospital facilities, with room for future expansion.
Mr. Graves reported that the group of pharmacists has changed its mind about
leasing that portion of the facility. At the present time the space allowed
for the pharmacy will be left vacant, which covers about 6% of the area.
The bond proceeds will provide a reserve to provide space for satellite doctors.
Two specialists are willing to share facilities if three other physicians can
be found agreeing to each spend one day a week in Hutchinson.
An agreement has been reached for the leases with Dr. Russell Thompson (10
years) and the Medical Center (22 years). The Medical Center will pay $81,300
per year for costs of operation and debt service. Dr. Thompson will pay $12,000
a year. Mr. Graves told the Council that the financial arrangements should make
the facility self-sustaining.
Some problems were encountered with the contractors and sub -contractors because
of union wages, but these differences have been resolved.
Mr. Graves presented the Hospital Board's recommendation to the City Council to
sign the leases, issue the bonds, and award the contracts.
Mayor Black remarked that there are some things about the plan that he has res-
ervations about, but on the whole it is a good project and for the best inter-
est of the community.
After discussion, it was moved by Alderman Haag, seconded by Alderman Westlund,
to waive reading and adopt Resolution No. 5845 entering into lease agreements
with.Hutchinson Medical Center, Inc. and Dr. Russell Thompson. Motion passed
unanimously.
A motion was made by Alderman Westlund, seconded by Alderman Haag, to waive
reading and adopt Resolution No. 5846 calling for the issuance of bonds in the
amount of $1,000,000 for the construction of the Medical Office Building.
Motion passed unanimously.
Council Minutes, December 14, 1976
It was moved by Alderman Haag, seconded by Alderman Westlund, to waive read-
ing and adopt Resolution No. 5847 awarding bids to General Contractor Adolph -
son -Peterson of Minneapolis for $464,300; Sub -Contractor Krasen Plumbing and
Heating for the mechanical work for $173,832; and Sub -Contractor A&B Electric
for the electrical work for $75,250. Motion passed unanimously.
There being no further business, a motion was made to adjourn at 4:37 P.M.
by Alderman K. Peterson, seconded by Alderman Haag. Motion unanimously passed.
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