Minnesota Session Laws - 1994, Regular Session

                            CHAPTER 471-S.F.No. 2551 
                  An act relating to the city of Duluth; establishing 
                  the powers and duties of the board of directors of 
                  trusts of the city of Duluth in the establishment, 
                  administration, management, maintenance, improvement, 
                  and financing of Miller-Dwan hospital; amending Laws 
                  1969, chapter 224, sections 1, 2, and 3. 
        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
           Section 1.  Laws 1969, chapter 224, section 1, is amended 
        to read: 
           Section 1.  [Duluth, city of; hospitals.] All rights, 
        powers, and duties of the city of Duluth concerning property and 
        estate donated to or otherwise acquired by the city for the 
        establishment and maintenance of hospitals has for many years 
        been and shall continue to be exercised and discharged by the 
        city through the instrumentality of a board of seven 15 persons 
        called directors of trusts.  Funds were donated to the city for 
        the establishment of a free and public hospital and dispensary 
        for secular use and benefit of worthy sick and helpless poor, 
        without distinction of sex, creed, or nationality.  This purpose 
        has been fulfilled by the establishment of the Miller-Dwan 
        Memorial Hospital which is now owned and operated by the city 
        through the instrumentality of the directors of trusts, in 
        accordance with orders of the district court construing the 
        terms of said donation.  To renovate, remodel, and enlarge the 
        existing building and facilities of this hospital, to develop a 
        building program based on present and future community needs for 
        the purpose of re-establishing and thereafter maintaining it as 
        a general hospital, to construct additions, including facilities 
        to be jointly occupied with the St. Louis county health 
        department and other public agencies, and to establish 
        connections with adjoining private rehabilitation facilities 
        serving the public on a nonprofit basis, the directors of trusts 
        are authorized to acquire in the name of the city of Duluth all 
        real and personal property necessary and incidental to such a 
        building program and to the operation, administration, 
        management, and control of the expanded hospital facilities, to 
        enter into all contracts on behalf of the city necessary and 
        incidental to the building program, and to finance the cost 
        thereof, in excess of funds on hand and funds provided by 
        governmental or private grants, by the issuance, with the 
        approval of the Duluth economic development authority, of 
        revenue bonds of the city, and to pledge for the payment and 
        security of such bonds and the interest thereon all or any 
        defined portion of the net revenues of all hospital facilities 
        now and hereafter owned by the city, in excess of the normal, 
        reasonable, and current costs of the operation, administration, 
        and maintenance thereof.  The bonds may be issued and sold at 
        such times, upon such notice, if any, in such form and 
        denominations, bearing interest at such rate or rates, maturing 
        on such dates, either without option of prior payment or subject 
        to prepayment upon such notice and at such times and prices, 
        payable at such bank or banks, within or without the state, with 
        such provisions for registration, conversion, and exchange and 
        for the issuance of notes in anticipation of the sale and 
        delivery of definitive bonds, and in accordance with such terms 
        and covenants as the directors of trusts shall establish by 
        resolution, and not subject to the conditions or limitations set 
        forth in Minnesota Statutes, chapter 475, or any other law; 
        provided that in the event the full faith and credit of the city 
        is pledged to the payment of any series of such bonds, the 
        issuance thereof as proposed in a resolution of the directors of 
        trusts shall be authorized by an ordinance duly adopted by the 
        city council in accordance with the provisions of the city 
        charter, and the bonds shall not be sold or delivered until and 
        unless such ordinance has become effective, and shall be sold 
        and secured in the manner provided by Minnesota Statutes, 
        chapter 475. 
           All real estate owned by the city of Duluth for hospital 
        purposes in the name and style of "Miller Memorial Hospital, 
        doing business as Miller-Dwan Medical Center by and through its 
        Directors of Trusts pursuant to Laws 1969, chapter 224" or 
        otherwise, may be sold, conveyed, transferred, or otherwise 
        disposed of by the directors of trusts only after a duly noticed 
        public hearing held before the Duluth city council, and approval 
        of the council evidenced by an ordinance adopted at a meeting 
        held at least seven days after such public hearing.  The 
        provisions of this paragraph shall not apply to the transfer of 
        an interest in such real estate that is incidental to the 
        issuance of revenue bonds approved by the Duluth economic 
        development authority under this section. 
           Sec. 2.  Laws 1969, chapter 224, section 2, is amended to 
        read: 
           Sec. 2.  The mayor of the city shall be ex officio a member 
        of the board of directors of trusts and may appoint a person to 
        serve as a member in the mayor's absence.  The other six current 
        members shall complete their current terms, and their successors 
        shall be residents of the city and appointed by the judges of 
        the district court of the district in which the city is located, 
        by concurrent action of a majority of the judges, for the 
        following terms beginning with date of appointment; two for a 
        term of two years, two for a term of four years and two for a 
        term of six years, and thereafter as these terms expire the 
        vacancies caused thereby shall be filled by appointment for six 
        year terms.  Upon petition of the board of directors of trusts, 
        these judges, by like concurrent action, may increase the number 
        of members on the board of directors of trusts to as many as 
        fifteen, without amendment of this act.  If an increase in 
        membership should be made, the new members shall be appointed 
        for terms deemed appropriate by such district judges, but not 
        exceeding six years.  These judges, by like concurrent action, 
        shall appoint members to fill out the unexpired term of any 
        member who for any reason ceases to be a member before the 
        expiration of his term. terms of six years.  However, beginning 
        with the first vacancy on the board of directors of trusts 
        occurring after the effective date of this act, the Duluth city 
        council shall appoint one of its members to fill the vacancy and 
        shall appoint the successive successors to that initial 
        appointment.  Members of the council who are appointed by the 
        council to the board of directors of trusts shall serve for a 
        term of six years or until their tenure on the council ends, 
        whichever occurs sooner.  The council appointee to the board 
        shall not be a member of the Duluth economic development 
        authority during the appointee's tenure on the board.  Vacancies 
        on the board in positions appointed by the judges occurring 
        before the end of a term must be filled by the judges for the 
        unexpired term in the same manner as used in making full-term 
        appointments.  The judges of this district court shall meet and 
        take action upon any of the matters in this section specified, 
        upon call of the senior judge of the district or upon the 
        petition of the mayor or any resident taxpayer of the city.  
        However, the directors of trusts may take any action authorized 
        in this act without prior order of the court. 
           Sec. 3.  Laws 1969, chapter 224, section 3, is amended to 
        read: 
           Sec. 3.  The directors of trusts shall have power to make 
        rules and bylaws for the proper conduct of their business; to 
        appoint and remove from time to time such agents and employees 
        as in their judgment may be required for the proper discharge of 
        their duties; to determine the duties and compensation of all 
        such agents and employees, who may but are not required to be 
        members of the public employees retirement association; to 
        employ legal counsel; to make such contracts and agreements as 
        in their judgment may from time to time be required in the 
        acquisition, betterment, operation, administration, maintenance, 
        control, and management of city hospital facilities, in 
        conformity with the provisions of the city charter and of 
        ordinances enacted by the council relating to the procedure to 
        be followed by the directors of trusts in the award of contracts 
        and the making of purchases, except that the directors of trusts 
        shall designate a person other than the city purchasing agent to 
        act for such purchasing agent in awarding contracts and making 
        purchases; and to do, perform, and discharge all and singular 
        whatever acts and duties are or from time to time may become 
        proper or necessary to be done by the city in discharge of its 
        duties in connection with any use or trust affecting hospital 
        properties.  The directors of trusts shall file with the city 
        clerk on or before February 15 of each year a report for the 
        preceding calendar year showing all receipts and disbursements 
        with the sources and purposes thereof, together with a statement 
        of assets under their control and property acquired or disposed 
        of during the year, and such other general information as to the 
        management and control of the trust property as in their 
        judgment is proper.  The board of directors of trusts is subject 
        to the provisions of section 471.345.  Their official books and 
        records shall be audited at least annually by the state public 
        examiner auditor or by a certified public accountant, as 
        determined by the directors of trusts., notwithstanding the 
        provisions of any law requiring audit of hospital books and 
        records by the state public examiner.  If the directors of 
        trusts determine that the hospital books and records shall be 
        audited by a certified public accountant, the directors shall 
        notify the state public examiner that an audit by his office 
        will not be necessary.  The report of each such audit shall be 
        filed promptly with the public examiner and the city 
        council.  The directors of trusts shall file with the city clerk 
        copies of all financial reports which it is required by law or 
        rule to submit to the state of Minnesota, within seven days of 
        the submission of the report to the state agency receiving the 
        report.  The directors of trusts shall also annually file with 
        the city clerk copies of all audit reports of its financial 
        affairs prepared by the state auditor or by a certified public 
        accountant, within 30 days of the completion of the audit report.
           The board of directors of trusts is a "public body" for 
        purposes of the open meeting law, Minnesota Statutes, section 
        471.705.  Notwithstanding section 471.705, the board of 
        directors of trusts may meet in closed session pursuant to 
        section 144.581, subdivision 5. 
           Sec. 4.  [EFFECTIVE DATE.] 
           This act is effective the day after compliance with 
        Minnesota Statutes, section 645.021, subdivision 3, by the 
        governing body of the city of Duluth. 
           Presented to the governor April 18, 1994 
           Signed by the governor April 20, 1994, 1:50 p.m.