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Council hears updates on projects throughout city

By Sue Sitter - | Nov 6, 2021

Rugby City Council members heard updates on construction projects ranging from a new hospital to underground infrastructure work at their regular meeting Nov. 1.

Heart of America Medical Center CEO Erik Christenson gave an update on plans for a new hospital on the east side of town near U.S. Highway 2. Christenson estimated the project cost to be $50 million, with 10 percent, or $5 million in equity to be raised by the Good Samaritan Hospital Association.

Christenson said the HAMC board of directors had decided on the size of the new facility. “There were two options on the table,” Christenson said. “One was a ten-bed hospital with 30 beds in long term care, or a 25-bed critical access hospital in which we’d use 18 of those beds for non-skilled or long-term swing beds. They voted to go with the 25-bed option. So, what that means is in three years, we will have long term care services but they will not be in the form of a licensed long-term care. They will be in the form of an 18-bed, non-skilled swing bed long-term care unit.”

“So, the same services will be provided under a different license. We’re capitated on the amount of beds we can have. We’ll have 25 beds and we’re going to use some of those for acute care and then be using 18 of those for long-term swing bed,” Christenson added.

“There were multiple reasons for doing that,” Christenson added. Number one, we couldn’t find staff for the long-term care. We struggle to find staff. We have nine contract employees up there.”

Christenson said the contract staff cost the facility more money than regular employees and drain revenues. He added long-term care units cost hospitals money in general. “We’re losing money on long-term care every year. This year, I think we’re on pace to lose over $900,000 on revenues in long-term care.”

Christenson also noted reimbursed costs for hospitals are capped at certain levels for facilities that include long-term care units, while facilities without the units receive full reimbursement.

“Critical access hospitals are not designed to be affiliated with long-term care (units),” Christenson added, noting he had spoken with Chris Jones, head of the North Dakota Department of Human Services. “He advised us not to build a long-term care,” Christenson said of Jones. “He said, ‘you do not want to go down that route.’ He said there would be financial difficulty if we would do that. He said it would be better just to run a hospital and update basic care and enhance staffing.”

Christenson said basic care services “could certainly apply to a lot of those elder care needs.”

He noted updating basic care would improve care overall and the hospital’s financial picture.

Christenson said the steering committee and architects were considering different designs for the facility, including a two-story building. He added the architects “hoped to break ground” on the new project in spring time, although the hospital’s application for funding from the USDA Rural Development Department would possibly not be approved yet.

The council also heard from Rugby Public Schools Superintendent Mike McNeff.

McNeff told the council parents and community members had met at Ely Elementary School for a presentation on a bond referendum to expand the Ely campus.

McNeff showed architectural drawings for the project and said the new design would meet student needs better. The design would also provide a safer environment for students before and after school.

He added the project would use Elementary and Secondary School Emergency Relief funds and funds from a current levy that was put in place to pay for construction on the Rugby High School campus in 2010. McNeff said some of the levy is currently set to expire in 2024. Other parts “would fall off this year or next year.” However, the Rugby Public School Board has proposed a referendum to extend the current mill levy rate to fund the Ely expansion.

McNeff said the net result of the proposal would be no levy increase above current levels to taxpayers.

The bond measure will be up for vote Dec. 1.

Committees update council on city jobs, projects

In other business, Frank LaRocque of the council recreation committee reported work would be done on the softball diamonds to get them in shape by spring to host Rugby Panthers home softball games. LaRocque said Rugby High softball coach Miriah Yoder would do maintenance work on the field before winter. Council members also discussed structures at the recreation complex and repairs needed.

Finance Committee Chair Gary Kraft reported meeting with park board members to discuss how any cuts to their budget must conform to the North Dakota Century Code. Kraft said the committee would research the matter. Kraft also reported the committee discussed a recording system for phone calls to city hall and budgeting for the city water system maintenance.

Kraft also gave a report by the city ordinance committee, which said members had reviewed water and sewer connection requirements and subdivision ordinances. The committee also recommended excluding extraterritorial businesses from liquor license requirements. Kraft said the exclusion would allow the Rugby Eagles to serve alcoholic beverages during the Pierce County Fair.

Public Works Committee Chair Dave Bednarz reported progress on city water systems and wells. Bednarz also said workers were cleaning the streets. Bednarz said he and Rugby Mayor Sue Steinke were set to interview a candidate for an operator position open at the city water plant.

Public Safety Committee member LaRocque reported members had reviewed the police sergeant job description for the Rugby Police Department and considered four applications submitted for an open patrol officer position. Rugby Police Chief John Rose said the department had not set up interviews for the position.

Buildings Committee Member Neil Lotvedt updated the council on committee discussions of windows and upgrades needed for the Rugby Armory.

Council members discussed how the building could be used in the future for city office space, possibly council chambers or space for JDA meetings. Council member Wayne Trottier cautioned the council to make sure the building complied with requirements by the federal Americans with Disabilities Act. Council members voted to investigate the cost of remodeling the south part of the armory.

Lotvedt also asked the council if he could review a contract drawn up with the city for roofing repairs on the armory.

Additionally, Bednarz noted he had received complaints that the armory needed cleaning.

Lotvedt also told the council workers from Fargo Glass would repair the front door of city hall, which he said could come loose on the bottom.

LaRocque told the council the ordinance committee had been updating the city’s employee handbook.

In other business, council members approved a motion by Lotvedt to accept $881,000 in funds from the North Dakota State Water Commission to purchase clarifiers for the city water treatment plant.

Jim Olson of engineering firm AE2S told the council he had lined up suppliers for the clarifiers and estimated costs would vary. The $881,000 would represent 60 percent of actual costs. Trottier pointed out the actual cost and commission’s share could be lower.

Olson also told the council he had spoken with Wyatt Hanson of the North Dakota Department of Transportation on work proposed for North Dakota Highway 3 from the area near M.J. McGuire Company extending north to First Street. Olson said Hanson had told him “We are confident that Second, Third and Fourth (streets) will go radius to radius when we replace that pipe.” Olson said the “radius-to-radius” referred to the portion of work covered by the DOT. However, Olson added the engineers would have trouble with areas of sewer line that vary in depth, especially north of the BNSF overpass.

Council members and Olson agreed that the DOT should stand by previous agreements to cover more work than they recently proposed at the council’s regular meeting Oct. 4.

Olson also told the council he intended to advertise for bids on proposals for work on infrastructure near 2 ½ Avenue and Sixth Street Southeast. Olson said the project would go to bid Dec. 3 at 11 a.m. Olson said the bid process would conform to requirements for USDA Rural Development funding.

Council members also voted unanimously to approve an updated comprehensive land use plan. After further discussion, they agreed to maintain portions of a previous plan for the city that included capital improvements. That plan was drafted in 2014

Lotvedt pointed out the city needed several projects to be done on aging facilities and crumbling infrastructure. Since the city had limited funds to meet all of its needs, Lotvedt said he had drawn up a list of priorities of needed work.

Lotvedt said his “top five” included the city’s comprehensive land use plan, a new generator for the armory, improvements to the water plant, and a geo-mapping project of the city. Lotvedt said all projects “are basically done” except for the geo-mapping.

Lotvedt noted a needed sewer-water system replacement would cost $23 million over five years.

However, Steinke said she had contacted AE2S for revisions on estimates for the project.

Lotvedt also proposed looking at repairs “for the bad spots” on the sewer line.

After discussion, the council agreed to discuss the priorities more in committees. Trottier suggested public works and finance committee approval would make project recommendations stronger.

In other business, the council voted to approve engaging legal firm Arnston-Stewart, Fargo, for counsel on the 2 ½ Avenue project.

The council also approved a district map for the city that enlarged parts of Ward 1. The city also approved raffle permit requests submitted by the Rugby Sports Boosters and Little Flower School Parent-Teacher Organization for their annual Dine and Bid dinner.

The council will hold their next regular meeting Dec. 6.