The Board Chair Called the Public Hearing to Order

PUBLIC HEARING

Monday, April 29, 2013

PUBLIC HEARING ON THE PROPOSED TRANSFER BY THE COUNTY TO A NEWLY FORMED LOCAL DEVELOPMENT CORPORATION OF THE OTSEGO COUNTY NURSING HOME FACILITY, KNOWN AS “OTSEGO MANOR” LOCATED AT 128 PHOENIX MILLS CROSS ROAD, COOPERSTOWN, NEWYORK 13326, AND OPERATED BY THE COUNTY UNDER CERTIFICATE NUMBER 3859300N AS A 174 BED RESIDENTIAL HEALTH CARE FACILITY

The Board Chair called the public hearing to order.

The Clerk of the Board read the Notice of Hearing as follows:

NOTICE OF PUBLIC HEARING

NOTICE is hereby given that pursuant to Not-for-Profit Corporation Law Section 1411(d) (3), the Otsego County Board of Representatives (the “County”) will conduct a public hearing to consider the proposed transfer by the County to a newly formed local development corporation of the Otsego County Nursing Home facility, known as “Otsego Manor” located at 128 Phoenix Mills Cross Road, Cooperstown, New York 13326, and operated by the County under Certificate number 3859300N as a 174 bed Residential Health Care Facility.

NOTICE is further given that the Board of Representatives will conduct a public hearing on the proposed transfer in the Otsego County Courthouse, in the Village of Cooperstown, New York on Monday, April 29, 2013 at 6:00 p.m. at which time all persons interested will be heard. The location of the public hearing is accessible to persons with a mobility impairment.

Dated: April 12, 2013 Carol D. McGovern

Clerk of the Board of Representatives

Otsego County, New York

Board Chair Clark asked Representative Stuligross, Chair of Otsego Manor Committee, to open with an introduction as to the reasons for this public hearing.

Russ Bachman, Acting County Treasurer, gave a brief presentation on Otsego Manor statement of revenues, expenses, and changes in net position (deficit) for the years ended December 31, 2012 and 2011, regional pricing, and financial obstacles.

Approximately one hundred people attended the hearing. Those persons wishing to speak were asked to sign a list.

The Board Chair called on persons wishing to speak in the order of the list.

Renee Barchitta, Roxbury, stated that she is an advocate for county nursing homes. She saidcounty operated homes have better quality of care, dedicated long-term staff, and 25% less turnover as opposed to for-profit nursing homes.

Keith Schue, CherryValley, stated that he and others have been trying to get those on both sides of this issue to work together. He does not believe pursuing a Local Development Corporation is the best course of action, but if one is created, he urged the Board to de-link that vote from one that would hand the Manor over to the LDC. He said the Manor should not be transferred to the LDC until responsible-qualified buyers are found. He stated that before the Manor leaves the Board’s hands, the County has an ethical responsibility to Manor residents and care providers to meet with the CSEA union in an effort to see if another solution can be found.

Tim Gibson, Oneonta, stated that the nursing home was also formulated for the indigent, and under privatization those most in need of care might be left behind. He would like to see safeguards for those most in need of care.

Mary Marx, Cooperstown, questioned the use of a Local Development Corporation in thatelected representativeswould not be able to participatein the selling process and responsibility would be removed. She stated the issue seems to have been limited to the financial aspect, and findslittle concrete evidence that a democratic process has occurred.

Loretta Herr, CherryValley, questioned if the representatives had any family members in the Manor. She stated that her daughter receives excellent care there and that the Manor is the only place where her daughter can be.

Anthony Effner, Westford, stated that there are ways around this if the Board wants to try. He asked why thepublic has not been polled. He also asked how many have been to the Manor to visit and talk with Manor residents. He further stated that the representatives need to meet with the union.

Carol Cox, Maryland, stated that the public put the representatives in office and they need to talk to the public and to the union.

Ellen Bonhote, Hartwick, stated that she has been a rehabilitation patient at the Manor. She said that she has been collecting letters to the newspaper editor in support of the status quo. She would like to know where the letters are supporting the Board’s decision.

Lynda Broadfoot, Binghamton, CSEA Labor Relations Specialist assigned to the CSEA represented employees in OtsegoCounty and chief negotiator for these employees, stated that the cost of wages and benefits is being given as the reason to get out of the business for caring for seniors. She stated that she has not been contacted by anyrepresentative of the Board to discuss any negotiations relating to the nursing home and that no other authorized representative of the County has contacted her to discuss negotiating the nursing home situation. She further said CSEA plans to take legal action in OtsegoCounty if the Board moves forward with the sale of Otsego Manor property to an LDC.

Marcey Hoffman, Oneonta, stated the people need to be asked what they want. She asked if a task force was put in place to examine all options and what those options were. She further said that the Board would use an LDC to avoid responsibility.

Ray Harris, Otsego Manor resident, stated that the Board members are hurting the residents and are not serving the wishes of the people.

Jaird Johnson, CherryValley, stated thatbefore the Board members make a decision, theyshould think about where they might have to live someday and what kind of care they would want.

Cathy Loftis, Cobleskill, stated that her father is a resident at Otsego Manor receiving excellent care, in contrast to poor care at a previous nursing home. She is worried about where her father may have to go if it is sold.

Adrian Kuzminski, Fly Creek, spoke about the lack of state mandate relief, stating that the biggest example of the state mandate issue is the shortfall that the state has created by repeatedly cutting the reimbursement rate. He said the CountyBoard needs to step up and leanon local state legislators. He statedthe Manor issue is a moral issue and asked the Board to think about priorities.

Jeremy Allen, Oneonta, stated that even if the County sells the Manor, the pension costs would remain. He said he is opposed to selling the wonderful facility.

Maureen Culbert, East Springfield, statedthat the Board’s process of notifying the public about meetings, specifically this public meeting, is inadequate. She spoke of improper procedure, legal notice dates, and errors. She stated her dissatisfaction with the informational meetings on the Manor. She said ifpublic meetings had been held in 2010 whenthe projected shortfall was first noticed, the Manor could have been saved. She stated that the public was excluded from meaningful discussion on the Manor and that costly lawsuits will be forthcoming. She urged the Board to rethink the advice from Harris Beach and do what is best for the County.

Karen Carpenter, Albany, CSEA representative, spoke in opposition toLocal Development Corporations. She stated thatthe CSEA opposes LDCs as being a way for counties to abandon moral and ethical responsibilities to care for their seniors. She said that CSEA knows that funding for public nursing homes across the state is a huge concern, and that is why the CSEA lobbies to increase funding. She stated that the CSEA is willing to work with counties to come up with cost saving options that allow them to keep their public nursing homes. She asked the Board to listen to the concerns of county residents at the meeting today and the rest of the community who oppose this move,and work together to come up with a better plan that will guarantee the future of the Manor for all Otsego residents.

Kristin Domion, Richfield Springs, asked the Board to make an informed decision.

Randy Velez, Cooperstown, stated that the Board has not made a serious good faith effort to consider reasonable suggestions that have been made by the people. He said there is no single solution to this problem; the County needs to look at various different approaches combined that can produce better results.

Crystal Davidson, Hartwick, OtsegoCountyemployee at Otsego Manor and vice president of CSEA local unit, stated she is opposed to privatizing the Manor and urged the County to keep it publicly owned and operated. She stated her concerns with privatization relating to long-term care for citizens, diminished quality of care for Manor residents, lower standard of living for employees, and the possibility that what happened in DelawareCounty with the sale of their nursing home could happen here. She asked the Board to find a reason to keep the nursing home. She further stated that CSEA workers are willing to work with the County, but the County has not been willing to work with them.

Jean Pysnik, Otsego Manor resident, has concerns that a Local Development Corporation would not be under County control. She questioned how the sale would proceed. She asked the Board to protect the Manor.

Ginger Heitz, Fly Creek, stated that she had the best care during short-term physical therapy at the Manor.

Linda Graham Smirk, Cooperstown, stated that good health care is not free. She favors raising taxes to support the Manor.

Sam Wilcox, Cooperstown, stated his concerns with the plan to transfer ownership of Otsego Manor to a Local Development Corporation. He questioned the use of an LDC, relating to who will staff the LDC, will local people be hired to work for the corporation, how prepared and how informed will the LDC be, how much financial outlay on the county’s part is involved in the use of an LDC, financial accountability, salaries and operating budgets, County liability for expenses and contracts, present employees, and how long the LDC would continue to operate.

Hilda Wilcox, Cooperstown, stated that as a democratic community we have to ask ourselves if we know what lies ahead if we relinquish responsibility to an unknown group of people who will make up an LDC. She said we have a moral responsibility to let our state and federal representatives know how we feel about reimbursements for Medicare and Medicaid and whom they are representing.

Kevin Kenney, employee at Otsego Manor, stated that there are ways to cut costs at the Manorto save it.

Heriberto Rodriguez, Town of Butternuts, stated that he opposes privatization. He said energy performance at the Manor building should be looked at for savings, negotiations with the union have to take place, and theCounty residents should bepolled.

Carol Kiehn Kirkey, Oneonta, opposes the sale of Otsego Manor. She asked the Board to listen to those people who know the Manor bestand what they are trying to preserve, whether or not an LDC is formed. She cautioned to not rush, but proceed carefully and considerably. She would like to see residents included on the LDC or an advisory committee.

Sandra Bliss, Cooperstown, spoke in opposition of Local Development Corporations. She reviewed research she has done. She said that an LDC is not the way to proceed. She stated it could be found to be illegal to transfer a nursing home to an LCD under the current laws.

Ann Bishop, Cooperstown, stated she is against the sale of the Manor. She said her mother got exceptional care while a resident there and all elderly need to be treated with dignity and receive the best possible care.

Joan Badgley, Cooperstown, asked if a private organization can make a profit running a nursing home what are they doing differently than what we, as a county entity,aredoing. She said the County should look at other options, such as perhaps increase taxes, a consortium with other county owned nursing homes for buying power, expanding rehabilitation services, and appealing to state government.

Ron Bishop, Town of Middlefield, stated that his family moved to this area because a family member was a resident at Otsego Manor and the Manor cannot be replaced. He said the Board has not shown due diligence. He asked the Board to take time to explore options. He stated that thecommunity would support them in asking Albany for more money.

Kristina Turechek, Otego, stated that due diligence with union negotiations has not been met. She said that we need to find a way to continue to care for each other.

The Board Chair asked if any other persons present, who did not sign the list, wished to speak.

John Davis, Town of Middlefield, stated that he opposes the sale of the Manor. He asked the Board to slow down and show willingness to pursue other options, even if they think the options will not work.

Board Chair Clark asked Shawn Griffin, of Harris Beach, to address questions from several Board members.

The Board Chair declaredthe public hearing closed.