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<br /> , <br /> Mr. Obie said he has problems with the suggestion in the memo from the <br /> e Manager and thinks it is going in the wrong direction. It is not a <br /> question of whether the rates are quadrupled or not but what is a fair <br /> amount. The task force was charged with developing a system of costs, as <br /> well as a reasonable profit level. If this service is deregulated at this <br /> time since it is a quasi-public service, the work already done on this <br /> report would be wasted. Mr. Henry stated that he had not attended the <br /> task force meeting but was acting on what he was told.' It is up to <br /> the council to make a decision. The Touche Ross figures have not been <br /> audited; the figures in the request were submitted by MSI and their <br /> validity is in question. <br /> Michael Jarvill, attorney for MSI, stated that he does not quite understand <br /> the questloning of the figures. Touche Ross is presenting figures which <br /> they have obtained from MSI records. He presented figures comparing MSI's <br /> rates with those charged in other cities. MSI is coming before the <br /> council with a great deal of urgency as expressed in Mr. Giustina's <br /> letter. MSI has to go before the bankruptcy court November 3, unless they <br /> get an extension, and present a plan approved by the creditors' committee <br /> which is composed of the ten largest creditors of which Mr. Giustina is <br /> chairman. They must present a plan which shows how it can be profitable <br /> and dispose of those operations of the business which do not make a <br /> profit. The creditors' committee is aware that the Mobilchair division is <br /> losing money. It either has to become profitable or be shut down. If the <br /> creditors' committee petitions the court, then the court can instruct MSI <br /> to stop wheelchair coach operation. The MSI board of directors met this <br /> e morning and they decided that if the rate increase was not granted, <br /> Friday, September 12, will be the last day'of operation for this segment <br /> of their business since they have no alternatives. A delay would put them <br /> in the same position as a denial. <br /> Mr. Obie asked if the figures presented were based on the Touche Ross <br /> formula. Mr. Jarvill stated that he is 90 percent sure that they are. <br /> Mr. Henry stated that he would like to know if the committee took into <br /> account that the rate increase would go above the Touche Ross guidelines <br /> of $23,000. Mr. Jarvill stated that the creditors' committee is separate <br /> from MSI. Mr. Henry stated it looks like the figures were put on the <br /> Touche Ross form and 1-1/2 positions were then added at a sizable cost. <br /> Mr. Obie indicated concern that someone from Touche Ross was not present <br /> to respond. He asked what is holding up the attorney's letter which is <br /> holding up the process. Mr. Jarvill stated that Touche Ross was supposed <br /> to have sent up a letter which they did not receive. They asked for a <br /> copy and it was provided to them just yesterday. <br /> Mr. Lieuallen asked how long Mobilchair had been operating at a deficit. <br /> Mr. Jarvill responded approximately four years, as far as he knew. Mr. <br /> Lieuallen asked if it had been subsidized all along by the other portions <br /> of the company. Mr. Jarvill responded that that probably was the case. <br /> Mr. Lieuallen asked if it had been subsidized by the ambulance division. <br /> e Mr. Jarvill responded that it could have been. <br /> 9/10/80--9 <br />