10/22/1980 Meeting - Laserfiche WebLink

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e should be granted if it is the council IS intent to keep MSI in business. The way the company is operated now, this increase would provide a very slim margin for profit. There could be cash flow problems. Certain items do not appear in the information that was distributed, such as $6,000 per month for debt service for equipment payment costs. Gross billable income figures must be compared with the net billing receivables. Staff conclusions are that there should be changes in the organization and that consultant charges are very high. Staff questions the number of billing clerks and other personnel. Various dispatch methods should be considered by MSI. There are changes which could be made in the operations and they should be seriously considered. Even with the rate increase MSI will have a hard time. Staff feels that the rate increase should be granted conditionally upon MSI agreeing to undertake reorganization in the management area and in support services. Mr. Obie indicated that he agreed with Mr. Henry's analysis and recommendations. The rate increase might be just barely enough. He requested that Wesley Morgan, MSI President, state how he views the management organization during the next six months. Mr. Morgan responded that they are pursuing reorganization and with the elimination of some changes, they feel they can make it. They've outlined changes in computer costs for a lesser system and have cut back from 82 to 68 employees. They are making cuts as rapidly as they can. Their goal is to cut back $15,000 a month in expenditures. Mr. Obie asked about the management structure and ownership. Mr. Morgan stated that there must be changes. e Since the ambulance service is a quasi-public business, ownership should be of a quasi-public nature; perhaps, a non-profit agency. They will do what they must to make the service able to meet its expenses and provide the service to the public. Mr. Haws stated that a memo from the City Manager's Office said $79,000 of MSI's budget is listed for personnel costs plus $8,500 for consultant fees. He asked about the consultants' fees. Mr. Morgan responded that Kim Short is being cut from one-half to one-quarter time. and that George Ralph will be leaving at the end of the month. Mr. Morgan stated that Mr. Ralph makes $2,500 per month and Mr. Short makes $2,100 per month. Mr. Morgan stated that Bill Leonard makes up the rest of the consultant fees, that Mr. Leonard is making $4,000 per month, and that the contract says he must be paid. Mr. Haws asked about the amount of money being paid to Mr. Leonard. Mr. Morgan stated that due to the voting trust, payment must be made as a stipulation in the trust. To not pay him would obviate the trust. Mr. Haws asked if Mr. Giustina has asked the bankruptcy court if payment to Mr. Leonard can be set aside. Mr. Morgan stated that this has not been done as far as he knows. Mr. Morgan stated that there is a trust agreement on the stocks. The Leonards own the assets. e MINUTES--Eugene City Council October 22, 1980 Page 3