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<br />e <br /> Mr. Morgan said to fulfill OSHA requirements certain businesses and industries <br /> have contracted with MSI to have them supply first aid equipment and have <br /> available personnel to administer first aid. He agreed that they are profi- <br /> table, and a time line has not been established for shutting down these ser- <br /> vices. Mr..Henry asked if this is part of the plan which will be submitted to <br /> the court. Mr. Morgan stated this is all one corporation operating with over- <br /> lapping personnel. <br /> Ms. Miller questioned MSI's policy of "women in the office and men in the <br /> field.1I Mr. Morgan stated that they have two or three women EMT's. Ms. Miller <br /> asked what ongoing mechanism will be used to see that the council recommen- <br /> dations are enacted if the rate increase is approved. Mr. Henry stated that a <br /> monitoring mechanism is part of the task force's charge. The Touche Ross study <br /> states that the effectiveness of the model depends on the effectiveness of the <br /> monitoring agency, reviewing the budget and the operation. This would be <br /> similar to the City Manager Office's review of any other City departmental <br /> budget. <br /> Mr. Lieuallen stated that after the Springfield Council meeting, the newspaper <br /> quoted Mr. Morgan and he asked if that was an accurate reflection of what was <br /> said. Mr. Morgan responded that it was. Mr. Lieuallen stated that at last <br /> week's council meeting, when the rate increase was being discussed, it was <br /> mentioned that this rate increase would be used for current operations and that <br /> other moneys resulting from items being sold and a different internal management <br />e woul d be used to amorti ze the debt. The newspaper stated that only 30 percent <br /> of the debt would be amortized from other sources. It stated that the rate <br /> increase would be used to pay the debt. Mr. Morgan responded that MSI sub- <br /> sidized the rates in the past and the public received the benefit of those rates <br /> which caused the debts. It will take not only liquidation of some assets, <br /> including sales of the rental and sales division as well as selling the building, <br /> but use of current profits to reduce the debt. Mr. Lieuallen asked if he had <br /> misunderstood last week when he thought they had said the rate increase would be <br /> used strictly for current operations. Mr. Morgan stated it will take a combina- <br /> tion of both liquidation and profits to payoff the debts. Mr. Lieuallen <br /> asked about the building being leased to a corporation. Mr. Morgan st ated that <br /> MSI is using the entire building right now, but they do not need all the room. <br /> There is currently a proposal for retail space on the ground floor. Mr. <br /> Lieuallen asked if the entire building has been in use since it was opened. Mr. <br /> Morgan responded that it has been. <br /> Ms. Schue stated that she thought she understood that the company feels justified <br /> using the rate increase to payoff part of the debt because the public received <br /> the benefits of the service when the debts were incurred. She asked for clari- <br /> fication, adding that MSI used all of the building, but not all the space was <br />e <br /> MINUTES--City Council October 22, 1980 Page 6 <br /> r. <br />