10/22/1980 Meeting - Laserfiche WebLink

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e necessary and she was having difficulty reconciling the two statements. Ms. Schue asked why the public should pay for the level of luxury MSI was enjoying but that was not needed. Mr. Morgan stated that applies to only a very small part of the dollars lost in the last two years. The building was designed to fit Mr. Leonardis operational concept where all of the room was needed. This is not the case now due to the changes in the company. Ms. Smith moved, seconded by Mr. Lieuallen, to approve the temporary rate increase for six months with a continuing . monitoring system. Mr. Haws stated he does not feel he has much choice. The best option must be determined. By not approving the rate increase they would force liquidation. He encouraged looking at the contingency plans. The amount of money paid out to consultants may not make a great deal of difference in six months. He does not feel there is much choice but to grant the increase. He noted that they need time to review and to come up with a better plan. Mr. Delay stated that he has been working on this issue for a couple of years. He has met many dedicated individuals. He urged the council to consider that if they feel there is no choice now, and feel that MSI must be given what they need or they will move toward Chapter 7 bankruptcy, then the council may never have a choice. In six months MSI may come back and again say they must have a rate e increase or they will liquidate. They no longer have the confidence of the medical community as they had a few months ago and the quality of care is less than expected. He feels that their problems are due to incompetent management, some poor decisions were made, including having a large central facility and the fact that there is nearly as much turnover in management as there has been in paramedic personnel. The council is being asked to accept the same concept since Mr. Leonard is the consultant. There is already a great deal of public money involved in this company. Equipment, including video equipment, was purchased with a grant of $142,000+ and he has heard many rumors about this equipment not being used properly, like taping Marist football and basketball games. Due to the things he has heard in the past two years, he cannot support the rate increase. He does not feel the rates should be that high, but does feel that the company was improperly managed. He has heard today that in addition to previous cutbacks another $15,000 also could be eliminated. He asked how much more could be cut. He asked if the City needs to pay for past ,mistakes of MSI. If he had confidence that the company would be properly managed and that in the past proper decisions had been made, he might feel differently, but as it is, he cannot support the motion. e MINUTES--City Council October 22, 1980 Page 7