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HomeMy WebLinkAbout05/27/1980 Meeting e M I NUT E S EUGENE CITY COUNCIL May 27, 1980 Adjourned meeting of the City Council of the City of Eugene, Oregon, was called to order by His Honor Mayor Gus Keller in the Council Chamber at 7:30 p.m., May 27, 1980, with the following Councilors present: Betty Smith, Scott Lieuallen, Brian Obie, Eric Haws, Jack Delay, D. W. Hamel, Gretchen Miller, and Emily Schue. I. PRESENTATION BY STUDENTS WHO VISITED KAKEGAWA Charles Henry, City Manager, introduced Jean Paul to introduce the student delegation that visited Kakegawa, Eugene's sister city in Japan. Tim Rhay, Parks and Recreation Department employee, was one of the adult chaperones and stated they had a very good time, were given a royal tour, and lived among the people. He introduced the students individually and he stated that Janine Barnwell was also a chaperone. A gift was presented to the Mayor from Congress- man Shinoye. Mayor Keller expressed the gratitude and appreciation for the 9vodwi11 which ensued from the students' trip. Kim Neal presented a report of the three-week trip which had been partially aided by the Youth Association of Japan. Mr. Rhay presented an invitation for Mayor Keller to visit Kakegawa. ~ II. AGENDA CHANGE Mayor Keller stated that Item II, B, Highland Oaks Drive street closure, would be addressed prior to Item II, A on the agenda (Medical Services rate increase.) III. PUBLIC HEARINGS A. Permanent Street Closure of Highland Oaks Drive, West of Trillium Street (memo distributed) Mr. Henry stated that traffic counts before and after the temporary closure have been taken and staff recommends permanent closure. He introduced Joe Hessler, Public Works Traffic Division, to provide background information. Mr. Hessler stated the traffic decreased on Highland Oaks Drive and increased approximately 25 percent on Trillium Street during the temporary closure. They have not received complaints reqa~ding this closure and 41 of 42 people expressing an opinion were supportive of the permanent closure. This closure would be located approximately 200 feet west of Trillium. e 5/27/80--1 Public hearing was opened. Speaking in favor of the proposal: e Vernon Gleaves, 2515 Highland Oaks Drive, stated support for the closure. He said the street is the Grand Prix of southwest Eugene. With the grade of the street and the traffic pattern, the closure is in order. This is the only connecting route from Lane Community College to Churchill High School without using 18th Avenue, which should be the traffic arterial. The temporary closure was effective. There being no further testimony, public hearing was closed. Ms. Smith moved, seconded by Mr. Li euall en, to recommend permanent street closure of Highland Oaks Drive, west of Trillium Street. Mr. Obie stated agreement with Mr. Gleaves and indicated that on the map, the narrow portion of the street is dirt rather than paved. He indicated people are using this route to avoid 18th Avenue. He is in favor of the closure. Roll call vote; motion carried unanimously. B. Consideration of an Interim Rate Adjustment for Medical Services Incorporated (ordinance distributed) Mr. Henry stated that he had received a letter requesting a rate increase for Medical Services, Inc., to be effective May 1, 1980. The request involves substantial increases in several categories. He ~ noted the council has received copies of the request showing the .., proposed increase, current charges, and a comparison with other cities. An in-depth study and audit is being conducted by Touche- Ross, Inc., which will probably be available in mid-July. If an increase in made now, it will be subject to review at a later date. This hearing is focusing on the rate increase request, not on licensing requirements which should be addressed to the Finance Director. Staff would recommend that only the base rate and mileage rate be increased and other requested increases be held in abeyance. Many of the proposed increases seem high in comparison with current rates. In regard to the Medicare charges, the charges that are established as of June 1 will be in effect the following year. Mr. Haws asked how much time is available to consider this rate increase. Mr. Henry responded June or longer and the Touche-Ross study would be completed in July. Ms. Smith asked whether the Medicare rate consideration should affect the councilors' decision. Mr. Henry stated that the Medicare charges would not be in effect for the next few months but would affect people later. Ms. Smith asked if the charges for Medicare are based on an average or if they are the most frequently applied charge. Mr. Henry responded that they are the most frequently applied charge. Mr. Delay stated he hoped that in the public hearing MSI would explain their rationale for a rate increase request now. Mr. Henry stated that if the charges were changed now or 5/27/80--2 e e on June 1 or 15 and more charges are at a higher rate, then a hiqher rate will prevail. This is determined on a fiscal year basis. Mayor Keller noted that this public hearing is to consider the interim rate adjustment only. Public hearing was opened. Speaking in favor of the rate increase: Michael Jarvill, Attorney for MSI, 96 East Broadway, Suite 5, stated his purpose at the hearing was to justify the rate increase with statistical data and to answer questions. It has been 21 months since the last rate increase was granted. The Touche-Ross study will not be available until July. This should be a temporary increase from now until licensing is considered. Inflation and the general economy have a great impact on MSIls cash flow. e Wilfred H. Leonard, President of MSI, 2100 West 11th, stated it is true they use prevailing rates for Medicare charges, but those charges are always 12 to 15 months behind what the current charges are. The rates that are in effect July 1 will come into effect for their receipt of money one year later. He noted some of their rates for ancillary services are down. He passed out information supporting this to the council. He said that 21 months ago, Councilor Delay recommended a study and he agreed to not ask for an increase until the study was completed. But the study has been delayed and has taken longer to complete than anticipated. They are asking for a 23.7-percent increase. Buck Ambulance Service in Portland raised their base rate to $95 and mileage rate to $3.50 per mile, and they are now going to $104 for their base rate and $4.50 per mile; Care Ambulance in Portland charges $102.50 base rate and $4 per mile. He distributed statistics to this effect to council. He noted that MSI has not been a profitable enterprise in the past six months. He hopes the interim rate increase is approved. Other comments: Dr. John Mackey, emergency physician at McKenzie-Willamette Hospital, stated grave concerns about the ability of Medical Services, Inc. to provide emergency services and felt the rate increase should be delayed until a public forum is held on the current concerns. Speaking against the rate increase: Dr. Carl Yaeger, 1200 Alder, Medical Director of Sacred Heart Nur- sery, is against the rate increase. He is involved with emergency care of neonates (newborns) and MSI, with a few exceptions, has provided excellent service for those needs. His concerns are about the rates, which are much higher than any others in the state, and he has reservations about the need to increase rates. He directed some questions to Mr. Leonard regarding the mileage charge, for which MSI charges round trip and other ambulance companies charge only one way. He distributed copies of a comparison rate study to the councilors. - 5/27/80--3 Mrs. Bach stated she is against the rate increase and wants to know whether, as was promised, there will be a substation built in Santa ~ Clara if the increase is granted. .., Michael Anderson, 3659 West 18th, No.2, a former employee of MSI and a paramedic, distributed materials to the councilors. He worked for MSI for nearly two years. He feels the 30-percent rate increase is unjustified and that rates are too high in proportion to the services rendered. The question is the value for the dollars spent. Citizens for Public Ambulance Control have been circulating petitions for four weeks and have collected 2,126 signatures. He distributed copies of the petitions to the councilors. The petition reads, "We, the undersigned, support our paramedics and bel ieve they work hard to bring us quality emergency care, however, the company they work for--Medical Services, Inc., is a high-cost, private enterprise in business for the purpose of earning a profit. The cost is already too high in relation to the service provided. We hereby petition: 1. That Medical Services, Inc. not be granted an increase in rates. 2. That alternative forms of ambulance service be investigated, such as a non-profit organization or other form of publicly controlled service. 3. That Medical Services operator's license not be renewed July 1, 1980, if the investigation so warrants." Mr. Anderson distributed packets to the councilors for them to read. e Mr. Anderson stated he has a copy of the letter from Mr. Leonard to Mr. Henry received April 28 which asked for a rate increase effective May 1. The council asked for a public hearing on this item at that time. Mr. Anderson said the letter is 15 pages long with pages and pages of unexplained charges. He stated the paramedics would not be able to explain the rate charges because it is MSI's policy that the paramedics not know what the rates are. He stated MSI's rationale is that if the paramedics know what the rates for certain services are, then they will chnnse to use or not use them because of cost. In the case of cardiac arrest, if the Fire Department is called and they are doing CPR and the paramedics arrive to advance life support, there is a charge for the CPR ($66), which is billed by MSI even if it is done by the Fire Department. He stated he has a copy of the policy from MSI that they will bill for CPR even if their paramedics do not administer it. When fire departments use supplies, MSI replaces those supplies to the Fire Department and then bills the customer at MSI 's rates. Mr. Anderson stated that in the packet given to the councilors, there is a breakdown as to what it would cost if one of them broke a leg in the Council Chamber and was transported to Sacred Heart for treat- ment. The charges would be as follows: e 5/27/80--4 . base rate--$85; mileage--$4 per mile round trip for a cost of $24 since the bill will show six miles (from MSI's headquarters on West 11th to the Council Chamber to Sacred Heart and back to MSI's head- quarters, which would be billed even if they did not return to the headquarters); emergency service (red lights and sirens)-- $20; night service (6 p.m. to 8 a.m.)--$20 (night service and emer- gency service are billed for insurance purposes according to what Mr. Anderson was told by MSI); service time (waiting time)--$75 per hour billed at $1.25 per minute (every minute the ambulance is not rolling) (assuming ten minutes here and five minutes at the hospital the charge would be $18.75 for waiting); orthopedic care (even if the firefighters had already set the leg and had it on ice)--$20; supplies--cardboard splint, $5 (which the firefighters Day $.50 for); one multitrauma dressing, $3.30, two ice packs (at $4.50 each)--$9 (two years ago retail they were $1.25); and account service charge-- $13.25. e Mr. Anderson said MSI knows that most insurance companies do not pay within 30 days so they add on the account service charge, and patients are responsible for the bill being paid within 30 days. MSI will help you try to collect from their insurance company. The total cost for a broken arm or leg in the Council Chamber would be $218.30 if the patient were taken to Sacred Heart hospital. In addition, if shock is apparent, $40.50 is added for process and supplies for an intravenous solution for a total of $258.85. Mr. Anderson stated that Mr. Leonard is trying to blame all of his financial problems on the union, although his financial problems have happened within the last six months. The paramedics have not had a raise within the last six months. Mr. Anderson further stated there is no way to compare the value or quality of the service to the amount charged, but he submits they are not getting value for the dollars spent. Mild disruption and clapping occurred; Mayor Keller brought the meet- ing back to order. Jim Bard, 695 Spruce, Junction City, stated he is a former employee of MSI. As a paramedic, he must respond to situations where death is imminent. In cardiac arrests, they hook up the EKG to monitor heart activity and in a number of cases~ they have been too late. If the paramedics could get there earlier, the patient could be saved. He said there is a need for more substations. Four to six minutes after the heart stops, death begins. MSI's average response time is 6.9 minutes and he maintains that that is not life saving. In 1978, Mr. Leonard said he would build six substations. None have been built. $156,000 was brought in in the membership drive and $80,000 was spent for expenses for that drive, but there is still no substation. e 5/27/80--5 The rate increase is not justified. Ht:' finrls it h(lrrl to ask JlC'orlp to pay 30 percent more on a b i 11 when he has IIUt bL't~1I Wlll'" I Ill) 'lit' ,t company that has kept its word. There are many internal problems with 4It MSI and he would request an investigation to see if there has been a misuse of funds. The paramedics were promised a pay increase which they have not received. Instead they are told they are in danqer of losing their jobs unless they increase revenue by $10 per call. He concludes there is mismanagement and a different management style could perhaps keep the company out of the red. There were five paramedic units and now there are only four to serve 225,000 people in the metropolitan area. Mr. Bard stated he feels MSI deserves to be out of business, not given a rate increase. Greg Pereyna, 710 East 3rd, Lowell, is against the rate increase because he feels pressure regarding the procedures he uses due to the cost to the patient and with this increase it would cost them even more. Richard McConnell stated he does not see how the city can approve the rate increase because of the breach in contract. The Fire Department has not been called to quicken their response time. If gas is a problem, MSI's employees should not be transporting the Leonard family. Dick Nice, Lane County Fire Defense Board, stated he is Chief of the Goshen Rural Fire Protection District and is representing the Lane County Fire Defense Board which consists of 21 fire departments or di stricts that are within the response area of the ambul ance service. A It is the unanimous opinion of the Lane County Fire Defense Board that ,., no rate increase be discussed or granted until after the study is completed and reviewed by the Emergency Medical Services Study Task Force. Patricia Armstrong, 189 Fairmount, stated her husband had had a heart attack at the Unlversity of Oregon on March 2, 1980. She stated that Pacific Hospital Association, which normally pays 100% of everything, did in this instance, except for MSI charges, where they paid less than 50%. It took them 46 minutes to get him six blocks to Sacred Heart because their maps were 15 years old and they tried to take a street that no longer existed. She received a bill three days after the last rites had been administered to her husband at Sacred Heart Hospital for $10.80 service charqe, and it was her understanding that this should not occur until 30 days after the incident occurred. Also, after talking with the Operations Manager, John Nunn, and the Ambulance Supervisor, Mr. Lima, they reduced her bill by $19.20 since an IV had not been administered. If everyone is overcharged $19.20, and the average calls for six months are 3,000, that would be $57,600 that should not be charged to patients. She found out that the paramedics get only $3.35 per hour and that the truck has Federal .e 5/27/80--6 - money backing it. She wrote a letter May 13 to Gretchen Miller and will testify to anything she has said at this meetinq. She further stated she would never pay the $10.80 service charge. Marty Nelson, Chief of the Crow Valley Fire Protection District, stated any deci sions made tonight wi 11 have a great impact on the rural area. People are being billed for supplies paid for by the fire protection districts. He has been fighting this situation with MSI for five years. John Bush thinks there should be a complete investigation before any increases are considered. This is a publicly protected monopoly. The first three to five minutes are critical in saving someone's life. MSI pays low wages and benefits to their attendants and treats them in a militaristic fashion. This is an exclusive service district and they are asking for exorbitant increases. e John Hoyt, 2879 Spring Boulevard, identified himself as a retired flreflghter on disability pension. At 4 p.m. on May 27, he received a phone call stating that if he testified at this public hearing against Mr. Leonard, he would lose his Social Security benefits, and at that point, he decided he had to testify. Dennis Murphy, 2412 North 16th, Springfield, is a former EMS consul- tant for the City of Salem. MSI was the successful bidder for a Salem ambulance service but only 72 hours before service was to begin, they withdrew their bid. They now have a publicly owned and operated sys- tem and there has been a 40-percent reduction in rate charges. He urged them to study the City of Salem's operation. Other comments: Dr. John Dickenson, 255 East 11th, of the Executive Council of the Lane County Medical Society, is also on the Emergency Services and Disaster Planning Committee. This committee's function is to review problems with emergency medicine in the community. The Lane County Medical Society at its last meeting of the Executive Council adopted the following two positions: 1. There is great animosity between the MT's and MSI. Negoti- ations have broken down. The Medical Society deplores any reduc- tion of necessary emergency services. They are concerned about the quantity and quality of reduction of personnel in the immediate future and request that both parties resume negotiations to preserve good pre-hospital patient care in this community. 2. There have been many unsubstantiated complaints regarding the quality of care both from the Medical Society and outside of it regarding overuse and inappropriate care by MSI. These concerns have not been addressed by the Medical Society because they have not been contracted to do so, but they stand ready to study this issue at the council IS request. They feel the City Council should not only look at the rates and costs but also examine alternatives. e 5/27/80--7 The Lane County Medical Society is willing to participate in a review and investigation if the council desires. e Public hearing was closed. Ann Mooney stated that Medicare only pays 80 percent of the allow- able charge on a bill and the person must come up with the remainder. Most insurance companies will only pay the additional 20 percent of the allowable charge, which means that if the allowable charge is lower than the rate charge, the person must pay the additional fee. In talking with people on fixed incomes, she has found many who will not call the ambulance and will rely on private transportation or other means to get to the hospital because they know they do not have the money to pay the amount that their insurance will not cover~ Mr. Henry stated that this is not a medical district situation; instead Medical Services is the only licensed operator in the city. In rebuttal, Mr. Leonard stated in regard to Or. Yaeger's comment about the neonate rate, the new base rate would be $85 plus $2 per mile, which would be a special rate for neonates. Operating costs have gone up over 33 percent and they are only requesting a 23.7- percent increase. They would invite the Medical Society and the city councils of both cities to review their billing procedures. He gave copies of charges for 1979 to the City Council which included $261,100 that was charged off to bad debts, no patients, and charity in 1979. MSI does not control EMT training. They have been tryinq to get the Medical Society involved for 22 years. They will continue to cooperate in any way they can. e Recess was called. Mr. Obie stated the purpose is not to determine whether Medicare has a magic date or not, the purpose is to determine whether a rate increase is justified at this time regardless of the Medicare ques- tion. He requested that Mr. Leonard supply him with percentage figures on energy, labor, and equipment costs. Mr. Leonard responded that the price of gasoline has more than doubled since October of 1978. Personnel costs since October of 1978 have gone up 27.1 percent. Equipment costs are broken down into two categories; maintenance costs have gone up 58 percent and operating costs have gone up 33 percent. Mr. Obie asked if weighted figures were used and asked what the percentage would be using unweighted figures. Mr. Leonard replied that their controller had had emergency surgery that morning and he would get the answers for him later. Mr. Obie asked if any substations had been built since the last increase. Mr. Leonard responded that no substations had been built. The substation at 29th and Oak is ready to go when financing becomes available. e 5/27/80--8 e Ms. Smith stated it was the council IS understandinq that substations would be sooner in coming and that $156,000 from the membership drive was to go to this. Mr. Leonard responded that there were 5,299 premiums written at $29 each for a total of $153,671 and out of that, $80,890 went to cover expenses of the campaign for a net membership proceed of $72,781. They had anticipated selling 15,000 memberships and fell far short of their goal. He stated that charqe-offs to their members are $5,000 per month. Ms. Smith asked about the decrease in the number of available units. She stated a concern about the level of service decreasing with the population and needs increasing. Mr. Leonard responded they had cut back from five to four units and one duty car is now being used for a staff car and office personnel. They will be adding a fifth car within the next 60 days. e Mr. Leonard stated their response time in the Eugene-Springfield area is 6.39 minutes on a five-year average. He distributed a five-year breakdown of response times to the councilors. Response time is from the time they receive the call until they arrive at the scene. The county has a response time of 15.32 minutes. For January through April 1980, the city response time has been 6.5 minutes and the county response time has been 15.43 minutes. For advance life support calls from the county, their response time for the first six months of 1980 was 16.54 minutes average and their five-year average is 15.32 minutes. In April of 1980, their response time was 25.7 minutes. Ms. Smith stated that her concern is increased demand in population. She was talking about the number of trained personnel available rather than the number of vehicles. Mr. Leonard responded they had 21 people for ambulance response prior to 8 o'clock that morning before they walked off their jobs, and they will be adding three positions for a total of 24 people with a fifth staff car. He stated that two years ago he had brought a five-year plan before the council and said because of the freeway system, they would have to go to satellite response stations. He added that a "quasi-gentlemen's agreement" had been made that they would not ask for a rate increase until the Touche- Ross study was completed and they would only add the 29th-and-Oak substation. The Consumer Price Index in Portland increased and they found they could not afford the interest rates for commercial money to build any of the substations. Mr. Delay stated that he was concerned about the "gentlemen's agreement" to which Mr. Leonard referred. He read from the May 9, 1979, Task Force minutes where Mr. Leonard suggested that no increase be given until the Touche-Ross study was completed and was told that if he had sufficient rationale at any time he could come before the council with a request for an increase. Mr. Delay asked Mr. Leonard with whom he had made a "gentlemen's agreement" to not ask for a rate increase. Mr. Leonard responded that they knew they could come before the City if they had to but thought that there was a II gent 1 emen' s agreement II not to come back and the task force would have the study completed within the first year. Their membership drive ended in November, the analysis was to have been completed in December, but the RFP did not get started until April. Mr. Leonard added that the increases were e 5/27/80--9 needed now and they could not wait any longer. Mr. Delay asked if the two points of the rationale for the rate increase request were qeneral economic conditions (cash flow problems) and accounts receivable. Mr. ~ Leonard responded that that was correct. Mr. Delay asked if, given ,., those circumstances of financial need and the fact that the study would be completed within about 60 days, there is a great financial risk to MSI by waiting 60 days. Mr. Leonard responded that they project a decrease in collections since people are extending the payment period due to the economy. With the Medicare problem, if the rate is approved in July of this year, they would not be effective until July of 1981. If they are approved in September of this year, they would not be effective until July of 1982. Mr. Delay asked what his current record of collection rate is. Mr. Leonard respon- ded that they are maintaining a 94- to 95-percent collection rate but expect it to drop to around 90 percent. Mr. Lieuallen asked how many divisions there are in MSI s~:nce the city regulates only a portion of the enterprise, the emergency ambulance service. Mr. Leonard responded that separate from the ambulance service, they have contract first-aid, rentals and sales, mortuary, and allied services--computer software. Mr. Lieuallen asked if there is a strict financial accounting of the various operations keeping them separate. Mr. Leonard responded that there is. Mr. Lieuallen asked if they are dealing with the ambulance service division only. Mr. Leonard responded that they are but the figures that the councilors are looking at include everything to show how items are charged out. Mr. Lieuallen asked if the ambulance service might subsidize other portions of the company. Mr. Leonard responded that each portion carries its own weight. Mr. Lieuallen asked if MSI 4It charges from office to the scene of the emergency to the hospital to the office. Mr. Leonard responded that mileage is charqed all the way from the office to the emergency scene to the hospital to the office, unless there is another emergency in which case they do not charge back to the office. He said trip sheets account for all of this. He stated that in Portland, two ambulance companies charge back to the office, one does not. Mr. Lieuallen asked for clarification from the City Attorney as to the nature of the contract and if it is a franchise. Ms. Schue asked for clarification of trip charges. Mr. Leonard responded that there were examples of a single emergency where they would charge mileage from the office to the scene of the emergency, to the hospital, and back to the office. Then if there was another emergency, and they were dispatched from the hospital, the first patient would be charged from the office to the emergency scene, to the hospital, and the bill would end at the hospital with no mileage being charged back to the office. Disruptions temporarily interrupted the meeting~ Mayor Keller restored order. . 5/27/80--10 e Ms. Schue indicated it would seem to be advantaqeous to the patient to have MSI called to respond to another emergency. Mr. Leonard responded that the trip ticket accounts for mileage. Mr. Delay asked why there are fewer units on the road since January. He wondered if it is a result of the staff being at a lower level because it is understaffed now or if they were overstaffed pre- viously. Mr. Leonard responded they have not received the call projections they thought they would. They are now projecting if the calls pick back up, they will be able to provide an additional unit. Mr. Delay asked if the calls go up and. down with the economy. Mr. Leonard responded that in 22 years, there has been no set pattern. Mr. Delay asked how long they had had five units. Mr. Leonard responded since August or September of 1979. Mr. Delay asked if the reduction is based on the demand, which is less this year than last year. Mr. Leonard responded they have not made the call projec- tions that they thought they would. Mr. Delay asked why there had been this fluctuation in the ratio of calls given to the Fire Department. Mr. Leonard distributed a copy of their SOP dated April 24, 1979, when reclarification on this policy was made by Eugene and Springfield fire chiefs. He stated he is not aware of any time that the fire departments have not been called when they thought they should be. Mr. Delay asked if the fire departments are called under any circumstances. Mr. Leonard said that the SOP that he had distributed gives the criteria for when the Fire Department is to be called. Mr. Delay asked if these are calls where the Fire Department feels they should be dispatched. Mr. Leonard said these are suggested by the fire chiefs. Mr. Delay then asked if this has been management policy to contact the Fire Department in all of these cases. Mr. Leonard responded that it is to the best of his knowledge. Mr. Leonard said that this policy has been in effect since April 24, 1979, with reclarification once to the dispatchers. They do not want to over-use the fire departments and do not feel they need to be called out on every Code 3. Mr. Delay asked if that was an internal decision or if it was made with information from the fire departments. Mr. Leonard said that this has been reviewed and he does not remember any time that there was a memo. e Mayor Keller asked who would be liable for inappropriate treatment in the case of a rural fire department administering first aid. Mr. Leonard responded that his staff is liable from the time that they first pick up a patient until that patient is given to a higher authority. If something has been done wrong, then they must correct it. Mr. Obie asked how it would affect the clients if the rate increase were allowed now rather than 90 days from now. Mr. Leonard responded there would be no impact until July of 1981. Mr. Obie asked who was responsible for the difference in the interim, if Medicare pays $70 of it 5/27/80--11 $100 and the rate increases to $110. Mr. Leonard responded that the patient is responsible or MSI could charge it off. Mr. Obie said if the increase was denied now, it seems the patient would be jeoparized more than the firm. Mr. Leonard responded that that is correct 4It according to the way Medicare operates. Mr. Delay asked whether, if the council failed to provide an interim adjustment, that would keep the firm from providing emergency service in the next 60 to 90 days. Mr. Leonard responded that they could continue to lose money based on their projections. Their accounts receivable have gone out to 120 or 150 days and that is not a projec- tion. Mr. Delay asked if it would or would not affect services. Mr. Leonard responded that they need the rate increase now to be approved effective July 1 to do what they are now doing and that they should have asked for the increase sooner. Mr. Haws stated the decision should be based on how to best provide medical care at a reasonable rate, not on whether or not Medical Services, Inc. is going to stay in business. The City probably needs to investigate rates as indicated by the testimony from the citizenry. He has heard enough testimony to warrant an investigation but has not heard enough testimony to justify a rate increase. He feels the council should ,wait until the study is completed and will vote against the increase. In response to Mr. Lieuallen's question regarding the status of ambulance service under the code, Mr. Long stated that it is a licensed activity rather than a franchise; but in order for someone to operate as a licensee, the council must decide additional need exist. e Ms. Smith stated she supports Mr. Haws' comments. The study was to look at rates and other issues like the level of service. She feels Dr. Dickenson's offer is an important one. She would like to delay action on the rate increase until the study is completed. Mr. Delay stated other issues have not been addressed at this meeting. The critical item in the community is health and welfare projection and delivery of emergency medical care. Some questions have been dodged they should not have been and by looking only at the rate increase that will not be answered. They also need to look at the rate structure (how it should be set up) and at the service level. The council must keep its ear to the ground to ensure that circumstances do not develop that would prevent quality emergency medical care. The question is whether MSI's ability to provide services might be jeopar- dized by not allowing the rate increase. Mr. Delay understood Mr. Leonard to say that his business would be in trouble and that he might not be able to provide services to the public if he were denied the increase. The council must not take any steps that would harm the 5/27/80--12 . e community. He does not feel there has been rationale presented for an across-the-board increase until the study is completed. What must be weighed is the operator's -request for an increase against the unanswered and unquestioned aspects of emergency medical service. He feels at least a modest increase in the base rate should be made and no mileage increase should be allowed. Mr. Obie stated that Mr. Delay's concern is that the council does what is best for the community. He stated it is difficult to make a decision with a lack of information but realizes all costs have increased in the last several months. He is fearful that no increase could provide less services to the public. He is inclined to agree with Mr. Delay to approve a modest increase for an interim period until the study is completed with the review at a later date. If they did not allow an increase and the study showed that one was warranted, the council would have done MSI a disservice. He would request constant monitoring of MSI by the Fire and Police departments as long as there is strife going on. He would not like Eugene to experience what Salem did with 72 hours' notice that emergency service would no longer be provided. CB 2125--An ordinance concerning ambulance rates and repealing Resolution Nos. 2517, 2530, 2742, and 3034: and declaring an emergency. e Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be read the second time by council bill number only, with unanimous consent of the council, and that enactment be considered at this time. Mr. Lieuallen indicated he would not support the motion. The agree- ment was for Mr. Leonard to provide rationale to justify his needs but this has not been done. He feels an increase should wait- until the study is completed and that the Eugene Police Department and Fire Department should monitor calls in the meantime. Ms. Miller stated that all the councilors are suffering from a lack of information on this item and will not be able to make a good decision until after the study results come back. There is more involved than just rates, such as management structure. All the information that has been presented for rates is comparisons. Things are generally costing more, but there is no way to determine if a rate increase is justified. She would agree with Councilor Obie to approve a modest increase in the base rate until the study is back. She hopes the council will follow throuqh with offers of assistance to deal with other questions because they seem more important than the dollar. e Ms. Schue stated not enough information has been provided and she has not been encouraged by Mr. Leonard's comments, which makes her question whether Mr. Leonard understands the situation. It is clear there are problems and more must be done. She is concerned about the comparison of rates. She would support, in the interest of ambulance service, a modest increase in the base rate. Other items would have to wait until the results of the study are back. 5/27/80--13 Mr. Delay stated that there are areas that the Touche Ross study will not answer, such as level of service, scope of the audit, and the actual cost of the ambulance service. Many issues are not going to go ~ away. He hopes the task force will not be expected to provide answers. ~ This is a crisis time, and there is a responsibility to the operator. He feels the council should respond to Mr. Leonardis needs. Mr. Delay moved to amend the ordinance to delete all increases except the base rate to be increased to $80.00; the motion for the amendment was seconded by Mr. Obie. Ms. Smith noted that between now and the end of the study, some other questions must be addressed. There is a responsibility to the commu- nity. Mr. Henry indicated that many of these questions would not be considered in the RFP, and he does not know what the cost of the study would be with these issues included but that it would be expensive, and that is why it was not done originally. He noted they would explore other means for determining answers. Mr. Delay added that the task force discussed the possibility of a follow-up study for alternative care; and there was not a consensus at that time to do that. Basic information is still needed in order to make a rational decision. At the time the task force was meeting, service delivery was not beinq questioned. Ms. Miller noted that the interim rate adjustment would be subject to review at the completion of the Touche-Ross study. Mr. Haws noted that the burden of proof to justify the rate increase ~ should rest with Mr. Leonard and this has not happened. All he has said is that he wants it, and the rationale seems to be that since he wants it, it should be given to him. The decision should not be based on a lack of evidence since it might be that the rates should be decreased rather than increased. He will vote against the motion and the amendment. Mr. Hamel stated agreement with Mr. Haws and Mr. Lieuallen. Mayor Keller stated he felt the proposal to increase the base rate in the interim period is a qood one. Mayor Keller suggested looking at what has been done in Salem. Mr. Delay stated the council is making a proposal for a $15 increase in the base rate. He said Mr. Leonard has indicated he needs additional cash to continue the service. He does not want to add to the present crisis by not approving the rate increase. Roll call vote on the amendment; motion carried 5:3, with Counci- lors Haws, Lieuallen, and Hamel voting no and Councilors Obie, Delay, Smith, Miller, and Schue voting yes. 5/27/80--14 e - Mr. Lieuallen stated he feels there should be a public hearing on all of the issues rather than on just the limited scope of what the Touche- Ross study will provide. He questioned whether Mr. Delay is trying to decide if the City would be liable if the increase is not granted. He stated he would vote against the motion. Mr. Delay stated he would like to hear more about what is actually going on. He is not suggesting that the City is liable, but he does not wish to add to the problems at MSI. Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be approved and given final passage. Roll call vote: motion carried 5:3, with Councilors Haws, Lieuallen, and Hamel voting no and Councilors Obie, Delay, Smith, Miller, and Schue voting yes. The bill was declared passed and numbered 18633. C. Public Works Bid Awards (attached) Mr. Henry stated that there are three bid awards: pavinq Van Buren Street from 12th Avenue to 13th Avenue, storm sewer on Van Buren (Job. No. 1788); sanitary sewer 21st Avenue from Agate to 250 feet west (Job No. 1877); and storm sewer on Mill Street and 36th Avenue (JOb No. 1797). He stated that the staff recommendation was to award to the low bidder in each case. e Public hearing was opened; there being no testimony, public hearing was closed. Mr. Henry noted that on Item 1, paving Van Buren Street, an additional $3,100 has been budgeted. In response to Mr. Lieuallen's question, Don Gilman, Public Works, stated the County will run heavy equipment over the road frequently and the road will need to be strong enough to withstand this additional load. . Ms. Smith moved, seconded by Mr. Lieuallen, to award the bids to the low bidder in each case. Roll call vote: motion carried unanimously. IV. ORDINANCES FOR FIRST READING Mr. Henry noted these are levying assessments and referrals to the Hearings Panel to be held June 2, 1980. e CB 2126--Levying assessments for paving, sanitary sewer, and storm sewer within Kiska Subdivision; sanitary sewer within 160 feet of the east margin of Kiska Subdivision; pavinq, sanitary, and storm . sewer within Kukui Hill Subdivision; and sanitary sewer within 160 feet of the east and south margins of Kukui Hill Subdivision. (79-08) 5/27/80--15 Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be read for the first time and referred to the Hearinqs Panel for hearinq June 2, 1980, with panel recommendations to be brought back for 411 council consideration on June 9, 1980. Roll call vote: motion carried unanimously. CB 2127--Levying assessments for paving, sanitary sewer, and storm sewer within and adjacent to Nolan Industrial Park. (79-09) Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be read for the first time and referred to the Hearinqs Panel for hearinq June 2, 1980, with panel recommendations to be brought back for '. council consideration on June 9, 1980. Roll call vote: motion carried unanimously. CB 2128--Levyinq assessments for pavinq, sanitary sewer, storm sewer, and pedestrian way to serve Anton Subdivision and Amber Subdivision, and sanitary sewer construction within 160 feet of the east boundary of Anton Subdivision; and paving, sanitary sewer, and storm sewer construction within Kerrick Subdivision and sanitary sewer within 160 feet of the north boundary of Kerrick Subdivision. (79-13) Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be read for the first time and referred to the Hearings Panel for hearing June 2, 1980, with panel recommendations to be brouqht back for council consideration on June 9, 1980. Roll call vote: motion carried unanimously. - CB 2129--Levying assessments for pavinq, sanitary sewer, storm sewer, and pedestrian way in Seychelles West III Subdivision: and paving, sanitary sewer, and storm sewer construction within Seychelles West IV Subdivision. (79-18) Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be read for the first time and referred to the Hearings Panel for hearing June 2, 1980, with panel recommendations to be brought back for council consideration on .June 9, 1980. Roll call vote; motion carried unanimously. CB 2130--Levying assessments for paving and sanitary sewer on Elizabeth Avenue from Jessen Drive to Beltline Road. (79-21) Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be read for the first time and referred to the Hearings Panel for hearinq June 2, 1980, with panel recommendations to be brought back for council consideration on June 9, 1980. Roll call vote: motion carried unanimously. C8 2131--Levyinq assignments for paving, sanitary sewer, and storm sewer within and adjacent to Braewood Hills Subdivision. (79-30) - 5/27/80--16 e Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be read for the first time and referred to the Hearings Panel for hearing June 2, 1980, with panel recommendations to be brought back for council consideration on June 9, 1980. Roll call vote; motion carried unanimously. CB 2132--Levying assessments for paving and sanitary sewer on Seneca Road from 1st Avenue to 11th Avenue. (78-29) Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be read for the first time and referred to the Hearings Panel for hearing June 2, 1980, with panel recommendations to be brought back for council consideration on June 9, 1980. Roll call vote; motion carried unanimously. CB 2133--Levying assessments for paving, sanitary sewer, and storm sewer within Garfield Heights Subdivision; on Hayes Street from 25th Avenue to 25th Place; and on Garfield Street from 25th Place to approximately 300 feet south. Ms. Smith moved~ seconded by Mr. Lieuallen, that the bill be read for the first time and referred to the Hearings Panel for hearing June 2, 1980, with panel recommendations to be brought back for council consideration on June 9, 1980. Roll call vote; motion carried unanimously. e The following council bill, read the first time March 10, 1980, and referred to the March 17, 1980, Hearings Panel, was held over. It has been amended and had first reading again and was referred to the Hearings Panel to be held June 2, 1980. CB 2090--Levying assessments for paving, sanitary sewer, storm sewer, and pedestrian way within Clarey Plat First Addition. (79-02) Ms. Smith moved, seconded by Mr. Lieuallen, that the bill be read for the first time and referred to the Hearings Panel for hearing June 2, 1980, with panel recommendations to be brought back for council consideration on June 9, 1980. Roll call vote; motion carried unanimously. V. PAYMENT OF BILLS AND CLAIMS Mr. Obie left the meeting. Res. No. 3373--Authorizing payment of bills and claims for the period May 12, 1980, through May 27, 1980. Ms. Smith moved, seconded by Mr. Lieuallen, to adopt the resolu- tion. Roll call vote~ motion carried unanimously. . 5/27/80--17 . e e The meeting was adjourned to May 28, 1980. Respectfully submitted, ~)~ Charles T. Henry City Manager (Recorded by Lynda Nelson) CTH:al/CM7a1 5/27/80--18 DEPARTMENT OF PUBLIC WORKS Engineering Division -- Bid No. 1 Opened: May 22, 1930 1. PAVING VAN BUREN STREET from 12th Avenue to 13th Avenue: Storm Sewer on 12th Av.e. Van Buren to Jackson (Job #1788) Bidders: Contract Cost Basic Alternate AWARD 1. Wildish Construction Co. ---------------------$ 50,685.39 2. Eugene Sand & Gravel, Inc. -------------------$ 51,257.64 3. H & J Construction ---------------------------$ 55,582.25 4. Shur-Way Contractors, Inc. -+-----------------$ 56,285.55 5. Morse Bros. Contractors, Inc.-----------------$ 60,299.70 $ 49,820.39 $ -0- $ 53,052.10 $ -0- $ -0- Cost to Abutting Property Cost to City 34.25/FF Storm $ 30~500.00 Paving $ 4,900.00 COMPLETION DATE: July 31, 1980 Amount Budgeted $ 9,000.00 $ 3,100.00 .------------ .------------------------------------------------------------------------------------- -2. SANITARY SEWER 21st Avenue from .Agate to 4It 250 feet West (Job #1877) Bidders: Contract Cost AWARD 1. Bowers Excavating & Fencing, Inc.-----------$ 10,314.90 2. Emerald Excavating, Inc.--------------------$ 11,696.00 3. Kenneth R. BosticK Construction Co.---------$ 13,036.00 4. Wildish Construction Co. -------------------$ 14,137.00 5. Shur-Way Contractors, Inc.------------------$ 14,348.20 6. Dan D. Allsup Contractor, Inc. -------------$ 14,669.00 7. Eugene Sand & Gravel, Inc. -----------------$ 16,547.00 8. H & J Construction -------------------------$ 17,680.00 9. Cascade Ditching Co. -----------------------$ 18,532.40 Cost to Abutting Property None Cost to City $ 11,350.00 Amount Budgeted $ 21,100.00 COMPLETION DATE: July 15, 1980 --------------------------------------------------------------------------------------------------- e Page 1 of 2 .... ,~ .. , 3. STORM SEWER on Mill Street and 36th Avenue. (Job #1797,) - Bidders: Contract Cost lARD 1. Bowers Excavating & Fencing' Inc.----------------$ 24,881.20 2. Dan D. Allsup Contractor, lnc.------------------$ 25,286.60 3. Wildish ConstructionCo.------------------------$26,829.12 4. Eugene' Sand & Gravel, Inc.----------------------$ 27,046.00 5. Shur-Way Contractor; Inc.-----------------------$ 28,014.00 6. H & J.Construction -----------------------------$ 30,364.60 7. Kenneth R.'Bostick Construction Co. ------------$ 30,663.80 8. Cascade Ditching Co.. ---------------------------$ 47,327.32 Cost to Abutting Property None' . Cost to City $ 27,400.00 Amount Budgeted $ 30,200.00 COMPLETION DATE: August 31, 1980 -------------------------------------------------------------------------------------------------. - - -, - . , - e . Page 2 of 2