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Home My WebLink AboutMinutes-05-24-77-Adjourned Regular MeetingMINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING MAY 24, 1977 The City Council of the City of Downey held an adjourned regular meeting at 5:30 p.m., May 24, 1977, in the Council Chamber of the Downey City Hall, Mayor Richard M. Jennings presiding. PRESENT: Council Members: Kenneth J. Miller William L. Greene Mayor Pro Tem Theodore H. Jackman Hazel N. Scotto Richard M. Jennings Mayor ALSO PRESENT: Charles W. Thompson, City Manager Martin F. Wynne, Acting Director of Finance Robert L. Shand, City Clerk -Treasurer Mayor Jennings announced the purpose of the meeting is for a study session on the Downey Community Hospital Budget for 1977-78. Mr. Allen Korneff, Administrator, commented on the contents of the Hospital budget. He noted the budget reflects a 75 percent occupancy rate which is less than experienced in prior years; the gross revenue reflects an increase of 9.9 percent; and salaries reflect an increase of 9.2 percent Responding to questions Mr. Vic Kolodziej explained the room rate structure and formula used to project total revenue increase anticipated. He then commented on the medical fees, surgicenter financing, and purchase of the Trenery building. Mr. Korneff said the Hospital uses for salary comparison the Hewitt and Associates survey of all hospitals in Southern California, which also contains Benchmark recommendations of what the different job classifications should pay. Responding to further questions, Mr. Kolodziej stated the amount budgeted for Medical Purchase Services is for radiology and lab tests, which are billed back to the patients to offset this amount. Councilman Jackman asked if the Scanner has been purchased. Mr. Korneff replied it is on order at this time and is expected to be de- livered in January or February of 1978. Councilwoman Scotto asked about the change in the amount for Meals on Wheels. Mr. Kolodziej explained the Hospital is now only preparing 17 meals per day for this program. It was noted the Hospital is acting only as a backup rather than the source for preparing the meals. Mr. Kolodziej commented on Workers' Compensation, the cash flow study, and the replacement of office and major Hospital equipment. A discussion was held regarding the method of depreciation within the hospitals. Mr. Korneff commented regarding the Hospital's projected revenue picture for next year. Councilwoman Scotto inquired as to the indebtedness the Hospital expects to incur this coming year. Mr. Kolodziej replied approximately a $3 million package spread over eight years for equipment and some construction. Mr. Korneff pointed out the critical factor will be in maintaining the medical staff, to attract new physicians into the community. He mentioned the Hospital was fortunate, after losing approximately 20 physicians a year and one-half ago, to have been able to attract several new physicians into the community. Mr. Korneff outlined the anticipated opening balance for the Hospital Budget. Council Minutes 5/24/77 (adjourned) -1- °f 7=8 Mayor Jennings questioned the net income available for capital expenses and the total cash available for capital projects which, he said, should be the same, and he thinks the budget should reflect an opening balance and ending balance. Mayor Jennings then stated before he votes, he wants to see the existing rates and pro- posed rates listed on the same page; also, a schedule of the existing and proposed salaries. Mr. Wynne cited ambiguities in the cash flow disbursements chart. Discussion ensued. Mr. Thompson asked if there is a national hospital organization that sets certain standard accounting or budgetary practices. Mr. Kolodziej replied not for budgetary practices, but the Hospital uses the California Hospital Facilities Commission for the way it accounts for its dollars. Mr. Wynne said there is a need for the Council to see the entire cash flow picture of the Hospital. Mr. Korneff pointed out that the carry over dollars are all fully encumbered for capital purposes and are not available for operating expenses. He commented on the required expenses of the Hospital next year for the ICU -CCU Unit, Laboratory construction, and the Scanner/Room. Mr. Korneff discussed the need for the ICU equipment, which he said will give better patient care. He also commented that the price control placed on hospitals affected their ability to purchase needed equip- ment when the costs were lower, rather than the current inflationary prices. Councilman Greene suggested a list be prepared of the Downey candidates in the HSA election.. Mr. Korneff concurred. Both he and Mr. Kolodziej pointed out that hospitals are more and more under the authority of the Federal Government, and the Government will be setting hospital rates in the future. Further discussion followed. Mayor Jennings stated he feels the budget should be held over until the next Council meeting, without consideration for the 30-day time limit, so that the Council can have a print-out of the room rate increases and individual salary increases. Mr. Kolodziej explained the information can be provided to the Council, but since it is necessary for the Hospital to inform its insurance companies 30 days in advance of what the rates are going to be, this could create a 30-day delay. Councilman Jackman suggested that if the Council has the requested informa- tion, it could hold an adjourned meeting on May 31st to act on the Hospital budget within the 30-day time limit. Mayor Jennings said a mid -step classification schedule of employee salaries would be sufficient. An adjourned Council meeting was set for 5:30 p.m., May 31, 1977, for action on the Downey Community Hospital budget. There being no further business to come before the City Council, the meeting was adjourned at 7:19 p.m. Robert L. Shand, City Clerk -Treasurer Council Minutes 5/24/77 (adjourned) -2- MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY MAY 24, 1977 T A B L E O F M I N U T E A C I I O N S SUBJECT: ACTION• PAGE NO. Proclamation, May 22-28, 1977, National Public Works Week 1 Presentation to Public Works/Engineering Employee of the Year Postponed to next meeting 1 City of Downey Budget for Fiscal Year 1977-78 Hearing continued to 6/14/77 2 Removal of Items from Consent Calendar 2 Minutes, Adj. Reg. Meeting March 7, 1977 Approved as corrected 2 Minutes, Reg. Meeting May 10, 1977 Approved 2 Corres. from PUC re Appl. #57199 of So. Cal. Edison Co. for Increase in Energy Cost Adjustment Billing Factor Filed 2 Denial of Legal Claims: Ref. #321 & #322 Approved 2 General Warrants: #152725-153003; #203518-203553 Approved 2 Corres. from Downey Chamber of Commerce re Budget Request for 1977-78 Corres. from LA County Transp. req. Financial Support to continue SCRTD Services Received & filed 2 Ordinance #525, Amending Sec. 8100, 8100.1, & 8100.2 DMC re Const. of Imprvmts in Public R/W Adopted 3 Ordinance #526, Amending Sec. 6593 & 6597 DMC re Swap Meets Adopted 3 Downey Rose Float Assn. req. for Funds to pay Flower Bill: Pay $2400 this year & consider minimum of $500 in budget for entry fee in coming fiscal year Approved 4 Rose Float Assn.: $2400 to be taken from General Fund Balance Approved 4 Resolution #3405, Apprvg. Dist. Process for Safer Off —Systems Roads Annual Apportionment Adopted Resolution #3406, To make use of Funds made available thru See. 701 of 1954 Housing Act Adopted 4 Resolution #3407, To make use of Sec. 701 of 1954 Housing Act Funds Adopted 4 S.S. Project #320, Sidewalk Const. Lakewood Bl., Paramount Bl., Woodruff Ave., & DePalma St.: Award to T.J. Crosby Co. of Santa Ana (Acct. #40-13917 or #26-16182) Approved 4 S.S. Project #309, Gardendale St.: Extra work $2,=_94.60 & improvements completed Approved 4 (Acct. #26-16168) CC #405, Bicycle Access Paths: Plans, specs & auth. to advertise (Acct. #40-13917 & #40-13929) Failed 5 $300 for Wheelchair Ramps at Rio San Gabriel Park Approved 5 Sidewalk Matching Fund Apple. rot to exceed $1078 Approved 5 Page 1 of 2 COUNCIL MINUTES, MAY 24, 1977 TABLE OF MINUTE ACTIONS SUBJECT: ACTION: 2156 Report reflecting City's 5—year street maint. needs for 1982-87 Approved Amendment #2 to Water System Acquisition Agmt.: Auth. Mayor to execute Approved Helpline Youth Counseling Fund Request ($8716)): To be included in 1977-78 Budget Approved Golf Course Professional Services at Rio Hondo Golf Course: Auth. staff to advertise for bids Approved Wilderness Park playground equipment, Part II Taken under submission for development further report Downey Community Hospital Budget for 1977-78 Previously considered during study session South Gate Jail Agreement: Auth. Mayor to sign 105 Freeway Corridor: Discussion re meetings w/Goverrior Brown and Assemblyman Young Request for follow—up information on Results of Legal Claims Comments re Volunteer Suggestions Request for new procedure of double water bills prior to shutting off water City Attorney retainer fee requested increase Sister City Program: Discontinue altogether Meeting adjourned to 5/31/77 re study session on Downey Budget for 1977-78 Approved Council will review & decide prior to July lst Failed PAGE NO. 5 5 C C 0 6 7 7 7 7 8 W Page 2 of 2