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HomeMy WebLinkAboutMinutes-05-19-78-Adjourned Regular MeetingG C1133 MINUTES OF THE CITY COUNCIL OF THE CITY OF DOWNEY ADJOURNED REGULAR MEETING MAY 19, 1978 The City Council of the City of Downey held an adjourned regular meeting at 7:30 a.m., May 19, 1978, at the Downey Community Hospital, Mayor William L. Greene presiding. PRESENT: Council Members: Theodore H. Jackman Kenneth J. Miller Mayor Pro Tem Milton R. Mackaig Lyell W. Swearingen William L. Greene Mayor ALSO PRESENT: Charles W. Thompson, City Manager Martin F. Wynne, Director of Finance Robert L. Shand, City Clerk -Treasurer Downey Community Hospital Staff: Allen R. Korneff, Administrator Vic Kolodziej, Director of Finance Louis Brame, President, Board of Directors John Rafferty, Chief Accountant Charles Hutchinson, Treasurer, Board of Directors Mayor Greene announced the purpose of the meeting is to discuss the Downey Community Hospital Budget for Fiscal Year 1978-79. Ms. Korneff distributed copies of the Hospital Budget to members present. He explained that Mr. Kolodziej, the Hospital Director of Finance, will review the Budget and attempt to answer any questions of the City Council leading to eventual approval of the requested room rates. Mr. Kolodziej proceeded to review a hand-out sheet called the "Downey Community Hospital Budget Calendar" for fiscal year July 1, 1978 - June 30, 1979. This calendar is .used as an activity list with the departments in preparing the Budget. The Hospital uses the Zero Base Budgeting method. Ms. Hutchinson explained how the new Budget is referred to the Budget Committee for analysis and comparison to the prior year's Budget. Mr. Thompson asked Mr. Kolodziej who prepares the decision packages for the Zero Base Budget. Mr. Kolodziej said the administration and the department heads work together in preparing the Hospital objectives, which are the same as decision packages. He ex- plained the 1978-79 Fiscal Year Hospital Budget sheet by sheet. Mr. Thompson inquired regarding cost-effective operations. Mr. Kolodziej explained that ineffective functions such as bed care cases have a fixed "people care" routine without flexibility. However, cost-effective areas such as ancillary and lab are subject to automation methods with cost saving results and increased efficiency. Mr. Wynne raised questions regarding the computer costs. Mr. Kolodziej said computer costs will decrease as the Service Center functions are phased out and the in-house system takes over. The computer staff will consist of six employees. He stated the interest expenses reflect an increase because of the new scanner that was financed through the Chemical Bank. The 1978-79 Budget provides for hiring a Director of Marketing for the purpose of locating new sources of revenue producing Hospital services. Mr. Kolodziej explained how the 3.54% rate increase is calculated. Discussion followed regarding personnel costs, types of operations (major/minor), and depreciation costs. Councilman Jackman requested a breakdown of the administrative costs. He also inquired regarding the salary for the Administrator. Council Minutes 5/19/78 (adjourned) -1- CDO3-1 Mr. Kolodziej referred to Page 5, Operating Expense, item titled Administration. This item, he said, includes administrative salary increases, consulting fees, legal fees, and travel expenses. Councilman Jackman indicated he would like to know the details of such items as the Administrator's salary and any expected increase for the coming year. b:lr. Korneff said such details are not a requirement of the lease. Councilman Miller concurred with Councilman Jackman's request. Mr. Korneff explained that not all data in the Hospital files is considered public: information, and certain files are considered corporation information. The extent of the lease agreement is to require information that indicates the Hospital is being properly managed and all financial obligations are being properly met. Mr. Brame said the Board of Directors feels the Hospital is giving the City a lot of detail in the report. Councilman Swearingen agreed with Mr. Brame. Councilman Mackaig left the meeting at 9:28 a.m. Councilman Jackman again requested a breakdown of the Administrator's salaries and costs. Discussion followed. Mr. Brame mentioned the Administrator's salary has not been set for the coming fiscal. year. An Administrator's salary survey is being considered. Mr. Kolodziej said the administrative figure in the Budget is an anticipated amount. The Director of Marketing's salary is included in this figure. The Administration figure includes the Administrator, Assistant Administrator, Director of Finance, Associate Director of Supportive Services, and two secretaries in 407 account. 447 account includes Director of Marketing. Postage is also contained in Administration, as well as dues and subscriptions. There being no further business to come before the City Council, at 9:40 a.m. the meeting was adjourned to 6:30 p.m., May 23, 1978, in.the Council Chamber of the Downey City Hall, for joint meeting with the City Planning Commission. Robert L. Shand, -City Clerk -Treasurer William L. Greene, Mayor Council Minutes 5/19/78 (adjourned) -2-