HomeMy Public PortalAbout01-18-1982 PROCEEDINGS OF THE COMMON COUNCIL OF THE
CITY OF RICHMOND, INDIANA, JANUARY 18, 1982
1 The Common Council of the City of Richmond, Indiana, met in regular
2 session.January . 18., 1982 at the hour of 7:30 p.m. in the Council Chambers
11/ 3 in the Municipal Building in said City. President Mills presided with
4 the following members present: Messrs. Elstro, Ahaus, Hankinson, Welch,
5 Parker and Paust.• : Absent: Williams and Carter. The following business
6 was had, to-wit: 2D-1J -
7
8 DEVOTIONS
9 -
10 Councilman Elstro gave devotions, having a moment of silence for
11 Councilman Marion Williams who is in the hospital.
12
13 APPROVAL OF MINUTES OF JANUARY 4, 1982
14
15 Councilman Hankinson moved to approve the minutes of the previous
16 meeting as prepared, seconded by Councilman Paust and on unanimous
17 voice vote the motion was carried.
18
19 PETITION
20
21 Councilman Welch moved to suspend the rules and read a Petition by
22 title only, seconded by Councilman Ahaus and on unanimous voice vote
23 the motion was carried.
24
25 The Clerk read by title only PETITION FOR VACATION OF PUBLIC WAY
26 (Richmond Community Schools request vacation of a portion of S. W. 1st -
27 between S. W. "D" and S. W. "E") .
III 28
29 President Mills stated this Petition is referred to the Plan Commission.
39 -
31 ORDINANCES ON 2ND READING
32
33 The Clerk read by title only Ordinance No. 1-1982 - AN ORDINANCE TO
34 APPROPRIATE WITHIN THE GENERAL FUND.
35
36 ' City Attorney Ed Anderson checked the proof of publication and found it
37 to be in order. Councilman Ahaus moved the proof be accepted and filed,
38 seconded by Councilman Parker and on unanimous voice vote the motion
39 was carried.
40
41 City Controller Meredith explained the City is changing the computer
42 and will have more flexibility. Social Security, Unemployment, PERF,
43 Blue Cross-Blue Shield, Life Insurance, Hospital & Medical for the
44 Police and Fire Departments,. Police and Fire Pension have been taken
45 out of the Board of Works, which does not reflect the true cost back
46 to the various departments. These amounts will now be taken from the
47 department'budgets..
48
49 Councilman Mills announced. Ordinance No. 1-1982 is on public hearing. .
50 There being no one speaking for or against this Ordinance Councilman
51 Hankinson moved for engrossment, seconded by Councilman Parker and on
52 unanimous voice vote the motion was carried.
53
54 Councilman Welch moved to suspend the rules and read Ordinance No. 1-1982
55 on third and final reading by title only, seconded by Councilman Hankin-
56 son and on unanimous voice vote the motion was carried.
57
58 The Clerk read on third reading by title only Ordinance No. 1-1982.
59 -
60 Ordinance No. 1-1982 was adopted by the following vote:
61 AYES: Elstro, Ahaus., Hankinson, Welch, Parker, Paust, Mills (7)
62 NOES: None (0)
63 ABSENT: Williams, .Carter
192
Council Minutes Cont'd.
January 18, 1982
Page 2
1 ADDRESS TO COUNCIL BY REID MEMORIAL HOSPITAL REPRESENTATIVES
2
3 Dr.: James Lewis,. 720 Toddsbury Lane, Chief of Staff;. stated the entire
4 emphasis ofthe new program is to improve the quality of patient care,
5 not to increase bed capacity. It will improve intensive and coronary
6 care, improvement in O.B. , improvement and enlargement in the 'newborn
7 and special nurseries, improvement in emergency, improvement in radi-
8 ology, and increase ability to nuclear studies.
9
10 Dr. Olin Wiland, 4375 So. "C" Street, Pathologist at Reid and member of
11 the Executive Committee of the Medical Staff, summarized the key meet-
12 ings that have .taken-place over the last few years in relation to the
13 expansion program. The Tribrook consulting firm assisted in developing
14 the long range plans of the hospital, which were completed in 1979 and
15 were adopted. He outlined the various meetings held since that time.
16 He stated the comprehensive study of long range needs of Reid Memorial
17 , Hospital has been very thorough and has progressed in an orderly
18 manner.
19
20 Dr. Al Hollenberg, Hagerstown, Chief-elect of Staff, stated he• pre-
21 sided at the last Executive Committee meeting at which time Dr. Sherer's
22 comments to Council were=reviewed. The Committee voted to reaffirm
23 their support for the project. -He stated-.the doctors and staff did
24 have very adequate input into the project. The staff as a whole was
25 not given an opportunity to approve or disapprove the final project,
26 but many of the meetings were open to all the staff.
27
28 Mr. Ken Spoon, 1915 Reeveston Road, President of Reid Hospital, pre-
29 sented pamphlets describing the building project to Council. He stated
11/
30 Reid is a health care institution, but they are also --a- business and
31 can render care only if they are successful as a business. He went in-
32 depth into the financial strength of Reid. . He stated this project will
33 result in increased costs of $43.00 for adjusted patient day. $22.00
34 will be added on to the room charge in the first full year of operation.
35 The hospital has had the most expert financial advice available. The
36 hospital has the ability to repay its debt as it is financially sound.
37 The Board has determined after much study that this project is both
38 feasible and a sound investment for this community.
39 _
40 Mr. Art Vivian, 3487 Wernle Road, Chairman of Reid Hospital Board,
41 stated he has served on the Board for twenty-four (24) years. Reid's
42 mission is to provide thee) best care possible for the lowest price
43 possible, consistent and within the restraints of good management.
44 Since 1953 he has been involved with five (5) planning processes and
45 five (5) expansions to Reid Hospital. The last planning has lasted
46 over three (3) years and has been expert, excellent and thorough.
47
48 In response to questions from Council:
49
50 Dr. Lewis stated the 'original part of the hospital is going to be torn
51 down because it cannot be brought up to code due to cost. Mr. Spoon
52 stated the building is structurally sound but not safe from a fire
53 standpoint. It cannot be used for patient care and has no medical
54 use for the hospital.
55
56 Mr. Spoon stated the old bond issue will stay at the present rate at
57 a 6% interest rate. The rate for the new issue will be 142%.
58
59 Mr. Spoon stated the hospital is putting in an internal
60 purchased telephone system, which will be purchased and maintained
61 by a company from Dayton, Ohio. The system will cost less than Reid's
62 current 'arrangement. Dr. Lewis stated the present system is grossly
63 inadequate.
193
Common Council Minutes Cont'd. •
January 18, 1982
Page 3
1 Mr. Spoon explained the initial bonding is allowed to stay at 6% as
2 the current debt represents a refinancing of an earlier debt. This
3 was done because the ineterest rate became advantageous. The overall
4 - interest rate on the 1972 debt is 6%. These bonds will continue and
5 money will be set aside to pay those off by taking 5.5 million of
6 the new debt and put in escrow;..: earning interest at 132% so that 5.5
7 million will be set aside to pay off 8.5 million. The money they
8 will now be borrowing is at various rates, some at 142%, so they will •
9 be earning 132 and paying 141/2. The project is basically a 23 million
10 and the total given is 30 million. The other 1.5 million has to do
11 with discounts and fees paid. The net proceeds from the bond issue
12 are 28 million.
13
14 Dr. Wiland stated Tribrook, specialists in hospital planning, did
15 get input from the- local physicians.
16
17 Mr. Spoon stated that if the same profit structure is continued, the
18 $43 per day increase will be in addition to the cost of living in-
19 crease. If the need to generate profit to their rate structure has
20 changed, because of financing the equity up in front, the need for
21 - the increase may change. Their revenue has been set to generate
22 more than 1 million dollars per year toward the building fund. If
23 it continues at this level the $43 would be in addition.. to the supply
24 and operating expense increase for that one year.
25 - -
26 In response to a question concerning Reid going outside the community
27 to get telephone service, Mr. Spoon stated they believe-in. doing
28 business locally and General Telephone has provided good service;
29 however, their system is outmoded and they engaged a firm that de-
30 signed a system to meet the hospital's needs. They feel their
31 greatest obligation is not to a local firm, but to provide patients
32 the best service. BTS, the system they have chosen, is in a pre-
33 dominate number of hospitals. They are sorry the choice means they
34 will not do business locally.
35
36 President Mills thanked the hospital representatives for their input.
37
38 ADJOURNMENT
39
40 There being no further business on motion duly made, seconded and
41 passed the meeting was adjourned. -
42 _ - -
43 - Kenneth Mills
44 • President
45 -
46 ATTEST: JoEllen Trimble
47 City Clerk
94