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HomeMy WebLinkAbout08-26-19 Personnel and Finance � SpUTHg�1, U C w to v PEACE 1�./ % % 1865 OFFICE OF THE CITY CLERK KAREEMAH FOWLER, CITY CLERK PERSONNEL & FINANCE AUGUST 26, 2019 3:30 P.M. Committee Members Present: Karen White, Jo M. Broden, John Voorde, Committee Members Absent: Regina Williams-Preston Other Council Present: Tim Scott,Jake Teshka, Dr. Oliver Davis, Gavin Ferlic, Sharon L. McBride Other Council Absent: None Others Present: Dawn Jones, Lisa Horton, Bob Palmer, Bianca Tirado, Alkeyna Aldridge, Ben Dougherty Presenters: Chief Todd Skwarcan, Dan Parker Agenda: Bill No. 26-19 Amending Ordinance to Address Ambulance/Medical Fees Committee Chair Karen White called to order the Personnel and Finance Committee meeting at 3:30 p.m. She introduced members of the Committee and proceeded to give the floor to the presenters. Bill No. 26-19- Amending Ordinance to Address Ambulance/Medical Fees Todd Skwarcan, Assistant Fire Chief for City of South Bend Fire Department with offices at 1222 S. Michigan Street, South Bend, IN. So, what we have here today are referencing two (2) things which are our annual user fee letter that we submit to Council by the end of May every year. Then generally most years following along with that we make a recommendation for an update to our ambulance user fees. In this year's ordinance we also have language that allows for the Fire Chief to make a matching recommendation based on the centers for Medicaid and Medicare services annual user fee recommendation. So, they publish those generally annually in the spring. We had some other language like this in a previous ordinance,but there was some contradictory language, and I think legal worked with Council to clean that up. So, you should have our report that we turned in at the end of May, and then also this ordinance which updates the ambulance user fees for the year. Committee Chair White asked, Would you want to highlight any areas of this particular ordinance that you would want to bring our attention to? INTEGRITY SERVICE'ACCESSIBILITY JENNIFER M.COFFMAN BI.ANC.A L.TIRADO JOSEPH R.MOLNAR CHIEF DEPUTY/DIRECTOR OF OPERATIONS DEPUTY/DIRECTOR OF POLICY ORDINANCE VIOLATION CLERK EXCELLENCE I ACCOUNTABILITY I INNOVATION I INCLUSION I EMPOWERMENT 455 County-City Building 1227 W.Jefferson Blvd.I South Bend,Indiana 46601 I p 574.235.9221 I f 574.235.9173 I www.southbendin.gov CITY OF SOUTH BEND OFFICE OF THE CLERK Mr. Skwarcan replied, Well, you can look at last years rates versus this year's rates. Most of them are modest increases. So, not really anything too major there. I would point out that our two (2) most used codes are the Advanced Life Support Emergency ALS1, so that's code A0427. And then there's also Basic Life Support Emergency Code A0429. Those are, I would say ninety percent(90%) of our billings. Then the only other thing that I would point out new for this year is our Paramedic Intercept code. So,that code AZL432 so that's why you'll see non applicable in the previous ordinance. So,this kind of coincides with the ambulance chase cars that we're doing now for ambulance staffing. So, we're staffing our ambulances with advanced EMT's, and we have Paramedics. We have one (1) chase car that's funded by the County, and then two (2) paramedic cars that the City funds. So,those will go out in the event that paramedic level services are needed where they are not on most of our calls. So, it's a little more efficient staffing model,but then this billing code will allow us to use that also. Committemember John Voorde asked, Will you still have to come back every year? Mr. Skwarcan replied,So,we will report and inform Council of the rate changes,and then basically you will affirm those after the Chief makes a recommendation, but we'll still provide the annual report. We wouldn't come back. The increases would be self-effectuating as long as you didn't stop them. Councilmember Tim Scott stated, I appreciate you guys staying on top of this. I remember when you guys started coming on a regular basis so thank you. Committee Chair White then opened the floor to members of the public wishing to speak in favor of or in opposition to this legislation. Murray Miller, 23698 Western Ave., South Bend, IN stated, I always wondered what are the user fees used for?There was a recent story elsewhere(not here in South Bend), and it was determined that if the person in the ambulance could not pay the fees, they could not be transported in the ambulance which led to a death. Mr. Skwarcan replied, No, we don't ask any billing questions when our medics are on call. They don't raise any of those questions when they are on call,but for the first(1St)part of your question you asked what are the user fees for? So, they go directly to support the operations of the Fire Department. So, right now those revenues are captured and turned back into the operations of the department. Committemember John Voorde asked, Don't these fees now go to the General Fund? Dan Parker, City Controller for the City of South Bend with offices on the 12th floor of the County- City Building, stated, A portion of them do. Committemember John Voorde stated, Last week in your presentation I thought there was a change. There was a blending of funds. Mr. Skwarcan replied to Councilmember Voorde, Just to answer your question last Monday is more closely in line with what we have done in years past. Even with adding with Finance to kind EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov 2 CITY OF SOUTH BEND OFFICE OF THE CLERK of achieve that to get to that sustainable capital funding, but still be on track to chip in towards the operations side. This is closer to that model that we've had in the past few years. Committemember John Voorde replied, later on that evening I hope you guys recognized that I was trying to be supportive not critical. Committee Chair White then opened the floor to members of the public wishing to speak in favor of or in opposition to this legislation. There were none. She then turned the floor back to the Committee for further comment or main motion. Committemember John Voorde made a motion to send Bill No. 26-19 to Council with a favorable recommendation. Committee Chair White seconded the motion which carried with a voice vote of four(4) ayes. Update: PSAP Funding Mechanism-Dan Parker, City Controller-Administration & Finance Dan Parker,City Controller for the City of South Bend with offices on the 12th floor of the County- City Building, stated, So, yes as you mentioned Councilmember White this is about the PSAP funding mechanism. Currently PSAP is funded with an assessment between the two(2) Cities and the County. As you can see on the slide the 2019 assessments for the Cities and the County, as well as the 2020. The 2020 went down a little bit. These assessments combined for a total of about 8.9 million dollars in 2019 and 2020 which is the money that's used to fund PSAP today. The proposed new funding mechanism is a proposal that I actually just noticed will be heard by the County Council on September 10, 2019. The proposed modification would reduce the portion that is called the expenditure rate which is 4 million dollars COIT and create a corresponding PSAP rate. So, it will not change the overall income tax which is one point seven five percent (1.75%), but it does take a portion of that expenditure rate and use it to fund PSAP,and that portion is twelve percent(12%). So,what that means is that every entity that currently receives that expenditure rate will receive a reduced income tax, and that income tax difference will go directly to PSAP. That's what it says on there. Any interlocal agreement that includes obviously the County, the City, Mishawaka as well as all the towns and townships. The libraries,both Saint Joseph County Public Library and Mishawaka. The South Bend International Airport, TRANSPO and the South Bend Redevelopment Commission will all receive reduced income tax under this proposal. The Executive Board's goal is to make this effective for 2020 which is why the County Council is going to be hearing this just on September 10, 2019. So, it is going to be moving very quickly and we wanted to bring it to Council's attention here. Councilmember Tim Scott stated, Dan just really quick, President Morton from the County Council has asked this body to meet with them and Mishawaka on September 5, 2019 in the Council Chambers to basically hear all of this thing from them or their official version of this. Mr. Parker replied, In terms of what it would do,and these numbers might look somewhat different than some of what the County has out there. I believe that this is a better comparison which is why I want to show this to the Council today. What this has on here is our 2019 experience for South Bend, Mishawaka and the County as well as 2020 under the current distribution methodology and 2020 under the proposed new distribution methodology. So,under the current distribution in 2020 EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend.Indiana 46601 p 574.235.9221 1574.235.9173 TTD 574.235.5567 www.southbendin.gov 3 410 CITY OF SOUTH BEND OFFICE OF THE CLERK we expect local income taxes of about 33.3 million dollars, and we would pay about 3 million dollars for PSAP for our assessment. So,then that would be right around 30.3 million dollars.With the proposed redistribution we don't have any PSAP direct payment because they are going to take it out of the income tax, but our income tax does decrease by right around 3 million dollars. So, South Bend essentially comes out even. We essentially break even and come out a little bit ahead. I want to point out that some of you may have seen an analysis that shows us a little bit behind. The County re-ran some numbers and pushed us a little bit positive, but essentially South Bend breaks even under this redistribution. Mishawaka you can see on here, and at the end of the day the redistribution would improve Mishawaka's net position by about five (5) hundred thousand dollars, and improve the County's net position by about 1.3 million dollars in terms of taking their decrease in income tax net of the PSAP payment that they would no longer have to make in 2020. Mr. Parker went on to say, Down at the bottom of the presentation,but the remaining taxing units, town, townships, airport etcetera would have a net decrease of about 1.6 million dollars in their income taxes. So, that would impact all of the remaining taxing units with the exception of the schools. The schools do not receive the expenditure rate income tax to date so they would not see an impact, but all remaining taxing units would. As I said the County Council will consider this proposal in September. It is the County's responsibility to communicate the change for affected units which they did through their public notice that they just sent out today. The City of South Bend had not seen the proposed amendment to the local enterprise ordinance, but that is not actually true as of an hour ago. We did see what the County Council will be considering on September 10,2019. The Executive Board Committee are allowing us to review that before it will be considered by the Councils. We have not had an opportunity to respond to them as of yet because I just found out that they will be having a meeting on September 5, 2019. If that proposed modification is passed, the next step is that it would have to be passed by two (2) of the entities. So, the County, Mishawaka and the City of South Bend. Two (2)of those councils would have to pass this proposed modification and then it would become effective in 2020. I would suggest that the City insist on a reopening of negotiations regarding the interlocal agreement. Ensure that some of the new provisions that this modification in funding will generate,make sure that we renegotiate that with the County and with Mishawaka to make sure that our interests are protected. Some of the things to consider is what happens when income tax goes up or down? So, if income tax goes down how does PSAP continue to be funded if the amount of their direct assessment is no longer able to cover their operations? We want to make sure that we have the ability to monitor any operation of PSAP even without directly funding it. How does that Executive Board work given the change in the budget source? These are some of the things that have not yet been discussed with the County or Mishawaka, but it would probably need to be considered if the proposed funding mechanism were to be passed. Councilmember Dr. Oliver Davis stated, Are you suggesting that as a part of the passage that statement should be included in there? Mr. Parker replied, It is not in the proposed ordinance as it stands today. What I am suggesting is that if the County and Mishawaka or the City of South Bend passes this, and it is going to be effective we should work with the County and Mishawaka to make sure that we an can renegotiate the interlocal agreement. I think that the interlocal agreement is structured in a way that assumes that the funding mechanism is the assessment as it stands today, and if that's not going to be the goal for the assumption on the funding mechanism, we need to change the interlocal agreement to reflect that. EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvld South Bend.Indiana 46601 p574.235.9221 f574.235.9173 TTD574.235.5567 www.southbendin.gov 4 CITY OF SOUTH BEND OFFICE OF THE CLERK Councilmember Dr. Oliver Davis stated, I think that this is something for us to consider. That we pass that with that kind of situation because I see that's where we have our strength to ensure that we don't pass it and then come back and ask for that to happen afterwards. I don't see the strength of that. Committee Chair Karen White stated, We will get with Bob and make sure that our attorney is a part of those discussions as well. So, the issue as we look at this is that there are two (2) taxing units that would fare well from a financial perspective. Those would be the County and Mishawaka. So, it only takes two (2) entities to really pass this, and if I'm looking at it correctly and based on some past conversations the focal point of this is that South Bend has more calls for service, and that we need to be paying our fair share. I don't know if that's correct or not. Mr. Parker replied to Committee Chair White, So,the County has made statements in the past that if the assessments were done on the basis of call volume, we would be paying a larger share of the total assessment. This is because we have a higher share of the actual call volume than the County or Mishawaka. I haven't seen the numbers so I can't actually confirm that's true. Committee Chair White asked, So,do you have a sense of what really encouraged the need for this proposal? I've never answered that. Mr. Parker replied, So, I don't have a sense for why the proposal was coming now other than the PSAP interlocal agreement was originally set up as a five(5) year agreement, and it is coming up this year. It was set up in 2015 so it's coming up again in 2020. So, that might be the invitation to look at the funding source. I did also want to mention that we were asked as the City to put together what it would look like from a financial perspective and an operational perspective. If there was an alternative here to pull out a PSAP and have a stand-alone South Bend call center. We did do a financial analysis with several assumptions regarding the amount that we did not spend on particularly personnel's largest cost. Then we have the financial analysis that Renata Matousova, Director of Financial Services for Public Safety with the City of South Bend put together for the stand-alone PSAP. On a yearly basis between salaries, technologies, supplies and services the actual total annual operating cost comes right at about what our assessment is for the current PSAP. Right at about 3 million dollars,and that's roughly in line with what we would expect if you looked back at 2014 which is the last year that we did run our own call center. The cost was right around 2 1/2 million dollars, factoring in raises and inflation 3 million dollars seems reasonable for what we can expect it to cost. That would be in addition to sort of the up-front cost of at least 1 'h to 2 million just to kind of get going, and we timed for about a year. I also asked Chief Skwarcan of the South Bend Fire Department and Chief Scott Ruszkowski of the South Bend Police Department to speak more on this. Committee Chair Karen White then opened the floor to the rest of the committee members who wished to ask questions. Committemember John Voorde stated, I'd just like to quickly hear from Police and Fire about how you feel about the current service?There were stories from some time ago about all of the dropped calls and everything else. Are you satisfied with how this has played out? EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www southbendin.gov 5 CITY OF SOUTH BEND OFFICE OF THE CLERK Assistant Chief Todd Skwarcan stated, it's been a long five(5) years, I'll say that. I really feel that we're on the cusp of making some pretty dramatic improvements. The new CAT software is coming online at the end of this year, and we went through four(4) directors. It's been a struggle, but I think we're getting ready to finally see some of the expectations. Scott Ruszkowski, Chief of Police for the City of South Bend stated, I would say the same thing. It's been five(5)years and it's been an arduous process to say the least. However,being that we've had several directors I think the current director Schultz has been very transparent in recognizing the flaws that have adversely not been addressed or even hidden prior to this. So, they've been very transparent, forthcoming and having several meetings. Not just with command people or operations board, but with actual officers who use these systems on a daily basis and getting input from these officers. I think that's really the next step for us. Committemember Jo M. Broden stated, I don't know where to begin honestly. I would like a long- term analysis of this going back to inception to dollars that have been contributed over time. When you talk about a long five (5) years, if our community doesn't know that we need to put it out there. What the financial impact has been over time on all the entities for this. Then, I also want to identify that structurally unless there is a change in the balance and the composition of that organizational board, we're going to have some of the same decisions. The City, while we have a high call volume in terms of impact and effectiveness and efficiency,we're never going to be equal partners at the table until that composition of that board is adjusted. I don't know what the capacity is in terms of the neighborhood ordinance, but frankly too many decisions have gone on without our ability to impact it. As the largest users with a significant portion of the funding I guess I'd also like to ask too, what happens to the actual building itself and its capacity, its staffing models if the 5-million-dollar contribution is actually pulled out? Then an additional question is what is our capacity to operate? I know there's a requirement to have a backup system in place.That would be a request basically to flip this on its head and kind of revert back to the old. I just want to know what kind of entanglement (call them interlocals), but you also can call them entanglements that we're on the line for, and structurally how that can happen. I think at the heart of this is Executive Board composition and the fact that the City of South Bend (not just on this board), but on all boards at the County level are outnumbered. That's a huge disappointment, and if there's capacity to change that I would love to do that going forward. Committemember Jo M. Broden went on to state,On the finances side they've been working these numbers for over a year and a half. Why is there a change in what they typed out and distributed to the board versus what they gave to you today? Mr. Parker replied to Committemember Jo M. Broden stating, If you see any numbers out there that show that there's going to be an $800,000 dollar increase to the City of South Bend what that is,is comparing 2020 to 2019. The better comparison is 2020 under the current distribution versus 2020 under the new distribution. We're expecting income tax to increase from 2019 to 2020 in any case. The change was due to an error that was in the original analysis that was since corrected. Committemember Jo M. Broden replied, My last comment is I think a number of entities are getting blind sided on this. It's not the City of South Bend, it's not Mishawaka and it's not the County. It's going to their services, it's going to impact what they pay before us, the partnerships and agreements that have been drafted, and I think all of those entities need just out of courtesy EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W Jefferson Bvld South Bend,Indiana 46601 p 574.235.9221 f 574.235.917 3 TTD 574.235.5567 www.southbendin i.gov 6 ®CITY OF SOUTH BEND OFFICE OF THE CLERK for God sake, courtesy, let these other entities in our communities who deliver just as worth while services frankly, let them know. Committee Chair Karen White stated,That question was posed early on,and the question was have you communicated (I mean the County and the City of Mishawaka)have you communicated with these other entities? Do they realize what that impact is going to mean in terms of income? Then the what ifs because as we look say one (1) or two (2) years down the road that younger income maynot be there. Then what happens? pp Councilmember Tim Scott stated, No disrespect for five(5) years getting this up and running this has nothing to do with the people actually working those phones and those desks. It is high percent on management. Management has not done a good job, and that's really the Mayor's Office, Commissioners and everybody else involved with that. I completely agree with Councilmember Broden about everything she said on that. My big concern with this is I want to hear from the Mayor's Office official word of what they are going to do on this decision. This isn't going to be left to the Council because we're all in this together, and we need to throw that old agreement out the window and start over. I asked for what it would mean for us to go independent? I think that there would be people lined up in droves who want to come back to work for the City versus the County. That, plus we can enter into reciprocal where we're backup for them, and they're backup for us. With no further business,Committee Chair White adjourned the Personnel and Finance Committee meeting at 3:56 p.m. Respect 11 Submitted, —2 40. Karen ite, Committee Chair EXCELLENCE ACCOUNTABILITY INNOVATION INCLUSION EMPOWERMENT 455 County-City Building 227W.Jefferson Bvid South Bend.Indiana 46601 p 574.235.9221 f 574.235.9173 TTD 574.235.5567 www.southbendin.gov 7