Finance Caucus - October 5th, 2015

MINUTES OF THE
FINANCE CAUCUS COMMITTEE MEETING
Monday, October 5, 2015 – 7:15 p.m.
Main Conference Room
Mayfield Village Civic Center

The Finance Caucus Committee meeting was held on Monday, October 5, 2015 in the Main Conference Room at Mayfield Village Civic Center. Mr. Saponaro called the meeting to order at 7:30 p.m.

Present: Mr. Saponaro, Mr. Marrie and Mr. Marquardt (7:40)

Also Present: Mrs. Mills, Mr. Jerome, Mr. Williams, Mr. Wynne, Mr. Cappello, Mr. Marrelli (7:40), Mr. Metzung, Chief Carcioppolo, Chief Edelman, Mr. DiNardo, Mr. Thomas, Ms. Wolgamuth, Mr. Esborn, and Mrs. Betsa

1. Leadership Academy for Councilman Jerome and Chief Carcioppolo (Cleveland State University, Levin College of Urban Affairs ($6,200).

Mr. Saponaro stated these are budgetary items. It is a phenomenal program.

Mr. Marrie agreed, it’s a great program.

Mr. Jerome stated, it’s been going on for 25 years.

Mr. Marrie stated, and you will meet some very interesting people.

2. Part-time Building Inspector status (employee v. independent contractor).

Mr. Wynne reported, we currently have two part-time building inspectors. PERS has changed the healthcare plan for retirees who are eligible for Medicare forcing them into a situation where they go more towards Medicare versus having the pension plan pay for their healthcare. Many municipalities around the County are staffed with multiple part-time inspectors who are now because of this change effective January 1st are not willing to work any more because it’s going to affect their ability to get healthcare. One of the ways to combat this was to change the relationship between us and our part-time inspectors to that of being an independent contractor versus being a part-time employee. We worked with the Law Department and they drafted up an Agreement. The part-time individual is willing to go out and get his own insurance and be totally independent, self-insured and operate a business. We would then have him sign this independent contractor agreement which would cover us from a PERS standpoint.

Mr. Marrie asked, we have two?

Mr. Wynne replied, yes. Only one wants to do it. The other one right now I think is comfortable with the PERS changes and staying on board as a part-timer. I will confirm this with John. That could change tomorrow.

Mr. Marrie stated, makes sense to me.

3. Civic Center parking lot lighting.

Ms. Wolgamuth stated, I gave you the entire bid packet. I wanted to mention, it says “prepared by Jim McKnight”, it’s because I put this packet together but I used the language that he had done when we did the Library driveway lighting so I did not think it was appropriate to put anyone else’s name on it. Just so everyone understands, we did not pay him to put this packet together. The bid opening is on Friday. The base bid will be for the lighting just coming up the driveway, the poles that come up the new circular driveway and for two ground boxes where future signage would go on either side of the driveway. Alternate 1 is the rest of the parking lot. We will see what comes in on Friday.

Mr. Marrie stated, frankly, I would hope to see the alternate.

Mr. Jerome asked, are these the same kind of lights as at the Library?

Ms. Wolgamuth replied, yes.

4. Cleaning at Community Room 7 days per week (Camco Cleaning Services - $1,626 per month).

Mr. Metzung stated, they have been cleaning it 3 days a week. As Ron discussed regarding part-time employees, we had a part-time employee with the same PERS issues cleaning the Community Room who decided he is going to officially retire.

Mr. Jerome asked, there always has been someone cleaning it 7 days a week?

Mr. Metzung replied, right.

Mr. Saponaro asked, why do we need it cleaned 7 days a week?

Mr. Metzung replied, it’s used every day.

Mr. Saponaro asked, are we including cleaning costs from the rentals? Do we get to recoup anything from that standpoint?

Mr. Jerome asked, is it $100 to rent?

Ms. Wolgamuth replied, yes.

Mr. Saponaro asked, so we are not including any of the cleaning costs?

Ms. Wolgamuth replied, no. Not specifically.

Mr. Marrie asked, they pay the $100. They don’t get this back? It’s strictly rent?

Ms. Wolgamuth replied, yes. Then they pay a deposit of $150. They get that back after the function. But we will be revisiting all of that now that we have the new Community Room. Whatever group we get together, I think we should talk about the rental rates for this building as well. All that needs to be revisited.

Mr. Saponaro asked, are we increasing really the cost or just shifting?

Mr. Wynne replied, it’s a shift, yes. We are actually saving a little bit.

Mr. Saponaro stated, okay, so there needs to be a cleaning number for everybody.

Mr. Marrie stated, a rental and a cleaning built into one.

Mr. Saponaro agreed. However you want to do it.

Mr. Jerome stated, with the new building, it should be taken care of from day 1.

5. Additional discussion on creation of new Chapter 176 regarding municipal income tax pursuant to House Bill 5.

Mr. Wynne stated, there have been no changes since the last discussion. This is on in case there are any additional questions or discussion.

Mr. Jerome asked, what was it under before?

Mr. Wynne replied, Chapter 175 which is still effective for tax years through 12/31/15. It has to be there as a resource. Chapter 176 will be effective January 1, 2016.

Mr. Jerome stated, we will have to figure out the Board that is going to have to meet.

Mr. Wynne agreed.

6. Donation of non-operational Ingersoll Rand-Air Compressor to Mayfield Heights.

Chief Carcioppolo stated, we replaced this. It is non-operational. The new one was installed this last week.

Mr. Marrie asked, why do they want it?

Chief Carcioppolo replied, they have the same unit and they can cannibalize the parts off of it. If we can get rid of it and give it to them, it’s pretty big. It’s almost the size of one of these tables. A little bit narrower.

Mr. Jerome asked, will they come and pick it up?

Chief Carcioppolo replied, we can pick it up with our crane and put it on their truck and get it out of here. It’s one thing we can get out of the station.

Mr. Marrie stated, that’s fine. Get rid of it. It’s non-operational. You have your new one. It’s just a piece of junk sitting there right now. If they can use it for parts, fine. God bless them. Go with it.

7. Bid results: 2015 Street Striping Program.

Mr. Saponaro stated, Pat Flowers and another company put a bid in. Pat Flowers will be awarded because the difference is a little bit less than $19,000. We took a straw vote. He will be starting work before the weather changes.

8. Demolition of house located at 470 SOM Center Road.

Mr. Metzung reported, this is the Zako house.

Mr. Marrie asked, the one in the back?

Mr. Metzung replied, yes. It’s been sitting there for many many years. It’s in disrepair. We turned the utilities off except for electricity quite a while ago. It’s been sitting dormant. John came to you last year, I believe it was. It was put on hold. It’s only gotten worse. Administration did look in to renting and rehabbing to no avail.

Mr. Jerome stated, I talked to Ted about restaurant groups coming in. It wouldn’t work.

9. Authorization for the Mayor and Mr. to enter into the Community Room Access Easement Agreement.

10. Authorization for the Mayor and Mr. to enter into the Reimbursement Agreement providing for reimbursement of $75,000.00 from the Mayfield School District for Alternate 1.

11. Approval of Change Order Number 001 in the amount of $75,000.00 bringing the total contract amount with Seitz Builders to $2,099,000.

Ms. Wolgamuth reported, they are giving us an easement so we can combine those two driveways that will be both for the School and Community Room. They want to accept Alternate 1 which is to get the work done on their property. The easiest way for us to do that is to do a change order and a reimbursement agreement and they will pay us back.

Mr. Saponaro stated, okay, just for the record, Alternate 1 is $75,000. That is the School District’s cost?

Ms. Wolgamuth replied, yes.

Mr. Saponaro continued, and it’s their cost because as we accepted the bid from Seitz they have to take the Alternate 1 bid from Seitz. They don’t get to pick and choose. They are fully responsible for 100% of that.

Ms. Wolgamuth replied, yes.

Mr. Saponaro stated, it benefits them because if they were to go do this on their own it would probably be cost-prohibitive at this point. Therefore when we approved the original contract with Seitz we approved it for an amount less than the $75,000 now we have to adjust it to add it to that approved amount knowing that we will be reimbursed from the School District. Make sense?

Ms. Wolgamuth replied, correct. Yes.

Mr. Saponaro asked, do we have a timeframe when the reimbursement would occur?

Mr. Wynne replied, this year we will have to adjust the budget to reflect $2,099,000. I would imagine we would not bill the schools until probably sometime next Spring.

Mr. Saponaro stated, then we will have to make another adjustment, right?

Mr. Wynne replied, the budget for next year will take into consideration the $75,000.

Mr. Saponaro asked, does that makes sense to everyone?

Mr. Marrie replied, yes. It’s clean

Mr. Metzung asked, why don’t we just call it a pass through?

Mr. Saponaro replied, it is a pass through but if you don’t know, you don’t understand why we are increasing it by $75,000. We just want to make sure for all of our guests that everyone knows why we are doing what we are doing.

Mr. Jerome asked, did they take out the cement drive that was ours? Is it already gone?

Ms. Wolgamuth replied, I don’t know if it’s already gone, but it is ours and it is going to be gone so we can put the waterlines in.

Mr. Jerome replied, it’s a shame. That driveway was in such good shape. It’s got to go. Got to evolve.

Mr. Saponaro agreed. It’s all part of it.

ANY OTHER MATTERS:

Mr. Saponaro asked, any other matters? I know we discussed the increase in manpower for the Police Department. That is an item we will get more information on. We will have further discussion on that. Other than that, is there anything else? There were no further matters.

There being no further business, the meeting adjourned at 7:43 p.m. The next Finance Committee meeting is scheduled for Monday, October 19, 2015 at 7:30 p.m. in the Main Conference Room.

Respectfully submitted,

Mary E. Betsa, Clerk of Council