Finance: March 16th 2015

MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, March 16, 2015 – 7:30 p.m.
Main Conference Room – Mayfield Village Civic Center

The Finance Committee meeting was held on Monday, March 16, 2015 in the Main Conference Room at the Mayfield Village Civic Center at 7:30 p.m.

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Present: Mr. Saponaro, Mr. Marrie and Mr. Marquardt

Also Present: Mrs. Mills, Mr. Jerome, Mr. Wynne, Chief Edelman, Mr. Marrelli, Mr. Thomas, Chief Carcioppolo, Mr. Cappello, Mr. DiNardo, Mr. Jeff Thomas, Mr. Esborn, Ms. Wolgamuth, and Mrs. Betsa

1. Discussion of a motion to authorize expenditure in the amount of $18,630 to WRIS Web Services for website redesign.

Mr. Saponaro stated, Jeff walked us through this during Finance Caucus and Council Caucus.  Does anyone have any questions or comments?  There were none.

The Committee recommended Item #1 for approval.

2. Discussion of a motion to authorize expenditure in an amount not to exceed $10,000 to Rosenberg Advertising for marketing and promotion of The Grove for 2015.

Mr. Saponaro asked, the quote was $8,000. Why is it $10,000?

Ms. Wolgamuth replied, it was $8,000, but the Committee had asked that I ask for a not to exceed $10,000 just in case there was additional work. 

Mr. Saponaro stated, I would rather just do it for the $8,000.  If you need additional, just come back.   We are amending this to state “Motion to authorize expenditure in the amount of $8,000 to Rosenberg Advertising for marketing and promotion of The Grove for 2015.”

The Committee recommended Item #2 for approval.

3. Discussion of a motion to authorize expenditure in an amount not to exceed $10,000 to Klyn Nurseries for the purchase of spring tree plantings.

The Committee recommended Item #3 for approval.

4. Discussion of a motion to authorize expenditure in the amount of $18,747.16 to Good Nature for fertilization of Village-owned lands.

The Committee recommended Item #4 for approval.

5. Discussion of a motion to authorize expenditure in the amount of $9,353.49 to Walker Supply for fertilizer products for Village sports fields.

The Committee recommended Item #5 for approval.

With regard to Items #4 and #5 combined, Mr. Wynne stated, last year we spent $27,600.  This year it will be a little over $28,000.

6. Discussion of a motion to authorize expenditure in the amount of $13,000 to Cuyahoga County Solid Waste District for 2015 technical assistance at construction sites per EPA requirements.

Mr. Saponaro stated, we discussed this at the last meeting. Are there any other questions?  There were none.

The Committee recommended Item #6 for approval.

7. Discussion of a motion to authorize the Village Engineer to prepare plans and specifications and to go out to bid for 2015 Road Program.

Mr. Cappello reported, this covers Beech Hill, Glenview, Bonnieview, Washington Extension, North Aintree.

Mr. Marrie stated, someone was talking about culverts and widening the road.  Is that in the picture?

Mr. Cappello replied, we will look into it. 

Mr. Saponaro asked, any other questions? There were none.

The Committee recommended Item #7 for approval.

8. Discussion of a motion to approve recommendation to accept bid from Sal Chemical in the amount of $8,175.70 for sodium hypo chlorite and muriatic acid for Parkview Pool for 2015.

The Committee recommended Item #9 for approval.

9. Discussion of a motion to authorize expenditure in an amount not to exceed $13,000 to RNS Outdoor Specialties for leveling, sodding, grading and edgework to softball and soccer fields..

The Committee recommended Item #9 for approval.

10. Discussion of a motion to authorize contract renewal with OneCommunity for internet service for three years and to authorize expenditure in the amount of $15,000 per year (total $45,000) to OneCommunity for annual subscription and fiber management fee and annual service fee.

Mr. Saponaro stated this is for $45,000. $50,000 was a five year?

Mr. Esborn replied, right. 

Mr. Saponaro asked, you feel we should stick with a three year at $45,000?

Mr. Esborn replied, yes.  One to limit our commitment. Two because there has been reduction in the price of bandwith. We figured maybe we might want to capture that again after three years instead of waiting five years.

Mr. Saponaro asked, but there is no option of having anything less than 3 years?

Mr. Esborn replied, nothing less than three years.

Mr. DiNardo asked, with the new FCC ruling considering internet service as a utility now, is that going to impact anything we are doing?

Mr. Esborn replied, we are blessed in a way to have such a small network and to have it set up the way we do with OneCommunity where in many ways our subscribers are dealing with OneCommunity and we seem less like a municipal provider. When that came out, that was my first thought. OneCommunity has developed this for-profit subsidiary called Everstream. It makes us look at perhaps using them as a provider instead of us being the municipal provider.

Mr. DiNardo stated, I knew there was some sort of impact.  We should look at long-term effects towards Mayfield Village.

The Committee recommended Item #10 for approval.

11. Discussion of a motion to authorize expenditure in the amount of $7,000 to OneCommunity for fiber ring maintenance fee for 2015.

Mr. Saponaro asked, fiber ring maintenance is different from the fiber management fee?

Mr. Esborn replied, right. The big difference is the $7,000 annual fee is for the fiber we own here in Mayfield Village. The maintenance fee that is lumped into the $15,000, everyone who has fiber connection from OneCommunity pays that fee to manage that connection. The $7,000 is for maintenance of the 88 strands that we have here in the Village. Sometimes Jeff will call OneCommunity to come out and investigate a problem with the fiber we own.  It’s that kind of maintenance.

Mr. Saponaro asked, so any time you need it?

Mr. Esborn replied, yes.

Mr. Saponaro asked, are they doing any diagnostics monthly?

Mr. Esborn replied, we have talked about that.  I got a report from them last year of what they did for maintenance. I can find that.

Mr. Saponaro stated, yes.  They may have scheduled maintenance. We should know what that is.

Mr. Jeff Thomas replied, they usually do it periodically about 4 or 5 times a year.

Mr. Saponaro stated, tell them that we are interested in knowing if there is anything on the horizon.

Mr. Jeff Thomas replied, a lot of it is that it comes up as it is needed.

Mr. Saponaro stated, an issue arises or there is a need.

The Committee recommended Item #11 for approval.

12. Discussion of a motion to authorize expenditure in the amount of $6,005 to CompManagement for Workers’ Compensation Pooled Rating Program Enrollment Fee for 2016 policy year.

The Committee recommended Item #12 for approval.

13. Discussion of a motion to acknowledge receipt of financial reports for February, 2015 and to approve of same as submitted.

Mr. Saponaro stated, the only thing I am going to request is that you include expenditures and checks like a check register on the back of it.  Not payroll, not taxes, not insurance, just expenditures, maintenance, professional fees, things of that nature.  We don’t need a 400 page document.  I will talk to you about it.

Mr. Jerome stated, the State of Ohio has their digital checkbook on line. 

Mr. Saponaro stated, it’s not about payroll or insurance or taxes.  It’s just about expenditures.

The Committee recommended Item #13 for approval.

14. Discussion of the First Reading of Ordinance No. 2015-04, entitled, “An emergency ordinance authorizing an agreement with MetLife as and for an employee AD&D and life insurance program.” Introduced by Mayor Rinker and Council as a Whole.

Mr. Saponaro asked, Ron would you like this passed tonight?

Mr. Wynne replied, yes, if we can pass this tonight.  It goes into effect April 1st.

The Committee recommended Item #14 for approval.

15. Discussion of the First Reading of Ordinance No. 2015-05, entitled, “An emergency ordinance establishing the Parkview Recreation Complex wages for the 2015 season.”  Introduced by Mayor Rinker and Council as a Whole.

Mr. Wynne stated, I just wanted to mention that since the last time you saw the copy of the Ordinance, we made two changes.   We changed “Parkview Pool” to “Parkview Recreation Complex” because we added a part-time seasonal classification for the individual we will be hiring to help out with The Grove.  Those changes were not in what you saw last.

The Committee recommended Item #15 for approval.

16. Discussion of the First Reading of Ordinance No. 2015-06, entitled, “An emergency ordinance creating certain positions and compensation related thereto for the Village’s 2015 Summer Camp program.” Introduced by Mayor Rinker and Council as a Whole.

The Committee recommended Item #16 for approval.

17. Discussion of the First Reading of Ordinance No. 2015-07, entitled, “An emergency ordinance to approve current replacement pages to the Mayfield Village Codified Ordinances.”  Introduced by Mayor Rinker and Council as a Whole.

The Committee recommended Item #17 for approval.

18. Discussion of the First Reading of Resolution No. 2015-05, entitled, “An emergency resolution authorizing the Mayor and President of Council to enter into a Memorandum of Understanding with the Cuyahoga Soil and Water Conservation District for providing technical assistance in implementing soil and water conservation measures.”  Introduced by Mayor Rinker and Council as a Whole.

The Committee recommended Item #18 for approval.

19. Discussion of the First Reading of Resolution No. 2015-06, entitled, “A resolution of intent to enter into an agreement with Cuyahoga County and Cuyahoga County Emergency Communications System (CECOMS) and authorizing the Mayor and President of Council to enter into an agreement with Cuyahoga County for the transfer of responsibility for emergency dispatch from Mayfield Village to the Cuyahoga County Emergency Communications System (CECOMS).” Introduced by Mayor Rinker and Council as a Whole.

Mr. Saponaro thanked the Chiefs for their memo.  For clarification, it says CECOMs is building a new facility in Broadview Heights.  Where are they located now?

Chief Edelman replied, 12th and Euclid.

Mr. Saponaro asked, we don’t know when they are breaking ground?

Chief Edelman replied, April 3rd.

Mr. Marquardt asked, what was the main differentiator in the decision?

Chief Edelman asked, between CECOMs and Chagrin Valley?  Between Mayfield Village and everywhere else?

Mr. Marquardt clarified, between CECOMs and Chagrin Valley.

Chief Edelman replied, Chagrin Valley is a COG.  There are 12 members of the COG right now. We would be the 13th and would be 1 out of 13 voices in the day-to-day operations. We have been doing things with SPAN for the past 30 years. That won’t necessarily happen if we are 1 of 13 voices, whereas, with CECOMs, we would be one of the first departments to get in on the ground level.  Part of this proposal states we would have a voice in how things are operating.  It is in their best interests to do that.  They don’t dispatch right now. They need us to show them how it is done.

Mr. Saponaro stated, that was my next question. They truly do not?

Chief Edelman replied, they have Olmsted Township.

Mr. Saponaro stated, part of what we are doing, you put the proposal together.  Have you given them an idea of what this proposal looks like?

Chief Edelman replied, we have had discussions.

Mr. Saponaro asked, do you feel like there is pushback?

Chief Edelman replied, there’s no pushback.  It’s just a matter of fine tuning some of the final dollar amounts.  What’s in that proposal is what is going to happen.   It has to be approved by the County Council.

Mr. Saponaro stated, you talked about the new dispatch operations. They will require guidance. We will provide that to them.  Is that being discounted in the price of the contract because we will be providing those services?

Chief Edelman replied, not directly, but the more SPAN departments that join in, right now Richmond Heights is very close behind us, the more SPAN departments that join in, the more say we have in the operations.

Mr. Saponaro asked your departments are going to be giving them guidance.  Is it going to be on the ground?

Chief Edelman replied, yes.

Mr. Saponaro stated, I think we need to address that somehow so it is recognized within the contract.

Chief Edelman stated, it is in the proposal.

Mr. Saponaro stated, I know. And it’s a matter of semantics. I just wanted to make sure that what we are getting is the agreed upon $168,000 instead of $200,000, because you guys are going to bring this to the table, or is it $168,000 and we are going to get that discounted? That’s what I don’t understand.

Chief Edelman stated, I am not sure I can answer this, but the $168,000 is all in.  That’s the dollar amount Mayfield Village will be charged. Correct me if I am wrong, but if the other SPAN departments also come in, that will be a discount, or no?

Chief Carcioppolo stated, $200,000 was if Mayfield Village went alone. The original quote was for $168,000 with all 4 communities of SPAN going at the same time.

Mr. Saponaro stated, oh, but now they are at $168,000 and it’s not all of the SPAN communities so we are okay.

Chief Edelman clarified, here’s how the discussion went.  We said, look, Richmond Heights is right behind us, Lyndhurst is right behind them.  Why don’t you just give us the $168,000 knowing that these other departments are coming in?  Their response was, that sounds good to me. I have no problem with that. 

Mr. Marquardt asked, everyone will be paying the $168,000?

Chief Edelman replied, no.

Chief Carcioppolo added, they are a different fee structure based on usage.

Mr. Jerome asked, how many years?

Chief Carcioppolo replied, three years.

Mr. Jerome asked, in three years they could come back and try to tell us it’s more?

Chief Edelman replied, they could. It’s unlikely. They will undoubtedly have more agencies in there in three years.

Chief Carcioppolo stated, as you can imagine, this decision for Mayfield Village to come to is a big pill to swallow so to have four communities do it simultaneously is next to impossible. Based on feedback I have received, they are kind of waiting for someone to take this first step.  While I can’t promise it’s going to happen, I believe that once this were to be passed, that will let the other communities feel more comfortable with it.

Mr. Saponaro stated, I want us to take advantage of this since we are on the ground floor and willing to do it. What I would like to see us do is try to get some renewal terms and a cap on the increase.

Mr. Marquardt asked, who owns this?  You say the rates are likely to go down as more people come in.  Who’s going to say they will?

Chief Carcioppolo replied, I don’t see our rates ever going down. I think we are in a very competitive price from the beginning. Even if you were to get more people to jump in, people’s salaries go up every year. I don’t think that’s reasonable.

Mr. Marquardt asked, who is setting the rates?

Chief Edelman replied, County Council.

Mr. Saponaro asked, is it possible to do renewals and then cap increases?

Chief Edelman replied, that has not been discussed. I don’t want to speak for them.  We are in negotiations.

Chief Carcioppolo added, this is just to let us say you are allowed to negotiate an actual deal.

Chief Edelman stated, that’s based on the proposal put together that they have verbally said okay to.

Mr. Saponaro stated, right.  But we have leverage right now. They want us. If we come in, others will follow. Our power is the greatest at this moment to get other terms, even if it is a lock-in for 15 years because of the renewals or however you can get.  5/5’s or 5/3’s.  Whatever it is, you have to be willing to negotiate and you want to lock in what that increase will be.  If it’s more than 5% or 4%, non-cumulative over the course of the contract.

Chief Edelman replied, that may be something outside the realm of what Gino and I can do.

Mr. Saponaro stated, yes, but I just want to bring it to your attention. There are some opportunities to take advantage of not only, we understand you already got the discount as if all 4 of the SPAN communities are there, but there may be a way to not allow it to increase by 12% after year 3. I will talk to Joe about that when we talk about negotiating.

Mr. Marrie stated, from my personal viewpoint, the ability for us to be in there and guide this thing from the very beginning the way we want to do it, we are calling the shots.  We went out this afternoon, the Chiefs, Diane and I, to Bedford Heights. They are going to push the button Thursday.  This is the exact system that will be over in Broadview Heights, but much smaller.  It’s Bedford, Bedford Heights and Garfield Heights.  Maple Heights is looking at it strongly. It’s very impressive.  It wasn’t running. It was a look-see type of thing.  It was a lot better looking and better run than the other ones.  My selling point is we are going in and calling the shots. We will be the kingpin.

Chief Carcioppolo stated, the other thing CECOMs has offered, and no one else at this point in time can, they answer all the cellular 911 calls.

Mr. Saponaro agreed. Here’s what I want to do.  Let’s leave the other questions for the floor of Council. In terms of the dollar amount, when we look at the cost comparison between all of them, it’s not far off. It’s actually no capital cost so the total of it is the best bang for the buck from that standpoint and obviously from technology operations and so forth. From a Finance Committee perspective, is everyone in the position to recommend approval for them to go and further negotiate this?

Mr. Marquardt stated, I don’t have a problem with it.  Like you said, they should take a little bit of a hard-nosed stand while they have the leverage.

Chief Carcioppolo added, there are things like that happening that are incorporated into that.  That other portion you were discussing is something I thought would be better negotiated with the law director.

Mr. Saponaro stated, that’s fine. I think there’s going to be more discussion on this. I have questions on other things that are not the financial pieces. We will leave it for the Council floor.  Nice job. Thank you for going through and doing everything you did.

Mr. Marrie asked, will this be left on first read?

Chief Edelman replied, we can leave it on first read, but we are looking at a time constraint.

Mr. Saponaro asked, so why are we leaving it on first read?

Mr. Wynne stated, it’s a Resolution. There is no first read.

Mr. Saponaro agreed.  It’s not a first reading.  It passes.

Chief Edelman stated, I don’t want to give the impression to the residents that we are trying to push something past them.

Mr. Saponaro stated, what we are doing is you are going out and you are negotiating. At the end of it, you may say sorry, it’s not what we bargained for and we don’t recommend signing it.  But we can’t get to that point unless you go out there and negotiate it. It will be put up for passage tonight with the caveat and understanding that, yes, there’s going to be more discussions on the floor. We have open forum.  Residents can come and discuss things and voice their concerns. I know the one resident talked about having a Town Hall meeting on it. That may be something we should do sooner than later to lay away the concerns and fears.  But as you are negotiating it, you are going to figure out a lot of this stuff. We are setting the model.  That’s going to be the greatest thing for them.  We will be basically the model of how it is going to go forward. We are providing them with guidance on how to do this on their ticket, with a huge cost savings to us.  It’s fiscally responsible. We need to get that message out.

The Committee recommended Item #19 for approval.

20. Discussion of the First Reading of Resolution No. 2015-07, entitled, “A Resolution requesting the Cuyahoga County Fiscal Officer to adjust the amended official certificate of estimated resources for 2015.”  Introduced by Mayor Rinker and Council as a Whole.

Mr. Saponaro stated, this is housekeeping. We have discussed this in the past. Ron, anything more that we need to add?

Mr. Wynne replied, no. 

The Committee recommended Item #20 for approval.

21. Discussion of the First Reading of Resolution No. 2015-08, entitled, “An emergency resolution authorizing entering into a contract with the Ohio Department of Transportation for its 2015-2016 Salt Participation Program.” Introduced by Mayor Rinker and Council as a Whole.

Mr. Saponaro stated, this is much like what we did last year to get a savings.  We had to buy it two times in the year.

The Committee recommended Item #21 for approval.

22. Discussion of the First Reading of Resolution No. 2015-09, entitled, “An emergency resolution authorizing the Mayor and President of Council to enter into a consulting agreement with Chapman and Chapman for Employee Benefits Consulting Services.”  Introduced by Mayor Rinker and Council as a Whole.

The Committee recommended Item #22 for approval.

23. Discussion of the Third Reading of Ordinance No. 2015-03, entitled, “An ordinance appropriating funds and expenditures of Mayfield Village, Ohio for the period from January 1, 2015 and ending December 31, 2015 and declaring an emergency.” Introduced by Mayor Rinker and Council as a Whole.

Mr. Saponaro stated, again this is the budget. This will be our third reading. We need to get this approved tonight.  I am going to suggest that questions we may have on the budget be discussed on the floor of Council unless we need to discuss them now.  We can certainly take the time to do that.  From a Finance standpoint, is everyone in agreement to recommend approval? 

The Committee agreed to recommend approval.

The Committee recommended Item #23 for approval.

ANY OTHER MATTERS

Mr. Saponaro asked, any other matters?  There were no further matters.

There being no further business to discuss, the meeting adjourned at 8:00 p.m.

Respectfully submitted,

Mary E. Betsa, Clerk of Council