Finance: May 18th 2015
MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, May 18, 2015 – 7:30 p.m.
Main Conference Room – Mayfield Village Civic Center
The Finance Committee meeting was held on Monday, May 18, 2015 in the Main Conference Room at the Mayfield Village Civic Center. Mr. Saponaro called the meeting to order at 7:30 p.m.
Present: Mr. Saponaro, Mr. Marrie, and Mr. Marquardt
Also Present: Mr. Wynne, Chief Edelman, Mr. Marrelli, Mr. Thomas, Chief Carcioppolo, Mr. Metzung, Mr. DiNardo, Ms. Wolgamuth, and Mrs. Betsa
1: Discussion of a motion to authorize expenditure in the amount of $5,040 to Anselmo’s Inc. for installation of swale at 800 Village Trail.
Mr. Saponaro stated, we talked about this at Caucus. This was regarding the Drainage and Infrastructure project that is going to affect at least the Consolo property and also the Quagliata property. Any questions? There were none.
The Committee recommended Item #1 for approval.
2: Discussion of a motion to authorize expenditure in the amount of $107.50 to Collection Auto Group representing additional expenditure for Service Department trucks. (Council approved $79,553.75 through the State Co-Operative Purchasing Program – 4-21-15)
Mr. Saponaro stated, this was discussed at Caucus. There was a calculation error. Are there any questions? There were none.
The Committee recommended Item #2 for approval.
3: Discussion of a motion to authorize expenditure in the amount of $11,387 to Marshall Power Equipment for the purchase of a 72” Exmark riding mower. (State contract pricing).
Mr. Marrie asked, are you keeping the old one?
Mr. Metzung replied, yes. The old one broke. It will be repaired and put back in service at areas in the Village that you don’t necessarily want to run a new mower on.
Mr. Marquardt asked, is this a budgeted item?
Mr. Wynne replied, yes. We budgeted $15,000.
The Committee recommended Item #3 for approval.
4: Discussion of a motion to acknowledge receipt of financial reports for April, 2015 and to approve of same as submitted.
Mr. Saponaro asked, any questions for Ron? Your reports are pretty detailed. Are there any questions? There were none.
The Committee recommended Item #4 for approval.
5: Discussion of the First Reading of Ordinance No. 2015-08, entitled, “An Emergency Ordinance amending Chapter 137 relative to the Department of Public Service.” Introduced by Mayor Rinker and Council as a Whole.
6: Discussion of the First Reading of Ordinance No. 2015-09, entitled, “An Emergency Ordinance creating new Chapter 138 relative to the Building Department.” Introduced by Mayor Rinker and Council as a Whole.
Mr. Marquardt stated, these ordinances will replace the old ordinance which combines Building and Service. This separates the departments.
Mr. Saponaro asked, any questions? There were none. Does this need to be on three readings?
Mr. Marquardt replied, these can go on three readings.
The Committee recommended Items #5 and #6 for approval.
7: Discussion of the First Reading of Ordinance No. 2015-10, entitled, “An Emergency Ordinance authorizing and directing the Mayor and President of Council to enter into a Lease Agreement with Andrew M. Culliton for the purpose of leasing the real estate located at 6434 Highland Road, Mayfield Village, Ohio 44143.” Introduced by Mayor Rinker and Council as a Whole.
Mr. Saponaro asked, are there any questions? Everyone should have received a copy of the Lease in their packets. It’s pretty standard.
Mr. Wynne stated, if we can, we need to get this passed this evening.
The Committee recommended Item #7 for approval.
ANY OTHER MATTERS
2015 Road Program Update
Ms. Wolgamuth stated, as Council requested, we sent letters to the residents on the streets that are going to be affected explaining how their yards might be affected if we did the widening. It was difficult to do the letter because as Tom Cappello explained to me, every house is different depending on the slope of their yard. He kept saying up to 16 feet could be affected. That seemed like a lot to all of us. But as he explained it to me, you add 2 feet of asphalt, you should add a feet of berm, then you start cutting the swale and depending on the slope of the yard, you may end up with a cliff at that point, so then you have to level it out. In those situations, it could go up to 16 feet.
Mr. Marrie asked, on each side?
Ms. Wolgamuth replied, on each side. We started knocking on doors today. We hit a lot of Beech Hill. I am keeping a spreadsheet of the responses. So far, I only have 14 responses. It’s probably too early to say. We are going to try to do more tomorrow and Wednesday and see if we can get a lot of it done this week.
Mr. Saponaro asked, what are people’s thoughts thus far?
Ms. Wolgamuth replied, so far I have 9 no’s, 3 yes’s and 2 that said either way I don’t really care. The people who say no agree that the street is narrow but they don’t think it’s worth the impact to their yard. Other people who think it’s narrow typically don’t have much in that front section of their yard so they are okay with it.
Mr. Marquardt stated, I would have expected them to think that it would add to the value of their home.
Ms. Wolgamuth replied, no. Mostly they have this impression that we are taking their property. We keep saying, no we are not taking it. Most of it is right of way anyway but people don’t have a concept of right of way and how far that goes.
Mr. Saponaro asked, have you talked to Patsy on this?
Ms. Wolgamuth replied, no.
Mr. Saponaro stated, she has some concerns and questions regarding the letter. She will be addressing it.
Mr. Marrie asked, Ron, if this went ahead, it would be approximately $500,000 which is not in the budget, correct?
Mr. Wynne replied, correct.
Mr. Marrie continued, if they went ahead with this, could you borrow the money from the reserve and then put $500,000 in next year’s budget to pay it back to we don’t take it out of reserve? Just hypothetical.
Mr. Wynne replied, if Council wants to approve the road program with that $500,000 in it, they would just approve it and amend the budget to reflect that $500,000 increase in the cost of the project. As far as paying it back to the General Fund, there are no revenue sources going into the fund that pays for the road program to pay it back. It would just be a matter of reducing capital expenditures next year to compensate for that $500,000 this year.
Mr. Saponaro stated, you said you generally have $1.5 million scheduled out for the road program.
Mr. Wynne replied, between $1 and $1.5 million every year. This year it was $2.5 because of the waterlines.
Mr. Saponaro asked, because this was a larger amount this year, would we be inclined over the next years to say we are going to reduce that budget so that we are averaging it back?
Mr. Metzung stated, if we went back to redo the Hickory Hill neighborhood which was one of the first ones we did, that would be a much smaller project. It would probably be $700,000-1,000,000. Following that we will be looking to get into Worton Park which again we will want to look to waterline because of age. If you wanted to break that up, you would go to Hickory Hill and then go to Worton.
Mr. Saponaro stated, because we have a big hit this year, we can kind of move it?
Mr. Wynne replied, yes.
Mr. Saponaro asked, do you have your projects scheduled out over the next 5 years?
Mr. Metzung replied, yes, but with this one, when we went to the waterline addition, that kind of threw it off. I would have gone to Worton, but the administration has pointed out that we have to put waterlines in and I said, right, we do. We changed our pace. I would back away and go to Hickory Hill and then go back to do another $2 million project with the waterlines.
Mr. Marrie asked, would Worton be a waterline?
Mr. Metzung replied, yes. Remember we did that one section of waterline up Worton to Hemingway but we stopped at Hemingway. We have to do the rest of it, Woodlane, South Woodlane, Norman, the rest of Worton Park.
Mr. Saponaro asked, any questions?
Mr. Marquardt asked, when will we have the final results from going door to door?
Ms. Wolgamuth replied, I am hoping by the end of the week. Some people are not home. I am leaving fliers saying please call me --
Mr. Saponaro stated, do the best that you can. We could do it where we know we have reached everyone. It doesn’t mean they are going to respond to it. Let’s just get as much of a sampling as we can. We don’t need to keep going back to doors.
Ms. Wolgamuth replied, I left a notice saying we were here. Sorry we missed you. Please call if you want to offer your opinion about the widening.
Mr. Saponaro replied, that’s perfect.
6826 Meadowood Update
Mr. Wynne stated, there’s really no update from our standpoint. We are looking for an update from Council. We had to invest $40,000 to net $100,000-110,000. I am not sure what kind of timeframe you are working under that it would need to be demolished if we decide to go that route.
Mr. Saponaro asked, what is the administration’s position on it? Do you want it demolished? Do you want to use the greenspace? My understanding from our last conversation at Caucus was that it’s not an idyllic type of lot because of the easement that goes through so it’s not as if you can take that house down and put another structure up there because you have to deal with a lot of different issues with it. That was what I heard. I also heard that as greenspace, it certainly would be easier to deal with the easement issue and anything else, but it also creates a natural buffer for that area. Does that sound correct? Plus obviously we are saving money on the demolition. We are losing it on our initial investment.
Mr. Marrie stated, Joe, you mentioned in the notes that it didn’t make sense. If we fix it up for $30,000 and then sell for $110,000 at least we have someone paying taxes on it, we have someone living there, they are paying taxes. It’s not going to be the end of the world, the amount of it, but in my opinion that makes more sense. We already bought the house. Putting more into it, as long as we net $110,000-120,000, I don’t see a reason to tear it down and make it greenspace. Why? It’s way back in the corner.
Mr. Saponaro stated, the biggest concern was that for the amount of investment we are putting into it, it’s still not going to rise to the level to the market value. So now for comparable purposes when others go to sell their property, houses that are comparable in size are going to now be devalued.
Mr. Marquardt asked, are the other ones comparable in size?
Mr. Marrelli replied, yes.
Mr. Marrie stated, it doesn’t seem as big. I was just down there tonight.
Mr. Marrelli replied, you have to consider that you are using public money the impact on the public in general. To take public money and then devalue the properties in that area by low-balling a house versus creating a pocket park, I think the neighborhood is enhanced by the park versus having a house that you are selling for $120,000. I think that impacts the neighborhood. It’s like their money and you are using it to devalue their property in a sense.
Mr. Marrie asked, I thought we needed $110,000 or $120,000. We don’t make that, we net it.
Mr. Wynne stated, the appraisal we had done was for $110,000 as is. We are putting $40,000 in it by putting on a new roof, putting the lateral to connect it to the new sewer line, not charging the lot for the sewer assessment.
Mr. Marrelli stated, and you are hoping someone is going to buy it with the easement right next to it that is like a public space. I am trying to think of if I lived in that neighborhood, would I want to see administration putting the house back on the market for under value with funds that we gave you?
Mr. Saponaro stated, one of the concerns brought up was the person who lives next door and if the house comes down, creating a buffer space.
Mr. Marrelli replied, the open space would be the buffer.
Mr. Saponaro stated, a screen. If we are going to call it a pocket park, it needs to be one. We need to make it a park. Landscape it and put in a trail or bench. If you are going to do something, you have to do something that people can utilize.
Mr. Marrie stated, you are talking about throwing more money into it.
Mr. Saponaro stated, it’s a lose-lose situation. That’s how I look at it.
Mr. Marrelli stated, look at it as a public improvement project.
Mr. Marrie stated, I have a hard time looking at it that way, John. I’m sorry.
Mr. Metzung stated, what we could compare it to I would think would be Joyce Road where we had those two homes that we tore down.
Mr. Marrelli stated, on Wilson Mills.
Mr. Metzung stated, we just left it as greenspace. We ran a path through it. I don’t know that people use it as a park but it helps soften.
Mr. Saponaro stated, it looks nice. It’s an entryway. This is a little bit different. It’s at the end of it. If we are going to say hey let’s tear it down because we are going to use it as a greenspace pocket park then we have to utilize it like that. If we are not, we are not. Whatever is decided we need to make sure that we are following through on what we are doing.
Ms. Wolgamuth stated, we have weekly department head meetings. If I go back, it’s like every week we changed our minds. It was like, no we are tearing it down, no, let’s fix it up. We went back and forth. That’s when we finally said, okay, we are having this meeting with the residents, why don’t we throw it out there and see what their reaction is? That’s really all we did was throw it out as we are thinking about demo’ing this house. Our sense of the reaction was that they were all nodding like that’s probably a good idea. That’s as far as we went.
Mr. Saponaro asked, do we need to send a letter letting them know what we are contemplating?
Ms. Wolgamuth asked, just to the people on the cul de sac or the entire neighborhood?
Mr. Saponaro replied, to me it’s just the people on the cul de sac. Those are the people affected by it.
Mr. Marrelli stated, that’s only maybe 5 or 6 houses that would be impacted.
Mr. Marrie stated, but John, that belies what you said a minute ago that it’s taking the property values down.
Mr. Marrelli replied, it does.
Mr. Marrie stated, you need to take it for more than the cul de sac because the guy two houses down from the cul de sac is affected as much on property values.
Ms. Wolgamuth replied, that could be too.
Mr. Marrie stated, do one or the other.
Mr. Saponaro stated, you need to send something out to that area.
Ms. Wolgamuth stated, we will send a letter. When we get the results then we can decide what to do. Maybe it will be clear one way or another.
Mr. Saponaro stated, to be honest with you, you should do a letter with an insert with a pre-paid on the back of it with yes or no.
Mr. Marquardt agreed. That way when it comes back, whichever way it goes.
Mr. Saponaro stated, we don’t want to foist anything upon that neighborhood. We want to make sure they don’t come back and go, wait a second, heads nodding was not approval.
Mr. Marrelli stated, you have to let them know what the appraised value is. That’s a deal killer there.
Mr. Saponaro stated, John can help build the letter with you Diane.
Ms. Wolgamuth stated, we will put a deadline on the responses.
Mr. Marrie stated, it’s not an emergency to get it done.
Mr. Metzung stated, it might be if the cost would be affected.
Mr. Marquardt stated, if you give them too much time to return it, they won’t do it.
Mr. Marrie suggested, tell them you have to have it back right away.
Ms. Wolgamuth will coordinate with Mr. Marrelli.
Mr. Saponaro asked, are there any other matters?
Mr. Metzung stated, just an fyi, we got the summer salt fill bid numbers in at $80 a ton. It was $49 last year. We are obligated for 1200 tons.
Mr. Saponaro asked, why did the price double?
Mr. Metzung replied, Cargill doesn’t bid the summer fill. They are a big player in the Cleveland/Cuyahoga County area. Cargill didn’t bid last year. Morton figured they would not bid this year again for summer.
Mr. Saponaro asked, why are we obligated?
Mr. Metzung replied, because when you go in to the program, before the bids come out you have to agree to purchase a certain amount of salt up front. That’s how they bid.
Mr. Saponaro asked, how many municipalities are in this program?
Mr. Metzung replied, most of them from this area. Most communities do the State purchasing. Otherwise you are going out to bid on your own and it’s a crapshoot that goes either way. We used to go out on our own.
Mr. Marrie asked, wasn’t the $49 less than what we paid the year before?
Mr. Metzung replied, no. It’s gone up the past three years.
Mr. Saponaro asked, there’s no mechanism for us to object to the pricing or to ask for anything?
Mr. Metzung replied, the only thing you can do is get out of the program and next time go to bid on your own.
Mr. Wynne asked, this is the summer fill?
Mr. Metzung replied, yes. We are looking again to do the one for the winter which will be another 1500 tons. Cargill I suspect will bid that. Hopefully that will reduce the cost. The thought was that summer fill would be cheaper. A few years ago, this program didn’t exist. We ran out. There was all that trouble getting salt. To help, they suggested to do a program in the summer thinking it’s not when these guys are busy, so it will be cheaper. Not so much the case. The summer fill was actually $2 cheaper. It was $47 for the summer fill and $49 for the winter.
Mr. Saponaro stated, it will be interesting to see what they come back with in the winter because if both of them are around the same pricing, then they had to have a meeting.
Mr. Metzung stated, they got accused of that. They got taken to court.
Mr. Marrelli asked, does anyone question the cost increase at the State level?
Mr. Metzung stated, they took the companies to court because they felt collusion.
Mr. Marrie asked, does anyone challenge the State on the increase?
Mr. Metzung stated, they just go out to bid.
Mr. Marrelli asked, who was the low?
Mr. Metzung replied, Morton. Compass Minerals, Morton Salt, Midwest Salt, Detroit Salt, Cargill and American Rock Salt were the players this year. Cargill only bid in Districts 1 and 2.
Mr. Saponaro asked, was Morton the lowest price out of all of them?
Mr. Metzung replied, in District 12 Morton was the lowest. Compass was the only other bidder at $82.26.
Mr. Marquardt stated, that’s awfully close.
Mr. Metzung stated, across the board they are all way high. I don’t know where Compass Minerals is located at. $72 is the lowest bid I see from the other districts.
Mr. Saponaro asked, do you have any left over from last year?
Mr. Metzung replied, 300 tons.
Mr. Saponaro stated, thanks for the heads up.
Mr. Marquardt asked, are we not killing weeds on the SOM median?
Mr. Metzung replied, we are going organic. We don’t use the same tools per se. Our fertilizer guy has said he is going to go back and spray a more natural weed killer. We also have grubs.
Mr. Marquardt stated, there are a lot of dandelions.
Mr. Metzung stated, he is going out to reseed due to the grubs.
Mr. Marrie asked, what about the replacement of the trees on SOM? All the ones that died, starting at the little shopping center going north. A great majority of them are dead.
Mr. Metzung asked, the ones on the east side?
Mr. Marrie replied, yes.
Mr. Metzung replied, those will leaf out. What happens there is when the salt gets wet, it gets sprayed up in the air and the wind carries it to the trees. It creates a burn on the trees. It kills the blossoms. Those don’t blossom. Those trees will leaf out.
Mr. Marrie stated, they seem to leaf out at the very top.
Mr. Metzung replied, they will flower at the very top because the salt spray doesn’t quite get that high. You will see that the trees will leaf out. As you get in the middle of town, the closer you get to the stop light, the trees bloom much better because the speeds are lower.
Mr. Saponaro asked, any other matters? There were none.
There being no further business to discuss, the meeting adjourned at 8:00 p.m.
Mary E. Betsa, Clerk of Council