Finance: September 21st 2015

MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, September 21, 2015 – 7:30 p.m.
Main Conference Room – Mayfield Village Civic Center

The Finance Committee meeting was held on Monday, September 21, 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: Mrs. Mills, Mr. Jerome, Mr. Wynne, Chief Edelman, Mr. Thomas, Chief Carcioppolo, Mr. Marrelli, Mr. Metzung, Mr. Cappello, Ms. Wolgamuth, and Mrs. Betsa

1. Discussion of a motion to authorize the sale by Mayfield Village of the following vehicles:

1990   Mazda Pick-Up Truck VIN: JMZUF1130L0884780  - $680.00
2001   Ford Dump Truck VIN:  1FDXF46S61ED33347  - $1,186.27
2004   Chevy Silverado Pick-Up VIN: 1GCHK24U84E141199 - $1,500.00
2005   GMC 2500 Sierra Pick-Up VIN: 1GTHK24U95E280145 - $2,397.87
2005   GMC 2500 Sierra Pick-Up VIN:   1GTHK24U25E281332 - $3,600.00
2004   Ford Crown Victoria VIN:   2FAHP71W54X167297 - $707.00
2011   Ford Crown Victoria VIN:   2FABP7BV4BX135689 - $3,064.00
2011   Ford Crown Victoria VIN: 2FABP7BV2BX135691 - $2,999.00

Mr. Saponaro asked, any discussion? There was none.

The Committee recommended Item #1 for approval.

2. Discussion of a motion to authorize expenditure in the amount of $296,596 to Motorola Solutions for purchase of MCC 7500 IP Dispatch Console.

Mr. Saponaro stated, we have looked at this and discussed it. Is there anything new to add to this?

Chief Edelman replied, nothing new.

Mr. Saponaro asked, does anyone have any questions or comments?

Mr. Jerome asked, what is the timeframe on this?

Chief Edelman replied, I don’t have a timeframe yet. I won’t know until this has been approved by Council.

Mr. Jerome asked, so it could go in this year?

Chief Edelman replied, yes.

The Committee recommended Item #2 for approval.

3. Discussion of a motion to authorize expenditure in the amount of $5,275 to Michael’s Painting for painting of Reserve Hall.

Mr. Saponaro stated, we will need to coordinate this since we are holding the November Caucus in there.

Ms. Wolgamuth replied, we can hold the November 2nd Caucus in Reserve Hall. John has spoken to the painter. It will be completed beforehand. We will not need to change the date.

The Committee recommended Item #3 for approval.

4. Discussion of a motion to authorize entering into an agreement with Burges & Niple and to authorize expenditure in the amount of $5,750 to Burges & Niple for Beechers Brook Bluff Erosion Evaluation.

Mr. Saponaro asked, any questions or new information?

Mr. Metzung stated, the Supreme Court has finally made a ruling. That makes this even more important to have this information to take to the Sewer District.

Mr. Jerome asked, do we know what kind of money we are set to get from what we paid into it? Do we have any of those figures yet?

Mr. Metzung replied, no. I think we had about $10,000-11,000. This project, back when we first started, it has gotten worse since then, but we are looking at $250,000-300,000.

Mr. Saponaro stated, the stormwater management fees appear to be minimum fees of residential, $9.00 or $27.00 depending on how they are calculated.

Mr. Cappello stated, there are three tiers of residential based on square footage in your home.

Mr. Jerome stated, also pervious surfaces.

Mr. Saponaro asked, Tom, there’s a unit of measure called an ERU?

Mr. Cappello replied, Equivalent Residential Unit.

Mr. Saponaro asked, and it’s 2600 square feet?

Mr. Cappello replied, what they do is take, let’s say, Progressive Insurance, they calculate how many square feet of impervious area parking lots divided by whatever that ratio is and round it. That’s Equivalent Residential Units times the rate. That’s how they figure it.

The Committee recommended Item #4 for approval.

5. Discussion of a motion to authorize expenditure in an amount not to exceed $8,000 to Klyn Nurseries for the purchase of trees for the Fall planting at various sites throughout the Village.

Mr. Saponaro referred to the handout provided by Mr. Metzung. Item #6 which is $825 is not part of the $8,372 nor is the very last item for $1,290. Neither of those can be planted at this time so they are not included in the price. That’s why the price was adjusted and amended to be $8,372. Is everyone okay with that?

Mr. Marquardt stated, it says $8,000.

Mr. Saponaro stated, I just got the information from Doug. We need to amend the amount on the Council agenda.

The Committee recommended Item #5, amending the amount of $8,372 for approval.

6. Discussion of a motion to authorize expenditure in the amount of $5,886 to Digest Media for printing of Fall/Winter Community Rec Brochure.

Mr. Saponaro asked, any questions on this? There were none.

The Committee recommended Item #6 for approval.

7. Discussion of a motion to approve the opt-out subsidy for the 2015-2016 Senior Snow Removal Program – up to 50% of the paid invoice, not to exceed $75.

Mr. Saponaro stated, this has been pretty consistent. They provide the paid invoice and we reimburse them $75? Is it down the line or in-person, how does it generally work?

Mr. Wynne replied, in person.

Mr. Thomas reported, right now we have 117 opt in and 1 opt out.

The Committee recommended Item #7 for approval.

8. Discussion of a motion to authorize acceptance of bid and to authorize expenditure in an amount not to exceed $18,000 to MJO Lawn for snowplowing services with regard to the Senior Snow Removal Program for the 2015-2016 winter season. (Two sections, approximately 80 drives, at $225 per driveway - $50 additional for circular).

The Committee recommended Item #8 for approval.

9. Discussion of a motion to authorize acceptance of bid and to authorize expenditure in an amount not to exceed $18,400 to Ameriscape for snowplowing services with regard to the Senior Snow Removal Program for the 2015-2016 winter season. (Two sections, approximately 80 drives, at $230 per driveway - $50 additional for circular).

The Committee recommended Item #9 for approval.

10. Discussion of a motion to authorize acceptance of bid and to authorize expenditure in an amount not to exceed $18,400 to Arnold Landscaping for snowplowing services with regard to the Senior Snow Removal Program for the 2015-2016 winter season. (Two sections, approximately 80 drives, at $230 per driveway - $50 additional for circular).

The Committee recommended Item #10 for approval.

11. Discussion of a motion to authorize acceptance of bid and to authorize expenditure in an amount not to exceed $16,800 to Summerbreeze for snowplowing services with regard to the Senior Snow Removal Program for the 2015-2016 winter season. (Two sections, approximately 80 drives, at $210 per driveway - $50 additional for circular).

The Committee recommended Item #11 for approval.

12. Discussion of a motion to extend the TIF for Progressive for property tax year 2015.

The Committee recommended Item #12 for approval.

13. Discussion of a motion to extend the TIF for Governor’s Village for property tax year 2015.

The Committee recommended Item #13 for approval..

14. Discussion of a motion to extend the TIF for Skoda Minotti properties for property tax year 2015.

The Committee recommended Item #14 for approval.

15. Discussion of a motion to extend the TIF for Heinen’s for property tax year 2015.

The Committee recommended Item #15 for approval.

16. Discussion of a motion to extend the TIF for 700 Beta Drive for property tax year 2015.

The Committee recommended Item #16 for approval.

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

Mr. Saponaro asked, are there any questions? There were none.

The Committee recommended Item #17 for approval.

18. Discussion of First Reading of Ordinance No. 2015-23, entitled, “An Ordinance creating new Chapter 176 of the Codified Ordinances of Mayfield Village, Ohio regarding municipal income tax.” Introduced by Mayor Rinker and Council as a Whole.

Mr. Saponaro asked, do we need to pass this tonight?

Mr. Wynne replied, no, this will stay on First Read. This has to be passed and in RITA’s hands by November 15th. If it goes through three reads, we will have to have a Special Meeting or we can just have the second reading at the October Council meeting and then suspend it at that point and pass it.

Mr. Saponaro asked, why don’t we want to pass it right now?

Mr. Wynne replied, because we are not done with it. In your packets this weekend you will have a copy of the attachment.

The Committee recommended Item #18 for approval.

19. Discussion of Resolution No. 2015-11, entitled, “A Resolution authorizing the Mayor to seek financial assistance from the State Issue 1 Infrastructure Bond Program for funding of Phase II of the sewer project on Thornapple, Robley and a portion of Wilson Mills Road and declaring an emergency.” Introduced by Mayor Rinker and Council as a Whole.

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

The Committee recommended Item #19 for approval.

20. Discussion of Resolution No. 2015-12, entitled, “An emergency Resolution authorizing the disposition of certain municipal property by the Fire Department of the Village of Mayfield.” Introduced by Mayor Rinker and Council as a Whole.

The Committee recommended Item #20 for approval.

21. Discussion of Resolution No. 2015-13, entitled, “A Resolution accepting the amounts and rates as determined by the Budget Commission and authorizing the necessary tax levies and certifying them to the County Fiscal Officer.” Introduced by Mayor Rinker and Council as a Whole.

Mr. Saponaro asked, any questions on this? There were none.

The Committee recommended Item #21 for approval.

ANY OTHER MATTERS

Mr. Saponaro asked, anything else?

Mr. Wynne provided more information on the income tax legislation. Several years ago, the State, in an effort to try and make taxation within the State of Ohio amongst municipalities more business-friendly, started tackling it from all kinds of different angles. One of the main things they were trying to tackle was to take over income tax collections. They were going to take collections away from RITA and others. That got pushed back. It’s still out there. It has not gone away yet, but it’s not part of this. What they did do is make reporting requirements and taxable amount of taxable items throughout the State’s municipalities consistent throughout so that it is uniform. What this new tax law is going to be is everything from a reporting standpoint, what’s taxable and non-taxable, is uniform throughout the State and all municipalities. The only variable is the tax rate. This is House Bill 5.

Some of the major changes in the law impacting us will be very very minimal. Some of the major changes were to take the net operating loss carryforward to 5 years. Many municipalities through the State had 0. Now everyone has 5. Also, there’s the occasional entrance rule which basically says if an employer who is out of the municipality did work for the municipality for more than 12 days, you had to pay income tax to that municipality. That has now been changed to 20. Those are the two things that impact us the most. The third item is we are going to have to appoint by the end of the year a Board of Tax Review. Council will appoint 2 of the 3 people, the Mayor is going to appoint 1. The one the Mayor appoints could be an employee but it can’t be me. The two that Council appoint do not have to be residents but what they can’t be is anyone who has been involved with the municipality or served on any committees for the past 5 years.

Mr. Saponaro asked, so completely separate and independent?

Mr. Marrie asked, can you serve on the review board at all?

Mr. Wynne replied, no. I will be there for part of the process but I will not be on the board.

Mr. Jerome asked, are these paid positions?

Mr. Wynne replied, no.

Mr. Saponaro asked, but they don’t have to be residents?

Mr. Wynne replied, right.

Mr. Saponaro asked, how many total will be on it, just the 3?

Mr. Wynne replied, yes. They will have 2-year terms. During their term, they cannot be on any committees of the Village and they can’t do any work for the Village, for example, contractors. The purpose of the board is once an individual files a tax return, if RITA disagrees with how they reported certain taxable items, RITA makes a ruling, that individual disagrees with RITA’s ruling, and it would then come to the local board of tax review to review the case to make a final determination.

Mr. Marquardt asked, how many do you anticipate we would come up with?

Mr. Wynne replied, I would not anticipate many at all. In the 6 years I have been here, the only items I have dealt with that have come up that have been disputes have been penalty and interest calculations and requests for waiving which I could do based on the circumstances. With the new law and clarifications in the new law, it takes away a lot of the ambiguity and makes it much more clearer.

Mr. Saponaro stated, excellent, thank you. Anything else? Anything coming down the pike that we need to know about?   There were no further matters.

There being no further business to discuss, the meeting adjourned at 7:50 p.m.

Respectfully submitted,

Mary E. Betsa, Clerk of Council