Finance Caucus - April 4th 2016

MINUTES OF THE FINANCE CAUCUS COMMITTEE
Main Conference Room – Mayfield Village Civic Center
Monday, April 4, 2016 - 7:00 p.m.

The Finance Committee met on Monday, April 4, 2016 in the Main Conference Room of the Mayfield Village Civic Center.  Chairman Saponaro called the meeting to order at 7:40 p.m. 

ROLL CALL: 

Present: Mr. Marquardt, Dr. Parker, and Mr. Saponaro

Also Present: Mr. Williams, Mrs. Mills, Mr. Jerome, Mr. Marrie, Mayor Bodnar, Mr. Wynne, Mr. Metzung, Chief Carcioppolo, Lieutenant Jablonski, Mr. Cappello, Mr. Thomas, Mr. Esborn, Ms. Wolgamuth, and Mrs. Betsa

ADMINISTRATION:

  • Planning
    • Wireless Environment Resolution of Support

Mr. Esborn stated, last month at CEDC, the Committee recommended a grant for Wireless Environment for 5 years 30%.  I conveyed that to the company with a letter.  In your packets you saw that letter signed by me and their CEO. We said in the letter that the next step would be that we would go to Council at their next voting meeting with a resolution of support.  That’s what we are doing this month. The reason we are doing that is we don’t want to rush the agreement. We want to draft the agreement, have Council review it, have the company review it and then be ready to sign it.  We want to do the resolution of support as a conceptual approval while we tighten up the agreement.

BUILDING DEPARTMENT:

  • Civic Center Parking Lot Lighting

Chairman Saponaro stated, we talked about this in terms of safety.  What’s the cost of it?  Less than $10,000?

Mr. Marrelli replied, $8,700.

Chairman Saponaro asked, is that budgeted?

Mr. Wynne replied, we had $20,000 in the budget.

Mr. Marrelli replied, for this year. It was $25,000 last year.

COUNCIL PRESIDENT:

  • ODOT Project (271 overpass bridge/Wilson Mills)

Chairman Saponaro stated, obviously if you are looking into it, the cost would be something we would need to understand and if we would be responsible for anything and how that works.

ENGINEER:

  • Audible Pedestrian Signal Design at SOM Center Road and Aintree/Wilson Mills
    (TMS Engineers, Inc. - $12,490.00)

Chairman Saponaro stated, you talked about this.

Mr. Cappello stated, this would be for these two intersections.

Chairman Saponaro asked, does anyone have any questions from a Finance standpoint?  There was none.

FINANCE DEPARTMENT:

  • Sale of 6827 Thornapple

Mr. Wynne reported, we sold the house.  We had the house appraised a little over a year ago for $140,000.  We put a new driveway in and a new window in the front.  The realtor recommended listing it for $164,900.  We asked her to list it at $169,900.  Last week we got an offer for $162,000 cash.  We discussed it with the Mayor.  We discussed it with Council President.  We agreed to accept that offer because we don’t have to worry about any financing.   They are going to take the inspection we did.  They are not asking for another inspection.  There are no appraisal issues.  This is a nice clean deal.  It’s set to close on April 20th.

Mr. Jerome asked, didn’t we originally offer it to four or five people?

Mr. Wynne replied, we gave them the opportunity to put in an offer.  Two of them did.  We declined both of them.  One was heavily financed and offered $140,000.  The other one was a cash deal but their offer was $145,000.  We declined both of those.  And that’s only after we declined both of those did we list it.

Mr. Jerome stated, it wasn’t on very long.

LAW DIRECTOR:

  • Application to rezone property – 730 SOM Center Road

Chairman Saponaro stated everyone should have gotten in their packets March 18th there’s a letter that came from Ken Fisher who is an attorney for an application to rezone the property. He represents Georgian Medical Arts and the property that they are talking about is in front of that and they want to rezone it from a single family housing district to office laboratory zoning district and it is their hope that they said that they can get it completed in time to submit the question to the Village electorate for November election and it has to be certified to the Board of Elections by August 10th.  If everyone hasn’t read about this that’s what this is.  I think Joe has more information on it.

Mr. Marrelli stated, it’s a blank lot and they are just taking a shot.  Usually when we rezone like what we did with Deacon’s they put a whole plan together and say here’s why we are rezoning.  I think these guys are just and correct me if I’m wrong Ted, they are not showing a building on this property.  They are just saying –

Chairman Saponaro stated, they did.

Mr. Marrie stated, but that was for a nursing home at the time.  It wasn’t for what this is.

Chairman Saponaro stated, I think it still is.

Mayor Bodnar stated, it still is, yes.

Mr. Marrie asked, why is it listed as office and lab?

Mr. Marrelli replied, because they are going to come for a conditional use permit after that.

Chairman Saponaro stated, it has to be rezoned to a proper zoning.

Mr. Marrelli stated, and then you have to ask for a conditional.

Mr. Esborn stated, Council will refer it now to Planning and Zoning and I trust that at the first meeting where Planning and Zoning discusses it, the applicant will bring their plans.

Mr. Marrelli stated, or they will just say we don’t know what we want to do but we don’t want to build a house there.

Mr. Jerome asked, is this the first level of after residential it goes to office?

Mr. Marrelli replied, no, it goes from residential to commercial.  There’s no stages.

Mr. Jerome stated, no, I’m saying obviously it’s not industrial. 

Mr.  Marrelli stated, there’s not really industrial. There’s office lab and then there’s retail.

Mr. Marrie stated, retail and warehousing.

Mr. Jerome stated, not that they are jumping where they want to put some factories or something.

Dr. Parker stated, one thing to consider is the impact on the surrounding property owners.

Mr. Marrelli stated, if it goes to the voters, I think if they don’t have something to show the people that are voting for it, they are not going to have a chance.

Mr. Marrie agreed.  It will die.

  • Legislation Authorizing Natureworks Grant Application

Mr. Esborn reported, I have been working with Bill Thomas on expanding the recreational facilities at Parkview.  The plan is to add two tennis courts, two sand volleyball and two bocce courts.  We are applying for a Natureworks Grant.  We are going to see how the budget comes in.  Jim McKnight is doing drawings.  Jim and Tom are going to work out a budget. This is the required resolution authorizing the application.  The portion of the legislation, section 3, that talks about making sure there are funds to do the project, I am planning on doing what we do with the DOPWIC applications which is just a letter from the Finance Director saying that the funds are available to do the project if we get the grant.  Since I don’t have a budget yet, I can’t do that yet.

PARKS & RECREATION:

  • Resurface Interior and Exterior of Pool Slide (Slide Renu - $31,482.00)

Mr. Thomas stated, we talked about it.  I will do more research on the slide situation.

Chairman Saponaro stated, it looks like the interior/exterior pool slide at $31,000, $55,000 was budgeted for that.

Mr. Wynne stated, $36,000.

Mr. Thomas stated, but the actual cost is $31,000.

Chairman Saponaro stated, so it’s below budget.

Mr. Jerome asked, do we have any idea what a slide costs?  If we said, I want to put a brand new one in?

Mr. Thomas replied, $100,000 in 1999.  Maybe it was $200,000.

Mr. Jerome asked, how much do you think we will get out of this slide?  Another 15 years?

Mr. Thomas replied, easily.  If we continue to do our maintenance plan, it should last longer.

Mr. Jerome stated, so we do this maintenance plan.  I am kind of thinking long-term obviously.

Mr. Thomas replied, we are too.

Mr. Jerome stated, it lasted 16

Chairman Saponaro clarified, 18.

Mr. Jerome stated, 18.  At some point obviously useful life, so it’s something to think about.

  • Parkview Pool Filtration/Heater Room (MELD Architects - $22,200.00)

Mr. Thomas stated, this is all part of that project.

Chairman Saponaro asked, it’s part of that $200,000 budget?

Mr. Thomas replied, yes.

  • Diving Boards for Parkview Pool (O.P. Aquatics – 2 diving boards - $10,500.00)

Mr. Thomas stated this is the two boards.

Chairman Saponaro asked, and that’s part of the $156,000 budget?

Mr. Thomas replied, you got it.

Dr. Parker asked, Bill, expand again on, obviously the boiler is 18 years old?

Mr. Thomas replied the boiler is actually 4 years old.

Dr. Parker asked, and how long will that last?

Mr. Thomas replied, it could have lasted longer if it had been in a separate building.  Double the years.

Dr. Parker asked, how much did it cost to replace it?

Mr. Thomas asked, how much was the boiler?

Mr. Jerome asked, $20,000?

Mr. Thomas stated, I was thinking $60,000.  I don’t know.  I can come back to you with that answer.

Dr. Parker asked, and it lasted about 14 years?

Mr. Thomas replied, yes.

Mr. Marrelli stated, you have to get the calcium chloride away from the boiler.  It’s killing the heat exchangers.

Dr. Parker stated, it would be nice to know what the cost of maintaining that building would be.

Mr. Thomas asked, the heater building or the filtration one or both?

Dr. Parker stated, the boiler building.

Chairman Saponaro asked, are you talking about the new one?

Mr. Thomas replied, the new one, yes.

Dr. Parker asked, what maintenance long term will be to replace certain things?

Mr. Thomas replied, we are just putting the boilers in that building.  That’s the only thing that’s going in that building.

Mr. Jerome asked, the filters are staying in the existing building?

Mr. Thomas replied, correct.

Mr. Jerome asked, the boiler is going in the other building?

Mr. Thomas replied, yes. That’s what we are trying to avoid.  We are doubling the life of the boilers by moving it into the new boiler building.

Mr. Marrelli stated, where there’s clean air.

Mr. Thomas replied, correct.  And the air that it’s getting now is all the chemicals.

Dr. Parker stated, I don’t want to sound unknowledgeable but is there a way to do filtration or air exchange or something to get different kind of air in there?

Mr. Marrelli replied, no. 

Mr. Thomas replied, no.  We need to move the boilers out of the room.

Mr. Marrelli stated, or you need to move all of the chemicals somewhere else.  Something’s got to go somewhere.

Mr. Thomas replied, the chemicals will be in the filtration room except the liquid chlorine.  It is behind the filtration room. There’s other chemicals that we have that corrode as you saw that picture that we supplied.

Mr. Marrie stated, that’s what you are trying to avoid.

Mr. Thomas stated, absolutely.

Mr. Jerome asked, so what’s the layout?  There’s an in and an out to the pool.  There’s a gas line and there’s electrical.

Mr. Marrelli replied, yes. There’s heat exchangers.  They are pulling in combustion air.  They are sucking in the chemicals.

Mr. Jerome asked, so there’s a boiler and then there’s heat exchangers separately from this boiler?

Mr. Marrelli replied, yes.  But the boiler, when it fires, it’s pulling in polluted –

Mr. Jerome stated, I understand that. I am just trying to figure out why there’s so much involved with just moving a boiler into a separate building.

Mr. Marrelli replied, they’re big and you have to-

Mr. Thomas stated, we have to cut them off, cut them, because we can’t take them through the garage the way they are now.  We have a garage door but we are going to have to cut them. The company will cut them and remove them.

Mr. Marrie stated, but the advantage is you are going to get double life.

Mr. Thomas replied, on the boilers and the filtration system will be fine too.

Dr. Parker stated, but you are also spending $200,000 plus on an additional structure that I don’t know whether it’s guaranteed.  Is someone guaranteeing us we will get twice as many years out of our boiler?

Mr. Thomas replied, I have been told that.

Dr. Parker asked, so someone will guarantee us that?

Mr. Thomas replied, I don’t know if I can do that.

Mr. Marrelli replied, well we are not replacing it every four years.  We want to do that for $60,000.

Dr. Parker stated, we are not replacing it every four years.

Mr. Marrelli replied, if you keep this up you will.

Dr. Parker asked, I thought you said the last one lasted 14 years.

Mr. Marrelli replied, and then we put new heat exchangers in and they’re gone already.

Mr. Thomas stated, after four years.

Mr. Cappello stated, the $200,000 includes all this.

Chairman Saponaro stated, it includes everything.

Mr. Cappello stated, it includes everything.

Mr. Wynne stated, everything.  The $200,000 is the building and the architectural fees.

Dr. Parker asked, really?  So it does include all that.

Mr. Wynne stated, no, it does not include all of that.

Mr. Thomas stated, the sand filters are $105,000.

Dr. Parker stated, I am just saying oftentimes there’s more than one way to, I am not claiming to be an expert at this, but to me it seems like if the air is a problem, I would think there would be some way to create an air exchange system or something that might be a whole lot less expensive than building a whole new structure but maybe not.  I just don’t know, if it’s a matter of engineering, it’s a matter of bringing in people that can do that, but even if you can do that and increase the life expectancy instead of it being reduced by 100% or half as long, maybe you can reduce it by 20%, that may be a much better investment long term rather than $200,000 plus on a building so I just don’t know if that avenue has been looked at.

Mr. Thomas stated, we are going to have that initial cost and then after that-

Mr. Jerome asked, why can’t these heaters be placed outside?  Just for safety?

Mr. Marrelli replied, I don’t know.

Mr. Jerome stated, just from me talking to a couple pool contractors-

Mr. Thomas stated, it would have to be enclosed.

Mr. Jerome stated, and this is residential I understand, the pools they do, they very rarely put equipment inside of buildings anymore.

Mr. Marrelli stated, residential pool heaters are outside.

Mr. Jerome asked, but for commercial, they are always inside?

Mr. Marrelli stated, it is way too big for that.  I haven’t gotten involved in that much except for talking to Parker about it, not this Parker, other Parker.

Chairman Saponaro stated, my other question though on the estimate is that MELD Architects is saying that it’s going to cost between $215,000 and $250,000 to do this.  So we have a budget of $200,000 and $22,000 is already being used for architectural stuff so I guess my point is is that we are going to have to go out to bid and we are going to have to go out to bid but they are already giving us an estimate that it is above the budgeted amount.

Mr. Wynne clarified, their estimate was all inclusive including the filters and everything.

Chairman Saponaro asked, what do you mean? So what am I looking at on the budget to see how it pans out?

Mr. Wynne replied, I don’t have a copy of the capital budget in front of me.  We have $200,000 budgeted for the building and then $100,000 and some budgeted for the filters.  

Mr. Thomas stated, the sand filters.  It was $300,000 some.  That includes Ed Parker’s $22,000.

Chairman Saponaro asked, so you are saying $300,000, we are below that, gotcha, okay, because it includes everything. So they are at $215,000-250,000.  We are far below that.

Mr. Wynne replied, we went high. In addition to that, didn’t he say to add in his quote, didn’t he also mention add $30,000 if it was a prevailing wage job? 

Mr. Marrelli replied, yes.

Mr. Wynne continued, and I don’t think it is going to be a prevailing wage job.  We budgeted it as if it were just to be conservative.

Mr. Jerome asked, how big is this building 20 x 20?

Mr. Marrelli asked, do you remember the size offhand?

Mr. Thomas replied, smaller than that I think.

Mr. Jerome stated, so $200,000 just to extend an existing building.

Mr. Marrelli replied, three walls and a roof basically.

Mr. Jerome stated, for $200,000.  It seems like a lot of money to Steve’s point.

Mr. Marrelli stated, the bathrooms cost us $325,000.

Mr. Jerome stated, that was nothing.  That was in the middle of nothing.

Mr. Marrelli stated, that’s true.

Ms. Wolgamuth asked, Bill, didn’t that include moving everything?

Mr. Thomas replied, yes.

Ms. Wolgamuth stated, it’s not just for the building.

Mr. Jerome stated, but that’s under the $100,000, I thought. Or is that just for the filter?

Ms. Wolgamuth stated, no, the $127,000 is just to buy the new filters.  The $200,000 is to build the building and move everything.

Mr. Thomas stated, and move everything.  Move the boiler.

Ms. Wolgamuth stated, yes, disconnect what’s there now, reconnect and I think they have to go underground to have the pipes go to the new building.

Mr. Thomas stated, so it’s a lot of electrical, plumbing, O.P. Aquatics and the architect’s fee.

Mr. Jerome stated, I don’t understand why we need $22,000 on an architect to do this.

Ms. Wolgamuth stated, well, it’s also construction management so he would be overseeing the whole project too.

Mr. Jerome stated, I just don’t feel that it’s necessary.

Mr. Thomas stated, we got two bids. 

Mr. Jerome asked, have we looked into doing a design build?

Dr. Parker stated, I am still not convinced we need this building.  What about moving the chemicals, what about doing something a little differently.  Is there another solution to the problem?  Has it been explored?

Mr. Thomas replied, we have looked at with O.P. Aquatics who is a leader in the field and this is their strong recommendation.  I trust them.  I have been with them for 25-30 years.

Dr. Parker stated, I don’t know, maybe, it just seems like a lot of money.

Mr. Jerome asked, have we looked into doing a design build for something like this?

Mr. Marrelli replied, we would leave that up to the architect.

Mr. Jerome stated, I don’t think we need to spend $20,000 for a 20 x 20 addition if it is already existing. We are just duplicating what is there and adding on.

Mr. Thomas replied, but he is overseeing all of the other specialty, the whole project he is overseeing.  It’s not just the building.

Mr. Jerome stated, no, I understand.  That’s why, when you look at it, there’s not so much to oversee.

Ms. Wolgamuth stated, it’s also on the drawings. The drawings and bid specs to go out to bid.

Mr. Jerome asked, yes, but do we need $8,000 worth of drawings for three walls?

Mr. Cappello asked, well, aren’t there mechanical, electrical and mechanical engineers involved in all of this?  This is not just some drawing.

Mr. Jerome stated, I understand, but –

Mr. Cappello continued, you have about probably two or three other things.

Mr. Marrelli stated, probably three.

Mr. Cappello stated, and again, the other thing, Steve, when you have a job that is kind of this small, your fees are higher.  It’s kind of like proportionate.  If you have a larger job, there’s a little bit more.  It’s like a sliding percentage scale.

Mr. Jerome stated, I understand.

Mr. Cappello continued, there’s a lot of work that has to go into doing these plans and specs and things like that, so, I mean I’m not trying, I don’t know.

Mr. Jerome stated, I understand from an engineering standpoint of actual equipment, but I just don’t see whether it’s $8,000 worth of drawings.

Mr. Marrelli stated, a lot of times they have to go to an engineer too and say check this out for me.

Mr. Cappello stated, there’s a structural engineer involved, an architect involved, mechanical, electrical, you have plumbing.  I don’t know if they have to get anything from the pool people.

Mr. Thomas replied, O.P. Aquatics, yes.

Mr. Cappello stated, so it might be-

Mr. Marrelli stated, there is a lot of time involved even though it doesn’t look like much.  It doesn’t look like there’s much there talking to all these people.

Chairman Saponaro stated, and from my understanding from what Doug has said and what you had said is that in-house we are certainly not comfortable at all.  We can’t do this.  It’s too technical.

Mr. Thomas stated, absolutely.

Chairman Saponaro continued, and we are not going to spend that kind of money from what my understanding was to do it in-house because we can’t.

Mr. Thomas stated, correct.  We looked at that.  We determined it was not an option.

Chairman Saponaro asked, all right, anything else on that?

There was no further discussion.

POLICE DEPARTMENT:

  • Replace personally owned equipment in fitness room (Health & Fitness Equipment Centers - $7,838.25)

Chairman Saponaro stated, we can talk about this on the floor of Council.  The fitness equipment unless I am reading the budget wrong is over budget.  The budget for that amount is $7,500.

Mr. Wynne replied, that’s correct.

Chairman Saponaro stated, so we are over budget a little bit on that one.

  • Six X26P CEW’s, six holsters, two cases of cartridges, one case of batteries XPPM and data download kit (Taser International - $9,210.45)

Chairman Saponaro stated, if you look at these, the body cameras and the MARCs, we have a total budget of about $267,000 so spending this money would take that budget down to about $38,000 for whatever else is needed for the remainder of the year.  Does that sound about right?

Mr. Wynne replied, yes, we had $200,000 budgeted for the MARCs radios and then we have a line item for $15,000 for Tasers, ballistics vests, so the Taser cost will come out of that $15,000.

  • 2016 SPAN dues (SPAN - $14,000.00)

Chairman Saponaro stated, $17.000 was budgeted for this so we are under on this one.

  • Body-worn cameras (Northcoast Two-Way Radio, Inc. - $19,834.00)

Mr. Jerome asked, are these budgeted for?

Mr. Wynne replied, they were budgeted at $25,000.

  • MARCS portable radios (Motorola Solutions, Inc. – not to exceed $200,000)

Lieutenant Jablonski stated, the original bid was for $242,000.  With promo pricing and trade-in, we got that down to about $181,708 so that’s going to be a considerable discount.  I just wanted to make you aware though that the $181,708 does not include programming and shipping so that’s why originally Rich had put in for the $242,000.  I know that was over budget but the $181,000 brings us in under budget but with programming, I don’t know how much programming is going to cost, so I can’t tell you whether or not it will go back over $200,000 or not.  I think it will stay under $200,000 but there’s a little bit of an unknown there right now.

Dr. Parker asked, when will we know that?

Lieutenant Jablonski replied, I would ask the Chief. He will have a better answer for you.

Mr. Jerome asked, they don’t give you a price for the programming?

Lieutenant Jablonski replied, no.  B&C will come in or another company will come in and they will program the radios with everything we need.

Chairman Saponaro stated, so when you are asking for a certain amount, it’s not to exceed?

Lieutenant Jablonski replied, yes, not to exceed.  I just wanted you to be aware of what it was.  I don’t think it’s going to go over $200,000.  I think it’s only going to be probably a few more thousand dollars.  Just that that slight unknown is there.  I just wanted to make everyone aware of that.

Chairman Saponaro asked, so you are comfortable with the not to exceed $200,000?

Lieutenant Jablonski replied, yes.

ANY OTHER MATTERS

Chairman Saponaro asked, are there any other matters? 

There were none.

There being no further business, the meeting adjourned at 8:00 p.m.  The next Finance Committee meeting is scheduled for Monday, April 18, 2016 at 7:30 p.m. in the Main Conference Room at the Mayfield Village Civic Center.