Finance - February 22nd 2016
MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, February 22, 2016 – 7:00 p.m.
Main Conference Room – Mayfield Village Civic Center
The Finance Committee meeting was held on Monday, February 22, 2016 in the Main Conference Room at the Mayfield Village Civic Center. Chairman Saponaro called the meeting to order at 7:00 p.m.
Present: Chairman Saponaro, Mr. Marquardt, Dr. Parker (7:35 p.m.), and Mr. Williams
Also Present: Mayor Bodnar, Mrs. Mills, Mr. Jerome, Mr. Wynne, Chief Edelman, Mr. Thomas, Chief Carcioppolo, Mr. Metzung, Mr. Esborn, Mr. Cappello, Ms. Wolgamuth, and Mrs. Betsa
1. Discussion of Resolution No. 2016-07, entitled “A Resolution in support of offering an economic development incentive program grant to Magnus Equipment, LLC and declaring an emergency.” Introduced by Mayor Bodnar and Council as a Whole.
Chairman Saponaro stated, CEDC held a meeting before this one. Ted explained that he would like to have this passed. We are not certain if they will be entering into a Lease Agreement. Are there any questions? There were none.
The Committee recommended Item #1 for approval.
2. Discussion of a motion to authorize expenditure in the amount of $37,590 to Community Partnership on Aging for renewal of Senior Services for 2016.
Chairman Saponaro stated, we received information on this. Are there any questions? There were none.
The Committee recommended Item #2 for approval.
3. Discussion of a motion to authorize sale of property located at 6827 Thornapple Drive, Mayfield Village, Ohio, through the retention of a realtor.
Mr. Wynne stated, this is the old house that Jim Deacon rented. We were holding off on putting it on the market until the sewer conversion project was done and we got the easement filed. That has all happened. We are ready to go to market on it. I met with the realtor already. She has gone over to take a look at the house and came back with a suggested sale price of $164,900. We had it appraised about a year ago at $140,000 and then we put a new driveway in it as part of the sewer project and replaced the bay window at the front of the house. We had about five individuals who expressed an interest in the property going back as far as October. I made phone calls to all of them. Some still have an interest. We are in the process of getting a home inspection done. Once that is done we will give them first dibs before we list it on the market.
Chairman Saponaro asked, did we have anything in packets on this?
Mr. Wynne replied, no.
Chairman Saponaro asked, does anyone have any questions on this? There were none.
The Committee recommended Item #3 for approval.
4. Discussion of a motion to authorize the retention of a real estate agent from Howard Hanna and authorizing an expenditure in an amount equal to and for the customary realtor’s commission and closing costs in connection with the sale of the real property owned by the Village and located at 6827 Thornapple Drive in Mayfield Village, Ohio.
The Committee recommended Item #4 for approval.
5. Discussion of a motion to authorize expenditure in the amount of $90,000 to Bureau of Workers’ Compensation for yearly assessment.
The Committee recommended Item #5 for approval.
6. Discussion of a motion to authorize expenditure in the amount of $16,254.38 to Northcoast Two-Way Radio, Inc. for new car changeovers and equipment.
The Committee recommended Item #6 for approval.
7. Discussion of a motion to authorize entering into 2016 Maintenance Contract with Comfort Control Systems for HVAC maintenance at the police station and to authorize expenditure in the amount of $1989 for same.
The Committee recommended Item #7 for approval.
8. Discussion of a motion to authorize expenditure in the amount of $6,700 to SA Communale for 5 year internal investigation – Fire Department, 5 year internal investigation – Police Department and annual sprinkler inspections at Fire Department, Civic Center, Service Department and Police Department.
The Committee recommended Item #8 for approval.
9. Discussion of a motion to authorize expenditure in the amount of $7,199.88 to North American Rescue for Rescue Task Force Personal Protective Equipment.
Chief Carcioppolo stated, I entered us as a last ditch effort to try to get another grant for this. I would like this approved. I would like to purchase three sets of the gear now so we can start training. If we get the grant which will be announced in May, there will be a zero dollar buy-in for us. We will get the rest of the gear. If not, we will use the rest of the money to purchase the rest.
Mr. Jerome stated, Highland Heights got a grant for theirs.
Chief Carcioppolo stated, we entered into an AFT Grant last year regionally but we were denied. They are in on the grant we are in on. I could be wrong, but I am pretty sure they are included in the new grant we put in for. They just released the applications on February 16th. They are due by the end of March. They will be awarded May 19th. If you don’t mind approving it so we can get some of it now.
The Committee recommended Item #9 for approval.
10. Discussion of a motion to authorize acceptance of bid in the amount of $1,295 from Patrick Palmieri for 2003 Ford Van, VIN No. 1FTNS24273HA93063.
The Committee recommended Item #10 for approval.
11. Discussion of a motion to authorize acceptance of the bid from Chagrin Valley Paving, LLC in the amount of $873,249.20 for 2016 Road Program.
Chairman Saponaro stated, we went out to bid for this at $900,000. It came in under bid. Is there anything to add?
Mr. Cappello replied, I checked the references. They all checked out.
Chairman Saponaro asked, you are comfortable?
Mr. Cappello replied, I checked the references.
Mr. Jerome asked, have they ever done anything with us before?
Mr. Metzung stated, they did the intersection.
Mr. Jerome asked, at SOM and Wilson Mills?
Mr. Cappello replied, yes, as part of ODOT.
Chairman Saponaro asked, any other questions? There were none.
The Committee recommended Item #11 for approval.
12. Discussion of a motion to authorize expenditure in an amount not to exceed $10,000 to Bright Idea Shops for picnic tables for new shelter.
Mr. Thomas stated, I sent a memo out on this on Friday. I am sorry I did not bring it up at Caucus. I wasn’t here. Basically, I wanted to deal with Bright Ideas. We have dealt with them since 2000. They specialize in picnic tables. The Allen Ventures priced them at $7500 after I sent the memo out. This company, along with David Williams and Associates would not assemble them. I want them assembled so Doug’s staff does not have to worry about it. They also would not match in color or anything else. In order to get this price, we would have to get a purchase order in before March 1st. I would like to put it in for not to exceed $10,000 in case we need another ADA table. These tables would be going underneath the new picnic shelter.
Chairman Saponaro asked, any questions? There were none.
The Committee recommended Item #12 for approval.
13. Discussion of a motion to acknowledge receipt of financial reports for January 2016 and to approve of same as submitted.
The Committee recommended Item #13 for approval.
14. Discussion of the First Reading of Ordinance No. 2016-04, entitled, “An Emergency Ordinance amending Exhibit “1” to Village Ordinance Number 2014-11 as to the position of the IT Coordinator.” Introduced by Mayor Bodnar and Council as a Whole.
Chairman Saponaro stated, this is for the position of IT Coordinator.
Ms. Wolgamuth stated, this is to adjust the salary.
The Committee recommended Item #14 for approval.
15. Discussion of the First Reading of Ordinance No. 2016-03, entitled, “An Emergency Ordinance appropriating funds for current expenses and expenditures for Mayfield Village, Ohio for the period from January 1, 2016 and ending December 31, 2016 and declaring an emergency.” Introduced by Mayor Bodnar and Council as a Whole.
Chairman Saponaro stated, I met with all the Department Heads on Wednesday so I could field any questions Council might have. We want to use this time as an opportunity to discuss any questions, issues or concerns anyone has. We have some information for questions that came to me.
One of the questions was, why is there real estate revenues for all of the different departments? That is because that’s part of the allocation of the real estate taxes that gets allocated to Fire, Police and different services.
Mr. Wynne added, it comes that way to us through the County. They tell us how to allocate it.
Chairman Saponaro stated, because these are based on levies that are in place for a number of years.
Mr. Wynne stated, the only one that is discretionary and a decision is made in the Fall as to how it is going to be handled in the following year is the amount that goes into the Debt Retirement Fund. The goal was to make sure there’s enough money in that Fund to make the principal and interest payments. We have kept a percentage of the property taxes that go into that Fund the same over the years. I can see that dropping off significantly now that the debt is so much further down. We will get to the point where a majority of the debts will be funded by TIFs. I won’t need any further support from the General Fund.
Chairman Saponaro stated, I would like to open the floor for questions.
Mr. Marquardt stated, I reviewed the accounts in general. There are some that are notably less. I just wondered what the purpose of that was.
Chairman Saponaro asked, are you talking about revenues or expenditures?
Mr. Wynne replied, revenues. The first one is Street Construction Maintenance Repair Fund. The majority of the revenue that comes into that Fund is transferred to the General Fund. The 2015 Road Program included resurfacing and waterline replacements. The Road Project in 2016 is much smaller. It’s strictly an asphalt paving. It’s much less costly so there’s less money being transferred into there. The Community Room Fund in 2015, we transferred enough money to cover the construction. Now it’s just for general operations.
Chairman Saponaro stated and on that the donation of $75,000, is that what we are going to get back from the School?
Mr. Wynne replied, yes. The Civic Center Fund, $104,000 last year, we put enough money into that Fund to cover replacement of the boiler when that time comes so that money is there. That’s just a one shot deal. That money will sit there until the boiler needs to be replaced. The Sanitary Sewer Relief Fund, the $822,000 we transferred in there last year was the money we got from the Ohio Public Works Commission, the grant and loan on the sewer project. We fully provided for the sewer project as if we were paying for it 100% ourselves. At the 11th hour, we got told that the other projects were not happening until we got the financing we asked for. Because we fully provided for that project, we are taking the money that we did not use and putting it back into the Sanitary Sewer Relief Fund to pay for the next sewer conversion project. The bulk of that money came in in 2015. This is the money left to come in in 2016 as the project winds down.
The General Bond Retirement Fund had revenues of $2 million last year. This year it is $1.5 million. Part of revenue in the Fund is when we sell Notes. That’s revenue to that Fund. We paid those Notes off in full in 2015.
The Parkview Ballfields Construction Fund, the $450,000 we transferred in last year was for the restrooms and the picnic shelter. The $175,000 this year is going to go down. $100,000 of that is for the tennis courts which were on the budgets you received. We are going to pull that off the budget. Ted is going to apply for a grant through Natureworks to pay for the tennis courts.
The Sanitary Sewer Conversion Fund, $822,000 is what came in from grant and loan money from the Ohio Public Works Commission and then the $81,000 that is supposed to come in this year. We final paid the contractor. Tommy, are you all set on yours too so I can do the final submission?
Mr. Cappello replied, I believe so yes.
The Parkview Pool Improvement Fund, $150,000, on the Capital Budget this year is a separate building which is being looked at to house the heaters. Right now the heaters and filters are in the same building.
Mr. Thomas added, this saves the life of the heater because of the chemicals. We have to get it away from the chemicals.
Mr. Wynne stated, this was suggested by the two Service Department employees who maintain the pool. We put it on there. It still needs further investigation for this to happen.
Mr. Wynne stated, the legislation you received in your packets have numbers on it. But this is just First Read. Some numbers will change based upon our meetings last week.
Chairman Saponaro stated, some of the general items I discussed with the Department Heads, you will notice that the telephone expense line item was pretty significant in 2015 and then it went back down to $23,000. This is regarding the way we were being billed. We were not being billed for a number of years even though we were encumbering the funds and putting them away. The County finally billed us. That’s why you will see in three or four of the different line items for telephone it jumps up. It is paying for a three year period.
I asked about professional services with all of the Department Heads and also talked about the miscellaneous contractual services, miscellaneous supplies and equipment. There’s a breakdown we can receive as Council any time to see exactly what those expenditures were. We get them on a monthly basis anyway now so it’s now a function of taking the budget, putting it in the front of our packet and the breakdown will be behind it. One of the things I need Department Heads to do when they are putting in a purchase order is to make sure that we know if it is in budget or not. Just put budget. We need to know it is a budgeted item so it is on the actual purchase order itself. That way there is no question and we don’t have to determine if it is part of it or not. It makes it easier for everyone.
Someone asked about the School Resource Officer. That is part of the Police Department. Stuart Galicz is also the technical officer. All of his hours, salary, overtime, everything is under that line item.
Mr. Wynne stated, there’s probably three or four months out of the year where he is doing normal patrol officer responsibilities with school not being in session.
Mr. Jerome asked, what is the overtime for?
Chief Edelman replied, if he does police duties in addition to the School Resource Officer duties. He has to go to Court. He has to help out with some of the technical issues at the station. He is my IT guy. He does other duties besides being the School Resource Officer.
Mr. Wynne added, he’s also one of the guys who goes out and delivers the warrants which is generally done in the evenings most of the time.
Mr. Jerome asked, so the three months he is going general patrol, is that in addition to this?
Chairman Saponaro stated, he is doing general patrol throughout the whole year.
Chief Edelman replied, when school is in session, he works during the day after school. When school is not in session, he is in a patrol car.
Mr. Jerome asked, is that under this salary?
Chief Edelman replied, yes.
Mr. Jerome asked, he’s at the High School, but we are paying for that?
Chief Edelman replied, yes.
Mr. Jerome asked, who pays for the Middle School?
Chief Edelman replied, Mayfield Heights. It’s more of a jurisdictional issue. The School’s in Mayfield Village. It’s our responsibility. Monetarily it doesn’t seem fair but when you look at it from an enforcement standpoint, I have to remind the schools this is a police officer. He’s not a school employee. I tell him what to do. The Principal doesn’t.
Mr. Jerome stated, in today’s day having someone on site there is critical.
Chairman Saponaro stated, I asked the Fire Chief about the overtime. This is due to shift filling deficiencies. Someone brought up the 29 hour rule due to the Affordable Care Act. It actually hurts. It does not help for part-timers. They can work somewhere else.
Chief Edelman replied, that’s our issue too. Mr. Metzung, stated, our’s too.
Chief Carcioppolo stated, until the 29 hour rule was enacted, people were working more hours. Once we started to enforce that, it forced some of them to seek employment elsewhere so they were not available to work as many hours here anymore which caused a decrease.
Mr. Jerome asked, we can’t find people to fill those positions?
Chief Carcioppolo replied, I have been working on it. You hire them. You train them. You put them through the process. One of the guys I just hired in December is being hired full-time somewhere else. He will be taking a leave.
Chief Edelman stated, there’s no incentive for them to stay.
Chairman Saponaro asked Chief Edelman to talk about the process.
Chief Edelman stated, it’s very lengthy. We wind up doing background checks for the Fire Department as well as for our own applicants. The application phase includes the interviews, the background checks which can take up to months. I have two detectives doing background checks in addition to their caseload. Then they are scheduling polygraphs, psychological evaluations, medical examinations.
Chairman Saponaro stated, and you said they get to a certain point sometimes, like the psychological and they don’t pass.
Chief Edelman replied, often what we will do is the psychological evaluation as the last point. It’s an expensive process. We don’t want to spend that money if we are going to wash them out. Then the psychological examination washes them out. We have to start all over again. It’s a difficult process.
Mr. Jerome asked, that’s for part-time?
Chief Edelman replied, that’s for part and full-time.
Chief Carcioppolo stated, our process has been questioned. It’s upsetting because you have wasted all this time and money and you were banking on them getting hired.
Chairman Saponaro asked, what is the cost for that?
Chief Edelman asked, per applicant?
Chairman Saponaro stated, yes. There’s not a line item for that. It’s just broken down into the various categories.
Chief Edelman stated, it is.
Mr. Wynne stated, most of it would be professional services.
Chief Edelman stated, there’s billable manhours if you include the Detectives costs in there too.
Chairman Saponaro stated, I had asked about payment to Other Governments. That’s MARCS, the Tech Rescue Team and the CERT team.
Mr. Jerome stated, we know we have the 29 hours, we know we have to fill shifts on the Fire and Police Department. There’s nothing we can do if we add another full-time person? Obviously there’s a cost to that, but at what point are you paying in overtime you can fill it? Is hiring just one guy going to offset the shifts?
Chief Carcioppolo replied, we don’t have a swing guy. We can get one guy and have one shift with four guys and two shifts with three guys. That would help but that would not solve all the problems. Most of our part-time staff is working full-time elsewhere. Most of the people we would want to hire either have a full-time job somewhere else or once we hire them receive an appointment to that job somewhere else. It’s a very competitive field in Northeast Ohio.
Mr. Wynne stated, I started here in 2009. At that time we were running shifts with two full-timers and two part-timers.
Chief Carcioppolo stated, in 2013 we increased to two full-timers and one part-timer per shift. In 2014, the 29 hour issue came up.
Mr. Wynne stated, we have increased our full-time compliment by 50%. We went from six to nine. Also, the past two years we have had two unusual personnel situations that required us to pay a lot of overtime because those folks were off.
Chief Carcioppolo stated, if one person is injured or out, it’s taxing to the department to fill that.
Chairman Saponaro stated, we can discuss this further on the floor. For EMS, professional services, that is LifeForce, our EMS third-party billing company.
Mr. Jerome stated, that’s bringing money in to us.
Chairman Saponaro stated, part of their fee is a percentage of what they get. I have looked at professional services throughout this and have discussed them with everyone. We can go into any detail you want. I have talked to Ron about the fact that for professional services, there’s a question mark on there and we want to know what those are and those are things that are going to get broken down and reviewed. One of the Council people has come to me about looking at spending limits and maybe putting different requirements on it so that Council is comfortable with what is being spent. These are all in discussion. Miscellaneous services and charges in Finance are bank fees. Senior Services programming, I will pass out to all Council when we are done, a breakdown from Bill. He gives us an idea of what he needs to spend on the slide, what they need to do every year for maintenance. He has a maintenance program. He has broken down revenues and expenses and the remaining balances from 2013 through 2015. In terms of Senior programming, that I don’t have a breakdown of, are we running the same type of deficit?
Mr. Thomas replied, I believe there is a deficit in that program.
Mr. Wynne stated, I would think not.
Chairman Saponaro asked, where are the revenues at on the detail?
Mr. Wynne stated, there’s a line item strictly for that. It could also go under excursions if there is a trip to a casino or a ski trip.
Chairman Saponaro stated, there is an item for programs, Human Services Department.
Mr. Wynne stated, that includes the Community Partnership on Aging which has no revenue source coming in. When we have the anniversary party or the holiday party, there are no revenues coming for those. That shows up on that line item. The actual programs we run are self-supporting, but there’s a lot of expenses in that department where’s there’s no revenue coming in to offset the costs.
Mr. Jerome asked, this is all Mayfield Village residents?
Mr. Thomas replied, we have some seniors from the school district, some from the Village.
Mr. Jerome asked, are they charged accordingly?
Mr. Thomas replied, it’s the same cost. If we don’t have the non-residents, we can’t offer the program.
Mr. Metzung stated, senior programs are pretty fluid. They will go to different communities for different things.
Chairman Saponaro asked Mr. Williams and Mrs. Mills if they had any questions. There were none.
The Committee recommended Item #15 for approval.
ANY OTHER MATTERS
Chairman Saponaro stated, we will be convening into Executive Session. Everyone is free to leave. You will not need to return.
- Motion to enter into Executive Session to consider the appointment, employment or compensation of a public employee or official.
Chairman Saponaro, seconded by Mr. Williams, made a motion to enter into Executive Session to consider the appointment, employment or compensation of a public employee or official.
Council adjourned into Executive Session at 7:35 p.m.
Council reconvened at 8:00 p.m.
Chairman Saponaro asked, are there any other matters? There were none. There being no further matters, the meeting adjourned at 8:00 p.m.
Mary E. Betsa, Clerk of Council