Finance - August 19th 2013

MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, August 19, 2013 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center

The Finance Committee meeting was held on Monday, August 19, 2013 in the Main Conference Room at the Mayfield Village Civic Center.  Mr. Delguyd called the meeting to order at 7:30 p.m.

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

Also Present: Mr. Wynne, Chief Edelman, Interim Chief Carcioppolo, Mr. Metzung, Mr. Dinardo, Mr. Thomas, Mr. Marrelli, Ms. Wolgamuth and Mrs. Betsa

1) Discussion of a motion to authorize expenditure in the amount of $21,145.00 to City of Mayfield Heights for money owed for Teen Adventure Camp (pass through).

Mr. Delguyd asked, is this billed, or is this what we just front them?  Mr. Thomas replied, we have that money. We pass it on to them.

The Committee recommended Item #1 for approval.

2) Discussion of a motion to authorize expenditure in an amount not to exceed $6,000 to Southeast Equipment for replacement of steering piston for large front-end loader (Straw vote approved 7/31/13).

Mr. Delguyd stated, this item was discussed in Caucus.

The Committee recommended Item #2 for approval.

3) Discussion of a motion to authorize bid from Morton Salt for sodium chloride for the 2013-2014 winter season ($29.40 a ton).

Mr. Delguyd stated the cost last year was over $34 a ton.

The Committee recommended Item #3 for approval.

4) Discussion of a motion to authorize expenditure in an amount not to exceed $10,000 to DJL Materials for crack sealing materials for various Village streets.

Mr. Delguyd stated, this was discussed.  We buy the materials and equipment.  Our guys do the work.  It is an annual expense.  Basic maintenance and repair.

The Committee recommended Item #4 for approval.

5) Discussion of a motion to authorize acceptance of bid and sale of 2007 Crown Victoria Model 2FAFP71W07X147468 in the amount of $2,275.00. (Straw vote approved 8/5/13).

Mr. Wynne stated, the Blue Book value on this in fair condition was a little under $3,000.

The Committee recommended Item #5 for approval.

6) Discussion of a motion to approve the opt-out subsidy for the 2013-2014 Senior Snow Removal Program – up to 50% of the paid invoice, not to exceed $75.00.

Mr. Delguyd stated, this is the same as last year. 

The Committee recommended Item #6 for approval.

7) Discussion of a motion to authorize acceptance of bid and to authorize expenditure in an amount not to exceed $11,250.00 to MJO Lawn for snowplowing services with regard to the Senior Snow Removal Program for the 2013-2014 winter season.  (One section, approximately 50 drives, at $225.00 per driveway).

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 $11,500.00 to Ameriscape for snowplowing services with regard to the Senior Snow Removal Program for the 2013-2014 winter season.  (One section, approximately 50 drives, at $230.00 per driveway).

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 $18,000.00 to Interlock Paving for snowplowing services with regard to the Senior Snow Removal Program for the 2013-2014 winter season.  (Two sections, approximately 100 drives, at $180.00 per driveway).

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 $21,500.00 to A&G Landscaping for snowplowing services with regard to the Senior Snow Removal Program for the 2013-2014 winter season.  (Two sections, approximately 100 drives, at $215.00 per driveway).

The Committee recommended Item #10 for approval.

11) Discussion of a motion to authorize acceptance of bid and expenditure in the amount of $1,334,271.98 to Mr. Excavator, Inc. for the Mayfield Village Greenway Trail Project.

Mr. Delguyd stated, from the notes in our packet, this is $206,000 higher. 

Mr. Marrie stated, from July of 2012, it’s $50,000.

Mr. Delguyd stated, that’s our portion.  The entire project is $250,000 higher than the July estimate?

Mr. Marrie stated, it’s $212,000 higher, right?

Mr. Wynne replied, the construction cost is about $251,000 higher than the July estimate. 

Mr. Delguyd stated, I know we are going to have some questions.  Would anyone like to start?  We are paying the 80%.  The overruns were in the cost of the boardwalks and that was to make them ambulance safe?

Mr. Marrie added, NOACA kicked in an additional $200,000.  They gave us 80% of the new cost instead of what they had said they were going to give us earlier.

Mr. Delguyd asked, the additional cost to the Village is $50,000?  Anything else that would relate to the additional costs?  The asphalt came in a little higher.

Ms. Wolgamuth replied, it was predominantly the cost of the boardwalk.

Mr. Delguyd stated, I do have a follow up question that has to do with the engineering cost, but I will save that.  I don’t necessarily have a problem.  We approved the program. It’s only $50,000 to us.

Mr. Marrie stated, and we are getting a project that’s worth quite a bit more than a million dollars.  NOACA did come up to $200,000 to help offset that.

Mr. Delguyd stated, if they would not have done it, we would not have done the project.

Mr. Marrie stated, we would have been looking at $400,000.  They came up with it. We put a lot of time and effort in this.  It has been going on for a long time.  For the additional money, we should just go with it and put this thing to bed and start it.

Mr. Delguyd asked, is our funded portion fully-funded right now?  Do we have $266,000?

Mr. Wynne replied, we have $185,000 in there as of today.

Mr. Delguyd stated, and there’s a scheduled transfer?

Mr. Wynne stated, and we have budgeted this year to transfer $175,000, so we will have $360,000.

Mr. Marrie asked, but it is fully funded?

Mr. Delguyd replied, right. Actually we are going to save less money.

Mr. Wynne stated, the $1.3 does not include the engineering costs required during the construction process which Tom has estimated to be about $75,000.    

Mr. Delguyd stated, even with that we are still fully funded.

Mr. Wynne agreed.

Mr. Delguyd stated, that was going to be my next question.  I see the Memorandum for the Greenway Trail Project at $35,700, $24,800 additional engineering fees, $10,900 in Phase I environmental assessment which there is nothing we can do about.  The $24,800 is what?  Can someone explain?  I know there were changes.

Ms. Wolgamuth clarified, you know that was from last year. We put that in because it gave so much background. We just threw that in.  There’s no additional engineering fees being looked for right now.  That was approved last September.

Mr. Delguyd stated, there was obviously an error on the part of the engineers here.

Ms. Wolgamuth asked, when they did this estimate?

Mr. Delguyd stated, yes.

Ms. Wolgamuth replied, yes. That error was in the calculation of the boardwalk. They were at $1,126,000.  Now they have revised their estimate to $1,234,000.

Mr. Marrie asked, did they not realize it?

Ms. Wolgamuth replied, we paid them everything that we contracted to pay them.  I want to say it was around $188,000.

Mr. Wynne replied, $202,000.

Mr. Delguyd stated, so for $202,000 in engineering costs so far plus we will pay another $75,000?

Ms. Wolgamuth replied, no, not to URS.

Mr. Metzung stated, there’s the design and there’s the construction.  Tom Cappello will be doing the construction.  The same contractor can’t do both. ODOT changed their rules.

On the boardwalk, Mr. Marrie asked, was it they didn’t count on vehicles going on there?

Ms. Wolgamuth replied, exactly.  When they did their original estimate, they didn’t calculate that kind of strength.  ODOT said, no, they have to be able to handle emergency vehicles.  It was an ODOT requirement.

Mr. Delguyd stated, I don’t disagree with ODOT’s decision.  I have a bigger problem with URS who is supposed to have all of this knowledge.  To me, it’s like, we are building, how long is the trail?

Ms. Wolgamuth replied, almost three miles.

Mr. Delguyd asked, they didn’t think you wanted to have emergency access such as ambulances?  It’s kind of a no-brainer. 

Mr. Metzung stated, the bridge was always set up for it, but I don’t know if they anticipated all of the boardwalks.  You can enter the trail at different sites. That’s probably why they did not anticipate it.

Ms. Wolgamuth stated, because NOACA gave us 80% of the low bid, at that point it doesn’t really have any impact.  Had they only given us 80% of the engineer’s estimate, we would be short that.

Mr. Delguyd stated, I am more concerned they made a mistake.  It’s not that it’s necessarily costing us $50,000 more.  We incorrectly estimated it to begin with and question was would we have approved it at $1.3 versus $1 million? I am not going to speak to anybody’s decisions on that. We paid $202,000 and now have no recourse to say, hey, you made a huge mistake.

Mr. Marrie stated, I can’t recall every job they bid on, but from my knowledge going back, they were pretty good normally on bids.  I don’t remember them blowing one before. Do you agree, Bill?

Mr. Marquardt replied, no, they have blown bids.

Mr. Marrie stated, all the bids they made, they were really right on. In fact, they were less.

Mr. Marquardt stated, I don’t think they were right on a lot of them.

Mr. Delguyd asked, underestimated or overestimated?

Mr. Marquardt replied, underestimated.  The original police station was underestimated.

Mr. Marrelli clarified, that was Marous.

Ms. Wolgamuth stated, if you ask Tom Cappello, he will tell you that the estimating process is very very difficult. 

Mr. Delguyd agreed. It is extremely difficult. Especially when you are dealing with groundwork.  You don’t know what you are going to run in to. 

Ms. Wolgamuth agreed. I think URS knew the boardwalks had to be that substantial.  They missed it in their calculation.  It was pretty much an error.

Mr. Delguyd asked, they are not going to come back to us with another bill for additional engineering costs?

Ms. Wolgamuth replied, no.  They know they are done.

Mr. Marrie stated, but as you said, you can’t tell some times.  Look at where they were going to put the police station.   

Mr. Delguyd asked, any other comments?

Mr. Marquardt stated, I won’t be supporting this.  I haven’t for 15 years.  Don’t expect a yes vote from me.

Mrs. Triner asked, is there an opportunity for anybody in the audience to ask a question?

Mr. Delguyd stated, I have never had that situation. Would you prefer to ask it at the Council meeting when there’s 7 representatives present, instead of 3?  It’s up to you.

Mrs. Triner replied, both times?  I don’t care.  I know that there’s a lot of thought and it has been long in the making.  I just wondered whether there are estimates going forward for costs for maintenance for insurance or lighting or police protection of the trails.  What kind of liability are we facing?  What kind of maintenance costs are we facing? 

Mr. Metzung replied, the maintenance will actually go down.  We will just need to plow it.

Ms. Wolgamuth stated, there’s no plan right now to light it. We don’t necessarily want to invite people there at night.  Once it’s dark, the trail is closed. There’s not a plan to light it at this point.

Mrs. Triner asked, is there a way to close it?

Ms. Wolgamuth replied, I think there will be signs posted.  Kind of like, the park closes at sunset.

Mr. Delguyd asked, there’s no way to enclose it?

Ms. Wolgamuth replied, yes.

Mr. Marrie stated, it will be no different than the trail at Metro.

With regard to insurance, Mr. Wynne stated it will not affect it.

Chief Edelman replied with regard to police presence, it will just be part of our regular patrol.

Mr. Metzung stated, I would think that it actually should get better.  It will be more open and paved. 

Mr. Delguyd asked, is there a beaten down trail there right now? 

Mr. Metzung replied, yes, there is a trail between Wiley Park and Parkview Pool.

Mr. Delguyd asked, is it paved?

Mr. Marrie replied, no.

Mr. Metzung replied, we built that with leftover shale from one of our sewer jobs.

Mr. Delguyd stated, I think we are going to recommend approval with further discussion.  Do we foresee any other issues? 

Ms. Wolgamuth stated, all has been accounted for.

Mr. Delguyd stated, the contractor is a good contractor. They have done work with us in the past and have been in business for a lot of years.

The Committee recommended Item #11 for approval.

12) Discussion of a motion to acknowledge receipt of financial reports for July, 2013 and to approve of same as submitted.

Mr. Delguyd asked, in the last paragraph, when you say we have $14,000,000 as of July 31, 2013, and I read this 45% of our expenses, I am not expecting this $14,000,00 to increase, we are actually going to eat at that a little bit?  Mr. Wynne replied, yes, at the end of the year we are probably going to be looking at $2,000,000-3,000,000 in transfers to the Bond Retirement Fund and Greenway Corridor Fund and debt payments.

Mr. Delguyd does that include any of the budget we have been talking about in the past few months?

Mr. Wynne replied, no, it’s the transfers we have budgeted for the year.  We should have the General Fund at a level of $2-3 million above what we budgeted.

Mr. Delguyd asked, that’s after all of the transfers?

Mr. Wynne replied, correct.

Mr. Delguyd asked, and there’s going to be an additional $2-3 million?

Mr. Wynne stated, yes. At the end of the year, our discussion will be how we are going to handle that excess. The $2-3 million also includes the $900,000 we are talking about in the budgeting process and $300,000 additional for the community room and sanitary sewer.

Mr. Wynne continued, our tax receipts for the month of August are at least a couple hundred thousand dollars above where they were last year.

Mr. Marquardt asked, can you track on a per business basis?

Mr. Wynne replied, yes. We get reports from RITA every month. 

Mr. Marquardt asked, can you tell what is driving it up?

Mr. Wynne replied, the largest part in the past couple years are withholding taxes, most being the net income taxes for the corporations.

Mr. Delguyd asked, so the corporations are actually paying taxes.

Mr. Wynne replied yes. The business’ profits have been up sizably in the past couple years.

The Committee recommended Item #12 for approval.

ANY OTHER MATTERS

Mr. Delguyd asked, any other matters? 

Mr. Marrie reported, the pavilion restroom building had to be moved. We had to shift it 30 feet.  We are trying to get a foundation in the ground. We found water and concrete. We slid the building over.  The soil is suitable there.  Unfortunately, we have two days of excavating and extending the driveway and a couple of other odds and ends that is going to run around $10,000. 

Mr. Delguyd asked, what’s the total on that?

Mr. Marrelli replied, $260-270,000 for the building.  Progressive is going to be doing the rest of it, the pavers and pavilion.  Basically what it is is the cost of the excavating, the cost of re-excavating, backfilling the hole.  It also reimburses our contingency money for the future.  I will get a memo for the next Caucus meeting. 

Mr. Delguyd asked, there is no way they would have known about that?

Mr. Marrelli replied, we thought about that. After the fact you think, well we could have done soil borings and if we had, we would have moved the building and still paid to extend the driveway and utilities.  It really didn’t matter.

Mr. Delguyd asked, what does soil bearing cost?

Mr. Marrelli replied, about $3,500.  It’s kind of like the only thing we would have saved is maybe one day of guys digging, planning things and backfilling it which might have been maybe $1,500.  Any way you look at it, you are moving the building around and extending things.  It’s still going to cost more.

Mr. Delguyd asked, any further matters?  There were none.

There being no further business, the meeting adjourned at 7:55 p.m.

Respectfully submitted,

Mary E. Betsa, Clerk of Council