Finance - February 19th 2013
MINUTES OF THE FINANCE COMMITTEE MEETING
Tuesday, February 19, 2013 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center
The Finance Committee meeting was held on Tuesday, February 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.
Present: Mr. Delguyd, Mr. Marrie and Mr. Marquardt
Also Present: Chief Edelman, Mr. Metzung, Mr. Marrelli, Mr. Wynne, Mr. Thomas, Acting Chief Girbino, and Mrs. Betsa
1. Motion to authorize an expenditure in the amount of $16,935.00 to Frost Building Maintenance for masonry repairs to Civic Center Tower.
Mr. Marrie asked, when they put this on, wouldn’t they be responsible for all of this work? Mr. Marrelli replied, no. Mr. Marrie asked, why not? Mr. Marrelli replied, because that was existing. Mr. Marrie asked, they put this on top of that? Mr. Marrelli replied, yes.
Mr. Marrie stated, by the looks of it, it looks like this has been going on for a while. Mr. Marrelli agreed. The steel is pretty rusty.
Mr. Marrie asked, you only have one quote? Mr. Marrelli replied, no one else does that kind of work. They are the only ones you can get a cupola from around here.
The Committee recommended Item #1 for approval.
2. Motion to authorize an expenditure in the amount of $5,643.00 to TAC Management Co. for replacement of MDT for PD unit #4640.
Chief Edelman referred to the memo he prepared and had put in packets for Council. I tried to answer all the questions everyone had. Are there any further questions? Mr. Marrie stated, thank you for the memo. I do have one small question. Last time we talked, someone asked, why didn’t we get a quote from somebody else? Chief Edelman replied, because TAC is the vendor that handles our network.
Mr. Marrie asked, do they have a lock on the system or is it just a matter of they take care of everything else and it fits? Chief Edelman replied, it’s both. They handle well over 90% of the agencies in the State of Ohio.
Mr. Marquardt asked, are they on State bid? Chief Edelman replied, yes.
The Committee recommended Item #2 for approval.
3. Motion to authorize an expenditure in the amount of $5,000.00 to City of Mayfield Heights for annual fee for Hillcrest Mobile Air Unit and Tech Rescue Team.
The Committee recommended Item #3 for approval.
4. Motion to authorize an expenditure in the amount of $7,000.00 to OneCommunity for annual fiber ring maintenance fee.
The Committee recommended Item #4 for approval.
5. Motion to authorize an expenditure in the amount of $96,415.03 to Bureau of Workers’ Compensation for yearly assessment.
Mr. Delguyd asked, is this half the year, or full year? Mr. Wynne replied, full year. Last year, it was $91,831.00. This is mainly an increase in rate and experience in the pool.
Mr. Marrie asked, but it’s about a hundred grand lower than 2009? Mr. Wynne replied, yes, in 2008 and 2009 it was well over $200,000.
The Committee recommended Item #5 for approval.
6. Motion to go out to bid for sandblasting and painting of Parkview Pool.
Mr. Thomas replied, we are almost done finalizing the packet that will go out to the bidders.
Mr. Thomas continued, part of that project is to tear out the existing surface under the play area where the water cascades down for kids for safety purposes. That’s not part of the sandblasting. The Service Department is going to tear all that out to save money on that. That’s not part of the bid. I wanted to let you guys know we are going to do that.
The Committee recommended Item #6 for approval.
7. Motion to authorize the Mayor and Council President to execute the Memorandum of Understanding between the Village and the International Association of Firefighters, Local 2619 regarding Interim Chief compensation.
Mr. Marrie asked, is that just taking them and putting them at the Chief’s pay? Mr. Wynne stated, this is what we discussed at Executive Session. It’s a weekly stipend of $350.00.
The Committee recommended Item #7 for approval.
8. Motion to acknowledge receipt of financial reports for January 2013 and to approve of same as submitted.
Mr. Delguyd asked, does anyone have any questions on this report? There were none.
The Committee recommended Item #8 for approval.
9. First Reading of Ordinance No. 2013-02, entitled, “An emergency ordinance to supplement the Codified Ordinances of Mayfield Village, Ohio by enacting new Sections 331.43 and 331.44 prohibiting the use of wireless handsets to text message while driving.” Introduced by Mayor Rinker and Council as a Whole.
Mr. Delguyd asked, does this just get us to the State law? Mr. Marquardt explained, it’s so that you can cite and fine them in Mayfield Village. It’s the same wording. It went through Ordinance Review.
Mr. Marrie asked, the other cities and villages, did they have the same “under 18” and “over 18” breakdown? Mr. Marrelli replied, yes.
The Committee recommended Item #9 for approval.
10. First Reading of Ordinance No. 2013-03, entitled, “An ordinance appropriating funds for current expenses and expenditures of Mayfield Village, Ohio for the period from January 1, 2013 and ending December 31, 2013 and declaring an emergency.” Introduced by Mayor Rinker and Council as a Whole.
Mr. Marrie asked, will this go three readings? Mr. Wynne replied, yes. It’s just on here in title only so we can get the three readings in by the end of March when it has to be passed.
The Committee recommended Item #10 for approval.
11. Resolution No. 2013-05, entitled, “An emergency resolution re-establishing terms, conditions and compensation for the services of the Prosecutor of Mayfield Village, Ohio.” Introduced by Mayor Rinker and Council as a Whole.
The Committee recommended Item #11 for approval.
ANY OTHER MATTERS
Mr. Delguyd asked if there were any other matters.
Mr. Metzung reported that he asked Ron to increase the road budget for this year’s projects. After walking the area, we saw a lot more repairs that we are going to need to do. The initial estimates are about $40,000 over what was originally budgeted. It is budgeted for $1.1 million and will be increased $75,000.
Mr. Delguyd asked, the next Finance Caucus is scheduled for March 4th, do we want to come prepared with budget questions then? The Committee agreed, as long as there is nothing on the Caucus.
Mr. Delguyd asked, what is on the Caucus so far? Mrs. Betsa replied, I have large file for March already. I don’t know the extent of the discussions. The Committee discussed possibly coming in earlier for Caucus. That would conflict with Safety and Service. The Committee decided that as there is time at this Committee meeting, initial discussions could take place now.
Mr. Marrie asked, municipal income tax is $2 million lower. Is that being ultra-conservative? Mr. Wynne replied, yes. I am not comfortable yet to know that there is a set trend there. In 2011, it was $14.5, it was $14.9 last year, so it seems to be pretty safe. It’s only been two years since the tax increase, so I am just being conservative.
Mr. Marrie asked, is EMS income for the same reason? Mr. Wynne replied, no, we renegotiated the contract with Gates Mills. We are not billing at the same level we had billed in the past. This new contract with Gates Mills has a floor and a ceiling. It’s anywhere from $100-150,000 less than what we have received in the past.
Mr. Marrie asked, the Firemen’s Pension Fund expense shows for 14 months, why? Mr. Wynne replied, police is like that too. The new Pension Reform that the State put in place last year had to deal with some of the budget issues with pension plans. The way the plans used to work up until this year, you always paid the employer a portion of the contributions three months in arrears. In March of this year, we would have paid October, November and December of last year. To increase cash flow into the plans, they are now going to do it monthly so we have to catch up for the last quarter of last year and then pay monthly going forward, so we will now be one month in arrears as opposed to three. The expense is 14 months this year, but it will drop next year.
Mr. Delguyd asked, realistically, some of those months should have been in 2012? Mr. Wynne replied, yes, the statements from the State will include the outstanding encumbrances.
Mr. Marrie asked, there was $270,000 on a signalization system upgrade. Is that just traffic lights? Chief Edelman replied, that’s the mast arms and the poles as well. It’s the whole system. Hardware and software upgrades, new poles on SOM. Mr. Marrie asked, because they are out of date? Chief Edelman replied, they are working fine, but there aren’t any more replacements parts. When they break they break and we would have to buy a new system anyway.
Mr. Marquardt asked, this covers which locations? Chief Edelman replied, the loop on Wilson Mills. Mr. Wynne added, we have a street lighting assessment that we charge all of the businesses and residents in the Village. We checked with the Law Director and we have a surplus of that fund. The assessment over the years has been accumulating and are higher than the actual electric bills for the lighting. The Law Director’s opinion is that we can use those monies towards the cost of these traffic lights if we decide to do them. Mr. Delguyd asked, is that $270,000 net? Mr. Wynne replied, the $270,000 is gross. Of that, it would be $150,000 coming from the Street Lighting Assessment Fund towards that. That would be $120,000 net to the General Fund.
Mr. Marrie asked, with regard to the new ambulance, what was the cost? Acting Chief Girbino replied, I can’t give you an exact figure. Mr. Wynne stated, we have not received an exact figure. Mr. Delguyd asked, this is the ambulance we had in last year’s budget and we deferred? Mr. Marrie replied, yes. Mr. Wynne stated, when Chief Mohr looked at it, he said that the vehicle itself is around $200,000, but after putting the new cot system into it, without the grant we received, it would have cost us around $35,000-40,000. We want to include that cot system in the third ambulance also. That’s why I went from $200,000-250,000.
Mr. Marrie stated, hat’s off to you. The debt will be down $1.7 million from 2012. It was nice to see that in 2017, it will be down to $4.4. It’s really looking good. The reserves are up, but for 2013 on the sheet it doesn’t actually give an amount. I am not sure I know why. Mr. Wynne replied, the budget as it is put together shows us going from about $10 million in General Fund down to about $8.5. That’s if we did every capital project on there. It shows us going down about $1.5, but if our income tax collections come in the way they have in the past 2 years, at around $14.5 or higher, we still end up with about a $10 million General Fund at the end of the year.
Mr. Delguyd asked, I noticed everyone is getting new automobiles at this year at some level? Mr. Wynne replied, the Fire Chief, Service Director and Building Director. Mr. Delguyd asked, that’s the routine replacement? Mr. Marrie replied, yes. Mr. Wynne replied, the Fire Chief’s car and Service Director’s car have over 100,000 miles on them. Mr. Marrelli stated, my used one will go to Service. They will get more years out of them. Mr. Delguyd asked, do we buy those? Mr. Wynne replied, yes.
Mr. Delguyd asked, what is the $50,000 for The Grove. Mr. Wynne replied, miscellaneous. They are thinking about running electric and pavers and certain things. We didn’t know what the amount would be, so we put that amount in to have something budgeted.
Mr. Delguyd asked, on page 15, SMC&R Fund, the $1.35 million? Mr. Wynne replied, street maintenance and construction. Mr. Delguyd asked, that’s the one that’s going to go up by $75,000? Mr. Wynne replied, yes, it’s $1.35, $1.1 was for road projects 35,000 was for road signs. We have to add $75,000 for the road project.
Mr. Delguyd asked, the Capital Improvement Fund is $510,000? Mr. Wynne replied, it’s a combination of the rest of the sidewalk on Highland, the sidewalk on SOM from the Fire Station to Fisher’s. Those two items right there were $415,000. Mr. Metzung added, it goes all the way to Beta. Mr. Delguyd asked, is that for more walkability? Mr. Wynne replied, yes. Mr. Delguyd asked, that’s from the Fire Station to Beta? Mr. Wynne replied, yes.
Mr. Wynne asked Mr. Delguyd, what item were you looking at? Mr. Delguyd replied, the $510,000 on page 15, 101.999.58401. Mr. Wynne replied, that’s a transfer from the General Fund to that Fund. If you flip to page 19, the Capital Improvement Fund down there, you can see the whole budget is $687,000, so the $432,000 is the sidewalk project. $250,000 is budgeted for potential land purchases. We have had two people approach us to sell their property, but their asking price was ridiculous. We told them we were going to sit tight. We were not interested at the moment.
Mr. Delguyd asked, the $550,000 for Parkview Ballfield Fund? Mr. Wynne replied, that’s the budget for the restrooms. That is based strictly on the quotes we got. We are looking at design-building which will probably be significantly less than that number.
Mr. Delugyd asked, the Community Room capital improvement, is that just a budgeted number, $50,000? Mr. Wynne replied, it’s just a number. John is in the process of making a list for the Mayor of improvements that need to be made. Mr. Marrelli added, like heating and air conditioning.
Mr. Delguyd asked, the Civic Center? Mr. Marrelli replied, same. We are also looking at boilers. It might end up next year. We are looking at getting some prices. They have been on the list for 5 years. Mr. Marrie asked, how many are you talking about? Mr. Marrelli replied, two. There are two main boilers down the basement.
Mr. Delguyd asked, on page 20, the pathway construction on the Greenway Corridor, that’s what we have been talking about with the NOACA grants, right? Mr. Wynne replied, yes. Mr. Delguyd asked, does that include the NOACA money? Mr. Wynne replied, that’s the gross. Mr. Delguyd asked, it’s the gross that will show revenue coming in from NOACA? Of that $1.2, $600,000-800,000 is ours? Mr. Wynne replied, 80% from the grant. Also, it includes an estimate of the trailhead by the Fire Station in the event we decide to do that.
Mr. Marquardt will have questions at the next meeting.
Mr. Delguyd asked if there were any further questions. There were none.
There being no further business, the meeting adjourned at 7:58 p.m.
Mary E. Betsa, Clerk of Council