Finance - June 17th 2013
MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, June 17, 2013 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center
The Finance Committee meeting was held on Monday, June 17, 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 and Mr. Marquardt
Also Present: Mr. Wynne, Chief Edelman, Interim Chief Carcioppolo, Mr. Metzung, Mr. Thomas, Ms. Wolgamuth, Mr. Esborn, Mr. Dinardo and Mrs. Betsa
1) Discussion of a motion to authorize expenditure in an amount not to exceed $7,500.00 for Volunteer Appreciation Event – August 2, 2013.
The Committee recommended Item #1 for approval.
2) Discussion of a motion to go out to bid for sale of vehicle and police motorcycle.
Chief Edelman stated, Doug has a couple of cars he wanted to sell too.
Mr. Metzung reported, I have two Taurus’s that we will be looking to get rid of. We are waiting for Fire to get their replacement for the Chief car. That is going to fold over into what the Building Commissioner’s help uses as opposed to the old Taurus that they are using. I wanted to get a hold of that Crown Vic before that to make sure it is in better shape.
Chief Edelman asked, so, are we ready to sell? Mr. Metzung replied, hopefully within –
Interim Chief Carcioppolo stated, you can take it now. Mr. Metzung stated, okay, I am ready to sell.
Mr. Delguyd asked, all of the stuff gets stripped out before it is sold? Mr. Metzung replied, yes.
Mr. Delguyd asked, does this go along with the purchase of new ones, or we have already done that? Chief Edelman replied, we have already done that.
Mr. Delguyd replied, all right. Bill, approval?
Mr. Marquardt asked, what all are we approving here? Mr. Delguyd replied, the sale of old vehicles, right? Chief Edelman replied, advertising for police vehicles.
Mr. Marquardt asked, can you itemize what we are voting on? Mr. Wynne replied, it will be five vehicles, one Crown Vic that is currently the Fire Chief’s car, two Ford Taurus’s, the police motorcycle, and what is the other one? Chief Edelman replied, it’s a 1999 Chevy pick-up truck with a plow.
Mr. Wynne replied, the two Ford Taurus’s are 2003’s? Chief Edelman replied, yes, I believe.
Mr. Delguyd asked, recommend approval? Mr. Marquardt replied, yes.
The Committee recommended Item #2 for approval.
3) Discussion of a motion to authorize change order in the amount of $104,674.48 to C.A. Agresta Company for 2013 Road Program.
Mr. Metzung stated, as we discussed earlier, the base repairs were the main culprit. We are beyond that now so we are more comfortable with where we are at. Last week we did a very large section and we did our partial asphalt repairs. That came in under. We are still very comfortable with the $104,000.
Mr. Delguyd asked, I saw a comment in one of the packets that said that even with all of the change orders, we are still under budget? Mr. Wynne replied, yes, we are still $50,000 under budget.
Mr. Marquardt asked, is that before or after this? Mr. Wynne replied, after.
Mr. Marquardt stated, I don’t understand why we are keeping, what did we have $50,000 in there? Mr. Wynne asked, in contingency money? Mr. Marquardt replied, yes. Mr. Wynne replied, I think every contractor has about a 10% contingency factored in. Mr. Delguyd stated, just for protection. That’s standard practice. Mr. Metzung stated, the reason we are keeping part of that is that if something should arise we can make that.
Mr. Delguyd asked, just the retention? Mr. Metzung replied, yes. Well, that retention is a contingency amount so that if something comes up we have the money set aside that we can go ahead and make that change. If we don’t have that, I can’t authorize that change without Council’s authorization.
Mr. Dinardo added, and that will affect time. Mr. Metzung replied, right.
Mr. Delguyd asked, so we still have $50,000 of contingency money after this change order that we will not be using? Mr. Wynne stated, I think it is $60,000. Mr. Metzung replied, I will know at Council. I can let you know that because Tom will know.
Mr. Wynne stated, the $50,000 under budget is after this change order and also with the contingency money factored in. So if we don’t end up using that contingency money at all, we will end up being $100,000-110,000 under budget.
Mr. Delguyd asked, recommend approval? Mr. Marquardt replied, yes.
The Committee recommended Item #3 for approval.
4) Discussion of a motion to authorize expenditure in the amount of $5,500.00 to Fire-Tech, Inc. for the replacement of the back flow preventer at the Service Department.
Mr. Metzung reported, the Fire system is connected to it. It’s been leaking pretty much since I have gotten here. It has been repaired many many many times. There’s pitting inside of it. Now it just runs.
Mr. Delguyd asked, what does it do? Mr. Metzung replied, it keeps water from exiting. Once it enters your building it can’t go back and get back in to the water system, so if you would have contaminants in your building per se and your fire lines, whatever domestic lines that are required, it couldn’t get back in to the district system. It’s a requirement that we have these.
Mr. Wynne asked, is this eligible for reimbursement with the money we have on account with the County Engineer’s office or Public Works office? Mr. Metzung replied, no, this is a Water Department requirement.
Mr. Wynne asked, so it’s not like the ones we have done for the residents where we have gotten the money back? Mr. Metzung replied, no, those are sewer backflow preventers. This is for domestic water coming in to your home.
Mr. Delguyd asked, recommend approval? Mr. Marquardt replied, yes.
The Committee recommended Item #4 for approval.
5) Discussion of a motion to authorize expenditure in the amount of $6,400.00 to Tree Service Now for the removal of trees in various locations throughout the Village.
Mr. Metzung reported, now that we have a trained arborist on staff, we pay attention to this a lot better. We have various locations where we have dead trees, like the Cemetery and The Grove and we have a few that are on front yards, but they are in the Village right-of-way.
Mr. Delguyd asked, like on tree lawns? Mr. Metzung replied, yes. Those have to be removed.
Mr. Delguyd asked, are they being notified? Mr. Metzung replied, they are the ones that requested it. They are very aware of it. They requested to have those removed.
Mr. Delguyd asked, how many of these are from the recent tree planting program that died? They didn’t work the first time. Mr. Metzung replied, none. These are older more established trees.
Mr. Delguyd asked, recommend approval? Mr. Marquardt replied, yes.
The Committee recommended Item #5 for approval.
6) Discussion of a motion to accept bid from C.A. Agresta Co. for Highland Road Sidewalk Phase II Project and to authorize expenditure in the amount of $84,706.00.
Mr. Metzung replied, we are looking to finish the section of the walkway on Highland Road. C.A. Agresta did the first section.
Mr. Delguyd asked, does this take it all the way to SOM? Mr. Metzung replied, yes, with a crosswalk.
Mr. Marquardt asked, does that include the crosswalk and signaling? Mr. Metzung replied, it better. Chief Edelman replied, I don’t think so. Mr. Marquardt agreed.
Mr. Delguyd asked, they are not going to do the crosswalk? Chief Edelman stated, Agresta is not going to do the signaling. Mr. Metzung stated, yes but they could get a sub.
Mr. Delguyd asked, is there any way we can know that before Council? Mr. Metzung replied, Tommy will.
Mr. Delguyd asked, he’s coming to Council? Mr. Metzung replied, he will be there.
Mr. Delguyd replied, okay, so we will recommend approval with reservation?
Mr. Wynne stated, we have $150,000 budgeted for the whole program. If this is $85,000 with the crosswalk and everything it might be under with $15,000-20,000 on top of that for engineering fees, but that would be it then.
Mr. Delguyd asked, it won’t change the traffic signals at all right? Chief Edelman replied, it shouldn’t.
The Committee recommended Item #6 for approval.
7) Discussion of a motion to accept bid from Pat Flowers for 2013 Street Striping Program and to authorize expenditure in the amount of $20,354.65.
Mr. Delguyd asked, this is an annual expense? Mr. Metzung replied, yes.
Mr. Delguyd asked, how does this compare with prior years? Mr. Wynne replied, it was $19,000 last year. We budgeted $21,000 this year.
The Committee recommended Item #7 for approval.
8) Discussion of a motion to authorize expenditure in the amount of $5,660.00 to CompManagement, Inc. for Worker’s Compensation Group Rating Fee for 2014.
Mr. Wynne reported, this is just basically our annual fee to be part of the pool.
Mr. Delguyd stated, okay. Recommend approval? Mr. Marquardt replied, yes.
The Committee recommended Item #8 for approval.
9) Discussion of a motion to acknowledge receipt of financial reports for May 2013 and to approve of same as submitted.
The Committee recommended Item #9 for approval.
10) Discussion of Resolution No. 2013-10, entitled, “A Resolution Authorizing and Directing the Mayor and President of Council to enter into a Regional Stormwater Management Program Service Agreement with the Northeast Ohio Regional SewerDistrict.” Introduced by Mayor Rinker and Council as a Whole.
The Committee recommended Item #10 for approval.
ANY OTHER MATTERS
Mr. Delguyd asked if there were any other matters.
Mr. Esborn stated, I have one item. Unfortunately we will not be receiving State funds from DOPWIC for the Eastgate/Meadowood sewers. We were very confident initially because the initial scores were better than they have been in the past but as we traveled through the program, we were eventually informed that we were not receiving funding. We are working now, one, to determine whether for this program if there are other projects that are better suited; and also to look at funding for sewers other than DOPWIC.
Mr. Delguyd asked, what would that include? Mr. Esborn asked, funding outside of DOPWIC? Mr. Wynne replied, just looking at our own funding. We can reapply again next year, correct? Mr. Esborn replied, correct.
Mr. Wynne stated, I think the initial plan is to reapply next year with the hopes of being able to get some grant money as well as the loan money. The loan money gets paid back from the residents who benefit from the project.
Mr. Delguyd stated, that’s standard though. That’s always been part of it, correct? Mr. Wynne replied, yes. For this round, the project is estimated at about $2.6 million. We were going to put up $1.4 million. We asked for $500,000 in grant money. We were going to take out a loan for $700,000.
Mr. Delguyd asked, the grant money is the DOPWIC money, correct? Mr. Wynne replied, correct.
Mr. Delguyd asked, the $1.4 million, did that not also include the street program as well? Mr. Wynne replied, no.
Mr. Delguyd asked, so the $2.6 was just sewers? Mr. Wynne replied, yes. So, last year with the sewers, in addition to putting in our $200,000, we put in $600,000 of estate tax money that we got that we were not expecting. For budgeting this year, we put in our $200,000 and added an additional $300,000. We will have a little bit over $1.7 million in that fund at the end of this year.
Mr. Delguyd asked, we are going to put in $1.4 million? Mr. Wynne replied, yes, with the application that we just got turned down for we were going to put in $1.4 million. We will have $1.7 million available next year, maybe at the end of this year. If you remember we budgeted $13 million for income tax. We are on track, maybe $14.5 or $15 million. I think at the end of the year we take a look and see where we are at and we may want to take some of the additional tax money. I kind of planned for next year that we reapply and if we don’t get the grant money, I think we are going to just plan to move forward with the project anyway, get the loan and pay the balance out of our fund and get it done.
Mr. Marquardt asked, how many more sewer projects do we have beyond that? Mr. Wynne replied, there’s one other one after that. Then I think we will probably be done.
Mr. Delguyd asked, that whole area, Thornapple, Eastgate and Meadowood? Mr. Esborn replied, Eastgate and Meadowood is Phase I. Phase II will be Thornapple, Robley and a portion of Wilson Mills.
Mr. Delguyd stated, okay. So we would be looking at a total of what for both projects? Mr. Marquardt stated, plus contingency. Mr. Delguyd stated, plus 10% contingency, so you are probably looking close to $6 million? Mr. Wynne replied, possibly. Thornapple, Robley and Wilson Mills, is that going to have water main replacement too? Mr. Metzung replied, I don’t know the history so I am not sure.
Mr. Delguyd asked, do we know why we didn’t get the money? Mr. Esborn replied, there’s one main factor. The way DOPWIC works is the State is split up into 19 Districts. Ours happens to be just Cuyahoga County. Each District gets its own funds to distribute how it sees fit. We almost scored well enough to be funded just by our own District, but we were just below that line so we went into this consolation round for municipalities under 5,000 and for that round we competed against the entire State. The reviewers in Columbus for septic to sanitary projects don’t consider those to be repair projects. They consider them to be new infrastructure. Once that’s the case we lose tons of points.
Mr. Delguyd asked, even though we are required to do it by the EPA? Mr. Esborn replied, yes. We have submitted applications for this project before. We have not done well at the local government round before I think for that reason because once we are being looked at as a new infrastructure project we lose lots of points that we had here in Cuyahoga County. But, we came closer to being funded in our District than we have ever been before. I think it was largely because we put so much money into it. So applying again next year I think we just sort of go further in that direction and maybe a little less in grant and more in loan. That’s how these applications are done.
Mr. Delguyd asked, well, you are talking about $500,000 which is what is what the grant is for? Mr. Esborn replied, yes. That’s how much we asked for the grant.
Mr. Delguyd stated, we will probably be putting $500,000 in there anyway. So I guess, we will talk about it more. Mr. Wynne added, we will do $500,000 this year. If we do the same amount next year, we will have more than enough put aside.
Mr. Delguyd stated, then we will just have to rebuild up. Is there a thought that we are closer on the local level this year and is that something where as more projects fall off? Mr. Esborn replied, it’s hard to predict. You are competing against all of the other cities in Cuyahoga County. It’s tough to predict. What they do is they just rank them and then once they hit how much funding there is, they just draw that line and those are the projects that get funded. The tricky thing is theoretically the projects are scored somewhat independently of how much they cost. So you’ve got, let’s say 15 projects get funded, you will have a $75,000 project ranked 4th just because it’s got a lot of health and safety factors in its favor. It’s tough to predict.
Mr. Delguyd asked, are there rules about how many times a city can consecutively get a grant? Mr. Esborn replied, not as such, but you get for example, 5 points if you have not received funding in 5 or 6 years. It’s kind of minimal.
Mr. Wynne stated, so I think with the project, if we apply in 2014 and do the project no matter what in 2015, after 2015, are the majority of the road projects done? Mr. Metzung replied, no. We just start over. You will need to be putting that kind of money away forever.
Mr. Delguyd asked, what do you mean start over? Mr. Metzung replied, well we would go back to Hickory Hill which way back when is where we started with the asphalt overlays. We will have basically completed one round of street maintenance for every street within about 14 years. Then we will have to go back. Mr. Marquardt stated, so we go back over and redo them. They won’t probably need as much.
Mr. Metzung replied, we hope that the costs go down. Then we have to go to Worton Park.
Mr. Delguyd asked, that’s a couple years away that we start over? You are doing Sandalwood and then the idea would be to be doing Eastgate and Meadowood? Mr. Metzung replied, that’s –
Mr. Delguyd asked, why wouldn’t you do the road project the same year you do the sewers? Mr. Metzung replied, you would have to. At that point, you have to redo the roads. I thought Tommy had rolled that number in. Mr. Esborn replied, he did.
Mr. Delguyd asked, into the $2.6? Mr. Esborn replied, yes. That includes repairing it. Mr. Delguyd asked, the road and the sewer project? Mr. Wynne replied, yes.
Mr. Delguyd asked, so the sewer project is at $1.4 and the road is at $1.2? Mr. Wynne replied, yes. But we would still have another road project that same year. Mr. Esborn replied, right. I don’t think Tommy considered the road portion of this as part of the road program. It was just sort of repairing the road after it had been disturbed. It wasn’t considered part of the road program.
Mr. Delguyd asked, what’s the other road project next year? Mr. Metzung replied, Hanover Woods, Village Trail, Village Circle, hopefully Echo and then Bonnieview, Glenview. It’s going to be a big project, but it’s just grinding and replacing. We may want to scale back the amount we do and look at, do we want to upgrade, like the Glenview, Bonnieview, it’s a narrow road with ditches. At some point do we say do we want to do something more there? I would like to investigate that to see what that is to try and get rid of ditches and things of that nature. That’s the plan as to where we are going.
Mr. Delguyd asked, so we can count on basically a million dollars of road expenditure per year at least for the next three years?
Mr. Marquardt asked, beyond that? Mr. Delguyd replied, beyond that, it’s grinding.
Mr. Wynne stated, beyond that, yes, it may be a reduced amount. Mr. Delguyd stated, it may be down to $750,000 after that because it’s just grinding. Mr. Metzung replied, correct.
Mr. Delguyd stated, what I am saying is we are not going to have what we are doing now on Sandalwood and Walnut. That’s not the projects we are looking for. Mr. Metzung stated, no, but we may find because of 15 years from now when we get back to Sandalwood it may have to be replaced. I feel real confident Hickory Hill is going to be fine when we scrape that off. I am really looking forward to that. I think that’s going to be great because the wear typically will show back through. I think Aintree and Aintree North were both ideal candidates when we did them. They really came out very nicely as the project went forward. Again, your neighborhood, everything looks great right now but I am concerned about the material that was left and how that may hold up. It may be great. It may not. Mr. Delguyd stated, okay.
Mr. Thomas stated, I have one agenda item. After 41 years, MARC, the Mayfield Area Rec Council, is closing. It is dissolving. What that means for us is I think pretty minimal. I think they would contribute maybe $400-500. Obviously Mayfield Heights has 19,000 residents. They may contribute $2,000. But you won’t be getting any more MARC reports.
Mr. Delguyd asked, just the lack of interest? Mr. Thomas replied, they have really outgrown. When they started 41 years ago, there was no Mayfield Village Recreation, there was no Mayfield Heights recreation. Now they have 4 programs, basically the floor hockey program, a cheerleading program, the MARC Art Show and the Punt Pass N Kick. That will be consumed within our programs.
Mr. Delguyd asked, Mayfield Village is taking all of them? Mr. Thomas replied, Mayfield Heights, Mayfield Village, part of the Fieldhouse Project.
Mr. Delguyd stated, okay, anything else?
Mr. Metzung clarified, the signalization is in the sidewalk project.
Mr. Delguyd asked, and the crosswalk? Mr. Metzung replied, yes, it’s all in there. If you look at Tommy’s spreadsheet on the back of his request it has it laid out.
Mr. Delguyd asked, anything else?
Interim Chief Carcioppolo reported, we are starting our mold remediation project at the Fire Station.
Mr. Thomas reminded everyone of the June 28th Senior Open House at the Community Room. Information about anything that would apply to seniors, like the lockbox program. I will be there and Danielle will cover for me a little bit. If you guys can’t be there, let me know.
There being no further business, the meeting adjourned at 7:55 p.m.
Mary E. Betsa, Clerk of Council