Finance - October 21st 2013

MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, October 21, 2013 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center

The Finance Committee meeting was held on Monday, October 21, 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 and Mr. Marquardt

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

1: Discussion of a motion to authorize expenditure in the amount of $5,456 to BRK/First Alert for 248 smoke alarms at $22 apiece ($3,850 pass through; total cost to Mayfield Village - $1,606).

Interim Chief Carcioppolo reported, the residents have paid the $3,580.  That’s part of the smoke alarm program to get the photoelectric smoke alarms into residents’ homes.

Mr. Delguyd asked, do we keep any on inventory or do we just order them at certain points?  Interim Chief Carcioppolo replied, we order them as people need them.  If there are problems with them, Lieutenant Girbino exchanges them with the company. They send out new ones.

The Committee recommended Item #1 for approval.

2: Discussion of a motion to authorize additional expenditure in the amount of $660.00 to ECN Intermediate Holding Co. in payment of additional rollover minutes for Code Red.

Mr. Delguyd asked, we went over our minutes, correct?  Chief Edelman replied, yes.  This actually goes with item number 3, the Code Red Contract.  The $660 will pay our overage for the past two months.  A bridge fee will take us to January of next year which is when our contract term begins. 

The Committee recommended Item #2 for approval.

3: Discussion of a motion to upgrade CodeRed to three-year unlimited license with a new annual cost of $4,510 per year for a total of $13,530.

Chief Edelman reported, this raises us from our current number of minutes which is 7500 to unlimited minutes which will be approximately an additional $800 a year.

Mr. Delguyd asked, have we gone over every year?  Chief Edelman replied, no. This is the first time we have gone over.  Mr. Wynne added, this is the second year we have had the contract. As more and more people subscribe to it, it is building minutes.

The Committee recommended Item #3 for approval.

4: Discussion of a motion to authorize expenditure in the amount of $2,210 to Harley-Davidson Sales Company for the purchase of a 2014 Harley Davidson motorcycle.  Total cost:  $17,210, less trade-in of 2004 Harley Davidson FLHP motorcycle at $7,300 and 2005 Harley-Davidson FLHP motorcycle at $7,700.

Chief Edelman reported, they are offering to give us an allowance of $15,000 on our two old bikes toward the cost of the new motorcycle.  Our cost will be $2,210.

Mr. Delguyd asked, what is FLHP?  Chief Edelman replied, the model. 

Mr. Delguyd asked, you don’t need two bikes?  Chief Edelman replied, we do. We already have one new one. This would be replacing the second one.

Mr. Wynne stated, when this gets authorized, even though this is the way we are going to handle it from a financial standpoint, it needs to be authorized for the full amount of the purchase of the new bike. 

Mr. Delguyd asked, so we are actually authorizing $17,2100, not $2,210?  Mr. Wynne replied, yes. From an expenditure standpoint, we are going to put the $17,210 in the budget as an expenditure, but on the revenue side we will have the trade in on the receipt side.

The Committee recommended Item #4 for approval.

5: Discussion of a motion to accept proposal of American Fireworks for a two-year fireworks display contract and to authorize expenditure in the amounts as follows:  2014:  $9,000; 2015:  $9,500, with the option to renew in 2016 at  $10,000.

Mr. Thomas referred to the memo he sent to Council.  Total cost would be $28,500. We were paying $43,500 for three years.   We can’t go out for three years as we will go over the $25,000 bidding requirements. We are going to do two years with an option for the third year. 

Mr. Delguyd asked, is the renewal at our discretion?  Mr. Thomas replied, correct.

The Committee recommended Item #5 for approval.

6: Discussion of a motion to go out to bid for the sale of the 1991 643 ambulance (VIN No. 1FDKF37M5MMNB08619).

Interim Chief Carcioppolo reported, this is what would be classified right now as our third out ambulance.  It’s very old.  We will never use it on a call.

Mr. Delguyd asked, do you have no expectations of getting significant dollars for this?  Interim Chief Carcioppolo replied, I tried to come up with a value on it.  It’s hard because it is classified as a classic vehicle because it’s a custom built ambulance from that time period.  You can’t look up a blue book value on it.  It’s worth what someone is willing to pay for it.

Mr. Marquardt stated, but it’s low mileage.  Interim Chief Carcioppolo stated, it is low mileage.  It does have some electrical issues.

Mr. Delguyd asked, who would be looking for this?  Interim Chief Carcioppolo replied, a tradesperson, I would imagine.

Mr. Delguyd asked, are the bids binding, meaning if it comes back and the offers are so low, it’s better off we give it to an organization and tell them to do something with it?  Mr. Wynne replied, we don’t have to accept the bids.  Interim Chief Carcioppolo replied, I would say if we get a couple grand, that’s probably what it’s going to go for. That’s the best pricing I could come up with for it.  Our 1999 ambulance had an estimated trade-in value of $4,000 earlier this year. 

Mr. Delguyd asked, how much does an ambulance cost?  Interim Chief Carcioppolo replied, depends on the size and what you get. That ambulance was $160,000.  This ambulance was $78,000 when we purchased it in 1991.

The Committee recommended Item #6 for approval.

7: Discussion of a motion to provide the 1989 ambulance (VIN No. 1FDKF37M5KNB58868), formerly being used and returned by the Hillcrest Area Fire Investigation Unit, to the SPAN Traffic Investigation Unit to utilize.

Mr. Delguyd asked, so we are getting it back from the Fire Investigation Unit and giving it to SPAN?  Interim Chief Carcioppolo replied, correct.

Mr. Marquardt asked, what are they going to use it for?   Interim Chief Carcioppolo replied, the SPAN team is going to use it for their traffic investigation team.  Chief Edelman clarified, crash investigation unit.

Interim Chief Carcioppolo stated, this is in better shape than the 1991.  They were kept up by FIU and was modified to carry gear and be utilized.

Mr. Wynne stated, we are not really giving it to them. We retain title.   The vehicle has to be insured. We are the only municipality in the group that can insure it because we are not part of a pool. We maintain title and insure it.  They reimburse us for the cost of the insurance. When they are done using it, we get it back and dispose of it.

The Committee recommended Item #7 for approval.

8: Discussion of a motion to authorize acceptance of bid and expenditure in the amount of $5,200 to Anselmo’s Landscape and Design for Drainage and Infrastructure Project at 905 Beecher’s Brook.

Mr. Delguyd stated, this was discussed extensively. The resident has already paid his 10%. This is a project that covers multiple?  Mr. Metzung replied, this cover his backyard plus three other properties that actually drain to his yard.

Mr. Delguyd stated, so, there is going to be multiple benefits.  He is going to physically benefit and the other three are going to.  Mr. Metzung replied, yes.  He paid the full 10%.  He is taking the brunt of the other people’s drainage.

Mr. Delguyd asked, do we need to add the other $800 in there?  Mr. Metzung replied, I don’t know that it matters in this, but it is just for Ron to know that $800 of that is for work in the right of way.  It doesn’t seem fair to charge the resident for that.  The actual cost is $4,400. We owe the resident $80.

The Committee recommended Item #8 for approval.

9: Discussion of a motion to authorize acceptance of bid and expenditure in the amount of $12,500 to North Union Realty for demolition of 6120 Wilson Mills.

Mr. Delguyd asked, this is the house closest to the library?   Mr. Metzung replied, correct.  We had two other bids for $14,000.

Mr. Delguyd asked, this is getting it to grass?  Mr. Metzung replied, this is getting it to the lawn, yes. Driveway removed and everything of that nature.

The Committee recommended Item #9 for approval.

10: Discussion of a motion to acknowledge receipt of financial reports for September, 2013 and to approve of same as submitted.

Mr. Delguyd had some basic questions that he already asked Ron for clarification.  Everything looks good.

The Committee recommended Item #10 for approval.

11: Discussion of Resolution No. 2013-14, entitled, “A Resolution Authorizing the Mayor to seek financial assistance from the State Issue I Infrastructure Bond Program for funding of Phase I of the Sewer Project on Eastgate, Meadowood, Ravine, Thornapple, Robley and a portion of Wilson Mills Road and declaring an emergency.”  Introduced by Mayor Rinker and Council as a Whole.

Mr. Delguyd asked, are we going for all four streets?  Mr. Metzung replied, no, it is my understanding we are only going for Phase I.

Mr. Delguyd asked, Phase I of the whole project?  Mr. Metzung replied, correct, which was just the Eastgate, Meadowood portion.

Mr. Marquardt asked, how many phases?  Mr. Metzung replied, I think it’s two. Eastgate, Meadowood and then Thornapple, Ravine with a little part of Wilson Mills.

Mr. Marquardt asked, so if you get the first phase, you are likely to get the second?  Mr. Metzung replied, we will take what we can get.

Mr. Marquardt asked, how much is this project worth?  Mr. Wynne replied, the numbers we put together for Phase I is about $2.7 million?

Mr. Marquardt asked, what about Phase II.  Mr. Wynne replied, Tom estimated roughly about the same. We have to replace the waterlines.  Mr. Metzung thinks it will be cheaper.

Mr. Delguyd asked, do those prices include the street pavement?  Mr. Wynne replied, yes. Waterline replacement, streets, the bases of the driveway.

Mr. Delguyd asked, if we didn’t have to do the sewers, the street alone would be $1 million, right?  Mr. Metzung replied, for two streets, just to grind and replace, about $2.5 million. 

Mr. Delguyd asked, but you are doing the whole program, grind, replace, concrete asphalt?  Mr. Metzung replied, those streets are just asphalt streets. What will happen there is he is putting the sewer in the middle of the street. That will be torn up.  It’s all premium fill which is more expensive.  It saves us not doing all the work in the drive aprons and all that goes with that.  He will grind up the whole road and repave it.  It’s just asphalt.

Mr. Marquardt asked, are we anticipating change orders on this?  Mr. Metzung replied, I would think there probably should not be a lot.  You are going to get in to the waterline. That’s where you get into a little, but for the roadway, I don’t think so at all. The only thing you would see would be undercut of dirt. We are not seeing any indication out there.  You would see that now. The road would be failing.

Mr. Delguyd asked, has there been any discussion into widening the street at all?  Mr. Metzung replied, no.  We talked about it back when we did Seneca years ago about putting curbs and gutters and upgrading the road. At this point I have not heard any outcry from either Council or the residents for it.  The Service Director would vote yes for that.

Mr. Delguyd asked, would you have to get easements or agreements from all the residents?  Mr. Metzung replied, no, because it is already in the right of way.  You would get rid of all of the ditches.  Mr. Delguyd stated, that might be something to think about if it is within reason.  Mr. Metzung replied, Tommy could have that figure for you pretty quickly.  Mr. Delguyd stated, we can talk about it.

The Committee recommended Item #11 for approval.

12: Discussion of Resolution No. 2013-15, entitled, “An Emergency Resolution authorizing the Mayor and President of Council to enter into a Mutual Aid Agreement for the interchange of Building Commissioner and inspection services with Highland Heights, Ohio, on an as needed basis.”  Introduced by Mayor Rinker and Council as a Whole.

Mr. Delguyd asked, this is just codifying and putting in writing?  Mr. Marrelli replied, yes.  It’s our backup agreement between Highland Heights and Mayfield Village.

The Committee recommended Item #12 for approval.

13: Discussion of a motion to authorize the Engineer to prepare plans and specifications for the Eastgate/Meadowood project.

Mr. Delguyd stated, this should probably include the language, “as approved in item number 11 above”.  This is the sewer project?  Mr. Metzung replied, this is to go ahead and prepare the plans and specifications independent of whether or not we get outside funding. 

The Committee recommended Item #13 for approval.

14: Discussion of a motion to authorize expenditure in the amount of $8,868.14 to Signal Service Company for replacement of traffic light pole at SOM and Seneca.

Mr. Delguyd asked, this is across from Heinen’s?  Mr. Metzung replied, this is the pole that failed back in August.  Mr. Delguyd asked, this work was done?  Mr. Metzung replied, yes.

The Committee recommended Item #14 for approval.

ANY OTHER MATTERS

Mr. Delguyd asked if there were any other matters.

Mr. Marquardt asked, the Eastgate/Meadowood project, if the State pays for it, do they pick up the engineering costs?  If the State funds it?

Mr. Wynne replied, the only funding we are asking for is $1 million out of the $2.7 million.  $700,000 out of the million will be a loan.  The Issue I funding is, we are asking for a grant of between $250-300,000 and then a loan for $700-750,000.  We will finalize the numbers this week.  If that gets approved, then $1.7 million will come out of our pocket. 

Mr. Delguyd asked, what are the rates on the loan?  Mr. Wynne replied, it’s interest free. The loan value is generally the total of the amount that will be assessed to homeowners benefitting using the same dollar amount that was assessed to homeowners from the previous projects.  Last year we requested the same loan value and a grant of $500,000 and it got turned down at the State level.  Mr. Delguyd stated, so we are really just rolling the dice.  Mr. Wynne replied, we are hoping to get something.

Mr. Delguyd asked, if we get nothing, it’s $2.7 out of our pocket?  Mr. Wynne replied, it would be $2.7 out of our pocket.  I would assume the residents will be assessed.  

Mr. Delguyd asked, where would we get the $2.7 from, the General Fund?  Mr. Wynne replied, right now with the way we are budgeted, we will have $1.7 at the end of this year.  I have not talked to the Mayor about it, but with the surplus, we are thinking about another million set aside going in to next year.  If we don’t need it, it can be utilized for Phase II.

Mr. Delguyd asked, another other questions or comments? There were none.

There being no further business, the meeting adjourned at 7:52 p.m.

Respectfully submitted,

Mary E. Betsa,
Clerk of Council