Finance Caucus - June 2nd 2014

MINUTES OF THE
FINANCE CAUCUS COMMITTEE MEETING
Monday, June 2, 2014 – 7:30 p.m.
Main Conference Room
Mayfield Village Civic Center

The Finance Caucus Committee meeting was held on Monday, June 2, 2014 in the Main Conference Room at Mayfield Village Civic Center.  Mr. Marquardt called the meeting to order at 7:36 p.m.

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Present: Mr. Marquardt, Mr. Marrie, and Dr. Parker

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

1. Installation of transformers at The Grove (First Energy – additional $3,600.20)

This item was discussed in Safety and Service.

2. Volunteer Appreciation Event (not to exceed $7,500)

Ms. Wolgamuth reported, this is the annual event.  I don’t have any solid plans yet, but we are looking at doing it indoors this year because last year was such a rain out.  It might be nice to change the venue anyway just because we have done it at the pool for the last five years. Same budget.  It is in the 2014 budget. 

Mr. Marrie asked, will the crowd fit in the Community Center?  Ms. Wolgamuth replied, no, I was looking at the Hilton Garden Conference Center there.  I talked to them. It’s a very nice venue.  Since they have opened, I thought it might be a nice opportunity to bring people from the Village there to check it out. I am sure a lot of people have not been there. 

Mr. Marquardt asked, how are you going to get it at the same amount of money? Ms. Wolgamuth replied, there’s no rental charge.  You only pay for the food. I have their menu. I think we can do it within the $7,500.

Mr. Marrie asked, you are comfortable with the $7,500? Ms. Wolgamuth replied, yes.

Mr. Jerome stated, we could do the Community Room next year. It will be nice and fresh. Ms. Wolgamuth stated, they used to do it at the Community Room.  You are right.  Once we rehab it that might be a good idea.

3. Server backup and disaster recovery device (All Covered - $3,750 plus $570/month)

Mr. Wynne reported, on our current rental agreement, we are paying $805 a month for disaster recovery and back up services. They provided us with two options.  Option one provides us with twice the amount of storage capability that we currently have for $750 a month or option two, which is the one we are recommending, is $570 a month but we will buy the server as opposed to renting their server for back up. The server costs $3,750. The difference between the $805 and $570 and paying the $3,750 is like a 16 month payback.  Jeff Thomas stated that the last server lasted about 6 years.  After 16 months we have paid for the server with the savings on the monthly rental.  It is an additional savings of about $250 a month after that.  Jeff and I talked about it. We are recommending option 2.

Mr. Marquardt asked, are we liable for the server? Mr. Wynne replied, yes.

4. Workers’ Compensation Pooled Rating Program 2015 Enrollment Fee (Comp Management, Inc. - $5,830)

Mr. Wynne reported, this is our annual premium to Comp Management to be part of the Ohio Municipal League Workers’ Compensation pool.  Last year it was $5,660.  This year it is a little bit higher mainly because payroll dollars have increased.

5.  $1,900,000 Various Purpose Improvement Notes, Series 2013

Mr. Wynne reported, this is our annual note of $1,900,000 that expires at the end of August. We usually pay down $500,000 and then roll it over for the additional amount. Right now we are budgeted to pay down $500 and roll over $1,400,000. Subject to my discussion with the Mayor, we currently have over $300,000 sitting in the Debt Fund that we put in there last year.  I am going to see what the Mayor thinks about using that and instead of just having $300,000 sit there, paying down $800,000 against this as opposed to $500,000. It’s up for pay down and renewable August 31st.

Mr. Marquardt stated, nobody will complain about you paying down more. 

Mr. Wynne replied, we are budgeted to pay down $500,000, potentially $800,000 subject to conversation with the Mayor.

6. In-car video system for police department cars (Northcoast Two-Way Radio, Inc. – not to exceed $52,123.15)

Chief Edelman reported, this is a replacement for our current in-car video system which is 9 years old and at the end of its life. We have a lot of repair issues with the individual units. This cost is below what we budgeted for.  It is on State bid pricing.  It covers 7 units plus the server.

7. Replacement of Fire Truck (Eone – price TBA or Rosenbauer - $465,397 estimated)

Chief Carcioppolo referred to the diagram he distributed prior to the meeting.  I put another paper there that explains the cost.   $450,000 was budgeted but we did not receive as much on trade as we expected to receive for the other two engines that we are going to be getting rid of.  One of them is a 1989. One of them is a 1997.  We don’t need a ladder truck, rescue engine and a Class A pumper. The concept is to combine the Class A pumper with the rescue engine and replace both of those because technically we shouldn’t be using the 1989 engine in its current condition.  In combining both of those vehicles into one and not receiving the trade-in amount putting the features that both of those vehicles have into one vehicle ended up giving us a little overage and then not receiving the trade-in value we expected to kind of put us over.  That’s why we are at $478,000.

Dr. Parker asked, what do we have in the budget?

Mr. Wynne replied, $450,000.

Chief Carcioppolo stated, if it’s any consolation, the squad was $30,000 under last year.

Mr. Marquardt asked, how much do we use a fire truck like this?

Chief Carcioppolo replied, because we are utilizing putting two into one, it will be used every day. Part of that is the response procedures that I have put in place are a little different than they used to be.  If we have a call that requires the entire station to be dumped, like an ambulance call for example, two people generally go in the ambulance and we used to respond with two vehicles and a chase vehicle like an SUV but it’s more responsible to take a large engine with AOS capabilities so this engine will respond in place of an SUV in the event that we need to dump everyone out of the station.  It’s also going to be filling the role of two vehicles, so it’s going to be a firefighting vehicle for structural fires as well as an accident vehicle.  It will go on all MVA’s and wires down calls.  That’s part of the reason we didn’t need in my opinion all of these different vehicles.

Dr. Parker asked, how does that effect the longevity of the single vehicle, if we are using it so much more?

Chief Carcioppolo replied, longevity-wise, with our call volume, I don’t think you are going to see a problem. This is going to be a 20-25 year vehicle.

Mr. Marquardt asked, you won’t need the SUV now?

Chief Carcioppolo replied, we need the SUV for fire prevention used predominantly for that and we need the pick-up truck. If you look at how much I downsized the fleet, it’s pretty impressive considering we had four ambulances and now we have two. We are getting rid of things.

8. Memorandum of understanding with Cuyahoga County Soil and Water Conservation District for help with Phase II Storm Water Permit

This item was discussed in Safety and Service.  Mr. Marquardt asked, is there a number for this? Mr. Metzung replied, I will be getting that soon.

Mr. Marquardt continued, I would expect if it is going to save that much money, it would be a reduction in the engineer’s budget.

9. Crack sealant (DJL Materials – not to exceed $20,000)

Mr. Metzung reported, we are going to be hitting all three of the neighborhoods done from the road project and various other areas.  It’s typically $10,000-15,000.  I upped it this year.  The volume is higher.

10. Mutual exchange of lifeguard services with Mayfield Heights and Highland Heights

Mr. Marquardt stated, I understood the concept discussed in Safety and Service.  When Mayfield Heights lifeguards come here, do we pay the bill for them?  Mr. Thomas replied, no. It’s part of the Mutual Agreement that Diane drew up. 

Mr. Marrelli added, you trade services.  Mr. Thomas replied, correct. 

Mr. Marquardt asked, why are they agreeing to this if they are paying for a week here?   How are we reciprocating?  Mr. Thomas replied, it allows their residents to use our pool. They are closing the pool down because they don’t have enough staff.  If they have a pass, they are free.  If they don’t have a pass, they pay $5.00. This is the same with Highland Heights.

11. Sewer project at Eastgate and Meadowood Drive

Mr. Marquardt asked, was a mailing sent out already with the information?  Mr. Wynne replied, no, we wanted to have the meeting first.

12. Authorization to purchase 1,500 tons of salt through the ODOT summer salt program from Morton Salt at $47.00 a ton ($71,850.00)

Mr. Metzung reported, this is the first time they offered this.  It’s a summer salt fill. It would be purchased in the summer with the hope the numbers would be lower, but the numbers are pretty substantial.  It’s $18.00 more than what we spent last year for salt.  But we expected this because they ran out this past winter and the demand is much higher.  We are obligated.  We made this obligation and passed a resolution back in the winter to participate in this. This is just to say we are purchasing it from Morton.  We have to purchase 1,500 ton and then we will have another 1,000 for the winter program.

Dr. Parker asked, were there any constraints on how much they would charge for it?

Mr. Metzung replied, no, that’s part of the pool.  When you sign up, the State asks you how much you want and you have to buy it. When they go out to bid, they have a number of how many tons they are going to buy throughout the State.

Dr. Parker asked, what if we bought this on our own, would you pay more?

Mr. Metzung replied, I don’t know. That’s the risk you take. Some years the State’s lower. Other years, private entities are lower.

Dr. Parker asked, what percentage have they gone up?

Mr. Metzung replied, well this is almost 80%.  It’s a significant jump.  Cargill didn’t even bid.  Morton was the only bidder.  That tells me that they are going to look to jump in in the winter with a pretty significant number also.  The $29 number we paid last year was ridiculously low. That was far lower than we have seen in years. This past winter really kicked it.  No one has any stockpile. Now it’s a commodity. 

Dr. Parker asked, how much do we have now?

Mr. Metzung replied, in our bin right now, maybe 200 tons. We typically do about 2,500 tons in the winter.

Mr. Jerome asked, we will be able to keep a lot more in that new bin?

Mr. Metzung stated, the beauty of it will be that we will be able to get it.  Last year, I did not actually use my full contingent that I could have bought because I couldn’t get it.

Dr. Parker asked, how can they do that if we are entitled to it?

Mr. Metzung replied, the program ran out.

Dr. Parker stated, if we are entitled to it, the program ran out?

Mr. Marquardt asked, even if we didn’t get all that we signed up for, we can’t get it now?

Mr. Metzung replied, right.

Dr. Parker stated, at this year’s prices, people will probably be very conservative on what they buy.

ANY OTHER MATTERS

Mr. Marquardt asked if there were any other questions or comments.  There were none.

There being no further business, the meeting adjourned at 7:55 p.m.  The next Finance Committee meeting is scheduled for Monday, June 16, 2014 at 7:30 p.m. in the Main Conference Room. 

Respectfully submitted,

Mary E. Betsa, Clerk of Council