Finance - July 21st 2014
MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, July 21, 2014 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center
The Finance Committee meeting was held on Monday, July 21, 2014 in the Main Conference Room at the Mayfield Village Civic Center. Mr. Marquardt called the meeting to order at 7:30 p.m.
Present: Mr. Marquardt, Mr. Marrie and Mr. Saponaro
Also Present: Mrs. Mills, Mr. Jerome, Chief Edelman, Mr. Wynne, Mr. Metzung, Mr. Marrelli, Mr. Thomas, Chief Carcioppolo, Ms. Wolgamuth, Mr. Dinardo, Mr. Esborn, and Mrs. Betsa
1. Motion to authorize expenditure in the amount of $7,200 to Law Enforcement Automated Data System for LEADS access fee with a dynamic multipoint virtual private network connection.
Chief Edelman reported, this is giving us direct access to LEADS instead of going through the County’s CRIS system. It’s about half the cost. The functionality is just about the same.
The Committee recommended Item #1 for approval.
2. Motion to authorize expenditure in the amount of $9,312 to Sutphen for hydraulic unit for fire truck.
Chief Carcioppolo reported, this is going to be drop shipped to the truck manufacturer. They will install it into the vehicle. It was $2,000 cheaper by buying it directly from the company and having it drop shipped there. It will supply power to our hydraulic cutting tools.
The Committee recommended Item #2 for approval.
3. Motion to authorize expenditure in the amount of $17,415.00 to Mike’s Home Improvement for exterior building maintenance to fire station.
Chief Carcioppolo updated the Committee. I talked to Mike. He submitted a new estimate indicating that he will take payment upon completion. He also submitted a Certificate of Workers’ Compensation coverage and of Liability Insurance naming us as additional insured.
The Committee recommended Item #3 for approval.
4. Motion to authorize expenditure in an amount not to exceed $10,302.45 to Southeastern Equipment Co. for the repair of the lift arm cylinders on Case loader.
Mr. Metzung reported, this is a new item. The hydraulic cylinders on our loader have begun to leak extensively through the seals. We are looking to see if we can get them rebuilt and if not replaced with rebuilt.
Mr. Marquardt asked, how do we have an exact value? Mr. Metzung replied, it’s not to exceed. It could be cheaper if we can rebuild the cylinders.
The Committee recommended Item #4 for approval.
5. Motion to authorize expenditure in an amount not to exceed $7,650 to King Excavating for the creation of mounds at the Raleigh Drive entryway.
Mr. Metzung stated, this is what we talked about last meeting regarding the Raleigh Drive area, creating mounds to help screen the homes there. It will help to tie in the separate lot that sits there and looks out of place. This should tie that whole area together.
Mr. Saponaro asked, is this something we anticipated doing? I know we did extensive screening initially. No one is ever going to be 100% happy, we know that. Now you are talking about pulling in the other property and making it one property. Is that something we would do either way?
Mr. Metzung replied, we will be doing this and will continue. We purchased those homes. It was designed in such a way that it will be easy to expand on.
Mr. Saponaro asked, the mounding?
Mr. Metzung replied, yes. We will just continue on.
Mr. Wynne added, we have $50,000 in the budget that was dedicated for the Aintree/Hanover entryways. From the standpoint of whether it’s pillar type and landscape, that goes with it. This is all part of that.
Mr. Saponaro asked, if we are doing this based on, I don’t like the lights, they are hitting my house, I am sensitive to that. I am also sensitive to the fact that lights are going to hit people’s houses. We live in a community where people drive. But if this is part of the budget for the entranceway and we were going to do this and have already contemplated it, I would rather see it be because of that reason, that we are fulfilling what we wanted to do versus we are trying to fix an issue.
Mr. Metzung stated, I understand what you are saying. Both are equally as important. Remember that when these people purchased their homes on Derby, there were homes there.
Mr. Marrie stated, the only problem I have is when is enough enough? What if she does not like what we are going to do now? She took her trees out because they were dead.
Mr. Metzung stated, she wanted to clean up some of her pretty evasive buckthorns in the back. She removed all those and got them out of there. It is a two-pronged issue.
Mr. Saponaro stated, we have to look at it from the entryway standpoint. Address it. If it happens to provide a benefit to that homeowner, that’s phenomenal. It kills two birds with one stone. If you look at it just from the homeowner’s standpoint, I don’t disagree that it has changed since she moved in there. That opens up a different way we have to look at this. I am not disagreeing with the expenditure, I am looking at it from a different perspective. It’s a bigger picture.
Mr. Metzung stated, in that regard, it is part of a larger overall design.
Mr. Marquardt asked, how much more is going to go into this?
Mr. Metzung stated, plantings. That is as we do our fall and spring tree plantings. We will try not to be overly aggressive at any one given time. I can’t imagine more than a couple thousand dollars in planting.
Mr. Jerome stated, I drove by it the other day. It doesn’t seem as bad. Do we need this much mounding?
Mr. Metzung replied, the mounding helps to bring the two parcels together so you don’t have this parcel on its own to the east of the parcel that was originally there. It was a house that we tore down after we did the initial cut-through. So now you have this lot with bushes that run alongside of it.
Mr. Marrelli stated, it’s like disconnected.
Mr. Metzung replied, right. It doesn’t give it that same sense.
Mr. Saponaro agreed. It doesn’t make it look like a large greenspace. It makes it look like a lot that the house came down and there’s a lot next to it.
Mr. Marrelli added, it doesn’t look like an entryway. It looks like there’s a lot without the house.
Mr. Metzung replied, it will eventually become more of just an entryway. It will be more Wilson Mills than Raleigh Drive.
The Committee recommended Item #5 for approval.
6. Motion to declare the fuel tank at the old ODOT property surplus.
Mr. Metzung stated, this is a new item. When we took possession, there were a few items we don’t need, one being this fuel tank, the other being a couple large plastic containers used for salt grind. The fuel tank is at least 10,000 gallons with a big ladder going up the side. It’s gigantic. We have absolutely no use for it. We have our own fuel tank that will last us the rest of our life. Just getting it out of there would cost us a few thousand dollars. Someone is willing to give us some money and take it away. I am all for it. But anything over a thousand dollars, Council has to declare surplus.
Mr. Marrie asked, so he will pay us $2,000 and will pay the cost of getting it out of there?
Mr. Metzung replied, yes.
Mr. Saponaro asked, it’s not been used? There’s nothing in it?
Mr. Metzung stated, I suspect it has been empty since they left. I don’t think there is any product in it. I don’t know if the plastic containers have any value to them. We are going to give two of those to Highland Heights to use for their purpose. We are going to use one for our own de-icing.
The Committee recommended Item #6 for approval.
7. Motion to authorize acceptance of bid from R&K Electric and expenditure in the amount of $26,974 (base bid - $25,724 plus $1,250 contingency for debris removal and backfill) for Driveway Lighting (SOM Center Road at Mayfield Branch Library).
Ms. Wolgamuth stated, I tried to give you as much detail as I could without getting too crazy. The low bid was $25,700. The Library is willing to kick in 50% of that. Given the situation with the purchase agreement and the fact that the lighting is something the Village wants to do, I think they feel that a 50% share is fair.
Mr. Marrie stated, this came up through suggestions of residents at Citizen’s Advisory. I don’t think the Library ever really asked for lights. Am I correct or not?
Mr. Marrelli replied, yes and the Planning Commission did. When the driveway was designed, they insisted on a walkway on the south side. Lighting was discussed, but it was set aside because no one knew if the lighting in the parking lot of the Library would be sufficient to bounce off the driveway. We find out as time goes by, it is pitch black over there. It’s time to put the lights up. We were trying not to, but we can’t. They are paying half of it.
Mr. Saponaro stated, we originally budgeted $40,000.
Mr. Marrelli stated, we are going to get almost $13,000 back.
Ms. Wolgamuth stated, had we done the lighting at the time that we put in the driveway, they paid 35% of that, so had we done the lighting then it would be 35%. Now they are at 50%.
Mr. Marrie stated, they did not ask for it. We did. It’s fine with me.
Mr. Saponaro was fine with it as well.
Mr. Marquardt does not approve of the expenditure.
The Committee recommended Item #7 for approval, at a vote of 2-1 (Mr. Marquardt opposed)
8. Motion to authorize acceptance of bid from Pat Flowers and expenditure in the amount of $21,409.25 for 2014 Street Striping Program.
Mr. Metzung reported, we had two bids this year.
Mr. Marrie stated we have used this company for a while. They do a good job.
The Committee recommended Item #8 for approval.
9. Motion to authorize acceptance of bid from Perram Electric and expenditure in the amount of $437,437.20 for traffic signal improvements at SOM Center and Wilson Mills Road; SOM Center and Seneca/Aintree Park Drive.
Mr. Metzung reported, this is the upgrade to those two intersections for the light poles. We are going to the mast arms that we have elsewhere in the Village. This will complete the SOM corridor part of it. The Chief is working on the Wilson Mills corridor part.
Mr. Marrie asked, this is an improvement of what we had before?
Chief Edelman replied, yes.
Mr. Saponaro asked, what did we originally budget for this?
Mr. Wynne replied, $450,000 for the arms themselves and $60,000 for engineering costs, so $510,000 total.
Mr. Saponaro asked, we have not dealt with the engineering aspect of this yet?
Mr. Wynne replied, correct.
Mr. Dinardo asked, does this take into account ADA?
Mr. Metzung replied, yes.
The Committee recommended Item #9 for approval.
10. Motion to authorize going out to bid for Senior Snow Removal program for 2014-2015.
Mr. Thomas stated, this is our annual initial preparation for information from companies. It takes a couple of months to do this.
The Committee recommended Item #10 for approval.
11. Motion to authorize expenditure in an amount not to exceed $20,000 to Squire Patton Boggs (US) LLP for legal fees for 2014 bond refunding.
Mr. Wynne reported, this is the bond refunding that Council just approved at the July 7th Special Meeting. As a result of refunding, we are going to save $370,000 in interest over the next 12 years. The net savings is $330,000 because we will have $40,000 in expenses or costs of issuance. $20,000 is the estimated legal fees and then Item #12 is an estimate of the fees for the underwriter selling the bonds for us.
The Committee recommended Item #11 for approval.
12. Motion to authorize expenditure in an amount not to exceed $12,500 to Stifel, Nicolaus & Company, Incorporated for underwriting fees for 2014 bond refunding.
The Committee recommended Item #12 for approval.
13. Motion to acknowledge receipt of financial reports for June 2014 and to approve of same as submitted.
Mr. Saponaro stated, nice job. It’s self-explanatory.
The Committee recommended Item #13 for approval.
14. First Reading of Ordinance No. 2014-18, entitled, “An Ordinance to provide for the issuance and sale of $1,100,000 of Notes of Mayfield Village, Ohio, in anticipation of the issuance of bonds for the purpose of conserving, preserving and enhancing the availability of open spaces in the Village by acquiring land or interests therein, and declaring an emergency.” Introduced by Mayor Rinker and Council as a Whole.
Mr. Wynne reported, our current Notes for $1,900,000 mature at the end of August. We are paying off $800,000 and selling the Note for $1,100,000. This will need to be passed this evening.
The Committee recommended Item #14 for approval.
15. First Reading of Ordinance No. 2014-19, entitled, “An Emergency Ordinance determining to proceed with the improvement of Eastgate Drive and Meadowood Drive between certain termini by constructing sanitary sewers, sanitary sewer service connections and manholes, installing, where necessary, force mains and storm sewers, and replacing, where necessary, pavement and driveway aprons, all together with the necessary appurtenances thereto.” Introduced by Mayor Rinker and Council as a Whole.
Mr. Wynne stated, this is for the sewer project. We have sent the notices out to the homeowners and gave them two weeks to respond with any questions or appeals. We have not heard from anyone.
Mr. Saponaro asked, what was the deadline?
Mr. Wynne replied, a couple weeks ago.
The Committee recommended Item #15 for approval.
16. Resolution No. 2014-19, entitled, “A Resolution declaring the necessity of renewing by levy a tax in excess of the 10-mill limitation and submitting the same to the electorate of Mayfield Village, Ohio.” Introduced by Mayor Rinker and Council as a Whole.
Mr. Saponaro stated, we received your memo, Ron. Based on what you have seen in terms of revenues that are not there, this is something we would have for the next five years.
Mr. Wynne stated, in five years it would have to go back on the ballot again as a renewal.
Mr. Saponaro stated as a renewal, not a replacement.
Mr. Marrie stated, from the conversation we had initially, I was leaning towards not putting it on the ballot and taking advantage of customer relations with residents. But after reading your memo and with your experience in finance, I have changed my mind. I would go with what you are saying on it because of the loss of revenue in other areas. We don’t know if they will cut it again. I am all for putting it on now.
Mr. Saponaro asked, does it come through, into the General Fund?
Mr. Wynne replied, yes.
Mr. Saponaro stated, this is my thought on it. If we are going to continue it, I would like to be able to know that we have put it somewhere, we haven’t just put it in the General Fund area, but actually put it into something. Maybe it’s part of the rainy day fund. Maybe we take it and use it to lower our debt. If you are recommending it, I am going to go that way, but I think we need to take it just a step further.
Mr. Wynne stated, right now, the specific language for the levy itself as it has passed over the years and as it was initially passed was that it was a general operating levy for the normal day to day operations of the Village which earmarks it for the General Fund. How we can accomplish what you want to accomplish is when we have excess revenues at the end of the year we increase our transfers out of the General Fund to the Bond Fund or the Sanitary Sewer Fund at that point in time.
Mr. Saponaro asked, so you will check with the Law Department to see if we are able to do that or should be able to do that?
Mr. Wynne stated, I will check with them.
Mr. Saponaro stated, I am not saying it shouldn’t go into the General. I am saying it should go into the General as it is supposed to but knowing that when it’s excess, it will be our intention to put it somewhere, for example, pay down something or put it into the Sewer Fund.
Mr. Marquardt stated, your argument is strictly from a financial standpoint. There was no evaluation saying what the impact is if we did not recommend this, or what the impacts we discussed might be. Earmarking something might be an alternative to say we recognize this is some surplus but it’s going to a specified use.
Mr. Saponaro stated, if you can find out from the Law Department how that can work, good will can be created, just in a different way.
Mr. Marrie asked, does this have to be passed tonight?
Mr. Wynne stated, it has to be at the County to make the deadline for the November election.
Mr. Saponaro stated, I wouldn’t not pass it. We should then outline our intentions.
Mr. Marquardt asked, will you have a proposal for us at the next Caucus? How to specifically earmark it?
Mr. Wynne replied, yes.
Mr. Jerome stated, I have been thinking about this for the past week and a half, what is something we can do with this to show the voters we are not dumping it in? Obviously we can use the money, but it’s something we would want to monitor over the next couple years. Maybe in five years we won’t need to do it again. But for now going with the loss of the money from the State and the Estate Tax, it will help lessen that burden for now. It’s something we should definitely monitor.
The Committee recommended Item #16 for approval.
17. Resolution No. 2014-20, entitled, “An Emergency Resolution authorizing and directing the Mayor and President of Council to enter into a Grant Agreement with the Ohio Environmental Protection Agency.” Introduced by Mayor Rinker and Council as a Whole.
Mr. Esborn reported, this is the SWIF grant from the Ohio EPA for $126,500 for the Civic Center driveway.
The Committee recommended Item #17 for approval.
ANY OTHER MATTERS
There were no other matters.
There being no further business, the meeting adjourned at 8:00 p.m.
Mary E. Betsa, Clerk of Council