Finance - November 17th 2014

MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, November 17, 2014 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center

The Finance Committee meeting was held on Monday, November 17, 2014 in the Main Conference Room at the Mayfield Village Civic Center.  Mr. Marquardt called the meeting to order at 7:30 p.m.

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Present: Mr. Marquardt, Mr. Saponaro and Mr. Marrie

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

1. Discussion of a motion to authorize expenditure in the amount of $71,835.00 to Greve Chrysler Dodge Jeep for the purchase of three Dodge Chargers for Police Department.

Chief Edelman stated, at Caucus, I did not have the price for the three cars.  I have received the quote and this is the actual amount.

Mr. Marrie asked, are we going to sell the old ones separate?

Chief Edelman replied, they are almost useless to trade in.  We will sell them at some point.

The Committee recommended Item #1 for approval.

2. Employee healthcare and hospitalization coverage – passed at Special Meeting November 3, 2014.

3. Discussion of Resolution No. 2014-29, entitled, “An Emergency Resolution declaring the official intent of reasonable expectation of the Village of Mayfield on behalf of the State of Ohio (the Borrower) to reimburse its Eastgate/Meadowood Sanitary Sewer Conversion Fund for the Eastgate/Meadowood Sanitary Sewer and Water Lines Project, Loan Project No. CA17R/CA18R, with the proceeds of tax exempt debt of the State of Ohio.”  Introduced by Mayor Rinker and Council as a Whole.

Mr. Wynne stated, for the loan part of the financing on this project, we have to let the OPWC know how we are going to handle the loan proceeds. We are just instructing them that we will pay the contract directly and they will reimburse us as opposed to them paying the contractor.

The Committee recommended Item #3 for approval.

4. Discussion of a motion to authorize expenditure in the amount of $2,500 and to enter into a one-year contract with Geofeedia for on-line investigative tool.

Chief Edelman reported, this is the social media monitoring software we discussed last time.

Mr. Marrie stated, your report on that was very thorough. 

Chief Edelman replied, thank you.  I put together a policy statement that Mr. Marquardt had asked for.  I hope that answered some of your questions.

The Committee recommended Item #4 for approval.

5. Discussion of a motion to acknowledge receipt of financial reports for October 2014 and to approve of same as submitted.

Mr. Marquardt asked, our revenues are dropping, aren’t they?

Mr. Wynne replied, we have lost the estate tax which we knew was coming. Our income tax revenues were down by about $250,000. As of the collections for this month we are down about $190,000 compared to last year.  Coming in to this year, I was not fully expecting our income tax revenues to drop. They still might.  Those are the really two big items.

Mr. Marrie asked, will Progressive get bonuses before the end of the year?

Mr. Wynne replied, yes they will. In the month of December we collected about $1.3 million. Historically December has been about a $1 million month.  If we have a $1 million month next month, our shortfall compared to last year will be $450,000-500,000 which is what I expected coming into the year.  No surprises.

Mr. Marquardt asked, what do you expect the trend will be next year?

Mr. Wynne replied, it’s impossible to tell. The best feel we get is generally after February because that is when the bulk of the corporate bonuses get paid out.  Hopefully we will know by the end of February.

Mr. Marquardt asked, are there any other sources drying?

Mr. Wynne replied, the employer taxes this year were constant.  Corporate income taxes were down about $300,000 this year compared to last year. Other sources, no. The big thing was the estate tax.  We lost local government funding, but that equated to maybe $20,000-30,000. That’s run through a cycle.  It’s been the same now for the past couple years.  This is the first year where the estate tax has totally dropped off.

Mr. Marquardt asked, there’s no more estate tax coming?

Mr. Wynne replied, we will still get some revenue here and there but it will be very minimal.

Mr. Marquardt asked, we have nothing else dropping off?

Mr. Wynne replied, no.

The Committee recommended Item #5 for approval.

6. Discussion of a motion to authorize expenditure in the amount of $6,900 to King Excavating for drainage at the Falkner property.

Mr. Marrie asked, where is that property?

Mr. Metzung replied, behind SOM, South of SOM Court where Beecher’s Brook runs through between Fisher’s Tavern and SOM Court.  This is the back corner by the path. This guy’s been getting water.  We had CEI fix the problem they had. To help drain this we are going to just do a little drainage swale.

The Committee recommended Item #6 for approval.

ANY OTHER MATTERS

Mr. Marquardt asked, any other matters?

Chief Carcioppolo reported, the rear differential failed on our ladder truck.  It’s a 2006.  We realized it when I had the annual maintenance done. When they looked at the fill plug that has a magnet on it, there’s a lot of medical particles on it.  When I brought it down to have the brakes inspected, I had them drain fluid to have an analysis done. When they did that, they said there wasn’t any point in doing an analysis because of all of the chunks of metal that came out.  There were some other large chunks still inside.  I had them take it apart.  There’s dime-size pieces of steel inside the rear differential. 

Mr. Saponaro asked, what caused that?

Chief Carcioppolo replied, all the gears failed.  The one gear looked okay, but the other one was shredded pretty bad. They were surprised it still even drove. To put it back in service temporarily until we came up with a solution is not a good alternative because there’s a possibility of locking up while it is driving.  It’s in parts down there right now.  It’s inside.  It will be approximately around $10,000 to fix it.  It’s not under warranty any more.

Mr. Saponaro asked, what year is it?

Chief Carcioppolo replied, it’s a 2006.  It has a five year warranty from Meritor Axles.  Meritor’s the largest independent axle manufacturer in the world.  The warranty is only five years.  I need to have it fixed. 

Mr. Saponaro stated, this is an emergency, you need it passed tonight.

Chief Carcioppolo replied, I don’t have the exact price yet.

Mr. Saponaro asked, what is it not going to exceed?

Chief Carcioppolo replied, I think it should be under $15,000. He said it should be around $10,000 to replace the new rear differential. They will have to do the new bearings for the rear wheels because the oil bath in the rear differential goes out to the wheels and lubricates the bearings and the metal in the fluid ate up the bearings.

Mr. Marrie asked, why don’t we put a maximum on it now and pass it tonight?

Mr. Saponaro stated, if you need it done.

Chief Carcioppolo stated, I just want to know what direction I can take.

Mr. Marquardt stated, I don’t have a problem putting in a not to exceed.  You have to do it.  It’s an emergency. But make sure that you get all the documentation and talk to legal. In my opinion, this is unacceptable.   It only has 11,000 miles on it.

Chief Carcioppolo stated, it could have been a defect when it was put together.  For how much we use it and how much we drive it, it’s not - plus the shop said they have never seen one go bad in a fire truck.

Mr. Marquardt asked, see if there is someone that can inspect the thing and give an educated opinion on it.

Mr. Saponaro stated, talk to legal.  They may tell you when they remove it what they need to do with all the pieces and parts.

Chief Carcioppolo stated, I have them saving everything.

Mr. Marrie stated, maybe it would pay to pay a third party to give you an opinion of what they thought was the problem.

Mr. Saponaro stated, the people who are doing it can give an opinion. They are not going to give an expert opinion.  I would talk to legal.  They should be able to give an opinion just based on their experience, period.  If we need to take it up another step, we can do that. You may need them to take pictures along the way.

Chief Carcioppolo replied, I have pictures on the computer.

Mr. Saponaro stated, every phase that they break down, they may have to take a picture.

Chief Carcioppolo stated, they have the gears out right now. They sent me pictures of that. I have them on the computer.

Mr. Marquardt stated, get a full description of all of the work that has to be done and talk to legal to see if there’s something that can be done. It just doesn’t seem reasonable.

Mr. Wynne asked, who’s doing the work on it?

Chief Carcioppolo replied, All American. They are an authorized service center for Meritor Axles. 

Mr. Saponaro stated, I recommend approval not to exceed the $15,000.00.  The Committee was in agreement.

Chief Carcioppolo stated, as soon as I get the final quote, I will send it to everyone.

Mr. Marquardt asked, any other items?

Mr. Metzung stated, I have a dead truck in the shop now.  The motor is getting torn off. I don’t know what we are looking at as far as the cost goes.  I don’t know if it is going to exceed the Mayor’s spending limit and I am not looking for anything at this point.  I just wanted to let you know. 

Mr. Marquardt asked, what truck?

Mr. Metzung replied, our intermediate salt truck.

There being no further business, Mr. Saponaro, seconded by Mr. Marrie, moved to adjourn.  The meeting concluded at 7:43 p.m.

Respectfully submitted,

Mary E. Betsa, Clerk of Council