Finance - October 20th 2014

MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, October 20, 2014 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center

The Finance Committee meeting was held on Monday, October 20, 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, Dr. Parker (7:34 p.m.)

Also Present: Mr. Jerome, Chief Edelman, Mr. Metzung, Mr. Thomas, Chief Carcioppolo, Mr. DiNardo, and Mrs. Betsa

1. Discussion of First Reading of Ordinance No. 2014-22, entitled, “An Emergency Ordinance authorizing and directing the Mayor and President of Council to enter into the First Amendment to Site Lease Agreement.”  Introduced by Mayor Rinker and Council as a Whole.

Mr. Marquardt stated, we received a memorandum from the Law Department on this item. 

Chief Carcioppolo explained, this is about the UPS System.  I received a bill for periodic maintenance on the UPS system in the basement for $6,000 a year.  I questioned it because the original UPS system we had was replaced with some grant money in conjunction with MARCS in our basement.  Our UPS system was old.  I questioned why we were paying the full amount and MARCS was not splitting it with us.  The Director of MARCS Radio System, myself, our Law Department, Ron Wynne and Diane Wolgamuth met and we collectively deemed that they would help pay for it.  That’s where the 50% came in. 

Mr. Marquardt asked, 50% of $6,000 a year?

Chief Carcioppolo replied, that’s what the cost is yes.  In the past, when we had our old one, it was between $2,000 and $4,000 a year for the periodic maintenance.  Ultimately we have to have it because we have to have an uninterrupted power supply.

Mr. Jerome asked, how long have we had this?

Chief Carcioppolo replied, three years, I believe.

Mr. Jerome stated, it was new, so it was under warranty. That’s why all of a sudden this thing popped up.

Chief Carcioppolo replied, right.  We didn’t have to pay for it for three years because that was part of the original warranty and purchasing of it.  I am not paying $6,000.  It actually came up in 2013 but it took so long to get it hammered out between the two of us. That’s why we are here a year later. There were stickers on it that said, if this breaks, call MARCS Help Desk and tell them to fix it.  I said, if you guys have stickers on it that say, call you and fix it, you should be paying the periodic maintenance on it.

Mr. Jerome asked, was there an outstanding bill from last year?

Chief Carcioppolo replied, no, it just didn’t get done, to my knowledge.

Mr. Saponaro asked, we used grant money in order to purchase it initially?

Chief Carcioppolo replied, that’s my understanding, yes. 

Mr. Saponaro asked, is there grant money for maintenance and things of that nature?

Chief Carcioppolo replied, no.  It was a communication grant from Cuyahoga County.  As far as who applied for it, I don’t know. That may have been them.

Mr. Marquardt asked, any other questions?  There were none.

The Committee recommended Item #1 for approval.

2. Discussion of a motion to authorize the purchase of 1,200 tons (+/- 10%) of road salt from Cargill De-Icing Technology at a cost of $51.22 a ton for the winter season through ODOT purchasing.

Mr. Saponaro asked, what was the cost last year?

Mr. Metzung replied, $29, I believe.

Mr. Saponaro asked, $29 a ton?

Mr. Metzung replied, yes.

Mr. Saponaro stated, I remember when it was close to $80.

Mr. Metzung replied, correct.  I apologize because I meant to bring the map showing what others are paying.  $55 is low.  Lake County, who has Morton Salt for their provider this year, I think is $80.  Morton is right there in Lake County.

Mr. Marquardt asked, why would they use Morton’s?

Mr. Metzung replied, that was the low bid for their County. The State goes out to bid for all the Counties. Cargill got 90% of them.  There’s one other vendor. I  am not quite sure what they got.  You have the one for Morton at Lake County. I will bet there is at least 8 counties that got no bids at all.  I don’t know what they are going to do. The range is from $80-90.  $55 is good.  Morton will make more money putting it on a train or a boat and sending it somewhere else.

Mr. Marquardt asked, any other questions? There were none.

The Committee recommended Item #2 for approval.

3. Discussion of a motion to approve expenditure in the additional amount of $170.00 to Morton Salt for summer salt fill.  (Change order – original amount $71,850.00)

Mr. Metzung stated, when they make deliveries, they are not precise. This comes out to additional salt we received that was over that original p.o.

Mr. Jerome asked, how much salt is used on average?

Mr. Metzung replied, we average 2,500 tons a year.

Mr. Jerome asked, the summer salt fills half and this other 1,200 will be the rest?

Mr. Metzung replied, the summer salt fill, this was the first for the State, due to all of the problems they had last year.  They went to this program.  Apparently it was done many years ago, but this is the first I ever recall doing it.

Mr. DiNardo asked, are you going to be storing the salt in the ODOT building?

Mr. Metzung replied, that’s where it’s at.

The Committee recommended Item #3 for approval.

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

The Committee recommended Item #4 for approval.

ANY OTHER MATTERS

Mr. Marquardt asked, any other matters?  There were none.

There being no further business, Mr. Marquardt, seconded by Mr. Saponaro, moved to adjourn.  The meeting concluded at 7:38 p.m.

Respectfully submitted,

Mary E. Betsa, Clerk of Council