Bay Village City Council Regular Meeting Minutes 3-4

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CITY OF BAY VILLAGE

Council Minutes, Regular Meeting                                              March 4, 2013

Council Chambers 9:11 p.m.

Paul Koomar, President of Council, presiding

Present:        Clark, Koomar, Lee, Lieske, Miller, Tadych, Young, Mayor Sutherland

Others

Present:        Law Director Ebert, Finance Director Mahoney, Recreation Director Enovitch,                       Service Director Galli, Community Services Director Bock, Operations Manager                         Landers

President of Council Koomar called the meeting to order at 9:11 p.m. in the Council Chambers of Bay Village City Hall, with the Pledge of Allegiance led by Michael Young, Councilman, Ward 4.

Following the roll call, Mr. Koomar called for a reading of the Minutes of the Special Meeting of Council held February 25, 2013.  Mr. Young MOVED to dispense with the reading and accept the minutes as prepared and distributed.   Motion carried 7-0.

REPORTS

Law Director Ebert had no report this evening.

Finance Director Mahoney had no report this evening.

Recreation Director Enovitch stated that on Saturday, March 16, 2013 the Easter Bunny Hop will be held at the Middle School Community Gym at 11:00 a.m.  The Bay Village Recreation Department Spring and Summer Program Brochure will be mailed to residents within the next two weeks.

Mr. Koomar asked if pool passes will be available on line this year.  Mr. Enovitch stated that pool memberships are not available on line due to the necessity to prove residency.

Director of Community Services Bock had no report this evening.

AUDIENCE

The following members of the audience signed in this evening:  Dick Majewski, Jennifer Smillie, Jerrie Barnett, Kent Silverberg, Evan O’Malley, Russell Thompson, Mike O’Boyle, Nancy Brown, Sue Fink

Nancy Brown asked if Mayor Sutherland or Finance Director Mahoney had any updates on the funding reimbursement claim submitted for Hurricane Sandy damages in the city.

Mrs. Mahoney stated that she met last week with representatives from Federal Emergency Management who are going to work with Mrs. Mahoney in submitting the reports.  Mrs. Mahoney noted that the process has been started.  It is estimated that claims for approximately $100,000 will be submitted.

Ms. Brown asked the process for street snow plowing.  Mayor Sutherland stated that normally the process begins when the Police Department notifies the Service Department that conditions are becoming slippery.  Operation Manager Landers and his staff then go into action calling in crews.  If it is known in advance that a major storm event is approaching, the Service Department will pre-treat the roads and have people on call.  The call-in is based on a three hour minimum.  Ms. Brown asked how many people would be called in for a snow event.  Mr. Landers stated that depending on the severity of the conditions, from 5 to 11 workers are called in.  For a salting only event, up to 5 employees are called in.  If it is a heavy snow event with city-wide plowing, up to 11 workers are called in.

Kent Silverberg, 24425 East Oakland, stated that in light of recent media events, he is hoping that the city will reconsider ordinances regarding residential cameras and their aim at neighboring homeowners’ property.  This would alleviate a lot of pain and suffering that Council, Mr. Silverberg personally, and a lot of the other Bay Village residents have been through.

Mr. Silverberg stated that a highly publicized court case was held wherein the defendants were sentenced.  Unfortunately there was no representation by the city.  Mr. Silverberg stated that he was saddened to see that because he does not think the residents were protected from what had happened.  The sentencing did not go their way or the way the city would have liked.

Law Director Ebert stated that City of Bay Village Prosecutor Gary Hotz did call him regarding the case.  There was a prior pre-trial discussion concerning what the court was looking at and what the city wanted.  There is also a private case downtown that actually is the controlling factor.  It has more teeth than anything Judge Hagen could do in Rocky River Court.  There was discussion at the pre-trial, about two weeks prior to the hearing.  The fact that Mr. Hotz was not present did not have any bearing on the case.  Mr. Ebert attended the previous pre-trial with Mr. Hotz.  The case downtown has the teeth that can be enforced by the Police Department, if it is a violation of the restraining order.

Mr. Silverberg stated that the violation of the civil court order was The City of Bay Village versus the Barringers.  Mr. Ebert stated that the city did not file a civil action.   That is a protection order.  The city does not have standing downtown.  A protective order is with the Court of Common Pleas.  There was ample discussion at the pre-trial.

Evan O’Malley, 24801 East Oakland, stated that four years ago he addressed Council regarding deer.  He would like to make the Council and Mayor aware that the deer situation is an issue in this city, and is an issue regionally.  The Council minutes of February 11 relate that Mr. Clark and Mr. Tadych spoke with the Avon Lake Police Department about the 60 reported deer accidents the last two years in Avon Lake, a majority of which were on Walker Road.  The Avon Lake Service Department picked up 44 dead deer.  A few years ago, Bay Village Police Chief David Wright stated that there 8 deer/automobile accidents.  Mr. O’Malley would like to receive the data from Bay Village as to deer accidents, and if the city is picking up a lot of deer.  Mayor Sutherland stated that this information will be obtained for Mr. O’Malley.  Mr. O’Malley continued, stating that the key points in deer related issues are the car accidents, the encounters with people, and disease.  There are eight deer behind their homes on East Oakland.  A residents’ five-year-old granddaughter was approached by a buck within a few feet, which could have resulted in the child being kicked, injured, or killed.  Mr. O’Malley acknowledged that deer culling is difficult, although it has been successfully accomplished in Solon, Ohio. Research indicates that over 200 people a year in the United States die in crashes caused by deer.  State Farm Insurance has estimated that deer hit 1.23 million vehicles between July, 2011 and June of 2012.  Over the past four years, deer hits have risen over 8%.  It is an issue and if Bay doesn’t do anything or look into it, and someone gets killed or injured, the question may be asked why the city didn’t do anything.

Operation Manager Landers stated that there are one or two deer per month, if that, picked up by the Service Department.  Mayor Sutherland stated that it is difficult to say where the deer were injured.  They may have been hit on the freeway and walked up the creek before dying.

Mr. Ebert stated that this is something that the city has looked at and talked about.  Avon Lake was going to authorize deer culling by bow and arrow but the ordinance was pulled off the agenda because residents were concerned about the proximity of the homes.  A police recommendation in Bay Village was that there would be a potential cause of problems having sharp shooters come in to the densely populated area of Bay Village.  The issue has been discussed frequently.  Council passed an ordinance last year prohibiting the feeding of deer.

Mr. O’Malley stated he realizes this is a complex issue.  He encouraged there be discussion for something to be done, even regionally or state wide with possible funding.  People are still feeding the deer which causes the population to grow.  The deer cause enormous financial damage as well, including loss of business to local plant providers and resale of homes due to negative curb appeal caused by damaged or missing landscaping.

Mr. O’Malley asked about the commuter rail discussion held last October at a meeting of officials of Bay Village, Lakewood, Cleveland and Olmsted Falls.

Law Director Ebert stated that the reason that Bay Village was invited is because the city has an agreement with the railroad prohibiting the number of trains that can go through Bay Village without the railroad being fined.  The agreement did not terminate at its tenth anniversary; it has no expiration date.  At that meeting, the issue of the possibility of commuter rail came up, and whether the West Shore cities would be opposed to it because of the agreement.  Mr. Ebert stated that the presentation was made that the city is not against commuter rail as long as it does not impact the agreement with the railroad.  The railroad, at that meeting, assured everyone that they would not stand in the way of commuter rail.  The problem is that commuter rail would have to make an agreement with the railroad for the use of the rail.  There hasn’t been any further movement on this topic since then.  No one has contacted the City of Bay Village recently.  Our agreement stands in place.  Rocky River, Lakewood, and Bay Village’s agreement is not going to be hindered in any way.  The cities agreed not to stand in the way but there has been no further impetus to move the commuter rail forward.

Mayor Sutherland added that a commuter rail study was done with the Northeast Ohio Areawide Coordinating Agency approximately ten years ago.  The cost for ridership was astronomical.  Mayor Sutherland asked who would be funding the commuter rail and was informed that it would be the communities.  Taxes would have to be raised because it wouldn’t get funded any other way.

Mr. O’Malley stated that he was concerned because he likes the agreement that the city has that limits the number of trains through Bay Village.  Mr. Ebert noted that the agreement has stood the test of time.  The highest number of trains per day through Bay Village averages between 2 and 3 trains per day with this agreement.

Mr. Clark encouraged Mr. O’Malley to report any violations of the deer feeding ordinance.

Nancy Brown informed Mr. O’Malley that a copy of a report of the animal activity that goes on in Bay Village is available from Mrs. Helen Miller at the Bay Village Police Department.  Mrs. Miller will email a report, which she does every two weeks to those interested.  The report includes activity including squirrels, chipmunks, dogs, and deer.  If the deer are injured and don’t run off on their own, the police are called to euthanize the deer and the Service Department removes the animal.  Ms. Brown stated that regarding the feeding ordinance, it is her understanding that the police officer has to specifically see a resident feeding the deer to issue a citation.

Ms. Brown asked Mr. Ebert if he has received her emails regarding Superstorm Sandy.  Mr. Ebert stated that he did receive Ms. Brown’s emails and should have something by the end of the week.

Mr. O’Malley reiterated that the citizens of Bay Village need to know that the officials of the city know that there are deer issues regarding safety, disease, and incidents of physical encounters with deer and children and adults.

In compliance with Section 121.22 of the Ohio Revised Code, Mr. Young MOVED to adjourn to Executive Session regarding labor contracts, contracts, personnel, and litigation, at 10:00 p.m.

Roll Call Vote:  Yeas- Clark, Koomar, Lee, Lieske, Miller, Tadych, Young.  Nays – None.  Motion passed 7-0.  Also present in Executive Session were Mayor Sutherland, Law Director Ebert, and Finance Director Mahoney.

Council reconvened in an open meeting at 10:20 p.m.  Present were: Clark, Koomar, Lee, Lieske, Miller, Tadych, Young.

ENVIRONMENT, SAFETY & COMMUNITY SERVICES COMMITTEE

Mr. Clark  introduced ORDINANCE No. 13-13, amending by reading in Section 1 to add that payment shall be made “subject to appropriate reimbursement in a commensurate amount from the Village Foundation,” AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT WITH AMERICAN FIREWORKS COMPANY FOR THE 2013 FOURTH OF JULY FIREWORKS DISPLAY, AND DECLARING AN EMERGENCY, and moved for adoption.

There being no further discussion, Mr. Koomar called for a vote on the motion to adopt Ordinance No. 13-13.

        Roll Call on Suspension of Charter Rules:

                Yeas – Lee, Lieske, Miller, Tadych, Young, Clark, Koomar

                    Nays-None

        Roll Call on Suspension of Council Rules:

                    Yeas – Lee, Lieske, Miller, Tadych, Young, Clark, Koomar

                    Nays–None

        Roll Call on Use of the Emergency Clause:

                    Yeas – Lee, Lieske, Miller, Tadych, Young, Clark, Koomar

                    Nays -None

        Roll Call on Adoption:

                    Yeas– Lee, Lieske, Miller, Tadych, Young, Clark, Koomar

                    Nays–None.

Mr. Koomar announced adoption of Ordinance No. 13-13, an emergency measure, by a vote of 7-0.

Mr. Clark introduced ORDINANCE NO. 13-14 AUTHORIZING THE MAYOR TO ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH SAFEBUILT FOR A TERM OF THREE YEARS AND DECLARING AN EMERGENCY.

Ordinance No. 13-14 was placed on First Reading.

PUBLIC IMPROVEMENTS /STREETS/SEWERS/DRAINAGE COMMITTEE

Mr. Miller had no report this evening.

FINANCE & CLAIMS COMMITTEE

Mr. Young stated that the Annual Appropriation Ordinance will be held for first reading until March 11, 2013, due to substantive changes, one being the SAFEbuilt legislation placed on first reading.   Mr. Young stated that due to a large number of changes possible in the ordinance he would like to postpone the reading of the ordinance this evening, noting that there is still time for three readings prior to the end of the month of March.  Mr. Young asked that nothing be read into his postponement of the reading, other than that there is going to be a lot of changes and he would like the Council to have another chance to look at the ordinance for revisions.

PLANNING, ZONING & PUBLIC GROUNDS & BUILDINGS COMMITTEE

Motion by Lee to authorize the Service Director to advertise for bids for roof repairs to the Bay Village Municipal Buildings.

Motion carried 7-0.

        RECREATION AND PARK IMPROVEMENTS COMMITTEE

        Mrs. Lieske had no report this evening.

SERVICES, UTILITIES & EQUIPMENT COMMITTEE

        Motion by Tadych to approve the donation of seven (7) scrap light poles weighing        approximately 1, 225 pounds to the Robertson Association, a 501(c) (3) non-profit organization for charitable, educational, and scientific purposes.

        Motion carried 7-0.

There being no further business to discuss, the meeting adjourned at 10:47 p.m.

____________________________                         ________________________

Paul Koomar, President of Council                     Joan Kemper, Clerk of Council

 

City of Bay Village

Council Minutes, Committee Session                                                              March 4, 2013

Council Chambers                                                                                 7:00 p.m.

Paul Koomar, President of Council, presiding

Present:        Clark, Koomar Lee, Lieske, Miller, Tadych, Young, Mayor Sutherland

Others

Present:        Law Director Ebert, Finance Director Mahoney, Community Services Director                        Bock, Service Director Galli, Operations Manager Landers, Recreation Director                          Enovitch.  Chief Lyons was in attendance for the first half of the meeting.

President of Council Koomar called the meeting to order at 7:00 p.m. in the Council Chambers of Bay Village City Hall, and the meeting was open to the public.

ANNOUNCEMENTS

Mayor Sutherland advised that last week Bay Village was featured on the Yahoo landing page for the property values being very stable.

Kyle Hyland, who grew up in Bay Village and played soccer for the Bay Schools, will be playing professionally for the Columbus Crew.

The State of the City address has been changed to May 7, 2013 and will be held at LaCentre in Westlake.

A letter was received today from Cuyahoga County Executive Ed Fitzgerald advising that due to the fact that Cuyahoga Community municipalities were overcharged on the property appraisal process, the City of Bay Village will be receiving a refund of $17,700.30.

The Cahoon Road Aerial Sewer Project is done and working well.  Minor items such as tree lawn work will be done in the spring.

The engineering for the Cahoon Road Sewer Replacement Project is almost completed, and the city is getting ready to move forward with that project.

The Ohio Department of Transportation has advised that they will provide 85% funding for Lake Road resurfacing from Longbeach to the westerly border of Bay Village.

Mayor Sutherland stated that her kudos this evening go to employee Curtis Krakowski for his inspections and project management of the Cahoon Aerial Sewer Project, noting that Mr. Krakowski has saved the city tens of thousands of dollars in inspection and architectural fees.

AUDIENCE

The following members of the audience signed in this evening:  Dick Majewski, Jennifer Smillie, Jerrie Barnett, Kent Silverberg, Evan O’Malley, Russell Thompson, Mike O’Boyle, Nancy Brown, Sue Fink

Jerrie Barnett, 316 Bayview Road, stated that she is concerned about her water bill.  She asked if the city goes with the new Cleveland Water Department proposal, will there be any control over how much Bay residents are billed for their water.  Mrs. Barnett stated her bill was $55.00 and there is only herself in the household.  The bill went up from $25.00, and the consumption of water was barely over what was paid in November.  Mrs. Barnett noted that the new meter was installed and she feels that the higher bill may be to pay for the new equipment.

The Mayor responded that there is not much control over the billing right now.  If help is needed, Mayor Sutherland’s assistant, Sue Kohl, will intercede on Mrs. Barnett’s behalf with the Cleveland Water Department to make sure it is accurate.

Nancy Brown reminded Council, the administration, and members of the audience that on Tuesday, March 5, at 7:30 p.m. at the Dwyer Memorial Senior Center, the first of three forums sponsored by the League of Women Voters will be held regarding regionalism.

Ms. Brown stated that she had an opportunity to work with Mrs. Jackson from the Cleveland Water Department and she is of wonderful assistance.

COMMITTEE OF THE WHOLE

Annual Appropriation Ordinance

Mayor Sutherland gave a Power Point presentation on the financial situation, concentrating on the General Fund of the city, noting that the budget process this year was unduly challenging.  There was a change over in personnel with the resignation of former Finance Director Steven Presley, and the appointment of the new Finance Director, Renee Mahoney.

Mayor Sutherland noted that revenues are impacted by the economy and the fact that the State of Ohio has been particularly challenging, and continues to be.  There have been severe cutbacks in the Local Government Fund, the Personal Property Tax has been lost, and the Estate Tax is going away.  Bay Village was extremely fortunate with the recent property tax appraisal in that the city ended up with only a 2% reduction, whereas some communities ended up with a 25 and 30% reduction in their values.

General Fund Administration is about $1.6 million of the budget, or 15% of expenditures, Police is $2.62 million, or 25%, Fire, not including the Emergency Paramedic Unit, is $1.5 million, or 14%, Service is about $3.6 million, or 33%, Building is about $400,000, or 3%, Community Services is $212,000, which is 2% of General Fund expenditures.  There is $844,000 in transfers so the total expenditures for 2013 are about $10,982,000.

When first looking at the budget it was thought there would be a $1.2 million deficit.  By moving things around and trimming things down, the deficit is now down to $482,857.  There are still things to be moved around.  Another firefighter will be moved from General Fund to the Emergency Paramedic Unit Fund, freeing up about $100,000 in the General Fund.  The Mayor stated that they will continue to look for ways where they can trim, but in order to reduce expenditures at this point they are down to eliminating programs, reducing personnel costs which would be benefits, work force reduction, and outsourcing.  Revenues can be increased through reducing income tax credit, increasing user fees such as the trash fee.  The full paramedic levy can be collected, and the percentage allowed to be taken from cable bills could be taken.  At this time the city is taking 3% but is allowed by the state to take up to 5%.  The Mayor will be looking to Council to come together and look at a combination of reductions and revenue increases in order to bridge the gap.

Mr. Clark stated that the city is also going into labor negotiations at this time.  This does not factor any wage increase.  If a wage increase happens, the gap does get larger.

Mayor Sutherland stated that a budget is a working document.  It will have to be massaged through the year, due to the fact that the city is in negotiations and is unsure when that will be completed.  Things will come up, as last year, when Superstorm Sandy occurred and there were costs associated with that event.

The Mayor stated that this gap is not insurmountable.  The gap of $800,000 year was faced last year, as well as $600,000 the year before, and $400,000 to $500,000 the year before that.

Mr. Young stated that at this point in time there is a proposal for first reading of the Annual Appropriation Ordinance.  The committee did look at some of the capital components this evening, and some of the proposed capital expenditures were just received this evening.  There are a number of changes that Mr. Young would consider making, and he would rather do that in the Finance Committee meeting scheduled for Friday, March 8 at 7:00 a.m.  Before discussing revenues, the committee would like to look at cost savings that would not hurt the safety of the city.

Mr. Clark noted that the challenge is with no General Reserve Fund.  There was approximately $1.3 million in the General Reserve Fund, three years ago.  The budget must be balanced by the end of March.

Mr. Young noted that the city is looking at a reduction in Estate Tax.  About $400,000 is budgeted in revenue for this year, which is basically leftover from last year.  That will not come in next year, which adds to the problems going forward.

Mr. Koomar suggested a walk-through of the budget, fund by fund, for a high level discussion and to respond to any questions from Council.

The following comments were made:

Transfers came from the Accrued Benefits Fund in the amount of $30,000, and from the General Bond Retirement Fund in the amount of $30,000, to balance the General Fund in 2012.

Ambulance Fees – Revenue for the past two years has been an average of $270,000.  The 2013 Budget is set at $300,000 is due to a change in fees.  The current rate was not in place for the full year in 2012.

Licenses and Permits – $262,000 is budget for 2013.  Revenue for 2012 was $237,000.  The Finance Committee felt comfortable with the higher budget number for 2013 after looking back historically at previous years.

Municipal Income Tax – The General Fund, Accrued Benefits Fund, and Equipment Replacement Fund is funded from the Municipal Income Tax Fund.  At the end of 2012, a change in the allocations to those funds for the 2012 year reverts back to the allocation percentages previous to 2012.  By Councilmanic action, the breakdown of the allocations will have to be addressed.  Mr. Young noted that the Accrued Benefits Fund receipts show income of $102,000 and $122,000 for the Equipment Replacement Fund.  The two funds should show the same amount, and the discrepancy will have to be addressed.  The allocations in 2012 were 96% General Fund, 2% to the Accrued Benefits Fund, and 2% to the Equipment Replacement Fund, as opposed to 94% General Fund, 4% Equipment Replacement Fund, and 2% Accrued Benefits Fund.  Legislation must be prepared to return to the 2012 adjusted allocations.  The legislation cannot be retroactive.  Mr. Young would like to discuss the Equipment Replacement Fund further before placing the legislation on the next Council agenda.  He noted the low interest rate currently and the fact that there is not a negative aspect to paying off debt for equipment replacement over time with the low interest environment.

Expenditures- Mr. Clark noted that it appears that the cost of the Fire Department has gone down.  The reason for the reduction is that property tax millage has been reallocated to the Emergency Paramedic Unit Fund.  The total of the two funds is $2.5 million.

Mr. Young noted that the differences are not large for personnel between 2012 and 2013 because there were not large salary increases.

Clerk of Council – Salary figure should be adjusted due to the 1.75% increase.  Personal Services includes wages and benefits.  The Clerk does not receive hospitalization benefits.

Transfers to Parks and Recreation from the General Fund – The amount of $305,000 in 2012 increased to $387,000 in 2013.  The Service Department, Parks and Recreation employees’ hospitalization and benefits were being charged to General Fund.  It was moved to Parks and Recreation to present a more realistic showing of how much it costs to run the Parks and Recreation Department.

Transfer to EPU Fund from the General Fund – No longer necessary due to the reallocations of property tax funds.  An additional fireman will be transferred to the EPU Fund reducing the deficit in the General Fund by $100,000.

Fire Pension Fund – Mr. Young added the Fire Department full time and overtime, and Paramedic full time and overtime, and multiplied it by 24% which is the Fire Pension payment.  It calculates to $426,168.  Mrs. Mahoney stated that the pension must now be paid monthly so there will be 13 months of payments in 2013, accounting for the last quarterly payment of 2012.  An additional $56,000 will be paid each year for the next three years.

Equipment Replacement Account No. 240 – Mr. Koomar stated that the opening balance is $960,000.  The exchange of Revenue and Expenses throughout the year ends the year with a balance of $57,000.  Mrs. Mahoney stated that any revenue from bonding out in 2013 is not shown in the account at this point.  Mr. Young stated that the purchase order has not been placed yet for the Fire Truck for $535,000.  Chief Lyons stated that the purchase order was placed last year.  Mrs. Mahoney stated that the expense falls in 2013.  Mr. Clark noted that the expense was approved at the end of October in 2012, because a price increase was scheduled for November 1.  Mr. Clark thought the amount was factored into the debt schedule for 2012.  Mr. Clark stated that the debt schedule for 2012 indicates debt incurred in the amount of $1,080,000.  This large amount had to include the fire truck.

Account No. 282 – Accrued Benefits Fund – The beginning balance is $140,000, and end of year balance for 2013 is $3,800.  Mr. Young stated that this is just a projected expense.  Two meetings ago it was discussed adjusting it by $75,000 or $80,000.  Mrs. Mahoney stated that one fireman, and possibly one policeman is retiring.  Mr. Young stated that he would prefer to take debt out for the Equipment Replacement, rather than changing the Accrued Benefits allocation.  We want to have enough funds in the Accrued Benefits Fund.  We don’t want to have too many people retire and have to come back to Council to replace funds taken out.  Mr. Clark added that we would have to figure out what the economics of the Accrued Benefits Fund pay-out would be and what the salary savings would be if that person wasn’t replaced.

Account No. 350 – Special Assessments.  Mr. Ebert has completed the court transaction to clear out the fund.  The General Fund will receive the residual funds.

Chief Lyons asked Mr. Koomar if the Council at this point is not replacing the firefighter retiring this year.  Mr. Clark stated that he does not think any determinations have been made.  He is just trying to work out the economics in terms of the budget.  Chief Lyons commented that he is going through the candidate interview process and wanted to know if he is spinning his wheels or if he should proceed.  Mr. Koomar stated that this is just the first cut of the Committee of the Whole to go through, see where we end up, and have a higher level discussion of where we are.  Mr. Clark noted that you can’t really budget for Accrued Benefits unless you have known retirements.

Account No. 493 – Bradley Road Improvement – Mr. Galli stated that they are in the process of closing out the project right now.  It is funded by a $ 1.25 million grant, with whatever portion remaining funded by a $1.25 million zero interest loan.  At this point, only about half of the loan amount will be used.  Mr. Koomar stated that there is money in the account, approximately $1 million.  Mr. Clark stated that there was a large advance from the Infrastructure Improvement Fund.  There are still amounts to be paid out.  Mrs. Mahoney asked Mr. Galli to let her know how much there is left to be paid out.  Mr. Clark stated that the final number came in below what was originally estimated.

Waldeck Estate Fund – Mr. Young stated that there was discussion earlier with Mrs. Fink who noted that there should be revenue from interest posted.

Health Insurance Fund – Mrs. Mahoney stated the Health Insurance Fund reflects the new insurance rates.  Mr. Clark commented that the Health Insurance Fund budget for expenditures includes the potential for claims, includes the stop loss insurance premium and the administrative charges by Medical Mutual.   Mr. Tadych and Mr. Clark noted that the stop loss insurance was adjusted per specific occurrence to save money on premiums.

Account No. 580 – Sewer Fund- Mr. Young commented that the sewer rental fee charged to residents basically pays for the service of the sewers and the finances necessary for the Bay Village share of the Rocky River Waste Water Treatment Plant expenses.  There are no funds coming in for the capital improvements for sewers.  As a city, we cannot afford the costs for projects that are EPA mandated without looking at trying to recoup some of those costs through an additional fee.  Mr. Young suggested bonding for these projects over a 25 year period and the actual payment of the improvement be covered by the residents through an additional sewer fund payment.

Mr. Clark stated that the city has applied for grants.  Those have not been received but we have $3.5 million worth of sewer projects we know must be done.  One was the aerial sewer in Cahoon, one is the Cahoon Sewer for the Lark area that needs to be done, and one is the pump station work that needs to be done.  Before anything is done to assess a capital sewer charge, the costs over a long term will be looked at very closely, what is received in public funding and how best to equitably split that to make sure no one is too disadvantaged.  Rocky River charges $25.00 per quarter for a capital sewer charge.

Estate Tax – The revenue line item is indicated at $400,000 for the 2013 budget.  That will be phased out next year, with the possibility of some residual payments.  Mr. Koomar noted that due to this phasing out the 2014 Budget may have an $800,000 deficit.

Property Taxes – Mr. Young noted these will stay constant for the next three years at their present rate.  Mr. Clark commented that if the State initiates House Bill No. 5, municipal income tax, that will also have an impact.

Property Tax Roll Backs – Mrs. Mahoney explained that property tax roll backs come from the State of Ohio.

Cable Television Fees – At this time the revenue is projected for 2013 at $167,000.  Last year the revenue was $155,000 at 3% of franchise fees.  If the franchise fee was increased to 5%, the maximum allowed by the state, it would garner an additional $100,000 in revenue.  Mayor Sutherland stated that in order to increase the percentage, Council would merely pass an ordinance and then let the cable company know the percentage for the city has been increased.  Mr. Tadych noted that each percent represents about $50,000.

Community Gym Equipment Replacement Fund- Account No. 231 – Mr. Koomar informed Mrs. Mahoney of the agreement with the School Board that requires a deposit in the fund each year to be set aside for needed repairs.

Parking Fines – Mrs. Lieske commented that fees were increased last year, but revenue is budgeted at less.  Mr. Young stated that he would surmise the revenue would probably be more.  It was budgeted from a conservative point of view.

Newsletter Advertising – The revenue for newsletter advertising should be posted to the Community Services Fund.

Street Construction – Mr. Koomar asked if there will be a component of potential debt in the account for the annual repaving.  Mrs. Mahoney has a placeholder in the account.  Mr. Clark stated that between the overlay program and the annual enhancements, the expense is expected to be over $1 million this year.  Part of that has been financed with bond debt in the past.  The other part we’ve done as a transfer out of the General Fund.  Mr. Young stated that Mr. Miller, as Chairman of the Public Improvements Committee, will study this as well.  There is a list of streets for him to review.

Police Pension Fund/Fire Pension Fund – Mr. Young noted that postings will be double checked.  The change in property tax allocations and resultant shifting of personnel is reflected in these funds.  To properly fund Fire Pension, Mrs. Mahoney stated that an additional $102,000 was needed.  Mrs. Mahoney will send the Finance Committee the detail on this additional amount.

General Bond Retirement – This will be a work in progress.

Refuse Collection – Mr. Lee asked if there is enough protection in the Fuel Recovery for the increases in fuel prices.  Mr. Young stated that there was an increase in the last contract for the point where the fuel recovery becomes active.  It is felt that the $25,000 in the account will cover the need for fuel recovery fees.

Mrs. Lieske asked about Green Team revenue.  It was explained that these were grant funds.

Police Department Part Time Wages are dropping down to $88,600 in 2013 from $115,000 in 2012.  The same amount of overtime is budgeted for 2013.  Mr. Young stated that overtime wages are paid at one-and-half times the rate.  It would be preferable to see a substantive drop in overtime than in part time.  The Police Chief will be asked for information.  The increase in hospitalization is due to the fact that there were fewer officers.

Fire Department Wages – Mr. Young stated that historically there has been a large bump in overtime wages at year end.  The Fire Chief stated that it has been high due to understaffing.  Discussion will have to include the fact that with another retirement the overtime wages would be higher before a decision is made about filling the position.  Mayor Sutherland stated that she did give the Chief permission to begin the process of interviewing candidates.  The Mayor noted that three shifts of eight officers per shift will keep overtime wages down.  Mr. Young stated that the time it takes to hire an officer is problematic and it might be advisable to look into changing the process of doing background checks for police and fire candidates.

Mr. Koomar asked for a spreadsheet of the wages for the Fire Department and the Emergency Paramedic Unit for review, including pension and health care.  This will be provided for both the Finance Committee and the Council of the Whole.

Fire Department Training is showing an increase from $4,700 in 2012 to $7,500 in 2013.

Telephone Expense – Mr. Young questioned the total telephone expense in all accounts of $64,000.  He asked to receive information concerning the breakdown between cell phones and land lines.  More detail will be provided.  There are no pay phones in any of the city buildings.

Mr. Miller asked if there is any anticipated savings if the city goes to a new phone system.  The Warwick Communications representative stated that there will be no savings in the new system.

Mr. Clark asked if the Nixle upgrade will be included in the budget.  Mrs. Mahoney stated that she did put it in with the Fire Department, Account No. 240.  Mayor Sutherland stated that an ordinance will not be necessary for the contract for Nixle since the amount is less than $15,000.  Mr. Clark stated that he would prefer some formal action, such as a motion to proceed, to document the action.

DARE Account No. 295 – Ms. Popovich has informed Mrs. Mahoney that the remainder of the grant was returned last year.  The amount showing in the budget is assumed to be residual.

Mr. Young stated that the fund should be closed out and the $22,000 posting credited to the General Fund.  An expense to close out the account will need to be appropriated.

Outside Legal Expense – Mr. Clark stated that the thought was that there was duplication in budgeting expenses related to the refunding of the Police Station Bond Issue done last year.  Mrs. Mahoney stated that the amount shown is for self-issued debt, and the amount of $10,000 is shown for safe harbor.

Mr. Koomar asked if $320,000 is part of the reimbursement for the Service Department Salt Garage.  Mr. Galli stated that a plan must be submitted for spending the funds in order to receive the funds.  Mayor Sutherland stated that the city does not necessarily have to use the building in the same way as before, but the building must be rebuilt.

Mr. Miller asked for an explanation of Accounts No. 820 – Cahoon Memorial Park, and Account No. 830 – Cahoon Library.  He asked if this is the cost for managing the trust.  Mrs. Mahoney stated that the amounts needed in the funds are transferred from the General Fund to cover various expenses.  Mrs. Mahoney stated that if the money is not spent or needed, the transfers do not need to be made.

Bradley Road – Account No. 493 – The $1,125,000 was transferred in from the Infrastructure Improvement Fund with the revised appropriation.  When the loan money is received, the amount will be transferred back to the Infrastructure Improvement Fund.  Mr. Galli has a final change order for the project ready for approval.

Infrastructure Improvement – Account No. 494 – The $1,050,000 was transferred in for the Cahoon Road Aerial Sewer improvement.  This amount will be transferred back to the Infrastructure Improvement Fund after completion of the project and process of the loan by the state.  Mr. Galli advised that the first payment of the loan will begin 6 months after completion.  The first payment will be due December of 2013, and must be factored into the debt schedule.  Mrs. Mahoney stated that payments are set for a period of thirty years.

2013 Proposed Capital Improvements

A report of 2013 Proposed Capital Improvements was distributed to Council.

Mr. Young noted that sewer improvements are an EPA mandate and must take priority over work on the Community House and other municipal buildings.  Putting the sewer improvements into the debt schedule will free up funds to begin prioritizing work on municipal buildings.  Mr. Young stated the question remains as to how to prioritize the repairs in order of preference.

Mr. Koomar stated that the reports have just been received this evening.  Going through and understanding the scope of some of these projects is important.

Mr. Young noted the importance of keeping up the Community House.  He stated that a lot of work is needed which is not itemized on the report, as well as an estimated cost.

Mayor Sutherland stated that there are two items on the list to be done at the Service Garage that are mandated by the EPA and must be completed by 2014.

Mrs. Lieske asked if there is anything planned for fixing the clock outside city hall.  Mayor Sutherland stated that the clock was disconnected after the storm.  It is still leaking in the clock tower and the clock may not be operational until the area is dried and all the repair work is finished.

Mr. Young stated that there may be additional items to add to the 2013 Proposed Capital Improvements list.

Mrs. Lieske asked if there has been any review of the steps by the cabin in Cahoon Memorial Park that lead up to Lake Road.  Mr. Galli stated that as soon as the weather permits the steps will be inspected to see what can be done in-house.

Mr. Koomar asked Mrs. Mahoney what she is comfortable with for debt issuance at this point.  Mrs. Mahoney stated that the debt limit has been reached for 2013.  There is room for about $400,000 for 2014.  Mr. Young stated that sewer improvements will affect the amount of money that can be bonded out.  Mr. Clark noted that there are five bond issues being paid at the end of 2013: a 2003 (2), 2006, 2007 and 2008, amounting to about $575,000.

The General Bond Retirement tax millage for 2013 was not changed.

Mr. Koomar asked if the debt schedule he received from Mrs. Mahoney recently is reflected in the 2013 budget.  Mrs. Mahoney stated that $1.9 million is included in the budget, but there is nothing in place for debt for the 2013 budget.  The improvements and equipment replacement for 2013 need to be analyzed further.

ENVIRONMENT, SAFETY AND COMMUNITY SERVICES COMMITTEE

        American Fireworks Company Contract

Mr. Clark stated that the ordinance will be presented this evening for the contract for the 2013 Fourth of July fireworks.  Half of the $11,000 contract price must be paid by April 1, 2013.

Donations were received last year through the Village Foundation, covering two years of fireworks.  The city will pay the contract and seek reimbursement through the Village Foundation.  Mr. Tadych stated that it would be nice if someone would step forward to donate the 2014 Fireworks.  Mr. Lee suggested an amendment by reading to the ordinance referencing the fact that the cost of the contract is subject to reimbursement by the funds received through the Village Foundation.

        SAFEbuilt Agreement

This agreement involves a reconfiguration of the Building Department services, overseeing plan reviews, inspection services, code enforcement, contractor registration and licensing.  Mr. Clark called upon Mayor Sutherland for comments.

Mayor Sutherland stated this is a company that they would like to contract with to provide the services as described.  Should the city go down this road they will be able to save $254,000 in 2013, in a combination of direct savings, revenue that is retained, and cost avoidance.  Annualized, it would be a savings of about $435,910.  Besides offering these services, they will be expanding the hours of operation of the Building Department to 40 hours per week.  There will be inspections on Fridays.  It should be a very seamless transition.

Mr. Koomar asked if SAFEbuilt will, under this proposal be taking over the services of some of the city personnel.  Mayor Sutherland stated that this is correct.  Law Director Ebert is preparing a contract incorporating the items that the Mayor has discussed and recommendations by Council, all of which were gone over with the SAFEbuilt representatives when meeting with them last week.  The contract has a 90-day out clause so the three year agreement can be terminated by either party with 90 days notice.  Commencement date is May 1, 2013.  Mayor Sutherland stated that the SAFEbuilt representatives will speak with the city employees this week.

Mr. Lee asked if SAFEbuilt has done this successfully in other communities.  Mayor Sutherland stated that this company has 140 clients across the country and has successfully provided a range of services from full operations to just some portions of services to some communities.  Mayor Sutherland visited one of their communities in Michigan to see how the operation performed, and talked with the City Manager.  References provided are very favorable.  Contractors and residents like their services.  They will interview all of the city employees, and have a 90% retention rate of hiring folks out of existing building departments.  Mayor Sutherland looks forward to a good partnership with SAFEbuilt.  Mr. Ebert stated that SAFEbuilt will collect 85% of the permit fees; the city will retain 15% of the permit fees.  SAFEbuilt will incur the cost of the employees, bring in their own technology, and their own vehicles.  They actually have a much better computer software system; the one that we work with now is a cumbersome system.  They attend all meetings and go to court when necessary.  Their office will be in the former police station.  A lease arrangement is to be worked out.  There are some improvements that need to be done in the former police station that need to be addressed.  They have volunteered to split the cost.  Mr. Galli will work with Mr. Sears to provide the actual costs of those improvements.

Mr. Clark asked if the ordinance to be submitted at the special meeting this evening for first reading should be held until the final issues are worked through.  Mayor Sutherland stated that she would not advise that.  Mr. Koomar suggested putting the ordinance on first reading this evening.  Mayor Sutherland stated that she would not advise that.  Mayor Sutherland stated that there is no reason to hold up.  Mr. Lee asked if the ordinance is placed on first reading this evening, is the time line discussed by the Mayor still feasible.  The Mayor stated it is not feasible.  That creates difficulties for informing employees.  It is unknown if the representatives will come in to the city this week if the ordinance hasn’t been passed, knowing that we are still tweaking a couple of things.

Mr. Young stated that he would ask that this be discussed further in the Executive Session this evening.

Mr. Galli stated that the proposal has been well investigated and thought out.

Nancy Brown asked if Building Inspectors will be on the road looking at housing and structures that need to be addressed.  Mayor Sutherland stated that eventually, that is the plan.  Mrs. Brown stated that there are many eyesores in the city.  The Mayor said that the city used to have the walk-around inspection program, but because of budget cuts it was suspended.  It is the city’s intention to reinvigorate that program.  Next summer will be targeted.

Mr. Koomar stated that he believe that walk-around inspections is a proactive way of maintaining the housing stock, helping property values and residents with re-sales.  The needed improvements do affect the over-all appeal of the city when they are completed.

PUBLIC IMPROVEMENTS, STREETS/SEWERS/DRAINAGE COMMITTEE

Mr. Miller had no report this evening.

FINANCE & CLAIMS COMMITTEE

Mr. Young had no further report this evening.

PLANNING, ZONING & PUBLIC GROUNDS & BUILDINGS COMMITTEE-Lee

Request of Service Director to advertise for bids for roof repairs for City of Bay Village municipal buildings

Mr. Lee stated that this follows on the resolution of the insurance claim for the 2010 hail storm damage.

RECREATION & PARK IMPROVEMENT COMMITTEE

Mrs. Lieske had no report this evening.

SERVICES, UTILITIES & EQUIPMENT COMMITTEE

        Donation of scrap light poles to Robertson Association

Mr. Tadych stated that these seven poles have been stored behind the building of the Service Center and are no longer of use to the city.  They will be donated to a non-profit company.  Mr. Galli stated that as part of the good-housekeeping requirements of the Environmental Protection Agency, they have cleaned out the barns and hope to have a public sale of items.  An employee of the Service Department belongs to the Robertson Association, a non-profit association in West Virginia who can use the poles for lighting in their cave exploration work.

Mr. Tadych stated that he spoke to a scrap company in Cleveland and they offered 11 cents per pound.  The poles would have to be taken to the scrap company.  The Robertson Company will not scrap the poles, but put them to good use in their non-profit activities.

The Committee Meeting of Council adjourned at 9:11 p.m.

_____________________________                                   __________________________

Paul Koomar, President of Council                                 Joan Kemper, Clerk of Council

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