Finance Caucus - September 3rd 2013

COMBINED MINUTES OF THE MEETING OF THE SAFETY AND
SERVICE COMMITTEE AND FINANCE CAUCUS
Tuesday, September 3, 2013 – 7:15 p. m.
Main Conference Room – Mayfield Village Civic Center

The Combined Meeting of Safety and Service and Finance Caucus was held on Tuesday, September 3, 2013, in the Main Conference Room at the Mayfield Village Civic Center.  Mr. Delguyd called the meeting to order at 7:30 p.m.

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Present: Mr. Delguyd and Mrs. Cinco

Also Present: Mr. Wynne, Chief Edelman, Mr. Metzung, Mr. Marrelli, Interim Chief Carcioppolo, Mr. Dinardo and Mrs. Betsa

1) Repair to kitchen roof at 470 SOM Center Road (J.R. Carpentry, Inc. - $13,257.00)

Mr. Marrelli stated, I don’t know if you had a chance to go up there and look at it or not, but we own this big stone castle up there. Right now the roof over the kitchen area has been leaking for quite a while.  It’s getting moldy and nasty in there.  I guess it all boils down to what we do with the building long-term.

Mrs. Cinco asked, and, what do we do with it long term?  Mr. Marrelli showed a diagram of the area.  In between 3 and 4 near the Parkview Softball Fields would be number 4.  That building is right back here.  Several people have thought that that would be a great location for some kind of a coffee shop or a little restaurant like a Fisher’s Tavern kind of ordeal.  My thoughts were if we can get the building in a condition that we can show it to restaurantuers and maybe rent it to them and let them do the buildouts.  It’s in a commercial zone. It’s not in a residential zone. The first 350 feet is beyond that.  It would serve the softball fields, Parkview Pool, and down the road it can be part of The Grove contingency. The pathway will come right through the backyard.  I just think it would be silly to take it down to have somebody come up later and say, can we do something over here?  I just think the building is just too nice to tear down. 

Mr. Delguyd asked, nice, being the façade is nice? Mr. Marrelli stated, well, the outside of it is all sandstone.  It has a reflecting pond in the front yard. We have parking for probably 200 vehicles out there already, the softball parking.

Mr. Delguyd asked, that’s gravel, right?  We will have to change it.  Mr. Marrelli stated, it doesn’t have to change. It can stay like that. We don’t have to pay the EPA fees for stormwater because the water runs through it.  It could stay like that.  The point is if we spend $13,000-14,000 now we can try to market it and see if we can get somebody that wants to turn it in to a restaurant.

Mr. Delguyd asked, are we anywhere near, have we done anything? Mr. Marrelli replied, this would be a first.

Mr. Delguyd asked, it’s not like we have approached anyone?  Mr. Marrelli replied, no, we have not. But we have talked to other people in the business, like a Winking Lizard or something like that. I am pretty sure that they would look at it and say, if you are going to rent it to us for extra cheap.

Mrs. Cinco asked, do we want it? Mr. Marrelli replied, that’s the question. 

Mr. Dinardo asked, is there a liquor license there?   Is there any available in the Village?

Mrs. Cinco stated, this needs to go to Caucus for discussion.

Mr. Delguyd asked, what’s the timing? What’s the cost benefit? Mr. Marrelli replied, before winter.

Mr. Delguyd stated, if I say, you have a 90 day extension, don’t fix the roof for 90 days, market it, take a look at it.  I will be honest, I am not really thrilled about being a landlord.  I would prefer to just sell them the land extra cheap then rent it to them extra cheap.

Mr. Dinardo stated, I don’t think you would want to sell it.  It’s too close.   Mr. Marrelli stated, you can’t sell the parking lot for the softball fields.

Mr. Delguyd stated, no, you would give them an easement to use.  If we gave you 90 days to start marketing it and it develops an interest, because we have to fix the roof by the winter or it is all ruined.  If you had 90 days we can see what kind of interest is there.

Mrs. Cinco stated, or 60 days.  You need time to get somebody in there to repair it. Mr. Delguyd stated, so 60 days to develop some interest and then we make a decision.

Mrs. Cinco stated, we should take it to Caucus tonight. Mr. Delguyd stated, we can take it to Caucus tonight.

Acting Chief Carcioppolo asked, if you didn’t do that, then you would be tearing it down? Mr. Marrelli replied, I guess.

Acting Chief Carcioppolo stated, that would be a conducive place to do fire training because it’s back far off the road. The other house on Wilson Mills would be something we could use for non-burn training, but we could still use the house before you tear it down.

Mr. Delguyd stated, that’s a good idea.  My point is if the roof was fine and you didn’t have to put $13,000 into it in 60 days, I would say okay, take a shot at it.  Is Ted the person to talk to about the liquor license?  Mr. Cinco replied, Diane Calta.

Mr. Delguyd stated, here’s the point, if a liquor license is available, then that’s not an issue.  Even a Yours Truly type of liquor license.    Mr. Dinardo stated, if you can’t get that, it’s not good. Mr. Marrelli agreed, that’s a deal killer, unless you just want to do sandwiches or something. Chief Edelman stated, then it’s a concession stand. Mr. Dinardo agreed.

Mr. Delguyd stated, we will present this at Caucus tonight.

Mr. Wynne stated, another issue of a minor concern is our insurance carrier has pretty much in so many words told us that they are going to drop this from the roster because it has been empty for so long.

Mr. Delguyd stated, you have 60 days.  If I had my preference, I would rather sell it to someone for a buck with a ton of easements and restrictions then lease it.  I would rather have the liability off of our books.  I don’t want to be a landlord. Mr. Marrelli stated, okay. Then they could lease us the parking lot back.

Mr. Delguyd stated, I would not give them the parking lot. What I would do is I would hold the land and do a building lease.  Even if it is a building lease for a dollar a year.  I would rather get all of the liability off. They would be responsible for build outs. Even if it is a start up restaurant, I would not have a problem with that. 

Mr. Marrelli stated, my thinking is if we put $13,000 in and we can get a business in there to serve that area.  Right now there’s nothing up there. 

Mr. Delguyd stated, I get that and I would be okay with putting that in there, but the problem is we have to put that $13,000 in 60 days and I am not going to put that in and then have them back out.

Mrs. Cinco stated, if you get some interest and you know that it’s obvious, then it would be worth it. Mr. Marrelli agreed.  The big question is, who’s going to go market it?  We should be going out to a broker and having them start showing it to someone.  Mr. Delguyd stated, that’s exactly what you do. 

Mr. Dinardo stated, work with Ted and we can go from there.  Mr. Delguyd asked, who does Musca’s work?  He’s retail. Mrs. Cinco stated, Ted can do it too. That’s what they are saying. Ted will know what to do.

2)  Excavation and backfill of the restroom facility at the soccer fields ($10,000 - change order)

Mr. Marrelli stated, I brought this up last time. They ran into concrete and had to shift the building over.

3) Tax Rate Resolution – 2013

Mr. Wynne reported, this is just a formality of the County. 

Mr. Delguyd asked, the 2%, it’s not changing? Mr. Wynne replied, not our income tax, our property tax base.  It’s where we tell them how we want our property tax dollars divided amongst the General Fund, Debt Retirement, Police Pension.

Mr. Delguyd asked, what do we tell them? Mr. Wynne replied, it’s a percentage.  It’s been the same for years.  There’s no change.  It’s just a requirement with the County so they know where to put the money when they get it.

4)Legislation regarding mandatory picked up contributions for Fire
5)
Legislation regarding mandatory picked up contributions for Police

Mr. Wynne reported, the State revised it pension rules for the Police and Fire Pension Fund to try and cover deficits that existed in the Fund. As a result, the employee contributions have gone up by about a quarter percent as of July 1st and then for the next couple years. We withhold the money from their paychecks and submit it to the Pension Fund on their behalf versus them paying it on their own into the Pension Fund.  They would like to see a Resolution where we say that’s what we are going to do.  We have it in place already at the existing rate.

Mr. Delguyd asked, we don’t actually have an unfunded liability right?   That’s not how the pension system works? 

Mr. Wynne asked, we personally? Mr. Delguyd replied, yes. Mr. Wynne replied, no, we don’t.

Mr. Delguyd asked, we don’t have it because that’s not how it works? Mr. Wynne replied, no. We pay what we are required to pay in. Whether the Plan itself has an unfunded liability, that’s at the State level.

Mr. Delguyd stated, so the risk there, if the State says hey they need more money for Police and Fire pensions they would cut local contributions.

Mr. Wynne replied, that’s the reason we need some more money.  They decided to handle it at the employee level by increasing the percentage.

6) New logging recorder (Stephen Campbell and Associates, Inc. - $15,595.00 - State bid)

Chief Edelman reported, the VOIP phones that we have now are incompatible with our recording device.  It will only record analog.  If someone calls in and they want to be transferred to a different number, we lose the call. 

Mr. Delguyd asked, because we have new phones? Chief Edelman replied, correct.

Mrs. Cinco asked, so we knew that we needed this? Chief Edelman replied, we did.  In fact, when we moved in to the station, Pat Dearden and I talked about it.  It just wasn’t done for whatever reason. Once a call is transferred, we lose the recording.

Mr. Wynne stated, we have $17,000 budgeted.

7) Hose replacement (Warren Fire - $5,590.00)

Acting Chief Carcioppolo reported, annual hose testing takes place every year to comply with NFPA Codes. The life expectancy is 10 years.  We have many different sections of hose approaching 20 years old.  The outer jackets are dry-rotted.  I don’t believe it is safe enough for us to even attempt testing because if it is pressurized to service pressure and it breaks, the hose will explode.  There is money budgeted for this. We have 4 different vendor pricings. This was the cheapest one.

Mr. Delguyd asked, how many hoses is this? Acting Chief Carcioppolo replied, this is 10 sections of 100 feet each.  It’s 1,000 feet of 5 inch large diameter supply hose which is what we would use to hook the hydrant to the truck.

Mr. Delguyd asked, what percentage of the total goes? Acting Chief Carcioppolo replied, on our rolling vehicles, that is about 1/3. 

Mr. Delguyd asked, we can expect a bill for this over the next 3 years?  Acting Chief Carcioppolo replied, no, we just replaced 1,000 feet last year on the other vehicle. The other vehicle we are going to take whatever sections we have that are best and make up the last truck with that.

Mrs. Cinco asked, so this should be it then? Acting Chief Carcioppolo replied, for this year, yes.

Mr. Wynne added, we spent $5,000 each year for the past two years. This is the third year. This might be it.

8) Tree Lawn Tree Maintenance (Tree Service Now – not to exceed $10,000)

Mr. Metzung reported, that’s thinning and razing trees, mostly in this neighborhood. I would not say exclusive.  It’s tree maintenance for well established trees.

Mrs. Cinco asked, that’s always in the budget too, is it not? Mr. Wynne replied, for the year we had $50,000 budgeted for tree purchases and tree maintenance. We have spent about $20,000 to date.

Mr. Delguyd asked, this would be another $10,000?  Mr. Wynne replied, yes.

9) Demolition of house at 6120 Wilson Mills Road

Mr. Metzung reported, the house has become vacant.  It is not in the Village plans to continue to rent it.  It flooded during one of our storms.

Mr. Delguyd asked, which house is this?  Mr. Metzung replied, right next to the old Library.

Mrs. Cinco stated, we talked about this in Caucus.

Mr. Metzung continued, I would like to remove that home. The other house will become vacant. Mr. Delguyd asked, which one is this?  Mr. Metzung replied, the closest one to the Library.  When the other house becomes vacant, we will tear that one down. I do not want to do that at the same time because if you do more than one home, you have to have them asbestos abated.   If you do one house at a time, you don’t.

Mr. Delguyd asked, can it be used for the Fire Training Program? Mr. Metzung replied, not by the School.  When we did it with the Stabile house, it was back in the woods.

Mr. Delguyd stated, if you can get free Fire training, that’s great.  If not because it’s a bigger issue, then fine.  Mr. Marrelli stated, the location has to be right for that.

Mr. Delguyd asked, in terms of what we are going to be putting there, are we just going to plant grass and then when the next one becomes vacant, which is next year?  Mr. Metzung replied, it may be later this year.

Mr. Delguyd asked, what are they planning to do? Mr. Metzung replied, lawn.  Long-term, straightening the driveway.

Mr. Delguyd stated, that helps the Village with traffic remediation and then the School District can figure out where they want to go from there. Fair enough.  No problem.

Mrs. Cinco stated, get some bids on that.

10) Sodium hypochlorite and muriatic acid for Parkview Pool (O.P. Aquatics - not to exceed $3,000.00 – change order)

Mr. Wynne reported, when Bill Thomas brought the initial requisition to Council, he estimated what our needs would be for the pool during the year.  We ended up using more this year than we had originally anticipated.  We have invoices adding to about $1,500 right now that are above what Council’s already approved. This is just to make sure we have enough to cover the remainder of the bills.

11) Legislation relating to dangerous nuisance and vicious dogs

This item will be discussed at Caucus.

12) Acquisition of ODOT property at 734 SOM Center Road

Mr. Metzung stated, this is the old ODOT salt bin.

Mr. Dinardo asked, we did due diligence in Phase I? Mr. Metzung replied, they did.  It was more of an abatement.  It was a consulting firm.  They were looking for asbestos and oil leaks. 

Mr. Delguyd asked, our purpose is to use this for the same reason, a salt bin? Mr. Metzung replied, the salt bin in one building and then demo the rest of it.  They have an old wooden building. We just want to clean it up.

Mr. Delguyd asked, is there anything we need to put in to it?

Mr. Metzung replied, the salt bin, not this year, but it will need some maintenance in the future.  It is a $250,000 structure. 

Mr. Delguyd asked, garage doors and everything looks good? Mr. Metzung replied, there’s actually no doors on the bin itself.  It’s the way it’s designed. There’s an awning over it.   It holds 2000 tons as opposed to our 500 tons.  Now we won’t go through the winters where I am calling the salt company going you have to send some today because I need it now.  I can store it now.

Mr. Delguyd asked, does that free up any room for you on the Service side? Mr. Metzung replied, yes. We will clear out the old salt bin and use that for storage.  It’s a win-win-win for us.

Mr. Delguyd asked, they weren’t paying taxes on it, so there’s no loss of revenue? Mr. Wynne replied, yes.

13) Capital improvement request for traffic signal and street light upgrade in 2014

Mr. Metzung stated, I just wanted to bring this to everyone’s attention.  The traffic pole by Heinen’s just gave up.  The rest of the poles are of equal age. It’s time to upgrade those.   If we are going to upgrade them, we might as well upgrade them,

Mr. Delguyd asked, which pole? Mr. Metzung replied, right in front of Heinen’s by Seneca and Aintree.

Mrs. Cinco stated, that has been up there a long time. Mr. Metzung agreed. There are three poles there. They are Village-owned.  The fourth pole is CEI. We have the same scenario here in the middle of the town with Village-owned poles.  At the one here, you can see the big bends in it.  You don’t realize how far out of kilt they are until they set the new pole. 

Mr. Delguyd asked, what is the request here?  Mr. Metzung replied, just to be aware of it.  We will have it in next year’s budget.

Mrs. Cinco asked, do you have a ballpark figure? Mr. Metzung replied, $250,000 an intersection. 

Mr. Delguyd asked, per intersection?  Mr. Metzung replied, yes.

Chief Edelman asked, does that include updating the traffic signals? Mr. Metzung replied, yes.

Mr. Delguyd asked, the software? Mr. Metzung replied, that’s something the Chief is working on.  It will have new equipment, but it won’t have the new software.  It will be integratable. They will be able to update it.

Mr. Delguyd asked, we are talking about $250,000 per intersection? Heinen’s for sure? Mr. Metzung stated, we are looking at the two intersections there.

Mr. Delguyd asked, you are up to $500,000? Mr. Metzung replied, yes,.

Mrs. Cinco asked, you are going to put that in the budget for next year? Mr. Metzung replied, correct.  We have intersections going down Wilson Mills. Those poles, we don’t have any wooden poles that hold any SPAN wires on any of the rest of our intersections. They are either owned by CEI or they are attached to metal poles. Someday you will want to upgrade all of those, but at this time we don’t have any more Village-owned wooden poles that we would be concerned with falling down in the streets.

Chief Edelman stated, the immediate concern is the wooden poles. After that, we can work on upgrading the system.

Mr. Delguyd asked, Ron, you will take this in to consideration for the 2014 budget?   Mr. Wynne replied, we will include it. There’s also grant money available out there that will help with it.

Mr. Delguyd asked, is there money from the Street Lighting Fund? Mr. Wynne replied, yes.

Mr. Delguyd asked, how much is in there? Mr. Wynne stated, I can check.  Mr. Delguyd added, it’s not anywhere near $500,000.

Mr. Metzung stated, the second half of that is, the street lights on North Commons and Parkview are Village-owned street lights.  Those are in need of bulb replacement. I am talking to the vendors, looking to get into LED lights.  As those numbers become more available, I would forward those.  I would like to do that next year also.

Mr. Delguyd asked, do you want bulb replacement on all lights in the Village? Mr. Metzung replied, no.  Most of our streetlights are cobra heads on the main streets and then we have the decorative lights on the other streets. Those are actually owned and serviced by CEI.  These signals are owned and serviced by Mayfield Village.   

Mr. Delguyd asked, and why is that? Mr. Metzung replied, the poles and lights that were available at the time that we did that neighborhood were not really what we wanted so we went out and purchased our own through a subsidiary of CEI at the time.

Mr. Delguyd asked, can we give it back to them? Mr. Metzung replied, no.  I don’t know what the payback period would be if we go to LED, with energy savings. You are looking at 10-15 years before you would have to change one.

Mr. Delguyd stated, that makes sense.  Ron can get it in the budget.

Mr. Wynne added, we have the bulb replacement budgeted for this year. Mr. Delguyd asked, are we using it all? Mr. Wynne replied, there’s around $30,000.  Mrs. Cinco stated, you need to get some prices for the light bulbs.

Mr. Delguyd stated, get some bids and numbers and we will go from there.

14) Fall-Winter 2013-14 Wildcat Sport & Fitness Rec Brochure (Digest Media - $5,763.38)

Mr. Delguyd asked, is this our part, or are we paying for the whole thing?  Mr. Wynne replied, we are paying for the whole thing.  I talked to Bill today. He has not worked out the numbers yet, but there will be a reimbursement coming to us from Mayfield Heights for their part and from Gates Mills.  We have had a relationship with Digest Media from previous brochures, so we just kept it that way. Everything is going through us and we will get reimbursed for it.  Also, I think we are going from 3 brochures a year down to 2.

Mr. Delguyd asked, do we have an idea of the cost the two cities took on associated with this or any possible revenue for it?

Mr. Wynne replied, there’s not supposed to be any additional cost.  I will be sitting down with the Finance Directors from the other cities and then we will sit down with the Finance Director for the School District, but there really are no additional costs to any municipalities.  Our labor is going to move to their facility and run their facility for them.  We will run all of our programs through that facility.

Mr. Delguyd asked, so we will basically keep it open for them? Mr. Wynne replied, yes. 

Mr. Delguyd stated, because I had gotten questions from people about they were getting gym space for free and now with the transition they are getting charged $1,200.  I didn’t get all the details.  I was wondering if we were charging for programs.

Mr. Metzung stated, I know for several years we have been paying for gym time over there.  It used to be free and then we had to start paying. 

Mr. Wynne stated, once Bill gets back and the Finance Directors meet, I will give you guys a full report financially as to exactly how this will be structured and what the impact is to us if anything. It is supposed to be designed where it is not a negative impact to the cities.

Mr. Delguyd asked, are they paying us to run this?  Mr. Wynne replied, no.

Mr. Delguyd asked, what about the revenue for the passes?  Mr. Wynne replied, that is all going to the School District.

Mrs. Cinco asked, the extra staff time, do we get reimbursed?  Mr. Wynne replied, we won’t have any extra staff. We will still have the same staff  time we have now.  Our staff will physically be on site there.

Mr. Delguyd asked, are you basically moving the whole Rec Department there? Mr. Wynne, just for bits and pieces of the day.

Mrs. Cinco asked, just parts of the day? Mr. Wynne replied, yes.  Our folks will be down there some parts of the day, some from Highland Heights and Mayfield Heights will be there other times.

Mr. Delguyd asked, we have always done this?  Mr. Wynne replied, we have always had a brochure.  We had our own brochure.  Now we have a brochure for the whole District.

ANY OTHER MATTERS

Mr. Delguyd asked, any other matters?  I did not see anything on the Community Room survey. 

Mr. Metzung replied, I don’t think there’s anything on the agenda.

Mr. Delguyd stated, okay, so digest it and think about it.

Mr. Wynne asked, remember when we put a halt on the sale of the two Tauruses?

Mr. Delguyd asked, because they did not come back at the Kelley Blue Book value?

Mr. Wynne replied, yes. We got two bids on them, one for $800 and one for $400.   The one who bid $800 per vehicle pulled out.  He saw the condition they were in. We just have the one for $400 apiece.  We actually had an employee interested in one who took the good one to the mechanic and the mechanic said, stay away from this thing.  He took pictures of it and showed that the frame is rusted and he said, if you buy this thing, you will have to put a couple three grand in to it.  We got quotes for $400 for each. The Blue Book on one is $1,800 and on the other is $900.  That’s for a vehicle considered in fair shape.  The bids we generally get are from dealers and not private parties. The dealer has to put some money into it to get it ready for the lot where they can sell it.  After hearing all of this and talking to our mechanic over at the Service Department and discussing the shape they are in, I am recommending to take the bid.  We spoke to the person who submitted the bid.  He is still interested.  Just get rid of them.

Mr. Delguyd asked, weren’t we looking at eBay?

Mr. Wynne replied, we are looking into ways to market these things differently instead of paying to advertise them in the paper.  Diane Calta stated if we pass legislation that allows us to pursue sale through eBay, we could do it.

Mrs. Cinco asked about Craig’s List. Mr. Delguyd stated, Craig’s List is very loosy-goosy.  At least on eBay you have to register your VIN numbers.  No one can come back to us and say, hey you sold us a lemon.  Full disclosure.  Take what you can get.

There being no further business, the meeting adjourned at 7:50 p.m.

Respectfully submitted,

Mary E. Betsa, Clerk of Council