Finance - September 16th 2013

 

MINUTES OF THE FINANCE COMMITTEE MEETING
Monday, September 16, 2013 – 7:30 p. m.
Main Conference Room – Mayfield Village Civic Center

The Finance Committee meeting was held on Monday, September 16, 2013 in the Main Conference Room at the Mayfield Village Civic Center.  Mr. Delguyd called the meeting to order at 7:30 p.m.

(Click here for a print friendly/pdf document)

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

Also Present: Council President Buckholtz, Mr. Wynne, Chief Edelman, Interim Chief Carcioppolo, Mr. Marrelli, Mr. Dinardo, Mr. Thomas, Ms. Wolgamuth, Mr. Esborn, and Mrs. Betsa

1. Discussion of a motion to authorize the sale by Mayfield Village of the following vehicles:

  • 2003 Ford Taurus (Black)
     Model 1FAFP53U33A204765 – $355.00
  • 2003 Ford Taurus (Grey)
    Model 1FAFP53U13A204764 – $355.00
    (Straw vote approved 9/4/13)

 

Mr. Delguyd replied, this item has been discussed.

The Committee recommended Item #1 for approval.

2. Discussion of a motion to authorize expenditure in the amount of $5,763.38 to Digest Media for Fall-Winter 2013-2014 Wildcat Sport & Fitness brochure.  (Straw vote approved 9/6/13)

Mr. Delguyd stated, we are paying this because we have a relationship with Digest Media. We are getting reimbursed for some of it.

Mr. Thomas stated, we brought in over $4,000 on the ads alone. Mr. Delguyd asked, this is not above and beyond the ads?  This is just printing? Mr. Thomas replied, correct. Mr. Wynne asked, the cost of the ads for a year or just this issue? Mr. Thomas replied, just for this publication. We are going to go back to just mailing to Gates Mills and Mayfield Village for our Spring/Summer brochure. We did a joint with everyone for Fall/Winter. We keep our own identity during the Spring and Summer months. This is only billed around the Wildcat Sport and Fitness.

The Committee recommended Item #2 for approval.

3. Discussion of a motion to authorize additional expenditure in an amount not to exceed $3,000.00 to O.P. Aquatics for sodium hypochlorite and muriatic acid for Parkview Pool through 2013 season (change order).

Mr. Delguyd asked, we already consumed this? Mr. Thomas stated, it is tough to estimate. Mr. Delguyd replied, $3,000 is not that much for this.  We are not ordering more and storing it for next year? Mr. Thomas replied, no. The season ended on August 25th. Actually, though, we are keeping it running a little bit because we are trying to determine a leak area. 

Mr. Marrie asked, we have a leak area again? Mr. Thomas replied, we are working on it. We will keep you apprised. At this point I do not have any information.

The Committee recommended Item #3 for approval.

4. Discussion of a motion to authorize additional expenditure in an amount not to exceed $10,000 for the restroom project at the soccer fields.  (Change order).

Mr. Marquardt asked, don’t we have a contingency on this $300,000 outhouse? Mr. Marrelli replied, no.  We never put that in there.  It was a design build project and we did not put a contingency in which we probably should have which would have put the price up $30,000 more or 10%.

Mr. Delguyd asked, on a design build project, isn’t it the design company’s responsibility to test? Mr. Marrelli replied, you don’t test for something that’s 800 square feet because if you bore four corners on an 800 square foot building, it would have cost $3,500.

Mr. Marquardt stated, so now it is costing $10,000. Mr. Marrelli clarified, no, actually, it doesn’t. That $10,000 is the contingency that we didn’t have before.  It’s going to pay for moving the building over and put some money aside for contingencies in case we run in to something later.

Mr. Delguyd asked, how much is the actual cost to move the building? Mr. Marrelli replied, $4,000.

Mr. Wynne asked, the actual change order? Mr. Marrelli replied, yes.  And $6,000 as a contingency.

Mr. Delguyd asked, what is the contingency? Mr. Marrelli replied, we are hoping nothing else happens.  We are putting in a bottle filler instead of a drinking fountain so the kids can go up and fill their bottles, but they are about $3,000, so we didn’t do that.  As the project is moving along, we are looking at options as we go.  I am trying to keep it down to no more money spent on anything.

Mr. Marquardt stated, it should be their liability. 

Mr. Delguyd asked, who is doing it? Mr. Marrelli replied, Cornice Construction.

Mr. Dinardo stated, normally the borings are provided by the owner.

Mr. Marrelli replied, we picked the site.

Mr. Marquardt stated, he took the contract.

Mr. Delguyd asked, even on a design build? Mr. Wynne replied, this wasn’t a design build. We gave them the specs.  I don’t believe we asked for a contingency number in the specs.

Council President Buckholtz asked, we gave them the location and the specs? Mr. Wynne replied, yes.

Mr. Marquardt stated, I am sure there was a contingency in this thing. Mr. Marrelli replied, there wasn’t. Mr. Dinardo stated, to keep the cost down, we went with no contingency and we dealt with any soil issues when they arose.  That’s essentially how we looked at this project because if we didn’t run in to any, we wouldn’t be talking right now. Mr. Marquardt is not so sure about this. 

Mr. Delguyd stated, if there’s time before Council, can we dig up the paperwork? Mr. Marrelli replied, okay. They already moved the building over.  I am already getting billed for shifting it over. Mr. Marquardt asked, so you went ahead and had it done without being authorized? Mr. Marrelli replied, no.  I thought I had an understanding when I brought it up at the Finance Committee meeting a couple of weeks ago. Mr. Marquardt stated, I thought in that discussion there was something said about us having contingencies but didn’t want to use it.  That’s what I recall. Mr. Marrelli stated, no. What I said was we have to move the building over about 30 feet and it was going to cost around $4,000. Mr. Wynne clarified, I think the conversation you are remembering is the one on the road program.  We had to have $100,000 change order on the road program because when they started tearing up the old concrete, there was an issue. Mr. Marquardt stated, it wasn’t that.

Mr. Delguyd remembers having a conversation about a site test for the new location. We said, it’s only $4,000 to move it and it’s $4,000 to do another site test. Mr. Marrelli agreed.  It was a wash.  We didn’t have a choice. We had to move it.

Council President Buckholtz asked, I wasn’t at Caucus. Why are we moving it again? Mr. Marrelli replied, because they ran in to concrete and water in the spot we told them to put it in.  At that point, it was like, you can’t build on this. Mr. Dinardo added, miscellaneous debris when they dug the hole.

Mr. Marrelli stated, every now and then you dig a hole and you find crap.  That’s what they found there. So we moved it. The dirt was good, so it was like, you have to move it. What option is there?

Mr. Marrie asked, so it’s not $10,000, it’s actually $4,000? Mr. Marrelli replied, yes, and $6,000 on the side if anything comes up later which I am trying to keep from happening. Council President Buckholtz stated, that’s not a lot of money for a contingency on a $300,000 project.

Mr. Marrelli stated, if we would have done a 10% contingency, I would have had $30,000 and I wouldn’t even be asking anyone for anything.  I would just say, it’s in the contingency, go ahead and move it. Mr. Marquardt is not remembering it the same. Council President Buckholtz asked for the Minutes. Mrs. Betsa presented the Minutes from the previous meeting where this item was discussed.

Mr. Delguyd suggested that the amount be changed from $10,000 to $5,000 with no contingency.

The Committee amended Item #4 to read as follows: 

Discussion of a motion to authorize additional expenditure in an amount not to exceed $5,000 for the restroom project at the soccer fields.

5. Discussion of a motion to go out to bid for demolition of house located on 6120 Wilson Mills Road.

Mr. Delguyd asked what the cost would be. Mr. Marrelli replied, not more than $10,000 to take down. Mr. Delguyd asked, any questions?  Mr. Marrie replied, no. They are just going out to bid right now.

The Committee recommended Item #5 for approval.

6. Discussion of a motion to authorize expenditure in an amount not to exceed $10,000 to Tree Service Now for tree lawn tree maintenance.

The Committee recommended Item #6 for approval.

7. Discussion of a motion to authorize expenditure in the amount of $15,595.00 to Stephen Campbell and Associates, Inc. for new logging recorder (Cybertech/NICE 27-channel recording system).

Mr. Delguyd stated, this is to be able to record both phone calls and be able to transfer analog calls. Chief Edelman added, digital too.  It came in under budget.

The Committee recommended Item #7 for approval.

8. Discussion of a motion to authorize expenditure in the amount of $5,590.00 to Warren Fire for hose replacement.

Mr. Delguyd stated, this was discussed at length.  This is the last piece of a three-year replacement.  Interim Chief Carcioppolo reported, we do have the other hose I told you we did have. We have more than enough of it so we are not going to have to buy more next year.

The Committee recommended Item #8 for approval.

9. Discussion of a motion to extend the TIF for Progressive for property tax year 2013.

The Committee recommended Item #9 for approval.

10. Discussion of a motion to extend the TIF for Governor’s Village for property tax year 2013.

Mr. Delguyd asked, does the purchase of the land that they just did this year affect us at all? Mr. Wynne replied, no.

The Committee recommended Item #10 for approval.

11. Discussion of a motion to extend the TIF for Skoda Minotti properties for property tax year 2013.

The Committee recommended Item #11 for approval.

12. Discussion of a motion to extend the TIF for Heinen’s for property tax year 2013.

The Committee recommended Item #12 for approval.

13. Discussion of a motion to extend the TIF for 700 Beta Drive for property tax year 2013.

The Committee recommended Item #13 for approval.

14. Discussion of a motion to acknowledge receipt of financial reports for August, 2013 and to approve of same as submitted.

Mr. Delguyd asked, Ron, are you going to talk about this at Council?

Mr. Wynne replied, I will highlight certain things.  We just got our tax collections for the month of September. They were another several hundred thousand dollars above.  Right now we are about $600-700,000 ahead of last year’s.  If you remember, we budgeted $13 million and we actually hit $15 million last year so we are on pace to be somewhere between $15.5 and $16 milion.

Mr. Delguyd asked, do we slow down in the fourth quarter considerably?  Mr. Wynne replied, no we don’t. Once we get by bonus season which is through June, then we average regularly anywhere between $1 to $1.2 million a month for the rest of the year.

Mr. Marrie asked, do they always pay their bonuses in the front of the year?  Mr. Wynne replied, yes.  The bulk of them pay in the front of the year, but they do pay quarterlies also. We see a little bit of a spike.  February and March are the two big months for us.

The Committee recommended Item #14 for approval.

15. Discussion of the First Reading of Ordinance No. 2013-14, entitled, “An Emergency Ordinance authorizing and directing the Mayor to enter into a Lease Agreement with John and Alyce Enkler for the purpose of leasing the real estate located at 6500 Wilson Mills Road, Mayfield Village, Ohio   44143.”  Introduced by Mayor Rinker and Council as a Whole.

Mr. Delguyd stated this is the house directly across from Beta.  Mr. Wynne replied, heading West on Wilson Mills.  It’s the last house on the left before you get to Raleigh, next to the open lot.

Mr. Delguyd asked, this is just a renewal? Mr. Wynne replied, no, the tenant we had in there vacated the premises at the end of May.  At that time we were getting $500 a month rent from that tenant. We did a little bit of market research on the size of the house and the area, so we bumped it to $650.

Council President Buckholtz asked, what is the term? Mr. Wynne replied, month to month. All of our rental properties are month to month so we have the flexibility to move.

Mr. Delguyd asked, how do we find tenants? Mr. Wynne replied, a lot of it is word of mouth. This particular one, their daughter knew the people in the house who were moving. They contacted us versus us going out and marketing it.

The Committee recommended Item #15 for approval.

16. Discussion of Resolution No. 2013-11, entitled, “An Emergency Resolution reaffirming, amending and restating existing pick-up plan under the Ohio Police and Fire Pension Fund’s new procedures for reporting for eligible employees of the Mayfield Village Police Department.”  Introduced by Mayor Rinker and Council as a Whole.

Mr. Delguyd stated, this was discussed last time.

The Committee recommended Item #16 for approval.

17. Discussion of Resolution No. 2013-12, entitled, “An Emergency Resolution reaffirming, amending and restating existing pick-up plan under the Ohio Police and Fire Pension Fund’s new procedures for reporting for eligible employees of the Mayfield Village Fire Department.”  Introduced by Mayor Rinker and Council as a Whole.

The Committee recommended Item #17 for approval.

18. Discussion of Resolution No. 2013-13, entitled, “A Resolution accepting the amounts and rates as determined by the Budget Commission and authorizing the necessary tax levies and certifying them to the County Fiscal Officer.”  Introduced by Mayor Rinker and Council as a Whole.

Mr. Wynne replied, this is just confirming with the County how we want our tax dollars divvied up between the General Fund, the Bond Retirement Fund and Police Operating Fund.  It’s the same allocations as we have had historically.  No changes.

The Committee recommended Item #18 for approval.

ANY OTHER MATTERS

 Mr. Marrie wanted to comment on the nice remarks from the County about Mr. Wynne from when he went down for the meeting on the TIFs. They were extremely pleased.

Mr. Wynne stated, on the Lease Agreement, it’s effective November 1st.  I don’t know if you want to pass it tonight, or we can pass it in October if you want to let it go another month.  I would like to have it passed before they take occupancy.  Mr. Delguyd stated, I don’t see any reason not to pass it tonight.  Mr. Marrie agreed.

Mr. Marquardt asked, did you find anything out about the liquor license?

Mr. Esborn replied, I have been investigating it.  There are a number of different licenses that the State gives.  Depending on what you want to do at the location, whether it’s serving closed containers, serving open containers, whether it’s liquor, wine or beer, there’s a whole menu.  When I called down to Columbus the first time, I said, okay, let’s take Fisher’s Tavern.  If I wanted a liquor permit that would allow me to do what Fisher’s Tavern does, what’s the availability?  There’s even a couple different routes to get to what Fisher’s can do.  There’s one all-inclusive permit and then you can get different permits and build it up. For each of those, there’s not availability, but there are different ways. There’s another permit you can get if you can satisfy certain conditions. The bottom line is, there’s not a liquor permit sitting out there ready for a new restaurant to take it and operate like an Austin’s or Fisher’s.

Mr. Marrie asked, of any kind?

Mr. Esborn replied, no, that’s the other side of it.  There’s not a permit there for the taking to open up a restaurant like Austin’s or Fisher’s and run as a restaurant and bar.  But there are other ways depending on what kind of alcohol service you want to do. There are other ways to get permitted.  It doesn’t foreclose on having an establishment that sells alcohol.  When I called down there, they didn’t say, yes, here’s a permit or package of permits available today.  It would be a little bit of a challenge but I would say it’s not impossible.

Council President Buckholtz asked, what prompted the push on this? Mr. Marquardt replied, they are talking about fixing a roof for $13,000 on 470 SOM.

Council President Buckholtz asked, someone might want to put a restaurant in there? Mr. Marrelli replied, we want to go down that avenue and see if it’s worth doing.

Mr. Delguyd stated, the roof is going to cost $15,000. We weren’t sure what we were going to do. Mr. Marrelli stated, the way it’s going to shake out is we are either going to fix it if we can get a business to go in there.

Council President Buckholtz asked, do you have someone? Mr. Marrelli replied, no we don’t. We have feelers out trying to find a restaurateur. Mr. Esborn added, we brought a couple restaurateurs in there to look at it and a broker who has some experience with restaurants.  We have gotten some good feedback. We are on two different tracks. We are trying to find out as much as we can about the liquor license and simultaneously see if there’s interest out there.  I have a number of restaurateurs that I am in contact with.  I am waiting to start bringing them in to see the property.  I have made a lot of contact.  We are trying to figure out the liquor license at the same time.

Mr. Marquardt asked, is there a temporary patch for the roof? Mr. Marrelli replied, we can put a tarp on it to keep the water off for now. Mr. Marrie suggested, temporarily protect it somehow. Mr. Marrelli will see if he can get the Service Department to go out and buy a tarp.    Council President Buckholtz stated, until you get somebody in there.

Mr. Delguyd stated, we are probably going to do something where we lease it to someone for a dollar and they are responsible for all buildouts. Mr. Marrelli added, the location screams for some kind of use.  The Library, the ballfields, the trail, the pool.

Mr. Delguyd asked if there were any other matters. There were none.

There being no further business, the meeting adjourned at 7:58 p.m.

Respectfully submitted,

Mary E. Betsa, Clerk of Council