President of Council Marjorie Harlow called Council to order on
December 1, 2010, at 7:00 p.m.
The governmental body and those in attendance recited the pledge of allegiance.
Mrs. McNear took roll call. Present were Council members Diehl, Emerson, Galster, Hawkins, Squires, Vanover and Harlow.
The minutes of November 17, 2010 were not available.
ELECTION OF VICE-PRESIDENT OF COUNCIL
Mr. Diehl nominated Mr. Vanover and Mr. Squires seconded. Mr. Vanover was appointed by acclamation.
COMMUNICATIONS - none
COMMUNICATIONS FROM THE AUDIENCE
Mr. Ed Knox, Springdale resident, said I am representing the senior citizens. We are trying to send packages to people associated with Springdale who are serving overseas. So far, we havent gotten any names so I thought I would take this occasion to go on television and let people know that we need to mail the packages within the next two weeks. If anyone knows of any service member who is serving overseas please contact me at 674-7755 or call the Community Center and leave a message for the board of the senior citizens.
Mrs. Harlow stated I have business cards from two Army personnel who recently came to Council. If you would like to take this contact information and ask them if they know of any people from Springdale who are serving.
INTRODUCTION OF NEW POLICE CHIEF AND ASSISTANT CHIEF
Mayor Webster said we engaged the services of the Ohio Association of Chiefs of Police to help us in this search. We think they did a marvelous job. They gave us a list of nine candidates. We elected to interview three internal and two external candidates. We had some very good, strong candidates and at the end of the process we thought the two I am going to introduce you to were heads and shoulders above the other candidates. Its with a great deal of pleasure that I introduce you to our new Police Chief, Lieutenant Mike Mathis and new Captain, Lieutenant Thomas Wells. They will be sworn in officially on January 19th. At the December 15th meeting we will swear in Sergeant Cumbow and health permitting, and Captain Hafer will also be honored on the 15th. Captain Hafer had surgery today and everything went well. We hope he has a speedy recovery and is back here with us on December 15. Our present Chief, Mike Laage will be back on February 2 so we can honor him.
Lieutenant Mathis addressed Council. I started here in 1986 and the City of Springdale has been a wonderful employer. I have been embraced by the Springdale family and I love this City. I consider myself as much a part of this City as anyone and it is my deep effort to be the best Police Chief that I can. I pledge to you that I will do my utmost to serve you all and the citizens. I appreciate the education, training and opportunity.
Lieutenant Wells said I echo Mikes comments. I have been here over twenty years and its been a privilege. Thank you for the opportunity.
Mayor Webster stated we also have the other two lieutenants with us, Lieutenant Neumann and Lieutenant McKee. That shows the kind of solidarity we have in our Police Department. These two gentlemen will be at the top of the heap as far as leadership is concerned but they will be very ably assisted by the other two very capable lieutenants.
2011 BUDGET PRESENTATION
Mr. Diehl reported the Finance Committee met November 23 to review the Citys budget for 2011 and we are presenting it to Council tonight for your consideration and approval. Mr. Parham will give you a brief overview and then we will review the budget by department. I would like to commend the Administration and department directors for their effort in reducing expenses for the upcoming year and on behalf of the entire Council I would like to thank the employees of the City of Springdale for their commitment and efforts to Springdale during these challenging times.
Mr. Parham stated by now you have had an opportunity to take a look at the 2011 Annual Budget. As you read through this document what will stand out to you very loudly is that revenues in the City of Springdale have declined tremendously and continue to do so. There are some things on the horizon that we know may occur, primarily there is a chance of the remaining GE (General Electric) jobs leaving the community as well as the reduction in labor force at the Avon Corporation. Those are two large employers in the City of Springdale. Originally last year it was indicated to us that we would lose the entire Avon base with the exception of three hundred people in their call center. Now it seems that other jobs will be retained. At this time last year, we were told we would lose approximately 1,200 GE jobs. We did lose those at the beginning of this year. We were also told that we would potentially lose the other 900 jobs. That is still a possibility. As you look at the comparison of our revenues from 2008 to 2010, you will see that we have suffered a loss of $3.5 million. That is about 18 percent of our revenues. At the same time, our earnings tax which serves as 75 percent of our revenue source, has seen a decline as well from 2008 to 2010 of $3 million. Weve tried to accommodate that reduction by lowering our expenses. Although we have reduced and continue to reduce our expenses, were fighting an uphill battle just trying to keep pace with the revenues. In 2011 we are projecting expenditures of $16,618,889 million which is about $1.3 million higher than our projected revenue for the same period of time. Our projected revenue is $15,222,206 million. Thats another widening of the gap. On page 5 you will see that the earnings tax for this year was budgeted at $11.9 million. We estimate that the number will come in at $11.851 million for this year. In 2011, we are expecting our income tax to decline to as low as $11.3 million. On page 6, it shows you the General Fund revenues less expenditures. We began 2010 with a balance of $4.1 million. We are projecting at the end of this year to be at $2.9 million and at the end of 2011 we are showing a $1.5 million balance. If you look at the 2010 five year budget, the numbers in 2010 showed about a $2.5 million end of year balance, 2011 showed a $728,000. When we presented the 2011 five year budget, it showed a balance of $919,000. We have made some adjustments and can discuss those as we go through the different pages. In response to an e-mail received from Mr. Galster that I shared with everyone, we identified some of the adjustments made to get to the number of $1.5 million. We have asked the department directors again, and they have worked very hard to do so, to help reduce our costs. We asked them to attempt to reduce their budgets for the third straight year. In 2009, we requested a 5 percent reduction. In 2010, they were asked to reduce it by 10 percent and in 2011, they were asked to attempt to reduce their budgets by another 5 percent. 2010 was a little easier for the 10 percent to be accomplished because we incorporated the furloughs and other cost containment measures. In 2011, there are no mandatory furloughs and no cost containment measures to the extent that there were last year. There are still some measures in place such as employees are not allowed to cash in any of their leave time. We are still trying to keep overtime down. Particularly when you look at the Fire Department, you will see a big bump in the personal service line and that is primarily due to overtime. If you look at page 7, you will see that not only was the Fire Department not able to reduce their budget by 5 percent, but it went up by 12 percent. There has been a lot of overtime required this year. There were a number of firefighters out on either injury leave or other medical leave. Those on duty at the time had to pick up the extra time. We have been trying to bring on more part-timers to hold down on the overtime and to cover those seats.
If you look at the Staffing section, beginning on page 7, you will notice we have tried through the years to not lay anyone off and to date, we have been successful. Instead, we have tried to achieve a reduction in the work force through attrition. At the end of 2011, there will be a total of 19 vacant positions throughout the organization; 7 police officers, 2 police clerks, 2 firefighters, in the Public Works Department 2 crew leader positions and 1 maintenance work along with an administrative assistant. In the Parks Department, we have reduced two maintenance worker positions and in the Administrative Office, the Senior Administrative Assistant position will remain vacant. One of the property maintenance inspectors will retire in 2011 and we will not fill that position. For the first time in the history of the City, we were unable to provide a cost-of-living increase for the employees in 2010. Unfortunately, we cannot provide that increase in 2011, as well. I dont think we can grant an increase and then hold our record of not having to lay anyone off. In 2010, the patrol officers did receive a pay increase because of their contract. Their contract called for a 3.5% increase in 2010. No other employees received an increase unless they had room to move up on their pay table. There are no mandatory furlough days scheduled in 2011 and all salaried level employees are scheduled to be returned to their 2009 pay rate. As you recall, we could not institute furloughs for the salaried employees; therefore, we reduced their wages by the equivalent of ten days which is what the other employees experienced. The members of the Police and Fire Department did not participate in the furlough unless they were part of the departments administration, or supervisory team in the Police Department. We continued to pay the pension system for all employees under the Ohio Public Employee Retirement System. The City pays 14 percent for individual employees. In the Police Department, it is 19.5 percent and the Fire Department is 24 percent through the Ohio Police and Fire Pension. I mentioned earlier that weve not instituted any mandatory furloughs for 2011. We will request of Council that just like in 2009 and 2010, that we permit those employees who wish to assist us with reducing our expenses to use voluntary furlough time. Previously, the City allowed employees to take ten voluntary furlough days. In 2011, we would like to increase that amount to fifteen days. Personally, I intend to use the same five days that we closed the building in 2010 as well as five or ten other days of voluntary furloughs as long as Council approves this request. It is not mandatory, nor do I want employees to feel pressured to participate in it. Its just an opportunity for all of us to help the organization.
Under Capital Improvements on page 9, were all aware that throughout the years we have been extremely fortunate to be able to obtain outside funding for a number of projects. It has given us an opportunity to contribute a small percentage of around 25 to 30 percent for a number of projects and then receive 75 or 70 percent of outside funding to assist with the construction of those projects. Were at a point now that the only projects you will find in the document, as it has been in 2009 and 2010, is where we have received a rather large assistance of outside funding. There were four projects in 2009, one in 2010, which we were supposed to receive 100 percent funding, unfortunately we had to contribute 26 percent towards that project. There is one project scheduled for 2011, the upgrade to the traffic signal system. The City is scheduled to receive $836,660 in CM/AQ funding. Our share of the costs for the project is $220,456.
Page 12, speaks to the only debt the City currently has which is the Community Center Debt and it is scheduled to be paid off in December of 2017. Each year, we pay a principal amount of $400,000 and the interest on the debt. This year the total payment is $517,400. Next year we are scheduled to pay $503,800. The City has a couple of TIFs in place. One is the Northwest Business Center TIF that deals primarily with the development at Pictoria Island with the office building and restaurants. One positive thing weve heard is that one of the currently vacant restaurants will soon be filled by a barbecue restaurant, Smoq. The better news is that First Financial Bank has committed to occupying the balance of the office tower. It will be the first time that building will be completely occupied since its construction.
The second TIF mentioned in the document, is the Tri County Mall TIF in which the City fronted the construction cost for the new intersection at Tri County Mall off Kemper Road with the new traffic signal. It seems to be very successful in assisting with development. The market just does not lend itself to a lot of growth at this point but we think over time that will assist the center even more. At the same time, it adds to the Cassinelli Square Center as well. The unfortunate thing with this particular TIF is that the parcel in which the TIF was created, for the second time has been reduced to an amount that the City is no longer generating service payments. I think it will be some time before it generates service payments because of the amount it was reduced. We hope at some point in the future, the economy will turn around and the office and retail industries will begin to come back. We see signs of the retail industry improving now, with a number of additions to the district. Businesses recently added are: Morris Furniture, Front Room Furniture, Home Emporium and the Vitamin Shoppe. Thompson Thrift is scheduled to begin a second phase to their development. We are also hoping that we can begin to backfill some of the vacant office spaces that were vacated by the first and, I hope, the only GE migration to West Chester.
As always, we ask that you take a minute to look at the Goals and Objectives in the document. The directors and the staff have worked extremely hard to produce the document for your information and to assist you in your decision making process.
Mayor Webster said Id like to congratulate Mr. Parham and his staff and thank them for all the work theyve done on this. I know a lot of you have had questions and weve tried to give you the answers you need so you can make intelligent decisions on this budget. Mr. Parham is going to pass out capital improvement project summaries to try to give you a better view of the total project cost, where the funding was coming from and how much is coming out of Springdales pocket. Before we get into the capital part of the budget, a lot of it depends on what we do with these projects so we might want to jump ahead and look at those in conjunction with the budget. The projects are Northland Boulevard, the traffic signal update, SR 747/westbound I-275 which is a little more complicated, and Century Circle North.
Mr. Diehl said the $220,000 for the traffic signal would not be expended until the fourth quarter, if I understand it.
Mr. Parham replied no, the $220,000 will have to be paid in January. ODOT will put the project out for bid in February.
Mayor Webster said you have legislation before you tonight so if you dont want us to cut a check in January, you need to vote no on this ordinance. I would hope thats not the case.
Mrs. Harlow said I dont see how we can not do the northbound SR 747/I-275, if all the funding is brought in and we only owe $18,000. I would definitely be voting for that one. I think $18,000 to get that project done is a small price to pay.
Mr. Parham stated Mr. Shvegzda had some discussions with the County Engineers office today. They can never guarantee us, but they feel very strongly about the $81,000 which is part of the $90,000 of our construction responsibility. At the same time, one we have not talked a great deal about is the $43,900 which comprised of $33,900 for design engineering and an additional $10,000 for the environmental work. We have applied for Municipal Road Funds to cover those costs. They have also indicated to us that a recommendation will be made to the County Engineer by mid to late January who will then make the final decision on the Municipal Road Funds. At that point, we will have a very clear sense of whether we would be reimbursed because we are in the process of paying the $33,900 to CDS.
Council went through the budget by department.
Mayor Webster said I had a conversation with Mr. Galster regarding the auxiliary officers in the Police Department. The goal there was to hold their total hours to 2,000 or less. Mr. Parham said for 2010 we are at 892 hours. Mayor Webster said if we had hit the 2,000 hours it would have cost us $55,000 so it looks like we will spend about half that.
In the Health Department budget Mr. Parham stated there is a big jump in personal services. In 2010 it reads $164,000, in 2011 it reads $226,000. We have a number of grants that the Health Commissioner has been successful in obtaining and has been able to charge personal services and other things against those grants. This permits us the preserve the general fund by charging this expenses to the Grant Fund.
Mrs. Emerson asked on Parks and Recreation, was it Chamberlain Park that we had a grant for $33,000?
Mr. Parham replied Chamberlain Park will receive the $33,300 from the Community Development Block Grant program we are going to get next year. The difference in the Finance Committee meeting is that amount was found in the Parks Departments budget. Its really going to be spent out of the Grants Fund. We were able to eliminate that cost from the Parks budget; however, we did add back $10,000 in that line item for normal items needed to be purchased.
Mayor Webster said the difference is only $22,000, not the $32,000.
Mrs. Harlow asked Mr. Parham to address Waste Collection and why that number has changed.
Mr. Parham responded when we made our presentation in October, we shared with you the tremendous opportunity to be part of the SWORE Group with the other three communities. We talked about how we would save $33,000 per year over the next three years. The budget number here shows an increase from $323,000 to $351,000. Part of that is with the Debris Removal Program and a couple of others where we are going to take advantage of using a roll off. We are going to change how we perform that particular program. Right now we send two employees to the residents home, one to drop off the vehicle, the other to pick that person up in the second vehicle. They come back when the vehicle is filled. One employee picks it up and drives to Rumpke to dump it and comes back. There is wear and tear on all of that travel. Instead, by setting a roll off on site, we dont have to make the drive to Rumpke. We save some of the wear and tear on the vehicles. We will not save on direct costs but we will save over time on the wear and tear of vehicles, the time for the employees, as well as you recall, waste collection goes from $8.45 per residential unit to $9.50. Thats why you will see the big bump on Waste Collection. The number for Debris Removal should come in less because that number shows us using 18 of our pulls where they are calculating based on last years cubic yards; we may only have to use six. We are charged $336 per pull.
Mayor Webster said part of that savings is under recycling. It is $55,000 less there and that is also part of that contract.
Mr. Galster stated the waste collection for all the other city buildings within the municipality are included in the package.
Mr. Hawkins said based on the 2010 expenditures there wasnt much to it but where are the Public Defenders costs?
Mr. Parham stated the prosecutor and public defender are found in the Other Commissions Section (7781) in the same general category as the Law Director and City Engineer line items.
Under the Legislative account, Mr. Parham stated just as you all decided to share in the savings with the employees by reducing your wages in 2010, in 2011 those wages will go back to where they were in 2009.
Mr. Parham said in 2011 nothing is budgeted in the line item for the Prosecutor expenses, because we have relocated those charges back under the Administrative Office account. There youll see a prosecutor hourly charge line item.
Mr. Hawkins asked could you comment regarding the salt, ice and snow increase.
Mr. Parham stated this time last year we thought we had adequate salt in the bin, so we reduced the amount of salt we were scheduled to purchase in 2010 from our normal $50,000 to $40,000. We decided to purchase our salt out of the 061 and 062 Funds. Then in January, we experienced from January to March three really large snow storms and they ate up the amount of salt we had available. We were then able to find a salt broker. We purchased additional salt from that individual to get us back to the point where we could finish out the year. At the same time, we are no longer enjoying the rates we used to enjoy. We use to pay about $48 a ton. Now we pay about $72 a ton. We are trying over the next two or three years to get us to a point that we can fill the dome. The amount found here in the budget is not going to completely fill the dome. It will probably get us to 1,500 tons depending on what type of winter season we have. Hopefully, over the next couple of years we wont have a bad winter and it will allow us to get there faster. Then in future years well be able to reduce those numbers. I think this year we purchased 1,200 tons at $51,000. You just dont get as much quantity as you used to for the bucks. With the bids now, you pretty much have to cater the bids the way the industry wants you to and you have to give them a guaranteed amount that you are going to purchase.
Mayor Webster said Mr. Hawkins, you have to combine expenses back to the General Fund and Street Maintenance Department along with these two other funds, 061 and 062. All of these expenses deal with street maintenance. The only difference with these two funds is that the money is funded from the State license money and gasoline tax. Ninety-two point five percent of it has to be in street construction and repair, the other seven and a half percent that has to be on State highways. We try to spend that money first.
Mrs. Emerson asked on the 52460 - Traffic Lights, is that with the assumption that we pass the ordinance. The $11,000 is just for simple maintenance because it goes from $20,000 to $15,000 to $11,000 for 2011.
Mr. Parham replied that charge is what we pay Duke and Direct Energy for energy use. We were paying $1700 a month to Duke. Once we became affiliated with Direct Energy, the cost went to approximately $800 to Duke and $96 to Direct Energy. This is one of those areas where when you begin to compare the electric bills for facilities, you will see the advantage of joining the cooperative.
Mr. Vanover asked what is the mixture of LED versus the old bulbs?
Mr. Parham responded I think there are about three or four intersections in the City currently that have LED lights and with the project on the agenda there should be a lot more.
Mr. Vanover said we should see a greater reduction in cost because of that. Do we know what really bumped up the salt cost?
Mr. Parham stated supposedly there was salt tied up in the southwestern part of the country that was having a challenging time getting spread throughout the country. It could be that the industry is getting control. Early on I talked to Mr. Agricola about trying to put a bid out the way we always have and he would say each time he talked to another community that would get zero bids back. This year we purchased it with a broker but we also became a partner with the Countys bid process. With that one we did have to guarantee a certain amount we would purchase.
Mrs. McNear stated I think its a matter of supply and demand and a little bit of greed thrown in.
Mr. Parham said on the Drug Law Enforcement, Law Enforcement training, DUI and Law Enforcement funds, you will see there is a budgeted amount in 2011. We have instructed the department to budget whatever remaining balance that may have for 2011. We find in the past, if they had $20,000 in the fund, they tell us they are only going to spend $5,000 and you approve that in the budget process. Then they see they have $15,000 left and want to spend more. So we dont have to keep coming back to you, we say just put the full amount out there. A couple of notes in the budget state 2011 budget amounts not yet determined.
Mayor Webster stated these are all restricted funds that have to be spent on certain things.
Mr. Squires asked are we cutting something out in the Insurance Fund.
Mr. Parham replied, no, this is the premium we pay as being part of the Miami Valley Risk Management Association. Anytime we see a reduction in our costs thats good news. That probably says we had less claims or some of our major claims are falling out the calculation formula. Between 2009 and 2010 there was an increase. They look in it over a four year period. There are nine factors. Your losses are multiplied by three, everything else by one.
Mr. Parham said you see there is no charge for dumpsters in 2011. Thats for the recycling dumpster at Public Works as well as the other trash dumpsters throughout the facilities.
Mrs. Emerson said when we originally did the budget draft we had $933,000 left in the budget at the end of the year. Then we moved some line items around and came up with $1.5 million in the General Fund. We will not be able to do that next year. We have taken all the money from all the areas we dont utilize.
Mr. Parham said what weve done this time is, in the past we have budgeted a certain amount of dollars, that is; the Tri County Retail District Fund of $100,000 for improvements to assist the property owners and the district in the right-of-way with the streetscape and other enhancements. This year we pulled that out. Under Improvements/General, weve always had that at $100,000. We reduced it down to $50,000. Another one is the Street Program. There is always the opportunity that if Council said we are not going to have a street program at all, then it would be a zero. There will always be opportunities, but there will always be choices that have to be made as to what services we are going to provide and offer.
Mrs. Emerson said I dont want to give a false security that there is more money than we have.
Mr. Parham stated we need between $1 million to $1.4 million/month for operations. Weve been able to keep ourselves floating and hope things begin to develop, that revenues begin to increase, a decision is made that GE is staying in the community, that some of these other office buildings become occupied. We will depend on Mr. Tulloch to go out there and find jobs to bring into the community. There is no question that things are still tight.
Mayor Webster said we came up with close to three-quarters of a million dollars that you see here tonight. We had some Capital Improvement projects that we canceled. We were able to greatly reduce the transfer from the General Fund over to the Capital Improvements. That probably will not be the case next year. Lets not get lulled to sleep by the number but there are some other things.
Mr. Galster said this past year we had $100,000 in the Tri-County Mall Retail District Fund. At the end of this year we will have $150,000 to $200,000 of encumbered funds that we didnt spend that will carry over and change that $1.5 million up $200,000. Next year there probably wont be that same amount of money thats not spent, because we have gone through with a carving knife and taken the meat as close to the bone as we can. Every time we do that it makes the numbers on paper look better, but the bottom line is were still spending more than were bringing in. We can change some numbers around to make us feel more comfortable with the fact that well be able to carry funds to operate the City for the first month and a half. If, in fact, the income numbers dont go up, there is a big chunk that needs to be cut and theres no place left in this budget. This is probably the first time in a budget process that I havent had a question. I can usually have one a page. Theres nothing left in this budget other than personnel. Right now we are spending $1.4 more than what we are bringing in. The ability to do that is gone so, if in fact, the revenues dont increase, there are city services and personnel. Thats all thats left to cut. The bottom line question is where can we come up with more and thats the one answer that Im not able to pull from you all because there is nowhere else to cut until we start cutting personnel. Thats a very harsh reality that is going to hit this City hard over the next year if those revenues dont go up.
Mr. Vanover said this shows good stewardship and prudence that we started four or five years back whittling this down. Were seeing inklings of good news. We can only hope. There are many things that are beyond our control. If we open five stores and have four or six go down, its still in the net gain, net loss situation. Everyone is to be commended for the work that has gone into this.
Mrs. McNear said I think the budget process has broken new ground for all of us, the staff, directors, etc. Theyve all done a really good job of cutting back and making sure we were spending where we should spend. Then after they made all their cuts, the Finance Committee came in with a hacksaw and there is nothing left to cut. This is a good budget for the money that we have. We will be able to do some of the programs but not all the programs we have done in the past. We usually have had an open checkbook and we could do any kind of street program we wanted because we had matching funds and money in the bank to do that. Now well have to be very selective about the programs going forward.
Mrs. Harlow said Mr. Galster, on the estate tax, we actually had that in our draft budget for $400,000 because we were being conservative but at the Finance Committee it was agreed to raise that to $500,000 for 2011 because we have received that amount in the last couple of years.
Mayor Webster said that number could end up being $200,000 or $900,000 but based on collections over the last three or four years, I think the $500,000 is a very prudent number.
Mr. Galster said the thing that concerns me in increasing that number is the hits that have been made to peoples investment accounts and everything else. The elderly have taken a big hit. To increase the estate tax side I think is one of the biggest risks in this budget. Id say it should go the other way and we should anticipate $100,000 less based on the state of the economy and its continued fall.
Mr. Diehl stated the key to 2011 is the earning tax. We cant cut the budget. We can only hope that that number will be substantially more than what we anticipate.
Mr. Diehl said I make a motion that we adopt the budget at this time.
Mr. Squires stated we are known as Tree City and there is nothing in the budget for tree planting in 2011.
Mr. Parham replied there is nothing in the Urban Forestry line item. Its in the Public Works Department.
Mayor Webster said the Urban Forestry line item is mainly funded through actions of Planning Commission. If a developer takes down trees and cant replace them on a caliper inch replacement basis, then they make a contribution to the Urban Forestry Fund. As of right now we know of no developer to come before Planning Commission but that doesnt mean it wont happen.
Mr. Parham said the $2,797 amount you see was the balance so I said lets spend that money and preserve the General Fund. Whenever we find something that fits the guidelines of one of these special funds, were charging it into those particular ones and preserving the General Fund.
In response to Mrs. Harlow, Mr. Parham said we do not adopt this document. On the January 5, 2011 meeting we will have the appropriation ordinance that you will adopt.
Mr. Diehl withdrew his motion to adopt the budget.
Mr. Parham said at the December 15 meeting we will have the temporary appropriation ordinance as well as the mop up ordinance where we balance the accounts.
ORDINANCES AND RESOLUTIONS
ORDINANCE NO. 39- 2010 AMENDING VARIOUS SECTIONS OF CHAPTER 30 OF THE SPRINGDALE CODIFIED ORDINANCES REGARDING COUNCIL RULES OF PROCEDURE
Mr. Hawkins said Council can see that its only dealing with gender issues throughout the document, time of Council meetings and titles and a typo. Its self-explanatory. There will be more substantial changes coming down the road but these are housekeeping items.
Mr. Diehl asked Mr. Hawkins, when do you anticipate the next phase?
Mr. Hawkins replied we are probably 95 percent through the rest of it, probably more than that. There are two or three issues to go back over. We already have those changes drafted by the Law Director. The committee will meet again to make sure everything is in line but I would imagine we will come to Council sometime after the first of the year.
ORDINANCE NO. 40-2010 AMENDING VARIOUS SECTIONS OF CHAPTER 150 (SUBDIVISON REGULATIONS) AND CHAPTER 151 (WATER MANAGEMENT AND SEDIMENT CONTROL) OF THE SPRINGDALE CODIFIED ORDINANCES AND DECLARING AN EMERGENCY
Mr. Galster made a motion to adopt and Mr. Vanover seconded.
Mr. Parham said as with the previous ordinance, there was a document that identified the changes for you. This is a rather lengthy document with the two chapters. Essentially, I think we tried not to just amend but replaced the two chapters. I have a document summary that will explain each of the changes. We do need to have this passed prior to the end of the year but since we have the December 15 meeting, we can provide a copy of this so you can better understand what the changes are. Again, they are housekeeping items, issues that speak primarily to our water quality issues versus a lot of our current regulations are now on water quantity. The two chapters have new names.
Mr. Galster said the water quality issues need to be made in order for us to be in compliance with state law.
Mrs. Emerson stated I would like to see a copy of the summary document.
Mr. Galster withdrew his motion and Mr. Vanover withdrew his second.
Ordinance 40-2010 will be voted on at the next meeting.
ORDINANCE NO. 41-2010 AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO ENTER INTO A CONTRACT WITH ODOT AND OKI TO UPGRADE THE CITYS TRAFFIC SIGNAL SYSTEM AND TO CONTRIBUTE $220,456 TOWARD THE PROJECT AND DECLARING AN EMERGENCY
Mr. Galster made a motion to adopt and Mr. Vanover seconded.
Mrs. Emerson asked are we pretty sure this is the cost?
Mr. Parham stated with every construction project we use the expertise of the Engineers staff. TEC is the engineer for this particular project. We will not know the actual cost until it has gone out to bid to the general public contractors and they will determine what they are willing to charge for that particular service. Speaking to our lead with TEC, he shared with me that there was a very similar project to this one in the Village of Lockland that experienced a twenty-eight percent reduction from the cost estimate. We are hoping that we are as fortunate but we also have to be aware that the funding is capped at $836,660. Our share is $220,456 which does include the three intersections where we are covering those at 100 percent. If it comes above the funded amount when you add those two together then we are responsible for the amount above $836,660. If it comes in lower, then we get a chance to enjoy those savings as well.
Mr. Vanover said the LED lighting is getting cheaper. Fiber optic cables are coming down. Its a better quality product with a lot less energy consumption.
Mr. Squires stated I share Mrs. Emersons concern with this. This is kind of like a crap shoot with the odds in our favor.
Mr. Parham responded I think the odds are favorable but any project we put out to bid to the market is a crap shoot if you will. I think the engineers do a pretty good job in their estimates. Ive had an estimate from the Engineer. Ive also had an estimate from ODOT. The one we are using is the official ODOT one because we know the cap on the amount of funding and we know what they are saying we have to provide them as our payment. You rely on the experts who have the professionalism to come up with their best guess estimate, identifying what the costs are related to the material and they are also looking at the labor costs as well.
Mayor Webster said I think all of us are a little gun shy based upon what happened with Northland Boulevard but lets bear in mind the original bid on Northland was relatively close to the Engineers estimate. It was only due to unforeseen circumstances that they only detected after they tore the street up. On this project, they know what they are bidding on. They know there are thirty intersections. They know how many traffic heads, how many controllers, how much cable and the cost of the equipment. I cant imagine that we would have a $300,000 overrun on this project.
Mrs. McNear said for the people who just listened to us about burning and slashing our budget a few minutes ago, the importance of doing this project is that we are going to receive almost $837,000 in CM/AQ funds and we will have to pay the $220,000 ourselves. If we dont do this now, this $837,000 probably wont be available in a few years when we have to do this project and then the whole bogie will be on us. Even though the budget is tight I think this is a very important project to do, and do it now and I would hope that everyone would support this.
Mr. Galster stated this project is a little different than the lane addition. This is infrastructure that needs to be upgraded in order to save on maintenance costs. If you look at the maintenance costs over the last four years, it has averaged about $90,000 a year so it wont take us very long to spend that $220,000 in maintenance on our existing system. While its never fun to spend that sum of money, I believe it is better spent to upgrade the system than to continue to band aid and fix the system.
Mr. Parham said this wont eliminate the maintenance but it will eliminate other costs. Over the last couple of years because we knew this funding was available and that we would be changing these systems out, we cut back on non-critical repairs. At the same time, Mr. Littman with TEC suggested that if you do not accept these dollars and make these improvements you will end up spending $50,000 to $150,000 just trying to get the system up to date.
Ordinance 41-2010 passed with seven affirmative votes.
OLD BUSINESS - none
Mr. Parham said First Financial will be moving into Pictoria Tower. If you recall, earlier this year we adopted legislation for an incentive program for First Financial. The unfortunate part is First Financial has not moved in yet. They are in the process of doing so. They have requested that we consider shifting the years of that incentive program. Currently, the years covered are 2010 to 2019 and they are asking us to consider moving that program to 2011 to 2020. If you feel so inclined we will bring legislation at the next meeting to address that change.
Mayor Webster said I want to give Council and the public an update on the SOS Christmas program. As I indicated before we were trying to immediately secure the fourteen coats for the children who were in need. That has been done. We also helped the Calvary Church deliver Thanksgiving meals on November 20. We have 25 non Hispanic families and 19 have been sponsored. However, we have received numerous gifts for all 25 families. We have 20 Hispanic families and the Mexican grocery store, La Plaza Tapatia is committed to helping. The food drive has started; however, it is not going quite as well as it has in past years so we would ask, if you have a fine or not, if you would drop off some food it would be greatly appreciated. Once again, John Morrell is helping with some of the meat, frozen turkeys, etc. If anyone would like to make a donation please give us a call and if you would like to adopt a family, we still have some available.
Mrs. McNear asked would it be appropriate to put the sign up at the end of the street asking for donations.
In response to Mr. Galster, Mr. Parham stated First Financial did not use any benefits in 2010. They would not have an opportunity until they hit certain payroll thresholds.
Mr. Galster said he had no problem with changing the dates. Council concurred.
MEETINGS AND ANNOUNCEMENTS
Board of Health - December 9
Planning Commission - December 14
Mr. Galster stated this will be the last meeting for Tony Butrum. I know Council and Administration wont be at that meeting but its hard to imagine anybody who has been more professional and a better representative for the City than Mr. Butrum has been on that board and his contribution is greatly appreciated. Hopefully the Mayor will have an appointment that will take up some of the slack but I just wanted to take a moment to acknowledge Tonys contributions.
Mayor Webster said I would like to request a resolution for Mr. Butrum for the next meeting and I will have a new appointment at the next meeting or on January 5, 2011.
Board of Zoning Appeals - December 21
COMMUNICATIONS FROM THE AUDIENCE - none
Mrs. Emerson made a motion that Council go into executive session as a committee of the whole to discuss personnel matters.
The motion passed with seven affirmative votes.
Council went into executive session at 8:55 p.m. and reconvened at 9:24 p.m.
Mr. Galster made a motion to reject the fact finders recommendations on mediation case number 10-MED-06-1007. Mr. Vanover seconded. The motion passed with seven affirmative votes.
UPDATE ON LEGISLATION STILL IN DEVELOPMENT
Ordinance 39 - December 15
Ordinance 40 - December 15
Police Sergeants and Lieutenants Agreement - December 15
Commending Butch Hafer - December 15
Final Appropriation and Transfer - December 15
Temporary Appropriation - December 15
City HVAC Contract for Maintenance - December15
Council and Mayor Appointments - future date
Voluntary Furlough Days - December 15
Mr. Galster asked does Item II in the memo still fit the December 15 time frame and Mr. Parham replied, yes, that is the supervisors.
Mr. Parham said the legislation for the voluntary furlough days is listed as an ordinance and it should be a resolution. The HVAC bids will be opened tomorrow and we should have a recommendation on December 15.
RECAP OF LEGISLATIVE ITEMS REQUESTED
First Financial agreement - December 15
Resolution for Tony Butrum - December 15
Council adjourned at 9:30 p.m.
Clerk of Council/Finance Director
Marjorie Harlow, President of Council