EVENT: Thu. Nov. 30, 2017 - Thu. Nov. 30, 2017
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Nov 13, 2017 Finance Meeting Minutes

The tape of this meeting is on file in the Council Clerk’s Office.

TO THE HONORABLE COUNCIL OF THE CITY OF ELYRIA, OHIO:

The Finance Committee held a meeting on Monday, November 13, 2017 at 6:15 P.M. in Council Chambers.

PRESENT: Committee Chair Stewart, Members Tanner, Madison, Baird, Lotko

OTHERS PRESENT: Mayor Brinda, Safety Service Director Siwierka, Law Directors Chief of Staff Deery, Finance Director Pileski, Assistant Finance Director Farrell, Engineer Ujvari, Assistant Engineer Schneider, Engineer Dept. Kathy McKillips, WWPC Korzan, Water Pumping Sam Jacobs, Water Distribution Dave Rothgery, Utility Supervisor Debbie Connor, Clerk Bullocks

1. Approval of the 10/30/2017 Finance Meeting Minutes.

Lotko moved and Tanner seconded to approve the minutes of the 10/30/2017 Finance Committee Meeting. MOTION CARRIED

2. The matter of authorizing the Safety Service Director to donate forfeited and unclaimed bicycles to Elyria Bicycle Education Center. REFERRED BY: Law Director Serazin

Ms. Deery stated that the Police Department has numerous unclaimed bicycles in their possession. Those bikes have no value to the City and the Law Department is asking that they be donated to Elyria Bicycle Education Center, which is a non-profit organization.

Mrs. Siwierka said that these bikes would normally be sold at an auction. But, lately City auctions have not had much success and it would be easier just to clear them out of the Police Department. Mr. Madison stated that it’s a great idea to donate those bikes to the Bike Center.

Mr. Ed Stewart of 1001 Rosealee, Elyria is the chairman of Bik Elyria and Elyria Bicycle Education Center came up to the podium to explain what his organization does. Elyria Bicycle Education Center receives donated bikes that may need repair and by having more bikes in inventory, they will have more pieces and parts to be used for repairing other bikes. They also teach people how to repair their own bikes. They appreciate Council’s consideration. Tanner moved, Baird seconded to recommend a resolution to declare unclaimed bicycles deemed unfit and to recommend an Ordinance authorizing the Safety Service Director to donate those bicycles to Elyria Bicycle Education Center.

MOTION MOVED COMMITTEE REPORT WRITTEN3. The matter of a request to reduce building permit fees for the Elyria City Schools construction projects. REFERRED BY: Mayor Brinda Mayor Brinda stated that the schools has asked for the City to make available as much funding as possible for the Building Permit fees. After consideration, the City has come to a compromise with the schools to reduce the fees by 20% and to waive any re-inspection fees associated with the construction of the new sports complex and the 5 new school buildings. It’s anticipated that there will be around $500,000 in fees and by reducing those by 20% there will be a savings to the school district of about $100,000.

Lotko moved, seconded by Baird to recommend an ordinance to reduce Building Permit Fees for the Elyria City Schools Construction Projects.

MOTION MOVED COMMITTEE REPORT WRITTEN4. The matter of a change order on Phase 1 of the Water Meter Replacement Program.

REFERRED BY: SSD Siwierka

Mrs. Siwierka said that they are about 46% done with phase 1 which is the commercial accounts.

The meters that are being installed are a little different and more expensive than originally budgeted for, but in the long run will be better. Phase 2 will be lower than originally budgeted and they are hoping that this will come out as a ‘wash’. The Phase 1/ Commercial accounts are getting magnetic meters, which results in the higher cost.

Dave Rothgery came to the podium and thanked Mrs. Siwierka for her explanation. To date the number of meters that have been installed is 274, about 46%. They have found that the magnetic meters, which have no moving parts and are very accurate, but they do cost more. They will not require maintenance and they will record much more accurately. One of the biggest users with this kind of meter will be Northern Ohio Rural Water.

Baird moved, Madison seconded to recommend an ordinance for the matter of a change order on Phase 1 of the Water Meter Replacement Program and will amend ordinance no. 2017-18.

MOTION CARRIED COMMITTEE REPORT WRITTEN5. The matter of issuing notes for various sanitary sewer projects.

REFERRED BY: Finance Director PileskiMr. Pileski explained that we are moving rapidly on a number of sewer projects throughout the City. One being the East Avenue Relief Sewer project and Phases 1B and 1C of the East Side Relief Sewer project. With those 2 projects and some planning and design work that is going on, the fund will be getting low. Mr. Pileski is recommending the City issue 4 million dollars in notes for these projects which will be able to be combined the issuance with next years notes sale.

Mr. Madison asked what fund that money will be taken out of? Mr. Pileski said that it is the Waste Water Pollution Control Fund and the Waste Water Pollution Control Capital Fund. In addition the water meter projection that is currently going on is partially paid out of the Waste Water Fund.

Lotko moved, Baird seconded to recommend an ordinance for the matter of issuing notes for various sanitary sewer projects in the amount of $4,000,000.

MOTION CARRIED COMMITTEE REPORT WRITTEN6. The matter of water and sanitary sewer rates adjustments.

REFERRED BY: Engineer Ujvari Mr. Ujvari said that justification for this is based on the Waste Water Capital Improvement Program outpacing the Water Capital Improvement Program. The US and Ohio EPA is putting pressure on the City. Negotiations have continued and a rate analysis has been done. The current water rates is an increase of 4%. The rate increase is around 8.3%. They want to keep the increases below the double digit. The waste water rates will be higher than the water rates. Mrs. Siwierka said that there are ordinances that were passed for 20 years into the future, the ordinance on the books for an effective increase beginning in 2018. Mrs. Siwierka wanted to clarify that in this legislation it needs to be noted that the rates increase after the first full billing period after January 1st.

Lotko moved, Baird seconded to recommend an ordinance authorizing the adjustments to water and sanitary sewer rates to become effective after the 1st full billing period after January 1st, 2018.

MOTION CARRIED COMMITTEE REPORT WRITTENMrs. Siwierka clarified that the ordinance for 2018 would have to be repealed and replaced with the new ordinance. The entire Section 939 shouldn’t be repealed and replaced. Ms. Deery agreed and said that 939 (j) (3) is the section for January 2018, 939 (j) (4) is for Homestead rates for 2018 and 939 (k) is for January 2019. Homestead rates for 2018 will remain the same.

7. The matter of reimbursing the General Fund from the Water Fund per Ordinance No. 2009-83

REFERRED BY: Finance Director Pileski Mr. Pileski explained that an ordinance was passed in 2009 authorizing in directing the auditor/finance director to reimburse the General Fund from the City of Elyria Water Fund, an amount to be determined annually by Council for the cost of the annual testing of the water lines and fire hydrants. This reimbursement was done last in 2015. This year a memo was sent by Chief Benton stating that the costs for the program this year is $350,370. 2,748 fire hydrants were tested and maintained at a cost of $127.50 which equals $350,370.

Lotko moved, Baird seconded to recommend an ordinance authorizing reimbursing the General Fund the amount of $350,370 from the Water Fund.

MOTION CARRIED COMMITTEE REPORT WRITTEN8. The matter of an agreement with Republic Services for removal of mixed recycled glass.

(Tabled – Sept. 18, 2017) (Discussed at Strategic Planning – Oct. 2, 2017)

REFERRED BY: SSD Siwierka (Passed at Utilities 11/08/17) Mrs. Siwierka stated that this matter was discussed voted on at Utilities and has already been discussed at previous meetings.

Lotko moved, Baird seconded to recommend an ordinance to enter into an agreement with Republic Services for removal of mixed recycled glass.

MOTION CARRIED COMMITTEE REPORT WRITTEN9. The matter of Sanitation Rate increase for 2018, 2019, 2020 (Tabled – Sept. 18, 2017) (Discussed at Strategic Planning – Oct. 2, 2017) REFERRED BY: SSD Siwierka (Passed at Utilities 11/08/17) Mrs. Siwierka stated that this matter was discussed voted on at Utilities and has already been discussed at previous meetings. The increases are as follows; 2018 = .90 for regular, .63 for Homestead, 2019 = .92 for regular, .65 for Homestead and 2020 = .96 for regular and .67 for Homestead. These rates are based on keeping the service exactly the same.

Lotko moved, Baird seconded to recommend an ordinance to enter into an agreement with Republic Services for removal of mixed recycled glass.

MOTION CARRIED COMMITTEE REPORT WRITTEN10. The matter of authorizing the Mayor to advertise for bids and enter into a contract for Tree Lawn Tree Service. (Tabled – Apr. 24, 2017) REFERRED BY: SSD Siwierka (Passed at Utilities 11/08/17)

Mrs. Siwierka said that this is just the renewal of the Forestry Contract for trees that the City cannot maintain; if they are too large or near power lines or damaged trees. The contract is up so we need to go out to bids.

Lotko moved, Baird seconded to recommend an ordinance to advertise for bids and enter into a contract for Tree Lawn Tree Services.

MOTION CARRIED COMMITTEE REPORT WRITTEN11. The matter of creating an operations and maintenance plan to maintain the safety and user-friendly conditions in the City. (Tabled in Utilities11/8/17, therefore will not go on to

Finance at this meeting). REFERRED BY: Councilman Madison 12. The matter of a request to amend the 2017 Permanent Appropriations.

REFERRED BY: Finance Director Pileski

Mr. Pileski said that he has 2 changes; 1.) Insurance Demutualization Fund, moving money out of Capital Outlay and appropriating additional to set-up the $500,000 money to the CIC GAP Financing Loan. 2.) In the Water Misc. Fund, adding $231,841 for the reimbursement to the General Fund for the Fire Hydrant Program.

Lotko moved, Baird seconded to recommend amending the 2017 Permanent Appropriations.

Madison Abstained from voting on this matter.

MOTION CARRIED COMMITTEE REPORT WRITTENBaird moved, Lotko seconded to adjourn the Committee Meeting at 8:10 P.M.

MOTION CARRIEDSubmitted by,

 

Colleen Rosado, Secretary