CITY OF PICKERINGTON

                                           FINANCE COMMITTEE OF COUNCIL

                                               CITY HALL, 100 LOCKVILLE ROAD

                                                        TUESDAY, JULY 26, 2005

 

                                                          REGULAR MEETING

 

                                                                      7:30 P.M.

 

1.         ROLL CALL.  Mrs. Riggs called the meeting to order at 7:30 P.M., with roll call as follows: Mr. Wisniewski, Mr. Hackworth, Mrs. Riggs, and Mr. Wright were present.  No members were absent.  Others present were Judy Gilleland, Lynda Yartin, Linda Fersch, Dennis Schwallie, and others.

 

2.         APPROVAL OF MINUTES OF June 16, 2005, Regular Meeting.  Mr. Hackworth moved to approve; Mr. Wright seconded the motion.  Roll call was taken with Mr. Hackworth, Mr. Wright, Mr. Wisniewski, and Mrs. Riggs voting “Yea.”  Motion passed, 4-0.  

 

3.         FINANCE DIRECTOR:

 

            A.        Review and request for motion to approve draft ordinance amending the 2005 appropriation ordinance 2004-81.    Mrs. Fersch stated a draft appropriation ordinance had been provided to the Committee and she had distributed this evening an itemized listing of where legal fees have been paid from the legal fund.  She stated in the budget that was passed, it stated that the law director and the City Manager can spend what is appropriated in the fund, and based on the bills that are coming in and the projects that are still out there, she was requesting an appropriation increase of $200,000 for the legal fees.  Mrs. Fersch stated she felt this would cover the costs from June until the end of the year.   Mrs. Riggs clarified that Ms Gilleland is reviewing the legal bills and Ms Gilleland stated Mayor Shaver has also reviewed some of them.  Mr. Hackworth stated he felt we had special circumstances this year, such as the JEDD, litigation, etc.  Mrs. Fersch stated she had released $110,000 from General Fund to go to Street Capital Improvement and that needs to be appropriated from Street Capital for the street repaving project.  Mrs. Fersch stated the draft ordinance shows an appropriation of $39,600 for FEMA, and that should be changed to $29,992 as that is the actual amount received from FEMA.  Mr. Hackworth moved to approve the draft appropriation ordinance and forward to Council with the correction for FEMA as stated by Mrs. Fersch; Mr. Wisniewski seconded the motion.  Roll call was taken with Mr. Wisniewski, Mr. Wright, Mrs. Riggs, and Mr. Hackworth voting “Yea.”  Motion passed, 4-0.  

 

B.         Finance Director’s Report:  Mrs. Fersch stated her report had been distributed and she would answer any questions.  Mrs. Fersch stated the Central Ohio Risk Management Association (CORMA) will not meet until August and our policy expires on September 30th.  Mrs. Fersch stated we will not receive the new premium amount until August, and she would request the legislation be forwarded to Council without the premium amount filled in, as we have done in the past, and the amount be filled in before the final reading.  Ms Gilleland stated the other alternative is to do three readings and declare an emergency on the final reading.  Mrs. Riggs stated she would prefer not to pass it as an emergency, and Mr. Wright stated in the past the ordinance has been sent to Council with the premium filled in before the final reading.  Mr. Hackworth ascertained our valuation has increased, so our premium will increase.  Mrs. Fersch stated she would have the figures by the third reading.  Mr. Hackworth clarified in order to be effective by October 1st, the legislation would have to be completed by Council by the second reading in August.  Mrs. Fersch stated with regard to health insurance, an Insurance Review Committee has been established with representatives from the Police Department, Service Department, etc., and they have spoken to different brokers, etc.  She stated we are looking at different rates for health insurance, and we should have some rates to look at by the middle of August.  She stated we need to let the Central Ohio Consortium know by September 1st if we are going to remain in the consortium, and she has a meeting this week where the rates will be set for next year.  Mrs. Fersch stated the employees will be paying five percent of whatever the premium is next year, so they are eager to make sure the premiums do not increase.  She stated further it has been pointed out that you can get a low rate the first year with a company, and the next year it would go up a lot, so we could end up having to get other insurance bids at that time.  Mr. Wright moved to forward legislation to Council for the renewal of our insurance package with Central Ohio Risk Management with the premium amount to be added in prior to the final reading; Mr. Hackworth seconded the motion.  Roll call was taken with Mr. Wisniewski, Mrs. Riggs, Mr. Hackworth, and Mr. Wright voting “Yea.”  Motion passed, 4-0. 

 

C.        Review and request for motion to approve draft ordinance providing for the issuance of $380,000 of notes by the City of Pickerington, Ohio, in anticipation of the issuance of bonds, for the purpose of renewing notes previously issued for the purpose of paying part of the cost of constructing street improvements and particularly widening Diley Road in the City.  Mrs. Fersch stated this was originally borrowed for the engineering on Diley Road and they are coming due in October.  She stated she would like to have this legislation passed in case we do not get the State Infrastructure Bank monies before these notes are due.  She stated if everything falls into place, we will be paying off these notes with the State Infrastructure Bank money.  Mr. Hackworth moved to forward the note renewal legislation to Council; Mr. Wisniewski seconded the motion.  Roll call was taken with Mr. Hackworth, Mr. Wright, Mrs. Riggs, and Mr. Wisniewski voting “Yea.”  Motion passed, 4-0. 

 

D.        Review and request for motion to approve draft ordinance adopting impact fee amounts and the procedures for the imposition, calculation, collection, expenditure, and administration of impact fees to be imposed on new development; providing for severability; and providing for an effective date.  Ms Gilleland stated she the draft ordinance has been distributed.  She stated in meeting with the BIA yesterday some additional language has been requested in terms of the BIA settlement agreement.  She stated the changes they are requesting are more language changes, they are not substantive, and we are trying to work through the issues with them.  Ms Gilleland stated if the Committee is comfortable with moving this out of Committee, but not having it on Council agenda until August 16th, that would allow everyone time to review the legislation and get any questions they may have answered prior to that time.  She stated the final ordinance would be in Council packets on August 12th,  along with an outline of the changes.  Mr. Hackworth clarified that our current Parks and Recreation fee will go away once this legislation is completed, and Ms Gilleland stated that was correct.  Mrs. Riggs stated as she understood it, the BIA was just asking for a verification of that. Ms Gilleland stated that was correct as well.  Mr. Wisniewski moved to forward the final impact fee legislation to Council; Mr. Wright seconded the motion.  Mr. Hackworth stated he thought this legislation should be sponsored by all of Council if they desired and requested Mrs. Yartin contact council members to ensure they would like to be included as sponsors.  Mr. Wright stated when we received the presentation on impact fees, he had requested if there was a way to get some type of idea of how that was going to work considering that we are looking at going into a JEDD with the Township.  He stated since we are going into a JEDD he does not want to push commercial development into the JEDD at the expense of them not coming into the City because of the impact fee.  Mrs. Riggs stated that is a good question, and Ms Gilleland stated she will get information on that.  Mr. Hackworth stated there is an exemption they can request from the City for commercial properties, so it could be addressed that way.  Mr. Wright stated his fear with the commercial impact is that every other community is giving incentives and we are looking at an impact fee and a JEDD.  Roll call was taken with Mrs. Riggs, Mr. Wright, Mr. Wisniewski, and Mr. Hackworth voting “Yea.”  Motion passed, 4-0. 

 

            E.         Review and request for motion to approve draft ordinance authorizing a loan to the City of Pickerington not to exceed $7,737,113 from The Ohio Department of Transportation, State Infrastructure Bank, to finance the City of Pickerington’s cost share associated with the Diley Road Widening and Realignment Project. Mr. Hackworth clarified the application with the initial legislation when we applied for the loan listed what these funds would be used for.  Mrs. Fersch stated part of the money would be for engineering, our twenty percent, and also we are rolling in the $380,000 note just addressed, and the expansion for Phase III of the Diley Road realignment project. She stated Phase II of the Diley Road realignment is in a TIF.  Mrs. Fersch stated $237,000 in this will be capitalization of the interest because for the first year we will not be paying interest, in the second year we will be paying interest only, and we will begin paying in the third year.  She stated this will allow us to accumulate funds in anticipation of our first payment, and they are amortizing this over 15 years so our payments are condensed, but we will still be paying principle and interest and our big balloon payment is at the tenth year.  She stated at that time we will probably borrow conventionally and roll it into bonds.  Mr. Hackworth clarified some of our impact fees can be used for paying some of this debt.  Mrs. Fersch stated this does not include any overruns on a project, and there will more than likely be some overruns on a project that runs this long, so we will be responsible for those costs, so we may have to go back to the State Infrastructure Bank and request more funds.  Mrs. Fersch stated further the police impact fees will go toward the police station, and that will free up money from the General Fund that we are paying now, so that will help towards this payment.  She stated we will be required to meet the payment schedule in the third year.  Mrs. Fersch stated for separate tracking we will need a separate fund for Police Impact Fees, Street Impact Fees, etc., so you can see the money coming in and the money going out.  Mrs. Fersch stated Mr. Schwallie is present this evening to answer any questions the Committee may have.  Mrs. Fersch stated the loan is at three percent, which is very good, and they would like to have the closing date by September 30th.  Mr. Hackworth clarified the interest was at a fixed rate for the entire ten years.  Mr. Hackworth moved to approve and forward the legislation authorizing the loan from The Ohio Department of Transportation, State Infrastructure Bank, in the amount not to exceed $7,737,113 to Council; Mr. Wisniewski seconded the motion.  Roll call was taken with Mrs. Riggs, Mr. Wisniewski, Mr. Wright, and Mr. Hackworth voting “Yea.”  Motion passed, 4-0. 

 

 

4.         PERSONNEL DEPARTMENT: 

 

            A.        Review and request for motion to approve draft ordinance amending Ordinance 2004-86 (Employee Pay Plan and Authorized Strength).  Ms Gilleland stated she would suggest this item, as well as the next one, be discussed during an Executive Session.  Mrs. Riggs stated they would continue with the agenda and come back to these two items. 

 

            B.         Review and request for motion to approve draft Resolution appointing Linda A. Fersch to the position of Interim Director of Human Resources. 

           

5.         DEVELOPMENT DEPARTMENT:  No Report.

           

6.         CHAIRMAN:

           

            A.        Law Director Search – Update.  Mrs. Riggs stated Council met in a Special Meeting last evening to conduct the final interviews, and she felt that went really well.  She stated Council will have to meet in Executive Session to make a decision. 

 

            B.         Review of Ordinance 2004-94, authorizing the City Manager to enter into a contract with the City of Lancaster for the provision of prosecution services for Pickerington misdemeanor cases in Lancaster Municipal Court.  Ms Gilleland stated she does not have an update on this issue this evening.  Mrs. Riggs requested this be continued on the agenda.  

 

            C.        Review of Ordinance 2004-95, authorizing the City Manager to enter into a contract with the City of Lancaster for the provision of prosecution services for Pickerington’s Mayor’s Court.  Ms Gilleland stated she had no update on this item as well.  Mrs. Riggs stated this would also be continued on the agenda. 

 

7.         OTHER BUSINESS:  No other business was brought forward. 

 

8.         MOTIONS:

 

A.        Motion to appoint the Office of Mayor and Finance Director to serve on the Tax Incentive Review Council (TIRC).  Ms Gilleland stated this is set forth by State Statute for TIFs, and we are required to have annual meetings.  She stated last year the County took over as the Chair of the Council and we are able to appoint two representatives.  She stated in the past we have appointed the Mayor and the Finance Director, however, our legislation appointed the representatives by name.  She continued she would like to have the appointments made by the position so we do not have to change it when should the individuals leave that position.  Mr. Hackworth moved to appoint the Office of the Mayor and the Finance Director as the City’s representatives on the Tax Incentive Review Council (TIRC); Mrs. Riggs seconded the motion.  Roll call was taken with Mr. Hackworth, Mrs. Riggs, Mr. Wright, and Mr. Wisniewski voting “Yea.”  Motion passed, 4-0. 

 

B.         Mr. Hackworth moved for Executive Session under Section 121.22(G)(1)b, Matters involving an employee’s or public official’s employment; Mrs. Riggs seconded the motion.  Roll call was taken with Mr. Hackworth, Mrs. Riggs, Mr. Wright, and Mr. Wisniewski voting “Yea.”  Motion passed, 4-0. 

 

Finance Committee went into Executive Session at 8:20 P.M. and reconvened in open session at 9:05 P.M. 

 

Mr. Wright moved to approve and forward the draft ordinance amending the Employee Pay Plan and Authorized Strength to Council; Mr. Hackworth seconded the motion.  Roll call was taken with Mr. Wisniewski, Mr. Wright, Mrs. Riggs, and Mr. Hackworth voting “Yea.”  Motion passed, 4-0. 

 

Mr. Wright moved to approve and forward the draft resolution appointing Linda A. Fersch to the position of Interim Director of Human Resources; Mr. Hackworth seconded the motion.  Roll call was taken with Mr. Wisniewski, Mrs. Riggs, Mr. Hackworth, and Mr. Wright voting “Yea.” Motion passed, 4-0. 

 

9.         ADJOURNMENT.  There being nothing further, Mr. Hackworth moved to adjourn; Mr. Wright seconded the motion.  Mr. Hackworth, Mr. Wright, Mr. Wisniewski, and Mrs. Riggs voted "Aye."  Motion carried, 4-0.  The Finance Committee adjourned at 9:10 P.M., July 26, 2005.

 

RESPECTFULLY SUBMITTED:

 

 

________________________________

Lynda D. Yartin, Municipal Clerk