CITY HALL, 100 LOCKVILLE ROAD
WEDNESDAY,
JULY 19, 2006
REGULAR
MEETING
7:30
P.M.
1. ROLL CALL. Mr. Wisniewski called the meeting to order at 7:30 P.M., with roll call as follows: Mr. Wisniewski, Mr. Hackworth, Mr. Fix, and Mr. Smith were present. No members were absent. Others present were Judy Gilleland, Cristie Hammond, Mike Sabatino, Lynda Yartin, Linda Fersch, Chris Schornack, Ed Drobina, Tim Hansley, Kevin Ross, Matt Delp, Tony Lombardo, Rick Palsgrove, Terry Walburn, Sean Casey, and others.
2. A. APPROVAL OF MINUTES OF May 30, 2006, Special Meeting. Mr. Hackworth moved to approve; Mr. Fix seconded the motion. Roll call was taken with Mr. Hackworth, Mr. Fix, Mr. Wisniewski, and Mr. Smith voting “Yea.” Motion passed, 4-0.
B. APPROVAL OF MINUTES OF June 15, 2006, Regular Meeting. Mr. Smith moved to approve; Mr. Fix seconded the motion. Roll call was taken with Mr. Wisniewski, Mr. Fix, Mr. Smith, and Mr. Hackworth voting “Yea.” Motion passed, 4-0.
Mr. Wisniewski stated as some staff members were present for the discussion on health insurance, so if there were no objections he would like to start with that issue. Ms Gilleland stated Tony Lombardo, our broker, is present this evening to answer any questions as well as members of the health insurance committee. She stated the committee is comprised of employees and they have been working very hard for over a year examining our options and other carrier options. Ms Gilleland stated we need to decide if we are going to leave our the consortium, and then we still need to determine where we will get the best packages. She stated the recommendation this evening is to give our notice to the Central Ohio Health Care Consortium. Mr. Lombardo distributed a summary of the plan costs that the insurance committee has been reviewing right now. Mr. Lombardo stated this summary shows the current carrier and the two major carriers that are competing for your business, and they are Medical Mutual of Ohio and Anthem. Mr. Lombardo stated with both carriers there are significant savings. Mr. Lombardo stated Medial Mutual is offering rates for 12 months and 24 months. Mr. Wisniewski stated he understood there would be some costs leaving our current carrier and that is not figured into these amounts. Mrs. Fersch stated that is because it is an unknown cost, it depends on the run-out claims. She further stated whether we decide to leave the consortium or not, that will always be an issue. Mr. Wisniewski stated he understood that, it is just with that cost these figures do not show our actual savings. Mrs. Fersch stated that was correct, however, the first year is the only year you will have that. Ms Gilleland stated there is no other cost in leaving our current carrier; it is just paying for the actual claims that we have incurred. Mrs. Fersch stated whether we stay in the pool or not, at the end of each three-year period they look at their reserves. She stated if there is an excess it is returned to the entities as a dividend, and if it is below their reserves you will be charged. Mr. Fix stated, as he understood it, over three years we will save money regardless of what the pay out is. Mr. Fix inquired if the benefits being proposed were the same as we currently have, and Mr. Sabatino clarified that the Buy-Up Plan A from Medical Mutual on the handout is the most expensive and is an identical match to our current plan. Ms Gilleland stated we are comfortable that a combination of the plans, either with Medical Mutual or with Anthem, will work for us, but we don’t have a decision yet. Mr. Fix clarified that the decision needed from this Committee is if we want to give our notice to the consortium. Our current plan will expire at the end of the year, but we need to notify the consortium by September 1st if it is our intent to withdraw. Ms Gilleland stated we have until January 1st to implement the new plan. Mr. Hackworth stated we do have to comply with the requirements in our Union contracts also. Mr. Wisniewski stated once we decide to leave the consortium, then a recommendation on the new plan will be brought forward at a later time. Mr. Smith clarified that Mr. Lombardo is the City’s broker and he works for the City. Mr. Lombardo stated, however, the City does not pay him directly but he gets a percentage of the premium payment. Mr. Lombardo stated if the City did not use a broker, the premium costs would not be reduced because all the carriers factor brokers into their services. Mr. Wisniewski moved to authorize the City Manager to notify the Central Ohio Health Care Consortium of our intent to leave the consortium at the end of our contract; Mr. Smith seconded the motion. Roll call was taken with Mr. Wisniewski, Mr. Smith, Mr. Hackworth, and Mr. Fix voting “Yea.” Motion passed, 4-0.
Mr. Wisniewski stated since Mr. Walburn of the Utility Fees Review Committee is present, he would move to that issue at this time. Ms Gilleland stated at last month’s meeting there were some unanswered questions regarding the minimum usage, and Mr. Drobina had distributed some of that information this evening. She stated also a comparison of the water and sewer user fees was requested and that was also distributed this evening. Mr. Wisniewski stated if we eliminated the minimum fee, we would be going to a 19 percent increase. He stated if we doubled the minimum to $9 per month, then the amount of the increase seems to decrease over the timeframe. Ms Gilleland stated she thought it was that if we do away with the rate increase for one year, then from there on out we implement the anticipated rate increases. Mr. Wisniewski stated the report reads that if you double the minimum to $9 you would not have an increase in 2007, then in 2008 it would increase 9 percent, in 2009 the increase would be 7 percent, in 2010 it would be 13 percent, and in 2011 it would be 3 percent. He stated he did not understand the fluctuation. Mr. Walburn stated the Utility Fees Review Committee recommendation was an increase of 13 percent on water rates, and 16 percent on Sewer A and 19 percent on Sewer B. Mr. Wisniewski stated he had just received this information this evening and he was not comfortable making any recommendation this evening. He stated the options before the Finance Committee are the recommendations from the Utility Fees Review Committee to increase either the 13 or 16 percent; or the option to double the water minimum charge or eliminate it altogether. Mrs. Fersch stated we appropriated and estimated our expenditures this year, not counting the capital for the debt that is paid out of water fund, at $1,523,455. Mr. Fix stated this is our estimated fixed cost for this year. Mrs. Fersch stated even if we take some minor deductions out we will still have at least $1.3 million. Mr. Hackworth stated the minimum charge should cover the administrative costs for distribution, billing, etc. Mr. Hackworth stated he did not have a problem raising the monthly minimum, but he did not feel it should be raised more than the actual amount needed for administration. Ms Gilleland stated the Utility Fees Review Committee had been given a number of tasks that were not necessarily narrow in scope. She stated they looked at our expenses, at our capital, our operations, our capacity fees, and did a lot of review before making their recommendation. Mr. Fix stated this is a very significant decision for our City and the Committee worked very hard on this issue. He stated at some point in the near future we need to make a decision. Mr. Wisniewski stated he concurred with Mr. Fix; however, this Committee needs to feel comfortable with what is recommended to Council. Mr. Walburn stated the Committee had reviewed expenses and income, and had treated it like balancing your checkbook for your household budget. He stated the Committee knew it was not a very popular decision, but it was a matter of having to do what was necessary. Mr. Walburn stated the Committee did not consider raising the service fee during their review. Mr. Hackworth stated he was a member of the Utility Fees Review Committee and he felt the general attitude of the members was that the people who used more water, should have a higher bill. He stated they did not consider the minimum charge because that was something that everyone paid. Mr. Wisniewski stated he understood that, however, that fee was put in place for a reason and it has not been adjusted. He stated his question was if there were administrative costs that were not getting covered by the administrative fee that should be. He stated he would like to review this information and address it at the next Finance meeting. Mr. Fix stated he agreed with Mr. Wisniewski, however he would ask for some type of recommendation from the City Manager, or staff if they feel we should do something differently than what has been recommended by the Committee. Mr. Hackworth stated perhaps we should send it back to the Committee and have them look at the monthly minimum. Mr. Sabatino stated he agreed with Mr. Hackworth that what you pay should be based on what you use. Mr. Hackworth stated the minimum for sewer is different than water. He stated if we need more water, we can pump more from the wells, however, the sewer plant must have the capacity regardless of what happens. Mr. Hackworth stated he would like to have one month to review all this information and at the next meeting this Committee can make a recommendation or send it back to the Committee for more review. Ms Gilleland stated she wanted to make sure Council was comfortable with all the information and if they have any questions or would like other calculations just let her know and she would ensure it was provided. Mr. Wisniewski stated he would like to have this on the agenda for next month and he hoped a recommendation could come out of the Committee at that time because in order to have this in place by January 2007 we need to move it forward. Mr. Hackworth stated he would like to get moving on it because if we need to have public hearings we need to allow time for that.
3. FINANCE DIRECTOR:
A. Review and request for motion to approve draft ordinance amending the 2006 appropriation, Ordinance 2005-98. Mrs. Fersch stated she had no appropriation requests for this month.
B. Finance Director’s Report: Mrs. Fersch stated she had provided a report to the Committee and she would be happy to answer any questions.
(1) Impact Fee Report. Mrs. Fersch stated a report had been distributed to the Committee showing through June we have collected $625,182.60 for four various funds. Mr. Fix inquired what our projections were for the year and Ms Gilleland stated Safety Committee had asked for those projections as well, so the report sent to Council has been revised to reflect the estimates.
(2) Investment Report. Mrs. Fersch stated our interest earnings to date this year are over last year at this same time. She stated maturities are varied so that money can be invested monthly to take advantage of rising rates.
Mr. Fix stated Mrs. Fersch’s report on the Health Department references the avian flu and Mrs. Fersch stated the Health Department had given a presentation to the Chamber of Commerce regarding having businesses prepared. She stated if Council would like a presentation we could schedule a short work session. Mr. Fix clarified that in case of an epidemic the responsibility of the City would be to handle it as we would any emergency, but the health aspect is managed by the Health Department. Mrs. Fersch stated the Health Department has a plan in place for massive inoculations, etc.
(3) Review of Vendor Report. Mrs. Fersch stated the report had been provided to the Committee and she would be happy to answer any questions.
(4) Health Insurance Update. Mr. Wisniewski stated this was discussed earlier in the meeting.
C. Review and request for motion to approve draft ordinance authorizing the City Manager to continue membership with the Central Ohio Risk Management Association for the time period October 1, 2006, to September 30, 2007. Mrs. Fersch stated CORMA is working on putting together our fees for next year. She stated it should be finalized by the meeting in August, so in order to have three readings and the 30-day effective period, she would like to start the legislation through the process with the fee being filled in once it is received. Mr. Fix clarified this is our general liability insurance, professional liability, etc. Mr. Fix moved to forward to Council with the fee being filled in once it is received; Mr. Hackworth seconded the motion. Roll call was taken with Mr. Smith, Mr. Fix, Mr. Wisniewski, and Mr. Hackworth voting “Yea.” Motion passed, 4-0.
Mrs. Fersch stated we have four TIF issues. She stated we had five, but we will be paying off the Marcus TIF this year.
D. Review and request for motion to approve draft ordinance providing for the issuance of not to exceed $2,250,000 of revenue notes by the City of Pickerington, Ohio, for the purpose of renewing revenue notes previously issued for the purpose of paying part of the cost of constructing street improvements in the Windmiller/Diley areas, including constructing widening and turn lane improvements for State Route 256 to establish an exit point for the realignment of Diley Road. Mrs. Fersch stated right now she has revenues to pay the interest, but nothing to pay on the principal. Mrs. Fersch further stated U.S. Bank is taking our notes as a negotiated issue so it will not go on our ten-mill certificate. She stated we paid 4.08 percent interest this past, however, this year it will go up. Mr. Wisniewski questioned if we wanted to release some funds from other accounts that has not been used and pay toward the principal on our notes. Mrs. Fersch stated that would mean taking money from the General Fund to pay on a TIF issue. She stated she hoped next year to pay on the principal.
E. Review and request for motion to approve draft ordinance providing for the issuance of not to exceed $393,000 of revenue notes by the City of Pickerington, Ohio, for the purpose of renewing revenue notes previously issued for the purpose of paying part of the cost of constructing (1) street improvements on Hill Road and Blacklick-Eastern Road, including widening streets, constructing sidewalks, curbs and gutters and installing traffic control devices and (II) street improvements known as the Hill Road Connector, including constructing streets, sidewalks, curbs and gutters. Mrs. Fersch stated on this issue we will also be paying the interest only.
F. Review and request for motion to approve draft ordinance providing for the issuance of not to exceed $650,000 of revenue notes by the City of Pickerington, Ohio, for the purpose of renewing revenue notes previously issued for the purpose of paying part of the cost of constructing street improvements in the Cycle Way area. Mrs. Fersch stated on this issue we will be paying $50,000 on the principal. Mrs. Fersch stated on this TIF and on the Cover TIF we also have to, under General Fund, pay income tax sharing to the schools.
G. Review and request for motion to approve draft ordinance providing for the issuance of not to exceed $262,500 of revenue notes by the City of Pickerington, Ohio, for the purpose of renewing revenue notes previously issued for the purpose of paying part of the cost of constructing street and traffic signal improvements in the State Route 256/Stonecreek Drive area. Mrs. Fersch stated on this issue we will be paying $60,000 on the principal.
Mr. Fix moved to approve the four note issues, Items 3.D, E, F, and G on the agenda, and forward to Council; Mr. Hackworth seconded the motion. Mr. Sabatino clarified the Marcus TIF was originally for ten years and we are paying it off two years early. Roll call was taken with Mr. Smith, Mr. Wisniewski, Mr. Fix, and Mr. Hackworth voting “Yea.” Motion passed, 4-0.
Mr. Wisniewski stated while we are on Finance issues, he would like to discuss Item 8.A. at this time. He stated this was with regard to the request to waive the Impact Fees for the Diley Middle School property. Mr. Smith clarified this is the first time we have exempted anything for an impact fee. Mr. Sabatino questioned that since these modulars are supposed to be temporary in nature, is that something we collect impact fees on. Ms Gilleland stated trailers were not addressed, and Mr. Sabatino had a good point. She stated if the school does replace it with a bricks and mortar building, they technically would not be adding any more square footage, so they would not be subject to an impact fee since it has already been waived. Mr. Wisniewski moved to approve the Impact Fee Exemption for the Pickerington Local School District for installation of a modular unit at Diley Middle School; Mr. Fix seconded the motion. Roll call was taken with Mr. Wisniewski, Mr. Fix, Mr. Smith, and Mr. Hackworth voting “Yea.” Motion passed, 4-0.
4. PERSONNEL DEPARTMENT:
A. New Employee Update
Mrs. Fersch stated Mr. Hansley is our newest employee and Stacey Bashore, the Deputy Municipal Clerk, will start work on July 24th.
5. DEVELOPMENT DEPARTMENT:
Mr. Hansley stated he is working on several issues; however, he has nothing to report this evening.
6. FACILITIES OPERATIONS:
A. Review and request for motion to approve draft ordinance authorizing the City Manager to enter into a new lease agreement with Inter-Tel Technologies, Inc. for the lease of a digital telephone system for its City Hall, Building, Sewer, Police, and Street Departments. Mr. Wisniewski stated he had an in-depth conversation with Mr. Vannatta, and this contract will save us about $600 a month and will renew our contract across the board for all city services so that we are on one contract for all buildings and services, versus a hodge podge of contract. Mr. Smith clarified we will still keep the same phone service. Mr. Wisniewski moved to approve and forward to Council; Mr. Fix seconded the motion. Roll call was taken with Mr. Wisniewski, Mr. Smith, Mr. Hackworth, and Mr. Fix voting “Yea.” Motion passed, 4-0.
7. CHAIRMAN:
8. OTHER BUSINESS: Mr. Wisniewski stated he would like to know the status of the situation with Stilson up at the north end, where we are with that. He stated we have not received a contract or anything as yet. Ms Gilleland stated she received Mr. Stilson’s comments on the settlement a few weeks ago and she got those back to Schottenstein. Ms Gilleland stated Mr. Hansley has now come on board and he has had some conversations with the attorney. She further stated Mr. Hansley has received the attorney’s draft back including Mr. Stilson’s requested changes, some of which we still need to discuss. Mr. Wisniewski stated he would like to see this taken care of as he did not want to have problems with the EPA. Ms Gilleland stated the EPA is fine.
Mr. Hackworth stated he thought the Memorandum of Understanding would be discussed this evening and Mr. Fix stated he does not have language finalized yet and he would like to wait until it is finalized so he can discuss it with all of Council.
Mr. Sabatino stated he had requested information on how much money we have spent so far on JEDDs, and he has yet to get an answer. Ms Gilleland stated Mr. Sabatino has all of the legal bills, she just has not tallied it. Mr. Sabatino stated he was requesting specifically how much we have spent on the JEDDs. Mr. Hackworth stated he thought it was about $7,000 or $8,000 as of May. Mr. Sabatino stated he would like to get that number.
9. MOTIONS:
A. Motion for Executive Session under Section 121.11(G)(1)(b), Matters involving an employee’s or public official’s employment, Section 121.22(G)(2), Purchase or sale of public property, Section 121.22(G)(3), Conference with law director regarding pending or imminent court action, and Section 121.22(G)(4), Matters involving bargaining sessions with public employees. Mr. Wisniewski stated no executive session was necessary this evening.
10. ADJOURNMENT. There being nothing further, Mr. Wisniewski moved to adjourn; Mr. Fix seconded the motion. Mr. Hackworth, Mr. Fix, Mr. Smith, and Mr. Wisniewski voted "Aye." Motion carried, 4-0. The Finance Committee adjourned at 9:20 P.M., July 19, 2006.
RESPECTFULLY SUBMITTED:
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