WEDNESDAY, SEPTEMBER 17, 2008

REGULAR MEETING

7:00 P.M.

1. ROLL CALL. Mrs. Hammond called the meeting to order at 7:00 P.M., with roll call as follows: Mr. Sabatino, Mrs. Hammond, Mr. Smith, Mr. Fix, Mr. Sauer, Mrs. Sanders, and Mr. Wisniewski were present. No members were absent. Others present were Tim Hansley, Lynda Yartin, Linda Fersch, Chris Schornack, Jennifer Frommer, Lori Gischel, Rick Carbone, Larry Jones, and others.

2. APPROVAL OF MINUTES OF August 20, 2008, Regular Meeting. Mr. Smith moved to approve; Mr. Sauer seconded the motion. Roll call was taken with Mrs. Hammond, Mr. Fix, Mr. Sabatino, Mr. Smith, Mr. Sauer, Mr. Wisniewski, and Mrs. Sanders voting “Yea.” Motion passed, 7-0.

3. Presentation by RITA (Regional Income Tax Agency). Mrs. Hammond stated Ms Gischel and Mr. Carbone of RITA were present this evening to brief the Committee on the services provided by RITA. Ms Gischel stated she is from the Upper Arlington office and Mr. Carbone is the Executive Director of RITA out of their main office in Brecksville, Ohio. Ms Gischel stated she appreciated the opportunity to provide their presentation to the full Committee and after Mr. Carbone’s presentation (Attachment 1) they would be happy to answer any questions. Ms Gischel stated she had provided an estimate for the cost of RITA’s services earlier and she had been asked to provide an estimate on the cost should the income tax on the ballot in November passes. She stated she has estimated that to be approximately $156,000, and with the reduction in staff in the Tax Department and the retention of the Tax Administrator, you would still have a cost savings with RITA. Ms Gischel stated along with the cost savings she felt an important benefit with RITA would be the access they have to IRS information on the City’s behalf that would allow them to bring in additional dollars to the community, as well as, the technology they were able to provide such as 24-hour service, the ability to e-file, e-payment, e-registration, etc.

Mr. Wisniewski stated he would like to receive a list of how many communities have left RITA over the past five years. Mr. Carbone stated he would provide that information, and pointed out that the agreement allows you to leave RITA with six months notice; you can give notice on July 1^st of any given year that you want to withdraw from the Council at the end of the year. Mr. Sabatino further clarified that the Tax Administrator at City Hall would have real-time access to RITA’s computer files. Mr. Smith clarified that RITA retains three percent of the City’s collections to fund daily operations and if the cost exceeds that percentage the amount is deducted from future distributions. Mr. Smith questioned if in the last five years additional funds have been collected, and Mr. Carbone stated for the most part the vast majority of their municipalities receive a refund. Mr. Carbone stated they were projecting the cost of collection for Pickerington would be 2.7 percent so you should receive a refund in July of the each year.

4. SUBCOMMITTEE REPORT:

A. Expense Subcommittee. Mr. Fix stated the subcommittee will meet immediately following this meeting. He stated they have several questions still before them and have almost completed the review of all departments. Mr. Fix stated the questions to be addressed this evening regard the outsourcing of the building department, the possibility of cost savings with an in-house city engineer, and a draft summary of everything that has been reviewed to date to forward to Finance Committee. He stated after spending the last six months on this they have found between $260,200 and $314,700 that might be saved by making some cuts and doing things like just presented by RITA. Mr. Fix stated regardless of how the tax issue goes there are decisions that need to be made and they would be encouraging Finance to address those issues in future meetings.

5. FINANCE DEPARTMENT.

A. Finance Director’s Report. Mrs. Fersch stated she had provided a written report to the Committee and she would be happy to answer any questions. Mrs. Fersch stated with regard to Debt Renewal, since our large note issue that we had mature last March will now mature in February, we will need to start the process of how we are going to retire principle, whether we are going to go out for bonds, etc. She stated she has already started looking into a debt structure and the preliminary consensus is that we would go another year on notes. She stated she had also provided the Committee a listing on the Windmiller TIF. She stated this TIF has several delinquencies that total over $70,000. Mrs. Fersch stated she has requested if the law director could have someone from his office, under their retainer, check to see what the problem is and he has indicated he will have someone do that. Mrs. Fersch stated she did not know the exact process the Auditor uses on delinquencies and Mr. Fix requested she find out the process they follow and how long it takes. Mr. Fix inquired when the Clinic will be separated from the Health Department and Mrs. Fersch stated it would probably be a sometime next year. Mr. Fix further clarified Mrs. Fersch is still working on the Purchasing Manual, however, with the budget preparation starting up it is not a high priority right now.

B. Review and request for motion to approve draft ordinance amending the 2008 appropriation, Ordinance 2007-85. Mrs. Fersch stated the appropriation request included an increase of $750 in the General Fund to cover an indigent burial expense, an increase of $25,039 in the Street Fund for the FMEA reimbursement, and an increase of $6,200 in the Police Fund for a part time police dispatcher. Mrs. Fersch stated she would be requesting later on the agenda for an amendment to the Pay Plan to add an additional part time dispatcher as we now have one dispatcher retiring in December and one who will be on National Guard duty for several weeks at the first of the year. She stated this $6,200 would cover the remainder of this year to bring someone on and get them trained so they would be ready at the first of the year. Mr. Smith clarified that our policy is that we pay the difference in salary for someone serving in the National Guard. Mr. Smith further clarified that the Expense Subcommittee had discussed outsourcing dispatcher services and it was determined we did not have an appealing alternative. Mrs. Fersch continued that under the Windmiller/Diley TIF Debt she was requesting a decrease of $50,000 as the note rollover was less due to additional principal being paid, and a decrease of $25,000 in the Cycle Way TIF Debt for the same reason. Mrs. Fersch stated the final appropriation request was an increase in Parks and Recreation transfers/reimbursements of $1,000 for refunds for park programs. Mr. Fix moved to approve and forward to Council; Mr. Sauer seconded the motion. Roll call was taken with Mrs. Sanders, Mr. Sauer, Mrs. Hammond, Mr. Wisniewski, Mr. Sabatino, Mr. Fix, and Mr. Smith voting “Yea.” Motion passed, 7-0.

C. Review and request for motion to approve draft ordinance authorizing the City Manager to enter into an agreement for participation in the Regional Council of Governments for the purpose of utilizing the Regional Income Tax Agency to administer and enforce the City of Pickerington’s income tax ordinances. (TABLED, 07/16/08) Mr. Fix moved to remove from the Table for discussion purposes; Mr. Sabatino seconded the motion. Roll call was taken with Mr. Sauer abstaining, Mr. Smith and Mr. Wisniewski voting “Nay,” and Mrs. Hammond, Mr. Fix, Mr. Sabatino, and Mrs. Sanders voting “Yea.” Motion passed, 4-2. Mr. Fix stated the Expense Subcommittee was most interested in finding ways to save money and we can do that with this program, to what extent he was not sure. He stated he felt we have to look at all the different resources they have that we need to think about. He continued he is appreciative of the Tax Department and he knows they have a great reputation for being helpful with people, but they do not have the ability to go to the IRS to find out who is paying what, and that is a big deal. Mr. Wisniewski stated he has no intention of doing anything on this issue until he finds out who has left the Council and why. Mrs. Hammond stated she has questions regarding the figure of $156,000 in savings, and Mr. Smith stated he thought the number was somewhere around $67,000. Mr. Fix stated he understood those savings to be before the Tax Administrator was considered. Mr. Wisniewski stated they are giving us a range and he has dealt with too many outsourcing firms who over promise, under deliver, and over charge in the end. He stated there are no hard figures relating to the range they are predicting. Mr. Fix stated he understood that, and he thought the estimate was based on actual taxes collected. Mr. Sabatino stated we also need to be cognizant of the fact that we are behind in the times in the way we do things in this department and for us to do everything that RITA can do, it would cost much more. Mr. Smith stated he felt there were three aspects to the equation in front of them; (1) that RITA's technology and contacts gives them a greater capability, (2) their statement that they find taxpayers that we don’t know about and he would like to know if there was a way of estimating what that would be, and (3) customer service. Mr. Smith stated he didn’t feel $67,000 in annual savings came near to coving the loss of customer service. Mr. Fix moved to Table; Mr. Sabatino seconded the motion. Roll call was taken with Mr. Sauer abstaining, and Mrs. Hammond, Mr. Sabatino, Mr. Smith, Mr. Fix, Mr. Wisniewski, and Mrs. Sanders voting “Yea.” Motion passed, 6-0. (TABLED)

6. PERSONNEL DEPARTMENT:

A. Personnel Director’s Report. Mrs. Fersch stated she had provided a written report, and she would answer any questions. Mrs. Fersch stated our consultant had brought the issue of extra points for military to her attention, and right now the Personnel Appeals Board does not have the authority to establish those extra points, and we have nothing on the books about it, so we fall under the State’s civil service, which means they get 20 percent of whatever the available points are if they pass the test. Mrs. Fersch stated we have always given military points, but not 20 percent. Mrs. Hammond stated she felt that was an average for what most governments give. Mrs. Fersch stated we will be using this unless it is changed by Council in the future.

B. Review and discussion regarding employee’s health insurance renewal. Mrs. Fersch stated Mr. Lombardo has several proposals from other insurance companies in case Medical Mutual comes back with a higher increase than we anticipate. She stated we will not receive the information from Medical Mutual until approximately the second week in October and we will need to get our legislation started in October as our contract expires at the end of the year. Mr. Sabatino inquired why we could not get the numbers until that late in the year and Mrs. Fersch stated insurance companies do not give a quote until 30 days before the end of the contract, so by getting it in October we are doing very well. She stated she just wanted to make sure that everyone was aware that when we get the information we will need to move forward with the legislation quickly. Mr. Wisniewski clarified that the employee’s contribution will be increased to eight percent next year; however, both union contracts have a not-to-exceed figure for their contribution.

Mrs. Fersch stated as she had explained earlier, she was asking for approval to forward legislation amending the Pay Plan to increase the number part time police dispatcher positions from one to two. She stated she had provided a memo to the Committee this evening detailing this issue. Mr. Fix moved to approve and forward the appropriate legislation to Council; Mr. Sabatino seconded the motion. Roll call was taken with Mr. Smith, Mr. Wisniewski, Mr. Fix, Mrs. Sanders, Mrs. Hammond, Mr. Sauer, and Mr. Sabatino voting “Yea.” Motion passed, 7-0.

7. CHAIRMAN:

A. Review and request for motion to approve draft ordinance regarding future road and bridge levies. Mr. Fix inquired if this could be discussed at the next meeting and Mrs. Hammond stated it would be continued on the agenda for the October meeting.

B. Review and discussion regarding Water Pollution Control Loan. Mrs. Fersch stated she had provided a Debt Schedule Sheet for the Committee and when we needed money for the engineering for the plant we borrowed $775,000. She stated when we did the $8 million issue we combined all of the issues together so we could get a good rate, and that included the $700,000 as we had paid $75,000 on principal. Mrs. Fersch stated in the past when we have done these projects it always seemed prudent, so you could see the entire cost of the project, that it was rolled into the bigger issue when we borrowed for the construction. Mrs. Fersch stated then when Ms Frommer contacted her to see if we were going to roll that $700,000 into the loan she thought it would be prudent especially as the interest rate is 3.24 percent. She stated if we renew it for notes we run the interest rate risk, so if we can lock in the lower interest rate and put it all together it will also be taken off of our direct debt limit. Mr. Wisniewski stated this had been discussed in Service and he just wanted to clarify that basically we were taking the $10 million for construction plus projected cost overruns, plus the $700,000 for this. Mrs. Fersch stated that was correct and the construction administration contract is also added into this loan. Mr. Wisniewski further clarified we are not paying back any funds or anything; we were just going to borrow what is necessary construction and the $700,000 to retire those notes. Mrs. Fersch stated that was correct, and when this note comes due that is when we will do the draw on the loan. Mr. Sabatino inquired if we have paid DLZ everything, and Mrs. Fersch stated she did not know if they had submitted their final bill as yet. Mr. Sauer inquired what this would do to the rate schedule the Utility Fees Review Committee put together, and Mrs. Fersch stated right now we don’t know what it will project to do the extra $1.2 million. She stated Mr. Drobina is trying to make sure his expenses are within a certain percentage, and we will be watching that as well as working on a strict shut off and collection policy for delinquencies. Mrs. Fersch further stated with having the low interest rate that will probably offset the difference. Mr. Fix clarified that according to the projections of revenues and expenses of the system included in the application and prepared by Ms Frommer, we should not have to raise our rates for quite some time.

8. OTHER BUSINESS:

A. Pickerington Local School District Board Meeting – Update. Mrs. Sanders stated she was not able to attend the last meeting.

B. Review and discussion regarding draft ordinance authorizing the execution of an amendment of Guaranteed Maximum Amount Construction Contract for the extension of Stonecreek Drive in the City. Mr. Hansley stated this is the Equity TIF, and because of the slow down in the economy, especially in office space, they have requested an extension to give them more time to develop the office, it is not changing the amount of time at the end of the contract. Mr. Hansley stated he and Mr. Grasbaugh, our TIF attorney, have met with them and they are both recommending this change. Mr. Hansley stated Mr. Grasbaugh will be available to attend Council when this would have its first reading and he would recommend it be forwarded to Council and detailed discussion can occur at that time. Mr. Hansley stated it is a fairly simple amendment to the contract. Mr. Hansley stated Equity has done everything for the City they promised, a first class road, decent outlets, and the Lifestyle Gym. He stated the only thing they have not been able to achieve is get a leased-up first tenant for office space, and he felt it was unfair at this point to force them to build something on spec when there is no tenant. Mrs. Hammond stated further if they would build something, then a different kind of tenant wanted to come in, they would have a building that wouldn’t suit their needs and we would all lose. Mrs. Hammond moved to forward the draft ordinance to Council; Mr. Sabatino seconded the motion. Roll call was taken with Mrs. Hammond, Mr. Smith, Mr. Fix, Mr. Sabatino, Mr. Wisniewski, Mr. Sauer, and Mrs. Sanders voting “Yea.” Motion passed, 7-0.

9. MOTIONS:

A. Motion for Executive Session under Section 121.22(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. Mrs. Hammond stated an executive session was not needed this evening.

10. ADJOURNMENT. There being nothing further, Mr. Fix moved to adjourn; Mr. Sabatino seconded the motion. Mrs. Hammond, Mr. Sauer, Mr. Sabatino, Mr. Smith, Mr. Fix, Mr. Wisniewski, and Mrs. Sanders voted "Aye." Motion carried, 7-0. The Finance Committee adjourned at 8:55 P.M., September 17, 2008.

RESPECTFULLY SUBMITTED:

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Lynda D. Yartin, Municipal Clerk