WEDNESDAY, MAY 4, 2011

REGULAR MEETING

7:00 P.M.

1. ROLL CALL. Mr. Sauer called the meeting to order at 7:10 P.M., with roll call as follows: Mr. Blair, Mrs. Hammond, Mr. Barletta, Mr. Fix, Mr. Sauer, Mrs. Sanders, and Mr. Wisniewski were present. No members were absent. Others present were Mayor O’Brien, Bill Vance, Lynda Yartin, Chris Schornack, Ed Drobina, Greg Bachman, Nate Ellis, and others.

2. APPROVAL OF MINUTES OF April 6, 2011, Regular Meeting. Mr. Fix moved to approve; Mr. Sauer seconded the motion. Roll call was taken with Mrs. Hammond, Mr. Fix, Mr. Blair, Mr. Barletta, Mr. Sauer, Mr. Wisniewski, and Mrs. Sanders voting “Yes.” Motion passed, 7-0.

Mr. Sauer moved for Executive Session under Section 121.22(G)(1)(b), Matters Involving an Employee or Public Official’s Employment; Mr. Fix seconded the motion. Roll call was taken with Mr. Sauer, Mr. Fix, Mrs. Sanders, Mrs. Hammond, Mr. Barletta, Mr. Wisniewski, and Mr. Blair voting “Yes.” Motion passed, 7-0.

Finance Committee adjourned into Executive Session at 7:13 P.M., and reconvened in open session at 7:30 P.M.

3. FINANCE DEPARTMENT.

A. Finance Director’s Report. Mr. Schornack stated he had provided a written report and he would be happy to answer any questions anyone might have. Mr. Fix clarified that 478 shut-off notices were a little higher than last month, but that tends to run in cycles. Mr. Fix further clarified the 64 disconnects last month was a little higher than average as well.

B. Review and request for motion to approve draft ordinance amending the 2011 appropriation, Ordinance 2010-91. Mr. Schornack stated the Committee had received a draft appropriation ordinance and reviewed all of the appropriation requests. Mr. Schornack stated later on the agenda he would be requesting approval of a resolution to create the Safe Routes to Schools Fund. Mr. Fix moved to approve and forward to Council; Mr. Blair seconded the motion. Roll call was taken with Mrs. Sanders, Mr. Sauer, Mrs. Hammond, Mr. Wisniewski, Mr. Blair, Mr. Fix, and Mr. Barletta voting “Yes.” Motion passed, 7-0.

C. Review and request for motion to approve draft ordinance adopting the Five-Year Financial Forecast (2011-2015). Mr. Schornack stated this forecast had been reviewed at the recent Council Retreat and does include two additional police officers in the years 2012 and 2014. Mayor O’Brien clarified that this was one officer in 2012 and one officer in 2014 for a total of two officers. Mr. Fix inquired how this impacts our need to consider raising alternative revenues in the near future. Mr. Schornack stated we are projecting a year end balance of about $3 million and over the next four years we will be using some of that balance to help pave streets, add additional police officers, and maintain the same amount of staff that we currently have. He stated then in 2015 we would end with a $1 million fund balance which is just under 15 percent to carry over of our total budget. Mr. Wisniewski inquired what the plan would be then as at that point we would be out of reserves, we would be down to the bare bones minimum, and we have not addressed anything on additional funding of revenue. He stated we would have hired two new people and the IT person he thought was going to be discussed this evening, and also our City Manager has indicated our department heads are working 50 hour weeks to maintain the status quo as it is now. Mr. Wisniewski continued then that the plan for the next five years would be to have our department heads continue to work 50 hours a week with a bare bones staff. Mr. Vance stated to clarify the 50 hour work weeks, at this point in time we are going through a process where we are putting together a foundation and we have some historically significant efforts that we might not have in the next few years so he did not anticipate these work weeks would go on forever, but they would go on for the foreseeable future if we are going to keep progressing at the current rate of our current progression. Mr. Wisniewski inquired what these projects were that would be in the foreseeable future, but not indefinite. Mr. Vance stated there are things we are trying to accomplish in our development services department and that puts additional strain on those individuals, the City Engineer’s department is swamped with work, the City Services Director has a tremendous amount of responsibility that carries far beyond his work day, and we have a significant amount of evening meetings so a lot of the hours are spent in preparation for meetings that we have throughout the month. Mr. Vance stated once we get some of the new protocols in place, and we are essentially establishing a new HR department and a lot of the effort that is being put into the foundation of that department will not be necessary after the foundation is put in place, and that is essentially taking place throughout the entire organization. Mr. Vance stated we are going through a complete review of how we operate as a city and that review is not going to take forever, but it will take a significant amount of time from this point forward for the next couple of years. He stated he hoped that along the way we would get more successful in bringing new investors into the city because it obviously is the goal to create additional resources to hire additional personnel to allow us to move forward in a more efficient and proactive manner. Mr. Fix stated he felt it was important to note that this is a five year plan and has a number of assumptions in it and the goal is to review this five year plan every year just as we do the Capital Improvements Plan and to make adjustments to it as needed. Mr. Wisniewski stated he understood that, but he also had a two year forecast that showed we would be in the hole this year or last year. He stated he was under the impression the city is broke, we have no money, and now he has another forecast from the same department that says we are fine for another five years. He stated he was a little confused as to which forecast he was supposed to believe. Mr. Schornack stated he understood what Mr. Wisniewski was saying and he wrestled with that issue as well because that forecast was provided by a consultant and was done on a budget basis. Mr. Schornack stated in looking at it we were supposed to be $4 million in the hole at the end of this year. Mr. Fix clarified they were referring to the program that was provided in 2008. Mr. Wisniewski stated that was prepared by our financial advisor, which we still use. Mr. Schornack stated he would be bringing that up in the budget discussions because he felt we were at the point now that our finance department can run without the advisor. Mr. Wisniewski stated then Mr. Schornack was saying we should go five more years without a tax issue. Mr. Schornack stated he was saying he would recommend each year we analyze the results of the past year, put those in, and see how they project out another year. Mr. Sauer stated that would be Council’s call and he felt Mr. Schornack was just providing information that would allow Council to make a decision. Mr. Wisniewski stated the decision seemed to be that we were not going forward with a tax increase until some future date and it was pushed off for another future Council. Mr. Sauer stated his personal point of view in looking at the balances that are going to be on hand over the next couple of years, he did not see any reason to pursue such an issue at this point because it is not warranted. Mr. Wisniewski stated then 50 hour weeks for our employees, not having an IT staff, is acceptable behavior. Mr. Sauer stated the City Manger indicated the 50 hour work weeks are not an indefinite situation. Mr. Fix inquired if Mr. Wisniewski felt we should raise taxes now so everyone gets a 40 hour work week. Mr. Wisniewski stated he was asking if we really need to be spending down our balance on issues that our citizens might not think are the most important issues. He stated we were spending $300,000 to $400,000 a year for street paving when they are looking at the status quo as perfectly acceptable. Mr. Sauer stated status quo is not $20,000 a year for street paving because that doesn’t pave a mile of road. Mr. Wisniewski inquired how many years we have gone without street paving and Mr. Sauer stated he thought the question was how many more we could go without street paving. Mr. Wisniewski stated he did not know, and Mr. Fix stated last year Mr. Bachman had provided Council with information on what would happen to our streets over time if we just continued to do the $20,000 a year. Mr. Fix stated the idea was to have a picture of what things could look like over the next five years and each year Council creates a budget and each year this would be revised to look further down the road. Mr. Fix stated each year they will decide whether they spend $300,000 on paving or whether they spend $50,000 on paving. He further stated this is a long term view that allows council to see what is likely to happen if everything remains as it does today. He stated as things change they will have to make adjustments. Mr. Wisniewski stated one of the things that will probably come tonight will already make this invalid. Mr. Sauer stated everyone should keep in mind that this forecast is based on extremely conservative numbers, the worst case scenario, such as two percent increase in income tax over the next five years. He stated traditionally we look at a four to six percent increase. He continued it is also assuming no new growth in terms of economic development in the community and no new homes. He stated there is a lot of information in the forecast that could adjust upward, and Mr. Wisniewski stated it could also adjust downward. Mr. Wisniewski stated he was suggesting we try and define the budget according to the priorities the citizens just gave us and look at it a little more and put in some more realistic numbers and think about it instead of just jumping into putting IT in there. He stated he felt we should talk about other positions that may need to get funded, like a facilities person, like the IT. Mr. Sauer stated he felt that was primarily discussed at the Retreat, they discussed priorities. Mrs. Hammond stated she didn’t know if this was the time to talk about the IT, and everyone knows she is not in favor of spending money we do not have to spend, but she felt we really need someone here that can take care of all or the majority of all the technology needs that we have on a day-to-day basis. Mr. Fix stated we do not have an IT person on staff and we have IT needs. Mr. Fix moved to request the City Manager to create a job description and all of the appropriate documentation and bring that to a Special Finance Committee Meeting on May 17, 2011, at 7:00 P.M.; Mr. Barletta seconded the motion. Roll call was taken with Mrs. Hammond, Mr. Sauer, Mr. Blair, Mr. Barletta, Mr. Fix, Mr. Wisniewski, and Mrs. Sanders voting “Yes.” Motion passed, 7-0.

Mr. Sauer stated then the five-year forecast would need to be amended to include the IT position. Mr. Schornack stated when we come to the conclusion of the amount that needs to be added, he could update the forecast and have it ready for the Special Meeting. Mr. Wisniewski clarified that as far as a debt retirement plan in the forecast Mr. Schornack had shown paying notes off in a ten year period. Mr. Sauer stated he would like to give Mr. Schornack time to get the new figures showing the IT information and update the balances and have this on the agenda for the Special Finance meeting.

D. Review and request for motion to approve amending the General Fee Schedule to reflect current sewer tap fees. Mr. Sauer clarified that with the recent legislation reducing the sewer tap fees a motion of Finance Committee was necessary to amend the General Fee Schedule. Mr. Fix moved to approve amending the General Fee Schedule to reflect current rates; Mr. Sauer seconded the motion. Roll call was taken with Mr. Barletta, Mr. Wisniewski, Mr. Fix, Mrs. Sanders, Mrs. Hammond, Mr. Sauer, and Mr. Blair voting “Yes.” Motion passed, 7-0.

E. Review and request for motion to approve draft ordinance creating the Safe Routes to Schools Fund. Mr. Schornack stated this fund will allow him to account for the federal monies received through the Safe Routes to Schools grant. Mr. Fix moved to approve and forward to Council; Mr. Blair seconded the motion. Roll call was taken with Mrs. Hammond, Mr. Barletta, Mr. Fix, Mr. Blair, Mr. Wisniewski, Mr. Sauer, and Mrs. Sanders voting “Yes.” Motion passed, 7-0.

F. Review and request for motion to approve draft ordinance to adopt the 2012 Tax Budget and to schedule a hearing before Council for June 7, 2011, at 7:15 P.M. Mr. Schornack stated he had provided the 2012 Tax Budget for the Committee’s review and this budget must be adopted and filed with the Fairfield County Auditor prior to July 15, 2011. Mr. Fix moved to approve and forward to Council and to schedule a public hearing for June 7, 2011, at 7:15 P.M.; Mr. Sauer seconded the motion. Roll call was taken with Mr. Blair, Mrs. Hammond, Mr. Barletta, Mr. Fix, Mr. Sauer, Mrs. Sanders, and Mr. Wisniewski voting “Yes.” Motion passed, 7-0.

4. CHAIRMAN:

A. 2012 Budget Issues/Concerns.

(1) Blue Ribbon Panel – Update. Mr. Sauer stated given the five year update that had just been reviewed and the philosophy behind putting this panel together was based on a tax issue being needed. He stated given the five year plan he would like to know if there were a consensus to move forward with this panel or if it is deemed not relevant at this point. Mr. Wisniewski stated he did not feel the panel was necessary and Mr. Sauer stated that was his feeling as well. Mr. Fix moved to rescind the request for the Mayor to create a Blue Ribbon Panel to review the city’s financial situation; Mr. Sauer seconded the motion. Roll call was taken with Mrs. Hammond, Mr. Fix, Mr. Blair, Mr. Barletta, Mr. Sauer, Mr. Wisniewski, and Mrs. Sanders voting “Yes.” Motion passed, 7-0.

(2) Revenue Enhancement Timeline - Update. Mr. Sauer requested Mrs. Yartin update the Timeline to delete the Blue Ribbon Panel.

B. Discussion regarding water/sewer rates in the City for low usage customers. Mr. Sauer stated this was regard to a minimum rate. Mr. Fix stated when this was discussed a few years ago by the Expense Subcommittee it was determined that the minimum rate that we charge for low usage customers is the amount of money that it takes to cover our administrative costs. Mr. Drobina stated that was with regard to the $4.50 minimum charge for water. Mr. Drobina stated for sewer we use a minimum of 3,000 gallons. Mr. Wisniewski clarified that we have approximately 800 customers who use less than 3,000 gallons. Mr. Schornack stated if we reduced the 3,000 gallon minimum we would have to adjust our rates to go upward because the loss of revenues from that would cause our revenues to become negative in the future. Mr. Schornack stated it could be a potential loss of $140,000 annually in revenues. Mr. Fix clarified that most cities do have a minimum charge. Mr. Vance stated that a minimum charge also guarantees some stability where we can guarantee a certain amount that will come in every year.

Mr. Sauer ascertained there were no further questions regarding the minimum rate for sewer.

C. Discussion regarding scheduling a Council Work Session to discuss insurance options. Mr. Fix stated he had expressed a concern because when we have employee issues we have to hire a law firm and our insurance company decides whether or not they will pay for that. Mr. Fix stated he felt our insurance coverage left a tremendous amount of leeway for the insurance company to decide if they want to pay or not. Mr. Fix stated further he was hoping we could have our law director and insurance experts come in and explain what our exposure was, what might go wrong and what it might cost should we get into a situation. Mr. Fix stated he did not know if any of Council was educated enough to know exactly what our risk is so when decisions need to be made they actually have a pretty good idea of what the City’s exposure really is. Mr. Vance stated our insurance is under the Central Ohio Risk Management Association (CORMA) and we have been treated very well. He stated he felt a work session would be an excellent idea. Mr. Fix stated he wanted it clear that he was not saying our insurance coverage is bad or that there is anything wrong with it, he just did not have a comfort level that any of Council understood what we have and what we don’t have. He stated if there was a way to put together an education session for Council he felt that would be healthy. Mr. Sauer ascertained that everyone was in favor of scheduling a work session and requested Mrs. Yartin schedule a work session for a date in the latter part of June that would allow Council and the invited speakers to attend. Mrs. Yartin stated she would get that scheduled.

5. OTHER BUSINESS:

A. Review and discussion regarding sale of surplus equipment. Mr. Drobina stated he had provided a listing of equipment he would like to take sealed bids on and dispose of them. Mr. Fix questioned if sealed bids were the best way to maximize the revenue we could generate from this type of thing and Mr. Drobina stated as far as he knew the only other method was to have an open auction. Mr. Fix inquired if we could do E-Bay or something like that, and Mr. Schornack stated we might be able to do that now. Mr. Drobina stated he would check into that. Mr. Sauer moved to authorize the sale of the listed surplus equipment by sealed bids or other methods; Mr. Fix seconded the motion. Roll call was taken with Mrs. Sanders, Mr. Sauer, Mrs. Hammond, Mr. Wisniewski, Mr. Blair, Mr. Fix, and Mr. Barletta voting “Yes.” Motion passed, 7-0.

Mr. Wisniewski clarified that the Pickerington Pointe development would be submitting an application to the Board of Zoning Appeals for variances to the Residential Building Design Standards.

6. 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. Mr. Sauer stated an Executive Session was not necessary this evening.

7. ADJOURNMENT. There being nothing further, Mr. Sauer moved to adjourn; Mr. Blair seconded the motion. Mrs. Hammond, Mr. Fix, Mr. Barletta, Mr. Blair, Mr. Wisniewski, Mrs. Sanders, and Mr. Sauer voted "Aye." Motion carried, 7-0. The Finance Committee adjourned at 8:10 P.M., May 4, 2011.

RESPECTFULLY SUBMITTED:

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Lynda D. Yartin, City Clerk