CITY OF ROCKY RIVER

MARCH 27, 2006

Regular meeting of Council was called to order by Mrs. Bobst, President of Council, at 8:00 p.m.

Council Members Present: Mr. Gollinger, Mr. Frost, Mr. Hurtuk Mr. Hagan, Mrs. Bobst

Absent: Mrs. Bartolozzi, Mr. Moran

Administration: Mayor Knoble, Mr. Linden, Mr. Thomas

Law Director: Mr. Bemer

Press: Mrs. McKenzie, Ms. Woodarsky

The meeting was opened with the Pledge of Allegiance.

MOTION:

Moved by Mrs. Bobst, seconded by Mr. Hurtuk, that an Executive Session be held immediately to discuss preparing for, conducting or reviewing negotiations or bargaining sessions with public employees concerning their compensation or other terms and conditions of their employment under Article X, Section 6, Subsection 4 of the Charter.

Vote: Gollinger - aye Frost - aye Hurtuk - aye

Hagan - aye Bobst - aye

5 ayes 0 nays PASSED

The meeting was reconvened at 8:13 p.m. following the Executive Session.

MOTION:

Moved by Mrs. Bobst, seconded by Mr. Hurtuk, that the reading of the minutes of the Legislative Meeting and Public Hearing of March 13, and the Special Meeting, the meeting of the Committee-of-the-Whole and the Executive Session of March 20 be waived and that the minutes be accepted as submitted.

Vote: Gollinger - aye Frost - aye Hurtuk - aye

Hagan - aye Bobst - aye

5 ayes 0 nays PASSED

MAYOR'S REPORT:

This past weekend the biennial ice show was held and featured 200 young people who are participants in the Learn to Skate and other programs. On both Saturday and Sunday, 800 spectators attended the very successful event.

The West Shore Council of Governments (COG) met and approved the budget for this year, including many programs such as narcotics enforcement, hazardous devices and hazardous materials. There will be no change in dues, partly because a $180,000 grant was received which will pay for a fully-equipped hazmat truck. Funds which had already been accumulated for that vehicle can now be used for other expenses.

On Wednesday, a ribbon cutting for the Central Dispatch unit will be held in a wing of the St. John Westshore emergency room at 9:30 a.m.

Mayor Knoble then noted that property immediately to the north of the Senior Center has become available for sale. Four deep lots, totaling 2.83 acres are on the open market. He asked that Council look carefully at this property because, with the expansion of the Don Umerley Civic Center, the City is out of room in this complex.

LAW DIRECTOR'S REPORT:

Mr. Bemer has received the monthly report from Norfolk-Southern. For the month of February, an average of 3.6 trains per day passed through the City, an increase of about two per day over January.

Quiet Zone deliberations are ongoing. An anticipated meeting with a consultant to help determine costs was cancelled.

With the efforts of Mayor Knoble and Finance Director Thomas, the Law Director is beginning to review the City's records retention protocol considering guidelines of the Ohio Historical Society and practices of surrounding communities. The question is how long records need to be kept. The policy is being reviewed.

Discussion: Mrs. Bobst requested consideration of the question of the taping of Council meetings for the purpose of drafting minutes, and how long those tapes would need to be retained if that is their only purpose.

COMMITTEE REPORTS: NONE

COMMUNICATIONS AND ANNOUNCEMENTS:

Mrs. Bobst announced that the Recreation Department has received a very generous donation from A.J. Perry Martial Arts, the proceeds of a "Kickathon". They have requested that it be used for recreation scholarships. She thanked the students and the school for their generosity.

A notice has been received from the Rocky River Board of Education that a position is available as trustee for the Rocky River Public Library. Resumes and letters of qualifications will be accepted through April 28 and any interested candidates should send those materials to the Rocky River Board of Education.

E-mails have been received from Michael O'Shea (Exhibit "A") and from Charles Bartsche (Exhibit "B")

AUDIENCE PARTICIPATION:

Chuck Bartsche, 20200 Kramer Dr., commented on the Law Director's compensation. He expressed his concern about compliance with Article III, Section 11 of the Charter as well as Ordinance No. 76-05. Noting that expenditures for the Law Department had remained level for four years, he urged Council to adhere to the same budget guidelines. Further, he urged Council to stay within the guidelines of Division(A)(1), Section 2921.42 of the ORC which prohibits a law director from hiring business associates. He thanked Council for its efforts to keep Rocky River a first-rate city. (See Exhibit "B")

Michael O'Shea, 21714 Aberdeen: also addressed the budget of the Law Director. Referring to Article III, Section 11 of the Charter (See Exhibit "A"), he stated his opinion that this section does not apply to compensation of employees of the Law Department. He feels that the Law Director has the right to appoint employees within the budget. Council, however, has the authority to set compensation. In order to have a greater presence at City Hall, he needs the services of clerical staff, as employed by the Mayor and Council. He pledged not to increase the budget except by the amount necessary to be safeguarded with Mr. Matty's services. (See Exhibit "A")

MOTION:

Moved by Mr. Hurtuk, seconded by Mr. Gollinger and Mr. Hagan, that Ordinance No 12-06 be amended as to the exhibit.

Discussion: This amendment to the budget ordinance was explained by Mr. Thomas. On the first page, the date of the Public Hearing was added. Subsequently, amounts were amended according to revised pages distributed by the Finance Director. The changes were necessitated by differences in the actual amounts of bidding of contracts vs. estimates, and two grants which changed figures in the Economic Development budget and the Senior Center budget. Labor contract changes remain to be made.

Vote: Gollinger - aye Frost - aye Hurtuk - aye

Hagan - aye Bobst - aye

5 ayes 0 nays PASSED

AMENDED ORDINANCE NO. 12-06 BY BRIAN A. HURTUK

AN EMERGENCY ORDINANCE TO MAKE APPROPRIATIONS FOR THE CURRENT EXPENSES OF THE CITY OF ROCKY RIVER, OHIO, DURING THE FISCAL YEAR ENDING DECEMBER 31, 2006 AND TO REPEAL ORDINANCE 181-05

3^RD READING

Moved by Mr. Hurtuk, seconded by Mr. Frost, that Amended Ordinance No. 12-06 be passed as read:

Discussion: Mr. Hurtuk commented on the budget process: the draft is based on dialogue between the Mayor and his directors and commissioners over the period of about a month, and is brought to Council in late January.

• Budget meetings then begin, the first usually a daytime meeting with the directors and commissioners. Their inclusion in the process helps Council understand their needs. He does not believe that a budget should be built upon last year's, but rather than it should start from the beginning each year, considering fixed costs such as payroll.

With the strong mayor form of government, Council does not set policy. Rather, Council is charged with the responsibility of approving appropriations.

• Discussions continue at meetings of the Committee-of-the-Whole. The budget is a working document, so revenues are monitored on a monthly basis and the total appropriated may be spent by 12/31 if revenues are as projected. Mr. Hurtuk pointed out that just because amounts are in the budget does not mean that they will be spent.

Mr. Hurtuk then briefly touched upon the three key revenue sources:

• Payroll taxes, which have been constant but have not increased. The City has almost 750,000 sq. ft of office space of which 150,000 sq. ft is vacant. Also important are property taxes and estate taxes.

Before proceeding to a discussion of estate taxes, Mr. Hurtuk stated that Council does not create line item vetoes. That is up to respective department heads. He then turned to Mr. Hagan who has expressed concern about the Permanent Improvement Fund.

• Mr. Hagan commended the Finance Chairman on the budget process. He then expressed his concerns as discussed at the meeting of the Finance Committee of February 27. Historically, monies received from estate taxes have been deposited in the Permanent Improvement Fund and transferred as needed for equipment purchases, capital improvements and operating expenses. Following their audit of the City's finances, the auditors strongly recommended a correction to the City's transfer transactions. Mr. Hagan feels that, as a charter city which favors home rule, that with a consensus of Council, legislation can be passed which will specify how funds are to be handled during the year. This may satisfy the auditors and allow Council to maintain a Permanent Improvement Fund. He proposed that the Permanent Improvement Fund be reinstated and that estate taxes be placed in the fund.

Mr. Hurtuk recalled from the meeting of February 27 a discussion of the concept of a percentage which could be transferred to cover expenses other than equipment or capital improvements. He asked the Mayor if he would be comfortable with that procedure.

• The Mayor responded that the Administration would follow the state auditors and the state law that estate taxes are to go into the General Fund unless an ordinance is passed first.

Mr. Hurtuk asked if transfers can be reversed after the budget is passed.

• The Law Director asserted that an ordinance is not necessary before the passage of the budget, and the Finance Director noted that supplements may be passed at any time. As yet, transfers are not recorded and no reversals would be necessary. In response to Council inquiry, he stated that the Permanent Improvement Fund balance is unencumbered. He felt that having an ordinance in place would meet the requirements of the state auditors.



• Mr. Frost asked how much notice is given by the Auditor of funds due the City in estate taxes. Mr. Thomas responded that funds are distributed twice a year, in May and October. He can, however, call and determine dollar amounts available at any given time. Mr. Frost requested that he do so.

Mr. Hurtuk requested that Mr. Bemer, with input from Mr. Hagan and Mr. Thomas, prepare an initial draft expressing Council's intent for discussion in April meetings. Even with three readings, passage may be possible before May distributions.

• Mr. Hagan requested assurances from the Administration that, upon drafting and passage of the ordinance, it will be possible to recreate the Permanent Improvement Fund and to re-establish the fund with the balance as it stood at the end of 2005. Further, that with those funds replaced, that new funds received from estate taxes will be handled according to ordinance. Mr. Hurtuk asked that the Finance Director make no further transfers and that the funds remain unencumbered, with no action taken.

Mr. Hurtuk commented that individual testimony on the budget is always welcome. He encouraged everyone to focus on the "big picture". From the Administration, he noted that he expects a budget that is in conformance with the Charter. If outside opinions are necessary, he would like those presented to Council.

• •Mr. Bemer commented further in regard to Article III, Section 11, referring to memoranda prepared and sent to Council. He said that he is forgoing funds set aside for the first three months of secretarial services. He hoped that this would free funds for the creation of a part-time position in his department. *See page 9



• •Mr. Gollinger stated, for the record, that he performed all of his own clerical duties and correspondence.

Mr. Hurtuk then indicated that another part of the budget included funds for Community Challenge. He noted that this year, he had not called upon that organization for testimony, since changes had not been requested, and Council had felt that monies given them were wisely spent.

• •Mr. Frost agreed, calling them a great asset, but he requested that in future years, they should be permitted to remind Council members of their many valuable services and the good work they do in the community.

Finally, Mr. Hurtuk noted that although Mrs. Bartolozzi and Mr. Moran were unable to attend the meeting, that e-mails from both reinforced their support of the budget. Mrs. Bartolozzi stated that she appreciated input from directors and that she is in support of the budget, (Exhibit "C") and Mr. Moran stated that he feels expenditures must be monitored, but that his vote would be to approve the budget. (Exhibit "D")

Mrs. Bobst expressed her appreciation for Mr. Hurtuk's leadership and the outstanding job that he had done with this year's budget. She noted his concern with increased needs as well as his desire to focus attention on revenues. She further thanked the Mayor for his leadership in asking his entire staff to cut expenses where possible and still maintain services to residents.

Vote: Gollinger - aye Frost - aye Hurtuk - aye

Hagan - aye Bobst - aye

5 ayes 0 nays PASSED

MOTION:

Moved by Mr. Hurtuk, seconded by Mr. Gollinger and Mr. Hagan, that Ordinance No. 13-06 be amended as to the exhibit.

Discussion: The amendment would change salaries according to the contract negotiated with the Fire Division. The contracts for the Fire Division and the Service Department cover changes during the next three years.

Vote: Gollinger - aye Frost - aye Hurtuk - aye

Hagan - aye Bobst - aye

5 ayes 0 nays PASSED

AMENDED ORDINANCE NO. 13-06 BY BRIAN A. HURTUK

AN EMERGENCY ORDINANCE CREATING POSITIONS AND FIXING THE ANNUAL SALARIES AND HOURLY RATES FOR THE APPOINTED EMPLOYEES IN THE SEVERAL DIVISIONS AND DEPARTMENTS OF THE CITY OF ROCKY RIVER

3^RD READING

Moved by Mr. Hurtuk, seconded by Mr. Hagan, that Amended Ordinance No. 13-06 be passed as read:

Discussion: See discussion above.

Vote: Gollinger - aye Frost - aye Hurtuk - aye

Hagan - aye Bobst - aye

5 ayes 0 nays PASSED

MOTION:

Moved by Mr. Gollinger, seconded by Mr. Hagan, that Ordinance No. 29-06 be amended as to the exhibit.

Discussion: The amendment will change the present district classification of the two properties from O-2 50' to O-3 100'. The zoning map was consulted at Mr. Gollinger's request, since he felt it appeared that the property was zoned O-3. The correct zoning is O-3.

Vote: Gollinger - aye Frost - aye Hurtuk - aye

Hagan - aye Bobst - aye

5 ayes 0 nays PASSED

AMENDED ORDINANCE NO. 29-06 BY FRANK B. GOLLINGER

AN ORDINANCE TO CHANGE THE DISTRICT CLASSIFICATION OF CERTAIN REAL PROPERTY KNOWN AS AUDITOR'S PERMANENT PARCEL NO. 301-15-018 & NO. 301-15-019 FROM ITS PRESENT CLASSIFICATION OF OFFICE (O-3 100') TO SERVICE MANUFACTURING IN ITS ENTIRETY AS FURTHER DESCRIBED IN EXHIBIT "A"

2^ND READING

This ordinance was discussed and voted upon during the meeting of the Planning Commission. When Mr. Gollinger asked for a closer examination of the map, it was discovered that the correct zoning is O-3 100'. Mr. Gollinger noted that O-3 is more egregious than O-2 as in the original request discussed.

Mrs. Bobst asked if the Planning Commission was aware of the correct zoning or whether it must be remanded a second time. Mr. Gollinger responded that he did discuss it, noting that what is asked is less egregious than the original request.

Asked for a ruling, Mr. Bemer stated that it must remain on the agenda of the Planning Commission for a second discussion.

ORDINANCE NO. 40-06 BY BRIAN F. HAGAN

AN EMERGENCY ORDINANCE AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT WITH QCI-CE INC. FOR OWNER REPRESENTATION SERVICES REQUIRED DURING CONSTRUCTION OF THE ADDITION TO THE DON UMERLEY CIVIC CENTER, AND AS FURTHER DESCRIBED IN THE ATTACHED EXHIBIT "A"

1^ST READING

This ordinance will be further discussed at the next meeting of the Committee-of-the-Whole.

ORDINANCES AND RESOLUTIONS UNDER CONSENT

ORDINANCE NO. 36-06 BY BRIAN F. HAGAN

AN EMERGENCY RESOLUTION AUTHORIZING THE MAYOR AND THE SAFETY SERVICE DIRECTOR TO PARTICIPATE IN THE OHIO DEPARTMENT OF TRANSPORTATION COOPERATIVE PURCHASING PROGRAM

1^ST READING

As there was not a quorum, ordinances on the Consent Agenda were read for the first time and will be further discussed at the next meeting of the Committee-of-the-Whole.

ORDINANCE NO. 38-06 BY BRIAN F. HAGAN

AN EMERGENCY ORDINANCE AUTHORIZING THE MAYOR AND SAFETY-SERVICE DIRECTOR TO ENTER INTO A CONTRACT WITH THE SHELLY COMPANY FOR THE DETROIT ROAD RESURFACING PROJECT IN AN AMOUNT NOT TO EXCEED $284,794.55

1^ST READING

See discussion for Ordinance No. 36-06.

ORDINANCE NO. 39-06 BY BRIAN F. HAGAN

AN EMERGENCY ORDINANCE AUTHORIZING THE DIRECTOR OF PUBLIC SAFETY-SERVICE TO PURCHASE JANITORIAL SUPPLIES FROM PARKER BROTHERS AT A COST NOT TO EXCEED $27,000.00

1^ST READING

See discussion for Ordinance No. 36-06.

MISCELLANEOUS BUSINESS:

Mr. Gollinger has met with the proprietors of Treats regarding the question of their liquor license. He requested that it be placed on the agenda for the Committee-of-the-Whole for further discussion and further encouraged members of Council to read the minutes of the BZA meeting of March 9 so that Council can assess the situation where the owners currently have a liquor license in a Local Business district.

• •Mr. Bemer will distribute copies of a relevant case brought to his attention by Mr. Beirne, the Building Commissioner, which concerns the City of Westlake. This could have a bearing on the discussion.

Mr. Hagan requested that materials he had obtained, "Design Review Guidelines" be placed on the agenda for discussion at the next meeting.

AUDIENCE PARTICIPATION:

Fred I. Sokol, 20021 Parkview, stated that he supports the Constitutional amendment which limits government. He said that anything that would limit government would limit taxes and as a taxpayer, he favors having less tax which would leave him more money for himself and his family.

As there was no further business by members of Council, the meeting was adjourned at 9:15 p.m.

_______________________________ _______________________________

Pamela E. Bobst Misao Kurokawa

President of Council Clerk of Council

*At the Legislative Meeting of April 10, by a vote of 6 ayes and 0 nays with one abstention, the following was added to the discussion of Ordinance No. 12-06 (See page 6):

"City Council requests an independent verification from either the State Auditor or Attorney General to confirm that the Law Director's request to hire a part-time secretary in the 2006 Budget is in accordance with the City Charter. City Council assumes and expects that all budgetary items in the 2006 Budget presented by the Administration are in conformance with the City Charter."