DRAFT

CITY OF ROCKY RIVER

JUNE 21, 2004

The Committee-of-the-Whole was called to order by Mrs. Bobst, President of Council, at 8:00 p.m.

Council Members Present: Mr. Gollinger, Mr. Hurtuk, Mrs. Bartolozzi, Mr. Hagan,

Mrs. Bobst

Absent: Mr. Potterfield, Mr. Frost

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

Assistant Law Director: Mr. Hotz

Press: Ms. McKenzie, Mr. White

The meeting was opened with the Pledge of Allegiance.

MAYOR'S REPORT:

Last Friday the annual seniors' luncheon was held with the guests of honor, those over 90 years of age. There are 240 residents over 90 in our City, 192 women and 48 men. Fourteen of those residents are over 100 and the oldest is 111. Forty-five first-time guests were present. The Mayor thanked members of City Council who were able to attend.

The Mayor attended a meeting this morning with the representatives of Bay Village and Lakewood and Congressman Dennis Kucinich. Also present was Bill Harris, the Norfolk-Southern legislative liaison from Columbus. The meeting was held to clarify issues and rumors currently circulating, and the Mayor reported that the status of the agreement is unchanged, i.e. there are no plans for change on the part of the railroad. Congressman Kucinich emphatically informed Mr. Harris that no changes could be made without discussion with the three mayors whose cities are impacted and are signers of the agreement.

Mayor Knoble was also happy to report that a review of the bonding amount necessitated by capital improvements is projected to be less than the preliminary estimate. The exact number can be determined when the Wooster Road figures are final, but he indicated that the number would be closer to $7 million than $7.6 million as originally thought.

The budget numbers for May are in, and for the first five months, or 41 2/3% of the year, most expenditures and revenues are where they should be. Interest income is down, of course, because of rates, but up on some major items. In general, the Mayor reported that everything is tracking well; the Court is holding up well, and most departments' expenses are well below the 41% level at the mid 30's. Council members with questions should call the Mayor.

The annual report of the Cuyahoga County Juvenile Court has been received, and the Mayor compared this year's figures with last year's. The numbers for Rocky River are up slightly, from 38 juveniles referred in 58 cases and 107 charges in 2002 to 40 juveniles in 56 cases with 111 total charges in 2003. Those figures compare favorably with other west side suburbs. The Mayor noted that these figures do not include youngsters enrolled in the Juvenile Diversion program. The report will be available in the Clerk's office.

Director Linden has found a potential substitute for the scooters needed by the Service Department. The 3-wheel vehicles were test-driven around the City. Advantages include a 4-cylinder Hyundai engine and a motorcycle classification so it can be legally driven in the street. Unfortunately, it is not inexpensive, but there is a possibility that we may be able to use it.

An article appeared in the Plain Dealer June 17 about the Lakewood Dog Park noise testing.

UNFINISHED BUSINESS:

Ordinance No. 64-04: This issue concerns the bill for meter readings from the City of Cleveland, necessary so that our City can do sewer billing. Mr. Hurtuk has not had success in discussing the issue with Cleveland, but he said that he would try once more. He will limit his efforts, however, and if no resolution can be negotiated, he will move for passage at the Legislative Meeting following June 28. For the next meeting, however, the ordinance will remain on hold.

Ordinances No. 84-05, 85-05, 86-05 and 87-05: These ordinances, establishing drive-through service businesses, will be discussed next week. They will not be referred to the Planning Commission until they have been discussed at next week's meeting of the Planning, Zoning and Economic Development Committee.

Ordinance No. 90-04: This ballot issue would allow voters to decide if the Mayor should appoint chiefs for the Fire and Police Departments. Mayor Knoble indicated that Council would receive much information regarding this situation. He said that this subject was about only one thing: leadership. This is not a personal issue and will not affect those now in office. He wants the best person possible for the job.

To those who maintain that this would make the appointments political, he pointed out that, since taking office, he has appointed the following: Economic and Community Director Kory Koran, Jason Frolo to the Rec Department, building inspectors Pat Nugent and Clayton Zell, Human Resources Administrator Sue Whitman, Sr. Services Director Carole Calladine and Finance Director Mike Thomas. All these appointments were made after extensive searches and numerous interviews. Four Service Department employees were taken from the ranks of part-time CDL drivers at the recommendation of the Service Commissioner and the Safety-Service Director. One patrolman was hired at the recommendation of police officers and two fire fighters, the second through a policy adopted whereby three captains interview and recommend their choice-even though this candidate needed training and others already had full qualifications, which meant additional expense for the City. Rob Crowe was made Fire Prevention Officer at the recommendation of the Chief, Mary Kay Costello became Mr. Linden's secretary, Mike Reyes in the Service Department and Evelyn Briggs in the Fire Department all were promoted from within on the recommendation of the department heads. In no case did any political consideration take place in these promotions.

The Mayor further stated that to allay concerns that in the future there could be problems, he would accept amendment of the ordinance to require the approval of Council, even though this would erode the strong-mayor form of government that we have. He emphasized once more that this is not about personality, but about leadership to provide the crucial services for citizens. He urged passage so that the issue can go to the ballot.

Mr. Hurtuk asked about the Charter Review Commission which had reviewed the issue and decided not to recommend it, even though they had many other issues on the ballot. The Mayor explained that he did not attend meetings of the Commission unless invited to testify for the same reason that he did not attend the meetings of the Recreation Facilities Task Force: he did not want anyone to think that he was trying to influence the group. He made the recommendation, which he considered seriously significant. A campaign, however, was waged by employees of the City. The Mayor also noted that statewide, the majority of chiefs are appointed.

Mrs. Bartolozzi asked how the current choices are made. The Mayor responded that when an opening occurs, a chief's test is given to officers of the department (lieutenants or captains in the Fire Department and sergeants or lieutenants in the Police Department) who choose to take the test. The choice is made by the Mayor from the three highest scorers. The last test was in the Fire Department, and no captains chose to take the test, so a lieutenant was moved to the position of chief. Mrs. Bartolozzi then asked how the decision was made. The Mayor noted that he did not make that decision, but that for him, the most important quality is leadership. In a position where the aim is to improve services to citizens and contain costs, leadership is essential. His first choice would be from the existing forces, but in a 30-person department, it may be that those qualities are not present at any given time.

Mr. Hagan wondered if, after appointment, the position would still be covered by Civil Service. The Mayor commented that remained to be worked out, and that he was not sure if it was legally possible. The Charter says that all regular members of the police and fire departments are under Civic Service and the only others are those so designated by Council.

Mr. Hagan asked if they are currently under Civil Service. He noted that even in a large city like Cleveland, many officers are reluctant to take the examination for economic or other reasons.

Mr. Gollinger asked if the tests for chief are standardized. Mr. John Corry, Chairman of the Civil Service Commission, said that, except for some minor modifications, they were.

Another question raised was what would happen if no officer chose to take the examination. Mr. Hotz, advisor to the Civil Service Commission, said that the test would then be open to fire fighters. If no one passed, retesting would have to be done.

Mrs. Bobst noted that the Charter Review Commission had looked at the issue on two occasions, discussing the current procedure and proposals for change. It would be interesting to know why they opted not to place the issue on the ballot. The Police Department is different from the Fire Department because the economic incentives are not the same. She has received a letter from the president of the Rocky Rive Firefighters which will be entered into the record next week.

Mrs. Bartolozzi asked if the Civil Service test can be opened to firefighters from other cities, particularly those in the westshore area. This would allow more choice in finding leadership qualities and a greater number of people who want the position. The Mayor commented that legal research would be needed. At present, candidates are confined to our City's departments.

Mr. Hurtuk asked the Clerk to write to Charter Review members asking them to attend one of the next two legislative meetings to discuss that commission's ideas on the issue.

Mr. Gollinger commented that he was not comfortable with amending the ordinance for Council approval of appointments. He felt that it should be the Mayor's responsibility, and that that aspect should be maintained.

Resolution No. 91-04: This was read for the first time last week. On July 28, this will be discussed at the meeting of the Contracts Committee, so it will have a second reading next week.

Ordinance No. 93-04: This ordinance authorizes Brandstetter Carroll Zofcin, the firm which designed the outdoor pool, to perform contract administration during construction. Mrs. Bobst observed that the City has been on a path which would separate design, contract administration and resident observation. She turned to Mr. Patterson, Director of Recreation, who noted that in this unique situation where pool construction requires special expertise, Brandstetter Carroll Zofcin is one of the best in the state, surpassed only by a firm in St. Louis who is recognized as foremost in the country. This local firm is eminently qualified.

Ordinance No. 94-04: Mr. Hurtuk indicated that Mr. Lesiecki will answer more questions, but this ordinance authorizes services which were necessitated by changes in the original contract for Tonawanda and Pocono. This will have a second reading next week as there is no reason not to move forward.

Ordinance No. 95-04: This is a housekeeping issue from Director Wollenzier. Mr. Hurtuk has not yet spoken to Ms. Wollenzier, but he will call her this week so that details of the relatively small adjustments made can be clarified.

Ordinance No. 96-04: This ordinance also was read for the first time last week. Mr. Hagan turned to Mr. Linden who explained that in an effort to economize and streamline operations, the City will order janitorial supplies from one supplier. Nine bidders submitted prices for some 79 items, and the lowest bidder, Corporate Express, was interviewed. Their representative asserted that their company can satisfy the City's needs, and in fact, will allow us to cancel the contract if we are not satisfied after 60 days.

Ordinance No. 97-04: This ordinance establishes Council's recess in August, and will remain on the agenda. Mrs. Bobst reiterated that, barring travel plans, Council members would be available if needed during the month.

Ordinance No. 98-04: Mr. Hurtuk is waiting for details from Ms. Wollenzier.

MISCELLANEOUS BUSINESS:

Nuisance Charge Ordinance: The consideration of this ordinance was prompted by a newspaper article announcing that Shaker Heights would now charge homeowners when the police had to be called frequently. In a long conversation with Chief Wagner, Mrs. Bobst ascertained that a similar ordinance would not be necessary at this time in our City because the Code provides several methods to cite individuals who create problems for the department. Further, he would not want anyone to hesitate to call for help. Mrs. Bobst reviewed the software which tracks calls so that patrolmen know what previous calls have been made from that address before they answer the call.

Recreation Facilities Proposed Improvements and Related Ballot Issue: Mrs. Bobst indicated that this topic was discussed at last week's joint meetings of the Parks and Recreation Committee and the Finance Committee. At those meetings, additional information was requested of Director Patterson.

Mr. Patterson came forward and presented Council members with a proposed budget for the Civic Center which includes the existing portion, (gym, track and cardio fitness equipment) as well as the proposed additions. He said that this would give a better view of the entire budget for the Civic Center. First, he noted that these were, in some cases, his best guess. Because positions overlap and the Civic Center is not separately metered, exact figures were not always possible. Reviewing his report, he explained, in many cases, how he arrived at figures which show that the estimated cost for current operations is $324,900. City Architecture has calculated the operating cost of the proposed addition at $577,000, and Director Patterson has added $99,500 for additional instructors and supplies. In his revenue estimates and projections, he noted that no revenue from rentals, daily admissions, concessions, or parties have been included. The current revenue is $174,000 which means there is a deficit of approximately $150,000. With the projected revenues for the additions at $822,000, the projected deficit is approximately $199,000. Mr. Patterson indicated that these are conservative numbers.

He also made a series of calls since the last meeting, asking other recreation directors about their experiences with existing facilities.

• •Brunswick is in its 13^th year of operation with a 50,000 sq. ft. facility. Their operating budget is $1.2 million. At opening, they had 17,000 members which is now down to 8000. Their revenues are $900,000. This facility was one of the first built, and has a traditional pool and small fitness center. The city's population is over 34,000.
  
  
• •Independence has a population of 7200 and a membership of 6300. Family fees there are $60 per year and individuals, $40. The operation is subsidized for the 10-year-old facility. A 2.1 mill property tax built the facility and it is operated through income tax.
  
  
• •Strongsville, with a population of 43,000 has a 5-year old facility with 18,000 members which has remained almost consistent since their opening. Of the memberships, 90% are residents, the remainder corporate or non-resident. The opening of this facility had an impact on the Brunswick facility because the cities are neighbors.
  
  
• •Westlake, with a population of 34,000 is in its 6^th year with 12,800 members, all residents or corporate. At opening, there were 15,000 members.

• •Middleburg Heights, population 15,000 with 7800 members, both residential and corporate. It is funded by an income tax which went from 1.25 to 2%, according to their Recreation Director. Originally there was a 100% credit which is currently at 75%.

Mayor Knoble, when asked his views, observed that he had just received the figures with Council members and had not yet had an opportunity to study them. Based upon these figures, he suggested that if revenue figures did not meet projections, then hours of operation might have to be scaled back.

Mr. Hurtuk noted that the Mayor had suggested withdrawing some part of the rink figure from the ballot issue and asked for an exact number. He also expressed concern, not just about the cost of construction, but the ongoing operational costs. He found this evening's information encouraging, and the estimate of 26% participation was on the lower side, since many cities have retained 1/3 to ½ of their initial members. He wondered, however, if this would continue as the novelty wears off. He would not like to create operating costs that could not be covered. Mr. Patterson maintained that the estimates were low, and Mr. Hurtuk said he was happy that the task force took a very cautious approach. It is more than a "bricks and blocks" project, but how to pay for ongoing operating expenses. Mr. Patterson said that another possibility would be to open the center to non-residents.

Mrs. Bobst complimented Mr. Patterson and his staff who have looked at the future to see what will be wanted and needed by residents. They have created interest in current programs to recruit participants and done a tremendous job which she said she was sure would continue. City Architecture has done a great job with projections, but she acknowledged that looking at operating costs made the decision very difficult. Mr. Patterson also complimented members of the Recreation Facilities Task Force.

Mrs. Bartolozzi also finds the decision difficult. She thinks the plan is wonderful, but she, too, is concerned about the operating costs.

Mr. Hagan commented that the Task Force did a fantastic job. This is a difficult decision, especially in the face of the 2005 budget review which will come up shortly.

Mr. Gollinger remarked that the Task Force was made up of fine, talented individuals who did an excellent job. He pointed out, however, that over the next years, costs will increase, but the dollar amount of revenue will not unless fees are also increased. Shortening hours of operation could also curtail memberships. He has placed value on the information of City Architecture, but he pointed out that the leap from revenue of $70,000 to $662,000 is great. If it does not materialize, then money must be found from the General Fund

Mrs. Bobst reminded Council members that the job will be to decide whether to send the issue to the ballot and if so, the total dollar amount. She said that much of the work proposed on the ice rink is renovation, beyond maintenance, and she would like to see this included. A lot of hard work has gone into the project already on the part of the Task Force with surveys, and outreach to the community. She would hate to lose what has been accomplished. The decision will be made in a week or so, so that if it will go to the ballot, the process can continue.

Mrs. Bartolozzi asked what would happen if it went to ballot and it was defeated. Mrs. Bobst indicated that Council would listen to residents, and their feedback would be needed to ascertain why. Perhaps it was the timing, or they felt the facility was too large. Although surveys indicated that residents would favor such a center, perhaps the dollar amount needed was too high.

Financing Options for the Improvements and Expansion to Recreation Facilities: Mr. Hurtuk explained that last Wednesday, discussions on this topic had begun at the meeting of the Finance Committee. One topic discussed was the Task Force recommendation of a levy attached to real estate tax bills or alternatives such as a potential increase in the current 1.5% income tax. No decision has been made. Mr. Hurtuk does not feel that Council is in a position to make that decision yet as he is waiting for some numbers for debt service for the bonds being issued. Also under consideration is the refinancing of $6 million with projected savings which are not a simple calculation.

• •The Mayor reported that the bond, which was $6 million originally is now at $3.1 or $3.2 million, so the total of both issues could be $10 million to $10.5 million with some projected savings.

The repayment will be a significant expense for an extended period. Council needs to be prepared to state its recommendation. It would be easy to place on the ballot, but that would be selfish. Mr. Hurtuk feels Council must look at long-term costs, and feels more comfortable after Mr. Patterson's information. If necessary, another meeting of the Finance Committee will be scheduled.

Mrs. Bobst asked the Mayor for the current value of a 1-mill increase. The Mayor looked at the schools' financing and stated that one mill would mean $690,000 of potential annual income. (Note: subsequent research shows that the schools would receive $690,000, but the City would receive $655,000.)

Mr. Hurtuk asked if the new Finance Director had looked at the project as yet. The Mayor said that he had run into a problem closing in Richmond Hts, and will not be available as much as he would like.

Mrs. Bobst had questions for the CCA as to an income tax rate increase from 1.5% to 1.75% with full credit to residents and how much that would generate. Mr. Hurtuk observed that with a 100% credit, people who work here but don't live here will help pay for the facility. He asked if the Task Force has an opinion on why one option is better than another. Mr. Patterson said that he would be meeting with them tomorrow evening and would ask them.

Current Bonding Needs: Mr. Hurtuk commented that the $7 million bond has been discussed in rough terms and the refinancing of the original $6 million which now has a $3.1 million outstanding balance.

Mrs. Bobst raised the question of how the bonds were to be issued. She noted that in the past, a competitive bidding bond process had always been used. The negotiated process is also available for use under certain conditions. She felt that information on both needs to be presented so that the decision can be made. The Mayor added that if the negotiated process is to be used, requests for proposal need to be assembled. He further noted that to refinance existing bonds, the City must use the negotiated sale process. Mr. Hurtuk indicated that in two weeks, on July 6, Mr. Matty would be present. The Mayor asked for the decision to be made as quickly as possible so that the process can get under way.

• •Mrs. Bobst quoted Harold Babbitt, representing our bond counsel, Calfee, Halter & Griswold, who stated that the $3.1 million must be in a negotiated sale. Putting it together for a $10 million bond would give the City an advantage. She also said that there are advantages to a negotiated sale which allows bonds to be offered on the best day at the best time.
• •Mr. Hurtuk promised to call Mr. Matty and Mr. Babbitt tomorrow morning so that information can be disseminated and a straw vote taken next Monday evening.
• •Mr. Hagan commented that, as stewards of City funds, he would like to discuss options with the bond counsel as to the best way to sell the bonds.
• •Mr. Gollinger concluded that if Mr. Babbitt recommended a negotiated sale, he would be comfortable with that, but that he would be prepared to discuss it further.
  
  
  
  

COMMITTEE REPORTS:

Finance Committee: Mr. Hurtuk reminded members of the Finance Committee that a meeting has been scheduled for July 19 at 7:00 p.m. to discuss the 2005 budget.

Parks and Recreation Commission: Mrs. Bobst mentioned that the Commission met last week.

• •The 2004 Learn-to-Swim program has 803 participants; the adult soccer league has 29 teams registered. The Rec Department will also be hosting adaptive soccer.
• •On July 15 there will be a youth equipment resale.
• •Since residents are now permitted to rent the gazebo and shelter at Rocky River Park, reservations have been made for almost every weekend.
• •June 27 will mark the first Concert in the Park at Rocky River Park.

NEW BUSINESS:

Ordinance No. 99-04: As part of the work of the Beautification Committee, a tree stock inventory has been proposed. The Mayor and Beautification Committee have chosen this firm which has a background in this field. The funds have been provided for as part of the Beautification Committee's budget.

• •The Mayor added that he consulted Alan Siewert, the Urban Forester based in Middlefield assigned by the ODNR to our district. Mr. Siewert indicated that only two firms do this type of work, Davey Tree and this firm, which is used by Bay Village. This is a personal services contract. We will be given, as part of the contract, computer-generated listings of city-owned trees for future planning, maintenance, planting, etc.
• •Mrs. Bobst mentioned that the document can also be updated as changes are made by the City.
  
  

Ordinance No. 101-04: This ordinance, which deals with the sale of municipal property will be read once next week and returned to the Contracts Committee. It may be discussed at the meeting of the Contracts Committee if time permits following the discussion of the updated Cox Cable contracts on July 26.

COMMUNICATIONS AND ANNOUNCEMENTS: NONE

MISCELLANEOUS BUSINESS:

Mrs. Bobst thanked Mr. Hurtuk in advance for presiding at next week's meeting while she is out of the area.

As there was no further business by members of Council, the meeting was adjourned at 9:45 p.m,

_____________________________ _____________________________

Pamela E. Bobst Misao Kurokawa

President of Council Clerk of Council

Please note: This is a draft copy of the minutes of the meeting of the Committee-of-the-Whole of June 21, 2004. These minutes may be revised or amended at the next Legislative Meeting.