CITY OF ROCKY RIVER

JULY 21, 2008

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

Council Members Present: Mr. Hunt, Mr. Shepherd, Mr. Furry, Ms. Arabian,

Mr. Long, Mr. Moran

Absent: Mr. Mylen

Administration: Mr. Linden, Mr. Thomas

Law Director: Mr. Bemer

The meeting was opened with the Pledge of Allegiance.

MAYOR'S REPORT:

Mr. Moran announced that Mayor Bobst is out-of-town for two weeks. In the Mayor's absence, a brief report was given by Safety-Service Director Linden.

The Daniel Scherry Memorial 5K Run this past weekend was very well-attended and successful, as reported to him by Lt. Hudec.

Paving for Cottonwood and Gasser, part of this year's paving program, has begun and will continue until late October. The full-depth concrete repair will be done last on both sections of Christensen Estates, Jameston and Struhar.

Mr. Linden then discussed the proposed ordinance which will grant authority to Cleveland Habitat for Humanity and A Piece of Cleveland to salvage housing materials from the Wallace house recently purchased by the City which will be demolished.

• •Mr. Bemer indicated that there is a significant degree of urgency to deliberate next week because the salvage process involves two different organizations that are interested in recycling different housing materials from the structure. He noted that proposals will be solicited early in August with demolition of the property is anticipated for early September. A Piece of Cleveland will seek flooring and wood which can be used for furniture making, and Habitat for Humanity would be interested in everything else: doors, moldings, windows, frames, etc. which could be sold to support their housing work. The Law Director noted that the ORC allows a municipality to liquidate property which is obsolete, has no use and has no value to the City. This must be done with coucilmanic approval which is why the ordinance will come to Council's next legislative agenda.

Discussion: Mr. Moran indicated that he was familiar with Habitat for Humanity, but wondered about A Piece of Cleveland. Mr. Bemer explained that the for-profit organization has been in existence since January, having received a small grant for start-up costs. Some of their materials are being resold through an outlet here in Rocky River.

Mr. Furry asked if insurance will be required indemnifying the City in the event of an accident. Mr. Bemer responded that waiver forms would be executed for that purpose.

Mr. Linden also reported that four scooters were received last Wednesday. This should fulfill the City's requirements until next year when he hopes to purchase four more.

The sewer program is on schedule, with work ongoing on Elmwood and planning proceeding for the Valley View project. The next project will be the Hampton interceptor and its financing.

Discussion: Mr. Moran asked about the relandscaping of Wooster Parkway following the sewer project. Mr. Linden said that trees would be planted, just as in the area north of Story Road. This urgent project has been considered for 15 years, and finally reached the emergency stage.

UNFINISHED BUSINESS:

Ordinance No. 88-08: Mr. Hunt indicated that this ordinance, which would authorize the hiring of Mr. Matty as special counsel for labor negotiations, was read last week. He has spoken with both the Law Director and Mr. Matty, and explained that the Administration and Mr. Bemer are seeking consistency in dealing with union negotiations. Mr. Matty has a great deal of experience in conducting these negotiations and has knowledge of the process as it relates to the City's unions. He indicated that Mr. Bemer is comfortable with the hiring which he hopes will help achieve the best results for the City. Mr. Matty's rate, $140/hour, is significantly less than his customary hourly fee. Mr. Hunt concluded that when the City is dealing with labor unions, SERB and state fact-finding and all its ramifications, the process is unique, and experience is helpful.

Mr. Bemer explained that negotiations are a team process, with the Mayor as leader. Negotiators assist, together with Safety-Service Director Linden, Human Resources Director Whitman, Finance Director Thomas and the health benefits consultant. The police and fire chiefs also provide input. This hiring has been considered for 6-8 months to provide consistency and history, as there will be veterans on the other team, and the Mayor and Law Director are new to the process. Other negotiators were considered, but Mr. Bemer concluded that with Mr. Matty's history, it was a natural decision.

Mr. Hunt added that other cities hire outside counsel for labor negotiations. Mr. Matty has done work with the WWTP and its negotiations and has a record of good outcomes for the City.

Mr. Furry asked if contentious negotiations are anticipated. Mr. Hunt replied that there are always issues which spark serious discussion. Mr. Bemer noted that with the change in the economy since the last negotiations, particularly as applicable to health benefits, he expects that there will be issues. Asked if a three-year contract is expected, Mr. Bemer said that is the usual process.

Mr. Moran added that even without hiring outside counsel, Mr. Bemer would be negotiating on a separate basis, not as part of the Law Director's regular duties. Mr. Bemer confirmed that it is outside the Charter directives of Rocky River, adding that negotiators' fees generally begin at $250/hour and go up to $400/hour. He added that most communities do not have a Law Director handling labor negotiations. While negotiations are an ancillary form of employment law, there are a variety of reasons to hire someone who does this on a regular basis, particularly an outsider, even though Mr. Bemer is experienced in employment law. To hire an individual with the history and experience seems sensible and will provide the transitional consistency for less than the going rate. Mr. Shepherd agreed, noting that labor negotiations have a unique set of rules regarding charges and procedures. Knowing that this Administration has not been through the process previously, he favors hiring Mr. Matty for his expertise.

Asked about the length of negotiations, the Law Director said that it is impossible to predict. If accord cannot be reached, the Service Division's ultimate negotiating tool is strike; safety forces cannot strike, so their potential ultimate tool is arbitration. He hopes to settle, or come as close as possible by the end of the year.

Mr. Moran asked if Mr. Matty attends all sessions, or only those at which he is required. Mr. Linden responded that he attends all sessions.

Mr. Bemer commented that it is not necessarily a matter of expertise, as he has handled many employment and labor cases on behalf of the City during his tenure. He stated, rather, that it is a matter of providing the best team available for the City. Safety-Service forces have a different set of standards applied in terms of reaching accord. In this case, experience of having been through the process before would be helpful. As Mr. Matty is available, the City needs to take advantage of his help. Mr. Linden, who has been part of negotiations since 1993, praised Mr. Bemer for doing what is best for the City.

Mr. Hunt, concluding the discussion, pointed out that Mr. Matty would like to begin meetings in August when Council is in recess. Therefore, passage will be considered next week. He acknowledged Council's concerns about the necessity of outside counsel and other concerns about presentation of the material at an earlier date, and said that Council is doing its job in scrutinizing these expenditures carefully.

MISCELLANEOUS BUSINESS: NONE

COMMITTEE REPORTS: NONE

NEW BUSINESS:

Resolution No. 89-08: Mr. Moran turned to Finance Director Thomas for background on this resolution which accepts Alternative Tax Budget Information.

• •Mr. Thomas first noted that the presentation is in a format provided by the County Auditor. The information entered is being used by the Budget Commission to determine the City's needs for the property tax levies listed in Schedule 1. As Mr. Thomas explained, this is the first step in the 2009 budget process, and other schedules include projections of what the balances will be at the end of 2008. These amounts under "Beginning Estimated Unencumbered Fund Balance" are really estimated balances for the end of 2008, which becomes the beginning of 2009. Following this first projection, the Finance Director looks at what may be expected for next year in both revenues and expenses and presents those projections to the County. This is the first step for the County Auditor to ratify the City's property tax levies.

Mr. Moran commented that the Mayor is already beginning to have meetings with directors on the year-to-date budgets of 2008. She is reviewing line items to be sure the budget is holding up. He expressed appreciation for the monthly budget updates presented by the Finance Director.

• •Mr. Thomas indicated that he and the Mayor are drafting a format that would supplement the monthly budget statements with narrative comments from the Director's perspective, on revenue and expense highlights including, for example, comparisons or coming events.

Mr. Furry wondered, if this is the Alternative Tax Budget Information, what is the primary tax budget information?

• •Mr. Thomas responded that there was a document called the Tax Budget which was similar with the same purpose. The municipal and school district finance directors in the county lobbied the Budget Commission for a slightly different form which still allows all to do their jobs. It cannot be called the Tax Budget because that has a statutory meaning, so it was given this name.

Ordinance No. 90-08: This ordinance authorizes a project loan for the Valley View storm and sanitary sewer program. Mr. Moran commented that this must be passed to be certain that the $2,987,712 earmarked for this program is received.

• •Mr. Thomas mentioned that he has included the amortization schedule as the last page. This is a 30-year interest-free loan, and he has shown the maximum payments if the entire amount is spent. If not, payments could be lower. The bids will determine the final project cost, but this schedule is based upon the amount as approved by the Ohio Public Works Commission. He added that one reason the City was able to qualify for this amount of funding was the local contribution available because of the Sewer Rehabilitation Fund and its associated sewer fees. The OPWC uses a formula to make grants and loans, and one significant component is the local contribution. The City was able to present its local sources which helped the approval process. Mr. Moran added that having a consistent projected income rather than a percentage is a good predictable income source and proved very helpful.



• •Mr. Shepherd confirmed that if the City spends less of the OPWC funds, the City's contribution will be in the same ratio. Mr. Thomas said that when public works are a combination of grant and loan, the City receives the full grant, even if the expenditure is less, and the loan portion is reduced. However, in this case, the loan would be reduced and the City's share would be in the same ratio.

ANNOUNCEMENTS:

Mr. Moran announced that next week's Legislative Meeting will be the last meeting before the August recess.

As there was no further business by members of Council, the meeting was adjourned at 8:40 p.m.

______________________________ ______________________________

James W. Moran Misao Kurokawa

President of Council Clerk of Council