CITY OF ROCKY RIVER

NOVEMBER 26, 2007

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

in the David J. Cook Council Chambers.

Council Members Present: Mr. Gollinger, Mr. Moran, Mr. Hunt, Mr. Hurtuk, Mr. Long,

Mr. Hagan

Absent: Mrs. Bartolozzi

Council Members-Elect: Ms. Arabian, Mr. Furry, Mr. Mylen, Mr. Shepherd

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

Law Director: Mr. Bemer

Press: Mr. Saylor

Mr. Hagan welcomed students from Cleveland State and their instructor, Mr. Bill Kurtz. The meeting was then opened with the Pledge of Allegiance.

Moved by Mr. Hagan, seconded by Mr. Long, that at the request of the Mayor, an Executive Session be held immediately to review negotiations or bargaining sessions with public employees under Article X, Section 6, Subsection (4) of the Charter.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

Following the Executive Session, the meeting was reconvened at 8:17 p.m.

MOTION:

Moved by Mr. Hagan, seconded by Mr. Long, that the reading of the minutes of the Legislative Meeting and Executive Session of November 13 be waived, and that the minutes be accepted as submitted.

Vote: Gollinger - aye Moran - abstain Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

5 ayes 0 nays 1 abstention PASSED

Moved by Mr. Hagan, seconded by Mr. Hunt, that the reading of the minutes of the meeting of the Committee-of-the-Whole of November 19 be waived, and that the minutes be accepted as submitted.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - abstain Long - aye Hagan - aye

5 ayes 0 nays 1 abstention PASSED

MAYOR'S REPORT:

Referring to last week's announcement that a communication had been received from AT&T regarding their statewide video franchise, the Mayor confirmed that that letter was the City's official notification. The City has responded in writing regarding the 3% franchise fee. Additional details will be shared with Council as they become available.

The Mayor previewed upcoming legislation during the busy season before the end of the year:

• health benefits for City employees-medical, dental and life insurance
• a salary ordinance
• an agreement with the County Engineer for the repaving of Westway
• carbon monoxide detector placement for rental units

The Mayor indicated that the directors and commissioners are aware that the last Council meeting of the year will be December 17.

The roof system at the Civic Center is being reviewed because condensation has collected and is dripping from the ceiling. The City's inspectors, City Engineer Michael Mackay and Recreation Director Patterson have been working with the architect and contractors to evaluate the situation which is believed to originate in the roof system.

As of today, there are more than 4000 new members taking advantage of the newly expanded Civic Center and new membership revenues are at $365,000, which does not include income from programming, rentals, babysitting or other revenue sources.

Over the past weekend several well-attended events were held including a hockey tournament. The Mayor mentioned that parking laws will be enforced at the Civic Center. She indicated that this past weekend saw some creative parking, which created issues with ingress and egress as well as safety, so the police will enforce parking regulations. The City will try to make announcements for cars to be moved to the extent that it is possible, but it is the responsibility of drivers to park in legally marked spaces.

Among events upcoming for this weekend are the Juniors' Holiday Home Tour and an event sponsored by the Detroit merchants on Old Detroit where all are welcome. The tree lighting ceremony will be Friday, December 7, with all the accompanying festivities at the Senior Center. This program is sponsored jointly by the Senior Center and the Rocky River Junior Women's Club.

The Mayor also announced a location change for the next concert given by City Music Cleveland which has provided free concerts at the Rocky River Presbyterian Church. Because the concerts have been so well attended, the Christmas concert will be moved to the Westlake School of Performing Arts on Hilliard.

LAW DIRECTOR'S REPORT:

Mr. Bemer reported that the City Administration is reviewing stormwater management legislation which will be due for passage by March, 2008. Mr. Bemer, Mr. Linden and Building Commissioner Beirne have been reviewing what they feel is best for the City of Rocky River primarily concerning the setbacks which apply to properties that abut both the Rocky River and Lake Erie. The proposal is to require a 120' setback along the River and 300' setback along the Lake. They feel this will create difficulties for those property owners who seek additional development or who are simply using their property. An exception would be proposed for the Yacht Club Basin, particularly, since there is a bulkhead, docks and a manmade waterway which would make the exception appropriate. This has caused controversy with the Cuyahoga

Soil and Water Conservation District, where both sides are meeting in an ongoing search for a compromise.

COMMITTEE REPORTS:

Planning, Zoning and Economic Development Committee: Mr. Gollinger noted that minutes of the Committee meeting of September 4 concerning projection and temporary portable signs remain to be approved.

Moved by Mr. Gollinger, seconded by Mr. Hurtuk, that the reading the minutes of the Committee meeting of September 4 be waived, and that the minutes be accepted as submitted.

Vote: Gollinger - aye Hagan - aye Hurtuk - aye

3 ayes 0 nays PASSED

Finance Committee: Mr. Hurtuk indicated that the budget review process is under way, and that he has invited the Mayor to present an Executive Summary of the budget this evening, rather than during the daytime meeting so that the public can be present.

Mayor Bobst began by thanking Chairman Hurtuk for his leadership on this budget and those in the past, making certain that the ordinances move smoothly and that all questions are answered. She also thanked Finance Director Thomas and the other directors for their assistance in assembling the budget. Finally, she thanked Director Linden and City Engineer Mackay for their focus on the large and aggressive capital portion of the budget.

Mayor Bobst began with a discussion of the budget process, explaining steps in formalizing the budget:

• First, she asked directors to hold the line on expenditures, to reduce them where possible, and to justify all expenditures in the context of how they benefit residents and strengthen the community.
• She asked that they identify practical and tested ways to have a positive impact on programming and services, expanding and enhancing those already being provided.
• She asked that all programs be evaluated in terms of cost effectiveness.
• The Mayor asserted that the budget process is a powerful tool which can illuminate the key issues facing the community and the opportunities for addressing the issues, such as the sewer rehabilitation and maintenance plan which has recently been discussed at length. The budget helps to manage assets, programs, planning for future needs and communicating the City's financial status to residents and others.
• Finally, she sees the budget process as taking a philosophy and translating it into priorities, translating those into programs and the final transformation into projects.

There are several features in this year's budget: it has a long-term perspective and links to broader organizational goals regarding infrastructure upgrades, planning, economic development and safety and preparedness. Those are themes which run through the budget. There is a real focus on results and outcomes which is more than balancing revenues and expenditures once a year. The Mayor sees it as putting together a strategic document which allocates resources with a multi-year perspective.

Fund Balances (Tab 4) must be maintained to be consistent with future plan needs as well as unexpected needs. It is the key to long-term financial planning. General Fund reserves have been maintained between 23% and 29% with an average of 26%, which is important for the bond rating of aa2, received in 2004 and confirmed in 2005. This is important because potentially, there is an environment of anticipated borrowing.

Revenues (Tab 5) contain very conservative projections, as has been the City's historical approach. Month-to-month financial summaries contain revenue sources which are continually monitored as well as an evaluation of external factors. There has been good stewardship, as shown by the 2007 budget, in not expending funds until revenue has been realized. As for revenue, the City seeks stable, reliable, sustainable, predictable and diverse sources. There are concerns and potential vulnerabilities such as general economic trends, or issues regarding local government funds, estate taxes, unfunded mandates, changes in State law and State tax reforms, as occurred last year with the increase in minimum wage and its impact on the budget with several hundred part-time employees. At present, the potential for Mayors' courts threatens to siphon off income from the municipal court. Following such legislation and planning for it is important. For 2008 the major revenue sources have not changed:

• Income tax has been relatively flat, with only slight increases. Budgeted is $7.9 million.
• Property tax has also increased slightly. In 2007 there was a re-evaluation cycle with an increase from $657 million to $723 million. Projection for the General Fund is $4,520,000
• Refuse and recycling, $719,000
• Senior Center and Recreation, $358,000 each
• Bond Retirement, $717,000 (Civic Center)
• Police and fire pensions
• Capital improvements, $717,000
• Don Umerley Civic Center, $900,000
• Establishment of a Sewer Rehabilitation Fund. The total figure represents a transfer of $800,000 from the General Fund, a transfer from the Permanent Improvement Fund of $1.2 million and a quarterly assessment on the sewer bill which will generate $700,000. As explained before, putting these funds together will leverage those dollars to help obtain grants, zero interest loans from State and county programs.

Expenditures and Appropriations (Tab 6) This has been divided into four areas: administration, programs, capital equipment and capital projects.

• In Administration, personnel is the largest use of revenue. There will be no new full-time positions added in 2008. The increase in wage compensation is 2.8% for City Hall employees, WWTP and the Service Department.

There have been significant increases in benefits. Although time did not permit a full discussion, the Mayor noted that the first renewal on insurance came in at a 24% increase; through negotiations, that has been reduced to 16.5% increase. In dental insurance, the initial was 20%, final 7% increase. The compensation survey has been completed and some adjustments may be indicated. As the salary ordinance is developed, details of the survey will be discussed.

In 2008 there will be four union negotiations: police officers, patrolmen, fire fighters and Service Department employees. Additionally, included is an increase in training of the management team for performance management.

• In Programs, the Don Umerley Civic Center will be among the first considerations to insure that it will operate effectively. Currently, about 20% of the Recreation Department is subsidized by the General Fund. The Administration would like to keep that figure steady and over time, decrease it. To accomplish that, an evaluation is important, assessing outcomes from all the programs and services provided.

A number of economic development activities are included in this budget:

• The Development Code update as discussed by Council.
• The Detroit Road Streetscape Work Plan initiated in 2007 with the first projects implemented in 2008.
• The Center Ridge Corridor Working Group and Task Force will be convened.
• Two historic districts are being considered, one residential and one commercial.
• The Business to Business Expo

Among other inclusions:

• In 2008, a Charter Review Commission will be convened, and those expenses are included in the budget.

• The Senior Transportation program has some increasing needs with usage increasing from 900 to well over 1000, and close to 10,000 trips in the program.
• The evaluation and maintenance of the sewer system, including dye-testing, televising, restrictor placement

• Safety and Preparedness are strong elements, involving both fire and police. Also included is the Community Emergency Response Team (CERT)

3. Capital Equipment (Tab 7). Each department's needs are outlined in detail. These are planned replacement and maintenance. The Mayor applauded the Safety-Service Director and everyone in the Service Department who works so aggressively to maintain equipment. She said that the City is able to realize maximum longevity from its equipment because of their programs The needs of each department are listed, and the directors will be able to answer specific questions at Tuesday's meeting.

4. Capital Projects (Tab 7). This is a very aggressive program. Included are sewer projects which were discussed earlier and two paving projects at $1million each. The Mayor was pleased to report that both streets had been televised and although maintenance and rehabilitation are required, there will be no major sewer replacements.

• There is dependence on funding per the resolutions passed by Council authorizing an application for a zero interest loan for the Valley View Sewer Project and the Lake Road Project which is dependent upon State timing. The work which needs to be done by the City has been completed and forwarded to ODOT which indicates that it is a 2008-09 project.

• At the WWTP, there are a number of ongoing projects. Tomorrow the Management Committee will meet in the morning, and they will review and recommend the budget of the WWTP to Council.

Mr. Hurtuk indicated that his tentative timeline would be as follows:

• This evening, first reading; December 10, second reading; December 17, third reading and potential passage of the ordinance.



• Finance Committee meeting with all directors, Tuesday, December 4 at 8:30 a.m. in Council Chambers. Mr. Hurtuk has requested that committee chairpersons lead the discussion as follows:

Councilwoman Bartolozzi, Recreation;

Councilman Gollinger, Service;

Councilman Moran, Police and Fire;

Councilman Hunt, WWTP;

Councilman Long, Equipment & Capital Improvements and Municipal Court; Councilman Hagan, Senior Services,

Councilman Hurtuk, Finance.

• The Public Hearing for any comments from residents will be December 10.

Chairman Hurtuk asked that any Council member with questions or concerns to phone or stop in to see the director or commissioner. As in past years, he reiterated that Council does not set policy, but rather controls the pursestrings, noting that the budget is a framework and if revenues are not as expected, then expenditures will be held back. The theme again this year is to be conservative on revenue projections and aggressive on expenditures so there is leeway during the year. If more meetings are needed, that will addressed during the weeks ahead.

COMMUNICATIONS AND ANNOUNCEMENTS: NONE

AUDIENCE PARTICIPATION: NONE

ORDINANCE NO. 95-07 BY FRANK B. GOLLINGER

AN EMERGENCY ORDINANCE CHANGING CHAPTER 1163 OF THE CODIFIED ORDINANCES OF THE CITY OF ROCKY RIVER CONCERNING PROJECTING SIGNS AND TEMPORARY BUSINESS SIGNS, BY AMENDING SECTIONS 1163.01, 1163.04, 1163.05, 1163.06 1163.09, AND 1163.11 AS FURTHER DESCRIBED IN THE ATTACHED EXHIBIT "A"

Mr. Gollinger indicated that this ordinance is in its second month under consideration by the Planning Commission. It will be discussed at their meeting tomorrow evening, so Mr. Gollinger expects to have a report for the next meeting.

AMENDED ORDINANCE NO. 100-07 BY JAMES W. MORAN

AN ORDINANCE TO AMEND PART NINE OF THE CODIFIED ORDINANCES OF THE CITY OF ROCKY RIVER, OHIO TO INCLUDE A NEW CHAPTER 913 TITLED RIGHTS OF WAY ADMINISTRATION

Mr. Moran commented that this ordinance also is under discussion by the Planning Commission. His committee will await their comments.

ORDINANCE NO. 116-07 BY FRANK B. GOLLINGER

AN ORDINANCE TO CHANGE THE DISTRICT CLASSIFICATION OF CERTAIN REAL PROPERTY KNOWN AS AUDITOR'S PERMANENT PARCEL NO. 304-09-005 FROM ITS PRESENT CLASSIFICATION OF SINGLE FAMILY RESIDENTIAL

(1F-R1) TO PUBLIC FACILITY (PF) IN ITS ENTIRETY AS FURTHER DESCRIBED IN EXHIBIT "A"

Mr. Gollinger explained that the applicant, St. Christopher's Church, has requested a zoning change for a property it owns immediately adjacent to its public facility. This ordinance has been read and referred to the Planning Commission. The ordinance is on the agenda for tomorrow evening's meeting.

ORDINANCE NO. 117-07 BY BRIAN A. HURTUK

AN EMERGENCY ORDINANCE REPEALING SECTION 139.02 OF THE CODIFIED ORDINANCES OF THE CITY OF ROCKY RIVER

2^ND READING

Mr. Hurtuk indicated that he will lead discussion of this ordinance at the next meeting of the Committee-of-the-Whole with a proposed vote at the following Legislative meeting.

ORDINANCE NO. 118-07 BY BRIAN F. HAGAN

AN EMERGENCY ORDINANCE AUTHORIZING THE MAYOR AND THE DIRECTOR OF PUBLIC SAFETY-SERVICE TO ENTER INTO AN AGREEMENT FOR VARIOUS INSURANCE COVERAGES FOR THE CITY OF ROCKY RIVER WITH MCGOWAN AND COMPANY, INC. FOR THE YEAR 2008 AT A TOTAL COST OF $149,982.00

2^ND READING

Moved by Mr. Hagan, seconded by Mr. Long, that the rule requiring that Ordinance No. 118-07 be read on three separate days be suspended, and that Ordinance No. 118-07 be placed upon its passage:

Discussion: This ordinance has been discussed at previous meetings. Mr. Hagan indicated that Council has had ample time to review the bidding process. The current insurance contract expires January 1, 2008. Passage at this time will give the Safety-Service Director an opportunity to have this contract signed before the first of the year.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

Moved by Mr. Hagan, seconded by Mr. Gollinger, that Ordinance No. 118-07 be passed as read:

Discussion: Mr. Hagan referred to Mr. Linden's explanation last week that this contract and the two which follow were decided by liability coverage, deductibles and premiums in that order. The coverage under this policy represents an excellent bargain for the City. The same explanations apply to Ordinances 119-07 and 121-07.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

ORDINANCE NO. 119-07 BY BRIAN F. HAGAN

AN EMERGENCY ORDINANCE AUTHORIZING THE MAYOR AND THE DIRECTOR OF PUBLIC SAFETY-SERVICE TO ENTER INTO AN AGREEMENT FOR VARIOUS INSURANCE COVERAGES FOR THE ROCKY RIVER WASTE WATER TREATMENT PLANT WITH MCGOWAN AND COMPANY, INC. FOR THE YEAR 2008 AT A TOTAL COST OF $49,972.00

1^ST READING

Moved by Mr. Hagan, seconded by Mr. Long, that the rule requiring that Ordinance No. 119-07 be read on three separate days be suspended, and that Ordinance No. 119-07 be placed upon its passage:

Discussion: Mr. Hagan noted that the reasons stated previously in Ordinance No. 118-07 apply to this ordinance.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

Moved by Mr. Hagan, seconded by Mr. Moran, that Ordinance No. 119-07 be passed as read:

Discussion: This policy also expires on January 1, 2008. Mr. Hagan stated that Director Linden should be commended for the work he has done on this contract as well as the others.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

ORDINANCE NO. 121-07 BY BRIAN F. HAGAN

AN EMERGENCY ORDINANCE AUTHORIZING THE MAYOR AND THE DIRECTOR OF PUBLIC SAFETY-SERVICE TO ENTER INTO AN AGREEMENT FOR VARIOUS INSURANCE COVERAGES FOR THE ROCKY RIVER MUNICIPAL COURT WITH JACKSON DIEKEN & ASSOCIATES FOR THE YEAR 2008 AT A TOTAL COST OF $9,979

1^ST READING

Moved by Mr. Hagan, seconded by Mr. Gollinger, that the rule requiring that Ordinance No. 121-07 be read on three separate days be suspended, and that Ordinance No. 121-07 be placed upon its passage:

Discussion: See discussion No. 119-07.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

Moved by Mr. Hagan, seconded by Mr. Gollinger, that Ordinance No. 121-07 be passed as read:

Discussion: Mr. Hagan noted that one contract is for a three-year period, it will be revisited on an annual basis. He noted that the process is involved: proposals must be prepared for bids and then each must be reviewed with an eye to coverages, premiums, exclusions, deductibles, umbrellas, etc. Mr. Hagan commented that Mr. Linden and his assistant Mrs. Costello have done a fine job.

Mr. Gollinger added that, for those not present during discussions, this was not the lowest bid for the insurance, but the lowest did not provide the requested coverage.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

ORDINANCE NO. 122-07 BY THOMAS T. LONG

AN EMERGENCY ORDINANCE AUTHORIZING THE SAFETY-SERVICE DIRECTOR TO PURCHASE FIVE (5) 2008 FORD CROWN VICTORIAS FOR THE POLICE DIVISION UNDER THE STATE COOPERATIVE PURCHASING ACT FROM STATEWIDE FORD LINCOLN MERCURY, INC. AT A COST NOT TO EXCEED $114,636.00

1^ST READING

Moved by Mr. Long, seconded by Mr. Moran, that the rule requiring that Ordinance No. 122-07 be read on three separate days be suspended, and that Ordinance No. 122-07 be placed upon its passage:

Discussion: This annual ordinance enables the Police Department to remove vehicles which have had extreme usage and remove them to other areas of City service. Of the five vehicles being purchased, three will be purchased from POPAS funds while the City will purchase two.

Mr. Hagan added that quick action is necessary so that the City does not miss its opportunity to buy the cars through the State Cooperative Purchasing Act.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

Moved by Mr. Long, seconded by Mr. Gollinger, that Ordinance No. 122-07 be passed as read:

Discussion: As discussed above, these vehicles are needed. Of the new vehicles, one will go to Director Linden and another to Chief Wagner. Their cars will be passed on for further use. Vehicles being replaced have more than 100,000 miles and replacement is needed.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

ORDINANCE NO. 123-07 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, 2008

1^ST READING

Discussion of this ordinance has begun and will be continued at meetings to follow.

ORDINANCE NO. 124-07 BY BRIAN A. HURTUK

AN EMERGENCY ORDINANCE FORMALLY CREATING THE FINANCIAL AUDIT COMMITTEE AS A JOINT COMMITTEE OF THE COUNCIL AND ADMINISTRATION OF THE CITY OF ROCKY RIVER

1^ST READING

Mr. Hurtuk explained that this ordinance will be discussed in greater detail at the next meeting of the Committee-of-the-Whole.

RESOLUTION NO. 125-07 BY BRIAN F. HAGAN

AN EMERGENCY RESOLUTION CHANGING THE REGULAR LEGISLATIVE MEETING OF ROCKY RIVER CITY COUNCIL SCHEDULED FOR DECEMBER 24, 2007 TO DECEMBER 17, 2007

1^ST READING

Moved by Mr. Hagan, seconded by Mr. Gollinger, that the rule requiring that Resolution No. 125-07 be read on three separate days be suspended, and that Resolution No. 125-07 be placed upon its passage:

Discussion: This resolution needs a rule suspension because this resolution changes the Council calendar, and President Hagan would like the public to be aware of the change as quickly as possible. This will reschedule the meeting of December 24 to December 17.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

Moved by Mr. Hagan, seconded by Mr. Gollinger and Mr. Long, that Resolution No. 125-07 be passed as read:

Discussion: See discussion above.

Vote: Gollinger - aye Moran - aye Hunt - aye

Hurtuk - aye Long - aye Hagan - aye

6 ayes 0 nays PASSED

MISCELLANEOUS BUSINESS: NONE

AUDIENCE PARTICIPATION: NONE

As there was no further business by members of Council, the meeting was adjourned at 9:01 p.m.

_____________________________ _______________________________

Brian F. Hagan Misao Kurokawa

President of Council Clerk of Council