CITY OF ROCKY RIVER

DECEMBER 1, 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. Mylen, Mr. Furry,

Mrs. Arabian Whitman, Mr. Long, Mr. Moran

Administration: Mayor Bobst, Mr. Linden

Law Director: Mr. Bemer

Press: Ms. Macho, Ms. Pritchard

The meeting was opened with the Pledge of Allegiance.

MAYOR'S REPORT:

The City hosted the high school hockey tournament last weekend. Between the Civic Center and the ice arena, revenue was more than $21,000. The Mayor was pleased to announce that the championship game is being played now between Rocky River and Hudson.

The Mayor updated her report on foreclosures. She acknowledged that foreclosures are on the rise, but in Rocky River, the situation is not the same as in other communities where there are hundreds of foreclosures. In 2006, there were 48 foreclosures here; in 2007, 76; and thus far in 2008, there have been 82. The Mayor said that she raised this issue, following a question by the League of Women Voters in a recent meeting, because it indicates that City is taking action to keep the numbers low:

• •Homes in foreclosure must be kept in good repair. The City works with whoever has control of the property so that an unkempt property does not have a negative impact on the surrounding neighborhood.
• •The City works with residents identified as being able to benefit from resources for foreclosure prevention available through the Building Department. The City reaches out to struggling residents to prevent foreclosure.

The Mayor emphasized that the City does not handle the maintenance of any abandoned property, but that it is handled by the owner, a bank or whoever has control.

This weekend many festivities are planned:

• •The All A-Glow celebration, which begins with the tree-lighting ceremony, will be held on Friday night with performances by the high school choir and the arrival of Santa. The program will begin at 6:00 p.m. in front of City Hall and continue at the Senior Center with refreshments, visits with Santa and even a craft assembled by Key Club members for the youngest residents.



• •On Saturday, special events are planned by the merchants of Old Detroit. That will be a very busy traffic and parking area.



• •On Sunday, the Holiday Home Tour will be sponsored by the Rocky River Jr. Women's Club in support of its assistance program. Over the years, the number of families needing assistance has grown to 77 or 78 families. The Tour will begin at Beach Cliff Market Square and will involve six or seven homes around the City.

Late last week, an arrest was made in the case of a bank robbery and holdup at Walgreens.

In recent news articles, information has been published about the Akron Wastewater Treatment Plant, which uses methane gas produced by waste to power other facilities. Superintendent Harrington has mentioned this several times when Chevron surveyed Rocky River's plant to see what use can be made of the methane. There is now an individual who, free of charge, is reviewing the feasibility of capturing methane to reduce energy costs at the WWTP. The Mayor said that this is in the "infant, infant stage". With only two digesters at the plant, there is not huge methane production, but this individual is investigating placing turbines in the outfalls to capture water movement among other things. When a feasibility and cost report are received, it will be shared with Council.

Mayor Bobst referred to an article from the Plain Dealer concerning MCO organizations hired by communities to administer workers' comp, as well as TPAs (Third Party Administrators). Rocky River, as other municipalities and government entities, does not pay its MCO. Those services are paid for by the Bureau of Workers' Comp, at a rate of 7% of the payroll. The firm mentioned in the article does not serve Rocky River, which has engaged University CompCare since before 2002. A contract is renewed every two years, the latest being last May. At that time, many firms were considered, but following study and interviews, the same firm was rehired.

The Mayor then announced the passing of George Jindra, a detective in the Police Department for many years. Mr. Jindra was a longtime resident of the City and was 99 when he passed away. The funeral will be tomorrow.

Finally, the Mayor requested an Executive Session under Article X, Section 6, Subsection (4) of the Charter to discuss a labor negotiation matter.

MOTION:

Moved by Mr. Moran, seconded by Mr. Long, that at the request of the Mayor, an Executive Session be held under Article X, Section 6, Subsection (4) to discuss a labor negotiation matter.

Vote: Hunt - aye Shepherd - aye Mylen - aye Furry - aye

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

The Mayor noted that Mr. Beirne was scheduled to come to Council to answer questions regarding Ordinance No. 130-08, the updating of permit, inspection and license fees. Unfortunately, he went home ill today. He did prepare for Council's information, copies of the original legislation passed in 1997 which last updated the fees. The Mayor said that he would be happy to attend a future meeting to answer any further questions.

Discussion; Mr. Hunt thanked the Administration for the timely comments on foreclosures. Last week, Inspectors Zell and Connelly were praised for their work. Mr. Hunt said that he has had feedback from residents who have worked very hard on their properties and wonder about the status of other homes in the neighborhood which appear to be in trouble. He said it is reassuring to be able to say that the Administration is aware of any problems; he has referred callers to the inspectors for an update.

• •Mr. Bemer agreed, saying that most issues of property maintenance come through a residential question or concern. Mr. Zell and Mr. Connelly check the Cuyahoga County docket regularly for filings and keep City records up to date. They also keep a good database of maintenance companies employed by the mortgage companies. He said they are both very efficient and will go to the Law Director for necessary paperwork if there is no response. Mr. Bemer said that the key is to identify vacant properties which are headed to foreclosure.

UNFINISHED BUSINESS:

Ordinance No. 94-08: This ordinance would authorize an easement on City property for AT&T. Mr. Hunt indicated that he is waiting for feedback from AT&T. As there is nothing new, the ordinance will continue on hold.

Ordinance No. 103-08: See discussion for Ordinance No. 94-08.

Ordinance No. 127-08:  This is the appropriations ordinance for expenses for the year ending December 31, 2009. Mr. Moran commented that the Finance Committee will meet tomorrow and again next Monday, December 8. Mr. Moran noted that Council will still vote on purchases included in the budget as they arise during the year. The process has been moving forward, and Mr. Moran said he is looking forward to gathering information from directors tomorrow morning.

Ordinance No. 128-08: Mr. Long explained that this is a rezoning ordinance for a warehouse that straddles Allen Court, close to Linda Street by the railroad tracks. It has been referred to the Planning Commission. Further action will be taken following their meeting. Passage will not occur until 2009 because a Public Hearing must also be scheduled.

Ordinance No. 130-08: This ordinance will update the fee schedule outlined in Chapter 1321. Mr. Long said that he will read this ordinance for the second time next week and ask Mr. Beirne to attend the following week for discussion.

MISCELLANEOUS BUSINESS:

Mr. Moran thanked the three Council members who have volunteered to work with Mr. Koran and D.B. Hartt on the Development Code update: Councilman Long, Councilwoman Arabian Whitman and Councilman Mylen. The next meeting will be mid-January.

Mr. Hunt discussed Capital Projects and Capital Equipment Purchases. Among capital projects:

• •Valley View Sewer Engineering and Construction, including reconstruction of streets, sewers, repairing of aprons and other appurtenant construction costs is a $2.6 million project.



• •Elmwood Sewer Engineering and Road Construction is an ongoing project with pre-engineering work done this year. Looking forward, with more boring necessary, the cost has been brought to $815,000. Director Linden hopes to begin this project early next year.



• •Lake Road Professional Services and Reconstruction which was postponed from this year, will be done in two phases: first, the resurfacing from the clock tower west; the second reconstruction phase will include sewer work and repaving from the clock tower to Linda Street.



• •Quiet Zone project. This may not be spent, but is included because the City is awaiting final numbers from the railroad for safety enhancements.



• •Annual programs which keep the infrastructure intact:
• •emergency sewer repairs, e.g. Purnell where the sewer collapsed the day before it was scheduled to be repaved;
• •crack sealing which adds 10 years to the life of major roads;

• •sewer televising which will be done in Tangletown;
• •street repaving, including Allen Court, Goldengate Drive (repaving only) and Parsons Ct., West Wagar Circle (water line replacement and repaving).
• •Then, the sidewalk replacement program which will replace any sidewalk raised more than an inch.
• •Finally, project engineering for Avalon and Hampton for interceptor lines which need to be engineered for a future project.

Capital Equipment Purchases. Mr. Hunt noted that most, if not all, items in this list are part of a planned replacement program. Among the larger items:

• •Replacement of five scooters which will help raise the City's fleet to necessary levels, particularly combined with the purchase of another four or five vehicles next year. Asked about the life span, Mr. Linden said it was about three years.
• •A truck which Mr. Linden hopes to order early next year.
• •Four police cars, of which three will be paid from the POPAS Fund.
• •Other items will be more fully explained by directors tomorrow.

Discussion: Mr. Long asked about the replacement van for the Senior Center. The Mayor responded that it is a transportation van.

Mr. Moran asked how the Elmwood project differs from the street repaving program. The Mayor said that Elmwood is a construction project which is ongoing. The four street repavings include the four streets listed with two water lines as well as the pavement. This would be just under $1 million for the paving program whose streets are chosen from the street evaluation done earlier this year.

Mr. Linden explained that the Valley View Sewer and the Elmwood Sewer Projects are ongoing. The Hampton Road Interceptor was delayed because of the urgency of the Valley View project which took precedence since the sanitary water goes to the Lakewood Wastewater Treatment Plant.

The Salt Barn will be on hold for the engineering studies which will show what base is appropriate for construction. The Mayor seconded the importance of salt storage on site which would give the City more flexibility.

The Mayor commented that some items on the list of capital projects will be paid by grants and zero interest loans, and this is not reflected in this report. Others are from funds supplied by the City. Each project is evaluated and prioritized and the Administration will not move forward unless revenues warrant. Council will also see details of projects which pass through as ordinances before them. Following the second or third quarter, if the City realizes predicted revenues, some expenditures will be made with Council approval. The budget will be closely monitored.

Mr. Furry expressed concerns about the Quiet Zone appropriation, but he said he would take a "wait and see" approach.

• •The Mayor said that at the present time, the City is faced with an estimate of $680,000 for the electronic upgrade, as is every other city which is working with Norfolk-Southern or CSX. Until that number is modified or a clearer definition of their work for $680,000 is made, she said she cannot see that project moving ahead. She emphasized that that figure does not include other steps necessary for establishment of the zone.

COMMITTEE REPORTS:

Finance Committee: Mr. Moran reminded members of a meeting tomorrow morning at 8:30 a.m. and a meeting next Monday at 7:00 p.m. to finish talks with directors. A Public Hearing will be held on December 8 at 7:30 p.m. in Council Chambers. He asked members to review minutes from the meeting of November 24 for information on revenues, expenditures, fund balances and debts.

NEW BUSINESS:

Ordinance No. 131-08: At the last election, a Charter Amendment was passed which allows Council to correct obsolete language, rearrange numbers and correct typographical errors. Ordinance No. 131-08 will give that amendment a section number.

• •Mr. Mylen commented that this provision will save a great deal of time for future Charter Review Commissions. In the past, there have been typographical errors or construction errors which have not been corrected because it requires a ballot issue. It would necessitate a large number of ballot issues and create problems at election time.

Mr. Moran announced that Council will move into an Executive Session under Article X,

Section 6, Subsection (4). No business will be discussed following the Executive Session.

As there was no further business by members of Council, the meeting was adjourned following the Executive Session at 9:25 p.m.

______________________________ ______________________________

James W. Moran Misao Kurokawa

President of Council Clerk of Council

CITY OF ROCKY RIVER

DECEMBER 2, 2008

Finance Committee

The meeting of the Finance Committee was called to order by the Chairman, Mr. Moran at 8:45 a.m. in the David J. Cook Council Chambers.

Finance Committee Members Present: Mr. Moran, Mr. Furry, Mr. Long, Mr. Mylen

Council members present: Mr. Hunt, Mr. Shepherd

Administration: Mayor Bobst, Mr. Linden, Mr. Thomas, Chief Wagner, Mrs. Calladine,

Mr. Winterich, Mr. Bemer, Mr. Harrington

Also present: Judge Hagan, Ms. Comery, Ms. Serrat, Mr. Bracken

Mr. Moran commented that this meeting is the next step in the budget process and that he was looking forward to today's presentations.

He called upon Finance Director Michael Thomas who began his review of revenues with a background discussion, stating that carryover fund balances are the basis for each year's budget.

Significant revenue sources are the property tax and city income tax, and the Director noted that he watches property values which can impact the tax.

As the City goes through the year, both in property and in income tax for this year, it has met the budget established.

• •Property tax collections are complete and totals exceeded 2007's revenue by a small amount.



• •A December collection will be made on income taxes and even at this point, the total has exceeded the total projected for 2008, although it will probably be lower than for 2007. Income tax revenue is significantly derived from withholdings, specifically from City and school district employees. Referring to the list of largest employers, he noted that there has been variation below the top ten, at the top of the list there has been little variation, which is closely linked to labor negotiations and agreements between the City administration and the unions, as well as the school district and the teachers. He noted that Lowe's is not listed, but it is open and Mr. Thomas expects that it will be on the chart when it has been open a full year.

Regarding property tax, the City's property tax is really is 10.9 mills. When tax bills are received, all levies for all sources are collected. The last increase was the voted one mill to service debt for the Civic Center improvement. Mr. Thomas reminded Council members that the schools' tax base is different from the City's because it includes Westgate. As yet, he does not have collection estimates which would normally be forwarded in October, but he said the County is probably waiting for certification of levy votes from November. He expects the final estimate within two weeks.

Mr. Shepherd asked about the difference between inside and outside millage.

• •Mr. Thomas responded that the inside millage is levied by constitutional authority which acknowledges that government needs funds from the public to operate. The inside millage is 10 mills, divided among all taxing authorities. Outside millage is voted millage originated either by the taxing authority or by residential input.



• •The Mayor enumerated various uses for the City's millage which is divided for specific uses in different funds. When the tax goes down, each fund will be impacted. She said it is important for residents to understand that the City's tax rate is very low and that while other collections for the County, the library or the schools may make the total tax bill seem higher, the City does not receive those funds. When residents ask about percentages of residential tax dollars, they should understand that the schools receive 52.6%; the City receives 16.3%, the County receives almost 24% and the library, 7%.



• •Mr. Thomas commented that this can be difficult to explain-that City taxes have remained at a low level when residents see their taxes increasing with one bill for all levies.

Mr. Furry asked if Mr. Thomas feels that revenue projections are sufficiently conservative. He noted that historically, this has been the City's stance, but he is concerned about falling property tax revenues.

• •Mr. Thomas responded that for 2009, he has retained the same property tax estimate as for 2008. The County will give him projections of their collections from the tax base. The missing component right now is tax values. The budget analyst at the County Budget Commission says that the City's collection percentage is over 99% on property tax. This statistic will be used for 2009 projections, which should be received within two weeks.



• •Mr. Moran mentioned that two numbers in the budget appear conservative: the income tax from $8.8 million in 2007 to $7.9 million in 2008. The real estate tax number is also conservative, because there are new properties which were taxed only on land value and which are now completed homes, e.g. the Hamlets. Mr. Thomas agreed, saying that BeachCliff Market Square and Astor Place will also be included.



• •The Mayor also noted that there are a number of homeowners at the Board of Revision trying to have their property taxes lowered. Mr. Mylen noted that if this impacts collections, it probably will not happen immediately.

Mr. Thomas then explained that when projections are received from the County, they will be integrated into the budget. The analysts currently advise that last year's budget figures be used.

He also noted that he had included in this year's budget book an explanation of the impact of House Bill 66 which changed the State Tax Code, eliminating the corporate franchise tax and the tangible personal property tax as well as reducing individual income tax rates. The phase-out and elimination of the tangible personal property tax will impact collections. To ease the impact of the bill, there were provisions for reimbursements to cities, and Mr. Thomas indicated that when they are received, they will be credited to the appropriate levy fund as if it were the personal property tax.

Also included is a summary of the City's Estate Tax Collection. The City has collected just over $2 million this year, and $1 million has been allocated for the 2009 budget, of which $517,382 has already been collected.

As to debt, Mr. Thomas indicated that he has included explanations of each of the City's long-term loans including a description, loan amount, rate, etc., as well as amortization schedules. He reminded Council members that although the WWTP has incurred a good amount of debt, those obligations are shared by the member cities of the treatment plant. He also explained conduit debt issuances which are not debts incurred by the City, but are being repaid by the non-profit entities which received the funds. The general obligations are serviced (paid) from different revenue sources, the bond retirement funds. For example, the one mill Civic Center levy collections go into the fund to pay the debt when it comes due.

Mr. Furry noted that some large projects will be coming up in the next few years, i.e. Valley View, Hampton. Going forward, he asked if the Finance Director is comfortable with this schedule. Mr. Thomas said that he believes the City is in a good position. When the time comes, the Administration will manage what is needed for those projects.

Mr. Mylen asked about the decreasing fund balances projected in this budget. Mr. Thomas said that it is the practice of the Administration to present a budget that spends down fund balances. When the year is finished, the City typically is in the same position as other years. Expenditures are managed so that it doesn't actually happen. He acknowledged, however, that the typical ending balance is not lower than $1 million as it is in this budget. Mr. Mylen asked about the situation for 2010 if spending does take place as projected in this budget leaving a fund balance of $1 million in the General Fund.

• •The Mayor explained that historically, the fund balance has remained high at the end of the year. A very conservative budget is presented, a "worst case scenario", but that is not where the Administration intends to be at the end of the year.



• •Mr. Moran added that Council will not continue to spend money when revenues are down. The number of dollars collected and how they are spent will be part of the ongoing process. At this time, the budget is under construction.



• •The Mayor pointed out that Council receives monthly updates of fund balances and all financial information is disseminated. She urged members to watch the balances, adding that the Administration watches them daily and weekly. She commented that fund balances and revenues are important if the City should ever need to borrow.



• •Because the City has locked-in expenses in payroll and benefits, Mr. Mylen asked, even in the "best case scenario" if fund balances will be spent to levels lower than normal. The Mayor responded that the potential for that is possible. There are a lot of concerns because of uncertainty about the economy. Directors are aware that every expenditure must be scrutinized. Budgets like this have been presented in the past, but as revenues are received and expenditures adjusted, balances remain at a pretty consistent level.

Mr. Shepherd expressed concern about income tax. Projections in this budget are that they will remain flat, but in his experience, many small businesses are failing and people are losing their jobs. He asked the Finance Director to keep a close watch on these figures, which he pledged to do.

Chief Donald Wagner of the Police Division then came forward. Mr. Shepherd commented that in their discussion, Chief Wagner indicated that his budget was under control with no major changes. He asked the Chief for a brief overview.

Chief Wagner said that he had met with the Mayor, making line item cuts of 8% on two occasions. He is comfortable with the final figures, and feels that he will be able to stay within that budget without a decrease in services. Some labor negotiations remain to be completed, and these are fundamental to personnel expenses.

In equipment, the Police Division has slowly added as funds were available. Still needed are 30 Handi-Talkies; ten have been purchased this year, another ten will be purchased next year, and the final ten the following year. New chairs have been purchased for the lobby and conference room. The carpeting has been replaced in the booking room for ease of maintenance.

• •Mr. Long asked if the Chief has areas of concern. Chief Wagner replied that Council has provided enough for the division's needs, particularly for vehicle and equipment maintenance. Weapons are in good condition.



• •Approximately 1000 prisoners were handled this year. Mr. Furry asked if there will be problems with conformity with state jail standards. Chief Wagner said they are inspected annually, a process which began some years ago to address jails, particularly in southern Ohio, which did not meet standards. Rocky River's facility was built in 1954. With the new regulations, this jail is too small. They were criticized at the last inspection because there were no tables in the cells, enough lumens for comfortable reading, and month-old periodicals. Rocky River has a 12-day facility, and Chief Wagner asserted that anyone who stays here is not hurt by the facility, food or amenities. Any violations are corrected if possible, but the division is limited by space and facilities. However, required medications and appropriate food are provided.
• •Mr. Moran asked about the POPAS revenue estimate of $165,000, and whether this is a conservative number. The Chief said that number is really hard to predict because it is dependent upon the weather and other factors. He feels that it is a fair estimate, although not a conservative one. The Mayor added that the equipment list shows what will be purchased from those funds specifically for traffic control. Chief Wagner agreed, saying that anything to do with traffic enforcement can be purchased with those funds, including video cameras, laser units, light bars and other car equipment.

• •Asked about an appropriation for "Other Police Equipment", the Chief enumerated his list of useful equipment which are replacements or additions that can wait until next year, if necessary.



• •Mr. Shepherd asked if driving patterns changed when gas prices were extremely high. Chief Wagner responded that cars were turned off instead of idling at the station, except for the canine units in very hot or cold weather. On calls, this is more difficult because patrolmen never know how long the call will last.

To discuss the budget of the Senior Center, Director Carole Calladine participated in the discussion led by Councilman Long. Mr. Long acknowledged that the Senior Center has been very well run over the years. In reviewing the budget, Mr. Long said that this portion of the budget seems very reasonable in light of the services provided.

Mrs. Calladine said that there were no real concerns; they watch the budget every month. They have revenue that matches many line items that are not concerned with salary which, of course, is the largest portion. The other part that cannot be covered without using other funds is their premier senior transportation system, which makes residents, medical facilities and merchants very happy. In her monthly budget review, the Director looks at revenue and what is being offered in terms of classes, events and community activity, making adjustments if necessary.

In terms of personnel, there are eight full-time, 24 part-time employees and 145 volunteers who give at least 25 hours of service per year. Professional services include instructors for classes which, in turn, will generate income.

• •Mr. Long asked how cuts were made in this year's budget. Mrs. Calladine said that amounts were lowered in all categories except social service. She moved $2000 from monthly events to social service which will now include volunteers and the volunteer luncheon. Concerning usage, she commented that at any given time, the Center is well-used with classrooms, gift shop, deli lunch and trips all doing very well. There are 1600 Quill subscriptions.

This is the 20^th anniversary of the Senior Center. There is no wish list this year, but the Center will continue to pursue grants and donations. This year there was a Giant Eagle donation of $5000, the Rotary, $8000 as well as many others. In addition, there were fundraisers. Two bequests were also made this year, one for $1000 and another which will be administered by the Seniors Council for $10,000. No new equipment will be needed this year. There are enough vehicles to meet requests. There is money being held until next year for new carpeting in the gift shop. Mr. Linden said that there is a replacement van in the budget, but it will not be purchased this year.

Before leaving, Director Calladine invited everyone Friday to the tree-lighting. Santa will be at the Senior Center following the ceremony. The theme this year is dollhouses, intricate and completely furnished, and include an old-fashioned church, a store, Tara and a country cottage.

• •Mr. Thomas commented on the Donation Fund. There is a subfund of donations which are received by all City departments. The Senior Center is the largest recipient and has the most within that fund. It is used for flexibility for projects such as the garden, for example. Some has already been appropriated so that it will be available in case of need.



• •Mr. Moran noted that the budget here is $16,000 less than last year. He said it makes everyone proud of what happens in the City.

Next on the agenda was Commissioner David Winterich of the Service Division. Mr. Hunt asked about staffing of the department.

Mr. Winterich enumerated the following:

• •12 individuals in the Street Department, three of which are night men.
• •Rubbish 1, scooters and rubbish trucks, and Rubbish 2, semi trailers to take leaves and garbage to the landfill, the brush truck, the grass truck and the heavy equipment truck.
• •In Parks, there are three plus a lead man.
• •The Sewer Department has eight men to take care of dye-testing, sewers and corrections.
• •In the Garage, there are six including mechanics, the painter, the dispatcher, the welder and the carpenter.

Mr. Hunt noted various appropriations which deal with different parts of this department. He commented that Mr. Winterich worked very diligently to reduce expenses by 8% requested by the Mayor. He said that with few exceptions, proposed appropriations for 2009 are lower than they were in 2008. An exception, of course, are line items for gas, oil and fuel.

Employee overtime was a topic that Mr. Hunt requested be addressed by Mr. Winterich, specifically for the Sanitary Sewer personnel. In 2008, $19,700 was appropriated; this year $27,000 is proposed. Mr. Winterich said that the problem is that there are more and more sewer calls. Each overtime call guarantees the employee at least four hours, although Mr. Linden said it would seldom be less, anyway. The Commissioner cannot postpone these emergency calls and they must be answered 24/7 and on holidays and weekends. All overtime is billed at time and a half. The other department with overtime is the Rubbish Department which also worked on leaves and small plows.

Mr. Long asked if there is any discomfort with this budget. Mr. Winterich said there was not, and that his department would be able to maintain its usual high level of service. Mr. Linden added that the Mayor and Council have been attentive to this division's needs so that a short-term cutback is possible without compromising services. The Mayor said this shows the value of planned replacement. Mr. Linden added that it is a privilege to work with this Finance Director. He is always available and it is a pleasure to work with him.

Mr. Moran said that the employees of the Service Division are great stewards of the City. He cannot recall a negative comment about rubbish services. They do a great job, and Mr. Moran asked Mr. Winterich to relay his satisfaction to the employees, because Council members get calls when something goes wrong. The Service Division is doing a great job.

Mr. Hunt raised the question of equipment purchases, particularly the stainless steel salt spreader purchased last year. Mr. Winterich said that the maintenance is greatly simplified, and this is a great purchase because it will last longer. Mr. Linden added that the one purchase necessary is scooters, any other purchase will be on a day-to-day basis. Mr. Linden also updated Council on cutbacks to conserve salt: instead of running five trucks 24 hours a day, five-man routes are being run between 6:00 and 9:00 a.m. and 4:00 and 7:00 p.m. Other times there will be a three-man route. Mr. Linden also complimented the leadership of the Service Division, Dave Winterich and Mike Reyes, saying the City could not have better men there. The Mayor complimented those behind the scenes in the garage who service all the equipment and vehicles City-wide. They do an excellent job and extend the life of the equipment.

Law Director Andrew Bemer came forward to discuss expenditures of the Law Department.

Mr. Bemer explained that when he came to the office three years ago, one of his goals was to provide a presence at City Hall. This necessitated changes, one of which was to eliminate a stipend for an outside secretary and hire a legal assistant here at City Hall. He chose Mary Ellen Umerley for the position which did not have a job description at that time. She was listed as a secretary with a pay scale for that position. A job description has now been completed and Mr. Bemer distributed copies to Council. He said this provides a true picture of necessary job qualifications and duties, basically that of a paralegal/legal assistant. There is also another schedule of compensation which outlines a fair wage for someone who comes in with knowledge of how to run a law office. This is someone who manages the office as well as understanding legal research which is over and above the position of legal secretary as well as communication skills and legal nomenclature. There was a review of the wage structure at City Hall a year ago, but part-time personnel were not included. That is the basis for the increase which Mr. Bemer said she should have received two years ago.

• •Mr. Bemer said that the job description are important, and along with the hourly rate, how many hours are worked. For the two line items for the Assistant Law Director and part-time, steady increases have been seen. There are many people do a fine job and in the future, he said that a job classification change may be in order.



• •Mr. Long asked why, if this position will be filled by a person who is an office manager, she is called a secretary. Mr. Bemer said it is a paralegal/secretary position. In a small law office, it is not uncommon that the person who is the secretary does a great deal more including form filing, communicating, facilitating of relationships. In this instance, Mary Ellen has a real estate background which has been invaluable. She is now able to do legal research using an outside legal research database.

• •Mr. Furry asked how many hours will comprise this part-time position. Mr. Bemer said the budget calls for 1080 which she has never approached; her hours have been variable. He said the average would be about 15 hours per week, without benefits.



• •Mr. Moran noted that the other line item which may raise a question is Law Director Other which is appropriated for $106,296 for next year. This is a wage fund for situations not directly related to Law Director duties and/or outside counsel for the City. This year, labor negotiations added to this total. Mr. Bemer pointed out that the line item for Law-Legal Services which shows a spike in 2005 and this year shows the effect of labor negotiations. Also included is work directed by Council regarding the Dog Park and a Civic Center construction issue. It appears that the latter would require the filing of a lawsuit, beginning in the spring.



• •Mr. Shepherd asked if the $100,000 item for Law-Legal Services is for anticipated outside legal services. Mr. Bemer said it is, including compensation for himself and Mr. O'Shea at the rate of $100/hour for litigation legal services.



• •Mr. Hunt thanked the Law Director for the position description. He noted that the 2007 actual expenditure for Ms. Umerley was $12,000, and will be $20,000 for next year. Mr. Bemer indicated that her current hourly rate is $!5.83; the new budgeted amount is $19.76.

Before proceeding, the Mayor noted that she had just received an e-mail from Kim Kerber of Michael Mackay's office. The Mayor was pleased to announce that the Ohio Public Works has announced that it will fund the Hampton Road Project, honoring the City's request for an interest-free loan for more than $3.7 million. This huge project will build capacity, and work on the interceptor will provide relief for surrounding streets which lead into the interceptor.

Superintendent Jeffrey Harrington of the Wastewater Treatment Plant was next on the agenda for a budget discussion led by Councilman Furry who stated that the WWTP Management Committee had approved the operating budget for next year. Over the last several months the City has had Ohio and national EPA mandates, all unfunded.

Mr. Harrington began with salaries, observing that the plant is in the second year of a bargaining unit contract. For 2009, employees will see a 2.75% increase. Overtime has risen, partly because one employee has left, and until he is replaced, overtime has filled the gap.

The superintendent then selected line items to explain, inviting questions on the others.

• •Electric, gas and water costs have remained steady.
• •A $220,000 budget is being maintained in Landfill even though he anticipates approximately $130,000 in expenses. For the last two years, there have been pending EPA rules which would require the City to landfill sludge during the winter months rather than the less expensive land application. The EPA requires a 120-day capacity storage, and the WWTP has only six. However, the rule has not yet taken effect.
• •Professional services will be increased to accommodate the sewer flow and strength study that is required every four years. The study should be approximately $100,000 with some additional time incorporated.
• •Equipment maintenance budget has been dropped because the current project has been completed with Kokosing which replaced quite a bit of equipment. Another will start this year that will replace more. These replacements mean that the maintenance budget can be decreased.
• •Chemicals have risen this year. There was an increase of 150% in the sodium bisulfite, required by the EPA. Sodium hypochlorite also had a 74% increase. This is mainly due to the raw materials cost, although partly to shipping costs.
• •Equipment purchases were lowered in an effort to be more conservative. Some required equipment will be replaced.
• •One additional cost is the OPW Improvement Loan, a capital improvement project completed during 2008 and now coming due. That will be a 20-year repayment of a low-interest loan at $115,786 per year.
• •In Capital Equipment, there is $105,500 which is larger, more expensive equipment which will be bid out for replacement.
• •This year there are Capital Projects proposed with the Committee. Once they begin, they will be placed in the budget in the WWTP Cap-Unassigned line. At present there is $545,000 in that item.

Mr. Furry clarified that the flow study, done every four years, determines the pro rata portion that each city pays. Now, Rocky River pays roughly 29%, Fairview and Bay, 15% and Westlake, close to 40%. He also noted that the debt service is $987,000 for this year; in 2010 another $25,000 will be added.

Mr. Long asked if there are any items which cause concern to the Superintendent. He responded that at present, he is comfortable with the budget. He was able to lower some accounts while some newer accounts required uncontrollable increases. However, he will watch costs carefully.

Mr. Moran asked about the $188,500 for Capital Professional Services. Mr. Thomas explained that this is related to projects in progress. This means not only the OPW projects but the consulting engineer has undertaken the design for other miscellaneous projects such as the HVAC project just approved.

• •Mr. Thomas added that there was an employee who left voluntarily during the year. The City was able to avoid a severance cost because the new public employer agreed to take on the balances. The person who left did not ask for any of it to be paid at that time. This saved the WWTP tens of thousands of dollars.



• •The Mayor added that the Administration is putting together an overtime reduction plan. Discussions are beginning across all departments of the City. A plan will be formalized and presented.

Mr. Moran and other Council members thanked Superintendent Harrington for his careful preparation and knowledgeable comments.

Court representatives, Judge Brian Hagan, Magistrate Kelly Serrat, Clerk of Courts Deborah Comery and Computer consultant Michael Bracken came forward to discuss their budgets with Mr. Mylen.

Judge Hagan came forward and indicated that figures are not yet final since the Court will follow the lead of the City at the conclusion of its negotiations with the police, fire and service unions. The budget presented is a "worst case scenario". There is a healthy surplus in their special project funds, a trend of the growth of the past year or so. He also noted that the large deficit seen at the beginning of the year was due to the cashout of individuals who were terminated at that time. However, with the new structuring of the court, the funds show a $60,000-$65,000 surplus.

Since working with the Court, Judge Hagan indicated that they have been trying to rectify a problem relative to the paid bailiffs at the courthouse. For the past several years, the RRMC has been compensated for only one bailiff from the County. In 2003, the Attorney General issued an opinion that in multiple jurisdictions with two judges, each judge should have a paid bailiff at a 60/40% split between the city and the county. The previous court administration contacted the Auditor's office to question the compensation for second bailiff. Despite a lack of response, the judges persevered and have an appointment with a prosecutor tomorrow. They have also advised all the municipal judges in Cuyahoga County and have obtained support from the Ohio Judicial Conference in Columbus, since the effect could be statewide. They are hoping that as a result of tomorrow's conference, additional compensation will be received which will have a positive effect on the budget figures. However, Judge Hagan expressed confidence that the court will be able to operate within the terms and conditions of the budget presented today. The number of cases is up, and the method of calculating costs has been changed as they are mindful of a Supreme Court case pending from Berea. The RRMC has alleviated the problem of how charges are calculated.

Responding to a question from Councilman Furry, Judge Hagan further explained that a lawsuit filed in the 8^th District Court of Appeals, Judge O'Boyle writing the opinion, stated that the costs levied by Berea for its files, by the charge, was illegal. If not reversed, there is a potential that individuals who have paid costs by this method may receive restitution. Going forward, as of March, the situation in the RRMC was rectified and it is in compliance with the 8^th District Court of Appeals with charges for costs per case.

Clerk Comery distributed a revised Computer Tech B budget sheet which she said contained a minor change.

Continuing an explanation of the case mentioned above, she said there were actually two cases. The one above was strictly against Berea and was based upon the idea that those who filed the suit felt that Berea was gouging on its costs. The Rocky River case has not been adjudged at this point and litigants may be waiting to see the outcome of the Berea case. The courts in the State of Ohio are split 50/50 on how they charge costs for their cases, either by the charge or by the case. Because of these suits, many courts have revised their cost schedules. Rocky River now charges by the case, calculated so that the amount which would have been collected under the old method is still being collected. So far, this is working as hoped.

Each month a financial analysis is done so that both the judges and the clerk know where they stand. She explained further that the court's income, unlike that of business or a city, is seasonal. For the first six months of the year, revenues are usually down. The Court has balanced its budget since 1996 but the busy season does not begin until the middle of summer. This is because of the number of cases filed and the seasonality of traffic tickets. There has also been a huge increase in civil cases this year, i.e. 104% in small claims and 44% in civil cases altogether. In fact, staff increases were made to cover the heavy work load which resulted. Ms. Comery explained that many cases had two parts: the nonpayment, immediately followed by garnishment, both of which require large amounts of paperwork. This year has also seen an increase in criminal traffic cases.

Responding to a question from Mr. Moran, the Clerk assured Council that since the Court has been self-sufficient since 1996, it will continue to be so. Mr. Moran then wondered if there were more cases which could be handled by the municipal court rather than a county court. Magistrate Serrat acknowledged that there has been talk of increasing civil jurisdiction. It was $10,000 many years ago, and has become $15,000; there is always discussion of raising the limit to $25,000. The only benefit is that more cases would be filed, but she explained that the RRMC accepts what is brought to them. They have, however, developed programs that deal with more efficiently with what they are given, but they will accept what statutes require.

Mayor Bobst raised the question of mayors' courts which is a cause of concern. She asked if there is legislation which would prohibit the mayor of a municipality which participates in the RRMC from starting a mayor's court.

• •Ms. Serrat responded that there are bills, but nothing has been adopted which prohibits these courts. She said the one most likely to be adopted says that in a community like Rocky River which has no history of a mayor's court, one cannot be established. There is another more stringent bill would prohibit all mayors' courts. Several years ago, there was talk that a mayor's court would be established and the judges and Bill Gareau, the clerk at the time, spoke with community groups and persuaded the administration that it would not make financial sense. She said that she has seen no movement to encourage more of these courts, but rather the prohibiting of the courts.

Mayor Bobst said that there are some jurisdictions in the state that would like to expand the authority of the mayors' courts and keep them intact. There are other areas which would be concerned because they are multi-jurisdictional. There are concerns from the Ohio Municipal League that some legislation is on track for passage, particularly because of the lame duck session.

• •Ms. Serrat responded that everything she has seen at gatherings of court administrators, for example, is that any changes made would make it more difficult to establish. The Mayor said that that may not be true in other parts of the state. If the Administration or Council can help to make the City's position clear, she said she would be happy to support the court in any way.



• •Mrs. Comery mentioned that Mayors' courts occur only in two states: Louisiana and Ohio. She said that she has heard nothing which would indicate that any city in this jurisdiction is considering such a move. She noted that fine money collected is designated by law to go to the city in which the offense occurred. There are cities where the finance director thinks that the fine money goes to the court for its operation. This is not true.



• •Mr. Mylen asked how long it would take to set up such a court. Ms. Serrat said they would only need an establishing ordinance, a computer system because of state reporting, and experienced court employees. Judge Hagan indicated that there has not been a new mayor's court established in this state for a long time.

Mr. Mylen recalled that Clerk Comery had said earlier that she did not replace her position of chief deputy clerk when she was elected. She responded that because she felt that the clerk's office has been somewhat understaffed and because of the volume of work, she brought those duties to her present position. The salary designated for that position has been put into needed clerk staffing.

Mr. Furry asked about the Tech B fund and why the Contract Repairs/Agreements line item was increased with all the new computers recently purchased. Clerk Comery responded that not only hardware requires maintenance, but every piece of software, also. A new e-filing system will soon be installed. That will require further maintenance.

Mr. Mylen pointed out that much efficiency will be gained with the e-filing system. The clerk said that efficiencies overall have been excellent. The court is trying to become a paperless court, and this will be another aspect. She said that scanning has been increased so that any document in a current case can be accessed. As a court, they are becoming less dependent on a hard file and more dependent upon computers which eliminates much search time and smooths the process.

Mr. Thomas explained that, in view of comments that the court operates in the black, he wished to explain that when the court operates at a surplus, the City of Rocky River retains those funds in the General Fund. When there is a deficit, that deficit will be billed to the cities within the jurisdiction, based on civil case count. He meets semi-annually with finance directors within the jurisdiction to provide them with the report as to the financial status. Although he sometimes has to report a deficit, it has gone to a surplus this year. In any case, member cities are notified in advance.

Mr. Moran asked about the number of employees; Ms. Comery said there are 55, full and part-time. He asked if they are recorded in the budget book's list of top employers as part of the city payroll. The Mayor said they are part of the City's 210 full-time employees. Mr. Moran said that the court is a valuable employer.

• •Ms. Comery commented that in the course of their operational budget, the court attempts to have enough surplus to help defray the City's expenses for housing it so that it will not be a burden. She also pointed out that the court has been successful so far in paying for the bond which built the building.

On behalf of himself and Judge Fitzsimmons, Judge Hagan thanked the City for being good caretakers of their funds and pledged that the judges, the clerk and the magistrates would be good stewards of the fund.

Mr. Moran thanked members of the Finance Committee and other Council members. He acknowledged economies made by staff members, and noted that today's presentations and interviews were very helpful. He added that two more directors, Mr. Patterson and Chief Flynn, will be present at 7:00 on Monday with a Public Hearing scheduled for 7:30.

There was no further discussion from members of Council, and the meeting was adjourned at 12:10 p.m.

_______________________________ _______________________________

James W. Moran, Chairman Misao Kurokawa

Finance Committee Clerk of Council