CITY OF ROCKY RIVER

DECEMBER 8, 2008

The Regular Meeting of Council was called to order by Mr. Moran, President of Council, at 8:00 p.m. in the David J. Cook Council Chambers.

Council Members Present: Mr. Hunt, Mr. Shepherd, Mr. Mylen, Mr. Furry,

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

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

Law Director: Mr. Bemer

Press: Ms. Kosco

The meeting was opened with the Pledge of Allegiance.

Moved by Mr. Moran, seconded by Mr. Shepherd, that the reading of the minutes of the Legislative Meeting and Executive Session of November 24 be waived, and that the minutes be accepted as submitted.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

Moved by Mr. Moran, seconded by Mrs. Arabian Whitman, that the reading of the minutes of the meeting of the Committee-of-the-Whole and Executive Session of December 1 be waived, and that the minutes be accepted as submitted.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

Moved by Mr. Moran, seconded by Mr. Long, that the minutes of the meeting of the Finance Committee of December 2 be waived, and that the minutes be accepted as submitted.

Vote: Moran - aye Furry - aye Long - aye Mylen - aye

4 ayes 0 nays PASSED

MOTION:

Moved by Mr. Moran, seconded by Mr. Furry, that the 72-hour rule of notification for Resolution No. 132-08 be waived and that Resolution No. 132-08 be placed on the Council agenda.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

RESOLUTION NO. 132-08 BY THE MAYOR, THE LAW DIRECTOR AND

ALL MEMBERS OF COUNCIL

A RESOLUTION COMMEMORATING THE OUTSTANDING PERFORMANCE OF THE MAGNIFICAT HIGH SCHOOL CROSS COUNTRY TEAM AND COACH ANJANETTE ARABIAN WHITMAN

1^ST READING

Moved by Mr. Moran, seconded by Mr. Furry, that the rule requiring that Resolution No. 132-08 be read on three separate days be suspended, and that Resolution No. 132-08 be placed upon its passage:

Discussion: Mr. Moran thanked all those in attendance this evening. He read the resolution, which paid tribute to Coach Arabian Whitman and the members of the Magnificat High School cross country team that had an undefeated season and won the state championship, in its entirety. This past weekend, the team also was invited to participate in the Nike Cross National Meet in Portland, Oregon.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

Moved by Mr. Moran, seconded by Mr. Furry, that Ordinance No. 132-08 be passed as read:

Discussion: Mr. Moran congratulated the team for its achievement which brought honor not only to themselves and their coach, but to their parents, the school and the City. He said he hoped that this resolution would help create a memory for them and expressed the appreciation of the City for their hard work.

Mrs. Arabian Whitman acknowledged her two fellow coaches, Mary Beth Chambers and Kathy Manning. Mrs. Chambers is the mother of many girls who have gone through the program, and Ms. Manning has been in the program before either of the other two coaches and helped set the stage for the today's successful program. The Councilwoman praised the girls' focus and work ethic which allowed them to be wonderful athletes and excellent students with 3.9 grade point averages. She also thanked the parents for raising such wonderful children and being an excellent support system. She thanked Council members for the resolution and once more praised her girls for being such good examples for the rest of the school and the community.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

MAYOR'S REPORT:

A wonderful tree-lighting ceremony was held Friday. This beautiful tradition kicks off the holiday season and is sponsored by the Rocky River Junior Women's Club for the benefit of its Assistance Program. Last week the Mayor mentioned that she thought the number of families being served was about 77 or 79, but in fact, it is now 94 families representing 225 individuals in the City. She thanked the Juniors not only for making those holidays brighter by organizing the ceremony and the festivities at the Senior Center, but also for all they do which touches the lives of so many residents.

The Mayor also thanked Director Carole Calladine and the staff and volunteers who have decorated the Senior Center so beautifully. She recommended that families visit the center to admire the Victorian village composed of dollhouses and miniatures. The Mayor also thanked Emil Rosol and Jim Umerley who put together all the lights. She noted that the lights will be on only from 5:30 p.m. until 10:00 p.m. and for a short time in the morning while it is dark. This is an attempt to save on electricity. She also thanked the Key Club which was involved in the crafts for the youngest residents and the Show Choir which did a great job during the freezing cold ceremony.

Carole Calladine was recognized by the Board of Commissioners of Cuyahoga County for her leadership in the Cuyahoga County Municipal Office on Aging Association and her service to elderly persons in the City of Rocky River. The award then outlines all of Mrs. Calladine's leadership positions and all the ways she has touched the lives of seniors in the community.

Two new businesses are opening in Beach Cliff Market Square. One is a store with soaps and lotions which started as a home-based business, Pure Enchantment, which will open Saturday. A new gallery will also open in the very near future.

Saturday, Skate with Santa is a big event planned at the ice rink.

The Metroparks dive team did some training in the City's pool. The Mayor said that this shows another way to maximize the usage of the facilities.

The leaves that were on tree lawns are now snow-covered, but the Mayor said that crews will be back out tomorrow collecting leaves.

Two DARE graduations will be held this week: St. Christopher on Wednesday where Councilman Hunt's son will be participating, and Ruffing Montessori on Friday.

A call has been received from Julie Johnson, the Executive Director of Community Challenge, who has now left that position. The Mayor will meet with Ray Marvar, President of the Board of Directors and Debbie Rodriguiz, head of the Board of Recovery Resources.

During the budget meetings, the City was notified that the District One Public Works Integrating Committee has announced its preliminary rankings for capital projects, and the Hampton Interceptor Replacement Project was funded for almost $3.8 million of a $5.4 million project with a zero interest loan. The City's portion is the remaining $1.62 million. The loan financing translates into $126,000 per year for 30 years at zero interest once it begins. Mayor Bobst said that this shows once again how the Sewer Rehabilitation Fund established last year will be utilized to allow the City to leverage those dollars to finance large projects. In addition, Fairview Park had a sewer project funded which will also help the WWTP capacity and lines.

Finally, the Mayor asked for an Executive Session under Article X, Section 6, Subsection (4) of the Charter of the City of Rocky River to discuss labor negotiation matters.

MOTION:

Moved by Mr. Moran, seconded by Mr. Furry and 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 immediately preceding adjournment this evening.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

LAW DIRECTOR'S REPORT:

The Law Director indicated that he had distributed two documents: one a letter to the proprietor of Sweet Melissa's concerning his liquor transfer, and the other a template of a cooperation agreement. The last item on this evening's agenda is concerned with a liquor permit exemption request.

Mr. Bemer has also received a report from Norfolk Southern concerning rail traffic through the City for the month of October. The average was 3.5 trains per day with a high of seven and a low of one.

COMMITTEE REPORTS:

Finance Committee: Mr. Moran announced that his committee has met with directors at the meeting of Tuesday, December 2. He thanked Council members, Mr. Harrington, Mr. Wagner, Mrs. Calladine, Judge Hagan, Mrs. Comery, Mr. Bracken, Ms. Serrat and Mr. Winterich for their participation. Special thanks went to Mr. Thomas who made himself available to everyone, and to Mr. Linden with his many years of experience.

There was also a meeting this evening with Mr. Patterson and Chief Flynn. Mr. Moran said that Council's role is to review this workable model and to monitor spending during the year. He said it is important to watch balances, the revenue base and expenditures. Mayor Bobst's 14 years' experience with the budget has gone into the formulating of this document.

COMMUNICATIONS AND ANNOUNCEMENTS:

S.A.F.E.: Mr. Furry announced that the working group for Cleveland Hopkins Airport will meet on January 27, 2009 at 5:30 p.m.

Mr. Moran also received a letter of thanks for the gift Council members sent in support of the Home Tour.

(Note: This was a personal donation by members of Council and no public funds were used.)

AUDIENCE PARTICIPATION: NONE

ORDINANCE NO. 94-08 BY THOMAS J. HUNT

AN EMERGENCY ORDINANCE DIRECTING THE MAYOR TO EXECUTE AN EASEMENT TO THE OHIO BELL TELEPHONE COMPANY DBA AT&T OHIO ON PROPERTY OWNED BY THE CITY OF ROCKY RIVER, AND AS FURTHER DESCRIBED IN EXHIBIT "A"

Mr. Hunt indicated that this ordinance has been pending for some time, and that status will be continued. If updates from AT&T are received, they will be discussed at the next meeting. This will be passed when and if appropriate assurances have been made regarding the easements requested.

ORDINANCE NO. 103-08 BY THOMAS J. HUNT

AN EMERGENCY ORDINANCE DIRECTING THE MAYOR TO EXECUTE AN EXCLUSIVE AND A NON-EXCLUSIVE EASEMENT TO THE OHIO BELL TELEPHONE COMPANY DBA AT&T OHIO ON PROPERTY OWNED BY THE CITY OF ROCKY RIVER, AND AS FURTHER DESCRIBED IN EXHIBITS "A-1" AND "A-2"

This ordinance authorizes an exclusive and non-exclusive easement sought by AT&T and as with Ordinance No. 94-08, it will also be on hold.

AMENDED ORDINANCE NO. 127-08 BY JAMES W. MORAN

AN EMERGENCY ORDINANCE TO MAKE APPROPRIATIONS FOR THE CURRENT EXPENSES OF THE CITY OF ROCKY RIVER, OHIO, DURING THE FISCAL YEAR ENDING DECEMBER 31, 2009

3^RD READING

MOTION:

Moved by Mr. Moran, seconded by Mr. Long, that Ordinance No. 127-08 be amended as to the exhibit.

Discussion: Mr. Moran noted that the new exhibit was distributed this evening.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

Moved by Mr. Moran, seconded by Mr. Long, that Ordinance No. 127-08 be passed as read:

Discussion: Mr. Moran indicated that all the directors have commented on their budgets. Much experience has gone into the making of this budget in a process that has taken three to four months. He said this would be used as a directive for the process for 2009, acknowledging that it will be continually monitored as that is Council's responsibility. The financial spending for the year is also Council's responsibility together with a tracking of revenues received. This budget will be considered as a working copy, and there will be much to monitor. He asked for Council's support for passage of the 2009 budget.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

ORDINANCE NO. 128-08 BY THOMAS T. LONG

AN ORDINANCE TO CHANGE THE DISTRICT CLASSIFICATION OF CERTAIN REAL PROPERTY KNOWN AS AUDITOR'S PERMANENT PARCEL NOS. 301-18-066 AND 301-18-067 IN THEIR ENTIRETIES, FROM THEIR PRESENT CLASSIFICATION OF OFFICE (O-3) TO SERVICE/MANUFACTURING (S/M) AS FURTHER DESCRIBED IN EXHIBIT "A"

Mr. Long indicated that this ordinance, which is a request for rezoning, has been read once, and it has been referred to the Planning Commission. It will be considered at their meeting on December 16. When minutes are approved, Council will proceed. Mr. Mylen asked if approval of their minutes is done at the meeting following. Mr. Long confirmed that it is.

ORDINANCE NO. 130-08 BY THOMAS T. LONG

AN EMERGENCY ORDINANCE TO AMEND CHAPTER 1321 OF THE CODIFIED ORDINANCES OF THE CITY OF ROCKY RIVER, CONCERNING PERMIT, INSPECTION AND LICENSE FEES, BY AMENDING SECTIONS 1321.01, 1321.02, 1321.04 AND 1321.05, AND BY ADDING NEW SECTION 1321.11

2^ND READING

Mr. Long indicated that Building Commissioner Kevin Beirne should be at the next meeting of the Committee-of-the-Whole to answer any questions about this ordinance and to give some history behind the updating of these fees. Mr. Long said that following the discussion, he will move for passage at the next Legislative Meeting.

ORDINANCE NO. 131-08 BY THOMAS J. HUNT

AN ORDINANCE TO AMEND ARTICLE X OF THE CHARTER OF THE CITY OF ROCKY RIVER BY DESIGNATING THE NEWLY ENACTED SECTION TO BE NUMBERED AS SECTION EIGHT PURSUANT TO THE AUTHORITY GRANTED BY THE ELECTORS IN THE GENERAL ELECTION HELD ON NOVEMBER 4, 2008 AND DECLARING AN EMERGENCY

1^ST READING

Moved by Mr. Hunt, seconded by Mr. Mylen, that the rule requiring that Ordinance No. 131-08 be read on three separate days be suspended and that Ordinance No. 131-08 be placed upon its passage:

Discussion: Mr. Hunt noted that this Charter Review issue passed at the November 4 election. This ordinance will complete the process to make the amendment part of the Charter, so there is no reason to delay.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

Moved by Mr. Hunt, seconded by Mr. Long, that Ordinance No. 131-08 be passed as read:

Discussion: The Charter Review Commission spent a great deal of time on its recommendations to the electorate for the election of November 4. This amendment passed, and this ordinance will designate the section number for the amendment to be included in the Charter. This provides Council, together with the Law Director, the authority to delete obsolete language, rearrange the numbering and titles, and correct typographical errors in the Charter.

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

Arabian Whitman - aye Long - aye Moran - aye

7 ayes 0 nays PASSED

MISCELLANEOUS BUSINESS:

TREX (Economic Development Liquor Transfer) Application: Director Bemer explained that the City has 20 liquor licenses in each category of liquor distribution. That number is based upon the population of the city. There have been requests for additional sit-down liquor service, but because 20 licenses have already been issued, the City is considered full by the Board of Liquor Control.

However, an individual or business entity can apply for an exemption and transfer a license from another municipality based upon an economic development project. This has been done in the past-Heinen's is a good example from the mid-90's. The store wanted to expand its sales and have wine tastings as well as a dinner menu. In doing that, it presented documentation to reflect anticipated increases in sales, hiring of additional employees and revenues that translated to taxable income.

Such an application has now been received from Sweet Melissa's. However, there is a liquor license owned by the former owner of Max's Deli that is presently held in reserve and that status is being reviewed by the Liquor Control Board as to whether an extension of time to hold this license in safekeeping should be issued.

In reviewing this issue with the City Administration, it seemed that the City should move cautiously about bringing in additional liquor licenses when there is still one which may be available. Rather than going through the TREX process, it would seem more prudent to wait to see if the other outstanding license will be available for use. This is no reflection on either the applicant or the development project. An important point is not to saturate the City with more liquor licenses when one may be available in the near future.

A draft of a letter to Sweet Melissa's from the Law Director has been distributed to explain the City's position.

As a companion document, the Law Director presented a sample Cooperation Agreement which was obtained through the City of Cleveland. Occasionally when that city allows a license to be transferred in and utilized, there is a good chance because of the complexion of the business that the use of the license may be changed or modified. In that case, it requires a Cooperation Agreement which helps to control the use of a permit, and an establishment selling liquor would be bound by such an agreement. It could be called a conditional use application for their particular liquor license.

These are issues that may be presented to the City in the near future, and the Law Director wished Council to be up-to-date as to rules and regulations.

• Mrs. Arabian Whitman asked when it will be known if an extension is granted to the owner of the license in safekeeping. Mr. Bemer said he was told it will be in about eight weeks, and that was two weeks ago. He anticipates that a due process hearing will be held if the Liquor Control Board decides to eliminate this particular license. It has already been extended for well over a year.



• Responding to Mr. Moran, the Law Director said that it is up to Max's whether they wish to sell the license, relocate to another city and apply through the TREX program or to ask for another extension. Liquor permits may be sold on the open market, although they cost much less if obtained from the State. In this instance, Sweet Melissa's purchased a license with a contingency of receiving the exemption from the City of Rocky River. This letter will allow the owner to revoke that contract and retrieve his money from escrow. He is also the first on the waiting list for a license.



• The Mayor commented that BW3 also has a license which was placed in safekeeping when the business moved to Fairview Park. That may also be available. Further, Peking House had a license which was sold to the group that is opening a restaurant on Linda Street.

Mr. Bemer noted that the Irish Barber is second in line for a license, as the owner is interested in selling beer in his establishment. Because of the nature of this unique business, the City may be interested in a Cooperative Agreement with the use of this license.

• Responding to a question from Mr. Furry, the Mayor explained that liquor permits do not go through the City, but the legislative authority will be notified. Once a year prior to October, all liquor permits issued in the City may be reviewed. Mr. Bemer explained that the TREX is asking Council to approve an exemption to the liquor license limit over the existing number of allowed licenses for economic purposes.



• Mr. Mylen asked if the number will always be 21 if a TREX application is approved. Mr. Bemer said that if someone closes an existing business and sells its license outside the City, the number would decrease. The Mayor said that is a concern; with this process wherein the Liquor Control Board assigns this license to its legal department, that license could be available in the next few weeks. If Council approves a TREX, an additional license is now in the City.

Mr. Bemer said that it appears that Sweet Melissa's has a legitimate economic development project, but there is a conflict in that the City wishes to control the number of licenses in the City. This letter will defer the restaurant for the time being.

• Mr. Moran asked if BW3, when it reopens in Fairview Park, needs a new license. Mr. Bemer said that it does. Fairview Park may have a license, or they may go through the TREX program. Since they already have a license, they would need only an application to the City of Fairview Park if that city is already saturated.



• Mr. Shepherd asked about violations of the Cooperation Agreement. If terms are not observed, he asked if it could be used as a basis to review and protest the license. Mr. Bemer said that injunctive relief is also a possibility.

AUDIENCE PARTICIPATION: NONE

As there was no further business by members of Council, Mr. Moran announced that Council will move into Executive Session under Article X, Section 6, Subsection (4). No further business will be discussed following the Executive Session.

The meeting was adjourned following the Executive Session at 9:39 p.m.

_____________________________ _______________________________

James W. Moran Misao Kurokawa

President of Council Clerk of Council

CITY OF ROCKY RIVER

DECEMBER 8, 2008

Finance Committee

The meeting of the Finance Committee was called to order by the Chairman, Mr. Moran at 7:00 p.m. in the David J. Cook Council Chambers.

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

Council members present: Mr. Hunt, Mr. Shepherd, Mrs. Arabian Whitman

Administration: Mayor Bobst, Mr. Thomas, Mr. Patterson, Chief Flynn

Law Director: Mr. Bemer

Press: Ms. Costas

Mr. Moran thanked all members of Council for their involvement in the entire budget process which he said was key to what Council members do. During this first phase, directors have presented their needs and wants and during the year, Council members need to monitor revenues, investments and tools required to serve departments and citizens of Rocky River. Although the budget will be evaluated as a whole, during the year Council will be responsible for the approval of requests. This evaluation will be an ongoing process to be sure that revenue sources, taxes and income work together with expenses planned for this year's budget. There will be challenging times ahead, and Mr. Moran expressed appreciation for keeping expenses under control this year, and expressed thanks to the Mayor and the Finance Director for their work.

He then turned to Mrs. Arabian Whitman for a discussion of the Parks and Recreation portion of the proposed budget. The Councilwoman thanked Director Mike Patterson for working with her during the year as well as working with the staff and meeting with the Commission each month. This process keeps everyone up to date.

This is the first year that the budget includes the actual statistics from the Civic Center indoor pool and fitness center so firmer numbers are available for the 2009 budget. No major purchases are planned for this year. Also, there is a question regarding one staff position and whether or not it will be filled.

Director Mike Patterson came forward and confirmed that the first full year of operation at the Civic Center was completed in October. He thanked the staff for the job they did to utilize the facility with programming and schedules.

• •After the first full year, there are 6000 members which generated $600,000 in membership revenue, and the renewal rate to date has been about 85%. During the period from September 1 to December 1, there have also been 300 new memberships. The department is now focusing on the corporate area where there are not as many memberships as had been anticipated. In October, a flyer was circulated to as many businesses as possible, and two weeks ago, 550 letters were sent to businesses on Center Ridge Road.



• •In November, the number of visits increased 15% to almost 250,000 visits including members, programs, babysitting, teen lounge and others. From the usage standpoint, it has been very successful.



• •This year, the pool revenue from the outdoor pool was down. Weather was definitely one factor, and anticipated revenues were down $42,000; attendance was down about 10,000 which also lowered concession revenues.



• •Programming has remained stable except that Day Camp participation was down by about 60 participants, or about $18,000 in revenue. This could be due to economic factors. The ski club, too, could be affected by the economy and is down about 50 participants this winter. Typically about 150 middle school and high schools students participate; this year there will be about 100.



• •There is one custodian less on staff at the Civic Center. This past quarter, the department has reviewed its part-time staffing. In September, October and November, part-time hours have been decreased approximately 1500 hours each month. This has resulted in significant savings. As programming stabilizes, the staff will try to make adjustments to keep expenditures down.

Mr. Long asked if, with reductions in expenditures, Director Patterson can identify any particular area which will suffer. Director Patterson said that the major area would be the custodial position. He said the department has always taken pride in the appearance of the building. Part-time people do a great job, but not quite the same as a full-time person would do.

Mr. Hunt asked about memberships, noting that Council has questioned estimated revenue in the past. If the 85% renewal rate continues through the end of the year, Mr. Hunt asked how that will affect the budget. Mr. Patterson said that in talking to his peers, new memberships often compensate for non-renewals and membership becomes stable. Another unknown is how many members still plan to renew since the first year, memberships were for 13 months instead of 12. This means that many memberships will not be due until January. Other options are to allow employees of the schools to join as residents, or to open to a limited number of non-residents. The indoor aquatic facility is great and he would like to see higher utilization.

• •Mayor Bobst commented that several months ago when monitoring of Civic Center membership was begun, Director Patterson and his staff took action, looking at all the facilities to maximize revenue in each facility and reviewing all aspects, from programming to entrance fees, including memberships. In the spring and summer, plans were made for a marketing campaign which was formalized this fall. She said that the 300 new memberships are a direct result of these efforts.

She also commented on part-time hours, observing that he has done an incredible job, breaking down every area to reduce part-time hours which translates to significant reductions in terms of the budget, and said that this is a good example of doing more with less.

Mr. Patterson said that a comparison of the same months of September, October and November of last year and this year shows significant differences in expenditures, and most of that has been due to the judicious use of part-time employees.

Mrs. Arabian Whitman added that much of the overtime is for special events which are unavoidable and serves to draw people to the Civic Center.

Mr. Hunt complimented the director on being proactive in managing expenses. Mr. Patterson observed that budget time is an opportunity to look at how things are done and see if improvements are possible.

Mr. Moran asked if membership numbers could rise in January. Mr. Patterson responded that if members do not renew, another letter is sent asking for feedback on why they did not renew. There have been a variety of reasons, and he noted that some are delaying until after the first of the new year. He is confident that there will continue to be renewing members and new members. Also being explored is direct debit with Director Thomas so that payments can be taken directly from checking accounts and spread over a 12-month period.

Mr. Mylen asked for the total amount of expenditures for this department. The Mayor noted that they are found under Recreation, Civic Center, and Parks. Mr. Patterson said that last year's expenses were projected to be approximately $3.8 million; it appears now that the actual number will be about $3.4 million. He said that for next year, total expenditures are expected to be about $3.56 million.

Councilman Shepherd led the discussion concerning the Fire Division. He asked Chief Flynn if he has concerns about the safety of residents with the 8% reductions in expenses.

Chief Flynn said that a major portion of the reduction came from the fire hydrant repair fund, and he is hopeful that drivers will not damage as many and keep expenses in that line item low. He said that the division is trying to be more frugal in many ways, and that he foresees no crippling effects.

Regarding major purchases, Chief Flynn said the division is in the process of replacing the personal protective equipment for all firefighters, i.e. the insulated coats, insulated pants and the breathing apparatus. The latter had a major reworking last year when standards were changed. Manufacturers had to retool and redesign their products. The City has some old equipment, some more recent, but no new air pack equipment. He said that the division will not try to replace all its equipment at once, but will rather spread it out. This year, it is time to replace the turnout equipment, i.e. the insulated coats and pants. That is a substantial portion of the equipment purchase appropriation, nearly $50,000 to replace the turnout gear for the 27 active firefighters. The Chief was hopeful that help may be forthcoming from the Department of Homeland Security via a grant, but it is not certain as 2007 grants are still being processed.

• •Mr. Shepherd noted that this equipment is normally replaced after five years, but it has now been seven years, and it is overdue for replacement.

Mr. Shepherd also asked about the wage total projected for the upcoming year which is lower than what was spent in 2008.

• •Chief Flynn said that there are some new firefighters and not making the same amount as those that were replaced. Also, a captain retired in January and was not replaced until April. Recent contract negotiations indicate that pay raises will not be as high as might have been estimated at one point.

Mr. Shepherd asked about overtime and whether or not it will be an issue.

• •The Chief said that overtime is always an issue, and this year was particularly difficult because at the end of summer, two employees were out with back injuries at the same time on the same shift. Other employees were willing to forego vacations and days off so that the period could be manned without too much overtime. Discussions have been held on other ideas to reduce overtime.

Mr. Moran asked about fire hydrant repair, particularly one at the corner of Center Ridge and River Oaks. In 2005, 2006, and 2007 actual expenditures were $3000 to $4000. Appropriations for last year were $40,000. (Chief Flynn said that was the requested number which was trimmed to $20,000.) Actual expenditures were about $2800. Mr. Moran asked if there are other hydrants awaiting work.

• •Chief Flynn said that there are a couple being repaired now, including the one at Center Ridge and River Oaks. It depends upon luck; if no one hits a hydrant, expenses are low. If a hydrant is hit by someone with insurance, then it does not come out of the budget. However, at times, damaged hydrants are found with no offenders, and the City must assume the $3000 cost of replacement.

Mr. Moran expressed appreciation to Mr. Patterson and to Chief Flynn for attending to discuss their budgets.

Mayor Bobst commented that the Chief, together with firefighters, have been taking the issue of overtime into the labor-management meeting to put together a plan for reducing overtime. Some measures have been implemented, beginning in September. As a part of moving forward, some things have been included in the contract which would allow for notification to the City when someone plans to retire or if someone is moving. This is important because it allows for more effective planning. Without advance planning, the absence will cause more overtime charges.

Mr. Moran again thanked everyone for their preparation and time expended on the budget. This included the Finance Committee, and also other Council members.

Finance Director Thomas had comments on the Recreation budget. In reviewing the equipment purchase schedule, he said that there is a truck labeled for the Recreation Department. This is not a Recreation Department need; it is for the Service Department. This is the one ton truck listed on the Proposed Equipment Purchase schedule. The truck being replaced is #31 in the Service Department.

There was no further discussion from members of Council, and the meeting was adjourned at 7:37 p.m.

_______________________________ _______________________________

James W. Moran, Chairman Misao Kurokawa

Finance Committee Clerk of Council

CITY OF ROCKY RIVER

DECEMBER 8, 2008

PUBLIC HEARING - ORDINANCE NO. 127-08

AN EMERGENCY ORDINANCE TO MAKE APPROPRIATIONS

FOR THE CURRENT EXPENSES OF THE CITY OF ROCKY RIVER,

OHIO, DURING THE FISCAL YEAR ENDING DECEMBER 31, 2009

Council Members Present: Mr. Hunt, Mr. Shepherd, Mr. Mylen, Mr. Furry,

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

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

Law Director: Mr. Bemer

Press: Ms. Kosco

The Public Hearing for Ordinance No. 127-08 was opened at 7:39 p.m. by Mr. Moran, President of Council and chairman of the Finance Committee. He indicated that a notice was placed in the newspaper to announce this hearing as required.

Mr. Moran then opened the meeting to public comment on the 2009 budget, Ordinance No.

127-08.

AUDIENCE PARTICIPATION: NONE

The Mayor announced that a packet from the Auditor's Office had been received at 4:45 today with the analysts' projections for property taxes in the City. She said she was pleased that there were no reductions.

• •For the 2009 budget, property taxes were estimated at $7,596,908. In today's detail, they recommended the use of $7,646,415 which is an additional $49,507 to go to the General Fund.
• •Valuations in 2007 were $723 million; in 2008, $717 million; and for the coming year, $722 million, an actual increase from the last valuation.



• •The reason there is not a more substantial increase in revenues over last year is that the City was at 99% of collections; this year's projection is 97% which yields $7.6 million.

In looking at this particular budget and concerns about fund balances and expenditures, the Mayor said it would be monitored closely. As in other years, a financial summary will be received by Council members on a monthly basis, but beginning with January's summary, a written narrative of highlights, both on the revenue and expenditure sides along with any reaction or discussion points that may concern Council will also be included. She said this will not only show how closely the budget is monitored, but it will show some of the thought processes behind some reactions to the budget.

Last week the Mayor obtained a press release from the Governor's office regarding the state budget and the dire financial straits of the state government. From all indications, the concerns she expressed in her financial summary about funds flowing through the state to local communities are valid, and it appears that the funds will be impacted. She expects to see reductions in some funds which come to the City, such as the Local Government Fund.

As there was no further public comment, the Public Hearing was closed at 7:45 p.m.

______________________________ ______________________________

James W. Moran Misao Kurokawa

President of Council Clerk of Council