DRAFT

CITY OF ROCKY RIVER

DECEMBER 20, 2004

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

Council Members Present: Mr. Gollinger, Mr. Potterfield, Mr. Frost, Mr. Hurtuk,

Mrs. Bartolozzi, Mrs. Bobst

Absent: Mr. Hagan

Administration: Mr. Linden, Mr. Thomas, Mr. Koran

Assistant Law Director: Mr. Hotz

Press: Mrs. McKenzie

The meeting was opened with the Pledge of Allegiance.

Mrs. Bobst opened the meeting with an announcement that after a long and brave battle, Lindsey Knoble, wife of the Mayor, passed away yesterday. She was beloved as a wife, mother and grandmother and lived her life with grace and kindness, sharing her talents, especially singing and quilting, with the many organizations in which she was an active volunteer. With the Mayor, she shared a love for the City and Mrs. Bobst asked Council and the audience to keep the family in their prayers.

In lieu of a Mayor's report then, she turned to Mr. Linden and Mr. Thomas for Directors' Reports. Mr. Linden, the Safety-Service Director, reported on salt usage. There are approximately 36 hills and inclines in the City along with 4 main and 5 secondary roads which need more salt than is used by many other cities. He reported that we have already used 710 tons at a cost of approximately $22,000. In the extreme cold that we have been experiencing, even more salt has been required. He wanted Council to be aware that additional salt funding will probably be necessary.

Mr. Thomas, the Finance Director, indicated that he had distributed, for Council's information, printouts representing temporary appropriations for the first quarter of 2005. The format reflects that used in permanent appropriations. His intent is to include amounts that are in the printout in the temporary appropriations ordinance for 2005 for next week's agenda. This provides the detail for the figures in that ordinance.

Mrs. Bobst asked about the significance of the asterisk for certain items. Mr. Thomas explained that in some cases we know what the total expenditure will be for all of 2005 so that amount is included in the total. For example, the cost of insurance is known, and is a one-time amount paid in January. That amount is shown with an asterisk.

UNFINISHED BUSINESS:

Resolution No. 133-04: This resolution adopts the Master Plan. Mr. Potterfield commented that the plan is still with the Planning Commission which is reviewing it as a whole and some specific areas. As the Planning Commission will meet tomorrow evening, approved minutes of the first of the plan meetings should be available next week for Council review.

Ordinance No. 175-04: This ordinance concerns the proposed City lease of a parking garage at Beachcliff Market Square. Mrs. Bobst noted that Mr. Koran was present to answer questions that Council members may have. The ordinance will have its third reading at next week's legislative meeting.

• •Mr. Frost thanked Mr. Koran for coming and asked about information provided last week. He wondered if that information had taken into consideration the positive influence for neighboring businesses. He noted that a number of jobs may be lost as businesses leave the Beachcliff Market Square.
  
  

Mr. Koran stated that the impact of the Beachcliff Market Square is significant in all of downtown in his opinion, and is already being felt. Six months ago, when it appeared that the project would move forward, he contacted each business in the center personally, giving them an updated list of vacant store locations available in the City. He indicated that his aim is to keep these businesses in the City if possible. For example, Studio Aria has found space across the street. He could not say where all the present tenants will settle eventually, of course, but his goal is to keep the businesses viable and in the City.

As far as Beachcliff is concerned, he believes that National City will remain in its present location in the front and that Pearl of the Orient will also remain through its lease expiration in 2011. Other significant tenants like McDhurries are trying to find suitable locations in Rocky River, hopefully until the redevelopment is complete and they can return. The smaller businesses may not be able to remain in Beachcliff. Tomorrows Salon creates a great deal of traffic and should be able to stay. Mr. Koran reviewed other merchants and acknowledged that he has tried to persuade some of them to consider vacancies on Center Ridge Road, even in the Westwood Towne Center, but these tenants feel that there is a difference in the two areas. Mr. Koran commented that the City would, however, like to keep a mix of local and national tenants in the redevelopment. A new restaurant is expected in the front area; Gamekeeper's will probably not be part of the equation.

Mr. Koran then enumerated changes made by many small businesses in relocating and noted that there is constant movement, e.g Adesso has expanded and moved into the space vacated by Talbot's. He noted that there may even be some movement on Lake Road. With this movement, the City is hoping to be able to keep present employees and add the new employees from the redeveloped shopping center. He reiterated last week's statistics, that according to the CCA, there are currently about 100 jobs generating about $45,000. Madison Marquette expects that there will be about 170-190 jobs when the redevelopment is complete.

• •Mr. Frost thanked Mr. Koran for answering his question and commented that the net increase may not be accurate because some of the displaced businesses are remaining in the City and will continue to contribute.
  
  

Mr. Koran acknowledged that he does not yet know who the final tenants will be. There will be 12 months of disruption or moving twice within that time.

• •Mr. Frost asked the Economic Development Director to keep Council informed of any developments.
  
  

Mr. Koran stated that he could say with confidence that Beachcliff Market Square will cause repercussions throughout the Detroit Road area. Those ripples may extend to Westlake Cab and the Depot/Detroit neighborhood.

• •Mr. Gollinger noted that from the beginning when this project was first proposed, he realized that this would bring an anchor into the area for the all the businesses. For either to be successful, both must be successful. More parking has been a need, and Madison Marquette and other retailers have been seeking more off-street parking to be used by all their customers.
  
  
• •Mr. Hurtuk explained that he will be out-of-town next week, but because he has been in this industry for most of his professional career, he has realized that the true definition of success is not when one entity is granted a benefit, it is when several entities are granted an opportunity to succeed. This agreement is good for both sides because there has been a little left on the table by each. He has seen agreements with tax abatement which benefit one developer. This agreement benefits the entire area. Of course, he would like to see fewer dollars spent by the City, but this is a good deal for the City and the developer. Were he able to be here next week, he would support this ordinance, and he said he hopes his colleagues will.
  
  
• •Mrs. Bobst agreed, saying that one word she wrote on her copy of the ordinance early in the discussion was synergy. The viability and vitality of this area is important. With cities attempting to create a downtown, our City is lucky to have one already. At one time, Council considered spending $3-4 million to construct a garage to help provide more parking for the area and wondered if the City built the garage would they come? Now, here is a $30 million project being built and the City's participation in a parking garage is not the $3-4 million (which would not have covered the cost of land acquisition, even if the right parcels had been available). This unique situation is being presented to the City. She indicated that she appreciated the efforts which have allowed the project to get to this point.
  
  

• •Mr. Gollinger recalled that a number of times, Council looked at appeals to extend parking at the request of business owners. With the $3 million proposal, maintenance of the facility would have been extra. Further, the property would have been removed from the tax duplicate. This proposal, which retains the property as taxable is a very good proposal from the City's point of view.
  
  
  
  

MISCELLANEOUS BUSINESS:

Sewer Tie-in Fees: Mrs. Bobst indicated that, under the direction of Mayor Knoble, Mr. Koran and Mr. Beirne had prepared a proposal for a revision of the fees. This requires review by the Administration and the Law Director, which can hopefully be done this week so that the information can be forwarded in Council packets on Friday.

COMMITTEE REPORTS: NONE

NEW BUSINESS:

Ordinance No. 184-04: This ordinance makes supplemental appropriations for current expenses. Asked about the phrase "to revise estimates" in the explanatory material distributed to Council, Mr. Thomas further explained that in the original budget, it is sometimes not possible to pinpoint expenses and the amount allotted must be expanded. For example, the telephone account has been the same since 2001 and the amount allotted has been able to absorb cost increases. This year, the increase went beyond the amount, so a supplemental appropriation is necessary.

• •Mr. Hurtuk commented that he would like everyone to be comfortable with these figures since this ordinance should be passed next week. Council should be seeing the 2005 budget by the 3^rd or 4^th week of January. At that time, Finance Committee meetings will be scheduled and directors invited to discuss budget requests. Mr. Hurtuk observed that this procedure seemed to be well-received and said he hoped that it increased communication.
  
  
• •Mrs. Bobst encouraged Council members to review these figures and explanations. If they have questions, Mr. Thomas is available during the week to supply answers.
  
  
• •Mr. Gollinger noted that a figure for a $60,000 increase for CCA overhead charges raised an immediate question in his mind.

Mr. Thomas explained that charges for collection by the CCA are a percentage of revenues and were offset proportionately.

Ordinance No. 185-04: Mr. Hurtuk indicated that this is the ordinance which will address the bond issue for the expansion of the Don Umerley Civic Center which passed in the last election. There is not much detail as yet, but the ordinance will be read for the first time next week. Discussion at the next Committee-of-the-Whole next year should provide greater detail

• •Mr. Thomas commented that this is a straightforward authorization to issue bonds and was prepared by the City's bond counsel, according to state regulations with Calfee, Halter as bond counsel and NatCity as underwriter. Another bond rating, as done recently, will be necessary.
  
  
• •Mrs. Bobst mentioned that at the last meeting of the Recreation Commission, a tentative timeline for the expansion has been disseminated:

Currently, the department is seeking requests for qualifications and requests for

proposals for design services.

January, 2005 - award contract for design services, specifications and bidding documents

February - June, 2005 - bids will be accepted

Late June or early July - bid opening

July - August, 2005 - bids will be evaluated and the contract awarded.

September - October 2005 - construction should begin

Fall, 2006 - expansion should be completed.

Mrs. Bobst emphasized that this schedule is tentative and subject to change.

COMMUNICATIONS AND ANNOUNCEMENTS:

Mrs. Bobst announced that the memorial service for Lindsey Knoble has been scheduled for Wednesday, December 29 at 3:00 p.m. at the Rocky River Presbyterian Church with a reception to follow.

Appreciation was expressed to Assistant Law Director Hotz for the many meetings at which he provided guidance for the Council. This was his last meeting, since Mr. Matty, the Law Director will soon attend all meetings. All members of Council joined Mrs. Bobst in thanking the Assistant Law Director.

As there was no further business by members of Council, the meeting was adjourned at

8:46 p.m.

_____________________________ _____________________________

Pamela E. Bobst Misao Kurokawa

President of Council Clerk of Council

Please note: This is a draft copy of the minutes of the meeting of the Committee-of-the-Whole of December 20, 2004. These minutes may be amended or revised at the next Legislative Meeting.