May 29, 2012 Summary

MARION CITY COUNCIL MEETING


City Hall – Council Chambers on May 29, 2012, 7:30 PM

ROLL CALL – 10 members answered –Mr. Cumston, Mr. Ratliff, Mr. Thomas, Mrs. Blevins, Mr. Smith, Mr. Osborn, Mr. Daniels, Mrs. Gustin, Mr. Schaber, Mr. Edwards.

PRAYER LED BY PASTOR TOM TONEY

PLEDGE OF ALLEGIANCE

Summary of Proceedings for May 14, 2012, Mr. Cumston moved, Mrs. Gustin 2nd. Roll call: Ayes all, motion carried. Summary of Proceedings is approved.

Mr. Cumston moved to add 2012-45 to tonight’s agenda, Mr. Thomas 2nd, Mr. Osborn 3rd. ORDINANCE 2012-45 WILL BE ADDED TO TONIGHT’S AGENDA

NEW BUSINESS:

RESOLUTION 2012-16:
RESOLUTION TO REQUEST THAT THE MARION COUNTY COMMISSIONERS BE THE LEAD GOVERNMENT IN APPLYING FOR “MOVING OHIO FORWARD GRANT FUNDS”; AUTHORIZING THE MAYOR AND LAW DIRECTOR TO ENTER INTO ALL NECESSARY AGREEMENTS WITH THE MARION BOARD OF COUNTY COMMISSIONERS, AND IF NECESSARY, THE MARION COUNTY PROSECUTOR OR MARION CITY LAW DIRECTOR, TO PARTICIPATE IN OBTAINING FUNDS FOR DEMOLITION INCLUDING PROPERTIES WITHIN THE CITY; AND AUTHORIZING THE MARION COUNTY REGIONAL PLANNING COMMISSION TO ADMINISTER THIS COUNTY/CITY GRANT WITH THE ASSISTANCE OF AN EIGHT(8) MEMBER “NEIGHBORHOOD STABILIZATION PROGRAM/ MOVING OHIO FORWARD”(NSP/MOF) COMMITTEE, AND DECLARING AN EMERGENCY
Mr. Ratliff stated this is grant money we can apply for, what is the due date. Ken Lengieza said it is June 30, we can apply for 459,000.00. We have the properties. Mr. Ratliff moved to suspend, Mr. Thomas 2nd. Roll call: Ayes all, motion carried. Mr. Ratliff moved to adopt, Mr. Thomas 2nd. Roll Call Ayes all, motion carried. RESOLUTION 2012-16 IS ADOPTED

ORDINANCE 2012-38:
ORDINANCE MAKING AN APPROPRIATION TO THE POLICE SUPPLY LINE ITEM IN THE GENERAL FUND AND LAW ENFORCEMENT TRUST FUND, TRUST EXPENSE LINE ITEM FOR THE YEAR ENDING DECEMBER 31, 2012
Mr. Cumston stated this came out of Finance with a 3-0 recommendation for approval, motion to suspend, Mr. Osborn 2nd. Roll Call: Ayes all, motion carried. Mr. Cumston moved to adopt, Mr.Osborn 2nd. Roll Call Ayes all, motion carried. ORDINANCE 2012-38 IS ADOPTED

ORDINANCE 2012-39:
ORDINANCE AUTHORIZING THE SERVICE DIRECTOR ENTER INTO AN AGREEMENT FOR A PERIOD OF (1) YEAR, WITH AN OPTION YEAR, WITH DAVE’S CARPET SALES FOR JANITORIAL SERVICES AT CITY HALL AND DECLARING AN EMERGENCY
Mr. Cumston stated this came out of Finance with a 3-0 recommendation for approval, motion to suspend, Mr. Osborn 2nd. Mr. Ratliff asked when the current contract is up. Mr. Shoup stated June 30, 2012.
Roll Call for suspension: Ayes all, motion carried. Mr. Cumston moved to adopt, Mr. Smith 2nd. Roll Call Ayes all, motion carried. ORDINANCE 2012-39 IS ADOPTED

ORDINANCE 2012-40:
ORDINANCE TO ESTABLISH A COMMUNITY DEVELOPMENT PROGRAM THROUGH THE STATE OF OHIO’S COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) SMALL CITIES’ PROGRAM AND TO AUTHORIZE THE MAYOR TO APPLY FOR THE NEIGHBORHOOD REVITALIZATION (Formerly Formula & Distress Grants) FUNDS AND ADMINISTER THE GRANT, AND DECLARING AN EMERGENCY
Mr. Ratliff stated this came out of committee with a 3-0 recommendation to pass onto Council.
PUBLIC HEARING NOW OPEN: 7:38 PM
A Tablet is being passed round for everyone to sign. Mr. Lengieza stated the projects that the Committee looked at all qualify; we have to get together with Mike Cheney and Mike Thomas with the type of materials. Sawyer Ludwig Park had a Cadillac version of this @ 140,000.00. The materials and the bridge (10 ft. wide) change can be done within the 88,000. Heritage Hall is the west side of the building by the stairway, and then the Marca Workshop is just a continuation. According to the staff, we think they are great projects. Mr. Ratliff mentioned that Heritage Hall will most likely be back and ask for more since this does not fix the problem. Mr. Josh Daniels asked about the bridge – can it be designed in-house. Engineer Terry Lively said they come in ready-made designs. They can come up with the design for us. It would be a better way to go than like the one at the High School.
PUBLIC HEARING NOW CLOSED: 7:44 PM
Mr. Ratliff moved to suspend, Mr. Thomas 2nd. Roll call: Ayes all, motion carried. Mr. Ratliff moved to adopt, Mr. Thomas 2nd. Roll Call Ayes all, motion carried. ORDINANCE 2012-40 IS ADOPTED

ORDINANCE 2012-41:
ORDINANCE ADOPTED TO PROVIDE GREATER DETAIL IN REGARD TO GIS MAPPING RELATED TO ORDINANCE 2011-81 WHICH AMENDED MARION CODIFIED ORDINANCE SECTIONS 105.01, RESUBDIVIDING THE CITY INTO WARDS PURSUANT TO OHIO REVISED CODE 731.06, AND DECLARING AN EMERGENCY
Mr. Daniels stated this came out of Committee 3-0; I’ll make a motion to suspend, Mr. Thomas 2nd. Roll call: Ayes all, motion carried. Mr. Ratliff moved to adopt, Mr. Thomas 2nd. Roll Call Ayes all, motion carried. ORDINANCE 2012-41 IS ADOPTED

ORDINANCE 2012-42:
ORDINANCE MAKING AN ADDITONAL APPROPRIATION OUT OF THE COURT FUND IN THE INDIGENT DRIVER ALCOHOL MOINTORING FUND FOR THE YEAR ENDING DECEMBER 31, 2012
Mr. Cumston stated this is the monies that are coming from the State for DUI tickets, 25,000; this is for the operation of this program, motion to suspend, Mr. Osborn 2nd. Roll Call for suspension: Ayes all, motion carried. Mr. Cumston moved to adopt, Mr. Osborn 2nd. Roll Call: Ayes all, motion carried. ORDINANCE 2012-42 IS ADOPTED

ORDINANCE 2012-43:
ORDINANCE MAKING AN ADDITONAL APPROPRIATION OUT OF THE COURT FUND IN THE INDIGENT DRIVER ALCOHOL TREATMENT FUND FOR THE YEAR ENDING DECEMBER 31, 2012
Mr. Cumston noted that this is also from the State DUI Program where they send these monies back to the City Municipal Court for the IDAC Program. Motion to suspend, Mr. Osborn 2nd. Roll Call: Ayes all, motion carried.
Mr. Cumston moved to adopt, Mr. Smith 2nd. Roll Call: Ayes all, motion carried. ORDINANCE 2012-43 IS ADOPTED

ORDINANCE 2012-44:
ORDINANCE AUTHORIZING AND DIRECTING THE SERVICE DIRECTOR TO ENTER INTO CONTRACT WITH JDR EXCAVATING, INC. FOR THE ROBINSON STREET IMPROVEMENTS, PROJECT 10-1P, FOR THE CITY OF MARION, OHIO AND DECLARING AN EMERGENCY (STREETS & SEWERS 3-0)
Mr. Thomas stated this came out of Committee with a 3-0 recommendation for approval, this is with an Emergency Clause, so the engineer can get this started, I’ll make a motion to suspend, Mr. Smith 2nd. Roll Call: Ayes all, motion carried.
Mr. Thomas moved to adopt, Mr. Smith 2nd.
Mrs. Gustin noted that Mr. Shoup has good news concerning this area. Mr. Shoup stated during our pre-construction meeting with the Robinson Street area, comments came up on the Safe Routes to School project. After the last Council meeting we received a letter giving us information that we were awarded a total of 322,000 in construction money. Project will break down into 2 projects – sidewalks on Fairground St. There are no crosswalks to speak of. A pedestrian bridge connecting Barbados and Richmond. Walk to school and encourage the parents walk to school in a cleaner environment so we don’t have the traffic problems at each school. We will spend calendar year 13 to construct the facilities and build in 2014. We targeted the largest grade school. Statewide – 68 projects – 16 million 65 thousand dollars – we were one of the 68.
Roll Call for adoption: Ayes all, motion carried. ORDINANCE 2012-44 IS ADOPTED
ORDINANCE 2012-45
ORDINANCE PROVIDING FOR THE ISSUANCE AND SALE OF BONDS IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $10,425,000, TO PAY COSTS OF IMPROVEMENTS FOR VARIOUS PURPOSES; APPROVING A PRELIMINARY OFFICIAL STATEMENT; AUTHORIZING THE PREPARATION, USE AND EXECUTION OF AN OFFICIAL STATEMENT; APPROVING AND AUTHORIZING THE EXECUTION AND DELIVERY OF A FINAL TERMS CERTIFICATE, A BOND REGISTRAR AGREEMENT, A BOND PURCHASE AGREEMENT AND A CONTINUING DISCLOSURE AGREEMENT; AUTHORIZING CERTAIN OTHER ACTIONS RELATED TO THE ISSUANCE OF THE BONDS; AND DECLARING AN EMERGENCY
Mr. Cumston noted this came out of Finance with a 2-1 recommendation for approval, motion to suspend, Mr. Osborn 2nd. Roll Call: Ayes all, motion carried.
Mr. Cumston moved to adopt, Mr. Osborn 2nd. Mrs. Gustin asked if we waited, will there be a problem with this. Auditor Carr said she doesn’t feel that there will be a problem. Mr. Daniels spoke of the 1.5 interest rates on the annual notes. If you could borrow money at that rate, you’d make money every year with the valuated dollar. To roll this over to Bonds, you’ll be paying a rate at 3.74%. If you believe bond rates will escalate in the next few years, and lock in the rate now, it has some fidelity. I would rather do extenuate this for another year or another 2 years and look at the picture. This will affect our cash flow now. In another 2 years we could change our A3 rating into an A2 or an A1, maybe next year or the next after. Auditor Carr said we don’t have to pay an interest or principal payment this year. Mr. Osborn said Mr. Daniels makes some valid points. Some other factors too, bond rate could be better, our bond rating could get worse. There is no right or wrong decision. I’m in favor in passing this along. Mr. Ratliff said in the first paragraph 9,400,000 in the caption not to exceed 10 mill. What is that 1 mill dollars. It is the notes that we currently have - engineering and design for next year and the cost of the issuance with the Bond Council. Mrs. Chaffin said when you have a bond with all of these projects, we are coupling everything together. The first year of our interest is going to be @ 2% on Bonds. The projects that we have are: Aquatic Center; Blain Ave; Columbia St.; Milburn, Meadows; Oak St.; Robinson, Center St.; Marion Plaza, Landfill; LaTourette; Greenwood and Orchid. So the 9.4 is all of the above. The 750,000 is the new rolling into bonds. Those will be projects for the following years for CSO’s. Mr. Ratliff said they should still be listed in there. Mrs. Chaffin said they are not listed in a Bond legislation, but a Note legislation. Mr. Ratliff said on page 1 it states 9.4 mill – we have 750,000.00, I think that they need to be added. Mrs. Chaffin said we could ask Bond Council to add those projects. Mr. Ratliff said OK. Mrs. Gustin asked we can postpone this.
Mr. Cumston said we had Bond Council here tonight, which we paid for that service. These are all Enterprise funds. This is the money that we use that the Enterprise pays for. It saves us money up front. We are guaranteed the interest rate of 3.74 %. I don’t think it will be much lower. No payments until the end of 2013. It doesn’t impact our rates. It becomes a really nice package. Mr. Ratliff said it looks to me like Mr. Grassbaugh forgot something. I have no problem passing this. Maybe we can have the others at the next meeting. Mrs. Chaffin said absolutely. Mrs. Gustin asked if this will impact our cash flow. Mrs. Chaffin said it would help our cash flow. We need to start paying this. In the longer we string it over time; we only paid interest this time, let’s say the notes sell for 2.45%, which is higher than what the bond starts out at. We are at the point it will cost more money, then it will cost cash flow. No magic wand or crystal ball to look into. This package makes sense at the time. We did look at rolling the notes first. Mr. Schaber asked about a time table when the WWTP gets paid off. Mrs. Chaffin supplied him one. Mr. Daniels said once you created a bond issuance, you can’t cash that out. I won’t guarantee it if you vote this down, it won’t save us money, you don’t know. Mrs. Gustin said that nothing will move until 2014, I heard. Maybe we should stay at our current pattern. Mrs. Chaffin said the Note interest rate does move. The bond market may not move, I don’t know. We are going to up at our rating on our notes, until they are priced. They give you the best guess – was 2.25%. Mr. Daniels said 1.75, Mrs. Gustin said that also.
Mr. Cumston said cash flow – these are enterprise funds. If we roll up to Notes, it's still going to make the interest payment this year. Mr. Ratliff mentioned about Section C – bond shall not exceed 6% per year. Are we locked into some bond @ 6%? Mrs. Chaffin said it says “shall not exceed that”. They always put that down. They have the authority to do this; it’s a typical legislation language. I really can’t answer for Bond Council. You should request that from Bond Council. Mr. Cumston said 5/3 Bank was also here with Bond Council.
Auditor Carr said that we were looking at the Notes, prior to the bonds. We don’t have a lot of cash liquid right now. I just don’t know how many buyers there will be. You have to more liquid when you go out to market. Notes are a lot easier than Bonds. You have to remember, when they market these bonds, it is tied to storm water ordinances. On the Notes we don’t have an opportunity to say that. Mr. Ratliff said what we are voting on; I want to know what we are voting on. Cash flow and liquidity right now play on this. In the end it does end up as a General Fund obligation. Mr. Schaber asked about the monies that will be paid off, does the Hospital Lease still get thrown into this 10.3 million dollars. Mrs. Carr said they are all under one. As soon as the Aquatic Center is paid off, the WWTP will be paid off at the same time.
Roll call for adoption: YEAS: Mr. Cumston, Mr. Ratliff, Mr. Thomas, Mrs. Blevins, Mr. Smith, Mr. Osborn, Mrs. Gustin, Mr. Schaber; NAYS: Mr. Daniels. ORDINANCE 2012-45 IS ADOPTED

Matters Not on the Agenda
Mr. Schaber asked about the old Drypers building. Mr. Robbins said there is another pre-trial coming up and that’s best I can answer, it’s in the criminal side now.
Mrs. Jeannie Brewer spoke on the Aquatic Center; gave reasons why the center is not opened yet. Health Dept.; Fire Inspection; tubes for the lazy river coming in; Sheppard’s hook on their way; she spoke on the dry runs they will have. Large freezer needs repair. People coming in and the training for the pumps will be here tomorrow. I don’t want to give out a date for opening. Mr. Ratliff wanted to hold the contractor responsible for opening late. Mrs. Brewer said that is in the hands of the law director.

COMMITTEES

Finance 6/4 @ 6:30
Airport, Lands & Buildings 6/4 @ 6:45 HVAC System for City Hall
Regional Planning 6/27 @ 7:00 County Bldg.
Streets & Sewers 6/4 @ 6:40 S&B S. Prospect Sewer Lining

8:50 PM Mr. Daniels called an Executive Session for a personnel matter.
9:12 PM out of Executive Session.

With no further business to come before council, President Edwards adjourned the meeting.


______________________________ Dave Edwards President of Council

_________________________
Clerk of Council