November 24, 2014 Summary

MARION CITY COUNCIL MEETING

 

 

City Hall – Council Chambers on November 24, 2014, 7:30 PM

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

 

PRAYER LED BY PASTOR TONEY OF FAMILY LIVE CHURCH

 

PLEDGE OF ALLEGIANCE

 

Summary of Proceedings from November 10, 2014; Mr. Cumston moved, Mr. Thomas 2nd. Roll Call: Ayes all, motion carried, Summary of Proceedings is accepted.

 

OLD BUSINESS:

 

ORDINANCE 2014-73:

ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE ALL DOCUMENTS NECESSARY TO SELL CERTAIN REAL PROPERTY OWNED BY THE CITY AND DETERMINED NOT TO BE NEEDED FOR ANY MUNICIPAL PURPOSE AND DECLARING AN EMERGENCY, as amended

            Mr. Ratliff said this came out of Airports, Lands and Buildings with a 3-0 recommendation to send onto Council after a lot of discussion, it was amended.  I like to make the motion to suspend, Mr. Cumston 2nd. Roll Call: Ayes all, motion carried.

            Mr. Ratliff moved to adopt, Mr. Osborn 2nd. Roll Call: Ayes all, motion carried. ORDINANCE 2014-73 IS ADOPTED

 

NEW  BUSINESS:

 

ORDINANCE 2014-77:

ORDINANCE amending marion city code CHAPTER 1381 “DEMOLITION OF STRUCTURES” TO PROVIDE FOR NECESSARY UPDATES AND TO REQUIRE A PERFORMANCE GUARANTEE FOR CERTAIN STRUCTURES IN EXCESS OF 7500 SQUARE FEET

          Mr. Daniels said this came out of Legislation & Codes with a 2-0 recommendation for approval to send onto Council. I’ll ask for a first reading. I received some comments from the public about this, instead of 10,000.00 performance guarantee; why not just get a performance bond for the cost of the demolition. 10,000.00 for a large structure wouldn’t begin to finish that demolition. We need to give it more thought. We are on the right track.

          Mr. Osborn said I do endorse Mr. Daniels statement. The City does not do demolition projects. 10,000 does not do us any good. Mr. Cumston asked Tom Robbins – would a performance bond alleviate the situation? Mr. Robbins said I can’t answer that question. Performance Bond is based on the final bid on a construction project. We don’t know what that bid would cost.

          Mr. Mark Russell said if this ordinance was in place before 333 Joseph St., would it make a difference? We have mechanisms in place to prevent it. This would not have made a difference with AHP. I believe it will serve its intended purpose 9 out of 10 times. Mr. Thomas asked for the explanation of a performance bond. Mr. Russell said a performance bond is procured usually in at an insurance agency. Purchase a guarantee payment in case there is a default; Josh said that is usually 150.00. What happens many times in Gov’t. projects, they ask the city to accept and hold a check in the amount in some cases. Then the money is returned to them after the project is done. Mr. Thomas said it would be more than 10,000 to complete. Is there a concern with that, should we have something in that saying when you come in for a demolition permit, they have to show proof of how much the demolition would cost, then that would be the cost of the performance bond.  Mr. Russell said give it a try and see if it works, if not we can come back to it later.

          Mr. Thomas said I’m not sure if 10,000 is 150.00, can that be relative what it would cost to a 2 million performance bond. Mr. Shoup said I have seen performance bonds in the neighborhood of 4-5,000.00, but they lump it back into the project. Mr. Shoup said it’s a different animal. Bond on a construction bond is pretty close to precise figures; we narrow it down. Something like Joseph St, it’s a lot of unknowns.

          Mr. Daniels said $2.50 a sq. ft for a 2-story home. A tri-plex apartment building, EPA with jurisdiction with asbestos finding of 60-70,000. I don’t think you can create a bond for the entire demolition. $2.50 per square foot, with a maximum, I think you will be able what everyone wants to do. Keep it reasonable. Creating enough of an incentive for them.  99% of these contractors will do the work, there’s always one that gives us a bad name. You create a performance bond and you give it a specific value with enough of an incentive to complete it, without us holding the bag.

          Performance Guarantee – 10,000 bond – pay about 150.00 – non refundable. But if you don’t complete the work, the bonding company will stand in your place and pay that 10,000 on your behalf, then come after you for it. Performance Guarantee encompasses everything. Let the City hold the bond; write a check and have the city hold on to it; get a nonrecourse note from bank. The bank holds that in escrow until the city releases the letter. Those don’t pull dollars out of your pocket, but still ensure your position.

          Mr. Cumston said I like the explanation, there isn’t 100% fall safe. We could put some latches in place to catch them. There are a lot of old buildings we may be dealing with in the near future. If the EPA did not clean up that site, there is no way we had 2.5 million dollars to clean that up.

            Mr. Daniels said amend it by:  “in amounts in excess of 7500 sq. ft. the bond should be $2.50 per sq foot or a maximum bond in the amount of 100,000 or up to 100,000 for a performance bond”.

          Mr. Thomas 2nd.

          Mr. Sulu Kelley said I would also suggest a minimum amount. Mr. Osborn said it would be 10,000.00. I like this as well. I’m quite certain that when we did the Freshman building, we had a performance bond on it; we felt very comfortable. I would support this. Mr. Ratliff said I like this too. You have to be a reputable contractor to begin with. This doesn’t work 100% but we are getting close.

          Roll call for amendment: Ayes all, motion carried.                  ORDINANCE 2014-77 IS AMENDED, WITH ITS FIRST READING.

 

ORDINANCE 2014-76

ORDINANCE AMENDING ORDINANCE 1999-90 BY AMENDING EXHIBIT B ATTACHED THERETO SAID PRIOR ORDINANCE HAVING "DECLARED IMPROVEMENTS TO CERTAIN PARCELS OF REAL PROPERTY TO BE A PUBLIC PURPOSE, DESCRIBING THE PUBLIC INFRASTRUCTURE IMPROVEMENTS TO BE MADE TO BENEFIT THOSE PARCELS, REQUIRING THE OWNERS THEREOF TO MAKE SERVICE PAYMENTS IN LIEU OF TAXES AND ALL OTHER NECESSARY ACTIONS RELATED THERETO ", AND DECLARING AN EMERGENCY

Mr. Cumston noted that this came out of Finance with a 3-0 recommendation for approval, This will allow retirement debt on TIF #3; motion to suspend, Mr. Osborn 2nd. Roll call: Ayes all, motion carried.

Mr. Cumston moved to adopt, Mr. Thomas 2nd. Roll call: Ayes all, motion carried. ORDINANCE 2014-76 IS ADOPTED

 

ORDINANCE 2015-01

ORDINANCE TO MAKE APPROPRIATIONS FOR CURRENT EXPENSES AND OTHER EXPENDITURES OF THE CITY OF MARION, STATE OF OHIO, DURING THE FISCAL YEAR ENDING DECEMBER 31, 2015

Mr. Cumston noted that this came out of Finance with a 3-0 recommendation for approval, we are asking for a 1st reading this evening. Mr. Ratliff said this is the 10th budget I received since I’ve been here. This has been the best budget since I’ve been on board; Thank you. Mayor Schertzer said that Auditor Carr is responsible for the packet for you, with the cover letter. I also want to recognize the department heads. It’s been a team effort. Mr. Cumston said looking at projections, when you are trying to plan these out and set money aside, give back to our safety sources as well, it’s difficult to do. I think everyone has done a great job.  ORDINANCE 2015-01 HAS HAD ITS FIRST READING

 

RESOLUTION 2014-22

PICK–UP RESOLUTION - EXISTING PICK–UP PLAN - RESTATED RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MARION OHIO

Mr. Cumston said this is the pickup plan that needs to be changed. Mr. Robbins said this is a result of the fact finders; this is a piece of that. This is the first that addresses the pension pick up. We need to get this thing rolling and get it to the pension system.

Mr. Cumston said we need to waive rule 56; Mr. Thomas 2nd. Roll Call: Ayes all, motion carried. Rule 56 is waived.

Mr. Cumston moved to suspend, Mr. Osborn 2nd. Roll call: Ayes all, motion carried.

Mr. Cumston moved to adopt, Mr. Thomas 2nd. Roll Call: Ayes all, motion carried. RESOLUTION 2014-22 IS ADOPTED

 

Matters not on the Agenda

 

COMMITTEE DATES:

 

Finance                       12/1    @ 6:30

Mr. Ratliff asked Clerk to get in touch with CANDO and Downtown for their 4th Quarter review

Legislation Codes     12/1    @ 6:40

Regional Planning      12/3    @ 7:00 pm County Bldg.

Streets & Sewers      12/1    @ 6:50

Zoning  & Annex        12/1    @ 7:00

Mr. Thomas asked Mr. Robbins about the Traffic Report for Fairpark. Mr. Robbins said he will follow up on it.

 

            With no further business to come before Council, Mr. Edwards adjourned the meeting.

 

                                                                        ____________________________                                                                                  Dave Edwards                                                                                                                                               President of Council

_________________________   

Clerk of Council