Glass City Jungle

Today’s agenda review had six council members present when it began, McNamara, Sarantou Sobczak Waniewski Webb and Craig, Ashford arrived shortly after it started. This is long, I know, it ended up being over 4000 words so the titles are in bold for those of you looking for something specific it is not a full transcript.

Jeanette Morell from Development Department – all below were listed as SEP no members present had questions

Sale of City-owned surplus land at 219 Wamba to Larry Jamra, $750
Landbanking Sale – 6 parcels on Baker, Locust, E and Moore to LDC for NSNW new housing, $900
Landbanking Sale – 4 parcels on New York and Chase to NorthRiver for NSNW new housing, $600
Landbanking Sale – 610 & 612 Humboldt to Teala Young for yard expansion, $300

Webb had a referral related to a County wide land banking project and wanted to know what the hindrances are.

Lease Bays 3 & 4 of Erie St. Market to LBDG LLC, 3 years + 2 options, $5,500/mo. – $7,000/mo.

Dave Amstutz who is currently laid off asked for permission to present this to Council since he had been involved with the project. The summary part of the ordinance is shared below:

Authorizing the Mayor to enter into a real property lease agreement with LBDG LLC for certain city-owned property commonly known as Bays 3 & 4 of the Erie Street Market located at 201 S. Erie Street, Toledo, Ohio; waiving competitive bidding; making certain findings with respect thereto; authorizing acceptance and deposit of rents; and declaring an emergency.

SUMMARY & BACKGROUND:
LBDG LLC wishes to formalize the arrangement with the City for lease of Bays 3 & 4 of the Erie Street Market. This Ordinance seeks authorization for the Mayor to enter into a lease agreement with LBDG LLC for Bays 3 & 4 of the Erie Street Market for entertainment purposes and food and beverage sales and related programs. The lease shall have an initial 3 year term with LBDG paying an escalating rental fee beginning at $5,500, payable monthly, for the first six (6) months; $6,000 for each of the second six (6) months, $6,500 per month during the second year, and $7,000 per month during the third year. LBDG LLC shall have the option for two (2) one-year renewals, with rental at $7,000 per month times Consumer Price Index for each renewal. Lease agreement will specify other terms and conditions deemed necessary and appropriate by the Mayor, Director of Law and Director of Development.

Amstutz said this was an important project and there are a number of advantages to putting the bays together and to leasing them out. He felt having a proven operator such as Mr. Salloukh there would benefit it, he urges passage as quickly as possible. McNamara said that Collins requested a hearing on this. Waniewski said he can wait for the committee but he wanted to know if the City would still be picking up the utilities? Amstutz said the city would and it cost $250,000 for utilities for the whole facility, that it wouldn’t pick up the utilities but it would make progress towards helping for the utilities because these two bays are labor intensive. Waniewski asked for the status of Tetra Tech, they have until May 28th to decide, Reinbolt said they are in discussion with Dillin with a joint venture, legislation is being prepared that would extend their agreement for an additional 120 days. Amstutz said that Tetra Tech is in support of Salloukh leasing the bays. Sarantou wanted to know how the rental lease fee was arrived at, Amstutz said he made various proposals including you take the whole thing for a buck if you pay utilities, they did an RFP, and they had two responses. Sarantou wanted a breakdown of utility costs, Don Monroe said they are not separately metered so it would be difficult to figure out. Sarantou expressed that since Amstutz had moved into Toledo for this job and had done an excellent job he hoped that the city would find a position for him. Sobczak wanted this in economic development, so did Sarantou, not in Collins’ Law Committee, who he said has made “great theater out of bashing the Erie Street Market” and further delay would only serve to jeopardize to do what this council suggested we do and that is get out of the business of running ESM. McNamara said Council can debate which committee at the next Council meeting. Webb wanted to know how we had two responses to an RFP and neither one ended up with the lease, she wanted to know how we made a deal with someone that we did not receive an RFP from. Amstutz said they determined neither met their criteria so they rejected them, then he and in part Don Monroe continued some discussion he couldn’t remember the name of either, something MoJo and Carolyn Smithers but he didn’t remember the name of her company, then they both dropped out, what Webb wanted to know why Salloukh was in the discussion if he didn’t participate in the RFP. Webb said we have a process, and she wants to know how this tracks that. Amstutz said once the RFP’s are rejected then they can work towards striking an agreement, Webb said if the end agreement is different than the RFP then that’s a concern. Craig said he’d like a copy of the RFP and a copy of the proposal.

Amend TMC Sec. 1307.11 to increase special inspection or special service from $35 to $50 per hour

Chris Zervos from Inspection – McNamara gave a short review of the hearing that was held yesterday on the Inspection (will be transcribed later) 7 people were laid off from inspection, if an inspection is not done in five days the city loses the right to inspect the work. He asked Kattie Bond to come up with a proposal that would satisfy the Finance Department to bring some of these people back to work, revenue enhancements of $107,000 are being proposed, currently the city only has one plumbing inspector after the lay offs. The Building Trades do not support increasing journeyman fees, an increase in the special permit fees and no longer waiving fees for festivals and non-profit events.

Craig asked if it was true that they were within $50,000 of breaking even, he confirmed they were within $51,000. Craig wanted to know what the expenditures were, it was over a million dollars, and they faced a 33% reduction in the number of inspectors, he’s not getting it, why would you cut people who are bringing in 95% of their salary. Craig said this looks like arm twisting by the administration to come up with new fees to restore services to the people who are actually using these services, he felt this was an irresponsible decision from the administration, you don’t cut revenue earning sources to save money. Craig said we have a tough enough job cutting this budget to expect people to pay higher fees for this is not something he supports, it’s ill thought out and he’s not going to support it. McNamara said there are a lot of ill thought things coming from 22 and that the layoffs happened.

Zervos said 81-09 (the above) would increase the hourly rate for special services which means inspections done after hours or on weekends from $35.00 to $50.00 per hour. McNamara asked how many inspectors they currently have left, Zervos said 2 heating & refrigeration 2 electrical and 1 plumbing and one and a half building inspectors. McNamara said they have waived 14 inspection fees for festivals so far and these are difficult times and they have to do what they think is the best for the citizens of Toledo. Sarantou said $16,000 in festival waivers was listed in the Administration’s numbers, the pending legislation states $8,000, $32,000 was waived in total fees in 2008 for waivers for festivals. The Clerk of Courts stated the $8,000 number came from a report when Council had informally discussed ending the festival waivers earlier in the year. He said most of the $32,000 came from CDC’s not festivals. Sarantou asked about fees being waived for CDC’s and there appears to be some confusion as to why the CDC’s were not paying building inspection fees. Webb said she recognizes where we are at, but there is an expectation from the community that these fees will be waived, she wanted to know if they could break that down per council district for the past few years so they can see how that is broken up. Craig said most the money from Birmingham and Lagrange that money goes back into the community, they do things to keep the area clean, he said they more than get that back from what a lot of these festivals bring into the community and give back to the community. He referenced the DragonBoat festival, they put thousands of dollars into education, with maybe 700 in festival waivers if they are talking about less than ten thousand dollars and getting back so much more than than he feels we are dropping dollars to pick up dimes.

McNamara said the city is paying for the inspectors to do that, is it a safety issue, so the taxpayers are subsidizing this, Craig said how can McNamara raise safety as an issue when they are only getting half the inspectors back. McNamara said they could stop doing the inspections, but that would create a safety issue, Craig agreed the inspections should continue but didn’t want the fees to stop being waived, McNamara stated that if Craig has a better idea of how to come up with the funding to bring more inspectors back, he should present it. McNamara said this is coming out of the general fund, that the public is paying for it, and over the years because it’s been politically popular to approve them. Craig said that the Mayor is making council do things that is unpopular so it’s beyond him why McNamara would support this to nickel and dime 50 community organizations so that the Mayor could look good. McNamara said he wasn’t doing this for that reason, he resented that implication that he was trying to save some of the building inspector jobs since they had been cut.

Contracts for electricity for residential and small commercial Aggregation Program and City facilities

Leslie Kovacik from Utilities Administration she said last week there was an auction for electrical prices that First Energy was no longer the main company, she felt the atmosphere is ripe to find better prices for residential and city services that would save money below the tariff price. It authorizes up to three contracts, she asked for it to be passed next week so that savings could begin savings July 1 instead of August 1. Waniewski asked if all residents would be able to pursue lower prices, Kovacik said anyone who is not already with an agregrated customer, they are brokering on behalf of those who are First Energy customers, unless they opt out and want to stay with First Energy. A mailer would go out and people would have to return the card within 21 days if they want to opt out. (No one asked about low income customers and the PIP plan) Craig asked why only mailers were going to those who had First Energy Kovacik explained it’s against the law for them to contact those who already went to an outside company for electricity. Sarantou asked how many customers in Lucas County, she said there were 120,000 residential and 23,000 commercial. Sarantou asked what the difference was from the auction and what would be presented, she said residents would pay more because transmission fees need to be included, so if someone bids below 6.6 cents which would be the bottom auction price. Sarantou asked why between 24 and 48 months, she said she wanted to have flexibility if someone offered a good deal for a longer time frame. (Again no one asked about PIP because it could impact people since it’s not clear if the new companies would have to honor those payment arrangements or not.) And they made this SEP…

Expenditure to Taylor Excavating for storm sewer repair at 747 N. Detroit, $22,136 Storm Water Fund – SEP
Resolution – Street Lighting – Amherst Dr. from Dartmouth Dr. to A.W. Trail – SEP
Appropriation for upgrading Hansen Asset Mgmt System for Dept of Public Utilities,$300,000 W&S Rpl – SEP

Tom Kroma said the last item was a needed software/computer upgrade for Water and Sewer as well as Engineering and Collins Park

Appropriation for major street signalization and Arena 2-way streets for Transportation, $325,000 CIP – First Reading

Ashford asked what the budget was for 2009 – it was $200,000 was for one way and the arena was $125,000, he asked for a list of the streets – Huron between Washington & Madison, Jefferson to Summit, and if things go well Madison between St. Clair & Michigan. He asked for a referral on that.

Appropriation for 10 mowers, 1 tractor and 6 trailers for Public Lands Maint,$201,500 2007 & 2008 CIP

Denny Garvin from Parks & Recreation money would come from parks money unappropriated from 2007 & 2008 and the last equipment was purchased in 2006. He stated the equipment was badly needed, especially the trailers. Webb asked if this was because the Mayor damaged equipment when he cut grass over the weekend, Webb said she saw him on CNN cutting grass. She stated she and McNamara have proposed the close out money for residential streets, she asked if the money Garvin proposed was on their list, the Clerk of Council replied it was, she asked for first reading so they could see where that would leave them. Garvin said he made it clear that these purchases needed to be made, he pointed out that he had just gotten a call from Webb today about citizens asking about a mowing schedule and that they needed this equipment they had cannibalized everything they had and without this new equipment it would be very hard to perform the mowing needed to be done. Webb said she understands but they are still waiting from the administration on their proposal as it relates to the whole 6 million dollars, if this money is spent then that 201,500 would have to come from other sources. McNamara stated he too would like the administration to provide them with the information, that since he recognized they needed the mowing equipment they may have to amend their street CIP legislation. Sarantou said Ms. Gabriel told him the CIP information would be in their packets this week and it was not. Sarantou asked Garvin if not getting this equipment would stop him from cutting, that even if council votes it’s going to take 6 weeks to get the new equipment, Sarantou asked if they explored leasing and Garvin said they were unable to lease mowers. Sarantou asked if the city liable for damages if an elected official had a problem, Sarantou asked for an opinion from the Law Director since Garvin said he didn’t know that. Sarantou asked the lifespan, Garvin said 3 years but they’d made theirs last longer. Ashford said they spent $210,000 in 2006 he asked the difference, Garvin said they purchased 10 mowers and two tractors, Ashford asked what they spent money on last year, Garvin said they approved two tractors that were over 10 years old broke, one burned and one had a meltdown. Ashford asked who used this equipment, Garvin said it’s for parks and blvds no cemeteries, that’s separate equipment. Ashford then asked why we were ordering so late, Garvin said he didn’t have any money left in his budget, Ashford pointed out he was using money from 2007 & 2008, Garvin said they could have come in earlier, he asked about maintenance costs, Garvin did not know but he has three people that work on repairing the lighter equipment and the heavier equipment goes to Fleet. Ashford asked if Local 7 signed off, Garvin said they don’t sign off on buying equipment. Ashford asked about the Lott Industry contract, Garvin said they have Lott Industries helping out at the cemeteries now, they provide the and personnel, equipment and all they do is mow, last year they worked at the smaller cemeteries and they wanted to use them for all five and then free up workers and equipment for parks and blvds. Ashford asked about the contract, when it was approved? Garvin said last year with a one year renewal, Ashford said that’s why he’s against one year renewals. No one from Local 7 was present, Ashford asked for a first reading and may move it up to SEP he wants clarification from Local 7. Sarantou asked if Local 7 signed off last year and Garvin said they did.

Establish and implement fire service fees for Fire & Rescue Operations – SEP
John Kromenacker from Fire – he said two small changes in section 3 they changed a term and in section 7 changed wording there.

Webb she still feels there should be a public hearing on this, that there be a Committee of the Whole meeting on this. Sobczak said he was hoping they wouldn’t get into this, he said the budgetary amount was passed by the budget in March. Since that time it’s been discussed and this was voted on 6 for – 4 against it failed, after the vote some of the council members who voted no some said they would reconsider this. He knows that there has been much ballyhoo in the media and special interest whether it’s big insurance, whatever, he believes in the soft billing promise. He said it can’t be worded that it would be only soft billing, he was told by State Farm that this would not affect his deductible, all those words like double taxing that don’t really mean anything have been tossed around and if there is low hanging fruit out there, that we need to put people back to work, if this is low hanging fruit that is out there we should get it, it’s not going to raise your insurance, this is not an issue we need to have a hearing on. He asked she withdraw her request and do what Council unanimously approved in March. Sarantou said he checked with five different companies, each of them confirmed it’s a part of the policy for city of Toledo residents and they said this would not raise rates, what raises rates is thousands of dollars of claims, not a $500.00 fee, he said these five companies cover a majority of residential and commercial customers. Webb said that she understands Sobczak and Sarantou feel they did their homework that she would like to hear from the community, she stands for her request on a Committee of the Whole on this topic.

Agreement with Intermediary Insurance Co. for stop loss healthcare insurance, 1 yr + opts, $116,280 – SEP

Calvin Brown from Human Resources – the City is self insured so they have to have a stop loss policy in place they went out and sought bids, the Health Care Cost Containment Committee, excluding both firefighters union all voted. The rate is lower than it was in 2006, normally rates increase.

Agreement with HealthSCOPE Benefits for healthcare Third Party Administrator,3 yrs + opts,$329,256

Excluding firefighters and teamsters – they received 8 responses and brought in three companies for interviews and decided to continue their contract with the provider. Since they are self insured they have to have a third party administrator, this recommendation is a little over 1,000 less than three years ago.

Sarantou asked when does the self insured come up for renewal Brown said there is no overall policy since we are self insured, they feel that the self insured route is the best way to go. Sarantou asked when was the last time the City compared rates versus a fully insured package versus self insured. Sarantou said for 7 years he’s asked the adminstration to get those bids and to get that information so that the City could compare being self insured versus going with Aetna or a Medical Mutual. Sarantou asked what in the hell are we afraid of, we are spending 28 to 30 million dollars a year to be self insured, he can’t understand why they can’t get a comparison in costs to see if we are gaining or losing. Sarantou said many of these companies are located in the City of Toledo. Sarantou said the County has a program, Brown said the County is self insured, Sarantou said he is a licensed insurance agent and that companies are happy to provide a price. Brown said when the issue of putting together a plan for an RFP because it’s an involved process that includes proprietary information because the administration and the unions have decided to stay with being self insured. Sarantou said it’s long over do and Dr. King has said it’s not cost effective, Sarantou said he wants to know what the costs are, then they’ll be able to answer taxpayers if they ask if there is something that can be done to reduce those costs. Sarantou said it is a very poor business practice on the part of this adminstration and the last administration and that’s what we pay you (meaning Brown’s salary) for. Ashford asked where the company was located – Brown said Columbus. Ashford asked about the extension of a year Brown said they could extend it but this new contract offers a lower rate.

Agreement with Delta Dental for employee dental insurance, 3 years + options, $104,530 – SEP

This proposal was not the lowest but it was the best, this is the same provider they had before. The cost is about $500 less than last time.

Contract with Hull & Assoc for environmental control & monitoring at Hoffman Rd Landfill,$309,970 GF

Julian Highsmith from Solid Waste he said this is required by the Ohio EPA. Ashford said we need to pass this but he wanted clarification on the time frame of the contract.

Expenditure for 4 dual cart tippers installed on refuse trucks for automated pilot program,$31,940Trust

He said they were only supposed to have the automated trucks for three months and they used them for a year, so they know needed the tippers as a back up until they get new trucks.

Resolution on Glass City Academy SEP

- this was not on the Agenda it was a walk on item by Waniewski to have Council pass a resolution urging the Planning Commission to review their decision on the SUP that was granted to the Knight Academy. Waniewski said it’s a different school now and the residents believe this constitutes a different product for that building and while the SUP is tied to the building/land. Since Knight Academy’s plan was abandoned that it has to start again, Waniewski thinks this should be considered abandoned and he feels this is a new use. Ashford said he wanted to make it perfectly clear he voted against it, because of why they are arguing today that there is always a chance that the permit holder may not take that facility then it’s left with the location. He said Waniewski said he should have known this and he wants to know what Waniewski means by a different product. Waniewski said it was a junior high and that this school would be high school for drop out. Ashford asked what was the concern with those young folks going back to school to better their lives. Waniewski stated he’s not against them being educated that the residents feel they don’t have due process. Ashford said he is trying to get around the process, Waniewski feels that the abandonment and the changes fits the criteria for an SUP to be reopoened, he said the ORC said residents have a right to challenge that ruling, he said it’s nothing against the school, Ashford asked about Glass City’s history as far as police calls/criminal history does it have at it’s present location, since they are concerned about non-traditional students, have they had a history of problems. Waniewski said he doesn’t want Ashford to put words in his mouth, he’s not against the product he’s trying to support the process. Waniewski said there were two incidents a concealed weapon and a stolen laptop, he made a comparison to Phoneix academy had three incidents, criminal trespassing, petty theft, disorderly conduct. Ashford said it was Waniewski stating “different product” but based on the fact that it was on the books and district Council persons should be aware of the rules, somewhere down the road the ball was dropped and now Waniewski wants to change the rules.

Second reading items:

Establishing a Community Entertainment District(CED) in the Arena area(Adams,Summit,Monroe,Erie)
Close/reduce various CIP projects and appropriate for 2009 Residential Resurfacing Program

McNamara stated that he wanted to be clear that they have not defined how this money would be split, that Webb has stated it would be divided equally, he’s not sure that he agrees with it being equally split, he thinks that’s something that they can take a look at once they pass it. Webb wanted to know how he proposes to do that. McNamara stated they could use the current system that ranks streets as far as need, that the legislation does not state that the money would be divided equally, he just wanted to make that clear.

Expenditure to TMACOG for 2009 membership fee, $63,800 General Fund
Festival Fees Waiver and streets closure – Lagrange Street Polish Festival

A new one was just submitted that was agreed that would go on the agenda. Webb said what is frustrating for her is the timing aspect, if you have one later in the summer you aren’t going to turn yours in until then, so they are basically unfairly treating some festivals while allowing others to have a waiver that there is no equity. McNamara responded that he’s sure those from the inspection department felt their layoffs were unfair as well and that this was the proposal put forward by Kattie Bond to try to restore some of those positions.

Recognizing the Song for Toledo for the year resolution by Waniewski was one of the judges the winner will be announced this week, on Wednesday – at the main library at 3:00 p.m. Webb said Kyle White sang at her birthday party so she said she voted for her and was biased.