President of Council Kathy McNear called Council to order on May 17, 2000, at 7:00 p.m.

The governmental body and those in attendance recited the pledge of allegiance. Mr. Knox gave the invocation.

Mr. Knox took roll call. Present were Council members Danbury, Galster, Pollitt, Squires, Vanover, Wilson and McNear.

The minutes of May 3, 2000 were approved with seven affirmative votes.

RESOLUTION R9-2000 "CONGRATULATING THE SPRINGDALE BLUE DEVILS 6TH GRADE GIRLS BASKETBALL TEAM"

Mr. Vanover made a motion to adopt and Mr. Danbury seconded.

Mr. Vanover said, girls, you are definitely to be congratulated. Iíve seen Mr. Nance in action and there arenít many NBA coaches that have anything over him. He is an outstanding individual leading you. You wonít remember this now but somewhere down the road youíll appreciate what youíve had these three seasons. As you get older they get more special. Iíd be remiss in not thanking mom and dad for getting them there.

Mr. Danbury said I want to congratulate everybody. I recognize some names so weíve seen them before and hopefully we will continue.

Mayor Webster presented the resolutions.

RESOLUTION R10-2000 "HONORING LT. DAVID L. KOONCE ON HIS RETIREMENT AFTER 26 YEARS OF SERVICE TO THE CITY OF SPRINGDALE POLICE DEPARTMENT"

Mr. Danbury made a motion to adopt and Mr. Wilson seconded.

Mr. Danbury said Iíve been dreading this day for a long time, Dave. Iíve known you for over ten years and youíve definitely been a leader in the department and the community. The thing I like about you and most people notice about you is that you donít fit the image of cops on TV. I think the whole department follows that lead as well. Youíve always been accessible to any resident and Iíve never heard anybody say anything negative about you. You really enjoy helping out the younger guys. In the resolution you are classified as an expert in auto accident investigation. Dave has been valuable in a lot of court cases because he can look at the skid marks and tell how fast someone was going and determine exactly who was at fault. I know that you are very good at. I am sorry to see you go but congratulations on your service to the City.

Mayor Webster said thereís not much I can say that Mr. Danbury and the resolution havenít said but thank you, Lieutenant. I have known you the entire 26 years you have been on the force. As Mr. Danbury indicated, I have heard nothing but compliments from our citizens. I think I read the latest one just a couple of meetings ago where you helped a lady get in a garage. You spoiled us over the years and we came to expect that. You have imparted that on the young people brought onto the force. You will be sorely missed and we wish you many happy years ahead.

Mr. Vanover said Randy and Doyle stole some of my thunder but Iím going to echo one comment that people have come to me with and that is heís just like a regular guy. Heís easy to approach and talk to. There are a lot of departments that would die to have the working relationship that our department has with the citizens of the City. I think itís because of people like you who give us that polish that others want to emulate. Good luck and stay in touch.

Ms. Pollitt said I want to wish you well. I remember the first time I met you. You helped me find my three year old son who got lost on opening day. You kept me very calm. He has helped me find lost bikes and lost kids and I appreciate it very much.

Mr. Galster said a couple of years ago we were looking at the age of our police force and retirements coming up. At first it was a big concern to me until I saw the younger guys come on. I think theyíre a reflection of our older force. The personalities and the qualities you passed on to the younger guys are very evident. Thatís what Iíd like to thank you most for because not only are you leaving after serving 26 years but youíve left us in pretty fine shape.

Mr. Squires said we are going to miss you. You are the personification of professionalism in this police force. Almost all of us have had some dealings with you and it has all been pleasant, professional, courteous and itís been wonderful to work with you.

Mr. Wilson stated you are leaving a legacy behind for others to try to emulate. I wish you well.

Mrs. McNear said we all have a personal story and I have one too. About three years ago we lost my father-in-law unexpectedly so the situation was very chaotic. You did come over and you were a very calming presence and I want to thank you for that. Good luck in your retirement.

Resolution R10-2000 passed with seven affirmative votes.

Mayor Webster presented the resolution to Lieutenant Koonce. Lieutenant Koonce said Iím going to cherish this. Iíve had dealings at one time or another with all of you. I tell you right now Iím leaving Springdale with a good feeling. Iíve watched us hire the new people and Iíve come to know a lot of them real well. Youíre going to be proud of whatís coming up. I appreciate you being proud of me. That does me wonders. Youíre going to continue to be awfully proud of this department and I thank you for that.

Chief Laage stated I donít know who got the best deal here. A lot of us believe the City of Springdale is a fabulous employer. David has reaped a good livelihood and will have a good pension and retirement as a result of his employment here. But I think in this case the City got the best deal because David has been one heck of an employee. As Steve said, his biggest legacy was the training of new personnel. Weíve been scrambling in the last two or three months to try to get some of the new people trained. I went to David two or three months ago and said I need a class in auto accidents, not just local but throughout Hamilton County. Davidís response was weíll do it in the fall. I looked at him and said youíre leaving in May. He said, "no problem, Iíll just come back and do it in the fall." Thatís the type of person he is. We got it in in May and trained about 25 officers throughout Hamilton County. Heís the type of person who comes in when itís required or if heís needed. We just had a severe auto accident that ended up in a fatality a few months ago on Chesterdale. Without hesitation the idea was to call Lieutenant Koonce because we knew if we called him we would have a professional investigation. David came in promptly and completed a very thorough professional investigation. On behalf of all the members of the department and the community, thank you, David.

RESOLUTION R11-2000 "COMMENDING OFFICER FRED ROMANO, SGT. RANDY PIERCE, AND LT. TOM WELLS FOR RECEIVING THE GREATER CINCINNATI POLICE APPRECIATION CONTRIBUTION TO LAW ENFORCEMENT AWARD"

Mr. Vanover made a motion to adopt and Ms. Pollitt seconded.

Mr. Vanover said again I guess we could put dittos. Again, itís a reflection of the class act we are looking to have. We can laugh and joke that we can sleep easy because you guys are out there but thatís the truth. Thereís never been a point in time when Iíve felt hesitant about approaching the guys, in uniform or out. Tom has been involved in the Crime Watch in Heritage Hill and Randy too. I know Officer Romano was jokingly referred to by several people when his card came out, that he was one of our poster boys for the running. When people notice things like that it speaks volumes. Again, I canít say thanks enough.

Mr. Danbury said this really shows how the department does get involved, besides just doing the job coming in after they are retired. A lot of people wouldnít do that. I think thatís what makes the department stand out. I know DARE officers will do things after hours on their own time. I think itís the dedication our employees have. I think it is admirable. Weíre honoring three people and Iím sure there are many honors we could bestow on the other people. I know the City appreciates the extra effort and we stand out in the community.

Mayor Webster read a proclamation in observance of Police Week.

Resolution R11-2000 passed with seven affirmative votes.

Mayor Webster presented the resolution to the officers.

Chief Laage said this has been a long tradition and we are lucky to have a good partner in Tri-County Mall who works well with us every year to pull this off. Every year we get behind on things. What saves us is the number of law enforcement agencies who are just so eager to be here. This is such a draw. We get calls from them asking if we are going to have it again. Itís a positive, positive event. All of the officers love to be over there. Itís a natural positive that we can just talk to the citizens about what we do and why we do it. I think that understanding and communication go a long way to enhance our profession. We didnít do the race this year. We just couldnít compete with the Flying Pig Marathon. Fred has led this race in the three or four years we have done it. We have given a substantial amount of money to the National Police Organization COPS, which is the concern for police survivors. We gave money another year when they upgraded the Cincinnati Police Memorial. The same year we gave money to the Northern Kentucky Police Memorial. Last year we gave money to the newly formed COPS State Chapter. Randy and Tom have coordinated all of the equipment. Last year we had a live FATS arms training citizen. To all of the officers thanks again. You are a credit to your profession.

Mr. Vanover said while I have Chief Laage here, I have heard nothing but positive comments about the sign we had in place at SR 747 and Crescentville. Everybody says they canít believe that sign made that much difference. Unfortunately, I think the memory has worn off and maybe we can get it back in place. My wife was the chief choir person on that and we definitely appreciate it.

COMMITTEE AND OFFICIAL REPORTS

Charter Revision - Committee meeting May 27, 7:00 p.m.

Civil Service Commission - no report

Rules and Laws - no report

Public Relations - no report

Public Health, Safety & Welfare - no report

Public Works - Mr. Wilson reported that on April 25 the 2000 street program bids were opened. The low base bid was $876,866.98. The final engineerís estimate was $871,106. The original budget construction estimate for the 2000 street program was approximately $760,000. Due to this differential we are discussing a portion of the project which can either be non-performed or reduced in quantity. A recommendation was made to Council to award the contract to the low bidder based on the low based bid plus alternates 2 and 3. The contract will be awarded May 17, construction started in June and completed by September 15. On April 25 the 2000 crack seal bids were open. The low bid was $20,115 and the final engineerís estimate was $19,250. The original budget construction estimate was $19,505. A recommendation will be made to Council to award the contract to the low bidder.

Public Utilities - no report

Capital Improvements Ė Mr. Danbury stated the SR 747 grade separation construction drawings are being finalized right now. Once they are developed we will find out what it will cost. The utility relocation will begin in the fall of 2001 with project completion in 2003. The East Kemper Road improvements at SR 747 negotiations have been concluded with the exception of the right-of-way of the Springdale Plaza property. Cinergy has done most of the overhead relocation work and the gas main lines. At this time the City is anticipating awarding the contract at the July 5 meeting. Construction will start in August 2000 and be completed early next year. There are a number of items being worked on at the Community Center; exterior installation finish, painting, hanging drywall, duct work, piping. The new locker rooms are almost complete. The Walnut and Pear Street improvement plans as part of the Springdale Pike Urban Renewal Plan will be reviewed by the City staff by the end of May. Construction will take place next year.

Finance Committee - no report

Planning Commission Ė Mr. Galster said Chi-Chiís requested approval for exterior changes. That was granted 6-0 pending submittal of an acceptable color palette. They were removing some neon to comply with the corridor district. Sofa Express, 11750 Commons Drive final approval was approved 6-0. Concept discussion of a proposed temporary building on Springdale Nazarene Church property was tabled until we get further information from them.

Board of Zoning Appeals - Mr. Squires stated a lady from Park Avenue requested a variance for an eight foot fence. The resident west of her has a lot of cars and is constantly repairing them. The variance was granted. Mr. Okum was instructed to consult with the Administration to find out what is going on at the adjacent residence. If the owner is working on his own cars we probably canít do anything about it, but if he is doing work for profit we have an issue.

Board of Health Ė Ms. Pollitt reported that they looked at the annual report for 1999 and the Springdale Health Department emergency operation plans. Itís a nicely done document. We also looked at a heat wave monitoring program. The Board of Health is putting in place and locating our at-risk citizens for a pilot program so if we do have a problem with heat this summer, we can at least have someone checking on our disabled or elderly residents and we can take care of them in case of a power failure or excessive heat wave. We will not be meeting during the summer unless a special meeting is requested.

O-K-I Ė Mr. Squires said they had their annual meeting April 27. O-K-I has created a management council known as Millcreek Watershed for the purpose of cleaning up the Millcreek.

Mayorís Report Ė Mayor Webster said the City received a plaque from the student athletes of the St. Gabriel Cougars. Several years ago St. Gabeís approached us as they had a dire lack of gym time and we could take care of it, primarily because they needed it at 3 p.m. as soon as school was out. They have used our facilities for several years and for that they have presented us with this plaque. It will hang in the hall of the new Rec Center.

Mayor Webster reported the annual landscaping awards will be coming up in the next few months. Nominations are open now until June 16. Judging will begin June 19 and go through July 2. The winners will be announced July 5 with the presentation of awards on July 19. The City is divided into seven districts and there will be first, second, and third place awards and at least one honorable mention in each of the districts. We will also be giving one overall City award. We have the same winner every year. We may deviate from that this year but we still have to recognize the achievements of that individual.

Mayorís Night In will be held next Wednesday night and then we will be taking the summer off.

Clerk of Council/Finance Director Ė Mr. Knox said Mr. Osborn and I were discussing when to hold the Tax Budget public hearing. We would prefer July 5. Council agreed that was acceptable. Jeff Williams, our Tax Commissioner/Finance Officer is here for the discussion on Ordinance 44.

Administratorís Report Ė Mr. Osborn announced that Sunday, May 21, the Springdale Community Center and the Springdale Police Department are sponsoring a Springdale Bike Safety Program. It will be held at Police Headquarters, 12105 Lawnview Avenue. The purpose is to provide safety inspections to bicycles as well as to provide information to youngsters on the proper rules for operating bicycles and to register them for recovery if they were to be stolen or lost. The first fifty children sixteen and under who register their bikes with the Police Department will receive free bicycle helmets. All the children who register their bicycles will receive free bike locks. In cooperation with the Springdale WalMart Store, two of the lucky registrants will also win a bicycle donated by our local WalMart. I encourage everyone to spread the word and we would like to see this program be as successful as it was last year.

A bid opening was held May 10 for gasoline and diesel fuel. We just concluded a two-year contract where BP Amoco was our supplier. We only received one bid and that was from BP Amoco. The prices compared to existing rates are favorable in terms of delivery costs. Delivery costs have actually gone down. Delivery cost per gallon in 1998 was 2.88 cents per gallon. Itís now reduced to 2.23 cents per gallon for premium. Diesel in 1998 was 6.92 cents and now it is 6.88 cents. We purchase our unleaded gasoline and diesel fuel from the market and the pricing is based on the Oil Pricing Index Service which changes every day. Itís the average cost for the purchase of wholesale gasoline as delivered to the stations in a market area. This way we can do a multi-year bid for gasoline and we are tying ourselves to whatever the market has to be. The only thing that is fixed is the delivery cost per gallon. Just to give you an example in 1998 when we opened the bids premium gas was 63.12 cents. This week when we opened it, it was $1.02 per gallon. It is clearly getting to be a volatile expense again and we feel this is the most effective way of bidding this without having to chase a new amount every time prices rise or fall. We encourage Council to authorize an ordinance at the next meeting authorizing a contract with BP.

Mr. Parham reported this is an annual request I bring to you to enter into the Miami Valley Risk Management Associationís Workers Comp program. Over the last couple of years the programs seem to reflect a savings for our overall group of ten to eleven communities who are a part of the Miami Valley Risk Management Program. We experience savings of 20-25% a year. Over the last three years Springdale has had not good years. However, because we were part of this group rating program we were able to not use Springdaleís rate but instead use the group rate which was much higher, thus allowing us to experience some savings. If you checked your budget for the past three years you would notice that we always budget at the worst case scenario. Over the last two years we were given a refund one year and discounts the last two. We anticipate that that will happen again for the year 2000. Our advantage in participating in this program is when we have a bad year this group will benefit us and allow us to experience savings. If we are out on our own we will suffer tremendously so I request legislation at the next Council meeting to become part of the 2001 program.

Community Center Update Ė Mr. Parham stated as Mr. Danbury mentioned there has been quite a bit of activity at the Community Center. We have a lot of positive things but there are also a number of challenges. Since the walk through we held with the elected officials, a tremendous amount of work has occurred in the gymnasium area. The duct work is all but complete. The duct work has been painted green. Everything that is part of the running track is in except the final surface. The concrete has been poured; the railings are up and painted. The walls have been painted in a number of locations. We have struggled to get the subcontractor in to install the windows. We have threatened the general contractor that we will not pay them. They, in turn, threatened not to pay the sub. As a result, as of yesterday Iím told 95% of the windows are in on the lower level. The gymnasium windows are not in. There are areas that must get the EFIS. Once the EFIS is in they will put the frames in and install the glass. They expect to have the EFIS completed by next Friday. They expect to have the glass in by next Friday. The ultimate goal is to get the floor installed. The floor has to be installed under the right conditions or we will experience a lot of damage. Once the windows come in and are sealed, the electrician has to runs some cables and wires to allow the HVAC contractor to turn the system on. The HVAC contractor will not turn the system on until the windows are sealed and the EFIS is complete. Drywall is in place in a number of locations. The office area is clearly defined. The windows are in and drywall is going up in the computer lab area. There are windows being placed on both the interior and exterior of the building of the equipped exercise area. Drywall is going up in the new meeting rooms. The restrooms are coming along and are scheduled to receive tile in the next couple of weeks. The existing restrooms across from the old office are the only restrooms currently available in the center. The disappointment is that those restrooms are in the construction zone. We have made it very clear that safety has to be a major concern and we will have to change that process. In the pool locker rooms we had a challenge with the tile. Weíve had a challenge with the ballast lighting. The biggest problem we had that has delayed the opening of those locker rooms is the grout in the floor tile. We decided to use a new epoxy grout. That grout grabs the dirt very quickly and it is very hard to get that dirt out. The epoxy in the grout will spread into the new tiles and now the grouted area shows dirt and the tile area shows dirt. We told them we wonít accept those until that is clean. They spent last week as well as this Monday cleaning the tiles and grout. Right now everything has been completed in the pool locker rooms and we are keeping everybody out of there until this Friday. If they are not presentable we will not accept them. If they are presentable we will accept them and limit access to the restrooms in the construction area. Another challenge has been the ball diamonds. We have only been able to use the Tiny Tots t-ballers on field 1 because center field is not level. We have shut that area off and are trying to get the grass to grow. We have told them they have to get these fields up and running. Iím fairly certain we will not get use of that field for our older participants this year for softball and baseball. The plan is to match the new building and old building exterior as close as possible in preparation for opening the pool for Memorial Day weekend. Weíve had them rush in and take care of all things that pertain to the deck area and take care of that wall. The wall should match fairly closely to the new brick on the new building. The pool house was omitted on the original contract and that was added to the project. The HVAC contractor has completed a great deal of their work. Concrete has been laid by the pool concession area. There is a set of stairs to be poured. Martis and Meehan has asked the other primes to look at the opportunity of moving their trailers off-site because they need to begin on the site work. We need to make sure weíre on schedule for the Spirit of Springdale Festival, that we have access, a place for the vendors to enter and exist, safe ingress and egress for the public. That seems to be coming along fairly well.

Mr. Danbury said you said they are going to paint the old building to match the texture and color of the new building. Will they be doing the entire area associated with the pool?

Mr. Parham replied they are going to do the entire existing building.

Mr. Danbury asked, when the trucks move out of the area will we have to resurface the parking lot?

Mr. Parham stated weíve laid some blocks there. Weíve done things to allow individuals to park in that area. They are trying to make preparation to do site work such as installing lights for the parking lot areas and then laying the asphalt.

Mr. Vanover asked what effect will the pool locker rooms not being ready have on opening the pool for Memorial Day?

Mr. Parham said the facility has to pass inspections and we are pushing them to make sure we have those. I donít think we could open the pool without locker room facilities.

Mayor Webster said you said we would not have use of field 1 for this entire season. What impact will that have on the two adult tournaments we have?

Mr. Parham responded these fields were supposed to be seeded back in the fall. They had to remove a lot of rocks after the detention area was installed. Gary Thompson recognized we were having trouble getting the rocks out, getting it to be level and safe for patrons to use so we have not scheduled anything on it for this year. The tournaments have been scheduled on all the other fields.

Mayor Webster replied I have a hard time envisioning that. I know what a scheduling nightmare that is for Gary to accommodate that, especially for the menís tournament. We only have four fields with 32 teams in a double elimination tournament. I canít imagine running that on three fields.

Mr. Squires asked are we still on schedule for opening in the fall?

Mr. Parham said the most recent schedule we have shows a punch list completion date of September 15. I think that gives us plenty of time in the fall. The observer, Mr. Baysor said they are making progress in some areas but some things are just not happening. We are not granting any extensions at this point.

Mr. Squires asked are you open for another elected officials tour?

Mr. Parham responded we could do that on a Saturday or in the evening. If we do it during construction time I have to make sure everyone has a hard hat.

Law Directorís Report - no report

Engineerís Report - no report

COMMUNICATIONS - none

COMMUNICATIONS FROM AUDIENCE

Carlos Martinez, 11813 Mangrove Lane said I have a couple of letters. One is from the Inspections Department requesting me to fix my neighborís fence. I called the department Monday and I havenít heard from them yet. Another letter said the Air Tite sign in my front yard is illegal. I see a whole bunch of them still up. The City is not consistent and does not follow through. There are cars parked out there that do not move for months. He said the police mark the cars; the owners push the cars back three inches. The police check the mark and the owners move the cars up again. At some point it has to be obvious what they are doing. They are not actually moving the vehicle in the street. So somewhere up here itís got to register that somebody is violating something. We complain and complain but it doesnít do any good until we get reprimanded for something thatís not ours. A lot of us donít have money to pay someone to do the work. We have to do it ourselves at our own pace. Iíd like to see the officials be a little bit more responsive to the community and not send somebody a letter to fix it by a certain date and not even know if itís theirs or not. Thereís so many things maybe I just donít want to live here. If this is my fence then I need something from the City telling me itís my fence because itís not on my title.

Mayor Webster said I appreciate your frustration. You are experiencing some of the same frustration that we do in trying to enforce the Building and Housing Code of the City but a couple of things you need to understand. You are not being singled out for the Air Tite window signs. We try to get them taken down but other people do the same thing you said. They leave them up for two weeks and take them down. The inspector comes by and itís gone. He canít cite you to court because itís gone. Three weeks later the sign reappears. Thereís not a whole lot of difference in the sign that goes up and down and the resident who moves his car three or four inches. A lot of the front yard fences you see were up before the code went into effect and were grandfathered. We canít make those people tear those fences down. As far as the inspector not returning your call thereís no excuse for that. I know the one inspector has been out of town for the past few days because I had a call into him on another matter and he did call me later this afternoon.

Mr. Martinez said we entered into a contract with Air Tite Windows to display the sign in our yards. We entered into a contract in good faith without knowing we had an ordinance violation. If I donít display the sign then my contract is no good. If I had had a copy of the ordinance I could have sent it to Air Tite Windows. We didnít know and they apparently didnít know. How come a letter wasnít sent to Air Tite Windows? And I donít want to have to fix a fence that isnít mine. I donít want to be pushed into something that is going to cost me money I canít afford to give out. We do have people in the community who do not have funds to fix their violations. This is why we need to be very tolerant with people and go down and ask them. Maybe itís better if you explain it to them rather than a letter that says you are in violation.

Mr. Danbury said a lot of times people say they donít know the code. Thatís why we have people here, so you can come up and ask. You said you said you couldnít understand what that letter meant. Believe me, you wonít be able to understand all this. Thatís why weíre here to help you.

Mr. Squires said Mr. Martinez is here at my invitation. Several residents in my neighborhood had things to say to me about the very thing that is going on here. They said they had been cited and fixed the situation but they showed me other situations where nothing had been done.

Mayor Webster said if you see violations that need attention notify the Building Department. I think the letter is the proper way to handle it. Mr. Smith will be getting in touch with you. We will meet with you and your next-door-neighbor and find out exactly whose fence it is and take appropriate action. If it is your fence you have the permission of the City to take it down. If it is the neighborís fence she will get the letter instead of you.

Mr. Galster stated that the inspector will only pick up what he can see from the public right-of-way unless a complaint is lodged and he is given permission to come in your back yard in order to see something. I believe a letter should go out to Air Tite Windows with a copy of the ordinance stating what they are permitted and not permitted to do. I would like to try to find out what they are asking you to do so we can find out what kind of program they are promoting so we can address it more precisely and eliminate some of the problems. We pass ordinances a lot of times that are based on responses to problems. Unfortunately they are after the fact. It would be great if we could start a community right now and say we know exactly what we want to build and what we will allow, but that is not the case. If the letter that goes out is offensive I have no problem with looking at it again.

Ms. Pollitt asked would it be possible to draft some type of announcement so when a person or company comes in to apply for a building permit, they are handed an announcement that tells them what our ordinance would be in regards to signs in the yards.

Mayor Webster said we are going to review that portion of the sign ordinance to see what we can do to clear up the Air Tite Windows situations. I know a resident who has been playing games with the City for almost a year now. They put it up and take it down and if thatís legal we might as well quit wasting our inspectorís time and take it out of the Code. As far as the letter, a resident made some allegations a couple of years ago so we brought some letters into Council and without exception everybody said they didnít see anything wrong with the letters, so weíve not made any changes to the letters. The letters now are the same tone as they were two years ago and I would defy you to make that letter any more user friendly.

Mr. Squires said Iím not offering any criticism to any of our operatives. I just thought we had a problem that Council needed to address and I think we are doing an adequate job of that.

Mr. Danbury said I think we need to publicly state that we are not going after Air Tite Windows. We are going after businesses that conduct business like Air Tite Windows. Iíd like to roll this over to landscaping companies and any other companies.

Mr. Vanover said if you have a question, call. If you donít get a resolution or response there, then call us. I have been called and I can refer you to the person you need to talk to.

Mr. Martinez said I think when thereís a problem you need to talk to a group of people for the same problem so as a group you have an opportunity to address it. Unfortunately, Iím probably the only one who got a letter and came up here. Iím not trying to criticize you. Sometimes itís just the systems we try to implement. When we implement them, there is absolutely no way we can enforce them. If you want to read my contract with Air Tite you are more than welcome to it. I am willing to work with you to change this.

Mrs. McNear asked what are the terms of the contract in regards to the sign?

Mr. Martinez said included with the total price of the windows was maintenance. You are sold on a maintenance contract and they will fix it any time and they have been really good at it. The maintenance contract is an extra amount of money. If it would have cost me $7,000 for the windows they would have given it to me for $5,000. The rest of it was a contract saying I would allow them to advertise their company and they would allow me a discount of $2,500 or however much they would discount it. The sign would be up for two weeks, then down. Every six months they would come in and put up the sign and then take it down. There have been times when someone has failed to come by and pick it up. They do this for a period of three years. We sign a contract in good faith and here we are violating our own ordinance. If you want to look at my contract you can.

ORDINANCE NO. 41-2000 "AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO ENTER INTO A CONTRACT WITH TERRY CONSTRUCTION TO DO THE YEAR 2000 CRACK SEAL PROGRAM AND DECLARING AN EMERGENCY"

Mr. Vanover made a motion to adopt and Mr. Danbury seconded. Ordinance 41-2000 passed with seven affirmative votes.

ORDINANCE NO. 42-2000 "AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO ENTER INTO A CONTRACT WITH L. P. CAVETT TO DO THE YEAR 2000 STREET IMPROVEMENT PROGRAM AND DECLARING AN EMERGENCY"

Mr. Danbury made a motion to adopt and Mr. Vanover seconded.

Mr. Galster said, Mr. Wilson, we were talking about this before. I thought you said they were trying to eliminate some because it was $90,000 over. Is it our intention to go with the program in its entirety?

Mr. Osborn said if you look at the enclosure in the legislative update packet, I can run you through that summary. The first total is the total amount with alternates 2 and 3. Alternate 2 is a rejuvenator which we believe gives extended life to the asphalt. We felt the $15,000 price is well worth that. Alternate 3 is the net cost of going with thermoplastic rather than paint for the striping of the roads being resurfaced. Again we think it is well worth that cost. That brought the cost of the contract to just over $894,000. We tried to back into meeting our budget number of $800,000 to our best ability. We ended up electing to non-perform $150,000 under the L.P. Cavett contract. That will bring our actual cost under the L. P. Cavett contract down to just under $745,000. If you add back in the Terry crack seal contract which you just adopted at $20,000, the engineering cost at $35,000 and materials for work performed in-house that work performed in-house reflects items we took out of the contract with L. P. Cavett and represent items weíre going to do with our own personnel instead on a more limited and priority basis. When you net that out it totals $820,375. When you subtract out the reimbursement we expect from Water Works for their part of repaving Kemper Road, we get our grand total down to $809,175 and thatís the result of the negative number you see at the bottom. Weíre going to be short by $9,175. I hope that explains that we are non-performing a great part of the L. P. Cavett work. The biggest part of that number comes from reducing the amount of paving weíre doing in Heritage Hill. We are doing the eastern 30% of Heritage Hill. In order to reduce those numbers we cut out the paving on Ledro and Castro between Cornavin and Benadir. That helps us reduce that paving cost for this year. We will add those two blocks into the second phase which will be done next year.

Mr. Galster said just for clarity, even though the contract is for $894,140, we plan on non-performing $150,000.

Mr. Osborn replied that is correct.

Mr. Squires asked, Mr. Osborn, regarding the Kemper Road re-pavement, can we do that for $11,200, bring it back to Springdale standards.

Mr. Osborn replied that represents 50% of the portion of the road affected by the Water Works project that will not be covered by another paving project we have already on the schedule, which starts at Lawnview Avenue. We have a paving project associated with the East Kemper Road improvement project. Weíre after the Water Works for the south half of Kemper Road from Lawnview Avenue to Rt. 4. That number is based on the unit price we received on the bid.

Ordinance 42-2000 passed with seven affirmative votes.

ORDINANCE NO. 43-2000 "AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO ENTER INTO A CONTRACT WITH CINCINNATI BELL FOR THE INSTALLATION AND MAINTENANCE OF THE MERLIN MAGIX R1.0 TELECOMMUNICATIONS SYSTEM IN THE CITY OF SPRINGDALE RECREATION CENTER AND DECLARING AN EMERGENCY"

Mr. Knox said there are two Section 3s. I will change the reading of the second Section 3 to Section 4 and then Section 1 to Section 5.

Ms. Pollitt asked to change Recreation Center to Community Center.

Mr. Galster made a motion to adopt with the modifications.

Mr. Parham said this is a state bid process.

Ordinance 43-2000 passed with seven affirmative votes.

ORDINANCE NO. 44-2000 "AUTHORIZING THE EXECUTION OF A SERVICE AGREEMENT IN CONNECTION WITH THE EXEMPTION OF CERTAIN IMPROVEMENTS FROM REAL PROPERTY TAXATION FOR THE DEVELOPMENT KNOWN AS PICTORIA ISLAND, AND DECLARING AN EMERGENCY"

Ms. Pollitt made a motion to adopt and Mr. Galster seconded.

Ms. Pollitt asked could you go over Section 3 again? You mentioned notes and bonds. We donít have that on our copies.

Mr. Knox said I failed to mention that. I was handed a copy of this just prior to the meeting that had that extra section in it. Mr. Knox read Section 3 again.

Mr. Danbury said it would be appropriate if everyone gets a copy of something this big.

Mr. Schneider stated we can see that everyone gets a copy tonight. That is a provision that I insisted had to be added to the ordinance. I am sorry it did not get circulated with that in there.

Mr. Osborn said Attachment A that was distributed with the ordinance has a date of 5-4-2000. In your mail bin you found replacement copies with a draft date of 5-16-2000. Attached with that is a highlighted version that has the 5-4 and 5-12 crossed out and the 5-16 date highlighted. That version shows you the changes that were made since the 5-4 version. The changes made are negligible and are not substantive to the overall text of the document. The Law Director, Bond Counsel Tim Quinn and I have put a great amount of time into reviewing these documents on behalf of the City. Generally, the project we have before us involves the property between Avon and Showcase Cinemas. It is owned by a partnership called Northking and we identify the property as Pictoria Island. The overall project would eventually have a build out value of over $104 million in terms of its investment. In order to encourage this development we are proposing the use of a TIF to construct just over $16 million in improvements. Based on the summary sheet I distributed to you this evening we see a representation from the developer that the revenues generated from the development at full build out will generate sufficient service payments to cover the debt required for the project and have a $3 million surplus. If you look at the front page of the summary sheet I distributed this evening, you will notice that under the first total you come to $16 million. That is the amount of the infrastructure improvements associated with this project. The TIF balance due of $2 million refers to the TIF we did several years ago in which the current developer has agreed to absorb as part of this project so the total TIF requirement is $18,374,000 in debt service. The principal that can be supported by the service payments thrown off by this project are estimated at just over $21 million. That results in the $3 million surplus, a surplus of 16.5%. Another critical thing we have examined very closely through the entire project is the Cityís exposure. Bond Counsel will tell you how that is limited but even in those areas where we feel that there is exposure, we have insisted upon irrevocable letters of credit that will protect the interest of the City. Again, Iíll leave it to Bond Counsel to explain that to you in more detail. I can tell you that we have been in negotiations with the developer for six to eight months off and on. We are satisfied that we have reached a mutually beneficial arrangement. In the latter part of 1999 another agreement was reached and brought before City Council related to this project that satisfies the School District in their rights under the State law regarding TIFs. Thatís an issue that is not before us this evening. With that as a background I would like to suggest that we turn it over to Mr. Tipton to review the scope of the project and the public improvements to go with each phase. After Mr. Tipton has gone through his explanation, our Bond Counsel, Mr. Quinn, can express what the Cityís obligations are under this agreement and what protections we have.

David Tipton, the developer, said this is a proposed site plan. These are always preliminary because there are usually changes to what you start out with. You see four restaurants. It could be three restaurants and a hotel. We are dealing now with a rather attractive hotel. The first restaurant is Bahama Breeze. Itís 13,000 square feet and should be under construction hopefully next week. We are talking to two other restaurants and if we could get them into this part of the country, this would probably be one of the most outstanding restaurant sites in the Greater Cincinnati are. The hotel would be a long-term stay hotel. We hope to close on the one office building Friday. It is 156,000 square feet. It will be the largest suburban office building to be started without a specific use. There will be a 1,118 car parking garage that will cost approximately $9 million. The combination of office building and parking garage will be $35.5 million. Weíve already made some of the street improvements. We put in a cul-de-sac and put in some pavers. The lake is in out front. We plan to put fountains in the lake this year. We have a brick sidewalk around the lake. The second office building is almost 200,000 square feet. The three office buildings to the rear would be a class B office. The class A office out front will be the finest we know how to build. The class B office space would be $1-$2 cheaper. The total office space will be 750,000 square feet. Between the restaurants and office space we expect there will be an employment of 3,200 people. I did run a tax proration over the thirty year life of the TIF and it indicated about $43 million accumulated tax payment to the City. The funds for the office building are called MEPT (Multi Employer Property Trust), a $2.61 billion trust. It will be done all with cash, no debt on the property. Itís an exciting project and we hope it will be really beautiful and exciting.

Ms. Pollitt asked would the hotel be located where restaurant #4 is located? What would the capacity be?

Mr. Tipton replied we would be moving it up a little bit. There would be about 100 suite type rooms.

Mr. Wilson said Exhibit A, page 18, section 9: Insurance Coverage And Proceeds. I read that the owners determine the amount of coverage for the property and liability. My concern is, is the City liable for any excess if there is any in a settlement? Are we adequately covered?

Mr. Schneider responded this is structured so that there is no liability beyond the insurance coverage of the building, then they must pay off the obligations. They have to use the insurance money to rebuild the structures so that we continue to have a revenue source coming in to pay off the bonds. If for some reason they should not do that, they must pay off the bonds. Only then will the money go back for the property or the mortgage holder.

Mr. Quinn said there is a distinction between defined terms of improvements which are private buildings and public improvements which are the streets, sidewalks and parking garages. The City is the owner of the public improvements; the developer is the owner of the private improvements. The developer and owner are required to provide insurance coverage for the public improvements. I think the coverage is adequate.

Mayor Webster said this certainly has the support of the Administration. I certainly hope that Council will support this project. We are talking about a $104 million investment in our City, something in excess of $1 million a year when it is built out, probably approaching close to $2 million in earnings tax. We tried to protect the City at every turn. We feel weíve put a document together that does that. This is a plan that will hopefully come to fruition. The development plan was first presented to the City in 1995. It was somewhat more grandiose but I think somewhere along the way reality set in and I think we have a plan here thatís very workable. We have some office buildings that are going to be the envy of a lot of communities in this area of the state and hopefully we will have some very nice sit down restaurants. The only negative side is the traffic itís going to generate. I donít want you to go away this evening thinking we wonít be back with very elaborate street enhancements as we go forward with this development. It would be asinine to think you could move 3,200 employees in and out of SR 4 and SR 747 and Crescentville as they exist today. There are going to be expenses that eat into the revenue I just referenced. Traffic itself is no reason to deny a development and we certainly hope you would not choose to do that this evening.

Mr. Danbury said this is what I had envisioned. It does assist the City in getting us off the TIF right now. You will be assuming the TIF which is good from our standpoint but I feel as though you feel you can make a return on your investment. The 3,200 employees is over a ten year span. By that time CDS or whoever can come up with a plan to make it workable. Iím very excited about it.

Mr. Knox said I was reading the drafts and second drafts. I did have some questions about a month ago and I got together with Mr. Parham and discussed those things. The changes that were made satisfied me. I never read a document that protected an entity such as the City as well as this document does. I do personally recommend this.

Mr. Quinn said there was one mistake and Mr. Schneider found it. Itís in Section 5. e on page 14. "Such letter of credit or replacement thereof must be in effect for any year in which the ratio of statutory service payments for the next succeeding year to the scheduled minimum service payments for that year for the appropriate years of bonds," then the words "does not" should be inserted. Without the correction the way it reads now the letter of credit that would protect the City would be in place only when theyíre making enough payments but would not be in place if they are making insufficient payments. Also at the top of page 15 the word "and" should follow "pay the deficiency."

Mr. Quinn continued the existing TIF is a general obligation bond which means that if the TIF payments are insufficient to service the debt, the City makes up the difference. These are not general obligations. They are revenue bonds payable solely from the service payments. The existing TIF is being converted from general obligation bonds to revenue bonds to be part of this. Until the project is fully developed the payments in lieu of taxes wonít be coming in because the valuation of the property is retroactive. It is set up here to have a letter of credit from one or more banks. A letter of credit is an independent promise to pay. The developer pays the bank to guarantee the debt. The note holders are being paid by the bank, not the developer during the start up phase. I have never seen a political subdivision protected like the City of Springdale is in this particular deal. In the start up phase there will probably be notes issued. Until the revenue stream is coming in there will be notes, not bonds.

Mr. Danbury said this is a PUD. If something happened in the marketplace they would have to come back to us with the changed plan. What if you decided you wanted a different land use for something and the City denies it? Would you still be responsible for the TIF?

Mr. Quinn replied yes because the project is being phased in.

Mr. Danbury said this will take care of every parcel of land up there. Do we have any other areas that are outstanding?

Mr. Osborn replied there is a piece of property adjacent to this currently developed which I believe the developer has attempted to negotiate an acquisition. If you look at the phasing on the second page you will see that after the end of the Phase I debt, that phase will be a positive number and will support other phases. There is a distinction between phasing of the debt and the layout you see here and the construction sequence that is going to occur. Nevertheless, the developer is obligated to insure the minimum service payments whether any development happens or not. A great deal of debt is tied up in the parking garages and the garages will only be built if the corresponding office towers are built.

Mr. Quinn said the owners are planning to buy the bonds which are going to be issued for Phase I so itís basically self-financing on the taxes end basis. They are required to sign an investment letter which is an affirmative statement back to the City saying they are economically able to do this; theyíve made their own investigation and they understand the risks; if thereís a default theyíre not going after the City; etc. I think the owners are prepared to do that. That is the safest level of insurance from a bond purchaser that the City can get. The document delivered to the public when itís sold discloses the risks. Here, you are not only disclosing the risks, you are getting an affirmative statement back that they are aware of the risks and are assuming them.

Mr. Schneider asked about the status of the hotel.

Mr. Tipton said the negotiations are ongoing and I hope in the next thirty days we can ink an agreement with the hotel owner.

Mr. Danbury made a motion to amend page 14,Section 5. e, insert the words "does not" after "bonds" two lines from the bottom; and on the next page where it says "pay the deficiency", the word "and" should be inserted between deficiency and will". Mr. Vanover seconded.

The motion to amend passed with seven affirmative votes.

Mr. Osborn said following this document there will be additional legislation in the future. One involves the issuance of debt in thirty to sixty days. Weíll also be doing an investor lease agreement for the first parking structure sometime in the future.

Ordinance 44-2000 passed with seven affirmative votes.

Mayor Webster said I want to pass out some accolades to Mr. Quinn, Bond Counsel; City Administrator, Cecil Osoborn; Law Director, Ken Schneider for all the time and effort they put in here. This has taken many different shapes and forms. Itís amazing that we were able to pound this out. I donít want to leave out Mr. Tipton and his staff, Mark Webber. There are a lot of people behind the scenes who had input into this document. It just shows what can happen when the public and private sector sit down in a constructive manner and try to hammer out some very difficult issues. I extend my thanks to everyone involved.

Mr. Danbury said Iíd like to say the same thing and include you in there. You were originally the Clerk of Council/Finance Director when we put the TIF in there. This is going to be a win/win for everybody.

OLD BUSINESS

Mr. Galster said I was hoping to try to get with Ms. McBride to set up for the Comprehensive Plan presentation for the first meeting in June.

NEW BUSINESS - none

MEETINGS AND ANNOUNCEMENTS - none

COMMUNICATIONS FROM THE AUDIENCE - none

UPDATE ON LEGISLATION STILL IN DEVELOPMENT

Amending the Zoning Code - June 7

RECAP OF LEGISLATIVE ITEMS REQUESTED

Gasoline purchase from BP - June 7

MVRMA Workerís Comp - June 7

Council adjourned at 10:20 p.m.

 

Respectfully submitted,

 

 

 

Edward F. Knox

Clerk of Council/Finance Director

Minutes Approved:

Kathy McNear, President of Council

 

 

__________________________, 2000