President of Council Kathy McNear called Council to order on August 2, 2006, at 7:00 p.m.

 

            The governmental body and those in attendance recited the pledge of allegiance.

 

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

 

            The minutes of July 19, 2006 were approved with five affirmative votes.

 

            COMMUNICATIONS                                                   -                       none

 

            COMMUNICATIONS FROM THE AUDIENCE            -                       none

 

ORDINANCES AND RESOLUTIONS

 

ORDINANCE NO. 59-2006 ORDINANCE NO. 59- “REPEALING ORDINANCE NO. 40-2004 OF THE CITY OF SPRINGDALE, OHIO, PROVIDING FOR THE ISSUANCE AND SALE OF NOT TO EXCEED $10,000,000 OF TAX INCREMENT FINANCING REVENUE BONDS, SERIES 2004 (PICTORIA ISLAND PHASE II PROJECT) OF THE CITY OF SPRINGDALE, COUNTY OF HAMILTON, STATE OF OHIO, UNDER SECTION 5709.40 ET SEQ.  OF THE OHIO REVISED CODE FOR THE PURPOSE OF PAYING THE COST OF CERTAIN PUBLIC IMPROVEMENTS; AUTHORIZING A PLEDGE OF AND LIEN ON CERTAIN SERVICE PAYMENTS TO SECURE SUCH BONDS; AUTHORIZING A TRUST AGREEMENT SECURING SUCH BONDS; AUTHORIZING AN ESCROW AGREEMENT AND A LETTER OF CREDIT TO SECURE THE BONDS; AND DECLARING AN EMERGENCY”

 

Mr. Galster made a motion to read by title only and Mr. Vanover seconded.   The motion passed with five affirmative votes.

 

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

 

Brenda Weimer stated this ordinance repeals the bond authority passed two years ago.  It is better if the Port Authority issues the bond.  Ordinance 40-2004 should be taken off the books.  If something should change and the Port Authority does not close the bond, we could issue a new ordinance.  The resolution is declaring the necessity of the special assessment.  The Port was asked by the owner to manage the assessment to pay for the garage.  If the TIF is not enough to make the payments, the assessment will cover.

 

Ms. Weimer said the next item is the ordinance determining to proceed with the special assessment.  Usually you would address the resolution of necessity at one meeting and then have some time before addressing the ordinances.  In this case, the property owner has requested the assessment by petition rather than Council determining to impose this on a rental property.  They have waived all notice periods, public hearing periods and all the procedural matters to allow you to address the Port Authority and resolution at the same Council meeting.

 

Ms. Weimer continued the third item is to actually levy the assessment because they are the sole property owner.  You can levy the whole thing against one person.   They have waived their right to pay the assessment in thirty days and want you to immediately certify it to the County Auditor for collection over a forty-eight semi-annual payment period.  There are other documents still coming to lay out the flow of the bonds and who will be responsible for shifting the payments from one entity to another.  Right now the service payments come to you because that’s how the statutes work and you will have to send them to the trustee.  The County Auditor imposes them on the tax duplicate.  The treasurer’s office collects them and they are submitted to you by the auditor with your settlement.  Under the documents that will come before you at the next Council meeting, you will be obligated to send those special assessments directly to the trustee for payment on the bond.

 

Mayor Webster said if we don’t get a special assessment payment, then we don’t send anything.

 

Ms. Weimer responded you are not required to come up with a certain amount of money.  You are merely required to send what you get.

 

Mayor Webster asked, in your opinion, are we in better shape now than if the bonds were issued in the name of Springdale?

 

Ms. Weimer replied yes, because you are not the issuer.  It doesn’t go on your balance sheet against your credit.  There’s also now being imposed a second layer of revenue payments through you.  Special assessments are adding to the TIF revenue to make them even more liquid.  You won’t be the issuer of the bonds so the bond holders will not look to the City of Springdale if anything goes wrong.  They will look to the Port Authority.

 

Mayor Webster asked do the special assessments run with the term of the bonds?

 

Ms. Weimer replied yes, they are set up for forty-eight semi-annual payments because that’s how the County Auditor bills special assessments.  If he decides to levy them annually he can do that.

 

Mayor Webster asked are we in better shape for Phase III?   Are we still bound by the original service agreement?

 

Ms. Weimer stated this does nothing to affect Phase III.  These only address Phase II.  You will have to address Phase III at a different time.

 

Mayor Webster said this has been a long and complicated situation.  It has been eight to ten years since we started talking with the developer.  The principal is now deceased.  A lot of things have happened.  I can’t say enough for the work that Mr. Knox, Ms. Weimer, Mr. Schneider’s office and the Port Authority have done.  The bonds will not be in the name of Springdale.  The City is 1,000 percent better off than we were two years ago.

 

Mr. Wilson said we’ve heard all the positives about the Port Authority issuing the bonds instead of the City but what does it cost us?

 

Ms. Weimer said you lose control of some revenue because you have to turn it over.  Right now there are no excess revenues and no expectations that there will be.   If there are, they will go back to the parties that have paid shortfall payments.   The fees are to be paid by involving other parties.  There are additional legal fees coming out of project revenues.  Since this is not currently cash flowing, it is really the developer’s last property owner who has to foot that bill.   

 

Mr. Parham asked what about the agreement between the developer and the school district.

 

Ms. Weimer said that agreement is still in place.  Right now you are receiving the money from the County Auditor for the service payments which is where the school compensation comes out of.  You make a payment to the school.  Now, you will get the money and send it to the trustees.  They will make the school payment.  The school has first priority of payment from the fund.

 

Mr. Knox said we would pay the school district within fifteen business days.  Now we will send it to the trustees in seven days and they will pay the school the next day.  

 

Ordinance 59-2006 passed with five affirmative votes.

 

RESOLUTION R11-2006 “A RESOLUTION DECLARING THE NECESSITY OF ACQUIRING AND CONSTRUCTING CERTAIN PUBLIC INFRASTRUCTURE IMPROVEMENTS IN COOPERATION WITH THE PORT OF GREATER CINCINNATI DEVELOPMENT AUTHORITY AND DECLARING AN EMERGENCY”

 

Mr. Galster made a motion to read by title only and Mr. Vanover seconded.  The motion passed with five affirmative votes.

 

Mr. Knox stated Mr. Schneider had inserted in more than one location this statement. “The obligations of the City under this agreement do not and shall not represent or constitute a debt or pledge of the faith and creditor taxing power of the City., and the authority, the Trustees and holders of the bonds, do not have and shall not have any right to the taxes levied by the City for payment of City contributions.  City contributions are as they were described by Ms. Weimer.  They are things that come to us and we pass them on.  Later on it does say that no personal liability for any administrative council or any other person associated with the City . . .  In other words, people can’t sue you as an individual.  If any suits do come up there is a statement that says administrative expenses allowed under the trust indenture include other reasonable expenses, including legal fees incurred by the Authority or the City to comply with their obligations.  We do have some overhead obligations but they are actually less than what we had before.  Three types of payments make up the bond payment:  service payments in lieu of taxes, special assessment, and supplemental payments.  If they make a mistake on the estimate of how much they need to pay the bonds, the administrator will see this and call upon the owner to send more money.  Annually, the administrator will send figures to Mr. Williams.  This is what we estimate will be needed for the special assessment.  The petition puts the owner up for 100 percent.  If the owner does not pay any taxes the special assessment will be 100 percent of the estimated cost.  We will that percentage into an amount in dollar figures called the City reduction amount, and will present an ordinance to Council for your approval.  If Mr. Williams doesn’t like the figures the administrator sends to him, he doesn’t have to accept them.  He can negotiate with them what is the best and truest figure.

 

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

 

Resolution R11-2006 passed with five affirmative votes.

 

ORDINANCE NO. 41-2006  ORDINANCE DETERMINING TO PROCEED WITH IMPROVEMENTS TO CERTAIN PROPERTY, AS DESCRIBED IN RESOLUTION NO. R11-2006 AND DECLARING AN EMERGENCY”

 

Mr. Galster made a motion to read by title only and Mr. Squires seconded.  The motion passed with five affirmative votes.

 

Mr. Galster made a motion to adopt and Mr. Squires seconded.

 

Ordinance 41-2006 passed with five affirmative votes.

 

ORDINANCE NO. 42-2006  AN ORDINANCE LEVYING SPECIAL ASSESSMENTS FOR THE PURPOSE OF ACQUIRING CERTAIN IMPROVEMENTS AND DECLARING AN EMERGENCY

 

Mr. Galster made a motion to read by title only and Mr. Squires seconded.   The motion passed with five affirmative votes.

 

Mr. Galster made a motion to adopt and Mr. Squires seconded. 

 

Ordinance 42-2006 passed with five affirmative votes.

 

Mr. Knox said it was necessary for the ordinances and Resolution R11-2006 to be out of order because we had to get rid of Ordinance 40-2004, then have the resolution before ordinances 41 and 42.

 

ORDINANCE NO. 56-2006  AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO EXECUTE AN AGREEMENT WITH THE VILLAGE OF GREENHILLS TO PROVIDE PRISONER CONFINEMENT AND DECLARING AN EMERGENCY”

 

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

 

Mr. Galster said this will be first come, first served for the extra space.  Springdale will not lose any space that is needed.

 

Ordinance 56-2006 passed with five affirmative votes.

 

ORDINANCE NO. 57-2006  AUTHORIZING THE CITY OF SPRINGDALE’S PARTICIPATION IN THE MIAMI VALLEY RISK MANAGEMENT ASSOCIATION (MVRMA) WORKERS’ COMPENSATION GROUP RATING PLAN FOR 2006 AND DECLARING AN EMERGENCY”

 

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

 

Ordinance 57-2006 passed with five affirmative votes.

 

ORDINANCE NO. 58-2006  PRELIMINARY LEGISLATION ORDINANCE 58-2006 AND DECLARING AN EMERGENCY”

 

Mr. Galster made a motion to read by title only and Mr. Vanover seconded.  The motion passed with five affirmative votes.

 

Mr. Knox said this is a State document.  The City is responsible for 100 percent of the engineering, right-of-way, and non-state and non-federal construction.

 

Mr. Galster said this an ordinance authorizing the City to enter into an agreement with ODOT under the Urban Paving Program to repave SR4 from the south edge of the Glensprings intersection, north to a point approximately 800 feet south of the Crescentville intersection.  The anticipated costs were $103,006 with ODOT contributing approximately $131,104

 

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

 

Ordinance 58-2006 passed with five affirmative votes.

 

RESOLUTION R15-2006  COMMENDING THE SPRINGDALE REDS BASEBALL TEAM FOR ITS OUTSTANDING SEASON AND BEING LEAGUE CHAMPIONS”

 

Mr. Galster made a motion to table and Mr. Vanover seconded.  The motion passed with five affirmative votes.

 

            OLD BUSINESS                                                         -                       none

 

            NEW BUSINESS

 

            Mr. Knox said R. W. Junkiness asked for a transfer of their liquor license from R. W. Junkiness Companies to the Gilligan Oil Company at 11595 Princeton Pike.  There were no objections.

                       

            MEETINGS AND ANNOUNCEMENTS

 

            Planning Commission                                                            -           August 8

            Board of Zoning Appeals                                             -           August 15

            Bicentennial parade                                                    -           August 23

 

Mayor Webster reported I received a letter from Dusty Rhodes.  They had an unspent balance of $14 million in the auditor’s real estate assessment fund and they returned $25,812.61 to the City.  The check was received yesterday and goes into the general fund.

 

Mr. Knox said in Today’s Tri-County Press they quoted the Princeton School District as receiving $600,000 that they are putting into their general fund.  I think most cities are because it would probably cost more to give the money back to people and they would probably end up with pennies.  We’ll return it to the general fund and it will benefit all the residents of the City.  I think Mr. Rhodes comments that he expected it to go back to the residents was rather indigenous. 

 

COMMUNICATIONS FROM THE AUDIENCE                        -           none

 

UPDATE ON LEGISLATION STILL IN DEVELOPMENT       -           none

 

RECAP OF LEGISLATIVE ITEMS REQUESTED                  -           none

 

Council adjourned at 8:43 p.m.

 

                                                                        Respectfully submitted,

 

 

 

 

                                                                        Edward  F. Knox

                                                                        Clerk of Council/Finance Director

 

Minutes Approved:

 

Kathy McNear, President of Council

 

 

 

__________________________, 2006