President of Council Kathy McNear called Council to order on December 4, 2002, 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, Pollitt, Squires, Vanover, Wilson and McNear. Mr. Danbury was absent.

The minutes of November 20, 2002 were approved with five affirmative votes. Ms. Pollitt abstained.

COMMUNICATIONS

Mr. Knox read a letter from Cinergy, "This letter is to inform you that the Cincinnati Gas and Electric Company will file an application for an increase in rates. The application will propose an increase in rates of approximately $15.2 million. The increase will result in an additional charge of $1 per month for residential customers. ." The reason they are doing this is under their accelerated main replacement program. They are installing plastic mains and service lines to replace the cast iron and bare steel. They had embarked on this program in 2001. They had 1,000 miles of cast iron mains and 192 bare steel mains. They were very aged, some dating back to 1873. This is going before the Public Utilities Commission so it hasnít been cast. Residences will go from $1 to $2 per month; however, businesses will go from $3.75 to $10.43.

Mr. Knox said the second communication is from Time Warner and they are talking about an increase also. Most people should have received notice by now. The cost of basic service will change from $10.42 to $9.69. The standard tier service will increase from $25.32 to $28.88. The cost for in-home terminal units will change from $5.95 to $6.95.

COMMUNICATIONS FROM THE AUDIENCE - none

PRESENTATION Ė

Mr. Osborn stated David Butsch recently attended the International Public Works Associationís annual meeting in Kansas City. At that time he accepted an award on behalf of the City of Springdale from the Salt Institute and I asked him to come before you this evening to share a little bit about that award.

Mr. Butsch said I attended the APWA Conference in Kansas City. The award is the Salt Instituteís way of helping to improve the way communities handle and store salt, the methods to which they apply it, and the procedures and process for clean up. They focus on certain areas. The main reason we applied for it this year as opposed to previous years, was with the completion of the salt dome and calcium tank. We now have a sufficient supply of salt stored for an entire season. They look favorably upon that. We also have a very good safety program in the Public Works Department. We hold safety meetings monthly with personnel. We attend the Countyís snow removal training program. They look at the facility to see if itís fenced and protected. We not only have the fence around the perimeter of the facility but we also have a fence on the front of the salt dome. We also have inside lighting in the salt dome. The Salt Institute actually sent someone down to document that we do what we say we do. We have good housekeeping policies. The whole rear of our compound is asphalt. Any salt that is dropped from a truck is pretty well contained. There were 14 new awards given and 15-20 multi-year winners. I was very happy to receive the award on behalf of the City and hopefully we can continue to get the award in the future.

ORDINANCE 79-2002 "AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO ENTER INTO A COLLECTIVE BARGAINING AGREEMENT WITH THE FRATERNAL ORDER OF POLICE, OHIO LABOR COUNCIL, INC., AND DECLARING AN EMERGENCY"

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

Ordinance 79-2002 passed with six affirmative votes.

ORDINANCE 80-2002 "ORDINANCE AUTHORIZING THE SALE OF REAL ESTATE TO CINCINNATI METROPOLITAN HOUSING AUTHORITY AND DECLARING AN EMERGENCY"

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

Ordinance 80-2002 passed with six affirmative votes.

ORDINANCE 81-2002 "AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO TAKE THE ACTION NECESSARY TO ACKNOWLEDGE THE CITY OF SPRINGDALEíS ACCEPTANCE OF AN AMENDMENT TO THE HAMILTON COUNTY REGIONAL PLANNING COMMISSION PLANNING PARTNERSHIP BYLAWS AND DECLARING AN EMERGENCY"

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

Ordinance 81-2002 passed with six affirmative votes.

ORDINANCE 82-2002 "CONSENTING TO AN AGREEMENT BETWEEN THE STATE OF OHIO FOR JOB CREATION TAX CREDIT FOR AMPAC PLASTICS, LLC, AND TRICON PROPERTIES LTD., AND DECLARING AN EMERGENCY"

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

Mr. Osborn said this ordinance and its companion ordinance, 83-2002, deal with our effort to retain a long time Springdale business here in our community as opposed to seeing migrate to another part of the country or even out of the country. Iíve asked Beth Stiles to make a presentation to you on these two ordinances. This is the first job creation tax credit agreement that we have supported.

Ms. Stiles stated the two ordinances before you deal with tax incentives for AMPAC Plastics, located at 12025 TriCon Place. AMPAC currently employees 228 people with an annual payroll of approximately $10 million. They manufacture retail plastic and paper shopping bags for The Gap, The Limited, etc., security envelopes and night depositories for banks and consumer packaging films. The company is looking to expand their operations over the next three years by buying new inventory equipment, making improvements to the building itself, and also adding new employees. They are expecting to add 27 new jobs which will generate approximately $1.4 million in additional payroll. The first ordinance is the job creation tax credit, an ordinance that authorizes and consents to an agreement between the State of Ohio and AMPAC for these credits. This program offers an incentive to a company as a tax credit against their State corporate tax based on the amount of withholding generated by the new employees. The Department of Development is recommending a 60% tax credit for eight years because of the 27 new full-time jobs created. That would generate a tax credit to AMPAC of about $14, 000 a year. As part of the agreement, the State requires AMPAC to stay in Springdale for at least sixteen years and that 33% of their new employees will be minorities and/or disadvantaged people. This credit has no impact on the City of Springdaleís tax withholding. The second ordinance, 83-2002, is authorizing and consenting to an enterprise zone between AMPAC and Hamilton County. The County has approved, subject to Councilís approval, a personal property tax exemption and a real property tax exemption at a rate of 75% for nine years. As a result of these incentives, roughly $2,000 in new property tax revenue will be generated annually and approximately $30,000 of new personal property tax will be generated annually. For Springdale the biggest impact will be the new payroll will generate about $14,000 in new earnings tax annually. AMPAC has been negotiating with Princeton Schools to enter into a separate revenue sharing agreement. That is expected to go to the Princeton Board Monday evening. Weíre recommending approval of both ordinances.

Mayor Webster said, you indicated it has no impact on Springdale. It has no impact on our earnings tax but it does on our property tax.

Ms. Stiles replied no, it does not. With the formula the County uses we will get additional property tax. It will have a neutral affect. Princeton School will lose the bulk of the property tax.

Mayor Webster said assuming they do leave prior to sixteen years, is there a penalty assessed to them?

Ms. Stiles responded yes. Every year they have to submit documentation to the Tax Incentive Review Commission as well as to the State for the job creation tax credits.

Mayor Webster asked have we ever had anyone have to pay us back?

Mr. Knox answered not since Iíve been sitting here. In several cases we have repealed or taken back the assessment. In most cases the president of the company has come in and pleaded their case so when they took it away they felt that was a big enough penalty.

Mayor Webster stated, needless to say, we wholeheartedly support this action and asks Councilís support also.

Mr. Squires asked what happens if the Board of Education doesnít approve this.

Ms. Stiles replied I donít have any indication that they wonít support it. Iíve talked with the treasurer many times in the last week and a half, and heís recommending it. They have worked out an agreement where AMPAC is going to make a cash contribution annually for the course of the nine-year exemption as well as some in-kind products and services.

Mr. Galster said all of these tax incentives are based on their new stuff. Itís in Princetonís best interest to keep the base that they have. They are giving up the incentive on the addition, but they are able to keep the base they have plus whatever they negotiate. The same with the City. Even though we may be giving up some business property tax on the addition, we are retaining what is already there.

Ms. Stiles said this company has a site in Mobile, Alabama that is strongly courting them.

Mr. Wilson asked who will monitor the hiring practices and are there any penalties assessed as a result of not maintaining that percentage?

Ms. Stiles replied the State of Ohio monitors that. They have to submit a package for each employee who is added. The tax creation credit could be revoked if they donít do it. The State is also doing another package of loans and tax credits as well because they were fearful they would leave the state.

Ordinance 82-2002 passed with six affirmative votes.

ORDINANCE 83-2002 "CONSENTING TO AND AUTHORIZING AN ENTERPRISE ZONE AGREEMENT BETWEEN THE HAMILTON COUNTY BOARD OF COUNTY COMMISSIONERS AND AMPAC PLASTICS, LLC, AND TRICON PROPERTIES, LTD., AND DECLARING AN EMERGENCY"

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

Ordinance 83-2002 passed with six affirmative votes.

Mrs. McNear moved Ordinance 84-2002 to after the executive session.

RESOLUTION R27-2002 "CONSENTING TO JOIN THE CINCINNATI NORTH CONVENTION AND VISITORS BUREAU, INC."

Mr. Knox asked that Resolution R27-2002 be tabled one more time. The final meeting is scheduled for this Friday.

Mr. Galster made a motion to table and Ms. Pollitt seconded. The motion passed with six affirmative votes.

RESOLUTION NO. R29-2002 "CONFIRMING THE MAYORíS APPOINTMENT OF KEVIN KETRING AS A MEMBER OF THE BOARD OF HEALTH"

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

Mayor Webster said Dr. Ketring is a veterinarian with a practice in Springfield Township. He has been on the board a long time. This is the fourth time I have appointed him and he was there when I became mayor. The same is true with Rita Hart. She is a nurse at the Princeton School District. Both of these individuals are extremely competent and do a marvelous job on our Board of Health. I encourage the reappointment of both of these individuals.

Mr. Vanover said I second that. I have served with both of them and Dr. Ketring especially brings a viable insight into the animal issues. Rita has been a big plus on the public health side.

Resolution R29-2002 passed with six affirmative votes.

RESOLUTION NO. R30-2002 "CONFIRMING THE MAYORíS APPOINTMENT OF RITA HART AS A MEMBER OF THE BOARD OF HEALTH"

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

Ms. Pollitt said I echo what the Mayor and Mr. Vanover said. Both Dr. Ketring and Ms. Hart bring a great deal of knowledge to the board. I request that we approve this resolution.

Resolution R30-2002 passed with six affirmative votes.

OLD BUSINESS

Mr. Osborn said last month Council authorized an application to the Community Development Block Grant Program for the period 2003 through 2005. At that time we applied for $457,169 over two years to do street repair and replacement in the area bounded by Kemper Road on the south, Greenlawn on the west, Dimmick on the north and Springfield Pike on the east. We received the recommendation that was going to the County Commissioners today. In that recommendation the City has been awarded $100,000 for 2003. Thatís only one-fourth of what we asked for but weíll be glad to put it to use. Weíll have to pare back the pace of the project. We will identify one of the streets in that area that we can accomplish within the limits of that money, and weíll do that in 2003.

Mayor Webster said the only two communities I saw on the list that got 100% of what they asked for were North College Hill and Norwood.

Ms. McNear said we need to nominate someone for vice-president of Council.

Mr. Squires nominated Tom Vanover. Ms. Pollitt seconded. Mr. Vanover was appointed vice-president again with six affirmative votes.

NEW BUSINESS

Mr. Osborn said the first item I have deals with construction engineering on Kemper Road Phase II. Construction engineering is field work we have to call upon our engineer to do after a project has been let for bid and is actually under construction. The design phase was an earlier contract but once it goes to construction we do a second contract for construction engineering. In the past Iíve absorbed these into the engineerís line item in the general fund, but because of the size of a couple of these weíll be bringing you this evening, we felt they ought to be identified with the project in the capital budget. I have put these in the budget proposal you will see next meeting as independent line items. On Kemper Road Phase II we are looking at construction engineering costs of $99,500 and survey and stake out costs of $16,500. I recall times when we have come in grossly under the number and unfortunately, on some occasions, above the number. The engineerís office gives us a pretty conservative number to work against so that we are not surprised at the end of the project. I would recommend that we adopt this format of $116,000. A little of the work has been done this year but the bulk of it is in 2003 and I recommend we have an ordinance at the next meeting authorizing an agreement with the City Engineerís Office.

Mr. Osborn said we have a proposal from the engineer on the CSX grade separation that covers a three year period. The total cost that is being proposed is $206,748. This is an $11 million construction project. The reason why the percentage is so much lower for this project is that we are paying the State to do construction engineering. When they find a field condition they are going to come back to the design engineer, which is our engineer, to ask what the fix is. I suggest we limit our current agreement to cover 2002-2003. It would be easier to track that way rather than carry an encumbrance into 2004. The cost for those two years is $136,866.

Mr. Osborn continued the third project is the ODOT urban paving program on Springfield Pike. As part of our rejuvenation of Springfield Pike, we were able to get the State to agree to resurface Springfield Pike to Cameron. Unfortunately, the only thing they will do is put asphalt on the top. That is not an effective long-term solution to maintaining the street. We have to do sub-base work before putting the new surface down. We estimate that our local share of this paving project will be about $226,000 based upon the Stateís current estimate. We will be picking up two-thirds of the cost but we are getting $100,000 from the State to do this project. We have to have the legislation to the State by January 3. I would like to bring this in at the December 18 meeting. I will adjust the budget proposal that is being reviewed now by Finance Committee. It will reflect the fact that this is now a 2002 project. Weíll just make adjustments and transfers.

Mrs. McNear said CDS has requested a change to their fee schedule. Weíll have that in the packet next week. We also have a request from Wood & Lamping for an increase in their annual retainer from $16,000 to $17,000 plus there are a few adjustments on the hourly rates. We will need legislation on those at the next meeting.

Mayor Webster said the judging of the Christmas lights will begin next Tuesday or Wednesday and weíll have those wrapped up by Sunday, December 15. Weíll announce the award winners December 18.

MEETINGS AND ANNOUNCEMENTS

Board of Zoning Appeals - December 17

Planning Commission - no meeting

Board of Health - December 12

Veteranís Memorial Committee Meeting - December 18

COMMUNICATIONS FROM THE AUDIENCE - none

Mr. Vanover made a motion for Council to go into executive session as a meeting of the whole for an informal discussion of real estate and personnel matters. Ms. Pollitt seconded. The motion passed with six affirmative votes.

Council went into executive session at 7:58 p.m. and reconvened at 8:18 p.m.

ORDINANCE 84-2002 "AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO EXECUTE A CONTRACT TO PURCHASE WITH DONALD E. SHIPPS AND CAROLE M. SHIPPS, TRUSTEES, FOR THE ACQUISITION OF PROPERTY LOCATED AT THE REAR OF 11530 SPRINGFIELD PIKE, SPRINGDALE, OHIO 45246, AND DECLARING AN EMERGENCY"

Mrs. McNear removed Ordinance 84-2002 from the agenda.

UPDATE ON LEGISLATION STILL IN DEVELOPMENT

Supplemental Appropriation and Transfer Ordinance - December 18

Temporary Appropriation Ordinance for 2003 - December 18

RECAP OF LEGISLATIVE ITEMS REQUESTED

Construction engineering Kemper Road Phase II - December 18

Construction engineering for CSX grade construction - December 18

State resurfacing - December 18 CDS engineering - December 18

Wood & Lamping legal services - December 18

Four items from executive session - December 18

Resolution for Civil Service - December 18

Resolution for Charter Revision - December 18

Council adjourned at 8:21 p.m.

Respectfully submitted,

 

 

 

Edward F. Knox

Clerk of Council/Finance Director

Minutes Approved:

Kathy McNear, President of Council

 

 

__________________________, 2002