President of Council Kathy McNear called Council to order on January 17, 2001 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 January 3, 2001 were approved with seven affirmative votes.
COMMITTEE AND OFFICIAL REPORTS
Civil Service Commission - no report
Rules and Laws - no report
Public Relations - no report
Public Health, Safety & Welfare - no report
Public Works Ė Mr. Wilson said we are requesting legislation authorizing the design work for the 2001 street program be approved this evening. The anticipated schedule for the project is to award the project late March, start construction mid April and complete the project in late August.
Public Utilities - no report
Capital Improvements Ė Mr. Danbury said the CSX grade separation is back on track to the original date. They anticipate starting construction a year from now. They are still waiting on ODOTís evaluation of the Cityís $2.5 million application for funding under the railroad grade separation. Phase I of the East Kemper Road improvements was completed in October. Early construction of Phase II was to consist of water main relocation, storm sewer installation, modular retaining wall construction. The project should be completed in August of this year. Construction plans are being completed for the Walnut/Pear Street improvements. Right-of-way construction is underway with the property owner of the We Care Home facility. We are waiting on comments from the facility regarding necessary relocation. We anticipate bids to be open on January 23 with limited construction involving utility relocation in mid May. They will be closing Walnut Street on June 11 with project completion in mid September. Capital Improvements will be holding a meeting later this month and they will be presenting to Council a Phase I project on the Springfield Pike streetscape upgrade. Construction would be in the spring of 2002.
Finance Committee - no report
Planning Commission - Mr. Galster said they met January 9. The first item of business was approval of the final PUD approval of the Cassinelli Square redevelopment of Building D which is the former cinema building. That building will be torn down and rebuilt into retail or possible restaurant usage. It will be a smaller building than what is presently there. That was approved 7-0. The next item was approval of the final plan development for Springdale Plaza. There were not a whole lot of changes. That was approved 7-0. The last item was concept plan discussion of a proposed medical office building at 11350 Springfield Pike. This is the vacant, triangular piece of land between Sterling House and the driveway to our salt bin. Some pediatric people were talking about moving from across the street and also some dentists. No vote was taken.
Board of Zoning Appeals Ė Mr. Squires reported they met last night. Mrs. Jean Riley, 785 Tivoli Lane requested a second utility building on the side yard of her property at that address. Mrs. Riley followed all the rules in getting a permit for her shed but upon inspection it was discovered a shed was already there. Only one shed is allowed on a property. After considerable discussion we allowed her to use the two sheds for two years. At the end of two years we hope she will be able to remove some of the materials and thus, take down the second shed. Anthony Potts, 11771 Van Camp Lane wants to build a patio enclosure on the back of his lot which is already non-conforming. The setback is approximately 33 feet. If he puts his patio enclosure there the setback will be 19.3 feet. This variance was approved with some stipulation that he cannot use any high intensity lights there that would be close in proximity to the neighbors. Harry Arcaro wants to build three homes on three lots on Cloverdale. The first one is 639 Cloverdale and Mr. Arcaro was proposing building a 1,300 square foot home. After discussion it was determined that Mr. Arcaro could and should build a 2,000 square foot home on that lot and remain in compliance with the Code. The other two lots are approximately the same depth but a little less in width. After some discussion it was determined that bi-level homes with a square footage of 2,000 square feet could be built on those lots as well. Mr. Arcaro said he would do that and abide by the Codes of the City of Springdale.
Mr. Danbury said it was my understanding that the previous owner of 639 Cloverdale was planning to sell that as two separate lots. You say Mr. Arcaro is just going to use it as one lot. Mr. Squires said yes, that is correct.
Mr. Galster asked is the patio enclosure on Van Camp is a year round enclosure?
Mr. Squires replied no, it is not heated.
Board of Health Ė Ms. Pollitt stated the agenda included a video that depicted the role of the local Board of Health. We also had pool samples, animal nuisance control and nurse activities and caseload reports.
O-K-I - no report
Mayorís Report Ė Mayor Webster said we have had a vacancy on the Parks and Recreation Commission since the resignation of Carmen Daniels. It gives me great pleasure to introduce the person I have chosen to replace Carmen. Carol Marlar lives at 128 Rosetta Lane. She retired from the City of Cincinnati Recreation Commission on August 1, 1999. She worked for CRC full-time from October 1968 to July 31, 1999. She directed activities at various centers throughout the city. She ran the Retired Senior Volunteer Program for approximately 9 Ĺ years. She was the grant coordinator for Recreation in charge of the Title III funds for the senior congregate meal programs, recreation activities and Senior Olympics. Also, during part of that time she was the facility director for the Butterfield Senior Center. She was in middle management with the City of Cincinnati from 1982 Ė 1999. She has a husband and two daughters; Christina, 14 and Ashley, 11. She sent this letter to me several months ago and asked me to keep her in mind in case we had a situation come up. I think the City is very fortunate to have someone standing in the wings waiting to step forward and serve the City. Carol, we appreciate you volunteering for this and we welcome you to the board and the Cityís family.
Mayor Webster continued I would like to review with Council our Food for Fines program. Chief Laage has given me a summary of this. "The year 2000 Food for Fines was again a great success. It was the fourth year we conducted this holiday program, and by far, this was the most successful in helping needy families and food banks in the Springdale area. The City of Springdale has been most gracious in allowing the department to sponsor this program. We have received very favorable comments from other law enforcement officials and residents regarding the programs. Other programs in neighboring communities have also been patterned after the Springdale Food for Fines Program. The loss revenue could well be spent in needed areas; however, the example you are setting as our City leaders by helping some of the less fortunate of our community during the holiday season is very indicative of the caring, concerned community we live in. Itís a pleasure to offer this special thank you to all of our City leaders for their willingness to make Springdale a better place. From all within the Police Department we sincerely thank you." Mayor Webster said this year they had 335 citations that took advantage of this versus 231 a year ago. The dollar cost of the fines was $12,840 versus $9,265 a year ago. They helped three families and three organizations were assisted. Speeders took the most advantage of this program. We gave up $2,970 in speeding fines; 47 ACDs at a little over $2,000; traffic control devices at $1,485. On behalf of the Administration Iíd like to say we appreciate the City going along with that. Iíd like to thank the Police Department for initiating that. I understand Patrolman Maupin is the one who put that together.
Mayor Webster stated today I received a certified letter from Warner Cable. It reads "Dear Mayor Webster: Your community has granted a franchise to provide cable service to a subsidiary of Time Warner Inc. Previously, we wrote to you and informed you of the planned stock-for-stock merger of TWI and America On Line (AOL), in which each of TWI and AOL would merge with some subsidiaries of a newly formed holding company, AOL Time Warner Inc. Please be advised that on January 11, 2001, the merger of TWI and AOL closed. As a result of the merger, both TWI and AOL are now wholly owned subsidiaries of the new company, AOL Time Warner Inc.
I would like to take this opportunity to assure you again that following this merger the franchisee will continue to be bound by its obligations under the franchise, subject to applicable state and federal law.
If you have any questions, or if we can be of any assistance to you, please do not hesitate to contact me at (513)489-5083 or Pamela McDonald at (513)489-5908. We value the fine relationship we have with your community, and look forward to continuing to do business with you in the future. Very truly yours, Jennifer Mooney, Vice President of Public Affairs"
Clerk of Council/Finance Director Ė Mr. Knox said all Council members, the Mayor and Administration have received a copy of the audit report. You may remember, in 1998 the auditors said we should audit some of the businesses to make sure that the proper amount of tax money was being paid to us. As you can see by the report, the company did quite well. There was a minor bookkeeping thing we have informed them of, but otherwise, everything came out within the auditorís reasonable range.
The other item Iíd like to mention is that some of the residents of the City may be aware that it was possible to receive a license for a low powered radio station. The Federal Communications Commission had opened up this possibility. One of our residents, Steve Daugherty, who works with me, is looking into this quite closely. We got together, took a look at this, got the information needed, and without committing the City to it, we looked to see if it was possible. The House of Representatives stepped in at the last minute and under the new rules we are not eligible to receive one of those low powered radio stations.
Administratorís Report Ė Mr. Osborn said, you may recall as part of the budget presentation, we provided Council with some additional information and background on our strategic planning process and our efforts to do performance measurement. Earlier in 2000 we had a presentation by our consultant, Management Partners, on the work that we accomplished last year in bringing general training to the organization regarding performance measurement and then exercising a pilot project with two programs within the Public Works Department. Weíd like to continue that process and extend that training to the remaining departments of the City. To give you some scale, the project in the Public Works Department identified two programs within that department that were going to be measured. Keep in mind that these programs are elements of the mission statement, and goals and objectives are organized under these programs. We then use these goals and objectives to identify measurable values that help us assess whether or not the program is successfully being undertaken. City-wide we have 27 such programs that we have identified. Weíd like to go forward in 2001 and continue this training. I had budgeted $25,000 for this cost. The proposal came in at $28,830. With Councilís consent I would like to ask for legislation at your next meeting so that we can begin this training as early as possible in 2001 because it will take time to go through all of the departments, rather than try to catch them all at one time at the end of the year.
The second item I have is to report on a meeting today at the Ohio Department of Transportation headquarters in Lebanon, Ohio. The City was represented by Dave Butsch and me; the Garden Club represented by Joan Knox and Marcia Sherry. We met with ODOT officials to discuss the legacy tree planting program. You may recall again that this item was at least referred to in the 2001 budget cover letter, where I was mentioning the fact that we were looking at extending our landscaping program into the interstate area. The program itself sets aside $500,000 a year for the next three years to fund these types of efforts. The interstate interchanges qualify as state property. The process involves the jurisdiction applying for eligibility under the program. The State of Ohio would then provide the landscape architect to look at the area that is being considered and come up with a plan. The State of Ohio would then provide all the planting materials. To give you some magnitude of the type of project we are talking about, a first-time applicant could have up to 250 trees and 10,000 daffodils. We are not restricted by that. We are considered to be a jurisdiction that has had previous planting projects in cooperation with the State so we are not limited by those numbers. We could conceivably see quite a number of trees planted within the interstate area. The idea would be to develop a master plan for the SR 4/I-275 interchange and then, perhaps take on a quadrant at a time because those areas are very, very big. Itís going to be surprisingly ineffective to some degree, when these plantings are first put in, because we are dealing with such a big area. We had some discussions today about things the State has done in other areas. If you have had the opportunity to drive up I-71 this year, for about twenty miles they planted sunflowers on both sides of the expressway. One way to get an immediate impact from this would be to plant a large field of sunflowers in the infield. I learned today that you canít plant sunflowers in the same place two years in a row so youíd have to let them migrate around the infield. That would be just one of the short term types of planting. There are certainly more longer term goals with trees and entry points. The next thing we want to do is hold a meeting with the Garden Club and our streetscape planning team from CDS because there is considerable overlap. We are talking about doing a streetscape along Springfield Pike and the northern terminus of this streetscape is the interchange. We want to make sure everyone knows what the other parties are doing and we want to coordinate this effort. While the State provides the planting materials, the City has to provide the manpower to plant the material. The City would use our heavy equipment to plant the trees. We would then use volunteers through the Garden Club and Hamilton County Extension Service to plant the lighter planting materials; the shrubs, grasses, bulbs, drop the mulch, etc. Apparently, this is not unusual and our Garden Club representatives indicated that they could raise the volunteer force through their Garden Club associations and the Hamilton County Extension Service. The bigger issue to focus on is our long-term responsibility. Once this is in place, itís our obligation to maintain it so we have to be ready to make that commitment. As part of that process we want to work up what we anticipate our annual costs to be to maintain this landscaped area before we commit whole-heartedly to it. As we develop additional information we will continue to come back to City Council. It looks like a pretty exciting program that has potential.
Mr. Vanover asked would that plan include the removal of the honeysuckle patch in that quadrant?
Mr. Osborn replied I donít know.
Mr. Vanover said that would be rather disheartening for a whole host of starlings and other feathered friends that roost routinely in there. I think itís a great idea. Maybe we could have a weekend like the garage sale and have a community planting day.
Mr. Osborn replied I think the Garden Club plans to organize this as a public event where we attract volunteers and promote community spirit.
Mayor Webster said I would like to compliment the Garden Club for coming forward and leading the charge here, but I think we need to keep in mind that right now we have zero responsibility for those cloverleaves. They are mowed and maintained by the State of Ohio.
Mr. Osborn said we mow them now. Itís their responsibility but we have been mowing them.
Mayor Webster said we could ignore it and let the State do it. Once we take this State grant it becomes our responsibility. If some future Council comes along and has money constraints and/or not enough Street Maintenance help, this will have to rank right up there with snow removal and it has to be done.
Mr. Osborn said Iíd like to look at the contract but I think the penalty is that they will come in and take away your material.
Mayor Webster said I think we should take a look at it. I donít think itís all wine and roses.
Mr. Danbury asked would there be the possibility of using some dollars in the future towards some sound barrier type trees along the interstate?
Mr. Osborn replied we can apply for funding for trees for landscape purposes and situate them in a way that we may get some acoustic benefit from them, but I guarantee
you that the State of Ohio will not recognize that as soundproofing. They have taken a position that trees are not a means of soundproofing. You use walls or mounds. That program is out there but the funding is now 50% local and 50% state. They will come down and talk to us if we have an interest in it but you know from the last meeting we held on that topic it was very unpopular. There are some setback requirements on the trees but I would think that is an eligible idea.
Law Directorís Report - no report
Engineerís Report - no report
COMMUNICATIONS - none
COMMUNICATIONS FROM THE AUDIENCE
Rich Bauer, 665 Yorkhaven Road, said I am here representing the Springdale Youth Boosters. Iím the new president of the boosters. I am here to announce that the Youth Boosters have been working with the Parks and Recreation Department in putting together a special event for next month. Monday, February 12, we are hosting an evening with Marty Brenneman, the Hall of Fame broadcaster. It will be at the Community Center. The doors will be open at 5:45 p.m. Refreshments will be served from 6:00 to 7:00 and Marty will speak at 7:00 p.m. He will take questions and answers from the crowd after he is through speaking. We hope the community will come out and listen and learn a little about the local legend. He will also talk about the 2001 Cincinnati Reds. The tickets are free. You just need to visit or call the Community Center at 346-3910. Weíre hoping the community will come out in force and we believe that Marty Brenneman is a speaker who will appeal to old and young alike. Heís well-known within Cincinnati.
Presentation Ė Electric Deregulation Ė Ralph Hefner, Cinergy
Mr. Osborn said Cinergy has made an offer to all jurisdictions and to other groups to provide public presentations on electrical deregulation. He is our business representative to Cinergy so we work with him on a regular basis. Ralph Hefner is here this evening to give us a better understanding of what electrical deregulation means in Ohio.
Mr. Hefner said I would like to thank you for giving us the opportunity to come out and give you this presentation on deregulation. Itís gotten a lot of bad press lately with California. California did invoke rolling blackouts today. Just so you know, Ohio legislation is totally opposite. Cinergy is a holding company with Indiana, Kentucky and Ohio. Ohio is the only portion of our complete portfolio that is deregulated. The CG&E territory is what has been deregulated. We believe it will drop prices in the long run. It will encourage innovation; the ballard fuel cell, windmills. Solar energy may come back. We think all that is going to help. We were losing economic development to bordering states. Prior to January 1 I like to say we owned you. We produced the energy, we transmitted it across the transmission lines, down through the secondary distribution lines to the meter. You had no choice. As of January 1 you now have three components. You have the generating company, distribution and transmission companies. The generating company is the portion that has been deregulated. They are no longer under PUCO control. The transmission company is going to control the amount of power on that grid. They will know whatís coming across the grid, whoís selling it. The distribution company is CG&E, the poles, wires, reading meters, emergency calls. You wonít see any change at all in that part of the business. We will continue to provide the distribution, billing and metering service. They will stay under PUCO control and under the regulated arms of CG&E. The legislation allows for the PUCO to review the billing and metering part in 2003 to see if it wants to make that a competitive business. CG&E will act as a default supplier if anything should happen. So if you went with a different supplier and they were not able to supply you that day or that hour, Cinergy automatically picks you up. We will work with the supplier to find out why he defaulted.
Our goal is to lose 20% of our load by customer class, residential, commercial, industrial and other governmental institutions. It sounds like a lot. As of today 14.1% of the governmental load has shifted. On the large industrial .4% shifted, commercial 5%
and residential, zero. We are offering a shopping credit. We will pay you to go to somebody else. It seems strange for a business to pay the customer to go to a competitor but they want to force competition. They want to make sure that the market is flowing. Residential customers have received a 5% reduction in the generation cost component of their bill. Residential, commercial and industrial will see no increase in the generation, transmission or distribution part of the bill through 2005. That will be twelve years since Cinergy had a rate increase.
Mayor Webster said itís my understanding that the problem in California is that the customers have been guaranteed a frozen rate but there are no price controls going beyond that so the supplier is getting zapped.
Mr. Hefner responded there is a fundamental difference in the way the California legislation was designed and this one is designed. In California they only deregulated the wholesale part of the business. They did not deregulate the retail end of the business. They froze the residential. In Ohio they deregulated everything.
Mayor Webster stated you are guaranteeing your customers that they will not see a rate increase in five years. What happens to CG&E if the wholesale price goes up substantially?
Mr. Hefner replied we have capacity to handle it. Cinergy is a non-regulated entity. They are not allowed to sell retail power to customers inside CG&Eís territory. They are only allowed to sell outside the territory.
Mr. Danbury said itís always been my impression that CG&E was a generator. Your goal is to lose 20% of your customer load here.
Mr. Hefner said and to pick it up somewhere else.
Mr. Danbury said you are going to win.
Mr. Hefner stated if we play our cards right. As this market opens up we will probably be in more of the wholesale market. Weíll sell big chunks of power to a supplier.
Mr. Danbury said you will have more cash flow coming in. You can reinvest in generation of a power source. In the long run you are in competition with other companies and after the year 2005 the consumer can actually see a reduction in cost.
Mr. Hefner said they may see a reduction before that. You can start shopping today and with a shopping credit, you could see a savings now.
Mr. Vanover said you are talking about capacity of the system. My first question is where is the split between transmission and distribution?
Mr. Hefner said the transmission is the main lines coming out of the power plants to the substations.
Mr. Vanover said I know the old CG&E typically ran their system at about 85% capacity. Iím hearing that thatís not happening right now, that we are running at a higher capacity.
Mr. Hefner replied our margin is less today than when we were regulated and had a guaranteed return coming back from the Commission. If you are a monopoly you can build that cushion in. Weíre probably down to about 10% today. Two years ago when it was 1000F for a week or two we were close to our capacity. Since then we have put on about 2,000 megawatts of load and we are looking at putting on peaker plants.
Mr. Vanover asked if suddenly we have lost our 20% buffer and weíre still growing, whereís it going to come from?
Mr. Hefner answered our load forecasters look at that and project it out. They are working today 4, 5, 10 years from now. We are looking at where we can put more
peaker plants. They are jet turbine engines. We buy them from GE, put them up and put a high powered gas line to them. They can be up and operational in five minutes.
Mr. Osborn said Ralph, when you were answering one of the Mayorís questions, you talked about how if Cinergyís generation costs went up, CG&E would be able to buy from other suppliers such as TVA. Are these other suppliers deregulated or are they regulated?
Mr. Hefner replied they are regulated but wholesale power has been bought and sold on the market for years. Weíve sold power in the past and weíve bought power.
Mr. Osborn asked do you pay a premium for that?
Mr. Hefner said yes, but it is usually for only a few hours a year. When you look at the cost of a $500 million plant, do you do that for just a few hours a year?
Mr. Osborn said part of the logic of deregulation is, if our local supplier, Cinergy, starts charging a lot of money because they can sell it some place else for a lot more money, causing the cost per kilowatt hour to go up, CG&E has the ability to buy it form another supplier. Iím talking about what if the rate stays up for a year?
Mr. Hefner stated our capital trading and power group has already looked at that. We have long term contracts already purchased to cover for the next five years. They look for those few peak hours every year and go out and buy ahead of time. There should be no difference in the price. Weíll have to be efficient because if you canít ask for another rate increase for another five years and weíve already gone seven years without one, it makes it tough.
Mr. Osborn asked what happens after five years if you incur debt during that time and you can prove that you lost money for five years?
Mr. Hefner replied we can ask for an increase, not on a generation portion, but on the distribution and metering side. Thatís all that will be regulated. The PUCO will put in very stringent performance measures that we have to meet on a distribution side that we have to meet for an increase.
Mr. Osborn said you said all the rates would be frozen for five years.
Mr. Hefner said if you stay with Cinergy, distribution, transmission and generation are frozen. If you shop, distribution is frozen. Transmission will be added into your supplier charge. We know what we are in for. We know it will be tight and we have to work efficient. We also know that the money we may lose here, we have the opportunity to make up with other customers.
Mr. Osborn said I assume our residents will start being solicited by other competitive utilities. How will that happen? How soon will it happen?
Mr. Hefner replied most of the approved marketers who have been approved by the PUCO and Cinergy have not even started to go after the residential load. They are looking at maybe late this spring. They probably will want to look at an aggregated pool. The residential part is going to be the hardest part to get to switch. They are very comfortable. They donít really want to deal with the contracts. Even the large industrial and commercial are not switching like we thought they would. If we donít meet the 20% load by 2003 the Commission will look at it again and possibly change the shopping credit. They are pushing this.
Mrs. McNear asked if you change the power supplier will you be billed separately or will you just get one bill?
Mr. Hefner stated you can do it either way. You can have separate bills or you can have the supplier right on the Cinergy Bill.
Mrs. McNear said if you do have a different carrier, is there protection for the customer with regard to power outages? Over the past three or four summers we have had 3-5 power outages that exceeded two hours.
Mr. Hefner said the supplier makes no difference. Thatís the system.
Mrs. McNear said you also mentioned a 5 cent wk rebate.
Mr. Hefner replied thatís 5 cents per kilowatt hour. Thereís a sheet in the back of your package that tells you what your actual credit is per kwh. It explains how it is calculated.
Mr. Squires said Iím just perusing through the package. On page 19 it says you may switch to another supplier at any time. How easy is it going to be to do that?
Mr. Hefner replied it will be very easy. You contact a supplier. The supplier will get all your information which he can get once you give him your account number and meter number. He can go into our web site and obtain a twelve month history of your usage. He will work your price up on that. At that point you sign off on an electronic transfer. The supplier sends that to Cinergy, who processes it, and sends both the supplier and you a certified letter stating that we have accepted that supplier as your supplier. You can go into the Cinergy or PUCO website and find a supplier and send them a copy of your bill and ask for a quote.
Mr. Squires asked what if you donít have a computer?
Mr. Hefner answered there is a phone number too.
Mr. Squires said on page 21 it says municipalities, schools, civic groups, and other organizations are allowed to aggregate. It says voter approval is required to opt out. Does that mean voter approval in Springdale?
Mr. Hefner replied yes, for that to work. The City of Franklin has done this. You actually put a referendum on the ballot stating that the City of Springdale wishes to be the aggregator for all residential, commercial, industrial load within its boundaries. You also have to give them an opt-out provision. Some of the larger industrial load businesses opt out.
Ms. Pollitt said thank you for coming tonight. This is really confusing and I think you bringing this deregulation on the heels of whatís happened in California, is even more confusing. I know that the gas was deregulated. How many CG&E customers switched gas suppliers?
Mr. Hefner replied the last I heard it wasnít that many.
Ms. Pollitt asked can you tell me why?
Mr. Hefner answered the push from the state wasnít there. The gas choice program is very limited to what can be done with it. Itís an eight month program. Eight months of no use and four months of heavy use. The electric you use more in the summer than in the winter unless you have electric heat so your load is higher, your usage is higher and your dollar amount is higher; therefore, it makes more sense to shop. You should see a better savings.
Ms. Pollitt asked have you switched yet and/or do you intend to?
Mr. Hefner replied I have not switched yet. It depends on what my price is. I know what my threshold is.
Mr. Vanover said the benefit of the aggregate is bigger numbers is a bigger package to sell. The price you get is dependent upon that number. What happens with the opt-in, opt-out? If a group of cities goes together and one decides to opt-out, then at the next negotiation, the load is less.
Mr. Hefner said the whole theory behind aggregation is if you can get enough energy together, that aggregator can then go to four or five marketers and ask for the best price.
Mr. Vanover stated I too switched the gas and Iíve had three different suppliers in one-two years. What guarantee do we have that we wonít see that with these certified letters?
Mr. Hefner replied the financial is behind this for one. Most of the people who are getting into this market have been in it. The financial backing and bonding they have to put up is pretty substantial. Natural gas has to be drilled and shipped, and you can store it if you want. Electrons you canít store. Itís a constant generation of it. If a supplier would lose his load from a generator, itís his job to find a back up. If he cannot find a back up for that load he would default back on our system and then weíd go back on the supplier and the supplier makes good. You donít get harmed at all.
Mr. Vanover asked whoís going to be responsible and pay for the upgrades.
Mr. Hefner said CG&E has to manage that. Youíll see changes in how we handle new developments as far as cost. There may be a little more cost by the developer as time goes on. Mr. Hefner said revenues paid by utility companies and taxes to the municipalities probably slowed down deregulation more than anything else. Right now we are taxed at anywhere from 88% to 100% on our assets where normal business is taxed at 25%. There will be a kwh tax on your consumption. Youíve always paid it; now itís going to be broken out and you see it. There will be a new franchise tax and consumption tax which youíll see on your new bills when you get them. The difference starts after 2005. After 2005 that tax starts to decrease through 2016 when itís gone. Legislation has to look at that again in 2005 to see how they are going to make that tax up.
Mr. Danbury said the cable has to have a franchise agreement. Any city can have multiple cable systems. Weíll be having multiple companies coming in here.
Mr. Hefner said you will have multiple marketers come in. They may have one or two employees and no office. They will be using our lines to make money. The franchise agreement is for the installation, maintenance, repair of the poles and wires. There is no franchise fee that Cinergy pays Springdale.
Mr. Osborn said that is a holdover from the fact that it was a regulated utility and to some degree still is. We looked at that issue when we did the re-franchising of our cable company. We were advised by our attorneys that the utilities are exempt from franchise agreement under PUCO regulations governing utilities either adopted by the State of Ohio or promulgated by the PUCO.
Mr. Hefner said if you need me to answer additional questions Cecil and Derrick know how to reach me. If you want me to come back and give additional information to the Public Works Committee or Finance Committee or community based organizations, Iíll set it up.
ORDINANCE NO. 2-2001 "AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO ENTER INTO A CONTRACT WITH CDS ASSOCIATES, INC. FOR ENGINEERING SERVICES NECESSARY FOR THE 2001 SUMMER STREET PROGRAM AND DECLARING AN EMERGENCY"
Mr. Squires made a motion to adopt and Mr. Wilson seconded.
Ordinance 2-2001 passed with seven affirmative votes.
ORDINANCE NO. 3-2001 "AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO ENTER INTO A CONTRACT WITH BHE ENVIRONMENTAL, INC., FOR THE REMEDIATION OF SOIL AND ASSOCIATED GROUNDWATER WORK AT 370 W. KEMPER ROAD (FORMER BURNS PROPERTY) FOR $64,720.00 AND DECLARING AN EMERGENCY"
Mr. Vanover made a motion to adopt and Mr. Squires seconded.
Mr. Osborn said I want to give you an update of our schedule for this property. We have taken down the residential structures. The commercials are presently being prepared for demolition. We first have to get the utilities to come in and disconnect. Cincinnati Bell is free and clear but we still have Cinergy and Waterworks to take care of. Waterworks has to pull their meter and remove the service all the way out to the line in the street. If we leave those lines in place weíd have to pay a price per month on those unused lines until they are taken out, and they are not really needed. Our schedule is still for the utilities to be cleared and removed by the end of this month. We are anticipating doing the environmental clean up of the site in February. In looking at the proposal I would like to direct you to page 4. It sets out the break out of price quoted. For 550 tons that were identified as part of our Phase II study the cost is $64,720. Thatís the analysis, excavation, transportation and disposal of material. Some of the things that might come up that might cost us additional costs involve additional ground water. Right now it is anticipated that the ground water will be of such a magnitude that it can be mixed in and absorbed into the soil and trucked away. If we run into excessive ground water they will have to come back to us with a more complex way of disposing of the ground water.
The second thing is we are identifying an area to be removed based upon tests made by geo-probes and then calculations as to rate of diminishing values as to how far out that perimeterís going to have to go to get to one part per million. If we find we have a hot spot weíll still have to continue excavation. The 550 tons is our best estimate to start with but we may run into field conditions that cause more material to be removed. There are also costs associated with demurrage, truck layover, etc. Demurrage is, if for some reason we impede the truck and it has to sit here idle, thatís on our clock. An unused truck is a truck that drives down from a disposal site, isnít needed, and is sent back. Those have been planned into the first segment with an excavation schedule. If something should throw that off we will get into demurrage. Itís not something we can predict. The $64,720 is our base price. Hopefully we can stay at that base price but there are field conditions that can cause that to change.
Ordinance 3-2001 passed with seven affirmative votes.
Mr. Vanover said I donít know how many of you saw the article on traffic control in The Enquirer. Once again, it reflects the forward thinking of the people who were here ahead of us. We were on the cutting edge of traffic control technology and I was unaware that we are the only ones who have a constant monitoring situation. I hate to think of traffic messes of the past if we had not adopted that philosophy. Hats off to Wayne, our engineer; and our predecessors for setting things up and putting us in that position.
NEW BUSINESS - none
MEETINGS AND ANNOUNCEMENTS
Capital Improvements - January 29, 7:30 p.m.
COMMUNICATIONS FROM THE AUDIENCE - none
UPDATE ON LEGISLATION STILL IN DEVELOPMENT
Zoning Code Amendments February 21
RECAP OF LEGISLATIVE ITEMS REQUESTED
Department Training Project - February 7
Council adjourned at 8:55 p.m.
Edward F. Knox
Clerk of Council/Finance Director
Kathy McNear, President of Council