Approved Minutes 03/24/2015

Page 65

City of Olmsted Falls

Minutes of a Council Caucus Meeting

Tuesday, March 24, 2015, at Olmsted Falls City Hall

26100 Bagley Road - Council Chambers, 7:00 p.m.

Council President Kathleen Fenderbosch called the Caucus Meeting to order at 7:03 p.m. Roll call was conducted. Councilmen Jay Linn, Linda Garrity, Bob Sculac, Kevin Roberts, and Terry Duncan. Ms. Fenderbosch indicated that Mr. Pulice contacted her prior to the meeting and indicated that he was ill with the flu.

Also Present: Ann Marie Donegan, Mayor, Gregory Sponseller, Law Director, and Steve Presley, Finance Director.

Finance Committee: Chaired by Bob Sculac

a. Council Pay Raise Legislation – Mr. Sculac indicated that the only item on the agenda for discussion is the legislation regarding Council’s pay increases. He indicated that any changes will need to be submitted to the Board of Elections by August. Mr. Sponseller indicated that the deadline is 90 days prior to the filing deadline which is August so the deadline is the end of May. Mr. Sculac indicated that he would like this legislation to run three readings. As a reminder the last time Council’s salary was increased was 2002, which was 12 years ago. He indicated that at that time the salary was increased from $3,600 to $4,500. He would like to propose that Council’s salary goes from $4,500.00 to $7,500.00 which is a $3,000.00 increase. If you multiply that it comes to approximately $250.00 per year increase over the 12 year period. He indicated that when he and Mr. Pulice researched this issue three years ago Olmsted Falls is the lowest paid Council in the 57 communities in Cuyahoga County. By raising the salary to $7,500 we will still be the lowest paid Council. He indicated that at some point Council needs to look forward to those who will occupy the seats in the future. He indicated that personally he is not in this for the money but there is a lot of time involved. He did speak with Mr. Sponseller who feels that this Council spends a lot more time on issues than many Council’s he has worked with. This figure is not absolute but his opinion and would like to hear opinion’s from other Councilmen.

Mayor Donegan indicated that she believes the increases are long overdue and believes the budget will support this increase. Her administration will continue streamlining and bring more income in. She recommended anywhere from $7,000 to $8,000 per year she would also encourage Council to put a percentage increase on an annual basis, which of course can be retracted from any future Council members. This increase could be annually or per term so this does not have to become a political issue. This issue is equitable pay for the job performed. She supports the decision and would be happy to introduce the legislation.

Ms. Fenderbosch indicated that she also supports the increase. After researching the communities this Council, as well as the Mayor, are the lowest paid in this area. She inquired if Council could place incremental increases in the legislation because she feels that you will lose the ability to have this issue discussed. Mr. Sponseller indicated that a formula based for elected officials has been ruled by the courts to be permissible. This will also eliminate the issue from coming to the Council floor in the future. He has experienced this issue both ways, where it was set by a formula as well as a specific amount during particular terms and then set prior to the deadline for the subsequent term. This issue has not been discussed since March of 2001 and acted so the increase would take effect in January of 2002.

Mr. Roberts indicated that if we fix a percentage we would expect anybody we are negotiating a collective bargaining agreement with to have the same percentage. If Council gives themselves 3.5% then they will expect 3.5% and they are paid as a group 100 times more than Council which is something we should be mindful of. Also, one way of looking at pay is pay per citizen. There was an article entitled “How Much Does Your Mayor Make” and it was broken down per citizen. He indicated that with this form of Council Government we have a lot of responsibility since we have a strong Council form of government. Then has also been a lot of discussion regarding PERS and he understands that to some individuals this does matter. Mr. Sculac indicated that PERS you are vested at 10 years. Mr. Sponseller asked if Mr. Roberts was referring to what the minimum requirement is in order to get a year vested. Mr. Sculac indicated that he believes it is $7,200. Mr. Roberts stated that an individual needs to make $7,200 and if you make that over two years they will receive one year vested. Ms. Garrity indicated that Council used to receive one credit but as of January, 2013 we only receive ½ a credit per month. The threshold use to be as long as you earned $200.00 per month you would earn one service credit per month. As an elected official you have to participate in PERS Council cannot opt out.

Mayor Donegan stated that the non-union employees received anywhere from 1.5% to 2.5% increases which is the first time ever that everyone did not receive the same increase. Their increases were based on their performance evaluations. We are setting the tone with the collective bargaining units and there are other things that they enjoy that others do not so she is not necessarily concerned with setting the City up for any arguments. As far as the per citizen if you have a lower population that would mean that each resident pays a higher percentage. She indicated that Council members if Fairview Park use to receive $7,000 and $7,500 and they were increased to $12,000 and $12,050.

Ms. Garrity indicated that Fairview Park and Lakewood included the healthcare portion in their increases. We are not looking to include health care we are just looking at increasing salaries to $600 per month to include that one service credit per month. A lot of the other council’s legislated for pay raises’ with health care benefits. She would also like everyone to keep in mind that if you are in PERS and social security, which she is, your social security benefit will be reduced by your PERS.

Ms. Duncan indicated that this issue will come up on the ballot at the same time the City has three renewals on the ballot which she is concerned about.

Ms. Fenderbosch indicated that she is in favor of the increase but she wants to make sure that this issue and Council’s duties are explained thoroughly to the residents so there are no misconceptions. Mr. Sculac indicated that Olmsted Township Trustee’s salary is $16,000 per year plus medical benefits which could cost between $18,000 and $20,000 for a family plan. Ms. Fenderbosch again reiterated that the increases should be thoroughly explained. She does not want the residents to believe that each member of Council attends meetings on Tuesday nights for a couple hours and that is all. They need to understand that amount of work involved in being a Councilman. Mr. Sculac indicated that even bargaining units expected some type of increase this year. He stated that the Mayor was also kind in terms of what the non-union employees received this year. He stated that most individuals are looking for some type of increase even if that increase is 1%.

Mr. Sculac indicated that Council’s in the past are reluctant to approve raises. The last time this issue was reviewed there was another issue on the ballot and at that time it was decided that this would be discussed at a later date. But, with the number of ballot issues the City has there is always going to be something on the ballot. He stated that in November the City will have to place the hospital issue back on the ballot and Polaris will also being place an improvement levy on the ballot in November for the first time in 31 years. He indicated that the timing may never be right but at some point Council needs to make changes. Mayor Donegan stated that she feels very confident in cost cutting measures and other projects that will be coming forward. She feels very confident in her ability to keep up the pace of bringing other revenue in. Obviously, when you apply for a grant you are not sure if you will be awarded but we have good expertise. She does not know if there will ever be a good time and in order to avoid this issue in the future she would suggest Council consider increases on annual basis or each term.

Mr. Roberts indicated that if you work 10-20 hours per week as a Council person working on phone calls, emails, and resident issues. At 10 hours per week the current Council person’s rate is $9.00 per hour. He indicated that if the Council salary is raised to $7,500 per year that equates to $15.00 per hour.

Mr. Sponseller stated that a lot of this will come down to presentation when the media is present especially in light of the levies being on the ballot. In summary there are three fundamental issues that clearly justify the increase. The first one is there has been no increase since 2001. The second is the fact that Olmsted Falls City Council will still be the lowest paid Council in the county. Third, under the Charter this is a very active Council that performs a significant amount of work.

Mr. Sculac would also suggest changing the language in Section 2 to state “commencing on January 1, 2018” rather than 2017. This will prevent having another increase midway through the term. Mr. Sponseller stated that the legislation was drafted to provide Council with a template. Mr. Sculac indicated that due to the fact that there will be a significant increase for the next term he would prefer not increasing again for the 2nd year of the next term he would prefer waiting until the 2018 term. He indicated that the Council President also makes an additional $500.00. Mr. Sculac proposed Council salary be increased to $7,500 with an additional $500.00 for the Council President and then a 2% raise commencing the beginning January 1, 2018 and at the beginning of each term moving forward. Mr. Sponseller asked if the Council President’s pay should remain at $500.00 over a Council person or is the 2% being applied to the $500.00. Mr. Sculac indicated that he would suggest leaving that at $500.00. Mr. Roberts indicated that would be less than 1% each year. Mayor Donegan suggested the 2% should be given each year beginning January 1, 2018.

Mayor Donegan requested that Mr. Presley develop talking points for the increase from a financial perspective. Ms. Garrity stated that another issue to consider with the talking points is the fact that other cities provide their Council members with Ipads or laptops and this Council utilizes their own personal computers. She has personally had expenses due to viruses and we do not receive cell phone allowances for our personal phones. We do bear expenses related to this position.

Mr. Sponseller would like to be clear on the revisions. Commencing January 1, 2018 is Council suggesting a 2% or 4%. Mayor Donegan indicated that the suggestion is 2% beginning January 1, 2018 with 2% increases thereafter.

Insurance Committee: Chaired by Terry Duncan – No Updates

Legislation Committee: Chaired by Linda Garrity

a. City Website - Ms. Garrity indicated that two pages have been designed and forwarded to Council. She understands that Ms. Duncan has submitted comments. She also asked if the colors would be tied into the new logo, if not, she would suggest that ABR get involved because they have picked historic colors in the past and we could ask them to comment on the colors.

Mayor Donegan stated that the logo, branding, colors and fonts are part of the branding campaign. She requested quotes from Revize to switch out the fonts, colors and logo. He indicated that the cost could range anywhere from $500.00 to $800.00. The content is written and in draft form for the departments to review. But, Council needs to determine how their page will look. If the cost to switch out the previously stated items is $500.00 she will agree because it is more important to her to get the website up and running.

Ms. Garrity asked who would be responsible for writing the content for the Council page. Mayor Donegan indicated that Council could or she will put Council in contact with Brian Wright, who is the individual who wrote the department’s content.

Miscellaneous

a. New Service Garage (R.F.Q.) – will be discussed at the Council meeting.

Adjournment

Mr. Sculac moved to adjourn; Ms. Fenderbosch seconded. Poll: 6 ayes; 0 nays. Motion carried.

The meeting adjourned at 7:43 p.m.

Kathleen Fenderbosch, Council President Angela Mancini, Clerk of Council