Finance Committee

Finance Committee Tuesday, January 16 , 2023, 8:00 A.M. Virtual meeting pursuant to Chapters 113 and 115 of the C odified Ordinances (as amended in Ordinance 22-28) , and Resolution 22-29, enacted on March 22 , 2022. Members present: Council Member, Nancy Moore, Chair Council Member, Anne Williams Council Member, Kim Bixenstine Council Member, Carmella Williams Citizen Member, Kandis Williams Citizen Member, Martin Kolb Citizen Member, Anthony Moore Citizen Member, Ketan Patel Others present: Mayor, David E. Weiss Chief Administrative Officer, Jeri E. Chaikin Chief of Police, Wayne Hudson Director of Finance, John Potts Director of Economic Development, Laura Englehart Director of Public Works, Patricia Speese Director of Planning, Joyce Braverman Police Sergeant, Timothy Grafton Assistant Director of Public Works, Christian Maier Planner, Anna Mates Neighborhood Development Specialist, Brendan Zak Frank GoForth, League of Women Voters * * * * APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF DECEMBER 11 , 2023. Chair Nancy Moore stated that the minutes of December 11, 2023 meeting were unanimously approved. * * * * REQUEST TO AMEND THE CONTRACT WITH GPD GROUP FOR DESIGN AND ENGINEERING SERVICES FOR THE VAN AKEN BIKEWAY PROJECT IN THE AMOUNT OF $27,700 FOR A TOTAL CONTRACT PRICE OF $277,700 AND TO APPROPRIATE AN ADDITIONAL $27,700 IN THE GENERAL CAPITAL FUND . Director of Planning Joyce Braverman requested to amend the contract with GPD Group for design and engineering services for the Van Aken Bikeway project in the amount of $27,700 for a total contract price of $277,700 and to appropriate an additional $27,700 in the General Capital Fund. Implementing the Van Aken Bikeway Plan – adopted by Council in May 2023 – will result in infrastructure and safety improvements, increased ridership, and equitable transportation connections for all. The Van Aken Bikeway is a $1.8M project that will be implemented in 2024. A $1.8M construction budget of local capital funds and Northeast Ohio Areawide Coordinating Agency (NOACA) funds has been secured. In addition, the 2024 capital budget also contains $310,000 for Construction Management Construction Inspection (CMCI). Ordinance 23-55 authorized the City to enter into a contract with GPD for $250,000. This is the first amendment to the contract with GPD Group and will allow GPD to develop additional traffic counts, analysis and a summary document in response to feedback from the Ohio Department of Transportation, District 12 office. The summary document will address exactly additional traffic analysis using a new simulation tool called Transmodeler. This tool has better accuracy for modeling complex roads that have median or divided highways. It will supplement the original traffic study which was done prior to doing the plan for this. It’ll add some new traffic counts at Kenmore and Van Aken. The Transmodeler will do a crash analysis for the entire corridor. It will have a purpose and need statement, and this is a technical statement that ODOT requires on their documents. GPD was chosen through a competitive Request for Proposal process and is the best firm to perform this additional work. They were hired for the design and engineering services and already completed the initial traffic analysis before Toole was hired to develop the Van Aken Bikeway Plan. GPD already possesses base traffic counts and information for the entire corridor. On January 4, 2024, the Safety and Public Works Committee unanimously recommended approval of a contract amendment with GPD Group and the appropriation of an additional $27,700. Committee members had questions about the Purpose and Need Statement required by ODOT, if the additional work being conducted by GPD would address resident concerns about the Bikeway project, and if the additional work would impact the project schedule. Staff clarified the Purpose and Need Statement is required by ODOT for traffic and other studies. The additional work will provide more detailed base information and analysis for the project, however resident concerns are already being addressed by the project team through the design development. Staff noted this extra work will impact the project schedule but the team is hoping to bid the project on schedule in 2025 and is working closely with ODOT on the project timeline. Council Member Kim Bixenstine questioned when the study was initially done did Director Braverman not anticipate that ODOT would require this depth of analysis; why a fuller survey wasn’t completed at the time. Director Braverman stated that is correct. ODOT does not usually require this type of analysis. The Planning Department did that for their own information at this point. ODOT is finding this to be controversial and would like the department to take extra steps so they are satisfied that the bike lane will work. It is a complicated road; not only is it divided but one lane of traffic will be removed. There is on Finance Committee 1/16/24 Page 2 of 11 street parking plus RTA head in parking along the route. There is a lot of complications involved in this project, so the department and ODOT wants to be extra careful to make sure that this is going to work well before construction. Citizen Member Ketan Patel questioned if ODOT finds the proposed project to be controversial, does that mean there is some doubt as to whether or not appropriate approvals will be obtained. Director Braverman stated that the department will obtain approvals. There are a number of different ways that bike lanes can be done either along the curb or on the outside of parked cars. What methodology would be safest is what is in question. Citizen Member Patel requested for clarification that spending the money to continue to work towards getting a complete and final approved plan is still appropriate. Director Braverman concurred. Chair Moore stated there were a number of residents that were concerned because they use street parking and have ingress and egress to their buildings. Some of the residents obviously use the RTA parking too. The residents were very concerned about the safety aspect of reducing Van Aken from one way to two ways and the impacts on the stationary parking. They requested extra caution in the planning. The particular amendment is going to answer many of those questions and reassure residents that the City has gone the extra mile to think of everything that needs to be considered before the actual contract design is finalized. Citizen Member Martin Kolb questioned if this project was a 2024 construction project. Director Braverman stated ODOT let the department know the project will be delaying it a year. ODOT’s fiscal years are July to July, so the project may fall into the 2024 fiscal year but most likely will be moving to 2025 but is still being worked through with the City. The Finance Committee approved the request to amend the contract with GPD Group for design and engineering services for the Van Aken Bikeway project in the amount of $27,700 for a total contract price of $277,700 and to appropriate an additional $27,700 in the General Capital Fund. * * * * REQUEST TO ENTER INTO AN AGREEMENT WITH QUALIT Y CONTROL INSPECTION FOR CONSTRUCTION OBSERVATION SERVICES FOR WORK WITHIN THE RIGHT OF WAY . Assistant Director of Public Works Christian Maier requested to enter into an agreement with Quality Control Inspection for Construction Observation Services for work within the Right of Way. Within a given year, multiple utilities are performing work within the Right of Way. Since 2018, Public Works been using a consulting firm for construction observation when utility companies are performing large project in the right of way. The general scope of services includes responding to residents, following up with the utilities contractor on restoration and ensuring maintenance of traffic plans are being adhered to. Following this approach has Finance Committee 1/16/24 Page 3 of 11 allowed Public Works staff to concentrate on other activities and projects happening throughout the City. On October 30, 2023 the City of Shaker Heights solicited proposals from five (5) consultants. The intent of this service and the Request of Proposal is to have a Construction Observer onsite for projects estimated to be $20,000 or longer than two (2) weeks. It should be noted that the RFP stated there was no guarantee for a minimum or maximum number of hours in a given year. This would be dependent on work that is occurring in the Right of Way. The contract would be based on individual task orders in 2024. The contract could be renewed in 2025 and 2026 at the City’s discretion. Two proposals were submitted by the consultants on November 17, 2023, using the scoring criteria that is outline in the RFP. It was determined that QCI provided the best proposal. QCI has provided this service to the City under the 2018-2020 and 2021-2023 contracts. Public Works has been satisfied with their level of professionalism and project commitment. The request was passed unanimously by the Safety & Public Works Committee on January 4, 2024. Councilmember Moore inquired what the difference was between the construction observer and utility coordinator. The construction observer is the consultant who is onsite daily and is overseeing the contractor’s work. The utility coordinator is a Public Works project manager that coordinates the projects with different City Departments (i.e. Police, Fire and Communications), the utility company performing the work, residents and the construction observation firm. Councilmember Moore also asked if the City has ever dismissed a construction observer. While Public Works has requested a construction observer to be replaced, the department has not dismissed or terminated this contract with the consultant. The Finance Committee approved the request to enter into an agreement with Quality Control Inspection for Construction Observation Services for work within the Right of Way. * * * * REQUEST TO ENTER INTO A CONTRACT WITH HOME REPAIR RESOURCE CENTER (HRRC) FOR AN AMOUNT NOT TO EXCEED $174,600 FOR ADMINISTRATION OF HOME REPAIR GRANTS AND PROGRAMS FOR SHAKER RESIDENTS, JANUARY 2024 – JUNE 2025 . Director of Economic Development Laura Englehart requested to enter into a contract with Home Repair Resource Center (HRRC) for an amount not to exceed $174,600 for administration of home repair grants and programs for Shaker residents, January 2024 – June 2025. Of this total amount, $111,000 will be reserved as grant funds available to Shaker Heights residents for brick-and-mortar repairs. The remainder is administrative monthly fees and 10% per project fee. As a home project is completed and invoiced to the City, the City pays a 10% fee of the amount of that grant to the Home Repair Resource Center. The reason for that structure is in part to make sure that the City is incentivizing Finance Committee 1/16/24 Page 4 of 11 the completion of home repair grant programs. The administrative fee is part monthly and part incentivizing completion of home repair projects. The chart in the memorandum shows the different programs that the Economic Development department has. During a City Council work session in October 2023, City staff presented this data and discussed how the City’s home repair grant programs should be updated to reflect the realities of increased home repair costs and needs. The discussion prioritized the desire to maintain the City’s policy to help low-and-middle income households correct cited code violations, to expand availability of the Exterior Maintenance Grant citywide (previously limited to 4 neighborhoods), to increase total maximum grant amounts, and to increase income eligibility from 80% to 100% of AMI. Beginning in January 2024, the City’s home repair grant programs will be updated accordingly, as shown in the comparison chart on the memorandum. Cost for homeowners and limited purchasing power of homeowners as inflation has continued to go up over recent years. The average home repair is closer to $3,500 in the Midwest. Some of the Federal Reserve date was looked into, to make some of the decisions about those changes. The memorandum also includes some data on past usage of the programs. HRRC has managed these programs for the City for a number of years, going back decades in which the company has provided technical assistance, a tool library, contractor list, working directly with Shaker residents on education of home repair. HRRC has also administered home repair grants for the City since 2021. The Finance Committee approved the request to enter into a contract with Home Repair Resource Center (HRRC) for an amount not to exceed $174,600 for administration of home repair grants and programs for Shaker residents, January 2024 – June 2025. * * * * REQUEST TO ENTER INTO A CONTRACT WITH THE CLEVELAND RESTORATION SOCIETY IN AN AMOUNT NOT TO EXCEED $25,520 TO PROVIDE SHAKER RESIDENTS WITH TECHNICAL ASSISTANCE AND LOW- INTEREST HOME LOANS FOR PRESERVATION, RESTORATION, AND RENOVATION THROUGH THE HERITAGE HOME PROGRAM IN 2024. Director of Economic Development Laura Englehart requested to enter into a contract with the Cleveland Restoration Society in an amount not to exceed $25,520 to provide Shaker residents with technical assistance and low-interest home loans for preservation, restoration, and renovation through the Heritage Home Program in 2024. The memorandum detailed all of the services provided under the contract. The City has contracted with CRS for many years. More than $10.9 million has come into Shaker Heights since 2008 under this program for home preservation and repair. More than 1.6 million of loans came into Shaker closed through this program with a number of loans still pending; which does not include the additional pending amount. This program is very necessary to keep the City’s housing stock preserved in as well as modernized. CRS makes sure during their advising and technical assistance to provide advice about energy efficiency in particular as a priority to make sure that the older homes are efficient for modern living and needs in the climate. Finance Committee 1/16/24 Page 5 of 11 Citizen Member Patel noted his support of the program and questioned how this program coordinates with the prior program with HRRC discussed in the previous item; more importantly how is the City making sure the two organizations are working collaboratively or how much overlap is there if any. Director Englehart there is not much overlap. The home repair grants discussed in the previous item working with HRRC are much smaller. Those grants are largely to help repair violations that are cited by the Building and Housing department. The loans that are available under this program through the Heritage Home Program in Cleveland Restoration Society are usually much higher. There are some loans that are a hundred thousand dollars or more and interest rates are as low as 2% right now, which compared to traditional lending is very significant for Shaker residents. Usually the scope and scale of the home repair is large under this program. Both organizations are aware of the services each provides as well as other home repair resources across the region. Through the technical assistance part, both organizations make introductions and recommendations to residents that may be interested in the other program. Chair Moore stated many residents are ready to abandon their leaded glass windows and replace them not realizing the value of them. The contractor list that CRS provides for any resident once there is a contract established, is very valuable. CRS has the best artisan craftsmen available and this service is helpful to residents. The Finance Committee approved the request to enter into a contract with the Cleveland Restoration Society in an amount not to exceed $25,520 to provide Shaker residents with technical assistance and low-interest home loans for preservation, restoration, and renovation through the Heritage Home Program in 2024. * * * * REQUEST TO ENTER INTO A PURCHASE AGREEMENT WITH MS. KACIE LUDWIG TO ACQUIRE A CITY OWNED VACANT PARCEL LOCATED AT 3417 MILVERTON ROAD (PPPN: 735-15-030) FOR $1.00 TO BE UTILIZED AS AN EXPANDED SIDE YARD. Neighborhood Development Specialist Brenden Zak requested to enter into a purchase agreement with Ms. Kacie Ludwig to acquire a City owned vacant parcel located at 3417 Milverton Road (PPN: 735-15-030) for $1.00 to be utilized as an expanded side yard. The City acquired the parcel in May 2023 and demolished the house in 2021. Ms. Ludwig meets the qualifications and conditions for the acquisition of a City-owned property under the Side Lot Program. This property is not in foreclosure and is current on property taxes. There is no outstanding Building, Housing or Zoning Code violations. With this program, the applicant’s property will be permanently consolidated with the vacant lot. This was reviewed by the Neighborhood and Economic Development Committee meeting and unanimously recommended to Council. If the Finance Committee approves the request will then have to go before City Council for approval. Ms. Ludwig will have to seek Planning Commission approval to consolidate the parcel on which the home is located and the side yard. Finance Committee 1/16/24 Page 6 of 11 Citizen Member Kolb questioned if there are property tax benefits accruing to the City when a lot is acquired. Mr. Zak stated typically when the City acquires these lots, the City is acquiring them from tax foreclosure. The properties go through two Sheriff’s sales and then the City acquires them. The amount due on the tax bill is wiped away at that point. Many of the lots after the nuisance abatement is done on them when the house is torn down, have $40,000 to $80,000 of back taxes that are wiped away. If the lots are held for ten to fifteen years, the City is not acquiring any property taxes at that point. These vacant lots are typically valued between the $15,000 to $25,000 ranges by the County and get reevaluated when they are consolidated with the parcel that the house is on. So this would most likely net a few hundred dollars increase overall between all of the taxing authorities in property taxes. Citizen Member Kolb also questioned if the City saves if taking care of the property and lot maintenance goes away. Mr. Zak stated this correct. The Finance Committee approved the request to enter into a purchase agreement with Ms. Kacie Ludwig to acquire a City owned vacant parcel located at 3417 Milverton Road (PPN: 735-15-030) for $1.00 to be utilized as an expanded side yard. * * * * REQUEST TO ENTER INTO A PURCHASE AGREEMENT WITH MR. BARRETT HAMMONS TO ACQUIRE A CITY OWNED VACANT PARCEL LOCATED AT 3699 AVALON ROAD (PPN: 735-29-087) FOR $1.00 TO BE UTILIZED AS AN EXPANDED SIDE YARD. Neighborhood Development Specialist Brendan Zak requested to enter into a purchase agreement with Mr. Barrett Hammons to acquire a City owned vacant parcel located at 3699 Avalon Road (PPN: 735-29-130) for $1.00 to be utilized as an expanded side yard. The City acquired the parcel in November 2016 and demolished the house in 2014. There are no redevelopment plans for this lot and consider it a net plus for the owner occupant next door to acquire this lot instead of the City maintaining the lot. This item was reviewed by the Neighborhood and Economic Development Committee and approved unanimously. The Finance Committee approved the request to enter into a purchase agreement with Mr. Barrett Hammons to acquire a City owned vacant parcel located at 3699 Avalon Road (PPN: 735-29-130) for $1.00 to be utilized as an expanded side yard. * * * * REQUEST TO AUTHORIZE THE CITY TO PURCHASE TWO (2) FORD F-150 RESPONDER POLICE VEHICLES ROM STATEWIDE FORD FOR THE TOTAL PRICE OF $188,142, AS AN EXCEPTION TO COMPETITIVE BIDDING . Finance Committee 1/16/24 Page 7 of 11 Police Lieutenant Timothy Grafton requested to authorize the City to Purchase two (2) Ford F-150 Responder Police vehicles from Statewide Ford for the total price of $118,142, as an exception to competitive bidding. The F-150 Responder police cruiser is a pickup truck style vehicle that has emerged as an all-purpose unit that aids in many of the duties performed by law enforcement. As many local neighboring agencies have demonstrated, this vehicle provides the added ability to conveniently haul, store and transport many items unable to fit into an enclosed vehicle, while still performing all of the functions of a standard police vehicle. Over the past several years, we have been challenged with procurement initiatives for police fleet vehicles due to supply chain disruptions, along with a shortage of key vehicle components, which has dramatically affected the production of police vehicles. This delay has resulted in extended lead times for orders of police vehicles. We continue to feel the effects of this circumstance, which in part, has resulted in manufacturers (GM, Ford, Stellantis) requiring purchase orders in hand before they will accept any orders for vehicles, or label a vehicle from their inventory as “sold”. At this time the Police Department has two F-150 responders available through Statewide Ford, the company that provided the department’s latest group of cruises. Statewide Ford is currently holding the two vehicles with no formal commitment from PD other than moving through the process. The 2023 price of these vehicles are being honored. The two F-150 Responders will require a minimal level of upfitting (graphics, cargo vaults), as they come delivered outfitted with a package that makes them “ready for patrol”. The upfitting of the vehicles to add this necessary equipment will be purchased under a separate contract. The two vehicles are both priced at $59,071 per vehicle totaling $118,142.00 and are being held for PD to complete the purchase process. Council Member Bixenstine requested examples of the types of items the Police Department is called on from time to time, to transport and what the demand is to have a pickup truck as opposed to another type of vehicle. Chief Hudson stated the example of, from time to time, intersection lights go down. What is previously done is picking up portable stop signs from the station and other equipment to put out at those intersections. Right now officers have to fit that equipment in the back of the cage vehicle of the current Ford Explorer. Another example is using Public Works vehicles to transport tables and chairs to the area the public event is held. Having the pickup trucks will give PD the ability to move items around, for emergency use and for community engagement use. The Finance Committee approved the request to authorize the City to Purchase two (2) Ford F-150 Responder Police vehicles from Statewide Ford for the total price of $118,142, as an exception to competitive bidding. * * * * Finance Committee 1/16/24 Page 8 of 11 REQUES T TO AUTHORIZE THE CITY TO PURCHASE TWO (2) CHEVROLET BOLT ELECTRONIC VEHICLES FOR THE MENTAL HEALTH RESPONSE TEAM PROGRAM FOR THE TOTAL PRICED OF $58,060, AS AN EXCEPTION TO COMPETITIVE BIDDING. Lieutenant Timothy Grafton requested to authorize the City to purchase two (2) Chevrolet Bolt Electronic Vehicles for the Mental Health Response Team Program for the total price of $58,060, as an exception to competitive bidding. The MHRT pilot program in Shaker Heights has demonstrated a positive impact with those citizens of Shaker Heights experiencing a mental health crisis. Expanding the MHRT program outside of the community of Shaker Heights has the ability to impact neighboring communities with a much needed service. As part of the overall funding, the grant calls for the acquisition of two (2) electric vehicles for the MHRT, with a cost not to exceed $34,755.00 per vehicle. After much research the PD found that the Chevy Bolt EUV offers more space and more flexibility. At this time, the police department has secured two Chevy Bolt EUV’s which have been placed on “hold” for our purchase from local dealer Serpentini Chevrolet. Due to the limited supply of these EV’s, Serpentini Chevrolet needed to locate and obtain the second vehicle, as their inventory initially contained only one unit. The cost of each unit is $28,880.00 and $29,180.00, which is substantially less than the grant maximum of $34,795.00 per vehicle. The total for both electric vehicles equals $58,060.00, whereas the total for the grant allowed for $69,590.00. These vehicles are not on state contract, thus requiring Council approval. Chair Moore commented that the purchasing electric vehicles is one more step towards helping the community to be a more resilient City. This will help to decrease air pollution and increase air quality. The City currently has a LEED certification at the Gold Standard. Every time the City makes a purchase to decrease its carbon emissions it is a step in the right direction. The Finance Committee approved the request to authorize the City to purchase two (2) Chevrolet Bolt Electronic Vehicles for the Mental Health Response Team Program for the total price of $58,060, as an exception to competitive bidding. * * * * REQUEST TO ENTER INTO A CONTRACT WITH COVENTRY LAND COMPANY LLC IN THE AMOUNT NOT-TO-EXCEED $53,842 FOR SUSTAINABILITY CONSULTING SERVICES FOR THE PERIOD MARCH 1, 2024 THROUGH FEBRUARY 28, 2025. CAO Jeri Chaikin requested to enter into a contract with Coventry Land Company LLC in the amount not-to-exceed $53,842 for Sustainability Consulting Services for the period March 1, 2024 through February 28, 2025. Finance Committee 1/16/24 Page 9 of 11 Michael Peters of Coventry Land Company LLC is the consultant who serves as the Sustainability Coordinator for the City and works with the Sustainability Committee and its subcommittees. A list of accomplishments that Mr. Peters has provided to the City are included on the memorandum. One accomplishment is that Shaker Heights uses the only small city in the country to receive the LEED for Cities Gold status. The contract with Coventry Land Company LLC expires on February 28, 2024, and it is recommended that the contract be renewed for a sixth year. Coventry Land’s contract was in the amount of $50,000/year for the first three years and $51,500 in the fourth year. A 2.25% increase was included for the fifth year and the same increase is recommended for the sixth year, for a total contract cost of $53,842. Council Member Bixenstine commented that since chairing the Sustainability Committee, she has been impressed by the breadth and depth of Michael Peters expertise and his commitment to all of the City’s initiatives. There is discussion to include a fourth subcommittee because it’s a substantial amount of work. Council Member Bixenstine fully endorses renewal of Mr. Peters contract. Council Member Anne Williams expressed her support of continuing contracting with Mr. Peters as well. Chair Moore expressed her appreciation of the directors and their talents; also commenting on the positive impact having a consultant who holds a broad range of expertise in sustainability. The Finance Committee approved the request to enter into a contract with Coventry Land Company LLC in the amount not-to-exceed $53,842 for Sustainability Consulting Services for the period March 1, 2024 through February 28, 2025. * * * * AUTHORIZING THE EXECUTION OF CERTIFICATES BY THE DIRECTOR OF FINANCE AND THE PAYMENT OF AMOUNTS DUE UPON CERTAIN CONTRACTS FOR WHICH THE FINANCE DIRECTOR HAS ISSUED THEN AND NOW CERTIFICATES IN CONNECTION WITH CERTAIN EXPENDITURES. Director of Finance John Potts requested to authorize the execution of certificates by the Director of Finance and the payment of amounts due upon certain contracts for which the Finance Director has issued Then and Now Certificates in connection with certain expenditures. Section 5705.41 (D) (1) requires in part that the fiscal officer certify that amounts required to meet obligations have been lawfully appropriated and are available for expenditure prior to the obligations being incurred. If this is not done the fiscal officer may make such certification, after the fact (commonly referred to as “Then and Now”), however if the amount of the obligation is $3,000 or more City Council must approve payment within 30 days of such certification. Typically Then and Now’s are seen at the beginning of the year because the Munis Financial system is shut down to appropriately close the year. Many of the departments cannot effectively create the purchase order ahead of the invoice. The invoice comes in and the purchase order is not created. The one included on the memorandum is a normal recurring expense. Finance Committee 1/16/24 Page 10 of 11 The Finance Committee approved the authorization of the execution of certificates by the Director of Finance and the payment of amounts due upon certain contracts for which the Finance Director has issued Then and Now Certificates in connection with certain expenditures. * * * * There being no further business, the meeting was adjourned at 8:55 a.m. The next meeting will be February 20, 2024. * * * * Respectfully submitted, ________________________________ John J. Potts, Finance Director Finance Committee Finance Committee 1/16/24 Page 11 of 11