Finance Committee

Finance Committee Monday, March 18, 2024, 8:00 A.M. Virtual meeting pursuant to Chapters 113 and 115 of the Codified 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, Martin Kolb Others present: Mayor, David E. Weiss Chief Administrative Officer, Jeri E. Chaikin Chief of Police, Wayne Hudson Director of Finance, John Potts Director of Law, William Ondrey Gruber Director of Recreation, Alexandria Nichols Commander, John Cole Police Lieutenant, Timothy Grafton Assistant Chief of Fire, James Heath Assistant Director of Public Works, Christian Maier Business Services Manager, Rebecca Globokar Business Services Manager, Quiana Player Mental Health Program Clinician, Annette Amistadi Frank GoForth, League of Women Voters * * * * APPROVAL OF THE MINUTES OF THE REGULAR MEETING OF FEBRUARY 20, 2024. Chair Nancy Moore stated that the minutes of February 20, 2024 meeting were unanimously approved with minimal edits. * * * * REQUEST TO ACCEPT AND APPROPRIATE A $2,000 GRANT FROM MYCOM SHAKER TO SUPPORT SHAKER FAMILIES BY PROVIDING FINANCIAL ISSUES FOR THE COST OF THORNTON PARK POOL PASSES. Business Services Manager, Quiana Player requested the Finance Committee to accept and appropriate a $2,000 grant from MyCom Shaker to support Shaker families by providing financial assistance for the cost of Thornton Park pool passes. In September 2023, Recreation requested City Council approval for an increase in pool fees and as a part of the discussion it was recommended that the City find a way to provide financial assistance for Thornton Park Pool Passes to families who may not be able to afford the cost. Recreation staff researched options through Starting Point which is a County-based youth development agency that has previously provided financial assistance for families to participate in the now defunct City Before and After Care Program. They recommended asking MyCom Shaker if the City could receive funds as a part of their mini-grant program. MyCom was pleased to assist the City and they awarded up to $2,000 for 2024 to provide financial assistance to Shaker families for the cost pool passes. On average, the cost of a Thornton Park Pool Pass for a family of four would be $231.00 for the 2024 pool season. With the grant from MyCom, it is estimated that Recreation will be able to provide financial assistance to approximately 10 families. As with the Lynn Ruffner Recreation for Youth Scholarship (RFY) Fund, which provides financial assistance for youth to participate in summer camps, families will be required to be residents of the school district and participants in the federally funded School Free and Reduced Lunch Program. People can provide a copy of their letter from the school and those in the free lunch program will have a free pass and people in the reduced lunch program will receive a pool pass at half of the cost. RFY serves approximately 10-20 families annually based upon requests from residents. This program would be available to all families who are eligible to participate in the City’s RFY financial assistance program. Chair Moore asked if eligible families can also be anywhere in the school district. Mrs. Player concurred. The Finance Committee approved the request to accept and appropriate a $2,000 grant from MyCom Shaker to support Shaker families by providing financial assistance for the cost of Thornton Park pool passes. * * * * REQUEST TO ENTER INTO A CONTRACT WITH GPI FOR CONSTRUCTION ADMINISTRATION AND INSPECTION FOR THE RESURFACING OF THE VAN AKEN DISTRICT PEDESTRIAN IMPROVEMENT PROJECT (PID 113197) IN THE AMOUNT OF $38,923.32 Assistant Director of Public Works, Christian Maier requested to enter into a contract with GPI for construction administration and inspection for the resurfacing of the Van Aken District Pedestrian Improvement project (PID 113197) in the amount of $38,923.32. The City of Shaker Heights has received funding from the Ohio Department of Transportation (ODOT) and the Federal Highway Administration for the Van Aken Pedestrian Improvement project. The general scope of work includes landscaping, lighting, bike racks and sidewalk improvements and Finance Committee 3/18/24 Page 2 of 10 enhancements. Per our agreement with ODOT, they will contribute up to $1,500,000 for construction and construction administration & inspection. Following ODOT policies, the construction project was advertised in February 2024 and the bid opening was March 1. The apparent low bidder submitted a bid in the amount of $1,518,722.60. With this being an LPA (Local Public Agency) project, there is a cost split that is roughly 80% to 20%. ODOT’s contribution would be $1,172,651.81 and the City’s contribution will be $346,070.76 for the construction. For construction, the City’s contribution is a combination of project eligible costs as well as non-eligible project costs. Non-eligible project costs include work related to water and sewer connections. On August 28, 2023 the City of Shaker Heights posted Letters of Interest (LoI) for Construction Management and Construction Inspection Services on ODOT’s “Local Government Postings” website for the project, as required for LPA administered projects. Five (5) firms submitted LoI’s on September 22, 2023. Evaluations were performed by the Assistant Director of Public Works, a member of the Planning Department and the Public Work’s Project Manager. Based on the scoring of the different consultants, Public Works and the Planning Department interviewed the project team from GPI on November 2, 2023. Throughout the interview, GPI demonstrated their familiarity of the ODOT process, their relationships with ODOT District 12 staff, a firm understanding of the project scope and the depth in their organization to successfully administer the Van Aken District Pedestrian Improvement project. Additionally, GPI has provided similar services for the City of Shaker Heights, notably Farnsleigh Streetscape project and the Warrensville Center Road Pedestrian Improvements project. Both of these projects had to follow the same ODOT LPA procedures necessary for the VAD Pedestrian Improvement project. After the interview, Public Works requested a fee proposal from GPI. This was submitted on November 19, 2023 and the initial proposed fee was $180,596. In discussions with the consultant, the fee was negotiated to $170,814; we believe the fee is fair and reasonable for the scope of work listed in the LoI. Based on the percentage of work that is ODOT eligible, the cost of construction administration for Shaker Heights is $38,923.32. ODOT’s participation for construction administration will be $131,890.68. A table is provided in the memorandum that gives an overview of the summary of the cost for both construction and construction administration. The City’s budget for construction is $375,000 and the funds of the project were appropriated in the 2023 capital budget; funds for construction administration were appropriated in 2024 in the amount of $235,000. This item was passed unanimously by the Safety and Public Works Committee on March 7, 2024 and with no questions being asked. The Finance Committee approved the request to enter into a contract with GPI for construction administration and inspection for the resurfacing of the Van Aken District Pedestrian Improvement project (PID 113197) in the amount of$38,923.32. Finance Committee 3/18/24 Page 3 of 10  * * * * REQUEST TO APPLY FOR A FEDERAL EMERGENCY MANAGEMENT AGENCY (FEMA), ASSISTANCE TO FIREFIGHTERS GRANT IN THE AMOUNT OF $227,145 WITH A 10% CITY MATCH, TO PROVIDE FUNDING ASSISTANCE FOR TRAINING AND PROFESSIONAL DEVELOPMENT GOALS. The Fire Department’s Business Services Manager, Rebecca Globokar requested to apply for a Federal Emergency Management Agency (FEMA), Assistance to Firefighters Grant (AFG) in the amount of $227,145 with a 10% city match, to provide funding assistance for training and professional development goals. After reviewing the notice of funding for this year's FEMA, AFG grant, the department has determined that a high priority should be placed on fire department training initiatives. This funding opportunity aligns with the department's goal of providing the highest level of training and professional development opportunities to the members of our department. There are two officers retiring this year which then leaves open two vacant positions. The grant application will request funding in the amount of $227,145.00 which would allow the department to send members to a wide variety of fire service professional development programs which include, Fire Service Instructor, National Incident Management Training, Incident Management Certification, Fire Safety Inspector, and Fire Officer I-IV which is a professional development series for fire service supervisors. This grant application funding request would cover the costs associated with these courses such as tuition, books, lodging, travel, and any overtime cost associated with sending a member or backfilling their shift vacancy while they attend the training. This grant would require a 10% city match which would be approximately $22,714.00. At this time, the department believes that they can cover the 10% match with their existing training budget or with a reimbursement from the Cuyahoga County Office of Emergency Management. The Cuyahoga County Office of Emergency Management has historically provided support to local fire departments by providing funding matches on awarded FEMA grants. They have confirmed that they will be providing that assistance again this year. The Finance Committee approved the request to apply for a Federal Emergency Management Agency (FEMA), Assistance to Firefighters grant in the amount of $227,145 with a 10% city match, to provide funding assistance for training and professional development goals. * * * * REQUEST TO ACCEPT AND APPROPRIATE FUNDING FROM THE ALCOHOL, DRUG, ADDICTION AND MENTAL HEALTH SERVICES (ADAMHS) BOARD OF CUYAHOGA COUNTY IN THE AMOUNT OF $523,131 FOR THE CRISIS ASSISTANCE AND LOCAL LINKAGE (CALL) PROGRAM FOR THE PERIOD OF MARCH 1, 2024 TO MAY 31, 2026. Finance Committee 3/18/24 Page 4 of 10 Mental Health Program Clinician Annette Amistadi requested to accept and appropriate funding from the Alcohol, Drug, Addiction, and Mental Health Services (ADAMHS) Board of Cuyahoga County in the amount of $523,131 for the Crisis Assistance and Local Linkage (CALL) Program for the period of March 1, 2024 to May 31, 2026. The CALL program is an expansion of the already existing Mental Health Response Program which will be placing individuals into the cities of Shaker Heights, Cleveland Heights, University Heights, Richmond Heights and South Euclid, and will also have someone in the dispatch center. The staffing will be of mental health professionals and also a peer support. Accepting these funds would assist in that budget by covering personnel costs for this grant that will be used over two years. Chair Moore extended congratulations for assembling the funding as the Mayor explained a month or so ago for the CALL Program. Citizen Member Martin Kolb questioned if the City was comfortable in ascertaining the funding needed for the entire project. Mayor Weiss stated Mr. Kolb is accurate. Mayor Weiss explained that the funding takes two steps. Step one is to win the grant or win the authority to receive the funds and then have the funds appropriated. All of the funds needed for this project are in process. There are different stages. This is the largest piece of this program. The only amount that remains in process is a grant from the Gund Foundation and funds from the County. Mayor Weiss is set to have a meeting with the County later in the day to discuss. He also concluded stating the bottom line is the City will only expand the program only to the extent the dollars available. If for some reason unexpectedly some dollars were not received, the program would have to be scaled back. Law Director Gruber is working with the other four communities on a cost sharing agreement so that no one City will be responsible for the full amount of any shortfall. The Finance Committee approved the request to accept and appropriate funding from the Alcohol, Drug, Addiction, and Mental Health Services (ADAMHS) Board of Cuyahoga County in the amount of $523,131 for the Crisis Assistance and Local Linkage (CALL) Program for the period of March 1, 2024 to May 31, 2026. * * * * REQUEST TO AUTHORIZE THE CITY TO PURCHASE TWO CHEVROLET BOLT ELECTRIC VEHICLES FOR THE CRISIS ASSISTANCE AND LOCAL LINKAGE (CALL) PROGRAM AT A COST NOT TO EXCEED $34,755 PER VEHICLE, AS AN EXCEPTION TO COMPETITIVE BIDDING. Lieutenant Timothy Grafton requested that the Finance Committee authorize the City to purchase two (2) Chevrolet Bolt Electric Vehicles for the Crisis Assistance and Local Linkage (CALL) Program at a cost not to exceed $34,755 per vehicle, as an exception to competitive bidding. Finance Committee 3/18/24 Page 5 of 10 The grant funding for the acquisition of two electric vehicles for the expanded program, provides that the cost shall not exceed $34,755.00 per vehicle. The Chevy Bolt EUV has been selected as the preferred vehicle, as it fits the operational needs as well as the budget constraints of the expanded program, and the vehicles can be purchased at a cost not to exceed the allowed $34,755.00 per vehicle. Ms. Amistadi and her Mental Health Response Team will be utilizing these vehicles in support of the Police and Fire department. These vehicles are not on state contract, so the Police Department conducted a formal competitive bidding process to purchase the vehicles. On February 8, 2023, a request for formal competitive bids for the Chevy Bolt EUV was advertised to the public. Unfortunately, no bids were submitted by the deadline of February 23, 2024. Chair Moore stated the City celebrates “every EV that is acquired in our fleet.” Director of Law William Ondrey Gruber stated when approached by the SHPD, he asked them to talk to the dealer to find out why they didn’t bid. The dealer explained there is such a demand for these vehicles that going through a competitive bidding process means they would have to obtain a bid bond. This is an extra cost that would delay in selling the vehicle. The dealer was not interested in going through a more detailed lengthy and delayed process. Council Member Bixenstine commented stating her appreciation and support of the City’s sustainability initiatives and getting electric vehicles for this purpose. Director Gruber included that this is required by the grant. Lt. Grafton concurred. The Finance Committee approved the request to authorize the City to purchase two (2) Chevrolet Bolt Electric Vehicles for the Crisis Assistance and Local Linkage (CALL) Program at a cost not to exceed $34,755 per vehicle, as an exception to competitive bidding. * * * * REQUEST TO ENTER INTO A PERSONAL SERVICES AGREEMENT FOR A 5 YEAR PERIOD (2024-2029) WITH LEXIPOL LLC IN THE TOTAL AMOUNT OF $173,116.44 FOR LAW ENFORCEMENT POLICY AND PROCEDURE SOFTWARE. Commander, John Cole requested that the Finance Committee support entering into a personal services agreement for a 5 year period (2024-2029) with Lexipol LLC in the total amount of $173,116.44 for Law Enforcement Policy and Procedure Software. Lexipol is a risk assessment tool and has training for the Police Department. Lexipol is already utilized by the Fire Department which has benefited from the resources of having several researchers looking through policies and procedures to find best practices and bringing that to the department. If able to purchase for five years the amount would be $173,116.44. Finance Committee 3/18/24 Page 6 of 10 The SHPD would be in compliance with both the Ohio Collaborative and the department’s national accreditation with the CALEA standards. This item was presented to the Safety and Public Works Committee on Thursday, March 7, 2024. There were several questions that were asked during this meeting, the first being how the Lexipol system functions as a risk management tool. Commander Cole stated it would be the equivalent of having a “Sergeant in the vehicle”, and it does afford the City’s officers a readily available resource to review polices, practices and procedures at those times when the supervisor and/or writing is not readily available. The second question was would Lexipol assist in any way in developing a Drone Policy that would address privacy concerns recently expressed by Council? Commander Cole stated that Lexipol could look at policies in Ohio and nationally. He also went on to say that what is good about Lexipol is that the language is already supported by best practices by the Ohio Chiefs of Police Associations. In any area where there are concerns from the Community, the PD still retains the resources of the Law Department. The third question was whether the department has heard anything negative about any other agency that had implemented Lexipol. The department is not aware of any adverse reporting on the application and/or use of the Lexipol system. After much research it was found that throughout the country, anyone who uses Lexipol is gaining the benefit of allocating times for their accreditation manager. Chair Moore commented on the background of the item, stating there was questioning from City Council both from within the Committee and then from within Council, to solidify work for the use of drones and cameras; since there are many privacy issues concerning these two police tactics. One of the means of getting to the policy articulation is Lexipol. It is lucky to have this kind of risk management tool. This process of policy articulation is a difficult and arduous. Lexipol is a very helpful tool to fulfill that function. The Finance Committee approved the request to enter into a personal services agreement for a 5 year period (2024-2029) with Lexipol LLC in the total amount of $173,116.44 for Law Enforcement Policy and Procedure Software. * * * * REQUEST TO APPLY FOR AND OPEN A NEW CITY CREDIT CARD WITH HUNTINGTON BANK WITH A CREDIT LIMIT OF $50,000. Director of Finance, John Potts requested to apply for and open a new City Credit Card with Huntington Bank with a credit limit of $50,000. The City has had a City credit card with PNC Bank for a number of years with a credit limit of $25,000. Over the past couple of years the department has faced many difficulties with the maximum credit limit on that card. The City credit card has become a highly utilized payment method as some vendors are shifting to only accepting credit cards. For example, the credit card is utilized directly with worker’s compensation to make very large payments. In addition, there has been an increase in travel post pandemic resulting in the card being used often. The Finance Finance Committee 3/18/24 Page 7 of 10 Department is responsible for the use of the card and for ensuring compliance with the Credit Card Policy (revised in 2021). There has been a hardship on the Finance staff, who’s had to complete multiple check runs at times versus the department’s normal protocol, which is every other week. Also the department has had to make multiple trips to PNC’s branch to pay the card balance to have monetary availability. Huntington, our current bank, has a credit program that will allow the City a much larger credit limit of $50,000. Along with the increased credit limit, having a credit card with our main bank will create efficiencies for our department. We will be able to track all purchases and balances within the same Huntington website, and payment can be made directly from our account to avoid rushing payments to a PNC branch. There will be no fees with the Huntington card, but we will no longer receive credit reward points. If approved to apply for and accept this new card with Huntington, we will close out the PNC card and utilize the remaining reward points in collaboration with the HR Department for employee recognition/appreciation purchases. Huntington has requested legislation from Council to obtain the new card. The new card with Huntington will allow the Finance department to track purchases and balances much more efficiently, directly on the same site used for other accounts. The payment will come directly out of the Depository account, so there will be no need to pay by check. Once transitioned, the PNC credit card will be closed. The Finance Committee approved the request to apply for and open a new City Credit Card with Huntington Bank with a credit limit of $50,000. * * * * STREET LIGHTING ASSESSMENT RENEWAL FOR 2024, 2025 AND 2026 – RESOLUTION OF NECESSITY. Shaker Heights property owners pay a portion of the expenses involved to provide street lighting on all City streets and public roads within the corporate limits. Street lighting helps provide for the public health, safety, and welfare in the City of Shaker Heights. The current rate of assessment per front footage is .88¢ dating back to 2004. The Codified Ordinances requires that Council pass a resolution of necessity that would be put out as a public notice and the Finance department maintained the calculations and the plans for the assessment. For the past 10 years, with the increase in expenses with the lights at times, the General Fund has needed to supplement this fund anywhere from $100,000 to $265,000 annually. The current assessment raises about $550,000 annually which is below what is needed to cover the expense. For 2023 and 2024 (budget), the City elected not to supplement the Fund by way of a General Fund transfer and utilized the excess reserve in the Fund to cover the shortfall between the assessments (revenue) and the expense. Without an increase in the assessment the City will need to begin subsidizing the fund with a General Fund Transfer beginning in 2025. This request was taken to the Safety & Public Works Committee on March 7, 2024 and although there was not a quorum, the Committee voted to recommend support for this Finance Committee 3/18/24 Page 8 of 10 assessment to the Finance Committee. Attached to the memorandum is Exhibit A which shows where the City has been and is heading the next three years. Director Potts mentioned, the department did review the tree maintenance assessments a few years ago and because that assessment had also not been increased for a number of years, it was determined that an increase was needed. The Finance Department has committed to Council’s request to take a look at the assessments every couple of two to three years. Director Potts is confident that with this increase, the City will be able to cover all expenses without a subsidy from the General Fund. Council Member Bixenstine questioned if this assessment would only include replacement of lights that are not LED. Director Potts stated to his knowledge there are no LED lights. This would be mainly to cover the expense of First Energy for the lights and the maintenance and repair and have the lights on. As mentioned at the last Safety and Public Works meeting, the department is looking to increase the assessment and put this in place for the next three years. If at any point the City goes down a different path, the assessment can be pulled back. Sustainability Coordinator, Michael Peters stated in a recent email that it made sense to continue to go down this route versus the significant cost of putting in LED. The Finance Committee approved the Street Lighting Assessment Renewal for 2024, 2025 and 2026 – Resolution of Necessity. * * * * 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 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. The City has completed the jail contract recently and the purchase order was created after the contract, as usual, but the invoice had already been sent. 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. * * * * Finance Committee 3/18/24 Page 9 of 10 DISCUSSION ITEM: 2023 YEAR-END RESULTS (UNAUDITED). Director of Finance John Potts stated in order to compile the 2024 budget last Fall, the department projected out revenues and expenditures for 2023. Revenue projections were compiled and discussed with the Committee in mid-October and expenditure projections were discussed with in mid-November, all in connection with laying out the 2024 budget. Director Potts listed out the unaudited results for 2023. It has been projected that revenues would come in at $60.3 million, which in fact came in at $60.4 million. On operating expenditures, the Finance department was projected to come in at $44.2 million. The compensation expenses came out 3% lower. Some of the reasons were listed on the other expense side, which came in lower. A large portion of this was from Public Works, mainly less diesel fuel than anticipated and a mild winter and better pricing for brush leaf disposal. At the end of the year the revenues exceeded our disbursements by $1.7million. That will increase the Year-End 2023 General Fund Reserve which is at a balance of 43.6% of the 2023 General Fund disbursements. Chair Moore commented on the decline in volume of brush pickup being due to people composting leaves which is another sustainability practice that is encouraged. * * * * There being no further business, the meeting was adjourned at 8:42 a.m. The next meeting will be April 15, 2024. * * * * Respectfully submitted, ________________________________ John J. Potts, Finance Director Finance Committee Finance Committee 3/18/24 Page 10 of 10