Moved by Mr. Uhlenhake, seconded by Mr. Fleagle to accept the Minutes of the February 12,
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1 MEETING MINUTES OF ST. MARYS CITY COUNCIL PRESIDING OFFICER: James J. Harris 6: 30 P.M. Council President Council Chambers ROLL CALL: Fleagle, Uhlenhake, Fitzgerald, Willoughby, Christman, Koverman Absent: Bubp Mayor McGowan noted this meeting would be the last time Reverend Bray would be attending. He is retiring. Mayor McGowan thanked Reverend Bray for coming to the Council meetings and for being a great community leader and friend. Moved by Mr. Uhlenhake, seconded by Mr. Fleagle to accept the Minutes of the February 12, 2018, meeting. Motion PETITIONS & COMMUNICATIONS: There were no petitions or communications. REPORTS OF CITY OFFICIALS, COMMITTEES, ETC.: The Auditor' s Report was presented. The Treasurer' s Report was presented. The Director of Public Service and Safety' s Report was presented. Mr. Foxhoven added the Engineering Department is back to full staff. Keith Clime ofnew Bremen started today. We feel he will be beneficial to the department. He has a four-year degree in Construction Management and will be taking some Engineering classes. COMMITTEE REPORTS There were no committee meeting reports. ORDINANCES & RESOLUTIONS: Ordinance No was presented to Council for a second reading. ORDINANCE An Emergency Ordinance Authorizing Purchase of a Stadium Lighting System From the Roughrider Philanthropic Association( RPA) and by or the St. Marys Community Foundation and Further Authorizing a Lease Purchase Agreement With the Board of Education of the City of St. Marys for Transfer of Said Lighting System to the Board of Education Mr. Riesen commented that since we were not getting any public comments or people coming to the meetings if Council would go ahead and pass the ordinance. Mr. Harris responded and stated they would read the ordinance for the third time to give everyone an opportunity to do so. The ordinance will be back for a third reading. Ordinance No was presented to Council for a second reading. ORDINANCE An Emergency Ordinance Authorizing a Contract to Remove and Replace the Roof Above the Fire Department Truck Bay Mr. Foxhoven stated this ordinance was presented at the previous Council meeting and requested the ordinance be passed tonight under suspension of rules so they can move forward to get the work done. Quotes were sent out with one company responding. The cost will be over$ 52, 000. Moved by Mr. Fleagle, seconded by Mr. Fitzgerald to suspend the rules for Ordinance No Motion Moved by Mr. Uhlenhake, seconded by Mr. Christman to pass Ordinance No as an
2 Page 2 Ordinance No was presented to Council for a first reading. ORDINANCE An Ordinance Providing for the Issuance and Sale of Electric System Revenue Bonds Under Article XVIII of the Ohio Constitution in the Maximum Aggregate Principal Amount of$ 5, 200, 000 for the Purpose of Paying the Costs of( A) Improving the City' s Electric System by Acquiring, Constructing, Installing and Improving the Tomlinson Substation, Hegemann Substation.and Continental Substation and Expanding Electric System Capacity at the Spokeworks Substation, Together With All Necessary and Related Appurtenances Thereto and B) the Acquisition of Residential and Commercial Meters for the AMI Metering Project, Upgrades to the Spokeworks Substation Including the Acquisition and Installation of a Transformer and Site Work, the Acquisition, Construction, Improving, Equipping and Installation of Concrete and Metal Structures and Switchgear Buildings and Various Electrical Equipment, and Upgrades to the Lore Substation( AAP Substation) Including the Acquisition and Installation of a Transformer, Together With All Necessary Appurtenances Thereto, and Declaring an Emergency Moved by Ms. Willoughby, seconded by Mr. Koverman to read Ordinance No Motion Mr. Foxhoven briefly explained the funds will mainly be used at the Tomlinson Substation. We want to increase the capacity, and in order to do so we need another transformer and breakers with the possibility of a second one. This is all part of our distribution upgrades. Mr. Noble further explained this is not all new money. They are rolling over$ 4.2 million that was already borrowed. It was borrowed under short term notes, which are now being turned over to long term bonds and borrowing additional money for the Tomlinson station. Mr. Fleagle asked if this falls within the initial budget amount for improvements. Mr. Foxhoven responded that we initially talked about borrowing up to $6 million. We are a little over$ 5 million now. Brian Cooper of Umbaugh & Associates explained the City has $ 4. 1 million in notes currently outstanding. The notes mature on May 16, We are preparing to issue additional bonds and take out that note going from a one-year note to a fifteen-year fixed rate bond financing. The two components within that financing will include the take out of the $ 4. 1 million note and$ 1 million of a new money. A couple of benefits to this will be a fixed interest rate and there will be a call feature, which would allow the City the option to refinance in three to five years if they choose to do so. Umbaugh & Associates will prepare and send out requests for proposals to banks that are interested and award the bond to the bank that provides the lowest cost to the City. This process should be completed by mid-april. Allison Binkley of Squire, Patton Boggs explained the bond ordinance from the legal aspect. This ordinance is a long term ordinance issuing revenue bonds instead of short term notes. The City would be pledging the revenue of the electric utility system for repayment. Past ordinances have been general obligation, pledging full faith and credit of the City. The City has certain debt limitations we need to be mindful of, and this gives the City some flexibility and some additional debt capacity in the future should the City choose to do other capital projects that are backed by full faith and credit. Allison pointed out the covenants in the ordinance. In particular, the rate covenants. The City agrees to charge rates in amounts necessary to pay the debt service on the bond. The City also agrees to upkeep the utilities, make sure they are insured and properly maintained, and operating as it needs to. Net utilities are also pledged for the repayment of the bond. Mr. Noble commented these are covenants or promises that we make which is not any different than the closing on a home. Covenants or promises are made to maintain the home, etc. to the bank. We anticipated this when we did rate study and have been planning ahead for this. As pointed out, this does give us some flexibility if we have other projects that we would be able to use general obligation notes. This does not infringe upon that ability. Mr. Fleagle asked if this will take care of the electrical upgrades. Mr. Foxhoven replied that a lot ofthe work has been done. We are doing this in phases. We want to leave the door open if needed. Mr. Fleagle asked if it is beneficial to do long term financing now. Mr. Foxhoven said he believed it is beneficial.
3 Page 3 Mr. Christman asked ifthey foresee any charges for the call for refinancing if we should take that option. Mr. Cooper responded that two call features would be requested. One that would allow the City to recall the bonds at five years and one to call at three years. That will allow calculation of the cost to the City. We could do two other options being a longer call. A ten-year call would not give the City the flexibility they might need. The other option being non-callable. Mr. Cooper did not recommend non-callable in case the City would want to refinance, restructure, or change anything. It does have a cost of a five to eight basis point range at a cost of about$ 20,000. Mr. Noble stated that the City has not spent all of the $4. 1 million yet that has been allocated for the upgrades of generator 7. When that is fully repaired, we expect it to be a big money maker. Mayor McGowan also commented the generators are about the same age and the thought is that we want to replace one now and stretch the other one out as long as possible so we can stagger the need for transformer replacements in the future. Once we put the controls on generator 7, we will have the same controls on# 11. Generator 7 generates about $480, 000 a year. Had we been able to start that in the winter, which is strictly due to the controls, we would have generated more money which comes off our electric bill at the end ofthe year. We are hoping to be in the$ 600,000 range of credits on our electric bill once the controls are on and good. It was noted it is a 1983 generator and you don' t know what you get into until you get into it. Mr. Harris commented the bottom line is an additional$ 1. 1 million. Mr. Foxhoven confirmed and requested the ordinance be passed under suspension of rules. Moved by Mr. Fleagle, seconded by Mr. Fitzgerald to suspend the rules for Ordinance No Motion Moved by Mr. Christman, seconded by Mr. Koverman to pass Ordinance No as an Ordinance No was presented to Council for a first reading. ORDINANCE An Emergency Ordinance Adopting and Authorizing the Tax Administrator to Comply With Sections Through of the Ohio Revised Code Moved by Ms. Willoughby, seconded by Mr. Fleagle to read Ordinance No Motion Angie Brown, Tax Commissioner, stated the ordinance has to do with HB49. The City joined litigation in court hoping that the judge would deny it. He voted against the municipalities. Therefore, in order to keep our ability to tax, we need this ordinance stating we will follow the outline for Ohio Revised Code. Mr. Noble added we had joined other municipalities to attack the constitutionality of HB49, which would centralize the collection of municipal income tax. The judge denied the claim this past week. Mr. Noble said he anticipates that will be appealed. HB 49 provided that we enact certain changes in our tax code in order to conform by the end of January. That was stayed until the judge made his ruling. He explained this is a stopgap piece of legislation. It allows the Tax Department to comply with State law in the interim. We will probably need to have more detailed legislation with the specific changes. The centralized collection system is strictly voluntary. Businesses can still file with our Tax Department. Mr. Noble also stated this needs to be passed so we can be in compliance. Moved by Mr. Koverman, seconded by Mr. Christman to suspend the rules for Ordinance No Motion Moved by Mr. Fleagle, seconded by Mr. Uhlenhake to pass Ordinance No as an
4 Page 4 Resolution No was presented to Council for a first reading. RESOLUTION An Emergency Resolution Creating the Position of Site Inspector at a Rate of$ per Hour Moved by Mr. Christman, seconded by Mr. Koverman to read Resolution No Motion Mr. Foxhoven explained this would allow us to hire an inspector to manage projects throughout the City we believe in a more efficient manner. Mr. Thobe has over 30 years' experience as a site inspector in the private sector. We have a lot of projects going on. Craig Moeller is actively engaged with eleven engineering firms on various projects throughout the City. We have a young department with two newest hires, one as oftoday and one ten months ago. We feel their services will be better used managing other projects. The West Spring Street project will have a new construction company that was awarded the bid. They have not done work for us before and we feel it is important to have someone onsite protecting our interests. We want to make sure the scope of the work is done properly in accordance with the job specifications. We feel Mr. Thobe is able to do this, freeing our personnel to focus on other projects. Mr. Foxhoven also stated due to an upcoming pre- construction meeting it is requested this be passed under suspension of rules. Mr. Fleagle asked if this site engineer would have any oversight of the new water plant. He was informed it had been discussed, but they are going to see if retired Superintendent of the Water Wastewater Department, Dave Sprague, would oversee that project. Mr. Foxhoven went on to comment the position for Mr. Thobe would be a seasonal or as needed employee. Ifthe contractors are not working, he will not be working. When the job is completed, we may discuss other projects. Moved by Mr. Koverman, seconded by Mr. Uhlenhake to suspend the rules for Resolution No Motion Mr. Fleagle stated he would like to revisit this and re- evaluate this next February to see if this person is still needed and how many hours were used on average. Moved by Ms. Willoughby, seconded by Mr. Christman to pass Resolution No as an Resolution No was presented to Council for a first reading. RESOLUTION An Emergency Resolution Authorizing Submittal of a Waiver Request to the Ohio Development Services Agency Office of Community Development for Use of City of St. Marys Community Development Block Grant ( CDBG) Economic Development Revolving Loan Funds ( ED- RLF) for Clearances Demolition of the Former K-Mart Located at 1535 Celina Road, St. Marys, Ohio Moved by Mr. Uhlenhake, seconded by Mr. Fleagle to read Resolution No Motion Mr. Foxhoven noted the resolution number was incorrect and needed to be amended. Motion by Mr. Koverman, seconded by Mr. Christman to amend the resolution number from to Motion Mike Burkholder noted this would allow Mr. Foxhoven to sign off on the application and use CDBG funds to tear down the old K-Mart building, the parking commented this is the first step in the project to redevelop and revitalize that area. lot, and light structures. Mr. Foxhoven Mr. Christman asked if the$ 500, 000 was just to demolish the building, or did it include the cost to put in roads, etc. Mr. Burkholder replied it includes demolition ofthe building, demo ofthe parking lot and light structures. Mr. Noble noted this is money in the Community Development Fund. We did not realize we could use those funds for this, but upon further inquiry, we found we could. This is the money that comes from the State. We have recently been penalized by the State for not using these funds. Between this project and the mill project, these funds can be whittled down. Mr. Uhlenhake clarified the penalty as being we did not get as much money allocated to us.
5 Page 5 Mr. Foxhoven commented we were penalized by not being awarded an additional $74, 000 because we had a surplus in this account. It was noted that if this $ 500, 000 is approved along with funds for the mill, there would still be remaining funds left for the revolving loan fund if a project became available to qualify. We could still then request additional monies. Mr. Fitzgerald asked if the City is in fact the owner of the K-Mart building. Mr. Foxhoven responded it is our property. If the items inside were removed, we could take it down immediately. The former owner' s tenants still have some property inside. We are working to get the items out. There is some time as we will have to go through the bidding process and award the structure to be taken down. Moved by Mr. Koverman, seconded by Mr. Christman to suspend the rules for Resolution No Motion Moved by Mr. Fitzgerald, seconded by Mr. Fleagle to pass Resolution No as an MISCELLANEOUS BUSINESS: Mr. Foxhoven confirmed a Streets and Sidewalks Committee meeting will be held on April 16tH Mr. Noble informed Council a notice was received from the Western Ohio Railroad Authority WORA). They own the line between St. Marys and Minster. The Village of New Bremen wants to sell a portion of the property to the Auglaize Farmers Coop ( Sunrise Cooperative). It does not include any part of the line. Unless we object within 30 days, they will proceed. Mr. Uhlenhake informed Council that a former Police Chief, Jim May has passed away. Moved by Mr. Fitzgerald, seconded by Mr. Christman to excuse Mr. Bubp. Motion passed unanimously. Moved by Mr. Koverman, seconded by Mr. Christman to adjourn the meeting. Motion passed unanimously. Council adjourned at 7: 06 p.m. 0, e)/ t4_ 664. orit r.. ` Debra Kable, Clerk of Council V James/ T.. is Presi ler}t of Council Vis/
6 CERTIFICATION CITY OF ST. MARYS, OHIO COUNTY OF AUGLAIZE ss: I, Debra Kable, Clerk of St. Marys City Council, St. Marys, Ohio, do hereby certify that the foregoing copy of Minutes is a true and correct copy, accepted by Council on the 12th day of March, IN TESTIMONY WHEREOF, I have hereunto placed my name and affixed the seal of the City of St. Marys, Ohio. ZeLix Date / Debra Kable, Clerk of Council 77110L /3.(Z6/
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