Saturday, July 31, 2010

July 27th Council Meeting: Part Two

There has been alot going on lately. Here’s more from the July 27th meeting.....

Waste of Taxpayer Money?

Council’s Legislative & Finance Committee (L&F) met before the July 27th council meeting.


Based on his mid-year financial analysis, Councilman Leo Lombardo (the L&F chair) reported that the city is running “$ 154,000 in the red.” While the city’s actual revenue exceeded the revenue projections in the 2010 budget, the city’s expenses are running 4 % above the budgeted expense amount.


While Finance Director Anthony Ianiro initially attempted to dispute Councilman Lombardo’s figures by excluding previously encumbered amounts from the expense side (encumbered money is money that hasn’t actually been paid out yet but has been set aside to pay prior commitments and/or pending bills), he later conceded that Lombardo’s figures were accurate. Both Tony Ianiro and Mayor Scott Coleman quickly pointed out that it was likely that not all of the encumbered funds would actually be spent, which could lower the final deficit figure.


Finance Director Tony Ianiro was asked about, but was unable to explain, a $ 8,912 charge for “park land and land improvement” that was paid for out of the city’s “401” capital improvements budget. Ianiro had not mentioned that charge when discussing the “401” fund with council during the budgeting process last February, and it was not on the list of council-approved capital improvement projects for 2010.


In response to a question by Councilwoman Cathy Murphy, the Finance Director was also unable to explain why he had been paying property taxes and city-levied street light and/or sewer assessments on two parcels of property that the city owns (the Old Church Building property and a vacant lot just east of the Municipal Park entrance). Because they are city-owned, those properties should be exempt from property taxes ---and presumably city-imposed local assessments as well.


I checked this out at the county auditor’s website. As usual, Councilwoman Murphy did her homework and accurately reported the situation at the L&F meeting.


The municipal complex (Permanent Parcel # 822-08-002) is listed as “exempt” property by the county auditor, and the auditor’s records show that the city pays no property tax on that property.


It’s a different story, however, with regard to the Old Church Building (Permanent Parcel # 821-24-004) and the vacant land next to the park entrance (Permanent Parcel # 822-19-006).


The auditor’s records show that since 2005, the city has paid more than $11,000 in property taxes and city-levied assessments for (what should be tax exempt) city-owned property.

Although it was not discussed at the L&F meeting, it struck me that it is also possible that the Finance Director double-reported revenue in the budget, to the extent that city tax revenues were used to pay any city-levied assessments (i.e., the same tax revenue might have been reported twice in the budget, as both general tax revenue and as revenue from special assessments).


What was Finance Director Tony Ianiro’s response to these revelations? He immediately tried to dismiss the information presented by Councilwoman Cathy Murphy, and when Murphy persisted, he tried to shift the blame to Law Director Tim Paluf---although obviously Paluf wouldn’t have known about the situation, unless Tony Ianiro---who received and paid the auditor’s tax invoices---brought it to his attention.


Our tax dollars at work....?

City taxpayers owe a big “Thanks!” to Councilwoman Murphy for discovering this situation and bringing it to light.


You can check all of this out for yourself. Go to http://auditor.cuyahogacounty.us/
Select “Search Real Estate Property Information”. Use “City of Highland Heights” for the property owner’s last name. The resulting search should show all three city-owned properties.

Recreation Director’s Report To Council
Recreation Director David Ianiro has been very good about attending council meetings this year, in compliance with Highland Heights ordinances, which require him to periodically report to council about how things are going in the recreation department.


Unfortunately, however, Dave Ianiro continues to demonstrate a remarkable lack of ownership of the recreation department budget. While Dave Ianiro provided council with a revenue statement on July 27th, and happily declared that rec revenues were “up from last year” (thanks to fee increases adopted by the Park & Recreation Commission (P&R) earlier this year---the first increases in five years), he failed provide council with any information about the other side of the budget---the expense side. When asked about rec department expenses, Dave Ianiro told council that he didn’t have any recent expense figures ---he was only aware of his expenses up to early June.


Perhaps ignorance is bliss? Only time will tell.


As for the major leak at the city pool, Dave Ianiro stated: “We don’t have the leak solved”.


The Recreation Director got a bit defensive when he learned that residents had been complaining to council members about the fact that bleachers had not been reinstalled near the park softball fields. He told council that P&R decided to remove the bleachers earlier in the summer, that they were attempting to “get all the fields unified” and that (allegedly) having bleachers erected on gravel and/or dirt was not a “safe environment.” Dave Ianiro provided further justification by reporting that people brought their own chairs to sit on after the bleachers were removed and that he didn’t see anyone sitting behind the dugout where one set of bleachers had been located—kind of a strange comment given that the tall, multi-tiered bleachers would have provided a good view of the field from that location, even if a chair on the ground did not.

Labor Contracts and Pay Increases

The city has been negotiating with unions representing city employees since January. Three year labor contracts were recently approved by the unions.


As a matter of practice, city administrators also receive pay raises once the labor contracts are signed. Council approved the labor contract and those pay increases at the July 27th council meeting.


The city administrator who made out best this time around was Building Commissioner Dale Grabfelder. His salary was set at $72,000 when he was hired in February 2010. Under the new pay ordinance, his salary for 2010 has been reset to $ 79,6000. Not a bad pay increase after being on the job for just seven months.


Only one administrator’s salary (that of long-time Police Chief Cook) exceeds $100,000 this year, but Fire Chief Turner and Finance Director Anthony Ianiro aren’t too far behind him. Service Director Thom Evans, who was rehired after retiring, will receive a relatively modest (below $80,000) salary, presumably because of his “double dipper” status.

The Sun Messenger's story about the pay increases:
http://www.blogger.com/post-edit.g?blogID=5973880655238623733&postID=8317341530669211814One interesting sidelight: As discussed in prior blogs, Mayor Coleman allows Anthony Ianiro to work simultaneously as both this city’s Finance Director and as Finance Director for the City of University Heights. Tony Ianiro is a South Euclid resident. He was quoted in this week’s Sun Messenger. As it turns out, Anthony Ianiro is a member of the group that challenged South Euclid’s decision to take away the tax credit given to residents who work outside that city---- a decision that had obvious and significant financial implications for Tony Ianiro, given the hefty salaries that he collects from both Highland Heights and University Heights.
Read the Sun Messenger story that quotes Tony Ianiro: http://blog.cleveland.com/sunmessenger/2010/07/south_euclid_initiative_petiti.html


Mayor Coleman’s letter to homeowners

Although the door-to-door solicitations had mostly ended, Mayor Coleman nevertheless felt compelled to communicate with residents last week about companies offering to provide free storm inspections and roof replacements. The mayor's letter was hand-delivered to residents’ doors and mailboxes.


Why did the mayor wait so long to address the issue? As he explained to council, the straw that broke his proverbial camel’s back was this: “One solicitor began telling residents that it was city-recommended and that it was working with the mayor personally.” Mayor Coleman told council that the claims were false. The city doesn’t recommend contractors, and no one has replaced his roof.


Mayor Coleman acknowledged that service department workers were used to stuff his letter into plastic bags and to distribute the letters throughout the city. The mayor did not report on how much the workers’ time cost the city, but he claimed that “it would cost several thousand dollars and take 1-2 weeks” if the letter was distributed by the “person who does the (city) newsletter”.


Mayor Coleman did not explain why he chose not to use city hall secretarial staff and bulk mail or, even cheaper, why he didn't use the city’s “code red” reverse 911 calling system---which is already paid for---to provide what he obviously felt was vital information to residents about the solicitations.
The end.

Thursday, July 29, 2010

Residents’ Top Priority: Preserving High Quality Residential Life in Our City

Notes from the July 27th Council Meeting. Part One.

Something unusual happened at the July 27th council meeting.

Instead of the usual array of empty seats, the council chamber was filled with city residents. Although their specific concerns varied, the residents addressed the same topic of vital concern: maintaining the high quality of residential life in our city.

I was glad the residents spoke up. There is a real disconnect between what at least one council member thinks is a top priority for our city---i.e., doing anything and everything to support, foster and expand businesses and business activity in the city, even into residential areas--- and what residents’ top priority really is--- preserving and fostering high quality residential neighborhoods and high quality residential life in our city.

While maintaining a diverse tax base is an important and worthy financial goal for our city, what distinguishes Highland Heights from surrounding communities---and what keeps our property values relatively high in these very challenging economic times---is the high quality of residential neighborhoods and life that the city has to offer.

Sacrifice those, and Highland Heights’ status as "One of the best places to live" will be lost.

Resident Concern # 1

A majority of the residents who attended the July 27th meeting came to protest a proposed settlement of a property partition lawsuit filed against the city by former Fire Chief Bencin.

 Bencin and a business partner own property along Miner Road and either own or have an option to purchase an adjacent piece of land in the Highland Woods subdivision. The dispute between Bencin and the residents concerns the number of building lots that can be created from that property. The city’s Planning & Zoning Commission (P&Z) decided that the minimum lot requirements that were in place when Highland Woods was developed  (rather than current minimum lot size requirements) applied to the property, which meant that it could be divided into six 100’ x 175’ building lots.

Bencin sued the city after the residents successfully challenged P&Z’s decision. That litigation has been pending for several years. While the city had some legal success early on, the judicial tide later turned against the city. As a result, Law Director Tim Paluf asked council to approve a settlement, immediately and on an emergency basis, to protect the city from additional legal exposure. Unfortunately---and to the immense unhappiness of the residents---the settlement gives Bencin what he wants: the right to build 6 houses.

Resident Linda Muskulka told council that she felt, “like someone is trying to pull a fast one on us” and that the “city should uphold the current zoning code in the subdivision of these parcels”.

Laura Kramer Kuns pointed out what she felt were procedural and legal errors in the subdivision process and told council that, instead of settling the case, they need, “to make Judge Gallagher (the trial court judge) do her job.”

Jacob Schott illustrated what the proposed settlement meant to him: “The speed limit on Miner Road is 35 miles per hour. (With the settlement) We’re going to grant this group the right to go 50.”

After listening to the residents and discussing the issue, council voted to approve the proposed settlement, as recommended by Law Director Tim Paluf.

Only Councilman Ed Hargate voted no. Apparently Hargate did not feel it necessary to share his thoughts or reasons with Paluf, his council peers, or with the public. He remained mum throughout the discussion and cast his “no” vote without stating on the record why he chose to disregard Law Director Tim Paluf’s legal advice.

To read more about the zoning decisions that resulted in the lawsuit:

http://www.highlandhts.com/docs/planning_and_zoning/public%20hearing%20minutes/2008/06-09-08_public_hearing_minutes_PZ08012.pdf
http://www.highlandhts.com/docs/building_and_zoning_appeals/2009/bza.min.081408.htm

Linda Muskulka (Melisa L. Muskulka)'s letter to the editor, following up on her comments to council:

http://blog.cleveland.com/sunmessenger/2010/08/highland_heights_should_examin.html

Sun Messenger's story on the residents' concerns:
http://blog.cleveland.com/sunmessenger/2010/08/court_settlement_allows_six_ho.html
Status: Ongoing.
In a management letter, the city’s private auditor recommended that the city adopt several new laws and policies.
Law Director Tim Paluf drafted an ordinance based on Mayor Coleman’s proposed city-owned vehicle policy. A first reading of that ordinance took place at the July 27th council meeting. The ordinance was then referred to council's Legislative and Finance Committee for review.
Finance Director Anthony Ianiro reported that he is still working on an ethics/conflict of interest policy and disclosure form and a computer use policy. He did not commit to a deadline for finishing that work.


Item Four: Investigation of Summer Swim Team Coach

Status: Uncertain


I recently learned from a city summer worker’s parent about a situation involving a male Highland Heights summer swim team coach, who allegedly engaged in inappropriate communication with at least one young teenage female swim team member.

Neither Recreation Director David Ianiro nor Police Chief Cook mentioned the matter when giving their reports to council at the July 27th council meeting. Although I don't know for sure, I assume that this matter is currently being investigated.

The coach at issue is not a resident of our city and apparently never participated in the city's summer swim program. It is unclear how he came to the city's attention and whether he received preferential treatment over a HHts resident and/or a HHts swim team alum.


The situation raises a global question about how summer rec workers are hired---what hiring processes are used and what screening takes place (if any) before job offers are made?I keep wondering---shouldn’t HHts students and residents have first dibs on HHts summer jobs?

Apparently that’s not how it works, at least under the current administration.



Watch for my next post: Part Two: Report on the July 27th Council Meeting.

The end.


Resident Concern # 2

David Saltenis, a resident and Highland Heights fire-fighter, shared a different quality of residential life concern with council. He reported on a simmering and increasingly volatile dispute with one of his neighbors.

While council is not really in a position to fix such matters (Council President Scott Mills asked Police Chief Cook and Building Commissioner Dale Grabfelder to look into the situation), the fact that Mr. Saltenis came to the meeting to discuss the situation with council demonstrated just how important living in a high quality residential neighborhood is to Mr. Saltenis---as it is to most Highland Heights residents.

City Watch

Item One. Posting of 2008 Structural Engineer’s report on City’s Website
Status: Resolved


I am happy to report that a full copy of the structural engineer's 2008 report on the Old Church Building has finally been posted online, on the city’s homepage.

http://www.highlandhts.com/


Item Two. Old Church Building
Status: Bid specs for demolition of the Old Church Building will be presented to council at an August 17th Committee of the Whole (COW) meeting.


Council approved putting the demolition work out to bid several months ago.
City Engineer Steve Hovanscek later explained that he couldn’t prepare the bid specifications before council left for its regular August recess because of delays resulting from Mayor Coleman's failure to promptly sign the contract for a required, pre-bid asbestos evaluation of the building. Hovanscek told council this week that the bid specs would be ready by mid-august.
Council President Scott Mills scheduled a mid-recess COW meeting, to give council the opportunity to review the bid specifications before the public bidding process begins.


Item Three: Auditor’s recommendations for new city policies

Sunday, July 25, 2010

Reality Check

I have to admit I was pretty dumbfounded when I read Mayor Coleman’s statements about the Old Church Building, which appear in the July 2010 edition of Highland Highlights.

(As usual, the postings on the city’s website are woefully behind and out of date. I’ll add the link to the July 2010 newsletter when it becomes available.)


 
This is what Mayor Coleman said:


"Update on the Church Property
As many of you know, the city has owned the church property adjacent to city hall for the past few years. We have discussed many times at council meetings what should be done with the property. We have reached out to residents and have received many suggestions. Most of the ideas, unfortunately, involved renovation costs that were outside of our budget. We continue to get proposals for the property. 
Recently, a social group offered to renovate the entire building at their cost in exchange for their use of part of the property for a long term lease. The city would still have access to the building and would be required to maintain the property, but would not need to bare the cost of the renovations. The details of the proposal are still being studied as to whether or not it is feasible. More information to come in the future."

Reality Check Time.

I was there when the single-sex, private social club first pitched their barter/lease proposal to council, and I have a copy of their written proposal, detailing the proposed arrangement. Here are the facts:


Reality Check # 1.The club never committed to “renovating the entire building at their cost”.

I have checked and double-checked my notes. During the June 1st Committee of the Whole (COW) meeting, a club representative told council that the club:
1) did “not want to spend $280,000” to buy the property;
2) would provide an estimated $ 100,000 worth of their own labor and material to “restore the left side of the building (the sanctuary) and install two bocce courts there;” and
3) would be willing to undertake “other restoration projects” at some time in the future, doing work that the “city and we agree on.”

http://www.highlandhts.com/docs/city_council/committee%20minutes/2010/06-01-10_council_committee_minutes.htm


During a June 15th COW meeting, Mayor Coleman described the club’s proposal this way: “They offered to reconstruct the building, including the roof, air conditioning and heating unit, interior needs and cement work and all to City specifications.”
http://www.highlandhts.com/docs/city_council/committee%20minutes/2010/06-15-10_council_committee_minutes.htm


On June 30th, the club submitted a written proposal to the city outlining what it was willing to do as its part of the proposed barter/lease deal. The club proposes to do far less work than Mayor Coleman reported--and far less work than is necessary to fully renovate the building and bring it up to code. The club has agreed to do the following:
1)  “constructing three bocce courts;”
2) “providing a new roof;"

3) “repairing the many sections of the interior ceiling damaged from leaks";
4) “remodelling” the kitchen and 2 meeting rooms;
5)  scraping and painting the exterior:
6) “updating” the bathrooms; and
7) “inspection of” the HVAC, plumbing and sewer systems and the concrete areas, with “possible” repairs.


Bottom Line: What the club has actually offered, in writing, to do is far less than what Mayor Coleman described in the July newsletter.


Reality Check # 2.
Even if the club’s proposal were accepted, city taxpayers would still have to “bare” (sic, “bear”) most of the cost of renovating the building.
While the club’s “inspection” offer is certainly a generous one, the city has already paid a professional structural engineer to inspect and evaluate the building. If anything, the building’s condition has deteriorated since that inspection was performed in 2008—presumably increasing the renovation cost. http://www.highlandhts.com/docs/pdf%20files/CT_Report.pdf


According to the structural engineer:
1) the building’s electrical, plumbing and HVAC systems are obsolete and/or non-functioning and should be completely replaced;
2) the building has minimal insulation, and its doors and windows are substandard and should be replaced;
3) the building’s current septic system is unusable; and
 4) because all renovation work has to meet current building codes and be ADA-compliant, the bathrooms need to be completely redone, not simply “updated".



The engineer’s estimate to properly renovate the building in 2008 was $773,262. Based on the engineer’s estimates, the value of the work that the club has committed to doing is far less than even their own $ 100,000 estimate: “new roof” ($16,000); exterior painting ($3,000); “repairing many sections of the ceilings” ($ ?. The engineer stated that all of the mold-ridden interior ceilings, drywall and insulation—not just the ceilings---needed to be replaced, at an estimated cost $14,000); and “updating” the bathrooms ($?. The engineer estimated it would cost $20,000 to upgrade (not just “update”) the bathrooms to meet current building code and ADA requirements).


Bottom Line: Even if the club’s proposed restoration work is worth $100,000, that would still leave a $673,000 tab for the city to pick up, to complete the rest of the necessary renovation work.

 
Reality Check # 3.
The club would not just use “part of the property”---they’d use most of it.

At the June 1st COW meeting, a club representative told council that the club was pursuing the barter/lease deal for the Old Church Building because the club “wants a place of our own” and that the club would want “sole use of the bocce courts at night.”
The Club’s June 30th written proposal includes a drawing of the club’s proposed interior reconfiguration of the building. As the club envisions it, they would reconfigure the building to hold three (not the original two) large indoor bocce courts spaces and two small “meeting rooms,” fit in around the bocce courts.

Bottom Line: The proposed bocce court areas will take up most of the building.

Reality Check # 4.

At the June 1st COW meeting, Mayor Coleman stated that he was “very supportive” of the club’s proposed barter/lease arrangement for the Old Church Building---an arrangement that the mayor, the club, and Councilman Frank Legan have all positively characterized as being a public-private “partnership” between the city and the single-sex, 40 member private social club.


Whatever their enthusiasm, City Law Director Tim Paluf told council at the July 20th COW meeting that legally there “can’t be a partnership” and that the city “can’t partner with them (the club) or anything like that, that’s for sure”.

Bottom line: However exciting or attractive the club’s barter/lease proposal for the city-owned Old Church Building might be to the mayor or others, the city is apparently legally barred from entering into such a “partnership” arrangement with the club.


Which leads to this question: If the arrangement isn't legal, why is Mayor Coleman discussing it in the newsletter?
The end.