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FINANCE, ADMINISTRATION, RECREATION, SERVICE,
ENGINEERING and GORMAN FARM
COMMITTEE MEETING MINUTES
January 5, 2010
The Finance, Recreation, Service, Engineering and Gorman Farm Committee met at 7:00 pm on January 5, 2010. Present were Councilmembers Vonderhaar, Smiley Robertson, and Schaefer. Also in attendance during portions of the meeting were George Snyder, James Jeffords, Dave Nichols, representatives of First Energy, Sandra Murphy, Michelle Gottsclich, and Gus Jenszen.
Electric Energy Supplier/ Gas and Electric Aggragation
Included in this discussion are three separate issues. The information provided comes from Jack Cameron and the representatives of First Energy. Jack Cameron has already forwarded much information on all of these programs to all Council members.
1. Since energy deregulation, Evendale can designate an electric supplier other than using the regulated half of Duke Energy. By entering a supply agreement with First Energy, Energy Alliances or even the unregulated portion of Duke Energy, Evendale could save as much as $150,000 over a two year period. Essentially, what happens is that the electric bill is divided between the energy generation cost and the cost of transmitting the energy to the end user. We would use a broker to lock in the price of energy generation at a fixed rate for a one or two year period. The broker provides the advice on timing of the energy purchase. The rate is usually substantially lower than the regulated rate which floats with demand and fluctuating costs. Since this is
similar to the purchase of an energy future, it is possible, but unlikely that our costs could be higher than simply paying the market rate through the year. An evaluation of our energy usage shows that substantial savings could be achieved. This type of program has become so popular that Duke Energy itself competes on this market.
The Committee recommends that the Council enact the appropriate ordinances to allow Evendale to establish this program. Since there are at least three firms providing this service, a process consistent with our Charter and state law must be established to select the appropriate service provider.
2. Gas Aggregation
This program has become popular with many surrounding municipalities and townships. To participate, the voters must authorize it. To put it on the May primary ballot we must enact the appropriate ordinance by our February Council meeting.
Once the voters approve authorization, Evendale enters an agreement with Energy Alliances or First Energy to be the gas supplier for all residential users. Again the price is locked in during time periods when gas price is low for a one or two year period. This becomes the rate that all participating residents will pay for the gas cost in their Duke Energy Bill. The cost of transmission of the gas is separated out and charged separately under PUCO regulations. At various time periods, residential customers may opt out of the program. Typically, First Energy has had an agreement with gas suppliers that if the locked in price is higher than the current market price, 48% of the differential can be recovered for the First Energy customers.
Enactment of the ballot referendum does not bind Evendale to establish the program. It merely allows Evendale to establish the program. The eventual broker, whether it is Energy Alliances, First Energy, or someone else would have to be selected at a later time in a process consistent with our charter and state law.
The committee recommended placing this on the May primary ballot.
3. Electric Aggregation
This works exactly the same as Gas Consolidation. Since the price savings have not been historically as great, there are very few participants in this type of program. This would have to be a separate ballot from Gas Consolidation.
Even though this authority would probably not be used as quickly as gas consolidation, the committee recommends that this be placed on the May primary ballot as well.
Finance
George Snyder presented the year end data for 2009 as well as some five year trends.
The unencumbered balances less the debt:
2005 - $ 13,264,981.74
2006 - $ 14,476,700.05
2007 - $ 14,447,068.84
2008 - $ 15,265,070.19
2009 - $ 12,262,355
2010 - budget projection - $ 14,359,988.63
Income trends all sources
2005 - $ 13,288,045.53
2006 - $ 12,943,308.06
2007 - $ 14,049,016
2008 - $ 13,395,185
2009 - $ 12,690,261
2010 - budget estimate - $ 12,309,351
Percentage of appropriation not spent
2005 - 9.05%
2006 - 6.84%
2007 - 12.54%
2008 - 10,89%
2009 - 5.42%
Current Budget Deficit without Road projects (-384,597)
Current Budget Deficit with Road Projects (-1,134,457.41)
Cash balance (as of 12/31/09) $16,483,625.47
Earnings Tax Trends
2005 - $ 11,981,801.74
2006 - $ 11,405,618.63
2007 - $ 12,133,864.84
2008 - $ 11660,684.40
2009 - $ 11,548,338.76
Regarding 2009. The individual withholding was up and the corporate withholding was down. This could indicate a series of employee buyouts that will not be repeated driving down the individual withholding in 2010. George also provided a spread sheet to see if there is regularity to monthly earnings tax receipts. There is not. George attributed this to fact that there are not always the same number of pay days in each month for the private companies. Also, the dates the checks are received fluctuates as well. On that note, George indicated that we should remember that there will be 27 pay days in 2011 rather than the usual 26.
Recreation
Michelle Gottschlich, Gus Janszen and Dave Nichols presented an initiative that would connect existing bicycle paths and facilities and establish new ones in the North Central area of Hamilton County. The program would involve Blue Ash, Reading, Sharonville and Glendale initially. The hope is that each of the communities involved would take initial steps to establish master plans which would inter connect with each other. The Recreation Department wanted to hire an engineering Firm, URS, to begin an initial phase of the program that would cost $5,000 to $10,000. Phase One would establish goals and objectives and determine the level of interest. The recreation department reported that they had existing funds in their budget for this phase of project.
Since no Council action was necessary, the Committee recommended that the Recreation Department proceed with Phase One.
Phase Two is to assess existing conditions at a cost of $20,000 to $25,000. Phase Three, Developing Projects, Policy Recommendations, Prioritization and Implementation strategies costs another $15,000 to $25,000. There is no money budgeted for the last two Phases. Before proceeding with them it will be important to know that the other communities involved are proceeding with their master plans as well. OKI, through Don Burrell, may be able to provide some grant money for this project.
The second recreation issue concerned the pool boiler. It has had rust problems associated with pool chemicals. The mechanism to put the chemicals into the pool water is in the same room as the boiler. After looking into various options to protect the new pool boiler from the pool chemicals, the most effective recommendations is to install a mechanically assisted ceiling exhaust vent over the area of the pool chemicals. The committee concurred in this recommendation. The work will be done by the service department.
The last issue concerning the Recreation Department concerned an idea to get information on various Village Services to new residents. The idea is that when a new resident signs up for the Recreation Membership, the Pool, or other recreation programs, they be given brochures from the Police and Fire Departments, the Gorman Farm, the Cultural Arts Center about Village Services along with their receipt. Dave Nichols thought that the suggestion was a good one and will look into starting the process.
Service Department
Jim Bothe did not attend because he had been up so long with snow removal. It was indicated that he had to submit a reservation form for the new dump truck by December 31, 2009 to get the 2009 price which was about $7,000 lower than the 2010 price. Since that was done, it seems appropriate to complete Council action by authorizing the purchase from the state bid at the January Council meeting, assuming that all the paper work can be completed by then. The committee concurred with this recommendation. The cost of the dump truck is in the budget.
Gorman Farm
Sandra Murphy appeared and advised the Committee that no fixed decision had been made concerning the tractor purchase. The Farm needs a reliable tractor and they are exploring purchases off of the state bid, purchase of a used tractor, and the appropriate size of the tractor to meet the Farm's needs. No decision has yet been made by the Farm as to what they need.
Sandra also noted that the Gorman Farm is having Evendale Resident Information Sessions on January 13, 20, and 27 from 4 to 6 pm and January 15, 22, and 29 from 6 to 8 pm.
Engineering
Depending on the weather it is hoped that the Recreation Building HVAC replacement will be completed in March.
James is continuing to determine if there is savings to be had if Evendale takes over maintenance of street lights from Duke Energy.
The Glendale-Milford project grant has been approved and James' goal is to have bids opened and the contract awarded at the February Council meeting. In discussions with the contractors James expects fairly good prices for the work because there is not a lot of private work, firms from out of state have been bidding Ohio work, and the contractors do not report having a large backlog of new projects. Monet is bid as an alternative that can be dropped if the bid prices are too high.
Next year James anticipates completing the Road and curb project bt doing Gateclub, Pondside, Pheasant Walk, short Fawn Run, new Margate and Macro Drive. The following year, 2012 Evendale will have a grant to upgrade all traffic signals other than the new one at Reading and Glendale-Milford.
Administration
Jack Cameron indicated that the SAEC project is progressing. A lot split will be on the January Council Agenda. SAEC needs a variance on the building set back because one corner encroaches on the 50 set back due to a curve in the street. ZBA should here this by the January Council Metting.
The meeting adjourned at 9:00pm.
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Christian J. Schaefer
Committee Chairman
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