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MINUTES OF THE REGULAR MEETING COUNCIL PRESIDENT GAMBER I d like to welcome all of you to Massillon City Council for Monday, November 5, 2007. We have in attendance with us this evening: Mayor Francis Cicchinelli, Safety Service Director Mike Loudiana, Auditor Bill Hamit, Law Director Perry Stergios and Community Development Director Aane Aaby. On the wall to your left are agendas for anyone who wishes to follow the meeting. Also under item #5 on the agenda is where the public can speak on any item that appears on the agenda and then under item #17 is where the public can speak on any item that does not appear on the agenda. I d also like to remind anyone with a cell phone please turn it off or turn it very far down. 1. ROLL CALL Roll call for the evening found the following Council Members present: Tim Bryan, Kathy Catazaro-Perry, Jayne Ferrero, Chuck Maier, Ron Mang, Paul Manson, Dave McCune, Donnie Peters and Tony Townsend. Thus giving a roll call vote of 9 present. 2. INVOCATION COUNCIL PRESIDENT GAMBER I’d like to recognize Councilman Donnie Peters for the purpose of the invocation and pledge of allegiance. COUNCILMAN PETERS Well, I’m not going to invocation I’m just going to ask all of council and the people in the audience to bow their heads in remembrance of one of our constituents who attended a lot of our council meetings I know since I’ve been here for the last two years Sara Lucille Albert. She used to sit in the front row there and take notes at every council meeting she passed away this past Saturday after a very brief illness and I’d ask that we all say a little prayer for her. COUNCILMAN MANSON – Gave the invocation for tonight. 3. PLEDGE OF ALLEGIANCE COUNCILMAN MANSON – Chairman of the Environmental Committee led those in attendance in the Pledge of Allegiance. 4. READING OF THE JOURNAL COUNCIL PRESIDENT GAMBER Madame Clerk are the minutes of the previous meeting transcribed and open for public viewing (THEY ARE) Are there any additions or corrections to the minutes. If not the minutes stand approved as written. 5. REMARKS OF DELEGATIONS AND CITIZENS TO MATTERS ON THE AGENDA 6. INTRODUCTION OF ORDINANCES AND RESOLUTIONS ORDINANCE NO. 124 – 2007 BY: HEALTH, WELFARE & BLD REGULATIONS COMMITTEE Amending CHAPTER 1309 “HOUSING CODE” of the Codified Ordinances of the City of Massillon, Ohio, by repealing existing Section 1309.14(a) “REPAIR, REMOVAL OR SECURING OF FIRE DAMAGED BUILDINGS OR STRUCTURES” and enacting a new Section 1309.14(a) “REPAIR, REMOVAL OR SECURING OF FIRE DAMAGED BUILDINGS OR STRUCTURES” of CHAPTER 1309, and declaring an emergency. COUNCILWOMAN FERRERO – This is just a bit of a language change we talked about it at our work session. In section 1 what we’ll be doing is we’ll be repealing section 1309.14 repair, removal or securing of fire damaged buildings or structures of Chapter 1309 of the housing code. In section 2 will be replacing that 1309.14 with repair, removal or securing of fire damaged buildings or structures of Chapter 1309 housing codes. I will be asking to waive the rules. If you have any questions I’ll be certainly happy to try to answer them for you. COUNCILWOMAN FERRERO moved for suspension of the rules and passage, seconded by Councilman Manson. The rules were suspended by a roll call vote of 9 yes. ORDINANCE NO. 124 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES. ORDINANCE NO. 125 2007 BY: FINANCE COMMITTEE Making certain appropriations from the unappropriated balance of the Wastewater Treatment Fund, Capital Improvement Fund and the 1201 Street Fund, for the year ending December 31, 2007, and declaring an emergency. COUNCILWOMAN CATAZARO-PERRY Section 1 of Ordinance No. 125 we’re going to appropriate from the unappropriated balance of the Wastewater Treatment Fund $96,000.00 for supplies and materials. This is for two phoenix inner control units and also for some calgon carbon canisters. Section 2, we’re going appropriate from the Capital Improvement Fund $14,000.00 for a rescue gator for the fire department. Section 3 in 1201 we’re going to appropriate money $3,500.00 for storm sewer repairs this is for two items a catch basin on 1860 John Carroll and also storm repair John Carroll Drive and Heidelberg Drive SE. COUNCILWOMAN CATAZARO-PERRY moved for suspension of the rules and passage, seconded by Councilman Bryan. The rules were suspended by a roll call vote of 9 yes. ORDINANCE NO. 125 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES. ORDINANCE NO. 126 2007 BY: FINANCE COMMITTEE Reducing the appropriation in the Legends Operating Fund, of the City of Massillon, for the year ending December 31, 2007, and declaring an emergency. COUNCILWOMAN CATAZARO-PERRY Ordinance No. 126 – 2007 would like us to reduce the appropriations in the Legends Operating Fund $35,522.00 in supplies, materials and postage, $22,806.00 in utilities, $15,665.00 services and contracts, $12,450.00 capital equipment, $9,012.00 hospital, dental and eye, $3,842.00 from the account gas and oil, $2,500.00 sales tax, $1,642.00 bank charges, $1,000.00 from uniform allowance and $181.00 from travel and seminar totally $104,620.00. COUNCILWOMAN CATAZARO-PERRY moved for suspension of the rules and passage, seconded by Councilman Peters. The rules were suspended by a roll call vote of 9 yes. ORDINANCE NO. 126 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES. 7. UNFINISHED BUSINESS 8. PETITIONS AND GENERAL COMMUNICATIONS 9. BILLS, ACCOUNTS AND CLAIMS 1. INDEPENDENT - $1,626.65 COUNCIL PRESIDENT GAMBER Councilwoman Catazaro-Perry? COUNCILWOMAN CATAZARO-PERRY I move that we pay the bill, seconded by Councilman Peters. Roll call vote of 9 yes to pay the bill. 10. REPORTS FROM CITY OFFICIALS A). MAYOR SUBMITS MONTHLY PERMIT REPORT FOR OCTOBER 2007. COPY FILE COUNCIL PRESIDENT GAMBER We’ll bring the Mayor up in just a moment; we need a motion to accept the auditor’s report. COUNCILWOMAN CATAZARO-PERRY I move that we accept the auditor’s report for October 2007, seconded by Councilman Peters. Roll call vote of 9 yes to accept the auditor’s report. COUNCIL PRESIDENT GAMBER Would like to invite Mayor Cicchinelli forward as it indicates he does have an announcement to make regarding community development. MAYOR CICCHINELLI – It was our intent to announce to council actually being the first to hear about this project. But as it sometimes the case when you go before other levels of government sometimes a release is done ahead of time. The Ohio Department of Development with their role in this project released had a press release last week. But there’s still some information that needs to be semenated and I think members of council need to be aware of that. You know about Patent Health and Universal Syndication’s plan on moving at least 500 jobs to the old Republic Steel office building. Enough’s been said in the news media concerning the company and the history of the company. I wanted to just concentrate just a little bit take a couple of minutes to concentrate on what I’m asking council’s for their approval and our role in attracting this company here. I passed out a sheet for you to follow along what we’re asking to do is two economic development inducement grants. The first one being $60,472 pretty self explanatory that those dollars would be paid upon the start up of the business operation as they move into the facility. A minimum of 75 jobs would be required, but then over an 8 year period another $100,000 and we’re doing something a little unique and we’ve not done this before if you turn the page to the chart it shows the plan payment for the $100,000. What we’re doing is in each year we’re assuming if you go to the right we’re assuming that the jobs created will be as announced $14.92 average salary so that equals about $31,000 a year for $14.92 an hour averages out to $31,000 a year. So we took the conservative route and made the salary at $30,000 okay? So if you follow along you can see that in each year we are going to depending on what level of jobs they create we’re going to provide them with an inducement grant. It’s based on the number of employees they hire its total is a $100,000 the difference is let’s take 2010 they anticipate 350 jobs in 2010 at $30,000 that as far as their payroll is $10,500,000 our income tax rate is 1.8 so the City of Massillon that year through income taxes generated by this company will be getting $189,000 now the 6% grant rate is our creation to structure this in an 8 year period. Then that of course means that based on those job creations that we will pay them a grant total of $11,340 in 2010. Those dollars all the grant monies come out of our economic development grant monies that we have accumulated through the sale of land and whatever we can put in there. So its pretty self explanatory each year; now we maxed it out at 500 because that’s what they say they will at least create that much in recent public comments by company officials it might be a little higher than that. Then all that does is they get their money faster if they create 600 jobs, 700 jobs, they can get the dollars faster. But this sort of is a different way to approach it because they don’t get the money unless the jobs are created and it’s based on job creation. So we sort of were a little innovative and creative here the maximum amount if you take if you look at the chart and go all the way down to the end the maximum amount is $160,472. Why the odd the number that’s basically what the state said that our local share had to be that’s why that number was used. But to attract this company and we’re just using 500 jobs in the years that they have stated in the 8 year period that this grant is alive income taxes we will get in that 8 year period $1,674,000 in income taxes. Our investment from another fund economic development fund is $160,472 so I think that’s a pretty fair and a pretty good investment. Other things, other stipulations that we put in the company must stay in Massillon for 16 years so the sometimes as we give incentives to companies some folks say “yeah, but sometimes we hear that some companies leave after the tax abatement has expired”. Well, that’s only happened and it wasn’t even full term of the tax abatement that happened once when we lost a company and that was recently with Rayco. We are seeking our grant back but our tax abatement has been cancelled council of course you folks cancelled that grant. That’s the only time that ever happened there’s companies that did receive tax abatement are all still in business, but what we did the grant period was only 8 years we doubled it to 16 years asking them to pay I mean asking them to stay at least 16 years. With that amount of time and that amount of investment we think this company will be around a long, long time. The state also has that in their incentives, no jobs shall be relocated from the project site, the project must remain in compliance with the Ohio Job Creation Tax Credit. Of course, these grants are subject to your approval and discussion. That pretty much summarizes hopefully our participation, but its I think a great project for our city and its putting to use a building that’s been around our city for a long, long time and I think its an excellent use and shows that development takes on a lot of different creations and this is bringing 500 jobs back to a building that didn’t have 500 jobs a lot in the past. So I’m here to answer any questions and that’s also that’s why it’s important that we continue to come up with innovative and creative ways to put more money in our economic development fund. We may be bringing some things to council to do that and try to come up with more ways to increase revenues from whatever we can do whether it’s the sell of additional land or whatever to put money in this account because the money does come in handy and if it wasn’t around we wouldn’t be talking about these jobs and this company. COUNCIL PRESIDENT GAMBER Are there any questions for the mayor? Mr. Mayor, I have one what is your timeline as far as any council action on this? MAYOR CICCHINELLI – Well, we’re going to be following the procedures of council and you’ll be getting requests here shortly. COUNCIL PRESIDENT GAMBER Did I see a hand go up, Mr. McCune? COUNCILMAN MCCUNE That was my question as well. COUNCIL PRESIDENT GAMBER Mr. Manson? COUNCILMAN MANSON – Yes, now you’re saying our maximum would be $160,000 and some odd dollars and its my own curiosity out of the newspaper they said the Ohio Department of Development awarded Patent Health $2, 100, 000 in job creation tax credit. Now where does that come from? MAYOR CICCHINELLI – The state, they have dollars that they set aside for economic development and these dollars come from a variety of sources and those are state dollars. Okay, it’s a credit that they take off of their taxes so in reality it’s not a grant. Its still dollars that they can utilize but their tax credit is coming from the company they pay taxes. COUNCILWOMAN FERRERO I just want to commend the Mayor because I love when I pick up the paper and see new jobs are coming to our area and I think the people that live in our city are grateful for that. So thank you, Mr. Mayor. COUNCILMAN BRYAN I just had a question about the $14.92 figure. Is that actually cash of salary or does that include the cost of benefits? MAYOR CICCHINELLI – That’s wages and there’s an additional $4.48 for benefits; $14.92 an hour plus $4.48 to benefits according to the press release. COUNCIL PRESIDENT GAMBER Mr. McCune? COUNCILMAN MCCUNE I would just like to echo what Jayne said about commending the Mayor as someone who worked down on that site for 27 years or across the street from that office building. It was breaking my heart to watch it come down and to know that its going to come back to life down there I’m sure along with a lot of my former co-workers it makes them feel equally as good. MAYOR CICCHINELLI – Well, you know another thing too after it was sold out of the…it was sold to Mike Farani and his group he actually moved a business and spent a considerable number of dollars to fix that building up put all new windows in it, clean it up and it was actually he bought it as an investment to put his brother’s business in that business actually grew it was on the first floor. Then it became available and that’s when these folks bought it. So if the dollars weren’t put in earlier to renovate it I don’t know if we’d be talking here. But they put in an extensive amount of money in the building. Okay, thank you. 11. REPORTS OF COMMITTEES COUNCIL PRESIDENT GAMBER As far as committee reports next Monday is Veterans Day the city will be closed so council committee meetings will be on Tuesday, November 13th. COUNCILWOMAN FERRERO I won’t be here so in my absence if there’s anything for my committee I’ll pass it onto Mr. Manson. 12. RESOLUTIONS AND REQUESTS OF COUNCIL MEMBERS 13. CALL OF THE CALENDAR 14. THIRD READING ORDINANCES AND RESOLUTIONS .SECOND READING ORDINANCES AND RESOLUTIONS RESOLUTION NO. 14 2007 BY: ENVIRONMENTAL COMMITTEE A resolution authorizing the Director of Public Service and Safety of the City of Massillon, Ohio, to send a letter of support to the NEFCO approving its request for a 201 Mini Update for the Massillon, Navarre Facilities Planning Areas, and declaring an emergency. COUNCILMAN MANSON Yes, I just circulated a proposed amendment we had some language questions at the last council meeting. So we just gave it one reading and then we decided to go back and look at the language and then bring back an amendment. If you look at the part where it says title first paragraph under environmental committee it says “to send a letter of support to NEFCO approving its request for 201 Mini Update on the Massillon, Navarre Planning Area”. This now says “to submit a map revision to NEFCO for approval of a 201 Mini Update for the Massillon, Navarre Facilities Planning Area, and declaring an emergency”. That’s the area down there where we are trying to annex for the Shearers Potato Chip Company. COUNCILMAN MANSON moved to amend Resolution No. 14 - 2007, seconded by Councilwoman Ferrero. RESOLUTION NO. 14 – 2007 WAS AMENDED BY A ROLL CALL VOTE OF 9 YES. COUNCILMAN MANSON moved for suspension of the rules and passage, seconded by Councilwoman Ferrero. The rules were suspended by a roll call vote of 9 yes. RESOLUTION NO. 14 – 2007 WAS PASSED BY A ROLL CALL VOTE OF 9 YES. 16. NEW AND MISCELLANEOUS BUSINESS COUNCIL PRESIDENT GAMBER Is there any new or miscellaneous business to bring forward? Alright, we have Safety Service Director Mr. Loudiana would like to come forward. SAFETY SERVICE DIRECTOR LOUDIANA – Keith couldn’t be here tonight but he wanted me to go over a couple of things with council. He’s going to ask for $20,000 to complete the 27th Street project I don’t know if you remember there was quite a bit of base work that had to be done that wasn’t included in the project. We had to dig out most of the road in some areas and put new base in. So that project is finished we want to get the bills paid before the end of the year that will be out of the account 1201 which is street construction. You’ll be receiving that the next committee meeting and then pass it at council. What we wanted to know is if any of these things you have a big problem with we may have to get started on it before that. The other item is on Ray Avenue between Oak Manor and Shaw there again the basin’s worse than we thought and its’ going to require another $3,096 to fix that. We also have an increase in paving for a couple of alleys downtown that really need it. They’ve been patched, re-patched and they’ve gotten so bad and we’ve had some complaints on Charles with people for wheelchairs getting out of the vans and wheelchairs and they wheel them across the street its just bad there. We would do also want to be doing Postal Place to Federal from Lincoln Way I’m sorry, yeah, Postal Place to Federal, Postal Place to Charles and then Postal Place to Federal. That would cost about $16,300 and we wanted to do that now because these people will be leaving they’re doing the roads and the cost will be a lot higher and if we wait another year we’re just going to be patching those alleys. So that’s what I’m here for to see if anybody has any real problems if that I talked to Donnie I talked to Bill we may have to be honest with you on a couple of these go into Capital Improvement, the inheritance tax to get some of this money. The money for 27th Street is $20,000, the money for these other three Oak Manor and Diamond and Postal Place comes to $19,489. So if anybody’s got any problems with it lets hear it. COUNCIL PRESIDENT GAMBER Mr. Bryan? COUNCILMAN BRYAN I didn’t have a problem it I’ve got a question or two. Help me again on the alleys downtown which ones are you talking about. I think I know which one is Postal Place is. SAFETY SERVICE DIRECTOR LOUDIANA – It will be Diamond Court okay, southeast to Erie Street I’m sorry Diamond Court from Erie Street South to 1st Street SE. Lieberman’s, yes, then Postal Place SE, Lincoln Way East to Charles then Postal Place SE, Lincoln Way East to Federal. Then Ray Avenue you understood that one? COUNCILMAN BRYAN Yeah, I know where Ray is. Now, then maybe you can’t answer this Mike and maybe we’re going to have to ask Bill to get up but there was a rumor about us getting some money back on the Erie Street 241 project. Do you know if that money’s coming back? SAFETY SERVICE DIRECTOR LOUDIANA – I don’t know if it got back yet or not. He might know that. COUNCILMAN BRYAN Because that was going to go back in the 1201 account or fund. SAFETY SERVICE DIRECTOR LOUDIANA – Well, there’s money in 1201 but that’s construction. COUNCIL PRESIDENT GAMBER Are there any other questions for Mr. Loudiana while he’s up? SAFETY SERVICE DIRECTOR LOUDIANA – I guess my main question is on the alleys if we could go ahead and start those, get the approval. COUNCILMAN BRYAN Are you saying that can’t come out 1201 because they’re alleys? SAFETY SERVICE DIRECTOR LOUDIANA – Yeah, the 1201 is construction from what I understand. AUDITOR HAMIT – It could be utilized as such. SAFETY SERVICE DIRECTOR LOUDIANA – Alright, so we can find the money somewhere. So if there’s no problem with us starting ahead of time to do that since the company’s here. COUNCIL PRESIDENT GAMBER Okay, we’re starting to have too many side discussions here. Are there anymore questions for Mr. Loudiana? Alright, if not we’ll bring Mr. Hamit the auditor to make his comments. Then Mr. Peters has a question. AUDITOR HAMIT – Mr. Bryan, the money that came back off of 21 on Erie Street Bridge was out of Market House TIF, it went back into Market House TIF was $172,000.00. They double we put 342 in that escrow account that’s what the state asked for and it returned just about half of it. So the bid came in quite short what they expected down there. So that answers that question. This other question that Mike’s talking about right off the surface talking tonight without talking to the brains of the outfit downstairs. I’d rather have it come out of 1201 totally then to step on the inheritance tax money because that we don’t know where we are with some of the other funds we have. But that would be my first pick on it take that was it $40,000 Mike, roughly $40,000 out of street construction 1201. But one or the other if not we can provide legislation it’s your decision if you want to take it out of inheritance tax money. COUNCIL PRESIDENT GAMBER Thank you, Mr. Peters, you had a comment? (Not anymore) Alright, is there anything else for the auditor? I thank you, Mr. Hamit. Is there anything else for the good of the order? .REMARKS OF DELEGATIONS AND CITIZENS TO MATTERS NOT ON THE AGENDA MELISSA MORRIS – I am recent this year transplant to your city so I’m unfamiliar how receptive council is to concerns and complaints of the citizens, but I thought I would give it a try. I currently reside at 1121 Oak Avenue which is about half way between here and the high school. Actually after hearing about paving anything I wasn’t sure whether to say anything. But I have great concerns about the safety of that hill not only for basic residents but also for our students because in the months of watching continuously not only the traffic but the children and having myself try to walk that hill frequently and the sidewalks. It is exceptionally dangerous not only because of the speeders and the excessive traffic but because of the sidewalks the children are forced to walk and regular residents in the road. It’s not only missing sidewalks at the serpentine curve on the north side which is right there a blind where speeders will come flying around, but also on the south side of that same hill the sidewalks are in such extreme disrepair from tree roots and water erosion and they’re the old slate that you can break an ankle. When winter comes I experienced this earlier this year the ice and everything because of them sliding down the cracks it is detrimental to anybody’s welfare. But then we also have a blatant lack of police presence on that road and during the late evening hours especially after bar time the speeders and folks under the influence will come flying up through there and ordinary residents like right there going to Republic Steel you know I’ve seen many times almost head on collisions. Two nights ago I watched a car come flying up the hill because I work very late at night and I will come out of my porch I work from my home he came flying up that hill lost control of the car there’s now a great deal of rubber, sparks all that, left the car sideways right at the top of the hill. I have called the police department numerous times and have had them disregard or it will be a half an hour an officer will come by and whoever in this case (inaudible) perpetrators you know they’ll be gone. I’ve also had you know problems there’s extreme rowdiness in that neighborhood and I feel very put off that the police seem to disregard those matters as you know “oh let them go”. There will be large groups frequently there’s a number of problem houses on that hill I know not probably the most wholesome citizens but still that can affect the welfare of others in our community when they leave these parties and if surrounding homes are affected. I believe there should be an increase presence and they shouldn’t disregard these get-togethers that do get quite of hand and the large groups of people that will be walking in the road under the influence and just an ordinary citizens are per say going to Republic Steel and how that there will be more folks this is an all hours of the day problem whether it’s the children leaving school, going to school in the morning because there’s a time lap with the comings and goings of the children and people going to Republic Steel. If we’re going to have increased traffic I really think if only one thing is addressed on that hill it should be the addition or repair of sidewalks since nothing can be done about blind you know its lay out direction. So I just wanted to come forward and actually have my say of that if council is not aware of that problem and the gentleman was already discussing dangerous roads in ill repair. So I thank you all for listening. COUNCIL PRESIDENT GAMBER Alright, we appreciate you bringing that forward. The fourth gentleman down is Mr. Townsend this is your ward councilman I would suggest that the two of you talk for a few moments after council. Mr. Townsend does a very good of bringing concerns back to council and to the appropriate departments in the city administration. MELISSA MORRIS – Well, I was hoping that Massillon would hear people out as well as North Canton. I frequently would attend their meetings well you don’t all seem as stiff. But I appreciate it and I will probably attend meetings coming in the future. So I hope I’m not sitting in that fine lady’s seat. Well, thank you very much for hearing me out. 18. ADJOURNMENT COUNCILMAN MANSON – I move that we adjourn, seconded by all.
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