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RESOLiJTIOleT NO. 2004-12 <br />INTRODUCED BY: Mayor Rinker and Council as a Whole <br />AN EME1tGENCY RESOLUTION EXPRESSING OPPOSITION TO <br />HOUSE BILL 208 AND THE RETAINAGE REFORM EFFORT <br />WHEREAS, House Bi11208 would radically reform retainage practices in the State of Ohio on <br />both public and private commercial work by: (1) capping retainage at 2%; (2) providing for line <br />item release of retainage by trade when that trade's work is fully complete; (3) requiring owners <br />to pay their bills within 20 da.ys of approval of the draw request, granting of a certificate of <br />occupancy, or expiration of a trade's lien rights, whichever occurs first, or they would be liable <br />for 18% interest and attorney's fees; (4) banning improper or excessive "hold backs" in the form <br />of retainage; and (5) providing that ixiterest would be paid on retainage at all levels of <br />construction; and <br />WHEREAS, a group of public owner representatives from a variety of political and <br />educational organizations met to consider the provisions and merits of the public improvement <br />portion of House Bi11208; and . <br />WHEREAS, this group concluded the Bill is badly flawed and that it uses confusing terms and <br />definitions, provides for unworkable time frames which do not contemplate the processing of <br />payments at the government level, could impose fees and penalties constituting an inappropriate <br />tax on public funds, and would a create an unaffordable financial bookkeeping burden on smaller <br />political entities; and <br />WHEREAS, this group also concluded that House Bi11208 would make retainage <br />meaningless, be expensive to administer, disadvantage the public in the use of public facilities, <br />and is misfocused on public owners instead of holding prime contractors responsible. <br />NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF MAYFIELD VILLAGE, <br />OHIO THAT: <br />SECTION 1. The Council of the Village of Mayfield wishes to express its opposition to House <br />Bill 208 and concem for the negative impact of the proposed radical reform of retainage <br />practices in the State of Ohio. . <br />SECTION 2, The Clerk of Council be, and she hereby is, directed to forward a copy of this <br />Resolution to the Speaker of the House of Representatives, Ohio Senator Robert F. Spada, and <br />Ohio House Representative Timothy Grendell and urge them to oppose House Bi11208. T'he <br />Clerk is further authorized to forward a copy of this Resolution to a11 cities in Cuyahoga Couniy <br />as an indication of the Council's urging for them to pass similar legislation opposing House Bill <br />208.