12/05/1989 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 12/5/89 -5- Audience participation: Norm Musial, 27950 Sanders Lane, discussed the formation of a North Olmsted Charitable Foundation currently being planned. Legal work is now being final- ized; intent is to fund it preliminarily with $100 corpus and apply to IRS for a tax exempt number and status which will be done in January. Following IRS approval, a $10,000 donation will be solicited from individuals already contacted. Upon receipt of this $10,000 donation, some sixty corporations with off ices or outlets in North Olmsted will be approached. Goal is to have roughly $100,000 in cash by the end of 1990, with roughly $400,000 pledged, and with an ultimate goal of $6,000,000 in roughly five years, A charitable foundation is a vehicle by which corporations and individuals can make donations to the charitable foundation which are tax deductible. The founda- tion, in turn, must give 5~ of the principle to the city every year. This money may be used to purchase squad cars, fire engines, etc. This is not meant to be a short term solution to the city's financial woes but hopefully, in time, will help ease the city's money problems. In answer to Mr. Wilamosky's question, Mr. Musial stated that the trustees would be afive-person board of trustees, who may or may not be residents of North Olmsted. Board will involve an attorney, a financial management in- dividual, a banking institution representative and some accounting personnel. There will also be a nine member distribution committee; possibly looking at two members from the city administration; two members from the Chamber of Commerce; one or two members from Community Council; one or two members .from North Olmsted associations; one or two members from the North Olmsted ministerial group and any open position appointed from at-large. The criteria for the composition of the board of trustees is not regulated by the IRS. In response to Mr. Bohlmann's question, Mr. Musial stated that 5~ MUST be contributed to the city or there would be a 2~ excise tax, however, any amount could be given to the city, including the entire $6,000,000 if the qualif ication board decided to do so. In response to Mr. McKay's question, Mr. Musial stated that the only paid position on the board of trustees would be the banking institutional representative who would act as a custodian for the funds, filing the 906 annual income tax return and items of this nature. In response to Mr. O'Grady's question, Mr. Musial stated that the City of North Olmsted would be the recipient of the charitable portion of the funds; this is provided for in the IRS Code. Will keep council advised as this plan develops. LEGISLATION: Resolution No. 89-88 introduced by Mayor Petrigac was given its third reading. A resolution authorizing the Director of Public Service to advertise for bids for 50,000 gallons of sodium aluminate for use by the North Olmsted Wastewater Treatment Facilities Plant, and declaring an emergency. Mr. Wilamosky moved for adoption, second by Mr. McKay, unanimously approved. Resolution No. 89-88 adopted. Ordinance No. 89-96 introduced by Mayor Petrigac was given its second reading. An ordinance establishing the compensation, benef its and working conditions for salaried employees employed by the North Olmsted Municipal Bus Line, who are not members of the North Olmsted Transit Employees Association, Collective Bargaining Unit, and declaring an emergency. Mr. Wilamosky moved to amend Ordinance No. 89-96 by adding "as amended" to the title; in Section 1, striking out the positon and range of the "secretary"; in Section 9, striking out Subsections (a), (b) and (c) and inserting the language given in the Finance Committee report earlier, second by Mr. McKay, unanimously approved, Ordinance No. 89-96 amended and placed back on second reading. J'