11/16/1999 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 11/16/1999 • Resolution 99-150 accepts the amounts and rates determined by the Budget Commission, authorizes the necessary tax levies and certifies them to the Auditor. This is a standard pro forma resolution which authorizes the County Auditor to act. The committee unanimously recommended approval of Resolution 99-150. • Ordinance 99-151 authorizes the Mayor to enter into an 10-year advertising and exclusivity agreement with the Coca-Cola Bottling Company. Ordinance 99-152 designates a distribution of revenues derived from the agreement between the City of North Olmsted and the Coca-Cola Bottling Company. These two related ordinances were considered together by the Finance Committee. The agreement negotiated with Coca-Cola produces an estimate of $271,000 in revenue for the City of North Olmsted over aten-year period, with $52,000 of this amount being paid in the first year as an incentive program. Additionally, the Coca-Cola Company is making a $25,000 donation to the proposed skate park that will be built on city property at the Recreation Center. The Coca-Cola total of $296,000 compared favorably to a proposal from the Pepsi Cola Company of $196,000. Regarding the $52,000 first year incentive payment, prorated amounts of $500 will go to the Department of Human Resources, $11,100 will go to Springvale and $40,400 will go to the Recreation Center. Concerns were raised by Council members Kasler, Miller and Gareau regarding the $25,000 donation to the skate park. They pointed out that it was agreed that the skate park be built using only private donations and asked if the $25,000 donation was really not part of an amount that should have gone to the city. Mary Creadon and Tom Jenkins both responded that the city did not negotiate with Coca-Cola to have this $25,000 taken from funds that otherwise would have gone to the City of North Olmsted. Extensive discussions followed with these same three members indicating that Coca-Cola's donation to the skate park was somehow questionable. Mr. O'Grady suggested a compromise where the ordinances would be held in committee while the administration attempted to amend them to keep the $25,000 donation separate from these ordinances. This compromise was not acceptable to Council members Kasler, Miller and Gareau. Councilman McKay then offered a compromise where the city's negotiators would return to Coca-Cola and confirm that the company truly intended the $25,000 to go as a donation to the skate park, but this compromise was not acceptable to the three members. When asked what would be acceptable, it was stated that the city's negotiators should return to the Coca-Cola Company requesting that they not donate to the skate park but instead increase the payment to the City of North Olmsted by $25,000. This was unacceptable to the majority of the committee. Seeing no movement towards compromise, the chairperson acted on an earlier motion by Councilman Limpert which recommended approval of these two ordinances. The committee recommended approval of Ordinances 99-151 and 99-152 by a two to one vote with Councilwoman Kasler dissenting. Mrs. Kasler, member of the Finance Committee, gave a minority report: 1) Her objections, and thus dissenting vote on Ordinance 99-151 and 99-152, were based on the following thoughts: These ordinances collectively establish aten-year advertising and exclusivity agreement between the City of North Olmsted and Coca-Cola and further establish the distribution of the revenues derived from that agreement. The problematic 4