5/7/2019 Meeting Minutes - Laserfiche WebLink

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Council Minutes of 5-7-2019 Water currently uses a base of $15 million, but they are not committed to $15 million. It is a guarantee of $10 million and they are adding $5 million on their own. The creation of the Municipal Utility District has some provisions in it where they do take care of our water lines. This is great and they mainly do now. They take care of the bulk of our water lines, except the smaller lines, which they are offering to do for us now. However, it ties us to limitations of tax abatements, allowable incentives, there is revenue sharing, income tax sharing depending on which businesses move from North Olmsted to Cleveland or vice versa. There is a question that has not been answered about the valuation of asset and appreciation of debt. Any debt the City holds on the water lines and the appurtenances that go with them the City will continue to hold and be responsible for that debt. The City does not know how the system will be valued for depreciation going forward because the City will no longer be the owners. This was something the committee was not able to get an exact answer on, but it is a concern the committee has. An outside consideration is the City of Westlake is currently in litigation with the City of Cleveland. The City of Westlake is interested in moving their water sources to the City of Avon Lake. As it stands right now, all of North Olmsted's water sources are from the Crown Water Plant located in the City of Westlake. The water has to be transferred through Westlake to North Olmsted. Without knowing the outcome of the litigation it is difficult to decide if North Olmsted will or will not be impacted. The litigation will likely be concluded in a year or two so to consider all of these things now is perhaps a little risky. The impact could be surcharges to our residents, of which the City has no control or recourse as the City is not allowed to litigate according to these agreements. There could be charges for water transfer. There is no risk the City would not have water, legally there is no withholding of utilities so someway the City would have to have water. The City is just not sure how that would impact it, its rates or residents. The conclusion and recommendation of the committee was to hold in committee by a vote of 3-0. The Environmental Control Committee also met on Tuesday, May 7, 2019 at 7:05 p.m. Present were committee members Hemann, Glassburn and Williamson; Council members Kearney and Schumann; Council President Jones; Director of Finance Copfer, Director of Human Resources Gallo, Director of Law Gareau, Director of Safety & Service Glauner, Director of Planning & Development Lieber and guests. • Discussed was Ordinance 2018-90. A Resolution authorizing the Mayor to enter into agreements with the City of Cleveland, Division of Water to establish a Municipal Utilities District, to restate the Water Services Agreement, and to provide for the transfer of water utility assets from the City of North Olmsted. The committee voted to not recommend to Council 3-0. Councilman Glassburn Chairman of the Intra -Governmental Relations Committee: The Intra -Governmental Relations Committee met on Tuesday, April 30, 2019 at 7:02 p.m. Present were committee members Glassburn, Schumann and Hemann; Council members Brossard, Kearney, Limpert and Williamson; Mayor Kennedy, Director of M