Ashland City Council


MINUTES FOR THE REGULAR SESSION OF COUNCIL
Tuesday, June 3, 2008




Council President Paul Wertz called the meeting to order at 7:00 p.m.   

ROLL CALL

At-large:      Stephen Stuart    Present
Ward 1:    Robert L. Valentine    Excused
Ward 2:    Robert M. Valentine    Present
Ward 3:    Ruth Detrow        Present
Ward 4/President:  Paul Wertz    Present

Move to excuse Robert L. Valentine W1 by Paul Wertz, seconded by Ruth Detrow.
  Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz.


PLEDGE OF ALLEGIANCE

PRESENTATION OF MINUTES
(a)    Regular Session:  May 20, 2008
(b)    Special Session:  May 27, 2008

Paul Wertz:  We received the minutes from Regular session May 20 and Special Session May 27; any corrections or additions?
 
 Robert M. Valentine W2:   I was not here on May 27, 2008.

    Regular Session, May 20, 2008:   Move to approve minutes from May 20, 2008 by Stephen Stuart and
       seconded by Ruth Detrow.
           Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz

    Special Session, May 27, 2008:  Move to approve minutes from May 27, 2008 by Stephen Stuart and
        seconded by Ruth Detrow:
            Ayes:  Stephen Stuart, Ruth Detrow, Paul Wertz
           Abstain:  Robert M. Valentine

No Corrections or Comments.

LEGISLATION:

    Ordinances
Ord. #  
Item (a)   AN ORDINANCE AMENDING SECTIONS 923.03 AND 923.04 OF THE CODIFIED ORDI-
               NANCES OF THE CITY OF ASHLAND, OHIO, RELATIVE TO SANITARY SEWER SYSTEM
               CHARGES; AND DECLARING AN EMERGENCY

Moved for non-reading in full by Ruth Detrow and seconded by Robert M. Valentine W2 to invoke Section 113.01 of the Codified Ordinances as the distribution of this Ordinance has satisfied the requirements of said Section and that a further reading be dispensed with at this time.
    Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz.


Mayor Stewart:  Six years ago, January of 2002, Ashland had its last Sewer rate increase.  Ashland is now in the midst of a dyer need to increase the rate structure.  Due to an EPA directive several years ago, we were ordered to construct an equalization basin.  There were no State or Federal funds available to the city accompanying the EPA directive.  The cost to the city was $5.65 million dollars.  To date, the available funds and revenues needed to retire this debt have been inadequate.  We are permitted up to 30 years to retire this type of debt.  To date, we have retired $218, 290.00 dollars of the $ 5.65 million dollar debt.  This is well beyond the maximum number of years permitted at that rate.  Along with the debt, just mentioned, the actual cost of Sewer plant operations have continued to increase.  This year in 2008, the appropriations for the Sewer Fund have been impaired to the extent that all major maintenance and replacement projects have been removed from the budget with the exception of those significantly funded by State or Federal Grants.  We paired this back with the knowledge that we had to development a rate increase to manage the Sewer treatment operation this year as well as start a repayment plan to pay off our debt.  That brings me to the next issue.  

While we were working on developing a new rate proposal, it was discovered that the current billing practices differed from the Ordinance.  The difference actually resulted in an overcharge for some customers.  The billing error first occurred in July of 2002 during the year of the last rate increase.  The rate Ordinance was January 2002.  The error for billing began in July of 2002.  The billing has continued to date having discovered this; it is my recommendation that we make the necessary and appropriate adjustments to the future bills for those customers affected by this overcharge.  Those impacted by the billing error include any account that use more that 1300 cubic feet of water in a single month.  To put this in to prospective; an average home account we use from 400 – 1000 cubic feet of water in a single month.  Of the 7,648 accounts that were billed this past April by the City, there are 400 accounts that will have an adjustment issue or credit issue.  To make this clear, there are less than 50 customers that have an overcharge exceeding $1.00 dollar per month.  I can safely say that very few single-family residences are affected by this error.  We have approximately 7700 accounts, 7500 of which are billed for Sewer usage.  Those overcharged have been only the largest users of water on which the Sewer bill is figured, i.e. primarily corporate, industrial and school accounts.  I suggest that following the calculating of the higher impacted accounts; we will initiate a credit on a monthly basis to each account holder’s statement.  We expect to recalculate the impacted accounts and start the credit process within three months, as it may be necessary to figure each account by month for the six-year period in question.  What I am saying, is most, if not all normal residential accounts are not impacted.  1300 cubic feet is 9200 gallons of water.  I personally use between 4 and 500 cubic feet at my house.  If you have used less than 1300 cubic feet, your bill was not billed in error.  If it was over 1300 cubic feet, you may have an adjustment due.  We have to go back and figure each and every account before we can establish what the overcharge may have been.  He did a sampling for the month of April and we know what that is.  We know what each account for the month of April was potentially overcharged.  Beyond that, it would not be fair to take an average or a sampling of one month out of six years and figure a credit.  It is going to take some time.  I feel it is terribly important that I bring this to Council and bring this to the community.  It is the only way to do business.  We have an error.  We don’t know what caused the error.  We are prepared to adjust it.  All accounts are figured on a computer program and it was something changed and a computer program error caused this.  We have not been able to identify other than we know for sure that the June 2002 bills were figured accurately.  The July 2002 bills got a glitch somehow.  We don’t know whom, why or how.   Curt Young and his people and Finance have looked back through this and they have pinpointed that is the time it happened.  And incidentally, we have been working with Council on both the rate structure and this error and the rate structure took a long time to figure because of the urgent needs and that is how we found this, by going back through this process.

Questions or comments?

John Chorpening, 1126 Overlook Drive, Ashland, Ohio 44805:  Does that mean you are going to have to increase this?

Mayor Stewart:  John, we figured the increased need before we found this error and we have not changed the need.  We did not change it after we found the error.  So we are going to live within what we established as a need for 2008, 2009, 2010 and 2011.  It sounds huge.  It is not big dollars per month.
What did we have per month Curt?

Curt Young:  April for example was $1,200.00 dollars over.

Mayor Stewart:  It is not a big number.  It is for six years; but it isn’t a huge number.  I can only work one way.  We can only work one way.

Paul Wertz:  Okay Mr. Hunter, do you want to explain the Ordinances?

Michael Hunter:   During the 2008 appropriations, it became very clear to us that the current rate structures were inadequate for not only 2008 but for the foreseeable future.  So a committee basically was put together including the Mayor, Anna Tomasek and Curt Young and Jim Cooper, and myself and others worked with it from time to time.  We looked at our current needs and we looked at our projected needs and we developed figures for this new rate Ordinance and for the increases that we are looking at.  As you can see with the Ordinance itself, we are looking at for the first year, the increase in 2008 and will carry the increase through 2009, 2010 and all the way through to 2013 by the Ordinance.  And basically again, these increases are not only considered in my opinion reasonable but they are absolutely essential to meet our current needs and our projected needs.  Obviously this whole rate structure includes recovery for debts and for operations.  And this Council sure will recall that when we went to the appropriations budget for 2008 and as the Mayor mentioned in this statement; there were some rather some dramatic cuts that were required in this budget just to balance it.  We understood and we felt at the time and we made it very clear at the time that those cuts would be where we would have to recoup those costs.  We would have to get that money back into the budget and that is where this process began and that is why this rate structure is before this Council tonight.  Again, we believe it is reasonable; we also consider it to be essential and we urge Council’s approval and support of this Ordinance.

Mayor Stewart:  If I may Paul; the credits when we get to the figures; we are not going to be able to give everyone their whole credit in a month.  We are going to have to spread these credits out over a couple of years at least.  I know it took six years to where we are at today, but the plan has to keep working and to Mr. Chorpening’s concern; by spreading it out for the credit process; it allowed us to keep the rate structure as we originally approved.  Would you like me to give an example?

Paul Wertz:  Yes.  

Mayor Stewart:  A single example for a minimum of 300 cubic feet which may be a single person that would use that; it amounts to $1.86 per month.  For a person like myself; this is a 600 cubic foot; I use 5.  It amounts to $3.41 per month.  They are not huge increases dollar wise, but when you have 7700 accounts and these are the residential numbers.  It makes up what we need to do to get back and to pay that $5.5 + million dollar structure that we did not have adequate repayment developed to pay that $5.5 million dollars back.

Paul Wertz:  So everyone knows; that is not the only debt we have for sewers; it is about $ 2 million more, right?  The total is $7.5 million dollars debt.

Mayor Stewart:  That is the end of the bad news.  I am not joyful in sharing that, than attempt to hide something.  That is something I cannot do.  

Comments or questions?

           Moved by Robert M. Valentine W21 and seconded by Ruth Detrow that the Ordi-
           nance be passed on the first reading only.
    Ayes:  Stephen Stuart, Robert M.  Valentine W2, Ruth Detrow, Paul Wertz.

Resolutions:  

Res. # 9-08
Item  (a) A RESOLUTION INDICATING SERVICES TO BE PROVIDED UPON ANNEXATION OF A TER-
               RITORY.  (Steven W. and Sheryl Cellar).


Richard P. Wolfe II, Director of Law:   Procedural requirement in the annexation to pass Resolution indicating what services will be provided to the area in the event that it is annexed.  

Paul Wertz:  All these services go beside the house.  

Questions or comments?

        
Move the Resolution be passed on the first reading by Ruth Detrow, seconded by Stephen Stuart to invoke Section 113.01 of the Codified Ordinances as the distribution of this Resolution has satisfied the requirements of said Section and that a further reading be dispensed with at this time.
          Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz.

Move to suspend the rules, three separate meetings, three separate nights by Paul Wertz, seconded by Ruth Detrow that the rules requiring the reading on three separate days be suspended and that the Resolution be passed on the second and third readings.
     Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz

Move the Resolution be passed by Paul Wertz, seconded by Stephen Stuart.
    Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz.

WARD REPORTS

At-Large:  Stephen Stuart
    No report

Ward 2:  Robert M. Valentine
    No report

Ward 3:  Ruth Detrow
    No report

Ward 4  Paul Wertz
    No report


Old Business: None


New Business:
(a)    Petition for Alley Vacation:  A certain 16- foot wide north-south alley, situated between
Lot Nos:  541, 542, 543, 544, and 776 North Ashland

Paul Wertz:  Request to make a Resolution for this Alley Vacation.

Move to request Resolution for Alley Vacation by Paul Wertz, seconded by Stephen Stuart
    Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz

Paul Wertz:  This will be at the Regular Session on Tuesday June 17, 2008.  

(b)    Permit for Advertising on Private Property:  (Door Hanger)  Ashland Brethren in Christ Church, 2750 Mifflin Ave., Church event/Welcome to the neighborhood Block Party in June and as needed when new people move into the adjacent community.  Contact person – Keith Tyson.

Questions or comments?

Move to approve the Permit for Advertising by Ruth Detrow, seconded by Robert M. Valentine W2.
    Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz

(c)    Liquor Permit Request:  New – K. Sorrellas LTD, DBA K. Sorrellas, 547, E. Main Street, Ashland, Ohio  44805 – D2.

Paul Wertz:  Anyone here to represent K. Sorrellas?  Are there any problems here Rick?  

Richard P. Wolfe II:  If you recall when Sorrellas was there, Council objected to the permit, they had a Hearing and the Permit was granted, it is the same location.

Robert M. Valentine W2:   That was for carryout only, right?

Richard P. Wolfe II:    I do not know what useful purpose it would serve in objecting when we already made that objection for that very reason.

Move to request no hearing by Paul Wertz, seconded by Ruth Detrow.
     Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz.


Mayors Comments:
(a)    I passed on my first mosquito concern to Mr. Clingan this evening.  I suspect we get a little warm weather; this rain will bring more of those out.  I had received some grass concerns that I have passed on to Rick.

Paul Wertz:  Darlene called in a couple of them.  She said a couple of them; the owners are out of state.  They are going through the process.  


Comments of questions from the Audience: Items that are not included on the Agenda.

John Chorpening:  I was out by WalMart today and I saw they were doing what looked like a water line toward Kingston; is the City doing that?

Howard Scanlon:  I know Kingston is putting an addition on.  

John Chorpening:  I was just wondering if they were planning to connect that finally to Sugarbush?

Jim Cooper:  They are working on the Storm Water. That is all privately done by Simonson.


Motion to adjourn meeting by Paul Wertz, moved by Robert M. Valentine W2, seconded by Paul Wertz.
   Ayes:  Stephen Stuart, Robert M. Valentine W2, Ruth Detrow, Paul Wertz.


ADJOURNMENT AT 7:23 p.m.






                                        Submitted by
                                        Valarie Bishoff
                                        Clerk of Council