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July 21, 2008 MINUTES OF COUNCIL A regular session of Troy City Council was held Monday, July 21, 2008 at 7:00 p.m. in Council Chambers. Members Present: Clark, Harrah, Hutchinson, Kendall, Kirkham and Schweser. Upon motion of Mr. Kendall, seconded by Mr. Schweser, Mr. Douglas was excused from this meeting by unanimous roll call vote. Presiding Officer: Martha A. Baker, President of Council Others Present: Michael L. Beamish, Mayor Patrick E. J. Titterington, Director of Public Service and Safety W. McGregor Dixon, Jr., Director of Law Richard L. Cultice, Auditor INVOCATION: An invocation was given by Council Member Schweser. MINUTES: The Clerk gave a summary of the minutes of the July 7, 2008 meeting of Troy City Council. There were no corrections or additions to these minutes. A motion was made by Mr. Schweser, seconded by Mr. Harrah, to approve these minutes. Motion passed by unanimous roll call vote. COMMITTEE REPORTS: Buildings, Streets & Sidewalks Committee: Mr. Harrah, Chairman, reported that Committee recommends legislation be prepared authorizing bidding for the catch basin replacement program at a cost not to exceed $65,000. Report signed by Douglas, Kirkham and Harrah. Law & Ordinance Committee: Mr. Kendall, Chairman, gave the oral report that three liquor license applications have been received: -Transfer of location of D2/ D2X for Frickers Troy, 1187 Experiment Farm Road. -Transfer of ownership of C1, C2, D6 for Big Mikes Gas N Go, 1333 Archer Drive. -Transfer of ownership of D1, D2, D3, D6 for Outback Steakhouse of Florida, 1801 Towne Park Drive. COMMENTS REGARDING COMMITTEE REPORTS OR AGENDA ITEMS. The following spoke objecting to elements of Ordinance No. O-19-2008, Income Tax Ordinance revisions, and particularly the portion that requires landlords to twice a year provide information regarding names and addresses of tenants so that the City can assure that wage earners in Troy are in compliance with the Income Tax Ordinance: -Dave Murray, 104 N. Market St., stated he is Chairman of the Chamber of Commerce Ambassadors organization that attends all ribbon cuttings and openings of new businesses; and further stated that the ordinance provisions are more strict and make it harder for people to invest in Troy; rental loses no longer will qualify as a deduction; some of his local clients are moving out of state because of how hard it is to do business in Troy; some of the provisions are more strict than Ohio Tax Laws or the IRS; the City will get 100% of a lesser amount as people move out; the City spends a lot of time and money on economic development and travels out of the country to encourage business, but he finds it difficult to positively answer inquiries about doing business in Troy. -Bill McGraw, 210 W. Main St., stated that in 2004 and 2005 a similar provision was considered but not enacted; the registration provision is a burden that makes it harder to do business; provisions are discriminatory; provisions will have a chilling effect on doing business in Troy for landlords; it is not clear if the provisions apply to landlords of residential and commercial properties; it is not clear as to the definition of landlord; the reporting requirement is a burden; and criminalizing non-compliers seems to be an improper penalty. -Roger Hawk, 1001 Laurel Tree Ct., stated that he thought it was understood a few years ago that such a provision would be a negative impact for landlords; landlords bring money into Troy; this will make it harder to make ends meet and this is a hardship. -Bob Cole, 1100 Wayne St., commented that he recently asked the City for a listing of landlords or of tenants; thinks there are 8,400 rental units; the City should look to finding the needed information in-house rather than requiring the work by the landlords; it would take more staff to check 8,400 listings against tax records. -Tom Behm, 1860 Quail Nest Ct., stated he does not think the City will gain a lot monetarily as tenants are not often good payers; this is putting a burden on the landlords; landlords are already penalized with indemnification agreement for water payments and he has never gotten back money when he has paid a water bill of a non-paying tenant; he would like to see the Ordinance requirement for the water indemnification agreement; approving this Ordinance will be a perfect example to show how easy it is to get a referendum of an Ordinance as property owners July 21, 2008 Page Two do not want to take on the unnecessary burden; landlords are happy to work with the City, but not with this requirement. -Kelly Browning 213 S. Short St., asked why the City’s water records cannot be used to gain this tenant information as the City will need this information anyway when the City starts to collect for trash collection. -Marsha McGovern, 1353 Maplecrest Dr., stated she agreed with all the objections stated to the landlord registration as landlords do not need this extra requirement. -Jack Jamison, 2480 Peebles Road, stated he has to pay about $500 a year for his tenants who skip out not paying a water bill and it would be easier if the City took a deposit up front so the City has the money if someone skips. He also stated that he feels it will take more staff to handle the paperwork. -Bob Heidenreich, 5370 E. SR 41, stated that landlords have high bills with tenants that skip out without paying; it is expensive to do business in Troy; and the City is creating an additional burden for the landlords to do this work for the City. Mike Burkholder, 465 W. Staunton Road, asked if the repair/replacement of catch basins is federally mandated. Mr. Titterington advised that the program is not specifically listed in the program on stormwater in the Federal Guidelines, but the City’s program of repairing and replacing damaged catch basins is an effective way to meet the mandates regarding stormwater management. Mr. Titterington commented that catch basins in disrepair result in groundwater getting into the stormwater system and improvements result in a better control of the stormwater. RESOLUTION NO. R-32-2008 RESOLUTION AUTHORIZING THE DIRECTOR OF PUBLIC SERVICE AND SAFETY TO ADVERTISE FOR BIDS AND ENTER INTO A CONTRACT FOR THE 2008 CATCH BASIN REPLACEMENT PROGRAM This Resolution was given first title reading. Mr. Clark moved for suspension of rules requiring three readings. Motion seconded by Mr. Kirkham. Yes: Clark, Kendall, Harrah, Kirkham, Hutchinson and Schweser. No: None. Mr. Harrah moved for adoption. Motion seconded by Mr. Schweser. Yes: Kendall, Harrah, Kirkham, Hutchinson, Schweser and Clark. No: None. RESOLUTION ADOPTED ORDINANCE NO. O-19-2008 AN ORDINANCE AMENDING THE INCOME TAX CODE OF THE CITY OF TROY, OHIO. This Ordinance was given first title reading on July 7, 2008. Given second title reading. ORDINANCE NO. O-20-2008 ORDINANCE AUTHORIZING THE SALE OF MUNICIPAL PROPERTY NO LONGER NEEDED FOR A PUBLIC PURPOSE. This Ordinance was given first title reading on July 7, 2008. Given second title reading. COMMENTS OF THE MAYOR: Mayor Beamish commented as follows: -Thanked Council member Clark and the other members of the planning committee for the Troy Classic on the Square bike race, which was held July 19. He stated that participants had many favorable comments about the course for the race and the attractiveness of the community. -Noted that “share the road” signs have been placed within the City to advise motorists that cyclists will be on the roadway. -Thanked Council member Kirkham for all the arrangements for National Night Out on August 5. -Announced that Mike Hamm, a Troy High School Senior, received outstand rankings in a national speech contest. July 21, 2008 Page Three COMMENTS OF THE DIRECTOR OF PUBLIC SERVICE AND SAFETY: In response to comments regarding the proposed amendments to the Income Tax Ordinance and the requirement of the Ordinance that landlords provide the City with information regarding tenant names and addresses, Mr. Titterington commented as follows: -As this is an Income Tax Ordinance, by law income tax information cannot be shared with any other department or used regarding compliance with other ordinances. -There are a variety of ways for landlords to provide the information, even via email. -There were comments that the requirement is a burden on the landlords, but it puts Troy on the same rule level as a number of other communities that have similar requirements. -This requirement is not discriminatory to any group as this is the same information requested of all persons in Troy. -A small percentage of property owners are landlords, being a landlord is a business and it is likely a business for a profit, there is a larger turnover in the tenant category than owner-occupied properties, and if the City does not collect the income tax from those tenants, the burden shifts to those who are paying their share of taxes. This requirement spreads the burden over all taxpayers. -The City could not take on the burden of trying to otherwise identify tenants without the City adding staff, and the payment of the additional staff would then become an additional cost to be shared by the taxpayers. -To use utilities information to provide the tenant information would require amending the utility ordinances to require the reporting and that information would not be protected and would be shared throughout the City and with those requesting the information. -The purpose of the provision is to make sure everyone is paying a fair share of income taxes to preclude increasing the taxes for those who are paying; it is only fair that those in the business have this as a cost of doing that business. -Regarding having water bills in a tenant’s name, a legal way to collect unpaid bills is to assess against the property and that cannot be done when the person who does not pay a bill is not the property owner. COMMENTS OF THE DIRECTOR OF LAW: Mr. Dixon commented that when a tenant leaves and does not pay a water bill that unpaid bill should be paid by the owner/landlord. Otherwise, it is all the other water customers that have to bear the burden of the unpaid bills. COUNCIL COMMENTS: -Mr. Kendall suggested another committee review may be appropriate in view of the comments regarding the Income Tax Ordinance. Mrs. Baker commented that would be left to the Chair of the Finance Committee. -Mr. Clark stated he appreciated the cooperation of the community for the Troy Classic on the Square event. -Mr. Clark would like a list of cities that have established the landlord registration. He asked the landlords present to indicate if they lived inside the City of Troy (most did not). -Mr. Harrah asked if the field behind the wastewater plant will it be rented for farming, if a concrete approach at Hobart Cabinet (old abandoned alley) will be torn out and replaced, and is there anything to prevent new property owners getting bills for old mowing especially if the property was purchased at a sheriff’s sale. AUDIENCE COMMENTS: -William McGraw, attorney, stated he felt it is a burden for landlords to provide tenant information. Mr. Titterington indicated the City believes it would be a greater burden for one or two staff members to research this information than for landlords to provide info they already have in their files, further commenting that if the City had to hire staff to research tenant information the cost of the staff would be paid by all taxpayers. In response to Mr. McGraw’s question of does the City know a percent of tenants that do not pay income taxes, the response was no. Mr. McGraw asked if the City had figures on cost/burden to comply vs. revenue received, and he asked for definitions of landlords and a clarification of did the landlord registration apply to residential and commercial properties. Mr. Cultice commented that not all renters pay the water bill so the City does not have access to renter information from utility records. Mr. McGraw asked for a copy of any records when the landlord registration of tenants was discussed in 2004/2005. -Kelly Browning 213 S. Short St., asked how the City would charge residents for trash collection if the tenants were not known. Mr. Titterington commented that bills would be sent based on whose name the utility bill was in and if the landlord had two or more water services for a residence, there would be a charge per residence. -Roger Hawk asked if the landlords could meet with the Council Committee. Mrs. Baker advised that if a meeting is scheduled, the landlords would be advised. July 21, 2008 Page Four -Mike Burkholder, 465 W. Staunton Road, commented regarding the Strawberry Festival, that the City’s stated expenses are salaries only and not benefits, and items such as electric charges are not shown. Regarding the General Fund, the City should not say that the plan is to start charging the tax payers for refuse collection as the General Fund has always come from tax payer dollars. He suggested Council ask why the General Fund has become beleaguered. -Scott Pence, Miami County Sanitary Department, presented the City with an award from Ohio EPA in recognition of the exceptionally high participation rate in the City’s curbside recycling program (90%), the largest percentage of participation in the State of Ohio. The award was a glass bowl made of recycled materials. There being no further business, the meeting adjourned at 8:15 p.m. __________________/s/______________________ ________________/s/___________________ President of Council Clerk of Council |