BOCC Gives Potential Dollar General Purchase to Make New Senior Center One Last Chance
Board of County Commissioners - July 16, 2024
Meeting Details: The Board of County Commissioners (BOCC) met at 9:30 am on Tuesday, July 16, 2024 at the County Administration Building, 12611 Ravenwood Drive, Room B303, Chardon, OH. The meetings are in-person only, and there are no recordings for the public. An agenda is available in advance via request to the Commissioners’ Clerk and at the meeting.
Public Comment Policy: Observer Comment: Commissioner Ralph Spidalieri announced at the end of the April 4, 2023 meeting that public comment would be permitted and that a more formal policy would be forthcoming. There was no formal policy introduced today, but public comment was permitted.
Attendance: Present were Commissioners Ralph Spidalieri and James Dvorak. Commissioner Timothy Lennon was absent. Also present were Assistant County Administrator Linda Burhenne, Finance Manager Adrian Gorton, and Commissioners' Clerk Christine Blair. County Administrator Gerald Morgan was absent.
County Representatives: Jacob Scotese, PE, Deputy Engineer; Glen Vernick, Maintenance Director, Kathleen Miller, Fiscal Specialist, Water Resources; Caroline Mansfield, Chief Deputy Treasurer; Richard Blamer, Airport Manager; Craig Swenson, Executive Director, Job and Family Services (JFS); Elaine Malkami, Project Director, Community and Economic Development; Chief Deputy Thomas Rowan, Prosecutor James Flaiz, and Assistant Prosecutor Laura LaChapelle. Observer Note: There was a representative from the Maintenance Department who was introduced as a Project Coordinator, but the name was inaudible.
Others in Attendance: Jessica Boalt, Director, Department on Aging; Adam Litke, Administrator, Geauga Public Health; Carolyn Brakey, County Commissioner Candidate and Geauga Public Health Board member; Auditor Chuck Walder; Gina Hofstetter, Director, Community and Economic Development; Kathleen Hostutler, Human Resource Director; Walter (Skip) Claypool, Planning Commission Board member, Tom Jones, Diane Jones, other members of the public, the press and this LWV observer.
The Pledge of Allegiance was recited and a prayer was offered by Mr. Dvorak.
Minutes: There were no minutes submitted for approval. Observer Comment: Weekly LWVG Observer Reports for BOCC are available online through July 16, 2024, for informational purposes but are not substitutes for approved minutes. Approved BOCC Minutes are posted online here through May 21, 2024.
Administrator’s Report - In the absence of Gerry Morgan, Assistant County Manager Linda Burhenne gave the following report: Approved hiring in both the Department of Aging (Full Time Recreation and Education Assistant) and the Dept of Water Resources (Equipment Operator).
Financial Report
Mr. Gorton received approval for the following (no dollar amounts provided):
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Appropriation transfer from JFS to contract account for Youth Center project
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Cash to Community and Economic Development for payroll and third quarter operational commitment
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Travel for Engineer’s office
Vouchers:
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$58,500 from the Auditor for four year licensing agreement for Geographic Information System (GIS)
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$63,035 from the Commissioners to Ohio State University for third quarter programming
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$89,670 from the Sheriff to Motorola Solutions Inc. Mr. Gorton said that with this pay they will have paid a total of $143,236 in 2024. In 2023 the amount was $141,666.
The Airport Authority received approval for the following:
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To increase the initial local match amount on the FAA Project: Construct Parallel Taxiway A Pavement and LED Lighting, Phase 2/2 Construction from $100,000.00 to $176,365.00.
It was noted by Mr. Blamer (and see below) that this is a small investment by the Commissioners in a $3.5 Million project.
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To execute the U.S. Department of Transportation, Federal Aviation Administration (FAA) Form 5100-129 - Construction Project Final Acceptance – Airport Improvement Program Sponsor Certification, 5100-130 – Drug-Free Workplace – Airport Improvement Program Sponsor Certification, 5100-131 – Equipment and Construction Contracts – Airport Improvement Sponsor Certification, 5100-132 – Project Plans and Specifications – Airport Improvement Program Sponsor Certification, 5100-134 – Selection of Consultants – Airport Improvement Program Sponsor Certification, and 5100-135 – Certification and Disclosure Regarding Potential Conflicts of Interest Airport Improvement Program Sponsor Certification in connection with the Application for the Construction of Parallel Taxiway A Pavement and LED Lighting between Taxiway A2 and Runway 29) – Phase 2/2 Construction.
Mr. Dvorak asked about this and when the Drug-free employment would begin. Mr. Blamer said it would begin when contractors start work on-site.
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To execute and submit a grant application for FAA Project – Construct Parallel Taxiway A Pavement and LED Lighting (3,040’x25’, between Taxiway A2 and Runway 29) – Phase 2/2 Construction in the amount of $3,527,305.00 (FAA Portion $3,174,575.00, ODOT portion $176,365.00 and Local County Match $176,365.00).
Mr. Spidalari asked whether the taxiway would include lighting, and Mr. Blamer said it would.
Ms. Burhenne asked about the economic benefit for this project, and Mr. Blamer said it would enable more business jets to use the airport because many businesses won’t fly into an airport if it doesn’t have a parallel taxiway. He further said it would enhance the safety of the airport in general.
Mr. Blamer also said that the Hangar project is almost done.
The County Engineer’s Office received approval for the following:
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To execute Change Order #1 and Final, decreasing the Contract with Cole Burton Contractors, LLC for the Asphalt Resurfacing of Fairmount Road (CH-0016, Sections F-G) in Newbury Township in the amount of $4,029.96.
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To execute Change Order #1 and Final, increasing the Contract with Ronyak Paving, Incorporated for the Asphalt Resurfacing of Munn Road (CH-0032, Sections E-F) in Auburn and Newbury Townships in the amount of $3,726.49.
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To execute Change Order #1 and Final, decreasing the Contract with Ronyak Paving, Incorporated for the Asphalt Resurfacing of Bell Street (CH0010, Sections D and F) in Newbury Township in the amount of $44,681.92. It was noted by Mr. Scotese that the decrease was because the road was in better condition than anticipated.
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To execute the Unit Price Contract with Ronyak Paving, Incorporated for the Asphalt Resurfacing of Auburn Road (CH-0004, Sections K-M) in Munson and Newbury Townships in the amount of $678,574.00.
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To execute the Unit Price Contract with Ronyak Paving, Incorporated for the Asphalt Resurfacing of Chardon Windsor Road (CH-0013, Sections A-D) in Hambden and Claridon Townships in the amount of $925,545.00.
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To execute the Unit Price Contract with Grade Line, Incorporated for the Replacement of the Sperry Road Bridge (Structure #0012-03.590) in Chester Township in the amount of $304,713.50. Mr. Scotese said that this project will take place in September-October.
The Community and Economic Development Department received approval to execute the Agreement with Ohio Regional Development Corporation to complete a full and comprehensive 2024 Analysis of Impediments (AI) Report to Fair Housing Choice for the CDBG (Community Development Block Grant) Small Cities Program for the period July 15, 2024 through October 31, 2024 in an amount not to exceed $10,000.00.
Program Director Elaine Malkami stated that this is part of the requirement for the Small Cities Program. Mr. Spidalieri asked what this would be used for, and Ms. Malkami said it would look at the County’s shortcomings in various housing categories and suggest solutions. She gave an example that they might find that there isn’t sufficient senior housing. She said this is done every five years.
Mr. Spidalieri asked if they (CDBG) would tell the County where to put housing, and Ms. Malkami said they would not. He also asked if the $10,000 could come out of the block grant funding they receive, and Ms Malkami said it would.
The Department of Job and Family Services (JFS) received approval to execute Resolution #24-139 Certificate of Need, as Authorized by O.R.C. 5705.03, .07, .19, .191, .24, .25 and .26 for Renewal of the 0.5 Mill JFS levy. JFS Director Craig Swenson stated that this levy has been continuously approved by the voters for renewal. He specified that this was the 0.5 levy and noted that JFS has two levies: a 0.7 Mill qualified levy, which yields $2.5 Million, and this 0.5 Mill levy, which yields $1.5 Million.
Mr. Spidalieri asked if JFS would get more funds from this levy than they have in the past since property values have increased. County Auditor Walder was in the audience, and he said that under HB (House Bill) 920 the amount JFS would receive would not increase based on increased property values, as that only happens with “inside millage and the 20 Mill Floor.” Observer Note: For information on these topics, see the Auditor’s website.
Mr. Swenson also said that historically JFS has withheld the collection of some or all of a levy when the funds are not needed in a particular year. He stated that this year they will be needing the funds, as they are in the midst of a project to renovate the County’s Youth Center. He said that this project will cost in the $6-7 Million Range. The County has a grant for $1 Million towards the cost, but the rest will come from JFS. Mr. Swenson said that: “The current County Youth Center is not supportive of the needs of our kids.”
The Maintenance Department received approval to begin contract negotiations with CT Consultants, Incorporated, as the most qualified firm to provide professional design and contract administration services to reconfigure existing visitation center space and convert it into a video visitation room and open office area at the Safety Center.
The Department of Water Resources received approval to execute the Second Addendum to Contract Agreement with Ullman Oil Company to extend the term of the Agreement from June 30, 2024 up to and including June 30, 2025 for the bulk purchase of Fuel at a price lower than the Daily State of Ohio Contract Rate for District 12, which includes 87 E10 and ULSD #2 Ultra-low to fuel tanks located at Merritt Road and Chagrin River Road, with all other terms and conditions of the original agreement in full force and effect.
The Commissioners’ Office received approval to acknowledge the submittal of Resolution #02262024-A, dated February 26, 2024 and Plat on June 17, 2024 from the Bainbridge Township Board of Trustees, Petitioning the Geauga County Board of County Commissioners to Vacate the Public Right of Way upon a portion of Tulip Lane (TR-0307), pursuant to Section 5553.045 of the Revised Code, and also acknowledge the Resolution and Plat were withdrawn by the Township via communication from the Fiscal Officer on June 21, 2024, due to possible irregularities in the documents. The BOCC went on to acknowledge receipt of Resolution #06242024-B and Plat received on July 9, 2024, petitioning the Geauga County Board of County Commissioners to Vacate the Public Right of Way upon a Portion of Tulip Lane (TR-0307), pursuant to Section 5553.045 of the Revised Code. The BOCC then passed Resolution #24-140 for the Proposed Vacation of the Public Right of Way upon this portion of Tulip Lane (TR-0307), in Bainbridge Township. They further set a Public Viewing on Tuesday, August 13, 2024 at 2:00 pm and a Public Hearing on Tuesday, August 20, 2024 at 9:45 am. Notice of the Public Viewing and Public Hearing will be advertised on July 25, 2024 and August 1, 2024 and also will be placed on the County website.
Discussion with the Prosecutor’s Office regarding Dollar General purchase
Prosecutor Flaiz and Assistant Prosecutor Laura LaChapelle discussed the contract to purchase the Dollar General Property in Chardon for the purpose of turning it into a Senior Center. To start with, Mr. Flaiz asked that attorney-client privilege (with the Commissioners) be waived before discussing these matters. He said: “ There was a lot of finger pointing and blaming and unfortunately the member of the board that was doing a lot of the blaming and finger pointing didn’t show up at this meeting.” He said there seemed to be a breakdown in communications. Mr. Flaiz said that the Prosecutor’s Office communicates with Mr. Morgan and Ms. Burhenne, but in return they don’t effectively communicate with the Commissioners, which is why he wanted attorney-client privilege waived. Both Mr. Dvorak and Mr. Spidalieri agreed to waive attorney-client privilege.
Mr. Flaiz said that he had an email from March 28, 2024 to County Administrator Morgan that outlined specific objections they had to the contract. He further stated that there were many emails. He said one of the biggest problems they had was that concerns from Ms. LaChapelle, the outside attorney and the Title Company were put in a red-lined version that was marked up with changes requested by the Prosecutor’s office; this red-lined version was sent to Mr. Morgan. Mr. Flaiz said that Mr. Morgan then sent the wrong document (not the red-lined version) to Dollar General, so that Dollar General thought a lot of those issues were solved.
Mr. Flaiz said that he had “an independent statutory responsibility to protect the Treasury.” He objected to the request by Dollar General for a $50,000 non-refundable deposit. He stated that this sale is a “bundled sale,” which includes other assets and other mortgages. He said the seller had refused to give them any disclosures but instead had asked for a 10-day inspection period after no disclosures were given. Mr. Flaiz indicated that it was impossible to find out in 10 days what hidden problems there might be on the property because that wasn’t enough time.
Mr. Flaiz said, “we are being pushed by Gerry (Morgan) and Linda (Burhenne) to sign this.” He said, “I’m not doing that.” He added that, “instead of acknowledging the vulnerable position you are putting the county in by trying to force us to sign this, we are being pressured by Linda and Gerry to sign this.”
Mr. Flaiz said that there is a $13 Million mortgage on this property, so the seller has to get permission from the mortgage holder to sell this property. Mr. Flaiz said that it appears that the mortgage covers a number of properties, which could be all Dollar General properties or might include other types of properties. Mr. Flaiz indicated that the seller will not get permission to sell until the contract is signed.
Ms. Burhenne said “This is not refundable.” Mr. Flaiz said that after the 10 day inspection it is indeed nonrefundable.
Ms. Burhenne said that “We have already inspected it.”
Mr. Flaiz said that sending someone from the Maintenance Department was not an inspection, and they could not know about any environmental problems, especially since there were no disclosures by the seller. Mr. Flaiz suggested that after signing the contract, they might get disclosures and this could contain anything and they would only have a few days to inspect.
Mr. Flaiz suggested that a 60-90 day inspection period would be better. He wondered why they were asking for such a short inspection window when they have been waiting months for this contract to be signed. Mr. Flaiz said, “I have serious concerns that we are going to be left holding the bag.”
In sum, he referred to this property as a distressed property, with no disclosures, a 10-day inspection period, and a large upfront non-refundable deposit.
Mr. Spidalieri suggested that outside counsel said they were okay with it except for one section.
Ms. Burhenne said that they had hired outside counsel by Myers Roman which seemed to surprise Mr. Flaiz and he asked why the Prosecutor’s Office was not informed.
Mr. Flaiz returned to the six specific objections they have to the contract. In particular, he pointed to the fact of no disclosures.
Mr. Spidalieri asked about this issue of the disclosures.
Mr Dvorak said that in real estate the first thing you look at is disclosures and then you look at the Title.
Mr. Spidalieri asked if it would make sense to say, “we need a response by this drop dead date”?
Mr. Dvorak suggested 15 or 25 days to get back to them on the listed objections. Mr. Flaiz said that he is comfortable with 30 days.
Mr. Spidalieri said “You’re either in or you’re out” and he concluded - “We’ll know either way then”
Mr. Dvorak said, “When you have a willing and able buyer, you communicate.”
Mr. Spidalieri said he thought 15 days was fine and that was the final decision.
Ms. Burhenne asked to receive a copy of the letter that would be sent to the seller giving them 15 days to respond to the listed objections. Mr Flaiz agreed to provide her with a copy.
Mr. Spidalieri asked when the letter would go out, and Mr. Flaiz said by the end of the week. Mr. Spidalieri said, if they come back for an extension, he would say no.
Not on the Agenda
Ms. Burhenne asked Mr. Glen Vernick, Maintenance Director, to talk about the billing for electric rates at the new County Office Building. Observer Note: At a prior meeting when the subject of rent to be charged to Geauga Public Health, the question was raised as to why certain electric charges were so high. See LWV Geauga Observer Report for July 2, 2024 for more information. Mr. Vernick said that under their arrangement with CCAO (County Commissioners Association of Ohio), if they are up over 10% in usage, there could be a penalty. Ms. Burhenne said that they sold a few JFS properties and the old Senior Center and began building the new county office building. As a result, they were not on a contract for two months and paid a higher rate. Mr. Vernick said that they signed last week and now they are on the CCAO agreement and they will negotiate for the county.
Mr. Spidalieri asked how much was paid during those two months. Mr. Vernick said he would have to get those figures.
Public Comment: No one had a comment or question
Meeting adjourned at 10:31 am
More Information and Posted Minutes: Available here.
Next Regular Meeting of the BOCC: The next two meetings following this meeting will be July 23, 2024 and July 30, 2024, both at 9:30 am at the Geauga County Administration Building, 12611 Ravenwood Drive, Room B303, Chardon, OH.
Observer: Gail Roussey
Editor/Reviewer: Sarah McGlone
Date Submitted: 7/22/24
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