Good morning.

Today is August the thirteenth, twenty twenty-five.

This committee of finance, diversity, equity, and inclusion is called to order.

Madam Clerk, please call the role.

Here.

And if you sign on if you serve on finance, okay.

Number two to the guests in the audience.

I'm going to do some of the lower hanging fruit first, which is going to be port control, utilities, public works, and then city planning and health.

Okay?

Does that sound okay?

All right.

That's how we're going to proceed.

Uh therefore, the uh first group I would like to bring up is port control.

If we could bring up port control, and remember uh director, soon as uh we get done with these pieces, it should take about 45 minutes, and then we're gonna jump right into the other ones.

All right.

Thank you.

Assistant director.

Good morning.

Good morning.

Good morning.

All right, this is ordinance number 798-2025 as amended by council members McCormick and Griffin by departmental request, an emergency ordinance to amend section 571.061 of codified ordinances of Cleveland, Ohio, 1976, as amended by ordinance number 325-04 passed May 10, 2020 relating to secured area identification badges issued by the director of port control.

Director.

Mr.

Chairman, members of the committee, thank you.

Uh port control is here today to present this piece.

Um we currently have legislation in place uh for our badging program.

Um however, we feel it is uh we have a need to refresh that uh current legislation that we have.

Um we have a badging program with software and people that administer it, and it is a fairly robust program that we have uh for all of the identification badges for employees of the airport.

Um we we would like to present uh legislation to uh make sure this language is mod is uh modernized, if you will, um, and we have the flexibility that we need to administer the program in the way uh to align with our security regulations and programs that are administered through TSA.

Thank you.

Very quick.

Uh to the policy team, have all of the executive summaries been submitted or most of them.

Okay.

Reason that I'm asking is because if you've already submitted the executive summary, you've already gone over this with the chair of your committee, or your chair has agreed to relieve it.

We don't need all the directors to go over every detail so that we can move kind of expeditiously.

Okay.

All right.

So, Councilman McCormick, any questions on this piece of legislation?

Thank you, Mr.

Chair.

This I've reviewed this um and fully support this legislation on badging the airport.

Thank you.

All right, I'll read the amendment so that we can make this official.

There is no legal objection to this legislation if amended as follows.

One in section one at uh at amended section 571.061 at Division D, Line 6, strike of and insert or this was dated 724 25 by Rich Burdovich, Chief Assistant Director of Law.

Any other questions regarding ordinance number 798-2025?

Seeing no other questions, ordinance number 798-2025 as amended stands approved.

We'll now move to 802-2025 by council members McCormick and Griffin and emergency ordinance authorizing the director of port control to enter into an amendment to contract number PS 2024-09 with JD power to provide additional survey services and extend the contract.

Director.

Mr.

Chairman, members of the committee, real quick.

Um, this is we have an existing contract with JD Power for uh survey of customer experience.

Uh, we'd like to expand those services and utilize other services that they offer.

Um and would like to expand the contract we have with them to continue to collect more data and more information.

Thank you, Councilman McCormick.

Thank you, Mr.

Chairman.

This is our contract uh to do those services the director said, allowing for more nimble um approaches to collecting feedback with JD power for the airport.

So fully support this.

This is an existing contract and program we've had for many years.

Thank you so much.

Uh seeing no other questions, ordinance number 802-2025 stands approved.

Please sign on.

Thank you so much.

All right.

Last ordinance for port control is ordinance number 813-2025 by council members McCormick and Griffin by departmental request and emergency ordinance authorizing the director of port control to amend lease agreement numbers LS 2020 2022-0011 and LS 2024-0006 with Marcan Kemi L C for the lease of space located at Burke Lakefront Airport for the operation of podcast studios and a software company.

Director.

Mr.

Chairman, members of the committee, this is simply a name, a legal name change.

This is an existing lease we have in place at Burke Lakefront Airport.

Uh that entity is changing its name, and we want to uh adjust our uh legislation and agreements to um align with that.

Thank you so much.

Uh just out of curiosity, how many spaces do we rent at Burke Lakefront?

Uh total lease spaces.

I do not have that number off top of my head.

Um, there are a number of um flight schools that operate out of there, a helicopter tour operator, uh lease space for the podcast studio.

Um I don't have a number of if you don't have it now, don't worry about it.

But it would be good to know what kind of revenue we're generating at birth.

So if you could get that to the policy team, we'd love to see what kind of lease space the system.

We'll happily provide.

Councilmember Cormick.

Thank you, Chair.

Uh simple name change.

This is a tenant that's been there for quite a while.

Thank you.

Uh seeing no other questions, ordinance number 813-2025 stands approved.

Thank you.

Once again, to all the body and to the listening audience.

We are in uh what I call rapid fire mode, so please don't be alarmed.

Just trying to get through the day.

All right, public utilities.

See second up isn't bad, Director.

All right.

This is ordinance number 497-2025 by council members Casey and Griffin by departmental request, an emergency ordinance authorizing the purchase by one or more requirement contracts of labor materials necessary to maintain control systems of the Scata, SCADA, and PCC S systems for the various department divisions of the Department of Public Utilities and authorizing the director of public utilities to enter into one or more requirement contracts without competitive bidding with various companies to provide critical proprietary components for the ScottA and PCCS equipment and the for the divisions of water and Cleveland Public Power, Department of Public Utilities for a period of up to two years.

Director.

Thank you, Chairman, members of the committee.

We are seeking authority to enter into direct uh award requirement contracts with a number of manufacturers, specifically HSQ, Hawk, Roxel, and Schneider for the SCADA and PCCS components of our uh both the water distribution system and the power distribution system.

There are a number of contracts um that expire at varying times, um, and we're seeking authority to continue those relationships.

Thank you.

Uh Councilman Casey is out, but um, it's my understanding that Councilman Casey has gone over this and reviewed this with you.

That is correct, Chairman.

All right.

Uh does anybody have any questions regarding ordinance number 497-2025?

Seeing no questions, ordinance number 497-2025 stands approved.

Thank you, Director.

And director, when we get a chance, let's follow up on that county thing if see where we are with that.

Yes, sir.

Thank you.

All right, next is ordinance number 811-20.

Uh, this is actually public works.

And this is ordinance number 811-2025 by council members Bishop and Griffin by departmental request and emergency ordinance to amend section one of ordinance number 718-2024 passed September 9th, 2024, relating to the purchase, lease, or lease with option to purchase of various on-road vehicles, apparatus, and off-road equipment, cabs, bodies, and accessories, equipment, and other aftermarket items for the various divisions of city government.

Director.

Thank you, uh Chair and Committee.

We have just the piece here that every time we make a add a piece of equipment to this, we have to make an amendment to it.

So in this case, we added uh a piece.

I'm gonna have uh Commissioner uh Brown here to explain that.

Thank you to the chair.

The the what we did is we added a uh SUV for TB20, and then we reallocated uh some funds uh under the CPP line for uh stake body truck.

Okay, thank you.

Councilman Bishop.

Oh, you stepped out?

Okay, as uh Councilman Bishop aware of this.

Have you talked with Councilman Bishop, the chair for this committee?

Uh no, we did not talk with him about this specifically.

Okay, so all you're doing is adding on one lease purchase vehicle for channel 20.

Yes.

All right.

Um, any reason that this didn't go through committee or that you didn't get a chance to talk to the councilman?

Um there is no, there's no reason why we didn't go through it.

So I'm okay with just simply adding this, but traditionally you need to have talked with the chairman, uh, but I think he's okay with relieving this.

He did sit in the meeting with me, but usually should always talk with the chairman whenever these issues come up.

Understood.

Councilman Bishop, just to give you a heads up.

Uh this is uh one of the pieces that you relieved in our legislative meeting.

This is 811-2025 to add an SUV to Channel 20.

I've just uh just um made sure that the director as well as the assistant director and commissioner know that they should always talk through those kind of issues with you.

Okay.

All right, thank you.

All right, seeing no other questions, ordinance number 811-2025 stands approved.

Please sign on.

Thank you so much.

Thank you.

And director, thank you for all your assistance with all your help last week.

Absolutely appreciate it.

All right.

Okay, ordinance number 800-2025 by council members Harrison and Griffin by Departmental Request, an emergency ordinance to amend section one of ordinance number 1167-2024.

Uh I believe this is a city planning piece.

Do we have city planning here?

Anybody from city planning?

City planning going once, city planning going twice.

City planning will be here at four o'clock this afternoon to hear their piece heard.

Thank you so much.

All right, next up is public health.

Is public health here.

Public health going once, public health going twice.

I do uh do I hear any public health here?

Nope.

All right, we're going to move on from public health.

Public health will be heard later this afternoon.

Tried to give everybody a break and get rid of some of the low-hanging fruit first, but people need to be on time.

Uh let me do this.

These are capital projects.

Before we get into our guests, let me try to knock down Capitol Projects.

It's Capitol Projects here.

Ms.

Johnson.

Winter winter chicken dinner.

All right, Miss Johnson will be representing Capitol Projects as of right now.

Okay.

All right.

And uh this is ordinance number 717-2025 by Councilmembers McCormick, Bishop Harrison by Departmental Request.

An emergency ordinance authorizing the Director of Capitol Projects to issue a permit to West N CMG JV LLC to encroach into the public right of way of East Prospect Avenue by installing and maintaining a 48 and a half by 46 record rendezvous, Ohio Historical Marker that is mounted on a pole with the foundation.

Hello, Council President and to the Council.

This is actually an official historical marker.

It outlines the significance that the store founder Leo Mints made in his contributions to the marketing and sales of rock and roll music in Cleveland.

The sign would be paid for and maintained by Weston CMG GBC L L C.

Um recognition because this record store was the first place where you could look through records instead of having to go ask for the specific record that you wanted to purchase.

Outstanding.

One of my favorite places back in the day.

All right.

Uh Councilman Bishop.

Uh yes, Mr.

President.

Uh, we fully support this piece for passage.

Councilman Harrison Yes, Mr.

Chair.

Uh fully support.

Thank you.

This is in Councilman McCormick's here.

Full support, Chair.

All right, thank you.

This is only to be signed by municipal services and development, planning, and sustainability.

Please sign on.

Ordinance number 717.

Next one is ordinance number 723-2025 as amended by council members Bishop and Griffin by Departmental Requests, an emergency ordinance determining the method of making the public improvement of designing, installing, and constructing various energy conservation measures at the city's division of police district facilities authorizing the director of capital projects.

Uh is this the Lapardo piece?

Yes, we have guests for this one.

Okay, let's um hear this one last out of Capitol Projects and then that take us into our guests, okay?

Okay.

All right, thank you, because I know there's a lot of questions on that.

All right, thank you.

All right, the next one is ordinance number 809-2025 by Council Members Griffin, Bishop, and Harrison by Departmental Requests, an emergency ordinance authorizing the director of capital projects to issue a permit to the Cleveland Clinic Foundation to encroach into over and under the public right-of-way of East 96th Street by installing using the and maintaining canopy, footers, and columns.

Thank you.

Councilman Bishop.

Uh, yes, Mr.

President, we fully support this report.

Councilman Harrison.

And this is in Ward 6, and I am in full support of this.

Thank you so much.

All right, next one is ordinance number 810-2025 by Councilmember Starr.

Bishop and Harrison by Departmental requests an emergency ordinance authorizing the director of capital projects to issue one or more permits to Greater Cleveland Regional Transit Authority to encroach into the public right-of-way of East 79th Street.

Director and Commissioner.

Yes, again, President of the Council.

The GCRTA is constructing renovations of the East 79th Street Green and Blue Line Station and with pedestrian barriers, bollards, and overhead canopy and utility trenches to connect existing stormwater and electric.

So this right-of-way will allow them to proceed with that work.

Thank you.

Councilman Bishop.

Yes, Ms.

President, we fully support this piece.

Thank you, Councilman Harrison.

Yes, we'll be supporting all right.

Thank you.

Seeing no other questions, ordinance number 810-2025 stands approved.

Please sign on.

Next one is ordinance number 814-2025 by Council Members McCormick, Bishop, and Harrison by departmental request.

An emergency ordinance giving consent of the City of Cleveland to Director of Transportation of the State of Ohio to replace the Lorraine Avenue Bridge over Columbus Road and authorizing agreements.

Yes, to the president of the council.

This improvement includes replacing the Lorraine Avenue Bridge over Columbus Road.

The city will maintain the bridge once the project is completed, and this is a federal project.

Thank you so much.

Yes, uh Ms.

Chairman, we fully support this piece of thank you, Councilman Harrison.

Thank you, and Councilman McCormick.

God bless.

All right.

So saying no other questions, ordinance number 814-2025 stands approved.

Thank you.

Ordinance number 844-2025 by Council Members McCormick, Bishop Harrison and Griffin by departmental request.

An emergency ordinance to vacate a portion of Hancock Avenue.

Director to the President of the Council.

All right.

Thank you.

Councilman Bishop.

I'm sorry, Mr.

Chairman fully support this piece of past.

Thank you, Councilman McCormick.

I'm sorry, Councilman Harrison.

Yes, Mr.

Chair, fully support.

All right, Councilman McCormick.

Thank you, Chair.

I'll fully support this legislation.

The party vacated in the street has engaged the neighbors and received their support on this vacation as well.

Thank you.

Thank you.

Okay.

I don't see this 844.

Oh, okay.

Uh saying all the questions 844-2025 stands approved, please sign off.

Um I do not see them on my guest list.

These are guests.

Metro Parks.

Those are guests.

We have a guest for Metro Parks.

Okay, you want to bring up the guest from Metro Parks.

Okay.

Thank you.

That's a big piece of legislation.

All right.

This is 667.

All right.

This is ordinance number 667-2025 by Council Members Bishop and Harrison by departmental request.

An emergency ordinance authorizing the Director of Parks and Recreation, Public Works, Community Development, and Public Safety to execute various deeds of easement and various temporary deeds of easement granting to the Northeast Ohio Regional Sewer District certain easement rights in property located within various city-owned properties and declaring the easement rights not needed for the public's uh for the city's public use.

Director.

Okay, through the president to the council.

Um Commissioner De Janeiro is in has joined us at the table to give additional information about this legislation.

Thank you.

Thank you.

Good morning, Mr.

Chairman and members of the committee.

I have with me Doug Lapata from the Regional Sewer District, who is the project manager for the Kingsbury Run Consolidation Sewer Project.

This project is part of the Sierra District's Project Clean Lake program to reduce combined sewer overflows released into the Cuyahoga River.

This project entails the installation of approximately 6400 linear feet of deep consolidation sewers from 90 to 120 inches in diameter.

These sewers will convey wet weather flows from local combined sewers into the southerly steward storage tunnel.

In addition, there will be seven several hundred linear feet of relief sewers that will be installed, um, which will provide additional capacity.

And the project traverses various city properties.

It's a large project area.

There is a map in your packet that shows in orange the new sewer that will be installed.

It crosses properties under the jurisdiction of parks and recreation.

Properties under the jurisdiction of community development.

There is a public works facility that's involved, the fourth district police station.

And basically, I'll just give you a quick summary of what's happening at each of these properties.

Operations, I will say operations won't be interrupted by uh the construction.

The properties include Mary and Motley Playfield, um at which two large diameter tunnels will be installed 130 feet underground.

Uh the sewer district will need access in this area to a shaft that is on RTA property.

Um but the driveway uh that they will use will be fenced in and gated on the community development parcels.

These are two parcels on Berwick Road.

Um the tunnel will cross under these parcels 80 feet underground at the OzL Dobbins maintenance facility facility.

Norsead will be removing and decommissioning a flow regulator structure in the southeast corner of the property.

The work area will be temporarily fenced.

And uh North will also be um installing a liner on an existing box culvert on that property.

Um there the work area will be restored to existing conditions, um, and any trees disturbed will be replaced in kind.

At the fourth district police station, the sewer district will be um passage installing a flow regulator structure, actually two uh flow regulator structures in the western parking lot adjacent to Kinsman Road.

The sewer district will provide a temporary parking lot to accommodate parking.

It will be fenced in, temporary lighting will be installed, and there will be safe access um to the police station will be provided via temporary walkway.

Uh once construction is complete, the temporary parking lot will be removed and all areas will be restored to pre-existing conditions.

And then at Luke Easter Park, a fro flow regulator structure will be installed within an existing box culvert adjacent to Kinsman Road.

Um the sewer district will construct an access drive to this regulator site.

And again, um other than the parking lot uh interruptions, the operations will not be um interfered with at this location.

The so North needs easements from the city in order uh to facilitate the construction.

They are seeking five permanent surface easements, six permanent subtraining easements, and eight temporary easements.

The value, the appraised value of the easements is 99,350, and that will be allocated amongst the four uh four departments involved.

Okay, all right, thank you.

Um so Kingsbury Run, we know one of the major tributaries takes sewage all the way through the southeast part of town.

Um so I just want to make sure that um between after Bishop Maharrison, if there's any comments by my colleague, Councilwoman Deborah Gray or any other Southeast Councilperson.

Uh, yeah, Mr.

Chairman.

Uh vetted this with the uh director, and we fully support this request.

Thank you.

Councilman Hairston.

Uh yes, Mr.

Chair, I had opportunity to have discussion around this piece.

Uh as Mr.

Um Chairman Bishop said I fully support.

Thank you.

Thank you.

Councilwoman uh Gray, I know that we share a lot of Kingsbury Run.

Did you have any comments to make on this?

No, I don't know.

I don't I fully support this uh operation.

All right, thank you so much.

Uh please um make sure, and I know you say that's in the legislation, but everybody has a map.

It'll be good for us to show it to our residents because sometimes they'll see activity and want to know what's going on.

All right.

Sand of the questions, ordinance number 667-2025 stands approved.

We have another street vacation, which is ordinance number 980-2025 by Council Members McCormick, Bishop, Harrison by Departmental Request and Emergency Ordinance to vacate all of Joy Court and Day Alley.

Uh this is for intro and considered for passage tonight by the entire council.

Uh, does anybody from Capitol Projects want to comment on this before I turn it over to the council people?

Um, no comments.

All right.

Councilman Bishop and Harrison, are you aware of this?

Um, Mr.

Chairman, what's the name?

What was that number, please?

This is 980-2025.

Let me do this, Councilman McCormick.

Can you get some background on it if you could?

Yeah, my apologies, sir.

For some reason this rang through on finance.

I don't know why.

Uh Director Barrett, I don't know if he's here as well.

This came through under your shop, not quite sure why.

This is the Joy Court Alley that we've been working on for like a year.

So I just don't know why this came under finance and not MoCAP, but uh Chairman, we've been working with MOCAP diligently on this, uh fully supported it.

It's around a uh residential development in Ward 3.

So I'm not I know your team has been working really hard on this.

I don't know why it came under finance.

So okay.

So any concerns, Councilman Bishop or Harrison.

This is basically uh street vacation to support a development, housing development in that area, and Councilman McCormick's area.

Uh yes, Mr.

President.

Um yeah, I didn't have this one on my list, it didn't come through me because it came through finance.

So but I fully support this piece for uh pastors.

Thank you for supporting the colleague.

Uh Councilman McCormick uh Councilman uh Harrison.

Say, Mr.

Chair, this is the first uh for me, but um uh fully support, thank you.

So, Councilman McCormick, you're okay with this being intro and passed tonight, even though it has not gone through the committee.

Yes, sir chair, and and again, I I just want to um we have been working diligently with MoCAP and uh the neighborhood and uh the investor on this pro on this vacation.

So very aware of it.

Uh again, don't know how it got on our desk the route it did, but um very aware of it, uh Mr.

President and support it.

All right.

Um, due to the councilman's confidence in this and due to the fact that um it's pretty routine street vacation supporting a larger housing development.

Um we'll move this forward for consideration for passage by the full council tonight.

Thanks everyone, and I'll put those pieces right here so we know where they're um let me do this.

Let me come back to Capital Projects in a minute for Leopardo because I want to knock down these couple of guests and then I'll bring Capital back up.

Okay, because we also have Metro Parks joining us.

Okay, Metro Parks is and Leopardo.

Metro Parks is the um beach, which you got nine eighty-six, nine ninety-three, yes, and then seven twenty-three.

Right?

Um Leopardo, yes, seven twenty-three.

All right, let me do this.

Let me knock down these couple of guests and then I'll bring you guys right back up if I could.

Okay.

All right, thank you so much.

Trying to manage a pretty lengthy agenda today.

Appreciate it.

This is a smart approach.

All right.

First one is parks and recreation, and we have guests with us, and this is ordinance number 816-2025 by Councilmembers Bishop and Griffin by departmental requests in emergency ordinance authorizing the director of parks and recreation and finance to enter into one or more contracts with the Cleveland Metropolitan School District to conduct recreational, cultural, and extracurricular programs for the benefit of school children during the 2024-25 school year.

And I believe we have Director Nichols and my good friend uh Miss Desiree Powell.

All right, director.

Good morning, Council President.

Thank you for having us here.

Uh, today we will have uh CMSD representative, athletic director, Desiree Powell, um discuss the use of uh funding from the city for out-of-school time programming.

Thank you.

Good morning, Chair, good morning uh committee.

Um the seat funds that we receive from the city uh primarily go to the middle school programming.

There's a portion that goes for kindergarten to fifth grade for um we don't call them field trips anymore.

We call them field experiences so that they have educational exposure and various different things.

One of the new programs we added in there is for all the fourth graders in the city to get into the pool and learn um how to survive most importantly, but try to learn some swimming lessons for six weeks, so we use that money for that.

Um athletics, sixth, seventh, and eighth grade, and um a good portion goes to the arts and music department, and then each of the high schools in the Senate league received ten thousand dollars.

Okay, all right.

Any uh so just out of curiosity, and this goes to them being able to fund trips or equipment or have the flexibility for any of all of the above?

Programming for equipment, uniforms, coaches, entry into these activities that they go to from kindergarten through fifth grade, and then the music.

So is this expected to supplement their programs or to fund fully their programs?

It's a strong part of the funds that's needed for the middle school programming.

Yes.

Okay.

All right.

And this is all the K through eights.

All the K through eights, yes.

Okay, thank you.

All right.

Uh Councilman Bishop.

Uh yes, Mr.

Chairman.

Mr.

Chairman, I am um I am familiar with this piece.

This is a yearly piece.

Uh however, um I was not contacted ahead of time about this piece, and I would appreciate I I would appreciate that all pieces that come through municipal services of properties.

Please contact me ahead of time.

But Mr.

Chairman, I'm fully supportive of this piece.

Thank you.

Thank you.

And for all directors, please make sure, even if it's a piece that's relieved in a summer meeting, please still talk with the chair of that committee.

I really rely on chairs to bet these processes uh in order to make sure that we're in a good place.

But as Councilman Bishop said, most of us are aware, this is because this is a yearly program.

Okay.

Councilman uh Kerry McCormick and then Councilman Anthony Hirst.

Thank you, Mr.

Chairman.

Uh fully support um 816 2025.

Uh, these are our kids investment in our kids, and I can't think of a better cause than to invest in our kids and ensure that they have the out-of-school programming that they deserve.

Thank you, Chair.

Thank you.

Thank you so much, Councilman.

Councilman Hairston.

Um, I echo my colleagues, Mr.

Chair, fully supportive of any program that's going to um do a little bit more to help our our babies.

Uh asking for uh passage.

Thank you.

All right.

Thank you, Councilman, and I echo what my colleagues said.

This is always uh welcome addition.

And I have to say that my relationship and working closely with Ms.

Powell has always been great.

Uh for those of us who are municipal and high school football and basketball and sports fans.

I follow all the teams, so I go to a lot of games.

You should stay in close touch base with her because um I do try to show up at the fields to support our children as well.

Councilman Michael Pollense.

Yes, Mr.

Mr.

Chairman, thank you to my honorable colleagues.

Uh just had a question.

How many baseball teams?

How many of the schools still have baseball teams?

It will fluctuate between seven and eight out of twelve.

Out of twelve.

And that's at that at what's what level?

High school.

High school.

And if you could provide that to me, I'd appreciate that.

Thank you.

Thank you.

I can do that.

Thank you.

Councilman Brian Casey.

Thank you, Mr.

Chairman.

Mr.

Chairman and Ms.

Powell.

When was the last time uh CMSD did a Washington DC trip?

Through seat funds, I could not say.

There's probably used through the school funds for any of the schools that go to Washington.

Would that be something, Mr.

Chairman, to Ms.

Powell?

Would that be something that each individual school would have to arrange for themselves, or is that a district-wide thing?

Usually it's a school wide uh principal-led.

And we only asked because last year when we were in in DC for National League of Cities, all we see is a bunch of school kids down there, and we were just wondering at that time when the last time CMSD had participated in in a Washington trip.

So we can talk to the principals and see if there's something where we could do something collaboratively, but I don't believe there's been any funds for out of town out of state trips.

All right, thank you.

All right, thank you.

Uh seeing no other questions, ordinance number 816-2025 stands approved.

Thank you, Ms.

Powell.

Keep up the great work.

Thank you, committee.

Thank you.

You know who is your guest with you?

Good morning.

I'm Kenneth Barrett.

I'm manager of student activities.

Okay, great.

I'm used to seeing the other young lady with you guys.

She's our fiscal.

She's the fiscal.

Okay.

That's the always know the money people in every organization.

All right.

Okay.

Thank you, Ms.

Powell.

Thank you, Chair.

Thank you, committee.

All right.

Next up is ordinance number 817-2025.

Um this is by council members Bishop and Griffin by departmental requests and emergency ordinance authorizing the director of parks and recreation to enter into an agreement with the neighborhood leadership institute to implement and to implement educational, recreational, and cultural programs in various school buildings and other facilities during evening hours, provide leadership training, and supervise the summer tennis program.

I thought we had Mr.

Harp here.

Yes, that's what I was looking for.

He was here.

I don't know if you went to the restroom or uh okay, we'll get started.

I know that he was here, but we'll get started and then we'll bring them back.

Okay.

All right, please uh proceed.

Thank you, uh Council President.

Um, to discuss this item with uh the count committee of a whole today.

We have Commissioner Sam uh Gissent Tanner of Recreation and we will have um Director Travel Harp of the Neighborhood Leadership Institute.

I will turn this over to Commissioner Gissent Tanner for a brief summary.

Um and I'm gonna go see if I can locate um the director of NLI.

Morning, Chairman, committee.

Um the Division of Recreation Parks and Recreation have been supporting this program for over 15 years.

This is uh vital program for schools as neighborhood resources, our tennis program, and also youth leadership cleveland.

As you know, recreation centers are not in every community, so we it's a vital part to have um schools as neighborhood resources to provide programming in those areas where we do not.

Um the increase in the price this year is because of the school cost to use the uh the schools and also the cost to use the um um Cleveland State for youth leadership cleveland.

At this time I'll answer any questions you may have.

Uh just out of curiosity, does this reflect the increase that we put into the budget to support NLI for this upcoming year?

Um, this was a last-minute increase.

Uh the original amount was 289,000.

We increased to 453,000 as a result of the cost for CSU and the um um the um cost of schools and neighborhood resources.

So we increased it by approximately 150,000, right?

That is correct.

So we increased it by 150,000, and then how much more on top of what we increased it, did you actually add?

We already had the 289 chairman.

Okay.

So we're looking for an additional 153,000.

Okay.

Reason I'm thinking through this is because wouldn't it have been easier if we would have just had an extra 300,000 that we added into it in the beginning, instead of having to come back and add it now.

To the chair, that's absolutely uh my thoughts exactly.

Okay.

Um, yeah.

Okay.

All right, just want to keep that in mind because I know that the costs have gone up significantly for the schools, for janitors, for um security, and um this program is very important to areas like mine and councilman Harrison and others who don't always have recreation centers in certain areas of the city.

Uh, so it's an important program to actually fill the gaps.

And I I know Mr.

Harp just joins us at the table, but Mr.

Harp, if you can give us some background on how you guys identify the gaps in the city in order to try to fill the void in some of the areas of the city that does not have programs like Collinwood, Sunbeam, etc.

etc.

Yeah, thank you for that.

So uh way before I was a part of NLI, um there were there's a uh community initiative that happened where we got community feedback in certain areas where there were not as not as many recreational opportunities for residents and out of that dialogue um came up some suggestions and and one of the things I think the the it's like a sort of mantra or value that goes through all of NLI's work is we utilize the human capital within the neighborhoods in order to be able to um address challenges and so that's how this model was conceived.

And so uh the the I guess the the way that the program rolls out, we actually um bring in and hire uh residents from those areas to actually provide recreational programs.

Um and so I mean that that's basically um where it came from where the need came from.

Thank you.

Anything to add, Director Nichols.

Are you good?

Uh I am good.

Uh thank you.

I appreciate it.

Um this is a transition year in which some of the work started prior to my arrival, so um I'm still in my learning curve, which is why I'm leaning on some of the other folks to support this uh legislative request.

Thank you.

Thank you, and director, you'll be just fine.

Just a lot of these programs we've heard at the table for like the last some of us 10 years, and that's why we're very familiar with them.

But um, this program actually has a very valuable uh purpose, and many of us that come through the neighborhood leadership um pipeline really value um the neighborhood leadership cleveland pipeline value NLI, so just keep that in mind.

Councilman Michael Pollen, uh well, first of all, Councilman uh Bishop, are you aware of this and are you good?

Uh Mr.

President, I uh this is a of course like I said before, this is a routine piece, Mr.

President.

Um I was not aware or I was not contacted about the increase um in this uh program.

Uh I know we had discussions last year about a possible uh increase, but I was not uh um aware of that this was being increased.

Ms.

President, if you okay with the increase, uh I'll yield you, Mr.

President.

Okay, and once again, um Director Nichols, if we could please make sure um the chairs are vital because the chairs advise me on how we should be moving uh moving uh pieces of legislation.

So, like you said, it's just everybody's getting their feet and uh we'll go from there, okay.

But thank you, Councilman Bishop.

Councilman uh Michael Palency.

Thank you.

Thank you, Mr.

Chairman, my honorable colleagues to the administration, to the director, and to the commissioner.

Uh this is a program that I lobbied for many years ago to get a Collinwood High School.

Um but I'm trying to figure out.

I just want to know the funding source.

Educate us again as it retains to the funding source.

Director Um the funding source.

I'm sorry, uh, through the chair to the councilman.

Uh I is your question the funding source for the for the 453,000.

Out of the city's funds that will come out of the recreation budget under contractual services.

Contractual services, okay.

And then secondly, as it pertains to all of the locations as it pertains to the uh information as pertains to the number of youth, the number of participants.

Um is participation up or down.

Actually, so so um so of course during the COVID years it went down and everything, but we're seeing a gradual increase in all of our numbers as we move up.

Across the board.

Yes.

That's encouraging.

Good.

Thank you, Mr.

Chairman.

I support this wholeheartedly.

Thank you.

Councilman Hearston, any comments?

Uh thank you, Mr.

Chair.

Fully supportive.

Then I'm glad to see the increase here.

Uh NLI has really been providing some valuable uh work and um resources to our neighborhood, in particular the Collinwood community, as you stated.

Uh parts of Collinwood on the South Side does not have access to recreation opportunities in particular.

The Euclid Park community, Nottingham Villages, which are so uh a ways away from uh the recenter over on Lakeshore in this uh location that Collinwood has served as a place for the community to attend and still have access to recreation opportunities.

And so I just thank um Mr.

Harp and his team for stepping up and continuing the work uh in our neighborhood.

And you know, they've been out more trying to seek from residents what they would like to see um uh more of at this location and if there's any additional activities that they would like to see.

Uh I know uh former council of Roosevelt Coach for Ward 10 served there for uh many decades and was also someone who uh lobbied and wanted to make sure that the constituents at that time that he represented had access.

And we actually a church yesterday that we supported with a landmark uh designation or uh uh church at 150th and Aspenwall uh was also part of this initiative that provided some limited recreation uh opportunities there, but unfortunately, over the years, you know, the maintenance they weren't able to keep up the maintenance, so we had to discontinue that program.

We used their basketball uh court there at the church.

Uh and everything then shifted to um with NLI to uh Collinwood because of the gym that they had and the other uh facilities within the school.

So again, fully supported, Mr.

Chairman.

I'm glad to see this is moving forward and at a higher uh rate than we were supporting the program previously.

Thank you.

Thank you.

Thank you so much.

Um I think this is a great program.

Thank you guys for putting the increase and let's make sure a policy team, if we could to put a uh pin in this as we do operational hearings and as we do budget hearings, so that we can make sure that we uh monitor this because we know that this fills gaps in the city, and it also provides more than just recreation.

Um I'd really advise of how we can integrate it into other recreation centers because they have a great leadership program as well.

Uh, where I know we're trying to move away from just dribbling the basketball and hitting the baseball, but how do we actually produce leaders out of these rec centers?

So keep that in mind and whatever we could do and um stay in touch with us, and many of us might be willing to even pilot something on a discretionary basis, okay?

All right, thank you so much.

Thank you.

All right, uh seeing other questions, ordinance number 817-2025 stands approved.

Thank you so much, directory.

Thank you, thank you.

And uh Commissioner and Mr.

Harp.

Thank you all.

Thank you.

Okay.

Uh and director, don't don't don't be uh alarmed.

Uh Mike Palency will haze you and do enough time right now.

You're still just uh getting broke in, okay.

So take your time.

You're doing a good job, okay?

Thank you.

I appreciate that.

Thank you.

All right.

Uh I do want to bring up uh ordinance number 725-2025.

And this is counsel by council members Bishop and Griffin by departmental requests and emergency ordinance authorizing the director of public works to enter into an agreement with the Cleveland Brown Stadium Company LLC to reimburse the Cleveland Browns for emergency repairs made to Huntington Bank Field, performed by the Cleveland Browns Stadium Company LLC.

I believe that we have uh Mr.

Phil uh Dangerfield and also a couple of representatives from the Brown, and then I apologize.

Um sometimes I I get people's names.

I should know that it is now Keisha Johnson Chambers and not Keisha Johnson.

I just remember Keisha Johnson, but I should know my brother's last name too.

All right, thank you so much.

I answer to all.

All right.

All right, and uh this is our routine scheduled repair.

And I want to start by saying I know that this is always um an interesting topic.

We're doing with strictly with what our legal obligation is.

Uh we will, you know, free for any council people to ask any questions, but the people that are here today are the facilities experts.

They are not the politicians and not the ones who uh are doing anything around making decisions on where the team's at, they're just strictly focused on facilities.

So I don't want this to delve off into uh another political conversation.

This is why people, while we still have the Cleveland Browns and not the Brook Park Browns, we need to make sure we take care of our facility and make sure that people are safe, warm, and um and and comfortable.

So let's just keep that in mind as we deliberate this piece of legislation and not allow it to delve into a large political um you know conversation about the tenants of that deal.

We want to have plenty of time to deal with that, okay?

All right, thank you.

All right, uh Ms.

Chambers.

Next to the chair to the council.

We are here to discuss the repairs to the Browns Stadium.

Um the MOCAP does an audit.

We do an audit, a five-year audit of the stadium, so we understand the conditions that we currently have before us.

Um the Brown Stadium, as you all know, is owned by the city of Cleveland and operated by the Browns.

I'm pursuing to the requirements of the lease of the stadium between the city and the Browns, dated October 23rd, 1998, in order to maintain the structure and to preserve its usefulness as a sports facility.

Um this legislation will authorize the mayor's office of capital projects to reimburse the Cleveland Browns for emergency repairs, performed a cause to be performed by the Cleveland Browns for the improvements listed below for the Browns Stadium.

These improvements have been reviewed in physical condition inspected by MOCAP and have been deemed to be necessary emergency repairs as defined in the lease, and the lease also requires the audit.

So it's all kind of overlaps.

Um we identified the um 2,654,954 53 dollars of repairs that are to be done for the stadium, and which we classify as emergency repairs, and we have um our director, our engineering, excuse me, architecture manager Mark Dulick here to give additional details about those repairs, and then as you know, we have the Browns um representatives here to answer additional questions as well, Mr.

Doolett.

Good morning.

Morning.

The repairs that are being performed this year for which we're asking financing.

Would you uh care for me to go through those repairs?

Yes, I will do so.

Um they are uh the bridge connection repairs, uh pipe insulation, replacement of an expansion tank, uh replacement of sewer ejector pumps and dequad, repair of non-structural concrete, replacement of air conditioning units in the uh three first aid rooms, replacement of the chilled water pump seals, replacement of the failed gutter systems, the overhead and vertical concrete repairs, repair of joints in the seating bowl and concourses, replacement of the hot water heater, reconfiguring and recommissioning of the eight-inch chilled water pipe automation and the implementation of the arc flash study with the placards.

That is the list of emergency repairs for the 2025 capital legislation for the Browns Stadium.

Okay.

Anything else to add uh from you, Miss Chambers or anybody from the uh Browns organization?

No, we have nothing to add.

Mr.

Dangerfield or and what's your name again, sir?

Mr.

Rush.

Mr.

Rush.

Uh I think we were Sir Your Mercury.

Yeah, just press the gray.

There you go.

Sorry about that.

Uh I would just add we've worked collaboratively with the city to uh ensure that the repairs that are being completed are emergency repairs and are needed uh and are deferring uh as much work as possible.

Um so you know I think this this amount 2.654 million dollars reflects you know the work that absolutely was necessary to be done uh to maintain safe operations of the building.

All right, so just a couple of questions before I go to my uh the members of the body.

Um so the audit is done and performed by somebody who the city chooses or who the team chooses that.

Who's the third party person that we choose?

I can answer that sure.

So the city is the one that um that does that hires the auditor.

So the city hires the auditor, the auditor comes and said these are the this a third party auditor.

So nobody influences the auditors' opinions, the city nor the Browns, the city auditor that we hire as the third party auditor says these are the repairs that are needed for emergency for the stadium, and then present them to the Browns.

Um couple of questions that I have about process.

What if the Browns dispute those and don't want to pay those?

Or what if the city disputes those and don't want to pay those?

How does that operate?

And then number two, how do you how and what determines an emergency?

Is it something that creates imminent danger or something that can lead to the deterioration of the stadium?

I'll answer that question, Council President.

Yes.

As Phil as Mr.

Dangerfield mentioned before, we are I've been very diligent the last couple years to make sure that we're not doing anything that we don't need to do.

And to your point before, there usually all those things are life safety or things that could put our fans or anybody at the stadium in imminent danger if something were to fail at that point in time.

So it's mostly mechanical, utility, infrastructure, decks, those are the kind of things that most of this covers.

Absolutely.

So it's not we are paying for a new luxurious scoreboard in a stadium that might be obsolete in two years.

This is basically what's needed for the health, wellness, and safety of the visitors of the state.

Yeah, you will see very similar items, the most material items every year being uh concrete and joint repairs will be the most material you'll see per year.

I might ask this.

This may be asked the wrong way, but bear with me, because I think you'll understand where I'm going.

How do you, as facilities managers, begin to pare down and scale back some of the repairs that are needed so that you don't waste money based on where you're trying to go and weigh that against if for some reason the Brook Park thing doesn't go through that we don't allow our facility to be deterioration and um dysfunctional by neglect.

I would answer that saying um even if we were staying in the building long term, that we at this point in time we would be performing these emergency repairs, and then any deferred maintenance would be captured as part of a renovation to the building.

Okay.

I just don't just hear me clear when I say this, because I'm one of the few people that you know in this city to believe that the Brook Park deal is not done.

And if that means that we have to extend the life on this stadium, then we want to make sure that that same health and wellness is in place for the visitors.

Or if we determine that we want to do something with the present stadium, we should not allow it to deteriorate to where it is to the point of saying, see, we can't do anything with it now because we have not made it viable.

So um this is a very sensitive conversation and topic to me, because I want to make sure that we stabilize this asset enough that we can still have it as a bargaining conversation and welcome anybody back if somehow we find undisclosed issues with Brook Park.

Um I just don't want us to allow the stadium to be in disrepair and have um you know um deterioration by neglect.

Okay.

So just keep that in mind, and that's something we'll be watching very close over the next few years.

And please, as the Capitol Projects team, keep us in abreast because we want to make sure that we're very strategic in the investments that we make to this asset.

Okay.

Um I have a couple of members, but before I go to them, Councilman Bishop, are you um aware of this?

Uh yes, Mr.

Chairman, we fully fully vetted this with the director and uh recommended for passage.

Thank you.

Thank you.

All right.

I have uh Councilman Casey and Councilman Michael Palency.

Thank you, Mr.

Chairman.

Mr.

Chairman, to our presenters, can you give us an example of what non-structural concrete is?

It's like crack ceiling or something.

So it it could be deterioration of concrete that is you know in a uh concourse area or bullisle, things like that.

And then can you give us an example, Mr.

Chairman, to our presenters?

Um the allied offices.

Um I I know what a first aid room is, um, but AC in an allied office.

Well, how is how does that in your words uh an emergency or imminent danger to somebody not to have air in an allied office, whatever an allied office is?

So the allied off is specified as a contractor that works within the stadium uh to perform security uh and uh on on event days.

Um we review these in detail with the department, uh and it was agreed upon that you know these repairs need to be to be done.

And then can you tell us what the implementation of arc flash study with placards is?

I'm not an engineer, uh, but I believe it has to do with our electrical system.

Mark, can you speak to that?

Certainly, thank you.

Uh through the chair to the councilman.

Yeah, it has to do with um I'm if anybody is familiar with how electrical systems work.

Um the safety issue is that there can actually be arcing among different pieces or components of the full building electrical system and what this especially while they're being repaired.

So um the the arc flash study determined where we needed to place these placards as well as where we needed to make improvements to ensure that arc flash doesn't happen.

Again, can you tell us what arc flash is, though, Mr.

Chairman?

Through the chair to the councilman.

Yes, gladly.

Um equipment with electricity, basically the can the electricity is typically conducted through conductors through wires between different pieces of equipment.

Sometimes based on the charge of that equipment, especially the equipment where the electricity will change its path.

There can actually be an arc of electricity that goes from one component of the electrical system to another.

And we need to put placards, Mr.

Chairman, to we need to put placards.

Yes.

Okay.

And then Mr.

Chairman, um again, could we reiterate what happens if we don't pass this?

What's the legal obligation if we just say no?

To whomever.

To Mr.

Chairman, to our presenters.

Or maybe our law director would like to answer or weigh in on that.

Could you repeat your question, Councilman Casey?

What happened what happens if this council decides to say no?

Right?

Um just uh question, um Director Griffin, do you have any background on that?

What if council says no to these um to these things?

What is the response?

Yes, if you could uh through Council President to uh the councilman.

Uh so in our litigation in State Court uh uh a few days ago the Cleveland Browns filed their answer to our complaint.

One of their affirmative defenses was a claim that the city uh was not upholding its part of the lease.

Uh that we were in violation of the contract.

We don't believe that that is true.

Uh but they will claim that that is a defense to why we can't enforce the lease.

Uh we will, of course, continue to do it aggressively, uh, but it will be part of their argument to have already put the uh before the court.

All right.

Thank you, Mr.

Chairman.

Thank you.

And and I love when uh the councilman asked that question because I know that that's what's every councilman's mind is if we just reject some of this.

Um I know some council people are always itching to say no, but um we always got to keep in mind if this will end up in a longer litigation and wound up costing us more money if um if we don't express that.

But I I do think that the councilman's questions on a couple of these projects, I call it the the the Casey question to make sure that uh we have we know our options if we don't pass this legislation, okay?

So thank you, and uh thank you for letting us know that that's part of your conversation, Director.

Councilman Mike Pillensey.

Thank you.

Thank you, Mr.

Chairman.

My colleagues.

Um I have Mr.

Rush's name.

I didn't get this gentleman's Mr.

Dangerfield.

Danger?

Danger field.

Danger field, okay.

That's that's uh I could say something there, but it won't go to the Okay.

Um Mr.

Chairman to um the our city folks.

Um who was the firm who did the assessment?

Through the chair to the councilman, um Osborne Engineering.

Osborne did it.

Okay.

Did Osborne construct the bill?

Uh they were involved, were they involved in the process in the very beginning of the stadium?

Yes.

Were they the contractor?

I can't, I'm trying to recall who the contractor was.

They were part of the they were the engineer of record for the stadium.

Engineer of record, okay.

Um the do you happen to recall uh how much we spent last year on capital repairs?

Uh through the chair to Councilman Polenzik.

I look back, last year's capital repairs were about 5.6 million.

And I will note that those were larger than this year because specifically of the ramps that were repaired last year.

5.6 million.

You're asking for that difference.

5.6 million.

Okay.

Um and the reason I asked that because last year, um, if some of you might recall, um, when there are questions raised about this, there we were invited over.

There was a group of us, I went over and uh to look at what was being proposed to uh to the stadium.

Um this time we were not invited.

We were not given an opportunity to come over and see uh what was being proposed.

And I understand the council president's comments.

Um, but this concern the whole issue with the with the Cleveland Brown Stadium concerns me greatly.

Concerns me greatly, because we could be looking at an empty facility, an empty facility.

And we've all heard these estimated costs being kicked around between 25 to 30 million dollars to tear it down.

That's the numbers I've heard point blank.

And so as we go forward, um, and we still owe, and uh the finance director is here, somewhere just under 40 million on the building, um, and our debt service interest um principal and debt service this year, I think somewhere around 9 million.

So uh we are um we, the council, the people of the City of Cleveland have paid a substantial amount of money and will continue to pay a substantial amount of money on this facility.

We know our legal responsibilities under the terms of the lease.

The uh the work, the 2.6 million, has that work already been completed?

Uh through the chair to Councilman Polency, partially, yes.

The first four items on there are actually emergency capital repairs that actually came up and we repaired right away.

Some of those are actually completed in late 24 and 25 that were just coming through authorization to pay for those now.

The rest of them are in process and nearing completion, obviously, we come to the start of our season to make sure that those are done.

So the the Southeast level, the pipe insulation, expansion tank replacements, and sewer ejector pumps, they have all been done.

That is correct.

Okay.

And the rest of them are in progress.

Uh yes, with the one uh exception that is almost ready to start as those chilled water pump seals for the 22,000.

Chilled water pumps.

Yeah.

Okay.

But again, was there a reason why we're not why the body was not invited to come over and look at the proposed repairs?

Anyone?

There's no uh through the councilman to uh through the chair to the council, there's no reason why.

We do have monthly meetings with MoCap as well.

And you are welcome.

Um I would say to the to the two representative of the Browns, um, I don't have to tell you what the feelings are in the neighborhoods uh with regards to the um Cleveland Browns and all the issues surrounding them.

Um you probably would not want to be at a neighborhood meeting and hear some of the comments.

Um they're not very flattering and they're not very supportive.

Um we know we have we have legal obligations here, but I want to make sure that whatever we're doing from this point on, uh, is absolutely critical for the health and safety of the fans.

That's it.

That's where I'm at.

The health and safety of the fans.

Because the worst case scenario is that we continue to plow money in for capital repairs.

I'm assuming you're already working on a list for next year.

And none of us have a crystal ball whether or not there'll be a team on our lake front.

In fact, most people believe it's going.

It's gone.

But I I know what I read and I know what I hear.

So that's where I'm at.

I want to be assured.

So I'm going to say to the administration.

Council's got to be informed, and we have to be invited over to see for ourselves as we have in the past of what needs to be repaired at this critical facility in the city of Cleveland.

I gotta tell you, it residents are not happy about what's transpiring here.

And so I'll leave it at that, Mr.

Chairman.

Thank you.

Thank you.

All right.

Do we have any other questions regarding ordinance number 725-2025?

Seeing no other questions, ordinance number 725-2025 will be presented to the full council tonight.

Thank you so much to the representatives of the grounds as well as the city of Cleveland.

Thank you.

Okay.

Okay.

Let's bring Leopardo to the table and the police officers, okay.

Um this is ordinance number 723-2025 as amended.

Um I will make sure that all the council members, the amendment is on your tablet, and it is in this piece of legislation.

Therefore, I do not need to read the entire amendment.

Okay.

Um I'll read the legislation and then we'll go into the conversation about this uh piece of legislation.

This is ordinance number 723-2025 as amended by council members Bishop and Griffin by departmental request.

Thank you.

An emergency ordinance determining the method of making the public improvement, but of designing, installing, and constructing various energy conservation measures at the city of at the city's division of police district facilities, authorizing the director of capital projects to enter into one or more guaranteed saving performance contracts for a guaranteed maximum price with Leopardo Energy LLC for the making of the improvement, authorizing the director of public works to enter into one or more maintenance agreements for the improvements, authorizing the director of finance to enter into one or more installment payment contracts and loan contracts to finance the improvements and authorizing other documents.

So I will start out there to tell everybody what the gist of this is.

But this was uh one of the major sticking points that we needed to know.

This is a complicated funding and repair um job, and I know that a lot of you have spent significant times asking questions.

Uh we do have some outstanding questions for the team as well.

But um, director chambers, if you want to start off and get or director Barrett, and then we'll go into the Lapardo team, and then we'll have questions.

I'm sure that uh Councilman Bishop has a few questions and then a few of the other council members have questions as well.

Absolutely.

Thank you, Chair, and to the um council.

I would like for the our guests here to introduce themselves and then we'll we'll get started.

Go ahead and start.

Uh Mike Ball, Government Relations Council for Leo Park Land.

Hi, I'm Drake Wallers, Senior Vice President of Engineering for Leo Part of Energy.

Uh Rob Bullrath, President of Leopard Energy.

Okay.

Thank you very much, guys.

Executive for the Energy.

And Heather Gray, partnership executive for the Apart of Energy.

And we do have assisted Law Director Melnit at the table with us.

Is she serving in the capacity of this or with us?

Okay, I didn't know if you were okay.

So she's serving on this capacity.

So if we have legal questions, uh Director Melnick is here.

And then Mr.

Barrett didn't introduce usually.

Oh.

Paul Barrett, CFO of the city.

Thank you, sir.

All right, then I will let Mark take the reins on this and start the reading.

Thank you, Director.

Um through the chair to the committee of the whole.

Um thank you for uh getting this on the agenda.

Um I think by way of a little bit of introduction, the goal of this, as you know, is to implement comprehensive repairs to all of the police districts.

Um the opportunity to use the can we uh can you hear me?

up the volume.

So we okay.

How's that?

Thank you very much.

Um this is an opportunity to break the cycle of deferred maintenance by addressing the necessary repairs at all of the police districts um comprehensively using a finance method that takes advantage of the state legislation that lets us use uh savings to finance those improvements.

Um I think I could turn it over, unless there are specific questions about the um technical content of this, I would turn it over to Director Barrett to discuss the financing component of that.

I will say that this is a um design build project.

So the difference between this and the design build projects we usually do as authorized by our construction reform legislation is the source of the funding to perform these repairs.

Thank you.

Um through the chair to the committee, um the point was made.

We did look at various amounts of um tools, vehicles that we could use to finance this.

Um there's a lot of needs around the city.

We have a high uh CIP this year than normal.

So we wanted to make sure that we were being efficient with our borrowing, that we were getting the best rate for the city.

So we looked at doing geo bonds, um, we looked at several other options, and we came up with the idea to release an RFP for a lease purchase agreement.

So a lease purchase agreement is an asset asset backed agreement.

So the improvements, the actual improvements that'll be made, the HVACs and the roofs and the windows will be used as collateral to do this type of um this loan uh directly with a bank uh in the amount of 21 million.

So we did go ahead and release an RFP, and the idea was to see what kind of um responses we would get, and if they were competitive with what or better than what we would get going out and and borrowing in the bond market, then that would be the path uh that we would go we would go.

And the other benefits of this uh approach are that it's much quicker.

So we're doing a direct agreement with a bank, and uh because of that, it'll take us about a month to do the paperwork so we can get started much quicker on fixing up the police stations uh than if we did a bond deal, which typically takes about four to six months um to complete.

Um so uh and this is also appropriated annually, it should be uh also noted.

So we'll have to come back to council every year with this.

Um in terms of the ROP process, what we did is we released that to about 12 or 13 banks.

We got nine responses.

Um we do have one that we believe uh we are gonna sign a contract with and come to you guys to um you know finalize that.

Uh and um it will be for the full 21 million dollars.

months um to complete um so uh and this is also appropriated annually it should be uh also noted so we'll have to come back to council every year with this um in terms of the ROP process what we did is we released that to about 12 or 13 banks we got nine responses um we do have one that we believe uh we are gonna sign a contract with and come to you guys to um you know finalize that uh and um it will be for the full 21 million dollars so with that I'll take any questions that we have on the financing tool all right so I just want to make sure because like I said these are questions and some of these may be redundant um but what's the source for all capital projects because all capital projects right now we use bonds right um to the chair uh there's some that's Pago um a large majority of it is bonds that we go out and borrow for uh projects that we need to do throughout the year um so the answer is there are a variety of tools out there including you know pay as we go um but bonds are are the largest portion will the lease purchase and you could you know and I know that I don't I know that everybody here is not technical around finances like you are but is the lease purchase and uh uh do they cover the operational expenses and debt repayment um say that the that the asset backs the actual purchase so does that cover all of the operational expenses all of the debt repayment that will come with the bank loan and everything else um to the chair it covers um it's collateral for the 21 million dollars the full 21 million dollars and everything that's wrapped up I know there was a report sent out to council um that had more specific details on the cost of the project itself um but it does cover the full 21 all right is OEO involved and how are you going to make sure that um we have people that reflect Cleveland working on this project and being able to have an opportunity to bid because that was a little bit unclear when it comes directly through us we know our process but by working closely with this third party um we're unsure of the process how is OEO involved or how are we going to make sure that there's MBE FBE and CSB participation I'll field that question.

Thank you Mr.

Chair um through the chair um as with any design build project we are required to meet both the uh Cleveland small business requirement for the professional services component of the contract as well as the uh 157 and eight for MBE FBE and CSP for the construction component so uh through the design build process uh Leah Prado is the general contractor will be required to submit the subcontractors for approval to meet those goals for both services and construction.

So I don't think this needs to be an amendment however and I call this the policy uh amendment I think we need to get regular updates to make sure we understand where that's at and I want to delegate that to public safety if I could uh so can we make sure that uh either public safety and municipal services even if you make sure that the chairs are updated uh so that we get regular updates on where we're at with MBFB where we're at with realizing savings etc.

Uh to the chair yes the legislation uh was amended to include the reports every three months during the year of construction as well as on a yearly basis thereafter and I did forget to mention that there's a project labor agreement for this as well.

So Mike uh Mike beat me to it.

All right and uh the PLA kicked in because of our community benefits agreement and that this is more than 20 million or why did just just try to understand I'm glad you did do a PLA a project labor agreement but did you do it because of the community benefits agreement that anything over 20 million actually qualifies to have a PLA or did you just do it just out of the kindness of your we do a project labor agreement or work with the project labor agreement for all of our projects over a half a million dollars.

Alright well I'm glad that you we're aware of that because I know that in private projects like Leopardo's which is considered private people might have overlooked that we have a community benefits ordinance that requires that over 20 million is supposed to be a project labor agreement.

So I'm glad that you guys put that in added that anyway because that was going to be something that we would have um requested okay a couple of other things how are we justifying the savings through the staff reductions and how I mean give me understanding of how savings are realized from the goods and services or from saving and staff time.

How are we actually saving and what is where where where are the savings coming from how would we measure in savings?

To the chair I will um let Leopardo our friends from Leopardo field that question.

Thank you.

Oh yeah just Drake Waller is vice president I'll I can answer that question.

So the improvements that we're doing in the facilities, such as replacement of heating and cooling systems, um building envelope, replacement of doors and windows, all have uh energy savings component to that.

So there's that's part of it.

Another part of it is uh maintenings.

So right now you're on an emergency basis of fixing things by doing a more proactive project such as this, we're addressing all the needs in the building at once.

We're gonna save significantly on maintenance year over year.

And there's also a component for operations and procurement.

Um we're looking at a better way to purchase goods and services, so that's another savings component as well.

And these are all measured and verified by us.

Um there's a specific protocol that we must follow to measure and verify these savings.

We're gonna measure these savings as soon as construction starts, and then when construction is completed, then our performance period begins, and that's when we begin to measure our savings year over year.

And that's where we measure all the savings streams that I mentioned, and we produce a report that proves all the savings that we measured.

And if we fall short of those savings, we are required to write a check for the difference so that the savings there's no loss realized by the city.

If I may add to that as well, just because it was part of your question, there are no savings um calculated uh towards the reduction of staff in any way whatsoever.

President, can you have a speaking to the mic?

I'm sorry.

Please speak into the mic.

We're on.

I think I'm can you can you hear me now?

Okay.

Um so there are no savings that are allocated to the reduction of any staff.

Okay.

All right.

Um couple of other things that I just want to do before I turn it over to my uh team.

Are there any um implications of union erosion?

Did we make sure that we checked into that?

And you know, because we're contracting our maintenance and procurement solutions.

Are we making sure that we don't have any problems with our bargaining units on this in any kind of way?

We have any issues?

If there's none, just say so.

None that anybody knows of.

Not that we're aware of.

Okay.

All right.

Are there any fees or costs associated with pre-registering as a vendor to participate in the procurement?

Yes.

On that point, Councilman Starr.

Yes, on that point from the comments that you made earlier regarding this ordinance.

Um, why isn't OEO here at the table to talk about this piece as well?

No reason.

I would tell you that this is uh mainly we spent a lot of time with finance on this.

Um if you want to reach out to OEO, we can have OEO come and have a conversation.

But um, as you see, we got about 10 people here that's been really rolling back, and we spent about the last month trying to appeal through this.

And OEO has given their opinion on this uh because we did reach out to them to ask about um you know their involvement in this, so they did reach out to us on this.

Thank you.

I just wanted to make sure that was a point of questioning that you mentioned earlier that it is important that um OEO goals as well as for this project as it relates to our police stations, uh, we have the right participation on these projects.

That's it.

Absolutely.

Um the one thing I would like uh Ms.

Chambers, Director Chambers, if we could, can we make sure that we get the number of consultants used for incidentals on this?

And then um, if you could um provide a list of consultants, the cost estimates for their service, and the funding sources.

And then if there are any terms of their service.

We just want to make sure that we understand all of that as well.

And I'm pretty sure you have that at your fingertips.

If you can get that to our policy team, um, we really want to make sure that before we make a full vote tonight that we understand the scope of all of this.

I'm gonna turn it over starting out to Councilman Bishop, who I know has spent an enormous amount of time on this, and then I have Palency, Casey, Slide, Harsh, and then Santana and more.

Uh thank you, Mr.

President.

Uh Mr.

President, um, you have touched on pretty much the questions that I have uh ready for the team and Leopardo.

But I I I do want to ask a few other questions.

The director mentioned that he had uh nine responses back from our local banks as a result of the RFP.

Uh can you touch on the uh results of that and how it uh compares if we had went with the other way with GO bonds and how much potentially we can save on that director?

Thank you.

Sure.

So through the chair to the councilman, the whole idea of doing this is to get these banks to sharpen their pencils, um, you know, to see how serious they were about doing business with the city.

Um and we had uh responses that were kind of all over the place.

There were a few that were different tenure tenors, uh so different time periods.

Um we also had varying interest rates.

Um the the winning we expect, I mean it's it's dependent on this legislation passing tonight.

Um, but the the potential winner of the RFP is well below um what if we issue GOs, we believe that we would get general obligation bonds.

So it's a very good bid um that came in.

There were a few very strong bids.

Uh we are taking the one with the lowest rate with a 20-year tenor on it.

Okay, through the chair, um you cannot you cannot kind of divulge the the rate on that, or how much will we save over the the the period of the uh uh loan?

It's what 20 years, how much will we save over 20-year period?

Do you do you have that information or is this kind of premature?

Um so through the chair to the councilman, I can give it to you in percentage terms.

Um if you want dollar amounts, I can surely follow up with that.

Um for a GO, we expect somewhere um with current market rates, market rates change.

I have to caveat it with that, somewhere in the low four to five percent um in terms of interest rate.

Um the winning bid that we're looking at, the potential winning bid is about 4.01 percent.

Okay.

Uh and Mr.

Chairman, I just want to make the statement that um we I am as the chair of municipal service, I am excited to have these uh buildings upgraded.

But what I'm most excited about is the promise of the speed of which we can have these buildings upgraded.

Um you know, the city takes quite a long time to do a lot of different things, but I am very um uh I'm interested in seeing that the speed, how quickly can we get these police districts uh rehab and up and running and us saving the city money over the long term?

Uh and I've been working with Councilman uh Policy, the chair of the public service, public safety, and he's also very excited about these buildings being upgraded.

Now, one more question, Mr.

President, uh before I turn it over to back to you.

Um would Leopard be willing to do capital improvements at the guaranteed max price of 21 million for identified uh for the identified scope of work on uh all five districts without the guaranteed savings or and procurement solutions.

Did you understand that question?

Yeah, I I didn't hear all of it, I'm sorry.

Let me read it again.

Would Leopardo be willing to do the capital improvement at a guaranteed max price of 21 million for I for the identified scope of work at all five police districts without the guaranteed savings and procurement solutions?

Yeah, we'll we will guarantee that yes, we can guarantee the 21 million dollars maximum price.

But if you're asking if we would guarantee the total savings without the procurement, the answer is uh no on that.

We would that that's part of our whole comprehensive savings package.

Okay.

All right.

Okay, thank you, Mr.

President.

That's all the questions.

Thank you.

And once again, I want to commend uh you and Councilman Felicity for spending an enormous amount of time on this.

Um this is a complicated uh deal, and uh I think council really spent their time vetting this for the last month and a half.

And I do want to encourage all the council members, if you can get on Director Barrett's calendar now.

He has some very I know he's met with most of council, if not all, but he has some very creative ways on how he wants to start funding these projects, and I think it's very good um government for you guys to be astute in what he's trying to do, because it is going to be different and it is going to require council people to be willing to embrace some risk.

Uh, but he has a very uh creative way of how he wants to start financing some of these capital projects, as Councilman Bishop said that would help get them funded and get them um started on more expeditiously.

So please meet with him to talk through that, okay?

Councilman Mike Belisi, Casey Slide Parsons and Tanamore.

Thank you.

Um thank you, Mr.

Chairman, um my honorable colleagues and to the all the folks that are here and especially from the administration.

Um I'm gonna direct my comments to Director Barrett to begin, and I want to thank the council president's line of questioning as well.

Um this is the first time we're ever embarking upon this type of financing, correct?

Through the chair to the councilman, that's not correct.

We've actually used my understanding is we've used lease purchase agreements for vehicles in the past.

Okay.

Um typically, if if I could just add, typically for these type of projects, if we were just doing the renovations without the sustainability and savings aspect of it, uh legally, we wouldn't be able to use a lease purchase, but because of that aspect of it, uh legally we're allowed to do this.

So um working with our law team and with Leopardo and Mo Cup and everyone, we we came up with this solution.

I am aware of the vehicle lease purchase, because we have done that a long time.

But this is the first time on a capital project, correct?

Through the chair to the councilman, that's my understanding.

Okay.

So I I want to say this because based on the Council President's comments, and I I want to state for the record, I want to thank Councilman Bishop for really his engagement.

I mean, he went out and looked at the buildings, we were out there together.

Um I really appreciate that.

I want to thank uh Brooke and and Ubacun for the work that they did, the staff work they did on this along.

I mean, this was a tremendous amount of time and effort.

So I want to thank the research staff, Mr.

President.

We we need to thank them every chance we can for the work that they do, and then all the folks from the administration who have been engaged in this as well.

Let me just back for a moment.

If these five buildings, and the Director of Public Safety is here, because we meet weekly, and um he knows for as long as he can recall, I've been on him like white on rice about the conditions of the buildings.

The police stations, the firehouses.

He knows that.

Um these were private buildings, and you sent in Sally Martin's team of inspectors, you'd probably shut half of them down.

That's how bad they are.

You got to understand that's how dilapidated these five buildings are.

They're embarrassing.

And we ask men and women to sign up for the division of police, this the taking off of the office they did last week, 36 of them, and then we we stick them in buildings that are deplorable.

And when you would go into the locker rooms of these buildings where they would have to change, it it is it's embarrassing.

It's embarrassing and it's outrageous.

So we know we have to fix the building.

This has been the city has kicked the ball down the down the court for decade after decade.

So what I want to say to the administration is that finally, you're thinking this administration is thinking out of the box, Director Barrett and the team, uh, and trying to figure out how we can stabilize these five buildings and make them safe and secure for the officers, the men and women in blue who are working in there, because I'll tell you what we witnessed, they're not safe.

When you see pipes leaking in critical areas near electrical boxes, and you see all this stuff, and you just say to yourself and you step back, and there are some areas I can tell you, the Fifth District, man, I didn't even want to go into.

That's how bad they were.

And so again, um, not only the five police districts have to be fixed, but I must say it again, Mr.

Chairman, my honorable colleagues, the 25 firehouses are not in much better shape.

They are not in much better shape.

And I know from all of you, my colleagues who have been in these buildings, you can all attest to that.

So I am hoping that this process, if it's working, and I hope it's gonna work, that we can utilize this on other critical city buildings to make them safe.

And so the handout that you receive, and again, I want to thank uh Council Chair Um Kevin Bishop for requesting all this additional um these handouts, and I want to thank him for the work and relationship we have had.

But Mr.

Chairman, um you raised valid points.

All of us have concerns about this, different sections, and it's one of these things, the proof will be in the pudding.

And I want to say this to the administration, you gotta make it work.

The eyes of Texas are on you.

You gotta make this work.

You gotta get these five buildings fixed as fast as you can, and then maybe we can utilize the same mechanism and process on other city buildings, because we can't keep kicking the ball down the court here, and uh again, I I just say I'm here to support this.

I want to thank the chair, uh I want to thank the staff, and Mr.

Chairman, you raised valid questions, and but we have to watch this closely.

Thank you.

I am here to support it.

Thank you, Councilman Less.

Chairman, I got to put it in the middle of the year.

On that point, Councilman uh Bishop.

Uh Mr.

Chairman, I also would like to uh thank the staff who did a tremendous job in helping us through this process.

Um Ms.

Saban, um Steve, um Rachel, all of our staff members.

Ms.

Odi Bob.

Yeah, we don't want to get it wrong.

But I want to thank all of our staff, Mr.

President.

Thank you, Ms.

President.

All right.

And um I just want to echo that.

You know, for those of us on council, I know a lot of people have been knocking doors and have been out in the public.

Uh, but some of us that have been still rolling up our sleeves with the uh you know the governance side has been a tremendous amount of time on this, so I just want everybody to be aware of that.

I have Councilman Casey, Slife, Horse, Antenna, Moore, and that's who I have so far.

Thank you, Mr.

Chairman.

Mr.

Chairman, to our friends at Leopardo, where is Leopardo based out of?

Where are you guys from?

Um Can you guys hear me okay?

Uh our headquarters is in Chicago, but we also have an office right here on Boulevard, uh about less than a mile from City Hall.

Okay.

On Boulevard right across from the stadium?

Port five.

Boulevard, which is right over there in the workplace.

And then Mr.

Chairman, to uh our friends at Leopardo, will you guys be hiring sticking with the OEO?

Will you guys be hiring subcontractors, or do you guys have your own contracting team within Leopardo?

I would direct that to uh our technical development manager, Eric Betts.

Yes, we have local project management, including myself, that will be overseeing the project, and then we'll go subcontract out to all local contractors.

So you so Mr.

Chairman to Leopardo, you will be subcontracting out to local um contractors?

Correct?

Correct, yes.

Okay, and everyone please use your outside voice so that this end of the table can hear and that to end the table here, and that the audience can hear.

So thank you.

All right, mr.

Mr.

Chairman to Leopardo, what is the time frame?

So when do you if this passes tonight, when do you expect to start, when do you expect to end, and is the work going to be done um simultaneously within all five districts, or are you gonna do one district, move to another, move to another, move to another?

Yeah.

Um so if if this is approved tonight, we begin pre-construction activities next week.

We would be on site by October, and we would be wrapped within 12 months of being on site.

So, Mr.

Chairman, to Mr.

And it would be simultaneous.

I'm sorry, I didn't cover your question.

All right.

So all so you're telling us that all five stations, if this is passed tonight, you'll be on site October, October 2026, all five stations will be completely I don't I don't want to use the word rehab because I'm sure it's not a complete rehab, but all the work that you are being contracted to do will be done in all five districts within 12 months.

Yes.

Okay.

Um Mr.

Chairman, to our friends at Leopardo, I do have one concern, and that is uh I see in all five districts, you've re you've uh mentioned solar roofs as part of the projects, which I'm assuming will be part of the savings uh in the long run.

However, um is there a guarantee, because I um I've studied this matter for a while now, is there any guarantee that if that roof fails while you're installing, or even afterwards, that these roofs, that these solar panels go on the roofs, that Leopardo will be responsible for the for the repair and replacement of the roofs.

I I say that because the city has attempted to put rooftop solar panels, and and I've been against that um for that very reason because there is no guarantee.

Ground mounts, rooftops, are uh uh car ports, I'm all for that stuff.

But some of these buildings, you guys have seen the conditions of these buildings.

Uh some of these buildings are close to 100 years old, and those roofs haven't been touched in in years, and now we're gonna put all the weight of solar panels on it.

So, what guarantee does the city council and does the city have that if those rooftop solar panels fail, even after your one-year construction project is done?

Is there a guarantee that Leopardo gives to the city for the roofs of any of these five buildings?

I would direct that to Erica Drake, who is more qualified to answer that question.

Yes, all of the areas first of first of all, a lot of the roofs are in new newer condition.

Some of the roofs that are older, such as district five, which isn't as an older condition as some of the photos that we have, we are replacing that roof.

And we're doing that in conjunction with the solar, and we are making sure that we have a roof warranty for all the roofs that such that all the construction for the solar, whether we where we put it on, it's not gonna affect any of the existing warranties and the new warranties that we're gonna get for the roof infrastructure.

And is do we have Mr.

Chairman to Oliopardo?

Is that part of the contract?

Is that is that all in the contract that the city's that the city is going to sign?

And how long is the guarantee after you guys are done?

On the uh on the rooftops.

The is how long is the warranty, Eric?

Is that 30?

Yeah, the roof warranty for the new roof will be sorry.

The the roof warranty for station five will be 30 years.

Um we will ensure and work with the other manufacturers of the other roofs to make sure we install solar panels that meet those warranty requirements.

But those the roof warranties that exist now, once they run out, you know, we can't we wouldn't warrant the roof past that.

So, Mr.

Chairman, to our to whomever can answer.

So if there's a guarantee on a roof now and we turn around and we put solar panels on a rooftop, does that now avoid our current warranty that we have on the roof?

And again, Mr.

Chairman, I don't want to put a kink in this, but solar stuff on rooftops is a touchy touchy subject when it comes to warranties, when it comes to you know, rooftops themselves, uh leakage, you know, all that other stuff.

So I'm I just want to make sure that we're not getting into a situation where you know I'll just throw a district out there, the the second district, you know, who has an okay roof, but then we put solar panels on it, and then three years from now something wasn't done right and the roof is leaking, solar panels are collapsing the roof, and Leopardo's sitting over on Boulevard or in Chicago, and we're stuck with with whatever.

Not that you get not that it would be your fault, but you know, I just want to I'm just trying to foresee the future, which is why we didn't do solar panels on city-owned buildings to begin with.

So I'm just bringing it up, you know.

Keep that in the back of your mind when you're signing contracts or whatever you got to do, but that's um a huge red flag for me.

Um Mr.

Chairman to our CFO, what's the what what is the projected savings?

How much is the projected savings that that will occur?

Yeah, so through the chair to the councilman, again, I kind of threw out the percentages that will vary based on market conditions.

And I'm sorry, yeah, I'm sorry.

Um, Mr.

Chairman, to is to Mo Cap, do we have any idea?

Um, and I don't know if MoCaps in the building or in the room or not, um, how much more needs to be done at these buildings?

Is this enough?

Is will this at least get it to be livable conditions?

Uh through the chair to the councilman, yes, thank you for the question.

Yeah, the goal is to do it comprehensively so that the buildings are brought to fully maintainable condition.

Um there will always be an ongoing need for certain amounts of repairs and replacement, but this gets us to a good level starting point where the conditions will be good.

Okay.

And then my last question, Mr.

Chairman, to our CFO is um when you say that this is a lease purchase, what is it that we're leasing?

And and what what is it that we could be on the hook for if something was to occur financially, what would we lose?

Yeah, so through the chair to the councilman, um really it's an asset based backed loan with a single lender.

Um and the recourse is uh, you know, they have claim on the assets on the improvements.

So not the building themselves.

I want to be clear about that.

It's not like a mortgage, but it would be the actual improvement to the windows and the HVACs.

So um there's no way we are not gonna pay our debt service.

Let me make that clear.

But if we didn't, um they would have claim on those windows and recourse via the assets.

So, Mr.

Chairman of the CFO, technically, if we defaulted, they could come in and take the windows and take the solar panels off the rooftops and take the AC units and stuff like that, correct?

Through the chair to the councilman, that's correct.

Um, there are other benefits to doing it this way as well, as opposed to geoes, which is it doesn't count towards our debt limit and things like that.

So all of this was weighed.

Um again, there is no way debt service comes off the top that we would not pay our our debt.

All right, thank you, Mr.

Chairman.

Wow, yeah, go ahead.

On that point, Councilman Casey, would you allow a point?

Councilman Spencer, please proceed.

Thank you.

In clarifying uh through our chair to the CFO, what is the source to repay the the debt?

What is the source for the debt service?

So through the chair to the councilwoman, it's going to be an annual appropriation.

So this is a little bit different than what we do with our with our normal bonds.

So we will have to kept come to council every year to get the funding for this.

But I'll have to double check on that.

Just a follow-up question.

Just a follow-up question.

Thank you, Councilman Casey, for allowing me to point into the chair.

Through the chair, so this would come out of our general fund budget, the debt repayment.

I want to clarify that through the chair.

And then do we have a sense of scale?

What what are we talking about in terms of an annual debt service requirement?

Yeah, through the chair to the council woman, I can um get you that amortization table.

We literally just got the um responses uh yesterday morning we evaluated them.

Um so I can tell you it's four percent on 21 million over 20 years.

Uh there is a requirement that we have to pay five percent, I believe, in the first two years.

So that'll all be structured.

Um right now it's tentative, but it'll be structured when we actually enter a contract in with the lender.

Um so we have options in how we actually pay the debt service on that.

So I'm I'm kind of getting into the weeds, but um, you know, other than that five percent restriction and you know, it's gonna be over 20 years at 4.01 percent.

Um the actual numbers will we'll get those over to you when they're set in stone.

Council president, there sounds like there's no way to know what the impact will be on the general fund budget.

You're not through the chair, you're not able to get us the amortization table now?

Through through the chair to the councilwoman, I can get you an amortized like a draft amortization table that will be subject to change, but I could I could definitely we could get that to you.

Well, or to us.

Yeah.

This is not a good idea.

And the draft emortization table should still be, and I want to make sure I'm okay to the combo's point, should not exceed the 21 million.

Yeah, so um yeah, the total principal of the loan will not exceed the 21 million.

Okay, but then the interest rates is what the councilwoman is talking about, which is what I asked earlier.

How would the interest rates add up to this?

Yeah, so um to the chair, uh, you know, it's it's like borrowing anything.

Um, you know, you are gonna have to pay interest on this throughout time.

And again, we can get you the specific amortization table.

Um, but you know, it's if if you think about it in terms of issuing a bond, I mean we come to you guys with you know par amounts for what we need to go out and borrow, um, which don't include the actual interest in it because markets vary so much.

Um, but we give you basically the par and the cost of the projects and that sort of thing.

So that's that's how it is here with the 21 million, that's the cost of the project.

And then the interest cost will be, you know, assuming everything goes as planned, and um you know we finalize a deal with the lender will be just over four percent.

And then through the chair, what I'm just trying to I'm no CFO here, so I'm just trying to ask what do we anticipate then would be in terms of an annual budget for our general fund budget.

What number are we looking at as debt service as a ballpark through the chair?

So 4% on 20 million initially would be I guess about 800,000.

I I don't want to throw out numbers here.

I'd I'd much rather get back to you with like strong, you know, more solid numbers.

Mr.

Chair, just preliminarily I know we have a lot of members to get through, and I'm still on Councilman Casey's time, but it sounds like there are still some open unanswered questions here.

So thank you.

And if you want to, we can put you back on the schedule because I know a lot of council members have some other questions and councilwoman, to be honest with you, this is what made us hold up a lot because we had a lot of financial questions and there were some uncertainties.

So hopefully if they um sharpen up their pencil, we'll put you back on and get some more answers.

Okay.

Councilman Casey, you have continued.

All right, thank you.

Uh Councilman Slife, harsh, more.

Okay, thank you.

I promise to stay within my 35 minutes.

Um I want I want to begin uh through the chair to the CFO.

What an accurate description of this be essentially that we're creating a mechanism to guarantee improvements to police districts over the next 20 years.

This is essentially a 20-year program.

So through the chair to the councilman, this whole project is meant to fix the lack of maintenance and immediately with all of the um with all the police stations.

There will be some maintenance in the future that we'll have to perform, obviously, is assets a H and maybe MoCAP can speak a little bit more specifically to that.

Um there will be maintenance costs, because obviously we don't want these police stations to get back to the condition they were in.

Um that's you know, that's separate from what the 21 million fixes the problem right now.

Okay.

So well, I I want to make sure I understand this because the the financing term is 20 years.

The project is not 20 years, but the savings or are there is a 20-year savings that we've calculated as well.

I the reason I'm asking about the 20 years is um I want to simultaneously acknowledge, I think we all agree that our police districts, uh less so the third, are not in the condition they should be, but I also want to acknowledge that a lot of men and women in the division of police have been spending their own time, energy, and money doing a lot of the repairs that the City of Cleveland should have done.

So I think we should acknowledge that these the i it could be a lot worse if it weren't for uh uh our own employees uh making the effort to improve their conditions when they shouldn't have to.

Same thing could be said about fire.

Um I guess Councilman Casey brought up the solar and the solar is what caused me to kind of think through the 20-year number uh because bluntly I don't want the first district to last another 20 years.

Uh I I I would like to pose a broad question about the lifespan of these buildings.

And yes, there are a lot of immediate repairs that we can do uh and should do in the near term, but things like installing solar cause me to pause because there's a break-even point.

And I am sure it would vary from district to district, yet I think we can all agree that in a perfect world, we would have the money available to build at least four new police districts immediately.

Councilman Polensk referred to uh the conditions from an employment uh standpoint.

I think that they all look like a Soviet public works project, and they do not uh reflect the sort of policing that we are seeking to convey out to our community.

I know I had to go to the second district years ago to do a lineup, and I'm just sitting in a noisy room full of detectives, you know, there's there's not a lot of privacy, there's small facilities.

This is just me kind of thinking out loud, and it's maybe a bit of a deviation from the project, but something that I've been kind of mulling over is we have, in my opinion, four police districts that aren't doing the job while we're also having a conversation in this community about the need to close school buildings.

And in a world where, say, a school building in the first district were closing, would the advantageous thing to do actually be for the city of Cleveland to do what we're doing with the police headquarters and retrofit a building in lieu of putting ourselves into a requisite period to essentially maintain buildings into the future when I don't think any I'm quasi confident speaking for this body saying that we would prefer to see new and updated, modernized police districts.

So I that's that's maybe you feel free to respond if you'd like, but that's I know that's just sort of a big idea, but I I worry about us essentially perpetuating four police districts that are already out of date.

I'll move on from there.

Um what if the savings don't cover the debt service through the through the uh chair?

Does that just come out of the general fund?

How does that work within the contract?

Yeah, through the chair to the councilman, that's correct.

Um, if the savings are realized, which we believe they will be, um, that will be used to alpha debt service.

If it's not, then it will be a city expense.

We actually will if they if it if they weren't realized, as Drake mentioned, we would have to provide a shortfall check to make up for that difference.

So whether or not the savings are there or if if they're missed, we would still write a check for the difference to make you whole.

Um we've never had to do that.

Uh we've never missed a guarantee.

We're pretty proud of that because we're uh very conservative and we put our calculations together.

Okay.

The if you break down the annualized projected savings, about 75% of it comes down to procurement.

So there are some utilities things, there's some efficiencies, but really we're talking about procurement processes as I understand it.

So that's that's where I want to focus, I think, most of my time.

I am hearing that there are project labor agreements.

I'm hearing that there's OEO tacked on to the improvements that would be done to the districts, but I am trying to wrap my head around the efficiencies that would be made in the procurement process, how that affects the typical procurement process, how there's the guarantee of no loss of employment uh for city workers, which was referred to, and more importantly, an aspect of this is as I as I read through it and and discussed it with staff, and they really do deserve the credit for helping us through this one.

Processes that essentially um we have as I see it.

Let me back out and then come back into the question.

There's three things that we're trying to balance at any time.

Of course, we want to be efficient in all things procurement.

However, we're also trying to give people the opportunity who haven't had the chance to compete for city contracts a chance to compete, which means we are going to have to sacrifice efficiency at a certain degree in order to be equitable.

At the same time, I value public employment, and there are a lot of people who would say we could privatize most of City Hall and be cost effective, but I think the larger question would be is that beneficial to the residents we serve, many of whom realize their ability to have a middle class income by having public sector employment.

So I the the with there's these three competing priorities.

And as I read through this, when we talk about kind of shortlisting vendors or we talk about looking at opportunities across all of City Hall, not just within the division of police, where we can sort of combine RFPs and RFQs to be more efficient.

My questions immediately go to how is this affecting employment and procurement across the entire city?

How is this affecting our OEO goals across the entire city?

Are we meeting the need on this specific project, but potentially sacrificing some of those goals that we have elsewhere?

To whoever wants that.

Heather, do you want to take that?

Sure.

So first of all, I'd like to say that not uh we're not looking at privatizing any of the goods or services that you're currently receiving.

Our goal is to work collaboratively with your purchasing department and each of your departments who are impacted by uh the specific contracts that we're going to review to develop more strategic and competitive pricing mechanisms for you.

So utilizing technology to have a better data-driven overview of where we can target um contracts to provide you with more competitive pricing.

Most of those targets tend to be much larger contracts, not ones that would impact you know your local vendors or um your goals for those those targets.

So we're really looking at this at a more strategic level.

Um, and following your your current guidelines and approval processes were there as a resource to provide those data-driven results in order to make recommendations for more strategic competitive pricing.

Okay.

Uh thank you.

Through the chair chair, could you give me an example?

And I'm sorry, your I missed your name at the beginning.

Could you remind me your name?

Heather Gurray.

Heather, thank you.

Gray?

Great.

Yes.

Okay, thank you.

Uh could you give me an example of a better pricing mechanism and to what degree have you already looked at our processes and identified opportunities for savings?

And could you give an example if you have?

Sure.

We were uh given the opportunity to work with the purchasing department in IT and finance in order to pull some raw invoice data.

So currently, because of municipal software systems, you have certain requirements for reporting um for inputting this data in a way that goes through your re approval process.

What it doesn't do very well is provide that information to you on a higher level across the board's spending so you can really take advantage of your your size to leverage your buying power.

So we were given the opportunity to review some invoice and PO data.

Um we've targeted several uh areas in of spend.

Uh one, for instance, would be telecom.

So we based on our market knowledge and our technology, putting these invoices through our database and understanding where we believe we can achieve results, we see a significant opportunity uh to drive cost savings in that particular contract.

Um though that is an example of a contract that would not impact your local vendors, um, but there is an opportunity to get more competitive pricing on your existing contracts that would impact uh this project significantly.

Okay.

Um thank you.

My final question is it would the administration proactively reached out to bargaining units regarding this legislation?

It was it was said that there's no I believe it was said earlier there's no anticipated issues, but has is that our speculation or have they said that uh definitively through the chair to the councilman?

Do you mean in terms of city employee bargaining units?

Correct.

Right.

Um uh representing employees who are involved in in really specifically the procurement process.

Is our are bargaining units satisfied that there are no adverse effects on employment into the future?

I mean, really the question is have we asked them?

Um The Councilman through the chair.

Um we worked very closely with finance and with uh Division of Purchases and Supplies and the Commissioners.

And I don't know that the question of adverse impact came up.

Okay.

That's the answer.

Okay, thank you.

Um again, my my my biggest concern of all of this.

Well, not the a very large concern of this is really the I I appreciate the need to make improvements, but I'm also wondering, and it seems that the administration doesn't have any information about just the generalized lifespan of these facilities, and at what point do we need to uh stop repairing them and start rebuilding them?

And again, I offer up the potential of school closures as maybe an opportunity for us to make use of large buildings with large parking lots.

Through the chair to the councilman, thank you for that question.

Uh I would like to take the opportunity to assure all involved that the buildings that were going to be making these uh repairs and investments in are basically sound.

The bones are good.

Um if we felt that they were not worthy from a structural integrity or even an envelope integrity perspective, we would be probably having a very different conversation about what replacement means.

Um the style in which they were constructed, particularly the first uh fourth and fifth, um certainly uh have not do not reflect what the vision of how a police station should look might be in contemporary terms.

But they are sound, they are solid, and they are worthy of investment.

We're essentially going to be repairing and replacing all of the systems that in fact do wear out, such as the mechanical systems.

And I think at root um because they are so solid, uh the efficiency component from a construction perspective is is really the the primary focus.

So the systems will be efficient, they will have the solar, um the new roofs, et cetera.

So um I understand where you are coming from, certainly.

Um yet to be able to say for certainly we'd be able to get 20 more years of service out of these buildings is um something that this project will allow us to do while we consider um what might be next for some of these.

Thank you, Councilman Green Line of questioning.

And I hope that the policy staff is keeping track of some of the open-ended questions that Councilman Snife and Councilman Councilwoman Spencer have asked, uh, because I do want to challenge the administration to update that information as much as possible before we have a vote tonight, because um that's part of the reason that we slow walk this is because of some of the uncertainties around lifespans of the buildings, amateurization of the project, how much is it going to cost with interest?

Some of those things are important for us to know, um, which we're close, we're getting there, but I do need us to finalize.

Director Barrett, before I go to Councilman Harsh.

Yeah, uh through the council president to the committee on that point.

So I did have my team run back and look at what average debt service would be on over 20 years on the 4.01 percent, it's about 1.5 million.

1.5 million the average annual debt service.

So again, those are um you know, those are estimates and the actual amortization table will look different, but the average debt service would be 1.5.

So that includes both principal and interest.

So then that's about another 1.4 on top of the one 21 million, right?

So I'm not sure I understand the question.

So when you said that the at give me, give me could you break down those numbers one more time for us?

Sure.

So um to the council president, the average annual debt service, the average would be about 1.5 million dollars a year.

1.

1.5 and over 20 years, and that includes both principal and interest.

Okay.

And you're saying that that adds up to about 1.4 million.

Yeah, yeah.

Through the chair to the committee, uh it would add up to about 31, hypothetically, on the 21 million dollars.

So then it's a total cost, not 21, is about 31 million when you add interest and principal and everything else.

To the chair, that's correct.

Okay, thank you.

That's what we wanted to make sure we get clarification on.

All right, I got Councilman Christopher Harsh, Councilwoman Rebecca Moore, and then Councilman Bishop would like to be added back on the schedule.

And Councilman Spence.

All right.

Thank you, Mr.

Chair.

Um, you know, I apologize, I'm not on finance, so I missed some of the conversation about this or whatever was had before we got here today.

Um so some of my questions are basically just trying to understand the the proposal holistically.

Um through the chair, uh I think to our our CFO, normally when we wanted to fix a build, and I'm sorry, before I want to echo Councilman Slice's point, I don't think we want to put lipstick on a pig.

We're not trying to just dress up a building that is collapsing.

I've been to second district.

It is not nice.

Uh it is not uh a place that anybody would want to wake up and go to work in in the morning.

Um it is not a place that anybody wants to hang out during the day.

Um it's a it's an old facility and it's in bad shape.

And I don't also want to see us just pour money into a building that's getting knocked down in a few years because it I don't know, lipstick on a pig, right?

I that's uh the only thing I can think of.

I I don't think that's a good place for us to arrive.

But I'm trying to understand if we wanted to fix up a building normally, we would go to a general contract or we would say this is the work that needs to be done.

A contractor would bid on it and we would go to the bond market, sell get some bond revenue and pay that contractor.

Can through the chair to the CFO, can you walk me through how this is different?

Um, through the chair to the councilman, I can talk a little bit about the financing and the improvements.

But in terms of the process to go out and find the contractor, I believe Mocap would be more suitable to explain that.

Okay, could through the chair to MoCAP.

Uh through the chair to the councilman, thank you for the question.

Um the benefits of this process are that uh like any design build process, and I I hope everyone is familiar with how different design build is than the process you're describing, uh, Councilman, which is what we would call the design bid build process, where we go out, we hire a consulting team, they identify all the needs and come with the project scope, do the drawings, and we bid it out competitively and then do that funded by this is different in that the advantage of design build, particularly where a lot of the improvements don't involve an enormous amount of you know design changes or um substantial reconfiguring or additions or anything like that.

Where we have a scope that is mostly addressing deferred maintenance and systems replacement, what design build allows us to do is to basically identify an uh a budgeted scope of improvements that are required and then hire a team for a not to exceed amount, which is the 21 million to perform all of that work in a much more compressed time frame.

I think this is um in addition to the financing being um separate from using geo bonds, because it's a pretty good chunk of money, but that's what these facilities need.

Um the other advantage is time.

Um we can do that and we can achieve these improvements to get these buildings into a good maintainable livable condition in a year.

In a nutshell, the idea is to pay up front rather than pay on the back end?

Is it through the chair?

Is that about right?

No.

Okay.

So then here's my question.

So through the chair to the Leopold.

Uh how do you guys make your money?

If we're saving all this money, if if if your work is saving us millions of dollars, where where where do you where does your revenue come from?

So we're we're paid to manage the project and that project management expenses built into our proposal and is covered by the entire $21 million proje uh project.

And through the chair, what percentage of the $21 million is your company's profit?

Five percent.

Five percent.

So what is that?

What's five percent of twenty-one million?

I don't know.

Who's who's got the calculator in their head?

Five percent of twenty-one million?

1.05 million.

So so Leopold is only making one million dollars off this entire project through the chair, is that correct?

Correct.

Okay.

Uh and through the chair, could Leopold.

Could you uh tell me about some of your other clients uh who currently are you working with um in a similar capacity?

Sure.

So here locally, we've uh executed uh performance contra energy savings performance contracts like would be here locally here.

We've done it with uh City of South Euclid, City North Olmstead, City of Cleveland Heights, uh just here locally.

But we do this across uh the Midwest.

Okay.

And through the Chair, how long have you had a relationship with those municipalities?

Um we executed uh our project with the City of South Euclid in 2020, with uh North Holmstead in 2023, and with uh Cleveland Heights in 2024.

Okay.

And through the chair, you said throughout the Midwest.

And through the chair, you said throughout the Midwest, do you have any clients roughly the size of Cleveland or bigger?

Um we don't have any we have clients we work with the city of Chicago.

Um, but on a on a design build capacity, but not in energy savings performance contracting space.

So we've worked with cities as large as you, uh not on the performance contracting side.

Okay.

Uh you know, Mr.

Chair, it seems to me that uh updating mechanicals in these buildings would result in energy savings no matter what.

I mean, we can go to almost any old house and put in new windows and you're gonna get some energy savings, right?

You can update HVAC and you're getting some energy savings.

I don't quite understand how the savings from this project are different from the savings from any other update facility project.

I mean, we are taking a building that is shockingly old, but maybe not shockingly, but it's really old.

And we're gonna uh modernize it.

That's going to be savings no matter who does the work.

I I guess I'm trying to have a hard time, Mr.

Chair, wrapping my head around how this specific upfront payment results in savings down the road when any update to the building is going to result in some kind of energy efficiency improvements.

I mean, it's probably impossible to get less energy efficient than they already are.

So through the chair to the Leopold, how how is it that your work is different from any other general contractor's work in terms of efficiency savings, efficient realizing efficiencies?

I mean one of the things that we're doing here is again we're evaluating more than just energy and operational savings.

As uh Councilman Slife said, 75% of our savings are coming from uh procurement solutions, which is our proprietary technology that we've invested significantly in to help local government significantly reduce costs on the uh goods and services and procurement, which is something that if you just hired any general contractor to come in and do these facility improvements, you would not be able to have someone that can stand behind and guarantee that the debt service will be covered by uh that contractor.

So I guess this is just above my head.

I do not understand this.

I'll I'll just be very, very clear.

This does not make sense to me.

I don't get it.

Um maybe I'm just not there.

Maybe I'm just not, you know, maybe I'm missing uh a piece of the math.

Uh but it also seems I understand the point of paying for something up front to avoid paying for it on the back end in excess.

What I don't understand is how we know that this is more cost effective.

Well, I mean, if there's so many different studies and we can provide you with data on the cost of delay of waiting till these these buildings are in, as you mentioned, in bad shape, right?

And any time you wait for equipment to fail to replace it, you're gonna spend more money in maintaining and operating that as well as emergency repairs, the cost of inflation uh over the last five years and the construction industry alone has been 38 percent.

So the longer you wait, the more the expenses are gonna be to not only maintain and manage those aging assets, but also in the cost of acquisition.

Yeah, no, I mean we're doing a project in the neighborhood and we're talking about bitting the whole thing out up front to try to secure prices.

And I and I understand that some of the have leveraging or against inflation uh leveraging, but um, uh Ms.

President, I won't I won't ramble on any longer.

Uh it doesn't this it's confusing to me.

I don't quite understand how this is beneficial.

Um it seems like if you if you need something done, you hire somebody to do the job you need done.

It seems like that's the simplest way.

And I don't understand how involving a third-party company that's still gonna contract with gener with with construction and contractors, adding a layer to the process saves money.

It it seems like it's an extra mouth to feed in the process of trying to fix up a police station.

If I may try to to respond to that, I think um to back up a step.

So this is based on state legislation that allows for this particular type of financing for this type of construction project.

So the state has recognized like many states, there there is legislation like this throughout the country.

They've recognized that most municipalities don't have the funds available to make all the improvements within their buildings that they need to do.

So they've given you this tool to say if you work with a third party like us who will guarantee the results, you can finance the improvements through the savings themselves.

On that point, if we could.

And please make sure that all uh comments go through the but on that point.

Um for comparison's sake, is this very similar to the PACE program?

That's exactly where my mind was going.

And you guys know about the PACE program.

We have economic tool, where if you provide savings on a lot of these mechanicals through environmentals, and I'm saying it in layman's terms, then there's an economic benefit, which in some cases it helps some of these development deals pencil out two million, three million dollars in savings.

Yeah.

And I'm almost shocked that you guys don't know pace, but we've had about four pace deals that have come through here.

I know Director McNair is very familiar with them, but it seems like this is nice.

But for but for big corporate projects.

Mr.

President, that's exactly where my mind was resting was it with pace, and then the and the reason that it was sitting in the back of my head too is that pace was working very successfully on commercial projects with large I I think a mall used it.

There's big and commercial applications for PACE, it made a lot of sense.

There was a proposal to bring pace into the residential market and make it available for individual homeowners.

And the more uh people in the housing industry looked at it, we're like, oh my God, this is impending disaster.

People are going to walk into these all kinds of deals that are gonna they're gonna be beholden to because it went on their taxes, not this case.

But um and and this does seem like a a hybrid municipal form of that.

Um I guess through the chair, uh I want to follow up on the question though about the state gave us this tool.

When did the state give us this tool?

So the initial legislation was passed in the early 90s, um, and then it was amended in 2008.

It was initially was for counties and cities, and in 2008 they branched it out, one specifically for counties, one specifically for cities.

Okay, so if if this was done in the early 90s and then updated uh 17 years ago through this uh chair, why isn't this more common?

Why isn't this a more common practice?

Why why are we sitting here in 2015 having this conversation about a tool that's been available?

I'm sorry, 2025.

Uh having this conversation about a tool that's been available for uh 35 years.

And why haven't other cities been doing this?

Other cities have been doing it.

It's been one of the most popular procurement tools for building renovations in the public sector space in K-12, local government, higher ed.

Uh it's been leveraged successfully all across the country and specifically in this state.

It's a very popular procurement tool.

So through the chairs, it's to our friends here in the city, Columbus and Cincinnati have been doing this.

Yes, both city and both I can tell you we didn't do those projects, but I can tell you both the City of Cincinnati and City of Columbus have utilized this uh performance contracting tool for building renovations.

Well, Mr.

President, I uh I I will confess to still being a little bit confused by the whole thing, but um it's it it it it seems like a tool that would have been pulled out of the toolbox a little a while ago if if it's as successful as everybody's claiming it is, but um I I'll I'll I'll yield my time.

Thank you.

Um I would urge you to spend a little bit of time talking with Mr.

Titran and Mrs.

Saban who have done a deep dive.

But in all fairness to you and Councilwoman Spencer, the challenge that we've had with this from day one is that there are some open-ended questions that we wanted to close the gap on.

We closed the gap on most of those, but as councilwoman Spencer and others alluded to today, there are a couple of things that we need to really tighten up on that make sure that we have a better understanding on.

And and hopefully we can give the policy team the questions so that as we deliberate and think about voting this forward tonight or out of finance that we have some of the information we're looking for.

Um Councilwoman Marr.

And then I'm gonna go to Spencer and then let Bishop end if I could.

Thank you, everybody.

Um I appreciate the line of questioning from my colleagues and hope to get into a couple of areas uh to answer both my own questions about this arrangement and maybe clarify some of the structure.

Um I'll just set it at the base at the top, uh like my intentions and goals are that we of course all want our police stations to be uh in better shape.

Uh it's very clear whenever you go through them, they need upgrades.

That is very, very clear.

Uh and I I appreciate this team's well-intentioned efforts to get us to uh a place where we can finance needed upgrades.

Uh I also hearkened back though to my first year after law school, which I spent uh at a high rise in Midtown Manhattan, uh re-underwriting loans that had been issued here in Cleveland by countrywide, which then had been acquired by Bank of America, which then had faced its own financial hardship, and we were representing the reinsurance company that was responsible and left holding the bag when these asset backed securities went under.

And it's very, very hard to see at the front end where some of these asset backed financing deals can go wrong, and you never really know.

We've already seen it happen once, and so I want to make sure I understand some of the structure of this uh as as we head forwards towards signing a deal that could lead to potential upgrades, but has you know is gonna be extending out for 20 plus years.

Um so I have two areas that I want to uh make sure to understand.

The first is the structure of the deal, uh, and the second is just understanding a bit about the modern procurement uh that Leopardo engages in and how that differs from more traditional procurement here at the city.

Um so first, you've mentioned the idea of a lease purchase agreement as the underlying structure.

Um could you explain a little bit about who is leasing and who is potentially purchasing through the chair?

Yeah, so um through the chair to the councilwoman.

So the general idea as mentioned earlier is that there's an asset backing this.

It's called a lease purchase agreement.

There's also other names for it.

Um but essentially it's the assets that are backing, it's it's kind of like if you had a mortgage, but instead of the buildings, it's the actual assets that are backing the loans.

Thank you so much.

So it's a collateral backed.

It's collaterally backed, but the assets that are underlying this lease purchase are for instance the solar panels themselves, the vinyl windows.

Is that accurate through the chair?

So through the chair to the councilwoman, yes, it's the HVACs, the windows, the actual improvements that are being put into the police uh buildings.

Okay, so we are not putting up the the land in any way as part of this uh lease purchase, but rather the physical assets within the buildings themselves.

Through the chair to the councilwoman, yes.

It's not the buildings themselves or the land, it's the actual improvement.

Thank you.

So let's just put our mind forward uh for everything has gone wrong that possibly can, uh, and the bank is coming to collect the thing it is physically ripping out of our city is the HVAC system and the solar panels in our police stations.

That's if everything goes wrong.

That is the structure of the deal through the chair.

So through the chair to the councilwoman, there's worst case scenarios for everything.

Um the chance of that happening is so slammed.

Yes, but that is that is the ultimate and worst case.

That is the bar exam version of this.

What is the underlying deal, what is backing it, and what would be removed is the HVAC and the solar panels.

Through the chair to the councilwoman in an extreme case where we couldn't come up with 1.5 million, which would essentially mean the economy was falling apart.

Um yes, that would be the recourse.

Okay, all right.

Watch out.

Don't don't talk about that type of economy stuff as we're going through this.

Um that is what we are assigning away.

Um is the is essentially putting a lien on those physical investments, okay, into the property.

And then the way that we are financing this and paying for it is saying we believe that over 20 years the city will realize 48 million-ish dollars in savings, and that allows us to frontload a level of investment around 20 million based on what we believe are these savings over time through the chair.

Is that accurate?

So through the chair to the councilwoman, if I'm understanding your question correct.

Um I mean, we have the room for the 20 million.

You gotta talk.

I'm so sorry, you have to speak up.

It's very hard to hear now.

So the um the 20 million we have the capacity.

The reason we want to use this instrument is because the the 21 million will not count towards our debt limit.

Um it's quicker to get an agreement in place.

Um there's there's many reasons to do this over GO bonds.

Um so that's why we are using this instrument.

Thank you.

I okay, you're saying that you could have accomplished this with geo bonds at uh at a slightly longer timeline um and with uh a separate type of asset backing.

It wouldn't have been asset backed in the same way through the chair.

So through the chair to the councilwoman, we did uh meet with the council president and other council members on the different financing options for this.

Yeah, and we did mention that if the bids in the RFP did not come in strong, we would look at GOs.

But we wanted to go with the cheapest, most efficient option.

And this lease purchase agreement uh in finance's opinion is the cheapest and most efficient option.

Okay, thank you.

Um so now we have the basics of the lease purchase in place.

We know that we think it'll be worth this much over time.

That allows us to get some money up front to do the investments, get these assets into the building.

Um what I want to understand is how that you've said the debts annual debt service is estimated to be how much on on the deal that we put together through the chair.

So through the chair to the councilwoman, average debt service would be about 1.5 million, including interest and principal over 20 years.

Thank you.

And Leopardo has an incre interesting model where they guarantee a certain amount of savings for us to pay that debt service.

And I just want to make sure I really have this clarified.

So Leopardo is guaranteeing how much per year of those savings through the chair.

So yes, through through this this mechanism through the legislation, we're required to to guarantee the savings.

And so over the life of the project, it is 48 million dollar savings guarantee.

So it'll guarantee the c to cover the cost of the debt service payment.

But you do not guarantee that on an annual basis, to be clear.

Do you guarantee it on an annual basis through the chair for to cover our 1.5 million dollars in debt service?

Do you guarantee an annual amount of savings that if you do not reach, you will cut a check through the chair?

We we do have an uh average annual guarantee associated with it, but it is a collective 48 million dollar total savings over the life of the project.

And what is that average annual commitment through the chair?

It's a little over two million dollars.

It's a little over two million dollars.

Thank you.

And so, in uh the this is why, like if it all works well, right?

Like this oh it's a good deal, right?

Because you are guaranteeing enough money to cover the debt service to get these assets into place.

And that that is an incredible opportunity, right?

I just want to think through a couple of worst-case scenarios uh and and just make sure I understand a couple of things.

So the first is I I'm just thinking back to my days in the high rise and uh like thinking about a prospectus and and and rights and responsibilities.

Who measures the savings and how are the savings measured through the chair?

Drake, would you like to answer that?

Yes.

So we we are measuring those savings.

We come in and verify those savings in conjunction with the city.

So, for example, we're coming back and we're polling utility bills and measuring those savings.

We're looking at expenses at budget line items to verify that those deltas have occurred in your budget and we and after a year's worth of performance when I call it performance period, that's a year after construction.

We come back and we show you and how we prove the savings in a full workbook, and we do that year over year.

Okay.

And uh is there a dispute uh mechanism if the city disagrees about the level of savings through the chair?

If the city doesn't believe that we've rendered as many as much in savings as Leopardo believes we have through the chair, is there a way to dispute that so the contract does include the all of the measurement and verification protocols that are uh accepted in this industry?

Um so that will all be vetted by the law department through the final contract um as well as how disputes would be handled.

Thank you.

And has that been shared as part of the legislation we are seeking today?

It it would seem to me that if we don't have a shared understanding about how we measure the savings, then we could be setting ourselves up to cover debt service that Leopardo believes has been easily covered based on savings, but that the city believes has not been covered based on savings through the chair.

So the energy conservation report, which is required by statute, was provided to the council.

It shows all of the measurement and uh evaluation of the savings and scope items that will be included in the project.

The final version of that will be included in the contract.

There are still some scope items that were being uh tweaked post uh that submission.

Um but the the bulk of that is included within the energy conservation report.

Great, thank you.

I um hope through research if I could receive a copy of that and uh councilman Casey, I would love to think about this a little bit in terms of utilities, uh, what were uh how we are measuring this delta and particularly our solar question with regards to CPP.

Um I want to also hone in on a question that uh you mentioned uh and I apologize, I'm I'm uh I I missed your name, sir from yeah, from Leopardo.

Rob Rob.

Um you said uh in all the deals that Leopardo Energy has done, you have never been put in the position of having to cut one of those delta checks.

You've never believed that one of your cities has not uh rendered and received the savings that you anticipated.

Is that what you said?

Yeah, we're on average we're delivering.

Can you guys hear me?

On average, we're delivering 120% of our forecasted savings projections.

That's been our average collectively, and we've never missed a guarantee.

Okay, thank you.

Please run every paint through the chair, please.

Sorry, thank thank you.

Um I uh I'm I'm gonna ask this question as I think any good steward of the city dollar should, uh, which is have the have any of your cities ever asked for a delta check?

Have they ever said you have not rendered, we have not received the savings that you believe we have, and we believe that we are entitled to a check to cover this guaranteed difference, and you have denied that through the chair.

Drake, can you answer that, please?

No, that that is that has never happened.

Okay.

Thank you very much.

I I'm appreciative of that answer.

I want to move towards um, I think I have a rough understanding of your uh deal structure.

Um I do want to move briefly to the question of modern procurement, uh, as with my remaining time.

Um you mentioned both on your website and in the materials associated with this about one of the value ads that you bring to this work is in a mod modernizing procurement.

And I'm wondering if you could share a little bit about what that looks like and the difference between the procurement you're able to offer versus the city through the chair.

Yes, so as as we mentioned earlier, so the procurement technology that we we would be implementing allows us to uh work with your purchasing departments to better understand um the overall purchasing across the city, to put that within our technology and identify targets for more strategic um and competitive pricing.

We are not taking over the division of purchasing.

Um we are not outsourcing any of these um services that are currently in being performed by internal staff.

We are simply working within your confines and your rules and regulations through your approval process to provide some additional private sector strategic purchasing uh solutions in order to accomplish greater savings.

Thank you.

And through the chair, is it accurate to say that this deal the financing would not work if you did not have the ability to take over the procurement through the chair, that this is an important part of the uh financing structure to make the deal successful through the chair?

The purchasing and procurement solution is a very important part of the savings stream that are allows for this project to be funded fully.

Okay, thank you.

And you have fully committed to meeting all OEO expectations that would traditionally be put onto a contractor with the city through the chair.

Through the chair, yes.

Okay.

Um and I I want to understand, and maybe this is a better question for the administrative side, but if you are committing to meeting the OEO requirements, which I'm very, of course, we're glad you are, um, and you uh the the but the procurement delta is a critical part of successfully financing this.

It would seem that what we're basically saying is that our procurement department is not good at doing what we're supposed to be doing, and we need to and that a modern approach to procurement would aid us across the board in uh improving our workflow.

Um, and I I would like to understand whether that is essentially a privatized service that you intend to offer to the city uh for other types of deals.

Um so is you know, it's sort of something sort of proprietary about how you do your procurement uh that's different from how the city does its procurement through the chair.

Through the chair, if I if I may, I don't want to mischaracterize and say that the procurement or purchasing department is doing anything incorrectly.

They they are as many municipal departments of purchasing are somewhat handcuffed by the rules and regulations that are put in place for for public purchasing.

Um, and we are not going to change those those rules or regulations that have to be followed.

However, the current software systems, the ERP systems that are in place for municipalities to do their job legally, often do not look at it from a very strategic standpoint.

And so our technology is taking the raw data that is in these systems, putting it through our analysis to allow for us to help them target these contracts that they can get better pricing, more competitive pricing within the confines of what is required of them.

They've been very helpful throughout this entire process, and we anticipate that this will be a very collaborative effort going forward.

Thank you.

And is the software that you use to fulfill your procurement obligations, is that available for a city to utilize directly through the chair?

Through the chair, we will be utilizing essentially a user platform.

So we will be doing a lot of the support and heavy lifting as far as the strategic implementation goes.

However, there will be an ability for the purchasing division and other divisions to access the platform from a user standpoint to be able to pull data and provide um you know data-driven results to not only the departments but the council as a whole.

Okay.

Yeah, I I think I I'll end there just being conscious of my time and thinking a little bit about um it seems that you are providing a value add around like there's a critical value add around procurement, um, and that it's critical for your financing.

It won't work unless you have the ability to do this type of procurement.

It is not the traditional city system, yet you've committed to all of our OEO requirements.

I think there's something for the council and the administration to understand around what is the technology that allows you to do procurement to better to the point that it's a critical part of the deal, but that the city doesn't have access to it right now for our direct work.

Um so I I think there's something just for us as a learning tool to understand, though I do understand that it's a critical part of how you're structuring this deal.

Uh with that, I'll yield the rest of my time, Chairman.

Thank you.

Great questions, Councilwoman.

Great questions.

Councilwoman Jenny Spencer has the floor, and then we'll um move to deliberate.

Thank you.

Thank you, Council President.

Uh, there's a lot of layers to this, and it would have been my preference that this was not committee of the whole, and that this could have been vetted in committee.

Um, and I would also just feedback for the administration.

It would have been great for this to have been socialized better with members.

I've been outreached to by the administration for much less complicated pieces than this.

So there's that.

But um I you know want to follow on councilwoman Moore's questions about procurement.

You know, um, so is there a scenario in which the city doesn't agree with the solution that that Leopardo is saying, here's our proposed solution, here's here's the cost savings, and the city says we don't agree.

What happens if there's a disagreement at that point in the process, if that question makes sense through the chair.

Because that's where the cost savings is supposed to come from through the chair.

Primary.

So the the total procurement savings amount, um, there are is actually a greater opportunity for procurement savings than just what is being guaranteed in this.

Well, we will target and work with the staff to devise a target list and then work with them on a strategy to implement for each specific spend category, whether that be a good or service.

So in the event that we move forward down this path with this strategy and provide uh recommend a recommendation that provides savings um and results that are pre-qualified uh vendors through your your standards and for whatever reason the city says we just simply don't want to move forward on that path, then we would have to make an adjust line to the baseline savings.

So we work very closely through this process to ensure that we're all on the same page and targeting the same uh spend categories in order to achieve those savings.

So through the chair to make sure I understand the response, there's a chance that if there was a disagreement that the anticipated savings could be lower.

Bottom line.

Through the chair, yes, there is a the potential for that, just as if um you know, in the contract there's settings or in the energy conservation report, there's settings for what the thermostat, for instance, is has to be set at.

It's if you fire out if we put in a new system but you um crank up the the heat to 95 every winter, then that's certainly going to uh move outside of the baseline standards.

So all of those aspects are incorporated within the energy conservation report.

So I mean, as my colleagues have referenced, this is this is most of this is brand new information, and there's there's a lot to digest here.

But I will keep I will proceed.

So um I wanted to go back to uh how Leopardo is is compensated.

So uh if I understood correctly earlier it was stated that Leopardo's compensation is included in the 21 million.

Um so through the chair well, one other point.

So Leopardo though is working with the city over the 20-year amortization time frame to evaluate those savings.

So Leopardo gets paid what when through the chair.

How do you guys get paid for real?

And when we mentioned earlier, for the project itself, the $20 million project, we are managing the project, and we have a project management fee that's built into that $21 million.

So there's nothing that would go beyond the $21 million on our project management fee.

Um and then the measurement and verification has uh three years uh built into the $21 million, and then uh year four and beyond, there would be an annual cost to continue doing that.

Okay, so let me make sure I understand that.

So through the so the cost structure is not there's there's layers to that too, or the payment structure, compensation structure.

So there's a project management fee, and then there's three years of evaluation, but then years four onwards of evaluation would be at an additional cost to the city through the chair.

Correct.

Through the chair, correct.

Sorry, I keep forgetting through that.

Council President, I this is this this is a complex deal.

I'd be the first to tell you is complex council.

That's why we slowed it down.

Right.

Because I'll be honest with you.

Um is complicated.

And let me state this there is a time factor into this.

And that's another thing that I know that everybody hates to hear that is time factors and oh, let's take our time and understand this so that we could pass the test on this.

But a lot of these things, if we you know, we already delayed it for about two months in order for council members to talk and and meet with staff.

If we keep delaying it, then there's going to be costs that we are going to have to pencil to sharpen up the pencil and do all over again.

Um I I know it's not the easiest piece, but I just want to make sure that everybody knew there's a lot of moving pieces to this.

This is not easy.

So I I I understand your consternation, but um, this is one of the ones that I really tried to tell everybody really get to know and understand it uh because it is complicated.

Um continue your line of questioning and then we'll move from there.

And you know, it's my respect for you, Council President, and our leadership who evaluated this, this keeping me hanging in here, but it's tough.

Okay, so my question then is how much is are the buildings actually getting?

So if we're talking about 21 million dollar investment, of which Leopardo gets a project management compensation and then a monitoring compensation, how much are we actually investing in our four or five police districts?

I mean, what's the capital investment?

Go ahead, Eric.

I mean, go.

Right, through the chair.

Uh so the biggest needs are the first fourth and fifth districts.

They're getting approximately 5.6 million each.

Uh the second police district, which just recently had uh HVC HVAC system replacement.

Uh so not as much but 2.6 million, and then the third district, which is obviously newer, um is is getting the solar ray, uh, which is uh approximately five half a million dollars.

If we if you can read that, and please be able to do that.

I'm sorry.

So the first fourth and fifth district are in the most need, both interiors and HVAC.

And they're getting approximately 5.6 million each uh the second police district is getting approximately 2.6 million each, and the third district, which is rather new, is getting a solar system, solar array, um, which is about approximately half a million dollars.

And through the chair, uh Mr.

Dulik said previously that this catches up us up on deferred maintenance.

Is that an accurate statement through the chair?

Uh through the chair to the councilwoman.

Yes.

Okay.

Um I think let's see here.

My other colleagues have asked really good questions.

So I think Mike, I think the the the what we're trying to go for here is expeditious relief to our police districts to have in a 12-month period to have these improvements done.

So that's that would be the big win.

However, I think there is there are a lot of details to the elements of potential risk to the city, um, including, you know, this is a 20-year essentially uh arrangement that future councils would have to grapple with.

I'm especially uncomfortable with the fact that um years four onwards of compensation to Leopardo would be unknown.

I have no idea if we can even estimate at this point.

Basically, what we're committing a future council to to doing.

So I'm not um again, I can't I can't say I'm fully comfortable with this piece, but I think uh our leadership has heard that loud and clear.

So I don't know if there are any concluding comments or feedback on that, but I will yield that with that, Mr.

Chair.

So let's do this if we could, because here's what I would like to do.

I would like to move this from committee, but clearly it looks like there's a couple of council members that have some outstanding commitments and concerns.

Director, it would also be very helpful, Director Burton Paul Barrett.

It would also be helpful if there was kind of um, I don't want to use fancy words like SWOT analysis, but if there's an opportunity that the administration has done some kind of strengths, weaknesses, opportunities and threat analysis on this to make sure that we actually understand where the actual risk, potential risk that uh councilwoman Spencer and others outline, and also where there are strong potential benefits.

I think that would go a long way to making sure that we could count towards moving this forward.

Um but as you can see, that's why we slowed it up last month because there's going to be some outstanding questions about this.

So who can be a point person available for councilwoman Spencer or any other council person they have further conversation with around these issues?

And then councilwoman Murray does have another question for the floor.

But who can be available for a follow-up and who can provide sort of where there may be any risk or potential gains from this process?

Who could be an appointment person to help quarterback that for us?

It should be somebody from Le Pardo and somebody from the city.

Who can that be?

Yeah, I mean uh to the president, I'd be more than happy to field any questions you you all have.

I've been involved with this since you know close to the beginning.

Um and then we have the Leopardo team here today, so we're we're available to answer any questions that there may be.

So let's do this if we could.

I like that picture.

I see that picture.

Uh so let's do this if we could.

Leopardo team, and I'm gonna put the onus on uh the lobbyists to kind of keep the trains on the track.

Leopardo team and director Baird, if any council members would like to have a sidebar, please make yourself available to go in one of the council conference rooms and talk this further.

We um also can somebody tell us, and I know you guys articulated it to me, but can anybody uh re-articulate to council before I move to councilman Maher why this time is of the essence?

And I believe uh my friend here, I forget your name, I didn't lost track of everybody uh but he uh articulated to me a couple of weeks ago why this can potentially make costs go up and other things, but I mean, did you have any comments that you wanted to make around that as well?

Yeah, through the chair.

Uh just in terms of from the construction perspective, you've got two buildings that you've got boilers that are down to their last boiler.

So they have no redundancy, they're past their useful life.

We want to get into construction immediately to prevent the risk of those going out and not having heat in those facilities, as well as some of the other uh you know, the tuck pointing and the roofs, a lot of the outdoor want to take advantage of the weather while it's it's good this this uh next four months before it gets challenging to do that type of work and has to be postponed till the spring to really protect the assets.

And one thing I've been blessed with is a good memory because I also recall you guys telling us that in the first district that there's a wall that may be potentially collapsing on that can potentially cause harm to somebody anyway now.

And that also if you guys wait for another four to six weeks, then it will be another four to six weeks to get into contract to actually start the work, which can actually potentially push you all the way back to December or January.

And still we'll be debating all of this.

And so I just I and uh you know we got to do a better job as an administration as well as a city of trying to get ahead of these problems.

I think my colleague Councilman Conwell has a great proclamation about how do we start looking at um um deferred maintenance in a earlier issue so that we don't get caught in a situation to say if we don't move by today to the Councilman Casey question, then if we don't vote for this, then what?

Then that means is it gonna be somebody's life in jeopardy?

Is this council going to be responsible for that?

So we got a lot to wave when you bring this to us, especially in a rush manner.

So just keep that in mind, but I do want to caution this council that we did slow it down tremendously.

Uh the staff did do a tremendous amount of work on this.

You can talk with our staff and you can also talk with uh Mr.

Baird, Director Baird and Leopardo and uh Mr.

What's your name again?

Dulah.

Doula.

Um, because this is a complicated piece, I won't sugarcoat it.

Um I just had to measure between time and getting these buildings up and running, okay?

Uh yes, and then uh you got on that point, Councilman Starr, and then I'll move to Councilwoman Moore.

No, um just Mr.

President, I definitely wanted to just lean and yield to our chair of public safety, Mike Polizic.

Can he give some remarks on this piece uh regarding his support or where he feels the need because as you talk about times of the essence and you talk about buildings that are outdated that have not seen any investment and with us having the opportunity to get those investments to those locations for our police force, uh what his stance been?

Because I know I've met with the team um offline during the summer as well.

Um and I have been able to figure out what makes best sense for us to utilize these dollars.

No, this is not something that comes around all the time.

And also, let's put on record Cleveland is always last on figuring out how to do things when it comes to um developing, modernizing our city, rather is getting things upgraded.

So let's not act like the city just does everything right or or the city always at the forefront leading the cost.

So I just want to know from our chairman for our public safety chair, Mike Polizic, uh, Councilmember Plinsick, um, what's his actual thoughts on this piece of legislation and what would be the good decision that he thinks from his leadership?

Before I hear from Councilman Mike Belinsik and Councilman Kevin Bishop, I do want to acknowledge that councilwoman Murr has the floor.

Uh what I would like to do is give her an opportunity to ask her questions, and then Councilman Bishop and Councilman Polensick can give their assessment of their thoughts on this piece of legislation.

They probably have spent the most time on this, and they did make comments earlier.

Uh so I'll let them make closing remarks after Councilwoman Murray has her uh comments, okay?

Councilwoman Marr.

Thank you very much, Chairman.

And I I only asked to get back on because our uh helpful staff uh immediately sent me over the 469 page uh energy contract uh laying out in in in excruciating detail uh all of the weatherization and HVAC, I mean everything you're doing.

I just want to I want to make sure I understand I'm on page 467 of 469.

Um looking I'm uh the thing I'm trying to crystallize out of this document is like where we got the savings from and uh what it looks like is that we are getting 1.4 million in savings out of the procurement work.

That it's the procurement work that creates a lot of the savings as opposed to the energy.

And so I want to make sure I really understand when you're saying that the city will save 1.5 million per year, how much of that is direct energy savings from improvements to the building versus how much of that is improved is uh getting dollars from changes to procurement through the chair.

Drake, do you want to take that?

I think your colleague was about to be a good one.

Oh, I'm sorry, go ahead.

Oh, okay.

I let you guys do it go ahead.

Go ahead.

Okay.

Through the chair, we estimated currently that our energy savings would be about 100 to 10, 11,000 out of that.

And we have additional maintenance savings that's not procurement, but the majority of it is is coming from procurement solutions.

Okay.

That that really helps me understand what's happening here.

Um I want to highlight to our colleagues that, and I I no, actually, let me ask a couple questions first.

So those procurement savings need to be year over year to render the savings throughout the process.

So, how long are we committing to Leopardo improving our procurement processes for public safety to render that 1.4 million in savings every year through the chair?

Through the chair.

It would also three be through the life of the project.

So that the baseline would be established and the essence of this project is to to maintain the current spend on your budgetary levels and actualize those savings and then transfer those savings through the appropriation process to the designated project fund that can then be used to make the debt service payment.

Thank you.

So I I really want to this this really helps me understand the rub with this.

So it's it a hundred to two hundred thousand dollars of actual energy savings, but we finance this deal by estimations of 20-year plus, a 20-plus year commitment to changing our procurement model for public safety through the chair.

Is that accurate?

Through the chair.

It would be utilizing the strategies put forth through the procurement solution.

Correct.

Okay, thank you.

Um and then I just want to highlight for my colleagues that when it when you're on page 467 of page 469, uh, to get to that 1.4 million, that includes uh 318,000 from charges from telephone exchange, 184,000 in charges from print and reproduction, and 272,000 from charges for motor vehicle maintenance.

And for those of us within the who have dealt with the budget, these are sort of interdepartmental swaps that are, you know, they just move around our budget.

So essentially those savings that we're rendering are savings that wouldn't go to another department uh to help them cover their cost.

So I I am appreciative of the time that it's taken to get here, and um I am fully 100 percent committed to improvements to our police stations, uh, in including I I hope we get some new chairs for the officers to sit in because that's a number one uh complaint as well.

Um but just for us to understand the financing of this deal, the financing has very little to do with the energy savings, and it has a lot to do with a 20-year commitment to changing how our largest department within the city, um, 200 and the 236 million dollar public safety budget, how they do procurement, and we're making a 20-year commitment to changing the procurement structure for that department.

That is now my understanding of the bill.

Um, and I haven't decided yet what I will do with that information, but I now understand it better than I did before, and I hope the public does as well.

Thank you, Councilman.

Thank you for your line of questioning.

Very good questions.

Councilman Starr proposed a question.

I'm gonna allow Councilman Palency and Councilman um Bishop to respond if they could.

Thank you, Mr.

Chairman, my honorable colleagues and to the administration.

As I indicated earlier, um there was a great deal of discussion on this, tours of the buildings, interaction with the administration.

This is a shot in the dark.

This is the first time we're doing this on a capital project on five buildings.

It's never been done before.

So I think we've done our due diligence.

There's been great questions asked at the table.

Um it's gonna be up to the administration working with Lopardo to make sure that all the the uh the benefits uh the value in what we're undertaking here, that we derive those benefits.

Uh again, as I said, the proof will be in a pudding.

That's how it is.

I mean, this we can go about the old way with bond funds, and we know we never get anything fixed within a reasonable period of time.

So to the finance director, again, this is a new approach.

This is a new way to do things.

I'm willing to give them the benefit of the doubt because I know the condition of the buildings.

And I would say to my colleagues as well.

Um I don't recall off the top of my head what the with the fifth, excuse me, with the third district cost.

Does any remember what the third district cost, the new third district?

Through the chair to the councilman, I believe it was close to 30 million.

Okay.

And that was a while ago.

That there's the challenge for us.

That was just one district, and I don't know how many years ago was that five years ago, six years ago.

I believe it was completed approximately 11 years ago.

That long ago.

Okay.

We have had over a good 10 years, sir.

Okay.

So there we are.

That was the challenge we're confronted with.

We all know they're horrible, they don't look good.

I think Charlie Slife indicated that they look like something out of North Korea.

We all know that.

But the fact of the matter is that we have to we have to maintain them.

We have to improve them for the men and women in blue that are serving us.

At this point, I don't I don't know what other um route to go, and that's why Councilman Bishop, and I would get I want to thank him publicly for his engagement on this.

They have to report back to us every quarter in detail.

That's the we've required that, and so I am on board to support it.

I don't think we have any other approach at this time.

That's my opinion.

Thank you.

All right, Councilman Bishop, any comments, final comments?

Uh yes, I just want to reiterate um what Councilman Polinci said.

Um I'm sure every council member here has gotten calls from residents saying that you know I got water pouring down out of my roof, and I need my roof fixed right now.

And you know, you kind of feel bad at in that situation that you know when it rains that you know they're going to be under distress.

But the thing of it is that you we cannot wait until we have water coming out of our our roofs out into our police stations for us to act.

It would take us years on top of years, if not decades, to fix all these police stations with the processes that we have currently in the city.

We have to go out on the limb, just like Councilman Polencick said, we got to go out on the limb, and we need help to bring our buildings up to our satisfactory standards where our police officers, men and women can go to work and be in a safe environment.

So, Mr.

President, um we are we are at an impasse here.

We have to make a decision, and we have to make a decision to move forward and fix our buildings before it's too late.

Thank you, Mr.

President.

Thank you.

So let me say this.

Um first of all, I want to thank all of my colleagues for a very, very thorough conversation.

And I want to put this in context.

There was a lot of conversation between myself and Councilman Casey and others about possibly slowing this down, taking this through the committee process and other things, but I decided to move forward because of what Councilman Bishop just said.

Um, you know, Cleveland can't wait for our stations to be fixed.

We have to have a sense of urgency.

These officers have to be in a in a different place.

And then I want to take us back to what we said originally that we're going to be first, we're going to be different, and we're going to do, and we're going to be the best.

We're going to try to look at ways to try to be innovative.

So yes, there's some risk embedded in this.

And yes, there's some uncertainty about how this model will work.

Um after spending an enormous amount of time with the staff and others, um I decided to move this forward and support this because of the issues that everybody has given.

But I do want to state that uh especially Councilwoman Spencer and Mora really did a great job of really helping drill down to what this really is.

And um, you know, I'm willing to take this jump, and I know I'm always slow to, you know, saddle future councils with decisions that we make, but this is uh what I think is a necessary um adjustment and commitment to make.

Um I do want to give councilwoman Spencer an opportunity to make another remark, um, and then we'll move forward to uh moving this either out of committee or uh and and uh hearing it on the floor for a vote tonight.

Councilman Spencer.

Thank you, Council President.

A brief comment and then one final question on the math.

The brief comment is um twofold.

First, I do recognize that there is a desire to innovate, and I don't want to minimize that.

I do want to not give the State of Ohio credit.

Um we're saying, isn't it great that our State has given us energy savings performance contracting statute to allow municipalities to take on risk?

The State of Ohio has been starving cities, slashing our this is not your fault, Leopardo, just FYI.

They have been slashing funding to cities for a decade plus for longer, for 20 years, right?

Local government fund has been slashed.

So let it be on the record that I'm not grateful to the State of Ohio.

Okay.

Back to the math.

Wanting to just to make sure I understood the guaranteed savings piece.

So we're talking about nearly 48 million of guaranteed savings over 20 years.

If all the alignment happens and and there's if there were a shortfall, so through the chair, the question is Leopardo would pay the city the shortfall?

Through the chair, yes, that's correct.

Okay.

So my question is then if if we get two, if we have two million guaranteed per year, of which approximately 1.5 million would go to debt service.

What happens with that additional?

Is it just cash to the city?

Where does that additional go?

Through the chair.

Sorry.

Do you want to take I'm sorry?

Do you have to do the I mean through the chair to the council, you have to evaluate where that savings came from?

Was it a savings inefficiency?

Was it explicit savings from um you know money that went directly to the general fund?

Uh we would have to review the source of the savings and then um you know figure out where we could allocate that.

Okay, this is still okay.

I'm still stuck.

I'm sorry, everybody.

So we're not getting guaranteed savings of it's not actual cash that we can use to pay debt service through the chair.

Through the through the chair, yes, correct.

You are getting actual guaranteed savings that may be used at the discretion of the city to repay the debt service.

The statute allows for that to happen.

So any surplus savings that are generated in addition to the debt service payment would be the cities.

That Leopardo is not capturing those dollars for their own use.

Do you think that's the question?

On that point, please do.

Councilwoman Spencer, would you like Councilwoman Marrow on that point?

I I think I will want to distinguish what is rendered cash savings that is extra money in Cleveland's pocketbooks we would never have had otherwise, as opposed to uh savings that we get because we didn't um we we decided not to spend money.

So I I'm thinking about the terms of the household budget, like uh if like maintenance on a car, right?

Like if you just decide not to get an oil change on your car, you might be like saving money, but you didn't have that money, uh it wasn't additional money that came into your pocket, right?

Like you saved the money by not spending it, and that is how what some of how some of these savings are being rendered is we're saving money by not spending it on things like the telephone exchange and motor vehicle maintenance internally here in the city.

Thank you.

That is my understanding.

So, Council President to Director Barrett, I I would like to understand this piece better between now and tonight.

Um, this piece about what is this cat, what is the savings actually look at look like, what would be the impact on our annual general fund budget in terms of this additional debt payment requirement and how that balances out with these savings and whatever form the savings come in.

Yeah, through the chair of the councilwoman, I'd love to have that side conversation so we can do that.

Thank you.

All right, thank you.

All right, saying no other questions.

Um remember this will be um submitted to this is um actually being a joint committee, so it will come out of municipal services and finance diversity, equity, and inclusion.

However, I do want to you to let me or the majority WIP know if you are um don't get the information that you need or that you are voting um against this so that we um understand um what needs to happen or facilitate you getting answers or figuring out um where this piece lies, okay?

So as of right now, it will pass out of municipal services and finance committee.

Please sign on.

I have been informed that lunch is not here yet, therefore I'm going to hear three key pieces, and then the first piece we're going to hear is the county uh jail piece after we break, okay?

I'm going through all them now.

Try to get through all of them now.

All right.

Um thank you.

Guess what capital projects we still don't capital projects and as two guests.

This is I got 986 first.

986.

Once again, we're going to hear these two pieces and then one council piece, and then we'll break.

Hopefully, lunch will be here by then.

All right.

Um first one that will be heard for consideration this evening is ordinance number 986-1966 2025 by Council members McCormick, Bishop, and Griffin.

By departmental request, an emergency ordinance authorizing the director of capital projects to capital project of capital projects or parks and recreation as appropriate to enter into one or more agreements with the Board of Park Commissioners of Cleveland Metropolitan Park District or their designee for the development of Irish Town Bend, Park and Trail, and authorizing one or more agreements with Metro Parks for a period up to 99 years for the lease operation and maintenance of the improvement.

Director and Commissioner De Janeiro.

Very good.

Okay.

Director.

This is our good morning.

Thank you.

So this piece, and before I start, I want to mention we have here with us Kyle Baker from Cleveland Metro Parks.

So the piece authorizes the Director of Capital Projects and or Director of Parks and Recreation to enter into agreements with Metro Parks for park and trail improvements to be constructed at Irish Town Bend upon completion of the Irish Town Bend stabilization project, which is currently underway.

At the conclusion of that project, the there are several properties in the project area that will transfer to the city pursuant to a previous ordinance 592-2020.

And the city wishes to enter into a project development agreement with Metro Parks for the improvements, the park improvements, which will include a new trail that will provide a connection to the Cleveland Foundation Centennial Trail, also known as the Lake Link Trail.

And in addition to the project development agreement, the city is seeking to enter into a 99-year lease and management agreement with Metro Parks for the ongoing operational and capital maintenance of the park improvements.

There are two maps in your package showing the location of the trail improvements and location of the park improvements, as well as like a list of amenities that will be included in the park.

Thank you.

Thank you.

All right.

Yes, Mr.

Chairman.

We uh read it this with the director of uh MoCap and we fully support it.

Thank you.

Do we have any other questions for 986-2025?

Saying no other questions for 986-2025 stands approved, please.

It will be heard for consideration by the entire body this evening.

Next up is ordinance.

Did you have any comments, sir?

Okay.

That's why I like to see this.

My kind of my kind of guess.

All right.

Ordinance number 993-2025 by Council members Balinsick, Bishop, and Griffin by Departmental Request and Emergency Ordinance authorizing the Director of Capital Projects to enter into one or more agreements with Cuyahoga County and or the Board of Park Commissioners of Cleveland Metropolitan Park District, if necessary, relating to the construction of ongoing maintenance and improvements along the Lake Erie shoreline, known as Euclid Beach Connector Trail Project, to grant and accept easements and to enter into submerged land leases with the state of Ohio for a term up to 50 years and authorizing the director of public works parks and recreation or appropriate director to enter into an amendment to the lake front parks lease with the metro parks to include the project area.

And if I'm not mistaken, this is all around the development.

Connector trail.

Okay.

All right.

Please proceed.

Thank you.

Um I want to mention we have uh the project manager from Cuyhoga County here, Trevor Hunt, as well as Kyle Baker from Cleveland Metro Parks.

These are our project partners.

The uh legislation would authorize the director of capital projects andor parks and recreation to enter into a project development agreement with Cuyhoga County and Cleveland Metro Parks for the development of the improvement.

Um it is the Euclid Beach Connector Trail, uh which begins at the westerly edge of Euclid Beach Park, which is currently leased to Metro Parks as part of their lakefront reservation.

The trail is approximately two-thirds of a mile.

It traverses the bluff of the lakefront uh west to where it connects to the Cleveland Lakefront bikeway via Shore Acres Drive.

Um, in addition to the trail, the county will uh construct shoreline protection improvements.

Um and so the project is very important because not only does it expand public access in an area traditionally underserved in terms of lakefront access via the trail, but it also provides the shoreline protection in an area where erosion is an ongoing concern to both public and private properties, including three uh Northeast Ohio Regional Sewer District major outfalls in the project area.

Uh the county has negotiated long-term easements from the upland owners in the project area, which will be granted to the city at no cost.

The city will also enter into a submerged land lease for areas lakeward of the upward easements, and um the city will pay the fees to Ohio Department of Natural Resources for the submerged land lease in the amount of a dollar per year for 50 years.

The city also seeks to amend its lease for the uh with Metro Parks for the Lakefront Reservation to bring this land into the lease area, and Metro Parks has agreed to um do the ongoing maintenance, day-to-day maintenance um for the the uh improvements.

Um Councilman Polanc has long championed this project uh because of the public access, the expanded public access, as well as the shoreline protection, and has generously agreed to contribute fifteen thousand dollars towards the first year of maintenance costs.

Um a previous ordinance 528-2023 authorized the city to contribute three three million dollars towards the project costs, and the county will um pay for the balance of the project cost in the amount of sixteen million dollars through funding and contributions from other sources.

Thank you.

Councilman Bishop.

Uh yes, Mr.

Chairman.

We uh vetted this uh we fully supportive pastors.

Thank you.

And I know Councilman Polinsek had to step out, but he's been a fervent advocate for this and um has been supportive of this.

So thank you so much.

Okay.

Any other questions regarding ordinance number nine nine three-2025?

Seeing no other questions, ordinance number nine nine three-2025 will be heard by the full council uh for consideration tonight.

Thank you to our guests for being here today.

Appreciate you guys.

And I think that's it for you, Ms.

Chambers.

All right, appreciate it.

All right, thank you.

Uh next we have ordinance number 786-2025 by Councilmember McCormick, an emergency ordinance authorizing the director of the Department of Parks and Recreation to enter into a grant agreement with Ohio City Incorporated to provide program support for near West Recreation Youth Programs.

Director Good afternoon.

Uh thank you, Councilman, for uh hearing this item.

Um this item is being uh presented by uh Councilman McCormick, and I will uh defer to Near West to have some uh share a summary of what this project project uh entails.

Thank you.

Okay, and through the chair to the council.

Um this is an ordinance that authorizes the director of Department of Parks and Rec to enter into a grant agreement with Ohio City Incorporated to provide program support for near west recreation youth programs.

A previous grant agreement was authorized and um supported the similar programs for the last year in the amount of 75,000 dollars.

And this grant agreement is for uh the 2025 to 26 year and in the amount of 100,000 dollars, and you have the fund numbers in front of you.

Outstanding.

And take it away, Carrie.

Yeah, um, thank you guys uh for having me.

Um yeah, so we've been around for almost 13 years now.

Um our numbers have increased over the year by year, sports have increased.

Um so um we are looking to um go from those traditional sports leagues that we serve, kids on the near west side, west side, we even get some east side kids, but um those traditional sports that we do, we're looking at more non-traditional.

Um, we've already started some of those, uh squash, lacrosse, tennis, um, we're looking into yoga and some other activities um including family nights and activities like that.

Um, and then we'll start piloting some um programming for seniors um in our area.

So uh true intergenerational recreation um program for our uh Westside families and residents.

All right.

Well, I've heard a lot about this.

I've hoped that this league continues to grow and stay strong.

I know that my colleague was one of the original um people that helped uh develop it, and this is well thought of in the Ohio City area.

Councilman Bishop, did you have any comments?

Uh yes, Ms.

Chairman.

Uh fully support this piece.

Uh we appreciate uh near west uh near uh advocacy uh and with our youth and our recreation on that part of the town.

Thank you.

All right, thank you.

If there are uh councilman, Council President, I know Councilwoman Jasmine Santana.

Councilman McCormick had a step out, but he is a huge fan and so um supportive of this piece.

Um, as he mentioned before, and he always says we need more programming for our youth.

Um, and this is a program that many of our awards have benefited from.

So um, he's in full support.

Sorry he couldn't be here, but wanted me to make sure that I um let everyone know that he's very supportive of this project absolutely thank you.

Councilman Chris Harsh.

Yeah, Mr.

President, just gotta reiterate that as well.

My kids do Near West Rec.

It is the it is all that in a bag of chips.

Um we we pay full price and gladly do it and then and throw whatever money we can your way because this is a truly uh if your kids show up, they're in.

Uh I've seen kids walk up to the park while we're having baseball practice and just we slap a hat on them and like congratulations, you're on the team, son.

Let's go.

Um, and that's just sort of the spirit of Near West Rack is all for one one for all.

It's a fantastic program and very happy to support it.

Okay.

Thank you.

All right.

Uh seeing no other questions, ordinance number 78.

I'm sorry, is it yes 786-2025 stands approved?

Good luck with the season.

Um I want to hear three economic development pieces.

If Director McNair will join us at the table and then we'll break for lunch.

I am uh I have been informed that lunch is here.

So what we're gonna do is we're gonna hear these three economic development uh pieces, then we'll break.

Once we break, then we'll come back and uh start off with the uh conversation here.

All right, uh first one is ordinance number 799-2025 by Council Members Harrison and Griffin by Departmental Request, an emergency ordinance authorizing the director of economic development to enter into an agreement with the Urban League of Greater Cleveland or its designee to assist with costs related to outreach assistance and administration of the UBS micro loan program and assistance training and planning for small businesses through the entrepreneurship center of the Urban League of Greater Cleveland.

And we have at the table with Mr.

McNear, my good friend, executive director coming off the heels of a fantastic event, the National Urban League Conference, Marsha Makabee, and Mr.

Michael Obi, who is uh small business extraordinaire.

And I always forget my friend's name from your office, Mr.

McNair.

Mr.

Foma is that way.

Ms.

Foma is Zeppway.

I just know she's one of the people who make things happen in City O.

All right.

Uh so Ms.

McNair, you had the floor.

Yes, uh, thank you, Council President, members of the committee.

Uh I think as you all know, we do support a number of external economic development organizations.

I think you've also heard me say uh a multitude of times that we are trying very hard to get our arms around some of these costs uh and look to support only the organizations that are truly kind of multipliers of our work and extend our work within the community.

Uh Urban League is one of those uh uh organizations that we feel are good partners uh as we have built out our neighborhood investment managers.

This is an organization that we can refer uh individuals to for additional technical uh uh assistance and expertise that we do not possess, uh additional funding opportunities, which our money goes directly into.

Uh and at the same time, their network of folks that they're talking to in small businesses can refer back to our office uh for programs that they do not have.

So it's a really good partnership.

Uh and with that, um I'm gonna hand it over to Mr.

Uh Obi to kind of walk through a couple of things.

We've asked them to be succinct.

Um the last piece that I will say is we have traditionally funded this organization uh at around $300,000 annually.

Uh you will notice that this is a larger amount than that.

It is 450,000.

That is because this is an 18-month engagement.

We are actually trying to line this up so it makes more sense from a funding opportunity.

So it will go back to kind of 12 months uh in the future, but trying to get this in the right kind of annual time frame.

With that, Mr.

Obi and Ms.

Maccabee.

Thank you.

Council President, okay.

Thank you for the opportunity to come and share today, and we certainly hope that our presentation will show you a very um very good return on investment for what we're able to provide to the community.

So at this point, in the essence of time, I'm going to turn it over to our executive vice president of economic development, Michael Obey, to provide the input to you.

Thank you.

All right, thank you, Chairman.

Um thank you, Mr.

McNair for your partnership and the FOMA for the good work.

Uh we've gone you've seen our structure, our lines of business, and how we deliver holistic service to entrepreneurs.

So what I would like to do, and this is really how we serve clients, but I want to get to the numbers so that for interest of time.

So far this year, we are trending to do to exceed the goal of 1,700 businesses that we help.

So far, as you could see in the month of July by year to date, uh we are trending to exceed all those economic metrics.

So that is really the summary of what we continue to do and the value that we provide to the city.

Um what we have in front of you is a little more detail.

Uh we went through line by line all the businesses that we've deployed capital into to grow their businesses.

Uh we've uh looked at their addresses and looked which ward they came from.

So you could see uh between about 60 percent of our clients that we serve are from the city of Cleveland.

And their investment into us is roughly about 20 percent of our total budget.

So you are return on investment is a good one, in my opinion.

I may be biased, but the numbers don't lie.

So um I will close and open up if anybody has any question with uh exciting program that we've been running for the past five years to have restaurants in the community, and that's one of the things you have in front of you.

We've deployed about 1.6 million in loans, but the exciting part of the restaurants is that we were part of the national uh cities, cities that were selected nationally by PepsiCo Foundation and National Urban League to really help restaurants to build a system that is sustainable so that they know how to price their menu and stay in business.

At graduation, we've been giving 10,000 grants to each one of those businesses to buy new equipment and scale.

So we concluded our 50 year.

So what you have in front of you about $520,000 in grant funding that came from the National Urban League into our local communities uh for free.

They didn't have to pay back that money.

So that's something we're very proud of.

Uh and that concludes my the summary of my presentation.

Thank you.

All right.

Uh so I've actually had the privilege and honor of coming to your UBS restaurant um forum a couple of I think about three weeks ago time flies.

Thank you for coming.

And um, all I can say is that it's a phenomenal program.

Um small businesses seek you out.

Uh the only thing I see is I gotta invite you over to Ward 6.

We got to tell more people in Ward Six about you.

Um I know your number, I know how to find you, but if not, I know how to find Ms.

Mockabee.

We just got to get you over there to do some more outreach because a lot of people want help with small businesses.

Okay.

All right.

Uh Councilman Harrison is not here.

Do we have any other questions?

And I'm going to ask if everybody can stand pat because we need everybody that's here right now for a quorum.

And I just want to get through these next three pieces.

Councilwoman Stephanie House Jones.

Yes, hi.

Um to the chair, uh, to the team here.

Uh, just a clarification for the UBS.

Is the Ubys uh set up only for like restaurant restaurant retail businesses?

Uh no, we um we serve everybody.

Okay.

Yeah, so this is a question through the chair to the team here, um, and maybe even the economic development team.

Can you all outline how many um, and I'm specifically looking at um black and Hispanic businesses that are in the construction industry, or specifically electrical, HVAC, and plumbing.

Are any of them have 10 or more employees?

Um actually yesterday, we no two days ago we graduated uh our construction accelerator program at the I'm sorry, say that again.

Um we graduated our third cohort of construction accelerator uh businesses at the Midtown Collaborative.

We graduated 14.

Some of them are electric electrical contractors.

Uh I don't have the number of how many of them have X number of employees, but we could get that for you.

Uh this is our third year.

We've graduated 50 black contractors in the past three years that came out of the Sherwin Williams headquarters was funded by the Browns under Bed Rock.

So we're very proud of that program.

We could get you the numbers.

Because again, as they went into conversations about kind of like our CBA agreements, they were like, it's nice, you all, I mean, the City of Cleveland can pat itself on the back, but in reality, you aren't making the goals because yes, we have a minority company, but they're not in Cleveland, they're not in any suburbs of Cleveland, they come from other places.

And so I am specifically, again, because I know specifically in my community, we have pro projects that people can get on for two to three years.

But the fact is, as they are telling me, we do not have any black or Hispanic electrical, HVAC, and plumbing.

So somebody today needs to send me the companies in Cleveland that have 10 or more people, electrical, HVAC, and plumbing.

They need 10 or more.

And seeing how we work to ensure they have the license and bonding to ensure that they can stay on the job.

Because I'm hearing all the stuff.

We say we are putting these investments in, but then it's another developer saying, No, it's not.

No, it's not.

So I I'm I I'm really again, I you know, when you're not doing this work, I don't know who to believe.

Right.

So somebody somewhere there is misalignment.

And how long?

And I guess for the director, how long will it take you to give me that information about the Cleveland um Hispanic and Black companies who have 10 or more people in electrical, HVAC, and plumbing?

So through the council president to Councilwoman House Jones, I I think one uh happy to work with Mr.

Obi to get numbers of the colour.

Hold on, hold on.

Could you speak into the mic?

And can we just get through this?

Yep.

Uh happy to work with Mr.

Obi to get numbers from people that have gone through his construction accelerator program that may fit that profile.

Um I will also say that I do believe we don't track that information.

Uh I will say that you are absolutely hitting on one of the biggest issues that we face.

This is something that we talk about with the Office of Equal Opportunity quite often.

Um we are very happy to support those organizations as they come into our door, but that is not something that our department tracks.

But it is unequivocally one of the biggest issues we face.

So let me follow up.

So I think just we through the chair to the team here.

We don't have the luxury to not do this, right?

We know the need is there.

So again, if it's not economic development, if it's not OEO, a identifying who is best positioned, not only to sell us what isn't there, but to then if we have these people that these individuals and these contractors who have gone through the accelerator program, what opportunity has it been to get people to doing your own thing is not it.

We people have to work together.

That is where we are at.

We do not have the luxury to have people go through a program when you're at the end of the day, you're not going to get the contracts based on the work that's in Cleveland.

If you do not have 10 or more employees, you are not going to be on these major companies.

You're not, you're just not.

So I guess the the question is when we've been doing these accelerated programs, how many partnerships have we created that will yield us the results so that you can successfully get connected and be contractors on these larger development projects.

Okay.

Yeah, like what we'll do, we'll give you this is a problem we're trying to solve.

Construction is a very complex industry.

Uh this is why we started from the ground zero, right?

Building this businesses to be able to scale.

We are not quite there yet.

Uh you know Lonnie Coleman, who owns Coleman Spawn, uh HVSC.

He is one of the mentors that we recruited, Shakur Davis, who runs Next Generation doing some work with the City of Cleveland.

We recruited him.

He was the one that is mentoring some of these up and coming, right?

So we have to build it.

We do not have businesses of scale that are black and brown owned.

This is why this work is critical.

We are not there yet.

Because 10 employees means for you to have a payroll of 10 electricians, means you have a peril of over a million dollars.

So that is not something that could be done overnight, but we are working on it with partner with the Browns because of the future projects, bedrock with the lake front work.

So we are working with all this organization on recruiting those that are willing to give this work because part of the program is not just learning how to scale your business, but also help give them contracts so they can have that payroll you're talking about of nine people or ten people.

So we're we're it's a lot of work that needs to be done to get there.

Okay.

So I I through the through the chair to the team here.

I hope you're here.

Okay, there's no okay.

I'm gonna finish.

But it's one of those things where we I think many times have to get out of a mindset of letting people just do what they want to do.

You know, I remember I was graduating from from high school, and um I had a friend who was about to go and she wanted to do like some art stuff, and her mama's like, no, you're going into business because I need you to be able to take care of yourself.

I think sometimes we are at a point where we have to get out of this mindset of just letting people do what they want to do because it sounds good and it feels good, versus connecting people based based on skill sets and where some of these real opportunities lie.

And if we know that many of the companies, in order to get on the projects, have to have 10 or more companies, and then we identify in a construction cohort that there are eight different people doing plumbing, but eight different people are not gonna have the threshold.

Why can't the eight come together to do it?

And I know people are saying, well, because people want to do their own thing, but what are we what are our investments for if we are not actually solving the problems at hand?

And I know this is not you all, but it is in in front of my mind as I just recently had this meeting, and I know we are pouring money into supposedly strategically doing to to fix the issues that we know are are in front of us.

And so all I would request is as you all are going through new cohorts um to specifically be very intentional and ensuring people have a plan to come together because the one-offs will not work.

They are the everybody is telling us the way this economy is working, these companies are not going to survive.

They're just not going to, they're not gonna survive.

And we're we're gonna have an economic um decline.

Everyone is foreseeing it.

So, like really building people up and preparing for for the head west that are coming.

So that's my request here.

Um, I am supportive of this work.

I will be voting on it.

In addition to we all have a much larger responsibility to ensure that the results get to where we are going, where we want them to go, ensuring that businesses that and communities in our community who have been cut out for far too long have a real opportunity to be connected because they are prepared to seize the moment.

Uh councilwoman, you touched on a very um sincere topic that is brought up to a lot of us on a regular basis that no matter how good of our intentions, if the workforce is not there and the companies are not there, we're not gonna be able to accomplish it.

So you have my commitment that um I know that director Mitchell is here.

I think that what we need is during our operational hearings that we really need to bring OEO in and really drill down into this portion, and then also hear from some of these folks uh because Mr.

Coleman just got cut out of a major deal, and he has way more than 10 employees.

Yeah, and he just got you know mishandled on a major, major deal around the county jail, which I'm not happy with.

That's right.

Um, so we also got to make sure that we deal with that.

So you bring up a very important topic that I do uh want to put some energy towards, okay?

Yes, and if you know we have literally hundreds of millions of dollars of development that is happening in this city and that will continue to happen um in this city based on how federal and state policy is changing, who will be able to get access to these dollars.

It's you are talking about significant dollars, right?

And if our smaller companies, businesses are not prepared, they are not going to get the dollars, and we have to get people on this reality.

Totally.

Somebody got to step back, somebody got to step up, and people, our black and brown businesses have to collaborate.

If the threshold ain't $10, you ain't serious about trying to get into this space.

Totally got it.

Thank you, Councilwoman.

Uh, Councilman Conwell had a point, and then um I'm gonna let Ms.

Mockabee end up, and we do need to.

And we do need to, I'm not gonna hear these next two pieces because I want everybody to be able to get these.

I know you are in front of us.

How did you do last year?

You came in front of us, and it's just said you have on here that you're giving um your evaluations to the you're keeping the city informed of all available business training sessions, and you train how and how is your outreach?

And see, all those things, I don't know.

You're asking for 450,000, you know, and you're not bringing your outcome measures to the table.

I mean, I see this, but I don't see you know where you are on it.

Um outreach.

Yeah, because you got you got in here.

This is um it's I'm looking at 799 2025.

Is that Tom to the director?

This year, yeah.

Yeah, yeah, yeah.

Was I'm sorry, it was I'm looking at just executive summary, Urban League of Greater Cleveland, or his design, citywide benefits, citywide benefits.

Which benefits.

Okay, yeah, I'm trying to make sure I'm on the same thing as you.

Yeah, when you say greatest directors in America.

All right.

Yeah.

What was the question?

So you narrate this right here, right?

Yes.

And so I asked you this question right here that you have in your summary dealing with the outreach.

Yeah.

Okay, so uh great questions.

Uh you know, we run a lot of he's talking to the microphone.

Yeah, we run what the councilman is asking is our outreach.

When we run different tracks, accelerator program for construction companies, restaurants, uh, uh black women uh retailers, we do a lot of outreach.

We leverage technology, we do a lot of, we have about 3,000 female blasts that go out in the community.

We do becoming bankable program where we have businesses use QuickBooks.

We do outreach in Buckeye with Huntington Bank.

Uh we we we graduated a cohort in May around that.

So we go in the community.

We did one over at the Harvard Community Center this year.

So we are doing outreach in different communities in partnership with CDCs, and and we do this program at the Urban League Office.

So when we do the restaurant that celebrated, we have probably 50 people apply.

But then we could we have funding for only 10.

Because every graduate gets 10,000.

So those programs costs money and it has a budget.

So we do so much outreach when we are recruiting for a new program.

So um to Tom, the director, McNear at Glenn Village.

Why are we not using them?

We were supposed to use them five years ago at Glenn Village.

Okay, to help people with their PLs, their profit and loss statements.

You know what I'm talking about.

And why are we not using it there?

The outreach, because I want to see success, man.

You hit your goals, you're here narrating goals, your objectives show your success.

And you got Glenn Village just sitting there, and we could have been doing that at the same time through the chair to Tom McNear.

Yes, uh, through the chair to Councilman Conwell.

Uh, I hear you, as you know, Glenn Village was constructing up and running long before I got here, and there was a plan in place as that was an incubator to work with many of those small businesses on the issues that you were talking about.

Uh Ubiz was not the partner that was selected to do that work.

Um, and as you also know better than anyone else here, um, for a variety of reasons, Glenn Village didn't have the success that I think people thought it would have, and we have now transitioned that to a private operator uh of a small business that we are continuing to try to find every way humanly possible to support.

Uh and I think that as we start to navigate this space again, uh, one of the reasons that we ask that uh Michael and Marcia keep us informed of all available business trainings, right?

Um, is because this is a two-way partnership, and so as our neighborhood investment managers start to know all the offerings that they have, while they're doing their own individual marketing.

We can then also ensure that people that we're coming in contact with small businesses on a daily basis know the programs that they have to offer and make those references so that they can apply for a program like this.

Uh and so in the particular case of Glenn Village, uh right, Jeremy, who is now running that space uh and and kind of coordinating all that, we can make him aware uh that these programs are available for him to apply to.

You know what?

Um in Urban Lee, they know better.

They should have brought us their uh you know you you're doing your goals and objectives and you say marketing, and what you do in marketing is like LSM.

And you know that your local store marketing, but you should bring it to us how you because I I heard councilwoman Stephanie House Jones narrate about um some of the barriers that we're going through.

But you see these barriers through the council president, especially with marketing, you put together something called an LSM, your local store marketing, and you how to bring people into your businesses and you teach them that.

You teach the workers how to do that, and you teach them how to monitor through the chair to I forgot your name.

Michael Michael, you know.

Narrate that for me.

Because you know, God sit back and I listen to you, but you're not bringing it to the table.

Yeah, I was trying to be brief because.

No, I ain't trying to be brief.

That's 450,000.

And I apologize, everybody.

I'm trying to hold on to a quorum.

So all the council members, that's you might see me counting and looking around the table.

It's because I need to hold on to it.

But Mr.

President, this is 450,000 goals, objectives.

You gotta put down your NSM, your local store marketing.

You just said marketing, yeah, but you get it's different demographic areas that you gotta market out of.

Yeah, okay.

So this is what we we do.

We are part of SBA called Small Business Development Center.

We've been running that for 20 years.

SBDC is in every county in America.

We uh we host the SBDC for Cahoga County for the past 20 years.

What that program is help businesses to know whatever they are to start, grow and sustain their businesses.

The model is very fundamental to run their business.

It's about what is your infrastructure, back office, your marketing, your advertising.

How is your accounting system?

You have a strategic plan.

So we help them with the nuts and bolts of running business.

The second line of business we have is the MBAC, Minority Business Center, which is start off a higher program for minority contractors.

So we help them with bonding contracts.

So far this year we've generated eight million dollars in contracts for those businesses.

So that we oversee eight counties from the Urban League in this Northeast Ohio.

Okay.

The original director for that is Shoshana Duckwell, who used to work for US Bank.

Uh we have about eight licensed certified business advisors that know that went through a training at Kent State.

Uh they are certified on how to advise businesses on marketing, accounting, finances, and operations.

And then the third line of business is access to capital.

We make our own loans.

We have a five million dollar capital, and we've deployed over almost four million dollars already into this community to help this businesses to scale to get to the level the councilwoman was talking about, because it takes growth capital for these businesses to grow.

Most of them don't qualify or don't able to receive traditional financing to grow the business.

So we become the community partner to give them those capital to buy the new truck so they can grow their business so they can put a best foot forward in getting those bigger contracts.

So that's what the UBIS Connect and UB's uh capital is.

I tell you what, if we could, um Mr.

OV, if we could yeah, that's fine, but I would I think that it would be helpful if you guys invited council over to do a tour to actually understand your program more intimately, yes.

But I that's why council, I don't know if the councilman's been over lately, but you should probably invite council members over so they can see and actually do your whole thing.

Because I actually spent time over that.

That's the only reason I do.

And then I'm gonna close.

I'm gonna close for the sake of time.

Um Mr.

President, before they invite us, give us the book so we can process it, and then that way I can read it and write questions down, and that way I can see it.

But if you just narrate it to me, that's now good.

Okay.

All right.

We'll definitely give some information through the director to you.

All right.

So some great questions, and I really want to make sure we examine that.

We are going to break and I'm going to come back.

I know I got two pieces for Mr.

McNair, but I need to break because as you can see, I'm losing the quorum because people have to eat and return phone calls.

So we're going to um hear no other questions or number.

Oh, sorry, Councilman Starr.

Go ahead, Councilman Starr.

Councilman Starr.

Okay, thank you, Council President.

Um just for the sake of this ordinance, I'll be real brief.

Um I understand some of the things that some of my colleagues brought up to the table as a point regarding just this 450,000, obviously, with their partnership um with Urban Urban League Cleveland, which is really really a great program.

Um I definitely like to look in it when I look at the restaurant accelerated program, and we see um different list of numbers of programs in each ward in the city of Cleveland.

That is a great that is great to see 54 um restaurants counted.

And it's great to see that you have um, I believe, or some of 520,000 dollar grant, but I think what makes it more home for us as you got it broken down to where it is um labeled as far as each grant in each ward.

I think it would be beneficial if we knew what these actual businesses were.

And here's why a lot of individuals will say they're in a ward five, a lot of people will say they're in a ward two, they might be in award eight, they might be in award seven, but nobody knows about their actual business.

And then how do we have back to some of the point that you heard from Councilwoman Miles Jones, collaborations, partnerships.

We do a lot of different spotlights and highlights of businesses as far as marketing into our newsletters that we send out to our 24,000 plus residents in each of our wards.

We highlight some of the great work.

We are market with them, and when you talk about community benefits agreements, and you talk about having things in place to be able to keep businesses there, you got to do it in collaboration and partnership.

So me just seeing 54 um counts of restaurants and some of these restaurants, I don't know.

Um, and we don't have a list, and I look at ward five and says you've worked with four restaurants.

I would love to know what those four businesses are.

And then also I would love to know when the cohorts are going or when you're opening up, how to get people into those programs that you might not oftentimes reach out or they might not know, or you may have um capacity, or you may get ready to roll another cohort so we can be able to be in collaboration.

And I think when you talk about dollars and you talk about building generational wealth and building this different equity that's needed in our neighborhood, collaboration has to be at the forefront.

And not to just harp on it, but when you talk about the community benefit ordinance that the city of Cleveland that this council helped pass and talking about the actual implementations and talking with other different um people who are in the construction industry, they are saying that it is not going as it was planned.

And what I mean by that is individuals are using other folks from other suburbs to get the actual credit for doing minority participation on contract, and that is a bigger discussion because we're supposed to be trying to work local.

And what I mean by that is other suburbs only claim Cleveland is when they go outside of Cleveland to say that they from this neighborhood.

But when they ain't Cleveland, they talk about who what city they are in.

And what we're trying to do as a city council in the city of Cleveland is make sure those opportunities that are available for Clevelanders actually get to those Clevelanders.

So I definitely would like to see for this ordinance number 799 through the council president 2025 to make sure that we get a list of these actual accelerated programs, and then also from that same time frame if we can request um with our staff to work with Greater Cleveland or Urban League, um, Urban League of Greater Cleveland from the last 2019 to 2024 to see what is actually what where our return on our investment for these different type of programs that we support it.

And I do support the initiative, I do support the work of Urban League Cleveland, but I also want to make sure our residents are at the forefront in our neighborhoods to be able to get these resources that is so much needed.

And I yell, Chair.

Thank you, Councilman.

And once again, I would encourage everybody to actually go.

The only reason I'm probably a lot more confident than others are because I actually went and visited and seen it.

But Ms.

Mockabee is burning and saying, and I know I got directors and employees saying please keep going through legislation.

If I stop, if I keep going, I'm going to lose a quorum.

And I'm not going to be able to pass legislation.

And people are hungry and people are trying to do jobs in addition.

So my apologies.

It went a little longer than I thought it was, but go ahead.

Just one quick question.

Marsha because of the kind of questions that have been asked I'm a little confused because the handout that we had speaks to okay.

Marsha please don't please when we'll get with Tyson and we'll do that because it's a broader I think what happens is your program is in a broader conversation.

So we got to have a broader context and a broader conversation that you guys can actually bring some value to.

Okay.

Okay.

All right.

We can make that happen.

You know we got to have these every month or two okay all right thank you.

All right um I'm going to adjourn I'm going to ask I was going to have everybody reconvene at one but now we're going to have to do 130.

So if everybody can reconvene at 130.

Yes uh seeing all the questions ordinance number ordinance number 799-2025 stands approved and uh thank you for all of the work and just so everybody could know for the business I'm going to adjourn we're going to reconvene at 130.

I was struggling to keep a quorum and also people are starting to get hungry and starting to run out and trying to eat a granola bar while they're waiting or whatever okay all right thank you thank you.

130 everybody 130