Thursday, August 23, 2012

Another Rubber Stamp Council?

On August 8, the Euclid City Council voted 4-3 to purchase the old Alexander's property in downtown Euclid for $900,000.   This land is needed for Federal mandated improvements to Euclid's sewer system.

Yet, on Monday, August 27, the Council will debate this matter further.  Confused?  Let me explain.

Councilpersons Jones, Scarniench and myself voted against purchasing the land.  While the land is important to the project and needs purchasing,  the Cervenik Administration botched the entire presentation to Council.

When the City purchases property, an appraisal of the property is required.  Normally, that appraisal and, other supporting documentation is presented to City Council for review BEFORE  Council votes on the purchase.

Here examples of how the process should, and, has worked in the recent past

December, 2009 E 248th Street Sewer Project:  A lakefront parcel next to the Normandy was needed for a storm water outfall pipe.  Owned by the K&D Group, the final purchase price was $400K.   Council received both the appraisal and supporting explanations from the Administration well in advance of the meeting, allowing time for ample questions.   This purchase most closely resembles
the Alexander's purchase

June, 2010, St. Roberts Parish Purchase:   Bought for 674K, the City is "landbanking" the property to capitalize on future marina development.  The vote in June was the culmination of two months of CONFIDENTIAL e-mail exchanges between the Administration and City Council.

November,  2010 Lakefront parcel purchase.   The two other lakefront parcels were purchased from the K&D Group for 470K.  This brings the City in control of property between the Normandy and
HarborCrest.  At the same time, K&D donated to the City of Euclid a strip of shore line property that is important for future lakefront development. 

In each case, the Administration provided the Council with appraisal information, include copies of the actual appraisal, and detailed explanations explaining the appraisal, the need for the land, and reasoning behind the price.  With this information, Council can ask questions, and raise concerns
BEFORE voting on the legislation.
 
The Broken Process
 

For the Alexander property purchase, the City Council received zero supporting documentation from the Administration.  No appraisal, no explanation, just the legislation.    Now mind you, we have the same Mayor and Law Director, the same team that did it correctly a few years ago.  They know full well that Council would have questions on the appraisal and the price.

When you are going to spend 900K of the public's money, more information should be provided, not less.  When asked why the appraisal was not provided to Council prior to the meeting, Law Director Frey blustered that "no one on Council asked for it."  This is a very poor excuse for  the unwillingness of the Cervenik Administration to provide basic information, information that was  given in the past. 

Instead, Law Director Frey read certain portions from the appraisal to Council.  Being read too on the floor of City Council prevents any real questioning, and, insight or penetrating. thought: this only leads to poor decision making.

Yet, instead of owning up to the mistake, Mayor Cervenik complained about the Council not communicating with the Administration.  Well, its not like the appraisal information just became available in August.   The appraisals were completed in January. In reviewing communication from the Administration I can find nothing updating the Council on the appraisal process, or, the negotiations to obtain the property.  This was far different, than, say, what occurred when we were looking at the St. Roberts purchase.

The City Council has no obligation to bail out the Administration's poor preparation.   But, perhaps they figured they had the votes and did not have to prepare.   The majority of Caviness, Gail, O'Hare, and Mclaughlin provided the approval based on their trust of the Administration. 

Trusting the Administration  is nice.  Verification of that trust is better for the public!

Notice that I have not mentioned if the price of 900K is a fair one.

Without any supporting documentation, the Council should not even have begun to consider if the purchase price was right, wrong, low, or high.  Given how poorly this process was, my "no" was easy to cast.

So, why the meeting on Monday?  Two days after the vote, Mr. Frey did provide the appraisal of the Alexander property.   That led to many of my colleagues having all sorts of questions.   Imagine that!
I felt that it is important, the the public at least hear the reasoning behind the purchase price:  all of which should have been discussed before any vote was ever taken.

While it is unlikely, there is still time to make your voice heard.  The purchase legislation does not go into effect until 30 days after its August 8th passage.

The meeting is Monday, 8/27, Euclid City Hall, at 7:00pm








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