Niles gets surprise break on financial problems

July 8, 2016 at 12:06a.m.

NILES

Niles City Council on Thursday unanimously approved a bid to replace city hall’s heating and ventilation system that turned out to be $120,000 less than expected — a major break for its beleaguered finances.

Council accepted a bid of more than $63,000 from York-Mahoning Mechanical Contractors to replace the system. Previously, the only other company making an offer indicated it could not complete the project for less than $192,000. At that time, York-Mahoning had yet to bid, and council worried it would have no choice but to pay the higher figure.

“Government moves slowly and it’s saved us $100,000,” said Barry Steffey, D-4th, council finance chairman. “We made sure we got our bids and it worked.”

The costs will be covered by several funds. Auditor Giovanne Merlo said the general fund will be responsible for only $7,000 of the total. Niles has been in fiscal emergency since October 2014 because of the general-fund deficit.

Council, however, split over the recall of a part-time secretary for the police department, but not because of the cost. Linda Marchese, D-3rd, said she received an email from the local union complaining about the part-time recall because a full-time custodian in the department remains furloughed. Acting Chief Jay Holland said without the secretary, there will be no one to provide reports to the public, administer the city’s new impound lot or work on payroll.

A full-time secretary is on sick leave.

“We’re running a business here, and if we don’t have someone in a clerical function, we can’t operate,” Holland told council. “You can’t justify spending money on a captain to sit with the records.

“What do I tell the public?” Holland asked.

Instead of passing the recall as an emergency, council would only move it to a second reading, and Mayor Thomas Scarnecchia was not pleased.

“We take one step forward and three steps backwards,” the mayor said. “Who’s going to run the impound lot?”

Council may, however, have found another source for badly needed general-fund revenue. Council approved a lease agreement with a company that wants to build a 180-foot wireless communication tower on Vienna Avenue on city fire substation property for Verizon. The company would pay the city $1,000 per month for 25 years or a lump-sum payment of $170,000. Councilman Ryan McNaughton, D-at large, said the city should choose the latter, while Marchese said she prefers the monthly payment.

There was no indication when council might make its choice.

According to Brian Glardon, a Verizon agent who attended the meeting, the city would be eligible for additional funds should other cellphone carriers decide to use the tower, but only if the monthly payment option is chosen.

“There’s no future revenue sharing if you take the lump sum,” Glardon told council.