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Monroe Council Special Meeting Minutes for May 7, 2011
Wednesday, June 22, 2011 2:13:07 PM - Monroe Ohio


City of Monroe Special Meeting of Council

May 7, 2011

by Angela Wasson

City Council met in special session on Saturday, May 7, 2011 at 9:09 am in the Council

Chambers located at 233 South Main Street, Monroe, Ohio.


Council Members Present were: Anna Hale, Steve Black, Todd Hickman, Bob Kelley, Suzi

Rubin, and Lora Stillman.


Staff present were: William J. Brock, City Manager/City Engineer; Kacey L. Waggaman,

Director of Finance; Angela S. Wasson, Assistant to the City Manager/Clerk of Council; Mark

A. Neu, II, Fire Chief; and Deborah Armitage, Deputy Treasurer.


Mr. Brock announced that we need to start looking at some of the decisions we are going to have

to make with the 2012 budget and possibly this year’s budget as we are being affected by the

economy and some of the decisions the State has made. We are using 2007 as a base year as that

is the year we came out of fiscal emergency and started changing our financials around a lot. We

hope to show you why we are at where we are at and give you the information so you can start

making decisions on how we are going to do things in the future. I see it as an opportunity to

change the way we operate local government. We need to work with other local governments.

There is no way local government can operate in isolation and doing everything by ourselves as

we have in the past. We need to work with others that provide like or similar services. We still

need to make sure what fits for Monroe and make sure our brand is still there and our citizens are

still getting the services they are used to. We want direction and comments for organizational

priorities and structure.


Mrs. Waggaman referred to a list of all the funds. Each fund is tracked separately. The only

fund that can move from one fund to another is the General Fund that can fund other funds. We

need a separate fund for each revenue source received. As accounting software has progressed,

we don’t need to have a separate fund so long as we can track it separately within the fund. She

provided an explanation of the different types of funds. On the operating funds, we have given

you a listing of the categories/sources of revenues. With the street funds when we talk about the

Public Works Department, they have three - street, state highway, and motor vehicle license tax

and that is why there are separate funds. The Street Fund gets the majority of the money as it

comes in. The State Highway Fund is used more for tracking items such as on State Route 63.

Mr. Kelley questioned emergency repairs for the water fund. If the water rates are set to cover

the anticipated operating expenses doesn’t that automatically put that fund in a negative balance

if we have a lot of emergency repairs? Mr. Brock advised that we know we are going to have

repairs through the year, but it is not a big concern. Mrs. Stillman so you budget based on the

number of repairs based on history? Mr. Brock replied that we do.


Mrs. Waggaman continued to explain that the enterprise funds keep whatever cash they have at

the end of the year.


Mrs. Waggaman provided a recap to show you the revenue that we are losing this year because

of the State Budget. The tangible personal property tax was scheduled to go out through 2018,

but a few weeks ago they published what we would receive and it is ending this year. It also

changed what we are getting for 2011. We used to get reimbursement for our fire levy that we

took off the tax roll and this year they decided to not reimburse us for that. Utility Deregulation

Reimbursement were reimbursing us each year and reduced what we are getting this year. For

2011 we are going to get 211,000 less from the State.


Mr. Brock pointed out we didn’t do anything wrong because we made decisions based on the

revenue we had and the growth that we anticipated.


Mrs. Stillman indicated she kept looking back over the decisions we made on spending and

based on what we knew and what we had is confident on the decisions she made. When that

playing field changes you have to be flexible on the changes. Some of the items needed to be

made up, such as paving the roads, but we didn’t go crazy with the spending when we got out of

fiscal emergency.


Mrs. Rubin commented that we have had several years of building our fund balance and it gives

us a little bit of room that other places do not have. The Local Government Fund was not

anticipated that the State would decide they would just not give us that anymore.

Mrs. Waggaman stated that the debt that we have issued over the last couple of years to purchase

equipment that was needed and, with the borrowing environment, we borrowed at the right time.

We made good use of our cash to just borrow it at that time. The rates would have been much

higher had we waited.


Mr. Kelley advised that at his place of employment one of the things he has been going to is

upgrading equipment during the downturn in the economy. Everyone in business are cutting

prices and the technology is better today. He has raised the fuel efficiency to about 4.5 per

gallon to almost 8 in 3 years. We can almost do that here. The longevity of the equipment is

going to be a lot better and fuel efficient. There is no reason you couldn’t start shifting towards

electronic models, for example.


Mr. Brock informed Council that we have asked all departments to look at their vehicles. We

ask that Council assist us in contacting the State such as the restrictive bidding requirements.

Over time, as with any other rules, it becomes more difficult for us to do our jobs and drives up

our costs.


Mr. Kelley wondered how many other municipalities we could rally together. Mr. Brock spoke

with other administrators, but it is the voice of the elected officials that is really needed.

Mrs. Rubin wondered that if you get rid of the bidding process how do you stop it from “now it

is going to my friend.” You still need to have some type of check in there. I understand that

when you have to bid them out there are too many regulations.

Mrs. Waggaman explained that with the TIF and RID money we can only use them on the

infrastructure, but we can’t we use it to maintain the infrastructure that was put in. She

understands the money is restricted so it isn’t used for operation, but it is as if they restricted it

too much. The School District doesn’t have the same restrictions as we do with the same

funding source.

Mr. Black asked if you have a list of the ideas of things you would want to go to the State. There

might be one great idea that no one is talking about.

Mr. Kelley asked if we had the ability on the website where you could create something that we

could access similar to Google Docs? Mrs. Wasson advised that we did. Mr. Kelley suggested a

grand opening of the new community room and invite some of these people here and sit down

with them and discuss our concerns.

Mr. Brock raised another concern that the arbitrators recognize that you have increased your

revenue by 5 percent and decide to give it to personnel.

Mrs. Stillman stated that if we are going to do a single list of things that we are going to be

talking about, give us that list of politicians, who they represent, contact email, and all you have

to do is pull it up. Mr. Brock advised the Ohio Municipal League’s website has all of that


Mr. Kelley liked the idea of the Google Docs. Mrs. Stillman thought it would help us coordinate

our efforts.

Mrs. Waggaman felt that establishing good relationships with other local governments is helpful

because they are all balancing their budgets and everyone is looking at more regionalism.

Mrs. Waggaman presented an updated forecast that shows the fund balance rapidly declining.

Mrs. Stillman asked if you accounted for where you are moving from General Fund to an

Enterprise. If it is rapidly declining because you are moving more to non general fund balances.

Mrs. Waggaman said no, it is only moving to fire, police, street, capital improvement. In 2007

35% was being spent of the General Fund and in 2011 it is 33% and in 2015 is 29%. If you look

from 2007 to 2011 was a much steeper incline. It is still going up, but not as much as it has in

the last few years.

Mr. Brock explained we have cut the operating costs. Comparing from 2007 to 2011, the City

Manager’s office you see a big decrease, but in 2007 we had more money in there for other

things that are not being spent out of the City Manager’s office. Development is pretty stable as

it is affected by building permits. Finance is stable and Dispatch has a slight increase due to

newer technology and two new dispatchers. We have included extra money in building and

grounds for new hvac units. Street, Fire, and Police are operating with less money than we were

in 2007 due to more staff, more runs, and responsibilities.

Mrs. Stillman noted we have also become more efficient.

Mr. Brock advised we have hit our limit on the operating side, but we will continue to strive to

remain constant.


In Personal Services, Mr. Brock explained that in the City Manager’s office two additional staff

members were added. In Development there were two additional staff members. Finance added

one. Dispatch added two. We have better tracking and allocation in park and recreation. In the

Street Fund we added four that we laid off during the fiscal emergency. In the Fire Fund we

added three additional firefighters, as well as, the contract increases that were given to help them

catch up to their peers. In the Police Fund we had the addition of seven officers as recommended

by the State, as well as, contract increases. It is not the operating side it is the personnel side of

the budget. An average of $67,000 for all employee costs per employee. We are trying to make

up 1.5 to 2 million just on personnel costs. 14 leadership positions are an average cost of

$101,000. Administration staff 15 positions average a cost of $58,000. Dispatch’s average is

$43,000. Operator/Laborer’s average is $47,000. Patrol Officers and Firefighters’ average is

$77,000 to $78,000. These include wages and benefits.

In response to a question from Mr. Black, Mr. Brock clarified that operating expenses are not

included in this figures..


Mr. Brock stated that as we start talking about what we do on the expenditure side and what do

we do on the revenue side, Council can pass legislation to bring the revenue in, but you can

affect the expenditure side with some direction on what we need to do. We are not asking you to

cut anyone.

Mr. Black asked about the State recommendations for police. Mr. Brock explained that the State

did a performance audit based on current population at that time.

Mrs. Rubin stated that we were short for awhile and asked if are we up to where we need to be in

police and fire? Mr. Brock advised the State did not recommend any additional staff in fire.

There is nothing to say they did it right they just said you are short compared to other

communities with similar demographics. He advised we are going through performance

measurements and will begin to compare ourselves to about 11 jurisdictions. He hopes to get

some good information to provide to Council.

Mrs. Rubin with police you will have extra because of the mall. Mrs. Stillman asked about the

high cost of gas were the police sitting more than driving around. She asked if there is a policy

out there that we shouldn’t be driving as much or are they sitting more. Mr. Brock advised they

are looking at driving habits to see if gas costs can be reduced.

Mr. Kelley advised that there is equipment you can add to cruisers and fire apparatus to prevent

the gas peddles from going all the way down until a switch is flipped to turn the lights on.

Mrs. Rubin asked about the idle time. Mr. Kelley replied that some of the fire vehicles already

have power packs. There are stand alone units. Mr. Kelley has cut about 100,000 out of trucks a

year just by reducing the idle time.

Mr. Black asked about the regulations are we up against by doing anything like this. Mr. Kelley

replied that the EPA is all about reducing their carbon footprint. There is technology that can be

invested in about 5,000 to 7,000 per vehicle and you can reduce the idle time to almost 9,000.

Mr. Black thought this may be a good time to introduce hybrid vehicles.

Mrs. Stillman referred to Firefighters/Paramedics/EMT hiring referring to Cincinnati recently

making sure they had the right people on runs. Chief Neu advised we still had EMT’s, but there

are paramedics on all shifts and the type of vehicle or staff is based on the information received

from the dispatcher.

Mr. Hickman asked if Liberty Township sends a truck and not a squad. If we had two at the

station and two in the squad you would need one more person. You are looking at safety and

your response time. Once the squad leaves you would still have that third person for the fire

truck. For fire there is not that many emergency runs. He felt that if you added one more person

that would be a benefit to the residents. Then you would not have to send a fire truck.

Mr. Kelley said we would just have to increase the fleet.

Mr. Brock suggested another work session to discuss the operation of the fire department.

Mr. Kelley asked about a collective fire company and if someone is short in Middletown or short

in the county you can move employees around. Mr. Brock agreed and felt that there is a lot of

consolidation that could take place and a lot of challenges. Mr. Kelley asked if we have a facility

that could handle dispatching for other municipalities or are there other municipalities that could

handle our dispatch. Mr. Brock advised that we looked at that a couple of years ago and there is

a cost savings, but the position of the Council was that we like having it here. They can be

dispatched from anywhere because our fire and police are familiar with the area.

Mr. Hickman referred to the City’s contract with Lemon Township and guessed it is not covering

what the cost is. Mr. Brock confirmed that it is not. Mr. Hickman asked if we have the ability to

ask for more or stop patrolling the area? Mr. Brock advised we can go back and renegotiate in

September; however, we would still be first responders. Mr. Hickman felt if cost is greater than

what we are receiving then our police department should remain in the City and only respond to

calls. Mr. Brock agreed, but without that revenue the expenditures do not change that much.

Mrs. Rubin understood part of the reason we have a second person on dispatch is if someone has

to run to the bathroom or has a medical emergency, but I don’t know that we can keep two

people busy. Maybe we can transfer the calls to Trenton because our dispatch will be away from

the office for 10 minutes, for example. Mr. Brock said there are times that it is too busy for one

person. The last time we spoke with Middletown about handling our dispatch they were not

going to add staff. Mr. Kelley asked that Warren County and Trenton be considered for a joint

dispatch service. Mr. Brock commented that Trenton had previously declined. Mr. Kelley

reminded him that things are different now, as well as, with Trenton. Mr. Hickman asked if it

would save us money to go to Butler County. Mr. Brock advised that it would. Mr. Hickman

pointed out that it would provide additional space for the Police Department. Mrs. Rubin said

we need to make it so we don’t get rid of our equipment in case we go back.

Mr. Kelley noted it would be good to have the equipment here in the event of a disaster. Mr.

Brock said we would study it.

Mr. Black suggested looking at the health insurance premiums and asked how our contribution

toward benefits compare with other municipalities. Mr. Brock advised we have been more

progressive in our plan in moving towards an HRA. A lot of places will give the City’s portion

to be used first and we require that the employees use their portion of the deductible first. We

are looking at options in relation to benefits.

Mrs. Rubin pointed out that the advantage of giving employees the benefits is they do not have to

pay taxes on that.

Mrs. Stillman asked if we provide life insurance at the City’s expense? Mr. Brock indicated that

it is paid by the City unless the employee requests additional insurance.

Mrs. Rubin asked if there were larger groups could we become a part of it for insurance benefits.

Mr. Brock was opposed to joining a pool because their experience has been bad over time.

Mr. Brock said other areas he is looking at is consolidation within our own City and if we are

doing two things in the same places can we converge that. Also, regionalism, part-time staffing,

and longer operational hours in the administration to save some money. Looking at

telecommuting, flexible work, which could save some energy cost, and hoteling. They schedule

an office and as we need to expand we could save money in the actual space we have to do the

work. With telecommuting and flexible work week, we cannot provide additional money so I

need to look at supplying benefits to the employees to help relieve stress. If they are not there

for citizens on a routine basis, like some of the back office staff, you could give them some

flexibility and save them some gas money. Mr. Hickman, so they would be working from home?

Mr. Brock, yes that is correct and just try to be flexible as technology allows us to do.

Mr. Black asked if there is a cost benefit to go into a four day work week? Mr. Brock said that is

what the flexible work week would be and is reviewing studies now. You would have to look at

the personnel and if you feel comfortable with them being here without supervision.

Mr. Hickman said that would all fall back on Mr. Brock and he could do that now. Mr. Brock

stated there are challenges in supervising a mobile workforce and he is bringing the departments

up to speed on.

Mr. Kelley advised you have to set priorities and schedule when things need to be completed. If

there is such a cost savings to it why have you waited until now? Mr. Brock responded that he

did not know if there is a cost savings. Part of it is we need more space. We need to expand the

police department.

Mr. Hickman doesn’t understand why we have those offices behind the Council Chambers. Mrs.

Stillman asked how often they are used. Mr. Black felt that you could take the Council office

and turn it into two offices. Mrs. Stillman felt if the Mayor needed a place to work he could use

another space in the building. She confirmed that Council is all in agreement that if not both at

least one of those offices are not needed. Mrs. Rubin felt they could be used by employees that

do not interact with the public frequently. Mr. Hickman felt the police department could use

both of those offices as there is a stairway directly to the police department. It was the consensus

of Council that they did not need an office.

Mr. Brock advised that the architect working on the new library/community room is putting

something together at no cost to utilize the existing community room.

Mrs. Rubin referred to equipment in Public Works that we do not use often, but is expensive. If

we had a county-wide type situation and each jurisdiction would pay something to use it. Mr.

Kelley suggested leasing it with a small residual at the end and everyone would share in the lease

payment and build the maintenance into the lease. Mr. Kelley said there would be a cost per

hour for equipment already purchased.

Mr. Hickman noted there are a lot of squad cars and asked if they are all being used. Mr. Brock

responded that they do not get used every shift. They get used two shifts and rest a shift. Mrs.

Stillman asked how many officers per shift. Mr. Brock replied three to four and we have a

couple of special use vehicles. Mr. Brock confirmed Mrs. Stillman’s understanding that out of all

of those patrol cars three to four are out and three to four are sitting there because they are

rotating them out. Mr. Black asked if there were opportunities to lease cruisers. Mr. Brock did

not know, but we will look at it.

Mr. Brock advised he will be speaking to the Public Works Committee to narrow down where

we mow. For example, we mow along Lebanon Street and other areas he is not sure why we

mow. We will be reviewing all of those services. Tree limbs that people place at the curb are

not picked up. They were picked up following the hurricane because that was a reimbursable

expense. Mrs. Stillman asked where the leaves are taken that the City collects. Mr. Brock

advised they are taken to Mulch Plus in Middletown and no cost.

Mr. Black asked if we have an opportunity to reduce what we spend on utility costs, such as

street lighting. Mr. Brock explained we would have to get an agreement through Duke as we do

not own the lights and we assess the majority of the costs to property owners. Mr. Black asked if

we have gone to more efficient fixtures for the lights we do pay for. Mr. Brock indicated that we

do as they are replaced.

Mr. Brock advised that we will be scheduling a Public Works Committee meeting to review the

water treatment plant.

Mrs. Rubin asked if it is less expensive to do all of the mowing in-house. Mr. Brock said we

would have to run through the cost analysis again.

Mrs. Rubin asked if we have any kind of rules that should be negotiated as far as how many

personnel should be on one job in the Public Works Department. Mr. Brock advised it is not in

the contract, but that is something the supervisors will handle. Mr. Brock indicated there is a lot

of work to do in the area of Public Works. Mrs. Rubin believes that supervisors should be doing

the work as well.

Mr. Hickman asked how many administrative staff is in Public Works? Mr. Brock advised there

is one part-time, one full-time, a Director of Public Works, a Supervisor of Streets, and we are in

the process of hiring an Engineering Technician.

Mr. Kelley asked if Mr. Brock has analyzed how long it should actually take for the mowing so

we have realistic numbers and it could be a performance standard to measure with. Mr. Black

stated that it puts the burden back on the one manager and it would take away ample time away

from more important issues.

Mrs. Stillman asked why the City doesn’t look to the existing volunteer organizations saying this

is what we need help with and seeking the help of the citizens. Mrs. Rubin felt that we have lost

that over the last few years. Mrs. Rubin and Mrs. Stillman felt that we could get people

interested in helping out in the community.

Mr. Hickman asked if you have talked to the department heads and requested a reduction. Mr.

Brock said he has every year. Mrs. Stillman suggested asking the department heads what they do

that could be accomplished by volunteers.

It was suggested to create a list of volunteer opportunities in the community. Mr. Black

requested that a Public Involvement Committee meeting be scheduled to discuss this.

Mr. Brock recommended that Council recreate the Public Safety Committee to look at some of

the items in the police and fire departments.

Mr. Black understood what our forecast looks like, but asked what we are comfortable with

leaving at the end of our forecast in the reserve? That will help us decide what we need to

enhance our revenue and how much we need to cut. Mr. Brock advised that we have talked

about four million dollars. Mr. Black said we know it cannot be $4 million. Mrs. Waggaman

explained the problem is having enough cash at the end of the year to operate the first quarter of

the following year. Our expenses are $800,000 just out of the General Fund, but we would need

$3.2 million or $2.8 million being the lowest. Mrs. Waggaman felt for planning purposes the

target should be $3.2 million. The issue is how steeply our balance is declining and you have to

allow any revenue enhancements to start coming in.

Mr. Brock stated that we will be looking at what areas of services we could offer other


Mrs. Waggaman said there are two main areas we can generate revenue. The income tax from

1.5% to 1.75% would generate an additional 1.2 million. Increase to 2% it would general 2.2

million dollars across all types of withholdings. Mrs. Hale asked if people would pass this in this


Mrs. Rubin felt that we have to give them a choice. We have to do the best job we can and if it

starts getting painful then we present it to the electors. Mr. Kelley felt an income tax would be

easier with the tax credit. Mrs. Stillman felt it was easier if you designate where the income tax

goes towards. Mrs. Waggaman advised that you could structure it so that a half percent would

go towards public safety. I would like to see a policy designating portions of our income tax

going to certain areas so no area gets short changed in any one year because it is an easy thing to

do. It protects us in future negotiations if we have a policy established designating a certain

percentage to each area.

Mrs. Waggaman stated that if you look at the numbers in the forecast you will see that we are

eating 200,000 to 300,000 in the reserve each year. It will probably look worse because it only

budgets a 2% increase in personnel costs and both police and fire have requested a 5% increase

each year in the negotiations. The income tax will grow as we grow; however, our need for

services will also grow. On the property tax, a new 1 mil levy with our tax rates for 2010 is

400,000 per year. We have a 1989 police and fire levy that was voted at 2.5, but effective is only

1.038 so we collected in $500,000 in 2010. On the ‘05 levy voted at 2, but because of the

reduction factor it is only 1.8 so it generates only a $100,000 more. My concerns with doing a

property tax replacement is we will have to go back for more. If we replace all three at the

original rates it generates 1.1 additional if everyone pays their property taxes and it will not grow

with us as we grow because of the reduction factors. Mrs. Waggaman explained that if we ever

begin collecting more money than we need with an income tax increase we can then take off

some of the levies.

Mrs. Rubin asked about income tax paid by people that live here. Some are getting taxed twice

when they pay income tax and property tax. She would like for us to have a 2% income tax and

give a half percent credit on the property taxes the residents pay, so they would not be paying

twice. For example, you are looking at building another fire station and not necessarily for the

people that live here, but for the people that work here. Mrs. Rubin did not feel it was right to

ask the residents to pay for that. Mrs. Rubin felt it was fair as it would be spread out more.

Mr. Hickman asked how much it would generate. Mrs. Rubin said it would be approximately 1.8

or 1.9 million. Mrs. Stillman advised that we did not know if this is legal.

Mr. Hickman wasn’t sure if anything could be passed at this time as 2% is a lot of out of some

paychecks. He noted that it will be tough to pass if you do not show people were we have cut.

Mrs. Rubin felt that we need to make cuts where we can.

Mr. Black asked if the City could look at the inside mileage as the school did. Mrs. Waggaman

advised that we collect everything we are allowed to collect.

Mr. Brock advised we are looking at the option of creating a paper township, which may create

some revenue. Mrs. Rubin asked how that would affect us. Mr. Brock stated there would be 1

mil of inside mileage.

Mr. Brock commented that he will be studying annexation of the prison. Mrs. Stillman asked if

the prison population is considered in the population figures of the City. Mr. Brock has not

analyzed any of this yet. Mrs. Rubin indicated that Monroe needs to be careful when they annex

property. Mr. Kelley asked about matching the boundaries of the City and the School District.

Mrs. Rubin agreed it would be nice to pass something jointly with the School District.

Mr. Kelley stated that the CIC talked about funds flowing between the CIC and the City, but the

CIC has the ability to operate for profit. He suggested that we have a real estate agent on staff

that could help development or a real estate agency where we could start buying and selling

property. This would help generate money for the City. With the CIC we have the ability to put

a business together that could generate money that isn’t bound by a lot of the rules the City is

bound by. He is not sure what the legalities are, but it would create some good revenue.

Mr. Black mentioned that the Governor is looking to allow corporate sponsorship. Mr. Brock

indicated that it was specifically for advertising on the website.

Mr. Kelley asked about the Police Department and Public Works Department and if there is an

accident, do we go after insurance companies if they tear up infrastructure and for the crash

work. Mr. Brock advised we only go after the insurance companies for the infrastructure and we

can review again billing for crash work.

Mr. Black asked about the fee schedule for moving violations. Mr. Brock advised that it is

amended every year to match the ORC.

Mr. Kelley asked about Mr. Brock’s recommendations. Mr. Brock stated we are going to show

you what cuts we can balance out with. He believes we are going to have to have an income tax

or property tax to generate the revenue. All of the suggestions are great, but it is not going to fill

the gap. Our recommendation is on the income tax side with cuts and reduction of services.

Mrs. Rubin explained that if you do away with a service it makes a difference as services were

still provided during the fiscal emergency.

Mr. Hickman asked what was done during the fiscal emergency. Mr. Brock stated the income

tax went up one-half percent, laid off four in the public works department, did not fill positions,

bought very little, and restructured our debt. We did not have the personnel costs that we do

today. Mr. Kelley said one of the other things we can do is with the recent foreclosed Vandercar

property you continue to have a discussion with anyone and make it understood that this needs

paid first. Mr. Brock stated that it may be a successor and we wouldn’t take any action. The

way we worked it with the school district, even if it would revert back to our options, we don’t

have the ability to do anything with the abatements without the school’s approval. Mrs.

Waggaman stated that there is a TIF District established so we will still collect any property tax

payments and we will still send the 45% to the school district. If the bank took it over the bank

is responsible for making the property tax payments. We will still get that money and the

schools are not affected by the special assessments.

Mr. Kelley moved to adjourn; seconded by Mrs. Rubin. Voice vote: six ayes. Motion carried.


The Special Meeting of Council adjourned at 1:54 pm.

Respectfully submitted,

Angela S. Wasson

Clerk of Council

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