Macedonia Moves Ahead on OPBA Agreement
By Emily Chesnic
A company first beginning in Northeast Ohio in 1938 not only is committed to keeping its corporate headquarters in the City of Macedonia but also expanding – creating more local jobs despite the COVID-19 pandemic.
At the Nov. 12 regular meeting, City Council unanimously approved a Job Creation Program Grant agreement between Macedonia and the Royal Chemical Company, located at 8679 South Freeway Dr.
The more than 80-year-old company – that began by manufacturing laundry detergent in the City of Cleveland – was looking into options outside the city for an expansion project but was willing to stay and grow in Macedonia after discussions concerning the grant program, said Mayor Nick Molnar.
“They looked at different entities but after many negotiations we put the program in front of them and the company decided to stay here and expand. We are happy to keep this great company in town,” he said.
Currently, Royal Chemical, which established a production facility in Macedonia in 1972, has a $3.9 million payroll, with an anticipated increased payroll of $1.5 million after adding 120 new, full-time jobs during an eight-year period, said Molnar.
According to the approved legislation for the grant, Royal Chemical will be entitled to receive an annual payment equal to no more than 50 percent of the total payroll taxes paid to the city for the duration of the agreement. Molnar said the amount may not be more than $18,750 per year of the agreement, which will end Aug. 31, 2028.
If Royal Chemical decides to move its operations from the city during the duration of the agreement and fails to meet the grant program obligations, the company would reimburse the city an amount equal to all benefits received within 30 days of the move, explained Molnar.
“There are good checks and balances in place,” he told Council. “I am proud to have them in town and appreciate the support to keep them here.”
In addition to Macedonia, the company has chemical mixing plants in Pennsylvania, Tennessee, Texas, and California.
Also concerning economic development in the city, Macedonia introduced, at the meeting, legislation for a tax increment financing agreement between the city and Cleanland Car Wash, soon opening on South Freeway Drive, next the north entrance ramp to Interstate 271. Molnar said the agreement – allowing the company to make service payments for a period in lieu of taxes – would put dollars back into the area, funding roadway improvement projects in the city.
Additionally, on Nov. 12, Council continued to review the proposed city budget for 2021, holding another hearing to get questions addressed before passage of the document by the end of the year.
OPBA Agreement
Also, at the regular meeting, Council accepted terms set forth in a factfinder report to finalize negotiations between Macedonia and the Ohio Patrolmen’s Benevolent Association (OPBA), representing the city’s patrol officer and sergeant bargaining units.
Molnar said the city’s negotiations for a new contract with OPBA began amid the COVID-19 pandemic and resulted in the use of a factfinder, appointed by the State Employment Relations Board (SERB) to resolve outstanding issues between the two parties.
“Given the uncertainties of the pandemic, we had trouble, so these recommendations are what we are going with,” he told Council.
Molnar said the factfinder concluded on terms beneficial for the city and OPBA. According to the approved report, the city’s employees of the units will receive a 2 percent pay increase for 2020; a 2 percent increase in 2021; and a 2 percent increase in 2022.
Health Care for City Employees
The city is entering into a contract with the Ohio Government Benefit Cooperative to provide health insurance coverage for City of Macedonia employees.
Molnar thanked Human Resource Manager Annette Smith for “working countless hours getting the contract together to do what is best for the employees.”
While Macedonia has had to pay an additional $150,000 in healthcare insurance costs the past two years, the new contract is decreasing the city’s cost by 3 percent – still allowing the employees to keep the same coverage they had – he said. Molnar added the city would have had a 13 percent increase in cost if it would have stayed with the previous insurance provider.
“This is a very good program and a very good provider,” he said.
Molnar told Council the city would be able to stay long-term with the new provider to establish consistency for the employees.
Leaf Collections
COVID-19 Pandemic
Molnar said the city has a plan in place should Summit County go to the “purple level” – a concern as COVID-19 cases are spiking. Changes could be made at City Hall at some point to further protect Macedonia’s safety forces from the illness, so they are able to continue to provide services to city residents, he said. Because of this concern, the fire department will not be able to do its annual Santa Claus event. This is being canceled to help keep the first responders from getting ill, while protecting the community, as well, said city officials.
Other Meeting News:
• Molnar thanked voters for passing Issue 20 in the Nov. 3 General Election, allowing the city to continue to afford operations.
• Council approved removing two, well-used city vehicles from inventory, disposing of them through a public auction.
• Council officially canceled the Nov. 26 and Dec. 24 regular meetings for the holidays.
• City officials expressed appreciation for area veterans, as Nov. 11 was Veterans Day.
• Molnar announced the city received an award for asphalt paving excellence for the Valley View Road reconstruction project.
• City officials discussed the likelihood of continuing to hold public meetings remotely, as COVID-19 cases continue to rise.
• It was announced one lane on Shepard Road remains closed for storm drain culvert repair work.
