City Council

MINUTES OF THE CITY OF BRISTOL,TENNESSEE CALLED CITY COUNCIL MEETING June 9,2020 CALL TO ORDER: The City of Bristol, Tennessee Called City Council meeting was brought to order by Mayor Margaret Feierabend on Tuesday, June 9, 2020 at 7:00 P.M. at Slater Community Center ROLL CALL: Present: Mayor Margaret Feierabend, Vice Mayor Mahlon Luttrell, Councilman Chad Keen, Councilwoman Lea Powers, and Councilman Vince Turner. Others Present: City Manager William Sorah, City Attorney Danielle Smith, City Recorder Tara Musick, and other members of City staff. INVOCATION AND PLEDGE OF ALLEGIANCE: Mayor Feierabend requested a moment ofsilence in memoriam of Police Lieutenant Keith Feathers who passed away over the previous weekend due to a heart attack. She then gave the invocation and Vice Mayor Mahlon Luttrell led the pledge of allegiance. PUBLIC HEARINGS: Mayor Feierabend opened the public hearing. Ordinance 20-7 - An Ordinance to Adopt a Budget, and Appropriate Funds for the Fiscal Year July 1, 2020 through June 30,2021 City Manager Bill Sorah summarized Ordinance 20-7 is considered on second reading for formal adoption of the Fiscal 2021 Budget and Appropriations ordinance for the fiscal year beginning July 1, 2020. The Fiscal 2021 Budget totals $135,511,831. This reflects an increase of $14,453,299 or 11.9% from the Fiscal 2020 Budget. In addition. Ordinance 20-7 establishes the property tax levy at the current rate of$2.1612 per $100 ofassessed value. The proposed budget maintains the current solid waste fees, stormwater fees, and water and sanitary sewer rates. The municipal government portion of the budget stands at $73,640,367 an increase of $11,627,875 or 18.8% from the Fiscal 2020 Budget. The majority of this increase is related to a refunding of approximately $9.5 million that will be discussed later on the agenda and will provide significant savings over the remaining life of the General Obligation Bond. The proposed budget focuses on the key themes of economic development, education, infrastructure, and public safety. The budget continues all City programs and services as in the past while making strategic capital investments to meet the future needs of the community. Major projects, most of which are funded either partially or completely by grants, include the redevelopment of the 700 block of Shelby Street, reconstruction of East Cedar Street, relocation ofa portion of Island Road,construction ofsidewalks along Virginia Avenue from East Cedar Street to Hazelwood Street and Bluff City Highway from Edgemont Avenue to Lavinder Lane, improvements to the bio-solids handling process at the wastewater treatment plant, and the resurfacing of approximately thirteen lane miles of roadway. Key partnerships include the continued development of Tri-Cities Airport's Aerospace Park, site development at Bristol Business Park, and improvements at  Called City Council Meeting June 9, 2020 Page 2 of6 Partnership Park II. The proposed Fiscal 2021 includes a 1% cost of living adjustment for City employees. The school system portion of the budget totals $61,871,464, an increase of $2,825,424 or 4.8%. This increase is primarily attributable to the $2,570,205 increase of funds in the School Capital Facilities Fund. This fund accounts for the disbursement ofproceeds from the Sullivan County school construction bonds and will be available for the continued construction of the new middle school. This ordinance was approved on first reading at the June 2"^ meeting and second reading is later on the agenda this evening. Mayor Feierabend read a statement from Jerry Caldwell of Bristol Motor Speedway who had planned to be in attendance but was unable to do so. Me requested his comments be shared during the public hearing. In regards to Convention and Visitors Bureau(CVB)funding, he would like City Council to seek input from community business and tourism attractions as to what they see as value to them from CVB efforts. He would like for all involved parties to meet to discuss the value of tourism marketing and CVB and work to find the best path forward. There were no further public comments and the public hearing for Ordinance 20-7 was closed. The Mayor then opened the public hearing for Ordinance 20-8. Ordinance 20-8 - An Ordinance to Amend the Appropriation of Funds and Budget for the Fiscal Year July 1, 2019 through June 30,2020 The City Manager summarized Ordinance 20-8 is basically a housekeeping measure that amends the Fiscal 2020 Budget and Appropriation Ordinance for the General Purpose School Fund,School Nutrition Fund, Electronic Citation Fee Fund, Solid Waste Fund, Debt Service Fund, and Capital Equipment Fund. The amendments reflect increased revenues or expenditures beyond those originally anticipated during the development of budgets for the respective funds. The General Purpose School Fund is proposed to increase by $630,000 due to increased capital outlay and operating costs. The School Nutrition Fund is proposed to increase by approximately $140,000 to reflect additional operating costs. The Electronic Citation Fee Fund will increase by $3,875 to reflect additional revenues beyond those originally budgeted. The Solid Waste Fund is proposed to increase by $229,840 to reflect increased tipping fees associated with disposal costs and equipment repairs. The Debt Service Fund is amended to refleet the refunding of $6,215,000 of General Obligation Bonds during Fiscal 2020, and the Capital Equipment Fund is proposed to increase by $96,450 to reflect the acquisition of the new stage for the Downtown Center. There were no public comments and the public hearing was closed by Mayor Feierabend. ORDINANCES AND RESOLUTIONS: A. Second Reading of Ordinances: Ordinance 20-7 - An Ordinance to Adopt a Budget, and Appropriate Funds for the Fiscal Year July 1, 2020 through June 30,2021 Councilman Chad Keen asked City Manager Bill Sorah to explain the budget calendar and how it has changed due to COVID-19. The City Manager clarified the changes to capital and personnel and detailed  Called City Council Meeting June 9, 2020 Page 3 of6 how the budget process had to be adjusted this year. Appropriations will be on the June 23'^'^ work session and on the July agenda. Councilman Keen questioned what percentage has historically been given to the CVB and the City Manager replied normally 50% although that percentage has varied at times. Councilman Keen then asked why that percentage has been changed to 40% for the coming year. Mayor Feierabend asked for a motion so this item could be opened for discussion. Councilman Turner made a motion and Councilwoman Powers seconded. Councilman Keen asked Council why 40% was selected. Councilman Turner explained the occupancy tax had been decreasing over the pasts few years even prior to COVID-19. The dollar amount was selected based on the projected occupancy tax for the next fiscal year then the percentage was backed into. He also felt that since Bristol, Virginia appropriated only 5%,a reasonable percentage for Bristol, Tennessee was 40%. Vice Mayor Luttrell concurred. Councilwoman Powers reviewed some of the previous amounts appropriated for various groups and explained that Believe in Bristol and Bristol Country Music both had deep cuts from the City of Bristol, Virginia. Councilman Keen reviewed statistics of Bristol, Tennessee and Bristol, Virginia funding of CVB. He would like one agreement between both Cites and the CVB with a specific percentage of the occupancy tax designated by each City for the CVB, which could be adjusted. Councilwoman Powers commented there are other non-profits that receive appropriations which also provide marketing dollars that have experienced cuts as well. There is an inequity in contribution percentages from the Cities and it is not fair to fund more but have less representation. There is no oversight of the CVB other than the Chamber of Commerce and the two Cities are the fiduciary stakeholders, the stewards ofthe people's money. If the CVB were a department of the City, had shown a decline over three years, and did not provide the information that was repeatedly requested by Council, there would be real change to that department. The CVB has stated repeatedly it considers itself to be the marketing arm of both Cities. Council has given and given, has asked to see detailed budgets, to see PowerPoint presentations that were shown to others, and asked for data points with nothing received. The City is not statutorily required to give anything to any of the non-profits. These appropriations are all benevolent money which Council, as good stewards that have studied the budget, are allocating on behalfofthe people of Bristol, Tennessee for the purpose ofeconomic development as related to tourism. She suggested the creation of an autonomous board the director of the CVB would answer to with that board responsible for making financial decisions, reviewing the data points, and empowering that director. The Bristol, Tennessee Council members have all been contacted and met with Chamber representatives. Chamber representatives have contacted only one of the Bristol, Virginia Council members under the same circumstances and in the same manner. Council is asked to give the appropriation, attend a meeting once a quarter where the finances are not clearly laid out, and no voting. There is City representation on other boards with voting ability. It is up to Council to hold themselves accountable for their fiduciary responsibility. Vice Mayor Luttrell said he would be okay with either 40% or 50%, if it is the will of the Council. He agrees at some point there has to be some oversight in this process. Council needs to be able to have some direction over how this money is spent and he feels Bristol, Virginia would agree. Councilman Turner suggested leaving the percentage at 40, but make it performance based. Leave the current dollar amount based on projected occupancy tax revenue as it stands, but if CVB efforts increase occupancy tax revenue give them 40% of the additional revenue. The occupancy tax revenue has been decreasing, but if they bring in more with a new director reporting to a different board let them have 40% of that increased amount without any cap. This would make it performance based.  Called City Council Meeting June 9, 2020 Page 4 of6 There was additional discussion between some of the Council members. Then Mayor Feierabend asked City Manager Sorah since the discussion had turned more toward specifics of the appropriation agreements would it be better to continue this line of discussion at the June 23'^'' work session and he concurred. He stated there were still a couple of issues remaining on the current agenda that had not been addressed. Ordinance 20-7 is still waiting on a vote. The decision for 40% versus 50% can be addressed when the specifics of the individual agreements are clarified, which is an agenda item for the upcoming work session. Councilman Keen agreed. He then asked where the suggestion of40% came from and requested Council consider changing the percentage to up to 50%. He suggested obtaining current financial statements from all the non-profits instead of the audits. He was pleased a 1% cost of living increase for employees was added back to the budget as he felt that was very important. Councilman Keen suggested there should be fair representation on all the boards and referred to the creation of an autonomous board for the CVB mentioned earlier. It was stated there is currently representation on all the boards. Councilwoman Powers clarified that her meaning of'fair representation' in this instance was the primary job of the CVB is a marketing entity of economic development and that is not the primary focus of the other entities. Councilman Keen continued by stating he has had conversations over the last couple of years with CVB about a new funding mechanism that includes the Cities, but also includes stakeholders, private businesses within the tourism area, and hoteliers. He would like to see what they come up with and move forward in an open-minded manner. Councilwoman Powers replied Council has been waiting for three years for this new funding mechanism to be put into place. Since Council has discussed their own funding mechanism everyone now seems ready to act which is a good thing. Mayor Feierabend agreed meeting with the CVB and the City of Bristol, Virginia was a good idea and would like for that to take place as soon as possible. The model of an autonomous board is one that is commonly used but it would need to be comprised of the right people from the CVB and they would need to be engaged in participation even if they are not voting. Councilwoman Powers said staff is researching various successful models that are similar to what Council discussed earlier so the model for a board of oversight can also be discussed later. Councilman Tuner reminded everyone the budget can be amended anytime throughout the fiscal year. Mayor Feierabend stated the Council does not like mandates and the sooner everyone can meet and get on the same page, the better. She thanked staff for all the hard work, especially this year with all the unknowns. Ordinance 20-7 was approved unanimously by roll call vote. Ordinance 20-8 - An Ordinance to Amend the Appropriation of Funds and Budget for the Fiscal Year July 1, 2019 through June 30,2020 Councilman Chad Keen motioned to approve and Vice Mayor Luttrell seconded. Ordinance 20-8 was then approved unanimously by roll call vote without further discussion. B. Resolution: Resolution 20-40 - A Resolution Expressing Intention to Contribute Funds to BTCS New Middle School City Manager Bill Sorah explained that Resolution 18-96 addressed a contribution to the construction of the new middle school, but was a little unclear as to the actual commitment of the City. Resolution 20- 40 provides clarification and formally pledges City Council's commitment to provide $2,500,000 to the  Called City Council Meeting June 9, 2020 Page 5 of6 City's new middle school construction. The estimated cost of the new middle school, including site acquisition, design and construction, totals $36,127,032. Approximately $27,008,879 is available from the City's portion of the proceeds from the Sullivan County School Construction Bond. As per discussions in 2018 with the Bristol Tennessee Board of Education, the Council desired to provide additional funding to meet the construction needs for the new middle school. Resolution 20-40 clarifies that contribution and formally repeals Resolution 18-96 which contained some ambiguity. Council woman Powers motioned to approve Resolution 20-40 and Councilman Turner seconded. Councilwoman Powers is glad for the clarification and Councilman Keen thanked Council for ensuring the school system was clear on the intent. Mayor Feierabend mentioned that education is very important to this Council and she thanked everyone for working toward providing the best education environment possible for the students. There was no further discussion and the resolution was approved by unanimous roll call vote. CITY MANAGER COMMENTS: City Manager Sorah reminded everyone about the iive' work session at 11:00 A.M. on June 23^^^ which will be held at the Slater Community Center Cafeteria to enable social distancing. There was Council discussion about the possibility of holding other future meetings electronically, but it was clarified that Council meetings can be held electronically only through June 30, 2020 by order of the Governor and then must be held live unless that order is extended. On Thursday, June 25"^ at Noon in the Steele Creek Lodge there will be a residential incentives symposium for area contractors and real estate agents to obtain feedback about residential development in the area. The purpose is to see if there are any obstacles to development and if so how could they be remedied. The current incentives will be reviewed as well as possible property for development inside the corporate limits as well as outside, but still in close proximity to existing sanitary sewer. Councilman Keen asked if the housing plan was going to be released prior to this meeting. The City Manager said residential incentives has been an on-going dialogue with Council and is on the agenda for the work session on the 23^^^ but it continues to be a work in progress with Council to determine how to proceed with enhancing some of the incentives. The meeting on the 25"^ is to have dialogue and solicit input from the residential developers to help with this process in trying to stimulate housing construction in our community. It is important to have that information as Council reviews building codes and incentives. CITY COUNCIL COMMENTS: Councilwoman Powers reiterated this Council fully supports tourism in Bristol and recognizes it as the economic engine that it is. She wants to build the best possible opportunity to facilitate tourism throughout the state, nation, and globally. We have a global story to tell and she agrees with Mr. Caldwell that we must determine how we are going to build the best organization we can which is accountable and transparent to move our community forward through economic development based on tourism. Councilwoman Powers said Dr. Tudor did a presentation for the Rotary Club earlier in the day about the new middle school construction and she congratulated the school system on a beautiful facility. She then expressed her sympathies for the family and co-workers of Lieutenant Keith Feathers.  Called City Council Meeting June 9, 2020 Page 6 of6 Councilman Keen asked if there is a June 23^'^ meeting about the trail system and the City Manager replied not to his knowledge. Mayor Feierabend thanked City employees for serving the public. There being no further business, the meeting was adjourned at 8:1 1 P.M. 6^ t Tara E. Musick, City Recorder