Cleveland City Council

p. 156 REGULAR SESSION JUNE 16, 2016 3:00 P.M. MINUTE BOOK 28 BE IT REMEMBERED THAT THE CITY COUNCIL OF THE CITY OF CLEVELAND, TENNESSEE MET IN A REGULAR SESSION THIS THURSDAY, JUNE 16, 2016 AT 3:00 P.M. AT THEIR REGULAR MEETING PLACE IN THE CLEVELAND MUNICIPAL BUILDING. Present and presiding was Mayor Tom Rowland. Also present were Councilmen Charlie McKenzie, Bill Estes, Avery Johnson, David May, Jr., Dale Hughes, Richard Banks and Vice Mayor George Poe. Others in attendance according to the sign-in sheet were as follows: Interim City Manager Melinda Carroll; Finance Director/City Clerk Shawn McKay; City Attorney John Kimball; Sue Zius, Assistant to the Mayor/Legislative Liaison; Christy Bryant, Support Services Manager, Fire Chief Ron Harrison; Jonathan Jobe, Director of Development and Engineering; Public Works Support Services Manager Kristi Powers; Parks and Recreation Director Patti Petitt; Police Chief Mark Gibson; Kris Miller, IT Director; Tim Henderson and Tad Bacon with Cleveland Utilities; Doug Berry and Gary Farlow with the Chamber of Commerce; Brian Moran, Social Media; City Reporter Randall Higgins; Pam Edgemon; Larry Wallace; Larry Bryant; City School Board Member Charlie Codgill; Hal Taylor; Interim Director of Schools Cathy Goodman; Kelly Kiser; Bradley County Commissioners Milan Blake and Johnny Mull; Matt Ryerson; Andy Brown; Erwin Lowe; Lynn Voelz; Roy Roman; Anne and Sam McReynolds; Sherry Crye; Mike Callaway, Bethany McCoy with Lee University; Roger Jenne; Tom Cassada; Dustin Tommey; Joyanna Love with the Cleveland Daily Banner. Following the Pledge of Allegiance to the American Flag and prayer by Pastor Hubert Seals, the following business was then entered into: WAIVE READING OF MINUTES Councilman Johnson moved that the City Council of the City of Cleveland waive the reading of the minutes of the Regular Session of the City Council held on May 23, 2016 and approve them as written. The motion was seconded by Councilman May; and upon roll call the motion unanimously passed. Councilman Banks moved to appoint Joe Fivas as our next Cleveland City Manager. The motion was seconded by Councilman Hughes. Councilman May stated he liked all four candidates but didn’t realize we’ve have a motion right out of the chute. He feels though it is important they make a move today. The committee and the process we went through, we were extremely fortunate to have quality people and is happy with all four candidates. Councilman Hughes stated we had 65 applicants and it was narrowed down to four and all of them are quality people. He feels Mr. Fivas will bring more to the table for Cleveland than any other applicant. Councilman Johnson stated out of the four Mr. Fivas was his least likely but they are all well qualified. The committee did an excellent job. Councilman Johnson then offered a substitute motion to appoint Angie Carrier as City Manager. The motion was seconded by Councilman May. Upon roll call of the substitute motion, Councilman Johnson and Councilman May voted aye. Councilmen McKenzie, Estes, Hughes, Banks and Vice Mayor Poe voted no. Mayor Rowland asked for a vote on the original motion to appoint Joe Fivas as City Manager. Councilman Estes confirmed the motion was to enter into negotiations. Councilman Banks stated to appoint Mr. Fivas subject to coming to terms on a contract. Upon roll call, the motion unanimously passed. Mayor Rowland asked the City Council to write down what one thing they feel is an asset to the community, other than people. The results were: people and family, community leaders, diversity of industry including Lee University, one spirit as a community, safety, Lee University, low taxes and workforce. Mayor Rowland stated we have a lot of good things going for our community. p. 157 REGULAR SESSION JUNE 16, 2016 PAGE -2- MINUTE BOOK 28 PRESENTATIONS, PETITIONS AND COMMUNICATIONS FROM MAIL Councilman Estes moved to declare the service weapon of Lt. Steve Weber as surplus property effective upon the date of his retirement this year and hereby given to him as a token of the City’s appreciation for his years of dedicated service to the City of Cleveland’s Police Department. The motion was seconded by Councilman May; and upon roll call, unanimously passed. Mayor Rowland stated everyone has received a copy of the State Form CT-0253 – Refunding Bond Series 2016A ($4,587,360) and Refunding Bond Series 2016B ($7,484,640) in their packets and no action is necessary. Mayor Rowland stated we have received the following letter from Mainstreet Cleveland regarding 266 Inman Street. CONSENT AGENDA Mayor Rowland reviewed the items on the consent agenda.  Final Passage - Zoning Ordinance No: 2016-19 – heretofore passed on first reading May 9, 2016 and found in Minute Book 28, Page 144; rezoning 2.0 acres described as a portion of the west side of Blythe Ave SE between 18th St SE and 20th St SE from IH Heavy Industrial to MU Mixed Use Zoning District (Planning Commission: Approved 4-0; 2 members recused; 3 members absent).  Final Passage - Zoning Ordinance No: 2016-20 – heretofore passed on first reading May 9, 2016 and found in Minute Book 28, Page 145; rezoning 2.2 acres described as a city block, bounded by 1st St NW on the north, Worth St NW on the east, Inman St on the south and Oak St NW on the west, from MU Mixed Use Zoning District to CBD Central Business District Zoning District (Planning Commission: Approved 6-0; 3 members absent). p. 158 REGULAR SESSION JUNE 16, 2016 PAGE -3- MINUTE BOOK 28  Final Passage - Ordinance No: 2016-21 – heretofore passed on first reading May 9, 2016 and found in Minute Book 28, Page 152; Rezoning about 1.5 acres located at 3581 Cove Lake Dr from the unincorporated county to R1 Single Family Residential Zoning District (Planning Commission: Approved 6-0; 3 members absent).  Resolution No: 2016-57 – Approving Cleveland’s participation in the Tennessee Valley Authority’s Valley Sustainable Communities program and authorizing the Mayor to sign any necessary documents. RESOLUTION NO: 2016-57 RESOLUTION TO APPROVE CLEVELAND’S PARTICIPATION IN THE TENNESSEE VALLEY AUTHORITY’S VALLEY SUSTAINABLE COMMUNITIES PROGRAM WHEREAS, the City of Cleveland participates with other individuals, agencies, and group to enhance sustainability by preserving and improving economic, environmental, and social conditions in various ways; and, WHEREAS, the City of Cleveland has the opportunity to receive assistance in cataloguing and marketing the community’s sustainability efforts, and receiving professional advice on the improvement of the same, through the Tennessee Valley Authority (TVA)’s Valley Sustainable Communities Program; and WHEREAS, the City of Cleveland stands to improve in its efforts toward economic development by making known the community’s efforts toward sustainability, NOW, THEREFORE, BE IT RESOLVED, that the City Council of the City of Cleveland, Tennessee does hereby: Approve the City’s participation in the Valley Sustainable Communities Program and authorize the Mayor to sign such documents as may be necessary for participation. Approved this 16th day of June, 2016. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk Vice Mayor Poe moved to approve the Consent Agenda. The motion was seconded by Councilman Hughes; and upon roll call, the motion unanimously passed. Vice Mayor Poe added at the Planning Commission meeting, no one was in opposition to the rezoning requests. REPORTS OF MAYOR AND COUNCIL MEMBERS Vice Mayor Poe asked for an update on the burnt house located on Hunter Trail. It has been turned over to the building department. Mr. Jobe stated he would have a memo for the next agenda. Councilman McKenzie thanked all who served on the City Manager selection committee and glad the process is over. Councilman Estes stated he has received many positive comments concerning the greenway extension and thanked all those involved. Secondly, he has asked City Attorney John Kimball to prepare an ordinance regarding the local fee on wine sales in the City of Cleveland. p. 159 REGULAR SESSION JUNE 16, 2016 PAGE -4- MINUTE BOOK 28 Councilman May asked how the negotiations were going to take place now that a new City Manager has been selected. Vice Mayor Poe stated last time the committee negotiated terms. Councilman Banks added last time we drew numbers to see who would negotiate along with the Personnel Director and a member of the committee. Councilman Estes stated he would like to see Jeff Davis, Larry Wallace and one Councilmember enter into negotiations. The Councilmembers then placed their district numbers in a hat and Rodney Fitzgerald drew a number. Councilman Hughes was chosen, along with Jeff Davis and Larry Wallace to enter into negotiations with Joe Fivas for City Manager. Councilman Hughes stated Shane Bonner from Forestview Drive has received all the necessary permits to build a deck around his swimming pool. He visited the residence and didn’t see why the building department had held the process up. Councilman Hughes then thanked his committee appointee Erwin Lowe for serving, attending all the interviews and for showing a great deal of interest. Councilman Banks thanked everyone involved in the process of selecting a City Manager. Larry Wallace was the facilitator and put boots on the ground talking with people about the four candidates. Everyone gave Mr. Wallace a round of applause. The committee members who served were Erwin Lowe, Beverly Johnson, Donald Humes, Joe Cate, Danny Chastain, Roger Jenne and Scott Taylor. A round of applause was then given for the committee members. Councilman Banks continued he received a request from a business owner that the island median on South Lee Highway, right below the Dodge dealership has 2 foot of weeds. Also, a request for staff to look at an old camper parked at Harle and Willow on the street. He then stated Chief Gibson was praised in Wednesday’s editorial in the Banner. Chief Gibson has brought calmness and the professional spirit back to the Cleveland Police Department. The community is impressed with him and all his hard work. As far as the process for selecting a City Manager and grading scale, we know Shawn McKay had applied. He has discussed with Mr. McKay about the budget several times and this city is in good financial hands with Shawn McKay running the numbers. We don’t know what Mr. Fivas will do if he is here as City Manager but hopefully he will recognize Shawn McKay and his financial skills. Looking at other cities our size they have a CFO and several have two Assistant City Managers. For the record, that would be a wise move for the City of Cleveland to keep Melinda Carroll as the operations Assistant City Manager and to create a position for CFO/Assistant City Manager. Mayor Rowland agreed. Councilman Hughes stated he would like to make a motion to do just that. City Attorney John Kimball stated typically creating a position is done by written resolution, which we can have at the next meeting. Councilman May asked about the job description. Mayor Rowland replied the same thing he is currently doing, just giving the CFO/Assistant City Manager title, which better explains what he does. Councilman Banks stated the one thing that impressed him about Mr. McKay is when we were dealing with an emergency situation with the arena. There were not four votes for a property tax increase but we had to do something. Based on what he knows, Mr. McKay is the one that figured out the numbers without a property tax increase. That is why he should be CFO. Councilman Banks then moved that Mr. Kimball prepare a resolution to create the position of CFO/Assistant City Manager for the next meeting. The motion was seconded by Vice Mayor Poe. Councilman Estes asked that Mr. Davis look at updating the job description and bring back at the next meeting. Councilman Banks included that in his motion. The amendment was seconded by Vice Mayor Poe. Upon roll call, unanimously passed. Mayor Rowland stated we have lost a great member of our Fire Department family, Lt. Gil Frederick. Many Fire Departments from over the south were at the memorial service. He then asked for a moment silence. He will be missed. p. 160 REGULAR SESSION JUNE 16, 2016 PAGE -5- MINUTE BOOK 28 NEW BUSINESS AND ORDINANCES Larry Wallace addressed the Council regarding additional background checks for Mr. Fivas and suggests a physical examination, psychological, drug test and some type of a judgement/values measure test. Vice Mayor Poe stated while the selection process was happening he received emails and letters from people concerning the process, which was followed all the way to the end. Also, they were asking for a decision to be made today. He feels the Council has done what the citizens want. Mr. Wallace stated he has been here since March 2015 and has received several assignments. All Councilmembers and the Mayor have been 100% supportive and none have ever interfered in any way, which has allowed him to be transparent as possible. He thanked everyone and wanted to recognize the type of people we have, included Melinda, Shawn, John and all Department Heads. He has not received one negative bit of attitude from anyone in the City of Cleveland and is extremely appreciative. He applauded all for their cooperation. Any one of the four candidates were qualified and you’ve made your choice. My job was to give you information to help you make an informed decision. Councilman Banks asked Mr. Wallace if he could work to get the additional test so we can say we’ve done all our due diligence. Mr. Wallace stated yes, at some point he will need to bow out gracefully but will not leave in the middle of the process. The audience then gave Mr. Wallace a round of applause. Councilman May stated he certainly has enjoyed dealing with him with the many projects. It means a lot to Cleveland. Councilman May stated when we decided to appoint Melinda Carroll as Interim City Manager it was decided she would draw the salary of the City Manager. The way he understands it she received one step in pay and for some reason there seems to be a miscommunication with the Personnel Director. Mayor Rowland stated the motion was to continue with the same salary as Janice, which is in the minutes. Jeff Davis stated he would make the correction. Mayor Rowland then read the following letter from Chairman Louie Alford regarding shared education funding: p. 161 REGULAR SESSION JUNE 16, 2016 PAGE -6- MINUTE BOOK 28 Mayor Rowland then read the following response letter from Janice Casteel: Mayor Rowland stated he understand City Attorney John Kimball and Attorney Doug Johnson have rendered an opinion. Mr. Kimball read the following from CTAS, which is the County manual. p. 162 REGULAR SESSION JUNE 16, 2016 PAGE -7- MINUTE BOOK 28 Mr. Kimball continued the state statute referenced would require such waiver to be done by ordinance, which of course has to be prepared in advance in writing. Also, this publication suggests before a system would waive their right to funding the school system in question should be consulted. My suggestion would be you, at a minimum, would want the input of your own city school system before you’d ever consider such an act, which again couldn’t be done without an ordinance. Councilman Estes stated he would like to seek an opinion from Mr. Johnston on how to respond to this as a municipality, based on his previous experience on county/municipality relationships. Councilman Banks asked Commissioners Blake and Mull why they need a waiver. Is there any question or an opinion from the county attorney that you need this? Commissioner Mull stated they have talked with the county attorney and basically the waiver is saying we’re in agreement, since the payment for this comes from funds that have already been divided and that you agree, basically, you have no claims to the funds. Basically, common courtesy to you guys instead of us just pushing it through. We thought that would be a good idea. Mr. Kimball stated I would suggest to you, and I have not talked with Ms. Freiberg if that is who Mr. Mull is referring to, but I would suggest that I doubt Ms. Freiberg would have a different opinion of what I just read to you out of the County Technical Assistance Manual, which is written by the group they routinely follow. If she does perhaps she can give it to you in writing and give you the basis for it. Councilman Banks stated Milan explain this, you two are county commissioners and most of your constituents are city residents. Why should we do this? Commissioner Blake responded the thing is to avoid any legal ramifications. We just thought it was very simple. In the interest of being open I wanted you to know how this $18 million dollar project is going to be constructed and how it’s being financed. We already, out of the $1.87 tax rate 59 cents goes to county schools and 26 cents goes to city schools, so the portions have already been allocated. We are using the 59 cents that goes into the county schools utility line to pay for this bond. It’s already been filtered. The 26 cents has already been distributed so we are asking county schools to use their money to fund this. It just so happens the law requires us to actually go issue bonds. So, I wanted you guys to know what was going on and a waiver is a way to make sure everything is nice and neat and an appropriate action. Councilman Banks stated but the county taxpayers, including city residents and including me, will be on the hook for $18 million. Now, how is that going to get paid? Commissioner Blake replied it will be paid out of the utility line item that has been appropriated to county schools. Councilman Banks stated that comes out of the general fund. Commissioner Blake replied no, out of the tax rate. The general fund is what we operate from. Mr. Kimball stated if there ever is a default on the payment the full faith and credit of the citizens of Cleveland and Bradley County would’ve been pledged to secure that bond. Therein lies the reason why they need the waiver under state law and therein lies the reason why the state law requires them to share it absent a waiver. They wouldn’t be asking for a waiver if they didn’t need it. Commissioner Blake stated we are going to do the project whether you sign a waiver or not. Councilman Banks stated he understands and continued this company is putting in the $18 million and if you borrow $18 million, city taxpayers are on the hook. Commissioner Mull stated they are not. Councilman Banks stated well, they are if you issue bonds. So you’re saying the bond payment will be paid by the savings from the energy savings of the new equipment. Commissioner Mull stated correct. Councilman Banks asked over what period of time. Commissioner Mull replied twenty-years. Councilman Banks asked if the equipment would last twenty-years. Commissioner Mull stated yes, and we have a guarantee and a contract that if it doesn’t meet the savings they say it will meet then they pay the difference. Councilman Banks asked what has the county done as far as looking at the projections of this company about energy going up. What if the Bradley County school system cannot pay the debt service on the $18 million from energy savings, who suffers the loss? Commissioner Mull stated the company. Councilman Banks asked if it will be bonded. What if they fold up and go out of business? Commissioner Mull stated they have been in business for many years and have a bond rating out the roof. Obviously, we have done our homework. This started in September and I actually started looking at this ten years ago. I’ve done my homework. Councilman Banks stated he understands and just saying we have a duty to our taxpayers. I remember when we were talking about the liquor tax, the County Commission kicked it to the school board saying ya’ll have to decide if you are going to sue the city. We don’t want to decide, let the school board decide. p. 163 REGULAR SESSION JUNE 16, 2016 PAGE -8- MINUTE BOOK 28 Councilman Banks then moved not to take any action on this issue until the Cleveland City School Board, who are our elected officials, have a chance to be presented this by the County Commission and then after that they send it back to the Council. If you have to share it, they should be involved. Councilman Estes asked if he would add an opinion from Mr. Johnston to the motion. Councilman Banks stated yes, for our own due diligence get a legal opinion from Mr. Johnston. The motion was seconded by Councilman Estes. Vice Mayor Poe stated he thought they had the City sued. How do we start negotiations with someone that has a lawsuit against us? Mr. Kimball stated the pending lawsuit relates to liquor by the drink tax. They have not sued the City over this issue. Councilman Estes stated from what I’ve read and heard today, payment of this will come from the operating budget of Bradley County Schools, correct? Commissioner Mull stated correct. Councilman Estes continued you are taking money from their operating budget to pay for a school. Commissioner Mull stated not to pay for a school but for the energy project. Councilman Estes stated to pay for bonds to build a school, please help me connect the dots to the bonds. Commissioner Mull responded for projects, HVAC, etc. Councilman Estes stated so nothing is attached to Lake Forest. Commissioner Mull stated no. Councilman Estes then asked what is the per pupil expenditure in operating for the Bradley County Schools? I would like to know the per pupil expenditure and where it ranks out of 136 school districts in Tennessee. Commissioner Mull stated he believes it’s 121. Councilman Estes stated the BEP formula says Bradley County has lots of capacity so we give them less because they have the capacity to tax and fund their own schools. We have schools funded at 121 out of 136 and you guys want to take money from the operating fund of Bradley County Schools, is that what I’m hearing? Commissioner Mull stated it is taking from the operating fund yes, but the operating funds itself will be deducted to make that payment. It’s not like they are…I understand what you’re saying. Councilman Estes stated that is the issue for him and what the issue will be for our City Schools and equity also for your constituents, who you represent in the City. That is all. Upon roll call, the motion was unanimously passed. Mayor Rowland stated he has received the funding amount from Jim Morris with AirMed Care for what insurance coverage would cost for the City. It is $148,000 annually. Councilman Estes asked if we are at a place where we can add that to next year’s budget and bring it up in July for further discussion. Mayor Rowland explained the insurance would be for any city resident who needs air medic or Life Force this would help pay what was left after your regular insurance pays. This would be a great thing for our residents. There being no future business the meeting was adjourned at 3:52 p.m. _________________________________ ______________________________ Mayor City Clerk