Cleveland City Council

p. 660 REGULAR SESSION NOVEMBER 27, 2017 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 MONDAY, NOVEMBER 27, 2017 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 Vice Mayor Avery Johnson, Councilmen Charlie McKenzie, Bill Estes, Tom Cassada, David May, Jr., and Richard Banks. Councilman Dale Hughes was absent from the meeting. Others in attendance according to the sign-in sheet were as follows: City Manager Joe Fivas; Assistant City Manager/CFO Shawn McKay; Assistant City Manager/Operations Melinda Carroll; City Attorney John Kimball; Christy Brandon, Support Services Manager; Jonathan Jobe, Director of Development and Engineering; Tommy Myers, Director of Public Works; Police Chief Mark Gibson; Mark Fidler, Jetport Director; Patti Petitt, Director of Parks and Recreation; Fire Chief Ron Harrison; Jeff Davis, Personnel Director, Executive Secretary Beverley Lindsey; Sue Zius, Assistant to the Mayor/Legislative Liaison; Brian Moran, Social Media Coordinator; Bethany McCoy with Lee University; City Reporter Randall Higgins; Tad Bacon with Cleveland Utilities; Gary Farlow with the Chamber of Commerce; Joe Davis; District Attorney Steve Crump; Carl Lansden; Larry Bowers with the Cleveland Daily Banner. Following the Pledge of Allegiance to the American Flag and prayer by General Steve Crump, the following business was then entered into: WAIVE READING OF MINUTES Vice Mayor 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 November 13, 2017 and approve them as written. The motion was seconded by Councilman May; and upon roll call the motion unanimously passed. CONSENT AGENDA Mayor Rowland reviewed the following items on the consent agenda. • Final Passage - Ordinance No: 2017-56 – heretofore passed on first reading November 13, 2017 and found in Minute Book 28, Page 546; abandoning a portion of unopened right-of-way located between East St NE and Lang St NE. • Resolution No: 2017-81 – Authorizing the Mayor to sign an agreement with Terra Running Company for the 2018 Cleveland Recycle 5K. RESOLUTION NO. 2017-81 WHEREAS, the City has received the attached proposal and agreement from Terra Running Company for event management and timing for the 2018 Cleveland Recycles 5K to be held on June 9, 2018; and WHEREAS, the City Council has reviewed the proposal and agreement and now desires to accept the proposal and to enter into the attached agreement with Terra Running Company, and to further authorize the Mayor to execute the same on behalf of the City of Cleveland. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cleveland, Tennessee, in regular session assembled, that the City Council does hereby accept the proposal and approve of the attached agreement with Terra Running Company, and it further authorizes the Mayor to execute the agreement on behalf of the City of Cleveland. This 27th day of November, 2017 APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk p. 661 REGULAR SESSION NOVEMBER 27, 2017 PAGE -2- MINUTE BOOK 28 • Surplus Property – Declaring a vehicle surplus property and to be sold on Govdeals.com for the Parks & Recreation Department. MEMO: TO: MAYOR & CITY COUNCIL FROM: Melinda Carroll DATE: November 17, 2017 SUBJECT: SURPLUS VEHICLE I respectfully request the City Council declare the following vehicle from the Parks & Recreation department surplus: • 1999 – Chevrolet K-1500 VIN# 2GCEK19V3X1169044 This vehicle will be placed on Govdeals.com with a minimum bid of $1,000. • Street Light Recommendation – Karen Patterson at 138 Emmyllie Court NE (Emmyllie Court was recently accepted as a city street and Cleveland Utilities will install two (2) 60-watt underground fed string lights). Councilman May moved to approve the Consent Agenda. The motion was seconded by Councilman Banks; and upon roll call, the motion to approve the consent agenda unanimously passed. Councilman Estes declared he, personally, has a contract with Terra Running Company, which does not affect his vote. PRESENTATIONS, PETITIONS AND COMMUNICATIONS FROM MAIL Doug Berry addressed the City Council concerning a recommendation from the Industrial Development Board for a resolution to approve a 5-year, 32.5% discount on personal and real property taxes for an investment to be made by Bayer Healthcare. This is for an additional 32,000 sq. ft. office building in the first of three phases of investment of their existing facility. Phase two of the project will begin in late 2019 and phase three to begin in 2021. This is a potential investment of up to $38 million once completed. It could lead up to new job creation but more importantly it stabilizes the 376 existing full-time employees, with a combined wage and benefit package of $39 million a year. Councilman May inquired about the south industrial park. Mr. Berry stated it is going well. He offered to bring a video to the next meeting to show the progress. The Industrial Development Board approved their first change order, which was a reduction of about $300,000 on the original contract. The savings were then reinvested to prepare three additional pads to sell. They are still on the original schedule and looks like additional paving will be in the spring. They also intend to have all the pads and service on the roadway by mid-May. Councilman Cassada asked how the PILOT impacted our tax base and our budget. Mr. Berry stated this is new investment and does not affect existing tax dollars. This is future revenue. Bayer Healthcare is currently paying the City $331,789 in property taxes this tax cycle. The projected revenue is $84,000 a year for the first 5-years and after that it would be $128,000 of new revenue. REPORTS OF MAYOR AND COUNCIL MEMBERS Councilman Estes thanked the City Staff that attended the Blythe Oldfield dedication. It was a long time coming. He then thanked the Historic Neighborhood Association and Lee University for the new flag pole at Arnold School. The school looks classy. Lastly, the Christmas parade, singing of the carols and so many other good things are happening soon and it is what makes our community great. p. 662 REGULAR SESSION NOVEMBER 27, 2017 PAGE -3- MINUTE BOOK 28 Councilman May inquired about the project on 15th Street near Deer Park. Mr. Myers stated depending on the weather, paving should begin next week. Councilman May thanked Mr. Myers for doing the project in-house, which saved money and time. Councilman Estes asked that a press release be issued concerning the upcoming work to Deer Park so the public will stay informed. Mayor Rowland and Councilman May both then thanked Mr. Myers for his revised system with the leaf/debris and sweeper routes. Councilman Banks stated we only have one meeting in December and would like a report on the City Manager evaluations at that time. Also, someone has questioned the traffic signal at the Tom Rowland Interchange, headed northbound, there are green lights but no road there yet. It could be a safety hazard. Tad Bacon with Cleveland Utilities stated he would take and look to see what could be done. Vice Mayor Johnson stated a citizen inquired about cameras on private property, pertaining to a recent vehicle break-in on their property. Does that need to be approved or are there any guidelines or restrictions someone would need to do first before installation? Chief Gibson stated camera systems are allowed on private property, if posted on their own property. NEW BUSINESS AND ORDINANCES The following Resolution was then presented in full: RESOLUTION NO: 2017-82 A RESOLUTION APPROVING A PAYMENT-IN-LIEU-OF TAXES (PILOT) SCHEDULE WHEREAS, the Industrial Development Board of the County of Bradley and the City of Cleveland, Tennessee (the "Board") recommends a Payment-In-Lieu-Of-Taxes ("PILOT") schedule for Bayer HealthCare LLC (hereinafter referred to as the "Company") to demonstrate the community’s commitment to long-term partnerships with existing manufacturers and encourage the Company to make a major three-phase investment in existing manufacturing operations in Cleveland, Tennessee to upgrade the site to new Good Manufacturing Practices (“GMP”) standards; WHEREAS, the proposed investments include the addition of a new administrative and employee services building to separate administrative functions from production areas in Phase 1, the upgrade of existing production rooms in Phase 2, and the acquisition and installation of certain machinery and equipment to close liquids, ointments, and creams processes in Phase 3 with a potential combined investment of $34,000,000 to $38,000,000 through the calendar year 2021; WHEREAS, the Project will further enhance the competitive position of Cleveland operations as it contends worldwide for new product lines in the Consumer Health Division of Bayer thereby protecting existing production, improving the opportunities for new product lines, and improving the working environment of 376 permanent employees receiving a combined annual payroll of approximately $39.3 million and 126 temporary employees earning approximately $3.7 million annually in support of seasonal production fluctuations; WHERAS, the Company has exhibited a continuing commitment to contribute to the betterment of the general community through the ongoing participation of company personnel and resources in programs such as the Michigan Avenue Elementary and Trousdale School BEST Partnerships, United Way, Habitat for Humanity Women Build Program, The Salvation Army, and First Responder Appreciation Programs, to name a few; p. 663 REGULAR SESSION NOVEMBER 27, 2017 PAGE -4- MINUTE BOOK 28 WHEREAS, the Company has requested that all real and personal property acquired in connection with the Phase 1 Project identified as Building 2 (collectively, the “Property”) qualify for an arrangement (the "PILOT Arrangement") whereby the Property shall be exempt from all ad valorem property taxes otherwise due thereon (collectively, "property taxes"), and in lieu of the property taxes, the Company shall make annual payments in lieu of taxes equal to sixty-two and one-half percent (62.5%) of the property taxes otherwise due on the Property during the five- year tax assessment periods commencing on January 1, 2019 and ending on December 31, 2023; WHEREAS, the Board and Company intend to request at future dates and by separate resolution that all real and personal property acquired in connection with the Phase 2 and Phase 3 Project components also qualify for similar PILOT arrangements; WHEREAS, the Board has determined that, notwithstanding the PILOT Arrangement, the Project will result in the direct payment of taxes to Bradley County, Tennessee in an estimated amount of $346,685 and the City of Cleveland, Tennessee in an estimated amount of $418,035 over the same five-year period; and WHEREAS, the City of Cleveland, Tennessee (the "City") has determined that the proposed PILOT Arrangement is fair, reasonable, and necessary for the continued economic development of the City of Cleveland and Bradley County. NOW THEREFORE, BE IT RESOLVED by the City Council of the City of Cleveland, Tennessee as follows: Section 1. The City hereby agrees to the PILOT Arrangement and hereby delegates the power and authority to the Board to negotiate a PILOT agreement to reflect the parties' respective rights and obligations in accordance with the PILOT Arrangement. Section 2. The City hereby authorizes the Mayor to execute any and all documents necessary for the successful completion of the Project, including but not limited to, all documents related to the PILOT Arrangement, and the City authorizes the Company to assign all of their respective rights, title and interest in and to the aforementioned documents and arrangements to a parent, subsidiary or affiliate of the Company without the prior written consent of the City, provided such assignee shall assume in writing all of the obligations of the Company under such assigned documents. Section 3. This Resolution shall become effective upon its adoption. Adopted this 27th day of November 2017. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk Vice Mayor Johnson moved that Resolution No: 2017-82 be accepted as presented. The motion was seconded by Councilman Estes; and upon roll call, unanimously passed. Councilman Estes stated we have reviewed several options concerning tax relief and tax freeze and would like to know other Council members feel about participating in matching what the State offers on tax relief. He feels we should to help elderly property owners who are on the program. Councilman May agreed. Vice Mayor Johnson also agreed. Mr. McKay stated if the existing participants qualified, to match the State will cost the city approximately $57,000. The State determines who qualifies each year. Councilman Estes stated the state reimburses us and p. 664 REGULAR SESSION NOVEMBER 27, 2017 PAGE -5- MINUTE BOOK 28 this would be a hit on our revenue. Mr. McKay stated yes, it could potentially cost us $57,498. He continued that we have an ordinance prepared if the Council would like to vote today. It follows the State’s Tax Relief program and matches up to the State amount. It will not exceed the tax amount due. We have several that have already been approved and refunds will need to be issued. The following Ordinance was then presented in full: ORDINANCE NO: 2017-57 WHEREAS the State of Tennessee has a Tax Relief Program which is codified at Tennessee Code Annotated 67-5-701 through 67-5-704; and WHEREAS, Tennessee Code Annotated 67-5-701(j)(1) and (2) provide: "(j)(1) The legislative bodies of counties, municipalities and metropolitan forms of government may, by act of the local legislative body, provide for the appropriation of funds for tax relief for elderly low-income homeowners as described in § 67-5-702, for disabled homeowners as described in § 67-5-703, and for disabled veterans as described in § 67-5-704; provided, that in no event shall the total relief allowed by the state and counties, municipalities or metropolitan forms of government exceed the total taxes actually paid. (2) The ordinance authorized by subdivision (j)(1) shall include provisions that only those taxpayers who qualify under §§ 67-5-702 - 67-5-704 are eligible for such additional tax relief, and that the eligible taxpayers shall have previously applied for and obtained the relief authorized by § 67-5-702, § 67-5-703 or § 67-5-704"; and WHEREAS, the City Council desires to pass this Ordinance to provide for the appropriation of City funds to supplement the amount of the tax relief that these eligible persons would receive from the State of Tennessee. NOW, THEREFORE, BE IT ORDAINED by the City Council of the City of Cleveland, Tennessee, in regular session assembled, that: SECTION 1. Cleveland Municipal Code, Title 5, Chapter 2, is hereby amended by adding the following new section: Section 5-205. Tax Relief Pursuant to the authority granted by Tennessee Code Annotated 67-5-701(j)(1), the City of Cleveland hereby appropriates public funds for the purpose of providing additional tax relief for those persons who qualify to receive tax relief from the State of Tennessee under the State of Tennessee's tax relief program. Elderly low-income homeowners as described in Tennessee Code Annotated 67-5-702, disabled homeowners as described in Tennessee Code Annotated 67-5-703, and disabled veterans as described in Tennessee Code Annotated 67-5-704 will be eligible to receive additional tax relief from the City of Cleveland in an amount equal to the amount of tax relief provided by the State; provided, however, that in no event shall the total amount of tax relief allowed by the State and the City exceed the total taxes actually paid. Only those taxpayers who qualify under Tennessee Code Annotated 67-5-702 through Tennessee Code Annotated 67-5-704 are eligible for such additional tax relief from the City, these eligible taxpayers must have previously applied for and obtained the relief authorized by Tennessee Code Annotated 67-5-702, or 67-5-703 or 67-5-704 in order to be eligible to receive this additional tax relief from the City. p. 665 REGULAR SESSION NOVEMBER 27, 2017 PAGE -6- MINUTE BOOK 28 Section 2. This Ordinance shall take effect immediately upon passage on final reading, the public welfare requiring it. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk Councilman Estes moved that Ordinance No: 2017-57 be approved on first reading. The motion was seconded by Councilman Cassada; and upon roll call, the motion was unanimously passed. The Council was in agreement it was the right thing to do. Councilman May moved to authorize the placement of a Bill Norwood, POW-Korea monument or marker in the First Street Square Park. The motion was seconded by Councilman Cassada; and upon roll call, unanimously passed. Mayor Rowland announced City offices will be closed as follows: • Monday, December 25 and Tuesday December 26 for the Christmas Holiday. • Monday, January 1 and Tuesday, January 2 for the New Year’s Holiday. Councilman Cassada moved to excuse Councilman Hughes from today’s meeting. The motion was seconded by Councilman May; and upon roll call, unanimously passed. There being no future business the meeting was adjourned at 3:30 p.m. _________________________________ ______________________________ Mayor City Clerk