Cleveland City Council

p. 94 REGULAR SESSION APRIL 23, 2018 3:00 P.M. MINUTE BOOK 29 BE IT REMEMBERED THAT THE CITY COUNCIL OF THE CITY OF CLEVELAND, TENNESSEE MET IN A REGULAR SESSION THIS MONDAY, APRIL 23, 2018 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., Dale Hughes and Richard Banks. 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; Amy Newman, City Accountant; Jonathan Jobe, Director of Development and Engineering; Kristi Powers, Support Services Manager for 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; Kris Miller, IT Director; Executive Secretary Beverley Lindsey; Sue Zius, Assistant to the Mayor/Legislative Liaison; Kim Spence, Safety and Wellness; Bethany McCoy with Lee University; Teresa Torbett, CDBG Coordinator; City Reporter Randall Higgins; Brian Moran, Social Media; Ken Webb; Duane Schriver; Tad Bacon with Cleveland Utilities; Gary Farlow and Doug Berry with the Chamber of Commerce and Micha Nicolaus. Following the Pledge of Allegiance to the American Flag and prayer by Reverend Micha Nicolaus, 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 April 9, 2018 and approve them as written. The motion was seconded by Councilman May; and upon roll call the motion unanimously passed. PRESENTATIONS, PETITIONS AND COMMUNICATIONS FROM MAIL Mayor Rowland congratulated Cleveland Daily Banner staff writer Brian Graves on receiving the 2017 Golden Press Card Award from the East Tennessee Society of Professional Journalist. Mayor Rowland stated today’s meeting is being held as a public hearing to hear public comments concerning the FY2019 Budget. Mayor Rowland then asked if anyone would like to speak in favor of the approval of the budget. No one spoke. Mayor Rowland then asked if anyone would like to speak in opposition of the approval of the budget. No one spoke. Mayor Rowland declared the public hearing to be closed. CONSENT AGENDA Mayor Rowland reviewed the following items on the consent agenda. • Final Passage - Ordinance No: 2018-11 – Abandoning a section of 7th Street SE located between Cincinnati Ave SE and Wildwood Ave SE (Planning Commission: Approved 9-0). • Final Passage - Zoning Ordinance No: 2018-12 – Rezoning 1.5 acres located on Candies Ln (Tax Map 041G Group A Parcels 16.00, 17.00, 18.00 & 19.00) from R2 Low Density Single Family and Multi-Family Residential Zoning District to CG General Commercial Zoning District (Planning Commission: Approved 9-0). • Resolution No: 2018-32 – Authorize the Mayor to sign a grant amendment with TDOT concerning an amendment for the Gaut Street Sidewalk Construction Project. p. 95 REGULAR SESSION APRIL 23, 2018 PAGE -95- MINUTE BOOK 29 RESOLUTION NO. 2018-32 WHEREAS, the City has received the attached contract amendment number 1 from the Tennessee Department of Transportation (hereafter “TDOT”) for the project described below; and Projects: Various Streets in Cleveland as described in the amendment attached hereto. Agreement Number: 170087 Project Identification Number: 123116.01 State Project #: 06LPLM-F0-057, 06LPLM-F1-058, 06LPLM-F2-059, 06LPLM-F3-056 Federal Project #: TAP/STP-M-9203(23) WHEREAS, the City Council desires to enter into the attached contract amendment number 1 with TDOT for the projects described in the amendment, and to further authorize the Mayor to execute this contract amendment 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 approve of the attached contract amendment number 1 with TDOT for the projects described herein and in the amendment, and it further authorizes the Mayor to execute the same on behalf of the City of Cleveland. This 23rd day of April, 2018. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk • Resolution No: 2018-33 – Authorizing the Mayor to sign a grant application for the 2018 Boyd Foundation Tennessee Dog Park Dash Grant. RESOLUTION NO: 2018-33 A RESOLUTION AUTHORIZING THE SUBMISSION OF THE 2018 BOYD FOUNDATION TENNESSEE DOG PARK DASH GRANT WHEREAS, The Boyd Foundation is sponsoring competition for grant funds for making Tennessee the most pet-friendly state in America. WHEREAS, The Boyd Foundation’s Tennessee Dog Park Dash Fund will fund 36 dog parks across the state through a grant program, with one additional park awarded through an ongoing community contest. Each winning proposal may be awarded a total up to $25,000 in grant funds with no matching funds from the City. A final $100,000 will be awarded through a contest to find the most pet-friendly community in Tennessee WHEREAS, the City Council of the City of Cleveland, Tennessee desires to authorize City staff to apply for the grant application, and authorize the Mayor to sign the same, as well as to execute any other documents or take any other actions which may be necessary or appropriate to implement the grant if the same is awarded to the City by The Boyd Foundation NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cleveland that the Mayor and City staff be and hereby are authorized to sign and submit a grant application with The Boyd Foundation on behalf of the City of Cleveland for the grant described herein. p. 96 REGULAR SESSION APRIL 23, 2018 PAGE -96- MINUTE BOOK 29 BE IT FURTHER RESOLVED by the City Council of the City of Cleveland that the Mayor and City staff be and hereby are authorized to execute any other documents or take any other actions which may be necessary or appropriate to implement the grant if the same is awarded to the City by The Boyd Foundation Adopted this 23th day of April, 2018 APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk • Resolution No: 2018-34 – Authorizing the Mayor to sign a grant application with the United States Soccer Foundation for the 2018 Safe Places to Play Grant. RESOLUTION NO: 2018-34 A RESOLUTION AUTHORIZING THE SUBMISSION OF THE 2018 SAFE PLACES TO PLAY GRANT WHEREAS, the United States Soccer Foundation is sponsoring competition for grant funds for transforming abandoned courts, empty school yards, vacant lots and the link into state-of-the-art soccer fields for kids through the Safe Places to Play Grant. WHEREAS, the United States Soccer Foundation’s Safe Places to Play Gran will fund grants to communities to help cover the costs of lighting, irrigation, construction, surfacing and enhancement. Each winning proposal may be awarded financial support between 15-50% of the project cost with the exception of irrigation, which can support 100% of the project costs. Maximum supports by category include: irrigation $15,000, lighting $25,000 for single field and $50,000 for multi-field, sport court $15,000 for single field and $30,000 for multi-field and AstroTurf is no more than 15% of the project cost. WHEREAS, the City Council of the City of Cleveland, Tennessee desires to authorize City staff to apply for the grant application, and authorize the Mayor to sign the same, as well as to execute any other documents or take any other actions which may be necessary or appropriate to implement the grant if the same is awarded to the City by the United States Soccer Foundation. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cleveland that the Mayor and City staff be and hereby are authorized to sign and submit a grant application with the United States Soccer Foundation on behalf of the City of Cleveland for the grant described herein. BE IT FURTHER RESOLVED by the City Council of the City of Cleveland that the Mayor and City staff be and hereby are authorized to execute any other documents or take any other actions which may be necessary or appropriate to implement the grant if the same is awarded to the City by the United States Soccer Foundation. Adopted this 23th day of April, 2018 APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk p. 97 REGULAR SESSION APRIL 23, 2018 PAGE -97- MINUTE BOOK 29 • Resolution No: 2018-35 – Authorizing the Mayor to sign a contract amendment with Ragan Smith relating to the Gaut Street area sidewalk project. RESOLUTION NO. 2018-35 WHEREAS, in connection with the Gaut Street Multi-modal project, the City desires to enter into the attached amended agreement with Ragan Smith Associates; and WHEREAS, the City Council has reviewed the proposed amended agreement, and now desires to accept the proposed amended agreement with Ragan Smith Associates for the referenced project, 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 approve of the attached amended agreement with Ragan Smith Associates for the referenced project described herein, and it further authorizes the Mayor to execute the agreement on behalf of the City of Cleveland. This 23rd day of April, 2018. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk • Resolution No: 2018-36 – Amending the Personnel Rules and Regulations. RESOLUTION NO: 2018 -36 A RESOLUTION AMENDING THE PERSONNEL POLICIES OF THE CITY OF CLEVELAND, TENNESSEE THAT WHEREAS, the City Council of the City of Cleveland has previously established and adopted by Resolution on February 22, 2016 a revised Personnel Rules and Regulations document entitled “The City of Cleveland Personnel Rules and Regulations”; and WHEREAS, this document contains the personnel policies of the City of Cleveland; and WHEREAS, the Human Resources Committee, department heads and the City Manager will review the personnel manual and submit any recommended amendments to the City Council for their consideration by the end of February each year; and WHEREAS, an amendment to the City’s Personnel Rules and Regulations is necessary in order to make corrections to the previous revision. NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Cleveland, Tennessee in Regular Session assembled this 23rd day of April, 2018 that the document titled “The City of Cleveland Personnel Rules and Regulations” is hereby amended as follows: p. 98 REGULAR SESSION APRIL 23, 2018 PAGE -98- MINUTE BOOK 29 Section 1. Amend the City’s Personnel Rules and Regulations as follows: Section VI – BENEFITS • Subsection C. Annual Vacation with Pay Revise annual schedule for employees working a 24/48 hour schedule to read: Years of #of Equivalent #of Annual #of Vacation Service Vacation Days Vacation Hours Hours/Month 0–1 2.33 56 4.67 1–5 4.67 112 9.34 5 – 10 7.00 168 14.00 10 – 15 8.165 196 16.34 15 - 20 9.33 224 18.67 20 + 11.67 280 23.34 Section VIII – MISCELLANEOUS POLICIES • Subsection O. Inclement Weather and Hazardous Conditions Revise 6th paragraph to read: All non-essential employees shall be paid at the regular rate of pay for all regularly scheduled hours not actually worked during the inclement weather policy period determined by the City Manager or the designee. If the City chooses to pay for these hours not actually worked, these hours shall not be considered hours worked for purposes for calculating overtime under the FLSA. Temporary full-time employees will only be paid if normally scheduled to that day and only for those hours which the employee would normally work. Section 2. That this Resolution shall become effective from and after its approval by the Cleveland City Council. Adopted this 23rd day of April, 2018. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk Councilman Banks moved to approve the Consent Agenda. The motion was seconded by Councilman Cassada; and upon roll call, the motion to approve the consent agenda was unanimously passed. REPORTS OF MAYOR AND COUNCIL MEMBERS Councilman Banks submitted his names for the 2030 Committee which were Travis Henry, Beverley Johnson and Bailey Jones. Councilman Cassada stated he had people interested in serving but had a few questions like when would they begin meeting and what was the anticipated timeframe. Mr. Fivas replied meetings would begin next fall and last approximately 6- 8 months. p. 99 REGULAR SESSION APRIL 23, 2018 PAGE -99- MINUTE BOOK 29 Councilman McKenzie asked for a property update on Emmett Avenue. Mr. Jobe stated he would meet with him after the meeting. Councilman McKenzie then expressed concern about speeding along 25th Street and the number of accidents. He then asked for staff to look at possibilities to slow traffic. Councilman Cassada spoke regarding the family aspect of the city and different options for City staff to look at to allow employees a good work/life balance. The employees are our biggest assets and when you ask them to do more, we should look at different avenues to reduce time in the upcoming year. NEW BUSINESS AND ORDINANCES Mayor Rowland stated first reading of Zoning Ordinance No: 2018-13 has been delayed until the May 14, 2018 meeting. The following Ordinance was then presented in full: • Ordinance No: 2018-14 - Adopting the 2018 Tax Rate for FY2019 ($2.06). ORDINANCE NO: 2018-14 TAX ORDINANCE - YEAR 2018 AN ORDINANCE TO PROVIDE AND FIX FOR THE CITY OF CLEVELAND, TENNESSEE, FOR THE YEAR 2017, AND SUBSEQUENT YEARS, THE TAX RATE ON ALL PROPERTY, BOTH REAL AND PERSONAL; TO PROVIDE A BUSINESS TAX; TO PROVIDE FOR A SPECIAL FRANCHISE PRIVILEGE TAX, IN ACCORDANCE WITH AND AS SET FORTH IN THE “BUSINESS TAX ACT” KNOWN AS CHAPTER 387 OF THE PUBLIC ACTS OF 1971, PASSED BY THE GENERAL ASSEMBLY OF THE STATE OF TENNESSEE, WITHIN THE CORPORATE LIMITS OF THE CITY OF CLEVELAND, AND TO FIX A PENALTY FOR ANY PERSON, FIRM OR CORPORATION EXERCISING ANY SUCH VOCATION, OCCUPATION OR BUSINESS WITHIN SAID CITY OF CLEVELAND WITHOUT FIRST PAYING SAID TAX. SECTION 1. BE IT ORDAINED by the City Council of the City of Cleveland, Tennessee, that the tax levy on all property, both real and personal, for the year 2017, and each subsequent year thereafter be, and is, $2.06 on each One Hundred Dollars ($100.00) of assessed valuation. SECTION 2. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that all persons, firms and corporations engaged in any location, occupation or business within the corporate limits of said City shall pay a business tax to the City of Cleveland equal to and in the same amount as the business tax prescribed to be paid by such person, firm or corporation under the terms and provisions of the “Business Tax Act”, known and designated as Chapter 387 of the Public Acts of 1971, as passed by the aforesaid Act hereto attached, read and understood by the said City Council, and made a part of this Ordinance; and the rate of taxes on such business is made a part hereof as fully as if the same were incorporated in full herein; and the rate of taxes on such privilege and privileges named in said Act for retail businesses shall be as follows: Class 1A 1/10 of 1% retail 1/40 of 1% wholesale Class 1B 1/10 of 1% retail 3/80 of 1% wholesale Class 1C 1/10 of 1% retail 3/80 of 1% wholesale Class 1D 1/20 of 1% Class 2 3/20 of 1% retail 3/80 of 1% wholesale Class 3 3/16 of 1% retail 3/80 of 1% wholesale p. 100 REGULAR SESSION APRIL 23, 2018 PAGE -100- MINUTE BOOK 29 Class 4 1/10 of 1% and the taxes shall be paid to the City Clerk as provided by law and Ordinances for the collection of all revenues for the City of Cleveland, Tennessee. SECTION 3. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that there is also levied a special franchise privilege tax, in accordance with the provisions of Chapter 311 of the Public Acts of the 85th General Assembly of the State of Tennessee, on all public utility corporations, domestic and foreign, and which do business, own property, or operate as a public utility in the City of Cleveland, Tennessee. The base of such tax shall be determined as set forth in Chapter 311 aforesaid. The rate of said tax shall be $2.06 for each one hundred dollars ($100.00) of assessed valuation. SECTION 4. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that it shall be unlawful for any person, firm or corporation to exercise the privileges set forth and referred to in this Ordinance before complying with the provisions of the Ordinance, and anyone exercising any of the forgoing privileges without paying the tax prescribed shall be guilty of a misdemeanor and liable to a fine on conviction of not less than $5.00, nor more than $50.00, for each such privilege which is exercised without a license, to be imposed by the City Judge of the City of Cleveland. SECTION 5. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that if any Section or part of this Ordinance shall be declared invalid or unenforceable, the invalidity of such Section or part shall not otherwise affect its validity but the remaining Sections or parts of this Ordinance shall be enforced without regard to the Section or part declared to be invalid. SECTION 6. BE IT FURTHER ORDAINED by the City Council of the City of Cleveland, Tennessee, that all Ordinances or parts of Ordinances in conflict with the provisions of this Ordinance are hereby repealed; however, this Ordinance shall not be the exclusive means of taxation within the City of Cleveland, Tennessee, but is in addition to any other valid Ordinances in existence at the present time by which the City may collect a tax or taxes, and this Ordinance shall take effect from and after its passage, the public welfare of the City of Cleveland requiring it. Signed in Open Meeting: ____________________________________ Councilman McKenzie _____________________________________ ATTEST: Councilman Estes ___________________________ _____________________________________ Shawn McKay, City Clerk Councilman Cassada _____________________________________ Councilman May APPROVED AS TO FORM: _____________________________________ Councilman Hughes _________________________ _____________________________________ John F. Kimball, City Attorney Councilman Banks ___________________________ _____________________________________ Tom Rowland, Mayor Vice Mayor Johnson Councilman Estes moved that Ordinance No: 2018-14 be approved on first reading. The motion was seconded by Councilman Banks; and upon roll call, unanimously passed. p. 101 REGULAR SESSION APRIL 23, 2018 PAGE -101- MINUTE BOOK 29 The following Ordinance was then presented in full: p. 102 REGULAR SESSION APRIL 23, 2018 PAGE -102- MINUTE BOOK 29 p. 103 REGULAR SESSION APRIL 23, 2018 PAGE -103- MINUTE BOOK 29 Councilman Estes moved that Ordinance No: 2018-15 be approved on first reading. The motion was seconded by Vice Mayor Johnson; and upon roll call, unanimously passed. p. 104 REGULAR SESSION APRIL 23, 2018 PAGE -104- MINUTE BOOK 29 The following Resolution was then presented in full: RESOLUTION NO: 2018-37 WHEREAS, City representatives have been in discussions with representatives of Lee University about a plan to provide traffic calming on Parker Street NE between 11th Street NE and Central Avenue; and WHEREAS, Lee University will provide the City Council and City staff with a preliminary conceptual plan for this Parker Street Traffic calming project between 11th Street NE and Central Avenue; and WHEREAS, Lee University will submit proposed construction documents to the City's development and engineering staff for this project; and WHEREAS, upon receipt of the preliminary conceptual plan and the proposed construction documents from Lee University, City development and engineering staff shall review the preliminary conceptual plan and the proposed construction documents and provide notes and comments which shall be incorporated in the approved final plan for said project; and WHEREAS, the City Council now desires to approve of the attached agreement between Lee University and the City of Cleveland relating to this project. [on file in the City Clerk’s Office.] NOW, THEREFORE, BE IT RESOLVED that the City Council hereby approves of the attached agreement with Lee University for this project, and the Council hereby authorizes the Mayor sign the Agreement on behalf of the City. Approved this 23rd day of April, 2018. APPROVED AS TO FORM: /s/John F. Kimball ___________________________ City Attorney Tom Rowland, Mayor ___________________________ Shawn McKay, City Clerk Councilman May moved that Resolution No: 2018-37 be accepted as presented. The motion was seconded by Councilman Cassada. Councilman Estes stated he is employed by Lee University, which does not affect his vote. Upon roll call, the motion was unanimously passed. Councilman Estes moved to authorize the City Manager and City Staff to present to the Health and Education Facilities Board our desire to move forward with redevelopment and the use of PILOTS, through the board, and to present the same type of information to the Housing Authority to move forward with redevelopment using TIFs going forward, which would mean creating a proper zone downtown area and wherever else it will help on the redevelopment part. The motion was seconded by Councilman Hughes. Councilman Estes continued we can tweak the TIFs accordingly, do our homework and we’re on the right track. Upon roll call the motion was unanimously passed. The following Resolution was presented in full: AUTHORIZING RESOLUTION 2018-38 RESOLUTION AUTHORIZING AND PROVIDING FOR THE FINANCING OF THE CONSTRUCTION OF A WASTEWATER FACILITIES PROJECT, INCLUDING AUTHORIZING THE EXECUTION OF APPLICATIONS, CONTRACTUAL AGREEMENTS, AND OTHER NECESSARY DOCUMENTS, AND MAKING CERTAIN REPRESENTATIONS, CERTIFICATIONS, AND PLEDGES OF CERTAIN REVENUE IN CONNECTION WITH SUCH FINANCING. p. 105 REGULAR SESSION APRIL 23, 2018 PAGE -105- MINUTE BOOK 29 WHEREAS, the Cleveland Utilities is a public and governmental body in the City of Cleveland, Tennessee (the "Local Government"); and WHEREAS, the Local Government has determined that it is necessary and desirable to undertake certain activities or tasks in connection with a wastewater facilities project, Department of Environment and Conservation Number SRF 2018-416 (the "Project"), in and for the Local Government; and WHEREAS, Tennessee Code Annotated, Section 68-221-1001 et. seq., provide for the lending of moneys in the wastewater facilities Revolving Loan Fund to Local Governments for the purpose of providing funds for Project Loans; and WHEREAS, the local Government has determined that it is necessary and advisable to borrow funds for the Project pursuant to these sections. NOW, THEREFORE, be it resolved as follows: Section 1. Local Government hereby approves the creation of indebtedness on behalf of the Local Government in the principal amount of THREE HUNDRED FIFTY THOUSAND FIVE HUNDRED Dollars ($350,500) by the obtaining of a Project Loan. Section 2. The execution and delivery of the Application for a Project Loan in the principal amount of THREE HUNDRED FIFTY THOUSAND FIVE HUNDRED Dollars ($350,500) for the purpose of funding all or a portion of the total estimated cost of the Project ONE MILLION THREE HUNDRED FIFTY THOUSAND FIVE HUNDRED Dollars ($1,350,500) by Tom Rowland, Mayor of City of Cleveland, is hereby ratified and approved in all respects. Section 3. The form, terms, and provisions of the agreement for the Project Loan among the Local Government, the Tennessee Department of Environment and Conservation and the Tennessee Local Development Authority (the "Loan Agreement"), as presented at this meeting, are hereby approved. Section 4. The Local Government hereby agrees to honor and accept the method of financing as may be determined by the Authority pursuant to the Loan Agreement. Section 5. The Local Government hereby agrees to make the monthly payments on the Project Loan in accordance with the Payment Schedule to be attached to the Loan Agreement. Section 6. The Local Government hereby agrees to levy fees, rates or charges for services provided by the Project and/or to levy ad valorem taxes sufficient to pay the interest on and principal of the Project Loan in accordance with the Loan Agreement. The Local Government also agrees to levy fees, rates, or charges and/or ad valorem taxes sufficient to pay the cost of operation and maintenance of the wastewater system of which the Project is a part, which cost shall include depreciation and all other debt service expense of the system. Section 7. The Local Government assigns and pledges its State-Shared Taxes to the State and consents to the withholding and application of State-Shared Taxes in the event of failure by the Local Government to remit monthly payments in accordance with the terms of the Loan Agreement, as the Loan Agreement may be supplemented or amended from time to time. Section 8. The Local Government hereby agrees that there are no local pledges of State-Shared Taxes other than those disclosed. Section 9. The Local Government hereby agrees to obtain alternative methods of financing for all costs necessary for the completion of the Project which are in excess of the combined financing provided by any agency of the United States Government and by the Tennessee Local Development Authority. Section 10. The Mayor of the City of Cleveland is authorized and directed to execute the Loan Agreement, and any amendments of supplements to the Loan Agreement, in the name and behalf of the Local Government; to deliver such documents to the other parties to such documents, such execution and delivery to be conclusive proof of the approval of the Local Government of such documents; and to take such further action and to execute and deliver such further instruments or documents as such officer may consider necessary or advisable in p. 106 REGULAR SESSION APRIL 23, 2018 PAGE -106- MINUTE BOOK 29 connection with the Loan Agreement. Provided, however, this resolution shall not be deemed to grant authority to the named officer to approve any increase in the amount of the Project Loan. Section 11. All orders, resolutions, or ordinances in conflict with this resolution be and the same are repealed insofar as such conflict exists. This resolution shall become effective immediately upon its passage. Duly passed and approved this ___23rd______ day of ____April_____________, 2018. _____________________________________ Tom Rowland, Mayor WITNESS: __________________________ (Affix Seal As Appropriate) ___________________________ (Name and Title) Councilman Banks moved that Resolution No: 2018-38 be accepted as presented. The motion as seconded by Councilman Estes; and upon roll call, unanimously passed. The following Resolution was presented in full: AUTHORIZING RESOLUTION 2018-39 RESOLUTION AUTHORIZING AND PROVIDING FOR THE FINANCING OF THE CONSTRUCTION OF A WASTEWATER FACILITIES PROJECT, INCLUDING AUTHORIZING THE EXECUTION OF APPLICATIONS, CONTRACTUAL AGREEMENTS, AND OTHER NECESSARY DOCUMENTS, AND MAKING CERTAIN REPRESENTATIONS, CERTIFICATIONS, AND PLEDGES OF CERTAIN REVENUE IN CONNECTION WITH SUCH FINANCING. WHEREAS, the Cleveland Utilities is a public and governmental body in the City of Cleveland, Tennessee (the "Local Government"); and WHEREAS, the Local Government has determined that it is necessary and desirable to undertake certain activities or tasks in connection with a wastewater facilities project, Department of Environment and Conservation Number CW6 2018-415 (the "Project"), in and for the Local Government; and WHEREAS, Tennessee Code Annotated, Section 68-221-1001 et. seq., provide for the lending of moneys in the wastewater facilities Revolving Loan Fund to Local Governments for the purpose of providing funds for Project Loans; and WHEREAS, the local Government has determined that it is necessary and advisable to borrow funds for the Project pursuant to these sections. NOW, THEREFORE, be it resolved as follows: Section 1. Local Government hereby approves the creation of indebtedness on behalf of the Local Government in the principal amount of ONE MILLION Dollars ($1,000,000) by the obtaining of a Project Loan. Section 2. The execution and delivery of the Application for a Project Loan in the principal amount of ONE MILLION Dollars ($1,000,000) for the purpose of funding all or a portion of the total estimated cost of the Project ONE MILLION THREE HUNDRED FIFTY THOUSAND FIVE HUNDRED Dollars ($1,350,500) by Tom Rowland, Mayor of City of Cleveland, is hereby ratified and approved in all respects. Section 3. The form, terms, and provisions of the agreement for the Project Loan among the Local Government, the Tennessee Department of Environment and Conservation and the Tennessee Local Development Authority (the "Loan Agreement"), as presented at this meeting, are hereby approved. p. 107 REGULAR SESSION APRIL 23, 2018 PAGE -107- MINUTE BOOK 29 Section 4. The Local Government hereby agrees to honor and accept the method of financing as may be determined by the Authority pursuant to the Loan Agreement. Section 5. The Local Government hereby agrees to make the monthly payments on the Project Loan in accordance with the Payment Schedule to be attached to the Loan Agreement. Section 6. The Local Government hereby agrees to levy fees, rates or charges for services provided by the Project and/or to levy ad valorem taxes sufficient to pay the interest on and principal of the Project Loan in accordance with the Loan Agreement. The Local Government also agrees to levy fees, rates, or charges and/or ad valorem taxes sufficient to pay the cost of operation and maintenance of the wastewater system of which the Project is a part, which cost shall include depreciation and all other debt service expense of the system. Section 7. The Local Government assigns and pledges its State-Shared Taxes to the State and consents to the withholding and application of State-Shared Taxes in the event of failure by the Local Government to remit monthly payments in accordance with the terms of the Loan Agreement, as the Loan Agreement may be supplemented or amended from time to time. Section 8. The Local Government hereby agrees that there are no local pledges of State-Shared Taxes other than those disclosed. Section 9. The Local Government hereby agrees to obtain alternative methods of financing for all costs necessary for the completion of the Project which are in excess of the combined financing provided by any agency of the United States Government and by the Tennessee Local Development Authority. Section 10. The Mayor of the City of Cleveland is authorized and directed to execute the Loan Agreement, and any amendments of supplements to the Loan Agreement, in the name and behalf of the Local Government; to deliver such documents to the other parties to such documents, such execution and delivery to be conclusive proof of the approval of the Local Government of such documents; and to take such further action and to execute and deliver such further instruments or documents as such officer may consider necessary or advisable in connection with the Loan Agreement. Provided, however, this resolution shall not be deemed to grant authority to the named officer to approve any increase in the amount of the Project Loan. Section 11. All orders, resolutions, or ordinances in conflict with this resolution be and the same are repealed insofar as such conflict exists. This resolution shall become effective immediately upon its passage. Duly passed and approved this ____23rd_ day of __April___________, 2018. _____________________________________ Tom Rowland, Mayor WITNESS: ___________________________ (Affix Seal As Appropriate) ___________________________ (Name and Title) Councilman Banks moved that Resolution No: 2018-39 be accepted as presented. The motion as seconded by Councilman Estes; and upon roll call, unanimously passed. Councilman Banks stated Dr. Coleman approached him concerning the grant application for a parking lot to be used by commuters to Chattanooga. Dr. Coleman had questions and where to use the money. The Woolen Mill, the Cherokee Hotel, the Moore Building, along with others it is important for us to continue to promote what the consultants say are important changes and projects we move along. When Whirlpool moved out of the area it was a great concern and a committee was formed to help. His position is we need to turn some dirt on the South end of Inman Street. We need activity next to Whirlpool and someday it will be great to turn one of the buildings into the Tom Rowland Convention Center and activity on the south end would be worth it. Dr. Coleman addressed the Council concerning the grant, which was for air quality control, like a park-n-ride. The grant would help the area, like landscaping, etc but it’s been about 1½ p. 108 REGULAR SESSION APRIL 23, 2018 PAGE -108- MINUTE BOOK 29 years since we received the grant and they are trying to move it forward. Now there are other places being considered. He has met with Mr. Fivas and trying to resolve any potential issues and look at options. They are ready to do a lot of things with the Woolen Mill, like condos, retail and loft apartments and the ability to have parking with help them tremendously to move forward. The timeline on the grant only has 1½ years to finish the grant. Councilman Hughes stated he understands he is offering the property to the City at no charge. Mr. Coleman stated correct. Mayor Rowland stated if the grant was to change it would have to come before the Council. Mr. Coleman stated correct. They are willing to discuss alternatives to work with the overall city plan. However, he would be giving up value to not do the park-n-ride. Councilman Cassada cautioned the Council about the certain stipulations that will require extra money, like buses and maintenance of them. It’s just not a parking lot. There is a need on the north and south ends of Cleveland. We need to work together to reach a decision but keep the money base here. Mayor Rowland stated the area was carefully selected. Vice Mayor Johnson expressed his concern about losing the grant because of the timeframe, which has to be finished in a year and a half. Dr. Coleman stated he appreciates Greg Thomas’ work and they will be very appreciative for the grant funds. Councilman Cassada replied we want the project to be successful. Mayor Rowland stated construction on the Veterans Home will begin soon and thanked everyone for their support. [Due to a power outage, there was no recording of the 3:00 meeting until the last 15 minutes] There being no future business the meeting was adjourned. _________________________________ ______________________________ Mayor City Clerk