Board of Commissioners Meetings

A Regular November 22, 2011 A regular meeting of the Board of Commissioners of the City of Henderson, Kentucky, was held on Tuesday, November 22, 2011, at 5:30 p.m., prevailing time, in the third floor Assembly Room located in the Municipal Center Building at 222 First Street, Henderson, Kentucky. INVOCATION was given by Reverend Mark Galloway, Zion Baptist Church, Bennett Memorial United Methodist Church, and Mayor Steve Austin lead the assemblage in the recitation of the Pledge of Allegiance to our American Flag. There were present Mayor Steve Austin presiding: PRESENT: Commissioner Robert M. (Robby) Mills Commissioner Robert N. Pruitt Commissioner Alan C. Taylor Commissioner Mike Farmer _________________________ ALSO IN ATTENDANCE INCLUDED: Mr. Russell R. Sights, City Manager Mr. William (Buzzy) Newman, Assistant City Manager Mr. Joe Ternes, City Attorney Mrs. Carolyn Williams, City Clerk Mr. John Reed, Police Chief Mr. Danny Froehlich, Fire Chief Mr. Robert Gunter, Finance Director Mrs. Emily Gilliam, Parks & Recreation Director Mr. Leason Neel, HWU Chief Financial Officer Mr. Tom Williams, HWU Director of Engineering Mr. Paul Bird, HWU Commissioner Mr. Brad Schneider, Chamber of Commerce President Mr. Kevin Sheilly, Northwest Kentucky Forward, President/CEO Mr. Bill Polk Mr. Harry Morgan Mr. Jesse Johnston Mr. Tom Davis Police Major Frank Cates Mr. Mike Richardson, Police Reserve Officer Mr. Frank Boyett, The Gleaner _________________________ APPROVAL OF CONSENT AGENDA: MAYOR AUSTIN asked Carolyn Williams, City Clerk, to read the following items included on the Consent Agenda: Minutes: November 8, 2011, Regular Meeting November 15, 2011, Work Session MOTION by Commissioner Farmer, seconded by Commissioner Mills, to approve the Consent Agenda.  A Regular November 22, 2011 The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye: ____________________________ ORDINANCE 42-11: SECOND READING ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF HENDERSON FOR PROPERTIES LOCATED AT 330 NORTH GREEN STREET AND 340 NORTH GREEN STREET CONTAINING A TOTAL OF 24,769 SQUARE FEET FROM INNER CITY RESIDENTIAL (R-3) AND CENTRAL BUSINESS DISTRICT (CBD) TO CENTRAL BUSINESS DISTRICT (CBD) (WILLIAM F. JR. AND MARTHA POLK, OWNERS) On second reading of the Ordinance, it was moved by Commissioner Taylor, seconded by Commissioner Farmer, that the Ordinance be adopted. The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Ordinance adopted, affixed his signature and the date thereto and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor November 22, 2011 ATTEST: Carolyn Williams, City Clerk ________________________ ORDINANCE 43-11: SECOND READING ORDINANCE OF THE CITY OF HENDERSON, KENTUCKY, PROVIDING FOR THE ISSUANCE OF THE CITY’S GENERAL OBLIGATION BONDS, SERIES 2011A, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY A PORTION OF THE COSTS OF A PUBLIC PROJECT OF THE CITY CONSISTING OF THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF A MUNICIPAL FIRE STATION; SETTING FORTH THE TERMS AND CONDITIONS UPON WHICH THE SERIES 2011A BONDS ARE TO BE ISSUED AND OUTSTANDING; ORDERING AND PROVIDING FOR THE LEVY OF AN ANNUAL TAX, TO THE EXTENT NECESSARY, SUFFICIENT TO PAY THE INTEREST ON AND PRINCIPAL OF THE SERIES 2011A BONDS; AND PROVIDING FOR A PUBLIC SALE OF THE SERIES 2011A BONDS AND THE APPLICATION OF THE PROCEEDS THEREOF On second reading of the Ordinance, it was moved by Commissioner Taylor, seconded by Commissioner Mills, that the Ordinance be adopted.  A Regular November 22, 2011 The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Ordinance adopted, affixed his signature and the date thereto and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor ATTEST: November 22, 2011 Carolyn Williams, City Clerk __________________________ ORDINANCE 44-11: SECOND READING ORDINANCE OF THE CITY OF HENDERSON, KENTUCKY, PROVIDING FOR THE ISSUANCE OF THE CITY’S GENERAL OBLIGATION BONDS, SERIES 2012A, FOR THE PURPOSE OF PROVIDING FUNDS TO PAY A PORTION OF THE COSTS OF MAJOR MUNICIPAL SANITARY SEWER ADDITIONS AND IMPROVEMENTS; SETTING FORTH THE TERMS AND CONDITIONS UPON WHICH THE SERIES 2012A BONDS ARE TO BE ISSUED AND OUTSTANDING; ORDERING AND PROVIDING FOR THE LEVY OF AN ANNUAL TAX, TO THE EXTENT NECESSARY, SUFFICIENT TO PAY THE INTEREST ON AND PRINCIPAL OF THE SERIES 2012A BONDS; AND PROVIDING FOR A PUBLIC SALE OF THE SERIES 2012A BONDS AND THE APPLICATION OF THE PROCEEDS THEREOF On second reading of the Ordinance, it was moved by Commissioner Pruitt, seconded by Commissioner Farmer, that the Ordinance be adopted. The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Ordinance adopted, affixed his signature and the date thereto and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor November 22, 2011 ATTEST: Carolyn Williams, City Clerk __________________________ ORDINANCE 45-11: SECOND READING ORDINANCE AMENDING CITY OF HENDERSON PERSONNEL SCHEDULE FOR FINANCE DEPARTMENT IN THE 2011-2012 CITY BUDGET BY DELETING ONE (1) FULL TIME ACCOUNT REPRESENTATIVE AND ADDING TWO (2) PART TIME ACCOUNT REPRESENTATIVES  A Regular November 22, 2011 On second reading of the Ordinance, it was moved by Commissioner Farmer, seconded by Commissioner Mills, that the Ordinance be adopted. COMMISSIONER PRUITT asked that Mr. Robert Gunter, Finance Director, to come to the podium. Commissioner Pruitt asked Mr. Gunter about the splitting of the two jobs and does the pay go down at all?” Mr. Gunter corrected him to say that it was only one job that they are splitting. Commissioner Pruitt asked if he was going to pay both of them the same hourly rate as you were paying the 40 hour person? Mr. Gunter explained that it was based on the pay scale that is adopted in the budget. Commissioner Pruitt said that what he was saying was “what was the person who had the job now being paid?” Commissioner Pruitt guessed $12/hour. Mr. Gunter explained that if it were a new hire, it probably would be in the $25,000 a year range. Commissioner Pruitt explained that you paid the $25,000 a year for the one full time employee and now you will have two people part time so what are they going to make a year? Mr. Gunter explained that the part time employee could work up to 100 hours per month. Commissioner Pruitt asked “what are you going to pay each of those part time employees?” Mayor Austin added that they would be paid whatever the pay scale pays now for a full time employee. Mrs. Connie Galloway, Human Resources Director, stated that an account representative is pay grade 9 and the starting pay for an account representative with no experience is $12.30 per hour. Commissioner Pruitt asked if the second part time employee was going to start off at the same rate? Mr. Gunter stated that if they could find someone with experience, it is my understanding that we can hire them at a higher rate. Mrs. Galloway agreed and stated that it was spelled out in the city’s policy. Commissioner Pruitt said that he was not talking about anyone with experience, just the base and you hire two people for part time, are they both going to be making $12.30 per hour? The answer was yes. Commissioner Pruitt continued by saying that now we have got $24.60/hour and they are going to work how many hours? Mr. Gunter explained again that each part time employee can work 100 hours per month is about $15,120 per part time position. Commissioner Pruitt said that,” with everyone cutting in” he was just trying to say that now we are up to $30 some thousand dollars. So we are going to save over $5,000 just on paying those two rather than for the one. Mr. Gunter agreed. Commissioner Pruitt said “and there is no way that this 40 hour person can cover the hours that you are trying to get these part time people to cover, is that what you are saying?” Mr. Gunter answered “Mr. Pruitt, they are doing it now.” The position that left in August was doing the job. What we are trying to do is have more coverage during the lunch period, from 11 a.m. to 1 p.m. Mr. Gunter asked “I don’t know if you have noticed but the lines are longer between the 11 a.m. to 1 p.m. period.” Commissioner Pruitt said that so between 11 a.m. to 1 p.m. you are going to need a part time person, well you are just talking about three hours so you just need somebody for three hours. Mr. Gunter replied that their hope was to use the two part time employees cover during lunch to reduce the customers having to stand in lines. Commissioner Pruitt continued by saying just the lunch time but the other times they will be just like the 40 hour employee and will only be doing the same thing but only for the 11 a.m. to 1 p.m. period. Mr. Gunter reminded the audience that the part time employee would also fill in for vacations, illness, etc. Mrs. Galloway added that it will improve customer service by having more employees available to provide faster turnaround time for our customers and gives you an opportunity based on the flow and timing of the month and higher volume times. Commissioner Taylor asked “would it be a fair assessment of the goal that you were trying to provide greater customer service at less cost to the City of Henderson.” Commissioner Pruitt agreed that it was a great assessment but you have to look at other things besides that. You have to look at how it affects the person and the people who are doing the job. Even though that is a great assessment, “what I’m trying to get to is that the reason why I am against this is because, and I may be wrong, but when I think of the City government over 200 years and all those Mayors on the wall, I don’t think about a government that is going to let Little JoJo open up a private business and the City outsources work to him and he walks up to peoples’ homes and we invite him to come into our yards and you’ve just got Little JoJo doing this. Just because he is coming from the City and seeing what the City represents on that sign because those trucks and those type people pull up, it stands for integrity, honesty, character that has been built over 200  A Regular November 22, 2011 some years and now here we are over 200 and some years later coming up with a way to hire people so that when they go to a hospital or get sick or if the kids get sick, they are going to be a burden on the tax payer because they won’t have any insurance and they go to the hospital and we are going to pay for that anyway. Mr. Gunter added that Commissioner Pruitt was assuming that the people that we hire don’t have insurance with their spouse, or retired and have it with another pension provider. Commissioner Pruitt said that Mr. Gunter was assuming that they will have coverage. Mr. Gunter said that he was not assuming anything but Commissioner Pruitt was. Commissioner Pruitt explained that he was assuming that they don’t and if you are looking at it the other way, you have to be assuming that they will. Mr. Gunter said that he was expecting that there will be a certain group out there who only want to work part time. Commissioner Pruitt said “ he agreed that there may be a certain group of people, and this is not to you but this is the Commissioner Pruitt who feels they might want to work ten hours but that does not mean that we are suppose to hire and put them in that position, I think that this government entity should stand for –you work here, you work 40 hours and we can afford health benefits and we will make sure that you have them until the day comes that we cannot afford that, then that’s something different and we’re not there yet.” DISCUSSION WAS HELD. VERBATIM DISCUSSION IS ON TAPE OF THIS MEETING. The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Nay: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Ordinance adopted, affixed his signature and the date thereto and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor November 22, 2011 ATTEST: Carolyn Williams, City Clerk _________________________ ORDINANCE NO 46-11: FIRST READING ORDINANCE ACCEPTING PUBLIC IMPROVEMENTS IN BENT CREEK SUBDIVISION-SECTION 2, CONSISTING OF WATER AND SEWER FACILITIES On first reading of the Ordinance, it was moved by Commissioner Farmer, seconded by Commissioner Mills, that the Ordinance be adopted. DISCUSSION WAS HELD. VERBATIM DISCUSSION IS ON TAPE OF THIS MEETING. The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye:  A Regular November 22, 2011 WHEREUPON Mayor Austin declared the Ordinance adopted on its first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. _________________________ RESOLUTION NO. 105-11 RESOLUTION APPROVING PURCHASE OF TWELVE (12) DESKTOP COMPUTERS AND SEVEN (7) NOTEBOOK (LAPTOP) COMPUTERS FROM DELL MARKETING, LP, IN THE TOTAL AMOUNT OF $24,259.58 MOTION by Commissioner Farmer, seconded by Commissioner Mills, to adopt the resolution authorizing the purchase of twelve desktop and seven notebook personal computers from Dell Marketing LP in the amount of $24,259.58. COMMISSIONER FARMER stated that the City has an excellent IT Department and people in that department to recommend to us what is needed for the City and assumed that bid specification was recommended by the IT Department. Mr. Gunter said that the IT Department draws up the specifications for the bid. COMMISSIONER PRUITT asked Mr. Gunter what we were going to do with the old computers. Mr. Gunter replied that the hard drives are taken out and melted and we will sell the cases to whoever wants them and most of the time we don’t get any takers. COMMISSIONER TAYLOR asked Mr. Gunter “In your opinion did the specs that were created by the IT Department indicate precisely what was needed, no more and no less, than what it would take to perform the functions we need?” Mr. Gunter answered in the affirmative. Mr. Gunter added that the specs also asked for a three year on-site maintenance so, if we have an issue, then they will repair it here DISCUSSION WAS HELD. VERBATIM DISCUSSION IS ON TAPE OF THIS MEETING. The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Resolution adopted, affixed and his signature and the date thereto, and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor November 22, 2011 ________________________ CITY MANAGER’S REPORT: MR. RUSSELL R. SIGHTS, CITY MANAGER, reminded the Board that at the last Work Session he was asked that the city staff, mainly Joe Ternes and himself, to bring forth a list tonight of Local Government Development Incentives allowing the Board to consider what could be used to attract industry and business to Henderson. We have presented what we think is an exhaustive list and pretty exclusive to the local level, that’s not to say that there are not state programs that on request we can also consider but that’s not what we are presenting tonight. We are presenting to you a list of incentives that the Board of Commissioners can offer on their own to industry without getting approval from anyone else.  A Regular November 22, 2011 JOE TERNES, CITY ATTORNEY, stated that he had contacted the KLC and they sent this information to him and it was provided a couple of months ago. This is what KLC is putting out so cities can do, on their own initiative, to help attract business and industry and relying heavily on KLC to put out this information. There are things that are stated here that cities are not able to take advantage of, maybe more specifically because on the last page, it is mentioned that we can take advantage of our Home Rule abilities to possibly waive the occupational/net profits taxes as a part of a package that could be offered. The City could do that on its own. He stated that he thought there was a state program that requires that to be done and in fact we started one a couple of years ago and it didn’t develop. Home Rule ability gives the city some real flexibility and will in the future once these programs may be developed. Joe said that he had talked to the attorneys in the legal departments at KLC and they believe that Home Rule is fertile ground and that ability can be used in the future to develop programs in the City. COMMISSIONER FARMER asked Mr. Ternes “In your opinion, one of the items on this list is the Neighborhood Redevelopment Zones under KRS Chapter 99A. When we talk about Home Rule, in your opinion, would it be possible if we designated an area as a Neighborhood Redevelop Zone, and grant moratoriums to people who took existing buildings and made enhancements to them. Could we also develop our own program and have some sort of moratorium on new construction under Home Rule?” He continued by stating that he was not suggesting that city-wide but if we had a targeted neighborhood Redevelopment Zone, do we have the authority to give a five year moratorium on property taxes? MR. TERNES replied that the first thing you are going to have to get over when you are going to institute a program under Home Rule is to satisfy the Board of Commissioners that the state has never preempted the field and that would be to look at the statute, Chapter 99A in the Neighborhood Development Zones, and does that prohibit or preempting the field that would prevent the City from a similar Neighborhood Redevelopment Zone on Home Rule? Assuming that you could get over that hurdle, it may be very possible. COMMISSIONER FARMER said that since we are looking at Neighborhood Redevelopment, and we are going to offer some sort of moratorium on rehabilitation of property. In order to really rehab neighborhood zones, we need to find a way to work with new construction as well because not all property sadly is able to be rehabbed. To really redevelop a zone, you are looking for some new construction and the payback on that would not be dissimilar to the payback on rehabbing older properties. You would be investing today for the return in the future. MR. TERNES said that along those lines, I was asked yesterday by an individual that, in regard to the reassessment moratorium that we have been discussing and will have at our next meeting an amended version and whether or not you could take the property down to its footprint, that it would be more economical to raze the property and build it from the foundation or footprint up and would that qualify? He thought that was worthy of some discussion and mentioned it to the Mayor and City Manager. MAYOR AUSTIN commented that the moratorium appraisal would be on the property before is razed and again after improvements. COMMISSIONER FARMER said that today, there are a number of incentives in this information for manufacturing facilities but sadly there is just not a lot of people out there looking for places to create manufacturing jobs. There is tremulous growth these days in service jobs and he didn’t see a lot here that would help us in trying to offer some incentives to people who are providing service jobs in our community like retail establishments and people who deal in customer service. Mike suggested that our city staff work with the attorney to give us some examples of programs that we can put together for people who are in the retail or commercial service industry to try to put  A Regular November 22, 2011 together a program so that we don’t have to deal with these on a case by case basis. As he mentioned in a previous meeting, he met with a fellow over last weekend that has a very serious interest in coming to our community and it is not very easy to discuss with him what incentives we can offer because we have not formalized any real incentives in the retail/commercial area. Commissioner Farmer suggested that we try to put together some packages that will allow us the opportunity to react quicker than we can react now. Now, if we wanted to encourage someone to locate in our Central Business District, and they were in a retail or service type industry and they were going to hire 12-15 people, our idea is yes we want to do something but we don’t know what it is that we can do. COMMISSIONER TAYLOR asked Commissioner Farmer “when he was talking about a package it seems to me it would be wise to create this list of what city government can do and package that with what state, Economic Development people, and give them the whole basket full.” “ If you come to Henderson, this is all of the things that are available to you locally and on a state basis.” COMMISSIONER FARMER added that in some progressive communities it is not uncommon for city governments to even help with the acquisition of property, with the rehab of property in ways much stronger than tax moratoriums and if we are going to be “bullish” in this economy, we need to start looking at what are our best chances to enhance our opportunities because there are still some people that are looking to locate. We are in a fortunate position to not have a great deal of vacate space in our Central Business District but we do have some. The people who own those properties and who are interested in developing those properties don’t know who their tenants are going to be so it would certainly be a good time for us to start looking for ways to enhance someone to rent or lease those properties. MR. KEVIN SHEILLEY, NORTHWEST KENTUCKY FORWARD, stated that he had felt that this was an opportunity for a while and that we could really partner with the City. There are a number of programs both established and under Home Rule, our state association met recently and one of the big topics was – what were other communities were doing, like cities and counties using Home Rule to create incentive programs. There are a number of things that he felt that NWKF could partner with the city at putting together a real holistic approach to incentives. There are probably more things available through our office or through our partners that the City may not be aware of that are available. Whether that includes low interest loan programs, or our state and city programs that we work with and as you partner with KBI or just as you are talking about a great pool that we keep looking to use as a local tax increment financing district. Neighborhood Redevelopment is a great way to address that. He tells about a developer that came to his office interested in redeveloping an area that would be considered blighted and with a great pool that would allow him to do that. We welcome the opportunity to work with the Commission and the City staff to put together a plan and he feels sure that some of our partners like the Chamber and DHP would also love to help because we can bring to the City the programs that we know are happening in other cities. Even better than us creating our own would be to steal someone else’s and we would love to help you do that. MAYOR AUSTIN asked if there would be anything wrong with asking the City Manager to put together a group that would include NWKF and some other like-minded organizations and work through this and try to come back with something for us. MR. SIGHTS agreed to do that and will bring it back to the Board as a recommendation at our next meeting. _____________________________ COMMISSIONER’S REPORTS: COMMISSIONER PRUITT said “Yes, there is something from Commissioner Pruitt tonight. Commissioner Pruitt is probably upset in the direction this Commission is  A Regular November 22, 2011 going and believes that the history of Henderson and the character and honesty that those people, the Mayors represented on that wall would probably be shaking their heads on what we are trying to do with getting rid of meter readers and saving a nickel and giving away Netherland vacations at the promise of getting $20 million a year, I mean a million dollars over 20 years. I just think they would say “You guys are way off course.” And here we are, I think we are going in the right direction trying to help companies create jobs but I don’t think it is in the right direction when landlords like myself get tax breaks that we may or may not be able to afford because some of us may be in a better financial position but I don’t think we should be giving landlords tax breaks to increase personal wealth, I think we should be setting it so that we create jobs and we are not going in the right direction on that. I just don’t know where this Commission is going or headed but I hope we get back on track soon.” COMMISSIONER TAYLOR praised the people involved in having the Art Hop. It was a great gathering and brought in a huge crowd and it was a great night for Henderson. Also, he stated that he was extremely proud as a commissioner that he has been able to vote for more efficiency and greater customer service from city government. That’s what I was elected to do and that is what I will continue to strive to do as long as I am in this seat. COMMISSIONER MILLS stated that we received a letter last week regarding the rise of the City’s contribution for retirement next year and asked that someone address that. MR. SIGHTS explained that Mrs. Connie Galloway, Human Resources Director, sat in on the Webinar as the Kentucky Employment Retirement System set the rates for next year. As you know, we are at the mercy of the Employment Retirement System Board because they set the rates and local government has no control over the regular rates or the hazardous rates paid to Police and Fire. We just have to pay the cost associated with those retirement issues. The dollar impact was approximately $150,000 in addition to what we are already paying which is over $3 million dollars. Mr. Sights asked Mrs. Galloway what the discussion among the Board members when the rates were set? Mrs. Galloway stated that the discussion, at great length, was about the investments and the concern of going back to KLC to recommend to go back to the Legislature to ask them to fund the investments at an 80% to 85% and also to try to manage the control of costs any way they can. The percentage increase for non-hazardous was 3% and hazardous was 5% increase. Mr. Gunter added that it was said that rates have doubled since 2004. Commissioner Farmer noted that they have made an number of assumptions in that program since 2004 that apparently were poor assumptions so their investment history has not been very good. Commissioner Mills replied that the point is that we continue to take our maximum 4% tax increase annually and it’s continually gobbled up by retirement and for the last 10 years that I have been here, it’s been gobbled up by personnel costs and that’s why in my opinion we have to be creative in our employment and may even have to be restrained in our employment in the future because we only have one other option and that is to raise taxes over and above 4% to finance that. Commissioner Pruitt asked Commissioner Mills, “did you say we were going to have to start cutting employees, is that part of your plan?” Commissioner Mills responded “I didn’t say that, I said that we may have to be restrained.” Commissioner Pruitt said “not when you first said that you were talking about cutting employees.” Commissioner Mills said “I think in the future that’s going to be one of our options, to cut employees and we are going to have to decide to either raise taxes or cut services and we have always said that, and we have to decide what our level of service is versus our income and taxes.” “I think that in this climate 4% maximum on property taxes is the maximum that this Commission will ask for and if it continues to be gobbled up in personnel cost we have got to either decide whether to hire someone or not to hire them or to be creative like Mr. Gunter and other City staff are being challenged to do. I think it’s a pertinent thing to do and I think it is the responsible thing to do with city tax dollars as well as to be creative in these situations.” We just basically disagree on that, Mr. Pruitt. Commissioner Pruitt responded that there are more than one or two ways to save money for the taxpayers and I  A Regular November 22, 2011 think we are just a little narrow-minded looking at just two ways. Commissioner Mills said that when you look at personnel costs in our budget and it is 85% personnel costs and my favorite line is “you can only cut sticky notes and paper clips so much and then you get into personnel and we are just about there when you don’t replace equipment like we should and when we don’t get to put down as much blacktop as we should and when we start getting into services because of peoples’ retirement and benefits, then it’s time to look at that. I think we have done a decent job at looking at those items. As a matter of fact, I think our employees have stepped up and understood that the situation that we are in with health insurance and today I was told and got a very good report about the employees understanding that they have to pay some for it and the positive response they have given the staff. He continued by saying that he felt that we were doing the right thing by being creative in staffing, etc. MR. SIGHTS said that for the last 10 days, we have been going through open enrollment with employees having group meetings in here and then one on one meetings for anyone who has individual questions. We have not done it that way exclusively in the past but it is paying benefits and I have heard the same that Commissioner Mills has heard and we have had compliments about how the information has been disseminated by the HR staff and how thorough it is and what a good job they have done and we have attempted to answer all the questions of any employee on what their options are and what they need to look at and will help them in any way but I just wanted to complement HR staff and I wanted you to know the employees have been very receptive to what they have heard and act like they appreciate us doing this and being as thorough as we have been with them. COMMISSIONER PRUITT said “the City Manager neglected to answer me this question so let’s get this clarified. The changes of a million dollar switchover that is going to be on their backs hasn’t took place yet so that doesn’t take place until next year, so how does people be happy, city employees that I talk to don’t have anything to say because it hasn’t took effect yet and how are you going to be happy about something and you got a million dollar debt coming next year and it hasn’t even hit yet. I don’t understand that statement. MR. SIGHTS responded by saying “I give this Board a reaction to what I was hearing......COMMISSIONER PRUITT said “but I just said that he said something different and you kinda said I agree with what he said, he said something about the health care thing and they were saying something about the health care and they are happy with health care.” MR. SIGHTS responded “Mayor, I don’t have anything further, thank you.” _______________________________ EXECUTIVE SESSION: REAL PROPERTY MOTION by Commissioner Farmer, seconded by Commissioner Mills, pursuant to the provisions of KRS 61.810(1)(b) that the Board of Commissioners go into Executive Session for the purpose of deliberation on the City’s future acquisition or sale of real property located off Highway 60 East in that publicity would likely affect the property being sold. The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye:  A Regular November 22, 2011 MEETING RECONVENE: MOTION by Commissioner Robert Pruitt, seconded by Commissioner Taylor, the Board of Commissioners reconvened in regular session. The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye: ________________________________ MEETING ADJOURN: MOTION by Commissioner Mills, seconded by Commissioner Taylor, the meeting adjourned The vote was called. On roll call, the vote stood: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye: ________________________________ WHEREUPON Mayor Austin declared the meeting adjourned at approximately 7:05 p.m. ___________________________ Steve Austin, Mayor ATTEST: December 13, 2011 _________________________ Carolyn Williams, City Clerk