Board of Commissioners Meetings

A Regular September 25, 2012 A regular meeting of the Board of Commissioners of the City of Henderson, Kentucky, was held on Tuesday, September 25, 2012, 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 Pastor Wayne Burt, Bennett Memorial United Methodist Church. MAYOR AUSTIN introduced Trooper Isaac, representing Mr. Bill Gary and Boy Scout Troop 280, who led 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 Mike Farmer Commissioner Alan C. Taylor Commissioner Robert N. Pruitt _______________________ ALSO IN ATTENDANCE INCLUDED: Mr. Russell R. Sights, City Manager Mr. William (Buzzy) Newman, Assistant City Manager Mrs. Dawn Kelsey, City Attorney Mrs. Carolyn Williams, City Clerk Mr. Danny Froehlich, Fire Chief Mr. Owen Reeves, Gas System Director Mr. Robert Gunter, Finance Director Mrs. Kay Mulligan, Revenue Supervisor Mr. David Pillar, Police Major Mr. Bruce Shipley, HWU General Manager Mr. Leeson Neel, HWU Chief Financial Officer Mr. Mike Richardson, Police Reserve Officer Mr. Bill Gary and Boy Scout Troop 280 Mr. Kenny Wallace Mr. Tom Davis Mr. Frank Boyett, The Gleaner _________________________ PRESENTATION: 20-YEAR SERVICE AWARD MAYOR AUSTIN expressed appreciation to Helen Keaton, Occupational Tax Representative Senior, for her years of service and dedication to the City. ________________________ PRESENTATION: 25-YEAR SERVICE AWARD MAYOR AUSTIN expressed appreciation to Shirley VanBussum, Information Technology Operations Technician, for her years of service and dedication to the City. ________________________ APPROVAL OF CONSENT AGENDA: MAYOR AUSTIN asked Carolyn Williams, City Clerk, to read the following items included on the Consent Agenda:  A Regular September 25, 2012 Minutes: September 11, 2012, Regular Meeting September 18, 2012, Work Session MOTION by Commissioner Farmer, seconded by Commissioner Mills, to approve the items on the Consent Agenda as enumerated. The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Aye: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Mayor Austin ------------------------- Aye: ______________________________ ORDINANCE 28-12: SECOND READING ORDINANCE OF THE CITY OF HENDERSON, KENTUCKY, PROVIDING FOR THE LEVY AND COLLECTION OF AD VALOREM TAXES FOR THE FISCAL YEAR BEGINNING JULY 1, 2012, AND PROVIDING FOR THE TIME OF PAYMENT FOR SUCH TAXES, PENALTY, INTEREST AND DISCOUNT On second reading of the Ordinance, it was moved by Commissioner Mills, seconded by Commissioner Farmer, that the Ordinance be adopted. DISCUSSION WAS HELD. VERBATIM DISCUSSION IS ON TAPE OF THIS MEETING. COMMISSIONER PRUITT repeated that he was still against the city taking the compensating tax rate, which is geared to bring in approximately the same amount of revenue as the previous year’s tax rate, not including changes in the assessment or new growth. The city could have adopted a property tax that would result in a 4-percent increase in revenues but chose to take the compensating rate this year as well as 2009 and 2010, at which time Commissioner Pruitt favored it. Commissioner Pruitt raised the issue of tax assessment moratoriums and said “I don’t think we should be giving tax breaks to people who can afford it” and raising taxes on those who can’t; we’re subsidizing the big people.” COMMISSIONER MILLS explained that the tax assessment moratorium defers only the tax on improvements to the property for only five years. After five years, the property is assessed and will be placed on the tax rolls now having a higher value and taxed for years to come. Commissioner Mills pressed Commissioner Pruitt to explain how the city should set its tax rate if it does not take the compensating rate, which is figured by the state government. Commissioner Pruitt failed to come up with an answer other than to say the tax assessment moratorium program should be stopped. COMMISSIONER TAYLOR said that Commissioner Pruitt was taking a short- term view of city finances. He stated that he thought the city leaders could be more progressive about building jobs through tax incentives. MAYOR AUSTIN asked for comments from the audience and Mr. Kenneth Wallace suggested that rather than raise taxes, the city should try saving money.  A Regular September 25, 2012 The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Nay: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- 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/s Steve Austin Steve Austin September 25, 2012 ATTEST: Carolyn Williams __________________________ RESOLUTION NO. 90-12 RESOLUTION ADOPTING THE HENDERSON COUNTY AREA SOLID WASTE MANAGEMENT PLAN 2013-2017 UPDATE MOTION by Commissioner Farmer, seconded by Commissioner Taylor, to adopt the resolution adopting the Henderson County Solid Waste Management Area Plan 2013-2017 Update. The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Aye: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature and the date thereto, and ordered that the same be recorded /s/ Steve Austin Steve Austin, Mayor ATTEST: September 25, 2012 Carolyn Williams, City Clerk _________________________ RESOLUTION NO. 86-12 RESOLUTION AWARDING BID FOR THE PURCHASE OF A ONE-TON DUMP TRUCK TO TOWN AND COUNTRY FORD OF EVANSVILLE, INDIANA, IN THE AMOUNT OF $41,255.00 MOTION by Commissioner Mills, seconded by Commissioner Taylor, to adopt the resolution authorizing the award for the purchase of a 2012 one-ton dump truck, with dump body, to Town and Country Ford, Evansville, Indiana, in the amount of $41,255.00. The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Aye: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Mayor Austin ------------------------- Aye:  A Regular September 25, 2012 WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature and the date thereto, and ordered that the same be recorded /s/ Steve Austin Steve Austin, Mayor September 25, 2012 ATTEST: Carolyn Williams, City Clerk _____________________________ RESOLUTION NO. 87-12 RESOLUTION AWARDING BID FOR THE PURCHASE OF UNIFORMS FOR THE FIRE DEPARTMENT TO SIEGEL’S OF EVANSVILLE, INDIANA, IN THE AMOUNT OF $40,783.25 MOTION by Commissioner Pruitt, seconded by Commissioner Farmer, to adopt the resolution authorizing the award of a contract to Siegel’s Uniforms, Evansville, Indiana, for the purchase of fire uniforms in accordance with their low bid price. The total estimated cost of the purchase is $40,783.25. The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Aye: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature and the date thereto, and ordered that the same be recorded /s/ Steve Austin Steve Austin, Mayor September 25, 2012 ATTEST: Carolyn Williams, City Clerk _____________________________ RESOLUTION NO. 88-12 RESOLUTION AWARDING BID FOR THE PURCHASE OF A 2013 FORD EXPLORER, 4-WHEEL DRIVE MID-SIZE SUV TO TOWN AND COUNTRY FORD OF EVANSVILLE, INDIANA, IN THE AMOUNT OF $23,550 MOTION by Commissioner Taylor, seconded by Commissioner Pruitt, to adopt the resolution authorizing the award of a bid for the purchase of a 2013 four-door, four-wheel drive Ford Explorer to Town and Country Ford, Evansville, Indiana, in the amount of $23,550. The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Aye: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature and the date thereto, and ordered that the same be recorded  A Regular September 25, 2012 /s/ Steve Austin Steve Austin, Mayor September 25, 2012 ATTEST: Carolyn Williams, City Clerk _____________________________ RESOLUTION NO. 89-12 RESOLUTION AWARDING BIDS FOR THE PURCHASE OF AN EXTENDED CAB 4 x 4 PICK-UP TRUCK TO SAM SWOPE AUTO GROUP, MEMPHIS, TENNESSEE IN THE AMOUNT OF $23,120.87; AND FOR A CAB AND CHASSIS ONLY TO BACHMAN AUTO GROUP OF LOUISVILLE, KENTUCKY, IN THE AMOUNT OF $29,796.00 MOTION by Commissioner Pruitt, seconded by Commissioner Taylor, to adopt the resolution authorizing the purchase of a 2013 Ford F-150 extended cab pick-up truck from Sam Swope Auto Group, Memphis, Tennessee, in the amount of $23,120.87; and for the purchase of a 2013 Chevrolet one-ton cab and chassis from Bachman Chevrolet, Louisville, in the amount of $29,796 .00 The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Aye: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature and the date thereto, and ordered that the same be recorded /s/ Steve Austin Steve Austin, Mayor September 25, 2012 ATTEST: Carolyn Williams, City Clerk _____________________________ COMMISSIONER’S REPORT: COMMISSIONER TAYLOR said “I feel somewhat ashamed that we have a commissioner who doesn’t think that the contractors that do the work, the electricians that do the work, the drywall people who do the work; the little people that do the improvements that are spurred by the tax moratorium. I’m ashamed that those people are not considered in his opinion. I think it is kind of sad that we as city leaders don’t come up with all the possible ways that we can be progressive and expanding the development in our community which creates jobs, which builds a higher and more tax base for the future. That’s the first part of my comment. My second part is that when I was elected to this position, I took an oath of office and it was a sincere promise that I would uphold the Commonwealths’ Constitution and operate the City of Henderson to the best of my ability with a balanced budget. Last year under a very vigorous conservation program by our department managers, as far as fuel economy and efficiency of their operations and in the face of that, we faced a quarter of a million dollar increase [unexpected, uncontrollable increase in fuel costs] and we don’t know what that increase is going to be this coming budget year but we do know some things that we just passed the budget on. We voted to give Cost of Living increases to the employees, merit increases to the employees, which totals about $330,000 and then you add the $65,000 pension increases so you are up to ...the promises that we have made to our city employees’ increase this  A Regular September 25, 2012 budget year is $395,000. The compensating rate is only going to bring in $262,000 in property taxes and if you add the personal taxes to that, the total is $288,000. You add those two figures together and they don’t balance. I can’t imagine any commissioner not having the integrity to stick with the oath of office that he swore in as to balance the budget. We have got to have revenue in order for these figures to match and the only way that I could see that you could possibly make these numbers match is if he were in favor of, or against employee raises. I’m not in favor of that but I am going to stand by the oath of office that I swore when I took this office. We are going to have a balanced budget and this was necessary for that to occur. COMMISSIONER PRUITT replied “I wasn’t paying too close attention but I thought I heard him say that he was ashamed of something or another. Here’s what you really should be ashamed of: You took a week away for vacation from firemen who have been getting it for 28 years. You need to be ashamed that you’re losing policemen who are running trying to find jobs up in Owensboro and everywhere else because of the way you took their benefits and the way you treat them. You need to be ashamed because you have City workers running home throwing the shirt on the floor when they used to be proud of the City emblem. These are the things that you need to be ashamed of. You need to be ashamed when you came on the this commission that you told me that you would be an independent thinker. The only thing you’ve ever been is a “yes man” for Mike Farmer. And here’s another thing that you need to be ashamed of – you need to be ashamed of kicking spouses off city insurance when they had been told that when you come to work for the city, you will have good insurance but your pay may not be as top in the Tri-State as everybody else but we make sure you have good benefits, that’s what you need to be ashamed and this whole commission. COMMISSIONER MILLS said, “Obviously, it’s a month before election time, you can tell that by our meeting and discussions. Obviously, Commissioner Pruitt and the rest of the Commission has philosophical differences and those philosophical differences are bubbling over tonight. We would laugh about it if wasn’t so bad and to be quite honest with you, this is a serious position that we are in and a lot of trust and faith is put into this Board to continue city government and to be there in the tough times and in the good times; be there during the ice storm and when catastrophic things happen we have to be prepared and we have to have reserves that will keep the electricity on and keep the streets clean, do the things that we need to be prepared to do. Without a reserve and without looking forward and keeping a reserve that will allow city government to operate in the tough times. Without that reserve, we cannot do what we were elected to do. I think, ultimately, what it comes down to is a short term view vs. a long term view. One of the first things when Mayor Austin got into office a couple of years ago, he looked at the finances and gave us a very easy to read graph that showed that our expenses were out-racing our revenues even at taking the 4% increase annually. This year we are taking the compensating rate, which is substantially less than the 4% increase. We continue doing the compensating rate and we are going to be jeopardizing financial stability of the city in the future. So, I’m not extremely comfortable in taking the compensating rate but that’s what we are taking this year. There are so many pressures and I think Commissioner Taylor hit on this, there are so many pressures on local government. Federal and state government continue to push down responsibilities onto local government and local government is expected to continue to give the services that citizens have expected all this time but yet we are suppose to magically figure out how to do this without asking for a slight tax increase. Commissioner Pruitt, I don’t see how we do it and, over time- short run, yes, maybe it will get us elected if we don’t raise taxes and we talk about not raising taxes but if you stay on this Board as long as I have been on it, you start seeing what I would call, those irresponsible acts catching up to you. I would like to see the City of Henderson progressing and being with us 15 or 20 years from now without some kind of catastrophic, huge tax increase in the future. If we continue to bite off a bit, a bit, a bit, we are going to keep Henderson stable and that’s what we can brag about and talk about the stability of the City of Henderson because we weathered a tough, tough economic crisis and we are in good shape. I think that is basically from having intelligent, smart leaders at the helm that have slowly  A Regular September 25, 2012 incrementally increased the tax rate so that we can afford these services and afford the people giving the services to Henderson. I take this job seriously and sometimes I have to agree with Commissioner Taylor, that it’s embarrassing when we get up here and debate at times the way that we debate because it seems like we’ve grabbed numbers out of the air just to prove a point and to be quite honest with you, the million dollars that was grabbed out of the air and talked about, I’m not aware of that number and I hope that we can find that because if it is $800,000, it’s still not a million dollars. I think we should be careful when we are generalizing numbers and grabbing numbers out of the air. I enjoy being a part of the commission and having debate over philosophical issues but sometimes these debates recently have just really turned into school yard finger pointing matches with Commissioner Pruitt pointing fingers at Commissioner Mills and, just to set the record straight, when I applied for the tax moratorium on our building downtown, it was in an effort to increase the awareness of the tax moratoriums that were available and for one thing, it sure has increased the awareness because Commissioner Pruitt reminds me of it every meeting. Over five years, that will save our business $1,700 but after five years, I will be paying on the restored value of the building. It was on the tax rolls at $55,000 and after five years, it will be on the tax rolls at about $140,000 so that will bring in more money to the city than the moratorium gave to our business at $1,700 over five years. That’s about $350 a year so I do think that incentives to business when you look at the long picture increasing revenue, increases the tax base of our city and gives people a reason to invest in our city. Sooner or later somebody is going to invest in the City of Henderson that could maybe invest in Evansville or Newburgh with the reason that they invest in our city is because some of the tax advantages that we have. That’s my hope. This is an election year and obviously everybody has got to state their philosophical beliefs but let’s try to keep our rhetoric down just a little bit because it’s not the most appropriate thing for us to be doing up here.” COMMISSIONER FARMER stated that the downtown paving project was completed since our last meeting and he was pleasantly surprised, it’s a much better finish than I ever thought we would get and he commended HWU for putting the streets back into superb condition and would like to thank Tom Williams personally because he has been the point man on this project and he has been more particular than he had to be and approached it with a community minded spirit. “He followed with what Commissioner Mills and Commissioner Taylor said, you know there have been a lot of numbers thrown around tonight and I would like to caution the public as well as the members of this board; some of those numbers just aren’t exactly true. Some of them may be marginally true and some of them may be partially true but the fact is some of them are just plain untrue. I just think we need to recommit ourselves and make it perfectly clear that the only numbers we really need to be working with and considering here are number that come from staff that we know to be true because numbers thrown around in general conversation and that are used is some superlative way to try to make a point, just really don’t fall on my ears as being very impressive and Robby, to follow up on your comment, as some point on this board we have got to get passed this idea of sitting on this bench during an election year and issuing personal attacks in order to try to foster our own political futures. When you misrepresent untruths as truths and throw personal attacks out on this bench then we have regressed far, far from what we are suppose to be about. I would like to see us get back to the business of city government and put the politics aside.” MAYOR AUSTIN also congratulated HWU for what they have done for our community and the downtown area and including the striping. _________________________________ EXECUTIVE SESSION: PERSONNEL MOTION by Commissioner Farmer, seconded by Commissioner Taylor, to go into Executive Session pursuant to the provisions of KRS 61.810(1)(f) for discussions or  A Regular September 25, 2012 hearings which might lead to the appointment, discipline, or dismissal of an individual employee or member. The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Aye: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Mayor Austin ------------------------- Aye: ____________________________ MEETING RECONVENE: MOTION by Commissioner Pruitt, seconded by Commissioner Taylor, the Board of Commissioners reconvened in regular session. RESOLUTION NO. 91-12 RESOLUTION INCREASING SALARY OF ASSISTANT CITY MANAGER EFFECTIVE AS OF OCTOBER 1, 2012 MOTION by Commissioner Farmer, seconded by Commissioner Taylor, to adopt the resolution increasing the salary of Assistant City Manager, William L. “Buzzy” Newman, to $96,482.72 effective as of October 1, 2012. The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Aye: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Mayor Austin ------------------------- Aye: WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature and the date thereto, and ordered that the same be recorded /s/ Steve Austin Steve Austin, Mayor September 25, 2012 ATTEST: Carolyn Williams, City Clerk __________________________________ MEETING ADJOURN: MOTION by Commissioner Taylor, seconded by Commissioner Pruitt, to adjourn the meeting. The vote was called. On roll call, the vote stood: Commissioner Pruitt ----------------- Aye: Commissioner Taylor ---------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Farmer --------------- Aye: Mayor Austin ------------------------- Aye:  A Regular September 25, 2012 WHEREUPON: Mayor Austin declared the meeting adjourned at approximately 6:45 p.m. ___________________________ Steve Austin, Mayor October 9, 2012 ATTEST: _______________________ Carolyn Williams, City Clerk