Board of Commissioners Meetings

A Regular August 26, 2014 A regular meeting of the Board of Commissioners of the City of Henderson, Kentucky, was held on Tuesday, August 26, 2014, 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 Mrs. Britney Smith, Executive Director, Habitat for Humanity. Mr. Aiden Hite led the assemblage in the recitation of the Pledge of Allegiance to our American Flag. There were present Mayor Steve Austin presiding: PRESENT: Commissioner Jan Hite Commissioner Robert N. Pruitt Commissioner Tom Davis Commissioner Robert M. (Robby) Mills __________________________ ALSO IN ATTENDANCE INCLUDED: Mr. Russell R. Sights, City Manager Mr. William L. Newman, Jr., Assistant City Manager Mr. Randall Redding, Acting City Attorney Ms. Carolyn Williams, City Clerk Mr. Owen Reeves, Gas System Director Mr. Robert Gunter, Finance Director Mr. Frank Cates, Deputy Police Chief Mr. Leason Neel, HWU Chief Financial Officer Mr. Tom Williams, HWU General Manager Mrs. Britney Smith, Executive Director, Habitat for Humanity Mr. Mike Vickers Mrs. Essie Day, Librarian Mrs. Donna Spenser, Depot Community Room Mr. Aiden Hite Mr. Mike Richardson, Police Reserve Officer Mr. Frank Boyett, The Gleaner _____________________________ PRESENTATION: DEPOT COMMUNITY ROOM MRS. DONNA SPENCER, appeared before the Board of Commissioners to request $4,000 for video equipment to be installed in the Depot Community Room in order to present videos of interviews made with Henderson and Henderson County veterans to coincide with our November 11th Veteran’s Day celebration. Mrs. Spencer thanked Mr. Tom Jake for taping the interviews with each veteran. She suggested that others who use the Depot Conference Room might also benefit from this video system. Mayor Austin explained that this would be a special request and staff would review this request and he would have an answer at the next Board meeting. ____________________________ PRESENTATION: AMERICAN PUBLIC GAS ASSOCIATION SAFETY MANAGEMENT EXCELLENCE AWARD – HENDERSON MUNICIPAL GAS MR. OWEN REEVES, GAS SYSTEM DIRECTOR, displayed the 2014 APGA Safety Management Excellence Award given to the Henderson Municipal Gas Department. This national award is presented annually to a APGA member gas utility that has innovative and effective programs to instill a safety culture in its workforce.  A Regular August 26, 2014 CONSENT AGENDA: MAYOR AUSTIN asked the City Clerk to read the items on the Consent Agenda. Minutes: AUGUST 12, 2014, REGULAR MEETING Resolutions: RESOLUTION NO. 74-14 – RESOLUTION AUTHORIZING PARTICIPATION IN KENTUCKY PRIDE LITTER ABATEMENT GRANT PROGRAM RESOLUTION NO. 75-14 – RESOLUTION AWARDING BID FOR CLEANING SERVICES FOR PUBLIC SAFETY BUILDING (FORMERLY PEABODY BUILDING) TO FRANTZ BUILDING SERVICES, INC., OF OWENSBORO, KENTUCKY RESOLUTION NO. 76-14 – RESOLUTION AWARDING BID FOR THE PURCHASE OF ITRON METER READING EQUIPMENT TO UNITED SYSTEMS AND SOFTWARE, INC. OF BENTON KY, IN THE AMOUNT OF $29,761.00 MOTION by Commissioner Mills, seconded by Commissioner Davis, to approve the Consent Agenda as presented. The vote was called. On roll call, the vote stood: Commissioner Davis ----------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Hite ----------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye: ______________________________ ORDINANCE NO. 27-14: SECOND READING SUMMARY OF ORDINANCE NO. _27-14_______ OF THE CITY OF HENDERSON, KENTUCKY ORDINANCE NO. _27-14_____ AN ORDINANCE OF THE CITY OF HENDERSON, KENTUCKY AUTHORIZING THE ISSUANCE OF GENERAL OBLIGATION BONDS, SERIES 2014 IN THE AGGREGATE PRINCIPAL AMOUNT OF $8,000,000 (SUBJECT TO A PERMITTED ADJUSTMENT INCREASING OR DECREASING THE SIZE OF SAID BONDS BY UP TO $800,000) FOR THE PURPOSE OF FINANCING THE COSTS OF THE ACQUISITION, CONSTRUCTION, INSTALLATION AND EQUIPPING OF NEW MUNICIPAL WATER, SANITARY SEWER AND STORM SEWER IMPROVEMENTS AND ADDITIONS; APPROVING THE FORM OF BONDS; AUTHORIZING DESIGNATED OFFICERS TO EXECUTE AND DELIVER THE BONDS; AUTHORIZING AND DIRECTING THE FILING OF NOTICE WITH THE STATE LOCAL DEBT OFFICER; PROVIDING FOR THE PAYMENT AND SECURITY OF THE BONDS; CREATING A BOND PAYMENT FUND; ESTABLISHING A BOND SINKING FUND; AUTHORIZING THE ACCEPTANCE OF THE BID OF THE BOND PURCHASER FOR THE PURCHASE OF THE BONDS; AUTHORIZING OTHER ACTIONS IN CONNECTION WITH THE ISSUANCE OF THE BONDS; AND REPEALING INCONSISTENT ORDINANCES. This Ordinance (the "Ordinance") sets forth general rules, regulations and conditions for the issuance by the City of Henderson, Kentucky (the "City") of its General Obligation Bonds, Series 2014 in the aggregate principal amount of approximately $8,000,000, (the “Bonds”) for the purpose  A Regular August 26, 2014 of (i) financing new municipal water, sanitary sewer and storm sewer improvements and additions (the "Project") to the City’s combined and consolidated municipal water, sanitary sewer and storm sewer system (the "System") and (ii) paying the costs of issuing the Bonds. Provisions are made in the Ordinance for, among other things (a) the authorization and issuance of the Bonds; (b) the application of the proceeds of the Bonds; (c) the establishment of a Bond Payment Fund and Construction Fund; (d) the establishment and maintenance of a bond sinking fund; and (e) certain covenants of the City with respect to the Bonds. The Bonds are to be sold at public, competitive sale, and shall mature, or be subject to mandatory sinking fund redemption, in varying amounts on November 1 of each of the years 2015 through 2034. The Bonds pledge the full faith and credit of the City and provision is made for the collection of a tax to pay the principal of, and interest on the Bonds, subject to certain credits, as provided in Section 7 of the Ordinance. As required by KRS 83A.060, the following Section 7 of the Ordinance is set forth in its entirety: “Section 7 -- General Obligation. The Bonds shall be full general obligations of the City and, for the payment of said Bonds and the interest thereon, the full faith, credit and revenue of the City are hereby pledged for the prompt payment thereof. During the period the Bonds are outstanding, there shall be and there hereby is levied on all the taxable property in the City, in addition to all other taxes, without limitation as to rate, a direct tax annually in an amount sufficient to pay the principal of and interest on the Bonds when and as due, it being hereby found and determined that current tax rates are within all applicable limitations. Said tax shall be and is hereby ordered computed, certified, levied and extended upon the tax duplicate and collected by the same officers in the same manner and at the same time that taxes for general purposes for each of said years are certified, extended and collected. Said tax shall be placed before and in preference to all other items and for the full amount thereof provided, however, that in each year to the extent that the other lawfully available funds of the City are available for the payment of the Bonds and are appropriated for such purpose, the amount of such direct tax upon all of the taxable property in the City shall be reduced by the amount of such other funds so available and appropriated.” A complete copy of the ordinance may be reviewed at the office of the City Clerk, City of Henderson, Kentucky. MOTION by Commissioner Pruitt, seconded by Commissioner Hite, that the Ordinance be adopted. MR. RUSSELL R. SIGHTS, CITY MANAGER, said that these bonds will be rated and that will be one factor to determine at what interest rate they are sold. Last week we had what is called a rating call by the rating agency and expect to notified of the bond rating by this Friday. The vote was called. On roll call, the vote stood: Commissioner Davis ----------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Hite ----------------- 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 August 26, 2014 ATTEST: Carolyn Williams, City Clerk  A Regular August 26, 2014 ORDINANCE NO. 28-14: SECOND READING ORDINANCE AMENDING UTILITIES ORDINANCE ORDINANCE AMENDING CHAPTER 23, UTILITIES; BY ADDING NEW ARTICLE VIII, TRENCHLESS CONSTRUCTION, SECTIONS 23-161 THRU 23-166, OF THE CODE OF ORDINANCES OF THE CITY OF HENDERSON MOTION by Commissioner Hite, seconded by Commissioner Pruitt, that the Ordinance be adopted. The vote was called. On roll call, the vote stood: Commissioner Davis ----------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Hite ----------------- 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 August 26, 2014 ATTEST: Carolyn Williams, City Clerk ________________________________ ORDINANCE NO. 29-14: SECOND READING ORDINANCE AMENDING STREETS AND SIDEWALKS ORDINANCE ORDINANCE AMENDING CHAPTER 20, STREETS, SIDEWALKS AND OTHER PUBLIC PLACES, ARTICLE I, IN GENERAL, BY ADDING NEW SECTION 20-10, PUBLIC UTILITY EASEMENTS, OF THE CODE OF ORDINANCES OF THE CITY OF HENDERSON MOTION by Commissioner Hite, seconded by Commissioner Mills, that the Ordinance be adopted. The vote was called. On roll call, the vote stood: Commissioner Davis ----------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Hite ----------------- 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 August 26, 2014 ATTEST: Carolyn Williams, City Clerk  A Regular August 26, 2014 ORDINANCE NO. 30-14: SECOND READING ORDINANCE AMENDING STREETS, SIDEWALKS AND OTHER PUBLIC PLACES ORDINANCE ORDINANCE AMENDING ARTICLE II, EXCAVATIONS, OF CHAPTER 20, STREETS, SIDEWALKS AND OTHER PUBLIC PLACES, AND SECTION 20-24 THROUGH 20-28 OF THE CODE OF ORDINANCES OF THE CITY OF HENDERSON MOTION by Commissioner Mills, seconded by Commissioner Pruitt, that the Ordinance be adopted. The vote was called. On roll call, the vote stood: Commissioner Davis ----------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Hite ----------------- 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 August 26, 2014 ATTEST: Carolyn Williams, City Clerk ___________________________ ORDINANCE NO. 31-14: FIRST READING ORDINANCE PROVIDING FOR THE LEVY AND COLLECTION OF AD VALOREM TAXES ORDINANCE OF THE CITY OF HENDERSON, KENTUCKY, PROVIDING FOR THE LEVY AND COLLECTION OF AD VALOREM TAXES FOR THE FISCAL YEAR BEGINNING JULY 1, 2014, AND PROVIDING FOR THE TIME OF PAYMENT FOR SUCH TAXES, PENALTY, INTEREST AND DISCOUNT MOTION by Commissioner Mills, seconded by Commissioner Davis, that the Ordinance be adopted. MR. SIGHTS noted that the real estate assessments are up for the year but the personal property assessments decreased so that is a factor in setting the tax rate. In the Budget Work Session held in May 2014, the Board of Commissioners, as a whole, directed us to budget based on the compensating rate and we have done so. Mr. Sights added that the City allows the first working day of a new year to pay your tax on time, without penalty, unlike the County and the State, where any tax that is unpaid on December 31st, has a penalty applied on the first working day of the new year. In about 1985 or 1986, a gentleman called Mr. Sights and suggested that he liked to accumulate as many deductions as he could every other year so he could pay a lesser amount on his taxes. In the alternate year, he usually would just take the standard deductions. Mr. Sights suggested that idea to his Board at that time and was pleased to say that it has survived four City Managers since and never been changed.  A Regular August 26, 2014 COMMISSIONER PRUITT asked Mr. Robert Gunter, Finance Director, if he recalled the conversation he had with him regarding what tax rate could allow every property owner to receive a $25 discount? Mr. Gunter replied that he did not have that information with him, and since they had talked over the telephone, he could not remember if he had kept any notes. COMMISSIONER PRUITT asked the Board to consider his passionate plea to give the property taxpayers some kind of compensation this year. He stated that the City has given away $20,000 to one organization and $50,000 to another as well as the $4,000 that we have been asked for tonight. Commissioner Pruitt said that property tax payers are the ones that pay for all the bills that keep this City going. There has been a couple of things that have happened that shows that we haven’t been good stewards of taxpayer’s money. He continued by saying that we have 71 days for this Commission, who have done some great things, but here lately we have been off the mark. Since the property taxpayers are the ones who pay all the bills, we could afford to give them a break, and he thinks that we should. He asked the Board to consider his plea to give the property taxpayers a break. MAYOR AUSTIN commented that taking this compensating rate is a much smaller increase than what is available to take and the $267,000 that comes in for property tax actually won’t even pay for the 1.5% Cost of Living Increase for our employees. We are going backwards, in some cases, because our expenses outweigh our revenues. The Mayor added that he thought that we were giving a break to our citizens by taking the lowest of four or five options available on the tax rate. Commissioner Pruitt said that it would not be the lowest, because the lowest would be the tax rate that he and Mr. Gunter talked about on the phone, to give the taxpayer a $25 discount. COMMISSIONER PRUITT asked Mr. Gunter for the number of dollars that the city has given away in the last two years and then figure out and give it back to the property taxpayers. How much money have we given organizations and non-profit organizations? He listed the $50,000 to Community One to fix up some houses. He added he was against the high salaries of some and we should give the property owners a $25 break on taxes. We have 71 days until the election and, this Board has done a lot of great things but for the last three decisions, this Board has been off track and these people who will be voting on November 4th so you have 71 days and you better get your house in order. COMMISSIONER MILLS stated that, to be honest with you, Mr. Pruitt, this is the time for the people to see the difference between us and yourself. He did not consider giving Community One the $50,000 as a giveaway because he considered it an investment in the community; it’s called community development. Commissioner Mills added, I don’t consider giving deserving employees increases a giveaway. I consider that an investment in our organization and think that when we’re talking about giveaways, nobody gives money away up here. Money goes for services, equipment, quality of life in our community and nobody gives things away; we don’t give money away. He recalled a conversation with someone he admired that told him that one of the best things an organization could do would be to have “incremental increases.” City government has the responsibility to make sure that we have resources and to give a certain level of services to our community. It’s a difference in opinion, your opinion is that we give money away; my opinion is that we invest in the community. COMMISSIONER HITE said that she thought it was absolutely absurd to get up here and say this Board needs to make a decision because it is 71 days until an election. She said that she did not run the first time to get elected but to serve her community and plans to do the same this November and the community will decide on that. This property tax increase equates to roughly $8.00 per year for a house valued at $50,000 or $16.00 per year for a $100,000 house. Commissioner Hite said to Commissioner Pruitt, “by saying that you are not for this, you are saying that you are not willing to provide the  A Regular August 26, 2014 community the services, such as police, fire, water, gas and electricity.” She added that she thought that the compensating rate was more than fair. COMMISSIONER DAVIS interjected that to stand up here and make a proposal that cannot be practically or completely done by our accounting department. There is no way that Mr. Gunter and his staff can set a rate that will result in a $25 per property taxpayer refund or deduction. Directed to Commissioner Pruitt, for the number of property owners that we have, does he thinks that it is unfair for the renters who pay the property owners that will get all of the rebate as well as people who come to Henderson to work and pay taxes out of their payroll. They would get nothing back from property taxes but they contributed to the vitality and livelihood of our community. Commissioner Hite, Commissioner Mills and I have agreed and pledged that in trying to give back to the community, we will look at every possible way to supplement the services we are giving and to look at others ways to invest in our community. It is not feasible to give someone a flat dollar amount refund and set a tax rate to accomplish that. He told Commissioner Pruitt that to tell the community something that is not practical with our systems and he found it unfair on Commissioner Pruitt’s part to try to tell the community that they are going to be able to get this when there is no way to accomplish it. COMMISSIONER PRUITT said to Commissioner Davis, that to compare my record with your record, when it comes to fairness, he said that his record would outshine Commissioner Davis’ record. The 71 days are the opportunity for us to get our house in order. MAYOR AUSTIN said to Commissioner Pruitt, “I want to set the record straight on the pay increase situation because that resulted in a total net payroll savings of a significant amount and actually added money to our budget.” Commissioner Pruitt disagreed with the Mayor. DISCUSSION WAS HELD. VERBATIM DISCUSSION IS ON TAPE OF THIS MEETING. The vote was called. On roll call, the vote stood: Commissioner Davis ----------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Hite ----------------- Aye: Commissioner Pruitt ----------------- Nay: Mayor Austin ------------------------- Aye: 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. 77-14 RESOLUTION AUTHORIZING SALE OF SURPLUS PROPERTY LOCATED AT 1725 WASHINGTON STREET; AND AWARDING BID TO TOMMY TAPP FOR PURCHASE OF PROPERTY FOR THE SUM OF $700.00; AND AUTHORIZING MAYOR TO EXECUTE DOCUMENTS NECESSARY TO COMPLETE SALE MOTION by Commissioner Mills, seconded by Commissioner Hite, to adopt the resolution authorizing the sale of property located at 1725 Washington Street to Tommy Tapp, Henderson, Kentucky, in the amount of $700.00 COMMISSIONER PRUITT asked Mr. Tom Williams, HWU General Manager, why did we pay $66,000 for the property and let it go for $700.00? He thought the City should keep it. Mr. Williams explained that HWU purchased this lot to allow for the  A Regular August 26, 2014 construction of the Canoe Creek Interceptor Sewer project as a part of the Long-Term Control Plan for Reduction of Combined Sewer Overflows. Mr. Sights asked Mr. Williams, “if based on where the HWU’s lines are located and the structure being removed, can this property be built on?” Mr. Williams said that a structure could not be built on this lot. DISCUSSION WAS HELD. VERBATIM DISCUSSION IS ON TAPE OF THIS MEETING, The vote was called. On roll call, the vote stood: Commissioner Davis ----------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Hite ----------------- Aye: Commissioner Pruitt ----------------- Nay: 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: August 26, 2014 Carolyn Williams, City Clerk _________________________ RESOLUTION NO. 78-14 RESOLUTION APPROVING THE RETAINING OF A CONSULTANT FOR THE COMMUNITY VISIONARY PLAN AND COMPREHENSIVE PLAN UPDATE FOR THE HENDERSON/HENDERSON COUNTY PLANNING COMMISSION MOTION by Commissioner Mills, seconded by Commissioner Pruitt, to adopt the resolution to approve retaining Taylor Siefker Williams (TSW) Design Group of Louisville, Kentucky, to provide consulting services relating to the evaluation and development of a Community Visionary Plan and Updated Comprehensive Plan in the amount of $84,890.00. MAYOR AUSTIN explained that he and Commissioner Pruitt, along with three citizens sat on this committee. We started out with nine companies and interviewed four and ultimately chose TSW Design Group to be our consulting firm. Commissioner Pruitt added that they had a great board and some people said that he had fought to get on that board but he wished some other commissioners would have fought to get on that board. We learned how this plan would affect our area over the next 20 years. Commissioner Hite thanked Commissioner Pruitt for representing our Board of Commissioners on this commission. The vote was called. On roll call, the vote stood: Commissioner Davis ----------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Hite ----------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye:  A Regular August 26, 2014 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 August 26, 2014 ATTEST: Carolyn Williams, City Clerk _____________________________ CITY MANAGER’S REPORT: MR. SIGHTS stated that Commissioner Davis asked at our last meeting to present to the Board what had been spent by Community One? He passed out a report of what actions had been taken and how much it had cost. ________________________________ COMMISSIONER’S REPORTS: COMMISSIONER MILLS stated that he felt that the request by Mrs. Spencer for video equipment for the Depot Community Room was a good idea and would we ask Henderson County if they would share the cost? Mr. Sights agreed to contact Henderson County Fiscal Court tomorrow. COMMISSIONER PRUITT said that sometimes he may have made a mistake by the vote that he made but he said, that after considering the situation, there would not be anything wrong with changing the vote given. Pointing to situations going on in our community, such as Redbanks, and our Mayor stated that what was going on there raised a red flag. Why does it not bother the Mayor not to raise a red, blue, or orange flag when it comes to giving three supervisors $7,000 each for doing the same job that they did yesterday and say that we just replaced a salary and that was justification to give these guys the money. MAYOR AUSTIN responded that he felt that it was a good decision and made in good faith and the information given to us by our auditors supported that type of action. __________________________ MEETING ADJOURN: MOTION by Commissioner Hite, seconded by Commissioner Mills, to adjourn the meeting. The vote was called. On roll call, the vote stood: Commissioner Davis ----------------- Aye: Commissioner Mills ----------------- Aye: Commissioner Hite ----------------- Aye: Commissioner Pruitt ----------------- Aye: Mayor Austin ------------------------- Aye WHEREUPON Mayor Austin declared the meeting adjourned at approximately 6:45 p.m. ___________________________ Steve Austin, Mayor _____________________________ September 9, 2014 Carolyn Williams, City Clerk