Board of Commissioners Meetings

79 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Special Called Meeting on May 16, 2017 A special called meeting of the Board of Commissioners of the City of Henderson, Kentucky, was held on Tuesday, May 16, 2017, at 3:00 p.m., prevailing time, in the third floor Assembly Room located in the Municipal Center Building at 222 First Street, Henderson, Kentucky. There were present Mayor Steve Austin presiding: PRESENT: Commissioner Patti Bugg Commissioner Robert N. Pruitt, Sr. Commissioner Bradley S. Staton Commissioner Austin P. Vowels ALSO PRESENT: Mr. Russell R. Sights, City Manager Ms. Dawn Kelsey City Attorney Ms. Lynn Drew, Acting City Clerk Mrs. Donna Stinnett, Public Information Officer Mr. Robert Gunter, Finance Director Mr. Trace Stevens, Parks & Recreation Director Mr. Charles Stauffer, Police Chief Mr. Scott Foreman, Fire Chief Mrs. Connie Galloway, Human Resources Director Mr. Greg Nunn, IT Director Mr. Brian Williams, Public Works Director Mr. Dylan Ward, Public Works Engineer Mr. Brian Bishop, Planning Commission Executive Director Mr. Don Pinkstaff Mr. Herb Pritchett Mr. Chuck Stinnett Ms. Laura Acchiardo, the Gleaner Channel 7 camera person Channel 14 camera person Mr. Mike Richardson, Police Reserve Officer ________________________ ORDINANCE NO. 19-17: FIRST READ ORDINANCE RELATING TO BUSINESS AND OCCUPATION LICENSE FEES AN ORDINANCE AMENDING SECTION 21-33 OCCUPATIONAL LICENSE TAX PAYMENT REQUIRED OF ARTICLE III, BUSINESS AND OCCUPATIONAL LICENSE FEES, BY CHANGING THE RATE OF OCCUPATIONAL LICENSE TAX FOR COMPENSATION PAID OR PAYABLE FOR WORK DONE OR SERVICES PERFORMED OR RENDERED IN THE CITY BY AN EMPLOYEE FROM ONE TO ONE AND TWENTY NINE HUNDREDTHS PERCENT (1.29%) AND AMENDING SECTION 21-48 BEGINNING DATE OF THIS ORDINANCE TO JULY 1, 2017 MOTION by Commissioner Vowels, seconded by Commissioner Bugg, that the ordinance be adopted. COMMISSIONER PRUITT stated that he wanted to put on the record that he believes the way this is being done is wrong and it could have been done another way without causing hardship on a majority population of our working people. He also stated that he believes it is wrong to give city workers a raise with one hand and take some of it back with the other hand. COMMISSIONER VOWELS indicated that increasing the occupational payroll tax in order to decrease the real property tax rate was not something that was done lightly. This has been considered very carefully to be done with a very slight increase which will cause an even greater decrease in the property tax rate. He said that he believes this is a good move for the city 80 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Special Called Meeting on May 16, 2017 and for that reason he will support it. COMMISSIONER BUGG indicated that somebody making $10.00 an hour will pay an additional $1.16 per week, and she felt that wouldn’t be too much of an undue hardship on anyone. MAYOR AUSTIN indicated that the main reason that he is supporting this increase is to try to assist folks that are on a fixed income because they are having difficulty paying their property tax and risk losing their home. COMMISSIONER STATON indicated that this is a really tough decision because there are a lot of people that this will help and there are even more people that it will not help. He further indicated that the biggest sticking point for him has to do with the future revenue stream for the city and how stable it is. He stated that there had not been a decrease in assessed property value in Henderson over the last 10 years. In that same time period there had been actually year over year decreases in total revenues derived from the occupational tax and with the recent unfortunate layoff at the hospital he feels that there is going to be a loss right out of the gate that will need to be planned for and then it is going to continue year after year. Commissioner Staton pointed out that if this change had occurred ten years ago it would have caused a $2,400,000.00 short fall over that period of time in the amount of revenues that the city brought in. He indicated that for him the overwhelming thing that causes him to want to vote no to this is that he doesn’t see the need to hurt so many low income people that are renting homes who are only going to feel one side of this, and in addition to that possibly jeopardizing future revenue consistency for the city. COMMISSIONER PRUITT reiterated that he was all for lowering the property tax rate to help people that are struggling to pay them, but indicated that small incremental steps each year should be taken because the rate in place now didn’t happen in one day. HERB PRITCHETT, Chair of the Henderson Democratic Executive Committee, indicated that they are the party of the working man and woman and their families and that they are asking the Commission to keep the tax rates the way they are because they feel that is best for the working man and woman. He indicated that they should keep in mind all of the single working mothers who work two jobs to try to support their children; that most landlords are not going to reduce rental rates so these low income people will not see a reduction from the lowering of the property tax rate; that he understands people on fixed income are having problems but pointed out that they are already getting a 36% tax break if they are over 65; that the average wage in Henderson is $40,000.00 and if they own property they will see a break in their property taxes, but many of these people will be less well off under this proposal than more well off. He further indicated that the Democratic Party is committed to doing everything it can to combat income inequality in this country and that this brings incomes further apart. He respectfully asked that those who are voting for the proposal reconsider their vote. COMMISSIONER BUGG reiterated that she felt that $3.34 per week on a $60,000.00 income would not place a really harsh hardship on anyone. COMMISSIONER PRUITT reiterated that the low income people that rent won’t get a break on the tax rate and will be paying more on the payroll tax and this will hurt a lot of people. COMMISSIONER VOWELS indicated that he generally tends to agree with Mr. Pritchett on a wide variety of issues but that it has come to a point in Henderson where the property tax rate is the fourth highest in the state, almost three times that of similar size cities, and for that reason it is time to make an adjustment. The vote was called. On roll call, the vote stood: Commissioner Pruitt ------ Nay: Commissioner Bugg ------ Aye:  81 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Special Called Meeting on May 16, 2017 Commissioner Vowels --- Aye: Commissioner Staton ----- 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. ________________________ ORDINANCE NO. 20-17: FIRST READ ORDINANCE PROVIDING FOR THE LEVY AND COLLECTION OF AD VALOREM TAXES AN ORDINANCE OF THE CITY OF HENDERSON, KENTUCKY PROVIDING FOR THE LEVY AND COLLECTION OF AD VALOREM TAXES FOR THE FISCAL YEAR BEGINNING JULY 1, 2017, AND PROVIDING FOR THE TIME OF PAYMENT FOR SUCH TAXES, PENALTY, INTEREST AND DISCOUNT MOTION by Commissioner Bugg, seconded by Commissioner Vowels, that the ordinance be adopted. COMMISSIONER STATON thanked Commissioner Bugg and the Audubon Board of Realtors for stepping up and coming up with a proposal. He indicated that getting something in place fair to everybody would be very, very difficult and agreed with Commissioner Vowels that Henderson’s property tax rate is ridiculous when compared to other comparable cities. He stated that he would have favored cutting expenses over the next year and then review applying property tax cuts. MAYOR AUSTIN elaborated on Commissioner Vowels comment that there were three cities that have a higher tax rate in Kentucky and that those three cities all have a population of less than 2,500 and have no payroll tax whatsoever. COMMISSIONER PRUITT reiterated that he is in favor of a property tax rate cut, but without raising the payroll tax. The vote was called. On roll call, the vote stood: Commissioner Pruitt ------ Aye: Commissioner Bugg ------ Aye: Commissioner Vowels --- Aye: Commissioner Staton ----- Aye: 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. ________________________ ORDINANCE NO. 21-17: FIRST READ ORDINANCE AMENDING EMPLOYEE MANUAL ORDINANCE AMENDING ARTICLE 10. PERSONNEL, OF THE EMPLOYEE MANUAL OF THE CITY OF HENDERSON, BY ELIMINATING THE ASSISTANT CITY MANAGER POSITION, THE CIVIL SERVICE PUBLIC WORKS ENGINEER POSITION; AND BY ADDING A PROJECT MANAGER POSITION; AND BY ELIMINATING THE HENDERSON WATER UTILITY DIRECTOR OF ENGINEER POSITION, AND ADDING THE NON-CIVIL SERVICE POSITION OF DIRECTOR OF FIELD OPERATIONS MOTION by Commissioner Staton, seconded by Commissioner Bugg, that the ordinance be adopted. 82 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Special Called Meeting on May 16, 2017 RUSSELL R. SIGHTS, City Manager, indicated that the Director of Field Operations at Henderson Water Utility will be retiring July 31st and the Water and Sewer Board chose to employ that position under contract and not under Civil Service. This amendment to the Employee Manual is necessary due to that change. DISCUSSION WAS HELD on the merits of leaving the HWU Director of Field Operations position under Civil Service; and that other parts of this amendment deal with the elimination of the Assistant City Manager position and the changes to the Public Works Engineer and the Public Information Officer positions. The vote was called. On roll call, the vote stood: Commissioner Pruitt ------ Aye: Commissioner Bugg ------ Aye: Commissioner Vowels --- Aye: Commissioner Staton ----- Aye: 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. ________________________ ORDINANCE NO. 22-17: FIRST READ ORDINANCE AMENDING CODE OF ORDINANCES REGARDING ASSISTANT CITY MANAGER POSITION AN ORDINANCE REPEALING SECTION 2-49 OF ARTICLE III, CITY MANAGER, OF CHAPTER 2, ADMINISTRATION OF THE CODE OF ORDINANCES OF THE CITY OF HENDERSON MOTION by Commissioner Pruitt, seconded by Commissioner Vowels, that the ordinance be adopted. RUSSELL R. SIGHTS, City Manager, indicated that this is the official action abolishing the position of Assistant City Manager. The first ordinance just took it out of the Employee Manual. This ordinance removes the position from the Code of Ordinances. The vote was called. On roll call, the vote stood: Commissioner Pruitt ------ Aye: Commissioner Bugg ------ Aye: Commissioner Vowels --- Aye: Commissioner Staton ----- Aye: 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. ________________________ MAYOR AUSTIN announced that the next item listed on the agenda, an ordinance relating to annexation of property located on Green River Road had been pulled from the agenda and would be brought back at a future time when the final details have been completed. ________________________ CITY MANAGER’S REPORT: Discussion and Possible Action Relating to Planning Commission Rezoning Recommendations: #1070, Henderson County Public Library District Board, 101 S. Main and 122 & 124 Washington Streets  83 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Special Called Meeting on May 16, 2017 DAWN KELSEY, City Attorney, indicated that the Planning Commission at their May 2nd meeting heard the request from the Henderson County Public Library District Board to rezone the property located at the corner of Washington and Main Streets. She explained that the Planning Commission recommended the assignment of Riverfront-2 zone classification to the property and that this rezoning would move forward unless an aggrieved party or the Board of Commissioners filed a written notice of disagreement on or before the deadline of Wednesday, May 24, 2017. MAYOR AUSTIN asked if there was any opposition to the zoning recommendation. No objection was heard. _____________________________ RUSSELL R. SIGHTS, City Manager, reported on the request to begin the annexation process of this parcel of land containing approximately 235.280 acres located in the Borax Drive area. County officials are in agreement to rezone the area that is jointly owned by the City and County. He then requested that the Board authorize submission to the Planning Commission for review and zoning designation. MOTION by Commissioner Pruitt, seconded by Commissioner Staton, authorizing the City Manager to send the request to the Planning Commission to assign a zoning designation for the property. The vote was called. On roll call, the vote stood: Commissioner Pruitt ------ Aye: Commissioner Bugg ------ Aye: Commissioner Vowels --- Aye: Commissioner Staton ----- Aye: Mayor Austin -------------- Aye: ________________________ COMMISSIONERS REPORT: DISCUSSION OF MOBILE FOOD UNIT ORDINANCE COMMISSIONER PRUITT requested that the Board consider adding the area of Martin Luther King, Jr. Avenue between Alvasia and Alves Streets to the locations allowing food trucks. This area would include property that he owns. He indicated that the area has really built up with houses and apartments and is in need of available food options for the residents so that they do not have to cross busy Green Street. COMMISSIONER VOWELS requested to gauge the support of the Board in amending the Mobile Food Unit ordinance to include non-self propelled units or trailers that are also easily movable that would not take up any more space than a food truck. DISCUSSION WAS HELD on the esthetics of food vendor trailers compared to food trucks; request to solicit the opinion of the restaurant owner in that area; discussion of that business; food truck locations at the JFK Center and the East End Park; current location restrictions and the number of feet from existing brick and mortar restaurants; the difference in regulating food vendors under this ordinance and the regulations under the Special Events Permitting process – self-propelled food units are required under this ordinance but not under the Special Events permitting process; that this location is zoned residential; that all of the other Kentucky mobile food unit ordinances reviewed during research on the ordinance are for self propelled vehicles; that no other Kentucky city reviewed allows mobile food units in zones designated as residential; recommendation that the tenants of the Depot be contacted regarding the proposed changes; and if expanding the farmer’s market to include a mobile vehicle with food items for sale should be included in the ordinance discussion and amendment. Mayor Austin requested staff to meet with appropriate concerned parties to discuss the proposed amendment. ________________________ 84 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Special Called Meeting on May 16, 2017 MEETING ADJOURN: MOTION by Commissioner Pruitt, seconded by Commissioner Vowels, to adjourn the meeting. The vote was called. On roll call, the vote stood: Commissioner Pruitt ------ Aye: Commissioner Bugg ------ Aye: Commissioner Vowels --- Aye: Commissioner Staton ----- Aye: Mayor Austin -------------- Aye: WITHOUT OBJECTION, Mayor Austin declared the Meeting adjourned at approximately 3:50 p.m. ___________________________ Steve Austin, Mayor June 13, 2017 ATTEST: ______________________ Maree Collins, City Clerk