Board of Commissioners Meetings

19 CITY OF HENDERSON – RECORD BOOK Record of Minutes of Special Called Joint City/Utility Commission Meeting on February 23, 2021 A meeting of the Board of Commissioners of the City of Henderson, Kentucky, was held jointly with the City Utility Commission on Tuesday, February 23, 2021, at 3:00 p.m., prevailing time, with no primary location designated for this video teleconference meeting as the result of the state of emergency declared by the President of the United States and the Governor of Kentucky due to the global COVID-19 pandemic, and in accordance with recommended and mandated precautions related to COVID-19 per the Kentucky Attorney General Opinion 20-05, limited public attendance was permitted at this meeting due to the highly contagious nature of COVID-19. It is not feasible for the City to maintain order and abide by recommended and mandated precautions while providing a central physical location for public viewing. The meeting was conducted in accordance with KRS 61.826 and SB 150. There were present Mayor Steve Austin presiding: PRESENT: Commissioner Robert N. Pruitt, Sr. Commissioner Bradley S. Staton Commissioner Austin P. Vowels ABSENT: Commissioner Rodney Thomas ALSO PRESENT: Mr. William L. “Buzzy” Newman, Jr., City Manager Mrs. Dawn Kelsey, City Attorney Mrs. Karla Beckgerd, Acting City Clerk Mrs. Donna Stinnett, Community Relations Manager/Public Information Officer Mr. Robert Gunter, Finance Director Mr. Brian Williams, Public Works Director Mr. Dylan Ward, Project Manager Mr. Sam Lingerfelt, Safety & Training Coordinator Mr. Greg Nunn, Information Technology Director (via Zoom) Mr. Cory Fischbeck, IT Applications Programming Manager Mr. Lin Shannon, City Utility Commission Chair (via Zoom Panelist) Mr. Mark Weaver, City Utility Commission Member Mr. Russell Sights, City Utility Commission Member (via Zoom Panelist) Mr. David Curlin, City Utility Commission Member Ms. Jennifer Howell, City Utility Commission Member (via Zoom Panelist) Ms. Tammy Konsler, City Utility Commission Clerk (via Zoom Panelist) Mr. Chris Heimgartner, HMP&L General Manager (via Zoom Panelist) Mr. Randall Redding, HMP&L Attorney (via Zoom Panelist) Mr. Bob Berry, Big Rivers President & CEO Mr. Paul Smith, Big Rivers Chief Financial Officer Mr. Mike Pullen, Big Rivers Chief Operating Officer Mr. Tyson Kamuf, Big Rivers General Counsel Mr. Kevin Patton, the Gleaner (via Zoom) ________________________ PRESENTATION: “Big Rivers Formal Offer to Purchase HMP&L” BOB BERRY, Big Rivers Electric Corporation President and Chief Executive Officer, presented details of the offer from Big Rivers for the purchase of Henderson Municipal Power and Light. The proposal includes: $90M for the purchase and sale of the transmission and distribution assets (including all Station Two liabilities) and all of its electric customers; Henderson would have no obligation for any environmental or decommissioning costs of Station Two; Big Rivers would pay an annual franchise fee of $2.5M; would gift the city any and all of the properties located along Water Street currently used for the HMPL offices and distribution center and the former site of  20 CITY OF HENDERSON – RECORD BOOK Record of Minutes of Special Called Joint City/Utility Commission Meeting on February 23, 2021 Henderson Station One; all existing litigation and regulatory proceedings between Big Rivers and HMPL would be terminated (currently seven lawsuits); rate freeze for at least the next five years; elected city officials sit on both the subsidiary board and Big Rivers board; guaranteed employment opportunities of all existing HMPL employees; Big Rivers would convey to HWU an easement (or alternative pump solution) at Sebree Station; Big Rivers would maintain its Energy Transmission Substation at the current location and continue to pay Occupational Tax on the $3.2M annual payroll at the facility; and Big Rivers will reimburse the city $50,000.00 for the cost of an independent third party evaluation of this offer. ________________________ PRESENTATION: “HMP&L Presentation and Comment on the Big Rivers Purchase Offer” CHRIS HEIMGARTNER, Henderson Municipal Power & Light General Manager, presented brief response to the offer from Big Rivers Electric Corporation. He reported that the proposal had been reviewed to determine if this is a good deal for the city and its customers; determine how much this proposal will generate (or cost) in future years; determine how much the Utility brings to the community; and look at other than financial factors. Mr. Heimgartner reported that Big Rivers has no experience in managing a retail utility and in his opinion, the City realizes significant short- and long- term financial and nonfinancial benefits from owning HMPL and that this is a very poor proposal for the City and our Customers and should be declined. ________________________ APPROVAL OF CONSENT AGENDA: MAYOR AUSTIN asked the Acting City Clerk to read the Consent Agenda. Resolutions: 16-21: Resolution Supporting Addressing Kentucky’s Transportation Funding Needs Throughout the Commonwealth Municipal Order: 06-21: Municipal Order Authorizing Consent to Use Easement Between Henderson Municipal Gas and Henderson Water Utility, and Authorizing Mayor to Execute Consent on Behalf of Henderson Municipal Gas 07-21: Municipal Order Awarding Bid for Purchase of a Cutaway Bus to Central States Bus Sales, Inc., of Lexington, Kentucky in the Amount of $71,019.00 08-21: Municipal Order Awarding Bids for Compact Diesel Generator and Automatic Transfer Switch (ATS) for Use at The Gathering Place to Cummins Sales and Service, Evansville, Indiana, in the Amount of $30,299.00 09-21: Municipal Order Awarding Bids for Compact Diesel Generator and Automatic Transfer Switch (ATS) for Use at the JFK Community Center to Cummins Sales and Service, Evansville, Indiana, in the Amount of $44,990.00 Motion by Commissioner Staton, seconded by Commissioner Pruitt, to approve the items on the Consent Agenda as presented. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye:  21 CITY OF HENDERSON – RECORD BOOK Record of Minutes of Special Called Joint City/Utility Commission Meeting on February 23, 2021 Commissioner Thomas -- Absent: Commissioner Vowels --- Aye: Commissioner Pruitt ----- Aye: Mayor Austin ------------- Aye: WHEREUPON, Mayor Austin declared the consent agenda items approved. /s/ Steve Austin Steve Austin, Mayor ATTEST: February 23, 2021 Karla Beckgerd, Acting City Clerk ________________________ ORDINANCE NO. 03-21: SECOND READ AN ORDINANCE AWARDING A NON-EXCLUSIVE FRANCHISE TO KENERGY CORP. FOR A TERM OF TWENTY (20) YEARS FOR AN ELECTRIC SYSTEM WITHIN THE CONFINES OF THE CITY OF HENDERSON, KENTUCKY AND AUTHORIZING THE MAYOR TO SIGN A FRANCHISE AGREEMENT WITH KENERGY CORP. MOTION by Commissioner Staton, seconded by Commissioner Vowels, that the ordinance be adopted. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas -- Absent: Commissioner Vowels --- 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: February 23, 2021 Karla Beckgerd, Acting City Clerk ________________________ ORDINANCE NO. 05-21: SECOND READ ORDINANCE RELATING TO BUDGET AND APPROPRIATION ORDINANCE AN ORDINANCE AMENDING SECTION #4 OF THE BUDGET AND APPROPRIATION ORDINANCE FOR THE FISCAL YEAR ENDING JUNE 30, 2021, FOR THE CITY OF HENDERSON, KENTUCKY BY ADDING AUTHORIZATION FOR THE CITY MANAGER TO HIRE ADDITIONAL TEMPORARY NON-HAZARDOUS DUTY PERSONNEL FOR KEY POSITIONS WHEN DEEMED NECESSARY FOR SUCCESSION TRAINING PURPOSES MOTION by Commissioner Vowels, seconded by Commissioner Pruitt, that the ordinance be adopted. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas -- Absent: Commissioner Vowels --- 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  22 CITY OF HENDERSON – RECORD BOOK Record of Minutes of Special Called Joint City/Utility Commission Meeting on February 23, 2021 Steve Austin, Mayor ATTEST: February 23, 2021 Karla Beckgerd, Acting City Clerk ________________________ ORDINANCE NO. 06-21: SECOND READ ORDINANCE REGARDING ANNEXATION PHASE 2 AN ORDINANCE ANNEXING CERTAIN UNINCORPORATED TERRITORY TO THE CITY OF HENDERSON, KENTUCKY, BEING LOCATED OFF OF KENTUCKY HIGHWAY 812 (A.K.A. AIRLINE ROAD), IN HENDERSON COUNTY, CONTAINING THE FOLLOWING PVA PARCELS: 67C-44, 67C-45, 67C-46, 67C-47, 67C-48, 67C-49, 67C- 50, 67C-51, 67C-52, 67C-53, 67C-55, 67C-56, 67C-58, 67C-61, 67C-62, 67C-63, 67C-64, 67C- 65, 67C-66, 67C-67, 67C-68, 67C-69, 67C-70, 67C-71, 67C-72, 67C-73, 67C-74- 67C-75, 67C- 76, 67C-77, 67C-78, 67C-79- 67C-80, 67C-81, 67C-82, 67C-83, 67C-84, 67C-85, 67C-86 AND 67C-224 MOTION by Commissioner Pruitt, seconded by Commissioner Staton, that the ordinance be adopted. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas -- Absent: Commissioner Vowels --- 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: February 23, 2021 Karla Beckgerd, Acting City Clerk ________________________ MUNICIPAL ORDER NO. 10-21: MUNICIPAL ORDER APPROVING INCENTIVE PROGRAM FOR UTILITY CUSTOMERS TO SIGN UP FOR AUTOMATIC PAYMENT THROUGH JUNE 30, 2021 MOTION by Commissioner Staton, seconded by Commissioner Pruitt, to adopt the municipal order approving an incentive program for utility customers through June 30, 2021. The Program will allow a one-time $35.00 rebate for any city utility customer that signs up for automatic payment for a 12-month period and a one-time $15.00 rebate for utility customers that sign up for the electronic mailing of their utility bills. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas -- Absent: Commissioner Vowels --- Aye: Commissioner Pruitt ----- Aye: Mayor Austin ------------- Aye: WHEREUPON, Mayor Austin declared the municipal order adopted, affixed his signature and the date thereto, and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor ATTEST: February 23, 2021 Karla Beckgerd, Acting City Clerk ________________________  23 CITY OF HENDERSON – RECORD BOOK Record of Minutes of Special Called Joint City/Utility Commission Meeting on February 23, 2021 MUNICIPAL ORDER NO. 11-21: MUNICIPAL ORDER AUTHORIZING AWARD OF BID FOR PURCHASE OF ONE (1) COMPACT EXCAVATOR WITH MULCHING HEAD FOR THE PUBLIC WORKS DEPARTMENT TO DIAMOND EQUIPMENT, OF EVANSVILLE, INDIANA, IN THE AMOUNT OF $84,900.00 MOTION by Commissioner Staton, seconded by Commissioner Vowels, to award the bid for the purchase of a compact excavator with mulching head to Diamond Equipment, Evansville, Indiana, in the amount of $84,900.00, in strict accordance with the bid as submitted pursuant to Bid Reference 21-04. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas -- Absent: Commissioner Vowels --- Aye: Commissioner Pruitt ----- Aye: Mayor Austin ------------- Aye: WHEREUPON, Mayor Austin declared the municipal order adopted, affixed his signature and the date thereto, and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor ATTEST: February 23, 2021 Karla Beckgerd, Acting City Clerk ________________________ CITY MANAGER’S REPORT: WILLIAM L. “BUZZY” NEWMAN, JR., City Manager, reported that due to a lack of business there is no need for a March 9, 2021, meeting. He further reported that he would like to thank all city employees for working through this weather event, especially Sanitation, Police and Fire. ________________________ SAMUEL LINGERFELT, Safety & Training Coordinator, reported that he had been working on updating and clearing items from the Safety Audit Report that was performed in the Spring of 2020. Since he began in September 2020 over 200 minor safety issues have been addressed and corrected and created and/or updated a variety of safety policies. Sam also reported that the sanitation crews had no accidents and no injuries during this weather event. Mayor Austin indicated that all the city employees did an outstanding job, and our citizens appreciate it. ________________________ RE-APPOINTMENT: Board of Zoning Adjustment Mr. Marcos Nicolas – Term to Expire February 24, 2025 Motion by Commissioner Staton, seconded by Commissioner Vowels, upon recommendation of Mayor Steve Austin, to re-appoint Marcos Nicholas to a four-year term on the Board of Zoning Adjustment. Said term to expire February 24, 2025. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas -- Absent: Commissioner Vowels --- Aye: Commissioner Pruitt ----- Aye: Mayor Austin ------------- Aye:  24 CITY OF HENDERSON – RECORD BOOK Record of Minutes of Special Called Joint City/Utility Commission Meeting on February 23, 2021 ________________________ EXECUTIVE SESSION: “Litigation” MOTION by Commissioner Pruitt, seconded by Commissioner Staton, that the Board of Commissioners go into Executive Session pursuant to the provisions of KRS 61.810(1)(C) for the purpose of deliberation relating to pending litigation involving HMPL (Henderson Municipal Power & Light) and Big Rivers. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas -- Absent: Commissioner Vowels --- Aye: Commissioner Pruitt ----- Aye: Mayor Austin ------------- Aye: WHEREUPON, Mayor Austin declared the Board adjourned into Executive Session. ________________________ MEETING RECONVENED: MOTION by Commissioner Pruitt, seconded by Commissioner Staton, the Board of Commissioners reconvened into regular session. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas -- Absent: Commissioner Vowels --- Aye: Commissioner Pruitt ----- Aye: Mayor Austin ------------- Aye: WHEREUPON, Mayor Austin reconvened the Board into regular session. ________________________ MEETING ADJOURN: MOTION by Commissioner Staton, seconded by Commissioner Vowels, to adjourn the meeting. The vote was called. On roll call, the vote stood: Commissioner Staton ---- Aye: Commissioner Thomas -- Absent: Commissioner Vowels --- Aye: Commissioner Pruitt ----- Aye: Mayor Austin ------------- Aye: WITHOUT OBJECTION, Mayor Austin declared the Meeting adjourned at approximately 4:55 p.m. ___________________________ ATTEST: Steve Austin, Mayor March 22, 2022 ______________________ Maree Collins, CKMC City Clerk