Board of Commissioners Meetings

41 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Regular Meeting on April 27 , 2021 A meeting of the Board of Commissioners of the City of Henderson, Kentucky, was held on Tuesday, April 27, 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 Rodney Thomas Commissioner Austin P. Vowels Commissioner Robert N. Pruitt, Sr. Commissioner Bradley S. Staton ALSO PRESENT: Mr. William L. “Buzzy” Newman, Jr., City Manager Ms. Dawn Kelsey, City Attorney Ms. Karla Beckgerd, Acting City Clerk Mrs. Donna Stinnett, Community Relations Manager/Public Information Officer Mr. Heath Cox, Police Chief Mr. Ray Nix, Code Administrator Mr. Trace Stevens, Parks, Recreation & Cemetery Director Mr. Dylan Ward, Project Manager Mr. Robert Gunter, Finance Director Mrs. Donna Coomes, Engineering Department Administrative Secretary Ms. Amanda Brannan, Administrative Secretary Mr. David Wright, IT Network Administrator II Mr. Chris Heimgartner, HMPL General Manager (via Zoom Video Panelist) Mr. Chris Hopgood, City-County Airport Board Counsel (via Zoom Video Panelist) Ms. Meredith Schmitt, Hendersonians for an Aquatic Center Committee Mr. Lennie Underwood, Hendersonians for an Aquatic Center Committee Ms. Ida Green, Hendersonians for an Aquatic Center Committee Mr. Kevin Patton, the Gleaner ________________________ PROCLAMATION: “Arbor Day” MAYOR AUSTIN proclaimed Friday, April 27, 2021, as “Arbor Day” in the City of Henderson and urged all citizens to support efforts to protect our trees and woodlands and to support our city’s urban forestry program. ________________________ PRESENTATION: “Hendersonians for an Aquatic Center” MEREDITH SCHMITT, LENNIE UNDERWOOD, and IDA GREEN, Hendersonians for an Aquatic Center Committee members, gave a brief presentation on the benefits of having a competition size pool with amenities that could be utilized for all Hendersonians from infant on up. They requested that the City approve sending a city representative to the USA Swimming Build a Pool Conference in August to learn more about the various facilities, programming and funding opportunities that are available to communities our size. ________________________ 42 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Regular Meeting on April 27 , 2021 PUBLIC HEARING: “Proposed Electric Rates Adjustments” MAYOR AUSTIN declared the Public Hearing on the proposed adjustment of electric rates to order at approximately 3:35 p.m. indicating that Henderson Municipal Power and Light General Manager Chris Heimgartner was in attendance. Hearing no questions or comments Mayor Austin declared the hearing closed. ________________________ PUBLIC HEARING: “Tax Increment Financing District – Downtown Development Area” MAYOR AUSTIN declared the Public Hearing on the proposed adjustment of electric rates to order at approximately 3:37 p.m. indicating that Dawn Kelsey, City Attorney and Donna Stinnett, Community Relations Manager/Public Information Officer were in attendance and would present a brief overview of the proposal. DAWN KELSEY, City Attorney, and DONNA STINNETT, Community Relations Manager/Public Information Officer presented a brief overview of the proposed Downtown Henderson Area Development Plan that would create a Tax Increment Financing (TIF) District Fund to support redevelopment in the defined area. The area would include approximately 187 acres, mostly in the Central Business and Gateway Districts-from the Gateway District on Second Street to the river, to Washington Street, to almost 12th Street. This TIF would capture the increased tax revenues of this area for 20 years for reinvestment of those funds into the area. The current taxes would still go into the general fund, only taxes above current dollars go into a separate fund to be invested in the TIF district. Potential Projects mirror the Vision Plan and Downtown Master Plan that was updated a few years ago. Public parking, farmers market, dog park, event/convention center, municipal dock, streetscape improvements, wayfinding, underground utilities, performance space and expanded wifi were potential projects mentioned. If approved, it is recommended that a board or panel be created to review new projects to ensure they are appropriate. An interesting detail of this TIF is that any other taxing entity can pledge revenues and they don’t have to pledge 100% - the exception is school systems cannot participate. Other entities could donate funds for seed monies if they don’t want to designate a percentage. If an entity participates, they will have representation on the board. A work session with Jim Parson of Keating, Muething and Klekamp will be scheduled for June to discuss this more in depth. MAYOR AUSTIN asked if there were any questions or comments. COMMISSIONER STATON indicated that this was one of the clearest explanations of a Tax Increment Financing District Fund that he had heard and commended Mrs. Kelsey and Mrs. Stinnett on a good report. Hearing no questions or further comments Mayor Austin declared the hearing closed at approximately 3:46 p.m. ________________________ ORDINANCE NO. 09-21: FIRST READ ORDINANCE ADOPTING SCHEDULE OF ELECTRIC RATES AND SERVICES AN ORDINANCE APPROVING AND ADOPTING A SCHEDULE OF ELECTRIC RATES AND SERVICES FOR ELECTRIC POWER AND ENERGY FURNISHED BY HENDERSON MUNICIPAL POWER & LIGHT TO ITS CUSTOMERS AND CONSUMERS ADJUSTING THE RATES IN RESIDENTIAL SCHEDULE (SCHEDULE R); GENERAL SERVICE RATE SCHEDULE (SCHEDULE GS); HOUSING AUTHORITY, CHURCH AND PUBLIC SCHOOL RATE SCHEDULE (SCHEDULE HCS); DEMAND RATE SCHEDULE (SCHEDULE D); POWER COST ADJUSTMENT RATE SCHEDULE (SCHEDULE PCA); RESIDENTIAL DISTRIBUTED GENERATION RATE SCHEDULE (SCHEDULE RDG); GENERAL SERVICE DISTRIBUTED GENERATION RATE SCHEDULE (SCHEDULE GSDG); HOUSING AUTHORITY, CHURCH, AND PUBLIC DISTRIBUTED GENERATION RATE SCHEDULE  43 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Regular Meeting on April 27 , 2021 (SCHEDULE HCSDG); AND DEMAND DISTRIBUTED GENERATION RATE SCHEDULE (SCHEDULE DDG); AND TO BECOME EFFECTIVE FOR ALL SERVICES BILLED ON AND AFTER JUNE 1, 2021 MOTION by Commissioner Vowels, seconded by Mayor Austin, that the ordinance be adopted. CHRIS HEIMGARTNER, Henderson Municipal Power and Light General Manager, reported that the utility incurs fixed costs and volumetric costs, or costs associated with the purchase of power. Fixed costs include items not related to the purchase of power such as tree trimming, pole and line replacement, underground lines, and reading meters. These are costs the utility must incur in order to provide service, but they are not attributable to the cost of power purchased or used. Mr. Heimgartner explained that the proposed rates reduce the overall revenue collected through zeroing the Power Cost Adjustment. Restructuring the rate to allocate the true costs of the fixed charges is revenue neutral. This is the second of three adjustments in the rate structure to fully allocate non-volumetric costs to a fixed rate. The Power Cost Adjustments will continue to be submitted annually in order to remain revenue neutral. He further detailed the methodology of fixed charges and variable charges for the various rate categories and how it would affect the average customer of each rate classification. COMMISSIONER STATON indicated that he had also conducted his own test of how this proposed rate would affect residential customers of various usage. He indicated that the bill of a small home with a single resident low usage customer would actually increase 26.1% while other families of various size and usage would actually decrease. He further indicated that this proposed fixed charge going from $12.50 to $25.00 would be substantially higher than other surrounding communities/providers. He reported the meter charges of: Bowling Green, $18.81; Madisonville, $6.00; Owensboro, $15.00; Paducah $14.75; Kenergy, $18.00; and Vectren, $11.00. Commissioner Staton indicated that he felt that this increase would be out of line at this time, and he would not be in favor of it. DISCUSSION WAS HELD relating to kilowatt hour rates of the various cities and entities mentioned above and how those factor in as well; how when the kilowatt usage rate is factored in the average user’s bill will decrease slightly; how usage consumption has decreased while fixed costs have increased; how currently some high usage customers are subsidizing the lower usage customers in each rate classification; discussion on low income household usage; that the utility has allocated funds set aside to generate funds to assist low income customers; how much reserve funds the utility had, how much of those were incumbered for debt service or other projects including the new facility; and if it were possible for this to be worked out to convert over a longer period of time so that there is not such a drastic change all at once. Each Commissioner stated their views on the proposed rate with most indicating that they were in favor of the concept, but would like to see smaller increments to get there. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Nay: Commissioner Vowels --- Nay: Commissioner Pruitt ------ Nay: Commissioner Staton ----- Nay: Mayor Austin ------------- Nay: WHEREUPON, Mayor Austin declared the ordinance DENIED. ________________________ 44 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Regular Meeting on April 27 , 2021 RESOLUTION NO. 25-21: RESOLUTION APPROVING REAL ESTATE PURCHASE CONTRACT BY THE HENDERSON CITY-COUNTY AIRPORT BOARD AND AMY MATTINGLY IN THE AMOUNT OF $122,500.00; AND DIRECTING MAYOR TO EXECUTE ALL DOCUMENTS WHICH ARE DEEMED NECESSARY TO EFFECTUATE THE SALE AND CONVEYANCE OF THE PROPERTY CHRIS HOPGOOD, Henderson City/County Airport Board Attorney, reported that this parcel has been appraised and the purchase price can be used as 90% of local match for future FAA grants. The Airport Board is requesting to use the budgeted grant match this fiscal year to instead acquire this property. The property would provide direct connection to Highway 136 and enhance economic development at the airport. MOTION by Commissioner Pruitt, seconded by Commissioner Thomas, to approve the Real Estate Purchase Contract of an approximate twenty-eight acre tract of land that was formerly industrial development property by the Henderson City-County Airport Board to provide direct connection to Highway 136 and enhance economic development at the airport. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ------ Aye: Commissioner Staton ----- 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: April 27, 2021 Karla Beckgerd, Acting City Clerk ________________________ MUNICIPAL ORDER NO. 23-21: MUNICIPAL ORDER AUTHORIZING AWARD OF BID FOR THE BORAX DRIVE EXTENSION PROJECT TO HAZEX CONSTRUCTION CO., INC. OF HENDERSON, KY IN THE AMOUNT OF $124,250.42, FOR THE BASE BID, VALUE ADDITION #1-SENSATIVE AREA PROTECTION AND VALUE ADDITION #2-NO. 3 STONE STABILIZATION WILLIAM L. “BUZZY” NEWMAN, JR., City Manager, indicated that we had reached a milestone in the Riverfront Projects – this is the last project to be awarded. These projects have spanned well over ten years and there is an employee that deserves to be recognized for all the hard work she has put in on keeping up with all the various projects, bid awards, payments and reports – Donna Coomes. Donna is retiring next month, and she deserves to be recognized and thanked for this accomplishment. MOTION by Commissioner Staton, seconded by Commissioner Thomas, to authorize award of the bid for the Borax Drive extension project to Hazex Construction Co., Inc. of Henderson, Kentucky in the amount of $124,250.42, in strict accordance with their bid as submitted pursuant to Bid Reference 21-09. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ------ Aye: Commissioner Staton ----- Aye: Mayor Austin ------------- Aye:  45 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Regular Meeting on April 27 , 2021 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: April 27, 2021 Karla Beckgerd, Acting City Clerk ________________________ MUNICIPAL ORDER NO. 24-21: MUNICIPAL ORDER AWARDING BID FOR THE PURCHASE OF FIRE UNIFORMS FOR THE FIRE DEPARTMENT TO SIEGEL’S CORPORATION OF EVANSVILLE, INDIANA IN THE AMOUNT OF $41,141.75 MOTION by Commissioner Staton, seconded by Commissioner Vowels, to award the bid for the purchase of fire department uniforms to Siegel’s Corporation of Evansville, Indiana, in the amount of $41,141.75, in strict accordance with their bid as submitted pursuant to Bid Reference 21-13. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ------ Aye: Commissioner Staton ----- 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: April 27, 2021 Karla Beckgerd, Acting City Clerk ________________________ MAYOR AUSTIN reported that the next four items on the agenda are related to the City/County Ambulance Service and changing over to allow Deaconess EMS to operate the service. MUNICIPAL ORDER NO. 22-21: MUNICIPAL ORDER AUTHORIZING THE MUTUAL TERMINATION OF AGREEMENT BETWEEN THE CITY OF HENDERSON, THE COUNTY OF HENDERSON AND METHODIST HEALTH, INC. MOTION by Commissioner Thomas, seconded by Commissioner Vowels, to authorize the mutual termination of agreement between the City of Henderson, the County of Henderson and Methodist Health, Inc. on April 30, 2021, and as a condition precedent of this termination, the parties shall execute the Ambulance Provider Services Agreement with Deaconess EMS, LLC. Final execution of this Agreement is contingent upon (i) a lease for the Borax Drive property and (ii) execution of a lease for the City-County’s ambulances and associated equipment. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ------ Aye: Commissioner Staton ----- Aye: Mayor Austin ------------- Aye: 46 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Regular Meeting on April 27 , 2021 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: April 27, 2021 Karla Beckgerd, Acting City Clerk ________________________ MUNICIPAL ORDER NO. 19-21: MUNICIPAL ORDER APPROVING AMBULANCE PROVIDER SERVICES AGREEMENT BY THE CITY AND HENDERSON COUNTY FISCAL COURT WITH DEACONESS EMS, LLC OF HENDERSON, KENTUCKY WILLIAM L. “BUZZY” NEWMAN, JR., reported that many, many months of negotiations have gone into this services agreement with the main sticking point response times in both the City and the County. A committee has agreed to meet monthly to review any issues that may arise. The initial term fee of $160,000.00 will be split equally between the City and the County and if renewed has an increase to $168,000 in the fourth year. MOTION by Commissioner Staton, seconded by Commissioner Vowels, to approve the Ambulance Provider Services Agreement by the City and Henderson County Fiscal Court with Deaconess EMS, LLC of Henderson, Kentucky effective May 1, 2021, the cost of $160,000.00 per year for the first three years with an increase to $168,000 in the fourth year, to be shared by the City and County. Final execution of this Agreement is contingent upon (i) a lease for the Borax Drive property and (ii) execution of a lease for the City-County’s ambulances and associated equipment. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ------ Aye: Commissioner Staton ----- 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: April 27, 2021 Karla Beckgerd, Acting City Clerk ________________________ MUNICIPAL ORDER NO. 20-21: MUNICIPAL ORDER APPROVING 383 BORAX DRIVE LEASE BY THE CITY AND HENDERSON COUNTY FISCAL COURT TO DEACONESS EMS, LLC OF HENDERSON, KY WILLIAM L. “BUZZY” NEWMAN, JR., reported that this is a triple net lease for Deaconess EMS to lease the ambulance facility on Borax Drive in the initial amount of $30,025.00 per year to be divided between the City and County. In addition, Deaconess EMS shall be responsible for all its utilities, regular maintenance of the building and other services as well as payment of the property taxes. DAWN KELSEY, City Attorney, explained that subsequent renewal periods shall be adjusted according to the Consumer Price Index, but shall be limited to a three percent annual increase.  47 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Regular Meeting on April 27 , 2021 MOTION by Commissioner Thomas, seconded by Commissioner Pruitt, to approve the lease of 383 Borax Drive by the City and Henderson County Fiscal Court to Deaconess EMS, LLC of Henderson, Kentucky for the operation of an ambulance service and other similar functions effective May 1, 2021, at the established rate of $4.15 per square foot for the initial lease term of one year with automatic renewal option periods adjusted to the Consumer Price Index-not to exceed three percent annually. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ------ Aye: Commissioner Staton ----- 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: April 27, 2021 Karla Beckgerd, Acting City Clerk ________________________ MUNICIPAL ORDER NO. 21-21: MUNICIPAL ORDER APPROVING THE CAPITAL EQUIPMENT LEASE AGREEMENT BETWEEN THE CITY OF HENDERSON AND HENDERSON COUNTY FISCAL COURT AND DEACONESS EMS, LLC OF HENDERSON, KY WILLIAM L. “BUZZY” NEWMAN, JR., reported that the capital equipment lease agreement includes two items that have subsequently been removed, a four door three quarter ton truck and an ATV. Each of these vehicles will be made available for Deaconess EMS use if requested during an emergency. MOTION by Commissioner Staton, seconded by Commissioner Vowels, to approve the Capital Equipment Lease Agreement between the City of Henderson and Henderson County Fiscal Court and Deaconess EMS, LLC of Henderson, Kentucky effective May 1, 2021, and ending April 30, 2022, unless terminated sooner. Final execution of this Agreement is contingent upon (i) a lease for the Borax Drive property and (ii) execution of a lease for the Ambulance Provider Services Agreement. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ------ Aye: Commissioner Staton ----- 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: April 27, 2021 Karla Beckgerd, Acting City Clerk ________________________ 48 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Regular Meeting on April 27 , 2021 MISCELLANEOUS: “Zoning Ordinance Review - Signage” DAWN KELSEY, City Attorney, and RAY NIX, Code Administrator, reported that all proposed Zoning Ordinance changes must be forwarded to the Planning Commission for review and a public hearing. It is proposed to amend Zoning Ordinance Article X, Signs and Outdoor Advertising Displays, Section 10.03, Definitions and interpretations, Consolidated Shopping Center to Consolidated Commercial Center to better reflect the businesses within these centers. These are not just retail shopping anymore, there is a lot more commercial use, and we want to make it clear that only one sign will be allowed in these centers. DISCUSSION WAS HELD on the types of businesses in the various centers; that this suggested change was brought forward by one of our surveyors in town; the types of signage that we currently have – would be allowed to stay as non-conforming until it is replaced, and the new types of signage that would be allowed; placement of signage for safety purposes; and that each business may still have signage on their own building. MOTION by Commissioner Staton, seconded by Commissioner Pruitt, approving forwarding this amendment to the Zoning Ordinances for this requested change to the Planning Commission for review. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ------ Aye: Commissioner Staton ----- Aye: Mayor Austin ------------- Aye: ________________________ CITY MANAGER’S REPORT: “Outside Agency Ad Hoc Committee Recommendations” WILLIAM L. “BUZZY” NEWMAN, JR., reported that the recommendations of the Ad Hoc Committee were presented. It is noted that no public hearing was scheduled because all agency requests were recommended to be awarded the full amount requested, including the three agencies with ‘one-time’ increases due to the COVID-19 pandemic. ________________________ “Introduction of New Employee” WILLIAM L. “BUZZY” NEWMAN, JR., introduced the newest staff member addition to the Administration department, Administrative Secretary Amanda Brannan. Amanda has been with the City a few years and started in the Finance Department. ________________________ “Update on Evaluation of Sale of HMPL” WILLIAM L. “BUZZY” NEWMAN, JR., reported that it is anticipated that the final report evaluating the proposal for sale of HMPL would be ready mid to late May. ________________________ “ARPA 2021 Funding Update” WILLIAM L. “BUZZY” NEWMAN, JR., reported that it is anticipated that the U.S. Department of the Treasury will announce a final determination of qualifying expenditures of the American Rescue Plan Act of 2021 funds in mid-May. ________________________ “Called Meeting - Cancelled” DAWN KELSEY, City Attorney, reported that the called meeting scheduled for Friday, April 30, 2021, has been cancelled. ________________________  49 CITY OF HENDERSON – RECORD BOOK Record of Minutes of A Regular Meeting on April 27 , 2021 COMMISSIONERS’ REPORT: COMMISSIONER VOWELS indicated that this was the first meeting with everyone attending in-person since March 2020 and he was happy to see everyone here. ________________________ MAYOR AUSTIN reported that starting Thursday the Federal Vaccination Clinic at the Extension Center on Outer Second Street behind Farm Bureau would be open. He indicated that he hoped we had good participation and encouraged everyone to seriously consider getting vaccinated against this terrible virus. He asked Donna Stinnett to give an update on other vaccination opportunities. DONNA STINNETT, Community Relations Manager/Public Information Officer, reported that the Greater Norris Chapel Baptist Church would conduct a vaccination clinic on Friday and that there would also be another clinic in the East-End across from Kids Zone in the building owned by Senator Mills and his wife. Both of those clinics will be in coordination with the Health Department. She further reported that HART will provide transportation to city residents to the Federal Clinic utilizing On-Demand service and that GRITS would provide transportation to county residents. ________________________ MEETING ADJOURN: MOTION by Commissioner Staton, seconded by Commissioner Thomas, to adjourn the meeting. The vote was called. On roll call, the vote stood: Commissioner Thomas -- Aye: Commissioner Vowels --- Aye: Commissioner Pruitt ------ Aye: Commissioner Staton ----- Aye: Mayor Austin ------------- Aye: WITHOUT OBJECTION, Mayor Austin declared the Meeting adjourned at approximately 5:10 p.m. ___________________________ ATTEST: Steve Austin, Mayor April 12, 2022 ______________________ Maree Collins, CKMC City Clerk