Board of Mayor & Aldermen

MINUTES OF SPECIAL CALLED MEETING JUNE 16, 2025 PAGE 1 CITY OF HENDERSONVTLLE BOARD OF MAYOR AND ALDERMEN MINUTES OF SPECIAL CALLED MEETING June 16, 2025. at 7:00 P.M. 101 Maple Drive North, Hendersonville. TN 37075 PRESENT JAMIE CLARY, MAYOR MARK SKIDMORE, VICE-MA YOR,-ALDERMAN MARK BURGDORF, ALDERMAN RACHEL COLLINS, ALDERMAN KAREN DIXON, ALDERMAN MARK EVANS, ALDERMAN JANNA GARTON. ALDERMAN BOB GARZA, ALDERMAN TERRI GOODWTN, ALDERMAN MICHAEL MARTlN, ALDERMAN EDDlE ROBERSON, ALDERMAN JEFF SASSE, ALDERMAN DON WARD, ALDERMAN LANCE WRAY, CITY ATTORNEY ANNETTE HUNTER, CITY RECORDER DESTGNEE The June 16, 2025, Special Called BOMA meeting was opened with prayer led by Father Jeff Jones, Priest at Holy Family Anglican Church and Chaplain for the Hendersonville Police Department. The Pledge of Allegiance was led by Mayor Clary. AGENDA Garza moved; Garton seconded a motion to accept the June 16, 2025, agenda. There was no discussion. There was a unanimous vote to approve the agenda. Clary declared the motion carried. PRESENTATIONS None PUBLIC HEARING The caption of the Public Hearing was read for comments to be heard on an ordinance of MINUTES OF SPECIAL CALLED MEETING JUNE 16, 2025 PAGE2 the City of Hendersonville, Tennessee adopting the annual budget and tax rate for the fiscal year beginning July 1, 2025, and ending June 30, 2026. No one signed up to speak. Clary noted if Ordinance 2025-09 didn't pass at tonighe s meeting and another BOMA meeting is needed, the Public Hearing will be continued to that date. MINUTES Goodwin moved; Ward seconded a motion to approve May 27, 2025, BOMA Meeting minutes. There was no discussion. There was a unanimous vote to approve the minutes. Clary declared the motion carried. CITIZENS' COMMENTS The guidelines were read by Mayor Clary. Christina Bannister of IO l Spade Leaf Boulevard addressed the Board in support of fair pay to all employees. As a City employee, Ms. Bannister brings fifteen years of government work experience to the City. As a resident and City employee, she expressed care for the well-being of the future and community of Hendersonville. She expresse<I great respect for what the Board does. She addressed the topic of the Board approving a raise for a single department and how it has created mixed emotions and opinions. The whole picture is about the City's people, families, and livelihoods, fairness, recognition, and unity within the City. She shared while adequate staffing is important and is recognized as such in order to serve and protect the citizens, decisions made that focus on one need can create internal frustration, hurt feelings, vacancies and the sense that some roles are valued more than others. It creates division and difficult work environments. Every department plays a vital role in the success and well-being of the City. Every employee contributes to the overall success of the City. Dedication deserves recognition and hard work deserves fair compensation. She urged the Board's focus to be on long-term unity and the morale ofthc workforce. In closing, Ms. Bannister respectfully asked the Board to be equitable and appreciative for all departments in their decision about salary increases. Charlena Aumiller of 143 Ruland Circle addressed the Board regarding three items; the Piedmont franchise fee, transparency, and no raises for BOMA. She supports the consideration of the 6% for employee raises and hopes that at some point there will be parity for all departments. She also hopes the elected officials do not receive any raise. Ms. Aumiller stated per Piedmont's tariff, they have franchise fee agreements with nine (9) cities with franchise fees from 3% to 7 .19%. The other cities in the nine counties served by Piedmont have a 0% franchise fee. She encouraged the Board to vote for a 0% franchise fee, stating the pipes were already in the ground long before Hendersonville incorporated as a City. Often when there is a franchise fee it's because you>re working toward an MlNUTES OF SPECIAL CALLED MEETING JUNE 16, 2025 PAGE3 agreement on how the utility is going to put pipes in the ground. She shared she didn't appreciate how it was presented as needing the agreement for compliance and the franchise fee. She continued by stating she felt there was a lack of transparency, whether it was from the Board being misinformed or the Board not informing the citizens correctly. Ms. Aumiller requested expenditures on the saJaries for each department to be done in a trend analysis for at least three (3) years; five (5) would be better, in a budget or annual report. Because of the changes that have taken place with the positions in the Executive Department, she stated it is hard to foJlow and compare one year to another. 1n closing, Ms. Aumiller hopes her comments on transparency are considered and once again thanked the Board for considering the 6% raise. CONSENT AGENDA None. ORDINANCES AND RESOLUTIONS The caption was read for second reading of Ordinance 2025-10, an ordinance granting franchise to Piedmont Natural Gas Company, Inc. Martin moved; Burgdorf seconded a motion to approve Ordinance 2025-10 on second reading. Collins moved; Dixon seconded an amendment to change the franchise fee from 5% to 0%. Without objection the rules were suspended to hear from Steven Francescon, Government Community Relations Manager, representing Piedmont. Clary stated after the first reading of this ordinance, Mr. Francescon contacted him regarding the numbers that were used to calculate the impact to revenue were off significantly. COO Eckenroth further explained stating $195,000.00 was included in the FY26 budget as first estimates given by Piedmont of what the 5% would generate. Piedmont revisited their calculations and found that 1% is equal to $150,000.00. Finance Director Ingersoll stated the revenue from Piedmont being depended upon was $175,000.00. Evans inquired how the City got to the point of not knowing about the franchise agreement with Piedmont. Mr. Francescon stated during a periodic review reassessing all franchise agreements) it was found that the City of Hendersonville did not have a fonna1 franchise agreement in place out of the nine (9) counties Piedmont services. Regardless of the percentage, Piedmont always wants to have one in place, so they reached out to the City. Mr. Francescon clarified Piedmont does not determine the percentage; the City does. Clary inquired whether Mr. Francescon thought other gas providers throughout the state have franchise agreements with multiple cities. Mr. Francescon stated "yes". MINUTES OF SPECIAL CALLED MEETING JUNE 16, 2025 PAGE4 Martin stated the franchise fee was needed as the City is starving for operational revenue. Martin moved; Clary seconded an amendment to the amendment to move the franchise fee from 0% to 2%. Clary explained the reason he supported the 2% franchise fee is it would yield an extra $75,000.00 needed for the SAFER Grant. The reason for the need for the additional $75,000.00 is to cover the additional cost of year one of the SAFER Grant as it no longer funds 100% of the cost of new firefighters. This would allow the City to apply for the SAFER Grant for up to three (3) additional firefighters. Roberson inquired of Mr. Francescon how many counties were in his franchise territory, to which he responded there are nine (9). Roberson further inquired if Mr. Francescon was aware of the range of franchise fees to which he responded 5% was the max. Consumer advocate agencies want to see no more than 5%. Piedmont does have some cities with 5% franchise fees, but they also have some with 0%. Mr. Francescon further clarified the franchise fee percentages were all within the cities rights and the decision is up to each city. Roberson further clarified that the justification for the franchise fee is that Piedmont is providing service on City land and the City wants compensation for Piedmont having access to City land. Mr. Francescon agreed, adding that outside of that law, they pay property taxes and easement agreements. Roberson inquired whether there were any other franchise agreements with public utilities such as AT&T and Comcast as an example, that the City currently charges fees. Director Ingersoll confirmed franchise fees on Comcast and Direct TV and potentially a couple more. Roberson inquired of City Attorney Wray what term was on the 2% and if BOMA decided to change that in a few years, could they. Attorney Wray stated the term is for twenty-five (25) years. BOMA could choose to terminate the agreement with a two-thirds vote offering a new ordinance with a new fee giving 90 days' notice to Piedmont. He suggested the possibility of adding language to the ordinance with Piedmont's approval that would alJow the City to change the fee annually. Mr. Francescon stated he believed Piedmont could accommodate any reasonable request. Clary inquired of Mr. Francescon whether it was his understanding that the City could go back to the Tennessee Regulatory Authority every year with a different percentage. Mr. Francescon responded he believes it would require a simple petition to be filed with the Tennessee Regulatory Authority and would be accepted pending their approval. Clary added the petition would need to show a motion passed by the Board to which Mr. Francescon agreed. Discussion continued with Dixon confirming the $195,000.00 was included in the budget on first reading of Ordinance 2025-10 and stating while she was for an agreement, she still supports a 0% franchise fee. Sasse supports the 2% franchise fee, adding a quick MINUTES OF SPECIAL CALLED MEETING JUNE 16, 2025 PAGES calculation based on the average gas bill equates to a potential increase of $3 .00 per month in the colder months. Collins, being aware of many residents' bills being paid through non- profits whose heat had been turned off for non-payment, feels that for some a higher bill resulting in $10.00 more a month due to the fee could be an obstacle. Martin encouraged the Board's support for the 2% franchise fee as other means for revenue have already been examined, such as court costs and fees and permits, to avoid a property tax increase. Burgdorf stated he was aware that Piedmont had resources in place, such as payment plans, delayed paying, etc. to help those who are struggling with their bil1s and feels that citizens could potentially receive relief through Piedmont's resources. He is in support of the 2% franchise fee amendment. Mr. Francescon acknowledged Piedmont has a 100% non-profit, Share the Warmth, that helps residents pay their gas bills if needed. Skidmore suggested looking at other franchise agreements the City holds, such as Comcast in the future to see if franchise fee adjustments can be made to those agreements. He inquired when Comcast could be considered for an increase. Clary stated the City was close to being in the 10th year of a 25-year agreement with Comcast. Attorney Wray inquired of Mr. Francescon since there isn't a provision regarding changing the fee, and since the fee is up to the City, does he think there would be any objection by Piedmont if the City added something at the end of2.08 where the City may change the amount of the franchise fee no more than once a year by ordinance and subject to the utilities commission's approval. Mr. Francescon stated Piedmont could help administrate it and file the petition. Martin and Clary withdrew the motion and second of the amendment to the amendment to move the franchise fee from 0% to 2%. Martin moved; Clary seconded a motion restating the amendment to the amendment to move the franchise fee from 0% to 2% and to include the language at the end of Section 2.08 stating "The City may change the amount of the franchise fee not more than once every year by the passage of an ordinance and subject to the approval by the TPUC." There was a majority vote of nine (9) to four (4) to approve the amendment to the amendment with voting as follows: . Aye: Burgdorf, Evans, Garza, Martin, Roberson, Sasse, Skidmore, Ward, and Clary. Nay: Collins, Dixon, Garton, and Goodwin. Clary declared the motion carried. There was a majority vote of nine (9) to four (4) to approve Ordinance 2025-10 as amended on second reading with voting as follows: Aye: Burgdorf, Evans, Garza, Martin, Roberson, Sasse, Skidmore, Ward, and Clary. MINUTES OF SPECIAL CALLED MEET1NG JUNE 16, 2025 PAGE6 Nay: Collins, Dixon, Garton, and Goodwin. Clary declared the motion carried. The caption was read for second reading of Ordinance 2025-09, an ordinance of the City of Hendersonville, Tennessee adopting the annual budget and tax rate for the fiscal year beginning July 1, 2025, and ending June 30, 2026. Clary moved; Collins seconded a motion to amend Ordinance 2025-09 by taking $75,000.00 from the additional $105,000.00 revenue just approved on the Piedmont franchise agreement and placing it in Salaries and Benefits for the Fire Department for specific use of the SAFER Grant for the hiring of three (3) firefighters if awarded. Clary explained that the SAFER Grant no longer provides 100% of the first year's pay. Eckenroth explained new guidelines came with the SAFER Grant application and the first three (3) years are no longer funded at 100%. The reason for the need for the additional $75,000.00 is to cover the additional cost of year one. Year one and year two are covered at 75%, and year 3 is covered at 35%. Year 4 and forward the City will be responsible for 100% of the cost of the additional firefighters. Goodwin added the SAFER Grant came through the Public Safety Committee and passed with a unanimous positive recommendation to BOMA. There was a unanimous vote of approval to amend Ordinance 2025-09 by moving $75,000.00 from Revenue to Salaries & Benefits for the Fire Department. Clary declared the motion carried. Roberson moved; Clary seconded a motion to amend Ordinance 2025-09, Scenario 5 to include the COO in the 2.5% increase and exclude aH elected officials of BOMA from the supplemental pay and merit increase and receive the 2.0% COLA. Clary spoke to the motion favorably as be is affected the most, being the only full-time elected official with a residency requirement. Pay for any position should be comparable to a similar position, but there aren't many positions in the State of Tennessee that use the City of Hendersonville's charter. As full-time mayor, head of the executive, and head of the legislative body, there aren't that many positions that meet those criteria. He can 't justify the mayor's position getting a raise because it hasn't been compared to other mayor's positions that are similar. There was a brief discussion that Roberson's amendment was not changing anything on the adoption of Scenario 5 on first reading; it was simply a clarification. Roberson agreed. Attorney Wray stated the point of clarification was on record and a motion to amend would not be needed. Motion and second was withdrawn. Sasse presented slides with scenario comparisons between the Mayor's Budget, Scenario 5 and Scenario 2A. MINUTES OF SPECIAL CALLED MEETING JUNE 16, 2025 PAGE7 Sasse moved; Garza seconded an amendment to Ordinance 2025-09 proposing Scenario 2A. Dixon inquired what is the bottom-line change between Scenario 5 and Scenario 2A. Director Ingersoll stated approximately $23,000.00. Considering the additional revenue for the franchise agreement with Piedmont, the $75,000.00 for the Fire SAFER Grant, and the proposed amendment, the operating budget now has an approximate $28,000.00 surplus. Collins asked for point of clarification thinking the aldermen were not getting the 2.0% COLA. Clary stated in previous budgets aldermen had received COLA. Director Ingersoll further clarified the 2.0% COLA for the Mayor and COO was included in Scenario 5 and nothing was included in the budget for BOMA; it remained the same as it was in the prior year. Roberson voiced support for Scenario 2A. Evans pointed out Scenario 5 included the language to ensure a supervisor was not making Jess than their subordinates and he would like to see that included in the motion currently on the table. Director Ingersoll explained there was one employee to which this situation applied resulting in an impact of approximately $3,000.00. She had included that calculation that was approved on first reading. Sasse stated he would like to include that language with his motion and the movement of the pay study to non-operating does not change and remains included. Sasse and Garza's amendment to replace Scenario 5 with Scenario 2A was restated to include that staff identify any case where an employee subject to a 2.5% raise wil I be eclipsed in base pay by a subordinate. If such cases exist, staff is authorized with BOMA 's approval to raise the employee's base saJary a step within their existing pay grade, so they are not eclipsed by a subordinate's base pay and such pay adjustments are not to exceed two steps in the pay grade, or 5%. $150,000.00 will be moved from the pay study to a non- operating expense. There was a unanimous vote to approve the amendment to Ordinance 2025-09 adopting Scenario 2A with language stated above. Clary declared the motion carried. Skidmore moved; Sasse seconded an amendment to move $30,000.00 out of the tree bank to Planning Department line item Landscaping Services to use in other areas of the City to replace trees within the community that have died. Skidmore added these funds were not taxpayer dollars, but instead money that is collected from developers and placed in the fund for tree replacement. Director Ingersoll clarified there was more than enough in the tree bank fund to MINUTES OF SPECIAL CALLED MEETING JUNE 16, 2025 PAGES accommodate thjs amendment. Without objection, Assistant Planning Director Timothy Whitten was asked to speak regarding the tree bank. He verified $30,000.00 would cover the cost of approximately fifty (50) 2.5-inch trees. Assistant Planner Whitten stated the Planning Department assesses on an annual basis the need for trees, annuaIJy spending $30,0000.00 - $50,000.00 out of the tree bank. Sasse inquired whether $30,000.00 was enough. Director Ingersoll stated for FY2026 there is currently nothing in that line item. Out of the FY2025 budget, approximately $60,000.00 has been spent. Sasse suggested to Skidmore the amendment be changed to $60,000.00. Skidmore agreed. The motion was restated to move $60,000.00 from the tree bank to Planning Landscaping Services. Martin inquired whether pulling the funds out of the tree bank offered more freedom in where trees can be planted. Assistant Planning Director Whitten stated the City is restricted to planting trees on City property, right of way, schools, parks, streetscapes, and State roads. Martin supports the amendment as it gives flexibility. There was a unanimous vote to approve the amendment to move $60,000.00 out of the tree bank to Planning Department Landscape Services. Clary declared the motion carried. Collins asked Eckenroth to include in the next BOMA report a trend analysis of Executive positions as if those positions had not changed for the last four years and everything that has moved in and out of the department as well as other expenses that aren't salary related. Martin moved; Burgdorf seconded a motion to amend Ordinance 2025-09 with Scenario 1, at 9% instead of 10%. Roberson, Evans, and Garton expressed they would not support Scenario 1. The motion failed three (3) to ten (10) with voting as follows: Aye: Burgdorf, Martin, and Skidmore. Nay: Collins, Dixon, Evans, Garton, Garza, Goodwin, Roberson, Sasse, Ward, and Clary. Clary declared the motion failed. Collins moved, Evans seconded a motion to approve Ordinance 2025-09 on second reading along with amendments and adopt all previously voted measures at tonight's meeting redating hereto. There was a unanimous vote to approve Ordinance 2025-09 on second reading as amended. MINUTES OF SPECIAL CALLED MEETING JUNE 16, 2025 PAGE9 Clary declared the motion carried. Goodwin moved; Dixon seconded a motion to take a five-minute break at 8:30 pm. Upon return from the break, the caption was read for second reading of Ordinance 2025-11, an ordinance amending budget Ordinance 2024-08 to reflect adjustments to the City's 2025 Fiscal Year budget. Sasse moved; Goodwin seconded a motion to approve Ordinance 2025-11 on second reading. There was no discussion. There was a unanimous vote to approve Ordinance 2025-11 on second reading. Clary declared the motion carried. OTHERAGENDAITEMS Goodwin moved; Martin seconded a motion to cancel the June 24, 2025, BOMA Meeting. There was no discussion. There was a majority vote of twelve (12) to one (1) to cancel the June 24, 2025, BOMA Meeting with voting as follows: Aye: Burgdorf, Collins, Dixon, Evans, Garton, Garza, Goodwin, Martin, Roberson, Skidmore, Ward, and Clary. Nay: Sasse. Absent: None. Upon motion by Goodwin and second by Dixon there was a unanimous vote for approval to adjourn. Cl d the meeting adjourned at 8:43 p.m . ~~,,,,. . Ap