_Board of Commissioners

City OF NEWPORT, KY REGULAR MEETING OF THE BOARD OF COMMISSIONERS Monday, June 15, 2020 MINUTES CALL TO ORDER / ROLL CALL The meeting was called to order by Mayor Peluso at 7:00 p.m. and held via video teleconference via the Zoom meeting application with a live stream to the City’s Facebook page. In attendance via video teleconference were: Commissioner Beth Fennell. Commissioner Frank Peluso Commissioner Thomas Guidugli, Jr., Commissioner Ken Rechtin, and Mayor Jerry Peluso. Also in attendance were: City Manager Thomas Fromme, City Attorney Daniel Braun, Police Chief Chris Fangman, Director of Finance Leonard Kuntz, Assistant City Manager Larisa Sims, and City Clerk Amy Able. It was noted that, in accordance with the Governors Emergency Order and the provisions of SB 150, it is allowable to conduct the meeting via a live video teleconference. The meeting notice advised the public how to comment in advance or during the meeting. No advance comments were received. PRESENTATIONS Mr. Fromme gave a budget presentation. (See attached.) Amendment to the Fiscal Year 2019-2020 was discussed. Payroll tax is down and this figure is an estimate as an extension to July 15 was given due to the pandemic. The city clerk gave first reading by title and summary to O-2020-007: AN ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY AMENDING ORDINANCES O-2019-016 AND O-2019-028 AND AMENDING THE BUDGET FOR THE CITY FOR THE FISCAL YEAR JULY 1, 2019 TO JUNE 30, 2020, INCLUDING AN ESTIMATE OF REVENUES AND RESOURCES AND MAKING THE ANNUAL APPROPRIATION IN ACCORDANCE THEREWITH. Commissioner Fennell made a motion to approve; second to the motion was offered by Commissioner Guidugli. Upon hearing there were no further comments or questions, the mayor called for a vote; by show of hands, the motion carried unanimously, 5:0. Mr. Fromme continued the presentation reviewing the proposed budget for Fiscal Year 2020-2021. The city clerk gave first reading by title and summary to O-2020-008: AN ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY ADOPTING THE BUDGET FOR THE CITY FOR THE FISCAL YEAR JULY 1, 2020 TO JUNE 30, 2021, INCLUDING AN ESTIMATE OF REVENUES AND RESOURCES AND MAKING THE ANNUAL APPROPRIATION IN ACCORDANCE THEREWITH. Commissioner Peluso made a motion to approve; second to the motion was offered by Commissioner Guidugli. Upon hearing there were no further comments or questions, the mayor called for a vote; by show of hands, the motion carried unanimously, 5:0. APPROVAL OF MINUTES Commissioner Fennell made a motion to approve the minutes of the May 11, 2020 regular meeting. Second to the motion was offered by Commissioner Guidugli. Upon hearing there were no questions or corrections, the mayor called for a vote; by show of hands, the motion carried unanimously, 5:0. NEW BUSINESS Board of Commissioners of Newport, KY June 15, 2020 Meeting Minutes The city clerk gave first reading by title and summary of O-2020-009: AN ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY AMENDING §111.03, §111.06, §111.27, AND §111.51 OF THE CODE OF ORDINANCES CONCERNING ALCOHOLIC BEVERAGES. Commissioner Peluso made a motion to approve; second to the motion was offered by Commissioner Fennell. Mr. Fromme stated this is a housekeeping measure to allow the NQ-1 type license which had not seemed necessary when the most recent revisions were made. Upon hearing there were no further comments or questions, the mayor called for a vote; by show of hands, the motion carried unanimously, 5:0. The city clerk read by title and summary R-2020-022: AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY, AUTHORIZING CITY MANAGER THOMAS J. FROMME, PURSUANT TO THE INTERLOCAL AGREEMENT ESTABLISHING THE CITY’S PARTICIPATION IN THE KENTUCKY LEAGUE OF CITIES INSURANCE SERVICES ASSOCIATION, TO ENTER INTO AND EXECUTE A TRUST PARTICIPATION AGREEMENT IN ASSOCIATION THEREWITH. Commissioner Guidugli made a motion to approve; second to the motion was offered by Commissioner Fennell. Mr. Fromme reminded the Board this agreement allows the city to obtain insurance through KLCIS. Upon hearing there were no further comments or questions, the mayor called for a vote; by show of hands, the motion carried unanimously, 5:0. The city clerk read by title and summary R-2020-023: AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY, AUTHORIZING CITY MANAGER THOMAS J. FROMME TO ENTER INTO AGREEMENTS WITH KENTUCKY LEAGUE OF CITIES (KLCIS) FOR PROPERTY AND LIABILITY INSURANCE, WITH KENTUCKY EMPLOYERS MUTUAL (KEMI) FOR WORKERS COMPENSATION INSURANCE, WITH THE HARTFORD FOR CRIME COVERAGE, AND WITH OHIO CASUALTY AND TRAVELERS INSURANCE FOR PUBLIC OFFICIALS BONDS, AND AUTHORIZING EXECUTION OF A RATE STABILIZATION AGREEMENT FOR PROPERTY AND LIABILITY INSURANCE WITH KLCIS. Commissioner Peluso made a motion to approve; second to the motion was offered by Commissioner Fennell. Renewal rates were reviewed. Upon hearing there were no further comments or questions, the mayor called for a vote; by show of hands, the motion carried unanimously, 5:0. The city clerk read by title and summary R-2020-024: AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY, AUTHORIZING THE FILING OF A CORONAVIRUS RELIEF FUND (“CRF”) APPLICATION FOR REIMBURSEMENT OF INCURRED EXPENSES IN CRF FUNDS WITH THE DEPARTMENT FOR LOCAL GOVERNMENT (“DLG”); AUTHORIZING AND DIRECTING THE CITY MANAGER TO EXECUTE ANY DOCUMENTS WHICH ARE DEEMED NECESSARY BY DLG TO REIMBURSE THE CITY; AND AUTHORIZING THE CITY MANAGER TO ACT AS THE AUTHORIZED CORRESPONDENT FOR REIMBURSEMENT. Commissioner Guidugli made a motion to approve; second to the motion was offered by Commissioner Fennell. Mr. Fromme stated all departments have been tracking expenses. The maximum possible reimbursement would be about $1m. This is an example of why everyone responding to the census is so important, the most recent annual estimate resulted in a reduction of $200,000 in eligibility. The response rate for the current census at 57% is drastically reduced from 2010 and 2000. Upon hearing there were no further comments or questions, the mayor called for a vote; by show of hands, the motion carried unanimously, 5:0. Page 2 of 4 Board of Commissioners of Newport, KY June 15, 2020 Meeting Minutes COMMENTS FROM CITY DEPARTMENT HEADS Mrs. Sims stated there will be a virtual public forum Thursday for the Comprehensive Plan Update Steering Committee to collect input. COMMENTS FROM CITY MANAGER Several local cities are reducing staff due to the economic impact of the pandemic and the pension crisis. Many projects throughout Kentucky are on hold. Newport is in a better position than some. Everyone needs to continue to stick together as a community to get through and keep moving forward. COMMENTS FROM THE BOARD OF COMMISSIONERS Commissioner Rechtin  Thanked the Finance Department for extensive review with him on the budget.  Recognized the Fire Department with regard to the work today at the Fire on Thornton. Commissioner Peluso  Asked for an update on the Emergency Business Assistance Program. Mrs. Sims replied the application period ended in late May and the program will spend about $60k which will aid local businesses of all sorts.  Asked for an update on parks. Mrs. Sims said there is a possibility of parks having a soft reopening in July but we do not want to promote large gatherings.  Thanked all Newport and Campbell County police and fire working under extraordinary conditions. Commissioner Fennell  Police and Fire Departments work hard to keep this the great city it is.  The budget process has involved a lot of hard work by staff. Commissioner Guidugli  This is a financially responsible budget and he appreciates the team work and having all the questions of the budget committee answered. We have intentionally focused on preparing for a rainy day, we have a path and we are prepared thanks to all this work.  Thanks to all public safety in challenging times. Everyone must remember to listen to one another. Mayor Peluso  Echoed thanks for all the hard work on the budget. We all must continue to work together.  The first responders have done a wonderful job.  Residents expressed appreciation for who quickly fire and police responded to Thornton Street. Two neighbors alerted the resident of the fire and assisted in getting her and her pets out safely. ADJOURNMENT There being no further business, Commissioner Guidugli made a motion to adjourn; second to the motion was offered by Commissioner Fennell. The motion carried unanimously, 5:0. The meeting adjourned at 8:10 p.m. ___________________________ _____________________________ Date Approved/Signed Jerry R. Peluso, Mayor Page 3 of 4 Board of Commissioners of Newport, KY June 15, 2020 Meeting Minutes Attest: __________________________ Amy B. Able, City Clerk Page 4 of 4 Amended FY 2020 and Proposed FY 2021 Budget June 15, 2020 Budget Presentation FY 2020 Amended Budget - Revenues FY 2020 Amended Budget – Expenses City Manager’s Budget Message FY 2021 Proposed Budget - Revenues FY 2021 Proposed Budget - Expenses FY 2021 Proposed Budget – Summary FY 2021 Proposed Budget - Reserves FY 2021 Personnel  FY 2021 Assumptions • Conservative Revenue Projections Considering Pandemic • Property and Tangible Tax Rate – Comp +4% • Health Insurance - 0% increase, zero transfers • No TAN Issuance • Municipal Road Aid • No Reduction of Force • Removed all Non-essential Vehicle / Equipment Purchases • Delayed Issuance of Additional Debt • Sidewalk and Streets Repairs • Continuation of all Bond/Grant funded Capital Projects: – Grandview, US 27, Carothers, Floodwall Repairs