_Board of Commissioners

CITY OF NEWPORT, KY REGULAR MEETING OF THE BOARD OF COMMISSIONERS November 21, 2022, 7:00 PM Minutes CALL TO ORDER The meeting was called to order by Mayor Guidugli Jr., on Monday, November 21, 2022 at 7:00 PM. The public had access to the live stream meeting through the City of Newport, KY Facebook Page Facebook.com/CityofNewportKY and YouTube/CityofNewportKY. In Attendance: Mayor Thomas L. Guidugli Jr., Vice Mayor Frank Peluso, Commissioner Beth Fennell, Commissioner Jerry Peluso, Commissioner Rechtin. Others Present: City Manager Thomas Fromme, City Attorney Dan Braun, Deputy City Clerk Joy Rovno, Chief of Police Christopher Fangman, Chief of Fire/EMS Frank Peluso. PERSONNEL ORDERS None PUBLIC HEARINGS None PRESENTATIONS, AWARDS, PROCLAMATIONS None PUBLIC FORUM Mike Radwanski resigned his seat on the Code Enforcement Board, he stated he is excited to serve as City Commissioner. He thanked Vice Mayor Peluso and Commissioner Peluso for their many years of dedicated service to the City of Newport and its residents. 1 APPROVAL OF MINUTES Regular Meeting Minutes October 24, 2022. Commissioner Rechtin made a motion to approve the Regular Meeting Minutes of October 24, 2022. Vice Mayor Peluso offered a second to the motion. The Mayor called for a vote: Commissioner Beth Fennell Yes Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 OLD BUSINESS None NEW BUSINESS COMMISSIONERS ORDER NO. R-2022-076 AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY, AUTHORIZING THE CITY MANAGER, THOMAS J. FROMME, TO ENTER INTO AGREEMENT WITH CUSTOM DESIGN BENEFITS TO ACT AS THE CITY’S THIRD-PARTY ADMINISTRATOR WITH VARIOUS INSURANCE COMPANIES AND WITH DELTA DENTAL PPO + PREMIER TO PROVIDE FOR THE CITY OF NEWPORT’S EMPLOYEES’ HEALTH AND DENTAL INSURANCE NEEDS. Lisa Stamm with Sheryl Morgan stated after receiving quotes from several insurance companies,Sheryl Morgan recommends the City remain with Custom Design Benefits. She stated the current benefit coverage will not change. They recommended increasing the flexible spending amount and any employee that receives a physical during the year will receive a $250 contribution to their flexible spending account. She stated this is a good incentive to get employees to get their annual screenings. She went on to recommend staying with Delta Dental as the City’s dental plan. Vice Mayor Peluso stated with the City’s increase of 8% in the stop loss, what is the national average increase. 2 Lisa Stamms replied the 8% is a very low increase from other Cty’s which is typically in the double digits. Commissioner Rechtin asked how many employees have received the $250 to their flex spending accounts. Emily Moore, Human resource coordinator replied she wouldn’t have the total until the end of the year. Mayor Guidugli stated the incentive is a good one and hopes employees will use it, it is a great tool for preventive care. Thomas Fromme stated the screens has already prevented an employee from a catastrophic event. Commissioner Fennell agreed it is a good incentive. Vice Mayor Peluso made a motion to approve R-2022-076. Commissioner Rechtin offered a second to the motion. The Mayor called for a vote: Commissioner Beth Fennell Yes Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 3 COMMISSIONERS ORDER NO. R-2022-077_ AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY DECLARING CERTAIN PERSONAL PROPERTY OF THE CITY OF NEWPORT AS SURPLUS PERSONAL PROPERTY AND AUTHORIZING TRANSFER IN ACCORDANCE WITH STATE LAW. Chief Peluso stated two manual cots will be surplused. State law now requires automatic cots to prevent injury. The manual cots will be surplused to another city that does not require automatic cots. Commissioner Rechtin asked if manual cots would still be used to get patients out of their homes. Chief Peluso replied stair chairs will be used. Commissioner Fennell made a motion to approve R-2022-077. Vice Mayor Peluso offered a second to the motion. The Mayor called for a vote: Commissioner Beth Fennell Yes Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 COMMISSIONERS ORDER NO. R-2022-078 AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY AUTHORIZING AND DIRECTING THE CITY MANAGER TO ISSUE A PURCHASE ORDER FOR THE PURCHASE OF ONE 2023 MEDIX MSV11 AMBULANCE FOR USE IN THE NEWPORT FIRE/EMS DEPARTMENT. Chief Peluso stated this purchase includes an ambulance, power cots and graphics. Commissioner Fennell asked the delivery date of the equipment. Chief Peluso replied delivery is a year out. 4 Commissioner Fennell made a motion to approve R-2022-078. Commissioner Rechtin offered a second to the motion. The Mayor called for a vote: Commissioner Beth Fennell Yes Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 COMMISSIONERS ORDER NO._2022-079 AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY, AUTHORIZING THE ISSUANCE OF UP TO $2,600,000 MAXIMUM AGGREGATE PRINCIPAL AMOUNT TAX EXEMPT SPECIAL OBLIGATION REFUNDING REVENUE BONDS, SERIES 2022 TO REFUND ITS $2,101,000 TAXABLE MAXIMUM AGGREGATE PRINCIPAL AMOUNT TAXABLE INDUSTRIAL BUILDING REVENUE BONDS, SERIES 2019B (SKYPOINT PROJECT), TOGETHER WITH APPLICABLE INTEREST THEREON TO THE DATE OF THEIR PAYMENT, WHICH WERE ISSUED TO ASSIST 120 MAIN STREET, LLC, TO FINANCE IN-PART THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF AN INDUSTRIAL BUILDING FACILITY LOCATED WITHIN THE CITY OF NEWPORT, KENTUCKY AND TO IMPROVE SAID FACILITY; PROVIDING FOR THE PLEDGE OF REVENUES FOR THE PAYMENT OF SAID BONDS; AUTHORIZING A FIRST SUPPLEMENTAL TRUST INDENTURE APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF SUCH REVENUES AND FURTHER TO SECURE THE PAYMENT OF SAID BONDS; AUTHORIZING A BOND PURCHASE AGREEMENT OR BOND PLACEMENT AGREEMENT; AUTHORIZING AN AGREEMENT WITH PIPER SANDLER & COMPANY TO MARKET AND SELL THE BONDS, AND ALL OTHER AUTHORIZATIONS IN ACCORDANCE HEREWITH. Thomas Fromme gave an explanation of the bonds. He stated council prepared an executive summary of the bond. Vice Mayor Peluso asked if this would affect the pilot payment. Thomas Fromme replied no, this would not affect the pilot payment. 5 Vice Mayor Peluso made a motion to approve R-2022-079. Commissioner Fennell offered a second to the motion. The Mayor called for a vote: Commissioner Beth Fennell Yes Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 COMMISSIONERS ORDER NO. R-2022-080 AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY, AUTHORIZING THE ISSUANCE OF UP TO $45,000,000 MAXIMUM AGGREGATE PRINCIPAL AMOUNT TAXABLE INDUSTRIAL BUILDING REVENUE BONDS, SERIES 2022, IN ORDER TO ASSIST CPX BOARDWALK II, LLC, OR ITS ASSIGNS, TO FINANCE THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF AN INDUSTRIAL BUILDING FACILITY LOCATED WITHIN THE CITY OF NEWPORT, KENTUCKY AND TO IMPROVE SAID FACILITY; PROVIDING FOR THE PLEDGE OF REVENUES FOR THE PAYMENT OF SAID BONDS; AUTHORIZING A SPRINGING EXECUTORY INTEREST DEED; AUTHORIZING TRUST INDENTURES APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF SUCH REVENUES AND FURTHER TO SECURE THE PAYMENT OF SAID BONDS; AUTHORIZING A BOND PURCHASE AGREEMENT; AUTHORIZING A PILOT MORTGAGE TO SECURE PILOT PAYMENTS; AUTHORIZING HOME OFFICE PAYMENT AGREEMENTS, AND AUTHORIZING THE EXECUTION OF ANY FURTHER NECESSARY INSTRUMENTS. Dick Spoor with Keating Muething and Klekamp PLL gave an explanation of the bonds. He went on to say, these bonds are for the air lots, which will have two five story buildings that will have commercial on the first floor and residential on the upper floors. He stated the City has already approved developments such as Northern Lights that have the springing executory interest deed. He went on to explain how this works. Commissioner Fennell asked if this project would be similar projects in the area. Dick Spoor replied yes, this type of deed has been used many times and is an excepted financial tool. Commissioner Fennell asked how this benefits the developer. Dick Spoor explained the financial benefits. Thomas Fromme stated this is a valuable tool for development. There are three phases to this development, many condos have already been sold. 6 Commissioner Rechtin asked what percentage of the pilot payment the City would receive. Thomas Fromme replied he would need to check the information. Commissioner Rechtin asked how this relates to the TIF District. Dick Spoor gave an explanation of how the TIF funds are used for the project. Mayor Guidugli asked the time frame of when the next phase would begin. A Financial Representative from Corporex (name inaudible) replied the next phase would be the apartment complex and hopes to begin construction the first quarter of next year. Commissioner Rechtin asked for clarification on the apartment development. He replied there would be apartments on the first floors and condominiums on the upper floors. Commissioner Fennell made a motion to approve R-2022-080. Vice Mayor Peluso offered a second to the motion. The Mayor called for a vote: Commissioner Beth Fennell Yes Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 COMMISSIONERS ORDER NO. R-2022-081 AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY, AUTHORIZING THE ISSUANCE OF UP TO $45,000,000 MAXIMUM AGGREGATE PRINCIPAL AMOUNT TAXABLE INDUSTRIAL BUILDING REVENUE BONDS, SERIES 2022, IN ORDER TO ASSIST CPX BOARDWALK III, LLC, OR ITS ASSIGNS, TO FINANCE THE ACQUISITION, CONSTRUCTION AND EQUIPPING OF AN INDUSTRIAL BUILDING FACILITY LOCATED WITHIN THE CITY OF NEWPORT, KENTUCKY AND TO IMPROVE SAID FACILITY; PROVIDING FOR THE PLEDGE OF REVENUES FOR THE PAYMENT OF SAID BONDS; AUTHORIZING A SPRINGING EXECUTORY INTEREST DEED; AUTHORIZING TRUST INDENTURES APPROPRIATE FOR THE PROTECTION AND DISPOSITION OF SUCH REVENUES AND FURTHER TO SECURE THE PAYMENT OF SAID BONDS; AUTHORIZING A BOND PURCHASE AGREEMENT; AUTHORIZING A PILOT MORTGAGE TO SECURE PILOT PAYMENTS; AUTHORIZING HOME OFFICE PAYMENT AGREEMENTS, AND AUTHORIZING THE EXECUTION OF ANY FURTHER NECESSARY INSTRUMENTS . 7 Dick Spoor stated this is a mirror of the prior order Vice Mayor Peluso made a motion to approve R-2022-081. Commissioner Fennell offered a second to the motion. The Mayor called for a vote: Commissioner Beth Fennell Yes Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 COMMISSIONERS ORDER NO. R-2022-082 AN ORDER OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY AUTHORIZING AND DIRECTING CITY MANAGER THOMAS J. FROMME TO ENTER INTO AND EXECUTE A COMPACTOR AGREEMENT AND PERMIT WITH CPX OVATION WEST PARKING, LLC CONCERNING COMPACTOR PLACEMENT AS PART OF THE OVATION PROJECT. Thomas Fromme stated this is an easement under the existing ramp for trucks to empty the compactors for the Ovation project. He stated the City has no obligation in the agreement, Corporx would be the responsible party. Commissioner Peluso asked if there would be drainage and a water supply. Thomas Fromme replied it would. Vice Mayor Peluso asked for clarification of the agreement. Thomas Fromme replied this is simply an easement agreement not an agreement with Rumpke the City’s waste collection provider. Commissioner Rechtin asked if the City would receive a waste collection fee. Thomas Fromme replied he would need to verify how the fees are collected. 8 Commissioner Fennell made a motion to approve R-2022-082. Commissioner Rechtin offered a second to the motion. The Mayor called for a vote: Commissioner Beth Fennell Yes Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 FIRST READING COMMISSIONERS ORDINANCE NO. O-2022-012 AN ORDINANCE OF THE BOARD OF COMMISSIONERS OF THE CITY OF NEWPORT, KENTUCKY AMENDING THE ADOPTED BUDGET FOR THE CITY FOR THE FISCAL YEAR JULY 1, 2022 TO JUNE 30, 2023, INCLUDING AN ESTIMATE OF REVENUES AND RESOURCES AND MAKING THE ANNUAL APPROPRIATION IN ACCORDANCE THEREWITH. Thomas Fromme stated the funds for the CBDG grant for the elevators at Grand Towers were not accounted for in the budget, in order for the funds to be released for this project it has be to in the current budget. Commissioner Rechtin made a motion to approve O-2022-012 Commissioner Peluso offered a second to the motion. The Mayor called for a vote: Commissioner Beth Fennell Yes Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 DEPARTMENT HEAD COMMENTS Chief Peluso wished everyone a Happy Thanksgiving CITY MANAGER COMMENTS  Exciting time in the City with lots of new development  Wished everyone a Happy Thanksgiving 9 BOARD OF COMMISSIONERS COMMENTS Vice Mayor Peluso  Wished everyone a blessed Thanksgiving Commissioner Fennell  Continued commitment to public safety  Lots to be thankful for in the city Commissioner Peluso  Matt Young has been appointed by the Governor to the Kentucky Fire Commissioner  Shop Small, Shop Local on Black Friday  Wished all a Happy Thanksgiving Commissioner Rechtin  Condolences to the Ciafardini and Raw family for the loss of Phil Ciafardini, who served as City Finance officer and City Manager  Keep Don Spaulding in prayers after a cardiac incident  Congratulated newly elected commissioners and thanked all that ran in the race Mayor Guidugli  Happy Thanksgiving to all . 10 ADJOURNMENT Vice Mayor Peluso made a motion to adjourn @ 7:50pm; Commissioner Rechtin offered a second to the motion. The Mayor called for a vote: Commissioner Jerry Peluso Yes Commissioner Ken Rechtin Yes Vice Mayor Frank Peluso Yes Mayor Thomas Guidugli Jr. Yes Motion Carried 5-0 Respectfully submitted, __________________ ______________________________ Date Approved/Signed Thomas L. Guidugli Jr., Mayor Attest: -------------------------------------- Joy Rovno, Deputy City Clerk Board of Commissioners Upcoming Scheduled Meetings 2022, 7:00 PM December 12 11