City of Russellville, KY

MINUTES of REGULAR SESSION

of the BOARD of COUNCIL

of the CITY of RUSSELLVILLE, KENTUCKY

held JUNE 22, 2010

The Russellville City Council met in regular session on Tuesday, June 22, 2010, at 5:00 p.m., in city hall. Mayor Gene Zick presided over the meeting with Council Members Pat Bell, Jack Whipple, Doug Nash, Russell Jones and Lanny McPherson present. Jimmy Davenport was absent.

The mayor asked for a motion to approve the minutes of June 8, 2010.

Bell moved, seconded by Whipple, to approve the minutes of the June 8, 2010 meeting.

The mayor asked for any questions or additions in regard to the minutes. There were none. The vote to approve was unanimous.

Mayor Zick said he had received a letter from Nova Wheeler dated June 9, 2010 resigning as chair of the Arts Council. As a result of this they have gotten together and are reorganizing themselves. He asked Russell Jones who is on that committee to explain.

Jones explained that Carl Seidler had agreed to sign checks for them until they can come up with a new chair person. They have some ideas on people that would be willing to serve. We have just recently helped Main Street with the Evening with Rosemary and a raffle. This was a benefit for the community. The Arts Council is kind of under the guidance of Main Street. Jones said the Arts Council has lost two good chairmen and that has been hard on us. We will find another one and if anyone wants to volunteer. He said he thought it was pertinent we have the Arts Council as well as the other committees for our community. A lot of good presentation will pass us by if we do not take advantage of them.

The mayor said Brother Joe Carrico’s term was coming to an end on the Electric Plant Board. He asked the council’s approval of his re-appointment of Carrico to the Electric Plant Board.

Whipple moved, seconded by McPherson, to approve the mayor’s re-appointment of Brother Joe Carrico to the Electric Plant Board. The motion to approve was unanimous.

The mayor said this week, on South Main Street between 4^th and 5^th Streets we will be replacing the 8” water line so that when we finally get the okay to do Streetscape we don’t have to dig it up and redo all the pavement. This is the line that busted several years ago. This will basically be done off-shift, starting at 5:00 at night to minimize the traffic. Plus, the state gives us several requirements; they want two-way traffic all of the time. We will have to eliminate parking on both sides of the street in order to get this accomplished. It should take about a week to get it done.

McPherson asked the mayor since he was on that subject, did he know when the city could repair the square, the paving. The mayor said as soon as the water line was done we will jump from there; we are just waiting to hear from Scotty’s. He wants to get the traffic settled down here because until StreetScape comes he can’t do that whole section so I’m not going to wait any longer. It’s well packed over there for sure and so we will do that fairly shortly.

Next on the agenda was committee report. Linda Bloodworth with the Beautification Commission presented the July PRIDE award to the Logan County Garden Club lead by Shirley Haines and their efforts to preserve and restore the John Littlejohn Cemetery located at Second and Caldwell Streets. They spent hours on the project. Bloodworth gave a brief history on the cemetery, including Littlejohn. The current president of the Garden Club and Cemetery Committee Chair, Margaret Humble, was present to accept the award. Jones said the cemetery looked a lot better than what it used to. The mayor asked if they had ever looked into the grant that was available because of the soldier buried there. Humble said that was a project they were working on this summer and to try and get a historic marker.

Next on the agenda was a financial report by City Clerk-Treasurer Bob Riggs. Riggs reported the General Fund started the month of June with $196,000 in cash. This is a very low period for revenue and late in the month we had to borrow $100,000 to get through this month; today we have $69,000 dollars. Riggs said there would be low revenue until late in July when we will have the insurance revenue that kicks in. This will help us get through August and September; October will be somewhat low until we get property tax which is our big revenue time. We did something similar to this last year. We had to acquire a short term operating money basically until property taxes allowed us to pay it off. This is not a deviation from the budget; it is pretty much what we expect. Riggs said the old hospital note comes up in August that we do not need to forget about. We have spent $943,000 of the Rockwell Park project and we have $585,000 still available. The KTCS Fire Training facility for $52,000 has now been spent and the project has been finished. The Kentucky Streetscape grant of $325,000 has not yet been released; this is a very complicated process of getting that going. There is a Kentucky CDBG Green Firehouse grant that we will be looking at resolutions relating to that tonight. We have only spent $4,000 of that, we have $496,000 available. We were looking for FEMA to reimburse us on flood related costs. We have submitted the first (in the amount of) $39,000.

Robin Stuart who video tapes the meetings said she had just received a call from the water department who is getting ready to start on the South Main water line project. If anyone is parked on that street between 4^th and 5^th Streets they would need to move their vehicles. The mayor whose car was parked on the side of the street left the meeting but asked Riggs to continue his report.

Riggs said the Water and Sewer cash started the month with $90,000 and at this point we have $96,000. There is no short term operating debt for Water and Sewer. He mentioned this at the last meeting but the revenue has been off the first 10 months of the year through April; it was $118,000 lower than the budget and our Logan-Todd water costs are up $85,000 during that same period so we are $210,000 worse than the budget would have expected (inaudible) for those two items we would be in better financial shape than we are right now. Riggs added this had been built into next year’s budget so it’s not necessarily a problem going forward. Our Rockwell money for the Johnson Street sewer project has spent $7,000 of the Phase II money and we have $421,000 still available for Johnson Street of the Rockwell money. There is the KIA grant and loan of $800,000; we have spent $88,000 of that money for Johnson Street and we have $412,000 still available. The Municipal Road Aid cash started the month with $85,000 and at this point we have $56,000. There is approximately $84,000 from the state that we will be receiving in August. The Perpetual Cash is stable at this point at $188,000.

Riggs asked if anyone had any questions on the financial. This is the last month of the fiscal year and we will be doing physical inventory the last day of the month; pipes and those types of supplies.

Jones asked if we had spent any money out of Municipal Road Aid for sidewalks yet or has it been mostly for streets. The mayor said it had been mostly for streets and paving. We just got a big bill in from Scotty’s of about $20,000 for a section by the park, 2 sections in Bethel and pot hole patching in larger areas. We haven’t gotten to Cardinal (Drive) yet but that is next. Jones asked if the city had the manpower to do the sidewalks and the mayor said yes. Nash said they have done the cut outs on Cardinal. The mayor said we were trying to get the high priority ones first based on the list then we will have sidewalks to take care of.

Next on the agenda was old business. The mayor passed to the council a picture of a building the Dream Riders were looking at. He said nothing had been firmed up with them and obviously it won’t until it has been discussed with the council. There has been a lot of conversation in the paper about what is going on at the Extension Service or may not be going on and is getting into the equation of what they are looking at. Nothing has developed yet. He said he has talked to Sue Arnold a couple more times on how big the building is and where they stand on the building. They have to do something fairly quickly or they lose the money; lose everything. We are just trying to be good citizens and trying to help them along.

Bell asked could anybody, does it have to be city or county that builds? Have we checked with Frankfort because the park came through a grant? The mayor said yes and it was restricted use. She asked if we had checked with Frankfort and the mayor yes said, as long as it is recreational and we are leasing it, same as the dog pound. He said he has gone through the state; we have to go through the Department of the Interior. We maintain the ownership so we don’t give it away, the land, so we don’t lose it. As a matter of fact if it gets that far down the road part of the contract will be if they continue to exist that building becomes ours and will be minimum leasing. Whipple asked if the city would pay for when we use it and the mayor said absolutely. The mayor said he didn’t think the city would be as stringent as some other people try to be. The objective is to have the Dream Riders there. Slack time we as a city could use it for city people. Bell asked about insurance and the mayor said Dream Riders would have their own insurance and the city would have its own insurance; totally separate. All of the utilities would be totally separate.

Next on the agenda was an update on the animal licensing issue. The mayor said there have been articles in the paper relative to the new proposals coming out about now. It looks like the Humane Society is going to have a fulltime animal control person governed by the Human Society. He said we would see how that works out. He thought there would be a lot more control. Having a part-time animal control person doesn’t work. Not with the amount of animals we have, especially those that are not registered.  There is going to be a couple of things going on with pit bulls and unregistered pit bulls within a short time but I will get to that later. We are holding our own right now on licensing. Bell said her opinion was the citizens need to have quite a bit of input and there needs to be quite a bit of discussion because it’s a tax fee every time you turn around. Nash said he has had a lot of people to call him and tell him they do not want it and Bell said she had too; they were strongly against it. The mayor said he had also heard Shirlee (Yassney) on the radio, an election year. Whipple said he had sent an email out but could get the information to the mayor and cut the person’s name off. The mayor said he knew what the sense was but what he was trying to do was see if the city could supply some money to the Humane Society and at least some control of the animals; make sure people have their (animals) shots and make sure they are registered. He said if it falls through it falls through. Bell asked was the mayor talking about all of the money going to the Humane Society or just the amount that the city usually donates. The mayor said we were looking at, until they (Humane Society) started with this officer, and of course their cost is going to go up, I would say all the fees and all the fines go to them, not us. They are doing all of the work. He said he sees the other side of the argument when people say they have their dog or cat in the house so why should they to support the people that have their animals outside running around. He said we weren’t down that road yet but we will keep going.

Next on the agenda was new business. Grant Writer Kaye Simmons read Resolution 2010-04, Kentucky Residential Anti-displacement and Relocation Assistance Plan under Section 104 (d) of the Housing and Community Development Act of 1974, as amended in its entirety.  She explained the resolution was procedural and has to be passed. Auburn has passed theirs because they just got the same grant on a senior citizen’s center.

The mayor added it was part of the package that goes into getting a CDBG grant and they require it. We are not displacing anyone but they say you still have to sign the form.

The mayor asked for a motion to approve Resolution 2010-04.

Bell moved, seconded by Whipple, to approve Resolution 2010-04. The motion passed with Bell, Whipple, Nash, Jones and McPherson voting yes and Davenport being absent from the meeting.

Next on the agenda was Resolution 2010-05, a Resolution regarding CDBG project costs. Simmons read the resolution in its entirety.

The mayor said what they were looking for in this resolution was for the city to put its budget and plan together and if those are gone over budget it will be our “baby” or on the city if we overspend; we will pay the cost. They will not give us any additional money. He said this was the same thing they were doing with all of the other grant areas as well. Simmons said she had also had a meeting with the architect yesterday and he suggested if the council prefers to let him know through her instead of hiring a contractor and going to bid for a contractor he can include hiring a construction manager and that person would go with the money every step of the way like if someone purchases something they would approach him and he said he could get a better price for that or tell them to go ahead and do that. He would know the limit of what he has been advised to spend and that’s as far as he can go. He has said to let him know if that is what the council prefers. McPherson said he would also get a cut and Simmons said through the bid though. McPherson said before he voted on this he would like to see the project design, the engineer’s estimates and the specifications for this project. Bell said she would too. Simmons said he was planning on coming down and being with us. She said the only problem was, it was kind of a Catch 22, if we are not going to pass the project then we don’t get the grant and someone else will, then we won’t need an architect. She said this was a procedural thing, Auburn passed theirs last week and she has copied it word for word except for “city of Russellville” because I want to do what Auburn and Lewisburg are doing because they got the same pot of money.

The mayor said they had us in a Catch 22. We can’t spend any money to get an architect other than the superficial design that the council saw when we got the check from the governor without going forward and this is the next step. Then we go get the architect and then you roll this thing together. The mayor said what you do is look at the drawing and say it is good or bad or cost too much and you start to kill it right then and there.

Whipple asked if he meant kill the project and the mayor said the project, whatever. McPherson said we could change the scope. Simmons said also a function of this grant was they suggested when they were reviewing the grant agreement that we should have monthly meetings and sit down with the architect or contractors or whoever is involved in it and go over things monthly so there are no surprises. McPherson said he could say from dealing with construction managers, when we built Chandlers School I dealt with one on that construction, and that doesn’t assure you that you will not go over budget. The mayor said it would be someone else to look at the numbers. McPherson said but by the same token if you bid the entire project out, a lock and key job, then the council has to approve any change orders and so then you get it for what you got the bid for. Bell said she was like McPherson that is what the council wants to look at the project, lock, stock and ready to move in because we do not want to go over and not have enough to complete the job.

Simmons said the architect understands that. She said once you are doing a grant and it is publicized everybody who is on this project is going to go the amount of the grant; that’s common sense. The grant can’t be extended, you can’t get more. McPherson said that was not the case when they built Logan-Todd Regional Water. The architect knew what money they had and assured them in the whole process that the plant would come in under the projected costs and it came in millions over but they still passed it. We can’t go down that road.

Jones asked what the city required, was it $100,000 in-kind and Simmons said yes in-kind. It was an 80-20. Jones said there were offices we could not put into this, the administrative and what else? Simmons said the chief and assistant chief are in the design and we don’t have an assistant chief. Jones asked if we would have to build those offices ourselves; other than that everything is up front? Simmons said anyone can come by her desk anytime and she will give them what she has; if you want to be involved you can be involved.

The mayor asked what the deadline was on deciding this, the authorization, was it July 9. Simmons said July 1, for the contractor and July 9^th for the actual grant agreement, yes.

McPherson asked if the council passes the resolution tonight and we do a lock and key job, that would also have to come before council and the mayor said right. Simmons added plus there would be bid openings and told council to come to those. The mayor said the architect has to get down to the nitty-gritty and spell all of those specs out. He said we could either look at a lock and turn-key job or split off plumbing and electrical; whichever way the council wanted to go.

Riggs said the resolution isn’t saying anything new. If they give us so much money…McPherson said it wasn’t saying anything new but it depends on which direction the council goes in building this project. He said if we go lock and key job from a construction contractor then this is no issues. If we go hiring a site manager and say take care of it for us then we are not assured of anything, we could be signing up for $150,000 of cost overruns. The mayor said this had just been a suggestion on the architect’s part and McPherson said he understood that.

The mayor asked for any further discussion. Being none he asked for a motion to approve Resolution 2010-05.

Bell moved, seconded by Whipple, to approve Resolution 2010-05. The motion passed with Bell, Whipple, Nash, Jones and McPherson voting yes and Davenport being absent.

The mayor said he had a need to go into executive session for reason of property, personnel or litigation and pursuant to KRS 61.815(1)(a).

Bell moved seconded by McPherson to leave regular session and enter into executive session. The motion passed unanimously.

Mcpherson moved, seconded by Bell to leave executive session and return to regular session. The motion passed unanimously.

City Attorney Hedges asked the mayor if the issue needed to be accomplished pretty quickly and the mayor said yes. He said we had 5 business days to give an acceptance of the offer. The closing will be on July 21^st. The mayor said if the council authorizes him to sign he will and Hedges could then pick up the ball.

Hedges explained that in executive session the council had discussed the sale of city property which we know as the  I&I building on old (600) Hopkinsville Street, formerly the old street department. Hedges said the offer of $34,000 has been made by Mr. Billy Wilson and Mr. Bobby Wilson for that property. He said if council believes that is a fair offer for the property we are looking for a motion to sell the property and at the offered price of $34,000 to the gentlemen. Make a motion to that effect.

McPherson moved, seconded by Bell, to approve the sale of the I&I building on 600 Hopkinsville Street, formerly the street department, to Billy and Bobby Wilson in the amount of $34,000. The motion to approve passed unanimously.

The mayor asked for a motion to adjourn the meeting.

Nash moved, seconded by Jones, to adjourn the meeting. The motion passed unanimously.

ATTEST:

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City Clerk                                                                                                                             Mayor