City of Russellville, KY

MINUTES of REGULAR SESSION

of the BOARD of COUNCIL

of the CITY of RUSSELLVILLE, KENTUCKY

held February 16, 2010

 

The Russellville City Council met in regular session on Tuesday, February 16, 2009, at 6:00 p.m. in city hall. Mayor Gene Zick presided over the meeting with council members Jimmy Davenport, Pat Bell, Jack Whipple, Doug Nash, Russell Jones and Lanny McPherson present.

 

The mayor asked for a motion to approve the minutes of the regular session held February 2, 2010.

 

McPherson moved, seconded by Nash, to approve the minutes.

 

The mayor asked for additions or corrections.

 

Bell said on page 11, when Nash states the motor on the ladder truck could be operated manually; she had responded there would not be enough fire fighters to fight the fire and operate the motor manually instead of there would be.

 

The mayor said on page 8 when Jones spoke on water loss 10 years ago being 25%-30% his information from looking into that was the meter that was used did not work plus they were selling their own water and didn’t care how much loss they had.

 

The mayor asked for a roll call to approve the minutes of the 2^nd with the correction noted; the motion passed unanimously.

 

The mayor noted he had no appointments but several comments. He has been notified that Wayne Thomas is being awarded an environmental safety award from KLC in March.

 

The mayor said he was pleased to see council candidates here tonight.  He had a comment he wanted to make. This is an election year and everyone is elected to serve the citizens of the city. This is a call into public service and should lead us to do what is right, moral and ethical; not what it takes to get us elected. He said he expected all to be a role model for other candidates and to show others how to act when taking public office. He added that he has had to issue a memo to city employees because of rumors spreading and child-like and discourteous behavior. He had learned the lesson at Logan Aluminum to talk face to face and not back to face and this is the message he is putting across. He will have on March 8^th another team building session on sensitivity training for all employees.

 

The mayor reported snow removal has gone well and the employees did an outstanding job. They have been working ghastly hours. We are halfway through the 50 tons of salt we ordered and ready to order more. The renovation process at Duncan’s Drug Store has begun. He said as he understands it they are going to take the whole floor out and create a new basement, dumb-waiter and all new windows on the side. The owner has employed the same architect to redo the building (across the street) she just bought for $40,000 and it would either be a pizza parlor or a bakery. The city has finally gotten approval from the state to go ahead with the Streetscape project. He will be meeting with Larry Wilcutt (EPB) tomorrow to talk about where to start putting the underground electric. The state has to give its approval on the bid package. The mayor reported the city has started talks with Atmos (Energy) relative to its franchise renewal which takes place in August; it is a long process but I will keep council appraised on it. Recently in the papers and television there has been major talk about budgets. The mayor said the city had met with KLC to find out about medical insurance and the word is not very good. We are not only looking at our current supplier but others as well. We are looking at a medical increase of 15%, natural gas at 17%, electricity 5% and fuel over 3%. Council will be hearing about this major impact as we go through the year. If you look at just taking those numbers on our budget now the General Fund will have an $82,000 impact negatively and Water and Sewer will be a $30,000 impact. He asked the council to keep this in mind as we start looking at what we will be doing. The House (state) is trying to resurrect a bill they tried to get passed last year where the state would collect all of the occupational tax and fees. These would have to go to the state then be sent down here and you should know what is going to happen with that. The mayor charged everyone to call their representative and senators and ask them not to pass the bill; it will hit the General Fund big time. While KLC was here we talked to them about our wellness program and they are going to check to see if we can get a discount because of it which would help our insurance cost. The city has had another “Christmas Angel” to come into the water billing department. This time she paid another water bill and someone who heard about that did the same thing. The I&I department found a major problem on Wright Drive; a sewer line that was not connected to the main. It has been bubbling. Consequently it has now been tapped into a sewer line. McPherson asked what size line it had been and the mayor said it had been a 4” line. The mayor said false alarms have been increasing. The Citizens Police Academy will be starting again March 22^nd. Reshape Russellville now has 110 participants and Carpenter Center attendance is now at 1,594. Fire Chief Billy Poole has been asked to go to Lexington, Ky. to give a presentation on his fire training building; this sounds like a good sign.

 

The mayor asked if there were any committee reports; there were none. The mayor asked what, if any, results came from Council members Nash and McPherson going to the City Days/City Nights event sponsored by KLC. Nash said he hadn’t gotten very much out of it himself; it had been just the usual thing. The mayor asked if they have met with either Senator Pendleton or Representative Martha Jane King. Nash said he saw King but didn’t see Pendleton. McPherson said they were both there and they had spent about an hour with King. He said they had talked to mayors and council people from other cities just inquiring into different aspects of how their city operation went. He said it was more of a social event than a learning event but he had learned a little from them.

 

Bell reported she had received a call from Ken Brown on the Mayor’s Youth Council. Brown would be getting back with her and Whipple around the second week in March; they are trying to figure out a day where the students can meet but it was hard because they are involved in so much. They were looking at Mondays. The mayor said he had been wondering what was going on because a youth director was supposed to have worked out a schedule.

 

The mayor told the council the city had received another quote on a fire truck (ladder) for $443,000 and they were evaluating the bid. Also, the governor has issued a proclamation on Teen Dating and Violence and Prevention through the month of February.

 

Next on the agenda was Bob Riggs with a report on the finances of the city. Riggs reported the General Fund started the month of February with $269,000 and at this point we have $137,000 which is good considering we have a significant amount of accounts payable. We do not have any short-term loans but we have a relatively short one, the old hospital of $150,000 that is due in August. The revenue so far for this year in the General Fund is slightly above budget. When you compare the revenue to last year when we anticipated a downturn in revenue, it has happened. Our payroll or occupational tax is down $46,000 year to date compared to last year. We thought this was going to happen and it did. We are living within our budget. We also anticipated we could reduce salaries and maintenance costs and we put those things in our budget and those things have happened too; our salaries are $35,000 less than budget and our maintenance is $53,000 less than last year. He added that compared to budget they are very close. The Rockwell Park project has spent $810,000. That is no different than the last meeting. We still have $710,000 available.

 

Riggs continued: in the Water and Sewer cash, we started the month with $54,000 and at this point we are at $238,000. He said this sounds like a lot but we still owe about a $93,000 Logan-Todd water bill and the rest of the revenue has to last till the end of the month. Riggs said the revenue for Water-Sewer is right at budget year to date; if compared to last year it is lower. We anticipated that the revenue would be lower because the last half of the year was down; we are $88,000 less on revenue than this time a year ago but we are right on budget. Salaries are $35,000 lower than last year and maintenance costs are lower than last year.  There is no short term debt for Water and Sewer. We are still trying to refinance the 1998 Sewer bonds if interest rates cooperate. The Rockwell Sewer-Johnson Street project is in Phase II; we have spent $48,000 so far and have $381,000 available which should allow us to take part in the KIA $800,000 grant/loan. He explained he thought the net effect would be the city would get about a $420,000 grant because we have $380,000 to pay off on our loan and that way we will not have any out of pocket expense.

 

Riggs continued: The Perpetual Cash started the month with $185,000 and it is at $186,000. The Municipal Road Aid cash started the month with $51,000 and we are currently at $93,000. We had $46,000 come in from the state during the month. Riggs said he had passed out financials to the council for the month of January and if any of the council had any questions please ask.

 

In reference to the old hospital, McPherson said he had talked to the people from Glasgow while he was in Frankfort and while they had been in the evaluation project during the city’s visit, they are just now starting the renovation project. He noted it had been 3 years since their visit and that it had taken that long to get the process started.  Davenport asked the mayor if he had heard anything on it and the mayor said if he talked to AU Associates; they are almost dead in the water, the market is down and the HUD credits are terrible. Hopefully the stimulus money is going to start flowing somewhat in that direction and may open some doors but we are looking at a couple of other things as well.  He said he has had a lot of conversations as to what is inside the building currently and have had a consultant to come in and look at the asbestos in the building. The state had a consultant come in and in his estimation they had done a poor job telling the city exactly what was there. He explained not only does the city need a quote on how much it would be to clean it up we also have to know how much was there. He said until he got all of this data he wouldn’t know exactly what the costs were going to be. The mayor said they have not given up on the project; they were still working on it.

 

Next on the agenda was a department report by Utilities Director Wayne Thomas. Thomas reported for the month of January the Water Dept. found 19 leaks and they have been repaired. When we do repairs we try and replace the whole section if possible but it is already under enough stress that when you put a new line in then it pops again in the system somewhere else. He said they were working very diligently on locating leaks. The Johnson Street Phase II project is scheduled to start its first phase on the 21^st of this month; they will start with pipe bursting which is what the majority of it will be. Thomas said with the snow removal they have had to reschedule employees and move them in and out.

 

Jones asked Thomas what the city’s involvement is in the Streetscape project and what costs could we possibly incur if we go in and try to replace some of the lines while we have the opportunity. The mayor said it would be $28,000 for the main line between the Fourth and Fifth Streets (east). The mayor added this would include the paving. Jones asked if this would be the cost the city would incur above Streetscape and the mayor said yes. Jones asked if there were any other things we need to do while we are involved in that and the mayor said nothing that would come out of our pocket. The mayor said he would try and defer a lot of the paving to the Streetscape section as well. What we will have to do is bring that up on one corner because of the curb. So, some of the cost of the $28,000 is going to go to Streetscape.

 

The mayor told council while talking about water loss at the last meeting relative to the whole process; (what about) cost. He had asked Thomas if every leak could be instantaneously be repaired to get the percentage from 34% down to 25%, what would the city gain and Riggs had come up with some numbers like $128,000 in savings. The mayor said this would have to be done instantaneously; now we are fixing one today and another tomorrow. Some of the explanation of this is new pressure on an old line when leaks are fixed; this is some of the problem. Weather also has an impact as well so everything cannot be done at one time. The mayor said if we contrast the $128,000 we would gain if every piece of pipe in town were repaired at the same time you are looking at a water rate increase passing along losing $145,000 of income because of Logan-Todd. The mayor said another interesting thing was an advertisement in today’s paper that mentioned South Logan Water District was raising their rates .44 plus .09. North Logan is raising theirs .44 plus .10 for water loss; their water loss is 14%. North Logan was basically a transportation pipeline.

 

Next on the agenda was Grant Writer Kaye Simmons. Simmons said last week she and Thomas had attended the Kentucky Counsel for Area Development District’s board meeting and legislative prayer breakfast. Pendleton had breakfast with us. We told him about all of the projects (which) he incidentally asked. Simmons said she had recently sent letters to the legislators and it made her feel good to know he had read it because he approached them. He asked what order Simmons had the city’s projects in. Simmons said and then because everything they go to talks about the recession, there was still going to be money for various areas of the grant. It is just when we hear the publicity for grant money, the money was still there. Simmons said the Homeland Security grant was getting ready to come up again. Russellville has been very lucky to get this every year. She said this year, because the ECC Center had gotten money to upgrade the communication system, we were going to ask for upgraded radios for police and fire. She said there was also a CARE grant available for the wastewater treatment plant she is working on. We have pending grants; either state, federal government or private entities and totals $1,354,375. Simmons said the Fire Truck grant or Assistance to Firefighters grant she would write this spring; the deadline is in April. It is the one grant she knows for sure where you can ask for a fire truck. She said as far as the Green Firehouse, we had state and federal grants pending on it. The last top grant was for the old hospital. Also on there was the sewer line out Hwy 100 for the new school.

 

Before the next item on the agenda, 2^nd reading of Ordinance 2010-01, amending Ordinance 2007-01, automatic adjusting the water and sewer rates based on the cost of living sponsored by Russell Jones, the mayor said there had been essentially 3 options; do nothing, an increase of 5.9%,  and, an increase of 4.3% for COLA.

 

Hedges then held second reading of Ordinance 2010-01. He explained the ordinance was designed to raise revenue so he was required to read it in its entirety (attachment). The ordinance was using the Consumer Price Index, southern region, to automatically adjust water and sewer rates on an annual basis and based on the cost of living. The ordinance would also set the new rate for the first 1,000 gallons of water $13.29, the next 19,000 gallons $11.44, the next 30,000 gallons $10.06, the next 50,000 $9.15, the next 400,000 gallons $8.24 and over 500,000 $7.33, the Water Crisis surcharge $.55. The proposed sewer charges would be 1,000 gallons for $8.95. Hedges said the new language was underlined stating on an annual basis beginning in February, 2010, the city clerk shall consult the US Dept of Labor Bureau of Statistics, South Region Consumer Price Index, (cities of) 50,000 or less. The CPI at December of the previous year shall be used to adjust water and sewer rates based on a cost of living increase or decrease listed therein. The city clerk shall automatically adjust the water and sewer rates based on the December index to be effective at March 1^st of the current year.

 

Jones said he was totally for the council not sitting back and totally absorbing something we cannot afford to. He said he was all for the ordinance and would make the motion soon but he hoped the council would look at the $65,000 and leave it on the table if we go with the 4.3% COLA instead of the 5.9%. Jones said the difference in the two for the consumer was $1 a month for a 3,000 gallon a month user. He said he hated to see the council ? money for things such as Streetscape, finding lost water, etc; to be that close and worry that much about $1 a month going to the consumer when we have already made preparations to take care of the people that are 65 and older by going from $10 to $15 a month allowance for them.

 

Jones moved council pass Ordinance 2010-01.

 

There was no second to Jones’ motion.

 

The mayor declared the issue dead.

 

Next on the agenda was second reading of Ordinance 2010-02, amending Ordinance 2002-11, sanitary sewer system mandatory hook-up guidelines sponsored by Jack Whipple. Hedges read the heading of the ordinance concerning the use of municipal sanitary sewage and collection system. The ordinance limited the mandatory sewer hook-up only when the gravity feed sewer is on the same side of the street and within 100’ of the water/ratepayers property line.

 

The mayor reminded the council the ordinance had to be approved by the state before it could be fully approved and he also reserves the opportunity to veto it as well.

 

The mayor asked for a motion to approve Ordinance 2010-02.

 

Whipple moved, seconded by Davenport, to pass Ordinance 2010-02, upon its second reading.

 

The mayor asked for any further discussion or questions; being none he asked for roll call. The motion passed with Davenport, Bell, Whipple, Nash, Jones and McPherson voting yes.

 

Next on the agenda was new business. Council man Jimmy Davenport had a proposal to change the council meeting time. Davenport asked the council to consider changing the meeting time to five o’clock in the afternoon instead of six o’clock. Davenport said most employees get off at five o’clock and then they have to stay over until six o’clock for the meetings. He just thought it would be in everybody’s best interest all the way around. If it would conflict with any council’s work schedule we might look at 5:15pm. He said it was open for discussion.

 

Davenport made a motion that council meetings be started at five o’clock, seconded by Nash.

 

The mayor asked for discussion on the motion. There was none.

 

Roll call on Davenport’s motion was unanimous.

 

McPherson said he would like to make a comment on this (Ordinance 2010-01). He asked council when the next budget was up to think about what was going on. He told the mayor he knew it was hard to fix but the city loses about 10 million gallons of water a month to leak loss and if we can just cut that by $1 million dollars, at the rate we are charging the customers, we have absorbed that increase. He said it was about $12-$13,000 would be what we have absorbed. McPherson said he knew when the numbers hit in June it was going to hit them in the face like a ton of bricks but at least maybe we can work through it from March until June. Maybe if we just can’t make the numbers work at all then council is going to have some decisions to make but I just want to try to, I haven’t had anybody tell me they wanted to support this motion. McPherson said he thought if the council did everything possible, and they were trying because they have bought some new equipment, there is a possibility we can reduce our leak loss by one million gallons and we will be able to absorb some of that.

 

The mayor asked if there was a reason to go into executive session; there was none.

 

Douglas Daech said he agreed with McPherson that if we solved some of the leak problems maybe it wouldn’t hit the public as hard and we could look at it then.

 

Davenport told those assembled he knew there had been those praying for his family and wanted to let everyone know his grandchild had come off of life support today.

 

McPherson moved, seconded by Davenport, to adjourn the meeting. The motion passed unanimously.

 

 

 

ATTEST:

 

 

____________________________                                                     ___________________________

City Clerk                                                                                                             Mayor