The City Council for the City of Crossville, Tennessee met in regular session on Tuesday, November 8, 2011, at Crossville City Hall.

 

 

Roll Call.

Present: Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt, Councilman Earl Dean, Councilman George Marlow, Councilman Boyd Wyatt, Sr.  Others present were City Manager Bruce Wyatt, City Attorney Kenneth Chadwell, City Clerk Sally Oglesby, David Beaty, Jerry Garrison, Mark Rosser, Tim Chesson, Martha Ballard, Arlene Hunt, Jeff Kerley, James Perry, Mark Fox, Joe Miller, Nolan McClain, Maggie McClain, Julie McClain, Steve Powell, Savana Pugh, Tonya Hinch, Brandon Breeding, Patricia Evans, Clark Annis, Kaylee Van Trump, Kim Deck, Jim Young, Sandy Gruber, Chris South, Fred Houston, Tony Perry, Terri Bond, Rolf Weeks, Katie Hagan, Beth Alexander, Robert Safdie, Darlene Barnwell, Fred Houston, Emily Mills, Jacob Stone, Amber Smithson, Lou Morrison, Aidan Morrison, Jacob Simmons, Margie Buxbaum, Billy Loggins, Zachary Grant, Mikayla Rivera, Brad Fox, Jeremy Noble, and William Pekoe.

 

 

            Mayor J. H. Graham, III was present and presiding.  He called the meeting to order at 6:00 p.m.  The invocation was given by Tim Chesson of the Faith Worship Center.  The Pledge of Allegiance was led by Mayor Graham.

 

 

ITEM #1 – PROCLAMATIONS/PRESENTATIONS

 

a)    Student of the Month – Nolan McClain for “manners”

b)    Mayor’s Green Award – Veolia

c)    Family Literacy Day – November 1

d)    National American Indian Heritage Month

 

 

ITEM #2 – CONSENT AGENDA

 

            A motion was made by Mayor Pro-Tem Danny Wyatt, seconded by Councilman Earl Dean, that all items on the consent agenda be approved as follows:

a.    Approval of minutes (10/11, 10/20, 10/24)

b.    2nd Reading of ordinance reducing the speed limit on Village Lane

c.    Approval of temporary street closings for Veterans Day

d.    Approval to contract with Napier Media Services for production of annual report at a cost of $9,850.90

Vote: Motion carried by unanimous roll call vote (summary: Yes = 5).  Yes: Councilman Boyd Wyatt, Sr., Councilman Earl Dean, Councilman George Marlow, Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt.

 

 

ITEM #3 – BIDS/PURCHASES

 

a.    Waterline extensions – Cumberland Cove Phase III - Bids were received on September 13 to construct 12” waterlines at the pump station on Hwy. 127N and 4” lines on Pioneer Dr., Long Rd., Nichols Rd., and Thompson Rd.  The low bid was Green Brothers Construction in the amount of $77,200 for the base bid for Hwy. 127N and Pioneer Rd.  There was also an add-alternate bid of $82,300 for the waterlines on Long Rd., Nichols Rd., and Thompson Rd. for a total bid of $159,500. 

All of these lines were included in the earlier approved change order with W & O Construction on the Cumberland Cove project, along with a pump station.  Originally, Rural Development indicated that they could not fund the waterlines under the change order since they were not in Cumberland Cove.  However, they have now decided to approve the change order, which would result in a savings of approximately $29,500.  Because the change order was approved at an earlier approval, pending approval by Rural Development, no additional action was required.

 

b.    Health Insurance

      Eleven interested brokers were provided the bid package for the opportunity to submit bids for health insurance for 2012.  Of those eleven, one (1) bid was submitted by Don Hinch and Associates.  Four “no bids” were received from the following companies:  Cigna, United Health Care, Humana and Assurant.

      The option with Blue Cross/Blue Shield recommended for 2012 was the current renewal option with the following change---increase the office co-pay from $30 to $35 and keep all other benefits the same.  The co-pay for the specialist would remain at $50 and the deductible would remain at $1,500 and out-of-pocket maximum would remain at $2,000. 

      City Manager Bruce Wyatt reported that he had reviewed the options and was comfortable with the recommendation.  Mayor Pro-Tem Danny Wyatt suggested an alternate option that would increase the deductible and annual maximum benefit by $500 and increase the co-pay to $35, and not pass the premium increase on to employees.  The Finance Director estimated that this would save the city about $40,000 over the recommended proposal.  Tonya Hinch stated that about 25% of employees normally reach the current $1500 deductible. 

 

            A motion was made by Mayor Pro-Tem Danny Wyatt, seconded by Mayor J. H. Graham, that Option I be accepted with a $2,000 deductible, $2,500 maximum out-of-pocket, raise in the co-pay to $35 and that the premiums not be increased to the employees.  Vote: Motion carried by unanimous roll call vote (summary: Yes = 5).  Yes: Councilman Boyd Wyatt, Sr., Councilman Earl Dean, Councilman George Marlow, Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt.

 

c.    Signal Control Box

The Street Department requested purchase of a signal control box and operation components from Quality Traffic in Nashville.  The amount of the purchase is $5,800.  Quality Traffic is the sole vendor in Tennessee and the materials requested are to replace what was destroyed in a traffic accident at Hwy. 127N and Executive Dr. of Thursday, October 20th.

d.    4 WD Truck – Street Dept. (bid tabulation attached and made a part of these minutes)

      As requested at the last meeting, bids were submitted on the truck and chassis.  The bid specs were for a truck with a utility bed.  Since the old bed can be used, it is not necessary to purchase the bed.  The low bid, meeting specifications, was Mountain View Ford.  However, they also bid the truck and chassis without the bed.  This bid is $330 lower than the state bid.  Acceptance of the bid of Mountain View Ford, without the bed, was recommended at $20,488.  Because this is replacing a truck involved in a wreck, a budget amendment is required.

e.    Radio Read Meters – Catoosa

      Catoosa is under contract to purchase 1,729 meters from Master Meter.  They have 229 remaining to be purchased in this current year at a cost of $50 each and requested approval to purchase the remaining meters.

 

            A motion was made by Councilman Boyd Wyatt, seconded by Councilman Earl Dean and Mayor Pro-Tem Danny Wyatt, that approval be given for:

a)    the purchase of a signal control box and operation components from Quality Traffic;

b)    the bid of Mountain View Ford, without the bed;

c)    first reading of a budget amendment for the truck; and

d)    the purchase of the remaining 229 meters from Master Meter.

Vote: Motion carried by unanimous roll call vote (summary: Yes = 5).  Yes: Councilman Boyd Wyatt, Sr., Councilman Earl Dean, Councilman George Marlow, Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt.

 

 

(At 6:30 p.m., the regular meeting was recessed and the Beer Board convened.)

 

BEER BOARD

 

I-40 Citgo, Inc.

            An application was received for an off-premises beer permit from Chhaya K. Patel dba I-40 Citgo, Inc. located at 31 Executive Dr.  Chief David Beaty gave a clear records check and recommended approval.

 

            A motion was made by Mayor Pro-Tem Danny Wyatt, seconded by Councilman Boyd Wyatt, that an off-premises beer permit be approved for Chhaya K. Patel dba I-40 Citgo, Inc.  Vote: Motion carried by unanimous roll call vote (summary: Yes = 5).  Yes: Councilman Boyd Wyatt, Sr., Councilman Earl Dean, Councilman George Marlow, Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt.

 

(At 6:32 p.m., the Beer Board was adjourned and the regular meeting reconvened.)

 

 

ITEM #4 – MATTERS RELATIVE TO PUBLIC RELATIONS AND MARKETING

 

            Marketing Director Billy Loggins gave an update on the following projects:

 

 

ITEM #5 – MATTERS RELATIVE TO SAFE ROUTES TO SCHOOLS GRANT

 

            Director of Engineering, Tim Begley, provided an update on the project and presented a proposal for surveying for the project.  It was proposed to do option 1 at a cost of $7,200, which surveys the entire length of the project so that all the preliminary work can be completed, even if the entire project may not be constructed at this time.  Approval was requested for $10,000 to allow for the costs for preparation of the easement drawings that may be necessary.

 

            A motion was made by Councilman Boyd Wyatt, seconded by Councilman Earl Dean, that approval be given for a contract with G1 Associates Surveying at a cost not to exceed $10,000 for surveying services.  Vote: Motion carried by unanimous roll call vote (summary: Yes = 5).  Yes: Councilman Boyd Wyatt, Sr., Councilman Earl Dean, Councilman George Marlow, Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt.

 

 

 

ITEM #6 – MATTERS RELATIVE TO INDUSTRIAL DEVELOPMENT

 

BekZon

            City Attorney Kenneth Chadwell reported on the negotiations with BekZon to meet the requirements set forth by the City Council for the $300,000 UDAG loan.  Mr. Mauritzon requested changes to the requirements.  He, specifically, objected to the deposit of $300,000 in a local bank account, reimbursement program for the purchase of the equipment, certifications from the banks on cash and certificates of deposit, and the unqualified letter from a CPA on audited financial statements.  He also requested a draft of the loan documents. 

            Mayor Graham and the City Council indicated that they felt that the requirements of the resolution were not unreasonable in the lending of the money.  Mr. Chadwell could not recommend making any changes to the requirements.  No action was taken by the Council on the requests of BekZon.

            Councilman George Marlow expressed concern about holding the incubator for BekZon and that he felt the City had an obligation to resolve that issue as soon as possible.  Director of the Cumberland Incubator, Robert Safdie, responded that Roane State’s understood the importance of due diligence in checking out the company and holding the incubator was not an issue at this time.

            The City Attorney was instructed to contact Mr. Mauritzon with the Council’s position and concerns.

 

StonePeak

            It was reported that the proposed PILOT resolution has been rejected by StonePeak.  Mayor Graham explained that the original PILOT was started in 2001, but the building was not completed until 2004.  Therefore, they lost three years of savings in the process.  The original PILOT on the building was for $30,000,000, when it actually cost $14,000,000.  The machinery was estimated at $6,000,000, but cost nearly $60,000,000.  Unfortunately, these issues were not brought to the attention of the City and County until now.  It was for these reasons that Mayor Graham recommended to the Council the new PILOT for 15 years and zero taxes.  The City Attorney and City Manager will be brought up to date on the situation and report back to the Council with alternatives.

 

 

ITEM #8 – CITY ATTORNEY’S REPORT

 

            City Attorney Kenneth Chadwell reported that no new lawsuits had been filed in the past month.

 

Options on potential industrial property

            Mr. Chadwell reported that, under the previous City Manager, options were being obtained to build an inventory of property for potential industries.  New City Manager Bruce Wyatt came up with a new concept where the City would just get a license to advertise the property.  A draft of a document to accomplish this is under review by the City Manager.

 

Water Harvesting

            Tim Begley reported that his discussions with Dave Sutton indicate the Tansi POA wants to draw down Lake Tansi around November 15 for dock repairs.  This would tie in with our schedule at Meadow Park Lake and would assist in the drawdown through the new waterline and maintain the level they want.

 

 

ITEM #7 – MATTERS RELATIVE TO MEADOW PARK LAKE DAM

 

            Mayor Graham discussed the next steps with the U.S. Army Corps of Engineers for the Environmental Impact Study.  He recommended approval of a deposit of $47,000 to take care of the work planned for fiscal years 2011 and 2012.

 

            A motion was made by Councilman Boyd Wyatt, seconded by Councilman George Marlow, that approval be given for the deposit of $47,000.  Vote: Motion carried by unanimous roll call vote (summary: Yes = 5).  Yes: Councilman Boyd Wyatt, Sr., Councilman Earl Dean, Councilman George Marlow, Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt.

 

 

ITEM # 9 – CITY MANAGER’S REPORT

 

            City Manager Bruce Wyatt presented the monthly revenue charts on local option sales tax, wholesale beer tax, and wholesale liquor fees.  He also presented reports on building permits, grants, and special projects.  Mr. Wyatt reported that a check had been received from Cumberland Waste Disposal for $5,000 to be used for recreational purposes.  It will be used for the summer youth program next year.

 

            Mr. Wyatt expressed his thanks to Chief Turner for his assistance over the past month.

 

Mayor Graham reported that the Hwy. 127S project is scheduled for bidding in Spring 2012.

 

            In personnel matters, Police Chief Beaty requested a change in classification for Ptl Larry Hamilton from a 26 to a 28 pay grade and his title changed from Master Patrolman to Sergeant.  He is currently in the 90th percentile of pay for the classification 28pay scale; therefore, no pay increase would be necessary.

            A motion was made by Mayor J. H. Graham, III, seconded by Mayor Pro-Tem Danny Wyatt, that Ptl. Larry Hamilton be changed to a 28 pay grade and his title changed to Sergeant at no pay increase.  Vote: Motion carried by unanimous roll call vote (summary: Yes = 5).  Yes: Councilman Boyd Wyatt, Sr., Councilman Earl Dean, Councilman George Marlow, Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt.

 

Mayor Graham mentioned to the Council that an old water tank in the Homestead area is in bad shape and needs to be removed.  The tank is located on the property of a former yardstick factory.  He asked the City Attorney to research the ownership of the tank to see if the City has right-of-way and ownership.  Tony Perry, who lives next to it, said he believes that the City gave it to the County.

 

 

            With no further business, the meeting was adjourned at 7:35 p.m.