The City Council for the City of Crossville, Tennessee met in regular session on Tuesday, April 12, 2011, at Crossville City Hall.

Roll Call. Present: Councilman Boyd Wyatt, Sr., Councilman Earl Dean, Councilman George Marlow, Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt. Others present were City Manager Curtis Adams, City Attorney Kenneth Chadwell, City Clerk Sally Oglesby, Dewey Peterson, Andy Vaughn, David Beaty, Jim Young, Vince King, Cathy Simpson, Tonya Hinch, Jerry Garrison, Billy Martin, Tim Begley, Chris Bennett, Steve Powell, Scott Christian, Joe Miller, Rebecca Pierson, Sharron Eckert, Fred Houston, Rolf Weeks, Chris Bennett, Darrell Sherrill, John Withers, Lori Withers, Joel Hepburn, Skip Freitag, Lori Neal Freitag, Bill Hess, Betsy Hess, R. G. Cravens, Steve Colvin, Adam Colin, Gene Hall, Tracey Hughes, Chris South, Dr. Mark Fox, Rita Young, Jacob Young, Erin Young, Lilyan Thurman, Faith West, Emily Thurman, Eric Thurman, Kay Thurman, Dennis Gregg, Clark West, Frank Shipley, Clark Annis, Mark Rosser, Jim Morrow, Elaine Morrow, Karli Threet, Mike Turner, Dr. Jon Simpson, Nan Evans Beesley, Carmen Tanner, Margie Buxbaum, Debra Mendenhall, Jerry Kerley, Billy Loggins, and Marlene Potter.

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 Dewey Peterson of the New Beginnings Fellowship. The Young Marines presented the colors and led the Pledge of Allegiance.

ITEM #1 – PRESENTATIONS/PROCLAMATIONS

a) Student of the Month – Mayor Graham presented the award to Lillian Thurman for the character trait “citizenship”.

b) Dr. William Hess – A Distinguished Service Award was presented in recognition of his retirement from the Crossville Tree Board.

c) Citizenship Award – Mary Ann Brown was recognized for her work with the Young Marines.

d) Mayor’s Green Partner – Taco Bell for modeling the value of planting trees at their new location.

e) Downtown events – Weekly Farmers Market, Walking Club – Tonya Hinch discussed the weekly events.

f) Shanks Art Center – Five Cumberland County non-profit arts groups are developing a “Shanks Art Center” in the old warehouse located across from the depot.

ITEM #2 – CONSENT AGENDA

A motion was made by Councilman Earl Dean, seconded by Councilman George Marlow, that all items on the consent agenda as follows:

a) Approval of minutes (3/8, 3/28)

b) 3^rd Reading of Ordinance amending the FY10-11 budget for police vehicle in the amount of $26,000

c) 3^rd Reading of Ordinance amending the FY10-11 budget for drainage improvements in the amount of $45,000

d) 3^rd Reading of Ordinance amending the FY10-11 budget for caboose in the amount of $12,000

e) 1^st Reading of Ordinance amending the FY10-12 budget for purchase of building in the amount of $2,000,000

f) 3^rd Reading of Ordinance annexing 15.63 acres on Lantana Road/Jada Drive

g) Resolution approving a Plan of Services for the annexation of 15.63 acres on Lantana Road/Jada Drive

h) 3^rd Reading of Ordinance annexing 27.17 acres on Hyder Ridge Rd. and E. First Street

i) Resolution approving a Plan of Services for the annexation of 27.17 acres on Hyder Ridge Rd. and E. First Street

j) 3^rd Reading of Ordinance amending § 5-609(19) of the Crossville Municipal Code regarding the sale and disposal of surplus property

k) 3^rd Reading of Ordinance amending § 18-400 et seq. of the Crossville Municipal Code regarding cross connections, auxiliary intakes, etc.

l) Approval of updated street closing needs for Cruise-ins, Paw & Order Dog Lover’s Festival, Taste of Crossville, and Sustainable Farmer’s Market

m) Approval of agreement with Volunteer First Services, LLC for a fiber data line for the raw water line project

n) Approval to host Strategic Development Group, Inc., a professional business site location firm, at a cost of $5,000

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.

In discussion of the following items on the consent agenda:

e) 1^st Reading of Ordinance amending the FY10-12 budget for purchase of building in the amount of $2,000,000 – The budget amendment includes funds of $1,900,000 for the purchase price, $25,000 for the architect, and additional funds to cover utilities, legal fees, and other work and costs prior to year end.

m) Approval of agreement with Volunteer First Services, LLC for a fiber data line for the raw water line project – Tim Begley reported that the cost of $65,000 was included in the contract with W. L. Hailey. This agreement eliminates any future maintenance costs for the City.

ITEM #3 – BIDS/PURCHASES

a) Waterline Materials – Southern Pipe & Supply - $42,052.91. The bid includes the materials necessary to build the waterline to Plateau Christian Church on Bob Tollett Loop and the waterline from Hwy. 68 to Homestead Baptist Church.

A motion was made by Councilman Boyd Wyatt, seconded by Councilman Dean, that the bid of Southern Pipe & Supply for waterline materials be accepted and a budget amendment passed on first reading. 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.

b) Energy Upgrades at Holiday Hills Water Plant – City Clerk - The low bid was Hepburn Construction at $33,475, which is $13,913 over budget.

c) Lighting Retrofits – City Clerk - The low bid was Lynch Electric at $58,080.

d) HVAC Upgrades at current City Hall – City Clerk - The low bid was Action Heating & Cooling at $119,181.

The bids for lighting retrofits and HVAC Upgrades are $38,037 over the amount budgeted. Both bids include work at City Hall, Public Works office, and the Airport Terminal building. A $100,000 grant will be applied to the 3 projects. No match is required.

A motion was made by Councilman Boyd Wyatt, seconded by Councilman Danny Wyatt, that the bid of Hepburn Construction for energy upgrades at Holiday Hills Water Plant be accepted; that the bid of Lynch Electric on lighting retrofits be accepted; that the bid of Action Heating & Cooling for HVAC Upgrades be accepted; and a budget amendment passed on first reading. 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.

e) Undercover Audio Surveillance Equipment – Police – Approval was requested for a purchase from Law Enforcement Associates in the amount of $18,000. This equipment is under a federal bid price GS-07F-0048H. The funds will be paid out of the Drug Fund.

A motion was made by Councilman Earl Dean, seconded by Councilman Danny Wyatt, that the bid of Law Enforcement Associates for undercover audio surveillance equipment be accepted. 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.

f) Ammunition – Police – Approval was requested for a purchase from Craig’s Firearm Supply, Inc. in the amount of $17,281.40. This is under State Bid contract #331 and includes 40,000 rounds of 40 cal. ammo; 5,000 rounds of 40 cal. duty ammo; and 25,000 rounds of 223 cal. ammo.

A motion was made by Councilman George Marlow, seconded by Councilman Boyd Wyatt, that the bid of Craig’s Firearm Supply, Inc. for ammunition be accepted. 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 #4 – MATTERS RELATIVE TO MARKETING AND PUBLIC RELATIONS

Marketing Director Billy Loggins discussed the latest marketing and public relations projects:

• Business Incubator – A trip was made with Dr. Gary Goff, President of Roane State, and Robert Safdie, Director of the Business Incubator, to Chattanooga to visit their business incubator.
• Partnership with TAP for advertising
• City Economic Development Committee – The group is meeting weekly. A map has been put together to show property that is available and handouts to interested industries and businesses are being prepared.
• Recap recent media events:
• Senior Olympics
• Tennessee Senior Men’s Open…Tennessee Women’s Open
• Kohl’s Cup Soccer Event
• City of Crossville/Lake Tansi Two Ball Golf Tournament
• New 30 second Public TV Spot showcasing City of Crossville has just been released.
• Stay & Play Program
• Two golf writers from “wheretogolf.com” are currently visiting our community.

ITEM #5 – MATTERS RELATIVE TO FIRE DEPARTMENT

Dr. Mark Fox, Chief Medical Officer for the Fire Department, spoke to the Council regarding the fire department. He requested a status report on Fire Hall #3 and the projected staffing. Mayor Graham reported that the matter is being discussed in the budget hearings. Councilman Boyd Wyatt said that he was looking at possibly re-designing Fire Hall #3 since the Public Safety building will be turned over to the Fire Department.

A motion was made by Councilman Danny Wyatt, seconded by Mayor J. H. Graham, III, to have the City Manager work on the potential re-design of the building and an expansion of the scope for the architectural design firm. 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 WASTEWATER TREATMENT PLANT PROJECT

Change Order #6 from Southern Constructors in the amount of $18,721 was presented for the following:

1) $4,891 – adding additional yard hydrants and piping to the non-potable water system

2) $7,155 – piping changes required to install new main pumps at the main pump station

3) $4,587 – electrical changes and additions associated with new blowers

4) $2,088 – electrical changes required at the existing main pump station due to damaged controls and wiring issues

The Change Order was recommended by Veolia Water. Funds are available in the contingency fund for construction.

Change Order #7 was also presented in the amount of $37,075, which should be considered a final change order as the project will be completed in May. This change order includes the following:

1) $1,666 – Adding a new potable water system

2) $6,213 – Painting in existing blower building

3) $4,285 – Two new roof mounted blower intake hoods

4) $6,828 – Additional paving eliminated from Phase I

5) $17,585 – Additional paving to widen driveway between final clarifiers

6) $498 – Additional of a new junction box for line reactor

All costs are covered in the contingency funds and the budget.

Councilman Boyd Wyatt stated his concern over the number of change orders and requested that future projects aim toward covering all costs in the initial bid.

A motion was made by Councilman Boyd Wyatt, seconded by Councilman Earl Dean, that Change Orders #6 and #7 with Southern Constructors be approved. 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 #7 – MATTERS RELATIVE TO MEADOW PARK LAKE DAM RENOVATION PROJECT

Since the award of the bid, Consulting Engineer Scott Christian has been working with the contractor to value engineer the bid and bring the costs down with four reductions:

1. $90,000 - eliminating pedestrian bridge which would mean no access to the top of the dam by city personnel or the public

2. $ 2,000 - eliminating straw bales

3. $90,000 - reducing construction staking by contractor and have it supplied by City

4. $23,500 - eliminating handrail off top of dam since the bridge is deleted

These deductions total $205,000 and would bring the contract to a total of $4,277,465.

Councilman Wyatt pointed out that, if we continue with plans to raise the dam, then the bridges would have to be removed, but Mr. Christian stated they would be reusable. The removal of the bridge eliminates any access to control the valves by employees, but City Engineer Tim Begley did not expect that would be a problem.

Mr. Christian pointed out there is a contingency budget of $227,535. Negotiations are on-going on buttress modification with a possibility of $150,000 that could be reduced. Because of the nature of the project, the cost is very fluid because of unknowns in the actual requirements in (1)post-tensioning of the dam to the bedrock; (2) drilling into joints and pumping in grout; (3) construction of buttresses below the dam; and (4) removal of any damaged concrete in the dam. Therefore, it is impossible to be clear as to the quantities of the work to be done. The estimates were conservative which should cause reductions in the final costs. He recommended applying for overrun money in the amount of $600,000. Rural Development has indicated they will approve the request. The money spent on the project will be applied in this order:

$4,000,000 for original loan;

$1,000,000 for original grant,

$500,000 for overrun loan;

$100,000 for overrun grant or loan (if a grant is not awarded).

Mr. Christian reported that the costs for engineering and administering the project will be based on an actual cost basis. This project requires inspection and significant amounts of materials testing.

A motion was made by Councilman Boyd Wyatt, seconded by Councilman Earl Dean, that Mayor Graham be authorized to request an overrun loan/grant in the amount of $600,000 from Rural Development for the dam maintenance project. 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.

As part of the dam renovation project, the boat slips must be relocated as the lake levels change. A bridge is required and is funded as a part of the contract. This portion of the project will be subcontracted to Advantage Docks, the original vendor for the boat slips. A decision on the width of the bridge must be made. The Director of Engineering recommended a width of 4’ or 6’. The cost differential is less than $1,000.

Councilman Dean reported that the matter was discussed by the Lake Commission. They recommended that it be an 8’ bridge; however, concerns were raised by Tim Begley that because of the movement of the boat slips, it could get misaligned at that width. He recommended that it be a maximum of 6’.

A motion was made by Councilman Earl Dean, seconded by Councilman George Marlow, that the width of the bridge be set at 6’. 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 #8 – MATTERS RELATIVE TO INDUSTRIAL PARK ACQUISITION

Mayor Graham presented an opportunity to purchase an existing industrial park to further enhance recruiting opportunities for economic development. City Manager Curtis Adams stated that the competition now is such that land is no longer being sold by communities. Communities need to have access to potential land that can be given to industries in exchange for the new jobs. The property under consideration has 89.11 acres and is being offered for $1,800,000. The appraisal on the property totaled $3,875,700. The owner offered to allow the City to pay 10% per year for 10 years at 3.45%.

Mayor Graham expounded on the property which is located north of I-40 and has been fully developed by the owner, Hatteras Properties, Inc., with water, sewer, street lights, and road. There are 3 or 4 sites for a 100,000 sf building or 7 or 8 sites for a 50,000 sf building.

Kenneth Chadwell reported that if the purchase is financed through a land purchase capital outlay note, state law requires that it must have a level term payout for 10 years or less, and is subject to approval by the Comptroller’s Office. The proposal is owner-financing, where the company would carry the note and provide terms to finance it over a period of time.

A motion was made by Mayor J. H. Graham, III, seconded by Councilman Boyd Wyatt, that the City Council approve the resolution authorizing the issuance, sale, and payment of land purchase capital outlay notes not to exceed $1,800,000, with interest rate at 3.45% and the interchange property capital outlay notes series 2011, and such recommendations as approved by the Comptroller of the Treasury of the State of Tennessee in regard to the financing of the land purchase of 89.11 acres, more or less, from Hatteras Properties, Inc. Vote: Motion passed (summary: Yes = 4, No = 1, Abstain = 0). Yes: Councilman Boyd Wyatt, Sr., Councilman Earl Dean, Councilman George Marlow, Mayor J. H. Graham, III. No: Mayor Pro-Tem Danny R. Wyatt.

Mr. Chadwell pointed out that Hatteras Properties, Inc. is a corporation where three-fourths is an undivided interest and the remaining one-fourth undivided interest is owned by Millard Oakley. If approved, the transfer would be received through two deeds. The first deed would be a gift contribution for acreage in proportion to the amount of the gift. The second would be a warranty deed.

Prior to the vote, Mayor Pro-Tem Danny Wyatt commented that he thought it was an excellent opportunity, but that he could not support it at this time because he preferred to wait until after the budget is finalized. He also mentioned that the map Mr. Adams had prepared shows about 1,900 acres of available property with the same potential. Councilman Earl Dean voiced his support of the purchase. Councilman George Marlow expressed his concern about spending so much money at the same time as trying to balance the budget, but he understands the need for jobs and knows the effect on local businesses when jobs are lost. He expressed the need to create jobs, but also be responsible and protect the citizens from increased taxes. Councilman Boyd Wyatt stated that it is a deal the City can’t pass up and that he supports Mr. Adams’ program for economic development.

Under this proposal, the first payment would be due November 30, 2011. There will be no mortgage on the property. Mr. Chadwell also reported that Mr. Oakley is one of his legal clients; however, he has had no interaction with him on this transaction or its conception and that he is representing the City only in this matter. Because of the financing, he will be engaging the services of Bass Berry & Sims to meet the requirements of the Comptroller’s Office.

Mayor Graham reported that one of his goals is to ask the County for their cooperation and contribution toward the cost of any land that is given. Criteria will be established on the investments and jobs guaranteed to qualify for free land. In the year 2000, there were 19,500 jobs with an unemployment rate of 5%. In the year 2010, we had increased jobs by less than 1,000 and the unemployment rate stood at 10.7%. The current unemployment rate is 12.3%. Retail sales are improving, but the number of jobs has not increased.

ITEM #9 – MATTERS RELATIVE TO WATER PROJECTS

The City has being offered an opportunity to use some funds remaining in the 2010 State Revolving Loan Fund allocation for a waterline project on Main St. A decision must be made very quickly or the funds will be offered to another city. Mayor Graham requested permission to apply for $1,890,000 to assist with needed projects. Of that amount, 20% ($378,000) will be a grant while the remaining will be a loan.

Mayor Graham stated that he still was not comfortable with the amount of grants for the downtown project to proceed with the entire project, but that he is working on a grant from TDOT for paving, an EDA application for $1,300,000, and grant/loans from Rural Development. Councilman Boyd Wyatt stated that he was not comfortable with the amount of grants. Councilman Dean said the City is going to have to dig up the roads to replace the waterlines as they are over 100 years old. Councilman Danny Wyatt questioned the division of the work between the funds. Mayor Graham stated that the above-ground work would be mostly General Fund and the underground work under the Water/Sewer Fund. Councilman Marlow commented that he wanted to make improvements, but is against raising water/sewer rates to do it. Mayor Graham asked that he be allowed to request the money, but turn it back in if we can’t get the additional funds from Rural Development.

A motion was made by Mayor J. H. Graham, seconded by Councilman Danny Wyatt, that additional drinking water funds from the State Revolving Loan Fund be requested in the amount of $1,890,000. Vote: Motion passed (summary: Yes = 3, No = 2, Abstain = 0). Yes: Councilman Earl Dean, Mayor J. H. Graham, III, Mayor Pro-Tem Danny R. Wyatt. No: Councilman Boyd Wyatt, Sr., Councilman George Marlow.

The City Clerk was asked to contact the State Revolving Loan Fund to find out if the City could hold off starting this project long enough to find out about funding from Rural Development.

During the vote, Councilman Boyd stated that his vote reflected the facts that we are not close to getting started on project and that people are having problems paying their water and sewer bills at this time.

ITEM #10 – CITY ATTORNEY’S REPORT

City Attorney Kenneth Chadwell reported that no new lawsuits had been filed in the previous month. The closing on the Regions building is scheduled for April 15.

On the Lantana Road project, approval was requested to settle sewer easements with Clifford Waldo for an additional $5,000.

A motion was made by Mayor J. H. Graham, seconded by Councilman Earl Dean, that the settlement offer with Clifford Waldo be approved. 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.

Lake Tansi property owners’ lawsuit – Mr. Chadwell reported that 91 (about 50%) of the plaintiffs have requested to be removed from the lawsuit. The plaintiffs are also having trouble identifying the property owners that have the potential to be damaged from the withdrawal of the water from the lake.

ITEM #11 – CITY MANAGER’S REPORT

City Manager Curtis Adams presented the monthly revenue reports for local option sales tax, wholesale beer tax, and retail liquor inspection fees. In addition, he presented updates on building permits, current grants, and special projects.

Amphitheatre – The County has offered to lease the amphitheater to the City for $1.00 per year for 5 years. Mr. Adams stated that he felt the City is better able to operate it with the current staff of the Palace. Spirit Broadband is agreeable to the transfer. Vince King, owner of Spirit Broadband, is under contract with the County and has provided all the funds to build the amphitheatre and has naming rights for five years with an additional renewal of 3 years. He spoke on the potential for the facility and stated that he had drafted some ground rules for use of the facility to be considered by the City. It was recommended that the Palace Advisory Board be expanded to also govern the facility.

A motion was made by Councilman Boyd Wyatt, seconded by Councilman Earl Dean, that the City approve the offer to lease the amphitheatre from the County. 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.

Requests for Qualifications were received from 9 engineering firms to provide engineering services for improvements at the water filtration plants. Each Councilmember was asked to review the RFQ’s and narrow them to 3 firms for interviews by the Council.

Firefighter Jeff Woody has completed all the requirements for and attained his State of Tennessee Medical certification as a Paramedic. It is the City’s policy that the Paramedic certification receives a 10% pay increase, effective with the pay period beginning March 13, 2011.

A motion was made by Mayor J. H. Graham, seconded by Councilman Dean, that a 10% pay increase be approved for Jeff Woody. 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.

Jim Young introduced his son Jacob, president of SMHS Rocket Club, who competed with 600 teams across the United States in the Team America Rocketry Challenge. The team qualified as one of the top 100 teams and will be going to the national competition outside of Washington DC in mid-May. The top 10 teams in the finals share in $60,000 of scholarship money and the number one team earns an all expense paid trip to the Paris Airshow to compete with European rocket teams. They are raising funds to cover the cost of the trip to Washington DC.

A motion was made by Mayor J. H. Graham, II, seconded by Councilman Boyd Wyatt, that $750 be provided to the team to help cover their expenses. 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.

With no further business, the meeting was adjourned at 8:20 p.m.