The City Council for the City of Crossville, Tennessee met in regular session on Tuesday, January 8, 2008 at Crossville City Hall.

Roll Call.

Present: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr. Absent/Excused: Councilman Carl Duer, M.D. Others present were City Manager Dr. Jack Miller, City Attorney Kenneth Chadwell, City Clerk Sally Oglesby, Finance Director Fred Houston, David E. Beaty, Michael Matthews, Frances Carson, Clark Annis, Bill Brown, Santos Rivera, Ancto Rivera, David Simcox, Corey Legare, Dann Dunham, Charles Daugherty, Frank Drabek, Tom Watkins, Ron Dyer, Robert Taylor, Janice Taylor, Sam Williams, Jim Young, Robert Rice, Clark Annis, Joe Kerley, J. Bruce Lacher, Brian Lowe, Joe Miller, Dewey Peterson, Roger York, Steve Hill, Janice Hamby, Jerry Garrison, Christy Lewis, Mike Turner, Jerry Kerley, Kim R. Smith, Tom Looney, T. C. Miller, Chris Bennett, and John Grossman.

Mayor J. H. Graham, III was present and presiding. The meeting was called to order at 6:00 p.m. The invocation was given by Dewey Peterson of the New Beginnings Fellowship Church. The Young Marines presented the colors and led the Pledge of Allegiance.

ITEM #1 – PRESENTATIONS

a) Student of the Month – The January “Student of the Month” award was presented to Sam Williams for the character trait “honesty”.

b) Veolia Water OPEX Award - Veolia Water recognizes one project in each region that achieves the highest levels of performance each year. The projects are reviewed in the area of safety, environmental compliance, operations, human resources, client relations and corporate initiatives. Crossville has won this award for the second year in a row.

ITEM #2 – CONSENT AGENDA

A motion was made by Councilman Dean, seconded by Councilman Kerley, that all items on the consent agenda be approved as follows:

a) Approval of minutes (12/11/07)

b) 2^nd Reading of Ordinance amending the FY07-08 budget $120,000 for final costs of Hwy 70N waterline (Catoosa)

c) 2^nd Reading of Ordinance amending the FY07-08 budget $32,000 for final costs of Holiday Hills Plant improvements

d) 2^nd Reading of Ordinance amending the FY07-08 budget $22,540 for the purchase of a patrol vehicle

e) 2^nd Reading of Ordinance amending the FY07-08 budget $8,000 for City Hall security system upgrades

f) 2^nd Reading of Ordinance amending the FY07-08 budget $12,500 for Downtown Crossville, Inc. funding

g) 2^nd Reading of Ordinance amending the FY07-08 budget $10,000 for the water tank hill welcome sign

Vote: Motion carried by unanimous roll call vote (summary: Yes = 4).

Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

ITEM #3 – MATTERS RELATIVE TO APPOINTMENT TO LAKE COMMISSION

The term of Earl Dean expires in January. It was recommended that he be re-appointed to serve an additional seven-year term.

A motion was made by Councilman Wyatt, seconded by Councilman Kerley, that Earl Dean be re-appointed to an additional seven-year term on the Lake Commission. Vote: Motion passed (summary: Yes = 3, No = 0, Abstain = 1). Yes: Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Abstain: Councilman Earl Dean; Absent: Councilman Carl Duer, M.D.

ITEM #4 – 1^ST READING OF ORDINANCE CHANGING RED DOG SALOON ROAD TO HOSPITALITY DRIVE

The property owners on Red Dog Saloon Road submitted letters requesting that Red Dog Saloon Road be re-named “Hospitality Drive”.

A motion was made by Councilman Wyatt, seconded by Councilman Dean, that the ordinance changing the name of Red Dog Saloon Road to Hospitality Drive be passed on first reading. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

ITEM #5 – MATTERS RELATIVE TO VIETNAM VETERANS WELCOME HOME REUNION 2008

Dann Dunham, organizer for the reunion, requested approval of the proposed parade route shown on the attached map. The parade to be held March 29, starting at 10:00 a.m., will be between the Cumberland County Complex and Cumberland County High School via Stanley Street and Main Street. The route has been approved by the Chief of Police.

A motion was made by Councilman Wyatt, seconded by Councilman Dean, that the parade route for the Vietnam Veterans Reunion 2008 be approved. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

ITEM #6 – MATTERS RELATIVE TO MASTER PLAN FOR DOWNTOWN REVITALIZATION

Shelia Knight, Sally Oglesby, Frances Carson, Corey Legare, and Carolyn Joswiak received, reviewed, and met with consultants proposing to provide a master plan for the downtown revitalization. Following federal guidelines, the committee interviewed four firms: E G &G, Inc.

Lose & Associates

Gresham Smith and Partners

Hawkins Partners, Inc.

The unanimous first choice was EG&G, Inc. from Akron, Ohio, a firm specializing in downtown revitalizations. They are highly recommended by representatives in McMinnville and Franklin where they were involved in their recent work.

A proposed agreement was presented which would approve Development of the Master Plan at a fee of $49,000. The agreement explained the scope of work and phases of the services provided. Later phases require approval of the Council and could be budgeted in FY08-09.

This project, if constructed, is expected to include major infrastructure work of water and sewer lines that have been underground, without major attention except repairs, since first installed. By resolution of the Council, funds have accumulated that are earmarked specifically for rehabilitation of water and sewer lines. The current balance is $1,130,190.64.

(The Council meeting was recessed at 6:14 p.m. and reconvened at 6:17 p.m.)

John Grossman, President of EG&G, gave a short presentation about his company and the work of their firm. Council, while supportive of the plan, expressed the need to wait until the FY08-09 budget hearings. It was agreed that they would be able to give an indication in April as to whether they would be able to proceed. The matter was deferred to be discussed during FY08-09 budget hearings.

(At 6:49 p.m. the regular meeting was recessed and the Beer Board convened.)

BEER BOARD

Mini Mart

An application for an on-premises beer permit was submitted by Bholabhai N. Patel dba Mini Mart located at 761 Peavine Road. Police Chief David Beaty recommended approval.

A motion was made by Councilman Dean, seconded by Councilman Kerley, that an on-premises beer permit be approved for Bholabhai N. Patel dba Mini Mart. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4).; Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

Anthony’s Grill

An application for an on-premises beer permit was submitted by John Ward dba Anthony’s Grill located at 1230 West Ave., Suite 103. Police Chief David Beaty recommended approval.

A motion was made by Councilman Wyatt, seconded by Councilman Dean, that an on-premises beer permit be approved for Bholabhai N. Patel dba Mini Mart. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

The Barbeque Steakhouse

An application for an on-premises beer permit was submitted by Daniel Loshbough dba The Barbeque Steakhouse located at 287 Hwy. 70E. Police Chief David Beaty recommended approval.

A motion was made by Councilman Dean, seconded by Councilman Kerley, that an on-premises beer permit be approved for Daniel Loshbough dba The Barbeque Steakhouse. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4); Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

(At 6:51 p.m. the Beer Board was adjourned and the regular meeting re-convened.)

ITEM #7 – CITY ATTORNEY’S REPORT

City Attorney Kenneth Chadwell reported that there have been no lawsuits filed during the past month. As he has reviewed the SRO contract, he found that the contract was the same contract that has been used in past years and is the one used state-wide. He expressed no problem with it other than it does not address the future funding previously discussed by the Council. The school board would like the current year contract signed since the funding has remained the same. They understand that the funding for the future years will be different. If signed, the contract will expire June 2008. Dr. Miller stated that since there hasn’t been a contract signed for three years, he saw no reason to sign one now. Mayor Graham asked that it be signed to clear the issue and show our support of the program. It was confirmed by the Council of their intent to reduce the funding in FY08-09 to 50%.

Cumberland Cove contract – A revised draft was presented that has been reviewed by the Cumberland Cove POA. The City will pay all expenses by buying all the supplies, doing all the work, and acquiring easements. The POA will obligate themselves to pay $3,000,000 toward the project. Work would not begin until $1,000,000 is paid and a letter of credit put up for the remaining $2,000,000. The $2,000,000 would be paid in $1,000,000 installments each year. Tap fees at $850 each would be paid by the lot owners as they want to connect to the waterline. The project would include 11 fire hydrants. Jerry Garrison asked that the waterlines be phased in. Councilman Wyatt expressed concerns about the drought and the ability of the City to serve them. He also expressed his displeasure with the financial plan. Dr. Miller stated he thought it would cost about $5,500,000 with $500,000 coming from the Bluffs project. For the remaining funds, 40% would come from a grant and loan and 60% from the POA. With this project, 1,697 lots would be served. Dr. Miller estimated sales of 400,000 gallons per month, based on 5,000 gallons per home. He stated that there are currently about 300-400 residences with 25-30 already tied on to the main line. The project includes approximately 62.5 miles of water line. The City has applied for 25% of the project as a grant from Rural Development. Councilman Wyatt stated that he would like to see a guaranteed number that would tap on to the line. A statement in the draft contract that the City would be under no obligation to do anything until the grant was secured was removed by the POA; however, Mr. Chadwell stated it could be put back in. Mayor Graham suggested that the City could wait to sign an agreement until after we know about the grant/loan. As an update on the current water situation, Dr. Miller reported that the City has 180-200 days left in our water supply right now without any additional rain. Mayor Graham said that he would hand-carry the agreement to Rural Development in Cookeville and report back to the Council on the viability of the application. No further action was taken on the matter.

Charter Cable – Councilman Wyatt observed that the company has gone up on rates, Mayor Graham responded that their rates are controlled by the federal government. He expects it to be a hot topic in the legislature this year.

ITEM #8 – CITY MANAGER’S REPORT

City Manager Dr. Jack Miller presented the monthly revenue charts for local option sales tax and wholesale beer. The sales tax was down slightly from the previous year, but the wholesale beer had increased. He projects the City will be down approximately $600,000 from the budgeted amount for sales tax. The State is also expecting a deficit in sales tax revenue. He reported on the following:

· The spec building is under design. Dr. Miller hasn’t put any pressure on the architect since the Council didn’t indicate they were ready to make the investment.

· Lake levels are up especially at Holiday which is currently down 2’ and Meadow Park down 5’. Mayor Graham reported that he will be meeting again with Lake Tansi in regard to their raw water supply.

· Drought – Mayor Graham stated that he has been asked to lift drought conditions for a short period to allow people to winterize their recreational vehicles before putting them up for the winter. Dr. Miller was asked to draft a plan to lift the restrictions for Jan 15-30 for these circumstances.

· Boyd Wyatt asked Tim Begley to comment about a payroll sheet on a former employee who was paid several thousand dollars in sick pay when he left the City. Mr. Begley responded that he requested it since the employee was not on retirement as are all other City employees.

A motion was made by Councilman Wyatt, seconded by Councilman Dean, that the City Attorney be authorized to contact the former employee and ask for a refund of the money, and if that doesn’t work that the City Manager be liable for the money and he repay it to the City of Crossville. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

Responding to a question from Councilman Dean, Dr. Miller stated that sick leave has been paid in the past for outgoing employees. Councilman Dean stated that he and Councilman Wyatt have been on the Council for a long time and he did not recall it ever happening before or at least he was not made aware of it.

A motion was made by Councilman Wyatt, seconded by Councilman Dean, that if the study by the City Attorney comes back that it was out of order, then Mr. Begley be served with two weeks leave of absence without pay. The motion was withdrawn. Dr. Miller stated that he should take full responsibility for the action and Mr. Begley should not be punished.

A motion was made by Councilman Kerley, seconded by Councilman Wyatt, that the resolution removing the City Manager be adopted. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D. (A copy of the resolution is attached and made a part of these minutes.)

A motion was made by Councilman Kerley, seconded by Councilman Wyatt, that Mike Turner be appointed interim City Manager effective January 9, 2008 until such time as this council appoints a permanent City Manager and that Mr. Turner’s salary be increased by 15% while he is in this position. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

· Property tax freeze – Mayor Graham asked that the Finance Director review the property tax program for the budget process and it’s potential effect on the City.

· Tennessee Sports Alliance meeting representative – Mayor Graham asked that Steve Hill represent him at a meeting scheduled January 16 as he is chairman of the regional planning organization setting road projects in the area and they have a meeting at the same time. This sports alliance is a partnership of all the communities across the state advertising and promoting their sports assets.

· Genesis Road bridge widening project – Mayor Graham stated that Dr. Miller reported to him that the City has never requested this project from TDOT. Traffic signals were requested and denied. Since the new roadway project, TDOT is considering adding a signal on the north side of the intersection.

A motion was made by Mayor Graham, seconded by Councilman Wyatt, that a resolution be written requesting that the State of Tennessee put at their highest priority the Genesis Road widening project. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

· Mayor Graham reported on the sales tax collections since the half-cent sales tax increase in 1999. During that period, $6,729,764 has been collected by the City, which is an increase of $824,053 per year. The City has spent $7,209,375 on transportation projects utilizing these funds.

ITEM #9 – MATTERS RELATIVE TO CROSSVILLE MEMORIAL AIRPORT PROJECTS

a) Grant application for taxi lane and site work for new t-hangar project

b) Amendment to ECE Services contract for t-hangar project

c) Grant application for upgrades to the security system

A memo from Kevin Oakes was distributed outlining the need to re-locate the new t-hangars to a site east of the terminal building. This will result in lower construction costs and more room for future growth. A meeting was held with Rick Hudgens from TDOT-Aeronautics Division on the site change. He supported the change and suggested that grant applications be submitted separately for the taxi lane, site work, and security system upgrades. These grants will be funded using 90/10 state funds. By using the state funds for these portions of the project, the federal 90/10 funds can be maximized for the construction and engineering costs of the hangars themselves. Councilman Wyatt expressed his appreciation for the work that has gone on at the airport since changes were made in the management by Crossville Aero and Tim Begley. He further commented that when they took over, it was in ill repair and a lot of progress has been made. He stated that “things are looking up” at Crossville Memorial Airport. Mayor Graham challenged them to get the Airport of the Year award again like in 2003 and asked for a report to the Council on what it would take to get to that position. The first month they sold 5,190 gallons, followed by 5,583 gallons and 7,525 in November. With the holidays, they sold 4,500 in December.

A motion was made by Councilman Wyatt, seconded by Councilman Kerley, that approval be given for the submittal of grant applications as outlined and that the amendment to ECE Services contract for the t-hangar project be approved. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

ITEM #10 – MATTERS RELATIVE TO UPGRADES FOR HWY. 127N PUMP STATION

Justification was presented for upgrades to the Hwy 127N pump station in the Catoosa district, a cost estimate, and an engineering contract for the engineering and construction of 310 feet of 10” PVC water line, new 6” master meter and pumps, lines, and electric power. The estimated construction cost is $191,125. These pumps are often required to run 24 hours per day to keep up with the demand. TDEC recommends not running them over 19.2 hours per day. To be prepared for the high use summer months, they need to be in service by June 1.

A motion was made by Mayor Graham, seconded by Councilman Dean, that an engineering contract with Stigall Engineering Associates in the amount of $33,810 be approved and a budget amendment be passed on first reading for the upgrade of the Hwy. 127N pump station. Vote: Motion carried by unanimous roll call vote (summary: Yes = 4). Yes: Councilman Earl Dean, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Boyd Wyatt, Sr.; Absent: Councilman Carl Duer, M.D.

With no further business, the meeting was adjourned at 7:42 p.m.