The Flemingsburg City Council held their regular monthly meeting Monday, April 10, 2006 at 7:00 p.m. in the City Annex. Council members present were Marty Voiers, Carl Haight, Nancy Suit, Georgianna Sparks, Meredith Story, and Scott Manning. Mayor Louie K. Flanery presided.

Councilwoman Suit led the Pledge of Allegiance. Minutes of the previous meeting were presented. The following corrections were noted: Page 1, Paragraph 4: Councilman Story moved to set the mayor’s salary at $18,000 for the next term and council salaries at $4,500. Councilman Manning moved to set the mayor’s salary at $15,000 and the council’s salary at $3,900; Page 2, Paragraph 7: Council discussed adding a lesser fee for natural gas service on but with no usage. Councilwoman Suit moved to approve the minutes with the noted corrections. Councilman Manning seconded the motion. All were in favor.

Brad Gray addressed Council regarding the Fleming County Access Channel. A year to date income statement was presented for Council’s review. Gray offered to report to Council every quarter on the activities of the Cable Board. He stated that most of the operating expense incurred was for payroll. New equipment had been purchased including seven new cameras. Dave Gray, who left the Cable Board in April of 2005, had been hard to replace. They currently have two full-time employees who work twenty hours per week; and are able to operate a full function production studio on the cable franchise fees received from the county, city and Ewing plus the extra funds from advertising. The Board is working on a new program, which Kent Grannis has agreed to host. Fleming County Sheriff Jerry Wagner will be the first guest. Gray stated that it was difficult to find guests who would appear free of charge, noting that sometimes five hours of taping was required to get enough usable footage for one program. A forum prior to the election is also being planned. Gray offered to record the city council meetings noting that they could be live or tape-delayed. Gray expressed a need to fill board vacancies and stated that the by-laws require that a council member serve on the cable board. Councilman Manning had served in the past and agreed to serve again. Gray also stated that Shirley Brewer had not officially resigned, but had not been attending meetings and said to fill her position. Current board members include Ron Thomas, Mike Duffy, Mary Honaker, Garrett Honaker, Larraine Bierley, Alisha Gray, and Brad Gray. Former member Dave Gray will be returning to the board next month. Gray stated that the original by-laws called for seven members from the city and four from the county.

Charlie Brown and Doug Mitchell appeared before council regarding damage to the water heaters at the nursing home. Brown stated that he had replaced 36 heating elements since June 6, 2005 at a cost of $10.00 each. He had spent over $1,000 on parts and Mitchell’s labor to replace the units took fourteen hours. He also replaced an icemaker and coffee maker; and extra expenses had been incurred in cleaning the silverware and dishes due to the water condition. Mr. Brown stressed that he knew the problem was not the City’s, but he bought water from the City and they must supply him with usable water. Mayor Flanery stated that the GFCRWC had started a new treatment a week ago. It was determined that heat influenced the reaction of the chemical used to treat the water. The hotter the water the worse the reaction. Brown noted that the chemical is creating a build up on the elements causing them to short out. Every time an element blows it shoots a fuse, which cost $14 to replace. Mitchell has worked at the nursing home for six years and had never had to replace a heating element until last year after the City started buying water from the GFCRWC. Brown stated he was unsure if his water heaters had been damaged, but replacement costs would be $4,100 each plus installation by a licensed plumber. Councilman Story suggested increasing capacity at the city plant to supply the nursing home and cut off the water from the GFCRWC. Brown asked that his water be blended or rerouted until the problem is resolved, but stressed he did not want others to incur the same problems he had experienced.

Utilities Superintendent Kenny Dearing stated that it could be six weeks to two months before there’s any notable improvement; and it could take a year before the water was back to normal. Water from the wells has to keep running in order for the phosphate to work and the lines would have to have a hard flush periodically during the treatment process. The next meeting with the GFCRWC is May 10, 2006.

City Clerk Joy Roark presented the second reading of Ordinance No. 4-06-1 regarding compensation for elected officers. Mayor Flanery stressed that the salary was still low for the amount of hours involved, noting that it would not affect him or the current council but would affect those taking office in January 2007. Councilman Haight moved to approve. Councilman Manning seconded the motion. A roll call was given with all voting in favor.

City Clerk Joy Roark presented the second reading of Ordinance No. 4-06-2 regarding the codes enforcement board. Councilman Story moved to approve. Councilwoman Sparks seconded the motion. A roll call was given with all voting in favor.

Clean up week was set for the week of June 12^th.

Mayor Flanery stated that the City had not been approached regarding Project Prom, but asked Council’s opinion regarding a donation. Council agreed that it was important to support school projects, but left the amount to the Mayor’s discretion based on the amount budgeted for such matters.

City Clerk Joy Roark presented Resolution No. 06-04-1 recognizing James Walter Boyd’s years of service to the city. Councilman Manning moved to adopt this resolution. Councilwoman Suit seconded the motion. All were in favor.

Roark presented two proposals for the 2006 audit. Brenda Morgan and Jody Franklin of West Liberty submitted a fee of $9,000 or, if a single audit was performed, an additional $1,000 per major program audited. James Smith of Maysville submitted a fee of $8,500. Councilman Haight questioned the need to change auditors. Robert Montgomery had performed the audit the past two years. Roark stated that it was a good practice to change auditors every few years. Mr. Smith had audited the city in prior years and had done a satisfactory job. Councilman Story moved to employ Mr. Smith for the 2006 audit. Councilwoman Suit seconded the motion. Council members Voiers, Suit, Sparks, Story, and Manning voted in favor. Councilman Haight voted against. Motion carried.

Mayor Flanery presented the lone black top bid of $48.95/ton submitted by H.G. Mays. Flanery noted the price was up considerably from last year’s contract. Public Works Superintendent Jim Compton recommended talking with H.G. Mays before accepting their bid. An additional fee may be added for hauling which, in the past, had been $2/ton. Councilwoman Sparks suggested that Compton and the mayor negotiate with this company and bring their recommendation back to council.

Councilman Voiers questioned the plans for the old Kozy Nook and Helphenstine properties. Councilman Story suggested the Kozy Nook building be torn down for a park area. Mayor Flanery said there were no definite plans, but both buildings needed a lot of work to be useful space. Possibly the Helphenstine property could be used by the museum. For the time being there are plans to clean up the outer appearance of both buildings.

Councilman Story reported on behalf of the Finance committee. Ken Magyar of Gasco had met with the committee regarding purchasing gas for winter storage in April and May. He anticipated the price to be in the $6-7 range. Gas could be held in storage for consumption during January through March when market prices are normally much higher. Estimated costs to fill storage capacity would be $440,000. The city has sufficient cash reserves and a line of credit to cover this expense. Councilman Voiers moved to accept the committee’s recommendation to establish a line of credit for the purpose of purchasing natural gas to fill the winter storage for the coming year. Councilman Story seconded the motion. All were in favor.

Councilman Story stated that the committee had also reviewed health insurance benefits for the upcoming year. The city received a 31% increase in the renewal rates with United Healthcare. Story noted that the city’s retirement contribution would also be increasing substantially; and, although the budget has not been presented yet, the committee concurs with a 3% pool for employee pay increases. Giving due consideration to these increases and the impact on the city’s budget the committee recommended that the city offer only the basic plan and continue to pay 100% of the single coverage but reduce the city’s contribution to 32 ½% for additional coverage. Story stated that accepting this plan would still increase the city’s cost by $28,000 per year. The city currently has a basic and an upgrade plan. The city contributes 100% on the basic single plan and 80% on the upgrade plus 65% of additional for either plan. Councilwoman Sparks noted that the committee had four plans to consider and this plan offered the second best coverage. Story stated that increasing health insurance costs were a concern everywhere and presented articles about other cities comparable to Flemingsburg who were taking similar action. The committee also recommended that the city eliminate any contribution to the additional family coverage after this year. Councilman Story moved to adopt the recommended plan. Councilwoman Suit seconded the motion. All were in favor.

Councilwoman Suit requested that the records show she is no longer a member of Finance Committee.

Councilman Story stated that the Finance committee would be looking at a retire/rehire policy and asked council to consider what direction they would want to take.

Mary Jo Litton reported on behalf of the Chamber and EDC. Information on the county assessment should be available soon. Litton encouraged council to keep the fronts of the Kozy Nook and Helphenstine buildings. Phase II of the museum project is under way. The grand opening is scheduled for August 26^th.

Councilman Voiers questioned the status of the Schatz property on E. Water St. He expressed concern that the property was deteriorating and would eventually fall into the creek. Codes Enforcement Officer Gene Schwartz stated that he had notified the owner three times, but had received no response. Mayor Flanery stated that the owner had been seriously injured in a wreck several months ago and the property was now for sale. Schwartz will continue to work on getting the property cleaned up.

Police Chief Danny Carpenter presented an application for the highway safety grant for the upcoming budget year. Carpenter reported that there had been a lot of arrests for DUI and drugs and some asset forfeitures due to extra patrolling funded by this grant. Within two months the grant funds will be awarded for next year. Councilman Voiers stated that there needed to be more public awareness about the grant. Councilman Voiers moved to authorize Chief Carpenter to apply for the highway safety grant. Councilman Manning seconded the motion. All were in favor.

Councilman Voiers suggested having a ribbon cutting for the new bridge behind the Strawberry Methodist Church to recognize one of the positive things done by the City. A speed limit sign was requested for E. Electric Ave and Railroad St.

Councilman Story questioned the new water hook-up on Kendall Lane. Utilities Superintendent Kenny Dearing stated he ran about a three-foot line. There was minimal cost to the City. Councilman Voiers asked if the owner should have come before Council for permission to hook onto the city’s line. Mayor Flanery stated that Council agreed some time ago that if the hook-up was reasonable and the owner agreed to annexation it was okay to install the hook-up without council consent. Voiers stated that the City needed to tighten down on extending services without consent to annexation.

Councilman Voiers questioned the progress on Industrial Park II. Mayor Flanery stated that he was making progress with the help of the Industrial Authority.

Councilman Haight questioned if GFCRWC had paid the debt on the Maysville water line. Mayor Flanery confirmed that the City had been paid in full. The funds were invested in a CD. Haight also questioned the status of Foundation Way and grant funds for sidewalk improvements. Mayor Flanery stated that the street would be turned back over to the hospital until after construction of the new facility was completed. The City will determine then whether to accept the street again. The application for grant funds has been submitted, but the City has not received a response.

Councilman Voiers asked if there had been any movement on a skateboard park. Mayor Flanery stated that costs for a park were pretty scary, but the City still plans to do something. Voiers questioned the progress on widening Crest Ave. Gene Schwartz stated that Tommy Carpenter was still working on the surveys, but can’t get the lots to meet up when comparing old surveys to new ones. Voiers asked if the property needed could be claimed as eminent domain. There was also discussion about widening the entrance to Dorothy St. Voiers questioned if there had been any progress on an ordinance regarding pornography. Gene Schwartz stated that the city and county planning commission were combining. Voiers suggested that the council could work with the planning commission to create an ordinance for the City. Councilwoman Sparks, Councilman Voiers, and Councilman Manning volunteered to serve on a committee to work with the planning commission on this matter.

There being no further business Councilman Manning moved to adjourn at 9:55 p.m. Councilman Haight seconded the motion. All were in favor.

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Louie K. Flanery, Mayor

ATTESTED:

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Joy Story Roark, CKMC

Date Approved: ___________________