WHAT YOU NEED NOW - CONTENT UPDATED THROUGH THE DAY
June 11, 2005
S Y N O P S I S
REGULAR MEETING
HUNTINGTON CITY COUNCIL
May 23, 2005
The May 23, 2005 Huntington City Council meeting convened at 7:30 p.m. with Chairman Insco presiding.
(1 & 2) Invocation & Pledge:
Councilperson Jones gave the invocation and Council Chairman Insco led the Pledge of Allegiance to the Flag.
Council Present: Adkins, Caserta, Farrell, Insco, Jones, Kent, Loudermilk, Neely, Ritter. Absent: Black, Jackson
Also present were Director of Administration & Finance Jack Thornburgh, City Attorney Scott McClure, Finance Director Bob Wilhelm, Don Kleppe of Development & Planning, Interim Director of Development & Planning Charles Holley, and City Clerk Barbara Meadows.
(3) Synopsis:
Councilman Kent moved for the approval of the synopsis of the May 9, 2005 City Council meeting, seconded by Councilperson Neely. Upon voice vote duly taken, the synopsis was approved unanimously (9 yeas, 0 nay, 2 absent-Black, Jackson).
(4) Reports of the Mayor:
Finance Director Bob Wilhelm distributed financial information for discussion, a copy of which will be kept in the council meeting file. Year to date collections of municipal and refuse fees totals $109,073.82. General fund balance estimates for 4/30/05 is $-211,548. Revenues are up over last year. B&O revenues have surpassed the estimated income.
(5) 2nd Reading of an Ordinance re: AN ORDINANCE OF COUNCIL AMENDING, MODIFYING AND RE-ENACTING ARTICLE 787 OF THE CODIFIED ORDINANCES OF THE CITY OF HUNTINGTON, AS REVISED, CONCERNING BUSINESS AND OCCUPATION TAX
Councilman Kent moved for adoption, 2nd by Councilman Caserta.
Councilman Kent explained this would approve changes as recommended by the firm hired to perform a B&O tax audit for the city. One change was with regard to the constitutional provisions on interstate commerce.
Director of Administration & Finance noted that the ordinance also provides for the collection of interest on delinquent accounts.
Upon roll call vote duly taken, the ordinance was adopted (9 yeas, 0 nay, 2 absent-Black, Jackson).
(6) 2nd Reading of an Ordinance re: AN ORDINANCE OF COUNCIL AMENDING, MODIFYING AND RE-ENACTING ARTICLE 769 OF THE CODIFIED ORDINANCES OF THE CITY OF HUNTINGTON, AS REVISED, CONCERNING HOTEL OCCUPANCY TAX
Councilman Kent withdrew his sponsorship of this item to have it withdrawn from the agenda. Councilman Ritter offered to sponsor the ordinance.
Councilman Ritter moved for adoption, 2nd by Councilman Caserta.
Mr. Thornburgh explained this would allow for a 3% increase in the municipal motel/hotel tax. It is felt that if adopted this would give unfair advantage to hotels/motels located outside the city.
Councilman Ritter pointed out that there are only two hotels located within the city. He does not feel that people inquire about tax rates when booking hotel rooms. Part of the funds from this tax are dedicated for the Convention & Visitor's Bureau, and being a member of this bureau he had been asked to support the ordinance.
Councilman Caserta did not feel this tax would give an unfair advantage to hotels outside the city. It is worth the 3% to be downtown, close to activities. The city needs all revenue that is available.
Councilman Kent withdrew sponsorship because the city would only receive a maximum of about $50,000 to be applied to the debt on the civic arena, and he did not feel it worth the problems it would cause. Withdrawal would allow it to come back when and if such legislation is allowed at the county level also.
Councilperson Neely asked Mr. Thornburgh if he knew the motel tax rates for surrounding states. Mr. Thornburgh did not have that information.
Councilperson Jones asked how soon this would be enacted on the county level. Chairman Insco said that was not anticipated currently. Councilman Kent pointed out that Governor Manchin proposed a bill that would have allowed counties to increase the tax also, and that bill did not get out of its first committee and had very strong opposition from county officials.
Phil Cline, 11 Parkway Drive, felt this tax increase would be unfair to city hotels because motels outside city limits would not have the same increase. It is unusual for hotels within close proximity of one another to have different tax rates. He feels that the use of these funds to pay a portion of the civic arena debt would do nothing for the hotels. Most civic arena acts do not stay in hotels as they generally leave immediately following the show or have tour buses on which they stay. The Radisson Hotel currently has plans to convert the top two floors to condominiums and will do the same with the rest if this tax passes. He does not support the ordinance.
Raben Crisel, 67 Grand Blvd., spoke in opposition of the ordinance.
Ray Browning, 146 Gallaher St., supports adoption of the ordinance.
D. Everett Fullerton, 981 Madison Ave., asked when this could be brought back before council if it was voted down. Chairman Insco stated it would be allowed back before council in six months. Mr. Fullerton supports failure of the ordinance.
Councilperson Neely asked if the civic arena has full-service banquet facilities. Elliott Murnick, General Manager of the Big Sandy Superstore Arena, stated the facility has full banquet facilities. He pointed out that the arena does bring persons into the downtown area that utilize many of the businesses, including the hotels.
Councilman Kent, not wanting this to die for even six months, moved to table; 2nd by Councilman Adkins. Upon roll call vote duly taken, the motion to table failed (2 yeas-Kent, Adkins; 7 nays, 2 absent-Black, Jackson).
There being no further discussion, Chairman Insco called for the vote on the ordinance.
Upon roll call vote duly taken, the ordinance failed (3 yeas-Neely, Ritter, Caserta; 6 nays; 2 absent-Jackson, Black).
(7) 2nd Reading of an Ordinance re: AN ORDINANCE TO AMEND THE ZONING ORDINANCE OF THE CITY OF HUNTINGTON, WEST VIRGINIA, 1998, AND THE ZONE MAP ATTACHED THERETO AS A PART THEREOF, BY ZONING TO C-1 NEIGHBORHOOD COMMERCIAL FROM R-2 RESIDENTIAL THE PROPERTIES LOCATED ON CABELL COUNTY TAX MAP 46, PARCEL NUMBERS 515-521, 526, 527, 527.1, 529-531 AND 533-559
Councilperson Neely moved to adopt, 2nd by Councilman Caserta.
Don Kleppe, Planning & Development, explained this received a favorable recommendation from the Planning Commission. This is for the development of a perinatal clinic on Cabell Huntington Hospital property.
D. Everett Fullerton stated this had also been before the Board of Zoning Appeals and received favorable action.
Councilperson Jones said that the Fairfield West community was grateful that Hospital representatives met with them to discuss this development.
Upon roll call vote duly taken, the ordinance was adopted unanimously (9 yeas, 0 nay, 2 absent-Black, Jackson).
(8) 2nd Reading of an Ordinance re: AN ORDINANCE TO AMEND THE ZONING ORDINANCE OF THE CITY OF HUNTINGTON, WEST VIRGINIA, 1998, AND THE ZONE MAP ATTACHED THERETO AS A PART THEREOF, BY ZONING TO C-1 NEIGHBORHOOD COMMERCIAL FROM R-2 RESIDENTIAL THE PROPERTY LOCATED ON THE SOUTHEAST CORNER OF THE INTERSECTION OF 19th STREET W. AND JEFFERSON AVENUE CC TAX MAP 40, PARCEL 434
Councilperson Loudermilk moved to adopt, 2nd by Councilperson Neely.
Don Kleppe explained that the IBEW Local 17 petitioned the Planning Commission to rezone property on the southeast corner of Jefferson Avenue and 19th Street West to install a parking lot. A large maple tree will be preserved. With the property zoned R-2, zoning regulations do not allow for development of a parking lot because the property is not adjacent to or abutting a C-1 Neighborhood zone. Therefore, changing the zoning was the appropriate action if the installation of a parking facility was intended. This would still need to go before the Board of Zoning Appeals with regard to the design of the parking lot.
D. Everett Fullerton spoke in opposition of the ordinance. This is a small lot in the block that would be zoned as C-1. There would be problems with parking on such a small lot.
Dale Simmons, Heritage Park, IBEW Building Committee chairman, explained that some parallel parking spaces would likely be included in the lot design so that vehicles would not hang over the sidewalk. They are going to install a privacy fence along the border of the vacant lot adjacent to this. The parking lot would also be beneficial to a church in the neighborhood.
Councilman Kent asked if the lot would be paved. Mr. Simmons said it would be.
Councilman Farrell asked if the residents in the neighborhood were given proper notice of this rezoning. Mr. Kleppe said this was done and no adverse comments were received.
Upon roll call vote duly taken, the ordinance was adopted unanimously (9 yeas, 0 nay, 2 absent-Black, Jackson).
(9) Resolution re: A RESOLUTION OF COUNCIL DECLARING THE CITY'S INTENT TO ESTABLISH A MUNICIPAL OCCUPATION TAX
Councilman Kent moved to adopt, 2nd by Councilperson Neely.
Councilman Kent pointed out this would not be legally binding if adopted. The purpose is to ascertain Council's intent to go forward with enactment of a municipal occupation tax. The city is over $100 million behind on both the police and fire pension funds. If changes to these pension funds are not made soon, the funds could bankrupt the city within 8-10 years. It will take considerable time and some expense to work out the parameters of this tax and the bonding of the pension funds, and it would be unwise to do so if the municipal occupation tax were not ultimately adopted.
Councilman Farrell asked the amount of expenses anticipated to be incurred. Councilman Kent was unsure. Thus far there have been volunteers helping. An audit expense is anticipated through the state treasurer's office.
For informational purposes, Mr. Farrell asked what a person's tax would be if their adjusted gross income were $40,000. Dr. Kent answered, $400, which is compared with the $102 for the current collection of the City Service Fee.Chairman Insco stated he would not vote for the municipal occupation tax if an end date were not set for the City Service Fee.
Mr. Farrell asked if there would be exceptions for low-income earners. Dr. Kent stated there was an exemption for $10,000. Mr. Farrell asked if and when the City Service Fee would be eliminated. Dr. Kent said that was not required by the law but seemed to be Council's desire. There would likely be some overlap on the fees; but it is not intended to maintain the City Service Fee.
Mr. Farrell asked if the city had computer programs to track collections of this tax, and would there be additional expenses for such. Mr. Thornburgh stated the administration was working on setting up such a program. There would be additional costs for this that would be included in the consultant fees currently budgeted at $80,000.
Mr. Farrell asked if this would be collectible quarterly. He was concerned whether the city could debt service the bond. Dr. Kent said the bond would be taxable. Mr. Farrell felt that $8 to $10 million would need generated to service this. Dr. Kent hoped to have more exact figures at a Finance Committee Meeting scheduled for May 25. There are many questions needing answered as this is put together.
Councilman Farrell pointed out that this would be a significant increase over the amount currently collected from the City Service Fee. He felt it would be difficult to give a specific end date for the City Service Fee. Also, there will be much work ahead with regard to calculating the amounts needed to fund the new pension plans.
Councilman Caserta opposed any increases to the City Service Fee because he felt it to be unfair and would not enable a permanent solution to the city's financial difficulties. But this, he felt, would give the city the opportunity to move forward.
Karen Cremeans, 1257 Georgia Ave., Milton, works in the city and expressed her opposition to the municipal occupation tax as it would create a hardship on families. This could discourage new businesses opening in Huntington.
John Vance, 1328 9th Ave., asked what difference there would be between paying this bond and new pensions versus the old pensions. Chairman Insco pointed out that the municipal occupation tax would be strictly directed to the bond payments and would not come from the general fund. Councilman Kent pointed out that bonding the current pension funds would cap them. Chairman Insco stated that the city currently pays about $7 million of the current budgeted funds to the pension funds, which amount will increase yearly if this is not adopted. Bonding will enable that amount to stay the same.
Lt. Alan Rohrig, HPD, questioned why the state would be voting on a similar issue regarding bonding the teachers' pension fund and the citizens of Huntington would not be allowed to vote on this municipal occupation tax.
Councilman Kent stated that the state bonds are general obligation bonds, which the State Constitution requires must have a plebiscite. This is not a general revenue bond because it has a designated source of revenue and therefore does not require a vote.Upon roll call vote duly taken, the resolution was adopted (8 yeas; 1 nay-Loudermilk; 2 absent-Black, Jackson).
(10) Resolution re: A RESOLUTION OF COUNCIL AUTHORIZING THE MAYOR TO CLOSE THE EXISTING POLICEMEN'S PENSION FUND AND FIREMAN'S PENSION FUND
Councilman Kent moved to adopt, 2nd by Councilman Ritter.
Councilman Kent said that the law states that if the existing pensions were bonded the city would be required to establish a defined contribution plan for new hires. Anyone currently on the forces or currently retired would have full benefits guaranteed exactly as they are now. This is only for new hires following adoption. If bonding occurs, the current plans have to be ended and a defined contribution plan adopted for future employees. The law also requires consideration for death and disability benefits.
Councilman Farrell asked if a defined benefit plan was one where a percentage is placed in an account with a match coming from the employer. Councilman Kent explained that a defined contribution plan works by allowing the employee to contribute up to a certain percentage that is matched by the employer. The individual can contribute more in the account, tax deferred, but the extra is not matched.
Mr. Farrell asked how that would impact with the statutes that provide police and firefighters to after 20 years receive 60% of their salaries. Dr. Kent explained that a defined contribution system eliminates that. Mr. Farrell asked if this would override the existing state law in that regard. Dr. Kent said that was correct.Chairman Insco pointed out there was a date of July 1, 2005 on the resolution and asked if the tax would be set by that time. Councilman Kent felt that it would be best to strike the wording "as of July 1, 2005" and made a motion to amend the resolution as delineated. The motion was seconded by Councilperson Neely.
Upon voice vote duly taken, the motion to amend was adopted (9 yeas, 0 nay, 2 absent-Black, Jackson).
Councilman Farrell pointed out that the current retirement plan for police officers provides that an officer can retire at age 50. Would this be the case under the new plan? Councilman Kent stated they would still be able to retire at age 50, but whether or not they will be able to draw full benefits was undetermined. This will be discussed with various entities interested in discussing the defined contribution plans available.
Lt. Rohrig, HPD, understood that the current plan couldn't be closed until the bonds were sold and the pension fund was totally funded and that the FOP had entered into agreement with the city on the new pension plan. He expressed concern because the pension code was reduced from several pages to one page. Thus this would be up for change each time contracts were negotiated. Councilman Kent stated that details had not been included in the code to allow bargaining units' input. Lt. Rohrig felt this could be an administrative nightmare because the pension plan could change each time the contract was negotiated. He felt the bill was too vague.
Councilperson Loudermilk asked Lt. Rohrig how he felt changes in the pension plan would affect recruitment. Lt. Rohrig thought the changes could adversely affect recruitment.Phil Cline felt that if this was not passed the city could be bankrupted thus leaving all employees without any pension plans.
Upon roll call vote duly taken, the resolution was adopted as amended (9 yeas, 0 nay, 2 absent-Black, Jackson).
(11) Resolution re: A RESOLUTION OF COUNCIL AUTHORIZING THE MAYOR TO ENTER INTO AN AGREEMENT TO ACCEPT A GRANT FROM THE WEST VIRGINIA OFFICE OF EMERGENCY SERVICES FOR THE CONDUCT OF AN OUTREACH PROGRAM TO NOTIFY RESIDENTS OF THE CHANGING FLOOD INSURANCE RATE MAPS FOR THE CITY OF HUNTINGTON
Councilperson Jones moved to adopt, 2nd by Councilperson Neely.
Don Kleppe said this was grant funding from the West Virginia Office of Emergency Services for an outreach program to notify persons in the new 100-year floodplain. The amount of the grant would not exceed $4,900.
Upon roll call vote duly taken, adopted unanimously (9 yeas, 0 nay, 2 absent-Black, Jackson).
(12) Resolution re: A RESOLUTION FOR THE REVISION OF THE FISCAL YEAR 2004-2005 GENERAL FUND BUDGET
Councilperson Neely moved to adopt, 2nd by Councilman Kent.
Bob Wilhelm stated this was for receipt of $25,000 in state grant(s) of which $10,000 was for Barnett Child Care Program and $15,000 was for the Huntington Museum of Art. Another item on the budget revision was for the transfer of $15,000 to the Transit Authority and was a pass through amount.
Upon voice vote duly taken, the resolution was adopted (9 yeas, 0 nay, 2 absent-Black, Jackson).
(13) Resolution re: A RESOLUTION OF COUNCIL AUTHORIZING REALLOCATION OF FUNDS TO FISCAL YEAR 2004-2005
Councilman Caserta moved to adopt, 2nd by Councilperson Neely.
Charles Holley explained this would amend the Emergency Shelter Grant. The Time Out Youth Shelter closed its doors which made $18,831 available for reallocation. This money will be divided among the other shelters based on the number of clients served.
Upon voice vote duly taken, the resolution was adopted unanimously (9 yeas, 0 nay, 2 absent-Black, Jackson).
(14) Confirmation of Appointment: KYOVA Interstate Planning Commission - Brandi Jacobs-Jones (1st term)
Councilperson Neely moved to adopt, 2nd by Councilman Ritter.
Upon voice vote duly taken, the appointment was confirmed (9 yeas, 0 nay, 2 absent-Black, Jackson).
(15) Confirmation of Appointment: KYOVA Interstate Planning Commission - Carol Polan (1st term)
Councilperson Neely moved to adopt, 2nd by Councilman Ritter.
Upon voice vote duly taken, the appointment was confirmed (9 yeas, 0 nay, 2 absent-Black, Jackson).
(16) Good & Welfare
Councilman Ritter received a complaint from a resident of Waverly Road regarding high grass around the 3200 block of Waverly Road and on the B&O right-of-way. Several requests have been made to have an alley graded, which was never done. Thus, the resident paid to have the alley graveled and she now asks that it not be graded.
Councilperson Jones commented on the recent quadruple murder in her district. The city leaders as well as residents need to be proactive so that such a devastating event never happens again.
Councilperson Neely has received calls indicating problems with the television audio reception from council chambers. Also, the Public Works Director was to have been at the last Harveytown Neighborhood meeting but did not attend. It would be appreciated if the administration would ask him to attend the next scheduled meeting.
Councilman Caserta pointed out that delinquencies in city fees make it difficult for the city to maintain adequate protection for citizens. Also, there is a house on the southeast corner of Washington Boulevard and South Terrace that has overgrown trees that hampers vehicular visibility around the corner. The resident needs to be given notice on this.
Councilman Kent noted a large pothole at the intersection of Kings Highway and Marne that needs filled. Several complaints have been received about the old Rich Station on the corner of Edison and 20th Street, which is becoming increasingly unsightly.
Councilman Ritter suggested that in order to have a better police presence in the area that the old precinct in the area of the shootings be revived as well as officers patrolling on bicycles. Chairman Insco pointed out that such problems are citywide, not just in one district. Mr. Thornburgh noted that the city has received much help from the State Police Department on this matter.
Mary Anderson, 1423 Grove St., spoke regarding the Olympic Pool and expressed her disappointment that it would not be opened this coming year.
Ray Browning commented that a hole in the east side of 8th Street that he previously reported has not yet been fixed. The grass at the old Gallaher School needs cut more than once a year.
John Vance suggested organizing neighborhood watch groups throughout the city. Is the city considered opening the dump site? Mr. Thornburgh said this has been researched and the city is in the process of closing the other landfill, and another cannot be opened until it is closed. Mr. Vance suggested the city having a city impound lot. He asked how much money had been collected from answering alarms. Mr. Thornburgh did not have this information.
Phil Cline thanked Council for action taken to defeat the ordinance increasing the hotel/motel occupancy tax.
Lt. Alan Rohrig, HPD, thanked the State Police and Sheriff's office for their recent help. It would impractical to have a precinct as suggested by Councilman Ritter. Manpower cuts made it necessary to eliminate the DARE program. For several years there was no drug unit. He feels that staffing difficulties are responsible for crime problems in the city.
There being no further business to come before council, the meeting was adjourned at 9:35 p.m.
