COMMON COUNCIL
JANUARY 18, 2011 7:00 P.M.
THE PLEDGE OF ALLEGIANCE WAS GIVEN BY EVERYONE IN ATTENDANCE.
PRAYER WAS GIVEN BY KATHY HAMILTON, HOPE INITIATIVE.
MAYOR SMALL OPENED THE MEETING OF THE COMMON COUNCIL.
ROLL CALL:
SANDY YORK PRESENT
ANGIE GOODMAN PRESENT
JAMES KIDD PRESENT
MARY MALONE PRESENT
MARK KOGER PRESENT
VAUGHN REID PRESENT
RICHARD HAHN PRESENT
MINUTES WERE APPROVED AS PRESENTED.
RESOLUTION:
AUTHORIZING TEMPORARY TRANSFER OF FUNDS (TRANSPORTATION) WAS READ IN FULL BY SANDY YORK.
PRESIDENT YORK MOVED TO PASS THIS RESOLUTION. COUNCILMAN HAHN: SECOND
ROLL CALL VOTE: SEVEN VOTES AYE. PASSED AND ORDERED.
RESOLUTION:
IN SUPPORT OF STELLAR GRANT APPLICATION WAS READ IN FULL BY SANDY YORK.
PRESIDENT YORK MOVED TO PASS THIS RESOLUTION. COUNCILADY GOODMAN: SECOND
DIRECTOR JEANA DAVIS GAVE A SUMMARY OF THE STELLAR GRANT APPLICATION, WHAT THE GRANT WOULD BE USED FOR AND THE 10% MATCHING FUND, WHERE IT WOULD BE PAID FROM OVER THE NEXT 3 YEARS. DIRECTOR DAVIS SAID THAT THE STELLAR GRANT WAS BROKEN INTO INDOT, ICDA (HOUSING) AND OCRA. DIRECTOR DAVIS SAID THEY WOULD BE ASKING FOR $600,000.00 FROM INDOT. OUR INVESTMENT WOULD BE $150,000.00, COMING FROM STORM WATER FUNDS. SHE SAID THEY WANTED TO TIE IN WITH THAT A WALK ABLE COMMUNITY, SIDEWALKS FOR SAFETY IN PARKS AND SCHOOLS. THIS WOULD ALSO BE $600,000.00 AND THE MATCH WOULD BE $150,000.00 FROM STORM WATER. OTHER PROJECTS SUCH AS THE MAXWELL GREEN PARK, BELMONT INFRASTRUCTURE, DEMOLITION OF HOMES, IVY TECH DOWNTOWN, SENIOR CENTER BUILDING AND BAKER WOODS. SHE SAID THERE MAY HAVE TO BE A BOND FOR DOWNTOWN AND THE REDEVELOPMENT COMMISSION WOULD PUT IN THAT MATCH.
COUNCILMAN KOGER ASKED WHAT THE TOTAL AMOUNT WAS THAT SHE WAS TALKING ABOUT, GETTING FROM STORM WATER.
DIRECTOR DAVIS SAID THERE WAS 2.2 MILLION IN THERE.
COUNCILMAN REID SAID HOW CAN YOU TAKE IT FROM STORM WATER TO DO NON-STORM WATER ACTIVITIES? PLUS WE ARE BORROWING FROM STORM WATER.
MAYOR SMALL SAID THE MAXWELL GREEN PARK IS STORM WATER. HE SAID BELMONT WOULD BE GIVEN CURBS AND DRAINS WHICH WOULD BE STORM WATER DRAINS AND MATCH.
COUNCILMAN REID ASKED HOW DEVELOPING SAFE ROUTES TO SCHOOL, THE $300,000.00 MATCH, HOW DOES THAT COME IN TO THAT?
MAYOR SMALL SAID CURBS AND GUTTERS ARE INVOLVED IN THAT ALONG WITH THE CONSTRUCTION OF THE SIDEWALKS AND DRAINS.
COUNCILMAN REID ASKED IF THERE WAS A BOND, WHAT FUND WOULD THAT BOND COME FROM. WHAT FUND WOULD WE USE TO PAY FOR IT?
ATTORNEY COPENHAVER SAID FROM WHAT HE HAS HEARD, IT WOULD HAVE TO BE A GENERAL REVENUE BOND. IT WOULD NOT BE UTILITY. HE SAID THE LARGEST AMOUNT HE HEARD WAS $600,000.00 FOR DEMOLITION. THAT WOULD BE OVER 3 YEARS AT $200,000.00 PER YEAR.
COUNCILMAN REID ASKED ABOUT THE BOND THAT WE HAVE FOR GARNER STREET WAS FOR $800,000.00 AND THE PAYMENTS WERE ABOUT $75,000.00 A YEAR. SO WE ARE TACKING ON AN ADDITIONAL $75,000.00 ANNUAL OBLIGATION TO THE CITY.
ATTORNEY COPENHAVER SAID THAT NONE OF THIS HAS BEEN FINALIZED. IT WON'T BE UNTIL YOU GET THE GRANT.
COUNCILMAN KOGER ASKED GETTING THE GRANT, DOES IT HINDER ON US, PASSING THIS RESOLUTION?
ATTORNEY COPENHAVER SAID THERE WASN'T ANY WAY, FROM HIS UNDERSTANDING, THAT THEY ARE HIGHLY COMPETITIVE AND WITHOUT A RESOLUTION, SUPPORT FROM THE FISCAL BODY, YOU ARE NOT GOING TO COMPETE WITH OTHER COMMUNITIES THAT ARE AFTER THE MONEY. THIS DOES NOT REQUIRE YOU TO TAKE OUT A BOND ISSUE. IF YOU GET THE MONEY, DECIDE YOU DON'T WANT TO FUND IT, DON'T ACCEPT THE GRANT. WITHOUT YOUR SUPPORT, SOME OTHER TOWN IS GOING TO GET THE GRANT. YOU HAVE 12 COMMUNITIES WHO WANT THIS MONEY. IT WILL BE DIVIDED BETWEEN 2 TOWNS. YOU HAVE ABOUT A ONE IN SIX CHANCE OF BEING APPROVED.
COUNCILMAN REID SAID THIS IS NOT WHERE HE IS CONCERNED. HIS CONCERNS, WE ARE OBLIGATING THE CITY POSSIBLY TO SOME LONG TERM FINANCIAL OBLIGATIONS WHICH HE DIDN'T THINK WE COULD AFFORD RIGHT NOW. A BOND WILL BE 10 TO 20 YEARS.
ATTORNEY COPENHAVER SAID HE AGREED WITH COUNCILMAN REID BUT HE SAID DON'T THINK YOU ARE COMMITTING THE CITY TO A BOND OBLIGATION.
COUNCILMAN REID SAID HE UNDERSTOOD BUT IF WE GET THE GRANT, IN THE PLAN, THE $650,000.00 POSSIBLE BOND, IF THE CITY DECIDES THAT IT DOESN'T WANT TO BOND THE MONEY, THEN WHAT?
ATTORNEY COPENHAVER SAID THEN THE NEXT COMMUNITY WILL GET THE GRANT.
COUNCILMAN REID SAID WE ARE COMMITTING, IF WE WANT TO CARRY THROUGH WITH THE GRANT, WITH THE UNDERSTANDING WE ARE GOING TO HAVE TO BORROW SOME MONEY. THAT IS CONCERN #1. HIS SECOND CONCERN WAS IN 12 MONTHS, WE ARE GOING TO HAVE AN ENTIRE ADMINISTRATIVE MANAGEMENT CHANGE THAT MAY WANT TO GO IN A DIFFERENT DIRECTION. DON'T KNOW WHAT IMPACT THAT IS GOING TO HAVE ON THIS. YOU KNOW IF YOU GET A DIFFERENT MAYOR AND CLERK-TREASURER, YOUR GOING TO HAVE A SET OF DIFFERENT PRIORITIES. HOW DOES THAT ALL PLAY INTO THE MIX? HE SAID HE THOUGHT THIS WAS A GOOD PROJECT. HIS CONCERN WAS HE DIDN'T KNOW IF THE CITY COULD AFFORD THE MONEY TO BENEFIT THE INVESTMENT.
COUNCILADY GOODMAN SAID SHE THOUGHT THE COUNCIL SHOULD TRY FOR IT. IF NOT, WE ARE GOING TO LOOSE THE OPPORTUNITY TO TAKE ADVANTAGE OF THE MONEY THAT COULD SUPPORT OUR COMMUNITY AND ADVANCE OUR COMMUNITY FURTHER. IF YOU TAKE A LOOK AT THE $650,000.00 OVER A 3 YEAR PERIOD, THAT IS ABOUT $200,000.00 PER YEAR. SHE THOUGHT THIS COULD BE FOUND IN THE BUDGET EACH YEAR.
COUNCILMAN REID SAID IF WE DO THAT, WE ARE NOT BUILDING ON THE CITY'S CASH FLOW BALANCES WHICH ACCORDING TO WHAT THE CITY'S FINANCIAL ADVISOR DETERMINED LAST YEAR AT THE DAY LONG MEETING. THE ADVISOR SAID THE BIGGEST PROBLEM WITH THE CITY IT DOESN'T HAVE THE MONEY TO DEAL WITH HARD TIMES. THAT IS HIS CONCERN. IF WE GOT THE MONEY, WOULD IT BE BETTER FOR THE LONG TERM ESTABLISHED OPERATION OF THE CITY OF NEW CASTLE AND THE COMMUNITY AND CITIZENS, FIXING THE CASH FLOW PROBLEMS FIRST THEN WHEN THOSE ARE UNDER CONTROL, AND THE CITY IS FISCALLY SOUND, THEN GO AFTER SOME OF THESE THINGS.
ATTORNEY COPENHAVER SAID HE WANTED TO ADD THIS, UNTIL YOU REALLY KNOW IF YOU HAVE THE OPPORTUNITY TO GET THE MONEY, YOU ARE NOT GOING TO SIT DOWN AND DETERMINE WHAT KIND OF CONTRIBUTIONS YOU CAN GET. HE SAID DIRECTOR DAVIS HAD NOT MENTIONED THE CONTRIBUTIONS OF PUBLIC PROPERTY. THE CITY OWNS A LOT OF VACANT LOTS IN TOWN AND THE VALUE COULD BE PART OF A CONTRIBUTION. HE SAID HE WASN'T SUGGESTING THAT THERE WASN'T A COST TO THIS. IT MAY NOT BE A COST THAT WE COULD AFFORD. DON'T THINK BY PASSING THIS THAT YOU ARE COMMITTING YOURSELF TO AN EXPENDITURE, YOUR NOT. YOU ARE SAYING THAT WE ARE IN FAVOR OF IT AND RECOGNIZE THAT IF WE GET IT, WE ARE GOING TO HAVE TO HAVE A MATCH. NOBODY WILL FORCE YOU TO TAKE THE MONEY. IF YOU GET APPROVED, YOU CAN ALWAYS SAY WE'RE SORRY BUT WE HAVE GIVEN IT A SECOND THOUGHT, WE CAN'T AFFORD IT. IT IS A RARE OPPORTUNITY TO GET THIS FAR. MANY COMMUNITIES SUBMITTED APPLICATIONS THAT DID NOT MAKE THE FIRST CUT. YOU WANT TO THINK LONG AND HARD BEFORE YOU PULL OUT AT THIS STAGE.
MAYOR SMALL SAID WE ENDED UP WITH MORE MONEY THAN WE NEEDED TO PAY OUR DEBTS THIS YEAR. WE HAVE ALMOST $600,000.00 IN OUR RAINY DAY FUND. WE DON'T THINK ABOUT TOUCHING THAT. THERE IS NOT GOING TO BE A PROBLEM.
COUNCILMAN REID SAID HE HAD ONE LAST QUESTION. THE STORM WATER MONEY, IS IT GOING TO BE USED FOR STORM SEWERS PROJECTS OR FOR THINGS THAT WILL HELP THE STORM WATER SANITARY SEPARATION?
ATTORNEY COPENHAVER SAID YOU CANNOT USE STORM WATER MONEY ON A NON-STORM WATER PROJECT. THAT ISN'T TO SAY THAT ALL STORM WATER PROJECTS ARE PART OF THE LONG TERM CONTROL PLAN. HE SAID HE THOUGHT THAT WAS THE ANSWER COUNCILMAN REID WAS LOOKING FOR. HE GAVE AN EXAMPLE, IF YOU WERE GOING TO APPROVE THE BOWERY BROOKE DITCH, WHICH IS PART OF OUR STORM WATER SYSTEM, TO RE-ENFORCE THE WALLS OF BOWERY BROOKE, THAT WOULD NOT BE PART OF THE LONG TERM CONTROL PLAN PROJECT BUT IT WOULD BE A STORM WATER PROJECT.
COUNCILMAN REID SAID HIS THOUGHT WAS WE ARE CHARGING THE PEOPLE OF NEW CASTLE $6.00 A MONTH OR MORE, FOR STORM SEWER REHABILITATION AND SEPARATION. HE HATED TO SEE US TAKE THAT MONEY AND SPEND IT ON SOMETHING THAT MAY NOT BE ACTUALLY A PART OF, SUCH AS SIDEWALKS. HE SAID THE CITY DID NEED THESE BUT WHEN THIS FEE WAS PASSED TO USE THE MONEY FOR UPGRADE, THEN WE COME ALONG IN A COUPLE OF YEARS, AND BECAUSE WE SPENT IT ON THIS STUFF, WE HAVE TO BOND 3 TO 4 MILLION DOLLARS.
ATTORNEY COPENHAVER SAID IS IT WORTH THE RISK TO GET NINE DOLLARS FOR EVERY ONE DOLLAR YOU SPENT. IT'S AN OPPORTUNITY THAT DOESN'T COME VERY OFTEN. YOU ARE NOT COMMITTING TO A BOND ISSUE. YOU'RE NOT COMMITTING TO SPENDING THAT FIRST PENNY FROM STORM WATER. YOU ARE SAYING YOU RECOGNIZE THE 10% MATCH FOR ANY FUNDS YOU MIGHT GET.
PRESIDENT YORK ASKED IF THERE WERE OTHER WAYS OF RAISING THAT MATCH.
ATTORNEY COPENHAVER SAID YES. WE HAVEN'T BEGUN TO EXPLORE ON HOW THOSE FUNDS MIGHT BE RAISED. TO SPEND A LOT OF MONEY AT THIS STAGE WOULD BE COUNTER PRODUCTIVE.
DIRECTOR DAVIS SAID THAT EACH GRANT WOULD BE APPLIED FOR SEPARATELY. IF WE SAY WE AREN'T GOING TO BE ABLE TO PROVIDE THE MATCH, THEN WE LOST THAT GRANT.
COUNCILMAN REID SAID THEN THIS IS NOT AN ALL OR NOTHING THING. WE CAN PICK AND CHOOSE WHAT WE CAN AFFORD.
DIRECTOR DAVIS SAID IF WE CAN'T COME UP WITH THE MATCH, THEN WE CAN'T MEET OUR OBLIGATION AND WE WON'T BE PENALIZED.
ROLL CALL VOTE: SEVEN VOTES AYE. PASSED AND ORDERED.
ORDINANCE #3617-
AUTHORIZING TEMPORARY LOANS WAS READ BY TITLE ONLY ON SECOND READING BY SANDY YORK.
PRESIDENT YORK MOVED TO PASS THIS ORDINANCE ON SECOND READING. COUNCILADY MALONE: SECOND
ROLL CALL VOTE: SEVEN VOTES AYE. PASSED AND ORDERED.
ORDINANCE #3611-EXPANDING NEW CASTLE DOWNTOWN HISTORIC DISTRICT (TABLED 12/6/10) WAS READ IN FULL ON FIRST READING BY SANDY YORK.
ATTORNEY COPENHAVER SAID THIS WAS A PUBLIC HEARING ON THIS ORDINANCE. HE ASKED IF THERE WAS ANYONE WANTING TO SPEAK ON THIS ORDINANCE.
WILLIAM PFEFFER, ASSISTANT SUPERINTENDENT OF THE NEW CASTLE COMMUNITY SCHOOLS SAID THE SCHOOL CORPORATION HAS AGREED TO DO NOTHING WITH THE BUILDING FOR A YEAR WHILE THEY WILL WORK WITH THE COMMISSION TO FIND SOMEONE TO TAKE THE 7TH GRADE BUILDING OVER. HE SAID WE WANT TO WORK WITH THE COMMISSION TO HELP OUR COMMUNITY. WE WILL MAINTAIN IT AND MAKE IT LOOK NICE DURING THIS YEAR.
KEVIN POLIVICK, EXECUTIVE DIRECTOR OF THE INTER LOCAL COMMUNITY ACTION PROGRAM, THE ORGANIZATION THAT MAY BE TAKING OVER THE ARMORY, ASKED THAT THE ARMORY NOT BE INCLUDED AT THIS TIME. HE SAID THEY WANT A CHANCE TO STUDY WHAT BEING IN THE DISTRICT WOULD MEAN FOR THE PROPERTY.
SHARON SHARKITT, POSTMASTER, NEW CASTLE POST OFFICE, ASKED IF PERMISSION TO UPGRADE THE POST OFFICE HAD TO COME FROM THE COMMISSION.
ATTORNEY COPENHAVER SAID YES IF THE STRUCTURE WAS BEING CHANGED SUCH AS IF WINDOWS WERE BEING REMOVED AND REPLACED POSSIBLY CHANGING THE STRUCTURE OR LOOKS OF THE BUILDING.
AFTER QUESTIONS WERE ANSWERED BY DAVID NANTZ, PRESIDENT OF THE PRESERVATION COMMITTEE, THE COUNCIL MEMBERS WERE CONVINCED THAT THEY DID NOT WANT TO VOTE ON THIS EXPANSION PROPOSAL.
COUNCILMAN REID SAID HE WAS GLAD TO SEE THE SCHOOL CORPORATION WORKING WITH THE COMMISSION. HE SAID BEFORE HE WOULD FEEL COMFORTABLE VOTING FOR THIS ORDINANCE, HE WANTED TO SEE THE COMMISSION TO WORK OUT SOMETHING WITH ICAP SINCE THEY ARE DIRECTLY EFFECTED AND THE POST OFFICE, IT SOUNDS LIKE THEY HAVE A HISTORICAL REVIEW SO HE WASN'T SURE IT SHOULD BE INCLUDED IN THE DISTRICT.
COUNCILMAN REID SAID THAT THE AGREEMENT WORKED OUT BETWEEN THE SCHOOL CORPORATION AND THE COMMISSION, IS THERE ANY THING IN THE AGREEMENT THAT OBLIGATES THE CITY TO PAY FOR UTILITIES OR UPKEEP?
MR. PFEFFER SAID ABSOLUTELY NOT.
MAYOR SMALL ANNOUNCED THAT DUE TO THE LACK OF A MOTION AND SECOND, ORDINANCE #3611 HAS FAILED..
COUNCIL REPORTS:
PRESIDENT YORK AGAIN ASKED ABOUT THE BUILDING BEHIND THE CREDIT UNION ON SOUTH 21ST STREET AND I AVE., THE BUILDING WAS CAVING IN.
BUILDING INSPECTOR HALL SAID IT WAS ON THE LIST.
COUNCILMAN KIDD SAID HE HAD A COPY OF THE AGREEMENT BETWEEN THE SCHOOL AND THE COMMISSION. COPIES WILL BE GIVEN TO THE COUNCIL.
COUNCILMAN KOGER SAID HE ASKED ABOUT THE JANUARY 4TH BOARD OF WORKS. HE SAID THERE WAS AN AGREEMENT OR CONTRACT WITH UMBAUGH FOR WORK ON THE ACCOUNTING. HE SAID IT WAS FOR 40 TO 50 HOURS A YEAR AT A RATE OF $600.00 PER MONTH. HE SAID THIS WAS $120.00 TO $144.00 PER HOUR. HE SAID THAT WAS A SALTY NUMBER TO THE AVERAGE PERSON. ACCOUNTANTS ARE PAID WELL BUT NOT THAT MUCH. IS THERE SOMETHING WE CAN LOOK AT ON A LOCAL BASIS THAT WE COULD WORK WITH?
MAYOR SMALL SAID IF THEY HAVE EXPERIENCE IN MUNICIPAL FINANCES.
COUNCILMAN KOGER THANKED THE FELLOWS AT THE WASTE WATER DEPARTMENT FOR THE PICKING UP OF LEAVES AND KEEPING THE STREETS FREE OF SNOW. THEY ARE DOING A FANTASTIC JOB.
MAYOR SMALL SAID WE HAVE BITTEN OFF MORE THAN WE CAN CHEW WITH THE LEAF PICK UP. WE PROMISED MORE THAN WE COULD DELIVER BE CAUSE OF THE WEATHER, SNOW.
COUNCILMAN HAHN THANKED THE COMMISSION, MR. PFEFFER OF THE NEW CASTLE SCHOOLS, THE POSTMASTER AND ICAP FOR APPEARING TONIGHT. HE FELT THAT NEW CASTLE IS THE FINEST CITY IN THE UNITED STATES. THE PEOPLE LISTEN AND WORK TOGETHER.
PRESIDENT YORK MOVED TO ADJOURN.
COUNCILMAN KOGER: SECOND
