The City Council for the City of Crossville, Tennessee met in regular session on Tuesday, July 14, 2009 at Crossville City Hall.

Roll Call.

Present: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean. Others present were City Manager Ted Meadows, Attorney Joe Looney, City Clerk Sally Oglesby, David Beaty, Andy Vaughn, Jim Young, Mark Rosser, Deanna Johnston, James Johnston, JoAnn Wyatt, Myra Wiechart, Joan Beach, Marcia Hiltabidle, Joe Hiltabidle, Pamela Allen, John Allen, Ed Mayotte, Ray Reitz, Virgie Lotze, Cindy Turner, Perry Turner, Jerry Garrison, Joseph W. Koester, Justus Z. Goss, Mary Ann Brown, Kenneth Knipp, Mary Knipp, Clark Annis, Ronna Paris, Mr. and Mrs. Charles Pollard, Keith and Debbie Kleintop, Thomas Wolf, Fred Houston, Josh Fitt, Steve Frod, Pamela Spann, Frank Spann, Sheere Britt, Barbara Britt, Kris Burk, Stacy Lyn Whitmire, Lester Garland, William Beach, Mari Wyatt, Cindy Hall, Vaughn Giguere, Don Napier, Tonya Hinch, Chuck and Mary Ann Halper, Tony Graves, Kenneth and Marie Anderson, Bobbi Avery, Patricia Sawchuk, Clara Curtis, Charlie and Fann Burrus, Pam Hofmann, Sandra Schnee, Marlene Reitz, Sally English, Jerry Davenport, Mike Ferry, Gary Rahnek, Deborah Hesson, Pat Camacci, Mike Camacci, Mary Beth James, Marc Anthorne, James Caruth, Ed Sawchuk, Richard D. Tomlinson, Edward Liskovic, Jan Robertson, Larry Robertson, Ken Deadmon, Forest O’Dell, Willard Dale, Buster Campbell, Molly Campbell, Sheila Davenport, Marsha Bean, Frank Thierry, David Sutton, Don Alexander, Joe Miller, Beth Wyatt-Davis, Jody (Emily) Brown, Joan Pulley, James Graves, Jim Everett, Kathy Dillon, Mike Dalton, Ron Brown, Andy Vaughn, Sheila Strunk, Glenn Strunk, and Laura Himelrick.

Mayor Graham was present and presiding. He called the meeting to order at 6:00 p.m. The invocation was given by Willard Dale, followed by the posting of the colors and Pledge of Allegiance by the Young Marines.

ITEM #1 – PRESENTATIONS/APPOINTMENTS

a) Crossville Housing Authority – Virgie Lotze was re-appointed to an additional five year term as a Commissioner of the Crossville Housing Authority. The oath of office was given by Mayor Graham.

b) D Square Productions - deferred

ITEM #2 – CONSENT AGENDA

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

a) Approval of minutes (6/9, 6/26)

b) Approval to extend local telephone service, internet service, and telephone equipment contracts with VolFirst until November 7, 2010

c) 3^rd Reading of Ordinance amending the FY08-09 budget by $8,500 for computer server

d) 3^rd Reading of Ordinance amending the FY08-09 budget by $20,000 for relocation of ASOS at airport

e) 2^nd Reading of Ordinance amending the FY08-09 budget by $62,100 for Homestead School pump station change orders

f) Resolution approving donations for FY09-10

g) Resolution approving submittal of grant request for TML Safety Partners Matching Grant Program

h) Approval to apply for $5,000 in grant funds for tree plantings at various locations

i) Approval of bid from J.S. Haren Company in the amount of $105,000 for Gridiron and Thunder Hollow West pump station rehabilitations – REMOVED FROM CONSENT AGENDA

j) Approval to set up Mobile ProShop at Stonehenge Golf Course for the TN Women’s Open Golf Tournament Pro-Am at a maximum cost of $7,500 – REMOVED FROM CONSENT AGENDA

k) Approval of contract with Carol A. Croft and Associates for acquisition services for Hwy. 70N waterline project – REMOVED FROM CONSENT AGENDA

Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

i) Approval of bid from J.S. Haren Company in the amount of $105,000 for Gridiron and Thunder Hollow West pump station rehabilitations – Clark Annis explained to Council the need for rehab work on the pump stations as they were installed in the early 1980’s by the developers and have only had maintenance performed on them.

A motion was made by Councilman Wyatt, seconded by Councilman Duer, that the bid from J.S. Haren Company in the amount of $105,000 for the Gridiron and Thunder Hollow West pump station rehabilitations be approved. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

j) Approval to set up Mobile ProShop at Stonehenge Golf Course for the TN Women’s Open Golf Tournament Pro-Am at a maximum cost of $7,500 – Steve Hill reported that Stonehenge is in agreement for the Pro Shop. The City is taking the merchandise on consignment for the prizes to be selected by the participants. Any remaining merchandise will be returned.

A motion was made by Councilman Wyatt, seconded by Councilman Kerley, that the Mobile ProShop at Stonehenge Golf Course be approved. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

k) Approval of contract with Carol A. Croft and Associates for acquisition services for Hwy. 70N waterline project – The City Manager and City Clerk explained the need for assistance in the acquisition of easements and recommended approval. The contract will require that all additional costs be pre-approved.

A motion was made by Councilman Duer, seconded by Councilman Wyatt, that the contract with Carol A. Croft and Associates for acquisition services for the Hwy. 70N waterline project be approved. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

ITEM #3 – MATTERS RELATIVE TO MARKETING AND PUBLIC RELATIONS

Don Napier updated the Council on upcoming projects and promotions:

§ Women’s Open and Media Guide – The event is being held this week at Stonehenge. He reported that 1500 copies have been printed of media guide, which were paid for through sponsorships and advertising. There are 125 players in the event.

§ Don Helms Festival – The golf tournament will be held at Lake Tansi. Three shows are scheduled at the Palace to celebrate the memory of the late steel guitarist Don Helms.

§ Airport Open House/Air Show – The 75^th anniversary celebration will be celebrated on September 12. A media guide is being prepared, which includes a history of the airport, other memorabilia, a timeline of events and improvements at the airport. The event will include live music as well as many other activities.

§ News releases were sent to many publications celebrating Mayor Graham being named Mayor of the Year by TML and the Senior Olympics events that were hosted in Crossville.

§ A Media network of 36 newspapers, including some in Kentucky, has been created to send news releases of local events.

§ WBIR featured Crossville on the July 14th “Live at Five at Four” for the Don Helms Festival and the Tennessee Women’s Open and Pro-Am

§ Preparations are also underway for the opening of the Carl T. Duer Soccer Complex

(At 6:25 p.m. the regular meeting was recessed and the Solicitation Board convened.)

SOLICITATION BOARD

United Fund of Cumberland County, Inc.

An application was submitted by the United Fund of Cumberland County, Inc. for their annual fundraising campaign.

A motion was made by Councilman Wyatt, seconded by Councilman Kerley, that a Solicitation Permit be approved for the United Fund of Cumberland County, Inc. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

(At 6:26 p.m., the Solicitation Board was adjourned and the regular meeting reconvened.)

ITEM #4 – MATTERS RELATIVE TO RAW WATER SUPPLY

Mayor Graham gave a historical perspective on the water harvesting project with planning and discussions beginning in 1996 to plan for a potential population of 100,000 in the County. He pointed out that several potential sources and solutions were identified and thoroughly researched.

Tom Wolf, Director of Engineering, reviewed the latest raw water supply expansion engineering report prepared by ECE Services. The report stated that we have reached 75-80% of the City’s raw water supply. The 40-year raw water demand is projected to nearly double from the current 7.5 million gallons per day to 14.5 million gallons per day.

Four options were evaluated:

1) do nothing;

2) harvest water from Caney Fork at a capital cost of $15.5M, $1M in annual operating costs, requiring 2 pumps at 30,000 gallons per minute, and a 48” diameter pipe;

3) harvest water from Watts Bar at a capital cost of $61.5M, $1.75M in annual operating costs; requiring 2 pumps at 5,000 gpm and a 36” diameter pipeline;

4) expand Meadow Park Lake dam at a capital cost of $5M, $126,000 in annual operating costs, one 5,000 gpm pump, and water harvesting from Lake Tansi with a 36” diameter pipeline. This would entail raising the dam 23’ and increasing the water level by 20’.

The Meadow Park option was recommended which would provide for more than a 350% increase in available capacity in Meadow Park Lake. Including Holiday Lake, the system would have a combined storage of approximately 237 days of water storage at a 14 mgd withdrawal rate. Currently, the City has only 100 days of surplus water storage at the 14.5 mgd withdrawal rate.

Councilman Wyatt stated that he wanted to insure that the community has clean, potable water to drink for the next 50 years and that the Council has the duty to go forward with the project.

City Manager Ted Meadows recommended the expansion of the dam, which willwould supply the required water. He reported that he has met with the Lake Tansi POA Board on at least 5 occasions over the last 6 weeks. He submitted to them a proposal to pull 12” of water directly from the lake via a 36” pipe. A Memorandum of Understanding was presented, but not accepted. The Tansi POA wants the City to use the siphon system located on the dam, which has the capacity to pull 60,000 gpm; however, it would require an additional 2 miles of lines and a clear well to be built on the backside of the dam for storage. Mr. Meadows stated that the City would only need water on 3 occasions:

1) in the event of a federally-mandated drought, which has never happened in County;

2) when Meadow Park Lake is drawn down to repair the dam, at which time, the City will need to supplement water from Holiday Lake. The plan would be to direct the water directly to the plant for processing. This should be for about 4-6 months and would be scheduled, as much as possible, during the wet months; and

3) to fill the larger lake after the dam expansion, during the winter months, taking only the overflow of Lake Tansi.

He received no positive feedback from POA on executing the agreement. The reason for the increased effort to secure an agreement is due to the availability of a $2M grant through stimulus funds. The City has a short window of opportunity to secure the water rights or the money will be given to other municipalities. If the $2M is a loan instead of a grant, it will result in an increase in all water bills. City Clerk Sally Oglesby reported a conversation with Jim Poff, Director of the State Revolving Loan Program, where he indicated that he will not be able to hold the grant funds much longer as the projects must be under construction by mid-February 2010. Mayor Graham reported on the need for water to feed the expansion of the dam at Meadow Park Lake.

Attorney Joe Looney discussed the right of eminent domain, which is granted to the City through its Charter and Tennessee Code Annotated. He stated that there is no question that the City has the right as a “matter of necessity”, which is clear regardless of whether it is in the corporate limits or not. Mr. Meadows reported that he and Kenneth Chadwell are continuing to negotiate with the Tansi POA. Mayor Graham asked that they continue to negotiate, even if action is taken regarding eminent domain.

A motion was made by Mayor Graham, seconded by Councilman Wyatt, that, in review of the findings of the Engineering Report for Raw Water Supply Expansion, dated July 9, 2009, prepared and certified by, Scott J. Christian, P.E. (No. 103039), and under the express terms of the City Charter, in Article III, because it is necessary, exercise its rights of eminent domain to condemn real property and real property interests, including flowage easements, raw water and water rights, for the purpose of its public water supply, as additionally mentioned under Tennessee Code Annotated § 29-17-901, et seq., under the rights of eminent domain. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

Mayor Graham reported that the preliminary engineering report for the Meadow Park Lake dam project had costs estimated at $11,900,000. He recommended that the amount of the Rural Development loan application be increased to $12,000,000.

A motion was made by Councilman Wyatt, seconded by Councilman Duer, that the resolution authorizing a loan application to Rural Development in an amount not to exceed $12,000,000 for the Meadow Park Lake dam project be approved. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

ITEM #5 – MATTERS RELATIVE TO WASTEWATER TREATMENT PLANT UPGRADE

The loan resolution for the State Revolving Loan Program was presented for approval. The remaining documents are expected to be received in the next few days. This loan covers a portion of the costs for the technology upgrade at the wastewater treatment plant. Funds of $1,000,000 are also being provided through EDA.

A motion was made by Councilman Dean, seconded by Councilman Kerley, that the loan resolution for the State Revolving Loan Program for the wastewater treatment plant upgrade be approved and the Mayor authorized to sign all pertinent documents. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

A contract was presented with Community Development Partners for administrative services on the State Revolving Loan for the wastewater treatment plant project in the amount of $50,000.

A motion was made by Councilman Dean, seconded by Councilman Duer, that the contract with Community Development Partners for the SRF wastewater treatment plant project be approved. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

ITEM #6 – MATTERS RELATIVE TO LANTANA ROAD UTILITY PROJECT

Acquisition of easements for the Lantana Road utility project is underway. Because of the nature of the sewer line extension requested by TDOT outside of the City limits, special provisions were needed. Approval was requested for the following conditions to apply for this line extension only:

For those property owners signing a utility easement whose property is located outside the city limits:

1. If access to the sewer line is desired, the property must be annexed.

2. If access to the sewer line is not requested at this time, the property will not be annexed and no sewer service charge will be assessed to the property when the sewer becomes available.

3. If sewer access is being provided at the request and requirement of TDOT, all costs will be assessed as the property owners will be reimbursed by TDOT for the costs to connect.

A motion was made by Councilman Wyatt, seconded by Mayor Graham, that the special provisions outlined for the Lantana Road sewer extension be approved. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

ITEM #7 – CITY ATTORNEY’S REPORT

Attorney Joe Looney reported on behalf of Kenneth Chadwell that there were no new lawsuits or activities.

ITEM #8 – CITY MANAGER REPORT

City Manager Meadows presented the monthly revenue reports for local option sales tax (still decreasing) and wholesale beer tax (slightly down). He also provided an update on building permits, which are still very slow (4 single family dwellings).

An updated special projects report was also presented.

§ Soccer complex - on schedule for the end of the month to have all soccer fields ready. There has been a massive growth in soccer signups, including 4 adult teams. The leagues will only play games on the new fields and continue practicing at other locations;

§ Genesis/I-40 signalization - A tentative bid letting is scheduled for October 2009

Councilman Wyatt requested that a meeting be set up with ECE Services, City Manager, City Clerk, Director of Engineering, and Chris Bennett to discuss the status of airport projects.

In personnel matters, Mr. Meadows recommended the promotion of Police Officer Jon Wirey to a Sergeant position effective 8/2/09. This position is needed for a relief supervisor for various shift coverages. There will be a pay increase of 5% at time of promotion and an additional 5% at the completion of probation period. There will be no replacement needed for the police officer position.

A motion was made by Mayor Graham, seconded by Councilman Duer, that the promotion of Police Officer Jon Wirey to Sergeant position be approved as outlined. Vote: Motion carried by unanimous roll call vote (summary: Yes = 5). Yes: Councilman Boyd Wyatt, Sr., Councilman Carl Duer, M.D, Councilman Jesse Kerley, Mayor J. H. Graham, III, Mayor Pro-Tem Earl Dean.

Holiday Lake – Mr. Meadows reported there have been a total of 7 complaints received so far. Ms. Wibel has sent out a letter to property owners giving them until July 15 to relay any issues on the additional water. The Flick situation will be discussed with Ms. Wibel and then he will get back to the Flicks to resolve the problem. Mayor Graham expressed his concern about discussing the attorney’s opinion with someone who might litigate against us and asked the City Manager to be very careful in any negotiations so as to not disclose the opinion of the attorney.

With no further business, the meeting was adjourned at 7:15 p.m.