The City Council for the City of Crossville met in regular session on Tuesday, May 8, 2007 at Crossville City Hall.

Mayor J. H. Graham, II. was present and presiding. Councilmen present were Earl Dean, Dr. Carl Duer, Jesse Kerley and Boyd Wyatt, Sr. Others present were City Manager Dr. Jack Miller, City Attorney Kenneth Chadwell, City Clerk Sally Oglesby, Chief of Police David Beaty, Kim Presley, Johnny W. Presley, Mike Turner, Joe Miller, Richard Holton, Frank Drabek, Tim Begley, Vaughn Giguere, Ed Yoder, Ken Qualls, Mike Ferry, Bill Brown, Mary Ann Brown, Christian Cobb, Sam Williams, Dean Bennett, Ashley Bennett, David Sutton, Ken Linder, Fred Houston, Dewey Peterson, Jim Vincent, James Tague, Roscoe Toscano, Christy Lewis, Jim Young, Janice Hamby, Margie Buxbaum, Norm Westerbuhr, Mark Fox, Kenneth Burnett, and Ernest Calahan.

Mayor Graham called the meeting 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 – PROCLAMATION FOR VIETNAM VETERANS DAY

Mayor Graham proclaimed March 29, 2008 as Vietnam Veterans Day in preparation for activities being planned for that day. Plans include the installation of 107 flags on Main Street from I-40 to the Community Complex.

ITEM #2 – APPOINTMENTS

a) Crossville Housing Authority – Mayor Graham appointed Johnny Presley to a five-year term and administered the Oath of Office.

b) Tree Board – Mayor Graham appointed Clarence Coffey and Margie Buxbaum to unexpired terms. Nan Beesley was re-appointed to a three-year term.

c) Beautification Committee – Councilman Kerley appointed Margie Buxbaum.

ITEM #3 – CONSENT AGENDA

A motion was made by Councilman Wyatt, seconded by Councilman Dean, that the following items on the consent agenda be approved:

a) Approval of minutes (4/10, 4/19)

b) 3^rd Reading of ordinance annexing 18 acres on Cook Road

c) Resolution adopting a Plan of Service for the annexation of 18 acres on Cook Road

d) 3^rd Reading of ordinance annexing 8.3 acres in Deer Creek

e) Resolution adopting a Plan of Service for the annexation of 8.3 acres in Deer Creek

f) 3^rd Reading of Ordinance authorizing payments beyond the current budget year as contained in the purchase and sales contract with J. Hicks Excavating for the purchase of 40.41 acres

g) 3^rd Reading of Ordinance authorizing payments for contracts with GRW Engineers for engineering and design services beyond the current budget year

h) 3^rd Reading of Ordinance authorizing payments for contracts with Robert G. Campbell and Associates for engineering and design services beyond the current budget year

i) 3^rd Reading of Ordinance authorizing payments for contracts with Hart Freeland Roberts for engineering and design services beyond the current budget year

j) 3^rd Reading of Ordinance authorizing payments for contracts with ECE Services for engineering and design services beyond the current budget year

k) 3^rd Reading of Ordinance authorizing payments for contracts with Gresham Smith and Partners for engineering and design services beyond the current budget year

l) 2^nd Reading of Ordinance authorizing payments for contracts with James + Associates for engineering and design services beyond the current budget year

m) 2^nd Reading of Ordinance amending the budget for FY06-07 in the amount of $43,455.34 for the Hwy. 127S utilities relocations

n) 3^rd Reading of Ordinance re-naming Laurel Street to Walker Street

o) 2^nd Reading of Ordinance amending §17-101 of the Crossville Municipal Code pertaining to the definition of refuse and solid waste

p) 1^st Reading of Ordinance adopting a budget for FY07-08 (in title only)

q) 1^st Reading of Ordinance adopting a tax rate for FY07-08

r) Resolution adopting the Strategic Economic Development Plan

s) Resolution affirming compliance with Federal Title VI Regulations

t) Approval for a pro-troop rally on July 4 in conjunction with DAR-sponsored 4^th of July parade – Debbie Towns

u) Acceptance of proposal from ECE Services for auger borings at the Chestnut Hill Landfill in the amount of $2,490

v) 1^st Reading of Ordinance amending the FY2006-07 budget in the amount of $2,490 for landfill borings

w) Approval of reduction of financial assurance to the Tennessee Department of Environment and Conservation for Crossville Sanitary Landfill from $952,537 to $929,476

x) Approval of annual price contracts for FY2007-08 as tabulated with the following recommended vendors:

(i) Fire Department Uniforms – Kay Uniforms (2 year contract)

(ii) Police Uniforms and Leather Accessories – Gall’s (2 year contract)

(iii) Publications – Crossville Chronicle

(iv) Chemicals

1. Caustic – Dycho

2. Zinc-Ortho Phosphate – Shannon Chemical

3. Ortho/Poly Phosphate – Sweetwater

4. Sodium Bisulfite Solution 3% - Brenntag Mid-South

5. Flurosilicic Acid – Dycho

6. Salt Pellets – Dycho

7. Granular Salt – Dycho

8. Polymer – Thermo-Dyne

9. Potassium Permanganate – Dycho

10. Sodium Permanganate – Brenntag Mid-South

(v) Street Signs – Vulcan Signs

(vi) Cold Mix – Hudson Materials Co.

(vii) Bulk Coarse Salt – Central Salt

(viii) Ready Mix Concrete – Sequatchie Concrete

(ix) Striping of City streets – England Striping

(x) Corrugated Metal Pipe – Tays Septic Tank

(xi) Crushed Stone – Plateau Crushed Stone

(xii) Roll Out Carts – Rehrig Pacific

(xiii) Light Bars – Police vehicles – Trucker’s Lighthouse

(xiv) Video Cameras – Police vehicles – Mobile Vision

(xv) Plastic Pipe

1. HPDE Type – Plateau Pipe

2. Class 200 PVC Pipe – REJECT ALL BIDS

(xvi) Waterline Supplies

1. Meters (City) – Kendall Metering Systems

2. Yokes (City) – G & C Water Works

3. Saddles (City) – Hughes Supply

4. Meters (Catoosa) – Hughes Supply

5. Corp stops, coupling for ¾” service tubing brass, ¾” Drisco Class 200 water TBG 500’coils, Smith Blair ¾” x 3” full circle clamp for service tubing, meter yokes, saddles, 2” Ford Setter w/ball valve, 17” x 30” plastic meter box, 15” concrete meter box, 18” plastic meter box, 1” Ford meter yoke 10” rise, (Catoosa) – G & C Waterworks

(xvii) Grinder Pumps

1. Hydromatic – Water & Waste Supply

2. Environment One – Field’s Engineering

(xviii) Paper and Plastic Products – Lebanon Chemicals

(xix) Tire Installation – Shadden Tire

(xx) Lab Analysis – Water Filtration – REJECTED

y) Approval of bids

i) Lasergrip Sight Pistols – Police Department – Dave’s Pawn Shop

ii) Western Shelter Sytems – Fire Department – Mallory Co.

iii) Firefighting Hose – Nafeco

iv) Fireworks – Pyro Shows

Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

ITEM #4 – 2^nd READING OF ORDINANCE ADOPTING A CODE OF ETHICS

A Code of Ethics is required to be adopted by ordinance by July 1. The proposed ordinance is the model ordinance prepared by MTAS and is in compliance with the requirements set by the General Assembly. As discussed in the April meeting, Council considered (1) whether or not to name the City Attorney as the Ethics Officer and (2) whether or not to allow gifts and gratuities up to a certain monetary amount. The City Manager recommended that the City Attorney be named as the Ethics Officer. He also recommended that gifts and gratuities be allowed up to $100.

A motion was made by Dean seconded by Councilman Wyatt, that the ordinance adopting a Code of Ethics be passed on second reading with the City Attorney being named as the Ethics Officer and that gifts and gratuities be allowed up to $100. Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

ITEM #5 – MATTERS RELATIVE TO INTERGOVENMENTAL COOPERATION AGREEMENT FOR EMERGENCY COMMUNICATIONS

A revised Intergovernmental Cooperation Agreement for Emergency Communications was presented for consideration. It was recommended by Councilman Duer and the City Manager.

A motion was made by Councilman Duer, seconded by Mayor Graham, that the Intergovernmental Cooperation Agreement for Emergency Communications be approved. Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

ITEM #6 – MATTERS RELATIVE TO LAKE TANSI POA

A letter from the Lake Tansi POA was presented for consideration. The POA Board made a request to purchase 10,000 gallons per day sewer capacity for a one-time fee of $100,000 and a usage fee equal to the City’s normal 1,000 gallon per day fee. (A copy of this letter is attached and made a part of these minutes.) Ed Yoder and David Sutton were present to represent the Lake Tansi POA. They estimated that the amenities proposed for connection to the sewer system are those that cause the most problems to the water pollution due to the age of their systems and facilities. A $1,000,000 federal grant has been obtained to be used for studies on the viability of a sewer system in Lake Tansi, but is expected to take some time. South Cumberland Utility District (SCUD) has started working on long-range plans, but the need is more immediate than they are able to provide. Councilman Wyatt asked if Lake Tansi had made any plans for a package plant to solve their problems. Mr. Yoder said that no plans have been made and they don’t believe that the property owners’ association has the means or legal authority to put in a system. Councilman Wyatt re-iterated his position against extending the sewer outside the City except for churches and schools. Councilman Dean stated that he would be willing to assist them with the connection for the amenities. Councilman Duer expressed his concern about helping Lake Tansi and the precedence it might set for other requests to connect to the City’s sewer system from outside the City limits. Since the City is now trying to get approvals for sewer expansion, he did not believe that it made sense to use the current capacity for outside the City. Councilman Kerley stated some of the same concerns and added that he would want at least a pump station on the lake for future water needs. Mr. Yoder stated that some of their citizens were against the pump station, but that the Board did not want to dismiss the pump station as an option. Based on the concerns expressed, Mayor Graham stated that if the water supply were made available at some future time, there might be a possibility a majority of the Council would agree to provisions for sewer capacity.

A motion was made by Councilman Wyatt, seconded by Councilman Kerley, that the City not allow sewer capacity to the Lake Tansi POA. Roll call votes: Ayes-(3)Duer, Kerley, Wyatt; Noes-(2)Dean, Graham. Motion carried.

ITEM #7 – MATTERS RELATIVE TO PILOT TRAVEL CENTERS AGREEMENT

City Attorney Kenneth Chadwell presented a proposed agreement with Pilot Travel Centers on the Genesis Road project. If the agreement is approved, an ordinance must be adopted for work to be conducted beyond the fiscal year. Pilot Travel Centers estimate that this location will produce $4-4.5M in annual retail sales; 10-12 million gallons in fuel sales, and employ 45-60 employees with an annual payroll of $900,000-$1,000,000. A Wendy’s will be located in the facility. Both the City Attorney and City Manager recommended approval of the proposed agreement.

A motion was made by Councilman Wyatt, seconded by Councilman Dean, that

1. the contract with Pilot Travel Centers be approved; and

2. the ordinance authorizing an agreement with Pilot Travel Centers for road and utility improvements on Genesis Road beyond the current budget year be passed on first reading.

Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

ITEM #8 – MATTERS RELATIVE TO WATER SERVICES CONTRACT WITH FALL CREEK FALLS UTILITY DISTRICT AND SOUTH CUMBERLAND UTILITY DISTRICT FOR INTERNATIONAL LAND CONSULTANTS

A water services contract prepared by the City Attorney and Don Scholes, attorney for SCUD, was presented for consideration by Council. It has already been approved by the boards of Fall Creek Falls Utility District and South Cumberland Utility District. Mr. Chadwell stated that he also represents International Land Consultants. The agreement calls for a capacity fee of $175,000 being paid by the developer to the City on or before January 1, 2008. (A copy of the agreement is attached and made a part of these minutes.)

Councilman Wyatt expressed concerns about the agreement to furnish water without a specific capacity amount. It was pointed out that the agreement states that the Purchaser’s demand cannot exceed the City’s capacity to furnish potable treated water with all current purchasers being guaranteed first. Mr. Vincent stated that since they will be paying $1.64 to the prison for water supply and the price through SCUD and the City will be $3.14, it can be assured that they will maximize purchasing the water from the prison supply. However, it was agreed that a cap of 10,000,000 gallons per month could be included in the agreement.

A motion was made by Mayor Graham, seconded by Councilman Duer, that the Water Services Contract with Fall Creek Falls Utility District and South Cumberland Utility District, subject to a cap of 10,000,000/gallons per month, be approved. Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

ITEM #9 – MATTERS RELATIVE TO CUMBERLAND COVE DEVELOPMENT

a) The Bluffs at Cumberland Cove, LLC agreement – This agreement was prepared by City Attorney Kenneth Chadwell to formalize the arrangements discussed at a previous meeting. The waterline will follow the route as originally planned so all references to alternative lines will be deleted.

b) 1^st Reading of Ordinance authorizing agreement with The Bluffs at Cumberland Cove, LLC with services and responsibilities extending beyond the current budget year. Crossville City Charter requires the passage of an ordinance to allow payments extending beyond the current budget year. An irrevocable bank letter of credit will be required for collateral. It was pointed out that no additional pump stations will be required for the water line.

c) Stigall Engineering Associates contract – The proposed contract provides engineering services for the Cumberland Cove development project at a cost of $36,500.

d) 1^st Reading of Ordinance authorizing payments for contracts with Stigall Engineering Associates for engineering and design services beyond the current budget year. Crossville City Charter requires the passage of an ordinance to allow payments extending beyond the current budget year.

A motion was made by Councilman Wyatt, seconded by Councilman Dean, that the agreement with The Bluffs at Cumberland Cove, LLC. be approved with additions and deletions as discussed. Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

A motion was made by Councilman Wyatt, seconded by Mayor Graham, that:

1. the Ordinance authorizing an agreement with The Bluffs at Cumberland Cove, LLC be passed on first reading;

2. the contract with Stigall Engineering Associates for engineering services be approved; and

3. the Ordinance authorizing payments to Stigall Engineering Associates beyond the current year be passed on first reading.

Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

(At 7:00 p.m. the regular meeting was recessed and the Beer Board convened.)

BEER BOARD

Jodie Carlon White dba Mountain Manor

An application was received for an on-premise beer permit from Jodie Carlon White dba Mountain Manor located at 426 Sparta Drive. This is the former location of St. Alphonsus Church and will be operated as a banquet facility.

A motion was made by Councilman Duer, seconded by Councilman Dean, that an on-premise Beer Permit be issued to Jodie Carlon White dba Mountain Manor. Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

(At 7:02 p.m., the Beer Board was adjourned and the regular meeting was re-convened.)

ITEM #10 – CITY ATTORNEY’S REPORT

· A settlement agreement with South Cumberland Utility District which includes a release of all claims was presented for approval. The agreement was prepared by Don Scholes, attorney for SCUD.

A motion was made by Councilman Dean, seconded by Councilman Duer, that the settlement agreement and release of all claims with South Cumberland Utility District be approved. Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

· MPact – There has been no additional contact with the bond attorney since the first part of April. However, the City Attorney and City Clerk recommended waiting a little longer to see if the settlement could be concluded.

ITEM #11 – CITY MANAGER’S REPORT

Dr. Miller presented the monthly revenue charts for local option sales tax and wholesale beer tax. The sales tax was up slightly from the previous year, but the wholesale beer tax was down less than $250 from the previous year.

Dr. Miller presented a request from John Keigans dba Highland Aviation for deferral of the $650 monthly rent and the fuel flowage fees for at least six months. If approved, he would expect to add $100 to his monthly rent in November 2007 until the deferred amount is reimbursed. The City Manager and Airport Committee recommended that the deferral be approved if repayment will be made in one year. He has agreed to make the repayments within that period.

A motion was made by Councilman Wyatt, seconded by Councilman Dean, that the request of John Keigans dba Highland Aviation be honored if repaid within one year. Roll call votes: Ayes-(4)Dean, Duer, Kerley, Wyatt; Noes-(1)Graham. Motion carried.

With his vote, Mayor Graham reported that he voted no due to his opinion that this request would be considered a loan and be similar to an non-compliance audit finding in 1996 as follows “According to Article 2, Section 29, of the State of Tennessee Constitution, it is unlawful for a city to give credit or give loans to or in aide of any person, company, association, or corporation unless the assent of a majority of the qualified voters approve the credit or loan to any person, association, or corporation.” Consequently, it was his opinion that the City would receive a non-compliance finding on the matter.

ITEM #12 – MATTERS RELATIVE TO ACTUARIAL PROPOSALS FOR GASB 45

The following proposals were received to project potential costs for post-retirement benefits as required by GASB 45:

Milliman Consultants & Actuaries, Dallas, TX $ 8,000

BPS&M, a Wells Fargo Company, Brentwood, TN $10,000

Acuff & Associates, Inc., Brentwood, TN $ 4,000

The proposal of Acuff & Associates, Inc. was recommended by the City Manager and Finance Director for acceptance.

A motion was made by Councilman Duer, seconded by Mayor Graham, that the proposal of Acuff & Associates, Inc. be accepted to provide an actuarial study of post-retirement benefits as required by GASB 45. Roll call votes: Ayes-(5)Dean, Duer, Graham, Kerley, Wyatt; Noes-(0). Motion carried.

ITEM #13 – MATTERS RELATIVE TO FIXED BASE OPERATOR AGREEMENTS

1. The Airport Committee met on May 7 and recommended changes to the Minimum Standards for Air Charter and Taxi Service Special Fixed Base Operators in regards to insurance. As recommended by the City’s insurance carrier, the insurance requirements would be changed to “Operator will purchase and maintain an aircraft liability insurance policy with a combined single limit of $1,000,000 each occurrence and bodily injury for passengers of $300,000 per passenger, per occurrence”.

2. Harold Graham applied to the Airport Committee and City Council for approval as a limited fixed base operator to provide air charter services at Crossville Memorial Airport. Mr. Graham has been notified of this change and will be responding as to his intentions to continue his request. The Airport Committee has recommended approval.

The entire item was deferred for the City Attorney to discuss the matter with the insurance company and for a response from Mr. Graham on his application.

With no further business, the meeting was adjourned at 7:20 p.m.