Eminence Kentucky-Minutes

The City Council of the City of Eminence, Kentucky met in a regular session on Monday, June 11, 2007 at 6:15 p.m. at the Eminence City Hall Council Chambers with Mayor Jim Petitt and the following members present: George Armstrong, III, Shawn Bright, Treva Browning, Kelly Mathis, Danny Meadows and Drane Stephens. Absent were none.

Mayor Petitt called the meeting to order at 6:15 p.m. Mayor Petitt introduced Mayor Kenny Baker of Smithfield and Jerry Clark, Eminence Ethics Board Representative.

Mayor Petitt stated we would commence the meeting with a public hearing on the Southern States zone change request from B-2 to I-2 for their property located at 760 Elm Street. William P. Croley, Attorney, representing Southern States stated that he was under the impression that our meeting tonight was for a vote only on the setting of a public hearing, not the hearing itself. Mr. Croley stated that due to this misunderstanding, one of their key individuals who can answer questions on safety and permitting is not present. Attorney Brammell stated the City must make a decision within 90 days of the recommendation from the planning and zoning commission or their recommendation would become the final approval. Attorney Croley stated that safety was one of the issues raised at the Board of Adjustments meeting and he would really like to have his safety expert present prior to a decision being made. Member Bright stated that he feels a decision can be made as safety regulations will be controlled by EPA. Remainder of Council was in agreement with Member Bright to proceed with the hearing.

Attorney Brammell reviewed the process for a zone change request with council stating that a zone map amendment request goes to the Planning Commission for recommendations and then to the appropriate legislative body for final decision. In this case, as the legislative body, we can make a decision on the hearing record of the planning commission or make a decision based upon our on hearing. Member Meadows asked if more notice is required for an I-1 zone change request to the surrounding property owners. Attorney Brammell stated the same amount of time is required regardless of the zone. Mayor Petitt stated the hearing should proceed.

Attorney Croley presented the City with a certified disc and minutes from the Planning and Zoning Commission meeting where their request was discussed. Attorney Croley stated that Southern States has been in business in Eminence for over 40 years and has sold propane gas for many years at this location prior to planning and zoning. Mr. Croley stated that Southern States does not want industrial activity and has agreed not to do industrial activities. They just want to enhance and expand their current business including LP gas services. They currently have three relatively small tanks. Attorney Croley stated he has reviewed the comprehensive plans and zoning ordinances from 1991, 2000, and 2006 with no mention of gas in a B-2 zone, with it only being listed in an I-2 zone which has resulted in the request for a zone change. Southern States is only wanting to add one 30,000 gallon tank and have agreed to a Section 390 which he feels lawfully binds and commits them from doing any of the things in the I-2 zone as documented and agreed to by them. Attorney Croley stated Planning and Zoning has stated that this property was zoned incorrectly when zoning was initiated.

David Huff, Manager at Southern States Eminence addressed council stating that they have been selling gas since the mid-60’s servicing 1,000 tanks in Henry County. They currently have three tanks - 6,000, 10,000, and 12,000 gallons. The delivery tankers can deliver 9,000 to 9,500 gallons at a time; however the legal capacity on filling the tanks is at 85% making Southern States’ true capacity at 24,000 gallons. Due to this they can only hold two tankers of gas and with three bobtails delivering two tanks per day per truck they are using 1-1/2 days of storage each day they deliver. This shows the problem with supply and demand. Mr. Huff stated that between November 1st and March 30th of each year gas is rationed 25% of the time in some form or fashion to the dealers. Their biggest supplier is out of Ohio, who did experience problems with delivery last year. A 30,000 capacity is the industry standard and when this tank became available from the Frankfort store it was purchased by them and moved to the Eminence site. It is not hooked up pending the zone change approval. Member Meadows asked how many propane tanks are in Eminence. Mr. Huff stated that most of their customer base is in Pleasureville and the eastern part of the County. Member Meadows asked if the Campbellsburg location could be used since it is already the correct zone. Mr. Huff stated that it is not open year round which would create a problem and that the delivery personnel are stationed in Eminence; however these are questions that they would like for their expert, Mr. Willard to answer. Mayor Petitt asked if Oldham County residents are also serviced out of the Eminence office. Mr. Huff stated they were as well as part of Shelby County. Member Browning asked how long it takes to get their supply back from the distributors. Mr. Huff stated they have always been given high priority due to their smaller storage capacity. Member Stephens stated that Southern States is not far from the industry standard with the current three tanks capacity totaling 28,000 gallons. Mr. Huff agreed, but stated they cannot hold three tanks on delivery with the three different tanks and they could with the 30,000 gallon tank. Member Mathis asked why Shelby County and Oldham County do not have their own tanks. Mr. Huff stated that these stores never went into this area of the business and that stores are clustered, with the Oldham County store being in the same cluster with Eminence. Member Mathis asked how many drivers are at the Eminence store. Mr. Huff stated three with them having five certified deliverers. Member Stephens asked if they were the only supplier. Mr. Huff stated no, but if the customer has a Southern States tank they must use Southern States as the supplier.

Attorney Croley stated that if they could receive a text change for the current B-2 zone they would be happy with that. Mayor Petitt asked what would keep Southern States, if the zone change is approved, from adding an 80,000 tank later on. Attorney Croley stated they would have to come back for approval as they have agreed not to increase their capacity amount above 58,000 gallons. Attorney Brammell stated that if a Section 390 is imposed on Southern States they must meet all the requirements.

Member Stephens asked if they intend to keep their other tanks. Mr. Huff stated yes they did intend to keep all the tanks. Member Mathis asked how much of Southern States’ net income is from propane sales and how many employees they have. Mr. Huff stated between 60-70% of their income is from propane sales and they have eleven fulltime employees with an estimated ½ million total payroll. Member Mathis asked if any increase in personnel is anticipated with the installation of another tank. Mr. Huff stated no increase is anticipated at present with this request being made to make them more efficient with it actually being a cost to Southern States to install another tank.

Various other discussions held including concerns about safety, concerns about Southern States possibly losing income, possible other locations, and the effect this would have for possible development in the area if a zone change is allowed in this area to I-2. Mayor Petitt stated that we already have an industrial area and he doesn’t want it spread it out all over town. He wants our businesses to succeed but the quality of life for the residents of Eminence is his priority.

J. T. Stinson was present representing the Board of Directors of Southern States. Mr. Stinson stated moving the tank to Campbellsburg is not feasible for several reasons including the fact they are only open a few months out of the year. There is no guarantee that the Campbellsburg store will even be in existence in a few years as they currently lose money at this location. Mr. Stinson addressed the safety concern stating that we have three of the most dangerous situations in town on Main Street at our gas stations. Gas stations are not required to have vapor recovery. Southern States employs their own employees and can control their action and training while there is no control at all with employees delivering gas to the stations in town. Mr. Stinson stated he does not believe developers will ask for the LP storage capacity of Southern States. All of our current factories are surrounded by residential areas and trying to keep them separate does not make sense as they are not asking to do industrial business. Mr. Stinson stated that the addition of the 30,000 gallon tank will not make any more danger and they will have to update to any and all new regulations. He does not believe this is a development factor at all and does not believe expanding with more capacity and continuing with the same business they have done for 30-40 years should be a problem. Mr. Stinson stated that many homes in the area only have a choice between electric and LP gas. Mr. Stinson requested that the City seriously consider what they would be doing for the City and County economically should they deny this zone change request. The zone change request is for Southern States only and would not go with the land. Attorney Croley requested the Council grant another hearing and stated Southern States would be content to go with a B zone if the text of the ordinance could be changed. Member Stephens asked if the zone change would be required if they only used the 30,000 gallon tank and not the other tanks. Mr. Huff stated the other tanks are certified and in use with this not being a feasible option.

Magistrate Gunnell stated this is an important issue for Southern States and the citizens. He is on the economic development committee, but feels we need to consider the health and safety of the citizens and that most of the business does not involve Eminence citizens. He also stated he feels other cities keep propane out of their cities and even though an explosion is rare, it could happen. Barry Taylor read the comprehensive plan for this area for Magistrate Gunnell with Mr. Gunnell stating he feels we need to keep with the plan. Magistrate Gunnell stated he feels changing to I-2 in this area is problem as it will allow other industrial development to go in at this area and he is still concerned with the health and safety issue.

Other individuals speaking against allowing the additional 30,000 gallon tank in this area were Norm Wood, Brad Puckett, Fred Downey, Joyce Puckett, Barbara Jones, Howard Roberts, and Barry Taylor – citing safety concerns, property value concerns, and concern with other industrial development in the area if the zone change is allowed. Barry Taylor, who is on the Planning and Zoning Commission, stated he feels the Commission made an error in recommending this zone change and that this would allow other I-2 businesses to locate adjacent to this which would be outside the city limits with no control by the city. Mr. Stinson stated the comprehensive plan is for future planning, not the current business which is what they are asking for the zone change on and asked the City to make the decision based on logic instead of how many people are present at the meeting against the tank, because if they had known the hearing was tonight they could have brought people who are for the tank.

Attorney Brammell explained the City’s options as pertains to this zone change request. Further discussion followed. Motion made by Member Bright to deny the zone change for Southern States from B-2 to I-2 for their property located at 760 Elm Street based upon on the location not being appropriate for an I-2 zone and the request not being consistent with the comprehensive plan. Attorney Brammell advised that a second would preclude any further evidence later and that we cannot come back to the issue. Motion seconded by Member Browning. On a call of vote by Clerk Doane, all members present voted “Yea”. Motion carried unanimously.

Subject: County Business – Magistrate Wayne Gunnell reviewed a drawing of the proposed senior citizen building to be located on Highway 421 with anticipated construction to start within 30-60 days. A new health department and some housing for Cedar Lake Lodge will also be at this location. Mayor Petitt stated he has heard that a swimming pool is scheduled for this location also. Magistrate Gunnell stated there are no current plans, but it could be a part of the very broad span for the future.

Mr. Gunnell stated that the County is also proposing a courthouse renovation costing between 25,000-30,000 for new air conditioning and also for additional storage for the Circuit Clerk’s office within the next 30 days.

Mr. Gunnell reported that he had incorrectly told the City that solid waste can be taken to the County Barn anytime and that it can only be taken at specific times.

Mr. Gunnell reported he enjoyed the Music on Main and saw more people in town than he has in a long time and that this is excellent for the City.

Subject: Minutes – The minutes of the previous regular session held on May 14, 2007 and the special session minutes held on May 30, 2007 were reviewed. No additions or changes were made by council, so Mayor Petitt stated they would stand approved as presented.

Subject: Music on Main Update – Mayor Petitt expressed his appreciation to Shawn Bright, George Armstrong, Kelly Mathis and the Public Works Department for all their hard work to make the Music on Main a success. Our next event will be on the second Friday of July with us continuing with the concerts through September. The Police Department made their presence known with no reported problems. Member Mathis reported on the event stating it was a wonderful night with a wide diverse group of people present. The first event just held will be the hardest and most expensive with the cost to date being approximately $1,313.00 with some additional invoices still out. Ms. Mathis reported that next month’s event would feature the Ron Jones Quartet, a jazz trio out of Louisville. The bands are costing $900.00 each. Ms. Mathis also thanked the Public Works Department for their assistance. Mayor Petitt stated the Renaissance Faire people were also here and played music as well. Member Mathis stated that most expensive part of this is the bands and the advertising.

Subject: Second Reading Budget Ordinance – Attorney Brammell held the second reading of the fiscal year 2007/2008 Budget Ordinance. Motion made by Member Stephens and seconded by Member Mathis to adopt the budget ordinance as read. On a call for vote by Clerk Doane, all members present voted “Yea”.

Subject: Police Department Report – Major Kevin Kemper reviewed the monthly activity report with council.

Subject: Property Ordinance Enforcement Report – Major Kemper and Chief Duncan gave a status report on the properties reviewed for violation during the month of May. Mayor Petitt stated we have been mowing one property at 396 Shadyview Drive and will be going before a judge on June 14th for a judgment on this property. It was reported that a citation would be given to at least one property owner who has failed to comply after numerous requests.

Subject: Public Works Department Report – Public Works Director William Smith reviewed the public works department report with council. Reported that the Shawnee Road/Elmcrest water main extension is complete which provides a backup source of water in this area and also eliminates a dead end on the main. Mr. Smith reported that a project on North King Street to correct drainage problems in this area has been completed. Mr. Smith reported that he is working on getting paving done on West Owen Street and possibly North King Street. Member Bright reported that the work on Dobner Way solved the issue for the citizen who raised a concern. Member Stephens stated he has had a complaint from a Tolle Court resident about the road falling off due to the garbage truck in this area and requested Mr. Smith review this area. Mr. Smith stated he would be glad to do so, but stated he knew the concern and that the homeowner needs to ditch his property for drainage. Member Bright stated there is also a problem around a mailbox at 28 Zelcova. Mr. Smith reported that the new roller is doing an excellent job when hot mix is used for patching.

Subject: Administrative Office Report - City Clerk Sandra Doane reviewed the monthly administrative office report with council. Ms. Doane reported on the various receipts to date.

Ms. Doane reported on other activities she has participated in on behalf of the City of Eminence and other ongoing projects she is working on within her department. Ms. Doane also reported on her recent appointment on General Code’s 2007 Municipal Clerks Honor Roll. Member Bright congratulated her on this achievement.

Subject: Insurance Premium Tax Refunds – Attorney Brammell and Clerk Doane reported on the continuing requests being made for refunds on insurance premium tax. Attorney Brammell reported that the KRS statutes are a problem as no guidelines or timeframes are listed for refunds. Our ordinance is being requested all over the state as many cities are doing as we have done and are setting their own guidelines. If our ordinance were to be determined invalid, we could face a big problem. We do need to address the requests within 90 days or we could be subject to interest accruing. Several of the outstanding requests were discussed including one from Safe Auto for $8,130.00 and the ongoing one with United Healthcare which started out around $70,000.00. Council requested that Attorney Brammell respond to the companies we have not heard from after requesting additional information from them and that all mailing be sent certified to the insurance companies.

Subject: Fire Department Report – In the absence of Fire Chief Lucas, Member Treva Browning reviewed the monthly activity report with council. Reported that the department collected $41,142.00 for the Crusade which was $1,200.00 above last year’s total. Member Browning reported the continual siren should only be going off when citizens should take cover and that Gary will be checking into the problem with it going off at other times.

Subject: Community Center Report – Mayor Petitt reviewed the May Community Center activity report with council.

Subject: Mayor’s Update – Mayor Petitt stated that the owner of the bulk oil plant has informed him that Turf Concepts has been hired to do the final cleanup work at this property. The owner has hinted he might want to donate the property to the City for a park once it is cleaned up.

Mayor Petitt reported that Mr. Kallenberger is continuing to bring in dirt to get the large hole filled in at the old Big Henry Apartments.

Mayor Petitt reported that Chad Pearson has informed him that ground will be broke during the last two weeks of June on the Family Dollar Store.

Mayor Petitt reported that the Highland Renaissance Faire had a good opening weekend. They have 82 vendors this year as compared to 54 last year.

Mayor Petitt reported that the Garden Club has planted flowers in all of the empty barrels in the downtown area. We have also planted a few flowers in front of the Depot. The flowers were donated by Rose Hill Greenhouses.

Mayor Petitt reported he is still working on getting the streets striped downtown. We have not received anything firm yet, but hope to have it done by the end of June.

Mayor Petitt reported he had a visitor this past week looking to purchase a two acre track of land inside the Eminence city limits for an unnamed business. Three locations of interest were found with two of them being located on the edge of town, which would require annexation into the city limits.

Mayor Petitt reported that a planning and zoning meeting will be held on June 13, 2007 at the Henry County courthouse for a zone change request for the 34 acre site located on the north side of Eminence on Highway 55. The prospective buyers want to have the property rezoned from agriculture to a B1 or B2. If successful, they will then come to the City and request annexation. The plans involve two or more businesses in this area.

Mayor Petitt stated we need to hold an alcohol ordinance committee meeting of Members Armstrong, Stephens and Meadows, along with Chief Duncan, himself and Clerk Doane. Meeting set for Monday, June 18th at 8:00 a.m.

Mayor Petitt stated we need to hold a special called meeting to conduct a public hearing on the Municipal Aid Program and Local Government Economic Aid funds; hold a second reading of the revised alcohol ordinance; and review the current budget line item changes. Meeting date discussed with June 21, 2007 at noon being chosen as the best possible date, subject to change after Attorney Brammell checks his schedule.

Subject: Garbage Franchise Resolution – Council reviewed the revised garbage franchise resolution. September 4, 2007 at 9:00 a.m. was set for the bid opening with September 10, 2007 being set for council consideration of the bids and possible awarding of the franchise. Motion made by Member Meadows and seconded by member Stephens to adopt the resolution as revised for advertising of a garbage franchise. On a call of vote by Clerk Doane, all members present voted “Yea”.

Subject: Revised Alcohol Ordinance – Attorney Brammell held the first reading of a summary of a revised alcohol ordinance.

Subject: Drug Testing Policy – The current City drug testing policy was reviewed. The current policy requires all employees to be subject to random testing. It was discussed that this might be a waste of money and time. Council in agreement for Attorney Brammell to draft a revision to this policy for presentation at next month’s meeting; maintaining the required CDL testing, but to only require pre-employment, post accident, and reasonable suspicion for all other employees.

Subject: Louisville Gas & Electric Franchise – Mayor Petitt discussed a suggestion to impose a franchise fee on Louisville Gas & Electric as we currently have one on Kentucky Utilities and it doesn’t seem fair to only impose this on one utility. Member Armstrong suggested, and other council members agreed, postponing this discussion until next month.

Subject: Warrants - The warrants presented for payment were reviewed. Motion made by Member Bright and seconded by Member Mathis to approve the warrants for payment as presented. On a call of vote by Clerk Doane, all members present voted “Yea”.

Subject: Bud & Bonnie Goodlett Request for Jukebox @ Business – Mayor Petitt stated he received a message to take them off the agenda. Member Meadows asked if the problems at this business have been resolved. Member Armstrong, ABC Commissioner, stated he would give an update at next month’s meeting.

Mayor Petitt asked if any council member had anything they wanted to discuss. No one had anything else.

Subject: Closed Session – Motion made by Member Bright and seconded by Member Stephens to go into closed session to discuss a personnel matter which involves the possible appointment of an individual and to discuss potential litigation. On a call of vote by Clerk Doane, all members voted “Yea”. Closed session commenced at 9:35 p.m.

Subject: Easement and Donation of Property – Mayor Petitt stated that Bill and Lucille Wells and Tom and Janice Shroyer have requested to have the 10-12 foot easement the City is giving them on the property they are donating for a public parking lot made a part of the deed document. Attorney Brammell stated the grant of easement is from us with the deed being from them to us. Motion made by Member Meadows and seconded by Member Bright to authorize the Mayor to sign the easement to Mr. & Mrs. Wells and Mr. & Mrs. Shroyer on behalf of the City as discussed. On a call of vote by Clerk Doane, all members present voted “Yea”.

Subject: Policy Interpretation – Motion made by Member Armstrong and seconded by Member Meadows that from this date forward any new hire who has a City vehicle provided will only be allowed to travel to and from home a total of 40 miles round trip at the City’s expense and will be required to pay the City for any mileage over the 40 miles based on 15 miles per gallon for the gas at the going gas rate on the day the check is processed (normal payroll dates). On a call of vote by Clerk Doane, all members present voted “Yea”.

With no further business to be discussed, motion made by Member Armstrong and seconded by Member Meadows to adjourn. All members present voted “Yea”. Meeting adjourned at 9:50 p.m.

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