Council and Board of Public Works Minutes

Board of Public Works and Safety March 28, 2012

City Council April 24, 2012

The Board of Public Work And Safety 

The Board of Public Works and Safety met in regular session at the Knox City Hall on Wednesday, March 28, 2012 at 9:30 AM CST with the following members present: Mayor, Rick Chambers; Clerk-Treasurer, Jeff Houston; Boardmember, Jim Collins and City Attorney, Dave Matsey. Boardmember Ed Blue was absent.

RE:  AMENDMENT TO THE AGENDA

Jim Collins made a motion, seconded by Rick Chambers to add Territorial Engineering pay application #5 to the agenda. Motion passed with Two (2) Ayes and No (0) Nays.

RE:  APPROVAL OF MINUTES

Jim Collins made a motion, seconded by Rick Chambers to approve the minutes as presented. Motion passed with Two (2) ayes and No (0) nays. 

RE:  STORMWATER PROJECT UPDATE

Don Bixby from Territorial Engineering gave an update on the stormwater project. Next week the line will be put in from the post office. After that curbs will be installed. Paving will start about April 16.

RE:  STORMWATER PROJECT – PAY APPLICATION #5

Rick Chambers made a motion, seconded by Jim Collins to approve pay application #5. Motion passed with Two (2) ayes and No (0) nays.

RE:  ASBESTOS INSPECTION – MARSH MANOR

Mayor Chambers said the Common Council awarded a contract with “Clean Air” of North Liberty for an approximate cost of $450.00 for the old Marsh Manor property.

RE:  WATER AND TAP FEES FOR 152 E. MOUND

Mayor Chambers said a leak occurred at a house on Main and used 120,000 plus gallons of water. There was no visible leaks detected after the weekend the meter was read again and another 22,000 gallons had been used.

The leak was underground and not visible or detectable and was not the result of the customer or contractor. In accordance with IC 8-1.5-3.5 the bill may be written off. The sewage bill can be estimated as what the average bill would be. Since there is already a tap that was paid for, no tap fee is going to be charged. The road cut and repair will be done by the City.

Rick Chambers made a motion to drop the water and sewer charges to a monthly average and further to waive any tap and road cut fees. Jim Collins seconded the motion. Motion passed with Two (2) ayes and No (0) nays.

RE: SUPERINTENDENTS REPORT

Street Superintendent, Jeff Borg said his department has replaced all the stop signs. Next year they will start replacing the regulatory and warning signs. All the new signs are tagged and inventoried.

Wastewater Superintendent Kelly Clemons has been checking to make sure down spouts are not tied into the sewer system. Several letters have been sent to violators. They are cleaning out the old drying bed where they dump the vactor out. That is set up now so it leaches back into the system. There is a need for a new mower at the plant. She has located one at the John Deer Dealership for $7,000.00. Kelly will get three quotes for a comparable mower.

Rick made a motion, seconded by Jim Collins for Kelly to spend up to $7,000.00 for a mower. Motion passed with Two (2) ayes and No (0) nays.

Mayor Chambers noted that a lawsuit has come against the dog kennel and all entities using dogs trained there including Knox. The lawsuit is claiming the dogs aren’t properly trained. City Attorney Matsey is answering the lawsuit, but some changes may need to be made in the future.

There being no further business to come before the board at this time, the meeting upon motion was duly adjourned.

                                                                  ______________________________________

                                                                                        Rick Chambers, Mayor

Attest:________________________________________

            Jeff Houston, Clerk-Treasurer

CITY COUNCIL

The Common Council of the City of Knox met in regular session on Tuesday April 24, 2012 at the Knox City Hall at 7:00 P.M. CST with the following members present: Mayor, Rick Chambers; Clerk-Treasurer, Jeff Houston; Councilmembers, Jeff Berg, Linda Berndt, Ron Parker, Don Kring, Greg Matt; and City Attorney, Dave Matsey. 

RE: APPROVAL OF MINUTES

Minutes of the previous meeting were mailed to the Councilmembers prior to the meeting for their review. Greg Matt made a motion, seconded by Jeff Berg to accept the minutes as presented. Motion passed with Five (5) ayes and No (0) nays.

RE: CITIZEN COMMENTS

Citizen Gary Hignite came before the board with a complaint about too many cats at a house near him and trash piled on the property. Mayor Chambers said that he has notified the animal control officer and that the animal ordinance stipulates that only four animals of any kind are allowed at any home. He will ask the police to watch the property.

Citizen Virginia Thomas also came before the board. She said she had heard that the city was contemplating installing some street lights on Corey Drive. She said she had taken a poll of the home owners on the street. Of the 17 families, only 3 wanted lights and 14 didn’t. She was concerned that it would draw teens and other people to the area at night. Mayor Chambers said the city is still looking into the costs and support for locating lights on Corey Drive.

RE:  INDUSTRIAL PARK ACCESS GRANT

Charlie Weaver, Executive Director of the Starke County Economic Development Foundation came before the board to announce that Starke County has received a $503,000.00 grant to improve access to the Knox Industrial Park from the U.S. Department of Commerce’s Economic Development Administration. The grant would partially fund the State Road 8 and County Road 300 East (Klockner Drive) intersection upgrade project. $400,000.00 will be paid for by the County Commissioners Fund and $104,000.00 will be contributed by the Starke County Economic Development Foundation.

Preliminary environmental work has already begun. The object of the project is to improve truck and delivery access to the Starke County Rail Park and thus help attract additional industry to the area. Total cost of the project will be over one million dollars.

RE:  RESOLUTION #866 –CONFIRMING RESOLUTION FOR ECONOMIC REVITALIZATION AREA FOR PROPERTY AT 1001 W. CULVER

Ed Volk, attorney representing the new owner of the industrial property at 1001 W. Culver Road presented confirming Resolution #866 to the Council.

Greg Matt made a motion, seconded by Linda Berndt to approve Resolution #866 by title only. Motion passed with Five (5) ayes and No (0) nays.

CONFIRMING RESOLUTION #866

WHEREAS, the Common Council of the City of Knox, Indiana, approved Declaratory Resolution Number 865 at its regularly scheduled meeting held April 10, 2012; and,

WHEREAS, said Declaratory Resolution designated a parcel of land in the City of Knox, Starke County, Indiana, commonly known as 1001 W. Culver, as an Economic Revitalization Area pursuant to Indiana Code 6-1.1-12-1, et sew.; and,

WHEREAS, a copy of the legal description and map of the area designated as an economic revitalization area are on file with the Starke County Assessor’s Office and can be viewed during normal business hours; and,

WHEREAS, the Common Council has on the 24^th day of April, 2012, conducted a hearing for the purpose of considering all remonstrance’s and objections to the Declaratory Resolution designating an Economic Revitalization Area; and,

WHEREAS, the Common Council has heard all of the evidence regarding the designation of an Economic Revitalization Area as set forth in Declaratory Resolution Number 865.

NOW, THEREFORE, BE IT RESOLVED by the Common Council of the City of Knox, Indiana, that Resolution Number 865 is hereby confirmed in its entirety.

BE IT FINALLY RESOLVED that the parcel of real estate in Knox, Starke County, Indiana, is hereby designated as Economic Revitalization Area and that the site described in Exhibit A to Declaratory resolution Number 865 is declared an Economic Revitalization Area within the meaning of I.C. 6-1-.1-12.1-1 (1) and I.C. 6-1.1-12.1-2.5.

ADOPTED this 24^th day of April, 2012.

Knox Common Council:

__________________________ ___________________________________

__________________________ ___________________________________

__________________________

Attest: __________________________________

Jeffery J. Houston, Clerk-Treasurer

RE: RESOLUTION #867 APPROVING TWO STATEMENT OF BENEFITS FOR TAX ABATEMENT BY SELECTED FUNITURE, LLC.

Attorney Volk presented Resolution #867 for consideration by the Council. City Attorney Matsey asked that the paperwork be amended to reflect that the company is an LLC and not Inc. This change was then entered. Greg Matt made a motion, seconded by Ron Parker to approve Resolution #867 by title only. Motion passed with Five (5) ayes and No (0) nays.

RESOLUTION APPROVING

TWO STATEMENTS OF BENEFITS

FOR TAX ABATEMENT FILED

BY SELECTED FUNITURE, LLC

(1001 W. Culver Road, Knox, Indiana)

RESOLUTION #867

WHEREAS, the Knox Common Council of April 10, 2012, adopted Resolution Number 765 finding and declaring an Economic Revitalization Area within the City of Knox, Indiana, located at 1001 W. Culver; and

WHEREAS, Selected Furniture, LLC, the petitioner herein, has filed with this Council two Statements of Benefits on the forms provided by the Indiana State Board of Tax Commissioners and has provided this Council with a presentation in support thereof; and

WHEREAS, this Council is satisfied that the Statements of Benefits meets with the requirements of law.

NOW THEREFORE BE IT RESOLVED:

Section 1. That the matters and things recited in the preamble hereof are hereby adopted and mad a part of this Resolution by incorporation and reference as if repeated in full.

Section 2. That the Common Council of Knox hereby determines:

A. That the additional number of individuals who will be employed, to-wit: twenty-five (25), the annual salaries of those individuals, to-2it: Three Hundred Seventy-Seven Thousand Dollars ($377,000.00), and that property as described in the Statements of Benefits are benefits which can be reasonably expected to result from the proposed Project.

B (1). That the estimate of the value of the new manufacturing equipment, $75,000.00, is reasonable for a project of this nature.

B (2). That the estimate of the value of the new IT equipment, $75,000.00, is reasonable for a project of this nature.

C. That the estimate of the value of replacement or the value of replacement or improvements to roof, office and docks, $300,000.00, is reasonable for a project of this nature.

D. That the benefits described justify the deductions which will occur in tax abatement for this project.

E. That as a result of the above referenced Resolutions, the deduction to which the petitioner, Selected Furniture, LLC, is entitled to is ten (10) years in the case of real estate and five (5) years in the case of new manufacturing equipment and IT equipment.

F. That the location of the property is within the Knox Economic Revitalization Area.

G. That the Statements of Benefits filed by the petitioner, Selected Furniture, LLC meet the requirements of this Council and should be approved as submitted

H. That this grant of approval and the deductions referred to herein, are subject to the report and oversight provisions as required by law.

Section 3. The Common Council hereby accepts and approves the Statements of Benefits of the petitioner, Selected Furniture, LLC, dated April 17, 2012, and hereby authorizes the signature thereof, by the President of this Council and the attestation thereof by the City Clerk Treasurer.

Section 4. By acceptance of the provisions of this Resolution, the Petitioner, Selected Furniture, LLC, agrees to repay any taxes abated by this resolution in the event Selected Furniture, LLC, within ten (10) years in the case of real estate and five (5) years in the case of new manufacturing equipment, of the date of this Resolution, ceases to do business at the location identified above or substantially fails to meet its estimate of employees and salaries as a result of the proposed project.

Section 5. This resolution shall be in full force and effect after its adoption by the Knox Common Council.

DATED this 24 day of April, 2012.

Knox Common Council

By:_________________________________ By:_____________________________________

By:_________________________________ By:_____________________________________

By;_________________________________ By:_____________________________________

Attest:___________________________________

Jeff Houston, Clerk-Treasurer

Approved by me this 24 day of April, 2012.

__________________________________________
Rick Chambers, Mayor of Knox, Indiana

Attest:________________________________________

Jeff Houston, City Clerk Treasurer

City of Knox, Indiana

RE: SELECTED FURNITURE RELOCATING TO 1001 W. CULVER ROAD

Tommy Shelef, Managing Director of Selected Furniture discussed the decision by his company to re-locate to Knox.

By locating in Knox the company plans to add 25 jobs initially with an eventual total of workforce of perhaps 150. The company will invest over a million dollars to purchase, renovate and equip the 201,000 square foot industrial facility.

Selected Furniture makes furnishings for the hospitality industry, including table top and bases, booths, chairs and bar stools. Their customers include well known chains such as KFC, Burger King and Hyatt Hotels.

RE: LEGISLATIVE UPDATE – JIM ARNOLD

State Senator Jim Arnold passed out an informational outline and explained what was accomplished during the last session of the Indiana legislature. Two issues dominated the session most of the year. The first was “Right to Work” and the other was the smoking ban. Senator Arnold said he argued against the “Right to Work” legislation saying it wasn’t right to benefit from union collective bargaining and representation without paying for it. He also was not happy with how watered down the smoking ban was, though he ended up voting for it. An anti-nepotism bill and inheritance tax phase out were also passed.

Senator Arnold explained what has been done with the over half a billion dollars that were discovered by the state during recent audits. Two hundred million has been distributed to local governments. Eighty million has been spent to fund full time kindergarten and the rest has been kept as a state reserve.

RE: TOLL BROTHERS COMPLIANCE OF BENEFITS CF1

Charlie Weaver gave a history of Toll Brothers integrated systems since they located in Knox in 2006. He explained that the company originally planned to spend about 10 million dollars on the facility but has actually invested about 15 million. They had planned to hire as many as 350 employees, but the bottom fell out of the housing market.

Brian Trappe, plant manager updated the Mayor and Council on future plans for the site. They currently have 22 full time people and 12 temps. They have added a panel line and weighing machinery in the shipping yard. Toll Brothers has also started building for third parties not under the Toll Brothers name.

Greg Matt made a motion, seconded by Jeff Berg to find that Toll Brothers is “in substantial compliance’ and to approve the abatement. Motion passed with Five (5) ayes and No (0) nays.

RE: GENERAL FUND AND WATER FUND STUDY

Representatives of H.J. Umbaugh and Associates, John Julien and A.J. Demspaugh handed out reports on the general fund and water utility fund for the city.

Several options were discussed to either bring more revenue into the general fund or to cut expenditure from the general fund. Water rate increases were also discussed. A short discussion took place concerning charging for storm water run off.

The consultant will make final recommendations to the city soon. No official votes or actions were taken.

RE: ORDINANCE #1125 – RAINY DAY FUND

City Attorney Dave Matsey explained that the state requires that the rainy day fund be established by an ordinance and not a resolution for cities. Ordinance #1125 also states that the undistributed supplemental local income tax funds be deposited into the fund.

Don Kring made a motion seconded by Linda Berndt to accept Ordinance #1125 by title only. Motion passed with Five (5) ayes and No (0) nays.

Ron Parker made a motion, seconded by Greg Matt to suspend the rules and have a second vote on Ordinance #1125. Motion passed with Five (5) ayes and No (0) nays.

Greg Matt made a motion, seconded by Jeff Berg to approve Ordinance #1125 for 2^nd reading. Motion passed with Five (5) ayes and No (0) nays.

Linda Berndt made a motion, seconded by Greg Matt to suspend the rules and have a third and final vote on Ordinance #1125. Motion passed unanimously with Five (5) ayes and No (0) nays.

Don Kring made a motion, seconded by Ron Parker to approve Ordinance #1125 for third and final reading by title only. Motion passed with Five (5) ayes and No (0) nays.

ORDINANCE #1125

AN ORDINANCE OF THE COMMON COUNCIL

OF THE CITY OF KNOX, INDIANA

RE-ESTABLISHING THE RAINY DAY FUND AND

AUTHORIZING THE RECEIPT OF

EXCESS CEDIT AND CAGIT FUNDS

WHEREAS, the Knox Common Council is authorized by IC 36-1-8-5 and IC 36-1-8-5.1 to establish a Rainy Day Fund for the City of Knox; and

WHEREAS, the Knox Common Council on February 8, 2008 established a Rainy Day Fund by Resolution Number 770; and

WHEREAS, the City of Knox has received from the State of Indiana previously undistributed 2011 and 2012 local income tax funds; and

WHEREAS, the City of Knox is authorized pursuant to IC 36-1-8-5.1 for CAGIT funds and IC 6-3.5-7-12.7 for CEDIT funds to transfer said funds to the Rainy Day Fund; and

WHEREAS the Knox Common Council has decided to re-establish the Rainy Day Fund by ordinance and authorize the transfer of said undistributed supplemental local income tax funds to the Rainy Day Fund; and

NOW THEREFORE, BE IT ORDAINED BY THE COMMON COUNCIL OF THE CITY OF KNOX, INDIANA, TO WIT:

SECTION 1. That the Code of Ordinances, City of Knox, Indiana, is hereby amended by adding Article VIII, Chapter 2, as follows:

Article VIIII. Rainy Day Fund.

Sec. 2-250. Creation.

There is hereby re-established a Rainy Day Fund pursuant to the provisions of IC 36-1-8-5 and IC 36-1-8-5.1.

Sec. 2-251. Fund Deposits.

The Rainy Day Fund may receive transfers and deposits of all unused and unencumbered funds allowed by law, including but not limited to funds under IC 36-1-8-5, IC 36-1-8-5.1, IC 6-3.5-1.1-21.1, IC 6-3.5-6-17.3, and IC 6-3.5-7-17.3

Sec. 2-252. Supplemental Deposits.

Supplemental distributions of County Adjusted Gross Income Tax (CAGIT) pursuant to IC 36-1-8-5.1 and County Economic Development Income Tax (CEDIT) pursuant to IC -6-3.5-7-12.7 shall be deposited by the Clerk-Treasurer into the Rainy Day Fund.

Sec. 2-253. Other Deposits.

The Common Council may designate such other sources as it may from time to time determine are appropriate to be deposited or transferred to the Rainy Day fund.

Sec. 2-254. Limitation on Transfers.

In any fiscal year, the City of Knox may transfer not more than ten percent (10%) of its total budget for the fiscal year adopted under IC 6-1.1-17 into the Rainy Day Fund.

Sec. 2-255. Uses and Purpose.

The Purpose of the Rainy Day Fund shall be to provide such funding as may be determined to be reasonable and necessary by the Common Council for the uses and purposes for which funds from the General Fund, the County Adjusted Gross Income Tax, and the County Economic Development Income Tax may otherwise be expended.

Sec. 2-256. Appropriations.

The Rainy Day Fund is subject to the same appropriation process as other funds that receive tax money. Before making an appropriation, the Common Council shall make a finding that the proposed use of the Rainy Day Fund is consistent with the intent of the fund as required by IC 36-1-8-5.1 (b).

Sec. 2-257. Interest Retained.

Interest earned on the Rainy Day Fund shall be retained by the Rainy Day Fund.

Sec. 2-258. Perpetual; Termination.

The Rainy Day Fund shall be perpetual until terminated by subsequent action of the Knox Common Council or by operation of law.

Sec. 2-259. Transfer Upon Termination.

Unless otherwise provided by law, upon termination of the Rainy Day Fund, any funds remaining in the Rainy Day Fund upon such termination shall be transferred to the General Fund of the City of Knox.

SECTION 2. All funds in the Rainy Day Fund created by Resolution #770 shall remain and be deemed funds of the Rainy Day Fund re-established herein.

SECTION 3. This ordinance shall become effective and be in full force and effect after its passage and approval by the Mayor.

PASSED AND ADOPTED by the Common Council of the City of Knox, Indiana, this 24 day of April, 2012.

COMMON COUNCIL:

-------------------------------------------------- ----------------------------------------------------------

Jeff Berg, President Linda Berndt

______________________________ ____________________________________

Donald Kring Greg Matt

----------------------------------------------

Ron Parker

Attest:___________________________________

Jeffery J. Houston, Clerk-Treasurer

PRESENTED by me to the Mayor of the City of Knox, Indiana on this 24 day of April, 2012, at 7:00 PM.

------------------------------------------------------------

Jeffery J. Houston, Clerk-Treasurer

ACCEPTED AND APPROVED by me this 24 day of April, 2012.

_____________________________________

Rick Chambers, Mayor

Attest:__________________________________

Jeffery J. Houston, Clerk-Treasurer

RE: HARVEST FEST – COMMITTEE REQUEST FOR $500.00 START UP FUNDS

Mayor Chambers suggested that the City give $500.00 to the Harvest Committee for start up funds. Ron Parker made a motion, seconded by Jeff Berg to give the committee $500.00 start up money from the economic development fund in edit. Motion passed with Five (5) ayes and No (0) nays.

RE: CITY ATTORNEY REPORT

City Attorney Matsey reported that the lawsuit concerning the use of the K-9 officer has been amended. Many of the cities have been removed from the complaint. Attorney Matsey is still working on this suit.

RE: CLERK-TREASURER’S REPORT

Clerk-Treasurer Houston reported the following items:

The property, auto and liability insurance has increased 7.4% to about $74,000.00. The loss ratio has improved but is still running about 70%. Deductibles have been increased to $5,000.00 for all property claims (other than auto or liability).

The Clerk-Treasurer’s office has been working on codification of ordinances and this is well on it’s way at this time.

The Stelrema bankruptcy has moved from chapter 11 (reorganization) to Chapter 7 (liquidation).

RE: MAYOR’S REPORT

Mayor Chambers reported the following items:

The City is looking into replacing the lift station on the South side of town by the fire station. This would cost about $188,000.00.

The sidewalk replacement program is progressing. Final applications and contractor registrations have been taken. A decision will have to be made soon on what to do at Dr. Damodarans office, since the sidewalk is different there. About or 6 applications were received.

The Clerk-Treasurer and Mayor went on a tour of the NIPSCO generating station last week. Kelly Clemons, Todd Gardner and the Mayor will attend another function May 10^th.

The City street paving has been completed for the Storm Water Project.

The fund raiser fish fry to raise money for the Starke County Fireworks raised over $1,000.00.

May 3^rd is the Prayer Breakfast from 7:00 am to 8:00 am.

RE: COUNCIL ITEMS

Jeff Berg and Don Kring recently toured the wastewater treatment facility. Jeff Berg contacted Mark Kelly INDOT LaPorte District Permit Inspector for the Knox Area. He e-mailed Jeff stating the following, “If you are going to hang a banner across a State or US Highway you need a permit, if you are hanging small banners or flags off of individual poles you need a permit, if you are hanging small banners or flags off of individual poles you don’t need a permit for that. The blocking off of a side street will not be a state issue”. The only time the state is involved is if the state highway is to be blocked. That would take a couple of weeks to get a permit.

Greg Matt noticed that the old Laundromat and Marsh Manor are up for sale Saturday. The other distressed building the City has been working on cleaning up or demolishing (the Mulligan building) has been sold.

RE:  VOUCHERS AND ALLOWANCES

The following properly filed vouchers (see Voucher Docket #12, Page #774, Voucher #9298- #9344 inclusive) were presented and approved.

There being no further business to come before the Council at this time the meeting upon motion was duly adjourned.

                                                                                       ____________________________________

                                                                                        Rick Chambers, Mayor    

Attest: _________________________________

            Jeffery J. Houston, Clerk-Treasurer