HomeMy WebLinkAbout08-21-1995coUNCIL PROCEEDINGS OF THE
COMMON cOUNCIL OF THE CITY
OF JEFFERSONVILLE, INDIANA
AUGUST 21, 1995
The Common Council of the City of Jeffersonville met in
regular session in the Multi-Purpose Meeting Room in the City-County
Building, jeffersonville, Indiana, at 7:44 P.M. on the 21st day of
August 1995.
The meeting was called to order by Mayor
Jr., with Clerk and Treasurer C. Richard Spencer
Mayor Parker welcomed all in attendance, asking all
Raymond J. Parker
Jr~ at the desk.
those present to
stand as Councilperson Bill Wolpert gave the invocation. He then
asked all those present to join him in the pledge of allegiance to the
f lag.
The roll was called and those present were Councllpersons
Bill Wolpert, Andrew Williams III, Donna M. Frantz, Peggy Knight
Wilder, Barbara Wilson, and Robert L. Potter.
Absent: Councllperson Steven R. Stemler.
Mayor Parker presented the minutes of the meetings of July
31, 1995 and August 14, 1995,, for consideration by the Council.
Councilperson Potter made the motion to approve the minutes as
presented, seconded by Councilperson Williams and carried unanimously.
Clerk and Treasurer Spencer presented the claim list for
consideration by the Council. Following all discussion, Councllperson
Potter made the motion to approve the claims as presented, seconded by
Council President Wilder and carried unanimously.
Mayor Parker asked for Council' approval to deviate from the
agenda and allow Department of Redevelopment Director Carrol Gowens to
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AUGUST 21, 1995
give a report regarding the Inner City Road. Council President Wilder
has sent a letter to the Council regarding the Inner City Road and the
need to make a decision with the prospect of new business in this
corridor. It is hoped to have the financial information in order for
the next meeting in order to take a vote. Director Gowens has
prepared the annexation documents asI requested and forwarded them to
the Council. This will be open to comment until this coming Friday at
which time the document will be put in final form by the end of the
month. The cost to provide city services to the three proposed
annexation areas will be 1.7 million dollars. There might be
additional improvements needed in the area of Allison Lane and Highway
62 and these costs will be included in Phase I. Director Gowens hopes
to have various financial data by the end of the month also. Engineer
Jorge Lanze explained major developers of the area are requesting a
letter from the City. Council President Wilder has sent a letter and
requests all members of the Council to also send a letter if they are
in agreement in moving forward with the Inner City Road. She is very
pleased that a major development is interested in locating along the
corridor. The next Council meeting will be Tuesday, September 5, 1995
at 7:30 P.M. Mayor Parker encourages the Council to take a vital part
in this as it will be a major economic boost to this City. There is
much interest in this area.
Ms. Jackie James presented a written report and pictures of
the Repair Affair which the City helped support. Ms. James explained
the concept of the project explaining 200 people worked that day. Ms.
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AUGUST 21, 1995
Lisa Thompson explained the contents of the report. Ms. James hopes
the City will consider help in 1996. This was not a charitable event
but an investment in the community. New Albany has requested a Repair
Affair for the Spring and Fall of 1996. Councllperson Williams
expressed appreciation for the follow up report as he does believe
this was a worthwhile investment and a worthy cause.
Mr. Terry Vaidik of Pastor Construction, Agent for Systems
Control, Inc. explained the location and the construction of a new
business (emmlssion control) in the Jeffersonvllle Industrial Park,
requesting tax abatement. Construction should begin about the first
of October. Councilperson Wolpert requests a yearly report be filed.
Mr. Vaidik agreed they would be filed. Councilperson Williams asked
if the construction would proceed
Mr. Vaidik said he would suppose.
President Wilder, saying this is
and will be an asset to the City,
without abatement approval to which
Following all discussion, Council
in an economic revitalization area
made the motion to Pass Resolution
No. 95-R-16, A Resolution Approving Statement Of Benefits For
Purposes Of Property Tax Abatement, seconded by Councllperson Potter
and carried unanimously.
Councllperson Frantz read aloud Resolution No. 95-R-17, A
Resolution Recommending Proposal By The City Plan Commission For
Amendment Of The City Zoning Ordinance With Regard To Penalties.
Attorney Glllenwater explained by passing this Resolution the Council
would be asking the Plan Commission to propose an amendment to the
Ordinance. He explained the procedure to enforce the established
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AUGUST 21, 1995
performance standards. Follwlng all discussion,
made the motion to pass Resolution No. 95-R-17,
President Wilder and carried unanimously. The
Councilperson Frantz
seconded by Council
next meeting of the
Jeffersonville Plan Commission will be in September and it will be on
the agenda.
Councilperson Wilson explained the need for and read aloud
Ordinance No. 95-OR-28, An Ordinance Amending 87-OR-4 and 95-OR-26
With Regard To Animals And Open Alcoholic Beverage Containers In The
Steamboat Days Festival Area. Following discussion, Councllperson
Wilson made the motion to suspend the rules for Ordinance No.
95-OR-28, seconded by Councilperson Frantz and carried unanimously.
Councilperson Wilson then made the motion to pass Ordinance No.
95-OR-28 on all three readings, seconded by Councllperson Frantz,
passing unanimously.
Council President Wilder noted Councilperson Stemler spent a
lot of time putting together the proposal from Arthur Anderson Co. and
she is sorry he is not able to attend this meeting. She would like to
move forward with the issue. All have had time to review the proposal
and this has been an ongoing lengthy experience and it is a difficult
decision on whether to proceed with an audit of the City's
self-insurance plan. It is Council President Wilder's personal
opinion to proceed and she asks all to consider the following points.
When the process began the Council was accused of using the insurance
plan as a political football. This was denied by those running for
political office, publicly stating it was important for the citizens
to know where their tax dollars were being spent, and whether the City
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AUGUST 21, 1995
was being overcharged for the services received. To vote against the
audit would be sending a message that the audit was politically
motivated. When the issue was origianlly raised the Council was
congratulated by the press, applauded by their peers, and commended by
the taxpayers. There were letters to the editor and phone calls
encouraging the action. Council president Wilder feels the citizens
of Jeffersonville have spoken and want this audit and they want change
in government. Concerns regarding the expense of the audit have been
voiced. Council President Wilder reminds the Council the taxpayers of
Jeffersonville each year fund the insurance plan over $600,000, this
means $.40 or more of the tax rate. If the Council does not fund the
audit they are telling the taxpayers they do not care where this money
is spent, who is spending it, and how much is being charged by the
firm that is spending the money. Council President Wilder further
stated if the Council does not support an audit the taxpayers can
legitimately ask what has happened to the fortitude and committment of
the Council and question if the original actions were motivited by
politics~ and if the Council has abandoned their commlttment to good
government accountability and ethics. Finally, Council President
Wilder feels the citizens can ask if the change of heart was motivated
by outside influence aimed at maintaining the status quo. She
believes this is an easy decision to make as nothing has changed since
the original vote to move forward, and asks for support of a full
audit of the insurance plan. She also reminds the Council,
Councllpersons Stemler and Wolpert put in a lot of time locating this
firm after looking at several firms. Turning down this audit would be
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AUGUST 21, 1995
going back to square one. It is important for the Council to know
what is going on for the future of the City's insurance plan. There
is a need, after five years, to know how healthy the plan is and if it
is being funded properly. Council President Wilder made the motion to
accept the Arthur Anderson Insurance Audit proposal, seconded by
Councilperson Frantz. Councllperson Potter has spoken with
Councilperson Stemler regarding the $21,000 fee which Councilperson
Potter feels is excessive. Councilperson Potter said Councilperson
Stemler did not feel all three sections of the audit are necessary.
Council President Wilder read the revised cost of each section. Most
of the Council had expressed a cost of $15,000 and Council President
Wilder does not feel this is that far off and feels it does not come
as that much of a surprise, or is excessive when the plan is funded at
$600,000. She does believe this is the healthiest way for the fund to
survive. Councllperson Wolpert also has talked with Councilperson
Stemler regarding the
Councllperson Wolpert
vote against it.
fee and feels it should be under $15,000.
does feel this is too much money and plans to
When Council President Wilder talked to
councllperson Stemler he indicated that Arthur Anderson would be the
best company to move forward with. It is not felt that Arthur
Anderson could do the audit completely for under $21,000.
Councilperson Wolpert stated there is no question this is a good
company, however a couple of police cars could be purchased for this
amount. Council President Wilder returned that a lot of police cars
could be bought with S600,000. Councilperson Wilson has talked with
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AUGUST 21, 1995
other Council members and does agree the audit should be done and is
in favor of an audit being, however she can not vote for S21,000.
Councllperson Williams would like to poll the Council for an
acceptable amount rather than kill the audit. Council President
Wilder said at this time the process would stop as all know how much
time has been involved in setting up the perimeters of this
investigation. Council President Wilder further stated she does not
feel this investigation can be done much less inexpensively.
Councllperson Williams encourages Council President Wilder to poll the
Council members for an agreeable amount, suggesting this be tabled.
He is in support and does not want to see it stopped for fear of
excessive cost. Councilperson Williams has met with the agency and
explained this is a full audit with regard to the kinds of questions
the Council has asked. A full audit can be up to six fiqures. The
type of people that do this kind of work are expensive. There is need
for looking at procedures and the audit can be used to benefit the
City. Councllperson Potter said when he talked with Councilperson
Stemler he indicated that S12,000 would be sufficient. Councilperson
Potter feels the money could be spent better in different ways and
that S21,000 is too expensive. Council President Wilder asked if
Councllperson Potter is in favor of the audit. Councilperson Potter
would not have a problem is the cost could get down to between $10,000
and S12,000. Council President Wilder does not feel it is too much
and also feels the Council is burying their heads in the sand as far
as the insurance goes. Councilperson Wolpert is in favor of the audit
at a cost of S12,000 to $14,000. Councilperson Stemler told
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AUGUST 21, 1995
Councllperson Wolpert $15,000. Councilperson Williams would agree in
the range of $15,000. Councilperson Frantz is comfortablee with the
audit and feels Councilperson Stemler has worked hard. He was asked
to do a Job and he did it and she is comfortable as it stands.
Councilperson Wilson will go as high as S15,000. She does wish
Councilperson Stemler was here to speak for himself, as he has
indicated this was high. Councilperson Frantz asked if any council
members have called Councilperson Stemler to eliminate any areas of
the proposal. Council President Wilder does not feel anything should
be eliminated and she feels Councilperson Stemler feels the same. He
expressed to her that Arthur Anderson would be the best firm to move
forward and this would be a very thorough investigation, however cost
was not discussed. Council President Wilder withdraws her motion,
will talk with Arthur Anderson and bring it back to the next Council
meeting. Councilperson Frantz withdraws her second. Council
President Wilder does feel Councilperson Stemler should be in
attendance for the vote. Councilperson Frantz encourages those with
suggestions for changes or deletions in the audit to contact
Councilperson Stemler before the meeting. Council President Wilder
would appreciate any comments for changes. Mayor Parker asked Agent
of Record Culpepper Cooper if he has any comments pertaining to the
discussion. Agent Cooper explained he brought his staff tonight to
demonstrate that Culpepper Group Inc. is not Pepper Cooper by himself.
He does understand the cost of an audit, and he does feel it is an
audit and gets offended when he hears the work investigation because
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AUGUST 21, 1995
he has never heard the Council authorize any investigation. He has
heard them authorize a committee to do an audit. Agent Cooper would
like to make a recommendation that
to the S15,000 range, as the point
employees, the Clerk Treasurer, and
self-insurance program to make sure
may bring the cost of $21,000 down
is to get the audit done for the
the fiscal body to understand the
it is actualarlly sound, that the
expenses being charged to it are proper and worthwhile and he is
totally in favor of that. Councilperson Frantz said if the documents
that have been requested over the past three years could be provided
to the Council this would eliminate the accounting firm from having to
obtain them so that some of the costs could be lowered. Agent Cooper
met with Councilpersons Stemler, Wolpert, Wllliams~ and the accounting
firm and agreed to provide any information to Arthur Anderson as a
third party with regard to this audit. He has never agreed to provide
individual Council members, who in his opinion have separate agendas,
information with regard to his business. Agent Cooper feels he is
going to do what Councilperson Frantz said only in a different way.
He then proceeded to introduce his staff giving titles and areas of
expertise. A lot of the services required are available through this
staff. What Agent Cooper would like to suggest is that if he is
allowed to work with the committee to try to provide enough help and
information that the cost can be lowered. If this cost cannot be
lowered Agent Cooper will donate the money above $15,000 to pay for
the audit as there is nothing in the audit that bothers him at all.
He can provide lots of leg work and lots of people to bring the cost
PAGE 10
AUGUST 21, 1995
down. If this is not agreeable he will provide the extra $6,000 as
this is an audit that should benefit him and his firm due to the
success of the Jeffersonvllle program. He is very pleased with the
choice of Arthur Anderson firm. He is also a business person and it
is impossible for him to stay in business if the words investigation,
and wrong-doing if things like this continue to surface. Also if
third parties, other than the committe call on his companies and
provide innuendoes there is something wrong. There have been quotes
in other papers in other cities and he would like to settle this
faster than the Council would as it is hurting his business and is
unfair to him as a businessperson. He would like to work with the
committee and Arthur Anderson and if he cannot provide the expertise
to lower the cost he will pay the extra cost. This is the best he can
do. Councllperson Frantz believes everything that has been requested
is public record. Agent Cooper, referring to a letter given to each
Councilperson, said the Form 5500 is not public record. Councilperson
Frantz stated to Agent Cooper that as he sits on the County Council he
should know there is nothing wrong with the Council knowing what they
are doing with the i~surance. Agent Cooper said he is not saying
that. What he is saying is that when a committee is appointed to do
an audit there should not be a separate someone saying investigation
out there. Councllperson Frantz has had numerous discussion over the
three years with Attorney Glllenwater pertaining to the insurance and
the information
record. Coucnil
are interested
has never been available and she says it is public
President Wilder asked if the Council does agree they
in the infomation they have requested in the past in
PAGE 11
AUGUST 21, 1995
regard to commission and fees. Council President Wilder stated
Attorney Gillenwater has told her she personally cannot get this
information, but as a body they can. So if Form 5500 is wanted, the
body can ask for it. She has brought this up because Agent Cooper
mentioned it. She would not have brought it up unless the audit was
denied, then she was going to request it. As the Council is in
agreement of an audit she was going to pursue this herself from a
legal standpoint. She sees no reason not to get this information as
it is under the guidelines of the duties and responsibilities of the
Council to oversee finances. Councllperson Wilson asked if the audit
would not provide this and the Council would not have to. Council
President Wilder said other than the fact they have been denied this
information for three years. Attorney Glllenwater stated the Council
as a body has a right to request certain actions, and the right to
request certain information, but it does require an act of the
Council. The Council as a body may act to get information that
private people cannot get. When a Councilperson acts as an individual
they act as a private individual. When you act as a body you act as
the fiscal entity of the City and you have different authority,
different powers. Councllperson Frantz asked if Attorney Glllenwater
is saying a taxpayer does not have information to money the Council
appropriates as elected officials. There are a lot of records that
are public and there are some that are not. Some of the information
the Council has requested in the past the man off the street cannot go
in and demand. Councilperson Frantz said her records are not
confidential. Attorney Glllenwater said some records are.
PAGE 12
AUGUST 21, 1995
Councllperson Williams feels it would be more appropriate, as the
Council is dealing with an audit firm, to allow them to deal with this
as a part of the responsibility of the audit. Council President
Wilder said this is fine especially since Mr. Cooper has generously
agreed to fund the balance if Arthur Anderson cannot cut the fees.
Agent Cooper said, with his assistance, he thinks the fees will be cut
and he will pay the difference after $15,000. He will do more than
provide the documents, he will provide specific claims and all
supporting information. Councllperson Frantz asked if Agent Cooper
would object to the Council seeing the claims provided to Arthur
Anderson. Agent Cooper said she would have
Attorney on that. Agent Cooper would not
reviewed by individuals. Councllperson Frantz
to check with the City
advise that claims be
said they would not be
looking for diagnosis. Agent Cooper said all that would have to be on
there to audit. Councilperson Frantz asked if there was not a
printout that gives how much money is spent. Agent Cooper has
provided this information to Attorney Gillenwater months ago. This
information has been forwarded to Arthur Anderson. Agent Cooper
understands claims will be pulled at random and complete documentation
requested. This is a lot of leg work. Arthur Anderson has contacted
Agent Cooper for documentation, and he was told by the Mayor to
cooperate. Council President Wilder will talk with Arthur Anderson
and discuss it at the next meeting, and the next meeting. Agent
Cooper does want it part of the record that he, his staff, his C.P.A.,
and his acturarial people, would like to help with the audit, and will
do it for free to try to get the cost below $21,000.
PAGE 13
AUGUST 21, 1995
Clerk and Treasurer Spencer introduced Ordinance No.
95-OR-29, An Ordinance Transferring Certain Funds Within Same
Department. He explained each transfer saying this is virtuaally
"clean-up detail". Councilperson Potter made the motion to suspend
the rules for Ordinance No. 95-OR-29, seconded by Councilperson
Williams and carried unanimously. Councilperson Potter then made the
motion to pass Ordinance No. 95-OR-29 on all three readings, seconded
by Coucnilperson Williams, passing on the following roll call vote:
Wilson,
95-OR-27,
Wolpert, Williams, Frantz, Wilder,
Ayes: Councllpersons
and Potter.
Nays: None.
Clerk and Treasurer Spencer introduced Ordinance No.
Ordinance For Appropriations And Tax Rates, A (General
Fund), B (Parks & Recreation), C (Building Rental), D. (Sanitation),
E (Fire Pension), H (Motor Vehicle), I (Local Roads and Streets), J
(INDOT and Jeff City), K (Probation User), explaining he had been in
contact with Council President Wilder who had no contact from any
Council members regarding changes. It was announced this is a public
hearing and the public was asked for input. There being no public
input, Councilperson Potter made the motion to pass Ordinance No.
95-OR-27 A through K on the third and final reading, seconded by
Councilperson Williams, passing on the following roll call vote:
Ayes: Councllpersons Wolpert, Williams, Frantz, Wilder,
Wilson, and Potter.
Nays: None.
PAGE 14, 1995
AUGUST 21, 1995
Councllperson Frantz announced the Solid
meeting will be August 29, and she would appreciate
try to attend. Discussion regarding the disposal of
No plastic bags will be permitted. The problem with
Waste District
it if all would
leaves followed.
picking them up
from the gutters is parked cars. Councllperson Frantz wishes all to
be aware of this upcoming problem.
Council President Wilder has received an application for
participation in the Steamboat Days Parade and would like to know if
the Council would like to participate. A float was discussed and
Chief Dooley was asked if the Council could ride a fire truck. Chief
Dooley agreed and will provide a driver.
Councllperson Frantz inquired about the burning of two
houses. Chief Dooley explained this was a part of a New Albany fire
training session. Jeffersonville will have equipment and personnel
involved. Chief Dooley also explained the HAZMAT team was not used
for a recent chemical spill. Colgate has been giving the department
training. The team will have to wait to continue training, has it has
been too hot to train in the necessary suits.
Council President Wilder will
Wilson and Frantz on Wednesday, August 30,
the parade.
meet with Councllpersons
1995 at 4:30 P.M. regarding
Mayor Parker said the City if very fortunate to have PeeWee
Lakeman here tonight. PeeWee has been very ill, however he has been
doing City work from bed.
PAGE 15
AUGUST 21, 1995
There being no further business to come before the Council,
Councllperson Potter moved to adjourn at 8:55 o'clock P.M. seconded by
Councllperson Wolpert and unanimously carried.
~AYOR kAY~O~D ~. PAR~R~JR.
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