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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 PAGE 2 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. PAGE 3 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 PAGE 4 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 PAGE 5 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 PAGE 6 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 PAGE 7 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 PAGE 8 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 PAGE 9 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. ATTEST: /~