Berea Council debates energy fees

OBSERVER CORPS REPORT
AGENCY: Berea City Council
DATE: June 16, 2009
REPORTER: Bruce Callahan


LWVBMC gets meeting packet
After attending five of the last six Berea City Council meetings as part of the LWV Observer Corps, this observer has been rewarded. City Administrator Randy Stone is providing a full information packet to the LWVBMC, available Friday afternoon in the Administrator's Office before Tuesday council meetings. This background information will make the observer's job much easier than it has been trying to keep up with council matters with only the discussion and ordinance readings during the meeting.

The real reward, however, was a dynamic work session that touched on some hot topics and a council meeting in which many major issues were brought forth, debated, and enacted. Three of the four newcomers to council made their presence known and found a forum for some of their campaign promises. Jerry Little, Ronnie Terrill, and Troy VanWinkle after having time to review Ordinance #10-09, The Annual Budget; broke from the usual atmosphere of Berea City Council.

In recent years, and even while these newcomers settled into their new roles, ordinances usually moved through committee and had two readings. The discussion was minimal and the voting both brisk and accommodating. But not on Tuesday night. The three members made a motion to cut the Annual Budget of the City of Berea by 5% while leaving intact the 2.5% pay increase for all city employees. The more experienced members of council eventually prevailed in passing the proposed budget as written after pointing out that there was no method proposed in the amendment to designate who, how, or when these cuts would be made to the $43,619,837 proposed budget. Further it was pointed out by Mayor Connelly that the personnel cost is the largest budget item at over $7 million next year. So $2.1 million in spending cuts would have to be made to the remaining operating costs.

While the budget amendment did not get much traction it did resonate with some recurring themes for these three new council members and financial realities for the City of Berea. These men campaigned on keeping City spending down, cutting property taxes, and lowering city-owned utility costs for Berea residents. These themes are fairly generic for conservative politicians in recent decades at all levels of government, but during the recent economic downturn towards recession/depression those in government are facing difficult choices as revenues drop, credit dries up, and costs escalate. As City Administrator, Randy Stone and Utilities Director, Donald Blackburn pointed out, Berea is no different. Payroll taxes are down for the year and the season. The manufacturing base is shrinking. And all energy costs are higher and will continue to climb. Which leads to the other major agenda item for the council.

Ordinance #11-09 proposed an across-the-board increase in rates and fees for electricity provided by Berea Municipal Utilities. The proposed ordinance would have raised the service fee for residential service from $9 a month to $14. Mr. Blackburn explained in the work session that this increase would allow Berea Municipal Utilities to meet the increased costs passed down from Kentucky Utilities (KU).

During the work session, resident Robert Ukeiley addressed the group to advocate for the council's previously adopted intention to raise kilowatt hour costs to encourage conservation instead of increasing user fees to meet increased cost and then later raising kwh rates in proportion to future KU rate increases. He proposed an increase across the board of 1/4 cent per kilowatt hour, which he suggested would more than meet the KU rate increase coming next month to Berea Utilities. Long-time council member Glenn Jennings, who is an energy executive, closed the work session by explaining that going for a sure thing in fee increases was the only way to manage increased costs.

Compromise on user fees, rate increase
In the council meeting that followed, the rate increase was brought to the floor for discussion and Mr. Ukeiley again put forth his request to council that they adjust hourly rates so that Berea Utilities can reward energy conservation and encourage local economic development rather than increase local money going to a German-based, multi-national corporation which owns Kentucky Utilities. Elizabeth Crowe also addressed council asking for a kwh rate increase, instead of increasing the base rate.

Council brought the matter to a vote and again, the same three council members who rocked the boat on the budget, set forth a series of proposed amendments in agreement with Mr. Ukeiley and Ms. Crowe. A lively discussion ensued and could not be squashed by Mr. Jennings or the warnings of Mayor Connelly. Council members Vi Farmer, Greg Lakes and Virgil Burnside added their parliamentary experience and ideological support to developing a compromise. They joined with Little, Terrill and VanWinkle to push through a smaller increase in residential fees of $11 a month and an immediate increase of residential KWH cost by 1/4 cent. The fourth new council member, Billy Wagers, spent most of the session agreeing with Mr. Jennings. Towards the end of the meeting he asked if someone could explain to him what was going on. Possibly he was joking.

Public Works comprehensive planning June 29
The meeting continued with committee reports. The Public Works Dept is looking to develop a comprehensive water plan and will meet June 29 at 5:15. This water plan will attempt to meet the needs of several different development projects including the Bike Path and some residential and retail concerns. It will consider rerouting some streams and will require careful attention.

A major concern in Berea is the new traffic light being added to the Berea Bypass following the fatality at the intersection with Menelaus Road. The Light installation is approved and scheduled to proceed this summer.

The mayor asked for and received board appointments for Craig Still to join the Codes Enforcement Board and reappointment of Brad Lewis to the Tourism Board.

Debate over future of Parker Seal plant
And just when we thought it was all over and it was long past time to go home, during council member comments, Ronnie Terrill made a motion. Mr. Terrill asked that the city promise to never ever, even if somebody gives it to us, to have anything to do with the Parker Seal facility. The mayor called for a voice vote on the motion and despite a loud but undifferentiated response of "yynaanyanaay!" declared the "nays" have it. Upon a roll call vote the council was deadlocked at 4 to 4 on this third and final mini-revolution in the ranks. The mayor broke the tie with a nay vote to shun all involvement with the Parker Seal facility in perpetuity. The mayor then closed the meeting.

Despite the increase in dissent during the evening everyone seemed in good humor and I for one did not need to pinch myself once during a very long evening. I did not stifle any yawns and did not see anyone else nodding or staring off into space which is extremely rare for a Berea City Council meeting. This group will bear watching.