PRESENTATION: COMPREHENSIVE ANNUAL FINANCIAL REPORT

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1 A regular meeting of the Board of Commissioners of the City of Henderson, Kentucky, was held on Tuesday, November 26, 2013, at 5:30 p.m., prevailing time, in the third floor Assembly Room located in the Municipal Center Building at 222 First Street, Henderson, Kentucky. INVOCATION was given by Reverend Jeff Ferguson, First Assembly of God, and then Mayor Austin led the assemblage in the recitation of the Pledge of Allegiance to our American Flag. There were present Mayor Steve Austin presiding: PRESENT: Commissioner Jan Hite Commissioner Robert N. Pruitt Commissioner Tom Davis Commissioner Robert M. (Robby) Mills ALSO IN ATTENDANCE INCLUDED: Mr. Russell R. Sights, City Manager Mr. Buzzy Newman, Assistant City Manager Mrs. Dawn Kelsey, City Attorney Mrs. Carolyn Williams, City Clerk Mr. John Reed, Police Chief Mr. Danny Froehlich, Fire Chief Mr. Robert Gunter, Finance Director Mr. John Stier, Accounting Manager Mr. Owen Reeves, Gas System Director Mr. David Piller, Police Major Mrs. Kathy Ferrell, City-County Planning Director Mr. Curt Freese, Assistant City-County Planning Director Mr. Tom Williams, HWU General Manager Mr. Leason Neel, Chief Financial Officer Mr. George Jones, HWU Commissioner Mr. Eric A. Shappell, HWU Attorney Mr. Mike Shockley, Communications Supervisor Mr. Malcolm E. Neel III, Myriad CPA Group Mr. Drew Reid, Boy Scout Mrs. Beverly Reid Mr. Aiden Hite Mr. Mike Richardson, Police Reserve Officer Mr. Frank Boyett, The Gleaner PRESENTATION: COMPREHENSIVE ANNUAL FINANCIAL REPORT MR. MALCOLM (MAC) L. NEEL III, MYRIAD CPA GROUP, presented the Comprehensive Annual Financial Report for the fiscal year ended June 30, Mr. Neel noted that the City has received a Certificate of Achievement for the fourteenth year in a row. The certificate, awarded by the Government Finance Officers Association of the United States and Canada, represents the highest form of recognition in the area of governmental accounting and financial reporting. Mr. Neel discussed the highlights and details of the audited financial statements. He emphasized that the City of Henderson is in sound financial condition, and commended the Finance Director, the Accounting Manager, and the City Manager and staff for the manner in which the City s financial records are kept.

2 COMMISSIONER PRUITT asked the frame on what we were collecting in 2004 is the same amount that we are collecting now. Mr. Neel agreed that the percentage of taxes assessed and collected was about 98.8%, close to the same as MR. NEEL stated that to make a long story short, the city is in very solid financial position and there are a lot of municipalities across the country that would be very envious of where we are. MOTION by Commissioner Pruitt, seconded by Commissioner Hite, to accept the audit as presented. PRESENTATION: HWU INDEPENDENT AUDITOR S REPORT MR. TOM WILLIAMS, HENDERSON WATER UTILITY GENERAL MANAGER, explained that House Bill-1 requires that being set up as a Special Purpose Government Entity in reporting and HWU falls under some of those categories. Their audit was very clean and HWU had a very good year in 2012 with the budget showing that they were 108% on revenues and 93% on expenses. MOTION by Commissioner Davis, seconded by Commissioner Pruitt, to accept the HWU Audit as presented. APPROVAL OF CONSENT AGENDA: MAYOR AUSTIN asked Carolyn Williams, City Clerk, to read the following items included on the Consent Agenda: Minutes: November 13, 2013, Regular Meeting November 19, 2013, Work Session Motion by Commissioner Mills, seconded by Commissioner Pruitt, to approve the items on the Consent Agenda.

3 ORDINANCE NO SECOND READING ORDINANCE ADOPTING WITH AMENDMENTS FOUND HEREIN, CHAPTER 4, ALCOHOLIC BEVERAGES, ARTICLE II, LICENSES, SECTION 4-35 THROUGH SECTION 4-46 OF THE CODE OF ORDINANCES OF THE CITY OF HENDERSON On second reading of the Ordinance, it was moved by Commissioner Hite, seconded by Commissioner Mills, that the Ordinance be adopted. WHEREUPON Mayor Austin declared the Ordinance adopted, affixed his signature, and the date thereto and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor December 10, 2013 ATTEST: Carolyn Williams, City Clerk ORDINANCE NO SECOND READING ORDINANCE AMENDING SEC. 4-15, HOURS OF SALE AND DELIVERY, OF ARTICLE I. IN GENERAL, OF CHAPTER 4, ALCOHOLIC BEVERAGES, OF THE CODE OF ORDINANCES OF THE CITY OF HENDERSON, ELIMINATING THE PROHIBITION OF SELLING ALCOHOL WHILE POLLS ARE OPEN ON ELECTION DAY On second reading of the Ordinance, it was moved by Commissioner Mills, seconded by Commissioner Hite, that the Ordinance be adopted. WHEREUPON Mayor Austin declared the Ordinance adopted, affixed his signature, and the date thereto and ordered that the same be recorded. ATTEST: Carolyn Williams, City Clerk /s/ Steve Austin Steve Austin, Mayor December 10, 2013

4 ORDINANCE NO Second Reading ORDINANCE AMENDING NATURAL GAS SERVICE RATES AND CHARGES SUMMARY: ORDINANCE AMENDING ORDINANCE NO BY ESTABLISHING NEW NATURAL GAS SERVICE RATES AND CHARGES WHEREAS, Section of the Code of Ordinances provides that all rates and charges for municipal utilities shall be determined from time to time by the Board of Commissioners and kept on file in the Office of the City Clerk; and - WHEREAS, Ordinance No established rates and charges for natural gas service, which shall be amended herewith; and WHEREAS, the City Manager recommends amendment of the rates and charges for natural gas service as proposed herein. No. NOW, THEREFORE, BE IT ORDAINED by the City of Henderson, Kentucky that Ordinance , Establishing Natural Gas Service Rates and Charges, is hereby amended as follows: CITY OF HENDERSON, KENTUCKY NATURAL GAS RATES AND CHARGES Section I. Residential Sales Service Applicable for service to any Residential customer located within the city limits of or adjacent to certain areas directly served by the City of Henderson: 1. Monthly Customer Charge: A Monthly Customer Charge of $12.00 $12.50 shall be assessed each month. Beginning On: 2. Rate: per 1,000 cubic feet, plus the delivered cost of gas: $2.25 $2.30 Jan 1 st 2014 $2.35 Jan 1 st 2015 $2.40 Jan 1 st 2016 $2.45 Jan 1 st 2017 Section II. Commercial Sales Service Applicable for service to any Commercial customer located within the city limits of or adjacent to areas served directly by the City of Henderson: 1. Monthly Customer Charge: A Monthly Customer Charge shall be assessed each month as follows: A. Up to 500,000 cubic feet per year and a connected load less than 500,000 Btu per hour: B. Above 500,000 cubic feet per year or a connected load greater than 500,000 Btu per hour $ $16.00 per month $35.00 $36.75 per month. 2. Rate: per 1,000 cubic feet, plus the delivered cost of gas: Effective Date: 1/1/14 1/1/15 1/1/16 1/1/17 Up to 500,000 cubic feet per month: $2.25 $2.30 $2.35 $2.40 $2.45 Next 4,500,000 cubic feet per month: $0.50 $0.60 $0.70 $0.80 $0.90 Above 5,000,000 cubic feet per month: $0.25 $0.25 $0.26 $0.27 $0.28 Section III. Industrial Sales Service Applicable for service to any Industrial customer located within the city limits of or adjacent to areas directly served by the City of Henderson. For purposes of this Section, an Industrial customer shall be defined as a customer having a Manufacturing category designation in the North American Industry Classification System (NAICS) manual as published by the US Government, Office of Management and Budget. 1. Monthly Customer Charge: A Monthly Customer Charge shall be assessed each month as follows: A. Up to 50,000,000 cubic feet per year: $ $80.00 per month

5 B. Above 50,000,000 cubic feet per year: $ $ per month $0.90 $0.28 $0.13 $0.08 $2.45 $ Rate: per 1,000 cubic feet, plus the delivered cost of gas: A. Service for Customer with executed Service Agreement Effective Date: 1/1/14 1/1/15 1/1/16 1/1/17 Up to 500,000 cubic feet per month: $2.25 $2.30 $2.35 $2.40 $2.45 Next 4,500,000 cubic feet per month: $0.50 $0.60 $0.70 $0.80 Next 10,000,000 cubic feet per month: $0.25 $0.25 $0.26 $0.27 Next 20,000,000 cubic feet per month: $0.12 $0.12 $0.125 $0.13 Above 35,000,000 cubic feet per month: $0.07 $0.07 $0.075 $0.08 B. Service for Customer without executed Service Agreement Up to 500,000 cubic feet per month: $2.25 $2.30 $2.35 $2.40 Above 500,000 cubic feet per month: $0.50 $0.60 $0.70 $ Service Agreement: A Natural Gas Sales Agreement acceptable to the City Manager shall be executed by any Industrial Sales Service customer requiring volumes in excess of 50,000,000 cubic feet per year. Section IV. Alternative Fuel Responsive Flex Provision Notwithstanding any other provision of this ordinance, the City may periodically flex the otherwise applicable rates in Subsection III.2.A. on a customer specific basis if a customer presents sufficient, reliable and persuasive information to satisfactorily prove to the City that alternative fuel, usable by the customer s facility, is readily available, in both advantageous price and adequate quantity, to completely or materially displace the gas service that would otherwise be provided by the City. The customer must submit the appropriate information by affidavit to the City for this optional monthly rate provision to be applicable. Additional information may be required by the City Manager or Gas System Director to evaluate the merit of the flex request. Section V. Local Transportation Service Applicable for service to any customer owning its own natural gas supplies which, for a minimum period of twelve (12) months commencing each November 1st, may have the City provide local transportation service across the City s gas distribution system provided a Natural Gas Transportation Agreement acceptable to the City Manager is executed by the customer. The local transportation rates shall be the same rates as contained in Section III, Subsections 1 and 2A of this ordinance, less the delivered cost of gas component, plus being subject to a balancing policy, shrinkage adjustment, and the general terms and conditions as may be contained in the Natural Gas Transportation Agreement. In addition, the City will require the customer to reimburse the City for the actual cost of telemetering equipment that will allow the City to monitor the customer s gas usage on a real-time basis. The City will assess an additional monthly fee of $600 for administering this service. Section VI. Service On Behalf of the City of Corydon, Kentucky 1. Monthly Customer Charge. A Monthly Customer Charge shall be assessed each month as follows: Residential: $ $13.30 per month Commercial: A. Up to 500,000 cubic feet per year and a connected load less than 500,000 Btu per hour: $15.80 $16.80 per month B. Above 500,000 cubic feet per year or a connected load greater than 500,000 Btu per hour: $35.80 $37.55 per month 2. Rate: per 1,000 cubic feet, plus the delivered cost of gas to the City of Henderson: Effective Date: 1/1/14 1/1/15 1/1/16 1/1/17 A. Residential: $2.25 $2.30 $2.35 $2.40 $2.45 B. Commercial: Up to 500,000 cubic feet per month: $2.25 $2.30 $2.35 $2.40 $2.45

6 Next 4,500,000 cubic feet per month: $0.50 $0.60 $0.70 $0.80 $0.90 Above 5,000,000 cubic feet per month: $0.25 $0.25 $0.26 $0.27 $0.28 C. A ten-cent ($0.10) surcharge shall be assessed for each 1,000 cubic feet of gas sold within the city limits of the City of Corydon, Kentucky under this section to be paid to the City of Corydon. Section VII. Cost of Gas Adjustment Any change in the costs or charges billed by the natural gas supplier(s) or provider(s) of interstate transportation service to the City shall automatically be reflected by a like change in the rates charged hereunder on a monthly basis or as allocated for actual costs, as adjusted for the City s average uses, metering and line losses, and previous months actual costs or charges, without further action of the Board of Commissioners. Section VIII. Public Energy Authority of Kentucky Trust Rebate One hundred percent (100%) Fifty percent (50%) of all annual rebates received from the Public Energy Authority of Kentucky Trust (PEAK) shall be distributed over the next succeeding five-month winter period (November through March) as a per unit credit to be applied against monthly billings directed to the Gas Fund. These rebates shall be universally credited to Sales Service customers only. The final rebate from each PEAK bond series shall be directed to the Gas Fund. Customers will receive PEAK rebate through the end of the December 2013 read cycles. Section IX. Developmental Service A prospective natural gas customer seeking to initiate service with the City and having a minimum anticipated natural gas requirement of 500,000 Mcf per year may enter into a mutual agreement with the City to establish, by written contract not to exceed eighteen (18) months, a developmental rate as an inducement for becoming a City Sales Service or Local Transportation Service customer provided a Developmental Service Agreement acceptable to the City Manager is executed by the customer. Section X. Effective Date The rates and charges for natural gas service established in this ordinance shall become effective for all billings printed on and after. June 1, 2009 January 1, 2014 except that the PEAK rebate will complete with the last meter read cycle for December All ordinances or parts of ordinances in conflict herewith are hereby repealed and superseded to the extent of such conflict. This ordinance shall become effective upon its legal adoption. On second reading of the ordinance, it was moved by Commissioner Hite seconded by Commissioner Pruitt, that the ordinance be adopted. On roll call the vote stood: Commissioner Mills: AYE Commissioner Davis AYE Commissioner Hite: AYE Mayor Austin: AYE Commissioner Pruitt: _AYE WHEREUPON Mayor Austin declared the Ordinance adopted, affixed his signature, and the date thereto and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor December 10, 2013 ATTEST: Carolyn Williams, City Clerk ORDINANCE NO First Reading_ ORDINANCE AMENDING EROSION CONTROL REGULATIONS SUMMARY: ORDINANCE AMENDING CHAPTER 7, ARTICLE VI. EROSION AND SEDIMENT CONTROL AND CLEANING OF STREETS TO INCLUDE DEMOLITION AND DEMOLITION PERMIT UNDER SECTION RESPONSIBILITIES, RIGHT OF ACCESS; ADD REQUIREMENT THAT HENDERSON WATER UTILITY HAS THE RESPONSIBILITY TO REVIEW AND

7 APPROVE EROSION CONTROL PLANS ON LARGE SITE PRIOR TO ITS SUBMITTAL TO THE DIVISION OF WATER FOR A STATE PERMIT AND TO ADD A REQUIREMENT FOR SOIL STABILIZATION IF ACTIVITY CEASES FOR FOURTEEN (14) DAYS UNDER SECTION EROSION AND SEDIMENT CONTROL PLAN CONTENT, DESIGN REQUIREMENT; AND TO MODIFY THE PENALTY PROVISION TO MAKE VIOLATION OF THE ORDINANCE A CLASS B MISDEMEANOR UNDER SECTION PENALTY. On first reading of the foregoing ordinance, it was moved by Commissioner Jan Hite, seconded by Commissioner _Robert M. Mills, that the ordinance be adopted on its first reading. DISCUSSION WAS HELD. VERBATIM DISCUSSION IS ON TAPE OF THIS MEETING. On roll call the vote stood: Commissioner Mills: _AYE Commissioner Davis AYE Commissioner Hite: _AYE Mayor Austin: AYE Commissioner Pruitt: _NAY WHEREUPON, Mayor Austin declared the ordinance adopted on first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. ORDINANCE NO FIRST READING ORDINANCE AMENDING OFFICIAL ZONING MAP SUMMARY: AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF HENDERSON FOR PROPERTIES BEGINNING AT THE INTERSECTION OF ATKINSON AND PRINGLE STREETS, ALONG PRINGLE STREET IN A NW DIRECTION TO THE INTERSECTION OF MILL AND PRINGLE STREETS, THENCE ALONG MILL STREET IN A NE DIRECTION TO THE NE SIDE OF PVA PARCEL # , THENCE IN A NW DIRECTION ALONG THE SAID PARCEL TO A PUBLIC ALLEYWAY (RUNNING IN A NS DIRECTION, PARALLEL WITH POND AND MILL STREETS), ALONG THE PUBLIC ALLEYWAY IN A SW DIRECTION TO PRINGLE STREET, THENCE IN A NW DIRECTION TO THE INTERSECTION OF MADISON AND PRINGLE STREETS, THENCE ALONG MADISON STREET IN A NW DIRECTION TO THE INTERSECTION OF MADISON AND SOUTH ALVASIA STREETS, THENCE ALONG SOUTH ALVASIA STREET IN A NE DIRECTION TO THE INTERSECTION OF VINE AND SOUTH ALVASIA, THENCE IN A NW DIRECTION ALONG VINE STREET TO A PUBLIC ALLEYWAY (RUNNING IN NS DIRECTION, PARALLEL WITH SOUTH GREEN AND SOUTH INGRAM STREETS), THENCE IN A NE DIRECTION ALONG THE PUBLIC ALLEYWAY TO THE SW SIDE OF PVA PARCEL , THENCE IN A SE DIRECTION ALONG THE SW SIDE OF THE SAID PARCEL TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG NW SIDE OF PVA

8 PARCELS # & # , AND TO A PUBLIC ALLEYWAY (RUNNING IN EW DIRECTION, PARALLEL WITH VINE STREET AND MLK JR. AVENUE), THENCE IN NW DIRECTION ALONG SAID PUBLIC ALLEYWAY TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE SAID PARCEL TO MLK JR AVENUE, THENCE IN A SE DIRECTION ALONG MLK JR AVENUE TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE SAID PARCEL AND CONTINUING ALONG THE NW SIDE PVA PARCEL # , THENCE TO THE SW SIDE OF PVA PARCEL # AND ALONG THE SAID PARCEL IN NW DIRECTION TO THE NW SIDE OF SAID PARCEL, THENCE ALONG THE SAID PARCEL AND PVA PARCEL # , CONTINUING ACROSS PUBLIC ALLEYWAY (RUNNING IN EW DIRECTION, PARALLEL WITH MLK JR. AVENUE AND CLAY STREET) AND ALONG THE NW SIDE OF PVA PARCEL # TO CLAY STREET, THENCE RUNNING SE ALONG CLAY STREET TO THE NW SIDE OF PVA PARCEL # , TO THE SW SIDE OF PVA PARCEL # , THENCE ALONG THE SAID PARCEL IN NW DIRECTION TO THE NW SIDE OF SAID PARCEL TO A PUBLIC ALLEYWAY (RUNNING IN NS DIRECTION, PARALLEL WITH SOUTH GREEN AND SOUTH INGRAM STREETS), THENCE ALONG THE PUBLIC ALLEYWAY IN A NE DIRECTION TO THE NE SIDE OF PVA PARCEL # , THENCE ALONG THE NE SIDE OF PVA PARCEL # TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE NW SIDE OF PVA PARCELS # , # , # , # AND # , THENCE IN A SE DIRECTION ALONG THE NE SIDE OF PVA PARCEL # TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE NW SIDE OF SAID PARCEL TO POWELL STREET, THENCE IN A SE DIRECTION ALONG POWELL STREET TO THE NW SIDE OF PVA PARCEL # , THENCE ALONG SAID PARCEL IN A NE DIRECTION TO THE SW SIDE OF PVA PARCEL #2-5-18, THENCE ALONG SAID PARCEL IN A NW DIRECTION TO THE NW SIDE OF SAID PARCEL, THENCE IN A NE DIRECTION ALONG THE NW SIDE OF SAID PARCEL TO PUBLIC ALLEY (SHORT ALLEYWAY RUNNING IN EW DIRECTION, PARALLEL WITH POWELL AND WASHINGTON STREETS), THENCE ALONG THE PUBLIC ALLEYWAY IN A NW DIRECTION TO THE END OF THE PUBLIC ALLEYWAY AT THE SE SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE SE SIDE OF SAID PARCEL TO THE SW SIDE OF PVA PARCEL # , THENCE IN A NW DIRECTION ALONG THE SW SIDE OF SAID PARCEL TO THE NW SIDE OF SAID PARCEL, THENCE IN A NE DIRECTION ALONG THE NW SIDE OF SAID PARCEL TO THE NE SIDE OF SAID PARCEL, THENCE IN A SE DIRECTION ALONG THE SAID PARCEL TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE NW SIDES OF SAID PARCEL, PVA PARCEL # , END OF PUBLIC ALLEYWAY (SHORT ALLEYWAY RUNNING IN EW DIRECTION, PARALLEL WITH POWELL AND WASHINGTON

9 STREETS), PVA PARCELS # AND # TO WASHINGTON STREET, THENCE IN A SE DIRECTION TO THE PUBLIC ALLEYWAY (RUNNING IN NS DIRECTION, PARALLEL WITH SOUTH GREEN AND SOUTH INGRAM STREETS) TO A CROSSING PUBLIC ALLEYWAY (SHORT ALLEYWAY RUNNING IN EW DIRECTION, PARALLEL WITH WASHINGTON AND CENTER STREETS), THENCE IN A SE DIRECTION ALONG SAID PUBLIC ALLEYWAY TO SOUTH INGRAM, THENCE IN A SW DIRECTION ALONG SOUTH INGRAM TO A PUBLIC ALLEY (RUNNING IN EW DIRECTION, PARALLEL WITH WASHINGTON AND CENTER STREETS), THENCE ALONG THE SAID PUBLIC ALLEYWAY IN A SE DIRECTION TO SOUTH ADAMS STREET, THENCE IN A SW DIRECTION ALONG SOUTH ADAMS TO A PUBLIC ALLEYWAY (SHORT ALLEYWAY RUNNING IN EW DIRECTION, PARALLEL WITH WASHINGTON AND CENTER STREETS), THENCE IN A SE DIRECTION ALONG SAID PUBLIC ALLEYWAY TO THE NW SIDE OF PVA PARCEL # , THENCE RUNNING IN NE DIRECTION ALONG THE NW SIDE OF THE SAID PARCEL TO THE NE SIDE OF THE SAID PARCEL, THENCE RUNNING IN A SE DIRECTION ALONG THE NE SIDE OF THE SAID PARCEL TO SOUTH ALVES, THENCE IN A SW DIRECTION ALONG SOUTH ADAMS TO A PUBLIC ALLEYWAY (RUNNING IN EW DIRECTION, PARALLEL WITH WASHINGTON AND CENTER STREETS), THENCE IN A SE DIRECTION ALONG SAID PUBLIC ALLEYWAY TO SOUTH ALVASIA, THENCE IN A NE DIRECTION ALONG SOUTH ALVASIA TO THE NE SIDE OF PVA PARCEL # , THENCE IN A SE DIRECTION ALONG NE SIDE OF SAID PARCEL CROSSING A PUBLIC ALLEYWAY (RUNNING IN NS DIRECTION, PARALLEL WITH SOUTH ALVASIA AND SOUTH HOLLOWAY STREETS) CONTINUING IN THE SAME DIRECTION ALONG THE NE SIDE OF PVA PARCEL # AND CROSSING SOUTH HOLLOWAY STREET, THENCE CONTINUING IN THE SE DIRECTION ALONG THE NE SIDE OF PVA PARCEL # TO A PUBLIC ALLEYWAY (RUNNING IN A NS DIRECTION, PARALLEL WITH SOUTH HOLLOWAY AND SOUTH JULIA STREETS), THENCE IN A NE DIRECTION ALONG SAID PUBLIC ALLEYWAY TO THE NE SIDE OF PVA PARCEL # , THENCE ALONG THE NE SIDE OF SAID PARCEL IN A SE DIRECTION TO SOUTH JULIA STREET, THENCE IN A SW DIRECTION ALONG SOUTH JULIA STREET TO THOMPSON STREET, THENCE IN A SE DIRECTION ALONG THOMPSON STREET TO MEADOW STREET, THENCE IN A SW DIRECTION ON MEADOW STREET TO THE INTERSECTION WITH WASHINGTON STREET, THENCE IN A SE DIRECTION ALONG WASHINGTON STREET TO THE NW SIDE OF PVA PARCEL # , THENCE IN A SE DIRECTION ALONG SAID PARCEL AND THE NW SIDE OF PVA PARCEL # TO A PUBLIC ALLEYWAY (RUNNING IN A EW DIRECTION PARALLEL WITH POWELL AND WASHINGTON STREETS), THENCE IN A NW DIRECTION ALONG SAID PUBLIC ALLEYWAY TO COTTAGE AVENUE, THENCE

10 IN A SW DIRECTION ALONG COTTAGE AVENUE TO INTERSECTION WITH POWELL STREET, THENCE IN A SE DIRECTION ALONG POWELL STREET TO THE NW SIDE OF PVA PARCEL # , THENCE ALONG THE NW SIDE OF SAID PARCEL IN A SW DIRECTION AND TO A PUBLIC ALLEYWAY (RUNNING IN A EW DIRECTION PARALLEL WITH HELM AND POWELL STREETS), THENCE IN A NW DIRECTION ALONG THE SAID PUBLIC ALLEYWAY TO THE NW SIDE OF PVA PARCEL # , THENCE IN A SW DIRECTION ALONG THE NW SIDE OF THE SAID PARCEL ACROSS HELM STREET AND CONTINUING ALONG THE NW SIDE OF PVA PARCEL # TO A PUBLIC ALLEYWAY (RUNNING IN A EW DIRECTION, PARALLEL WITH CLAY & HELM STREETS), THENCE IN A NW DIRECTION ALONG THE PUBLIC ALLEYWAY TO THE NW SIDE OF PVA PARCEL # , THENCE ALONG NW SIDE OF SAID PARCEL IN A SW DIRECTION TO CLAY STREET, THENCE IN A SE DIRECTION ALONG CLAY STREET TO THE NW SIDE OF PVA PARCEL # , THENCE IN A SW DIRECTION ALONG THE NW SIDE OF THE SAID PARCEL TO A PUBLIC ALLEYWAY (RUNNING IN A EW DIRECTION PARALLEL WITH CLAY AND CUMNOCK STREETS), THENCE IN A SE DIRECTION ALONG THE SAID PUBLIC ALLEYWAY TO THE NW SIDE OF PVA PARCEL , THENCE IN A SW DIRECTION ALONG THE NW SIDE OF PVA PARCEL # TO CUMNOCK STREET, THENCE IN A NW DIRECTION ALONG CUMNOCK STREET A PUBLIC ALLEYWAY (RUNNING IN A NS DIRECTION PARALLEL WITH MILL AND LETCHER STREETS), THENCE IN A SW DIRECTION ALONG SAID PUBLIC ALLEYWAY TO O BYRNE STREET, THENCE IN A SW DIRECTION ALONG O BYRNE STREET TO THE INTERSECTION WITH LETCHER STREET, THENCE IN A NE DIRECTION ALONG LETCHER STREET TO THE INTERSECTION WITH CUMNOCK STREET, THENCE IN A SE DIRECTION ALONG CUMNOCK STREET TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE NW SIDE OF SAID PARCEL TO A PUBLIC ALLEYWAY (RUNNING IN A EW DIRECTION PARALLEL WITH CLAY AND CUMNOCK STREETS), THENCE ALONG SAID PUBLIC ALLEYWAY IN A SE DIRECTION CROSSING SHELBY STREET AND CONTINUING ON TO ATKINSON STREET, THENCE IN A SW DIRECTION ALONG ATKINSON STREET TO THE INTERSECTION WITH PRINGLE STREET, THE POINT OF BEGINNING FROM INNER CITY RESIDENTIAL (R-3), HIGH DENSITY RESIDENTIAL (R-4), NEIGHBORHOOD BUSINESS (NB), RESIDENTIAL OFFICE (RO), AND GENERAL BUSINESS (GB) TO AUDUBON RESIDENTIAL. NOW, THEREFORE, BE IT ORDAINED by the City of Henderson, Kentucky, as follows: 1. The Official Zoning map of the City of Henderson is hereby AMENDED from INNER CITY RESIDENTIAL (R-3), HIGH DENSITY

11 RESIDENTIAL (R-4), NEIGHBORHOOD BUSINESS (NB), RESIDENTIAL OFFICE (RO), and GENERAL BUSINESS (GB) to AUDUBON RESIDENTIAL for certain real properties as described by the Summary here above and more specifically shown by plat marked Exhibit "A" and legal description marked Exhibit B which is attached hereto and made a part hereof by reference. 2. That the map amendment is in agreement with the Henderson City- County Comprehensive Plan. 3. The City adopts by reference the findings of fact and conclusions of law of the Henderson City-County Planning Commission which includes Article XXXI, Audubon Residential District of the Henderson City Zoning Ordinance, of the Henderson made on November 5, 2013, as a result of the public hearing held on November 5, 2013, and the recommendations of the Planning Commission, as attached hereto, are adopted and incorporated herein by reference. On first reading of the foregoing ordinance, it was moved by Commissioner Robert M. Mills_, seconded by Commissioner Robert Pruitt, that the ordinance be adopted on its first reading. COMMISSIONER HITE asked about the possibility of extending the boundary of the district. If this is passed tonight, how long would the process take to extend a second boundary? Kathy Ferrell agreed that if this first boundary goes well and if there is development, then we can think about extending the boundary. COMMISSIONER PRUITT stated that Commissioner Hite asked for a time line and you didn t give her one. Are we talking at least a couple of years? Kathy responded that until we know for sure how this first boundary goes or we could start another one if so directed. On roll call the vote stood: Commissioner Mills: AYE Commissioner Davis AYE_ Commissioner Hite: AYE Mayor Austin: _AYE Commissioner Pruitt: AYE WHEREUPON, Mayor Austin declared the ordinance adopted on first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. ORDINANCE NO FIRST READING ORDINANCE AMENDING ZONING REGULATIONS ORDINANCE AMENDING THE ZONING ORDINANCE REGULATIONS OF THE CITY OF HENDERSON BY ADDING ARTICLE XXXI, SECTIONS , AUDUBON RESIDENTIAL DISTRICT PURPOSES On first reading of the Ordinance, it was moved by Commissioner Mills, seconded by Commissioner Hite, that the Ordinance be adopted.

12 WHEREUPON Mayor Austin declared the Ordinance adopted on its first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. ORDINANCE NO ORDINANCE AMENDING OFFICIAL ZONING MAP SUMMARY: AN ORDINANCE AMENDING THE OFFICIAL ZONING MAP OF THE CITY OF HENDERSON FOR PROPERTIES BEGINNING AT THE AREA BOUNDED BY THE FOLLOWING BOUNDARY: BEGINNING AT THE INTERSECTION OF WASHINGTON AND ATKINSON STREETS, ALONG ATKINSON STREET THENCE IN A SW DIRECTION TO CLAY STREET, THRU THE INTERSECTION WITH CLAY STREET, THENCE CONTINUING ALONG ATKINSON STREET TO A PUBLIC ALLEYWAY (RUNNING IN A EW DIRECTION PARALLEL WITH CLAY AND CUMNOCK STREETS), THENCE ALONG SAID PUBLIC ALLEYWAY IN A NW DIRECTION CROSSING SHELBY STREET AND CONTINUING THE NW SIDE OF PVA PARCEL # , THENCE IN A SW DIRECTION ALONG THE SAID PARCEL TO CUMNOCK STREET, THENCE IN A NW DIRECTION ALONG CUMNOCK STREET TO THE INTERSECTION OF LETCHER STREET, THENCE IN A SW DIRECTION ALONG LETCHER STREET TO THE INTERSECTION OF O BYRNE STREET, THENCE IN A NW DIRECTION ALONG O BYRNE STREET TO A PUBLIC ALLEYWAY (RUNNING IN A NS DIRECTION PARALLEL WITH LETCHER AND MILL STREETS), THENCE IN A NE DIRECTION ALONG THE SAID PUBLIC ALLEYWAY TO CUMNOCK STREET, THENCE IN A SW DIRECTION ALONG CUMNOCK STREET TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE NW SIDE OF SAID PARCEL TO A PUBLIC ALLEYWAY (RUNNING IN A EW DIRECTION PARALLEL WITH CUMNOCK AND CLAY STREETS), THENCE ALONG SAID PUBLIC ALLEYWAY IN A NW DIRECTION TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE NW SIDE OF THE SAID PARCEL TO CLAY STREET, THENCE IN A NW DIRECTION ALONG CLAY STREET TO THE NW SIDE OF PVA PARCEL # , THENCE ALONG SAID PARCEL IN A NE DIRECTION TO A PUBLIC ALLEYWAY (RUNNING IN A EW DIRECTION, PARALLEL WITH CLAY & HELM STREETS), THENCE IN A SE DIRECTION IN THE SAID PUBLIC ALLEYWAY TO THE NW

13 SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG SAID PARCEL ACROSS HELM STREET AND RUNNING IN SAME NE DIRECTION ALONG THE NW SIDE OF PVA PARCEL # TO A PUBLIC ALLEYWAY (RUNNING IN A EW DIRECTION PARALLEL WITH HELM AND POWELL STREETS), THENCE IN A SE DIRECTION ALONG THE SAID PUBLIC ALLEYWAY TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG THE NW SIDE OF SAID PARCEL TO POWELL STREET, THENCE IN A NW DIRECTION ALONG POWELL STREET TO THE INTERSECTION OF COTTAGE AVENUE, THENCE IN A NE DIRECTION ALONG COTTAGE AVENUE TO THE PUBLIC ALLEYWAY (RUNNING EW DIRECTION PARALLEL WITH POWELL AND WASHINGTON STREETS), THENCE IN A SE DIRECTION ALONG SAID PUBLIC ALLEYWAY TO THE NW SIDE OF PVA PARCEL # , THENCE IN A NE DIRECTION ALONG SAID PARCEL AND NW SIDE OF PVA PARCEL # TO WASHINGTON STREET, THENCE IN A SE DIRECTION ALONG WASHINGTON STREET TO THE INTERSECTION WITH ATKINSON STREET, THE POINT OF BEGINNING. FROM INNER CITY RESIDENTIAL (R-3), INNER CITY RESIDENTIAL (R-4), AND GENERAL BUSINESS (GB) TO AUDUBON COMMERCIAL. WHEREAS, the Henderson Henderson County Planning Commission held a public hearing on November 5, 2013 to consider rezoning for and certain properties in the Audubon area of the City of Henderson to Audubon Commercial; WHEREAS, by letter dated November 7, 2013 the Planning Commission advised the Board of Commissioners that it has made such rezoning recommendations, and requested the Board of Commissioners of the City of Henderson to further approve said rezonings; NOW, THEREFORE, BE IT ORDAINED by the City of Henderson, Kentucky, as follows: 1. The Official Zoning map of the City of Henderson is hereby AMENDED from INNER CITY RESIDENTIAL (R-3), INNER CITY RESIDENTIAL (R-4), and GENERAL BUSINESS (GB) to AUDUBON COMMERCIAL for certain real properties as described by the Summary hereabove and more specifically shown by plat marked Exhibit "A" and legal description marked Exhibit B which is attached hereto and made a part hereof by reference. 2. That the map amendment is in agreement with the Henderson City- County Comprehensive Plan. 3. The City adopts by reference the findings of fact and conclusions of law of the Henderson City-County Planning Commission which includes Article XXXII, Audubon Commercial District of the Henderson City Zoning Ordinance, of the

14 Henderson made on November 5, 2013, as a result of the public hearing held on November 5, 2013, and the recommendations of the Planning Commission, as attached hereto, are adopted and incorporated herein by reference. All ordinances or parts of ordinances in conflict herewith are hereby repealed and superseded to the extent of such conflict. This ordinance shall become effective upon its legal adoption. On first reading of the foregoing ordinance, it was moved by Commissioner Robert M. Mills, seconded by Commissioner Jan Hite, that the ordinance be adopted on its first reading. DISCUSSION WAS HELD. VERBATIM DISCUSSION IS ON TAPE OF THIS MEETING. On roll call the vote stood: Commissioner Mills: AYE Commissioner Davis _AYE Commissioner Hite: AYE Mayor Austin: AYE Commissioner Pruitt: AYE WHEREUPON, Mayor Austin declared the ordinance adopted on first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. ORDINANCE NO FIRST READING ORDINANCE AMENDING ZONING REGULATIONS ORDINANCE AMENDING THE ZONING ORDINANCE REGULATIONS OF THE CITY OF HENDERSON BY ADDING ARTICLE XXXII, SECTIONS , AUDUBON COMMERCIAL DISTRICT PURPOSES On first reading of the Ordinance, it was moved by Commissioner Mills, seconded by Commissioner Pruitt, that the Ordinance be adopted. WHEREUPON Mayor Austin declared the Ordinance adopted on its first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. ORDINANCE NO FIRST READING ORDINANCE AMENDING SEC FEE SCHEDULE, OF ARTICLE III, SANITARY LANDFILL, IN CHAPTER 14, GARBAGE AND REFUSE, OF THE CODE OF ORDINANCES OF THE CITY OF HENDERSON On first reading of the Ordinance, it was moved by Commissioner Mills, seconded by Commissioner Hite, that the Ordinance be adopted.

15 WHEREUPON Mayor Austin declared the Ordinance adopted on its first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. ORDINANCE NO FIRST READING ORDINANCE AMENDING GARBAGE AND REFUSE ORDINANCE ORDINANCE AMENDING SEC , BULK REFUSE CHARGES, OF ARTICLE V, RATES AND CHARGES, IN CHAPTER 14, GARBAGE AND REFUSE, OF THE CODE OF ORDINANCES OF THE CITY OF HENDERSON On first reading of the Ordinance, it was moved by Commissioner Mills, seconded by Commissioner Pruitt, that the Ordinance be adopted. WHEREUPON Mayor Austin declared the Ordinance adopted on its first reading and ordered that it be presented for a second reading at a meeting of the Board of Commissioners. MAYOR AUSTIN asked the boy scout in the audience to come forward. Drew Reid with Troop #301 looking at the Citizen in the Community badge. Commissioner Hite said that he was her nephew and working on his Eagle Scout and asked the Board to encourage him to come back when he has earned that badge. RESOLUTION NO : RESOLUTION APPROVING REVISED MEMORANDUM OF UNDERSTANDING BETWEEN THE CITY AMD THE HENDERSON WATER AND SEWER COMMISSION, AND AUTHORIZING MAYOR TO EXECUTE SAME OF BEHALF OF CITY MOTION by Commissioner Davis, seconded by Commissioner Hite, by approving the new memorandum of understanding that further clarifies the continued responsibility and jurisdiction of the City and HWU for the management, operation and control of the operations and employees of HWU following merged functions in 2009.

16 WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature, and the date thereto, and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor November 26, 2013 ATTEST: Carolyn Williams, City Clerk RESOLUTION NO : RESOLUTION AUTHORIZING PROPERTIES LOCATED AT THE INTERSECTION OF SOUTH MAIN STREET AND HACKBERRY STREET (PVA PARCELS AND 46A-104) AS SURPLUS PROPERTIES WHICH SHALL BE SOLD BY SEALED BIDS MOTION by Commissioner Davis, seconded by Commissioner Mills, by authorizing property located near the intersection of South Main Street and Hackberry Streets as surplus properties to be sold by sealed bids. WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature, and the date thereto, and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor November 26, 2013 ATTEST: Carolyn Williams, City Clerk RESOLUTION NO : RESOLUTION GRANTING PROPERTY REASSESSMENT MORATORIUM FOR THOMAS B. LOGAN FOR PROPERTY LOCATED AT 801 SOUTH MAIN STREET, HENDERSON, KENTUCKY MOTION by Commissioner Mills, seconded by Commissioner Davis, adopting the resolution granting a property reassessment moratorium for Dr. Thomas B. Logan for property located at 801 South Main Street.

17 WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature, and the date thereto, and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor November 26, 2013 ATTEST: Carolyn Williams, City Clerk RESOLUTION NO : RESOLUTION AWARDING BID FOR THE SALE OF ACRES OF AGRICULTURAL PROPERTY KNOWN AS THE GIBSON FARM TO THE BRAE, LLC, OF HENDERSON, KENTUCKY, IN THE AMOUNT OF $100,000 MOTION by Commissioner Mills, seconded by Commissioner Hite, adopting the resolution authorizing the award of a bid for the sale of acres of agricultural property known as The Gibson Farm to BRAE, LLC, in the amount of $100,000. MAYOR AUSTIN added that Fiscal Court owns one-half of this property and has approved the sale. WHEREUPON Mayor Austin declared the Resolution adopted, affixed his signature, and the date thereto, and ordered that the same be recorded. /s/ Steve Austin Steve Austin, Mayor November 26, 2013 ATTEST: Carolyn Williams, City Clerk CITY MANAGER S REPORT: MR. RUSSELL R. SIGHTS, CITY MANAGER, asked Mr. Newman to come forward. Pursuant to Ms. Debby Douglas s visit on the November12th meeting, we engaged with local survey company to establish the right of way along the west side of Main Street from Sand Lane down to Horseshoe Drive. We met with Ms. Douglas and discussed with her where the right of way was, etc. She understood what we were proposing and had no objections to it. Each property owner in that area will receive a letter asking them to contact us if they have any questions. We have not received any input.

18 MOTION by Commissioner Pruitt, seconded by Commissioner Hite, to allow the substitution of this project from next year to this year and proceed on with it. COMMISSIONER S REPORTS: COMMISSIONER MILLS congratulated the staff for doing such a good job on our audit report. COMMISSIONER PRUITT wished everyone a Happy Thanksgiving and asked everyone to think about somebody less fortunate that yourself. The City of Henderson is in a good financial shape and we did make an adjustment in our health plan that helped the city with their financial condition but asked everyone to think about that $1 million in the health department category because the city employees pack that expense. I ask you to think about them. COMMISSIONER DAVIS agreed that our audit was very good as well as the Water and Gas Departments. Thanksgiving is a time for remembering those less fortunate. Remember to bring out the kids for the Christmas Parade and bring money to Shop Henderson. MAYOR AUSTIN announced the Gov. Brashear announced that the City of Henderson was granted a $40,350 sum to support the East End Park. REAPPOINTMENT: WATER AND SEWER COMMISSION GEORGE F. JONES III TERM TO EXPIRE JANUARY 12, 2017 MOTION by Commissioner Davis, seconded by Commissioner Mills, upon recommendation of Mayor Austin, to reappoint George F. Jones III to a three-year term on the Water and Sewer Commission. Said Term to expire January 12, JOINT REAPPOINTMENT: CITY-COUNTY AIRPORT BOARD KIMBER HEDDENS, JR. TERM TO EXPIRE JANUARY 5, 2018 MOTION by Commissioner Hite, seconded by Commissioner Pruitt, upon recommendation of Mayor Austin, to reappoint Kimber Heddens, Jr. to a four-year term on the City County Airport Board. Said Term to expire January 5, 2018.

19 EXECUTIVE SESSION: LITIGATION AND REAL ESTATE MOTION by Commissioner Pruitt, seconded by Commissioner Hite, that the Board of Commissioners go into Executive Session pursuant, to KRS (1)(c) for discussion of proposed or pending litigation against or on behalf of the city as well as pursuant to KRS (1)(b) for deliberations on the future acquisition or sale of real property by the city located at the corner of Second and Water Streets. MEETING RECONVENE: MOTION by Commissioner Pruitt, seconded by Commissioner Mills, the Board of Commissioners reconvened in regular session. MEETING ADJOURN: MOTION by Commissioner Mills, seconded by Commissioner Davis, to adjourn the meeting. WHEREUPON Mayor Austin declared the meeting adjourned at approximately 7:30 p.m.

20 Steve Austin, Mayor December 10, 2013 Carolyn Williams, City Clerk