In other news, commission balks at paying for construction inspection fees for long overdue Wathen Lane project
A decision concerning replacing the nearly 40-year-old heating and air conditioning system in the city’s portion of the Peabody building needs to come soon, Assistant City Manager Buzzy Newman told the Henderson City Commission at a special called meeting on July 15.
“We’re sort of at the end of the road where we need to make a decision, and soon,” Newman said. “What I would propose is to come back at our next meeting (this Tuesday) and give you an idea of what we need to do.”
Upgrades to equipment in the building’s mechanical room that were first estimated at about $1 million have expanded to building-wide work, including a new heating system, that he said are now estimated at $3.5 million. “Very expensive,” he observed.
And not fully anticipated.
“I can tell you this was not on the radar screen in our capital planning,” Newman said. But he noted that HVAC systems in other city buildings, including the Henderson Municipal Center, are also aging and will someday “have to be addressed.”
He said he briefed the commission on the matter because word of Peabody air conditioning failures during this sweltering summer weather have been circulating in news and social media reports.
Air conditioning in the city’s portion of the building began failing when a problem developed in the system’s chiller, Newman said.
Then the compressor that serves the air conditioning system for the second floor of the building failed, Wes Hite, the city’s facilities maintenance superintendent, said.
A temporary cooling unit was installed for the second floor, but “it’s still not doing what it needs to do,” Hite said.
Newman said some workers have been given the option to relocate for the time being to the former Henderson Municipal Power & Light office at Fifth and Water streets.
So far, the city codes department personnel and a couple of police department administrators have relocated there, Newman said. They may return to the Peabody after the summer heat subsides.
The 911 department is served by a different air conditioning system and remains in the Peabody, as has the planning commission staff.
Some failures within the air conditioning system, which was installed in 1986, didn’t come as a surprise, he said.
“We knew this day was coming with the chiller,” Newman said. In February, the city hired Hafer, an Evansville-based engineering, architecture and design firm, to provide mechanical and electrical engineering services and oversee upgrades to the building’s HVAC mechanical system.
Then came subsequent failures in the air conditioning system. “It all sort of fell apart at a time when they were getting started with the design work,” Newman said.
The city in conjunction with Hafer began discussions with an HVAC vendor through the national buying group Sourcewell. Over time, the scope of the project grew to include not just equipment in the building’s mechanical room, but work above the ceilings throughout the building.
“Needless to say, the cost of the project far exceeded what any of us anticipated,” Newman said.
To cover some of the cost, the commission amended two ordinances to free up investment earnings from general obligation bonds the city issued in 2023 and remaining proceeds from a 2024 bond issue. Newman didn’t immediately have the exact amount of money that will provide, but he confirmed it was in the six-figure range.
Delivery of a new chiller will take six to eight months, Newman said. “If we ordered it tomorrow, it would be February or March of 2026 that we’d we get it. So we’re going to miss the cooling cycle this year to get it repaired.”
Jess Park, Hafer’s lead mechanical designer for the project, said the new HVAC system will use an air-cooled chiller “which is one of the more efficient systems we can go with at this point.”
The new heating system will use more efficient natural gas-fired boilers, which should deliver “big energy savings,” Park said.
But replacing heating and air conditioning systems quickly in an occupied building will be a challenge, he said.
In other business:
Wathen Lane inspection
The commission is resisting paying for construction inspections that have taken place during months of delays in the Wathen Lane widening project.
The city awarded a $4.1 million contract in January 2024 to Yager Materials of Owensboro to widen 1.4 miles of Wathen Lane, add curbs and gutters and build an eight-foot-wide multi-use path on the golf course side of the road. Federal funds cover 80% of the work, with the city paying 20%.
Work was supposed to be completed by Dec. 15, 2024. Seven months later, the project is still ongoing, as is inspection work by a third party, Palmer Engineering Co. of Winchester. After a sale of Yager’s assets to another company last year, the work is now being performed by Hinkle Contracting Co.
Palmer recently requested it be paid an additional $355,397 for its inspection work over several months, for which the city’s 20% share would be $71,079.
Mayor Brad Staton objected to the request. “The problem I have … (is) the inspection services were not the fault of the city of Henderson. It’s because of the project running over. I do not feel that the city of Henderson owes that money. I think it should be the contractor.”
City Manager Dylan Ward noted in a memo that contractor Hinkle is under a $700-per-calendar-day liquidated damages clause in its contract. But that would pay for only a fraction of what Palmer is seeking.
The commission voted 5-0 to table the matter so it can explore legal remedies.
Meanwhile, the slow pace of progress has been lampooned on a Facebook page, Friends of Wathen Lane, in recent months.
SportsPlex attendee rules
The commission unanimously approved rules of conduct for people attending or participating in events at the Deaconess Henderson SportsPlex.
The 26-point order prohibits conduct such as fighting; using foul, abusive or threatening language or gestures; bringing an animal other than a service animal to the SportsPlex; bringing outside food or beverages to the facility; or using a skateboard or scooter at the facility.
“Some are obvious, some are specific to the complex,” Ward said.
Violation of the rules, which will be posted, may result in offenders being expelled from the premises, being arrested or being banned from the venue.
Meanwhile, Ward reported that 15 tournaments have already been booked at the SportsPlex for 2026.
Nonprofit funding
The commission approved $130,000 in funding for 22 local nonprofits for the 2025-2026 fiscal year including:
- Audubon Area Community Services Senior Services, $1,500 for stipends for senior companion and foster grandparents to help offset the cost of volunteer travel and meals in support of elder citizens in the community.
- Cliff Hagan Boys & Girls Club, $7,500 for staffing, summer programs, membership scholarships, funding for family engagement events and extended operating hours for teen members, Life & Workforce Readiness programs, supplement the hourly wages of their part-time Youth Development Professionals, transportation and operations costs.
- Green River Regional Rape Victim Services (New Beginnings), $4,000 towards two full-time therapists, clinical staff, training, supplies and promotion of services, and other office expenses for the benefit of survivors of sexual violence.
- Henderson Area Arts Alliance, $4,500 for coordinating community arts programming; presentation of performing and visual arts at the Preston Arts Center; hospitality and hosting visiting artists; promotional materials; educational programs; and encourage participation among local artists and musicians.
- Christian Community Outreach, $15,000 for food pantry items, focusing on ready to eat, shelf-stable foods to serve children and adults in the community.
- Henderson County Family YMCA, $5,000 for staffing, supplies, and teaching materials for teaching water safety and swim lessons to every third grader in the city and county.
- Henderson Kentucky Education Foundation, $5,000 for expenses related to the Dolly Parton’s Imagination Library Foundation.
- Involvement Inc., $1,500 for various programs including no insurance, adult and juvenile community service, adult drug screen, breathalyzer test and adult and juvenile home incarceration.
- Junior Achievement of West Kentucky, $2,500 for program materials, student activities, volunteer training, financial literacy awareness, marketing, recruitment and program management fees.
- New Hope Animal Rescue Center, $3,000 for medical expenses on surrendered animals, food, supplies, utilities and building maintenance.
- Ohio Valley Art League (OVAL), $1,000 for promoting the organization’s art exhibits and community events.
- Owensboro Area Shelter, Information & Services Inc. (OASIS), $6,500 for transitional housing, including rent, utilities, and other housing expenses, in Henderson for domestic violence clients.
- River Valley Behavioral Health – The Port Youth Drop In Center, $15,000 for holiday events and field trips for youth.
- Riverview School, $4,000 for of administration and operation of its programs.
- St. Anthony’s Hospice, $10,000 for hospice, palliative, and bereavement care; assistance in cremation expenses for indigent patients in hospice care; prescription medication and medical equipment; food expenses; EMS/ambulance transport of hospice patients and other expenses.
- The Gathering Place Henderson County Senior Citizens Center, $7,500 to support the Meals on Wheels programs for homebound and congregate meal services to senior citizens aged 60 and older.
- Salvation Army, $10,000 for its lunch feeding program.
- Volunteer and Information Center, $1,000 for iPads to track participants in the Adopt-a-Family program.
- Bluegrass in the Park Folklife Festival Inc., $7,500 to organize, promote and present the 39th annual Bluegrass in the Park Folklife Festival.
- Henderson Songfest Inc., $6,000 to organize, promote and present the Sandy Lee Songfest.
- Sons of Henderson, $3,000 to organize, promote and present the 2025 Summerfest event.
- Henderson Chamber of Commerce and Downtown Henderson Partnership Committee, $1,500 to organize, promote and present the Juneteenth Celebration Event.
HCC security
The commission approved a memorandum of understanding with Henderson Community College to provide a police officer or equivalent employee to patrol and provide security at the college and special campus events. HCC will reimburse the Henderson Police Department $57,101 over the next 12 months.
Human Resources Report
The commission approved a report detailing new hires, position changes, departing employees and vacant positions, which included 26 city vacancies (including six seasonal pool positions) and eight vacancies at Henderson Water Utility.
City attorney salary
The commission approved a 2% increase in City Attorney Dawn Kelsey’s salary after she received a superior rating in her annual performance review.
Sidewalks
The commission approved first reading of an ordinance accepting 94 linear feet of four-foot-wide sidewalks on Audubon Street.
Recognition of new employees
Seven new city employees were introduced, including:
• Gas system equipment operator Gavyn Donnetta
• Police officer Isaac Gaston
• Police officer Nathaniel Shattuck
• Police officer Christian Fowler
• Police officer Donavon Lewis
• Bryce Nunley, municipal facilities worker III, Public Works Department
• Parks & Recreation Director Thomas Kenney
Executive session
The commission went into a closed executive session for about 20 minutes to discuss what Commissioner Rodney Thomas said was proposed litigation against the city.
