14 JAN 02
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
JANUARY 2, 2014
7:00 P.M. – 7:28 P.M.
REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE
The City Council of the City of Jacksonville, Arkansas met in regular
session on January 2, 2014 at the regular meeting place of the City
Council. Mayor Fletcher delivered the invocation and led a standing
audience in the “Pledge of Allegiance” to the flag.
ROLL CALL: Aldermen: Elliott, Bolden, Sansing, Mashburn, Traylor, Twitty,
Robinson, and Howard answered roll call. Mayor Fletcher also answered ROLL
CALL declaring a quorum. PRESENT EIGHT (8), ABSENT (2). Aldermen McCleary
and Ray were absent.
Others present for the meeting were: City Attorney Robert Bamburg,
Finance Director Cheryl Erkel, City Engineer Jay Whisker, Director of
Administration Jim Durham, Public Works Director Jim Oakley, Police
Captain Kelley Smiley, Parks and Recreation Director Kevin House, CDBG
Director Theresa Watson, Fire Chief Alan Laughy, 911 Communications
Director Tabby Hughes, Planning Commissioner Jim Moore, Johnny Simpson,
interested citizens, and members of the press.
PRESENTATION OF MINUTES:
Mayor Fletcher presented the minutes of the regular City Council meeting
of December 19, 2013 for approval and/or correction at the next regularly
scheduled City Council meeting.
APPROVAL AND/OR CORRECTION OF MINUTES:
Alderman Bolden moved, seconded by Alderman Howard that the minutes of
the regular City Council meeting of 10 December 2013 be APPROVED. MOTION
CARRIED.
CONSENT AGENDA:
WATER DEPARTMENT:
WASTEWATER DEPARTMENTS:
FIRE DEPARTMENT:
POLICE DEPARTMENT:
STREET DEPARTMENT:
SANITATION DEPARTMENT:
PARKS & RECREATION:
PLANNING COMMISSION:
GENERAL: a. ORDINANCE 1508 (#1-2014)
AN ORDINANCE AUTHORIZING AN AMENDED LEASE/PURCHASE AGREEMENT FOR THE 911
COMMUNICATION DIGITAL EQUIPMENT BY MODIFICATION OF A SHORT TERM
PROMISSORY NOTE WITH SECURITY PLEDGE; PROVIDING FOR PAYMENT OF THE
PRINCIPAL OF AND INTEREST ON THE NOTE; DECLARING AN EMERGENCY; AND,
PRESCRIBING OTHER MATTERS RELATING THERETO.
Finance Director Cheryl Erkel stated that the original agreement with
Motorola was 0% interest regarding $2,497,527 financed over five years.
She continued saying that the first year was one payment of $87,413.43
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CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
JANUARY 2, 2014
7:00 P.M. – 7:28 P.M.
and the remaining four years were also one payment due each January of
$602,528.30. She explained that through negotiations with Motorola they
agreed to refinance the remaining amount over another five-year term with
an interest rate of 3.243%. She related that the total principal plus
interest will total $2,661,435.00. She explained that in January 2014
there is a payment of $147,750.00 and then the remaining 11 months will
be $27,011.26 each month. She continued saying that the $27,011.26 would
continue for 34 months with the last 24 months would be equal payments of
$66,470.91. She related that the annual total for 2014 would be
$444,873.86 compared to the $602,528.30 under the previous agreement. The
second year would be $324,135.12 and the third year would be $363,594.77.
She then explained that the fourth and fifth years will be more than the
original $602,528.30, saying that the fourth year would be $797,750.92
and the fifth year would be $731,180.00. She added that there would be
no penalty if the loan is paid off early.
Mayor Fletcher stated that the new agreement offers smaller payments and
a better ability regarding cash flow.
Finance Director Cheryl Erkel agreed saying that it allows for monthly
payments instead of just one annual payment. She answered Alderman
Traylor that the City did make the $87,413.43 in 2013 and the Ordinance
reflects the remaining amount due not including the $87,413.43 first year
payment.
Discussion ensued as to whether the first payment would start in January
or March.
Alderman Traylor questioned how much was put into the 2014 budget
regarding payments to Motorola.
Finance Director Cheryl Erkel stated that the amount was not broken down
in the budget document, adding that she believes she budgeted for the
monthly payments as well as the onetime payment of $147,750.00.
Mayor Fletcher noted that negotiations were being conducted with Motorola
before completing the budget.
Finance Director Cheryl Erkel noted that the budgeted amount would be
under the debt service (Department 13) in the budget. She stated that
she thought it was broken down by each individual loan but evidently it
was not.
Alderman Bolden moved, seconded by Alderman Howard that Ordinance 1508 be
placed on FIRST READING. ROLL CALL: Alderman Elliott, Bolden, Sansing,
Mashburn, Traylor, Twitty, Robinson, and Howard voted AYE. NAY (0).
MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of
Ordinance 1508.
Alderman Sansing moved, seconded by Alderman Bolden to APPROVE Ordinance
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1508 on FIRST READING and suspend the rules and place Ordinance 1508 on
SECOND READING. ROLL CALL: Alderman Elliott, Bolden, Sansing, Mashburn,
Traylor, Twitty, Robinson, and Howard voted AYE. NAY (0). MOTION
CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance
1508.
Alderman Bolden moved, seconded by Alderman Sansing to APPROVE Ordinance
1508 on SECOND READING and further suspend the rules and place Ordinance
1505 on THIRD AND FINAL READING.
In response to a question from Alderman Traylor, Finance Director Cheryl
Erkel stated that Motorola was the only negotiations in regard to
refinancing this loan.
Alderman Traylor questioned why loan interest rates quotes were not bid.
Mayor Fletcher stated that the biggest reason was the timing factor. He
then answered that Motorola carried the note for two years without
interest.
Alderman Traylor stated that he understands that the original agreement
was with 0% interest, adding that the City did not make payments before
having to refinance with an interest. He questioned if the City tried to
obtain a loan with a better interest rate.
Mayor Fletcher stated that the City did not and that there is not time to
do that before a payment is due under the original agreement.
Director of Administration pointed out that the Shooting Range interest
rate was 3.1%, which is almost identical to what Motorola is offering. It
was noted that quotes were obtained regarding the loan for the Shooting
Range. He then pointed out that under State law if the City were unable
to make the payments they could not repossess the equipment, by law
Motorola is required to negotiate and come to some type of terms.
Alderman Bolden stated that another consideration is the fact that there
is no penalty for early repayment so there is nothing to restrict the
City from investigating a lower interest rate.
ROLL CALL: Alderman Elliott, Bolden, Sansing, Mashburn, Traylor, Twitty,
Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City
Attorney Bamburg read the heading of Ordinance 1508.
Alderman Bolden moved, seconded by Alderman Sansing that Ordinance 1508
be APPROVED AND ADOPTED. ROLL CALL: Alderman Elliott, Bolden, Sansing,
Mashburn, Traylor, Twitty, Robinson, and Howard voted AYE. NAY (0).
MOTION CARRIED.
Alderman Sansing moved, seconded by Alderman Bolden that the EMERGENCY
CLAUSE be approved and adopted. ROLL CALL: Alderman Elliott, Bolden,
Sansing, Mashburn, Traylor, Twitty, Robinson, and Howard voted AYE. NAY
(0). MOTION CARRIED.
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ORDINANCE 1508 (#01-2014) APPROVED AND ADOTED THIS 2 DAY OF JANUARY,
2014
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Director of Administration Jim Durham stated that he researched his email
and there is not a payment in January under the new agreement. He stated
that the $147,750 payment is due in February and then the $27,011.26
starts in March.
b. Roadways Update by City Engineer Whisker
City Engineer Whisker presented a PowerPoint presentation of the before
and after photographs regarding the 18 months of construction on Graham
Road. He stated that the construction is almost complete and it is a
major improvement to the area. He reviewed the new design plans around
Oak and Elm Street to allow for having two-way traffic. He stated that
the Highway Department has to wait to finish because it has to be 40° in
order to lay asphalt.
He then related that most of the utilities have been relocated for the
Harris Road project, explaining that the project has been rebid for the
third time. He stated that the project will come in just under 1 million
dollars, adding that with help from the County Judge all the monies have
been set aside for the project.
He stated that the Highway Department is about to take bids for Redmond
and West Main project, adding that they have already begun doing their
surveys. He stated that this project would widen Hwy. 67/167 over
Redmond and Main, adding that Redmond and West Main were bid together.
He then noted that they plan to raise part of the bridge to help with
drainage issues.
He then informed the City Council that the plan option to widen Hwy.
67/167 north of Main Street to off-ramp north of Vandenberg has been
chosen by the Highway Department and a map of those proposed improvements
is in his office.
Discussion ensued regarding the effectiveness of round-a-bouts at
intersections versus signalization.
APPOINTMENT(S): PLANNING COMMISSION
Alderman Howard moved, seconded by seconded by Alderman Bolden to approve
the reappointments of Avis Twitty, Rick White, and Jim Moore to the
Planning Commission for terms to expire 1/1/2017. MOTION CARRIED.
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ANNOUNCEMENT(S): City Offices will be closed Wednesday, January 1 for
New Year’s Day, sanitation routes will run one day late.
Mayor Fletcher announced that a tour of the Shooting Range would
immediately follow the City Council meeting for those wishing to see the
completed Shooting Range.
ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at
approximately 7:28 p.m. MOTION CARRIED.
Respectfully,
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________________________ _________________________
Susan L. Davitt MAYOR GARY FLETCHER
City Clerk-Treasurer
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