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14 SEP 04 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING SEPTEMBER 4, 2014 7:00 P.M. – 7:30 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 September 4, 2014 at the regular meeting place of the City Council. Alderman Bolden delivered the invocation and Mayor Fletcher led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Elliott, Bolden, McCleary, Sansing, Mashburn, Traylor, Twitty, Robinson, and Howard answered ROLL CALL. Mayor Fletcher also answered ROLL CALL declaring a quorum. Aldermen Ray was absent. PRESENT NINE (9), ABSENT (1). Others present for the meeting were: City Attorney Robert Bamburg, Finance Director of Administration Jim Durham, Director Cheryl Erkel, Public Works Director Jim Oakley, Police Chief Kenny Boyd, Fire Chief Alan Laughy, CDBG Director Theresa Watson, IT Director Scott Rothlisberger, Glenda Fletcher, Patrick Thomas, interested citizens, and members of the press. PRESENTATION OF MINUTES: Mayor Fletcher presented the minutes of the regular City Council meeting of August 21, 2014 for approval and/or correction at the next regularly scheduled City Council meeting. APPROVAL AND/OR CORRECTION OF MINUTES: Alderman Howard moved, seconded by Alderman Sansing that the minutes of the regular City Council meeting of 7 August 2014 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/ENGINEERING DEPARTMENT Alderman Bolden moved, seconded by Alderman Traylor to approve the regular monthly report for August 2014. PERMITS/LICENSE ISSUED INSPECTIONS PERFORMED Building Permits 12 Building Inspections 22 Business Licenses 9 Electrical 28 Plumbing 18 HVACR 10 ROLL CALL: Aldermen: Elliott, Bolden, McCleary, Sansing, Mashburn, Traylor, Twitty, Robinson, and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENTS: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING SEPTEMBER 4, 2014 7:00 P.M. – 7:30 P.M. SANITATION DEPARTMENT: DISCUSSION regarding the purchase of a new yard waste grinder Public Works Director Jim Oakley informed the City Council that the yard waste grinder has been broken for almost a month, adding that it may take a few more months to get it repaired. He recalled that two years ago the grinder burned and there were no funds to purchase a new one. He related that instead a used 18-year old grinder was purchased to get by until a new machine could be purchased. He stated that monies are available to purchase a new one, noting that the original one that burned was a Vermeer Grinder. He then explained that there is a government bidding process, the National Joint Buyers Alliance of which the City is a member. He added that the bidding process has been completed and the low bid for a Vermeer Grinder is $335,430.00. He stated that he would like to expedite the purchase because the storage area is full of yard waste and they will have to begin transporting the material to North Little Rock for processing. He explained that it would cost approximately $1,500.00 for daily trips. He answered Alderman Traylor that he has researched grants but there were none available. He then answered Alderman Bolden that the new machine has a one-year warranty but an additional warranty can be purchased. He confirmed with Alderman Sansing that the funds would come from the Sanitation Fund and those funds are available. He added that he intends to purchase full-coverage insurance. He then explained that the hammers are the main normal wear component that has to be replaced. In response to a question from Alderman Traylor, he answered that he has already spent approximately $8,000.00 to repair the broken grinder, adding that there are also some bearing that are on order because the machine is till vibrating. He stated that he believes the City has approximately $20,000.00 in the current grinder and he would like to request permission to place this on the market, saying that he feels the City could recoup those expenses. He then agreed with Alderman Elliott that the current grinder is smaller, quoting that it is 325hp and the Vermeer is a 460hp. Discussion ensued as the cost factor involved with having to haul the material to North Little Rock and pay to have it processed. Public Works Director Jim Oakley noted that the City can do the grinding in-house for approximately half the quoted cost of $1,500.00. He confirmed with Alderman Twitty that the current grinder is used, and that it was purchased from the City of Dardanelle for approximately $50,000.00. He added that he feels the City could recoup those funds but it would have approximately $20,000.00 in repairs. Alderman Traylor confirmed with Finance Director Cheryl Erkel that the Sanitation Fund is still paying the loan regarding the automated garbage trucks. She then answered that the Sanitation Fund has the available funds to purchase the new grinder. 2 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING SEPTEMBER 4, 2014 7:00 P.M. – 7:30 P.M. Discussion ensued regarding the feasibility of purchasing a new grinder on a lease option. Public Works Director Jim Oakley stated that he has been conservative with the Sanitation Funds and they are fortunate enough to be able to purchase a new grinder without having to pay interest on a lease option to buy. He stated that the machine is used approximately two days weekly. He then explained that six to ten loads of material are hauled daily in the summer time. He stated that not only would the City have to pay the $1,500.00 daily for processing the material but the time it would take to haul the material to North Little Rock. He clarified that the $1,500.00 is tipping fees only. He explained that it takes less time to grind the material than it does to haul it, saying that they can do a week’s worth of grinding in two days. He then answered that the money set aside was for equipment depreciation on a 7 or 10 year cycle. It was then clarified that the depreciation funds are for any equipment used by the Sanitation/Recycling Department. He stated that the goal is not to borrow money but purchase the equipment as need with the depreciation funds. He explained that the Department has to be run very conservatively in order to fund depreciation. Alderman Traylor questioned why the item is not being put out for bid. Public Works Director Jim Oakley explained that the bidding process has already been vetted by a government agency; he added that this is an option for the City to “piggy-back” off the government bid that has already bid this machine. Finance Director Cheryl Erkel noted that the process is the same as when the City uses the State contract regarding the bidding process. She explained that the State has already bid the item and the same prices are available to the municipalities. Public Works Director Jim Oakley added that in this process the prices are available to all 50 States, saying that it is a national bid process for all government agencies. He then answered that it was used before when the City purchased a fire truck. He then answered that annually it would costs approximately $250,000.00 to haul and process the material offsite. He continued saying that his plan is to repair the current machine and be able to resale it to recoup the purchase price of the temporary smaller machine. Mayor Fletcher stated that City Attorney Bamburg would need direction in the case of an Ordinance being available at the next City Council meeting. Discussion ensued regarding the costs of hauling and having the material grinded in North Little Rock; Public Works Director Jim Oakley stated that while he would love to get out of the business of grinding it saves the City a substantial amount of money by doing its own grinding. 3 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING SEPTEMBER 4, 2014 7:00 P.M. – 7:30 P.M. Alderman Bolden stated that he proposed the lease option to buy because it would allow the City to put a certain amount down and then pay on the equipment. He asked that Public Works Director Jim Oakley research the particulars of a lease option and bring that information back to the City Council. He issued concerns for using all the deprecation funds for this without consideration to any other unexpected event. Public Works Director Jim Oakley agreed that leasing could be an option, adding that a direct purchase would also still leave a small amount of funds in the Sanitation Fund. He noted that a CD only carries less than 1%, while it would cost 2% to borrow. Discussion ensued regarding the need for a greater hp than the current smaller 325hp grinder. He explained the greater hp help perform the task in less time. He added that the lesser hp machine has been down more than it has been functioning. He then noted that the smaller engine machine is not manufactured anymore, explaining that the same size machine has much greater hp. He then answered that there are at least three manufactures located in the State. It was clarified that if the item is bid and comes back higher than the national government bid, the lower bid can still be purchased. It was noted that a competitor bidder is in the audience. Public Works Director Jim Oakley noted that the demo has 840 hours and is at the same costs ($350,000) of the one that is being proposed for purchase. Alderman Traylor moved, seconded by Alderman Twitty to put the item out for competitive bidding with an additive extended warrant and options for a lease agreement. Public Works Director Jim Oakley explained that the process could take a couple of months. He noted that bid specifications would have to be drawn up by an engineering firm and advertised. He then answered Alderman Bolden that in the meantime the City would have to pay to have the material processed and the 1/3 of each day per truck would be missed on travel. He surmised that it would take 45 minutes to North Little Rock and back, totaling six loads daily. He stated that this would impede the Department from getting the sanitation routes completed. Alderman Elliott noted that is one of the advantages of having the State and Federal contracts that are bid, because the bidding process is so lengthy. He added that is okay if the Council understands that extra funds will be used to process the material in North Little Rock during the bidding process. He then acknowledged that bidding could bring a better pricing. Public Works Director Jim Oakley then responded that in the meantime they would continue to work on having the current grinder repaired. He stated 4 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING SEPTEMBER 4, 2014 7:00 P.M. – 7:30 P.M. that his goal is to have it back running in the next few weeks. He then answered that the bearings ordered for the current grinder were $1,600.00 each. Alderman Bolden clarified that if the City does not go ahead a purchase it would cost $1,500.00 daily, which is additional funds. He stated that while he supports the process for competitive bidding, he is not in favor of spending $1,500.00 daily for process the current material. Discussion ensued regarding being able to save those additional funds regarding material processing if the current machine is able to be repaired and the issue could be readdressed at the next regularly scheduled City Council meeting. It was noted that the current machine would still have to be repaired if it is to be sold as part of the consideration for recouping funds. At this time, MOTION CARRIED with Aldermen Elliott, Mashburn, Traylor, Twitty, and Robinson voting AYE. Aldermen Bolden, McCleary, Sansing, and Howard voting NAY. PARKS & RECREATION: PLANNING COMMISSION: GENERAL: a. RESOLUTION 718 (#13-2014) A RESOLUTION EXPRESSING SUPPORT FOR THE CREATION OF AN INDEPENDENT SCHOOL DISTRICT FOR THE CITY OF JACKSONVILLE, ARKANSAS; AND, FOR OTHER PURPOSES Alderman Traylor moved, seconded by Alderman Twitty to read Resolution 718 (#13-2014) MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 718 (#13-2014). Alderman Sansing moved, seconded by Alderman Bolden to approve Resolution 718 (#13-2014) in its entirety. MOTION CARRIED. b. Information on cancelled “Jacksonville Day” event Mayor Fletcher stated that his office had received many phone calls regarding the event being cancelled, saying that he would like to go on record that this was not a City sponsored event. He added that it was being proposed by an individual. He related that his concern is that he would not want anyone to mistakenly believe that this function is taking the place of, or had anything to do with the City’s FestiVille event. Parks and Recreation Director Kevin House stated that the Jacksonville Day event was an individual that had rented the Park pavilion but never paid for the pavilion. He agreed that there was a lot of confusion with citizens believing this was a City sponsored event. He went on to say thth that the City FestiVille will be held September 26 and 27 and will go on as planned. 5 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING SEPTEMBER 4, 2014 7:00 P.M. – 7:30 P.M. Alderman Elliott stated that he may have mistakenly voted different then he should have, adding that if the machine is not fixed in two weeks then there could be an ordinance to allow for the purchase off the national contract without going through a full bidding process. City Attorney Bamburg stated that an Alderman or the Mayor would have to direct and sponsor the ordinance for presentation at the next City Council meeting. Alderman Bolden stated that he would be willing to sponsor the ordinance in order to take care of the purchase on a timely basis. Mayor Fletcher stated that if an ordinance is to be presented at the next City Council meeting, City Attorney Bamburg would need to have enough notice to draft the ordinance for distribution with the agenda. ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 7:30 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer 6