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15 NOV 5 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 5, 2015 7:00 P.M. – 7:27 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 November 5, 2015 at the regular meeting place of the City Council. Alderman Howard delivered the invocation and Alderman Bolden sang the “Star Spangled Banner”. ROLL CALL: Aldermen: Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard answered ROLL CALL. Mayor Fletcher also answered ROLL CALL declaring a quorum. PRESENT EIGHT (8), ABSENT (2). Aldermen McCleary and Smith were absent. Others present for the meeting were: City Attorney Robert Bamburg, Finance Director Cheryl Erkel, Fire Chief Alan Laughy, Police Chief Kenny Boyd, Public Works Director Jimmy Oakley, IT Director Scott Rothlisberger, CDBG Director Theresa Watson, Parks and Recreation Director Kevin House, 911 Director Tabby Hughes, Accounts Receivables Specialist Nikki Wilmoth, Planning Commission Chairman Jim Moore, Planning Commissioner Patrick Thomas, Ron McDaniel, Johnny Simpson, Otis Stewart, Lida Feller, Jeff Twitty, and interested citizens, and members of the press. PRESENTATION OF MINUTES: Mayor Fletcher presented the minutes of the regular City Council meeting of October 15, 2015 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 1 October 2015 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/ENGINEERING DEPARTMENT Alderman Ray moved, seconded by Alderman Bolden to approve the regular monthly report for October 2015. PERMITS/LICENSE ISSUED INSPECTIONS PERFORMED Building Permits 15 Building Inspections 36 Business Licenses 8 Electrical 43 Plumbing 40 HVACR 16 ROLL CALL: Aldermen: Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, Twitty, and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: RESOLUTION 733 (#09-2015) A RESOLUTION REQUESTING DENIAL OF THE REQUESTED REDUCTION OF THE JACKSONVILLE WATER WORKS SERVICE TERRITORY BY THE CITY OF SHERWOOD AND CENTRAL ARKANSAS WATER AS PROPOSED TO THE ARKANAS NATURAL RESOURCES COMMISSION; AND, FOR OTHER PURPOSES. 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 5, 2015 7:00 P.M. – 7:27 P.M. City Attorney Bamburg related that the City of Sherwood and Central Arkansas Water have submitted a proposal to the ANRC requesting a portion of the Jacksonville Water Department’s service territory, adding that the City is in opposition for several reasons primarily because it is never good to reduce the service territory, also this was a service territory map that was agreed to in 2009, which included Central Arkansas Water, City of Sherwood, and several other entities. He stated that the th information will be presented to the ANRC on November 19, pointing out that it is important for the City Council to support the Water Department by indicating that they do not support any reduction to the City of Jacksonville’s service territory. Alderman Ray moved, seconded by Alderman Sansing to read Resolution 733 (#9-2015). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 733 (#09-2015). Alderman Ray moved, seconded by Alderman Sansing to approve the adoption of Resolution 733 (#09-2015) in its entirety. MOTION CARRIED. WASTEWATER DEPARTMENTS: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: DISSCUSSION: Closing a portion of Sharp Street Mayor Fletcher stated that last Monday night the School Board studied three proposed locations and the location that was selected unanimously by the Board was the former middle school property, adding that one condition was that Sharp Street from Main Street to School Street be closed to accommodate a better building site. He proposed to set a Public Hearing through Planning Commission on December 14, 2014 regarding the Sharp Street closure. Alderman Bolden moved, seconded by Alderman Traylor to request that the Planning Commission set a Public Hearing on December 14, 2015 at their regularly scheduled meeting to address closing a portion of Sharp Street. MOTION CARRIED. SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: PUBLIC HEARING ORDINANCE 1536 (#16-2015) AN ORDINANCE AMENDING JMC §5.04.TO PROVIDE MODIFICATION OF THE CITY’S BUSINESS PRIVILEGE LICENSE REQUIREMENTS; AND, FOR OTHER PURPOSES 2 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 5, 2015 7:00 P.M. – 7:27 P.M. Mayor Fletcher opened the public hearing at approximately 7:08 p.m. In response to a question from Mr. Johnny Simpson, Mayor Fletcher answered that the business privilege license requirements are being adjusted, adding that an adjustment has not been done in approximately 40 years. He explained that the adjustment will bring the City of Jacksonville in line with what surrounding cities are charging. Mayor Fletcher closed the public hearing at approximately 7:10 p.m. Alderman Ray moved, seconded by Alderman Twitty that Ordinance 1536 be placed on FIRST READING. Alderman Elliott questioned why the square footage was capped at 10,000, adding that before the ordinance directed 2½ cents per square foot regardless of the square footage. He stated that it does not make sense to raise the lower square footage businesses, but lower the amount charged for higher square footage businesses. He stated that he would prefer it be set at $500.00 plus 2½ cents for businesses above 10,000 square foot, therefore the larger square footage is still paying a reasonable privilege tax. He stated that the bigger businesses should be paying a higher privilege tax. He reiterated that smaller square foot are raised and larger businesses are being offered a break being capped at 10,000 square foot. Alderman Howard agreed, saying he would like to see the cap at 50,000 square feet and another at 100,000 square feet, explaining that it is fair for someone that has a 15,000 square foot building paying the same as someone who has a 200,000 square foot building. He related that he has already received complaints regarding privilege tax increases, adding it is the small businesses that really need to be given consideration. He stated he would like to see an adjustment made to the Ordinance. Accounts Receivables Specialist Nikki Wilmoth explained that Finance Director Cheryl Erkel advised a committee to look at the privilege tax rates and adjust them as needed, adding that on the advisement of the committee it was decided to charge a minimum of $50.00 and a maximum of $1,500.00. She stated that Director of Administration Jim Durham had capped all new incoming businesses at $250.00, therefore the 2½ cents per square foot was capped at a $250.00 maximum. Alderman Elliott questioned if capping businesses at $250.00 is in violation of the present privilege tax Ordinance. Accounts Receivables Specialist Nikki Wilmoth stated that she had received an email from Director of Administration Durham to cap any new business at $250.00. 3 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 5, 2015 7:00 P.M. – 7:27 P.M. Mayor Fletcher stated if he recalls correctly the cap for new business was done to make it more attractive for new businesses and other cities were offering that to draw in new businesses as an incentive. Alderman Elliott stated that any such offer should have come through the City Council since this was being offered as something against what was previously set by Ordinance. He asked City Attorney Bamburg if this is correct, stating that someone cannot make such a change without amending the Ordinance. He added that he was unaware that this cap had been offered. Accounts Receivable Nikki Wilmoth explained that there was not a cap on square footage, explaining that the City assessed fees by 2½ cents per square foot and there was never a fee schedule that set a maximum rate. She stated that the committee was trying to simplify the privilege tax ordinance so that anyone working with the ordinance, the general public or someone charged with accessing the fees would be able to readily know what the fee structure would be. She related that she was asked to come up with a fee schedule that raised rates by 50%, so she compiled a schedule, adding that she and Alderman Traylor worked on addressing the schedule even further. Alderman Elliott stated that if a caps are being recommended then it should be something similar to what Alderman Howard suggested, it should be set at 10,000 to 50,000, 50,000 to 100,000, 100,000 to 200,000 etc. instead of putting a cap on it at 10,000 square foot. He asked Ms. Wilmoth why a cap would be put on a business and not charge them the full amount? Accounts Receivables Specialist Nikki Wilmoth stated the committee wanted a maximum privilege tax fee set at $1,500.00 and then it was adjusted down from there in meeting with Alderman Traylor. Mayor Fletcher offered that the Ordinance could be approved on first reading and then put back into committee, adding that it would need to be done fairly quickly because there is a deadline to get the privilege tax billing out by mid December. He added that the privilege tax ordinance will need to be voted on at the next City Council meeting in order to meet the billing deadline. Discussion ensued and it was determined that it would be better for the Ordinance to go back to committee rather than construct the changes during this City Council meeting. Alderman Traylor stated that during the committee meeting it was decided to go with the square footage rule, adding that he personally does not feel that is the right way to adjust the privilege tax rates. He stated that he worked with Ms. Wilmoth in that direction once it was established that was the desire of the committee. He added that he does not believe it is fair, questioning if a person who cuts hair in their 5,000 square foot home would be charged 4 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 5, 2015 7:00 P.M. – 7:27 P.M. for the entire 5,000 square feet? He stated that the person should be charged as a hair cutter instead of by the square feet. He stated that he believes the committee needs to consider charging by classification, which he feels is the most equitable way to construct the Ordinance. Mayor Fletcher noted that the City of North Little Rock reconstructed their privilege tax ordinance and it was approximately 57 pages. Alderman Howard stated that North Little Rock’s ordinance is very extensive; adding that he feels it would take several employees to keep up with the implementation. Ms. Wilmoth noted that a lot of the ordinance is based on the number of employees as well as inventory and other factors depending on the classification of the business. She stated that is when the committee determined that it would be easier to go by square footage because of manpower necessary to keep up with business inventory. Alderman Elliott stated that he does not have a problem with the square footage concept but he does not understand why it was capped for larger businesses while the smaller businesses were raised. Alderman Traylor noted that there are only a few businesses out of the 800 businesses that pay a privilege tax that are capped. Alderman Elliott reiterated that he does not understand why the businesses that pay more would be lowered. Alderman Howard stated that the ordinance needs a bracket for the businesses above the 10,000 square feet because 2,000 square feet opposed to 11,000 square feet is not fair regarding the rates. In response to a question from Alderman Traylor, City Attorney Bamburg answered that the purpose of the privilege tax is for a city to know who is in business and have them pay an assessment in order to conduct business within a city and also ensure the city can protect the citizens for those businesses that conduct inappropriate business practices or do not follow through with their contractual obligations. Alderman Howard conferred with Ms. Wilmoth to confirm that beauty shops were charged by each stylist paying an individual fee of $10.00 which was hard to keep up with regarding the addition and deletion of stylist. She stated that there was no way to ensure that the City had the most accurate information on file. Alderman Elliott expressed his appreciation to Ms. Wilmoth and the other committee members, but stated that he could not understand capping larger businesses. He stated that larger businesses such as Wal-Mart should pay a larger fee. 5 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 5, 2015 7:00 P.M. – 7:27 P.M. Discussion ensued regarding the deadline to have billing out by the appropriate time. Several members stated they would prefer it be right rather than be rushed. Alderman Howard seconded by Alderman Sansing moved to table the ordinance until further notice. ROLL CALL: Alderman Elliott, Bolden, Sansing, and Howard voted AYE. Aldermen Ray, Mashburn, Traylor, Twitty voted NAY (0). MOTION CARRIED with Mayor Fletcher voting AYE. Discussion ensued that there would be further committee meetings; Alderman Bolden encouraged those members interested to show up so the Ordinance could be finalized as quickly as possible. APPOINTMENTS: th ANNOUNCMENTS: City offices will be closed November 11 in observance of Veterans Day, garbage pickup will run one day later for Wednesday and Thursday routes. th 38 Annual Holiday Craft & Gift Sale will be held at the Jacksonville th Community Center Friday, November 20, 2:00 p.m. to 8:00 p.m. and st Saturday, November 21, 9:00 a.m. to 4:00 p.m. Mayor Fletcher noted that the regularly scheduled City Council meeting of rd December 3 will coincide with the Fall Municipal League Conference, asking City Council to contemplate moving or canceling the meeting. He noted that there are several other City events that week. He asked City Council members to be prepared to make a decision a the next City Council meeting. Alderman Traylor asked for a Preliminary Budget, noting that the next City Council meeting is in the middle of November. Mayor Fletcher stated that they are waiting to get numbers through the current year in order to have projections for the following year. He stated that they are currently conduction meetings with the Department heads. In response to a question from Alderman Traylor, City Attorney Bamburg stated that the budget has to be approved by February. Alderman Twitty announced that Double “R” would conduct an open house on Friday and Saturday. 6 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 5, 2015 7:00 P.M. – 7:27 P.M. ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 7:27 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer 7