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15 OCT 15 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 15, 2015 7:00 P.M. – 7:37 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 October 15, 2015 at the regular meeting place of the City Council. Alderman Howard delivered the invocation and Mayor Fletcher led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Howard answered ROLL CALL. Mayor Fletcher also answered ROLL CALL declaring a quorum. PRESENT NINE (9), ABSENT (1). Alderman Elliott was absent. Others present for the meeting were: City Attorney Robert Bamburg, Director of Administration Jim Durham, Finance Director Cheryl Erkel, Human Resource Director Jill Ross, Fire Chief Alan Laughy, Police Chief Kenny Boyd, Public Works Director Jimmy Oakley, City Engineer Whisker, IT Director Scott Rothlisberger, 911 Director Tabby Hughes, Planning Commissioner Patrick Thomas, Johnny Simpson, and interested citizens, and members of the press. PRESENTATION OF MINUTES: Mayor Fletcher presented the minutes of the regular City Council meeting of October 1, 2015 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 Bolden that the minutes of the regular City Council meeting of 3 September 2015 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/POLICE DEPARTMENT Alderman Ray moved, seconded by Alderman Twitty to approve the Regular Monthly Report for September 2015 regarding annual crime statistical comparisons. Code Enforcement for September 2015 Assigned Calls 109 Self-Initiated Calls 371 Follow ups 439 Basketball Goals 3 Meetings/Court Hearings 16 Structures Inspected 0 Citations/Warnings Issued 73 Rental Properties Inspected 13 Notices/Letters Written 19 Properties Red Tagged 0 Vehicles Tagged 4 Search Warrants Served 0 Vehicles Towed 1 Structures Rehabbed 0 Lots posted 5 Structures Condemned 0 Signs removed 61 Houses Demolished by City 0 Trash cans tagged 7 Houses Demolished by Owner 0 Parking Violations 4 Tickets Issue 0 Grass Letters 26 Grass Mowed 24 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 15, 2015 7:00 P.M. – 7:37 P.M. REGULAR MONTHLY REPORT/FIRE DEPARTMENT Alderman Ray moved, seconded by Alderman Twitty to approve the regular monthly report for September 2015 from the Jacksonville Fire Department, reflecting a fire loss of $30,600.00 and a savings total of $1,190,600.00 REGULAR MONTH REPORT/ANIMAL CONTROL Alderman Ray moved, seconded by Alderman Twitty to approve the regular monthly report for September 2015. ADOPTION FEES/FINES $1,490.00 CONTRIBUTIONS 50.00 TOTALS $1,540.00 REGULAR MONTHLY REPORT/ENGINEERING DEPARTMENT Alderman Ray moved, seconded by Alderman Twitty to approve the regular monthly report for September 2015. PERMITS/LICENSE ISSUED INSPECTIONS PERFORMED Building Permits 13 Building Inspections 45 Business Licenses 12 Electrical 25 Plumbing 35 HVACR 29 ROLL CALL: Aldermen: Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, Smith and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENTS: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: a. ORDINANCE 1535 (#15-2015) AN ORDINANCE FOR THE PURPOSE OF LEVYING ONE (1) MILL, ONE (1) MILL, AND ONE (1) MILL AGAINST ALL PERSONAL PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY OF JACKSONVILLE, ARKANSAS; FOR THE PURPOSE OF LEVYING ONE (1) MILL, ONE (1) MILL, AND ONE (1) MILL AGAINST ALL REAL PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY OF JACKSONVILLE, ARKANSAS; FOR THE PURPOSE OF EFFECTING CERTIFICATION TO THE COUNTY CLERK OF PULASKI COUNTY OF THE TAX LEVIED; AND, FOR OTHER PURPOSES. Alderman Ray moved, seconded by Alderman Bolden that Ordinance 1535 be placed on FIRST READING. ROLL CALL: Alderman Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1535. 2 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 15, 2015 7:00 P.M. – 7:37 P.M. Alderman Ray moved, seconded by Alderman McCleary to APPROVE Ordinance 1535 on FIRST READING and suspend the rules and place Ordinance 1535 on SECOND READING. ROLL CALL: Alderman Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1535. Alderman Ray moved, seconded by Alderman McCleary to further suspend the rules and place Ordinance 1535 on THIRD AND FINAL READING. In response to a question from Alderman Traylor, City Attorney Bamburg clarified that one mill each is collected for the original retirement program regarding the fire and police relief pension funds, and one mill is collected for the library. ROLL CALL: Alderman Bolden ,McCleary Sansing, Ray, Mashburn, Traylor, Twitty, Smith and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1535. Alderman Ray moved, seconded by Alderman McCleary that Ordinance 1535 be APPROVED AND ADOPTED. ROLL CALL: Alderman Bolden, McCleary, Sansing, Ray, Mashburn, Traylor, Twitty, Smith and Howard voted AYE. NAY (0). MOTION CARRIED. th ORDINANCE 1535 (#15-2015) APPROVED AND ADOPTED THIS 15 DAY OF OCTOBER, 2015. b. PRESENTATION of Jacksonville Photo Book to Mayor Fletcher Alderman Mashburn presented Mayor Fletcher with a copy of the new Jacksonville photo book, stating that proceeds are being donated to the Jacksonville Historical District. Mayor Fletcher noted that this is the second book this year written by Alderman Mashburn, adding that the first book was about the Jacksonville Fire Department. He expressed his appreciation to Alderman Mashburn. He stated that it is easy to see needs in a community and it helps to find innovative ways to help fund those projects. Alderman Mashburn noted that it costs $23.00 to purchase the Jacksonville photo book. c. STUDY PRESENTATION by 360 Energy Engineers Joseph Hurla with 360 Energy Engineers provided City Council with a summary report regarding their energy audit of the City. He reminded the City Council that a few months ago he and Keri Becton offered the City Council a brief introduction regarding 360 Energy Engineers, and since that time a team of engineers have completed an assessment of the City’s facilities looking for opportunities to reduce utility consumption and 3 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 15, 2015 7:00 P.M. – 7:37 P.M. generate fast pay back opportunities for the City, essentially looking for ways to put savings back into the City’s budget. He then added that they also looked for opportunities to upgrade facility infrastructure, pieces of equipment that are outdated and pose potential challenges in the near future. He stated that they tasked with trying to identify those two types of projects and putting together a combination that would address those infrastructure needs without adding any financial burden to the City. He related that since their engineers did a walk-through they have met with Mayor Fletcher and members of the City’s administration in several meetings to provide feedback regarding the projects. He stated that the projects list was downsized to fit the financial goals of the City while addressing the highest priority facility needs. He reiterated that the goal is to make sure that we are not increasing the funds that you have to dedicate to pay for these projects, but are looking for ways to use existing dollars to pay for projects that are going to need to happen anyway. He reviewed the summary, pointing out that on page 5 of the report “Facility Improvement Opportunities” regarding mechanical improvements is more infrastructure driven and less of a quick pay back item. He stated that there are three buildings where the HVAC upgrades are most pertinent, the Senior Wellness and Activity Center, City Hall, and the Community Center. He stated that the units are antiquated and significant enough dollar value of that equipment warrants looking at a way to proactively address that instead of waiting for the equipment to fail and replace it on an as needed basis. He related that replacing the three HVAC units will generate energy and maintenance savings by reducing repairs. He noted that City Hall has 25-year old heating and cooling equipment that is designed to last 15 to 20 years. He stated that the Community Center has 20-year old HVAC equipment that has often times been sitting in water when there is heavy rainfall. He explained that this will keep the City from having to replace the HVAC units as they fail. He pointed out that page 6 under “Building Automation System Opportunities” falls into two categories, the first is building such as in City Hall where you have gas furnaces and electric standard air conditioners, proposing to replace the existing thermostats with an Internet based control system that allows for scheduling of the equipment during unoccupied hours. He stated that this would prevent having to maintain the thermostats manually. He related that this proposal is a great opportunity for a very fast payback. He further explained that the buildings that have existing HVAC Control Systems, such as the Police Station, as well as portions of the Community Center will have their control systems retro commissioned and expanded, pointing out that there is a more sophisticated control system. He stated that they want to capitalize the opportunities to conserve more effectively and operate the systems efficiently. 4 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 15, 2015 7:00 P.M. – 7:37 P.M. In response to a question from Alderman Mashburn, he answered that if the computer systems go down you could still control the thermostat without a code by pressing an override button that will turn the system back on and allow the unit to operate for two hours before needing to press the override button again. He stated that regarding the HVAC system they are trying to capitalize on the fact that equipment can be scheduled off during unoccupied hours. He explained that on pages 9 and 10 they have outlined the “Lighting System Opportunities” for the City. He stated that currently the City is using T8 and T12 fluorescent lighting, saying that they would want to replace the older lighting technology with LED lighting. He noted that costs of LED lighting have come down dramatically, paybacks have become much more attractive, and there are utility incentives that are available. He related that this lighting would not look significantly different then what the City currently has, however it will look differently on the City’s utility bills. He stated that their proposal would not just encompass the inside facility lighting, but also the outside lighting in the parking lots that would be retrofitted as well as the perimeter lighting. He then noted that LED lighting last 3 to 5 times longer than the existing lights. He related that from a maintenance standpoint, this is the one item that has a significant maintenance component. He referred to the financial overview outlined on page 11, saying that the final scope of work would be determined in the next step of process when the lighting improvements and the HVAC upgrades are designed, putting together bid packages, solicit bids from contractors, and then come back to the City Council with final cost numbers. He stated that the figures in the preliminary engineering report are estimates. He reviewed the items with a quick payback and then items with eventual payback. He added that payback on the eventual items is not the motivation to replace the HVACs, saying that if they are not replaced before they go out; the City would have half of a million dollars plus in liabilities in the coming years. He stated that combining the fast payback items with the heating and cooling upgrades, because the upgrades are a liability and is something that is going to have to be addressed, doing it this way keeps from having to find that money in the budget without having to raise taxes or take out financing that would raise taxes. He stated that this project collectively allows for upgrades without the need for any additional dollars, all the dollars are being saved from the budget. He then pointed out that turnkey cost estimates are still just estimates, noting that it will still have to be competitively bid. He stated that the turnkey estimate is inclusive of all anticipated cost including coordination of the design, construction, material, labor, and payment performance bonds. The anticipated total cost is between $1,600,000 - $1,800,000 to be financed for a 15-year term @ 3.5% interest rate, adding that the numbers would be fine-tuned going forward. He reviewed 5 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 15, 2015 7:00 P.M. – 7:37 P.M. the estimated utility rebates, adding that there is a significant dollar amount of rebates available to the City. He stated that they would be in charge of that process to ensure that the rebates are maximized. He reviewed the utility savings, saying that it would be slightly over $100,000 annually City wide including the Senior Wellness & Activity Center. He stated that the maintenance savings is estimated to be approximately $35,000 annually, stressing that there are no assumed manpower or labor savings identified. He reviewed the cash flow projection, saying that the first payment would occur in 2017. He reviewed that the total first year savings is $138,975 and the debt payment would be $146,316, demonstrating that there would not be a positive savings until the third year. He then explained that the total savings increases the second year because they have figured in a 3% utility rate escalation, which is in line with historical rates. He stated that if the idea of having even a small negative amount in the first year is untenable, then they can adjust that scope of work and find a scope that has positive cash flow beginning in year one. He added that the proposed plan addresses the most pressing heating and cooling needs and by doing that there is a small negative cash flow the first and second years. He stated that the lighting and controls proposal is being proposed as a savings measure but the HVAC replacement will have to happen eventually. He stated that there will be significant associated costs. He stated that the goal of this project is to allow the flexibility to address those needs utilizing the existing budget. In response to a question from Alderman Traylor, Mr. Hurla answered that the total utility savings is 27%. He then clarified that the maintenance savings has to do with the lamps that is being purchased annually including the interior and exterior lighting. He then added that regarding the HVAC, they have probably been overly conservative, saying that given the age of the equipment there is a rising number of calls to contractors for service. He then answered Alderman McCleary that they have a performance maximization group that for a period of time after the project has been installed generally for 1.5 years they will continue to fully engage and operate the system. He stated that they would train someone within the City to be able to continue to operate the system later. In response to a question from Alderman McCleary, Mr. Hurla stated that the next step in the process is for them to proceed with final design and to refine the scope of work, essentially so they can get approval eventually. He stated that the investment grade audit agreement is the next step. He explained that this is the final design where they will develop the specifications for bid packages, working with the City to identify contractors to bid the projects and then they would return to the City Council in January for final approval to proceed with the 6 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 15, 2015 7:00 P.M. – 7:37 P.M. project. He stated that the investment grade audit contingent fee is based on developing the project scope of work. He explained that as a contingent fee ($26,492.00) is included in the previous costs estimates for the project as a whole. He stated that the City would owe this amount if they proceed with the final design, obtain bids and then the City decides not to do the project. He stated that this is for them to recoup their costs for the design work. Alderman Bolden questioned if the City Council were to vote to proceed tonight then the $26,492.00 would be due if the project were cancelled. Mr. Hurla agreed, saying that the only exception would be if they did not meet certain contingencies as outlined in the agreement. He emphasized that they would still need to find a project that meets the financial perimeters as set out by the City. Alderman Bolden further clarified that if they return with a final project scope that the City does not want to move forward on, and then the $26,492.00 would be owed to 360 Energy Engineers. Alderman Sansing stated that this is the City Council’s first opportunity to see the information, adding that he is not ready to make a decision tonight. He stated that the City Council will need time to study and discuss the material. He then clarified that the contingency fee is to cover the costs of extensive engineering work once the City Council agrees to move forward. He stated that he understands that it is the first time that the City Council has seen this material, explaining that there is no rush for a decision tonight. APPOINTMENTS: ANNOUNCMENTS: Beans and Cornbread Fundraiser from 11:00 a.m. to 1:00 p.m. for the Senior Wellness and Activity Center. Barbie Malinger a member of the Jacksonville Citizens Police Academy Alumni and fundraising chairman relating that they are in the process of raising funds for the student resource officer program for the Police th Department. She announced that Saturday, October 17 they will hold a “Pancake Breakfast” fundraiser to be held at the Jacksonville Police Department in the FEMA room from 8:00 a.m. to 10:00 a.m. She added that there would be a silent auction with a drawing that will be held in November. She challenged the City Council to make her donation of $20.00. She expressed her appreciation to the City Council for their support. th Reed’s Bridge is hosting a Living History event Saturday, October 17 from 10:00 a.m. to 5:00 p.m. 7 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 15, 2015 7:00 P.M. – 7:37 P.M. ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 7:37 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer 8