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16 FEB 04 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING FEBURARY 4, 2016 7:00 P.M. – 7:33 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 February 4, 2016 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, Sansing, Ray, Mashburn, Traylor, Twitty, Smith, and Howard answered ROLL CALL. Mayor Fletcher also answered ROLL CALL declaring a quorum. Alderman McCleary arrived at approximately 7:04 p.m. PRESENT TEN (10), ABSENT (0). Others present for the meeting were: City Attorney Robert Bamburg, Director of Administration Jim Durham, Finance Director Cheryl Erkel, Human Resource Director Jill Ross, City Engineer Jay Whisker, Parks Director Kevin House, Public Works Director Jim Oakley, Police Chief Kenny Boyd, Fire Chief Alan Laughy, CDBG Director Theresa Watson, IT Director Scott Rothlisberger, Water Department Superintendant Jake Short, Water Department Field Manager Sal Pappalardo, Water Commission Chairman Jim Peacock, Planning Commission Chairman Jim Moore, Keith Webber, interested citizens, and members of the press. PRESENTATION OF MINUTES: Mayor Fletcher presented the minutes of the regular City Council meeting of January 21, 2016 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 07 January 2016 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 January 2016. PERMITS/LICENSE ISSUED INSPECTIONS PERFORMED Building Permits 13 Building Inspections 24 Business Licenses 0 Electrical 36 Plumbing 23 HVACR 13 ROLL CALL: Aldermen: Elliott, Bolden, Sansing, Ray, Mashburn, Traylor, Twitty, Smith and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: ORDINANCE 1543 (#03-2016) AN ORDINANCE RESCINDING JACKSONVILLE MUNICIPAL CODE § 13.16.016 (PASS THROUGH CHARGES) REGARDING WATER RATES; AND, FOR OTHER PURPOSES. 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING FEBRUARY 4, 2016 7:00 P.M. – 7:33 P.M. Alderman Elliott explained that Ordinance 1543 rescinds automatic pass- through on the water charges, requiring such action to be brought before the City Council. Alderman Sansing stated the automatic pass-through was a mistake as any rate increase to the taxpayers should come through City Council before it can be enacted. Water Department Superintendant Jake Short questioned on behalf of the Water Commission and Waterworks that the City Council consider that it is already known that there will be substantial increases within the next three years from CAW, water purchased from CAW will see another 10% increase in 2017, a 10% increase in 2018, and a 5% increase in 2019. He stated that not passing those rate increases on will have the potential of having a negative impact on the Waterworks. He related that just because the Water Commission has the authority to pass these charges along, they have not always acted on that. He related that CAW had a series of increases in 2013 and 2014, the Commission elected not to pass the first stage of charges in 2013 onto the customer. He explained that Jacksonville is in a unique situation as far as water is concerned; there are three sources; CAW, Lonoke-White, and our wells. He related that there are many other entities that would love to have the resources that Jacksonville has, but there is a price tag associated with that, adding that water is expensive. He stated that they have to take care of their fixed costs the best way possible. Alderman Traylor confirmed with Superintendant Short that the last pass- through charge was in March 2015 from Lonoke-White. He stated that the initial rate increase between 2008 and 2012 was only half of the $5.00 per meter per month charge that they paid Lonoke-White, explaining that the rate increase in 2015 picked up the other half. Alderman Sansing remarked that according to the data supplied at the previous meeting, over the last eight to ten years, the water usage that was purchased from CAW had continued in a downward trend. Superintendant Short stated that the total consumption has been on a downward trend, adding that this is part of the challenge for the Water Department. He explained that consumption being down, plays directly into the revenue that is received, and affects projects as well as aging infrastructure. He stated that decreased revenue affects the relocation project, and debt service. Alderman Sansing questioned with the known increases being proposed by CAW, is the water from Lonoke-White more expensive than CAW. He added that it sometimes seems to him that the Water Commission is very wedded to CAW and not necessarily to the betterment of our citizens. 2 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING FEBRUARY 4, 2016 7:00 P.M. – 7:33 P.M. Superintendant Short related that they have just signed a new agreement with CAW, explaining that they spent approximately two years negotiating the new terms and new minimums because they did see the downtrend in consumption. He stated that the downtrend was a big factor in renegotiating a new contract regarding the level of water being purchased. He added that as far as Lonoke-White is concerned, there are different ways to look at costs; their charge per 1,000 gallons of water is $1.25 versus $1.75 from CAW but there is the $5.00 per meter per month fee that is paid regardless. He stated that if the fee is factored into the equation the costs come out to be more like $4.40, which could support the agreement that Lonoke-White is more expensive. Alderman Ray commended the Water Commission for their insight to develop a plan for future water sources. He then noted that CAW came before Lonoke-White, saying that CAW was a guarantee that Jacksonville would have water. He stated that Lonoke-White came later as a measure for the future water. He stated that he was under the impression that all increases had been before the City Council, adding that all the Water Commissioners are from Jacksonville and they have the City of Jacksonville at heart. He stated that they are not doing anything but guaranteeing the City of Jacksonville citizens that they will always have water. He added that he does not feel that the City Council should tie the hands of the Water Commission, adding that the Commission has done a very good job for years and continues to do a good job. Alderman Howard stated that he feels the elected officials should be the ones to decide if there is an increase or not, it should come before the City Council each time. Alderman Elliott agreed, the Water Commission has always done a good job, but a statement was made at their last meeting that the Water Commission’s interest might not be the best interest for the City of Jacksonville. He stated that the City Council is the elected officials to represent the City and its citizens, saying that for that reason he feels any rate increase should come before the City Council. Mayor Fletcher questioned what the investment amount for the City of Jacksonville was regarding the Lonoke-White project. Superintendant Short stated that it was a 55 million dollar project shared between 8 entities but he would have to research to determine what amount Jacksonville put in. He figured that Jacksonville came in around 24 or 25%, making Jacksonville a very large player in that project. Alderman Bolden noted his prior tenure on the Water Commission, questioning if the concept and thinking of the Commission was that participation in Lonoke-White would guarantee water if CAW became unreasonable option. 3 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING FEBRUARY 4, 2016 7:00 P.M. – 7:33 P.M. Superintendant Short stated that his understanding is that Lonoke-White is solely a secondary source of water, primarily because that was a need of Little Rock Air Force Base. He related that their Master Plan in 2008 or even back in 2003, recognized that with the wells depleting, CAW would be the primary source of water. He went on to say that the five major infrastructure projects that they just completed costing approximately 18 million dollars were all to give Jacksonville increased capacity up to 12 million gallons a day from CAW. He then answered Alderman Bolden that it would be difficult to come off CAW and go to Lonoke-White. Mayor Fletcher confirmed with Superintendant Short that the water aquifers are currently remaining steady wherein they had been decreasing. Superintendant Short concurred, but added that it could change with a dry season, they would drop quickly. Alderman Sansing recapped that the City has put in the infrastructure that essentially ties us to CAW. Superintendant Short related that those monies have been spent and there is debt service associated with the thought being that it would be Jacksonville primary source of water going forward. He stated that things could change, but with the way Lonoke-White is piped there is not enough capacity today to fully meet Jacksonville’s needs. Alderman Elliott moved, seconded by Alderman Sansing that Ordinance 1543 be placed on FIRST READING. ROLL CALL: Alderman Elliott, Bolden, McCleary, Sansing, Mashburn, Traylor, Twitty, Smith, and Howard voted AYE. Alderman Ray voted NAY (1). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1543. Alderman Elliott moved, seconded by Alderman Howard to APPROVE Ordinance 1543 on FIRST READING and suspend the rules and place Ordinance 1543 on SECOND READING. Alderman Traylor confirmed with City Attorney Bamburg that in 2009 an Ordinance was adopted that allowed the Water Commission to have authority regarding pass-through charges from CAW and Ordinance 1543 only affects the pass-through charges. He stated that in 2009, half of the City Council voted to approve the automatic pass-through charge, suggesting that rather than rescinding the 2009 ordinance there be a compromise. He offered that the 2009 ordinance could be amended to better fit the Water Commission’s needs and what the City Council would like to have. He stated that currently there has been one pass-through annually with the potential for more if that was the desire of the Water Commission. He suggested that the Water Commission retain the authority they have now regarding one pass-through charge annually as long as the increase is under 2% and the Water Commission would have to inform the City Council 4 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING FEBRUARY 4, 2016 7:00 P.M. – 7:33 P.M. on a timely basis. He stated that if the Water Commission is not allowed this authority, it may turn into the situation we had in 2009 through 2012 when the citizens experienced huge 13% increases on their water bills. He said it is better to have smaller pass-through charges such as the 1% this year, 1% next year and 1/2% in 2019. He stated that he does not see a reason to completely rescind everything that has been going on since 2009 because someone does like the way it happened in January. Alderman Elliott stated that he still believes that there should not be an automatic pass-through charge, adding that he believes any increase should have to be brought before the City Council. Alderman Howard concurred. Alderman Traylor questioned the difference between now and 2009 when it was originally adopted. Alderman Sansing stated that he believes that the City Council made a mistake in 2009, adding that he believes the authority to raise customer rates should be with the elected officials. He stated that the City Council advocated their authority in 2009 when it was passed, and that was a mistake. He related that it should come through the people that the citizens elected to do that. Alderman Ray reiterated that he does not believe it to be a mistake, saying that the Water Commissioners are appointed by the City Council and they are in that position to take care of the waterworks for the City of Jacksonville. He stated that he does not believe the Water Commission would do anything that would place a hardship on the citizens of Jacksonville. Superintendant Short stated that the pass-through charge of 2016 is the first of four known increases. He related that there will be another increase in 2017, one in 2018, and the last one will be in 2019. Alderman Bolden stated that he is aware of how involved the Water Commission is with CAW, saying that they attend the meetings and know firsthand what is going on and how to negotiate the water. He stated that as he thinks about it, it occurs that this is micromanaging. He concurred that the City Council has trusted the Commission and if a cap such as suggested by Alderman Traylor is set then if it goes over 2% it would have to be brought before the City Council. He stated that he believes the Commission should have the freedom and flexibility to deal with CAW. Alderman Elliott stated that the Water Commissioners will continue to do the negotiations and attend the meetings but the decision to increase the rates should be up to the City Council. 5 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING FEBRUARY 4, 2016 7:00 P.M. – 7:33 P.M. Mayor Fletcher stated that he is going on record, expressing his appreciation to the Commission and Superintendant Short; however, he expressed concern for the direction that the Water Commission wants to follow regarding the water district. He related that his concern is that the best interest for the City is to do what it can to preserve the water district and not sell water, to take a stand to other municipalities, adding that there are State laws involved in that. He related that he feels the City needs to fight this, adding that he has serious problems since CAW is involved. He stated that he believes relationships need to be a win-win for everybody. He added that it bothers him that CAW is positioned to take a water district, if we do not bow down to the State, saying that he thinks this is the only time in history that this has every happened. ROLL CALL: Alderman Elliott, McCleary, Sansing, and Howard voted AYE. Alderman Bolden, Ray, Mashburn, Traylor, Twitty, and Smith voted NAY (0). MOTION FAILED. Alderman Traylor stated that he would be interested in modifying the Ordinance setting the stipulations of one pass-through annually of 2% maximum or it has to be brought before the City Council. He stated that any increase request would have to be presented to the City Council 30 days before it would go into effect. Alderman Ray concurred. Mayor Fletcher stated that a modified Ordinance would be presented at the next regularly scheduled City Council meeting. WASTEWATER DEPARTMENTS: FIRE DEPARTMENT: POLICE DEPARTMENT: PRESENTATION 1511 Nina Street Police Chief Boyd offered a PowerPoint presentation regarding the property addressed as 1511 Nina Street that was brought before the City Council during a public hearing in November. He recalled that the condemnation process was started in July 2012, in 2013 the property changed owners, and the process started again. He stated that in 2014 there were budget restraints that slowed the process, so they proceeded to work with the new owner. He related that in 2015, the process for condemnation started again and the public hearing was held in November. He related that in November the City Council decided to take no action, noting that the owner was given 90 days to show some improvements on the property. He has not been back to report any progress to the City Council, so the condemnation process was resumed. He presented photographs that were taken yesterday, noting that the staircase has been removed to prevent entry to the second floor. He added that the electrical panel has not been improved and it seems no other repairs have 6 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING FEBRUARY 4, 2016 7:00 P.M. – 7:33 P.M. been done. He stated that they did not go back inside the building because they did not obtain a search warrant. He stated that the photographs were from October when they obtained a search warrant, adding that he did not feel that it was necessary to go back through the search warrant process. He explained that they were able to obtain enough evidence by taking pictures through the windows. He reviewed the structural foundation issues, which have not been addressed. He told the City Council that the condemnation process would resume with certified letters to Mr. Copeland and advertisements. He then added that Mr. Copeland has not contacted Code Enforcement regarding any issues or delays. Discussion ensued regarding the fact that it was Mr. Copeland’s responsibility to keep the City Council updated and to maintain contact with the Code Enforcement. It was noted that once the process begins again it would take approximately 45 to 60 days before it is finalized. He noted the expense of advertising and sending certified letters, saying that his desire was to let the City Council know what happened with the property since Mr. Copeland has not returned with his updates. STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: WASTEWATER DEPARTMENTS: APPOINTMENTS: th ANNOUNCMENTS: Millage election Tuesday, February 9 from 7:30 a.m. to th 7:30 p.m. Early voting begins February 2n through February 5 at the Jacksonville Community Center from 10:00 a.m. to 5:00 p.m. th City Hall will be closed Monday February 15 in observance of President’s Day so Sanitation routes will run one day late. Senior Citizens Center is hosting “Taste of New Orleans” Thursday, th February 18 from 7:00 p.m. to 9:00 p.m. ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 7:33 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer 7