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11 AUG 04.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2011 7:00 P.M. – 7:31 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 August 4, 2011 at the regular meeting place of the City Council. Alderman Smith delivered the invocation and Mayor Fletcher led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Elliott, Smith, Sansing, Ray, Rinker, Traylor, Stroud, and Howard answered roll call. Mayor Fletcher also answered ROLL CALL declaring a quorum. PRESENT EIGHT (8), ABSENT (2). Aldermen McCleary and Robinson were absent. Others present for the meeting were: City Attorney Robert Bamburg, Director of Administration Jim Durham, Fire Chief John Vanderhoof, Police Chief Gary Sipes, Finance Director Cheryl Erkel, City Engineer Jay Whisker, Human Resource Director Jill Ross, CDBG Director Theresa Watson, IT Director Barbara Daniel, Gerald Clark, Marie Fletcher, Helen Stroud, John Wilkerson, Mike Wilson, Jim Moore, interested citizens, and members of the press. PRESENTATION OF MINUTES: Mayor Fletcher presented the minutes of the regular City Council meeting of July 21, 2011 for approval and/or correction at the next regularly scheduled City Council meeting. APPROVAL AND/OR CORRECTION OF MINUTES: Alderman Smith moved, seconded by Alderman Howard that the minutes of the regular City Council meeting of 7 July 2011 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/ANIMAL CONTROL Alderman Ray moved, seconded by Alderman Stroud to approve the regular Monthly Animal Control Report for July 2011. Said report reflects: ADOPTION/FINES: $1,845.00 CONTRIBUTIONS: $ 25.00 TOTAL: $1,870.00 REGULAR MONTHLY REPORT/ENGINEERING DEPARTMENT Alderman Ray moved, seconded by Alderman Stroud to approve the regular Monthly Report for July 2011. PERMITS/LICENSE ISSUED INSPECTIONS PREFORMED Building Permits 17 Building Inspections 47 Business Licenses 8 Electrical 44 Plumbing 37 HVACR 31 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2011 7:00 P.M. – 7:31 P.M. UNSIGHTLY & UNSANITARY VEHICLES Grass Letters 180 Notice of Noncompliance 0 Property Mowed 66 Towed 0 Trash Letters 0 CONDEMNATIONS Trash Removal 0 Structural Maint. Letters 0 Property Maint. Letters 8 Structural repairs made 0 Cost $3,710.00 Demolitions 0 CITATIONS WARRANTS Debris & open storage 0 Arrest 0 Property maintenance 0 Search 0 ROLL CALL: Aldermen: Elliott, Smith, Sansing, Ray, Rinker, Traylor, Stroud, and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: UPDATE Training opportunities at Joint Training Facility Fire Chief John Vanderhoof stated that the Joint Training Facility is being recognized across the State for its training opportunities. He st then related that on July 19, 2011, the 61 Civil Support Team from Camp Robinson held a three-state chemical bio-terrorism readiness drill at the facility hosted by the Jacksonville Fire Department. He went on to say that Pulaski County Office of Emergency Management, Federal Bureau of Investigation, Little Rock Air Force Base Emergency Management, and the Jacksonville Fire Department participated in the drill. He stated that the Facility was well received and complimented, adding that it is being well utilized by various organizations. POLICE DEPARTMENT: STREET DEPARTMENT: Request to Accept Bid 2011 Asphalt Overlay Program Alderman Ray moved, seconded by Alderman Stroud to accept the low bid from Red Stone Construction in the amount of $120,091.38 with funds to be drawn from budgeted Street funds. MOTION CARRIED. SANITATION DEPARTMENT: PARKS & RECREATION: Request to Accept Bid Janitorial Service & Floor Maintenance Parks & Recreation Maintenance Manager Kevin House explained that after checking references on the low bidder it was determined that the bidder had just started in business and is only staffed by himself with help from his young son. He stated that with regard for this information the 2 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2011 7:00 P.M. – 7:31 P.M. recommendation is to go with the next lowest bidder Southern Maid Janitorial, adding that their references checked out excellent. He then noted that there was only a $500.00 difference in the two bids and that Southern Maid is the company that is currently cleaning City Hall. Alderman Smith moved, seconded by Alderman Stroud to reject the low bid from Herbert Burnett for the amount of $3,100.00 monthly and accept the next lowest bid from Southern Maid Janitorial for the amount of $3,600.00 monthly. MOTION CARRIED. PLANNING COMMISSION: GENERAL: a. Negotiated Settlement through Arkansas Municipal League regarding Kathryn Jezwinski Lawsuit City Attorney Bamburg stated that he would need City Council approval to enter into a negotiated settlement regarding a recent lawsuit against the City. Alderman Smith moved, seconded by Alderman Stroud to approve entering into a settlement agreement. MOTION CARRIED. b. Presentation 2010 CAFR Gerald Clark, CPA with McAlister & Associated performed the independent audit and presented the City’s Comprehensive Annual Financial Report for 2010 along with the audit management letter. th He stated that 2010 marks the 14 consecutive year that the City has prepared a Comprehensive Annual Financial Report prepared by the Finance Department. He explained that it not only contains the audited financial statements, but also pertinent financial, economic, demographic, and statistical information related to the City of Jacksonville over a ten- year period. He related that while the CAFR is not a required document, it is used by the City’s Administration to assess internal operations, by the community to assess the City’s use of tax revenue; and by prospective industries looking to relocate to Jacksonville. It is also an important tool used by bond rating agencies to review and assign ratings to bond issues put forth by the City. Each year since 1997, the City’s CAFR has received the Certificate of Excellence in financial reporting. The Certificate of Achievement is the highest form of recognition in governmental accounting and financial reporting awarded by the Government Finance Officers Association (GFOA). He then related that the 2010 Comprehensive Annual Financial Report has been submitted to GFOA for award consideration. 3 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2011 7:00 P.M. – 7:31 P.M. He stated that the report consists of management’s representations concerning the finances of the City, adding that management assumes full responsibility for the accuracy of the data provided, completeness, and fairness of presentation of the financial statements, including all disclosures. He related that the goal of the audit was to provide reasonable assurance that the financial statements of the City year ending December 31, 2010 are free of material misstatement. As part of the audit, they tested evidence supporting amounts of disclosures in the financial statements, assessed the accounting principles used, significant estimates made by management, and evaluated the overall financial statement presentation. He stated that based on their audit they have rendered an unqualified opinion on the City’s financial statements for the year ended December 31, 2010. He related that the audit report is presented as the first component of the financial section of the CAFR. The Single Audit Act of 1984, along with the amendments, requires them as auditors to report not only on the fair presentation of the financial statements, but also to report on the government’s internal controls and compliance with legal requirements, with special emphasis on internal controls and legal requirements involving the administration of Federal grant awards. He stated that these required reports have been issued, which are included in the Single Audit section of the CAFR. He stated that the audit disclosed no significant deficiencies or material weaknesses in relation to the City’s internal control over financial reporting and compliance with the requirements of laws, regulations, contracts and grants; including those applicable to Federal award programs. He related that as part of the audit process, they have issued an audit management letter intended to provide suggestions and guidance in an ongoing effort to improve internal controls. The items noted in the letter do not involve issues considered material to the financial statements, however, recommendations have been discussed with City’s management and they have agreed that improved controls in the areas noted are warranted and have set about to implement the recommendations. He reviewed the significant financial highlights of the 2010 CAFR:  The City’s Statement of Net Assets shows total assets of the City exceeded total liability by $51.2 million at the end of 2010.  Citywide revenues on an accrual basis of accounting were $23,994,000, while expenses were $25,498,000. Overall the City’s net assets decreased by approximately $1.5 million in 2010. 4 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2011 7:00 P.M. – 7:31 P.M.  He stated that the City’s governmental funds, which is all the funds except the pension funds and the two enterprise funds, Sanitation and Emergency Medical Services, reported a total 2010 revenues of $21.5 million and total expenditures of $23.9 million. Sales tax revenues, the City’s largest revenue source were relatively flat in 2010. It accounted for 61% or $13.1 million in revenues, this was a decrease of 1/10 of one percent from 2009. State tax turnbacks and other intergovernmental revenues were $4.3 million or 20% of total revenues, which was up 5% from 2009; and utility franchise taxes were down slightly from 2009 totaling $1.1 million or 5% of total revenues.  The General Fund as of December 31, 2010 had a balance of $3.5 million, a decrease of $115,486 for the year. General Fund revenues of $4.95 million were $168,000 under budgeted revenues for the year, while General Fund expenditures of $17.8 million were $862,000 under budgeted expenditures for 2010. $12,306,200 was transferred in from the Sales Tax Fund in 2010 to the General Fund to fund General Fund operations.  Of the General Fund’s fund balance of $3.5 million at year-end, $3.3 million was unreserved and undesignated. As a measure of the General Fund’s liquidity, this amount represents approximately 19% of 2010 actual General Fund expenditures and 17% of 2011 General Fund budgeted expenditures.  As a general policy, the City’s minimum target at the end of a fiscal year is 60 days expenditures in Fund Balance or 16%. At the end of 2010, the Fund balance met this target. This minimum level of fund balance is required to ensure funds availability for unforeseen emergencies that might severely impact the City’s ability to pay for basic operations and also to guarantee the payment of debt obligations. While the City has been impacted by the current economic recession, the City continues to remain financially healthy. At the end 2010, Jacksonville remained relatively well-positioned for the future with fund balance reserves totaling in excess of $6 million in the General, Street and Sales Tax Funds. This is a result of cumulative cost savings and process improvements that resulted from years of proactive planning and financial leadership. The preparation of this report would not have been possible without the dedication and committed services of key staff in the City’s Finance Department under the leadership of former Finance Director Paul Mushrush 5 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2011 7:00 P.M. – 7:31 P.M. and current Finance Director Cheryl Erkel. He expressed his appreciation to all City staff who assisted in the audit and whose efforts resulted in a timely and successful completion of this year’s report. He expressed appreciation to the City and the City Council for allowing them the opportunity to serve as the City’s auditors. He stated that they very much value our business relationship with the City. Alderman Smith commended Finance Director Cheryl Erkel and her staff in following the footsteps of former Finance Director Paul Mushrush in performing a good job. Alderman Smith moved, seconded by Alderman Stroud to accept the 2010 CAFR report as presented. MOTION CARRIED. ADDITION TO AGENDA: RESOLUTION 665 (#11-2011) A RESOLUTION AUTHIRZING THE MAYOR, CITY CLERK, AND BOARD OF NORTH METRO MEDICAL CENTER TO NEGOTIATE AND EXECUTE ALL NECESSARY DOCUMENTS IN EFFORTS TO SECURE A SHORT TERM LEASE FOR THE OPERATION OF A LONG-TERM ACUTE CARE FACILITY AT NORTH METRO MEDICAL CENTER; AND, FOR OTHER PURPOSES. Alderman Elliott moved, seconded by Alderman Smith to suspend the rules and place Resolution 665 (#11-2011) on the agenda. MOTION CARRIED. Mr. Mike Wilson introduced North Metro Medical Center’s Chief Executive Officer Jay Quebedeaux. He related that the Hospital Board by a unanimous vote has requested to ask the City Council’s approval regarding a temporary lease for Allegiance Health Management to operate a long-term acute care hospital in the North Metro Medical Center. He clarified that LTAC will be a hospital within the Hospital. He stated that Allegiance and the North Metro Medical Center Board of Directors have both intended from the beginning of negotiations to move the Allegiance LTAC from its present location in southwest Little Rock Baptist Hospital to North Metro in Jacksonville. He stated that there would be approximately 40 beds for long-term care, which would improve service to the Jacksonville community and to those patients. He stated that Allegiance Health Management intends to acquire the Hospital, adding that the acquisition has been delayed by the financial markets. He stated that financial arrangements are in the works and as late as this morning the Hospital Board is in discussion regarding those arrangements. He stated that it is hoped that within a few months Allegiance Health Management will acquire the Hospital. He added that in the meantime because of the necessity for a long-term acute care hospital to be located within North Metro there must be a lease allowing LTAC the use of that space. He stated that is the purpose of Resolution 665, further explaining that Allegiance Health Management’s present LTAC lease in Little Rock expires in the next few weeks. He then pointed out that Allegiance Health Management has 6 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2011 7:00 P.M. – 7:31 P.M. provided approximately $900,000 plus of its own funds to renovate current space. He stated that this was done without formal agreement, only on the trust and assumption that the lease would be approved and that the eventual sale would be short coming. He stated that once the sale is complete the lease agreements will become null and void. He stated that most of this is commanded by IRS rules and regulations, adding that the IRS will allow for a 50 day temporary lease. In response to a question from Alderman Stroud, Mr. Quebedeaux stated that there are a total of 113 beds. He stated that it is his goal to have every bed in the Hospital available to the public. He then explained that the acute care unit would have 27 beds. He stated that the newly renovated space would be for general admission and the older space would be for the acute care. Mr. Quebedeaux informed the City Council that the new unit has flat screen TV’s and Wi-Fi, adding that they now offer some room service options regarding meals. He stated that they have also segregated the surgery beds and will be opening a new five-bed surgery unit. He then noted that the Jacksonville Medical Clinic building is completely full with various specialty services. He related that they are close to being back to providing a full service hospital, pointing out that they recently got their 24-hour surgery call back and added a full time urologist. He added that they also have partnered with UAMS to offer digital radiology and mammography. He stated that the Hospital is coming back and they are very proud of what they are able to offer. Alderman Ray moved, seconded by Alderman Howard to Read Resolution 665 (#11-2011). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 665 (#11-2011). Alderman Ray moved, seconded by Alderman Stroud to approve Resolution 665 (#11-2011) in its entirety. MOTION CARRIED. ANNOUNCEMENT(S): Mayor Fletcher related that there would be a dedication th at the Jacksonville High School August 8 from 8:30 a.m. to 12:00 p.m. regarding public input for the High School. FIREWORKS COMMITTEE: th The Fireworks Committee will meet August 25 at 7:00 p.m. in the City Council chambers. ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 7:31 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer 7