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11 DEC 01.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 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 December 1, 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, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard answered roll call. Mayor Fletcher also answered ROLL CALL declaring a quorum. PRESENT NINE (9), ABSENT (1). Others present for the meeting were: City Attorney Robert Bamburg, Police Chief Gary Sipes, Finance Director Cheryl Erkel, Chief John Vanderhoof, Public Works Director Jim Oakley, City Engineer Jay Whisker, Human Resource Director Jill Ross, 911 Communications Director Tabby Hughes, IT Director Barbara McDaniel, Parks and Recreation Director Kristen Kennon, Wastewater Manager Thea Hughes, Sewer Commission Chairman Joan Zumwalt, Water Department Superintendent Mike Simpson, Mrs. Glenda Fletcher, Mrs. Edith Smith, John Ferrell, Jim Moore, interested citizens, and members of the press. PRESENTATION OF MINUTES: Mayor Fletcher presented the minutes of the regular City Council meeting of November 17, 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 3 November 2011 be APPROVED. MOTION CARRIED. CONSENT AGENDA: WATER DEPARTMENT: RESOLUTION 674 (#20-2011) A RESOLUTION AUTHORIZING AND APPROVING AN ADDENDUM TO THE WATER PURCHASE AGREEMENT BETWEEN THE CITY OF JACKSONVILLE, ARKANSAS, BY AND THROUGH THE JACKSONVILLE WATER WORKS, AND LONOKE WHITE PUBLIC WATER AUTHORITY; PROVIDING FOR CERTAIN OTHER MATTERS RELATING THERETO; DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES. Alderman Ray moved, seconded by Alderman Stroud to read Resolution 674 (#20-2011). Water Department Superintendant Mike Simpson explained that Resolution 674 is intended to amend the November 9, 2010 water purchase contract, noting that the project is being co-funded by Arkansas Natural Resources Commission (ANRC) and USDA Rural Water. He related that Resolution 674 meets language requirements for Jacksonville Water to be able to receive the funds. 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 674 (#20-2011). Alderman Ray moved, seconded by Alderman Stroud to approve Resolution 674 (#20-2011) in its entirety. MOTION CARRIED. WASTEWATER DEPARTMENT: PUBLIC HEARING 7:00 p.m. ORDINANCE 1436 (#24-2011) AN ORDINANCE AMENDING AND MODIFYING JMC §§ 13.16.060 AND 13.16.050 FOR APPROVAL AND ADOPTION OF MODIFICATION TO SEWER RATES FOR THE JACKSONVILLE WASTEWATER UTILITY; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. Mayor Fletcher opened the public hearing at approximately 7:05 p.m. Wastewater Manager Thea Hughes recalled that approximately one month earlier they had presented a rate study regarding the increase of sewer rates. She noted that Engineer Aaron Benzing is present to answer questions. Mayor Fletcher opened the floor for comments. Mr. Jim Moore, president of the Jacksonville Stonewall Subdivision, compared his two-member family current sewer charge of $15.34 based on 3,000 gallons of water monthly to a five-member family using 9,000 gallons monthly that are currently paying $39.22 monthly. He then noted that based on the proposed rate increase his bill will increase approximately $3.00 monthly, while the five-member family’s bill will increase to approximately $54.00 monthly. He then pointed out that a water rate increase was just passed and the sanitation rates were also increased. He went on to say that now a high increase is being proposed for the sewer rates. He stated that he is speaking for a step-increase instead of one increase all at once. He stated that all the increases and the proposed increase would be hard for a family of five as well as the elderly and others on a fixed income. He asked the City Council to consider a step increase over a five-year period. Ms. Bonnie McDonald related that she is in a five-member family, explaining that last year they experienced a water leak that raised both the water and sewer bill. She stated that given the economy and the recent rate increases already passed, she feels this proposal should be tabled for a later time. She stated that this increase would be too much for a family of five to absorb. She stated that the proposed rate increase needs to be minimized. She continued saying that the residents in the original side of Jacksonville have already paid their fair share, adding that the new developments should have to pay the bulk of the increase. She reiterated that the older 30-year residents have already paid their fair share. 2 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. Mayor Fletcher noted that if a resident has a water leak, they can be reimbursed some portion of that bill. He then commented that the majority of problems regarding sewer are in the older areas of town, saying that the lines have deteriorated and has to be replaced. He stated that more funds are spent in the older rather than newer areas of town. Wastewater Manager Thea Hughes pointed out that just in 2011; they spent almost two million dollars in the Sunnyside area, repairing old lines and manholes. With no one else requesting to speak, Mayor Fletcher closed the public hearing at approximately 7:12 p.m. Alderman Ray moved, seconded by Alderman Stroud that Ordinance 1436 be placed on FIRST READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1436. Alderman Ray moved, seconded by Alderman Stroud to APPROVE Ordinance 1436 on FIRST READING and to suspend the rules and place Ordinance 1436 on SECOND READING. Alderman Traylor acknowledged the need for an increase, adding that his understanding is that a million dollar increase has been determined to be the needed increase. He stated that it is important to understand what is being proposed, noting that a user of only 1,000 gallons of water will see almost a 50% decrease in their sewer rate. He continued saying that a 2,000 gallon user’s bill will only increase by 5%, while everyone who uses over 4,000 gallons will see a greater percentage increase, anywhere from 30% up to 50%. He stated that he does not feel this type of structure is the right way to increase rates, adding that he does not feel the proposal is fair to everyone in the City. Alderman Stroud questioned what the ramifications of a step increase would be Engineer Aaron Benzing reviewed that at the end of a five-year step increase the sewer rates, while generating the same basic revenue, would leave rates at $6.50 per thousand gallons instead of the proposed one time increase to $6.00 per thousand. Alderman Traylor noted that this would be under the proposal to lower the minimum charge from 2,000 gallons presently to 1,000 gallons. He stated that he is not sure why the proposal would lower rates for residents using 1,000 gallons or less monthly. He pointed out that currently the lower tier resident is paying $11.36 for the first 2,000 gallons, which amounts to $5.68 per thousand gallons currently and then each additional 1,000 gallons is $3.98. He noted that if the structure is changed and every thousand gallons is $6.00 then it would not be an increase, noting 3 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. that somewhere in that amount is a service charge. He questioned why the proposal does not recommend a minimum charge amount. Engineer Benzing related that the minimum charge would be considered using 1,000 gallons instead of 2,000. He stated that the recommendation was to help that segment. Alderman Traylor related that the segment that uses 1,000 is not necessarily the single mom in Sunnyside that is using 8,000 gallons, who would get a 37% increase. He noted that a typical user on Boston Street uses between 7,000 and 8,000 gallons monthly, saying that this would be a large increase for those families. He stated that he feels this proposal penalizes people that it shouldn’t. Engineer Benzing questioned if Alderman Traylor is proposing to leave the minimum at 2,000 gallons with a $6.00 per additional 1,000 gallon rate. Alderman Traylor stated that the percentage increase should be the same for all users, a flat percentage increase. Engineer Benzing answered that the Wastewater Commission wanted to look at how the rates were applied, making sure the rates were applied equally to every customer. He pointed out that currently, the lower users are paying more per 1,000 gallons than the higher users. He stated that when everyone pays the same amount per 1,000 gallons, the percentage increases are different based on usage. Alderman Traylor noted that all utilities charge a customer charge, noting that he does not feel it is fair to consider that a part of the per 1,000 gallon price. He point out that there is a charge in the bill whether it is zero or not. Engineer Benzing agreed that a rate utilizing a customer charge could have been set up. Alderman Traylor stated that it is sort of setup that way now, it is $3.40 and $3.98 per 1,000 gallons, but it is not billed that way. Engineer Benzing acknowledged that it is built into the minimum charge. He then pointed out that there are not many 1,000 gallon users on the system. He then answered Alderman Traylor that the Water Department did not have the data available to show how many users use 1,000 and 2,000 gallons. He went on to say that they know how many are using between 0 and 2,000 gallons, that being 2,600 users on the system. Alderman Traylor pointed out that basically 25% of users will see a reduction in their bills, which amounts to approximately $144,000.00 of the million that is being put on the remaining users. 4 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. Mr. Benzing acknowledged that under this rate structure that bracket would pay less than they would pay if it were a percentage increase, adding that everyone would pay the same amount per 1,000 gallons used. Alderman Traylor acknowledged that the proposed rate structure is intended to be less of a burden to lower income residents, but pointed out that often lower income residents use laundry mats and the laundry mats will pass the higher 50% cost onto their customers. He stated that the laundry mats might not be as tempted to pass on a lesser 20% or 30% increase. He concluded saying that he feels the proposed rate structure is unfair to anyone using over 4,000 gallons. Alderman Sansing stated that he does not mind that the percentage is based on the amount used, adding that he has heard from many residents that prefer the step increase versus all at once. He stated that because of the current economic situation the City Council needs to consider a step increase structure. Alderman McCleary concurred with Alderman Sansing, relating that there are four members in his household and they use approximately 7,000 gallons monthly. He agreed that with the current economic situation this is not the best time for a single rate increase. He stated that a step increase would still provide the Utility with what is needed. Alderman Ray stated that he would prefer the step increase also, but pointed out that Wastewater’s department planning has to meet specifications regarding their goals and guidelines, which requires having the necessary revenue. He cautioned that any delays could interfere with scheduled improvements. He added that he feels with necessary revenue the Wastewater Department can better plan and better service the citizens of Jacksonville. In response to a question from Alderman Elliott, Wastewater Manager Thea Hughes related that in considering a higher rate for outside the City users, it turns out that there are only approximately 20 users. She explained that it would not change any factors regarding revenue considerations. Alderman Elliott stated that he feels anyone outside the City limits should pay a 1.5 times higher rate, which is the same for the outside Water Department customers. Mayor Fletcher noted that it makes a good selling point for annexation. In response to a question from Alderman Smith, Wastewater Manager Thea Hughes answered that there were five steps proposed in the step increase. Mr. Benzing pointed out that the five step increase starts at $5.50 per 1,000 gallons going up to $6.50 at the fifth step. He stated that it would be a $0.25 increase every year over a five year period. 5 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. Alderman Robinson concurred that residents using 7,000 gallons, such as many of his neighbors and himself, would experience a significant increase in rates. ROLL CALL: Aldermen Ray and Stroud voted AYE. Aldermen Elliott, Smith, McCleary, Sansing, Traylor, Robinson, and Howard voted NAY (1). MOTION FAILED. First Reading of Ordinance 1436 failed. Alderman Elliott moved, seconded by Alderman Stroud to amend Ordinance 1436 to set the outside the City rate users at 1.5 times the inside rate. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Ray moved, seconded by Alderman Stroud to APPROVE Ordinance 1436 on FIRST READING AS AMENDED and to suspend the rules and place Ordinance 1436 on SECOND READING. ROLL CALL: Aldermen Elliott, Smith, Ray, and Stroud voted AYE. Aldermen McCleary, Sansing, Traylor, Robinson, and Howard voted NAY (4). MOTION FAILED. Alderman Ray called for a point of order. City Attorney Bamburg stated that Ordinance 1436 has not been approved on first reading but has been amended to include the 1.5 times rate for outside the City users. Alderman Traylor stated that he would like to have discussion regarding the five-year step increase. He pointed out that it does not lower the first or second 1,000 gallons. He stated it is a first year 13%, second year 10%, third year 8%, fourth year 6%, and fifth year 3%. Alderman Ray stated that he would like for the Wastewater Utility to have recommendations before the meeting ends. Alderman Traylor moved, seconded by Alderman McCleary to amend Ordinance 1436 to reflect a five year step: first year 13%, second year 10%, third year 8%, fourth year 6%, and fifth year 3%. Alderman Ray questioned Wastewater Manager Thea Hughes if this proposed amendment would meet the needs of the Utility without delays, and can the plan of progress continue. Wastewater Manager Thea Hughes responded that she is not sure, explaining that Alderman Traylor has based those figures on an average residential and commercial user. She pointed out that not everyone is an average user, adding that she is not sure how the income figures would come out based on those criteria. She pointed out that if the straight percentage is adopted as proposed, the residential user will begin to see an increase the third, fourth, and fifth years; adding that on the fifth year it would be higher than what they have proposed. She then pointed out that the commercial/industrial user would not see any increase until the 6 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. fifth year and then meet what they have proposed. She explained that she feels this recommendation is catering more toward commercial and industrial users, while going against residential users. Alderman Robinson questioned that reasoning, when it is an across the board percentage increase, which is the same for everyone. Alderman Traylor stated that the best answer to that is because what was being considered originally had a 50% reduction for low usage and a 50% increase for higher users; while the percentage balances that out. He stated that his proposal is straight across the board, everyone has the same percentage increase; whereas the other proposal made had a reduction for the 2,000 gallons or less user and a large increase for anybody using over 6,000 gallons which was going to be a 30% increase and then increasing to 50%. Wastewater Manager Thea Hughes clarified that Alderman Traylor’s proposal is using an average, so she is not sure how the revenue figures would turn out when you look at actual usage. She continued saying that in this proposal he is using the 2,000 minimum as is currently structured and looking at the residential and commercial users all increasing the same. She stated that compared to what they are proposing, the residential user is about the same the first two years as they are proposing, but then on the third through fifth year the residential users’ rate goes much higher than what we are proposing. She added that the commercial user on this proposal is lower than what we are proposing for four years and on the fifth year they come out at $6.00 per thousand, which is the same as they are proposing. She stated that the commercial/industrial user is getting a four year break before they hit the $6.00 rate, while the residential user sees an increase by the third year and comes out higher than the $6.00 rate by the fifth year. She stated that it is based on 4,000 gallons being an average residential user. Mayor Fletcher noted that there is a $0.50 difference between the step increase and the one-time increase. Mr. Benzing clarified that the step rate increase proposed by the Wastewater Utility began at $5.00 and increased $0.25 annually over a five-year period, ending at $6.50. Alderman Traylor clarified that the proposed amendment before the City Council currently is the “per 1,000 gallon” charge at $3.98 and at the end of the fifth year it would be $5.84. He went on to say that a 4,000 gallon user is paying $19.32 now and in 2016 that same user would be paying $28.00. Wastewater Manager Thea Hughes pointed out that with their proposal that same user would pay $24.00 in 2016. She also pointed out the difference is that they are proposing going to 1,000 gallons as the starting minimum and Alderman Traylor is proposing to maintain the 2,000 gallon minimum. 7 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. Alderman Traylor explained that he gathered his information from the Water Department. He continued saying that this is assuming that 4,000 gallons is the average usage. Mr. Benzing then answered Alderman Robinson, that the five-year step increase proposed by the Wastewater Utility would be adequate to meet their revenue needs. He went on to say that he has not reviewed what is being proposed by Alderman Traylor. He added that at first brush it doesn’t seem adequate, especially for the earlier years, but he has not run the numbers so he not completely sure. Alderman Traylor acknowledged that it doesn’t get there the first year. Wastewater Manager Thea Hughes stated that with Alderman Traylor’s proposal it does not meet the Utility’s needs the first two years, adding that in his proposal he is suggesting that the Utility use its existing funds to meet needs during the first two years and then generate enough to replace those funds as the step increase continues. Alderman Traylor noted that at the end of five years the money would be completely paid back. Alderman Ray stated his understanding that the Utility needs those funds in the first two years not two years from now. He stated that the money for plans is not there to cover the first two years. He said that the Utility should not rely on revenues currently in the bank. He pointed out that budgets are formulated off projected incoming revenues. Alderman Sansing questioned if Alderman Traylor’s proposal had been seconded. It was clarified that there was a second to the motion. Alderman McCleary, who had seconded the motion, stated that his second to the motion was because he thought what Alderman Traylor had proposed was the five-year plan originally submitted as an alternate step increase plan by Wastewater Utility. Alderman Traylor pointed out that the shortfall is 25% of what Wastewater Utility has in reserves. Alderman Ray stated he understood, but liked the step increase proposed by the Wastewater Utility slightly more. Alderman Elliott stated that he would like to see the comparison of the two step increases on paper. 8 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. In response to a question from Mayor Fletcher, Wastewater Manager Thea Hughes stated that she could not for certain say that Alderman Traylor’s proposal is viable because it was based on average users. She explained that Mr. Benzing has not run the numbers using the actual usage. She added that the proposal comes out to be the same amount of money that the Utility is asking for, but added that she is not sure if it will work. She related that it is too simplistic to use an average residential and commercial user computation. She stated that she is uncertain at this time if Alderman Traylor’s proposal would work. Wastewater Manager Thea Hughes then confirmed for Alderman Stroud that their step increase would come out to be $0.50 higher at the end of the fifth year. Alderman Robinson questioned if a three-year step increase of $5.50, $6.00, and $6.50 had been researched. Mr. Benzing stated that the rate study was based on a five-year period. Mayor Fletcher commented that it seems to be down to two step increase proposals. He reminded City Council that the motion on the floor is to vote on the step increase proposed by Alderman Traylor. Alderman Ray called for a question to the motion. Alderman McCleary withdrew his second to the motion. MOTION DIES for lack of a second. Alderman Ray moved, seconded by Alderman Sansing to amend Ordinance 1436 to incorporate the five-year step increase proposed by the Wastewater Utility. Alderman Traylor stated that he still has questions regarding the inequity, explaining that an 8,000 gallon user will see a larger percentage increase than a 1,000 gallon user. He stated that it would be that way as long as the minimum is lowered to 1,000 gallons. Wastewater Manager Thea Hughes related that regarding percentages for a smaller number and a larger number; sometimes the dollar amount does not seem as big as the percentage sounds. She explained that their intent is that if a customer uses the water and it comes to the sewer plant to be treated, then the customer should pay for the amount they used. She continued saying that if a customer uses 1,000 gallons the customer should pay $6.00 per 1,000 gallons and if a customer uses 50,000 gallons then the customer should still pay $6.00 per thousand, adding that is what they determined to be fair. 9 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. Alderman Robinson stated that he would like to see the figures regarding a step increase over a three-year period, using $0.50 increases instead of a $0.25 annual increase. He stated that it would still conclude with a $6.50 rate. In response to a question from Alderman Elliott, Alderman Traylor explained that with his proposal the rate stays the same as what is being used now; saying that the first increase will be 13%, the minimum charge would be $12.84 and $4.50 per thousand instead of $3.98. Wastewater Manager Thea Hughes stated that the proposals are sort of two separate things, noting that their proposal is straight per thousand gallons and Alderman Traylor’s proposal is to stay with the 2,000 gallon minimum charge. She related that it is hard to make an even comparison. Alderman Traylor stated that regarding the motion on the floor, they do not know what the numbers are that go with the percentages. He added that the formula has to end in $6.50. Mr. Benzing offered the dollar amount increases by year; 2012 would be $5.50, 2013 is $5.75, 2014 is $6.00, 2015 is $6.25, 2016 is $6.50. He stated that this step proposal generates the same revenue over the five years as the one-time rate increase. Alderman Ray called for a question to the motion. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Stroud, Robinson, and Howard voted AYE. Alderman Traylor voted NAY (1). MOTION CARRIED. Alderman Stroud moved, seconded by Alderman Ray to suspend the rules and place Ordinance 1436 on SECOND READING as AMENDED. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Stroud, Robinson, and Howard voted AYE. Alderman Traylor voted NAY (1). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1436. Alderman Stroud moved, seconded by Alderman Ray to further suspend the rules and place Ordinance 1436 on THIRD and FINAL READING as AMENDED. Alderman Traylor proposed that before the Ordinance is adopted that both proposals be presented in writing for comparison. Alderman Ray called for a question on the motion. ROLL CALL: Aldermen McCleary, Ray, and Stroud voted AYE. Aldermen Elliott, Smith, Sansing, Traylor, Robinson, and Howard voted NAY (6). MOTION FAILED. Mayor Fletcher stated that Ordinance 1436 would be presented again at the next regularly scheduled City Council meeting. 10 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. It was the consensus of City Council to have comparisons available for consideration. Wastewater Manager Thea Hughes clarified that the City Council wanted to compare the two five-year step increases. Alderman Robinson fortified his regard for a three-year step increase, noting that over a five year period there could be significant changes that would affect the needs of the Utility. He stated that he would like to have a three-year comparison available for the City Council. He related that there are many ways to make comparisons and the subject has numerous angles. Alderman Elliott stated that too many comparisons might “muddy the issue”. Alderman Smith concurred. Wastewater Manager Thea Hughes pointed out that Mr. Benzing was very thorough in performing the rate study. She related that they took into consideration how much water was coming into the plant and by whom, as well as the load regarding rates in comparison to other cities. She stated that they reviewed all obstacles and the data from the Water Department. She stated that a lot of effort was put into the recommendation to City Council. Alderman Smith reiterated that there can be too much comparison, adding that he feels two different five-year step increases are comparable. City Attorney Bamburg clarified that the Ordinance as amended would include the step increase on the flat rate from $5.50 to $6.50 through the years 2012 to 2016 with the 1.5 times rate on the outside the City rates. Mayor Fletcher complimented Mr. Aaron Benzing and the Sewer Commission for their labors and recommendations. FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: Request to accept bid for Pool Roofing Project Mayor Fletcher noted that the indoor pool has not been usable since March, noting that bids for the roofing were accepted this past week. Parks and Recreation Director Kristen Kennon noted a significant difference from low bid to high bid, explaining that the two higher bids reflect purchasing pre-fabricated insulated roof panels, while the lower bid from Baldwin & Shell reflect on-site construction of the panels. She 11 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. stated that Baldwin & Shell’s proposal does meet all specifications, adding that they have performed work for the City in the past. Alderman Elliott moved, seconded by Alderman Smith to accept the low bid from Baldwin & Shell Construction in the amount of $164,700.00 with funds to be drawn from the Capital Improvement Fund. MOTION CARRIED. Mayor Fletcher expressed his appreciation to the citizens of Jacksonville for their patience during this arduous process. PLANNING COMMISSION: GENERAL: a. ORDINANCE 1430 (#18-2011) AN ORDINANCE AMENDING JMC §5.32 (WRECKER SERVICE REGULATIONS); AND, FOR OTHER PURPOSES. Alderman Stroud moved, seconded by Alderman Smith that Ordinance 1430 be placed on FIRST READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1430. Alderman Stroud noted that section seven addresses the responsibility for wrecker companies to remove or provide for the removal of all debris of an accident from the roadway before leaving the scene, questioning what is meant by the “roadway”. City Attorney Bamburg explained that section seven is the same provision that is in the current existing ordinance, clarifying that they are to clean all debris including car parts or glass. In response to a question from Alderman Elliott, City Attorney Bamburg concurred that “roadway” would cover the median and shoulders of the road. Mayor Fletcher stated that the City’s intent is to have credible and reliable wrecker service companies working in the City. Alderman Smith moved, seconded by Alderman Stroud to APPROVE Ordinance 1430 on FIRST READING and to suspend the rules and place Ordinance 1430 on SECOND READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1430. Alderman Stroud moved, seconded by Alderman Howard to APPROVE Ordinance 1430 on SECOND READING and further suspend the rules and place Ordinance 1430 on THIRD and FINAL READING. ROLL CALL: Aldermen Elliott, Smith, 12 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1430. Alderman Stroud moved, seconded by Alderman Howard that Ordinance 1430 be APPROVED AND ADOPTED. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. st ORDINANCE APPROVED, ADOPTED, AND NUMBERED 1430 THIS 1 DAY OF DECEMBER 2011. b. ORDINANCE 1434 (#22-2011) AN ORDINANCE FOR THE PURPOSE OF LEVYING AN ADDITIONAL TWENTY DOLLARS ($20.00) TO BE COLLECTED FROM ALL PERSON(S) FOUND GUILTY, PLEADING GUILTY, PLEADING NOLO CONTENDERE CONTENDRE, OR WHOM FORFEIT BOND(S) FOR ANY AND ALL TRAFFIC AND MISDEMEANOR OFFENSE(S) WITHIN THE DISTRICT COURT OF THE CITY OF JACKSONVILLE, ARKANSAS, WITH SAID FUNDS MAINTAINED SEPARATELY TO DEFRAY COSTS OF OPERATIONS, MAINTENANCE, AND/OR CAPITAL EXPENDITURES FOR THE CITY’S DETENTION FACILITIES AND COSTS OF INCARCERATION OF CITY PRISONERS; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. City Attorney Bamburg explained that State Statute allows the District Court to assess a fine and cost up to $20.00 for any defendant on traffic or misdemeanor offenses that are handled through the District Court in efforts to help cover the costs of incarceration or jail operations. He stated that this has not been done in the past for Jacksonville, but there is a fine and costs imposed to help the County’s costs that belongs to the County for the operation of the Pulaski County Regional Detention Facility. He noted that these monies would come to the City and would need to be setup in a separate fund to be held for the purposes of jail operation through Chief Sipe’s Department or for the monies that the City pays to the County each year regarding the City’s share of the Regional Detention Facility, which is approximately $250,000 annually. He estimated that this would generate approximately $100,000 annually. He then answered that Sherwood and most of the other surrounding cities already have this in place. Alderman Smith moved, seconded by Alderman Elliott that Ordinance 1434 be placed on FIRST READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1434. Alderman Stroud moved, seconded by Alderman Robinson to APPROVE Ordinance 1434 on FIRST READING and to suspend the rules and place Ordinance 1434 on SECOND READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, 13 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1434. Alderman Smith moved, seconded by Alderman Sansing to APPROVE Ordinance 1434 on SECOND READING and further suspend the rules and place Ordinance 1434 on THIRD and FINAL READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1434. Alderman McCleary moved, seconded by Alderman Elliott that Ordinance 1434 be APPROVED AND ADOPTED. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Smith moved, seconded by Alderman Ray that the EMERGENCY CLAUSE be attached to Ordinance 1434 and be APPROVED AND ADOPTED. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Traylor, Stroud, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. st ORDINANCE APPROVED, ADOPTED, AND NUMBERED 1434 THIS 1 DAY OF DECEMBER 2011. c. PRESENTATION of 2012 Preliminary Budget Finance Director Cheryl Erkel thanked the Directors for their cooperation, saying that this preliminary budget was a tough process. She explained that the preliminary budget is a summary for the General, Street, Sanitation, and Emergency Services budgets. She pointed out the overview regarding the revenues and expenditures for the General Fund, noting a difference of ($289,861), which is the amount necessary to be withdrawn from the Fund Balance in order to balance the General Fund. She reviewed the expenditure budgets by Department for a total of $18,945,026. She presented the expenditure budget by account, explaining that this is the function summary basically representing the amount being spent for personnel services, supplies, materials, and contract services. She then reviewed the Street Fund budget summary, noting a difference of ($358,061) that will need to be drawn from the Fund Balance in order to balance the Street Fund. Finance Director Cheryl Erkel concurred, regarding a question from Alderman Stroud that taking funds from the Fund Balances equates to taking money out of savings. She then answered that savings in both funds are getting low. She interjected that the City is expecting an increase in City Sales Tax for 2012, but added that she did not have any figures to project what the growth increase would be. She then answered that funds regarding the annexation of the north corridor would not th arrive until after December 24, therefore it is safe to use funds from 14 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. the Fund Balance if necessary. She continued saying that hopefully the City Sales Tax will increase, which will prevent having to use the Fund Balance. She added that there is enough in the Fund Balance to use if needed. Alderman Traylor confirmed that the preliminary budget did not reflect the inclusion of those expected funds from the annexed area. Finance Director Cheryl Erkel stated that she projected the City Sales Tax collection from past years. Alderman Stroud pointed out that privilege taxes have not been adjusted since 1967, adding that while several restaurants serve alcohol the City does not collect a drink tax for beer or wine. He suggested forming a committee to look at ways to generate City revenue. Mayor Fletcher acknowledged various avenues for increasing revenue. He then related that the budget has been a work in progress, saying that this morning the budget was 1.5 million short. He related that he and Finance Director Erkel have worked on the budget most of the day to present a preliminary budget that is now $250,000 short. He added that the budget is still being fine tuned; pointing out areas for revenue increases that are being reviewed. Finance Director Cheryl Erkel pointed out the change of $150,884 to $138,061 under the asphalt program. The total changed from $370,884 to $358,061 regarding the reserve Fund Balance, making the grand total for Street Fund $2,199,311. She noted that this change will match the revenues to the expenditures. She reviewed the Sanitation Fund, saying that ($209,503) will need to be drawn from their Fund Balance in order to match revenues to expenditures. She then pointed out a net gain of $101,258 under the Emergency Medical Services Fund at the end of 2011. She answered that the final budget, including Capital projects, would be presented at the next regularly scheduled City Council meeting. Mayor Fletcher related that in talking with other mayors he learned that most of the cities have flat street fund collections. He stated that most of the mayors have to reallocate monies into the Street Department budget. He noted the need to find community minded residents to help pass the Severance Tax, which would be approximately $600,000 annually for the City of Jacksonville. He remarked that the budget is a good, no fluff budget, pointing out that no one has had to be laid off. It was noted that some cities have had to file bankruptcy, leaving their states to take over. He stated that the Census count has hurt the City’s projected collections. 15 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 1, 2011 7:00 P.M. – 8:27 P.M. th ANNOUNCEMENT(S): Mayor Fletcher announced that the 54 Annual Christmas rd Parade will be Saturday, December 3 at 1:00 p.m. North Metro Auxiliary Christmas tree lighting Christmas songs will be th presented by Gospel Tones Quartet will be Tuesday, December 6 at 4:00 p.m. th Christmas Open House at City Hall will be held December 16 from 11:00 a.m. to 1:30 p.m. Service awards ceremony will begin at 2:00 p.m. in the City Council Chamber. Mayor Fletcher announced that he received a challenge to match monies regarding a donation for the relocation of the State Fair to th Jacksonville. He noted that the Fair Board should meet by December 15 for a final decision. He stated that he is optimistic regarding future opportunities for the City of Jacksonville, including more annexations. ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 8:27 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer 16