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11 OCT 06.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 6, 2011 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 6, 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, Rinker, Traylor, 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, City Engineer Jay Whisker, Police Chief Gary Sipes, Finance Director Cheryl Erkel, Public Works Director Jim Oakley, Human Resource Director Jill Ross, Parks and Recreation Director Kristen Kennon, 911 Communications Director Tabby Hughes, CDBG Director Theresa Watson, IT Director Barbara McDaniel, Water Department Superintendant Mike Simpson, Wastewater General Manager Thea Hughes, Sewer Commission Chairman Joan Zumwalt, Marie Fletcher, Glenda Fletcher, Jim Moore, Rizelle Aaron, John Ferrell, Jack Danielson, Bill Spivey, Steve Napper, interested citizens, and members of the press. PRESENTATION OF MINUTES: Mayor Fletcher presented the minutes of the regular City Council meeting of September 15, 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 Ray that the minutes of the regular City Council meeting of 1 September 2011 be APPROVED. MOTION CARRIED. CONSENT AGENDA: WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: a. 7:00 p.m. Public Hearing ORDINANCE 1428 (#16-2011) AN ORDINANCE AUTHORIZING THE CONSTRUCTION OF EXTENSIONS, BETTERMENTS AND IMPROVEMENTS TO THE WATER TREATMENT, STORAGE AND DISTRIBUTION FACILITIES OF THE WATER SYSTEM FOR THE CITY OF JACKSONVILLE, ARKANSAS; AUTHORIZING THE ISSUANCE OF WATER CAPITAL IMPROVEMENT REVENUE BONDS FOR THE PURPOSE OF FINANCING THE COSTS OF THE PLANNING, DESIGN, AND CONSTRUCTION OF IMPROVEMENTS; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL, INTEREST, AND SERVICING FEES ON THE BONDS; PRESCRIBING OTHER MATTERS RELATING THERETO; AND, DECLARING AN EMERGENCY. 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 6, 2011 7:00 P.M. – 7:37 P.M. Mayor Fletcher opened the public hearing at approximately 7:01 p.m. Resolution 668 (#14-2011) calling for and setting the public hearing was approved at the Regularly Scheduled City Council meeting of September 15, 2011. Water Department Superintendent Mike Simpson reiterated their request for 25 million dollars in bonds to complete five water improvement projects as outlined by the Ordinance. He then answered Mayor Fletcher that the water tank design has been completed and the project is ready to begin. In response to a question from Alderman Smith, Mr. Simpson answered that the bonds would be 20-year bonds. Alderman Ray moved, seconded by Alderman Howard that Ordinance 1428 be placed on FIRST READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Traylor, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1428. Alderman Ray moved, seconded by Alderman McCleary to APPROVE Ordinance 1428 on FIRST READING and to suspend the rules and place Ordinance 1428 on SECOND READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Traylor, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1428. Alderman Sansing moved, seconded by Alderman Ray to APPROVE Ordinance 1428 on SECOND READING and further suspend the rules and place Ordinance 1428 on THIRD and FINAL READING. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Traylor, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1428. Alderman Ray moved, seconded by Alderman Sansing that Ordinance 1428 be APPROVED AND ADOPTED. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Traylor, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Ray moved, seconded by Alderman McCleary that the EMERGENCY CLAUSE be attached to Ordinance 1428 and be APPROVED AND ADOPTED. ROLL CALL: Aldermen Elliott, Smith, McCleary, Sansing, Ray, Rinker, Traylor, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. th ORDINANCE APPROVED, ADOPTED, AND NUMBERED 1428 THIS 6 DAY OF OCTOBER 2011. b. PRESENTATION Proposed Natural Gas Severance Tax 2 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 6, 2011 7:00 P.M. – 7:37 P.M. Mr. Steve Napper offered a PowerPoint presentation regarding the Natural Gas Severance Tax Act of 2012. He related that Sheffield Nelson was able to get the initiative approved by the Attorney General twice, explaining that the second approval added the State aid street program providing legislation for city grants. He explained that the grant program would be funded by the first 20 million dollars collected. He reviewed photos of the damage to streets caused by the natural gas companies. He then briefed the City Council on the initiative, saying that the purpose is to repair the highways, city streets, and county roads. He outlined the plan as follows:  Increases the severance tax to 7% (flat rate)  Eliminates the subsidy to gas companies for their production costs  Eliminates existing severance tax rate of 1.25% - 5%  Brings Arkansas’ severance tax rate in line with neighboring states TX – 7.5%, OK – 7%, LA – equivalent 7%.  Current severance tax rate brings in only $54.6 million based on $3.6 billion in sales. Effective rate of only 1.5%.  95% of the tax proceeds will be dedicated to construction/repair of Arkansas highways, city streets and county roads.  At a natural gas price of $4.00, the new tax rate will generate more than 250 million dollars annually for Arkansas.  Generate a projected $33 million for cities/towns, plus 20 million dollars in State aid street funds. Division of the Tax proceeds:  12.6 million dollars to State Treasury (general revenues)  20 million dollars to newly enacted State Aid Street program (Act 1032 of 2011)  33 million dollars to cities under Highway Distribution Law (70-15- 15) – Street Turnback.  $47.50 to $70.00/capita increase for cities/towns. $680,000 annual increase for Jacksonville.  33 million dollars to counties.  153.6 million dollars to Arkansas Highway and Transportation Department. He explained that because the Tax is sales based, as the price of natural gas increases, the collection rate will also increase. At $5.00, the City of Jacksonville would see an additional $822,000 annually. He related that the gas companies have said that if the Severance Tax is increased they would leave the State. He counted as follows:  Southwestern Energy showed a 37% increase in second quarter earnings over last year.  BHP Billiton bought Chesapeake Energy’s Fayetteville shale play in Arkansas for 4.75 billion dollars, acquiring 487,000 net acres. Known reserves of 2.4 trillion cubic feet of natural gas equates to 456 million barrels of oil. 3 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 6, 2011 7:00 P.M. – 7:37 P.M.  Exxon Mobil bought XTO Energy in 2009 for $41 billion dollars, including their Fayetteville shale play. December 2010, XTO purchased 150,000 acres in Fayetteville shale for Petrohawk for $650 million. Brought XTO’s total acreage to 560,000 acres. State Aid Street Program (Act 1032)  He stated that projects would be selected by a committee of 9 mayors serving four year terms.  3 mayors selected by Governor, 3 by the Speaker of the House and 3 by the Senate Pro Tem.  Project approval/oversight provided by State Aid Engineer of AHTD.  To qualify, cities/towns must agree to maintain streets once complete, pay for right-of-way costs as well as cost of utility relocation.  Projects will be 100% funded for cities/towns less than 25,000 in population.  Cities with more than 25,000, a 10% match will be required. He then offered that there is no restriction in size of grant. He explained that the initiative would have to be placed on the ballot and in order to do that, petitions have to be signed by registered voters in compliance with State law. He stated that the goal is to have it ready th for the November 8 election. He reviewed the Arkansas Ethics Commission rules and regulations for elected officials and city employees. Handouts were made available for City Council members. He then answered that the intuitive requires 65,000 petition signatures to be placed on the ballot. He stated that he is asking for volunteers to th be placed at every polling place on November 8, noting that is when the Garvee Bond election will be held. He stated that the Garvee Bonds will continue improvements for the Freeway system, pointing out that it is not a tax increase. He then related that the deadline is July 2012, but the goal is to obtain the signatures as soon as possible. Mayor Fletcher noted that there will be funds spent against the campaign, adding that this money would mean a great deal to the cities. He reiterated that the first 20 million will go to cities and then the formula would apply to the rest of the collections. He stated that the State Chamber of Commerce is against the initiative and is pushing for a sales tax to fix the roads. He stated that this Act would be paid by entities that are outside the State and the citizens of Arkansas are already paying the tax because gas is coming from Louisiana or Oklahoma. He added that our natural resources are being sent out of State and the companies are only paying a 1.5% tax because of loop holes. He stated that he did not believe the companies would leave the State. Alderman Elliott noted that the gas companies have not moved out of the surrounding states that are charging 7%. 4 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 6, 2011 7:00 P.M. – 7:37 P.M. Mr. Napper stated that this is a wonderful opportunity for cities to improve their infrastructure. c. RESOLUTION 670 (#16-2011) A RESOLUTION AUTHORIZING THE MAYOR TO SUBMIT AN APPLICATION TO THE ARKANSAS DEPARTMENT OF PARKS AND TOURISM TO OBTAIN FUNDS FOR THE PROVISION OR IMPROVEMENT OF PUBLIC ACCESS FOR THE OBSERVATION OF ARKANSAS WILDLIFE; AND, FOR OTHER PURPOSES. Parks and Recreation Director Kristen Kennon stated that they are applying for a grant to construct a wildlife observation trail at Paradise Park on twenty acres owned by the City. She then added that the grant would also help with parking and restrooms. She noted that they related requesting $100,000, adding that this is a one-time grant. She then related that Jacksonville currently does not have anything like this to offer, adding that she felt this would be beneficial to the City. Alderman Ray moved, seconded by Alderman Smith to read Resolution 670 (#16-2011). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 670 (#16-2011). Alderman Ray moved, seconded by Alderman Sansing to approve Resolution 670 (#16-2011) in its entirety. MOTION CARRIED. d. RESOLUTION 671 (#17-2011) A RESOLUTION AFFIRMING THE COLLECTIVE SUPPORT OF THE CITY FOR THE PASSAGE OF THE 2011 INTERSTATE REHABILITATION PROGRAM; AND, FOR OTHER PURPOSES. Alderman Ray moved, seconded by Alderman Howard to read Resolution 671 (#17-2011). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 671 (#17-2011). Alderman Ray moved, seconded by Alderman Smith to approve Resolution 671 (#17-2011) in its entirety. Mayor Fletcher noted that this Resolution deals with the Garvee Bonds that Mr. Napper had spoken of earlier. He related that it was passed in 1999, noting that there are 650 miles of roads and this proposition will take care of approximately 350 miles remaining. He stated that this is not a rate increase, explaining that it works off projected future Federal revenues, and the four cent diesel tax that is already collected. He stated that infrastructure is the key to prosperity. At this time, MOTION CARRIED. ANNOUNCEMENT(S): Chili Supper Fund Raiser for the Jacksonville Senior th Center next Thursday, October 13 at 6:00 p.m., the cost will be $7.00 per person. He then announced that the entertainment will be provided by the Gospel Tones Quartet. 5 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 6, 2011 7:00 P.M. – 7:37 P.M. Mr. Rizzell Aaron stated that members of the NAACP have been questioning the money paid to Ricky Hayes regarding economic development and if the City had seen any return for those services. He then brought up “strip clubs” that were annexed into the City regarding the dangers of individuals that frequent those clubs when crossing the Highway after having a few drinks. He mentioned new crimes associated with those clubs. He then stated that they had concerns about the City taking tax payer money to “basically shove between the legs of alcohol and drug addicted women trying to make money out there working”. He stated that the traffic signal at J.P. Wright Loop Road and Highway 294 where the new Dollar General Store is kids are playing “frogger” as they cross the Highway to go to the store. He stated that the City needs to take some kind of precautionary measure, mentioning the installation of a traffic light if the City is able to work with the County or State. He noted that many seniors also like to shop at the General Dollar store. He then requested attention to an ordinance or policy in dealing with FOI request. He stated that “our organization” has had issues in getting what was requested. He stated that Mr. Bamburg’s interpretation is sometimes different from the Attorney General’s office. He went on to say that they feel it would be easier if there was an ordinance or policy in place that specifically stated what the procedural policy is and who is able to disseminate or pass out documents. He stated that they recommend or request that an ordinance be drafted and approved to address FOI request. He then related that they have had several complaints from people in Sunnyside and new town. He stated that there are issues that following an arrest not all of the evidence is being promptly placed in the case file, including witness statements, audio, video, or whatever is used to arrest that person. He stated that they have found in some incidents that not all of the information is placed in the file and then what happens is that the person defending the arrested person does not have all the necessary documentation to properly defend that person. He noted that there have been incidents where the evidence showed up in the police file after the trial was complete. He stated that he is saying this to make it a public record “that some of our members and our associates have an issue”. He went on to say that they feel that through training this could be addressed. He stated that the problem is that people that could be proven innocent are going to jail and going to prison because some things are not making it into the file. He reiterated that he wanted to make it a matter of record because they have received a lot of complaints regarding this. Jill Ross addressed the City Council announcing that Flu shots would be th available at the Community Center on October 27 from 8:00 a.m. to 6:00 p.m. 6 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 6, 2011 7:00 P.M. – 7:37 P.M. Alderman Robinson noted that the ground breaking for the 911/Police Center was well covered by media, adding that he feels it will be a great asset for the City of Jacksonville. He then questioned when the City limit signs would be moved to reflect the newly annexed area to the north. Public Works Director Jim Oakley responded that the Highway Department would have to move the signs and he believes that they have been contacted. Mayor Fletcher then stated that he would prefer having “Home of the Little Rock Air Force Base” instead of the population on the City limit signs if that is possible. In response to a question from Alderman Robinson, Mayor Fletcher related that they received a good low bid regarding the removal of the sheetrock, adding that the sheetrock will have to be removed in order to determine the extent of repairs. Parks and Recreation Director Kristen Kennon related that they received quotes for the electrical, lighting, sprinkler system, and the sheetrock. She stated that the electrical is $2,500.00, the sprinkler system is $4,000.00 and sheet rock is $6,000.00. She noted that the project would begin next week. She stated that once the sheetrock is removed they will be able to more accurately spec the repairs. Mayor Fletcher thanked everyone for their patience, adding that this is not like most jobs that are started from scratch. He related the difficulties of remodel jobs that acquire additional costs after deconstruction. He stated that when the sheetrock is removed, that will be the final stage for determining the total necessary repairs for the bidding process. He then noted the difficulty of having to work over the pool, noting costs associated with having a company build a platform over the pool or filling the pool with sand for the project. He stated that the project will call for a lift. He stated that while there are still a lot of questions, the project is moving. He noted that part of the process, which was so time consuming, were the efforts to get the “as built” plans. 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 7