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23 DEC 7CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 7, 2023 6:00 P.M. – 7:04 P.M. REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in a regular session on December 7, 2023 at the regular meeting place of the City Council. Council Member Bolden delivered the invocation and Mayor Elmore led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: City Council Members: Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains answered ROLL CALL. Mayor Elmore also answered ROLL CALL declaring a quorum. PRESENT NINE (9) ABSENT ONE (1). Council Member Mashburn was absent. Others present for the meeting were: City Attorney Stephanie Friedman, Finance Director Cheryl Erkel, Human Resource Director Charlette Nelson, Parks and Recreation Director Kevin House, Fire Chief Alan Laughy, Police Chief Brett Hibbs, City Engineer Adam Whitlow, CDBG Director Michelle Spencer, Assistant City Clerk Emilia Vazquez, IT Support Assistant Shawn Sutterfield, Communications Director Emily Sundermeier, and Johnny Simpson. PRESENTATION OF MINUTES: Mayor Elmore presented the minutes of the regularly scheduled City Council meeting of November 16, 2023 for approval and/or correction at the next regularly scheduled City Council meeting. APPROVAL AND/OR CORRECTION OF MINUTES: Council Member Ray moved, seconded by Council Member Bolden that the minutes of the regularly scheduled City Council meeting of November 2, 2023 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/ENGINEERING DEPARTMENT Council Member Ray moved, seconded by Council Member McCleary to approve the regular monthly report for November 2023. NOVEMBER PERMITS/LICENSE ISSUED INSPECTIONS PERFORMED Building Permits 12 Building Inspections 48 Business License - Electrical 56 Plumbing 62 HVACR 49 ROLL CALL: Council Member: Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. WATER DEPARTMENT: ORDINANCE 1744 (#28-2023) AN ORDINANCE MODIFYING JACKSONVILLE MUNICIPAL CODE § 13.16 INCREASING WATER USAGE RATES; DECLARING AN EMERGENCY, AND FOR OTHER PURPOSES. Jacksonville Water Works General Manager Jake Short recalled the last time they performed a rate study was in 2008, which led to increases in 2009, 2010, 2011, and 2012, so over a decade has passed where a lot has transpired, such as inflation. He noted during the ten year period from October 2013 to October 2023, inflation was 31.2%, but fire hydrants are at a 90% increase today versus 2013. He added that Chlorine gas was 66 cents a pound in 2013, CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 7, 2023 6:00 P.M. – 7:04 P.M. but is now $2.09 a pound; an over 200% increase. He mentioned Act 605 of 2021 mandating water providers to do rate studies every five years and to implement those results. He told how Central Arkansas Water, who they buy 80% of their water from, performed a rate study showing they need to raise rates up to 50% over the next decade. He recalled the Water Department enlisting Shawn Koorn of HDR Engineering to perform the study in 2008, who also worked with Kirby Rowland of Garver Engineering on this one. He shared the results saying they need a 35.5% increase next year, followed by a 6% increase in 2025, and then three more years at 4%. He gave an example of an average bill being $78.77 that would go to $91.01. He pointed out if they do not implement the results of the study, they will be labeled by the Natural Resources Commission to be in fiscal distress. He explained once labeled, they would have a ninety day period to file an improvement plan, but implementing the rates are basically the only way out of it. He related that being in fiscal distress opens the door to discussions about regionalism, where if they are not able to meet their financial obligations, it could lead to other deficiencies, such as regulations and water quality. Council Member Bolden confirmed they have no choice based on the information to ensure they maintain the consistency of water provided. Council Member Sansing recalled he has been an opponent to every water rate increase, but is not of this one since they have done all he has asked of them to prove the necessity of it. He stressed that we cannot let another entity take over our water system. When Council Member Rains inquired, General Manager Short told how he spoke to the Rotary Club this week to assist in getting the word out regarding this proposal. He stated they were waiting to see how things went tonight and have plans of information going out in the bill as soon as next week. Council Member Rains stressed that citizens should be notified before their bill is increased. General Manager Short recalled stating if there were issues getting this through Council, it would not hurt them badly if they had to prolong it a bit, but he does not recall March being said. He pointed out it would not be ideal to wait a month because they are up against budget so January 1st is what they would like to see. Mr. Rowland added one thing they noticed as they went through this study is at the end of last year, their expenses were exceeding revenues, so while this study was being worked on, the extra expenses were being paid out of reserves. He noted as of this January, every month they have had to pull almost $100,000.00 out of reserve, so at the end of this month, they will have pulled $1.2 million out to where it is pretty much zero, which is not a good situation. He brought up that they do not want to delay this too long, or they will not be able to make their expenses, explaining that is one reason they talked about starting in January. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 7, 2023 6:00 P.M. – 7:04 P.M. Council Member Bolden stressed that they are not trying to take money from people, but these are guidelines handed down and they must cover the water. Council Member Rains applauded the thorough report and understands the situation, but they all represent Jacksonville, where the average median take-home pay is sitting $10,000.00 below the State median, so she knows the citizens cannot afford this. She reiterated they should be afforded a notice before the rates are raised. When Mayor Elmore questioned if there is a way to promote this, General Manager Short responded that the bills for this week have already gone out, but it can go out next Friday in the next set of bills. He brought up reaching out to local news media and using that as a mechanism. He related that their front office employees have information accessible regarding charitable, community, and faith-based organizations that could help people experiencing hardships paying their bill. He mentioned their vendor agreement with the Low Income Household Water Assistance Program being extended until September 2024. He was unsure if the Program is offered to new applicants. Mayor Elmore noted possible County agencies to help and also CDBG funds. Council Member Ray moved, seconded by Council Member Bolden to place Ordinance 1744 on FIRST READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Whereupon City Attorney Friedman read the heading of Ordinance 1744. Council Member Rains moved to remove the emergency clause on Ordinance 1744 (#28-2023). MOTION DIED FOR LACK OF SECOND. Council Member Ray moved, seconded by Council Member Bolden to APPROVE Ordinance 1744 on FIRST READING and SUSPEND THE RULES and place Ordinance 1744 on SECOND READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, and Kinman voted AYE. MOTION CARRIED with Council Member Rains voting NAY. Council Member Ray moved, seconded by Council Member McCleary to APPROVE Ordinance 1744 on SECOND READING and SUSPEND THE RULES and place Ordinance 1744 on THIRD AND FINAL READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, and Kinman voted AYE. MOTION CARRIED with Council Member Rains voting NAY. Council Member Twitty moved, seconded by Council Member Ray to APPROVE AND ADOPT Ordinance 1744 in its entirety. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, and Kinman voted AYE. MOTION CARRIED with Council Member Rains voting NAY. Council Member Ray moved, seconded by Council Member Sansing that the EMERGENCY CLAUSE be approved and adopted. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, and Kinman voted AYE. MOTION CARRIED with Council Member Rains voting NAY. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 7, 2023 6:00 P.M. – 7:04 P.M. ORDINANCE 1744 (#28-2023) APPROVED AND ADOPTED THIS 7TH DAY OF DECEMBER, 2023. WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: ORDINANCE 1747 (31-2023) AN ORDINANCE AMENDING JACKSONVILLE MUNICIPAL CODES REGARDING SANITATION PROVISIONS FOR THE JACKSONVILLE MUNICIPAL CODE; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. Council Member Ray moved, seconded by Council Member McCleary to place Ordinance 1747 on FIRST READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Whereupon City Attorney Friedman read the heading of Ordinance 1747. City Engineer Adam Whitlow stated they are requesting a $2.00 per month increase with the residential rate going from $15.50 to $17.50 and commercial rate going from $26.00 to $28.00. He noted an additional container is going from $7.00 to $8.00 per container, commercial dumpster rates going from $7.00 to $9.00, and a replacement container going from $60.00 to $75.00. Council Member Dietz mentioned dumping fees rising, adding for what the City services provide compared to what the citizens pay is an excellent value. Engineer Whitlow recalled it has been thirteen years since a rate increase, and since then, the City has absorbed eight increases from Waste Management. He detailed how that increase alone, not counting inflation, accounts for about a 26% increase in the fees the City has to absorb. He feels like the City does more with less than any municipality he has compared it with, noting the weekly bulk item pickup is very unusual to offer as a standard service. Council Member Rains related that the issue is that over 50% of the households in Jacksonville are sitting below the poverty line and these rates will hit bills in January next year, giving no time for households to amend their budgets to try to make things work. Council Member Ray called for the question and discussion ended. Council Member Ray moved, seconded by Council Member McCleary to APPROVE Ordinance 1747 on FIRST READING and SUSPEND THE RULES and place Ordinance 1747 on SECOND READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, and Kinman voted AYE. MOTION CARRIED with Council Member Rains voting NAY. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 7, 2023 6:00 P.M. – 7:04 P.M. Council Member Ray moved, seconded by Council Member Sansing to APPROVE Ordinance 1747 on SECOND READING and SUSPEND THE RULES and place Ordinance 1747 on THIRD AND FINAL READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, and Kinman voted AYE. MOTION CARRIED with Council Member Rains voting NAY. Council Member Sansing noted that the City of Little Rock just suspended their waste pickup; that just shows how it is affecting everyone. Council Member Ray moved, seconded by Council Member Bolden to APPROVE AND ADOPT Ordinance 1747 in its entirety. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, and Kinman voted AYE. MOTION CARRIED with Council Member Rains voting NAY. Council Member Ray moved, seconded by Council Member Bolden that the EMERGENCY CLAUSE be approved and adopted. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, and Kinman voted AYE. MOTION CARRIED with Council Member Rains voting NAY. ORDINANCE 1747 (#31-2023) APPROVED AND ADOPTED THIS 7TH DAY OF DECEMBER, 2023. PARKS & RECREATION: PLANNING COMMISSION: COMMITTEE(S): GENERAL: a. PUBLIC HEARING ORDINANCE 1745 (#29-2023) AN ORDINANCE CREATING AND CERTIFYING TAX LIENS AGAINST REAL PROPERTIES AT VARIOUS LOCATIONS WITHIN THE CITY FOR BALANCES DUE FROM SERVICES RENDERED BY AND/OR ON BEHALF OF THE CITY OF JACKSONVILLE, ARKANSAS; AND, FOR OTHER PURPOSES. Mayor Elmore opened the public hearing at approximately 6:35 p.m. Angelina Smith, General Manager for Sully’s Cabinets and Construction and Sullivan Investment Properties, stated they are the company that has been building the duplexes on Bailey, Hickory, Ellis, and Trickey Lane. She explained one question she has for Code is where are they getting their information on who owns the properties, because there was a citation issued to their property on Hickory, although it was erroneous since it was meant for East Hickory, the original citation was sent to someone who had not owned the property for approximately six months at that time. She detailed how it was sent to the previous owner, not to Sullivan Investment Properties, so they were never notified until they got the lien warning letter. Lieutenant Ryan Wright stated the owner information they get is linked directly with Pagis, recalling the system has not updated as fast as it should have at one time. He explained once they send a letter out, the address and owner follows the case and the owner is supposed to disclose it to the buyer prior to the sale of the property. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 7, 2023 6:00 P.M. – 7:04 P.M. When Council Member Dietz mentioned that the title company should have caught it during closing, Ms. Smith related they check for tax liens and are not checking for Code Enforcement, so they are now checking it themselves. Lt. Wright mentioned they typically file liens from October to December, but now they are going to file every month so they can keep the records updated. Ms. Smith brought up that the Bailey Street issue were violations from the Spring of 2022, which should not be levied in the Fall/Winter of 2023. Mayor Elmore closed the public hearing at approximately 6:44 p.m. Council Member McCleary moved, seconded by Council Member Bolden to place Ordinance 1745 on FIRST READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Whereupon City Attorney Friedman read the heading of Ordinance 1745. Mayor Elmore noted one correction on Exhibit A that is the removal of Shelby Properties LLC 1400 North Jeff Davis Street, so that property is not being considered here for condemnation. Council Member Dietz pointed out that these are four pages of a lot of money the City is having to spend for citizens that are not paying back. Council Member Ray moved, seconded by Council Member McCleary to APPROVE Ordinance 1745 on FIRST READING and SUSPEND THE RULES and place Ordinance 1745 on SECOND READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Council Member Bolden moved, seconded by Council Member Ray to APPROVE Ordinance 1745 on SECOND READING and SUSPEND THE RULES and place Ordinance 1745 on THIRD AND FINAL READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Council Member Ray moved, seconded by Council Member Sansing to APPROVE AND ADOPT Ordinance 1745 in its entirety. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. ORDINANCE 1745 (#29-2023) APPROVED AND ADOPTED THIS 7TH DAY OF DECEMBER, 2023. b. RESOLUTION 842 (#11-2023) RESOLUTION OF THE CITY COUNCIL OF JACKSONVILLE CERTIFYING LOCAL GOVERNMENT ENDORSEMENT OF SIG SAUER, INC. TO PARTICIPATE IN THE TAX BACK PROGRAM (AS AUTHORIZED BY SECTION 15- 4-2706(d) OF THE CONSOLIDATED INCENTIVE ACT OF 2003); DECLARING AN EMERGENCY, AS FOR OTHER PURPOSES. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 7, 2023 6:00 P.M. – 7:04 P.M. Council Member Ray moved, seconded by Council Member Rains to read Resolution 842 (#11-2023). MOTION CARRIED. Whereupon City Attorney Friedman read the heading of Resolution 842 (#11-2023). Mayor Elmore stated they are bringing 625 new jobs, but there is no direct monetary benefit associated with this. Council Member Ray moved, seconded by Council Member Bolden to adopt Resolution 842 (#11-2023) in its entirety. Mayor Elmore explained that Sig Sauer is an international firearms company who has a manufacturing plant for ammunition located here and this tax back program is for no longer than four years, only applying to construction materials associated with the building they are doing now. MOTION CARRIED at this time. c. ORDINANCE 1746 (#30-2023) AN ORDINANCE ADOPTING A FISCAL BUDGET FOR 2024; MAKING APPROPRIATIONS AND AUTHORIZING EXPENDITURES FOR OPERATION OF VARIOUS DEPARTMENTS OF CITY GOVERNMENT; FOR THE PURCHASE OF MATERIALS, SUPPLIES, EQUIPMENT, AND SERVICES COVERING GENERAL FUND OPERATIONS, STREET FUND, EMERGENCY MEDICAL SERVICES FUND, SHOOTING RANGE FUND, AND SANITATION FUND; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. Council Member Ray moved, seconded by Council Member McCleary to place Ordinance 1746 on FIRST READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Whereupon City Attorney Friedman read the heading of Ordinance 1746. Finance Director Cheryl Erkel related that she increased the County sales tax by 2%, because the highway construction does not really affect it. She detailed that she only increased the City sales tax by $200,000.00 because they may not be physically going into the businesses, but they are still doing online purchases where we get sales tax from that. She noted the increase in Parks and Recreation’s revenue from last year is because Dupree Park is up and running now to bring in revenue again. Council Member Rains shared her deep concerns with the construction, citizens choosing to go to Cabot or Sherwood Walmart instead, and that the projected increases will not come into fruition. Mayor Elmore noted that with the cost of goods increasing, the amount of what the City will be receiving in sales tax is also increasing; what we lose in volume, we are making up because prices are going up on everything. He shared this past year budget came in $1.2-$1.5 million over what they thought it was going to be this year. Director Erkel clarified that the budget is a working document, not set in stone, and can be amended to ensure they do not overspend revenues coming in. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 7, 2023 6:00 P.M. – 7:04 P.M. When Council Member McCleary inquired about an Economic Developer position, Mayor Elmore replied that they budgeted for the hiring one for the City. He stated they have had the services of one through the Chamber of Commerce, funded through the A & P Commission, but they will be moving the position to the City. He related the A & P Commission is still going to give the same amount of money that was going towards that salary and the City has budgeted $45,000.00 to go towards finishing out the rest needed. Council Member Dietz brought up his concern with the court fines revenue. Council Member Ray moved, seconded by Council Member Twitty to APPROVE Ordinance 1746 on FIRST READING and SUSPEND THE RULES and place Ordinance 1746 on SECOND READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Council Member Ray moved, seconded by Council Member McCleary to APPROVE Ordinance 1746 on SECOND READING and SUSPEND THE RULES and place Ordinance 1746 on THIRD AND FINAL READING. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. Council Member Sansing moved, seconded by Council Member McCleary to APPROVE AND ADOPT Ordinance 1746 in its entirety. ROLL CALL: Council Member Dietz, Bolden, McCleary, Sansing, Ray, Moss, Twitty, Kinman, and Rains voted AYE. MOTION CARRIED. ORDINANCE 1746 (#30-2023) APPROVED AND ADOPTED THIS 7TH DAY OF DECEMBER, 2023. APPOINTMENTS: UNFINISHED BUSINESS: NEW BUSINESS: ANNOUNCEMENTS: ADJOURNMENT: Without objection, Mayor Elmore adjourned the meeting at approximately 7:04 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR JEFF ELMORE City Clerk-Treasurer