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97 AUG 21.DOC CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 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 21, 1997 at the regular meeting place of the Council. Alderman Smith delivered the invocation after which Mayor Swaim led the standing audience in the "Pledge of Allegiance" to the flag. Mayor Swaim welcomed all those present and requested that one spokesperson address each item if possible and requested roll call. ROLL CALL: Aldermen: Elliott, Smith, Ray, Fletcher, Williamson, Keaton, and Howard answered ROLL CALL. Alderman Wilson arrived at approximately 7:05 p.m., and Aldermen Lewis and Sansing arrived at approximately 7:08 p.m. PRESENT ten (10), ABSENT (0). Mayor Swaim answered ROLL CALL and declared a quorum. Others present for the meeting were: City Attorney Robert E. Bamburg, Mayoral Assistant Michael Beeman, Deputy City Clerk Susan Davitt, City Engineer Duane Reel, Public Works Director Murice Green, Finance Director Paul Mushrush, Office of Economic and Community Development Director Phil Sullivan, Police Chief Larry Hibbs, Fire Chief Rick Ezell, Chairman of the Wastewater Utility Mrs. Joan Zumwalt, Wastewater Manager David Thomas, Mrs. Judy Swaim, Mrs. Dee Dee Hibbs, other City employees, Petitioners for various items on the agenda, interested citizens and members of the press. PRESENTATION OF MINUTES: Mayor Swaim presented the minutes of the Regular City Council Meeting of August 7, 1997 for study and action at the next Regular 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 July 17, 1997 be APPROVED. MOTION CARRIED. CONSENT AGENDA: FIRE DEPT: Regular Monthly Report for July Alderman Ray moved, seconded by Alderman Williamson that the Regular Monthly Report for July, 1997, of the Jacksonville Fire Department be APPROVED. (Said report reflects an estimated fire loss of $ 15,300.00. ROLL CALL: Aldermen: Elliott, Smith, Lewis, Sansing, Ray, Wilson, Fletcher, Williamson, Keaton and Howard voted AYE. NAY 0. MOTION CARRIED. CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. POLICE DEPARTMENT: Regular Monthly Report for July Alderman Ray moved, seconded by Alderman Williamson that the Regular Monthly Report for July, 1997 of the Jacksonville Police Department be APPROVED. Said report reflects: Fine Settlements, $ 79,084.75, Miscellaneous Payments $ .00, Report Copies $338.00 for Total Collections of $ 79,422.75. ROLL CALL: Aldermen: Elliott, Smith, Lewis, Sansing, Ray, Wilson, Fletcher, Williamson, Keaton and Howard voted AYE, NAY (0). MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENT: PRESENTATION: Sewer Rehab/Expansion Project Mayor Swaim pointed that EPA has mandated through administrative orders that the City of Jacksonville make certain additions to the existing wastewater plant and corrections to the quality of the existing sewer lines and manholes within the sewer system. He said that the Wastewater Commission has worked many months trying to arrive at the lowest costs for doing the work and still meet EPA requirements. He recognized Mrs. Joan Zumwalt, Chairman of the Sewer Commission. She made note of Commissioners Bond, George, and McGee in attendance at the meeting and related that the Commission held two public hearings during the month of July. She complimented the extraordinary dedication of Mayor Swaim in his work with the Commission in exploring the options best suited for the citizens of the City of Jacksonville. Mrs. Zumwalt introduced Larry Gaddis, P.E. of Crist Engineers who made a presentation to the Council regarding the recommendations of the Commission. Mr. Gaddis talked about the project as follows; the improvement study and administrative order requirements, project elements, and the preliminary budget, briefly explaining four funding options recommended by the Commission. Administrative order: A study of the sewer system relative to infiltration inflow and the Johnson plant with respect to present condition and future requirements. He said that the study identified five needs; (1) defects in the system which did required some repair (2) potential for capacity deficiencies in some of the lines (3) the need to rehabilitate some facilities at CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. the existing plant (4) the need to expand the Johnson plant and (5) the need to add sludge management alternatives. He related that EPA studied the findings and then issued a second administrative order directing the Sewer Commission to implement the findings of that study according to an eight activity schedule. He said that four of those activities are marked in the present project. He said that a completed design in the form of plans and specifications is to be submitted to EPA by October 1, 1998 of next year with construction beginning by April 1, 1999 with completion in two years, April 1, 2002. He added that between the time from October 1, 1998 and April 1, 2002, the Wastewater Utility is working on the rehabilitation listed in priorities one and two which is projected to be completed about 1 January the year 2000. He related that the project as such is comprised of essentially four elements; (1) the sewer system rehabilitation, (2) the treatment plant expansion, a., it provides capacity to close the west plant, b., it provides additional capacity requested by the LRAFB and c., it provides additional capacity for future growth approximately a 20 year planning period based on some past circumstances, (3) rehabilitate some of the elements within the existing plant and (4) sludge management alternative. He said that the four elements have been grouped into the preliminary project budget with the sewer system rehabilitation costing 2.4 million dollars, the treatment plant expansion approximately five (5) million, plant rehabilitation about 1.2 million and the sludge management alterative about 1.3 million for a total estimated project cost of about $ 9.8 million. He pointed out three sources of revenue; (1) the State Revolving Loan Fund, (2) a sales tax, and (3) an increase in user charges as he related four options for funding the mandated requirements. He made the following explanation regarding the four options (exhibit "A" of these minutes) as follows: Option One (1) does not involve a loan but does involve a sales tax of approximately 8.4 million dollars over about a three and one-half year period, and that any rate increase would be deferred until the year 2001, which is when the new facility should go on line. He said that any increased operation maintenance cost would be realized at that time. He said the advantage of option (1) is user charge increase deferment before the point that the new plant goes on line at which time the project should be fully funded. CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. A sunset clause for a one percent sales tax for a three and one-half year period was pointed out by Mr. Gaddis in option (1) with an assumed income of 2.4 million dollars annually. Option Two (2) does not involve a loan but does involve both a sales tax and a user charge increase amounting to $604,140.00 per year noting the average bill with 7,000 gallon consumption would go from $11.73 to $16.25. He pointed out the advantage of no debt service with about a thirty-three month sales tax. Option Three (3) involves a revolving loan of about six million dollars from the State of Arkansas, does not involve a sales tax but does involve a user charge increase. He related that the user charge would go from $11.73 to $20.50, and if implemented by 1 January 1998, would provide money to go toward construction which would in turn reduce the amount of money borrowed. Option Four (4) involves a loan amounting to about 4.2 million dollars, a sales tax revenue of approximately one million dollars per year, and a user charge increase from $11.73 to $16.25 implemented by 1 January 1998. He said the sales tax in this option would include a sunset clause effective at the end of an eight year period. He said that all four options assume a contribution of 1.5 million dollars from the Wastewater Utility and about 1.3 million from the LRAFB. Mayor Swaim clarified that the contribution from the LRAFB is a set percentage with regard to use of the plant. Mayor Swaim pointed out that the City does not have a choice, that EPA mandates have made the action necessary. Mr. Gaddis stated that before the early eighties, there was a flat rate per household adding that the building of the Johnson Plant made an increase necessary at that time with another increase in the early nineties. He pointed out that rates for the citizens of Jacksonville are lower than most cities of comparable size. He related that the Commission has kept the system debt free and done a remarkable job keeping rates as they are at this time. He said that an increase to $20.50 is still lower than rates in Benton, Arkadelphia, and several other cities around the state. Alderman Smith noted that option one (1) seems to be the most favorable as he pointed out that an increase in user fees and passage of a sales tax might be difficult for the public. CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. Mayor Swaim pointed out that he favors saving the eight million dollars for the rate payers who have the option of deciding the funding source. He pointed out that mandates handed down by EPA are specific and that a decision has to be made regarding payment for the improvements. Mayor Swaim made the following proposal with regard to a contribution from present sales tax collections by the City of Jacksonville beginning in January of 1998: 1998 -- $400,000, 1999 -- $200,000, 2000 -- $200,000, 2001 -- $200,000. Mayor Swaim pointed out that there are other areas in the City where the million dollars could be used adding that the rate increase will affect every person in the City of Jacksonville and that this is an opportunity to defer costs and get an active assessment of what the costs will be to run the wastewater treatment plant. He said that this can affect future businesses and industries as well as maintain a lower rate for those individuals who may choose this area as a place to live. He pointed out adjustments to option one (1), insurting the one million dollars from existing sales tax funds, adding that $300,000.00 could be deleted with adjustments to the sales tax to some degree, leaving the three year sunset clause, allowing a small buffer, (ref. exhibit "A"). Alderman Smith commended the Mayor for his proposal, noting persons on fixed incomes and delayed user increases, encouraging passage of a one cent sales tax. Mayor Swaim pointed out that using the one million dollars of reserve sales tax money would not hinder any existing projects or projected programs for the year 1998. He pointed out his conservative views noting reserves for two pay periods adding that he does not feel there should be an excessive amount of reserve funds. He said that he is comfortable with taking the $400,000.00 from the reserves in the 1997 budget without cutting anything, that the money has the most dramatic effect under option one (1) pointing out three (3) advantages; no debt service, a short term payout, and no rate increase. CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. Alderman Wilson voiced that he felt all four options should be given consideration adding that the public will have to be educated with regard to their options for funding the mandated improvements. Mayor Swaim said that there is a 60 day time limit adding that he feels two weeks will be sufficient for the Council to be prepared to make a decision regarding an election or a rate increase due to the 1 January 1998 time element as presented by the Wastewater Utility. He pointed out that the final public hearing by the department is scheduled for September 30, 1997. Alderman Ray said that people seem to support the sunset clause approach with favorable comments for option one (1). Alderman Elliott voiced that he favored option one (1) for several reasons noting that he also felt a one-cent sales tax would be in order. Alderman Fletcher said that he favors option one (1) and encouraged simplicity in presenting the issue to the general public pointing out the advantages and disadvantages in all options. Mayor Swaim thanked the Wastewater Department for their presentation. Alderman Wilson expressed appreciation for the work done by the department as well noting that the Council and the Utility have no option with regard to the mandates handed down by EPA. FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: REQUEST TO ACCEPT BID: Hospital Blvd. Drainage Improvements Mayor Swaim explained the location of the improvement beginning at Hospital, paralleling Vine St., making a right turn, and going to T.P. White Drive. Alderman Fletcher moved, seconded by Alderman Howard to accept the low bid of $62,778.00 from J & S Construction for the Hospital Blvd. Drainage Improvements. (funding: Drainage Funds) MOTION CARRIED. City Engineer Reel voiced that he is comfortable with the bid and explained that each bidder was informed that no overruns would be allowed. He said that J & S Construction has not done any work for CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. the City of Jacksonville but that two sources he had information from said that they can do the job. PARKS & REC DEPARTMENT: SANITATION DEPARTMENT: PLANNING COMMISSION: FINAL PLAT: Bellevue Subdivision Phase III City Engineer Reel related that the Planning Commission had requested that the plat be withheld from presentation to the City Council until streets were completed. He pointed out that letters of approval are on file from the Water and Sewer Departments and that streets have been completed. Alderman Wilson moved, seconded by Alderman Ray that the FINAL PLAT of the Bellevue Subdivision Phase III be APPROVED. MOTION CARRIED. GENERAL: a. RESOLUTION 503 (#9-97) A RESOLUTION PROVIDING A MORATORIUM FOR A PERIOD OF NINETY (90) DAYS FOR CONSIDERATION OF APPLICATIONS FOR PLACEMENT OF PRIVATELY OWNED TELECOMMUNICATION EQUIPMENT WITHIN THE CITY LIMITS OF THE CITY OF JACKSONVILLE, ARKANSAS; CALLING FOR THE DEVELOPMENT OF REGULATION(S) FOR THE JACKSONVILLE PLANNING COMMISSION TO FOLLOW IN ADDRESSING THE ISSUES PRESENTED BY APPLICATIONS RECEIVED FROM TELECOMMUNICATION PROVIDERS FOR EQUIPMENT SITES; AND, FOR OTHER PURPOSES. City Attorney Bamburg voiced that in 1996 Congress passed the Telecommunications Act which allowed and granted municipalities the authority and control to address placement location of communication equipment as well as other areas. He pointed out that other cities are working toward addressing the telecommunications issue noting his interaction with city attorneys and the information relative to the matter provided in the agenda packet. He related that a recent request to construct a communications tower in Jacksonville has come to the office of the City Engineer and that because there are no regulations in the Jacksonville Municipal Code, there is need for the Council to look at the issue and address this kind of technology in proper fashion. Mayor Swaim introduced Mr. Hunter Stewart, representing Southwestern Bell Telephone Co., who presented written data with regard to a request to construct a 140' tower at 2711 T.P. White Drive on property owned by Dana West. He said that the tower is needed in that the system has outgrown itself in the area. CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. He said that the closest tower is located just north of Sherwood in the bean fields and one in Cabot. He said that an air space study has given clearance for up to 160' for tower construction pointing out that the request is for 140'. He related that business accounts have been lost in that their needs cannot be met. He pointed out that the company is under an FCC mandate to provide a service, build a quality product and maintain it, which he said cannot be done without the assistance of the city. He mentioned that All-Tel constructed a tower in the City of Jacksonville in June of 1986 on Gwatney Chevrolet property which is the only cellular phone tower in the City of Jacksonville at the present time. He pointed out that this is the first request made by Southwestern Bell to construct a tower adding that another request will probably not be made for another three to five years. He said that any future ordinances and/or zoning laws of the City specifically addressing tower issues would certainly be respected by the company. He related to the Council that after identifying the location for the tower, he visited the office of the City Clerk and found that there were no ordinances in place addressing communication towers. Pictures of the site showing a wooded buffer zone was presented to the Council. He said that a 140' tower is proposed on a landyn area 50' X 50' approximately 250' from any residence pointing out that the tower can be moved closer to the interstate if necessary. He related that an 11 1/2' by 22' exposed aggregate concrete building is proposed adding that a chain link or wooden privacy fence would be constructed around the property. He said that co-location is an issue expressing that it is unlikely that All-Tel would make such a request. He said that Sprint would be the most logical company to do so and that the request would be given consideration by Southwestern Bell. He pointed out that there would be availability of service to the Fire and Police Departments of the City as well. He asked that the Council consider his request in that it was started prior to the issuance of a moratorium noting how critical timing and tower construction is for customers in the area. A lengthy discussion by the Council ensued during which it was determined that the All-Tel tower is estimated to be 120'. City Engineer Reel related that he has viewed the site with Mr. Stewart adding that he has not issued a permit of any kind. CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. Mayor Swaim voiced that in looking at other ordinances it seems that a 100' tower would be more logical than 140' noting that the City of Sherwood requires the 100' height as well as other cities in other parts of the country. Alderman Sansing questioned the position of the LRAFB with regard to the tower construction. City Engineer Reel said that his information from the base, through Mr. Lucian Gill, is that a letter be placed on file with LRAFB stating clearance to Southwestern Bell from FAA for a certain height. He related that a letter now exists for clearance of up to 160'. Alderman Fletcher voiced that he desired that businesses as well as individuals benefit and prosper as he pointed out the need to address the tower in question as well as the whole issue of telecommunications in a timely fashion. Alderman Sansing, Alderman Lewis, and Alderman Elliott related that they felt more information is needed suggesting a two-week to thirty day moratorium before making a decision regulating telecommunications within the City of Jacksonville. Mr. David Henry, representing Dana West, encouraged the Council to go ahead with approving the tower requested, protecting his clients interest adding that he respects Council desire to protect the public interest. He suggested an agreed deferral instead of a moratorium while Council works out the proliferation of towers which might prevent unnecessary delays. Mr. Greg Kidd presented a petition to the Council with reference to the tower requested by Mr. Stewart. Discussion ensued as to addressing the request prior to the adoption of an ordinance. City Attorney Bamburg pointed out that the City of Jacksonville has the authority through the telecommunications act to permit a tower, however, without an ordinance in place there is nothing to provide direction. He related the possibility of difficulties that might occur if the permit is granted prior to an ordinance adoption. He told the Council that he would prefer it be handled all at once on whatever time basis the Council desired. CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. Alderman Wilson related that the absence of an ordinance does not mean something is prohibited, adding that laws are not expressly necessary in every incidence. City Attorney Bamburg related that it is his responsibility to provide the City Council with the best legal recommendations and advice he can offer. Alderman Williamson related that customers in Jacksonville have the service, and expressed support of a timely decision for a communication tower. Alderman Fletcher moved, seconded by Alderman Ray to approve the request for a communications tower. After a point of order the motion and second stands with the following addition: stipulating tower height to be 140 feet, no taller than the "Alltel" tower, as close to the freeway as possible. Discussion ensued as to the actual height of the Alltel tower. Mr. Stewart offered to have the tower measured and provide that information to City Engineer Reel. Mayor Swaim clarified the item of business at hand asking that the motion and second be withdrawn providing for the following motion: Alderman Smith moved, seconded by Alderman Ray to suspend the rules and place consideration of placement and height for a communications tower on the agenda. MOTION CARRIED with Alderman Sansing voting NAY. Alderman Fletcher moved, seconded by Alderman Ray to approve the request for a communications tower at 2711 T.P. White Drive no more than 140 feet in height, no higher than the Alltel tower, as close to T.P. White Drive and the freeway as possible . MOTION CARRIED. Mayor Swaim pointed out that the above decision does not relieve the Council of the responsibility of preparing an ordinance to address the situation of telecommunication towers. Alderman Wilson moved, seconded by Alderman Williamson that the staff at City Hall be advised to reject any applications for a telecommunications tower until the second meeting of the City Council in September at which time a committee will have provided an ordinance regulating location, height, etc. of the towers. CITY OF JACKSONVILLE, ARKANSAS REGULAR CITY COUNCIL MEETING AUGUST 21, 1997 7:00 P.M. - 9:00 P.M. Alderman Wilson suggested the second meeting in September as the time for a decision to be made on the item of business. Mr. Stewart expressed appreciation to the Council for their decision regarding construction of the tower on T.P. White Drive. City Attorney Bamburg advised the Council that it would be better to have a Resolution that supports the action just taken adding that if there are Council minutes to support direction for the staff, there is a basis for refusal by the staff to accept applications for telecommunication towers during the time period designated for Council action. At this time a vote was taken, the MOTION CARRIED, with Alderman Sansing voting NAY. Dana West expressed appreciation to the Council for approval of the tower on T.P. White Drive. The following committee was appointed by Mayor Swaim; Alderman Marshall Smith, Robert Lewis, and the City Attorney. It was suggested that Donnie Farmer of GTE be asked to serve on the committee as well. ANNOUNCEMENTS: Mayor Swaim announced the fall conference of the Municipal League in Springdale the second, third, and fourth of November, 1997. ADJOURNMENT: Mayor Swaim adjourned the meeting at approximately 9:00 p.m. Respectfully, ___________________________ ____________________________ Lula M. Leonard MAYOR City Clerk-Treasurer