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99 DEC 02.DOC CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 2, 1999 7:00 P.M. - 7:20 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 2, 1999 at the regular meeting place of the Council. Alderman Smith delivered the invocation after which Vice Mayor Lewis led the standing audience in the "Pledge of Allegiance" to the flag. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, and Fletcher answered ROLL CALL. Alderman Williamson arrived at approximately 7:06 p.m. Mayor Swaim was out of town for National League of Cities. Vice Mayor Lewis Mayor answered ROLL CALL declaring a quorum. PRESENT seven (7), ABSENT (3) including Mayor Swaim. Others present for the meeting were: City Attorney Robert E. Bamburg, Deputy City Clerk Melanie Green, Human Resource Director Dennis Foor, Director of Administration Murice Green, City Engineer Duane Reel, Finance Director Paul Mushrush, OECD Director Frank Rowland, Deputy Director of Public Works Jimmy Oakley, Fire Chief Vanderhoof, Mrs. Edith Smith, Mrs. Lindy Lewis, Mr. Terry Sansing, Leader Reporter Rick Kron, Patriot Report Peggy Koury, and interested citizens. PRESENTATION OF MINUTES: Vice Mayor Lewis presented the minutes of the Regular City Council Meeting of November 18, 1999 for approval and/or correction at the next Regular City Council Meeting. APPROVAL AND/OR CORRECTION OF MINUTES: Alderman Smith moved, seconded by Alderman Wilson that the minutes of the Regular City Council Meeting of 4 November 1999 be APPROVED. ROLL CALL: Alderman Elliott, Smith, Gentry, Ray, Wilson, and Fletcher voted AYE. NAY 0. MOTION CARRIED. CONSENT AGENDA: WATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: PARKS & RECREATION DEPARTMENT: PLANNING COMMISSION: GENERAL: a. Request to Accept bid CDBG Sage Street Widening Mr. Frank Rowland related that while Lasiter is the only bid received it is recommended, adding that CDBG budgeted approximately $30,000.00 for the project with bid coming in at $28,002.50. He related some difficulty in obtaining qualified bidders. 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 2, 1999 7:00 P.M. - 7:20 P.M. Alderman Wilson moved, seconded by Alderman Gentry to approve the bid from Lasiter Asphalt in the amount of $28,002.50. ROLL CALL: Alderman Elliott, Smith, Gentry, Ray, Wilson, and Fletcher voted AYE. NAY 0. MOTION CARRIED. b. Expected CDBG/Expenditures for 2000: $ 327,000 PRIORITIZED EXPENDITURE: ADMIN $ 65,400 COMMUNITY DEVELOPMENT (Home Rehab & Homebuyers Assistance) $ 156,000 JOB CREATION (incubator) $ 50,000 NEIGHBORHOOD REVITALIZATION $ 7,000 PUBLIC IMPROVEMENT PROJECTED FUNDED $ 48,000 Playground equipment/Galloway Park funded $ 20,132 Playground equipment/Excell Park funded $ 29,848 Playground equipment/Johnson Park funded $ 27,201 The following are projects not funded: Install sidewalk for school children (Madden Road) Update athletic equipment for area children (Graham Road) Purchase materials for Viking Stadium (Ray Road) Provide standardized trash containers in (Sunnyside) Improve appearance of school by installing curbs (Sharp Street) Carryover Projects Prior Year Approved scheduled for 2000 Sidewalk along Stanphill from Liberty to Ray Road $20,000 1999 CDBG Reconstruct South Spring Street $158,000.00 1997 CDBG Alderman Wilson moved, seconded by Alderman Ray to approve the proposed CDBG Year 2000 Projects as submitted. ROLL CALL: Alderman Elliott, Smith, Gentry, Ray, Wilson, Fletcher, and Williamson voted AYE. NAY 0. MOTION CARRIED. c. Update from Water Commission by Ken Anderson Mr. Anderson presented an update to the Council regarding the possible rate increase by the City of Little Rock. He explained that Water Commission Chairman Thad Gray and North Little Rock Mayor Hayes has expressed opposition to the rate increase at the November 2nd public hearing and will again on December 7th at the Little Rock City Council meeting. He stated that North Little Rock City Council has passed a 22% rate increase regarding their internal cost of operations and capital increase expenses which does not include the proposed rate increase from Little Rock. He related that if the rate increase is passed it will raise the rate by 15% for a total of 37% to outside city customers. 2 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 2, 1999 7:00 P.M. - 7:20 P.M. He related that Jacksonville purchases three million gallons of water per day at the rate of $1.09 per 1,000 gallons. He related that with a 37% increase it will raise rates to $1.50 per 1,000 gallons and that over a one year period that will increase cost by $450,000.00. He related that Jacksonville Water Commission is currently conducting a rate study for itself and will be adding the annual increase into expenses to determine rates at a later date. He referred to data presented that included a letter to Little Rock Mayor Jim Dailey and the Little Rock Board of Directors from Mayor Tommy Swaim, Water Commission Chairman Thad Gray, and himself. He pointed out that the information includes several newspaper articles which mention that Jacksonville and North Little Rock is participating in an analysis of the Little Rock study. In reply to Alderman Smith, Mr. Anderson related that Jacksonville and No. Little Rock will continue to search for a new water source. Alderman Fletcher pointed out that currently North Little Rock pays $ 0.42 but charges $ 0.81 cents per one hundred cubic feet of water it sells. He stated that outside the city customers pay time and one-half. He explained that after North Little Rock purchases from Little Rock at $ 0.42 and incorporates operation charges to Jacksonville and that Jacksonville then charges an additional 25% to bulk rate customers. Discussion ensued as to analysis of the study and efforts to persuade Little Rock to lower the proposed increase. Alderman Elliott stated that basically Little Rock will be able to maintain reserves that were built over many years with the help of other cities and passing rate increases strictly to business, industrial and outside customers. In response to a query from Alderman Ray, Mr. Anderson stated that of the purchased three million gallons of water daily represents 60% use by the City of Jacksonville with 40% being acquired from the well system. He stated that hopefully the well system will help moderate the rate increase but that regarding summer usage Jacksonville would not be able to decrease the amount of purchased water. In response to a query from Alderman Wilson, Mr. Anderson related that North Little Rock conducted a cash basis study which has been the same method for twenty years. It was noted that the increase from North Little Rock is across the board while Little Rock is 3 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING DECEMBER 2, 1999 7:00 P.M. - 7:20 P.M. proposing the full increase to the outside the City customers. He clarified that North Little Rock is spreading their increase over the entire rate base equally. Discussion ensued as to the rational for Little Rock not spreading their rate increase over the entire rate base. Mr. Anderson stated that the approach they are using is the cost basis approach. He explained that when you use the cost basis approach you take into consideration peak day and peak hour and determine which entities are using the most water at those times taking a percentage you allocate the cost on that basis. In response to a question from Alderman Wilson, Mr. Anderson stated that they have used the cash method in the past but are departing from standard procedure. He recognized that the change in methodology is allowing them to get a significant increase in revenue without charging their residential customers. Mr. Anderson noted that 8,000 gallons of water cost our typical customers $13.89. Discussion ensued and plans to attend the hearings to voice opposition were made. Mr. Anderson responded that he would encourage anyone from Jacksonville to show up on December the 7th at Little Rock City Hall at 6:00 p.m. APPOINTMENTS: ANNOUNCEMENTS: ADJOURNMENT: Vice Mayor Lewis, without objection, adjourned the meeting at approximately 7:20 p.m. Respectfully, ___________________________ ____________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer 4