Loading...
99 OCT 21.DOC CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 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 21, 1999 at the regular meeting place of the Council. Mayor Swaim delivered the invocation after which he led the standing audience in the "Pledge of Allegiance" to the flag. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Williamson, Twitty and Howard answered ROLL CALL. Alderman Fletcher arrived at approximately 7:03 p.m. Mayor Swaim also answered ROLL CALL declaring a quorum. PRESENT nine (9), ABSENT (1). 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, Purchasing Agent C.J. Brown, Police Chief Hibbs, Fire Chief Vanderhoof, Fire Battalion Chief Bill Plunk, Parks and Recreation Director George Biggs, OECD Administrative Assistant Geri Prince, Business Incubator Program Manager Kay Phillips, Mrs. Judy Swaim, Mrs. DeDe Hibbs, Mrs. Martha Boyd, Mrs. Edith Smith, Mr. Tommy Dupree, Mr. Jack Danielson, Police Lieutenant Martin Cass, Police Sergeant John Williams, Police Lieutenant Bill Shelly, Leader Reporters Rick Kron and Robert Cox, Patriot Report Peggy Koury, Democrat-Gazette Report Larry Ault, and interested citizens. PRESENTATION OF MINUTES: Mayor Swaim presented the minutes of the Regular City Council Meeting of October 7, 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 Gentry that the minutes of the Regular City Council Meeting of 16 September 1999 be APPROVED. MOTION CARRIED. DEVIATION IN AGENDA: Mayor Swaim recognized Ms. Martha Boyd as a new appointee to the Board of Adjustment. He administered the oath of office to Ms. Boyd for a term to expire 02/05/2001. CONSENT AGENDA: REGULAR MONTHLY REPORT/FIRE DEPARTMENT Alderman Elliott moved, seconded by Alderman Smith to APPROVE the monthly Report for September 1999 of the Jacksonville Fire 1 Department. Said Report reflects a fire loss of $77,700.00 and a CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. Savings Total of $210,000.00. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Fletcher, Williamson, Twitty and Howard voted AYE. NAY 0. MOTION CARRIED. REGULAR MONTHLY REPORT/POLICE DEPARTMENT Alderman Elliott moved, seconded by Alderman Smith that the Regular Monthly Report for September of the Jacksonville Police Department be APPROVED. Said report reflects; Report Sales $307.00 making TOTAL COLLECTIONS: Not Listed. ASSESSED: Not Listed. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Fletcher, Williamson, Twitty and Howard voted AYE. NAY 0. MOTION CARRIED. REGULAR MONTHLY REPORT/OECD Alderman Elliott moved, seconded by Alderman Smith that the Regular Monthly Report for September, of the Economic and Community Development Department be approved. Said report reflects: HOUSING REHABILITATION: SEPTEMBER YR-TO-DATE Loan Applications (HOME) ................... 0 8 Grant Applications (CDBG) .................. 0 6 Emergency Handicap (CDBG) .................. 2 6 Warranty Repairs ........................... 1 4 Total Jobs Bid ......................... 2 15 Total Jobs Completed ................... 2 9 Program Inquiry Mailouts/Calls ............. 4 14 SEWER LINE (Loans, Grants Emergency) SEPTEMBER YR- TO-DATE Applications ............................... 2 6 Total Jobs Bid ......................... 2 6 Total Jobs Completed ................... 3 5 Program Inquiry Mailouts ................... 2 6 HOMEBUYER ASSISTANCE GRANT (HAG) SEPTEMBER YR-TO-DATE Application ................................ 1 13 Approved ................................... 1 12 Processed & Closed ..................... 3 12 Program Inquiry Mailouts ................... 2 5 HOME BLDG/BUYING/RECONST-SALES SEPTEMBER YR-TO-DATE Homes built or re-constructed-completed .... 1 2 Construction Sales ......................... 0 1 Mortgage Loan Applications ................. 0 2 Program Inquiry Mailouts ................... 4 10 2 Pending Financing ...................... 1 Approved Mortgage Loans ................ 0 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Fletcher, Williamson, Twitty and Howard, voted AYE, NAY (0). MOTION CARRIED. WATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: PARKS & RECREATION DEPARTMENT: PLANNING COMMISSION: GENERAL: a. ORDINANCE 1126 (#12-99) AN ORDINANCE FOR THE PURPOSE OF LEVYING ONE (1) MILL AND ONE (1) MILL AGAINST ALL PERSONAL PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY OF JACKSONVILLE, ARKANSAS; FOR THE PURPOSE OF LEVYING ONE (1) MILL AND ONE (1) MILL AGAINST ALL REAL PROPERTY WITHIN THE CORPORATE LIMITS OF THE CITY OF JACKSONVILLE; FOR THE PURPOSE OF EFFECTING CERTIFICATION TO THE COUNTY CLERK OF PULASKI COUNTY OF THE TAX LEVIED AND OTHER PRESCRIBED MATTERS PERTAINING THERETO; AND, FOR OTHER PURPOSES. Alderman Fletcher moved, seconded by Alderman Wilson to place the Ordinance on FIRST READING. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Fletcher, Williamson, Twitty and Howard voted AYE. Motion received NINE (9) affirmative votes, (0) negative vote. MOTION CARRIED. Whereupon, City Attorney Bamburg began to read the Ordinance. Alderman Ray moved, seconded by Alderman Smith to DISPENSE with the reading of Ordinance 1126 in its entirety. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Fletcher, Williamson, Twitty and Howard voted AYE. NAY (0). Motion received NINE, (9) affirmative votes, (0) negative votes. MOTION CARRIED. Alderman Fletcher moved, seconded by Alderman Gentry to ACCEPT Ordinance 1126 on FIRST READING. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Fletcher, Williamson, Twitty and Howard voted AYE. NAY (0). Motion received nine (9) affirmative votes, (0) negative votes. MOTION CARRIED. Alderman Gentry moved, seconded by Alderman Ray to place Ordinance 1126 on SECOND READING. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Fletcher, Williamson, Twitty and Howard voted 3 AYE. NAY (0). Motion received nine (9) affirmative votes, (0) negative votes. MOTION CARRIED. Whereupon City Attorney Bamburg read the Ordinance for the second time. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. Alderman Fletcher moved, seconded by Alderman Gentry that Ordinance 1126 be placed on THIRD AND FINAL READING. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Fletcher, Williamson, Twitty and Howard voted AYE. NAY (0). Motion received nine (9) affirmative votes, (0) negative votes. MOTION CARRIED. Ordinance 1126 read THIRD AND FINAL TIME by City Attorney Robert Bamburg. Alderman Fletcher moved, seconded by Alderman Smith that Ordinance 1126 be APPROVED AND ADOPTED. ROLL CALL: Aldermen: Elliott, Smith, Gentry, Ray, Wilson, Fletcher, Williamson, Twitty and Howard voted AYE. NAY (0). Motion received nine (9) affirmative votes, (0) negative votes. MOTION CARRIED. ORDINANCE APPROVED, ADOPTED AND NUMBERED 1126 THIS THE 21st DAY OCTOBER 1999. Mayor Swaim clarified that the passage of Ordinance 1126 is not a new tax, but is the standard annual millage tax as described in the Ordinance and voted for passed by the general public. He related that passage of the ordinance will re-authorize the quorum court to collect those taxes. He stated that the tax collected is not used in the operation of the City. b. Recommendation for implementation of Salary Study Mayor Swaim recognized Director of Administration Murice Green, Personnel Director Dennis Foor and Finance Director Paul Mushrush for their many hours of diligent work with the Salary Study. Director of Administration Murice Green related that due to the volume and complexity of the Salary FY2000 and recommended classification presented by the consultants, it needed to be digested for clarification, understanding and recommendation regarding the information presented. He related that in that process the consultants were further contacted for clarification regarding unfamiliar terminology. He said that the salary range and job classifications were reviewed with recommendation that seven of the job classifications be reclassified based on responsibilities, technical difficulty and the training required for those positions. He then related 4 that each Department Head was included in a review of job classifications regarding their department and that additionally Mr. Foor briefed each Department. He stated that opportunity for question and input was offered to all employees and Council members. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. He said that after a review of great depth it was determined to fund the recommendation to midpoint. He stated that with considerable discussion regarding options and application of formulas the committee is recommending placement of all employees at the prevailing market rate under a process fundable within the City budget. He related that midpoint is considered the prevailing market rate or a rate of 100%, adding that the prevailing market rate is the salary considered to attract and retain employees. The minimum is 20% below the midpoint or 80% of funding to the prevailing rate. The maximum is 20% above the mid-point or 120% in relationship to the prevailing rate. He said that the study determined the prevailing market rate with the variable of 20% on each side to provide a minimum and maximum. He related that every salary is based on the comp ratio which is the percentage a salary is to the midpoint range. He cited examples of the salary to midpoint comp-ratio and stated that initially it was viewed that all employees should be at the minimum salary range with the additional objective to move all employees to the mid-point range a.k.a. prevailing market rate. He stated that it is not an easy task and the next step would be to decide how to make that happen. He offered two proposals for consideration by the Council, one being that as of January 2000 all employees move one-half to the midpoint in dollars. He presented examples “if John Jones is at 79% and his salary is at $17,000.00 and the mid-point is $20,000.00 he would be $3,000.00 away from midpoint so he would be moved half way to the midpoint with a $1,500.00 pay raise.” Another example is if a person is at the 90% and his salary is at $15,000.00 and the midpoint is $17,000.00 then he would be raised $1,000.00 toward his midpoint. He pointed out that right away you can see that a group of people will be getting less of a raise while other will get more. He related efforts to keep distribution even throughout the minimum to mid-point so one employee could not jump above another, citing that at 89% or 90% you apply comp-ratios on a base with a minimum of $1,000.00 between the minimum and midpoint. He 5 clarified that a minimum was set to avoid compression or have an employee with one year jump ahead of one with five years. He stated that with that process there are probably a few employees that will ease over the actual midpoint. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. He referred to a chart relating that midpoint being 100%, minimum being 80% and the maximum being 120%, employees on the minimum side will move half way to the midpoint in the first year with the recommendation of a two-year implementation program. He then related that employees from the midpoint to maximum (with regards of treating all employees equitably noting that many employees have considerable experience and service to the City) the recommendation is for these employees from 100% (midpoint) to 109% will receive a 3% pay raise and employees from 110% to 120% will receive a 2% pay raise, while employees above maximum will receive a 1% pay raise in recognizing all service to the City. He stated that dollar wise this would mean a minimum of $500.00 for employees at midpoint or above. He then said that in the second year of implementation the same percentages will apply for employees who may have moved above the midpoint at that time. He then addressed the question of what happens after the two-year implementation program and everyone has reached the prevailing market rate, saying that unless market rate changes you cannot expect employees to work and provide dedication to their jobs and be at the same point without seeing something for the future. He related a salary maintenance plan is recommended for an Experience Rating Curve and proposing that every two years a salary study with comparisons of cities throughout the State be conducted. He outlined the recommendation of the ERC (Experience Rating Curve) stating that for employees that are at 100 to 103% a recommendation of a 2% pay raise, 104 to 108% comp-ratio a recommendation of 2.5% based on comparison to the prevailing market rate. He then related that as experience gains you have a gradual increase in percentage, outlining that employees at 113 to 116% comp-ratio probably compare to an employee at the 10 to 15 year point and at maximum productivity, a 3.5% is recommended for this experience level. He reminded the Council that this is a maintenance plan in lieu of no change in the prevailing market rate. He then related that it begins to decline as an employee moves toward their maximum pay scale. He stated that this is normally the time when an employee is thinking about retirement so the percentage rate here will start to decline because of their proximity to maximum on their pay scale. 6 He then related that at 120% or above, a 1.5% pay raise is recommended once you have reached maximum. In response to a question from Alderman Wilson, Mr. Green concurred that the ERC will come into play only when the midpoint does not change with a pay study review every two years. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. He related that a maintenance plan will address issues involving continued economy growth preventing a situation of the City having to catch up at the next salary review. In response to a question posed by Alderman Twitty, Mr. Green related that the maintenance plan will affect only those employees who have reached their midpoint, adding the recommendation is to conduct another salary study before the year 2001. If there are no changes in the prevailing rate then the ERC or maintenance plan can be applied. Alderman Gentry questioned if trends in the prevailing rates have been reviewed. Mr. Green stated that there has been no involvement in prevailing maintenance rates, but said that some of the cost can be extrapolated from what it has cost the City previously. Finance Director Paul Mushrush addressed the Council explaining that there were some adjustments to the list of employees with the corrected staffing number being at 241 while the original report stated 239. He related that the staffing level has not changed and in real terms there is no significant adjustment between any of the groups. He pointed out the number of employees in the below minimum level as well as the minimum to midpoint and maximum as of Monday morning. He said that all employee salaries were proofed from the payroll system. He then related that the next step was to present two basic scenarios one-year or two-year to midpoint with a maintenance schedule thereafter. He related based that on the original schedule of employees he built scenarios determining what the actual cost of implementation would be. He stated that the first year scenario brings all the employees all the way to midpoint in one absolute move, then applying the comp-ratios those employees between 100-109 comp-ratio were calculated at a 3% raise, those between 110-119 were at 2% while 1% was given to those at 120 and over. He stated that in the second year of the one-year scenario the maintenance schedule or ERC (Experience Rating Curve) was applied; bring the cost of implementation to $986,808.00 which includes variable fixed cost benefits (retirement and social security not insurance) applied to changes in salary. He then 7 related that in the second year the maintenance cost was $170,170.00 for a total of a two year cost $1,156,978. He said that the second scenario was for all employees under midpoint to move half way to midpoint and then apply the same criteria as described earlier for those employees at midpoint or CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. above. He stated that in the second year of the scenario the same criteria applied to those that are above midpoint at that time. He related that total cost in the first year of the scenario came in at $565,000.00, which is about $400,000 less than the alternate scenario. He then related second year cost to be $498,953.00 for a total cost of $1,064,888.00. He related that while the difference between the two scenarios is $92,090.00, he would like to show "why not to go whole hog the first year.” He pointed out that he created a five-year scenario and took projections over a five year span applying all the rules just mentioned for the one-year to midpoint, two-year to midpoint and then a comparative analysis. He stated that he gave a base year number to compare changes. He then explained that a base year number is a straight linear line with a 3.5% change in salary applied for five years. He showed a graph depicting the base line as opposed to the one year to midpoint scenario and the two-year to midpoint scenario and explained that the reason these curves change is because of the cumulative effect over time. He stated that the area under the curve represents base year comparison over a six year calculation and that the area under the base year curve represents cost of $37,025,727 which is subtracted from the one and two-year scenarios to figure exact cost. He then related that the two-year to midpoint scenario cost of $38,873,053 for a total cost of $1,847,326.00 and the one-year to midpoint scenario of $39,965,026 for a total cost of $2,939,298.00 which represents the cumulative effect of tonight’s decision. He said that the reason he chooses to give this comparison in this manner is that those two numbers, whichever is chosen, is the consumption of existing assets. He then stated that if you use the base year and throw everything above the base year as additional cost, pointing out that the base year has a general 3.5% growth, for a difference between the two of $1,093,000.00 over a five year period. He stated that given current levels of anticipated growth, decreasing unemployment, decreasing consumer price indexes, greater consumer confidence and more disposable income we could support a 1.8 million in change over five years, adding that we could not eat up over 3 million worth of current assets and come out in the long run. 8 Mayor Swaim said that he feels Paul, Murice, and Dennis deserve much credit for their time and effort regarding tonight’s recommendations. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. Alderman Elliott said that he appreciated their efforts in keeping Council informed, commending them and many others in their departments who have spent a lot of time in study and consideration. He said that with their help it makes us all understand it better. Mayor Swaim related that future financial soundness must be considered in making a decision and being able to project that if things work normally we can do certain things. He commended them for their efforts and stated that the first decision of the Council is to determine to what percentage to midpoint to fund. He related that the next consideration is deciding which option, the one-year or two-year prospect based on what was shown regarding the escalating cost of the different scenarios. He said that the budget will be prepared with recommendation from the Council for implementation and then Council will have the budget to consider and make a decision. Alderman Ray said that he is in favor of the two-year scenario and that he has assured employees who have approached him that they are important assets to the City. He related that he feels there has been a lot of good work on the plan. Alderman Smith stated that he favors 100% funding to midpoint with the two-year scenario being the most sensible approach presented. Mayor Swaim called for a motion, noting that this is binding only in the preparation of the budget. Alderman Wilson moved, seconded by Alderman Fletcher to prepare the 2000 budget with recommendation of the two-year plan toward 100% of mid-point. Mayor Swaim clarified that the two-year plan would be an increase of $565,000.00 in the 2000 budget. In response to a question from Alderman Wilson, Mayor Swaim related that he was not certain of the cost for updating midpoint information in two years, but added that if it can be done 9 in-house cost would be less. He then stated that, however, he would prefer that it not be performed in-house because of the skepticism no matter how hard the City tries to show its being done right. He stated that because of the criticism he would recommend that Human Resources and the Finance Departments do much of the documentation preparation and then involve the consultants. He stated that he CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. has asked the Consultants about update costs and they have said it would depend on how much work they actually have to do. He pointed out that they have the basis for the original work adding that they would only have to renew those. He then related that the Arkansas Municipal League did a good job regarding comparative analysis on salaries this year. He stated that they have changed their format which now calls for a minimum to midpoint and a maximum as opposed to the way they have always presented it before which again solidifies the fact that is the trend in reporting. In response to a question from Council, Mayor Swaim stated that he was unaware of exact cost, maybe in the thousands, but he would hope that it could be kept to a minimum. At this time the MOTION CARRIED. Mayor Swaim clarified that as the scenario reflects there will be some employees who will only receive five-hundred while others may receive as much as three thousand and more. He stated that in comparing paychecks there will be sizable differences for raises based on the study and the midpoint no matter where you are today. Human Resource Director Dennis Foor related that the recommended proposed raise of elected officials is 3% after applying the same criteria across the board. He then related that however the City Clerk was considered substantially below and will be raised to midpoint. Mayor Swaim related that recommendation will be reflected in the budget for Council consideration. OTHER ITEMS FOR DISCUSSION: Alderman Williamson pointed out the need for a left turn signal from Main to Marshall Road intersection. Mayor Swaim related that currently the signal operates with a time delay, and that the City would need to obtain permission from the 10 Highway Department to make any changes. Alderman Williamson requested that funds be set aside in the budget for those considerations. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING OCTOBER 21, 1999 7:00 P.M. - 7:55 P.M. Alderman Fletcher raised concerns regarding newly developed areas of West Main and the need for lighting going to Harris Road. He related safety concerns regarding poor lighting and road stripping. Mayor Swaim related that a bid for street stripping will be presented at the next regularly scheduled Council meeting. Director of Administration Murice Green noted that the area had been stripped two years ago. Alderman Twitty mentioned stripping concerns for Graham Road. Discussion ensued and cost factors for the reflective quality of the different stripping materials were mentioned. APPOINTMENTS: ANNOUNCEMENTS: Alderman Howard announced that Osco Honeycutt, former Council member, is celebrating his 90th birthday at the Community Center Saturday at 1:00 p.m. ADJOURNMENT: Mayor Swaim, without objection, adjourned the meeting at approximately 7:55 p.m. Respectfully, ___________________________ ____________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer 11