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01 NOV 15.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 15, 2001 7:00 P.M. – 7:50 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 November 15, 2001 at the regular meeting place of the Council. Alderman Howard delivered the invocation and Mayor Swaim led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Elliott, Smith, Lewis, Sansing, Ray, Wilson, Stroud, and Howard answered roll call. Mayor Swaim also answered ROLL CALL declaring a quorum. PRESENT nine (9), ABSENT (1). Alderman Twitty arrived at approximately 7:05 p.m. Alderman Fletcher was absent. Others present for the meeting were: City Attorney Robert E. Bamburg, Deputy City Clerk Teresa Carter, Director of Administration Murice Green, Human Resource Director Charlie Brown, City Engineer Jay Whisker, Director of Public Works Jimmy Oakley, Finance Director Paul Mushrush, Finance Accountant Cheryl Erkel, Purchasing Agent C.J. Brown, CDBG Director Theresa Watson, Captains Ken Bouillon, Fire Chief Vanderhoof, Parks and Recreation Director George Biggs, Parks Assistant Administrator Patty Walker, Justice of the Peace Dennis Sobba, Mrs. Judy Swaim, Ms. Bonita Round, Mrs. Edith Smith, Mr. Willie Smith, interested citizens and members of the press. Mayor Swaim related that Alderman Fletcher will not be presented and has requested that Ordinance 1167 be removed from the agenda until the next regularly scheduled meeting. PRESENTATION OF MINUTES: Mayor Swaim presented the minutes of the Regular City Council Meeting of November 1, 2001 for approval and/or correction 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 18 October 2001 be APPROVED. MOTION CARRIED. CONSENT AGENDA: Regular Monthly Report/Animal Control Alderman Ray moved, seconded by Alderman Sansing to approve the Regular Monthly Report for the month of October 2001. Said Report reflects: REVENUES: 538.00 CONTRIBUIONS: 0.00 ADOPTIONS/FINES: 538.00 TOTAL: 538.00 Regular Monthly Report/Police Department Alderman Ray moved, seconded by Alderman Sansing to approve the Regular Monthly Report for the month of October 2001; Total value of Reported Stolen Property $143,217.00, Total value of Recovered Stolen Property 1 $63,967.00 and Total Report Sales are $386.00. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 15, 2001 7:00 P.M. – 7:50 P.M. Regular Monthly Report/Fire Department Alderman Ray moved, seconded by Alderman Sansing to approve the Regular Monthly Report of October 2001. Said report reflects an estimated fire loss of $200,000.00 and a saving of $88,500.00. Regular Monthly Report/Engineering Alderman Ray moved, seconded by Alderman Sansing to approve the Regular Monthly Report of October 2001. PERMITS/LICENSE ISSUED INSPECTIONS PERFORMED Building Permits 11 Building Inspections 38 Business License 10 HVACR 30 Electrical 45 UNSIGHTLY & UNSANITARY Plumbing 62 Grass Letters 71 Property Mowed 35 VEHICLES Trash Letters 61 Notice on Noncompliance 34 Trash Removal 2 Towed 4 Cost for October $3,782.00 CONDEMNATIONS Structural Maint. Letters 0 Structural Repairs Made 0 Demolitions 0 ROLL CALL: Aldermen Elliott, Smith, Lewis, Ray, Wilson, Stroud and Howard voted AYE. (0) voted NAY. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: SANITATION DEPARTMENT: STREET DEPARTMENT: GENERAL: a. ORDINANCE 1167 (#21-01) AN ORDINANCE AMENDING JACKSONVILLE MUNICIPAL CODE 9.12; PROHIBITING THE DISCHARGE OF WEAPONS WITHIN THE CORPOATE LIMITS OF THE CITY OF JACKSONVILLE; ASSESSMENT OF A PENALTY FOR VIOLATION OF THE TEMS OF THIS ORDINANCE; AND, FOR OTHER PURPOSES. Ordinance 1167 (#21-01) is rescheduled for December 6, 2001. b. CDBG Consolidated Plan Update 2002 Action Plan Mayor Swaim presented the plan and recognized Alderman Ray. Alderman Ray stated that CDBG funds have always been distributed well. He then commented on the Census, saying that he hopes that the population 2 continues to improve and that Director Watson has done a good job. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 15, 2001 7:00 P.M. – 7:50 P.M. Alderman Ray moved, seconded by Alderman Lewis to accept the CDBG Consolidated Plan Update 2002 Action Plan. Alderman Stroud commended Director Watson, noting that rental units in 1990 were 54%, a growth from 28.3% in 1980 but slide down in 2000 to 53%. He stated that in his opinion 53% supports his feeling that planning should not be left to the developers. He further illustrated that on page 16 of the report it refers to a lack of focus regarding resources in Jacksonville. He stated that it also offers suggestions for improvements in the City. He expressed concern regarding the 2002 goals, saying that he feels they are extremely low and the City should plan for attainable goals but also raise that expectation. He went on to say that the outline of goals provided is for the NRSA area (a portion of the City that is economically disadvantaged). He then brought up concerns that the Jacksonville medium income is 8% below the national average, adding that he feels there are opportunities to improve that percentage. He commended Director Watson for her work. At this time, MOTION CARRIED. c. ORDINANCE 1156 (#10-01) AN ORDINANCE AMENDING JACKSONVILLE MUNICIPAL CODE §5.16 MODIFYING RULES AND REGULATIONS FOR ITENERATE MERCHANTS, SOLICIOTORS AND VENDORS IN THE CITY OF JACKSONVILLE, AND FOR OTHER PURPOSES. Alderman Stroud stated that the committee had originally purposed an outright ban regarding solicitation, but was advised by City Attorney Bamburg that an outright ban would be a violation of the Interstate Commerce Act. He stated that he believes the proposed Ordinance is excellent, adding that further considerations were addressed regarding setback requirements. He mentioned the requirement regarding badges, saying that the Council will need to decide if they should be produced by Code Enforcement or submitted by the solicitors when applying for a permit. He related that his thought from the citizens standpoint would be that a standardized badge with the City seal would be a recognizable means of determining that that the person has been properly permitted. He then mentioned costs factors regarding I.D. badges. Alderman Smith supported solicitor badges, adding that he is unsure if Code Enforcement should be the entity to issue the badge. Alderman Wilson requested an ordinance change summary, saying that he would like to review the proposed changes regarding the present Ordinance in effect. City Clerk Davitt will provide copies of the existing Ordinance to Council members. 3 City Attorney Bamburg stated that the existing Ordinance does not require a permit fee, adding that frequently solicitors do not register with either Code Enforcement or the City Clerk's Office. He stated that the proposed ordinance requires registration, and limits the time frame for CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 15, 2001 7:00 P.M. – 7:50 P.M. solicitation. He added that the proposed ordinance would require solicitors to comply with all Municipal Code provisions, Health Department, fire and safety standards for various types of solicitation. He then pointed out that other than food vendors; normal solicitation would be subject to all Jacksonville Municipal Code setback requirements. He explained that there would be no solicitation between the hours of 8:00 p.m. and 9:00 a.m. Monday through Saturday, or on Sunday. He stated that solicitors would have to complete an application process, which requires a great deal of information as well as proof of any license or permit by any State or Federal law, and proof of a bond equal to 10% of their previous year gross sales or $1,000.00, whichever is greater. He pointed out that the proposed ordinance requires that each solicitor have a badge to be provided by the applicant and the Department will keep a photocopy of the badge. He stated that the Department will review each applicant for compliance and issue a permit. He related that permits will have all appropriate information and each solicitor will be required to carry the permit or a photocopy with them at all times while soliciting. He related that citizens who inquire would be allowed to review the permit, adding that it would be a violation if they do not have the permit and badge. He went on to say that the City Engineer, his office, or designated representative could deny the permit if the solicitor does not meet all requirements or if there is a particular violation. He related that the cost factor would be $25.00 per day and a permit can be issued for up to six (6) calendar days excluding Sunday. He added that a paid privilege tax from Jacksonville or another municipality within Arkansas would be required. He stated that exclusions are non- profit charitable, educational, political, and religious organizations of a local nature, adding that enforcement would be through the Code Enforcement Department. He stated that if the City revokes a permit there can be a hearing and appeal process where the Mayor has the final decision, adding that they can be cited to district court where the fines can be $100.00 up to $500.00. Alderman Wilson expressed his desire to protect community merchants and questioned the practice of accepting a privilege tax from elsewhere in the State. In response to a question from Alderman Wilson, City Attorney Bamburg stated that the City of Jacksonville has an existing reciprocity with other municipalities, explaining that if other businesses come into town and have proof of their paid privilege tax, they are not required to purchase another one. Alderman Wilson discussed prohibiting solicitation on additional days including Sunday. 4 City Attorney Bamburg stated that Sunday is considered an exclusion because the courts have interpreted based on long standing belief that most businesses are closed on Sunday for religious purposes. He stated that he was not sure the court would uphold a ban on regular business days, adding that it may vary among the different circuit courts that exist in the Federal system. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 15, 2001 7:00 P.M. – 7:50 P.M. City Attorney Bamburg went on to say that such a court case could bring damages if the judgment is found against the municipality. Discussion ensued regarding the amount of judgment depending on the type of business. Alderman Stroud stated that the ordinance has safeguards to ensure proper permitting. It was noted that the permit fee would apply to each individual. City Engineer Whisker stated that the solicitors should be required to provide a photo I.D. badge, adding that permits are issued with a signature, which is the proof that they have been properly permitted. Alderman Ray moved, seconded by Alderman Smith that Ordinance 1156 be placed on FIRST READING. ROLL CALL: Aldermen Elliott, Smith, Lewis, Sansing, Ray, Wilson, Stroud, Twitty, and Howard voted AYE. Whereupon City Attorney Bamburg read the title of Ordinance 1156. Alderman Stroud moved, seconded by Alderman Smith that Ordinance 1156 be accepted on FIRST READING. ROLL CALL: Aldermen Elliott, Smith, Lewis, Sansing, Ray, Wilson, Stroud, Twitty, and Howard voted AYE. The ordinance will be studied along with additional information from City Attorney Bamburg and City Clerk Susan Davitt to be considered at the next regularly scheduled City Council meeting. d. DISCUSSION 2002 BUDGET Mayor Swaim presented the Draft Budget, relating that each Department has completed their budgets. He commended Mr. Mushrush and his staff regarding budget preparation and stated that he and Mr. Mushrush have reviewed the budget. He related that as customary it is no different from other years, saying that there are more budget requests then funds. He pointed out that the budget requires a considerable amount of time to make sure that funds are expended wisely. He stated that the budget is not yet balanced, asking for input from the Council regarding health insurance. He provided the Council with information costs regarding the Municipal Health Benefit Fund insurance, and pointed out that traditionally the City has paid most of the 5 employee’s health coverage. He related that for a percentage the employee can extend coverage for their family. He related that the City has paid $777,070.63 in premiums, and that paid projected losses are $945,348.57 resulting in a 121.66% usage. He stated that it would be impossible for an insurance company to reissue the same premium when a customer is using more than its paid premiums. He related that increases are based on usage and pointed out that the Municipal League does not try to make a large profit regarding health insurance. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 15, 2001 7:00 P.M. – 7:50 P.M. He related a $95,520 effect on the budget, consisting of a monthly $40.00 increase for each family plan and a $20.00 single plan increase. He stated that the budget does not reflect the health coverage increase because the figures were just received, adding that the question comes each year regarding how much employee coverage costs will the City finance. He related that a family plan is $551.50 monthly and is considered a competitive price for the amount of coverage. He added that the single plan is $241.50. In response to a question from Alderman Wilson, Mayor Swaim related that the City pays 65% of the family plan coverage and 100% of the single plan. He pointed out that currently an employee pays $59.50 monthly for the family health and dental coverage. Discussion ensued regarding the percentage increase and Mayor Swaim related that it is approximately 7%. He related instances of other cities and private companies that received a 25% to 35% increase driven somewhat by the usage. He then pointed out that increases are also driven by high medical costs and prescription drug costs, adding that this plan does cover drugs. He stated that it is a good plan and a good benefit for City employees. He related that he would love to continue carrying the same percentage costs, but wanted the Council to consider and understand these considerations as part of the budget struggle. In response to a question posed by Alderman Wilson, Mr. Mushrush related that pharmaceutical co-pays are $10, $20, and $30; he explained the difference in prescriptions ranging from generic to specific name brands. Alderman Wilson questioned optional plans regarding slightly higher rates and overall lower premiums. Mayor Swaim stated that other plans are not an option, but that there is an option regarding a higher deductible for the medical coverage. He stated that currently the deductible is $200.00, but the City could choose to go to a $500.00 deductible. He then related that the plan the City carries is the same plan carried by the majority of the cities involved in the Municipal League and pointing out that some cities chose higher deductibles. He stated that one theory seems to be that there is less use with a higher deductible. 6 Alderman Wilson stated that he feels the City should continue to pay as it has and related that City employees need to be informed of the higher premium costs that the City is paying as a benefit. He stated that this helps the City to be competitive, and maintain good employees with good benefits. He added that it can be difficult to do sometimes but concurred with the Mayor saying that higher cost is a combination of factors including usage which is beyond our control. Mayor Swaim pointed out that the premium increase is equivalent to a $480.00 annual raise for employees on the family plan. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 15, 2001 7:00 P.M. – 7:50 P.M. Alderman Ray related difficulties he experienced in the private sector regarding a $40.00 health insurance increase associated with Dupont’s retirement package that was passed on. He added that it would be good if the City could continue to pay the same percentage for the employees; but if the City determines otherwise then additional costs to the employee should not be more than 5%. He reiterated the desire to keep good employees and have good benefits with the City of Jacksonville. Alderman Smith expressed confidence in Mayor Swaim, and stated that he feels the employees should realize the benefit of insurance. He pointed out that in any business occasionally employees do not fully realized their benefits and stated that he feels the Council majority agrees to absorb the increase in the budget. Mayor Swaim stated that the other area being worked is salaries. He pointed out that the City paid for a salary study two years ago and has completed the follow up study, which is being worked regarding the prevailing wage type pay grades. He related that employees who are not at the prevailing wage will receive a higher dollar amount in raises than employees who are at their prevailing rate. He stated that not all employees would receive the same percentage, adding that the past study is being used to interpret the prevailing rate within Jacksonville’s jurisdictional area including cities of the same size and some larger. He pointed out that a salary committee consisting of employees, Mr. Mushrush, and Mr. Green have held several meetings during the year, adding that it is believed they have a salary package that the will please the employees. He stated that the committee members have agreed, although not everyone will make it to prevailing wage this year, it will be a significant increase for those not at the prevailing rate. Alderman Wilson questioned if the benefit package offered by the City is factored in the wage study versus other communities regarding paid insurance costs and holidays. Mayor Swaim stated that although it is difficult to compare the City has looked at those factors over the years. He stated that it is curious that often times those factors are separated from wages, but added that 7 all factors are measured to achieve the best comparison when considering salary increases. In response to a question posed by Alderman Smith, Mr. Green related that benefit factors did not play a part in the original salary study. He asked Council to also realize that Jacksonville is competing against Little Rock, Sherwood, and other cities. He stated that even though Jacksonville is moving toward a prevailing market rate, the other cities are still going to pay more. He added that it is hoped a better benefits package will offset the extra dollars, plus the drive to Little Rock and similar issues. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 15, 2001 7:00 P.M. – 7:50 P.M. Mayor Swaim stated that the final budget will be prepared for approval by the last meeting in December. He added that the delay would allow the opportunity to include November Sales Tax checks, which reflect September income and will provide a better idea regarding income projections. He related that even with efforts by the Federal Government to stimulate the economy, the Governor announced a 164 million dollar State budget cut primarily due to the lack of sales and corporate income tax collected and that the City of Little Rock is experiencing a 12 million dollar deficit. He stated that the City of Jacksonville will present a balanced budget without a deficit. He stated that he and Mr. Mushrush have always been very conservative regarding anticipated fluctuations in the sales tax, making sure that if the City experienced a down year there would be available funds. He stated that occasionally that has been a sticking point, but added that good planning two or three years in advance prevents having a situation similar to Little Rock. He stated that the City of Jacksonville does not ever want to be forced to cut employees or services. He asked that the Council be patient regarding the final stages of the budget, agreeing that the City of Jacksonville has good employees and hopes to continue providing the same services. Alderman Wilson emphasized that the City is in excellent fiscal condition because of Mr. Mushrush and Mayor Swaim’s conservative approach. He stated that their dedication to sound financial management is very much appreciated. Mr. Mushrush related that while he and the Mayor have been conservative in revenue forecasting, it has not been too conservative in nature because it has always been plus or minus 2% as an average. th ANNOUNCEMENTS: Christmas Lighting Ceremony will be held November 29 at 6:00 p.m. at City Hall, sponsored by the Chamber of Commerce. ndrd City hall will be closed November 22 and 23 for Thanksgiving Holiday. Mayor Swaim reported on the meeting with the Highway Department, saying that it was an excellent meeting with a presentation from Mr. Wilson. He 8 related that projects were reviewed included the James Street bridge. Director of Administration Murice Green and Mayor Swaim introduced newly hired Director of Human Resources, Mr. Charlie Brown. ADJOURNMENT: Mayor Swaim without objection adjourned the meeting at approximately 7:50 p.m. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer 9