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03 MAY 15.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 15, 2003 7:00 P.M. – 7:36 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 May 15, 2003 at the regular meeting place of the Council. Alderman Ray delivered the invocation and Mayor Swaim led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Elliott, Smith, Sansing, Ray, Stroud, Twitty, and Howard answered roll call. Mayor Swaim also answered ROLL CALL declaring a quorum. PRESENT seven (7), ABSENT (3). Alderman Lewis, Wilson and Fletcher were absent. Others present for the meeting were: City Attorney Bobby Bamburg, Deputy Clerk Heather Palermiti, Director of Administration Murice Green, Human Resource Director Charlie Brown, Finance Director Paul Mushrush, City Engineer Jay Whisker, Public Works Director Jimmy Oakley, CDBG Director Theresa Watson, Parks and Recreation Director George Biggs, Police Chief Ruthven, Fire Chief Vanderhoof, Finance Nikki Wilmoth, Mrs. Judy Swaim, Mr. Tommy Bond, Mr. Larry Smith, interested citizens and members of the press. PRESENTATION OF MINUTES: Mayor Swaim presented the minutes of the Regular City Council meeting of May 1, 2003 for approval and/or correction at the next Regularly Scheduled 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 17 April 2003 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/ANIMAL CONTROL Alderman Smith moved, seconded by Alderman Ray to approve the Regular Monthly Animal Control Report for April 2003. Said report reflects: ADOPTION/FINES: $841.00 CONTRIBUTIONS: $ 0.00 TOTAL: $841.00 REGULAR MONTHLY REPORT/ENGINEERING Alderman Smith moved, seconded by Alderman Ray to approve the Regular Monthly Engineering Report for April 2003. Said report reflects: PERMITS/LICENSE ISSUED INSPECTIONS PREFORMED Building Permits 27 Building Inspections 77 Business License 29 HVACR 50 Electrical 79 Plumbing 81 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 15, 2003 7:00 P.M. – 7:36 P.M. UNSIGHTLY & UNSANITARY VEHICLES Grass Letters 157 Notice of Noncompliance 40 Property Mowed 0 Towed 2 Trash Letters 91 Trash Removal 0 CONDEMNATIONS Cost for April $ .00 Structural Maint. Letters 0 Structural Repairs Made 0 Demolitions 0 REGULAR MONTHLY REPORT/POLICE DEPARTMENT Alderman Smith moved, seconded by Alderman Ray to approve the Regular Monthly Report for April 2003. Said report reflects the Total Value of Reported Stolen Property $57,742. Total Value of Recovered Stolen Property $22,600 and Total Report Sales $454.00. REGULAR MONTHLY REPORT/FIRE DEPARTMENT Alderman Smith moved, seconded by Alderman Ray to approve the Regular Monthly Report for April 2003 from the Jacksonville Fire Department, which reflects a fire loss of $190,500 and a savings total of $379,500. SANITATION DEPARTMENT GARBAGE TRASH Tons taken to Landfill 688 Cubic Yards Collected 3,100 Tipping fees for April $ 11,160.00 Cubic Yards Mulched 1,555 Bulk tons to Landfill 65 Tipping fees for April $ 2,810.00 RECYCLING Curbside pick-ups 3,545 Drive-thru Customers 442 Tires Collected 1,844 Estimated Revenue Paper, Plastic, Aluminum $ 4,798.14 STREET DEPARTMENT ROAD AND DRAINAGE BEAUTIFICATION Asphalt Shims 11 Bags/Litter 106 Storm Drain Inlets cleaned 15 Islands mowed 40 Storm Drain Culverts cleaned 150 ft Yards mowed 44 Open ditches cleaned 1,50 ft R-0-W mowed 2 mi Potholes repaired 13 Community Service Hours Utility cuts repaired 3 12 people–288 hrs. Shoulder repair 1 mile City lots mowed 8 R-O-W cleaned/street sweeper 250 miles Culvert Installed 76 ft SIGN & SIGNAL Drain Inlet Boxes repaired 3 Signs Fabricated 86 Curb & Gutter replaced None Signs Installed 50 2 Sidewalk repaired 23 ft Pavement Markers 10 Asphalt Milling None Signal Maint. 30.5 hrs Base Failure Repair 1 site Misc. 27.5 hrs CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 15, 2003 7:00 P.M. – 7:36 P.M. Alderman Stroud commented that the City is making progress regarding clean- up, noting some areas on Redmond Road that still require some attention. He related the City procedure for placing a lien on property that has been mowed or cleaned and requested the status of those liens. City Attorney Bamburg related that State statute allows the City to file a lien to be collected when property taxes are collected, adding that the County Assessors Officer has asked the cities in Pulaski to provide a uniform filing system. He stated that Jacksonville is in the process of being linked with North Little Rock and Sherwood. He stated that once the liens are filed they will be collected and returned to the cities. ROLL CALL: Aldermen: Elliott, Smith, Sansing, Ray, Stroud, Twitty, and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: SANITATION DEPARTMENT: STREET DEPARTMENT: Request to Accept Bid 2003 Asphalt Overlay Mayor Swaim related that there was good bid participation. He added that Freshour Construction contacted him and related that they were not able to submit an overlay bid because of extensive contracts regarding the I- 40 repairs. City Engineer Whisker stated that he felt the low bid was a good bid, noting that typically overlay is estimated at $40.00 per ton, and the low bid came in at $38.38 per ton. Alderman Elliott moved, seconded by Alderman Ray to approve the low bid from Cranford Construction in the amount of $247,690.45 with funds to be drawn from Budgeted Street Funds. MOTION CARRIED. PARKS & RECREATION: ORDINANCE 1197 (#5-03) AN ORDINANCE WAIVING COMPETITIVE BIDDING BY THE CITY OF JACKSONVILLE, ARKANSAS, FOR THE EXPANSIONS AND REFURBISHMENT OF THE JACKSONVILLE COMMUNITY CENTER’S AIR HANDELING UNIT (POOL AREA); DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSE. Mayor Swaim related that the pool area at the Community Center has had condensation problems for some time, adding that the City hired an engineering firm to evaluate and provide recommendation. He stated that prompt repairs are necessary because of the oncoming summer season. 3 Alderman Smith moved, seconded by Alderman Sansing that Ordinance 1197 be placed on FIRST READING. ROLL CALL: Alderman Elliott, Smith, Sansing, Ray, Stroud, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1197. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 15, 2003 7:00 P.M. – 7:36 P.M. It was noted that the recommendation is for an HVAC System from Trane Arkansas Inc in the amount of $12,513.00. Alderman Stroud moved, seconded by Alderman Ray that Ordinance 1197 be APPROVED on FIRST READING. ROLL CALL: Alderman Elliott, Smith, Sansing, Ray, Stroud, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Stroud moved, seconded by Alderman Ray that Ordinance 1197 be placed on SECOND READING. ROLL CALL: Alderman Elliott, Smith, Sansing, Ray, Stroud, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1197. Alderman Stroud moved, seconded by Alderman Ray that Ordinance 1197 be placed on THIRD and FINAL READING. ROLL CALL: Alderman Elliott, Smith, Sansing, Ray, Stroud, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1197. Alderman Smith moved, seconded by Alderman Ray that Ordinance 1197 be APPROVED AND ADOPTED. ROLL CALL: Alderman Elliott, Smith, Sansing, Ray, Stroud, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Elliot moved, seconded by Alderman Ray that the EMERGENCY CLAUSE be APPROVED AND ADOPTED. ROLL CALL: Alderman Elliott, Smith, Sansing, Ray, Stroud, Twitty, and Howard voted AYE. NAY (0). MOTION CARRIED. TH ORDINANCE APPROVED, ADOPTED AND NUMBER 1197 THIS 15 DAY OF MAY 2003. PLANNING COMMISSION: GENERAL: a. Request to Accept Bid: Redmond Road Sidewalk improvements Mayor Swaim related that the City has received a grant for sidewalk improvements from James Street to Park Street. He stated that Bond Engineering prepared the bid. He then responded that the City’s portion would be approximately $100,000. In response to a question posed by Alderman Elliott, Mr. Bond stated that the two schedules reflect one with Highway Department participation and one without. He stated that the Highway Department requested the bid consist of two schedules because of State guidelines. He then related that three bids were disqualified because of a Federal Highway requirement that all bids must be signed by the contractor that there has not been any collusion regarding the bid. He noted that there were six bidders, adding that not signing the collusion statement is automatic disqualification. Mr. Bond stated that Mc.V, Inc. is the lowest 4 responsive bidder. Alderman Stroud moved, seconded by Alderman Ray to approve the low bid from Mc V, Inc. in the amount of $329,882.00 with City match funds to be drawn from the Street Department Funds and Capital Improvements and the balance to be Highway grant funds. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 15, 2003 7:00 P.M. – 7:36 P.M. Mr. Bond noted that a large percentage cost of the project is storm drainage, explaining that the sidewalk will be the top portion of a box culvert installed. At this time, MOTION CARRIED. Mayor Swaim stated that he had spoken with Alderman Lewis earlier who expected to attend City Council. He then related that Alderman Lewis is recovering and doing well. b. Taxi-Service Recommendations from City Attorney Bamburg City Attorney Bamburg stated that he had reviewed the State Statutes and obtained copies of taxi ordinances from surrounding cities. He stated that Arkansas State Statutes grants cities the power and authority to regulate and control by ordinance those businesses that operate vehicles for hire. He stated that this includes not only taxi-service but also limousines and private (bus/van) transportation. He stated that the authority ranges from setting up approval or disapproval of having a transportation system, to determining and regulating the rates that are charged. He added that it includes both the numbers of parties allowed a privilege license, as well as how those parties are regulated regarding qualification. He related that State code mandates that any violators of the provisions established can be fined at the rate of no less than Twenty-five ($25.00) and no more than fifty dollars ($50.00) per offense. He pointed out that surrounding cities have fairly unformed systems that determine this is a privilege and is regulated to require liability insurance, sworn applications in accordance with State Law, and permanent facilities for the business. He stated that however they differ in the nature, the City has the authority as to how much is charged for a permit and what type of permit fees are assessed, as well as the manner in which they are assessed and the number of permits issued. He related that some cities charge on a lengthy period, some charge on annual basis, adding that cities have differing regulations on the standards that are set for not only the companies but also the vehicles as well as the operators and what license the parties must have. He stated that in the circumstance of the City of Jacksonville Ordinance passed in 1954 there are still provisions that are applicable and easily enforced. He added that it would be prudent to update the ordinance to bring it more in line with current uses that are available. He stated that from his review it would not be a difficult matter to update, adding that he had found an ordinance that would provide enough regulations for 5 the parties to understand what is expected of them and provides enough information for Code Enforcement Officers to handle violations. He offered to draft an ordinance with provisions from the City Council, adding that there should be a public meeting or a period for public comment regarding the rate structure as imposed by State Law. He related that notices would be sent to those businesses that would be affected by the rate structure regulations. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 15, 2003 7:00 P.M. – 7:36 P.M. He stated that as to the immediate problems regarding unsatisfactory service, his understanding is that complaints have been discussed with the Mayor. He offered that any further complaints should be brought to the attention of the companies detailing what corrections the City expects within a given time period. Alderman Ray stated that the ordinance needs to be updated and suggested that City Attorney Bamburg return with a draft ordinance for the Council to consider. It was the consensus of the City Council for City Attorney Bamburg to draft and return to Council an Ordinance update regarding Taxi-Service for the City of Jacksonville. In response to a question from Alderman Stroud, City Attorney Bamburg answered that the surrounding cities limit the number of services available to their cities. He went on to say that Sherwood in particular does not have any applicable regulations, adding that North Little Rock, Little Rock, Conway and Hot Springs do limit the number allowed to operate based on the need of the Community. INSURANCE RATE INCREASE Mayor Swaim noted that the information provided to each workstation involves an insurance rate increase that is based on the health insurance evaluation conducted bi-annually through the health insurance carrier. He stated that the increase is effective as of June 2003, adding that it is not a budgeted item and will need to be addressed. He went on to say that if the City absorbs the increase it would be $48,480.00 for the remainder of 2003. He stated that the completed analysis determined that the increase is due to claim reports regarding premiums of $876,000 and losses totaling 1.2 million, representing a 146% increase in premium usage. He stated that the City is using 46% more than is being paid in premiums, adding that it would not be possible to shop coverage with another company because of those statistics. He related that the City received the increase notification today. He asked that Council review the information and prepared to address the issue in the coming months. Alderman Ray noted that a “health and wellness” program could be beneficial to hold claims down. He added that maintenance drugs should be considered for a “mail-off” prescription basis, adding that it is 6 generally less expensive to purchase prescription drugs on a three-month basis compared to monthly, along with encouraging generic drugs. He offered that employees be encouraged to maintain their physical health. Mayor Swaim agreed, pointing out that the Community Center is now being offered to City employees at no cost to encourage fitness. He related that Parks Director George Biggs maintains a record of those employees using the facility on a monthly basis. He added that after an intensive study the Fire Department is implementing a wellness program, adding that the Police Department is following suit. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 15, 2003 7:00 P.M. – 7:36 P.M. He stated that the City has asked for breakdowns regarding usage from Municipal League regarding larger claims, adding however, that under the HIPAA (Health Insurance Portability and Accountability Act of 1996) rules it is difficult to obtain information regarding employee’s health. He stated that he is not aware of any major illness being filed on the insurance. He then pointed out that as far as encouraging employees to exercise, he is not sure how far the City can go toward asking employees to exercise to raise their health. He stated that wellness programs have been implemented and it was hoped that insurance rates would improve the first six months of 2003, but instead have obviously gone in the other direction. He reminded the City Council that the evaluation and rates reflect the inclusion of the Water and Wastewater Departments. He noted that efforts with those Departments are being coordinated. He stated that he hoped to have additional information available at the next Regularly Scheduled City Council meeting. Alderman Stroud commended Mayor Swaim and Finance Director Mushrush regarding the management of City finances. He then stated that he would like to know exactly where the City is financially, mentioning that the media reported that after raising taxes general revenues are up. He questioned how the City tax and County tax is performing. Mayor Swaim stated that the monthly taxes are annualized, adding that City Sales Tax has been down for the last two months and noted that Christmas shopping was down approximately two million dollars. Finance Director Mushrush related that the County Tax is down approximately 2.37% compared to last year’s revenue collected at the same time. He added that the percentage is adjusted for the escrow portion of the Use Tax for analysis purposes. Mayor Swaim stated that if the City did not have to escrow funds for the lawsuit filed against Pulaski County Sales Tax, the County Tax would be good. He added that the City has had some up months, but pointed out that a $48,000 expenditure skews the budget for the following year. Finance Director Mushrush reminded the Council that the majority of revenues for the General Fund is between 60 to 72% Sales Tax based. 7 Alderman Smith related that new businesses planning to move to Jacksonville should help increase revenues. Mayor Swaim stated that the realistic picture is that things are very tight; adding that unless there is a swing in the national economy, the funding forecast will not change significantly. He stated that Jacksonville is doing well compared to other cities in the State of the same size. He related that it is a difficult situation and that without a new revenue source by the first of next year the City may have to consider changes in operations. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 15, 2003 7:00 P.M. – 7:36 P.M. Finance Director Mushrush related that the Finance Department is working hard on any revenue source that they have any level of control over, such as privilege tax; coordinating with the Engineering Department to ensure that Code section 5.04 is thoroughly enforced. Mayor Swaim related that the list of businesses are being reviewed to make sure that everyone is paying the proper privilege tax. He stated that in many cases it requires extensive research to determine the number of employees and the position of the company. He pointed out that it would not bring in significant revenues, adding that there will need to be a large influx of funds to continue current operations. He related that with interest rates down, City funds in interest bearing accounts have suffered. He stated that interest income is budgeted regarding reserve funds for projects, adding that interest income projections were not significant. He reminded Council of the difficulties and asked that they prepared to consider options if there are no changes in the economy. He noted that the new businesses would increase the Sales Tax revenue for next year. APPOINTMENT(S): ANNOUNCEMENT(S): He announced that Alderman Wilson is in Washington, D.C. working on legislative issues. Other comments were offered regarding the Business Expo and it was the consensus of everyone that the event was a success and much enjoyed by everyone. ADJOURNMENT: Mayor Swaim without objection adjourned the meeting at approximately 7:36 p.m. Respectfully, 8 ________________________ _________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer 9