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04 NOV 18.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 18, 2004 7:00 P.M. – 7:29 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 18, 2004 at the regular meeting place of the Council. Alderman Stroud 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, Rinker, Fletcher, Stroud, Twitty and Howard answered roll call. Mayor Swaim also answered ROLL CALL declaring a quorum. PRESENT nine (9), ABSENT (1). Alderman Ray was absent. Others present for the meeting were: City Attorney Robert Bamburg, Deputy Clerk Tawnya Johnson, Finance Director Paul Mushrush, Finance Manager Cheryl Erkel, City Engineer Jay Whisker, Public Works Director Jimmy Oakley, Parks and Recreation Director George Biggs, Fire Chief John Vanderhoof, Police Captain J.J. Martin, Mrs. Judy Swaim, Mrs. Lendy Lewis, Mr. Larry Dupree, Mr. Larry Smith, Mr. David McClanahan interested citizens and members of the press. PRESENTATION OF MINUTES: Mayor Swaim presented the minutes of the regular City Council meeting of November 4, 2004 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 21 October 2004 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/ANIMAL CONTROL Alderman Elliott moved, seconded by Alderman Smith to approve the Regular Monthly Animal Control Report for October 2004. Said report reflects: ADOPTION/FINES: $571.50 CONTRIBUTIONS: $ 20.00 TOTAL: $591.50 REGULAR MONTHLY REPORT/POLICE DEPARTMENT Alderman Elliott moved, seconded by Alderman Smith to approve the Regular Monthly Report for October 2004. Said report reflects the Total Value of Reported Stolen Property $82,833. Total Value of Recovered Stolen Property $19,414 and Total Report Sales $416.00. REGULAR MONTHLY REPORT/FIRE DEPARTMENT Alderman Elliott moved, seconded by Alderman Smith to approve the Regular Monthly Report for October 2004 from the Jacksonville Fire Department, which reflects a fire loss of $355,900 and a savings total of $771,400. In response to a question posed by Alderman Sansing, Public Works Director 1 Jim Oakley explained that the Animal Shelter was broken into and log sheets and receipt books were stolen. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 18, 2004 7:00 P.M. – 7:37 P.M. Police Captain J. J. Martin then addressed a question from Alderman Lewis, stating that he feels most likely curfew violations have risen because of the continued warm weather. Mayor Swaim noted that the suspect in the case of the Animal Shelter break- in is believed to be someone who had a dog picked up by the Shelter and the person was trying to find out who had adopted the dog. ROLL CALL: Aldermen: Elliott, Smith, Lewis, Sansing, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: PARKS & RECREATION: STREET DEPARTMENT: Request to Accept Bid for the Reconstruction of South Road Mayor Swaim noted this bid is for the section of South Road that had been annexed into the City but was not up to City standards. He related previous efforts by the City to correct situations involving a large crown in the road as well as the close proximity of trees to the street. He explained that since that time the trees have been removed and the City has developed a plan to bring the street up to City standards. He noted that funds have been set aside to rehab this section of South Road. In response to a question posed by Alderman Stroud, City Engineer Whisker related that the rehab would be from Oak Street to Military Road including sidewalk, curb, and gutter. Alderman Elliott moved, seconded by Alderman Smith to approve the low bid from JCI Inc. in the amount of $417,184.00 with funds to be drawn from set aside funds in the Street Department budget. MOTION CARRIED. Mayor Swaim noted that the low bid is under the budgeted amount by approximately $75,000.00. SANITATION DEPARTMENT: PLANNING COMMISSION: GENERAL: a. Request to Accept Bids for the Memorial Fountain Mayor Swaim noted that planning began many years ago, adding that he has been asked to clarify the funding mechanism. He explained that funds were appropriated and approved in the budget process of 2001 through 2004 to fund construction of the Fountain and Pavilion. He stated that the 2 City Council is being asked to approve the expenditure of those appropriated funds and the expenditure of cash donations regarding the project. He related that $37,475.00 has been donated to the project and CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 18, 2004 7:00 P.M. – 7:37 P.M. that Arkansas Precast has donated an additional $47,000.00, totaling $77,475.00. He stated that cash donated is specifically for this project and cannot be expended otherwise. He added that the precast was donated in honor of Mr. Tom Cory, the founder of Arkansas Precast. He noted that the Company is very prosperous and has contracts nationwide, adding that Arkansas Precast was chosen to pour the Oklahoma capital dome, part of Razorback Stadium and the precast in the Clinton Library. He stated that Mr. Cory was a very civic minded resident and was the organizer that started the Jacksonville Commerce Corporation, a non-profit organization dedicated to promoting industrial development in Jacksonville. He stated that Mr. Cory helped raise thousands of dollars in donations through that organization, explaining that the business membership fee is $2,000.00 followed by an annual fee. He stated that the funds collected are used when the City is not able to expend funds from the General Fund regarding recruiting efforts. He then noted that Mr. Cory served as president of the organization from conception until his death, adding that the fountain would be named the Tom Cory Memorial Fountain in his honor. He presented an architectural conception of the fountain for viewing, saying that it is another step towards redevelopment of the downtown area. Alderman Elliott moved, seconded by Alderman Smith to approve the concrete and site work bid submitted by Lyle’s Construction in the amount of $66,322.00, the electrical and lighting bid submitted by Conrade Electric in the amount of $34,800.00, the pump vault & controls bid submitted by Instrument and Supply Company in the amount of $68,845.00 and the waterproofing bid submitted by Western Water Proofing Company in the amount of $8,300.00. MOTION CARRIED. b. Presentation of the Draft Budget for 2005 Mayor Swaim referred to the submission of the preliminary draft of the 2005 budget, asking that the City Council take the draft for review. He explained that the income and expenditure lack $649,000.00 in balancing. He then explained that part of the difference is assuming that the City pay 100% of the rate increase regarding health insurance, adding that health insurance increased by $130,000.00 this year. He related that the City paid in $978,000.00 in premiums and the insurance company paid out 1.27 million in cost. He noted that the rates are not raised unless the City goes over operating cost. He then related an additional $112,000.00 difference attributed to changes mandated in Amendment 1 passed two years ago. He explained the Amendment changed the court system from Municipal Court to District Court which regulated the Judge’s retirement into the APPERS retirement fund instead of the old retirement fund which the City is responsible for making up the difference. Finance Director Paul Mushrush related that the legislation has created 3 the District Judge’s retirement system, which incorporates the District Judge and the District Court Clerks into a single retirement system. He stated that the City was informed that it had a $520,919.92 unfunded actuarial liability. He added that the problem is two-fold, explaining that in the past the City has not had to make a retirement contribution CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 18, 2004 7:00 P.M. – 7:37 P.M. but now the contribution will be at the rate of 17.5%. He stated in addition, there is a 5% contribution for the Judge’s retirement for a total contribution of 22.5% annually. Mayor Swaim noted that the terminology “District Judge” applies to the entire system, not just the Jacksonville District Judge. He added that the entire system is under the same rules, but the numbers presented pertain to our specific District Judge. Mr. Mushrush stated that the unfunded actuarial liability is mandatory, adding that while the sum is large there are some assets reserved for that purpose that have never been used. He noted that the funds that come through the Courts for this purpose falls far short, adding that basically the unfunded portion is going to be approximately $350,000.00. He explained that under actuarial rules the City has 30 years to pay the unfunded portion, which constitutes approximately $30,000.00 annually. He related that the interest over that period of time is $493,918.00, so he has requested that Mayor Swaim allow a short term, 3 or 4 year funding, to avoid high interest. He noted the that Act 1252 provides $8,830.00 toward the Judge/Municipal Court Clerk retirement, adding that his calculations indicate the Judge’s required contribution from the City this year to be $12,200.00. He noted in the long run, that costs can only go up, saying that it would be prudent to save on the interest now. In response to a question posed by Alderman Fletcher, Mayor Swaim explained that when the legislation passed the law, the Supreme Court was charged with establishing the rules. He added that all cities with Municipal Judges are facing the same non-negotiable decisions. Mayor Swaim then noted that the amount includes a new pumper truck appropriated at $225,000.00. He related that the City auditor has requested that the City increase the fund balance, explaining that the budget reflects $100,000.00 in the Contingency Fund. He related that insurance costs rose $50.00 per month for a family policy. He then asked that the City Council to review the budget. He stated that he and Mr. Mushrush would fine-tune the projected income, pointing out that if the Clinton Library is successful there should be a large increase in the January sales tax. APPOINTMENT(S): CENTRAL ARKANSAS LIBRARY BOARD Alderman Howard moved, seconded by Alderman Stroud to approve the appointment of Mark Wilson to the Central Arkansas Library Board for a term to expire 12/31/07. MOTION CARRIED. 4 LITTER Alderman Stroud noted that Jacksonville has an opportunity to join the Arkansas Beautiful Commission, adding that he feels Jacksonville should take advantage of the opportunity. He explained that the program consists of citizens chosen to be trained through the State. He related the need to educate the public regarding the program. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING NOVEMBER 18, 2004 7:00 P.M. – 7:37 P.M. Mayor Swaim noted that Jacksonville is already a member of the Arkansas Beautiful Commission and because of that membership; Jacksonville now has the opportunity at a limited cost to become a member of the Keep America Beautiful Campaign. He related that Public Works Director Jim Oakley is the acting representative for Jacksonville on the Arkansas Beautiful Commission, explaining that the County has paid the up-front fees and is offering Jacksonville the opportunity to join at a reduced cost. He stated that the program places the projects in the Community’s purview, adding that he feels it is a good project. He stated representatives on the Campaign offered to come to Jacksonville and meet with the various civic groups to encourage involvement and volunteerism regarding the projects. Alderman Fletcher moved to place consideration of joining the Keep America Beautiful Campaign on the agenda. After further discussion, it was the consensus of the City Council to include the item of expenditure in the 2005 Budget. Alderman Fletcher withdrew his motion. ANNOUNCEMENT(S): ADJOURNMENT: Mayor Swaim, without objection adjourned the meeting at approximately 7:29 p.m. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer 5