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05 AUG 04.docCITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 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 August 4, 2005 at the regular meeting place of the Council. Alderman Lewis 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, Rinker, Fletcher, Stroud, Twitty, and Howard answered roll call. Mayor Swaim also answered ROLL CALL declaring a quorum. PRESENT ten (10), ABSENT (0). Others present for the meeting were: City Attorney Robert Bamburg, Acting Deputy Clerk Shari Boles, Human Resource Director Charlie Brown, Finance Director Paul Mushrush, City Engineer Jay Whisker, Public Works Director Jim Oakley, Fire Chief John Vanderhoof, Police Chief Robert Baker, Parks and Recreation Director George Biggs, Mrs. Judy Swaim, Mrs. Lendy Lewis, Mrs. Edith Smith, Mrs. Helen Stroud, Mrs. Karin Mushrush, Mr. George Reed, Mr. Larry Dupree, 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 July 21, 2005 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 7 July 2005 be APPROVED. MOTION CARRIED. CONSENT AGENDA: WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: a. ORDINANCE 1257 (#19-05) AN ORDINANCE CONDEMNING STRUCTURES AND REAL PROPERTY AT VARIOUS UNINHABITED LOCATIONS LISTED BELOW IN JACKSONVILLE, ARKANSAS, FOR STRUCTURAL DEFECTS, DEFICIENCIES, AND PUBLIC HAZARD CONDITIONS; AND, FOR OTHER PURPOSES. Mayor Swaim opened the public hearing at approx 7:03 p.m. and opened the floor for representatives or property owners to address individual properties. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 P.M. Mr. Alex Davidson addressed the property of 131 Jaxon Street. He informed the City Council of a recent Supreme Court case of Kalow vs. the City of New London, Connecticut. He explained that the City of New London, Connecticut established a redevelopment district and began taking property. He stated that the redevelopment authority purchased property but that some of the property owners were not willing to sell. Mayor Swaim explained that the New London case was a different matter, adding that the City of Jacksonville is not taking property for City or private use. Mr. Alex Davidson stated that he did not agree and continued explaining that the New London City Council condemned the property. He stated that the Supreme Court ruling said that the City of New London had the right to do so, adding that two things have to be in place before that happens, one there has to be an economic plan for the redevelopment area and there has to be just compensation to the property owners. He stated that as far as he is aware there is not an economic redevelopment plan in place for the Sunnyside Addition and Mayor Swaim concurred. Mr. Alex Davidson continued that also as far as he is aware the City of Jacksonville has not offered any just compensation for the condemnation of property. Mayor Swaim concurred that the City of Jacksonville has never offered compensation for structural condemnation. Mr. Alex Davidson stated that the City will find itself highly actionable, adding that that he is married to an attorney. Mayor Swaim stated that the action of the City is different from the situation described by Mr. Davidson. He then deferred to City Attorney Bamburg for legal clarification. City Attorney Bamburg stated that the case mentioned by Mr. Davidson has no relevance to the current condemnation situation. He continued that there is a huge difference between a “taking” such as with the New London case and a condemnation. He stated that the present action is a structural condemnation because of the hazardous conditions that exist on the property, which is vastly different. Mr. Alex Davidson stated that occasionally he reads the publication “Law Week”, which addressed condemnations for any use, not just economic redevelopment or blight. Mayor Swaim stated the City of Jacksonville has prevailed in court and that Arkansas State Statutes allows municipalities condemnation provisions. Alderman Fletcher stated that if the City did not condemn the houses they could be used by drug dealers, adding that the area has a good number of elderly residents and the property needs to be cleaned up. He stated CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 P.M. that the City does not take joy in having to condemn properties. He stated that living next door to these properties would not be a desirable circumstance, asking Mr. Davidson how he would feel living next door. Mr. Davidson stated that he actually lives in downtown Little Rock, which he feels is far worse than the Sunnyside Addition. He stated that he would like to see the City come up with a redevelopment action plan. Mayor Swaim stated that in the last five years the City has made a very strong effort in the Sunnyside Addition, noting a pilot program that was the first of its kind in the State, where the City builds homes for resale. He added that another property from that program was sold very recently. He stated that some of the properties came from condemnations, where the property owners had donated the lot to the City. He stated that there were probably three new homes constructed and several rehabilitations regarding the program. Mr. Alex Davidson stated that he did not know what the answer for the neighborhood is and that no one present can tell him what the answer is, adding that if the City can come up with a good plan for the area he would be happy to support it. Alderman Ray asked Mr. Davidson what he would like to do with his property, Mr. Davidson stated that he could spend $5,000.00 tomorrow on the properties and in six months, it would be back in the same shape. He stated that he has even had a front door stolen from one of the properties, adding that he is not blaming the Police Department or trying to say that they do not patrol the neighborhood. Alderman Ray stated that if the City can refurbish properties in the area, Mr. Davidson could refurbish his own properties and that if Mr. Davidson had fixed his houses he would not be in City Council tonight. Mr. Alex Davidson stated that he “cannot make any money out of it and he can not justify it.” He then complained that he still gets letters to mow the grass on properties that have already had the houses bulldozed by the City, adding that it is not as if he is walking away and washing his hands of the situation, adding that he is over there three or four times a week. Alderman Twitty reiterated the question to Mr. Davidson regarding any plans for his property, asking him if he just wanted to see the houses rot and fall to the ground. Mr. Davidson stated that he could not see any smart thing regarding the property right now. Alderman Twitty clarified, so you would rather just let the properties sit until the houses rot and fall down. Mr. Davidson replied “probably, yeah.” CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 P.M. Alderman Stroud added that such action would not be fair to the other residents of the neighborhood. Mr. Glen Davidson approached the microphone to address the City Council and Mayor Swaim deviated in the list to allow Mr. Glen Davidson to address the next property owned by the Davidsons at 193 Roosevelt Avenue. Mr. Glen Davidson stated that he would like to ask a question of each of the members of the Council, asking “how many have read the Constitution of the United States and actually understood what it meant.” He stated that the Fifth Amendment has two qualities to taking property, one is just compensation. He related that they have never received just compensation for these properties. He posed the question, what about the just compensation for the taking of real property illegally, and asking when he would receive just compensation for the taking of that real property. Mayor Swaim explained that just compensation only applies to a true “taking”, while what is before the City Council is a condemnation. He stated that there is a big difference between a taking and a condemnation. Mr. Glen Davidson requested that the City of Jacksonville through the laws of Eminent Domain provide them with a court hearing with an unbiased court and a jury. He stated that he had never received due process of law and that his Fifth and Fourteenth Amendment rights have been violated. He stated that he wants due process of law, and to go to court and have a jury of peers to hear the case. He reiterated that he wants to go to court. Mayor Swaim reminded Mr. Davidson that the City has been to court with him in the past and that Mr. Davidson lost his case. Mr. Davidson disagreed with the findings of the court, and stated that for these three houses he would like a day in circuit court with a jury trial. Mayor Swaim explained that State Statute provides for the process being followed by the City and the City is not required to go to court. He stated that this public hearing is for that purpose. Mr. Glen Davidson argued that this is not a court of law. Mayor Swaim stated that the City does not have to go through a court of law for a structural condemnation. Mr. Glen Davidson stated that under Eminent Domain the City has to go through a court of law. He thanked the City Council and stated that he would see them in court. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 P.M. Mayor Swaim presented the property of 138 Pike Avenue, noting there was no one present to represent the property. He presented the property of 106 Roosevelt Road, noting there was no one present to represent the property. He then presented the property of 3509 South Ridge Drive, noting there was no one present to represent the property. He then noted that the house at 3509 South Ridge has been torn down but the debris has not been removed from the property. He stated that the property addressed 137 Joiner Avenue has been removed from the list because of substantial improvements to the structure located on the property. Alderman Fletcher stated that in speaking of rights, along comes responsibility. He stated that what a resident does affects his neighbors and in speaking about just compensation, he asked Mr. Davidson if he would be willing to pay his neighbors just compensation for their loss of property values by allowing these structures to stand and deteriorate. He stated that it is unfortunate for the entire community as blight on the City. Mr. Davidson stated that each one of his houses gets a notice from the City Inspector every three weeks that the grass has to be cut, he continued that he lives in Foxwood and that the house at the corner of Gray Fox and Madden Road has not cut their grass in 9 weeks. He stated that he would be willing to bet that the City has not sent a letter to the owner of that property to cut his grass. He stated that it is not fair or just. Mayor Swaim noted that in the report from the previous City Council meeting there were over 278 grass letters sent out, pointing out that Mr. Davidson is not the only resident to receive grass letters. Mr. Davidson stated that he has over 250 letters sent to his house. He stated again that the City Council is not a court of law, adding that he will conclude and see them in court. City Attorney Bamburg clarified for the City Council that there is a vast difference in a “taking” and a “condemnation” both in reality and in the law. He stated that in this circumstance the procedures followed by the City regarding the notice that had been given by the Code Enforcement Office, adding that these properties have had notice since March/April time frame. He stated that the City has complied with what State law provides and will continue to follow those procedures. Alderman Elliott stated that “taking of property” and “eminent domain” and condemnation for unsafe structural effect and public hazard are two different things, adding that what the City of Jacksonville is doing is no different from what the City of Little Rock does and has withstood court challenges many times. Mayor Swaim closed the public hearing at approximately 7:17 p.m. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 P.M. Alderman Ray moved, seconded by Alderman Stroud that Ordinance 1257 be placed on FIRST READING. ROLL CALL: Alderman Elliott, Smith, Lewis, Sansing, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read Ordinance 1257, pointing out the exclusion property addressed as 137 Joiner Street. Alderman Stroud moved, seconded by Alderman Ray that Ordinance 1257 be APPROVED on FIRST READING. ROLL CALL: Alderman Elliott, Smith, Lewis, Sansing, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Stroud moved, seconded by Alderman Smith to suspend the rules and place Ordinance 1257 on SECOND READING. ROLL CALL: Alderman Elliott, Smith, Lewis, Sansing, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1257, noting the exclusion of 137 Joiner Street. Alderman Smith moved, seconded by Alderman Howard to further suspend the rules and place Ordinance 1257 on THIRD and FINAL READING. ROLL CALL: Alderman Elliott, Smith, Lewis, Sansing, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1257, noting the exclusion of 137 Joiner Street. Alderman Sansing moved, seconded by Alderman Ray that Ordinance 1257 be APPROVED AND ADOPTED. ROLL CALL: Alderman Elliott, Smith, Lewis, Sansing, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. NAY (0). MOTION CARRIED. ORDINANCE APPROVED, ADOPTED AND NUMBER 1257 THIS 4th DAY OF AUGUST 2005. Mayor Swaim noted that the ordinance carries a 30-day waiting period followed by the properties going to bid for demolition of the structures. He noted the cost to be approximately $6,000.00 per house. He stated that he wanted it noted that the process takes a long time and that several residents have made the effort to improve their property and as a result have been removed from the list. He noted that the City budgets a certain amount annually to addressed condemnations, adding that the City of Little Rock has projected over $200,000.00 for their condemnations. b. PRESENTATION of the 2004 Annual Audit and CAFR Mr. Gerald Clark of McAllister and Associates credited Finance Director Paul Mushrush and his staff for the presentation of the CAFR. He stated that on behalf of McAllister and Associates he would like to express their appreciation for the opportunity to perform the 2004 audit and the financial statements for the City. He added that he is pleased to present the 2004 Comprehensive Annual Financial Report better known as the CAFR. He stated that the CAFR is a thorough, detailed presentation CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 P.M. of the City’s financial position and activities for the fiscal year. He related that for seven consecutive years, Jacksonville has been awarded the prestigious “Certificate of Achievement for Excellence in Financial Reporting” by the Governments Finance Officers Association of the United States and Canada. He pointed out that the report for 2004 marks the 8th year for the City to publish a Comprehensive Annual Financial Report. He stated that as in 2003, the 2004 report was prepared under the provisions of Governmental Accounting Standards Board (GASB) Statement No. 34, - “Basic Financial Statements - and Management’s Discussion and Analysis for State and local governments.” He stated that features of the Report included Management Discussion, Analysis, and the government-wide financial statements, which focus on a long-term perspective similar to private sector financial reporting. He stated that the 2004 CAFR was audited by McAlister and Associates and the City received an unqualified opinion included on page eleven of the Report. He clarified that an unqualified opinion is the highest obtainable opinion. He explained that the CAFR is a valuable tool that enables City officials and investors to make financial decisions from sound and timely information, adding that this Report provides an independent accounting of the financial condition of the City. He highlighted aspects of the 2004 report, stating that as indicated by the CAFR, 2004 ended with City reserves in good fiscal health, adding that the City experienced an overall growth in governmental revenues fueled by a robust local economy, that at the end of 2004 seemed to be trending upward. He related that fund balances have been maintained in line with financial policies and adopted budgetary guidelines as a result of prudent fiscal management and cost containment controls Citywide. He stated that the significant financial highlights include the total operating revenues for 2004 of 19.1 million dollars compared to 14.3 million in 2003, an increase in approximately 34%. He stated that this increase is almost entirely attributable to increased County and City sales tax collections, including 3.3 million from the new one-cent City sales tax, which became effective January 1, 2004. He stated that for the fiscal 2004, sales tax revenues constituted 65% of City total revenues with State tax turnbacks and other intergovernmental revenues and grants contributing approximately 15%. He related that total operating and capital expenditures in 2004 were 16.7 million dollars, up 13% over 2003. He stated that the significant part of this increase was attributed to construction in progress of the City’s new water park, which amounted to 1.3 million dollars at that time. He noted that there was also a 2.6% increase in General Fund operating expenditures over 2003. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 P.M. He continued that the overall fund balance of the City’s operating and special revenue funds at the end of 2004 was 15.2 million, of that amount approximately 11 million dollars was reserved or had been designated by City Council for either future projects, contingencies, or for the year 2005 budget. He stated that the fund balance of the General Fund, which is the major operating fund of the City, increased approximately $750,000 during 2004, bringing the balance to just over 2 million dollars at the end of the year. He added that the unreserved portion of this balance represents approximately 15% of annual General Fund operating expenditures, up from 9% at the end of 2003. He stated that the 15% figure is a good healthy percentage for General Fund reserves. He stated that the auditors’ report provides a statement by them attesting to the fair presentation of the financial data in conformity with Generally Accepted Accounting Principles and Government Accounting Standards. He stated that there were no reportable conditions on internal control or material instances of noncompliance with laws and regulations relating to the audit of the financial statements. He stated that there were no audit findings or questioned costs relative to Federal grant award programs for 2004. He related that they have issued a formal management letter, included with the annual report, which is a customary and by-product of the audit process and is intended to provide management with suggestions and guidance in the ongoing effort to improve internal controls. He added that although the items noted in the letter do not involve material financial issues, the management has agreed that improved controls are warranted and has set about to implement the recommendations. He stated that the City’s financial policies are designed to promote sound financial management and ensure that the City’s fiscal integrity remains intact, adding that this Comprehensive Annual Financial Report reflects the implementation of these guidelines. He related that the effort put forth to produce a Comprehensive Annual Financial Report in full compliance with Governmental Accounting Standards should not go unrecognized. He offered special recognition to the City’s Finance Department for their outstanding accomplishment in completing the project. He extended a special thanks to each member of the Department by name for their contributions to the report. Mayor Swaim stated that he is proud to point out that the target percentage for the fund balance is 16%, which is currently at 15%. He stated that allows the City to have a healthy cash flow preventing any such time when the City would not be able to meet its cash flows. He stated that part of the aquatics park monies was due to the City being able to collect the Use Tax that the State had been holding, which allowed for completion of the park at an earlier date. In response to a question posed by Alderman Fletcher, Mr. Clark stated that the recommendations for the Courts were different from those presented the previous year and are mainly a matter of housekeeping issues. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 P.M. Mayor Swaim stated that efforts are already in place with the Courts to implement those recommendations. Mr. Clark added that with the upcoming bond issue, it is important to produce a good Comprehensive Annual Financial Report regarding investors and their considerations in bond issues. The City Council thanked Mr. Clark for his presentation. Alderman Smith moved, seconded by Alderman Elliott to accept the 2004 audit report and its findings. MOTION CARRIED. APPOINTMENT(S): HOSPITAL BOARD Alderman Elliott moved, seconded by Alderman Smith to approve the reappointment of Mrs. Pat Bond to the Hospital Board for a term to expire 6/30/2010. MOTION CARRIED. ANNOUNCEMENT(S): RESCHEDULE SEPTEMBER 1ST CITY COUNCIL MEETING Mayor Swaim explained that the current LRAFB Wing Commander, General Reheiser is leaving and is having a going away dinner which is in conflict with the September 1st City Council meeting. He asked that the City Council consider an earlier meeting time of 6:00 p.m. rather than 7:00 p.m. Alderman Elliott moved, seconded by Alderman Fletcher to move the meeting time of the September 1st City Council meeting to 6:00 p.m. MOTION CARRIED. CART PILOT PROGRAM Alderman Stroud stated that he was elated to see that most of the citizens’ survey was pleased with the program, regarding the 85% approval rating. He stated that although the money is not available at present he feels it should be a future consideration for implementation. Mayor Swaim informed the City Council that there are considerations to form a committee early next year to look at those possibilities and begin setting aside funds. He stated that the cart program would be expensive to implement, adding that with the projected growth the City might be able to have implementation in approximately one year or so for primarily new growth areas, starting in one section of town and slowly progressing through the rest of the City. He noted that there would be a huge capital outlay for containers and specific equipment, adding that the City will need some lead-time to work out those issues. Alderman Smith noted issues regarding considerations for the newly formed committee to address Animal Control ordinances, relating an incident regarding a dog bite in his neighborhood, which required the person going to the hospital for a tetanus shot. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 4, 2005 7:00 P.M. – 7:40 P.M. Alderman Fletcher concurred, relating complaints from citizens who have to alter their walking or jogging route to prevent coming into contact with known animals in certain areas. Mayor Swaim pointed out a recent case that involved a dog running at large who bit two citizens and was declared vicious by the Animal Control Department; he added that the owner has appealed the case to his office to prevent the dog from being declared vicious. Parks and Recreation Director George Biggs announced an employee pool party at the Splash Zone scheduled for August 13th, inviting members of the City Council to attend. ADJOURNMENT: Mayor Swaim without objection adjourned the meeting at approximately 7:40 p.m. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer