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07 AUG 02.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 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 2, 2007 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, McCleary, 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 Nikki Wilmoth, Finance Director Paul Mushrush, Director of Administration Jay Whisker, Public Works Director Jim Oakley, Human Resource Director Jill Fourqurean, Parks and Recreation Director George Biggs, Parks and Recreation Marketing Director Annabelle Davis, CDBG Director Theresa Watson, Fire Chief John Vanderhoof, Police Chief Robert Baker, Mrs. Judy Swaim, Mrs. Edith Smith, Mrs. Joan Zumwalt, Mrs. Addie Gibson, 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 19, 2007 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 5 July 2007 be APPROVED. MOTION CARRIED. CONSENT AGENDA: WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: POLICE DEPARTMENT: Edward Byrne Memorial Justice Assistance Grant Award Police Chief Robert Baker informed the City Council that the Police Department again received award of the Edward Byrne Memorial Justice Assistance Grant. He related that the Grant was in the amount of $28,622.00, explaining that the Grant does not require a 10% match as it has in the past. He stated that the Grant would be utilized for equipment purchases. He noted that approximately 40% would be used in the school D.A.R.E. program with the remainder being used for enhancements in the C.I.D. Section. In response to a request from Mayor Swaim, Chief Baker explained that the P.A.C.K. program was initiated and developed by the Police Department in 1994 to bring Police and kids together. He stated that the program offers kids a place to go in the summer. He related that the program started at the Community Center with approximately 35 kids and has now 1 been moved to the Boys and Girls Club with almost 200 kids that CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 P.M. are affiliated with the program. He stated that it has been a very positive program. He related that this year an enhancement to include the daycare centers has been added to the program. Mayor Swaim noted that many of the participants are “at risk” youth. Chief Baker added that there has been a lot of positive feed back from the kids who have benefited from the program. In response to a question posed by Alderman Rinker, Chief Baker related that the program is offered in all of the Jacksonville schools including the Arnold Drive and Tolleson Elementary Schools. STREET DEPARTMENT: SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: a. ORDINANCE 1318 (#17-07) AN ORDINANCE CREATING JACKSONVILLE MUNICIPAL CODE § 3.06.015 ESTABLISHING A PREPARED FOODS TAX UPON GROSS REVENUES OF CAFES, CAFETERIAS, CARRY-OUT RESTAURANTS, CATERERS, CONCESSION STANDS, CONVENIENCE STORES, GROCERY STORES/FOOD COUNTERS, DRIVE-THRU RESTAURANTS, FAST FOOD RESTAURANTS, DINE- IN RESTAURANTS, AND OTHER SUCH SIMILAR BUSINESSES WHICH PREPARE FOODS AND BEVERAGES FOR ON OR OFF PREMISES CONSUMPTION LOCATED WITHIN JACKSONVILLE; AMENDING JACKSONVILLE MUNICIPAL CODE §§ 3.06.020 AND 3.06.030; CREATING JACKSONVILLE MUNICIPAL CODE §§ 3.06.032, 3.06.034, 3.06.036, 3.06.038, 3.06.042, 3.06.044, AND 3.06.046; PRESCRIBING OTHER MATTERS RELATING THERETO; AND, FOR OTHER PURPOSES. Alderman Smith related that the A&P Commission has hosted several public hearings over the past several months. He stated that he would vote reluctantly for the tax, noting that it is needed for the City of Jacksonville. He related that many cities have the tax, adding that the Ordinance may have some amendments. Alderman Smith moved, seconded by Alderman Ray that Ordinance 1318 be placed on FIRST READING. Alderman Fletcher stated that originally he was against the tax and had requested a public hearing with the A&P Commission. He related that after hearing both sides not only him but two proponents out of three who were against the tax have changed their position. He stated that his greater problem with the tax is the proposed spending of funds, adding that he feels those issues should be discussed before the tax is adopted. He stated that for the first one or two years he feels the bulk of the money would be better spent enhancing those things that Jacksonville 2 feels it could promote. He cited landscaping for Main Street as well as problems with the lights at Excell Park as being needed items of attention. He stated that a priority list needs to be established, CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 P.M. saying that the current list seems more like a wish list. He stated that he along with several other Aldermen have requested that a long-range plan be formulated before final passage of the Ordinance. Alderman Elliott stated that section two of the Ordinance, “renovation, and/or repair of the City’s general operations and capital improvements” needs to be clarified that it is not the City’s general operations and capital improvements, adding that it is referring to the Parks and Recreation. He suggested that if the wording of general operations was clarified to say that the total amount of the tax levied equal to a specified percentage collected on hotels and restaurants shall be used by the A&P Commission at the direction of the Mayor and upon the approval of the City Council for the construction, equipping, improvement, maintenance, operation, reconstruction and repair of Jacksonville Parks and Recreation facilities. He added that this would probably answer some of Alderman Fletcher’s concerns regarding direction as to how the tax would be handled. In response to a question posed by Mayor Swaim, Alderman Elliott proposed that the amount of 50% be dedicated to Parks and Recreation, citing that he has heard many citizens suggest 40% to 50% as the recommended percentage. Alderman Sansing concurred with Alderman Fletcher that he feels a large percentage should go to Parks & Recreation, adding that he also feels that some should be used for the general beautification of the City. He stated that while he is not against the tax, he does believe that the citizens should have a right to vote on the tax. He stated that he does agree with 50% being offered to Parks & Recreation. Discussion ensued and City Attorney Bamburg clarified that A&P monies could not be used for general operations or beautification. He clarified that the Statutes do allow it to be used for Parks & Recreation facilities or tourism facilities. He then explained that the difference between alternative A and B is that alternative A provides a directive to the A&P Commission regarding the percentage, as well as what the monies could be spent for, and does allow for repayment of future bonds purchased for the construction of some type of tourism facility. He stated that alternative B would not allow for the option of bond monies, and directs that these funds be approved by the Mayor and City Council through the annual City budget process. Alderman Sansing confirmed that a bond issue could be addressed at a later time. 3 Mayor Swaim noted that the funds could be used to construct a convention center, adding that it could also be used for beautification if it were an issue dealing with tourism promotion. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 P.M. It was clarified that while the A&P Commission would control collected funds, those monies would be approved by percentage through City Council approval of the annual budget. It was also clarified that a 501(c)(3) has non-profit exempt status and that tax permits would be handled through the A&P Commission. City Attorney Bamburg clarified that if enacted the tax permits created through this tax would be much greater than is currently collected from the Hotel/Motel tax, which is the reason for further provisions. He explained that other municipalities who adopted prepared food tax have the permit circumstances in place to help with the administrative and logistics regarding the tax. In response to a question posed by Alderman Sansing, City Attorney Bamburg clarified that section six under State law allows in the collection process of pursuing amounts owed under the A&P taxes, for the Commission to enact a process in which to examine, investigate or audit businesses. It was further clarified that the issuance of a certificate of indebtedness from the A&P Commission is similar in effect to the action taken annually by the City Council when liens are issued for outstanding indebtedness to the City of Jacksonville. City Attorney Bamburg stated that the only difference would be that the A&P Commission would be acting on behalf of the City regarding those collections. Alderman Sansing presented clarifications for general knowledge that the tax would apply to any foods that are prepared in any way on site, including items that could be purchased in a grocery store, deli, or bakery. In response to a question posed by Alderman Stroud, City Attorney Bamburg clarified that the penalty for unpaid taxes is classified as a misdemeanor, which can be cited into Jacksonville District Court. Alderman Stroud stated that given the nature of the misdeed he would prefer the penalty be classified as a felony. City Attorney Bamburg clarified that while some cities do make it a felony, the Jacksonville court does not have jurisdiction over felonies. He explained that if classified as a felony the matter would have to go to circuit court. Mayor Swaim stated that while collection is sometimes not an easy matter, he would not like to have a Jacksonville business have a felony charge 4 against them for a small unpaid tax bill, if that were the case. Alderman Stroud stated that he was thinking generally of larger sums of money. City Attorney Bamburg further clarified that the Statute that enacts and allows the Commission to act does not authorize them to pursue on a felony level. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 P.M. Alderman Fletcher issued concerns for the small business owner regarding State and Federal mandates involving taxes, saying that he does not want to see that happen on a local level. He stated that the City needs to be extra sensitive to the small restaurant entrepreneur. He stated that he would be against any penalty being a felony. It was clarified that if an audit is ordered by the A&P Commission it would be conducted by an outside professional auditor and that the judgment of indebtedness could remain in effect for collection for 10 years. City Attorney Bamburg added that discretion is built into the Ordinance regarding the A&P Commission and the tax permit as issued to the business owner. Mayor Swaim noted that any difficulties in collecting the Hotel/Motel tax have been handled through the A&P Commission without incident. Mayor Swaim recognized Ms. Murlean Magee to speak in opposition to the prepared foods tax. Ms. Magee stated that she did not understand why the citizens were not given an opportunity to vote as was the case with the Library tax. She stated that she was unaware of the importance of this matter until a few weeks ago. She questioned if the high school concession stands would be included in the tax collection. City Attorney Bamburg clarified that if they held a non-profit classification such as a 501(c)(3) they would be exempt otherwise they would be included. She stated her appreciation to the City Council for not making the nonpayment of taxes a felony, noting that it is sometimes difficult for small businesses. She stated that she knows the tax is needed in Jacksonville but did wonder why the citizens were not given an opportunity to vote on the issue. Mayor Swaim explained that the question to vote is decided by the City Council, further explaining that the issue has been before the A&P Commission for almost nine months and has been in the newspaper several times during that period. He related that there has been extensive 5 effort to have public input on this issue. Alderman Sansing clarified that while he would prefer that the citizens be given an opportunity to vote on tax issues, he is aware that State law allows the City Council to pass this issue without a general vote from the citizens. He added that it is his understanding that a majority of the City Council has chosen to handle the issue of the tax in this manner. Alderman Smith noted that many cities have the tax and it was enacted by their City Council rather than a general vote to the public. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 P.M. Discussion returned to the need to have “concrete” formulas in place for how the money would be distributed before asking for a public or City Council vote. Alderman Smith pointed that out to be part of the reasoning the matter is being brought before the City Council to consider amendments or adjustments. Mr. Charles Sigismund questioned what the City of Jacksonville has to advertise. He stated that recently when the Community Center held an event there was not enough places to park. Mayor Swaim stated that there is a gravel area for overflow parking that patrons do not utilize. He went on to say that the City has plans to asphalt the overflow parking area in an effort to encourage patrons to use the area. Mr. Sigismund then stated that because of freeway difficulty more diners are eating at Chili’s in Jacksonville rather than going to North Little Rock, adding that if it were easier to get alcohol permits that would only increase. He suggested that the tax have a 5-year sunset clause, which could be renewed if the tax is successful. He stated that he could not say he is for or against the tax, but can present questions for both sides. Mr. Walt Jones stated that he does not generally vote in favor of taxes, but did vote for the Library tax. He stated that he was dismayed to find out that the Library had to be scaled back because the bids came in too high. He then questioned if enough money had been collected to earn interest regarding the Library tax. Mayor Swaim assured Mr. Jones that the City is collecting interest, explaining that questions regarding the Library bid is the next item on the agenda and will be answered. He then stated that all cities that border Jacksonville have already enacted the same tax. With no one else from the audience requesting to speak, Mayor Swaim stated that the question before the City Council is Ordinance 1318 un- 6 amended. He asked if the City Council wanted to amend before the vote. Alderman Smith noted that there was interest in amending the Ordinance in favor of alternative B, including the 50% to be designated to Parks & Recreation. He cited reasons that advertising and promotion was proposed to be higher, noting that a logo would have to be developed and approved by various entities, saying that not all designated monies were proposed to go to an advertising agency. Alderman Smith moved to incorporate alternative B into Ordinance 1318 as an amendment. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 P.M. Discussion ensued regarding City Council input into where the monies are to be spent and the need to have visible and tangible evidence of how the monies are being applied regarding improvements for tourism. Alderman Ray called for a question to the motion. Mayor Swaim acknowledged the call for question, noting that there is no second to the motion. Alderman Ray seconded the motion to incorporate alternative B into Ordinance 1318. Mayor Swaim then clarified that monies collected for Parks & Recreation would not go to the Parks & Recreation Commission but would go to the General Fund and would be designated for use in Parks, noting this would allow the City Council the opportunity to decide how monies are spent. Alderman Stroud pointed out that if in two years the City Council deems the tax is not fulfilling its purpose it could be cancelled. He then noted that the A&P Commission is very diligent with its duty regarding the appropriation of funds. It was clarified and concurred that the monies could be used to address issues at the ballfields regarding bleachers and concession stands. MOTION CARRIED regarding the call for question to the motion. ROLL CALL regarding amendment of alternative B to Ordinance 1318: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. NAY (0). MOTION CARRIED. ROLL CALL to place Ordinance 1318 as amended on First Reading: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1318. 7 Alderman Stroud moved, seconded by Alderman Ray that Ordinance 1318 be APPROVED on FIRST READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. Alderman Sansing voted NAY (1). MOTION CARRIED. Alderman Stroud moved, seconded by Alderman Smith to suspend the rules and place Ordinance 1318 on SECOND READING. ROLL CALL: Alderman Elliott, Smith, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. Alderman McCleary and Sansing voted NAY (2). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1318. Alderman Stroud moved, seconded by Alderman Sansing to further suspend the rules and place Ordinance 1318 on THIRD and FINAL READING. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 P.M. Alderman Sansing stated that while he believes the tax would probably be beneficial to the citizens of Jacksonville, he is concerned for the possible burden it may place on citizens that eat at fast food restaurants. He asked that everyone understand that his no vote on the Ordinance represents his belief that citizens should be allowed to vote on tax issues. ROLL CALL: Alderman Elliott, Smith, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. Alderman McCleary and Sansing voted NAY (2). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1318. Alderman Stroud moved, seconded by Alderman Elliott that Ordinance 1318 be APPROVED AND ADOPTED. ROLL CALL: Alderman Elliott, Smith, Ray, Rinker, Fletcher, Stroud, Twitty and Howard voted AYE. Alderman McCleary and Sansing voted NAY (2). MOTION CARRIED. nd ORDINANCE APPROVED, ADOPTED AND NUMBER 1318 THIS 2 DAY OF AUGUST 2007. Alderman Smith informed the audience that the A&P Commission meets the third Monday of every month at 6:30 p.m. He stated that he is Chairman of the Commission, adding that Alderman Stroud and Mayor Swaim serve on the Commission, saying that matters before the Commission will always be handled in a prudent manner. Alderman Elliott thanked the A&P Commission for their diligence and hard work. He commended the Parks & Recreation Department, saying that they do an excellent job and this will offer them an opportunity to improve and expand areas of infrastructure. Alderman McCleary stated that his “no” vote on the Ordinance was not meant to slight the A&P Commission and their efforts, saying that he felt the tax would be good for the City, but he does have concerns for further taxes. 8 Mayor Swaim stated that collections would not begin until October, explaining that it would be the following October before whatever annual funds there is are collected, explaining that there would not be any immediate seen progress until monies are distributed. b. Request to accept bid for Library construction Mayor Swaim offered a brief background, reviewing that the citizens of Jacksonville did vote for a 2.5 million dollar tax for the Library. He then explained that the accepted design concept was more than what 2.5 million dollars could buy, adding that the City was fortunate to get approximately $900,000 in donations to purchase the land. He stated that the 2.5 million plus interest was reserved to pay for the construction of the building, adding that the low bid came in at $3,765,000. He stated that to his knowledge within the City, he has never seen a project come CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 P.M. in at the money allotted. He stated that an extensive amount of time was spent during the process trying to ensure that the citizens got what they requested. He stated that his proposal would be that the building the citizens expect be built, providing the same footprint, park atmosphere, and pavilion as expected. He stated that Mr. Roberts and the Central Arkansas Library Board have been generous enough to help by providing $300,000 for the project. He then stated that his proposal would be to accept the low bid of $3,765,000 and use the future income off the sales tax to fund the difference. He explained that the money for the Education Facility has been collected and efforts will continue to work with the Congressional Delegation to obtain the Federal share for that project. He then explained that presently funds are being collected to fund the Police and Fire Training Academy, explaining that as those funds are collected in the next 12 months the City would be able to collect the difference of $400,000 from the sales tax. He noted that all the money is not needed upfront but will be needed toward the project’s end. He proposed the City obligate $400,000 from the City sales tax that was passed to fund the pool, educational facility and the Police and Fire Training Academy. Alderman Elliott moved, seconded by Alderman Howard to accept the low bid of $3,765,000 from Wilkins Construction with $400,000 to be appropriated from future City sales tax collections to cover the difference. Mayor Swaim noted that the bids ranged from 5 million to a low bid of $3,765,000 dollars. He related that Mr. Roberts has spoken with the architect and feels the contractor is competent to perform the job. At this time, MOTION CARRIED. c. Request to accept bid for CDBG sidewalks & handicap ramps Mayor Swaim noted that the bid is to address sidewalks and handicap ramps 9 in the Sunnyside Addition. Alderman Fletcher moved, seconded by Alderman Ray to approve the low bid of $57,758.00 from T.I.M. Construction. Mayor Swaim noted that five of the bids were rejected because the bidders did not comply with bid specifications. Alderman Elliott stated that part of the problem for the contractor is getting costs from their subcontractors. Alderman Sansing noted that while they submitted their bids, they did not complete the paperwork. Public Works Director Jim Oakley stated that the Terms of Agreement paperwork was not signed, adding that he is not sure of the reason. At this time, MOTION CARRIED. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 2, 2007 7:00 P.M. – 8:13 P.M. APPOINTMENT(S): ANNOUNCEMENT(S): Mayor Swaim announced that the Military Museum passed their certification with the Military and has obtained the necessary status to obtain an C-130 airplane for display. Alderman Stroud stated that in researching circumstances regarding yard mowing by the City he feels that an administrative charge needs to be assessed, noting that a $20.00 charge is not enough of a deterrent for residents to keep their property cleaned and mowed. Mayor Swaim stated that if the City Council is in agreement a $35.00 administrative fee can be attached to the maintenance charge. Alderman Howard asked that Aldermen review their wards and report code violations to Code Enforcement, acknowledging that currently Code Enforcement is short one employee and would appreciate the help. Parks & Recreation Director George Biggs stated that the Parks & Recreation Commission would host their annual planning session September th 11 at Foxwood Country Club at 7:00 p.m. He encouraged City Council members to attend. ADJOURNMENT: Without objection, Mayor Swaim adjourned the meeting at approximately 8:13 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR TOMMY SWAIM 10 City Clerk-Treasurer 11