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07 MAR 01.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 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 March 1, 2007 at the regular meeting place of the Council. Mayor Swaim delivered the invocation and Alderman Ray led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard answered roll call. Mayor Swaim also answered ROLL CALL declaring a quorum. PRESENT eight (8), ABSENT (2). Aldermen Twitty and Stroud were absent. Others present for the meeting were: City Attorney Robert Bamburg, Deputy Clerk Linda Dulaney, Finance Director Paul Mushrush, Public Works Director Jim Oakley, Parks and Recreation Director George Biggs, Fire Chief John Vanderhoof, Police Chief Robert Baker, CDBG Director Teresa Watson, Mr. Tommy Bond, Mr. Joey Price, Mr. Brian Boroughs, Mr. B.J. Boroughs, Mrs. Addie Gibson, Mr. Larry Smith, Mr. Alfonso Nations, interested citizens and members of the press. PRESENTATION OF MINUTES: Mayor Swaim presented the minutes of the regular City Council meeting of February 15, 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 1 February 2007 be APPROVED. MOTION CARRIED. CONSENT AGENDA: WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: a. Request to accept bid for Rugged Tablet P.C.’s Alderman Ray moved, seconded by Alderman Sansing to accept the low bid from Group Mobile in the amount of $14,268.00 with funds to be drawn from budgeted funds. MOTION CARRIED. b. ORDINANCE 1305 (#4-07) AN ORDINANCE WAIVING COMPETITIVE BIDDING FOR THE PURCHASE OF COMPUTER SOFTWARE FOR USE BY THE CITY’S EMERGENCY SERVICES AND FINANCE DEPARTMENTS; DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. Finance Director Paul Mushrush related that the purchase is for the proprietary software that interfaces with the current billing software, adding that it is the only mechanism available to transfer information from the P.C. tablets to the accounting system. 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. Alderman Ray moved, seconded by Alderman Howard that Ordinance 1305 be placed on FIRST READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1305. Alderman Smith moved, seconded by Alderman Sansing that Ordinance 1305 be APPROVED on FIRST READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Ray moved, seconded by Alderman Sansing to suspend the rules and place Ordinance 1305 on SECOND READING. Finance Director Paul Mushrush related that the purchase is a module that is part of the billing software from Ortivus Software. He stated that this would be in addition to the modules that make up the billing software. He then related that it would be beneficial in speeding up the collection curve and increase the ability to collect more regarding the billed ambulance runs. He then answered that annually there had been a loss in collections of approximately $30,000 to $40,000. He then noted that the fund is an enterprise fund, explaining that it is not an expenditure but a capital asset. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1305. Alderman Howard moved, seconded by Alderman Elliott to further suspend the rules and place Ordinance 1305 on THIRD and FINAL READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1305. Alderman Fletcher moved, seconded by Alderman Sansing that Ordinance 1305 be APPROVED AND ADOPTED. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Ray moved, seconded by Alderman Sansing that the EMERGENCY CLAUSE be approved and adopted. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. st ORDINANCE APPROVED, ADOPTED AND NUMBER 1305 THIS 1 DAY OF MARCH 2007. POLICE DEPARTMENT: 2 STREET DEPARTMENT: Request to accept bid for sidewalks, handicap ramps/curb CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. Public Works Director Jim Oakley related that the project is budgeted from the 2007 Street Funds, explaining that the project consists of piece milling areas around Jacksonville Elementary, Jacksonville High School and other areas around Jacksonville. He then noted that there were eight bidders who returned bids. Mayor Swaim clarified that there would be larger sidewalk projects bid later. Public Works Director Jim Oakley noted that there would be a project from Dupree Park along the railroad track and up to the Community Center. In response to a question posed by Alderman Howard, Public Works Director Jim Oakley noted that JCI, Inc. has performed satisfactory work for the City previously. Alderman Elliott moved, seconded by Alderman Smith to accept the low bid from JCI, Inc. in the amount of $86,750.00 with funds to be drawn from the budgeted Street Funds. MOTION CARRIED. SANITATION DEPARTMENT: PLANNING COMMISSION: GENERAL: Public Hearing 7:15 p.m. a. ORDINANCE 1306 (#5-07) AN ORDINANCE ABANDONING A PUBLIC RIGHT-OF-WAY LOCATED IN THE WEST JACKSONVILLE SUBDIVISION, NO. 1, JACKSONVILLE, ARKANSAS \[GENERAL LOCATION: TWENTY FEET (20’) OF PROPERTY PERPENDICULAR TO MAIN AND WARREN STREETS\]; AND, FOR OTHER PURPOSES. Mayor Swaim noted that it was not time to start the public hearing and suggested moving ahead in the agenda. DEVIATION IN AGENDA: c. RESOLUTION 600 (#1-07) A RESOLUTION EXPRESSING SUPPORT FOR THE ONE TIME APPROPRIATION OF STATE CAPITAL IMPROVEMENT FUNDS FOR REPLACEMENT OF THE PULASKI REGIONAL DETENTION FACILITY ROOF; AND, FOR OTHER PURPOSES. Mayor Swaim related that the County Judge has asked cities to support a one-time appropriation to help alleviate some of the jail funding problems. He noted that this would allow them to do major roof repairs that would allow them to open a significant number of beds in the older part of the jail to relieve part of the jail over crowding. Alderman Elliott moved, seconded by Alderman Howard to read Resolution 3 600 (#1-07). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 600 (#1-07). CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. Alderman Sansing stated that the Resolution supports the State government bailing out what the citizens of the local government were unwilling to pass the tax to help cover the jail. He questioned if this were an example of “pork barrel local politics” that the recent Supreme Court ruling said that the State was not suppose to be involved in? Mayor Swaim stated that it is different in the sense that it is not coming from a legislator. He further clarified that in the lawsuit filed, the legislators were given a set amount of funds to appropriate at their discretion. He stated that this appropriation would require approval by the whole House and Senate. City Attorney Bamburg added that the Pulaski County Regional Jail Facility houses prisoners from a statewide basis. He explained that there are prisoners at the County that are supposed to be in ADC, or are classified as Arkansas Department of Correction prisoners but because of the State overcrowding they are backed up onto the County. He stated that because of such it would put into circumstance where State funds could legitimately and appropriately be used, on what some might consider to be a local project. Alderman Sansing questioned if any local municipality or state government that was housing state prisons could look to the state to take care of their facilities if this were a set precedent. Mayor Swaim answered that in his estimation that would be correct, adding that it could be done but has never been done before and it is not certain that it will be accomplished this time. He stated that the Governor has already stated that he did not see how he could support it, but the County would still like to try. He stated that the City is being asked to support the County’s efforts. Mayor Swaim then answered that the repairs are for the old jail, adding that it has deteriorated because of the lack of O&M funds. He stated that the County is having to close parts of the old jail, which lessens the number of prisoners that can be held. Alderman Fletcher stated that cities have no choice but to support the County but added his frustration because from the outside it appears the County has not done a good job of appropriating funds. He stated that somehow they need to be more accountable. Alderman Sansing stated that he disagrees that cities have no choice, saying that he feels the County is asking for support regarding poor decisions made in the past. He stated that if he supported the 4 Resolution he would be supporting some of those bad past decisions. Alderman Elliott stated that he feels he can support relief coming from State funds because if there were not the backup of State prisoners then the County would not be as significantly backed up. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. Alderman Fletcher moved, seconded by Alderman Ray to approve Resolution 600 (#1-07) in its entirety. ROLL CALL: Alderman Elliott, Smith, McCleary, Ray, Rinker, Fletcher, and Howard voted AYE. Alderman Sansing voted NAY. MOTION CARRIED. RESUME AGENDA: Public Hearing 7:15 p.m. a. ORDINANCE 1306 (#5-07) AN ORDINANCE ABANDONING A PUBLIC RIGHT-OF-WAY LOCATED IN THE WEST JACKSONVILLE SUBDIVISION, NO. 1, JACKSONVILLE, ARKANSAS \[GENERAL LOCATION: TWENTY FEET (20’) OF PROPERTY PERPENDICULAR TO MAIN AND WARREN STREETS\]; AND, FOR OTHER PURPOSES. Mayor Swaim opened the public hearing at approximately 7:16 p.m. Mayor Swaim explained that the alley existed on paper only but had it been opened, it would have run between the Texaco Station and the building directly east. He stated that it was never opened as an alley, adding that the City now owns all adjoining properties and the public hearing is set to hear any support or opposition to closing the alley. Mr. Tommy Bond stated that the alley is located down the middle of what is being proposed for the new Library. With no other comments, Mayor Swaim closed the public hearing at approximately 7:19 p.m. Alderman Smith moved, seconded by Alderman Howard that Ordinance 1306 be placed on FIRST READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1306. Alderman Ray moved, seconded by Alderman Sansing that Ordinance 1306 be APPROVED on FIRST READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Fletcher moved, seconded by Alderman Ray to suspend the rules and place Ordinance 1306 on SECOND READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg 5 read the heading of Ordinance 1306. Alderman Fletcher moved, seconded by Alderman Ray to further suspend the rules and place Ordinance 1306 on THIRD and FINAL READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1306. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. Alderman Sansing moved, seconded by Alderman Howard that Ordinance 1306 be APPROVED AND ADOPTED. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. st ORDINANCE APPROVED, ADOPTED AND NUMBER 1306 THIS 1 DAY OF MARCH 2007. th b. ORDINANCE 1302 (#1-07) Tabled at the February 15 City Council meeting. AN ORDINANCE TO ESTABLISH AND LAY OFF THE CITY OF JACKSONVILLE MUNICIPAL MULTIPURPOSE PROPERTY OWNERS’ IMPROVEMENT DISTRICT, NO. FOUR (THE MEADOWS MUNICIPAL PROPERTY OWNERS’ IMPROVEMENT DISTRICT); DECLARING AN EMERGENCY; AND, FOR OTHER PURPOSES. Alderman Ray moved, seconded by Alderman Smith to remove Ordinance 1302 from being tabled. MOTION CARRIED. Alderman Ray moved, seconded by Alderman McCleary that Ordinance 1302 be placed on FIRST READING. Alderman Sansing stated that in reading the minutes of the Planning Commission found where a sewer improvement district was discussed but nothing as broad as what is being proposed in the Ordinance. He then questioned what improvements were included in the improvement district for the Foxwood Estates. Mayor Swaim stated that the improvement district for Foxwood Estates has not been proposed to the City Council as yet. It was determined that of the three existing improvement districts in the City none are as broad in scope as what is being proposed for The Meadows Improvement District. Alderman Ray stated that he would like to speak in favor of the Ordinance as a win-win situation. He explained that his research revealed that it is a positive for affordable housing, adding that the homeowner would not be a victim of the improvement district. He stated that the improvement district is a government satisfying funded and watchdog. He stated that other cities carry the same type of improvement district. He stated that he would recommend that the City Council move forward with the Ordinance. 6 Alderman Smith spoke favorably of Brian Boroughs and B.J. Boroughs, adding that his only concern would be when the bonds are paid and the Boroughs are no longer involved in the project. He asked City Attorney Bamburg if he perceives any problems that would place the City Council in jeopardy of passing the Ordinance. City Attorney Bamburg stated that the only future activity for the City Council would be the circumstance of appointment regarding commissioners when terms expire. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. Discussion ensued regarding the affordability of the houses and Mayor Swaim clarified that the bond issue is strictly to do the improvements and the financing would be through local lending institutions such as VA, FHA and conventional type funding. Alderman Sansing stated that part of the risk that developers have to take are the improvements that are made to subdivisions prior to selling lots, adding that this proposal seems to remove any incentive from any developer to take any risk when developing a subdivision. In response to a question from Alderman Smith, City Attorney Bamburg clarified that the City Council as a body either votes to approve or deny, but does not have any discretion beyond that point. He stated that is the way the Statute reads. Alderman Ray stated that this is a new idea that has not been presented to the City Council before, a new idea regarding the financing of a subdivision. He stated that while it may be new to Jacksonville it is not new in other places around the Country. In response to a question posed by Alderman Fletcher, Mr. Brian Boroughs stated that the original intent was a sewer improvement district, clarifying that because the Jacksonville Wastewater Utility does not accept this sewer system as a valid alternative, they are required to provide long-range operation and maintenance of the sewer grinder pumps. He stated that because of that they have to use the vehicle of an improvement district to not only fund those improvements but to provide for long-term o&m and a management structure. He continued that in the process it was previously explained that it changed because of the process of borrowing money. He stated that an improvement district by the Statute requires it to be in first position as far as material and lien rights. He went on to say that the financial institution that they are dealing with is not comfortable with being in second position. He stated that to accomplish getting the bank out of second position they would borrow money in total and at the end point in time the bonds are sold in the amount of the improvements. He stated at that point the bank is paid off and the improvement district would then act as a development loan. He stated that there would be a lot release price per lot at the point of sale. He continued that when the lot is sold, the assessment 7 that is attached to that lot, of the 111 lots, reduces the overall assessment by that amount. He stated that when this is done there would be a remaining balance, which is less than 25% of the total. He continued that the remaining 25% after the lots are sold is the amount that the original improvement district would have borrowed. He stated that the repayment is structured so that 25% of the balance is paid off via the tax bill that carries a long-term o&m cost to maintain the system and repay the bonds. He related that the reason it is worded that way is to accomplish financing. He stated that the reason it provides a lower cost housing is the lot can be sold at a reasonable price range because a portion of those improvements are paid back over time, making the project feasible. He stated that the development could be done without using CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. an improvement district at all if Jacksonville Wastewater would accept their sewer system. He stated that neighboring cities accept the grinder pump systems. He stated that the district is needed to handle the long- term o&m. Mr. David Orsini stated that it would not change the way financing is ordinarily done. He stated that the developer would borrow personally the cost and build the entire subdivision as any subdivision is built. He continued that the change comes in at the end when it comes time to sell the individual lots and put in the grinder pumps, saying that portion will end up being paid through the improvement district. Alderman Sansing stated that he did not understand why with three other improvement districts that the financial institutes were comfortable with just a small part of the improvements. He stated that his purpose is to see that whoever purchases homes are not blindsided by the fine print in the future. Mr. Brian Boroughs explained that when the bond issue is made his Corporation is bound by the Statute to repay those funds. He stated that assuming only ten lots sold, he would be responsible for the interest on the bonds and would have to pay that. He stated that the bond sells are based on the validity or the financial backing of the developer. He added that it might look on paper as if it could be passed off, but when the tax bill comes in October and if the lots have not paid their assessment then he is responsible. He stated that the savings to his company in the short term is a better interest rate and flexibility, but the reason developers do not do this is because they do not want to be hamstrung to that long-term repayment. He stated that because they have to operate and maintain the improvement district in perpetuity, there has to be a vehicle in place where they re-assign commissioners and where there is a management structure in place. He related that this is no different from a water district, adding that it has to be managed and overseen. He noted that Jacksonville Wastewater Department would get revenues from 111 lots but will never have to operate or maintain the system. 8 In response to a question posed by Alderman Fletcher, Mr. Boroughs stated that the subdivision would be done in one phase because there is a significant amount of dirt excavation that will be moved from what would come out of the first phase to go into second and third phases. He then answered that the costs of having individual grinder pumps and a conventional gravity sewer with a pump station are much the same, adding that mostly why individual grinder pumps were selected is because it has to do with construction and speed from a developer’s perspective. He explained that the topography of the ground is steep and that would require deep sewer which runs up the cost and time factors. He stated that with the system being proposed, it is like a water line being buried 3’ deep, adding that the street crossings will not be as invasive. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. In response to a question posed by Alderman Fletcher, Mr. Bond related that he had first proposed this type of sewer system to the City of Cabot, noting that it was first utilized in the City of Hot Springs and is now used in many of the retirement communities. He then related that he convinced Cabot to accept this in their wastewater system, saying that there are 868 now in the Graystone Subdivision. He stated that this system reduces the infiltration 40% on the front end, plus it is used when there is difficult terrain. He stated that the good thing on the development side is that typically the installation is small diameter pipes that are laid like water pipes, which is not installed until the house is built. He added that he had to convince the Health Department that the economics were good, saying that in the end the costs are about the same. He stated that the homeowner pays for the pumping so the City does not have any electrical costs. He stated that he feels this is the wave of the future, acknowledging the convenience of repairs if needed. In response to a question posed by Mayor Swaim, Mr. Bond stated that he was not sure, but would venture to guess, that Hot Springs Village probably used this same type of vehicle. He then added that Foxwood Estates would also use this type vehicle. He then stated that he feels this vehicle is much better than a property owners association, because this is a governmental agency that has regulation through the City Council as the authority to approve appointments. He stated that one advantage to the improvement district is that the taxes are levied and are part of the tax bill whereas with the property owners’ association bills are sent out but collections can be difficult. Alderman Elliott stated that he does not believe there would be a problem on the front end, but questioned what might happen subsequently when other commissioners are appointed after the Boroughs have finished the project. He stated that his fear would be that the homeowners would hold the City responsible for what should be handled by the improvement district commissioners. 9 Mr. Boroughs stated that the Statute makes that possible and he as a developer is trying to follow what he has available to him. Alderman Elliott stated that while a Statute might provide for that, the City Council has to be concerned with the best interest for the City. Alderman Sansing stated that his problem is with a financial institution that asked the City to accept everything in the improvement district. He noted that the other three times an improvement district was proposed the developer was not forced to make the City offer them carte blanche. Mr. Orsini stated that the other financial institutions may not have realized that they were second. City Attorney Bamburg clarified that the previous three improvement districts were done toward the end of the developments. He stated that apparently their manner of financing was different from what is presently CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. planned. He recalled that two of the three were specifically done to address sewer purposes. He stated that all parts of the construction loan were paid off by the time the improvement districts were formed, which kept the bank in the position of number one. In response to a question posed by Alderman Fletcher, City Attorney Bamburg stated that the Jacksonville Wastewater Commission addressed the process of grinder pumps before being presented to the Planning Commission. He related that the circumstance of using a pump grinder system is not acceptable by the Utility under the current policies and procedures. He stated that the sewer system will collect the waste that comes out of the improvement district’s system, but it would have already gone through the pump grinder systems before going into a manhole. He stated that Mr. Bob Williams has concurred that it is a win-win situation as long as the waste were treated prior to going into the manhole. He related that the Wastewater Department has no obligation to maintain or assist in the maintenance of the system within the improvement district. Alderman Elliott stated that he does not feel there would be a problem with the grinder pumps and their operation, adding that his concern would be the additional improvements included in the improvement district and citizen complaints if not managed properly later. Mr. Boroughs stated that even when he is no longer a commissioner it would not negate his initial financial responsibility to the district, adding that he has a long-term financial interest in the maintenance of the district even when new commissioners are appointed. Mr. Orsini clarified that all improvements except the grinder pumps and force mains would be dedicated to the City, as with any other 10 subdivisions. He stated that the improvements would be constructed to City standards and then dedicated to the City. Mayor Swaim clarified that the improvements would be accepted by the City with the approval of the Final Plat, adding that there would be a one- year maintenance for the streets, curbs, gutters, and utilities. Discussion ensued regarding at least 20 items listed under section one of the Ordinance. Alderman Fletcher stated that there would be no progress if everyone were always against anything that was new or different. He stated that he did not feel there would be a problem regarding the quality or service, because of the number of checks and balances built into the program. He related that he feels more comfortable with the proposal than he did this afternoon. He then stated for the record that he does not have a problem with the proposed improvement district for the development. Alderman Elliott noted that the Ordinance specifically states that any and all improvements will be maintained by the improvement district. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. Mr. Boroughs stated that he feels the wording was used to maintain a broad ranging scope so they had some flexibility. Alderman Elliott reiterated his concerns regarding the maintenance of all improvements within the improvement district. Mr. Boroughs stated that it is not his intention. Alderman Ray called for a question to the motion. MOTION CARRIED with Alderman Elliott voting NAY. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1302. Alderman Elliott questioned if the future maintenance of exactly what improvements should be clarified in writing to make it understood that the improvement district would only maintain the sewer. Alderman Ray left the dais at approximately 8:05 p.m. City Attorney Bamburg clarified that the Ordinance presented to the City Council is the ordinance that was presented by the district’s attorney. He stated that the circumstance is the Council authorizing or not authorizing an improvement district, adding that any change to indicate that the district is not going to be responsible for maintaining an item, would come to the City at the point of final plat approval. He clarified that an improvement district can either be responsible for the maintenance of those items, or they can make a contract with the 11 governmental entity to do it separately. He stated that he believes Pennpointe and Base Meadows Subdivisions have contracts with the Wastewater Utility for the maintenance of the sewer improvements. Alderman Ray returned to the dais at approximately 8:06 p.m. City Attorney Bamburg then clarified that in this circumstance as is written, it is being indicated that the improvement district will maintain all improvements made by the district. Alderman Elliott stated that his contention all along has been that the developer has stated that the City will take the improvements but the written document does not support that claim. Mr. David Orsini stated that the City Council has heard Mr. Boroughs say what his intention is, adding that this is governed by State Statute and one of the things that the Statute specifically says is that a district like this can sell or give away any part of its services, and it can merge with other districts. He then added that another one of the things it specifically says is that an improvement district like this is authorized to deed or grant its improvements over to any municipality. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. He continued that the Statute specifically allows this Meadows Improvement District to do that, but it cannot do it against the City’s wishes. He stated that unless Jacksonville turned down the other improvements such as streets or sidewalks then the improvement district is authorized by Statute to give it to the City. He said the whole purpose is to give the streets to the City, saying that the reason you give the streets and everything to the City is because the maintenance is too expensive for homeowners. He stated that there would be no reason to keep those improvements. In response to a question posed by Mayor Swaim, Mr. Orsini stated that he is not aware if the Statute authorizes it being amended but added that he knows Mr. Boroughs would not object to amending the wording to give the improvements to the City. Discussion ensued as to whether the petition would also need to be amended. City Attorney Bamburg clarified that the petition is submitted by the petitioner, which would have to be amended, adding that the City Council has authority to amend the Ordinance. He continued that if the petitioner presented a statement that he will amend and then submits an amendment that could support whether the Ordinance would be amended. He then noted that at the time of final plat approval the district could execute the appropriate documents to submit those improvements to the City. He stated that if the district does not do that, then this 12 Ordinance as presented and the petition as it exists conveys that the district would maintain those items. Alderman Elliott stated that he feels the City needs that amendment, otherwise he would not feel comfortable approving the final plat. Mr. Boroughs stated that all he is asking is for the district to have authority to do it, adding that even if you amend the petition it would only be amending its authority. He stated that they have given the district broad ranging authority and that is what they wanted, but have the option through the Statute to amend that downstream. He stated that all this does is give the district authority to maintain the improvements themselves. Mayor Swaim stated that he believes the confusion is that it also affects the money, the pay-off of the lots because that goes to pay for the streets. He added that he does not understand how it would affect Mr. Boroughs if Alderman Elliott’s amendment were placed on it, pointing out that it would eliminate the ability for the district to maintain those improvements even if desired. Mr. Boroughs stated that it would be semantics. Alderman Elliott noted that the final plat has to be approved before lots can be sold, adding that he would not be willing to approve the final plat until the improvements are in and dedicated to the City. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. City Attorney Bamburg stated that a final plat could not be approved unless the appropriate improvements are in and pass City standards. In response to a question posed by Alderman Sansing, Mayor Swaim noted that the amount of bond sale to handle just the grinder pumps would not be enough to do a bond issue. City Attorney Bamburg clarified that there would have to be an act of donation at the time of final plat, either through the final plat or some other separate document. He then added that given it is an improvement district, it would be better to have a separate document to go along with the final plat. In response to a question posed by Alderman Fletcher, City Attorney Bamburg stated that it would be up to the City Council’s discretion, explaining that the Ordinance could be amended now if the petition were amended or it could be addressed at the time of final plat. He added that if it is not addressed and the Ordinance remains as is and the final plat is approved with the improvement district being responsible for the maintenance, then the City takes on no obligation of maintenance or operation for any of the improvements throughout the improvement district. 13 Alderman Elliott noted that in theory that would be great if everything went well all the way through but in reality that might not happen. It was clarified that if the improvements are donated to the City at the time of final platting that would be Mr. Borough’s responsibility. Further discussion ensued regarding amending now or at the final plat stage. Alderman Fletcher moved, seconded by Alderman Howard that Ordinance 1302 be APPROVED on FIRST READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Alderman Smith moved, seconded by Alderman Ray to suspend the rules and place Ordinance 1302 on SECOND READING. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1302. Alderman Fletcher moved, seconded by Alderman Ray to further suspend the rules and place Ordinance 1302 on THIRD and FINAL READING. Alderman Sansing stated that he hoped this would not set precedence for the future. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1302. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MARCH 1, 2007 7:00 P.M. – 8:24 P.M. Alderman Howard moved, seconded by Alderman Ray that Ordinance 1302 be APPROVED AND ADOPTED. ROLL CALL: Alderman Elliott, Smith, McCleary, Sansing, Ray, Rinker, Fletcher, and Howard voted AYE. NAY (0). MOTION CARRIED. st ORDINANCE APPROVED, ADOPTED AND NUMBER 1302 THIS 1 DAY OF MARCH 2007. d. Request to accept bid drainage ditch Hill and Braden Streets Alderman Ray moved, seconded by Alderman Sansing to accept the low bid from Building & Utility Construction in the amount of $113,800 with funds to be drawn from the Capital Drainage Fund. MOTION CARRIED. e. UPDATE Graham Settlement Drainage Committee Alderman Ray stated that an agreement had been preliminarily reached, informing the City Council that the City would be responsible for grading the existing ditch between Graham Settlement and Heritage Park, adding that the developer would be responsible for constructing 140’ of privacy fence and individual builders would sod the yards. He stated that it is his hope that this compromise will satisfy the City, developer, and the 14 homebuilders. He then answered that the proposed plan would cost less than $5,000.00, adding that the City’s cost would be labor and equipment, and the other costs would be born by the developer and builders. Mayor Swaim stated that a fear he still has is the concern from property owners regarding the significant amount of water that moves down the street and puddles in the corner, explaining that this solution is not designed to address that issue. He noted that this would only solve the problem of the unsightly ditch between the two subdivisions. He stated that he does not want complaints in six-months requesting that the street be fixed and a drainage pipe installed. APPOINTMENT(S): BOARD OF ADJUSTMENT APPOINTMENT Alderman Smith moved, seconded by Alderman Howard to approve the appointment of Glen Keaton to the Board of Adjustment for a term to expire 5/05/2010. MOTION CARRIED. ANNOUNCEMENT(S): ADJOURNMENT: Without objection, Mayor Swaim adjourned the meeting at approximately 8:24 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer 15