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07 MAY 03.doc CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 3, 2007 7:00 P.M. – 7:27 P.M. REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in Regular Session on May 3, 2007 at the regular meeting place of the Council. Mayor Swaim delivered the invocation and Alderman Smith led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: Aldermen: Elliott, Smith, McCleary, Sansing, Ray, Fletcher, Twitty, and Howard answered roll call. Mayor Swaim also answered ROLL CALL declaring a quorum. PRESENT eight (8), ABSENT (2). Aldermen Rinker and Stroud were out of town. Others present for the meeting were: City Attorney Robert Bamburg, Deputy Clerk Linda Dulaney, Director of Administration Jay Whisker, Public Works Director Jim Oakley, Parks and Recreation Director George Biggs, CDBG Director Theresa Watson, Fire Chief John Vanderhoof, Police Chief Robert Baker, Mrs. Judy Swaim, 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 April 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 April 2007 be APPROVED. MOTION CARRIED. CONSENT AGENDA: WATER DEPARTMENT: WASTEWATER DEPARTMENT: FIRE DEPARTMENT: Request to approve change order #1 for Fire Station #3 Mayor Swaim related that an addition is being built onto Fire Station #3, which is located in the Toneyville area. He noted that the most significant change was additional work regarding the addition of siding to the existing building that is currently wood. He noted that the change order is under 20% and would normally not require being presented to the City Council but added that he wanted the City Council to have an opportunity to review the order. Alderman Elliott moved, seconded by Alderman Sansing to approve the change order for Fire Station #3 with funds to be drawn from the Capital Improvement Fund. Mayor Swaim noted that the estimate was $150,000, adding that with consideration for the change order the new estimate is slightly over $200,000. He noted that the project attracted a number of bids, mentioning that the architect’s bid was around $185,000. 1 CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 3, 2007 7:00 P.M. – 7:27 P.M. At this time, MOTION CARRIED. POLICE DEPARTMENT: STREET DEPARTMENT: Request to Accept Bid for Bush Hog Public Works Director Jim Oakley stated that his recommendation and request is to accept the second lowest bid from Springdale Tractor Company for the purchase of a Kubota. He pointed out the justification information regarding the Kubota vs. Mahindra (low bid). He further pointed out that the City currently owns two Kubota tractors that are 30 years old, saying that they have been good tractors. He went on to say that the City has never owned a Mahindra and he is not aware of anyone else who does have one. He stated that he feels the City would be better served with a known and reputable tractor, saying that he is not aware of any statistics regarding the Mahindra. Mr. Doug Meyer, owner of Capital Equipment, was recognized as the low bidder regarding the Mahindra tractor. Mr. Meyer provided the City Council with a brochure regarding the Mahindra tractor, saying that Capital Equipment and the City of Jacksonville have enjoyed a 20 year history of working together regarding tractors, mowers, and construction equipment. He added that he felt everyone would agree that it has been a positive relationship. He explained that on February 28, 2007 the City opened a bid for a tractor, and Kubota was the lowest bid while they were the second lowest. He added that the bid was awarded to Kubota. He then explained that on April 7, 2007 the City opened a bid for a zero turn mower, further explaining that employees from the City came to Capital Equipment and related to staff which mower they would prefer, because his company carries three different brands. He went on to say that Capital Equipment bid the mower recommended by the City employees and a lower bid from “Bad Boy”. He added that he was then contacted by the City and told that they had to come and pick up one of the two bids submitted, because the City only allows one bid per dealer, regardless of the fact that it was two different brand mowers. He stated that since the City had previously chosen the low bid two months earlier, they decided, because of the employee recommendation, to withdraw the lower bid and left the bid for the hustler mower chosen by City employees. He related that they ended up as second lowest bid but would have been the lowest bid with the other mower bid. He stated that his quandary regarding the bid for a brush hog was that he was not sure whether he should bid the New Holland tractor at a higher cost or the Mahindra at a lower price but still a very good quality tractor. He stated that because the City would only accept one bid, they 2 bid the Mahindra tractor. He related that Mahindra is the third largest tractor manufacturer in the world and have been in business for 50 years. He pointed out that specifications called for a one-year warranty and the CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 3, 2007 7:00 P.M. – 7:27 P.M. Mahindra has a three-year warranty, adding that resale value was not a part of the bid but he does agree that resale is important. He explained that the only way to evaluate resale value would have been to compare those figures from back in the year 2000. He then stated that regarding total bid they are $4,350.00 less than Springdale Tractors, adding that he understands the City looks at not only low bid but also best bid. He stated that part of that consideration is the dealer, noting that his Company has worked with the City for 20 years. He stated that when the City orders a part from Capital Equipment, 98% of the time the part is available the next day with either Mahindra or New Holland. He questioned from a warranty and service standpoint what would the City do if the tractor breaks down, saying that the City would have to drive almost 200 miles to Springdale for a part. He stated that if the City sought warranty work closer, that dealership would not be enthusiastic about taking care of the warranty needs of a customer who purchased elsewhere. He then stated that he would like to point out that Fiser Tractor in North Little Rock and Springdale Tractor were $10,000 difference in bid on the exact same tractor. Extrapolating that it would be hard, without looking into a crystal ball, what the trade-in value would be down the road. He asked that the City Council approve the bid for the Mahindra tractor because it exceeds the specifications, reminding the City Council that his Company has a 20-year relationship with the City, adding that he personally promises to take care of the City. Alderman Ray stated that his Company owns Kubota tractors, and they have had good service with Fiser. Mr. Meyer stated that his Company would honor the warranty regarding tractors purchased at another location, but feels that a company takes care of their purchases made at their Company first. Alderman Fletcher voiced concerns for Mr. Meyer’s bidding experience with the City. Mayor Swaim questioned who would have had authority to pick out which lawnmower was to be bid. He stated that his understanding of bids is that the City does not accept alternate bids. Mr. Meyer stated that he had a lengthy conversation with the Purchasing Department regarding bids, adding that he had asked June Brown about bidding a totally different brand. He stated that he could understand the City not allowing him to bid two Ford tractors or two New Holland 3 tractors, but if there are two totally different lines he should be able to submit bids for each line. He stated that June Brown had stated that the City will absolutely not allow that, instructing him to pick up one of his bids by 9:45 the next morning or she would disqualify both bids. He added that was the conversation verbatim. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 3, 2007 7:00 P.M. – 7:27 P.M. Mayor Swaim stated that the City has had a policy of not taking alternate bids and of not taking bids for a new and used product. He stated that in fairness to all bidders the City does not accept alternate bids or substitute bids. Mr. Meyer addressed Alderman Ray, saying that with all due respect as already mentioned, the City does not have the privilege of going and looking at every unit so base specifications are set, offering a level playing field for all bidders. He reiterated that Mahindra met and exceeded every one of those specifications, adding that he feels strongly that Capital Equipment should be awarded the bid. Alderman Sansing questioned if the only reason for the recommendation is the long-term resale value of Kubota over the Mahindra. Public Works Director Jimmy Oakley answered that it was not the only reason, noting that as pointed out by Alderman Ray, Kubota has a good reputation, and he feels it would be a good tractor lasting a long time. He then added that the City currently has two that are 30 years old, saying that the Kubota has a good life span besides the value of trade- in. Alderman Twitty stated that she did not feel that it would be fair to limit a bidder to one bid if they have two or three brands. Alderman Fletcher asked if there are other cities using the Mahindra tractor. Mr. Meyer stated that his dealership began offering the Mahindra four years ago and in four years they are selling almost two to one Mahindra versus New Holland. He then answered that he is not sure of other cities that may be using the Mahindra. He stated that last year they sold over 85 Mahindra tractors and expects to sell over 100 this year, adding that they have almost a half a million dollars in the parts inventory. In response to a question posed by Mayor Swaim, Public Works Director Jimmy Oakley stated that it can be customary to wait for new part orders, explaining that he feels New Holland is a good brand and he does not feel he would be recommending another brand if Capital Equipment had bid a New Holland tractor. Mr. Meyer stated that if the part is order by 5:00 p.m. on any weekday, 4 they would have the part by 10:00 a.m. the following day, 98% of the time. He added that there is a shipping charge. He stated that if it takes 2 or 3 days then it is freight free. He continued that the City may not have been aware of that, adding that may have been their fault. Public Works Director Jimmy Oakley stated that there were instances when the wrong part was sent and the City of Jacksonville was responsible for a restocking fee. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 3, 2007 7:00 P.M. – 7:27 P.M. Alderman Sansing requested and it was clarified that all bids met or exceeded specifications. Alderman Sansing moved to accept the low bid. MOTION failed due to a lack of second. Alderman Fletcher questioned the possibility of splitting to bid in order for the City to be able to evaluate the difference between Kubota and Mahindra. Alderman Twitty asked if the item could be tabled pending further research regarding the Mahindra brand name and possible use by other cities. City Attorney Bamburg clarified that the bid could not be spilt. Alderman Ray moved to accept the bid from Springdale for the Kubota tractor and reject the low bid from Capital Equipment regarding the Mahindra tractor. MOTION died for lack of a second. Alderman Twitty moved seconded by Alderman McCleary to table the item of business until the next regularly scheduled City Council meeting pending further review. MOTION CARRIED with Alderman Ray voting NAY. SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: RESOLUTION 602 (#2-07) A RESOLUTION AUTHORIZING AN AGREEMENT WITH PULASKI COUNTY, ARKANSAS, FOR PAYMENT OF A PROPORTIONAL SHARE OF THE CERTAIN OPERATIONS AND BUILDING MAINTENANCE COSTS OF THE JACKSONVILLE HEALTH UNIT OF THE PULASKI COUNTY HEALTH DEPARTMENT; AUTHORIZING THE MAYOR AND CITY CLERK TO EXECUTE AN AGREEMENT FOR SUCH; AND, PRESCRIBING OTHER MATTERS RELATING THERETO. Mayor Swaim related that Resolution 602 is a renewal of an agreement between the City and Pulaski County since 1994. Alderman Smith moved, seconded by Alderman Sansing to read Resolution 602 (#3-07). MOTION CARRIED. Whereupon City Attorney Bamburg read the 5 heading of Resolution 602 (#3-07). Alderman Ray moved, seconded by Alderman Howard to adopt Resolution 602 (#3-07) in its entirety. Mayor Swaim related that the five-year agreement recognized that the City of Jacksonville pays a proportional share based on population, adding that this year’s fee is slightly over $2,000.00. It was clarified that funds would be drawn from the contingency fund. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING MAY 3, 2007 7:00 P.M. – 7:27 P.M. At this time, MOTION CARRIED. APPOINTMENT(S): ANNOUNCEMENT(S): ADJOURNMENT: Without objection, Mayor Swaim adjourned the meeting at approximately 7:27 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR TOMMY SWAIM City Clerk-Treasurer 6