14 JAN 02CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
JANUARY 2, 2014
7:00 P.M. – 7:28 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 January 2, 2014 at the regular meeting place of the City Council. Mayor Fletcher delivered the invocation and led a standing audience
in the “Pledge of Allegiance” to the flag.
ROLL CALL: Aldermen: Elliott, Bolden, Sansing, Mashburn, Traylor, Twitty, Robinson, and Howard answered roll call. Mayor Fletcher also
answered ROLL CALL declaring a quorum. PRESENT EIGHT (8), ABSENT (2). Aldermen McCleary and Ray were absent.
Others present for the meeting were: City Attorney Robert Bamburg, Finance
Director Cheryl Erkel, City Engineer Jay Whisker, Director of Administration Jim Durham, Public Works Director Jim Oakley, Police Captain Kelley Smiley, Parks and Recreation Director
Kevin House, CDBG Director Theresa Watson, Fire Chief Alan Laughy, 911 Communications Director Tabby Hughes, Planning Commissioner Jim Moore, Johnny Simpson, interested citizens, and
members of the press.
PRESENTATION OF MINUTES:
Mayor Fletcher presented the minutes of the regular City Council meeting of December 19, 2013 for approval and/or correction at the
next regularly scheduled City Council meeting.
APPROVAL AND/OR CORRECTION OF MINUTES:
Alderman Bolden moved, seconded by Alderman Howard that the minutes of the regular City Council
meeting of 10 December 2013 be APPROVED. MOTION CARRIED.
CONSENT AGENDA:
WATER DEPARTMENT:
WASTEWATER DEPARTMENTS:
FIRE DEPARTMENT:
POLICE DEPARTMENT:
STREET DEPARTMENT:
SANITATION
DEPARTMENT:
PARKS & RECREATION:
PLANNING COMMISSION:
GENERAL: a. ORDINANCE 1508 (#1-2014)
AN ORDINANCE AUTHORIZING AN AMENDED LEASE/PURCHASE AGREEMENT FOR THE 911 COMMUNICATION
DIGITAL EQUIPMENT BY MODIFICATION OF A SHORT TERM PROMISSORY NOTE WITH SECURITY PLEDGE; PROVIDING FOR PAYMENT OF THE PRINCIPAL OF AND INTEREST ON THE NOTE; DECLARING AN EMERGENCY; AND,
PRESCRIBING OTHER MATTERS RELATING THERETO.
Finance Director Cheryl Erkel stated that the original agreement with Motorola was 0% interest regarding $2,497,527 financed over five years.
She continued saying that the first year was one payment of $87,413.43
CITY OF JACKSONVILLE
REGULAR CITY COUNCIL MEETING
JANUARY 2, 2014
7:00 P.M. – 7:28 P.M.
and the remaining four years were also one payment due each January of $602,528.30. She
explained that through negotiations with Motorola they agreed to refinance the remaining amount over another five-year term with an interest rate of 3.243%. She related that the total
principal plus interest will total $2,661,435.00. She explained that in January 2014 there is a payment of $147,750.00 and then the remaining 11 months will be $27,011.26 each month.
She continued saying that the $27,011.26 would continue for 34 months with the last 24 months would be equal payments of $66,470.91. She related that the annual total for 2014 would
be $444,873.86 compared to the $602,528.30 under the previous agreement. The second year would be $324,135.12 and the third year would be $363,594.77. She then explained that the fourth
and fifth years will be more than the original $602,528.30, saying that the fourth year would be $797,750.92 and the fifth year would be $731,180.00. She added that there would be no
penalty if the loan is paid off early.
Mayor Fletcher stated that the new agreement offers smaller payments and a better ability regarding cash flow.
Finance Director Cheryl Erkel
agreed saying that it allows for monthly payments instead of just one annual payment. She answered Alderman Traylor that the City did make the $87,413.43 in 2013 and the Ordinance reflects
the remaining amount due not including the $87,413.43 first year payment.
Discussion ensued as to whether the first payment would start in January or March.
Alderman Traylor questioned
how much was put into the 2014 budget regarding payments to Motorola.
Finance Director Cheryl Erkel stated that the amount was not broken down in the budget document, adding that
she believes she budgeted for the monthly payments as well as the onetime payment of $147,750.00.
Mayor Fletcher noted that negotiations were being conducted with Motorola before completing
the budget.
Finance Director Cheryl Erkel noted that the budgeted amount would be under the debt service (Department 13) in the budget. She stated that she thought it was broken down
by each individual loan but evidently it was not.
Alderman Bolden moved, seconded by Alderman Howard that Ordinance 1508 be placed on FIRST READING. ROLL CALL: Alderman Elliott, Bolden,
Sansing, Mashburn, Traylor, Twitty, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1508.
Alderman Sansing
moved, seconded by Alderman Bolden to APPROVE Ordinance
1508 on FIRST READING and suspend the rules and place Ordinance 1508 on SECOND READING. ROLL CALL: Alderman Elliott, Bolden, Sansing, Mashburn, Traylor, Twitty, Robinson, and Howard
voted AYE. NAY (0). MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Ordinance 1508.
Alderman Bolden moved, seconded by Alderman Sansing to APPROVE Ordinance 1508
on SECOND READING and further suspend the rules and place Ordinance 1505 on THIRD AND FINAL READING.
In response to a question from Alderman Traylor, Finance Director Cheryl Erkel
stated that Motorola was the only negotiations in regard to refinancing this loan.
Alderman Traylor questioned why loan interest rates quotes were not bid.
Mayor Fletcher stated
that the biggest reason was the timing factor. He then answered that Motorola carried the note for two years without interest.
Alderman Traylor stated that he understands that the
original agreement was with 0% interest, adding that the City did not make payments before having to refinance with an interest. He questioned if the City tried to obtain a loan with
a better interest rate.
Mayor Fletcher stated that the City did not and that there is not time to do that before a payment is due under the original agreement.
Director of Administration
pointed out that the Shooting Range interest rate was 3.1%, which is almost identical to what Motorola is offering. It was noted that quotes were obtained regarding the loan for the
Shooting Range. He then pointed out that under State law if the City were unable to make the payments they could not repossess the equipment, by law Motorola is required to negotiate
and come to some type of terms.
Alderman Bolden stated that another consideration is the fact that there is no penalty for early repayment so there is nothing to restrict the City
from investigating a lower interest rate.
ROLL CALL: Alderman Elliott, Bolden, Sansing, Mashburn, Traylor, Twitty, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED. Whereupon
City Attorney Bamburg read the heading of Ordinance 1508.
Alderman Bolden moved, seconded by Alderman Sansing that Ordinance 1508 be APPROVED AND ADOPTED. ROLL CALL: Alderman Elliott,
Bolden, Sansing, Mashburn, Traylor, Twitty, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED.
Alderman Sansing moved, seconded by Alderman Bolden that the EMERGENCY CLAUSE be
approved and adopted. ROLL CALL: Alderman Elliott, Bolden, Sansing, Mashburn, Traylor, Twitty, Robinson, and Howard voted AYE. NAY (0). MOTION CARRIED.
ORDINANCE 1508 (#01-2014) APPROVED
AND ADOTED THIS 2nd DAY OF JANUARY, 2014
Director of Administration Jim Durham stated that he researched his email and there is not a payment in January under the new agreement. He stated that the $147,750 payment is due
in February and then the $27,011.26 starts in March.
b. Roadways Update by City Engineer Whisker
City Engineer Whisker presented a PowerPoint presentation of the before and after
photographs regarding the 18 months of construction on Graham Road. He stated that the construction is almost complete and it is a major improvement to the area. He reviewed the new
design plans around Oak and Elm Street to allow for having two-way traffic. He stated that the Highway Department has to wait to finish because it has to be 40° in order to lay asphalt.
He then related that most of the utilities have been relocated for the Harris Road project, explaining that the project has been rebid for the third time. He stated that the project
will come in just under 1 million dollars, adding that with help from the County Judge all the monies have been set aside for the project.
He stated that the Highway Department is
about to take bids for Redmond and West Main project, adding that they have already begun doing their surveys. He stated that this project would widen Hwy. 67/167 over Redmond and Main,
adding that Redmond and West Main were bid together. He then noted that they plan to raise part of the bridge to help with drainage issues.
He then informed the City Council that
the plan option to widen Hwy. 67/167 north of Main Street to off-ramp north of Vandenberg has been chosen by the Highway Department and a map of those proposed improvements is in his
office.
Discussion ensued regarding the effectiveness of round-a-bouts at intersections versus signalization.
APPOINTMENT(S): PLANNING COMMISSION
Alderman Howard moved, seconded
by seconded by Alderman Bolden to approve the reappointments of Avis Twitty, Rick White, and Jim Moore to the Planning Commission for terms to expire 1/1/2017. MOTION CARRIED.
ANNOUNCEMENT(S):
City Offices will be closed Wednesday, January 1st for New Year’s Day, sanitation routes will run one day late.
Mayor Fletcher announced that a tour of the Shooting Range would immediately
follow the City Council meeting for those wishing to see the completed Shooting Range.
ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 7:28 p.m.
MOTION CARRIED.
Respectfully,
________________________ _________________________
Susan L. Davitt MAYOR GARY FLETCHER
City Clerk-Treasurer