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Minutes from the Finance Committee meeting on July 21, 2005.
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Finance & Administration Committee Minutes
Thursday, July 21, 2005
4:00 p.m. - City Council Conference Room - Huntington Building
Members Present: Alec Farmer, Darrel Dover, Jim Hargis, John Street, Harold Perrin, and Ann Williams who arrived at 4:20 p.m. Others present were: City Clerk Donna Jackson, staff, and media. Mayor Formon and Brian Wadley, Director of Operations were not in attendance.
MINUTES
Councilman Perrin moved, seconded by Councilman Dover for the approval of the minutes for June23, 2005 as provided. All voted aye. Copies were provided to all in attendance.
ORDINANCES AND RESOLUTIONS
Dr. Paul Copeland presented the following Ordinances and Resolutions:
Ordinance for the FY 2006 Transit Operations Budget - Councilman Perrin moved, seconded by Councilman Dover to recommend the ordinance to the full council. All voted aye.
Resolution accepting the 2005 FTA Capital Grant Award - Councilman Dover moved, seconded by Councilman Hargis to recommend the resolution to the full council. All voted aye.
Ordinance waiving the bid for the purchase of Transit Management Software - Discussion followed regarding Information Systems reviewing the software for compatibility purposes prior to its approval. Mr. Young stated he was not made aware of the new management software. It was explained the Purchasing Agent had reviewed the request and recommended waiving the bid since there were no vendors for this product. Councilman Dover moved, seconded by Councilman Perrin to recommend the ordinance to the full council, contingent on Information Systems reviewing the software for compatibility.
Ordinance waiving the bid for the purchase of transit shelters. Dr. Copeland explained Purchasing Agent, Steve Kent had recommended waiving the bid due to time constraints. He explained Mr. Kent has work cycles for the bidding process and would not be able to complete the work in time. It was determined the contract had to be completed by the end of September leaving several council meeting dates available for the bidding process to be done. Dr. Copeland was asked to have the Purchasing Agent bid the work out. Dr. Copeland asked that all the items previously approved be held so they could be adopted at the same time. Councilman Dover moved, seconded by Councilman Hargis to withdraw the following approved items:
• Ordinance for the FY 2006 Transit Operations Budget
• Resolution accepting the 2005 FTA Capital Grant Award
• Ordinance waiving the bid for the purchase of Transit Management Software
• Ordinance waiving the bid for the purchase of transit shelters
An ordinance to waive bidding for automated fare box equipment and software was also held for the bidding process. All voted aye.
Resolution adding job titles to the Police and Fire Departments: Ms. Hackney explained when Condrey did the Salary Administration Plan, the positions of Police Chief and Fire Chief were given a grade 24 because the Director of Public Safety was a grade 25. It was explained Ordinance 3457 deleted the position of Public Safety Director, and replaced it with the positions Police Chief and Fire Chief. She explained this proposal would be budget neutral. Councilman Perrin moved, seconded by Councilman Dover to recommend to the full council the resolution. All voted aye.
TREASURE’S OFFICE
Utility Franchise Fee Update: Mr. Flowers, reporting for City Collector Becky Sharp, stated he, Ms. Sharp, Brian Wadley and Mayor Formon had met with SBC and Entergy. He stated there were some questions as to which revenues were subject to the franchise fee, with both entities requesting 60 days notice of any increase which they would pass on to consumers. Mr. Flowers reported Entergy and Mayor Formon agreed the increase for the franchise fee should be levied all at once rather than in phases, while SBC was flexible. He stressed a need to move forward with a decision in order to provide the requested 60 day notice. Councilman Perrin requested an update on the other telecommunication companies, to which Mr. Flowers reported Ms. Sharp was still working on contacting them. Councilman Perrin explained something needed to be in the works by September in order to allow time for notification of the increase. Councilman Farmer asked Mr. Flowers for the amount of anticipated revenues should the fee be increased by 4.25%. He explained the fee does not need to be increased with no specific purpose in mind, and suggested the extra revenue be spent for specific “needs” such as the million dollar deficit. Ms. Rhonda Cline of SBC, reported with the increase at 4.25% the amount would be $272,000 for 2006, compared to the current amount of $130,000. She stated the committee should keep in mind that SBC loses lines every month to competition which would affect the bottom line to the City of Jonesboro. Ms. Cline indicated with SBC being approximately 50% of the market share, there was potential for another $272,000 in revenue by other telecommunication providers Mr. Flowers stated he would meet with Mayor Formon and provide a plan to the committee at the next regularly scheduled Finance Committee meeting.
APERMA/AML Property Insurance Update: Purchasing Agent, Steve Kent reported Mayor Formon had met with APERMA, but he was not involved with the meeting. Mr. Kent stated APERMA was unwilling to turn over particular documentation regarding their clients to other insurance providers, but had no problem turning over the information to the City of Jonesboro. Several expressed concern that this had been on the Finance Committee agenda for months and nothing has been done to address it. Mr. Kent responded saying he did not know what committee members were wanting. He stated in the beginning there was a request for an “apples to apples” comparison and that had been provided to the Arkansas Municipal League. Mr. Kent stated he was asked to bid this out last year, and APERMA provided in writing their premiums, while AML had not. Committee members expressed concern that there seemed to be a problem getting all the information to potential bidders. Mr. Flowers was asked to schedule a meeting with Attorney Marc Hayes of the Arkansas Municipal League, with Steve Kent to provide a spread sheet of all the coverage we currently have and the cost so each provider could go through it line item by line item for the purpose of making an informed decision. Councilman Perrin moved, seconded by Councilman Dover to set up a meeting with AML addressing our current insurance policy, with a follow up meeting with APERMA to answer questions. All voted aye.
2005 State Acts Affecting Purchasing: Mr. Kent explained he had contacted the City Attorney who had not responded back, regarding reverse auctions. He stated he was not sure if this procedure would be advantageous to Jonesboro because a lot of the local vendors did not have accessibility, and recommended it for the future. Mr. Kent was asked to report back once he had obtained legal opinions on several 2005 State Acts either from the City Attorney or an outside source.
MAYOR’S OFFICE
Human Resources - Employee Committee Requests: Ms. Hackney provided a want list from city employees and explained she was working on a spread sheet regarding vacation time for non-uniform employees. Councilman Farmer requested Ms. Hackney provide the turnover rate per department for the last two years, excluding illness and/or death. She explained to increase vacation time from 10 to 15 days at one day per year it would involve 1584 additional hours. She asked that committee members review the information provided, and she would have the remainder of the information available by the next committee meeting. Councilman Perrin asked about the new Employee Handbook for purposes of comparison. Ms. Hackney stated she had not had time to prepare a new Employee Handbook, but the current data had been provided.
Job Descriptions : Ms. Hackney stated the position of Grants Coordinator will have to be re-evaluated, and as of yet has not been filled. She explained Mr. Copeland was originally hired as the Grants Coordinator, but his title was changed leaving the position vacant. It was also explained the budget called for the position of Assistant Grants Coordinator which is now the Grants Coordinator which contain duties that are no longer in the current job description. Ms. Hackney announced her new employee; Ms. Kathy Bishop would begin work August 1st.
Police Officer Pay Adjustment: Ms. Hackney explained when the payroll was entered the first of the year, a particular police officer’s pay was transposed and entered incorrectly as $38,208 when it should have been $32,208. She explained the police officer had agreed to pay the overage back using his vacation pay and comp time, but it was not enough to repay the full amount. She stated the officer wanted the remaining amount forgiven. Councilman Farmer questioned if this was the first time this had happened. Ms. Hackney stated it had happened before with another employee and they were still paying the amount back. Ms. Hackney was instructed to proceed with the policy already established.
Any willing provider laws: Ms. Hackney reported the “Any Willing Provider” law will go into effect August 19, 2005. Committee members requested a memo plus a meeting between the insurance provider and employees for the purpose of explaining the term “any willing provider”. Councilman Farmer requested a memo explaining the impact this will have on the bidding process.
INFORMATION SYSTEMS
Financial Software: Mr. Young provided a chart showing the implementation progress for Springbrook Financial Software. The chart showed completion with Accounts Payable, Budget, Chart of Accounts, Collections Privilege Licenses and walk-ins, Payroll, and Purchasing. Mr. Young reported the Fleet Maintenance and Code Enforcement would not be completed till November. When asked what percentage had been paid toward the total contract, Mr. Flowers responded 90%. It was recommended that no more be paid until the project is complete.
ECON. & COMMUNITY DEVELOPMENT
Proposed Renovation of Fire Station at Caraway/Matthews for Community Development /Transit Center: Dr. Copeland explained Mayor Formon, and Councilman Perrin had requested consideration be given to utilizing the Caraway/Matthews Fire Station as the Community Development/Transit Center. He stated they would have to construct a structure to house five buses. It was explained the area was being designed to accommodate the closing of Caraway Road if it became necessary, but it was believed there would be a dead end up to the railroad tracks due to the Wendy’s Restaurant location. The cost of renovation was estimated between $219,000 and $230,000 with $325,000 being budgeted utilizing 80/20 matching funds.
Phase II Patrick Road Sewer Project for CDBG: Dr. Copeland explained one property owner was holding out for the purchase of an easement, and while the easement was needed, Mr. Hardwick’s recommendation was not to it because none of the other easements were purchased. Dr. Copeland explained he was seeking legal advice from City Attorney Crego.
2006 Changes for CDBG: Dr. Copeland explained past performances were entered at the end of the year, but new HUD requirements approved projects at the front end based on their specific criteria. He explained this was a more stringent process for CDBG projects. He announced a CDBG Advisory meeting for August 8, 2005 for the purpose of reviewing new projects.
City Clerk - Line Item Transfer - Councilman Perrin moved, seconded by Councilman Street authorizing a line item transfer of $32,700 to account number 232, Fixed Assets of the City Clerk’s budget. It was explained the Records Management Committee had recommended the transfer of funds, and a list of the fixed assets was provided as well as the estimated cost for each item. All voted aye.
OTHER
Fire Department - Addition of Secretarial Position: Councilman Dover moved, seconded by Councilman Perrin to place on the agenda an ordinance for the addition of a full time secretarial position for the Fire Department. Mr. Keller was asked to include the emergency clause in the ordinance. It was explained the position was currently a 38 hour temporary position with no benefits. Chief Keller stated it was necessary to have the position filled and requested it be made full time with full time employee benefits. It was explained more positions will be requested for the 2006 budget. All voted aye.
Fire Department - 2005 Pierce Pumper Truck: Chief Keller explained since the decision was made to purchase the truck rather than going with a lease/purchase option, the budgeted amount would role over into the 2006 budget and be paid for next year when the vehicle was finished. Mr. Steve Kent, Purchasing Agent stated the purchasing manual requires fixed assets coming in over budget be approved by the full council before a purchase order can be issued. Councilman Perrin moved, seconded by Councilman Hargis accepting the bid and recommending it to the full council. All voted aye.
Sanitation Department - Recovery Recycle System for Freon: Councilman Dover moved, seconded by Councilman Hargis to accept the staff recommendation to use surplus funds for the purchase of a Recovery Recycles System for Freon in vehicles. All voted aye
County Health Department Property: Councilman Farmer explained no information had been provided at any of the committee meetings regarding the transfer of property to Craighead County for the County Health Department. He explained the legal description needed to be obtained and the proper legislation drafted for placing it on the agenda for a recommendation by the full city council.
ADJOURNMENT
With no further business, Councilman Perrin moved, seconded by Councilman Hargis to adjourn the meeting. All voted aye.