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Minutes for the Finance Committee meeting on June 7, 2005.
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Finance & Administration Committee Minutes
Tuesday, June 7, 2005
12:00 p.m. - Mayor’s Conference Room - City Hall
Members Present: Darrel Dover, Jim Hargis, John Street and Harold Perrin. Councilman Farmer and Councilwoman Williams were unable to attend. Others present were: Mayor Doug Formon, City Clerk Donna Jackson, staff, and media. Councilman Perrin presided over the meeting in the absence of Chairperson, Farmer.
FINANCE AND AUDIT
Defined Benefit Plan: Councilman Perrin moved, seconded by Councilman Dover to instruct Mr. Flowers to get a second quote from Principal Financial and proceed on with allowing Principal to make investment decisions for the City of Jonesboro. Councilman Hargis requested the credentials, experience, and track record of the individual/s making the investment recommendations. Mr. Flowers was asked not to move the money just yet, but rather wait for a recommendation from the Finance Committee, since they would be reviewing it on a monthly basis. It was explained while the cost floats with the amount of investment; the cost was expected to run about $3,600, the amount of the original quote. Concerns had been previously expressed regarding the City’s liability should they determine investment of the 4.2 million dollars. All voted aye.
Franchise Fees: Mr. Flowers reported letters had been sent out to various businesses, trying to identify who would be subject to franchise fees. He stated not all the letters had been responded to, and it was unclear who the businesses are. Councilman Perrin recommended downloading the State Department of Finance and Administration list and comparing to what licensing records the city has. Discussion was held regarding how to implement the franchise fee once the businesses were identified. It was determined if the payments were done in incremental payments, then every year the process of notification and negotiation would have to be followed. Other aspects were also considered, such as the consumer bearing the cost of the increase, and when the increase would be implemented. Councilman Perrin recommended representatives of the various companies be contacted, and meetings to be scheduled in order to begin communications for this process.
APERM/AML Comparison: Purchasing Agent, Steve Kent announced APERMA would be at the next regularly scheduled Finance Committee meeting to discuss their legal defense plan. He stated they were unable to attend the last committee meeting due to the meeting time being changed. The Finance Committee had requested a comparison of APERMA and the Arkansas Municipal League, showing “apples to apples” however Mr. Kent stated APERMA would be the only company addressing the committee at the next regular meeting.
Freeze on Fixed Assets: Mr. Flowers questioned if Department Heads could be notified of the freeze being lifted on fixed assets due to consideration of a resolution pertaining to criteria of the Capital Improvement Fund. Discussion followed as to whether or not the freeze was lifted on fixed assets. It was determined the issue was moot due to the fact bidding could start since it would be after July first when the bills would come in. Mr. Flowers was asked to have the Purchasing Agent to consider the Lease/Purchase option for all items over $250,000 and prepare a spread sheet on the pros and cons of doing a lease/purchase. It was recommended, in the future a resolution be adopted when action of any kind is taken by the City Council or Administration.
2003 Legislative Audit: Mr. Flowers stated no response was needed to the 2003 audit regarding Information Systems and city owned land, since the City had indicated they would take appropriate action on these matters, and because Information Systems had offered an action plan. Mr. Flowers stated all that was needed was acceptance by the City Council in the form of a resolution. Councilman Dover moved, seconded by Councilman Hargis to recommend a resolution to the full council at the second meeting in June regarding the findings of the 2003 Legislative Audit. All voted aye.
Life Insurance vs. Employee Beneficiary Benefit in Defined Plan: Councilman Dover moved, seconded by Councilman Street to accept staff recommendation to let bids for life insurance policy for the Defined Benefit Beneficiary Plan. All voted aye.
Direct Pay/Deposit: Councilman Perrin moved, seconded by Councilman Dover to have Mayor Formon research the matter and make a recommendation back to the Finance Committee. Discussion was held regarding how to get to the point of paying a week in arrears, over time expenditures, and if employees want direct deposit. Mayor Formon was asked to report back to the Finance Committee regarding how to implement the plan without undo hardship on the employees. All voted aye.
INFORMATION SYSTEMS
Mr. Alan Young, Director of Information Systems reported he currently does not have a schedule for Springbrook’s implementation. He explained they were reworking the schedule hoping to provide for a second trainer. Councilman Hargis questioned the payment schedule for Springbrook and was told by Mr. Flowers they implement a phase of the work and are paid for the implementation. Discussion was held on the progress of the work and it was determined Springbrook was behind in its schedule. Mr. Young stated the reason they are behind was due to Springbrook running low on trainers and the City of Jonesboro having a complex system. Councilman Hargis again questioned the last time Springbrook was paid and how much was paid to them. Mr. Flowers and Mr. Young stated they had not brought the information with them. Purchasing Agent, Steve Kent was asked to go get the vendor information from downstairs. Several committee members requested a calendar showing the scope of work to be done and the amounts paid for the various Information Systems projects. Concern was expressed for paying for work the City may or may not be getting. It was explained the bulk of the cost for Springbrook was for licenses with most of the work being the set up, and the final phase being the training. Mr. Young was asked to have the scope of work and payment information available at the next committee meeting.
CDBG
Mr. Paul Copeland provided the monthly CDBG report for April, listing several projects that had been completed or near completion. He stated the sewer project on Patrick and Greensboro Road Phase I was complete, and were preparing the bids for Phase II. Questions were raised regarding the concession stand at Allen Park on Race Street and it was explained the project was currently on hold. Discussion was held regarding the poor appearance of Allen Park and the landscaping needs. It was explained the deadline for the skate park and walking area was August 31st, 2005 or the funding would be suspended by the State. Mr. Copeland provided a spreadsheet stating he was 99% sure it contained all the various grants throughout the City of Jonesboro, and explained a coordinated effort was being made to have all grants go through his department. Mr. Copeland also reported he had working with Mark Young who is with the Center for Economic Development and others for a consortium effort with ASU.
New Phone System: Mr. Young explained Ritter was the only bidder, since Optus missed the deadline for placing a bid, and he would be working to reconfigure the proposal in order to drop the price from $225,000.
Transfer of Funds - Renovation of City Hall: Councilman Dover moved, seconded by Councilman Street to accept the Mayor’s recommendation to transfer $30,000.00 from the Justice Complex for the renovation of City Hall. Mayor Formon explained Mr. Hardy Little provided an estimate of $25,000 for the following work: Sound Barriers, removal of the top of the bank-teller’s window, creation of a reception area, painting and wood work, and cabinets. All voted aye.
MINUTES
Councilman Dover moved, seconded by Councilman Hargis for the adoption of the May 26, 2005 minutes as provided. All voted aye. Copies were made available to all in attendance.
ADJOURNMENT
With no further business, Councilman Dover moved, seconded by Councilman Hargis to adjourn the meeting. All voted aye.