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Minute from the Finance Committee meeting on March 16, 2006.
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Finance & Administration Committee Minutes
Thursday, March 16, 2006
3:00 p.m.
Members Present were: Jim Hargis, Harold Perrin and John Street. Councilman Dover arrived at 3:15 p.m. and left at 5:58 p.m. Councilwoman Williams arrived at 3:32 p.m. Councilman Farmer arrived at 3:35 p.m.
PRESENTATION
Legistar: Mr. John Cichon from Daystar Computer Systems, Inc. presented the committee with an online presentation of Legistar, their paperless agenda software. Legistar was first introduced in 1986 and is currently in its fifth version. In addition to making paperless agendas, Legistar also has web site access allowing users to connect to Legistar from any location as long as they have an internet connection. In its web site, the software will also list all of the cities boards and commissions including the City Council, as well as information and pictures for the people on them. The software also has an approval tracking module which will route the agenda items to the needed individuals (department heads, City Attorney, Mayor) before being placed on the agenda. It will allow users to see a history of items as well as easily search for items. It was questioned how much the software would cost the City. Mr. Cichon indicated he had previously quoted the City of Jonesboro at $50,000 for the software. Questions were raised concerning the maintenance of the software. Mr. Cichon explained three or four individuals already employed by the City would serve as administrators. It was also questioned whether the City’s size was used to calculate the amount of the software. Mr. Cichon stated a City’s size is the basis of the price of the software. It was also questioned what the range in size of cities are that use Legistar. Mr. Cichon explained the smallest town is under 10,000 people while the biggest client is Los Angeles County, California with over 9 million residents.
MINUTES
It was asked for the minutes of the February 16, 2006, meeting to be changed to reflect a 3.49% rate for the Banc of America master lease and option agreement. Councilman Hargis moved, seconded by Councilwoman Williams for the approval of the minutes for the February 16, 2006, regular meeting as amended. All voted aye. Copies were provided to all those in attendance.
GUEST SPEAKERS
Self-insured insurance: Mr. Bruce Osborne discussed the differences between self-insured and fully insured insurance. Mr. Osborne explained the big differences were self-insured companies save on their reserve money, have no premium tax and get to set their own rules since they are federally mandated, not state mandated. He further explained other than being fully insured or self-insured; the City of Jonesboro has the third option to ask for the reserve money back from Blue Cross Blue Shield. He added the City will still have to pay once the insurance is terminated, but until then the City would be able to put that money aside. Mr. Osborne noted that Blue Cross Blue Shield is the healthcare provider of choice and the City would receive the same discounts whether it was fully or self-insured through Blue Cross. He discussed aggregate stop loss policies which are approximately $15,000 per year. He recommended if the City does go to self-insured to hire an outside consultant to do the negotiations. It was asked how long the process would take. Mr. Osborne stated the process would take about six months. He stated his first recommendation is to ask Blue Cross for the reserve money back.
City appropriation for overpass: Mr. Jennus Burton, ASU Vice Chancellor for Finance & Administration, presented the committee with a proposal for the City to give ASU $1 million to help with the overpass project. Mr. Burton discussed the financing of the project and its timeline. He added the pricing estimate was given in May, 2005, which was before Hurricane Katrina and Hurricane Rita, so the current prices might be higher. He also discussed where the overpass would be and the possible detention pond. He stated that if the project goes over the $17.2 million with the detention pond addition, the City would have to pay the remainder. Mr. Burton explained he would like the City to give ASU $500,000 in January of 2007 and again in January of 2008 to help with the project. Councilman Hargis motioned, seconded by Councilman Dover, to recommend to full Council the donation to ASU for the overpass project. All voted aye.
Discussion was also held regarding land that could possibly house a new fire station. Mr. Burton recommended a piece of land by the State Police Department. He noted since that particular piece of property is state owned; the state may be willing to let the City put a fire department there. Mr. Burton added that a second option would be a piece of ASU-owned property by the Arkansas Services Center. He explained that ASU would be willing to help build a road on that land so there would be access to the fire station.
ORDINANCES AND RESOLUTIONS
PENDING Electronic Plat Submission: Mr. Alan Young stated Mr. Otis Spriggs, City Planner, indicated the ordinance was not fair in that it made people tie into the monument system, but he did agree with getting digital plats from the developers. It was questioned when the ordinance would be done. It was asked for Mr. Young to bring the ordinance back in two months. Discussion was held regarding who ties into the monument system and who doesn’t.
Frito Lay bonds: Ms. Ann Parker explained Frito Lay received approval from the Council in 2004 to take out $200 million in bonds. But, the company never did take out the bonds. Instead, they decided they’d rather take the bonds out in pieces as they’re doing work to the plant. Ms. Parker presented the committee with an ordinance asking for approval to take out $67 million in bonds mostly to improve their production line. The company anticipates an increase of 100 jobs in 2007. She noted the bonds do not cost the City any money; rather the company pays all the expense to take the bonds out. She added over the next ten years, Frito Lay will be using $200 million in bonds because they’re very pleased with the Jonesboro plant. Councilman Dover motioned, seconded by Councilwoman Williams, to recommend to full Council the approval of $67 million in bonds for Frito Lay. All voted aye.
Amendment to Joe Tomlinson’s contract: Ms. Suzanne Hackney explained Mr. Joe Tomlinson is now working part-time and his contract needs to reflect the decrease in hours. She added he no longer has a City cell phone. Mayor Formon further added Mr. Tomlinson is no longer using a City vehicle. It was asked for Ms. Hackney to amend the contract to reflect Mr. Tomlinson no longer using a City vehicle. Councilman Dover motioned, seconded by Councilwoman Williams, to approve the contract for Mr. Tomlinson with the amendment. All voted aye.
Creation of the Electronics Technician position for the Police Department: Police Chief Michael Yates explained the department is currently contracting out its electrical work and could save money by hiring the individual full-time. He noted the money for the position is already in his salary budget because of officer vacancies. Discussion was held regarding what other departments could use the person and how much money could be saved in those departments. Councilman Dover motioned, seconded by Councilman Street, to approve the position of Electronics Technician in the pay plan. All voted aye.
ADMINISTRATION
PENDING Status of deed identification by Mr. Vic Young for City real property: Mr. Young explained the project is ongoing, but he’s unsure of the delivery date. He stated the project should be completed next year. It was asked for Mr. Young to get a scope of work and time frame from Fisher and Arnold.
HUMAN RESOURCES
PENDING Firefighter pay: Ms. Hackney explained Mr. Condrey would like to stop by and meet with Mayor Formon regarding the firefighter pay. She stated Mr. Condrey will be in Pine Bluff next month and could stop by Jonesboro around that time.
PENDING Elected officials survey: Ms. Hackney stated she is still receiving information regarding the survey. She decided to get separate information regarding benefits. The information is coming in slowly.
PENDING Pension multiplier: Chairman Perrin explained that Ms. Rae Willis indicated it would cost $898 for an actuary to determine what the cost would be to increase the benefit formula and would take about a month. Councilman Dover motioned, seconded by Councilwoman Williams, to pay the $898 for the actuary. All voted aye. Chairman Perrin also stated he was told the actuary would be done by April 19 and recommended moving the April meeting to the 19th. It was agreed to move the April meeting. Chairman Perrin asked Mr. Larry Flowers to take care of the actuary and to make sure it will be done by April 19th.
PENDING Secretary for Planning Department: It was explained the secretary position was taken out of the 2006 budget. The cost of the position would be $24, 523. Councilman Dover motioned, seconded by Councilman Hargis, to approve the Secretary position for the Planning Department. All voted aye.
Internal Auditor process: It was explained 15 applications has been received. Chairman Perrin recommended having the Council members pick their top four or five candidates, then the Finance committee screen them. After that, the full Council can interview the applicants.
Arkansas Diamond Plan: Ms. Hackney explained the City’s voluntary 457 plan is through the Municipal League, through CitiStreet. The Municipal League found out the state Diamond Plan could piggy-back on the 457 plan. The Diamond Plan has fewer fees and has more options. Councilman Dover motioned, seconded by Councilman Street, to approve the change to the Arkansas Diamond Plan. All voted aye.
Pre-paid legal services: Ms. Hackney recommended passing on the pre-paid legal option.
Air Evac membership for City employees: It was questioned how many employees would take part in the membership. It was asked for Ms. Hackney to look into the rates of a voluntary plan and bring more information back next month.
Discussion was held regarding the 875th battalion that has recently been put on alert, meaning they could be deployed in the near future. Ms. Hackney stated 12 City employees are part of the battalion. She asked what would be done with those positions while the employees are overseas. It was explained Ms. Hackney could hire people to fill the positions while the officers are gone, but when the officers come back they would get their jobs back as well.
INFORMATION SYSTEMS
PENDING Financial software update: Mr. Young presented a report of what has been paid to Springbrook. He stated everything is in line with the contract. It was asked for Mr. Young to come up with a list of options, like direct deposit, that are available to the City using Springbrook. Chairman Perrin also noted the computer policy needed to be looked at and passed before the other options are explored with Springbrook.
PENDING Fleet software: Mr. Young noted he has the software, but it’s in the training is pending. They are figuring out how to best handle the training. It was questioned how much the training would be. Mr. Young indicated he should have enough in his training account to pay for it. The other module is simpler and should be able to be implemented without an on-site visit. The software is in the final stage of testing and should be ready for implementation in a matter of days. Mr. Young stated they are unsure whether the maintenance crew should be trained on the software or not.
FINANCE & AUDIT
PENDING Request from A&P Commission for an audit of 2004 tax remittances: Ms. Becky Sharp stated from her research, the City’s hotels and motels paid the correct amount of taxes to the City in 2004. She noted the current cap is 3% and the City may want to consider raising that. She also explained she’d like to start having the forms notarized to make sure the right person is signing the form.
PENDING Firefighter’s pension funds: Mr. Flowers explained he requested the actuarial study on February 21st. The study will take 6-8 weeks to complete. Mr. Flowers indicated he is going to contract them and ask about a projected completion date.
PENDING Privilege license update: Ms. Sharp stated she’d like to redo the classifications and fees. Questions were raised concerning what the enforcement is if a company does not buy a privilege license. Ms. Sharp explained she can take them to court, or even publish their names in the paper in July. She added she is also contacting other cities about their fees. It was asked for her to bring a recommendation to the committee concerning classifications, fees and enforcement.
Councilman Hargis questioned whether Ms. Sharp had a list of all the parking spots in the downtown area. Ms. Sharp stated she did not have the list now, but she’s working on it.
Discussion was held regarding the change to quarterly financial reports at the City Council meetings. It was asked for Mr. Flowers to still send the monthly reports to the Council members, even though he will only be presenting a report every four months. Discussion was then held regarding Mr. Young making reports as demanded and the use of Springbrook online.
OTHER
Bids for fencing, Jason Wilkie: Councilwoman Williams motioned, seconded by Councilman Farmer, to approve the fencing for the softball fields. All voted aye.
Discussion was held concerning contracting the mowing. Councilwoman Williams explained the Public Services committee decided to wait until next year to bid out the mowing.
ADJOURNMENT
With no further business, the meeting was adjourned.