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Minutes from the Finance Committee meeting on June 22, 2006.
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Finance & Administration Committee Minutes
Thursday, June 22, 2006
4:00 p.m.
Members Present were: Darrel Dover, Alec Farmer, Jim Hargis, Harold Perrin, John Street and Ann Williams.
MINUTES
Councilwoman Williams moved, seconded by Councilman Street, for the approval of the minutes for the May 18, 2006, regular meeting as written. All voted aye. Copies were provided to all those in attendance.
ORDINANCES AND RESOLUTIONS
Ordinance for spatial study: Mr. Otis Spriggs explained the long-range committee recommended hiring Whittenberg, Delony & Davidson, Inc. out of Little Rock to conduct a spatial analysis of city government facilities. He added the committee has already done a preliminary inventory with the department heads and the work that’s already been done with be credited towards the fee for the spatial analysis. Mr. Spriggs noted City Attorney Phillip Crego has looked at and approved the contract. Chairman Farmer requested the ordinance be amended to read “in an amount not to exceed $40,000” instead of reading “in the amount of $40,000.” Questions were also raised concerning several phrases in the contract. Councilman Perrin noted in Section 7.2 discussing Reimbursable Expenses, it states “Reimbursable Expenses are in addition to the Architect’s compensation” meaning the reimbursable expenses could cause the City to pay more than $40,000 for the work. It was requested to amend the contract to read “Reimbursable Expenses are included in the Architect’s compensation…” Mayor Formon also questioned the list of departments in Article 1. He noted it did not list the Street and Sanitation Departments. It was also requested to amend the contract to list every department, including Street and Sanitation, plus break down the Administration to specifically list Mayor’s Office, City Clerk and City Attorney. Police Chief Michael Yates added the list needs to include City Council chambers as well. Councilman Perrin motioned, seconded by Councilman Dover, to approve the ordinance and contract with the changes and recommend it to the City Council. All voted aye.
Ordinance on tobacco free work place: Ms. Suzanne Hackney explained starting July 21 the Arkansas Clean Air Act will prohibit smoking in all City-owned or leased equipment, vehicles and buildings owned by the City. She further explained this ordinance will also amend a previous non-smoking policy so that all forms of tobacco are prohibited by the ordinance, including cigarettes and chewing tobacco. Ms. Hackney noted the ordinance also states smoking areas will be designated by the Mayor and will have to be at least 25 feet from any building entrance. She added the City fine is $25 to $100. Councilman Street motioned, seconded by Councilman Dover, to approve the ordinance and recommend it to the City Council. All voted aye.
Ordinance moving Code Enforcement to Police Department: Ms. Hackney presented the committee with an ordinance to move the Code Enforcement Department under the supervision of the Police Department. Councilman Dover motioned, seconded by Councilman Hargis, to approve the ordinance and recommend it to the City Council. All voted aye.
Ordinance amending budget and pay plan to change the HR Secretary position to HR Tech: Ms. Hackney explained the current HR Secretary is doing all the same responsibilities as an HR Tech. She presented an ordinance eliminate the HR Secretary and create another HR Tech position. She added the change in payroll will increase by $2,875.74. Ms. Hackney also explained if she does want an HR Secretary she will have to put that position back in the budget. Councilman Dover motioned, seconded by Councilman Street, to approve the ordinance and recommend it to the full Council. All voted aye.
Resolution for Old Fire Pension Plan benefits increase: Mayor Formon explained the firefighters have decided to drop the cost of living increase and just request the $300 a month increase per individual. He stated the increase will affect 56 firefighters and is affordable to the plan. Chairman Farmer requested the total monthly cost to the City, which would be an increase of $16,800 total, be added in the wording of the resolution. Councilman Dover motioned, seconded by Councilman Perrin, to approve the resolution with the total monthly cost being added to the wording and recommends the resolution to the full Council. All voted aye. Mr. Dan Melton added the increase is supposed to be retroactive back to January 1. Chairman Farmer expressed his appreciation to Councilman Dover for all the work he’s done to help.
Ordinance for Frierson and James sidewalks: Discussion was held regarding the project. Chairman Farmer noted the estimated cost of $85,000 is less than what previous estimates were. Councilman Dover motioned, seconded by Councilman Perrin, to approve the ordinance and recommend it to full Council. All voted aye.
Ordinance for road improvements to Matt, Briar and Alex Drives: It was explained Matt, Briar and Alex met the criteria that was previously passed by the City Council for the City to make improvements to the roads. It was added they looked at more streets, but they are looking into withholding permits until the developer’s make the needed improvements to the streets. Councilman Perrin questioned the future implications of the City finishing the roads. Mr. Teddy Hooton stated Matt, Briar and Alex were the worst cases he looked at, meaning they needed the most work and already had people living in the area. Councilman Perrin motioned, seconded by Councilman Dover, to approve the ordinance and recommend it to the City Council. All voted aye.
Ordinance to appropriate funds to the ADA Fund: Councilman Perrin motioned, seconded by Councilman Street, to approve the ordinance and recommend it to the City Council. All voted aye.
ADMINISTRATION
Status of deed identification for city real property: Mayor Formon explained the deed project is still ongoing with Fisher and Arnold. He added the project is expected to be completed in January or February. PENDING
FINANCE & AUDIT
Finance & Pension report: Mr. Larry Flowers presented the financial report for May, 2006. He noted some departments are over-extended in their O&M funds for this point in time of year. He also stated Ms. Rae Willis will be attending the July meeting, so he would like to discuss possibly re-allocating some of the pension’s funds.
Appropriation transfer request for Internal Auditor funding: Mr. Flowers explained he wanted to transfer some funds to use as operational money for the Internal Auditor that will starting next month. He stated the budget had a full year’s salary for the Internal Auditor, so the extra money in the payroll account can be used as operational money. The transfer would be $9,000. Councilman Perrin motioned, seconded by Councilman Street, to approve the transfer. All voted aye. Chairman Farmer asked for the department heads to provide the Internal Auditor with some information regarding their department. Discussion was held regarding when the Auditor would start. Councilman Perrin motioned, seconded by Councilman Street, to allow the Internal Auditor to start work on July 3rd, 2006. All voted aye.
Mid-year budget adjustments: It was asked to hold the discussion on the mid-year adjustments because there were still some questions that needed to be answered. PENDING
School safety grant approval request from the Jonesboro School District: Police Chief Yates explained the grant will be for schools to allow them to purchase security equipment. The grant is 50% matching, but the schools will be paying the 50% so the grant will be of no cost to the City. Sgt. Steve McDaniel added the grant has a June 30th deadline to apply. Chief Yates expressed concern over including Westside because of the schools geographic location, but he will be including them unless there’s something in the grant saying otherwise. It was asked who helps the Police Department take care of their grants. Ms. Gayle Vickers stated she does not work on the department’s grants because they’re federal. She added the Police Department usually takes care of their own grants. Mr. Tony Thomas stated he would be willing to help oversee the grant process with the Police Department if needed. Councilman Perrin motioned, seconded by Councilman Dover, to allow the Police Department to apply for the Secure Our Schools 2006 Grant, with the understanding the school district will be paying the 50% match and making sure all the federal rules and guidelines are followed. All voted aye.
2007 budget calendar: Mr. Flowers stated the earliest they could put something together in Springbrook would be August 1st. It was then questioned when the O&M budget would be ready. Mayor Formon explained the O&M budget should be ready about two weeks after the fixed asset budget is completed. PENDING
INFORMATION SYSTEMS
Phone system update: Mr. Alan Young informed the committee the new IP phones are up and running in City Hall. They are starting an inventory of the Justice Complex. He also explained the Community Development building would be included in getting the phones, but so far there are no plans for the Best building. Discussion was held regarding the Council member’s phone numbers on the IP system and how they can be used. The numbers will be used so people can leave messages and the messages can be checked several ways depending on how the Council members specify. PENDING
CDBG
Part-time CDBG Project Technician/JETS Designated Employer Representative (as required by Drug and Alcohol Plan): Ms. Vickers explained the part-time project technician would be used to make sure they are up to code. She added she wrote it as being a full-time employee because in the future she hoped to hire the person full-time. Ms. Vickers further explained the position will be handled like a project, so the position will be paid with $20,000 of project money. Mr. Joel Gardner added he will also be using the position to work as a designated employer representative as specified in their drug and alcohol program. The person will observe the transit bus drivers in any incidences that might occur with the buses and make decisions, such as whether the individual should be drug tested. Ms. Vickers explained the money to pay the person will be coming out of the project fund, not the administration fund. Ms. Hackney stated once the employee becomes full-time the person will need to be added to the pay plan. Ms. Vickers also explained the $20,000 will include everything that’s paid, including Social Security and Medicare. Chairman Farmer suggested Mayor Formon meeting with Ms. Vickers to discuss how the pay will be handled. Councilman Perrin stated the person will be on the City’s payroll, but will be reimbursed by CDBG. Ms. Hackney questioned whether they could amend the pay plan and just specify the position is part-time. Mr. Flowers stated before they can write a payroll check, they will need an appropriation ordinance to appropriate the $20,000. Ms. Vickers questioned whether she could get approval to place the ordinance on the agenda and then send the committee members the ordinance after she’s written it. Chairman Farmer explained they do not like to practice that way, so the ordinance will have to wait until next month. Councilman Dover questioned why an ordinance would be needed if the money for the project is already in the budget. It was asked for the Mayor to figure out how to handle the pay of the project technician and get back with the committee. PENDING
OTHER
JETS financial reporting: Mr. Gardner questioned how he can get money from the advertising sales to be able to spend it during the rest of the year. Mr. Flowers recommended that Mr. Gardner estimate the revenues for the rest of the year and record the actual revenues against the account as it’s made. It was also suggested for the JETS accounts be separate from the City’s, with the department doing their own accounting and other services. It was asked for Mr. Gardner to look into how the money is set up. Mr. Flowers stated in a perfect world, departments such as CDBG and JETS, as long as the City is taking care of the payroll the City will have to be involved. Mr. Flowers added the departments can look into buying financial software such as QuickBooks and handling their own accounts, but they would also have to take care of their own payroll in order to be separate from the City. Mr. Thomas stated since the City is accountable for the funds, so the City should be involved somehow. Councilwoman Williams added if something goes wrong with the grants, then the City is held responsible for it. Ms. Vickers stated CDBG is different from JETS because the City is the entitlement city. It was added MPO could be separate. Councilman Perrin stated someone needed to come back with the proper way the money should be handled.
JETS position change from Senior Driver to Driver Supervisor: Mr. Gardner explained he would talk with Mayor Formon about the position because it is being handled similar to the CDBG Project Tech.
Privatizing janitorial services: Mr. Keith Sanders presented the committee with a proposal for privatizing janitorial services for the Municipal Complex from ISS Facility Services. ISS estimated the yearly cost as being $24,312 to clean the Municipal Complex. Mr. Sanders stated that was lower than what they were expecting and lower than what the City is paying in part-time salaries. Mr. Sanders suggested testing one building at a time. It was asked for the committee to look over the information and discuss it more at the next meeting. PENDING
ADJOURNMENT
With no further business, Councilman Street motioned, seconded by Councilman Perrin, to adjourn. All voted aye.