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Minutes from the Finance Committee meeting on August 19, 2004.
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Finance & Administration Committee Minutes
Thursday, August 19, 2004
4:00 p.m. - Huntington Building
Members Present: Alec Farmer, Bill Roddy, Darrel Dover, Jim Hargis, and Harold Perrin. Members Absent: Ann Williams. Others present were: Dr. Charles Coleman, Keith Inman, Jonesboro Sun, Human Resources Director Suzanne Hackney, Finance Director Larry Flowers, and Becky Sharp, Grant Coordinator Jim McKinnon, Parks Director Jason Wilkie, Alan Young, Info Systems, and Royce Leonard, Sanitation Director.
MINUTES
Councilman Perrin moved, seconded by Councilman Hargis for approval of the July 15, 2004 committee minutes. Councilman Dover clarified a point saying he had asked Mr. Steve Kent, the Purchasing Agent to provide bids for leasing and for purchasing the copy machines. Copies were made available to all who were in attendance. All voted aye.
FINANCE
Change Order Ordinance - Councilman Dover moved, seconded by Councilman Roddy to recommend to the full council an ordinance authorizing the Mayor to approve Change Orders for construction contracts and/or repairs up to a limit of $10,000. All amounts above $10,000 require Council approval. All voted aye.
Copy Machines - Councilman Dover moved, seconded by Councilman Hargis to accept the staff recommendation to purchase four copy machines for the following departments: City Hall, Police, Fire, and City Clerk. The list of companies provided were: Ikon, Danka, Ark. Copier Center. Purchasing Agent, Steve Kent was not in attendance but had provided a summary sheet making the recommendation to purchase over leasing the machines. All voted aye.
Financial Software - Mr. Flowers explained they had ranked the top four companies: CUSI (Intuit Fundware), Springbrook (Prosoft), Tier, and Main Street. Mr. Alan Young, Information Systems Director stated he wanted to have the top two ranked companies in for a second demonstration. Discussion was held regarding the bid process verses Professional Services for the financial software. Mr. Flowers explained he had spoken with Legislative Audit and with the City Attorney who both agreed the Council could make a selection based on price and decide to waive competitive bidding. Mr. Flowers and Mr. Young were asked to get a 5 year maintenance contract and compare apples to apples and be prepared to offer a recommendation to the committee at its next meeting.
TIF Criteria - The decision was made to call a public hearing with individuals having expertise in establishing redevelopment districts. The individuals suggested to be contacted were: Attorney Tim W. Grooms, City Attorney Crego, and the Arkansas Municipal League. Councilman Farmer stated he had provided a list of proposed TIF criteria to various developers and has asked for their input. He explained the only comments he has received was from Finance Director Larry Flowers and City Clerk Donna Jackson.
Landfill - CCSWDA Option & Negotiation - Councilman Farmer explained a proposal has been given to the Craighead County Solid Waste Disposal Authority’s Finance Committee regarding acceptance of Jonesboro’s Class IV waste. Councilman Farmer stated he would make a courtesy call to Mr. Rick Wyatt, Chair of the CCSWDA Finance Committee to see if more information needed to be provided. Mr. Royce Leonard stated he had some information regarding the negotiations, but would provide it at a later date.
Dedicated City Fund for Fixed Assets and Equipment - It was explained there is a ½ cent sales tax dedicated for Capital Improvements primarily for streets and drainage, but there is no such fund for large ticket items such as fire trucks. Councilman Perrin stated the new software would show projections of all fixed assets. Councilman Roddy suggested taking the cost of equipment and set it up on a depreciation schedule. Councilman Farmer explained the useful life of some equipment may defer from its depreciation. Committee members were asked to consider dedicating a source of revenue specifically for fixed assets, and be prepared to discuss it at the next committee meeting.
Property Insurance - It was explained that the Purchasing Agent looks at the property insurance every year and determines APERMA is the best deal for the City of Jonesboro. Questions followed regarding when is this done and is it bid out. It was determined there are two major sources for this type of market, APERMA and the Arkansas Municipal League. Mr. Flowers was asked to have Mr. Kent make a recommendation to the committee. Mr. Royce Leonard, Sanitation Director informed the committee that manufacturers are already charging a 6% increase on vehicles, equipment and replacement parts and this should be a consideration when looking at price.
AUDIT
Legislative Audit Update - Mr. Flowers reported Legislative Auditors had completed the field work but there was nothing to report until the final report has been issued. He expected the final report in a couple of months. Councilman Perrin recommended the Chairman of the Finance Committee be included in the exit interview process. Mr. Flowers responded saying Legislative Audit has determined that the exit interview is not subject to Freedom of Information, therefore is a closed meeting to the press, but if an Alderman and Mayor meet it then becomes subject to F.O. I. laws.
Street Department Equipment Inventory - Mr. Flowers reported that Mr. David Eagle had been out of the office for training purposes, and has located 125 items of the 207 inventory list provided by Purchasing Agent, Steve Kent. He explained it should be completed by the next committee meeting.
BKD Audit (Parks and Sanitation/City Property Recommendation - Mr. Flowers provided a written recommendation for the City of Jonesboro Real Property Listing and Deeds. The recommendation explained that effort had been made to satisfy the audit findings that states the City did not maintain an adequate and complete record of the City owned land, and as a result of a meeting held July 23rd it was recommended that due to limited personnel resources and real estate expertise, that a qualified individual be engaged on a contractual basis to provide the listing and deeds required in the audit finding. Councilman Farmer explained $50,000.00 had been appropriated for Baird, Kurtz, and Dodson (BKD) to conduct an audit of the Street, Parks, and Sanitation Departments, and after completion of the Street Department audit, $30,000 remained of the appropriated funds. He further stated the nature of the Sanitation Department may be changing due to the Landfill, and suggested that we contact a local title company to do a title search and identification of city owned property. It was suggested that it could be paid for using ½ the remaining audit funds and wait to do the Parks audit until the cost for the title search and property identification is known. Councilman Dover questioned the process up to this point, and was told that was the purpose of the called meeting held July 23rd. It was determined that the work was not getting done due to lack of expertise and staffing. Councilman Perrin moved, seconded by Councilman Dover to have Finance Director, Larry Flowers contact local title companies for the purpose of making a recommendation to the committee regarding the scope of work and cost by the next Finance and Administration Committee meeting. All voted aye.
INFORMATION SYSTEMS
Information Systems Policy and Procedures - This item was pulled from consideration. The policy had been amended and the Mayor and committee members were asked to review the document.
Information Systems Audit - It was explained that this was the first time Information Systems had been audited. The findings mentioned by Mr. Alan Young were security concerns, Permits and Financial Software, and Disaster Recovery Plan. It was explained that Disaster Recovery pertains to weather, and terroristic threatening. Councilman Perrin stated it requires expertise and recommended hiring outside help for a complete risk assessment. He explained questions needed be asked regarding backup of City records and placement of the City’s server should we be faced with a disaster. Committee members were told they could have a copy of the draft report, which is not subject to F.O.I.
HUMAN RESOURCES
ADA Update - Ms. Hackney reported Township Builders would finish their work in the parks this week and be $6,000.00 under the estimated price. However work being done in the downtown area by Barber Concrete and at Joe Mac Campbell Park by Meadows Construction has not begun. It was explained the deadline is in September for both projects and both contracts contain a penalty clause of $50.00 per day. Ms. Hackney stated due to grant funds the City may not be over the $200,000 limit on ADA projects. She explained Attorney Ralph Ohm was trying to meet with the judge in order to request an extension.
City Planner Applications - Ms. Hackney was asked to send the applications to the following committee members: MPO Chair, Joe Horsley; MAPC Chair, Ken Beadles; Personnel Subcommittee Chair, Harold Perrin; Planning Subcommittee Chair John Street; and Mayor Hubert Brodell or Aubrey Scott. Councilman Perrin requested the members be emailed and a date set for the meeting. He also requested Ms. Hackney to do her research in order to make recommendations to committee members for eliminations.
Health & Dental Insurance - Ms. Hackney reported the bids with Blue Cross Blue Shield and with Delta Dental were negotiable for 2004 and 2005. It was recommended that Mayor Brodell negotiate with both companies and provide a recommendation by the next Finance Committee meeting. It was understood that if the negotiations failed then it could be bid out. Councilman Perrin moved, seconded by Councilman Dover to authorize Mayor Brodell to negotiate with Blue Cross Blue Shield and with Delta Dental and to provide a recommendation at the next committee meeting. All voted aye.
Glenn Batten Update - Ms. Hackney reported that Attorney Ralph Ohm had written Mr. Batten’s attorney, Mr. Glenn Long asking for closure of the appeal request, and suggesting a date be set for August or September. Attorney Long responded back saying August was out of the question because he was not free, but he would contact Mr. Batten about September. Ms. Hackney explained she was unsure if Mr. Batten wanted an appeal hearing or not, but if one is held it would be in September.
GRANTS
Sidewalk Grant Update - Mr. McKinnon reported Knish had pretty well finished the grant sidewalk program and a final punch list had been sent out by Engineer John Easley. Mr. McKinnon reported the amount would probably be decreased because they were unable to finish some of the projects. He explained he and John Easley would try and finish up this week.
Grants 2003 Audit - Mr. McKinnon reported the audit done by Freeman and Company Inc. had been sent to HUD, and contained no findings. He explained in eight years of being audited by Freeman and Company there have been no findings. Mr. McKinnon stated the Arkansas Legislative Audit is also conducting an audit, but had no information to report at this time.
Police & Other Grants - Mr. McKinnon provided a written response regarding questions raised at a Public Safety Committee meeting as well as a City Council meeting pertaining to the grant application process. Questions were raised regarding the best approach to applying for various grants in different departments. It was debated if someone in each department should be applying for grants, or if it would be better to form a consortium between the City, County, and ASU. Mr. McKinnon stated he administers the CDBG Program; Responsible for the MPO program; Administers the Highway Grant for 2002 sidewalk improvements; and several parks grants in cooperation with Parks Director Jason Wilkie; and is designated to review all grants. He explained due to time constraints preparation of other grants is not possible. Mr. McKinnon provided four possible concepts for the committee to consider 1. Hire a grant writer to work in the grants department. 2. Each department could apply for and administer their individual grants. 3. Allow the Grant Department to outsource on a per grant basis. 4. Do nothing at all. Mr. McKinnon in summary, recommended additional staffing and funding for the Grants Department, and that the writing of grants, research and administration of grants be done by the Grants Department. He explained even though the funding for additional staffing would be paid for by the City of Jonesboro, the position would pay for itself. Councilman Perrin explained to hire an additional in-house grant writer would be expensive and recommended checking with Dr. Les Wyatt President of ASU about developing a consortium. He stated typically grant writers get a percentage of the grants they are able to secure for their clients, and usually money is not provided on the front end. Councilman Perrin stated he and Mayor Brodell had spoken to a grant writing firm out of Little Rock and offered them as an example. Councilman Hargis stated he and Mr. McKinnon understood it would cost approximately $45,000 to employ an in-house grant writer, but Ms. Hackney, Human Resources Director stated in working with the salary survey for the grants department, most cities out source grant writers. Councilman Farmer asked the question, does it cost more to administer a $500,000 grant, opposed to a $30,000 grant. Mr. McKinnon responded saying yes it would cost more, depending on what you do with the money. Councilman Farmer questioned who sets the priority for grants that are applied for. Mr. McKinnon stated he and Mayor Brodell set the priority for grant applications. It was explained that no department should be left out of the grant application process, and Mr. McKinnon was asked if he coordinates all grant applications. Mr. McKinnon responded saying supposedly he does. Councilman Roddy explained Police and Fire in the past had applied for grants and the City got in trouble because of it. It was determined that Jonesboro needs to be applying for all the grants available and no department should be excluded. It was further determined that the Grants Coordinator should coordinate all grants, but not get so bogged down with the details that grants are not applied for. Councilman Perrin explained there is no Director of Grants, and Mr. McKinnon’s job description has changed over the years. Mr. McKinnon emphasized he was hired as the CDBG Grants Coordinator, but it has been internal city policy that all grants run through the Grants Department. He further explained not all grants have come through his department in the past. Discussion was held regarding the hiring of Randall Grant Writing and how it was later determined the City of Jonesboro had to accept whatever grants they provided. It was determined there must be a needs assessment done first, prior to outsourcing grant writing.
Fire Academy Training Center - Councilman Perrin explained that Mr. Bookout had gotten the City of Jonesboro $50,000 for the operation of the training center but it could not be used for salaries, and there is a possibility that the cost of salaries may have to be split between the City of Jonesboro (67%) and Craighead County (33%) for a total of $7,000.00. He explained Fire Chief Herring would be contacting the training academy and report back to the committee. Councilman Perrin had to leave at 5:45 p.m.
Demolition - Mr. McKinnon reported that he and Mr. Ron Shipley, Interim City Planner do not have a recommendation at this time due to their heavy work schedules.
Rehabilitation Grants - Mr. McKinnon provided information pertaining to Jonesboro’s eligibility to apply for state rehabilitation funds through the Arkansas Department of Finance and Administration (ADFA). The grant would be 100% funded up to $400,000 plus an additional $40,000 for administrative costs. The funds would be for home owner rehabilitation only. Mr. McKinnon also informed members of another $400,000 grant program that would allow for new construction up to $80,000, allowing low income individuals to occupy a new home. Mr. McKinnon recommended the grants be administered in-house by a consultant under the Planning and Inspections Department since city codes must be followed. Committee members were asked to review the information and be prepared to discuss it.
Allen Park Spray Pad Grant - Mr. McKinnon reported bids were postpone to the 31st and requested approval so it could be placed on the next City Council agenda. It was explained the money had already been appropriated in the 2004 CDBG budget. Councilman Dover moved, seconded by Councilman Roddy to recommend to the full council the bid meeting bid specifications contingent on it being within the 2004 CDBG budgeted amount. All voted aye.
OTHER BUSINESS
Roof on Huntington Building - Mr. Keith Sanders, Maintenance Supervisor explained two bidders participated for the roofing of the Huntington Building and both were hirer than anticipated. He stated the low bidder was Jonesboro Roofing at a cost of $51,957.00. He explained the shortage would be approximately $7,238.00 plus any replaced decking and maintenance of the building for the remainder of the year. Mr. Sanders suggested the cost could be off set by using a lighter weight shingle with a 20 year warranty. Mr. Aubrey Scott and Mr. Sanders recommended appropriating the additional funds needed and accepting the low bidder. Councilman Dover moved, seconded by Councilman Roddy to accept the staff recommendation to accept the low bid meeting bid specifications of Jonesboro Roofing at a cost of $51, 957.00. All voted aye. Councilman Roddy moved, seconded by Councilman Dover to accept the staff recommendation to appropriate $15,000 from the un-appropriated capital improvement fund for approval by the full council. All voted aye.
ADJOURNMENT
With no further business, Councilman Dover moved, seconded by Councilman Roddy to adjourn. All voted aye.