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Minutes for the Finance Committee meeting on January 27, 2005.
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Finance & Administration Committee Minutes
Thursday, January 27, 2005
4:00 p.m. - Huntington Building
Members Present: Alec Farmer, Darrel Dover, Jim Hargis, Harold Perrin, and John Street. Councilwoman Williams was unable to attend. Others present were: Mayor Formon, Donna Jackson, City Clerk, Phillip Crego, City Attorney, staff and media.
MINUTES
Councilman Perrin moved seconded by Councilman Dover for the adoption of the minutes for December 16, 2004 and for a budget meeting December 31, 2004 as provided. All voted aye. Copies were made available to all in attendance.
SELECTION OF COMMITTEE CHAIR & SUBCOMMITTEE CHAIRS
Councilman Street moved, seconded by Councilman Hargis to appoint Councilman Farmer as the overall chair of the Finance & Administration Committee. All voted aye.
Councilman Dover moved, seconded by Councilman Perrin to appoint the following council members to the following subcommittees:
Finance & Audit Alec Farmer
Purchasing & Property Insurance John Street
Pensions & Employee Insurance Darrel Dover
Legal & Records Ann Williams
Personnel & Info Systems Harold Perrin
Grants & Industry Jim Hargis
All voted aye.
ORDINANCES & RESOLUTIONS
2005 Budget Amendments: It was explained the “Clean Up” ordinance on the February 1, 2005 City Council agenda will show an increase in Capital Improvements and a decrease in Operations & Maintenance; with an unprojected deficit for 2004 due to unexpected expenditures. It was explained that in the 2005 budget there were sales tax transfers to the Street Fund and E911 Fund which are restricted funds, and once money is placed in those accounts the money must stay with those accounts. The decision was made to amend the budget to not put the sales tax transfers into the Street Fund and reduce the E911 fund. This would provide $400,000 for Operations & Maintenance which would off set the deficit. Mr. Flowers stated he had spoken with Mayor Formon and recommended further amending the 2005 budget to immediately remove the freeze on purchasing new fixed assets. Councilman Perrin moved, seconded by Councilman Dover to recommend the “Clean Up” ordinance to the full council with the additional amendment to remove the freeze on new fixed assets. All voted aye.
Lenders Title Contract - Councilman Perrin moved, seconded by Councilman Dover to recommend an ordinance to waive competitive bidding engaging Lenders Title Company to identify all city-owned real property with a range of $50.00 to $275.00 per document with a cap of $15,000.00. All voted aye. Mr. Flowers explained the exact amount could not be determined until the number of parcels is known, but explained the original estimate provided by Ms. Melissa Houston of $50,000 would be substantially less according to Mr. David Gates of Lenders Title Company.
General Ledger Accounts - Mr. Flowers stated State Auditors had requested the City to recognize the activity, both revenues and expenditures, in the Fund Balance Reserve Accounts with a “clean up” ordinance. He explained there are approximately four million dollars in general ledger account expenditures that are just now being appropriated. He recommended bringing the bills for these expenditures to the Finance Committee for their approval. Councilman Perrin stated the expenditures are approved with the adoption of the budget; however Mr. Flowers explained the GL Accounts are not part of the budgeted funds. He further explained some are escrow accounts and they have no way of predicting the amount. Councilman Dover expressed concern for approving bills after the fact and spending tax payer dollars prior to exhausting the GL Accounts. Councilman Farmer explained it was a technicality, because without the GL Accounts being provided for in the budgeting process, the City Council has not approved the expenditures and therefore money is being spent without approval of the governing body as required by law. Mr. Flowers was asked to research the matter and make a recommendation for providing this information in the budget.
APERMA & Arkansas Municipal League property insurance: It was explained this agenda item would remain on the Finance and Administration Committee agenda so there would be no excuse for not having the property insurance bid out by the October 1st deadline as established by motion in the January 4, 2005 Public Works Committee meeting.
City Property List & deeds: It was explained the lobby vault was being cleaned out in order to provide space for vital city records and in the process several un-filed original deeds had been discovered and given to the City Clerk. One such deed was for two lots in Layman Crest regarding work on a retaining pond, to the City of Jonesboro by Liberty Bank of Arkansas. It was determined a resolution needed to be drafted authorizing the conveyance of property so it could be filed properly. City Clerk Donna Jackson was asked to provide the information to City Attorney Crego for review.
Franchise Fees & Contracts: Mr. Flowers reported by increasing the franchise fees the additional generated revenue would be greater for Center Point, Entergy, Arkla than it would be for Southwestern Bell (SBC). SBC questioned if the City of Jonesboro was levying a fee on other telephone carriers within the City of Jonesboro. Mr. Flowers explained Little Rock was doing so, but they were researching the matter further and would provide the information to the committee.
Chamber of Commerce DC Trip Reimbursement: Councilman Perrin moved, seconded by Councilman Hargis to approve the trip for Mayor Doug Formon and City Clerk Donna Jackson. All voted aye.
HUMAN RESOURCES
Letter by Mayor Brodell placed in Glenn Batten’s file: Ms. Hackney explained Mayor Brodell wrote a letter as requested by the Jonesboro City Council with regard to removing any reference to sexual harassment involving Mr. Glenn Batten during his employment with the City of Jonesboro. She explained Attorney Ralph Ohm had reviewed the letter. Councilman Dover moved, seconded by Councilman Hargis to place the letter in Mr. Glenn Batten’s personnel file. All voted aye.
INFO SYSTEMS
The decision was made to move Information Systems and E911 ahead on the agenda due to Councilman Perrin leaving the committee meeting early due to a trip to Little Rock.
Financial Software: Mr. Alan Young reported the financial software was being installed via Portland and a schedule for on site installation and training with Springbrook would begin March 8, 2005 and go through July 1, 2005 covering court, financial, and payroll, with the artillery modules being scheduled after July 1st. Mr. Young explained they were meeting with Mayor Formon for his input regarding process improvements, and requested a joint meeting of the Finance Committee and Springbrook in order to financial reports.
E911: Councilman Dover moved, seconded by Councilman Perrin to recommend to the full council, for the February 1, 2005 agenda, an ordinance to waive competitive bidding authorizing the leasing of an E911 Phone System for the beginning sum of $121,595.00 including trade-in of the current system and a payment of $820.00 monthly for 60 months. All voted aye.
Councilman Perrin left the committee meeting at 4:45 p.m.
HUMAN RESOURCES CONTINUED
Procedure for Dept Head Disciplinary Appeal Process: Councilman Street moved, seconded by Councilman Dover to recommend to the full council, for the February 15, 2005 agenda, a procedure for review of disciplinary decisions, amending the employee handbook. The decision was made to allow written requests to be forwarded to the Chair of the Personnel Committee in the absence of the human resource director or in the event the disciplinary appeal hearing is being requested by the human resource director. All voted aye.
Changing Pay Grade for the positions of Police & Fire Chief: Ms. Hackney stated she had spoken with Condrey and Associates regarding the positions of Police Chief and Fire Chief. She explained Condrey and Associates stated both positions would normally be a grade 25, but because Jonesboro had a Public Safety Director at the time of the salary survey, the decision was made to classify both positions as a grade 24. It was recommended to move both the police chief position and fire chief position to a grade 25, with a base salary of $63,892, but at the Mayor’s discretion each could be provided four step increases for a salary of $70,524.88. Ms. Hackney stated she wanted to make the committee aware of this information, and would be coming back to with other recommended changes.
Prepaid Legal Services Program: Ms. Hackney reported on a voluntary benefit for prepaid legal services program that Craighead County was participating in. Ms. Hackney was asked to check with other cities and to get a recommendation from the City Attorney.
Employee Representatives Recommendations:
• Sick Time Bank - Ms. Hackney was asked to have the policy in written form along with her recommendations, making sure we are in compliance with federal and state laws.
• Employee of the Month - The committee agreed this would be an Administrative decision.
• City News Letter
• Provide for a surviving spouse benefit - Ms. Hackney was asked to research the matter and provide a recommendation to the committee.
GRANTS
CDBG Funding: It was explained Fire Station 2 was the only station qualified for CDBG funding and they had planned to purchase a pumper truck this year. However, due to CDBG funding being cut by $35,198, Mr. McKinnon recommended rather than using half the 2005 CDBG funding, and having to supplement with city funds, to carry that amount over for the following year and have the full amount provided for using the combined funds in the 2006 CDBG budget. Mr. McKinnon explained CDBG had requested a letter from Mayor Formon regarding the change. Councilman Dover moved, seconded by Councilman Hargis to revise the 2005 CDBG budget. All voted aye.
Miles Park: Mr. McKinnon explained there was $39,614.79 remaining in the Miles Park budget and it had been bid out four times. The project was broken into three phases:
• Phase 1: Lighting with partial installation ($33,720.00)
• Phase 2: Alternate - fixtures & lamps installed on back side of common poles of adjacent field. ($5,600)
• Phase 3: Alternate 2 - Supplying electrical service to each pole (includes conduit, wiring, distribution panel, 4-disconnects, and all electrical connections to 4 poles) ($11,800.00)
Mr. McKinnon explained the low bidder was Tech Line Sports Lighting with a bid of $51,120.00 which was over budget. He explained Mayor Formon was trying to contact the company in order to negotiate the price. He further stated Mr. Wilkes’s staff could complete phase three of the project for approximately $5,000.00. Another option suggested by Mr. McKinnon was to amend the CDBG funding allowing for the additional work. Councilman Farmer asked for an explanation regarding Mr. McKinnon’s statement about amending the CDBG funding. Mr. McKinnon explained he was referring to funds carried over from various years on projects that were completed cheaper than estimated. The question was asked where are these unexpended CDBG funds being held and are they included in the budget. Mr. McKinnon responded saying they are held in the Administrative line item, and the CDBG budget has been amended seven times over the past eight years. Councilman Farmer again asked where are the special funds being held and specifically asked on what page of the budget to these funds appear. Mr. McKinnon responded by saying he did not know. Mr. Larry Flowers explained because CDBG has a separate adopted budget it has never been included in the City’s budget. Mr. McKinnon further explained the money is held by the federal government and when he draws down the money he gives the bills to Mr. Flowers and the federal government provides the funds. Councilman Farmer questioned who is responsible for debiting the federal government. Mr. McKinnon responded saying he and Mr. Flowers were. The question was asked how long may the carryovers be carried over. Mr. McKinnon responded saying from November 1, 2004 he can carry over ½ the money for next year plus $606,000.00. He stated he must spend $990,000 or lose it. Councilman Hargis questioned the bid by Hunter Knepshield which bid Phase 1 at $27,800.00. Mr. McKinnon explained the specifications called for partial installation of the lighting, but Hunter Knepshield bid only for materials, and did not bid the job according to the specifications. The question was asked why Hunter Knepshield appeared on the bid sheet if they did not bid according to the job specifications. Mr. McKinnon responded saying their recommendation was to go with Phase 1 and Phase 2, allowing for Mayor Formon to negotiate the price. When asked about time constraints Mr. McKinnon explained the bid opened January 12th and was good for thirty days. Councilman Dover moved, seconded by Councilman Hargis to accept the Tech Line bid for Phases 1 and 2; for the Mayor to negotiate the best price he can for Phase 3 to finish the job to completion; and to recommend the resolution to the full council at the February 1, 2005 City Council meeting. All voted aye.
Accepting the bid for Crittco Construction for Greensboro Sewer Improvements: Councilman Dover moved, seconded by Councilman Street to accept the bid of Crittco Construction for $54,881.86 which was low bid meeting bid specifications, contingent of approval of the contract by City Attorney Crego. Mr. McKinnon recommending Crittco and provided a letter from Miller Newell, also recommending the Crittco company. It was explained the funds would come from the 2004 CDBG funds. All voted aye.
Mr. McKinnon provided a memo regarding all of the CDBG projects.
OTHER BUSINESS
MATA Funds Balance & Fox Meadow - Councilman Farmer explained the importance of including such funding as MATA in the budget (MATA has its own set up). He stated Council had been told MATA had a balance of 1.7 million dollars after the completion of the Fox Meadow project, however that information was based on the City repaying MATA 3 million dollars for the gravel roads program from several years prior. He explained based on this new information there are not enough MATA funds to finish the Fox Meadow project and money would have to be appropriated from Capital Improvements.
Jonesboro’s Square Mileage - Councilman Farmer informed committee members that misinformation had been provided regarding the actual square mileage of Jonesboro. He explained someone had estimated the square mileage to be 110,000, but based on cad calculations it was 80.2.
Equipment Buy-Back Program: Mr. Martin was asked to further research the matter with other cities and bring back a recommendation to the Finance Committee.
ADJOURNMENT
Councilman Dover moved, seconded by Councilman Street to adjourn the meeting. All voted aye.