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Minutes for the Finance Committee meeting on March 25, 2004.
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Finance & Administration Committee Minutes
Thursday, March 25, 2004
4:00 p.m. - Huntington Building
Members Present: Alec Farmer, Darrel Dover, Jim Hargis, Ann Williams and Harold Perrin. Members Absent: None. Others present were: Keith Inman, Jonesboro Sun , Mayor Hubert Brodell, Finance Director Larry Flowers, Mayor’s Assistant Aubrey Scott, Information Systems Director Alan Young, E-911 Director Bob Andrews, Human Resources Director Suzanne Hackney, City Accountant David Eagle, Grants Coordinator Jimmy McKinnon, and City Collector Becky Sharp.
CEMETERIES - AUDIT UPDATE
City Accountant David Eagle and City Collector Becky Sharp distributed a report and discussed the results of their audit of City cemeteries. It was explained that the audit revealed only one instance of theft of the proceeds from the sale of a lot by a former sexton. It was reported that a new sexton had been hired and would be trained over the next few weeks. Also presented were recommended new procedures for the sale of lots and recording grave sites. The new procedures will require customers to contact the City Collector, who will then contact the sexton to set up an appointment to choose an available grave site. The sexton will then complete a form describing the site and return the form to the City Collector. The City Collector will receive payment and record the sale. It was reported by Mayor Brodell that loopholes have been closed to the extent possible. It was further reported that an audit of Nettleton Cemetery was in process and would be followed by an audit of Oaklawn Cemetery. Mayor Brodell further reported that signs would be put up at all cemetery locations with fliers available explaining the new procedures, and further discussed the City’s cemetery perpetual care fund.
Alderman Farmer left the meeting for unrelated business. Alderman Perrin assumed the chair.
MINUTES
Councilman Dover moved, seconded by Councilman Williams for approval of the minutes for February 19, 2004. All voted aye. Copies were made available to those in attendance.
PRINCIPAL FINANCIAL GROUP NON-UNIFORM PENSION PLAN FEES
Finance Director Larry Flowers distributed and discussed a report which identified the fees charged by Principal Financial Group for the administration of the City’s non-uniform pension plan. Councilman Perrin stated that a discussion of the fees had recently been held with Principal Financial Group in Memphis.
PRINCIPAL FINANCIAL GROUP FUND SELECTION SERVICE PROPOSAL
Finance Director Larry Flowers distributed a letter from a Principal Financial Group representative which explained the rationale for investing the majority of the assets of the City’s non-uniform pension plan in fixed income securities. Councilman Perrin pointed out that the City’s has the ultimate fiduciary responsibility for investment of plan assets and suggested that it would be in the best interest of the City to have the Finance Committee make plan investment decisions. Councilman Perrin suggested that the Finance Committee could review the plan’s asset allocation and investment returns on a quarterly basis and make changes to asset allocations as deemed prudent. Subsequently, Councilman Dover, seconded by Councilman Williams, moved to reverse a resolution adopted by the City Council on March 15 to execute a contract with Principal Financial Group to provide a fund selection service for the plan. All voted aye.
ADA COMPLIANCE REPORT
Human Resources Director Suzanne Hackney presented an update on the City’s efforts to comply with ADA regulations. She reported that such efforts were a “moving target”, but that compliance work was progressing. She further reported that final cost figures for compliance work were not yet finalized, but the City had expended at least the minimum required amount in 2003 and that 2004 expenditures, while slightly below the $200,000 required annual minimum, were expected to meet the minimum in the near future. Mayor Brodell stated that the City’s best efforts were being made to meet all ADA requirements.
REQUEST FOR QUALIFICATIONS FOR FINANCE SOFTWARE
Information Systems Director Alan Young distributed a draft request for qualifications from software vendors for acquisition of finance software. Councilman Perrin stated that the City needs to acquire a software package that is Windows based. Councilman Dover questioned whether software could be obtained in time to utilize in the preparation of the 2005 budget. Alan replied that it was possible. Alan was then instructed to publish the request for qualifications and sent it to known potential software vendors.
GRANTS UPDATE
Grants Coordinator Jimmy McKinnon presented an update on several grants items, and distributed related materials. CDBG demolition and curb & gutter and sidewalk bids were presented. Councilman Dover moved, seconded by Councilman Williams for acceptance of the low bids. All voted aye. Councilman Dover moved, seconded by Councilman Williams, to award contracts to Matt Silas for Fire Station #2 and to Miller & Newell for the sewer project. All voted aye. Discussion was held on the ADFA Rehabilitation Grant Program. Mr. McKinnon noted that the City can apply for up to $350,000 in annual housing rehabilitation grant funds plus 10% administration funds, and stated that administration could either be contracted out or staff could be hired by the City. It was recommended by Mr. McKinnon that all rehabilitation work performed under the grant be in compliance with City codes. Councilman Hargis stated that grant funds are available to homeowners in blighted areas only, up to $25,000 per household, on a first-come, first-served basis. Mr. McKinnon stated that “new rehabilitation” 2nd grant funds could be applied for upon completion of 75% of the work funded under the first grant. Mayor Brodell recommended contracting grant administration and stated that $1,050,000 was potentially available to the City for rehabilitation grants. Councilman Perrin asked Mr. McKinnon to get more information for the Committee. Mr. McKinnon reported that Knish Corporation was the low bidder on certain sidewalk construction projects, and that $129,000 was left on the contract. Councilman Dover asked who was responsible for ensuring the quality of the work, and Mayor Brodell replied that Associated Engineers was responsible. He also stated that the city Engineer should review the work. Councilman Hargis pointed out that Race Street and Brown’s Lane currently have no sidewalks.
ADJOURNMENT
With no further business, Councilman Perrin moved, seconded by Councilman Williams to adjourn. All voted aye.