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12-11-01/83 MINUTES Board of Directors Room City Hall - 500 W. Markham Little Rock, Arkansas December 11, 2001 4:00 P.M. The Board of Directors of the City of Little Rock, Arkansas met in a reconvened session with Mayor Jim Dailey presiding. The roll was called by City Clerk, Nancy Wood, with the following Directors present: Directors Hinton, Pugh, Stewart, Graves, Lichty, Kumpuris, Adcock, Keck, Vice Mayor Cazort, and Wyrick. Mayor Dailey asked for a moment of silence to remember the events of September 11, and the impact it has had on the world. With a quorum present, Mayor Dailey declared the Reconvened Board of Directors Meeting in session and the proceedings of the meeting are recorded as follows Modifications to the agenda consisted of the following: DELETION M -1. RESOLUTION - To reallocate Targeted Neighborhood Enhancement Plan Funds. ADDITION M -2. RESOLUTION NO. 11,184 - Authorizing the City Manager to enter into an agreement with the Army Corp of Engineers, Little Rock District, to remove a blockage in the Old Channel Fourche Creek; and for other purposes. A motion was made by Director Keck, seconded by Director Adcock, and by unanimous voice vote of the board members present, the listed modifications were made to the agenda. Mayor Dailey asked the clerk to read 1. RESOLUTION NO. To reallocate Targeted Neighborhood Enhancement Plan Funds. (Item was deleted from agenda.) 2. RESOLUTION NO. 11, 185 - To authorize the City Manager to enter into a contract with Darrin and Nicole Williams in the amount of $34,600. for property located at 2100 Center Street as part of the Tornado Disaster Rebuild Targeted Neighborhood Enhancement Plan. (REVISED). 3. RESOLUTION NO. 11, 186 - To authorize the City Manager to enter into a contract with Maggie Hawkins in the amount of $3,268. for property located at 522 E. 23rd Street as part of the Tornado Disaster Rebuild Targeted Neighborhood Enhancement Plan. (REVISED). 4. RESOLUTION NO. 11,187 - To authorize the City Manager to enter into a contract with Charles and Elizabeth Blake in the amount of $9,55 Lfor property located at 2205 S. Gaines Street as part of the Tornado Disaster Rebuild Targeted Neighborhood Enhancement Plan. (REVISED). 5. RESOLUTION NO. 11,188 - To authorize the City Manager to enter into a contract with Jane Mize in the amount of $9,686. for property located at 2309 S. Gaines Street as part of the Tornado Disaster Rebuild Targeted Neighborhood Enhancement Plan. (REVISED). 6. RESOLUTION NO. 11, 189 - To authorize the City Manager to enter into a contract with Mr. T. B. Izby in the amount of $34,929. for property located at 2200 S. Gaines EWA Street as part of the Tornado Disaster Rebuild Targeted Neighborhood Enhancement Plan. (REVISED). 7. RESOLUTION NO. 11,190 - Authorizing the City Manager to enter into a contract to construct and operate a Nature Center on City parkland in or adjacent to the Fourche Creek Watershed. 8. RESOLUTION NO. 11,191 - Authorizing the City Manager to enter into contract negotiations for 2002 contracts with organizations to provide services to Welfare to Work eligible clients; and for other purposes. Director Adcock had questions on this item saying that each one of the organizations was going too hire one staff member as well as some office space, but it was the five staff members that she was asking about. She asked that since there are some city employees who have not been able to find jobs available in the City of Little Rock and this resolutions, she knew two of the positions were filled, but from reading the different proposals, she didn't think three were filled, and would the employees of the City of Little Rock who are still looking for jobs be eligible for these three positions, or would they be given the ability to apply for them and extra incentive. Mr. Carney stated he was not certain they would be qualified for these positions, but the suggestion was well taken and would look at these positions and determine if there could be a match. Director Adcock asked if they would be treated as City positions? Mr. Carney stated they would not, they would be contractual in nature. M -2. RESOLUTION NO. 11,184 - Authorizing the City Manager to enter into an agreement with the Army Corp of Engineers, Little Rock District, to remove a blockage in the Old Channel Fourche Creek; and for other purposes. Items 1 -8 and M -2 were read. A motion was made by Director Adcock to adopt the consent agenda. Vice Mayor Cazort seconded the motion, and by unanimous voice vote of the board members present, the consent agenda was adopted. 9. ORDINANCE No. 18,604 - To establish the General Fund Special Projects Fund (Fund 105); to establish the urban Forestry Project within the General Fund Special projects Fund; to authorize the transfer of $796,926 from the Billboard Project within the Special Project Fund (Fund 210) to the Urban Forestry Project within the General Fund Special Projects Fund; to establish the only use of these funds shall be for Urban Forestry Activities; to declare an emergency; and for other purposes. The ordinance was read the first time; rules were suspended to provide for the second and third readings of the ordinance; by unanimous voice vote of the board members present. By unanimous voice vote of the board members present, the ordinance and emergency clause was adopted. 10. ORDINANCE NO. Amending Chapter 2, Article VI, of the Code of Ordinances, and requiring the preparation of financial reports of the operations of the City of Little Rock, Arkansas in the form herein prescribed, the presentation of the said financial reports to the Board of Directors and consideration by the Board of Directors of said financial reports with appropriate action thereon taken during a regular board meeting, requiring the City Clerk to publish the financial reports as and when approved by the Board of Directors; in a newspaper of general circulation in the City; requiring the establishment, funding and maintenance of a cash reserves account and an infrastructure capital account, imposing restrictions on expenditures in excess of revenues for the current fiscal year; prohibiting the making of any contract, warrant, allowance or expenditure in excess of revenues for the current fiscal year and prescribing other matters pertaining thereto. Director Lichty stated he had met with the City Attorney, Mr. Carpenter, the City Manager, Mr. Carney, and the Finance Director, Mr. Biles, and Mr. Kemp, to discuss this particular ordinance and to propose a re -draft of the elements of this ordinance that would be split into two separate ordinances. The reason being was that it felt like some of the issues that were addressed in this ordinance were of a constant nature and would never change and therefore should be under one ordinance and some of the issues and provisions of this proposed ordinance were somewhat changeable and might be modified in future years and therefore it lent itself to be under a separate ordinance. He stated he would like to briefly go through the basic provisions of the original ordinance, which included the following things: It established a monthly summary statement based on reconciled balances of the city. It established a quarterly detail statement of the financial operations of the city. It required certification of same by an official of this city. It required acceptance of that certified statement by the Board of Directors. It mandated the publication of that statement on a quarterly basis. It provided for the retention of the records that created those documents. It required or mandated/provided for a way to destroy those records and a method under which they would be destroyed and an avadavat confirming they had been destroyed. It set up a provision for a cash reserve account. It set up a provision for an infrastructure account. It set up a provision for the restriction of the use of the funds from those two accounts. It 13-5 provided for the initial funding of each of those two accounts to get to a level equivalent to two months of some sort of revenue. For the terms of this particular ordinance that particular revenue figure was the audited revenue figure from the year 2000. Then it provided for the continuing funding of those two funds once that initial funding had been met. Director Lichty stated there is recognition that what is being proposed is a fairly significant change for the better in terms of mandating a strong, accurate, sound accounting for the City of Little Rock. He said it would also require this board become more active in the oversight of the finances of the city. He sated that because of the changes discussed today, and the fact that the decision was made to split them into two separate ordinances, it was felt the most appropriate way to do this would be to redraft those two ordinances and reconvene in a special meeting, hopefully this week, and resolve the issues as they relate to those two ordinances. Mr. Carney, City Manager - stated the two ordinances just spoke of , one relating to the reporting requirements, and felt there was agreement on that relating to certain days, close of the financial reporting period, reporting to the board on a monthly basis, quarterly, semi - annually and felt there was agreement related to that particular ordinance. The second ordinance relates to the reserve fund and the amount of funds needed, and felt discussion and direction need to take place as the ordinance is crafted on two or three key points. He said they had discussed at length today the amount of dollars and particularly if those reserve funds should be set aside as a separate fund, or should those be considered a total fund balance, if they are set aside related to a separate reserve fund without tucking those until it came back to the board. He said then finance would need an additional amount of money in reserve that would help, related to cash flow. The revenues received do not come equally each month, are usually large pieces of money that come periodically and between those times, there needs to be some ability to get into some dollars to pay the bills until the lump some comes at future dates. If the board chooses a separate reserve fund that is equal to in effect two months of expenditures or revenues, then that total would be roughly over a four year period as discussed today; sixteen million dollars to be gained as quickly as possible, but at least by the first year period, but additionally there would need to be several million dollars set aside to be the cash flow amount that finance would need to be able to access if the reserve fund is not available. The board needs to help staff with that direction. It means more money to be set aside, and his concerns was that it is a big number, and if the Manager is to prepare a budget based on this ordinance and the budget document, it would need to be structured where expenditures are significantly less than revenue in order to gain the fund balance plus the cash needed for the cas would be very difficult over time to do this. Mr. Carney asked Mr. Biles, Finance Director, to give his input on the ordinances. Mr. Biles stated that his job was to provide accurate numbers in a timely manner. He said they would provide sample forms, timelines, and felt they could have the monthly reporting done by the end of the following month on a consistent basis that would give accurate numbers, accurate comparison. He said the goal is to provide accurate reports that are understandable that highlight key numbers that the board needs to see. Budget to actual comparisons will be part of the monthly report. Mr. Biles said they have started a four -year database, of what sales tax collections should be at the end of each month, historical percentages to use for comparative data. Mr. Biles stated there might be some supplemental reporting on top of what is in the financial report. The more important funds would be presented first, the other funds over a three -month or more period. At the end of June all funds would be reported using this format. Mr. Biles stated regarding the reserve fund ordinances, is that the board establish what the reserve needs to be, and understanding that the higher the level , the more difficult it would be in ensuing budgets. If revenues don't increase quickly enough to create that spread, a gap of revenues exceeding the expenditures, and if there is no flexibility to get the revenues, expenditures and reductions would have to be looked at. Mr. Biles stated he thought the ordinance is a good thing, but needed to ensure it is achievable and that is something agreed that needs to be done, and doesn't impact the community more than it should. He said it would require financial discipline on everyone's parts. He said there is a need to get very good internally at staying within the budget and tracking that. Establishing the reserves is going to require more and more value selection from the board and the community. There was lengthy discussion by the board on what the reserve would be, how much the reserve should be, the type of reserve — (revenues or expenditures) if there would be flexible money from the reserve or not, and there was some concern that reporting would be accurate, whether infrastructure funds needed to be established at this time, the need to establish policy for emergency situations, etc. Mayor Dailey asked how many board members, by a show of hands wanted to have some money in a "lockbox" reserve account? There was no one opposed to this approach. Director Adcock was for putting something into the fund each month. Mayor Dailey asked how many of the board would like for the City Manager to come back next Tuesday, December 18th, with a figure that would be the "Lockbox" amount, and how it would be implemented over the years. Director Lichty asked to go over some of the portions of the ordinance and try to decade some of the issues. It was decided that the infrastructure fund could not be addressed at this time. After much discussion, the level of the lockbox goal was decided at ten million over four years, or 10% of which ever is larger revenues or expenditures. Director Wyrick asked that financial terms be 3 included in the ordinance so that everyone is on the same page. Director Lichty stated that one of the benefits of the new ordinance is that staff and Mr. Biles had come up with, is that there would be a glossary of terms. It was decided, regarding the publications of the financial report, it would be the quarterly report to be published quarterly in the local newspaper. Director Lichty asked that the ordinances be prepared and to the Board by Friday so they had time to study them before next Tuesday. Ms. Janet Berry, 8013 Mabelvale Cutoff, said most of her concerns were resolved, but she was still concerned about the alert centers, and if neighborhood services were not kept to where they need to be, that people would start moving from the city. She said she was concerned about the long -term affect of this ordinance, that citizens had not been able to see a copy of it. She said she thought it was a waste of money to publish this in the paper. She said she thought it critical that the information was published but mailing quarterly to the neighborhood groups and other interested citizens would be less than if they were published in the paper, and if the paper is the Dailey Record instead of the Arkansas Democrat Gazette, which is what the Planning Department uses, she would consider that more a waste of time because citizens do not read the Dailey Record, business people do. Director Lichty stated that is why he is pushing to get the reports published in the Arkansas Democrat Gazette, because it is a statewide - distributed newspaper. It is mandated by state law to publish the ordinance in a newspaper. Janet Berry asked why the Police Chief was not here to speak tonight, that about twenty -five disgruntled citizens had left because they had come to hear him and he was not here. Director Keck stated he felt a cost of publishing it in the Arkansas Democrat Gazette needed to be estimated. Ms. Kathleen Oleson, League of Women Voters of Pulaski County, stated some of the issues she was going to speak on, Ms. Berry addressed. She asked if there is a copy of the ordinance available that the board has been speaking of. She said she knew new ordinances were being drafted, but asked if there was a copy of this one so that they could see what the skeleton of the ordinance looks like. She was provided with a copy. Director Lichty told her that the new ordinances would not even resemble this one in terms of presentation, in terms of the presentation, the essential elements they are trying to include and in some cases improve, but did not think the language would be the same. Director Lichty stated that was why he took the time to outline the thirteen points in this particular ordinance, which hopefully they would incorporate them into the other two ordinances. Ms. Olsen asked how the reserve fund ordinance would effect the Urban Forestry special fund that could only be used for urban forestry activities, however it goes in the general fund special project fund, can those monies be used as part of a float fund? Director Lichty stated that any time there is a modification to the approved budget, it has to come before the board and receive another vote, and hopefully that would be incorporated as part of the language. Mr. Carney addressed the issue of the Police Chief's absence from the meeting tonight, saying that he suspected that when the board began looking at the these ordinances just discussed, expected that the details of community policing, alert centers, community centers until a later time, and asked Chief Johnson to defer his appearance, as he has a number of things to address, and that was the reason for the delay. Director Adcock stated she could not vote on the budget until a discussion had taken place on the alert centers, community policing, etc. and asked when those would be discussed. Mr. Carney answered that he would be willing to address them tonight if the board was willing to stay. Director Adcock stated she had plenty of time. Mayor Dailey recessed the meeting for a break, at 7:50 PM. The meeting reconvened at 8:00 P.M. There was lengthy discussion on a variety of budget issues. A motion was made by Vice Mayor Cazort to adjourn the meeting; Director Keck seconded the motion, and by unanimous voice vote of the board members present the meeting was adj ourned at 10:10 PM. FNW 4 D>W TY CL R 4 APPROVED: T � 196