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12-18-01/F7 MINUTES Board of Directors Room City Hall - 500 W. Markham Little Rock, Arkansas December 18, 2001 6:00 P.M. i The Board of Directors of the City of Little Rock, Arkansas met in regular session with Mayor Dailey presiding. The roll was called by City Clerk Nancy Wood, with the following Directors present: Directors Hinton, Pugh, Stewart, Graves, Keck, Adcock, Wyrick , Kumpuris, Lichty, and Vice Mayor Cazort. The Invocation was given by Director Wyrick, which was followed by the Pledge of Allegiance. With a quorum present, Mayor Dailey declared the Board of Directors in session and the proceedings of the meeting are recorded as follows. Mayor Dailey asked the board to consider the following modifications: M -1. ORDINANCE NO. 18,621 - To repeal portions of Little Rock, Arkansas Rev. Code 22 -24 (1988) as to parking fees in War Memorial Park; and for other purposes. M -2. RESOLUTION — To authorize the purchase of an articulated dump truck for Public Works with Solid Waste Revenue Bond proceeds; and for other purposes. (Deferred to January 2, 2002.) MmeM' M -3. ORDINANCE NO. 18,615 - Fixing and imposing the aggregate amount of fees and charges to be paid to the City of Little Rock, Arkansas by Little Rock Wastewater 1 Utility and the method of payment thereof for 2002; declaring an emergency and for other purposes. (Information forthcoming) M -4. RESOLUTION NO. 11,205 - Authorizing the City Manager to execute a contract with Ms. Yolanda Woolfolk as part of the Tornado disaster Rebuild Targeted Neighborhood Enhancement Plan to construct a new single- family residence at 3302 Bishop Street in the approved Tornado Disaster Rebuild TNEP area. (REVISED) M =S. RESOLUTION NO. 11,206 - Authorizing the City manager to execute a contract with Ms. Beverly Parker as part of the Tornado Disaster Rebuild Targeted Neighborhood Enhancement Plan to construct a new single - family residence at 3120 Dr. Martin Luther King Jr. Drive in the approved Tornado Disaster Rebuild TNEP Area. (REVISED) DELETION 21. ORDINANCE To establish an agreement between the City of Little Rock and Solid Waste Service for an increased collection fee. (Item deferred until Rate Study completed.) Item M -1 was grouped. Item M -3 was held separate, and items M -4 and M -5 were: added to the consent agenda. Item 17 was included as an ordinance, but was actually a resolution, and was added to the consent agenda. A motion was made by Director Keck, seconded by Vice Mayor Cazort to make the listed modifications to the agenda. By unanimous voice vote of the board members present the motion carried. PRESENTATIONS: Recycling Contest Drawing: Recycling Contest— Final Drawing for $1000. Mr. Bob Turner, Public Works Director, gave an update saying that this program had been very successful. He stated that one of the things they had done was try to increase the awareness for recycling, and thought that had been accomplished. Mr. Turner announced there had been 68 winners of $100 Wal- Mart Gift Certificates, and that earlier they had placed all the cards received during the program, between 600,000 and 700,000, in the final drawing, with eligibility to win the grand prize of a $1000 Gift Certificate from Wal -Mart or a three day vacation value package in Hot Springs, Arkansas The recycling contest drawing took place earlier today, and a video clip was shown of the drawing. Mayor Dailey drew the name of the winning card. Ms. Corrie Grant, #5 Betsy Drive, was announced as the winner. Ms. Grant, elected to receive the Wal -Mart Gift Certificate. Proclamation — Tom Thrash Day — Mr. Tom Carpenter, City Attorney presented the Proclamation declaring December 19th Thomas Thrash Jr. Day, to Mr. Tom Thrash Jr. for accomplishments, and achievement of national and state recognition he had received this year in sports. Reverend Rufus presented Director Adcock with a certificate of an award for her work with women and children organizations; the ward was given in partnership of the Tomberlin Community Development Center, the Ann Riley Hope Center, the Ann Riley Education Center, and the Jr. League Women of Little Rock. CONSENT AGENDA (1 -11) 1. MOTION - To set the date of Public hearing for January 2, 2002 on an appeal of the Planning Commissions denial of an amended Conditional Use Permit for Lot 3, Hampton /Goff Subdivision located at 1219 S. Shackleford Road. Ms. Marilyn Schulte and Don Ryan had presented cards to speak on this item. Mayor Dailey explained and confirmed with the City Attorney, that this was merely to set the date of hearing, and if they were present to speak in opposition, it would not be appropriate until the actual public hearing, which was to take place on January 2, 2002. 2. RESOLUTION NO. 11,194 - To authorize the purchase of one truck tractor from Diamond International Trucks; to purchase one self - propelled paver from Clark Machinery Company; and for other purposes. 3. RESOLUTION NO. 11,195 - Authorizing the City Manager to enter into a contract with Hugg & Hall Equipment Company for the purchase of (1) 160 horsepower motor grader; and for other purposes. 4. RESOLUTION NO. 11,196 - To set the date of Public Hearing for January 2, 2002 on the petition to vacate and close a portion of Glover Street, north of Biscayne Drive, in Bellevue and Gibby Additions to the City of Little Rock, Arkansas. 5. RESOLUTION NO. 11,197 - To renew a taxicab operator permit for Dewey Worthy for the period from January 1, 2002 to December 31, 2002; and for other purposes. 6. RESOLUTION NO. 11,198 - To renew 100 taxicab operator permit for Pulaski County Transportation Services, LLC, for the period from January 1, 2002 to December 31, 2002, and for other purposes. 7. RESOLUTION NO. 11,199 - To renew 125 taxicab operator permit for Greater Little Rock Transportation Services, LLC, for the period from January 1, 2002 to December 31, 2002, and for other purposes. 8. RESOLUTION NO. 11,200 - To amend Little Rock Arkansas Resolution No. 10,428 (December 15, 1998) to increase the daily storage fee for the City Impound Lot. 9. RESOLUTION NO. 11,201 - To adopt a permanent Tree Planting Plan for the City of Little Rock, Arkansas and its environs; and for other purposes. Ms. Dee White was present to speak on this item. She stated that with budget problems facing the city, there were a lot of people losing their jobs, losing their alert centers, and police protection at a 2 /179 time when gang activity is peaking in the City. She stated that Mr. Carney was a Grinch, and that the board could take the tree planting idea completely out of the budget, since it would just be another way to funnel money into the Clinton Library hullabaloo, because this was only a fraction of the pecans found (she had an example to show) at the base of a tree just cut down by the new forester, who makes $40,000 a year, who was hired during a hiring freeze, for the parks department, and has not planted one single thing in the three months he has been in the position. She stated this was a very cynical and hypocritical action the board was proposing. She said the forester has cut a dozen trees including a historic two hundred year old pecan tree. Mayor Dailey asked the board if there were reason to leave this item separate. The board elected to leave the item on the Consent Agenda. 10. RESOLUTION NO. 11,202 - Authorizing the sale of certain real property located in the Little Rock Port Industrial Park; authorizing the Mayor and City Clerk to execute a warranty deed for the conveyance and any easements or other documents deemed necessary for the extension of the Little Rock Port Railroad, and for other purposes. 11. RESOLUTION NO. 11,203 - Awarding a contract to Superior Protection to provide security services for the Municipal Courts Building. The consent agenda was read, including items M -1, M -4, and M -5. Director Adcock made a motion 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. End of Consent Agenda 12. ORDINANCE NO. 18,608 - Reclassifying Property located at 12800 County Line Road in the City of Little Rock, Arkansas, from R -2 Single Family District to MF -6, Multi- family District. Amending the Official Zoning Map of the City of Little Rock, Arkansas, and for other purposes. (Planning Commission: 7 yes, 2 no, 2 absent. Staff recommends approval. (Second Reading.)(]" Reading 12- 4 -01). Mayor Dailey was for the second reading on the item. The item was read the second time. Mr. Jim Lawson gave a brief review of the item, saying the question was whether the owner was notified when the property was rezoned. Mr. Lawson said the information they received from the County records was the land was urchased January 30, 1997, and the board rezoned the piece of property on November 4` 1997. This indicates he did own the property and was not notified, as sometimes there is a time -lapse between the times the deed is recorded, and when it gets to the tax assessors files. What was done at the time of notification was that due to this time lapse, the old owner was notified. Director Adcock asked what the other property owners would have been told their property zoning was after November 4 1 of 1997? Mr. Lawson answered that they would have been told the land was zoned R -2, Single Use Family. Ms. Janet Berry, 8013 Mabelvale Cutoff, Mr. Roger Martin, 6 Leprechaun Lane, Mr. Joe Longinotti, #2 Leprechaun Lane, was present, and spoke in opposition to the rezoning, citing reasons such as what would be built at the location, the proximity and intrusion of a multi family dwelling to what is primarily single family. Mr. Longinotti asked about an appeals process, if the board did decide to rezone back to the MF -6 Zoning. Mr. Carpenter answered that if the board did take that action, then it would be a challenge to the board's action, which would be a court challenge, or to wait for a period of one year, and they could file an application again. Mr. Lawson said about all those against this could do is, they could go to court, but the other option is they could come back to the board and ask the board to rezone the piece of property to R -2. He stated in the ordinance is a special clause, that would allow the City Board of Directors to rezone a piece of property. Mr. Lawson said this has never been done at the objection of the landowner, but that would be the only other option. It would be advertised, and _ public hearings would be held. Mr. Lawson stated tonight, what he was aiming for was to try and get the board to not discuss the merits of whether it should be zoned or not. He was trying to say, the city has always done it this way, and should go ahead and do it. He agreed that it is a small narrow tract and the best use is probably R -2, but at this point could not push that front. Vice mayor Cazort asked that if the board rezones this back to the original zoning of MF -6, then is it true the board can rezone the property even at the objection of the owner, and why, if this is true, is it not some kind of a taking? Mr. 1 qa Carpenter, stated that Mr. Lawson, did not say it was not some kind of taking, he said just that the board had the authority to do so. If it is a down zoning or it results in a regulatory damage to the individual, then the city might be liable for the differential and the value of the property and his investment back expectations. Rezoning over the objection of the owner creates some problems and it is one of those that is fact intensive, and all the circumstances around the zoning would have to be looked at, beyond just the general question. The general answer is there is a risk, but what the risk would be he could not tell without actually a more detailed analysis. There were questions, if a multi- family unit were built, concerning right of way, parking provisions, drainage prevention. landscaping provisions, etc. Mr. Lawson said some of these issues might prevent the owner from developing 18 units (6 units allowed per acre). He may have to develop a duplex or tri-plex. He said there is 3.54 acres, so unless he puts one building on the acreage, he would have to come back for a site plan review, and issues would be discussed then. If he came in with only one building, he still would have to address the right of way, the drainage issue, etc. Mr. Lawson stated this is not a typical tract of ground where you see a typical apartment density because of all the things just discussed. A roll call vote was taken and recorded as follows: Directors Pugh, no, Hinton, no, Lichty, yes, Cazort, yes, Keck, yes, Stewart, yes, Wyrick, no, Kumpuris, yes, Graves, yes, Adcock, no, mayor Dailey yes. The vote was 4 no, 7 yes, the ordinance was adopted. Director Adcock asked Mr. Lawson to meet with neighborhood people to help them understand any appeal processes or procedures. 13. ORDINANCE NO. 18,609 - To grant SpectraSite Communications a waiver of the requirements to come into compliance at this time with the Landscape and Screening provisions of Little Rock Ordinance No. 18,173 (Dec. 20, 1999), for nine (9) communication towers already existing, located at nine locations; to set certain conditions for these sites; and for other purposes. (Second Reading.)(]" Reading 12- 04 -01). The ordinance was read the second time. Director Adcock made the motion to suspend the rules and place on third and final reading; Vice Mayor Cazort, seconded the motion, and by unanimous voice vote the rules were suspended and the ordinance was read the third time. Director Adcock asked if the applicant had made any changes or concessions since the last meeting. Mr. Lawson said no; that Mr. Dana Carney, Planning staff, had gone out and looked at the site on Loretto, and made no recommendations at this time. There were no changes made to the Maryland Street location. Ms. Janet Berry, 8013 Mabelvale Cutoff, stated she had sent in a list of her requests to make it easier to follow. She stated this was a picky issue, and as Director Lichty had noted last time, this is a poor way to handle these issues, and stated she had noted that the day the current ordinance was adopted. She said it needed to go back for a re- write, that these things do need to go to the Planning Commission and get worked out there. Ms. Berry stated the City Attorney had mentioned FCC Regulations, and reminded the board that all that is under question tonight is a few feet of fence and some bushes. These towers exist today and will exist regardless of what you do, there is no denial of service. The main scope of the FCC Regulation is that you cannot discriminate against carriers. She said we are not doing that, and has been gone to these meetings many times and has not discriminated against carriers. She said they all need to cover up the ugliness. It's a matter of how much to cover the base. The difference boils down mainly as to whether there needs to be screening in the industrial areas. She said that is part of the loophole in the ordinance. The ordinance said industrial areas might not need screening and landscaping, but she thinks they do. The ordinance also says, that everybody who does not want to do what he ordinance says, has to come in for a waiver. She said she feels strongly about landscaping and bushes on Duerling Road, Loretto, Polk Street, Marilyn Street, and 36" Street. Mr. Lawson stated that the way the ordinance is set up is to screen tower sites from residential units. He said that what Ms. Berry is saying, is that the unit should be screened from sight. That is not the way the ordinance is written. Mr. Lawson stated that in his opinion Mr. Berry is asking for the board to consider things that are really not in the ordinance. The ordinance was not written the way she would like for it to be written, which means that maybe the ordinance needs to be changed, but it is clear in the ordinance and its written to screen those bases from residential units, not from driving down the interstate. Mr. Lawson stated from staffs view point, if it is in an industrial area where there are tractors and trucks and everything else parked out there, to have some landscaping and screening around the base is not really what the ordinance asks for. Mr. Dana Carney, Planning, stated the language of the ordinance doesn't discriminate 4 1q/ between residential and industrial as far as screening the base of the site. The intent of the ordinance is different, and that is clear in the waivers that come before the board that the intent is that they be screened from residential. Mr. Randy Frazier, 415 N. McKinley Street, representing the applicant, stated they were in compliance with the ordinance to ask for waivers. Mr. Frazier said he did agree with Ms. Berry that the process is wrong in coming to the board with the waivers, rather than to the Planning Commission. He said they were doing what the law requires them to do to meet this solution. Mr. Frazier stated the scenic view and the neighborhood property values does not apply to industrial property, that the towers have been encouraged to go to industrial sites. Mr. Frazier said they have met all recommendations of staff for these sites as the ordinance exists today. Mayor Dailey asked Mr. Carpenter if amendments might be expected on the ordinance sometime in January. Mr. Carpenter agreed that would be possible. Mayor Dailey asked for a vote of the ordinance. A voice vote was taken; Directors Wyrick, Adcock, Hinton voted no. The vote was 8 yes, 3 no, the ordinance was passed. Mayor Dailey noted that staff would be working to get this sort of communication before the Planning Commission, rather than the board trying to do it. GROUPED ITEMS: Items 14- 20, and Item M -1. 14. ORDINANCE NO. 18,610 - S -1330 - Granting a variance from various lot development standards of Chapter 31 of the Code of Ordinances of the City of Little Rock, Arkansas providing for a variance to allow a pipe -stem lot with an increase in the maximum allowable depth of a pipe -stem lot for KIDCO — preliminary plat located 750 feet north of the northwest corner of Chenal Parkway and Kirk Road. Planning Commission: 11 yes. Staff recommends approval. 15. ORDINANCE NO. 18,611 - To amend Little Rock, Ark. Code 32 -301; 32 -309; 32- 311; 32 -403 (1988) to establish fines for vehicles illegally parked in metered and unmetered spaces; to declare an emergency and for other purposes. 16. ORDINANCE NO. 18,612 - To amend Chapter 17, Article II of the Little Rock Code, 1988, to increase the Business License Taxes contained in 17 -52; declaring an emergency; and for other purposes. 17. RESOLUTION NO. 11,192 - To authorize an increase in fees for the use of various facilities of the Little Rock Department of Parks and Recreation; to repeal Little Rock, Ark., Resolution No. 9,588 (December 26, 1995) to accomplish this increase; to declare January 1, 2002, the effective date of this increase in fees; and for other purposes. 18. ORDINANCE NO. 18,622 - Amending Chapters 23 and 36 of the Code of Ordinances of the City of Little Rock, Arkansas providing for the modification of various filing fees and permits and declaring an emergency. 19. ORDINANCE NO. 18,613 - To authorize an increase in fees for admission to the Little Rock Zoo; to amend Little Rock Ordinance No. 17,551 (August 5, 1997) to accomplish this increase; to amend Little Rock Ark. Rev. Code 2 -214 (1988) to permit the Zoo Board of governors to establish admission fees for the Little Rock Zoo from this point forward; to declare an emergency; and for other purposes. 20. ORDINANCE NO. 18,614 - To amend Section 34 -20 (a) of the Little Rock Transportation Code, Codified at Little Rock, Ark., Revised Code 34 -1 to 34 -97 (1988) to provide that specialized transportation service providers shall have automobile insurance in the amounts of $100,000 for the injury or death of any one person and subject to that limit for each person, $300,000 maximum liability for each accident, and $100,000 for each accident regarding damage to property, declaring an emergency; and for other purposes. M -1. ORDINANCE NO. 18,621 - To repeal portions of Little Rock, Arkansas Rev. Code 22 -24 (1988) as to parking fees in War Memorial Park; and for other purposes. The ordinances were read the first time; rules were suspended to provide for the second and third readings of the ordinances by two - thirds vote of the board members present. Director Adcock asked if all businesses had been notified of the business fee increases. Mr. Carney stated that the Chamber of Commerce had been contacted, and was sure those members were notified. He said notification was sent to all business owners advising them that changes would be coming, although specifics were not given as to what the changes would be, but that there would be a new schedule. Mr. Carney stated an update would be provided depending on the action the board takes. Director Keck stated he knew the focus had been on the inventory component, but hoped it would be looked at in it's entirety with hopes of restructuring. He asked when business privilege license fees were last raised. Mr. Carney stated there was a general increase twenty -four years ago. He stated the formula is the same that was used for that period of time. In some cases the percentage appears to be large, some as much as 35 %, the dollar amount may not be as severe on the smaller businesses. Mr. Carney stated they would look at all the components that make up the formula. Director Keck also asked if the city was about to price itself out of the market in regard to park and recreation fees. Mr. Carney stated he did not believe so, that fees at other facilities had been looked at, and did not believe it would price the city out of the market, but would be very competitive with similar facilities. Director Wyrick stated she would not be supporting Item 16. She stated she had received numerous calls from small businesses, and they do feel the increases are pricing the city out of the market. She asked if the city would be focusing on people who are not paying, and then possibly the people who are paying would not be penalized. Mr. Carney stated the research would look at the fairness issues as well as the formula. Director Wyrick stated this time; this year is not a good time to increase these fees and would not be voting in favor of this. Mayor Dailey announced he had asked Director Graves to work on this topic and over the time period between now and July. She would be organizing a committee or task force to study the inequities of the business privilege licensing. There was other discussion regarding a two -year sunset period, other options to equalize rates, senior citizen complaints of strain on them with fee increases. Mr. Carpenter recommended formalizing by resolution, charging the task force study, and staying within that the concept, they would come up with a new methodology for business licenses in general or recommendation as to a timeframe for these to be changed, and determine some period of review to maintain fairness. By a majority vote of the board members present the ordinances were passed. Director Wyrick voted no on Item 16, 18, and 19. Director Adcock voted no on items 16, 18 and 19. Director Pugh voted no on item 17. A voice vote was taken on the emergency clauses. Director Adcock and Director Wyrick voted no on the emergency clauses in Items 16, 18 and 19. There were some questions on some of the grouped items. Mayor Dailey, after discussion with the board, asked the clerk to read Items 22, 23, 24 and 27 together as grouped items. 21. ORDINANCE - To establish an agreement between the City of Little Rock and Solid Waste Service for an increased collection fee. (Item Deferred to later date.) 22. ORDINANCE NO. 18,616 - Authorizing the issuance of a promissory note to provide short term financing under Amendment No. 78 to the Arkansas Constitution for Capital Equipment and Vehicles; and prescribing other matters pertaining thereto. (Deferred from December 4, 2001). Director Stewart asked for more information on this item. Mr. Bob Biles, Finance Director, reviewed the items, status of the items and when the purchases were made, and explained the purchase items listed such as motorcycles, billiard tables, radios, etc. He also explained the five year timeframe for financing and the five year life expectancy of some of the items. Director Stewart stated she would not be in support of this item. 23. ORDINANCE NO. 18,617 - Amending Ordinance No. 17,648, establishing Permit Fee Schedules for Building, Electrical, Plumbing, Mechanical and related work performed in the City of Little Rock; repealing all Technical Code Ordinance and Code Ordinance provisions in conflict therewith, declaring an emergency; and for other purposes. el M IQ3 24. ORDINANCE NO. 18,618 - To establish for the immobilization of an automobile for which there are a number of outstanding parking fines or tickets pending; to establish a post- deprivation procedure for the release of any automobile seized pursuant to this ordinance; to declare an emergency; and for other purposes. 27. ORDINANCE NO. 18,620 - Z -7106 — Approving a Planned Zoning Development and establishing a Planned Industrial District titled Sea Inc. — Short Form PID located at the Southeast Corner of West Baseline Road and Sibley Hole Road in the City of Little Rock, Arkansas: and other purposes. Planning Commission: 11 yes. Staff recommends approval. The Ordinances (Items 22, 23, 24 & 27 ) were read the first time. Rules were suspended to provide for the second and third readings of the ordinances, by two third of the board members present. By majority voice vote of the board members present the ordinances were passed. Director Stewart, Adcock, Wyrick, Pugh, voted no on item 22. Director Wyrick voted no Item 23, Director Keck and Vice Mayor Cazort voted no on Item 24. The emergency clauses were passed by majority vote; Director Wyrick voted no on emergency clause in item 23, and Director Adcock, Wyrick, Stewart, Pugh voted no on emergency clause in Item 22. Director Keck and Vice Mayor Cazort voted no on the emergency clause in Item 24. Director Kumpuris made a motion to adjourn to Executive Session to consider appointments to various Boards and Commissions.. Director Lichty seconded the motion. The meeting recessed at 8:15 PM. The meeting reconvened at 8:40 PM. APPOINTMENTS 32. RESOLUTION NO. 11,193 - To make appointments to various Boards and Commissions. The meeting reconvened at 8:45 PM, and Mr. Carney read the Appointment recommendations which consisted of: Central Arkansas Library System: Jessee "JJ" Lacey, for reappointment, and Mr. James McHaney, Jr.for reappointment. Construction Board of Adjustment and Appeals: Danny Bennett, for reappointment, Douglas Brown, for reappointment. Museum of Discovery Board of Trustees: John Park, for reappointment, Robert L. Landford, for appointment, Jeffery Hildebrand, for appointment, Julie Sanders, for appointment. Racial and Cultural Diversity Commission: Robert L. James, for appointment. River Market District Design Review Committee: Melissa Tanner, for appointment. Sister Cities Commission: Rafael Bravo, for appointment, Linda Brown, for appointment, John Yates for appointment. Director Adcock made a motion to adopt the resolution to appoint the nominated candidates to the various positions. Vice Mayor Cazort seconded the motion, and by unanimous voice vote of the board members preset, the resolution was adopted. 25. RESOLUTION - To authorize the City Manager to execute the Little Rock Education Commission's fourteen recommended contracts for services. Director Adcock stated she had asked if these contracts were done with RFP's, and had not received information on that. A representative from Community Programs stated that the Education Commission does not have an RFP process, they have an application and a review process and they award the grants based on that. Director Adcock asked the City Attorney how the City could award contracts without RFP's. Mr. Carpenter stated he thought they were using RFP's, and thought the application process referred to was in fact that. Director Lichty stated he thought the RFP process kicks in when the amount is over $10,000. Mr. Carney stated when the aggregate amount in the course of a year is over $10,000 for the type of service. Director Lichty stated all of these appear to be under that threshold. Director Adcock stated all were to the Little Rock School District and combined they would be over the $10,000. Director Adcock asked that the item be pulled until the answers to the questions are answered. Director Adcock made a motion to defer the item for three weeks, Director Keck seconded the motion, and by unanimous voice vote of the board members present, the item was deferred to January 2, 2002. 7 /sy 26. ORDINANCE NO. 18,619 - Z -7107 - Approving a Planned Zoning Development and establishing a Planned Development — Office titled Center for Healing Hearts and Spirits — Short Form PD -O located at 2416 South Chester Street in the City of Little Rock, Arkansas; and for other purposes. Mr. Jim Lawson, Planning Director, gave an overview of the item. Mr. Lawson stated what the applicant has asked for is to use this as a typical office type of use. They will have a few employees, but as far as people coming and going, it is staff's understanding that most of the work they will be doing will be outside of this particular building. He said staff felt this was appropriate for the neighborhood. Ms. Erma Hendrix, PO Box 2644, and Mr. Lee Hill, 1011 W. 24th Street, and Mr. Tommy Brown, 923 W. 24th Street, spoke in opposition of the project, saying that the use is inappropriate use for the neighborhood, a residential area. They questioned whether they could have a program where a person is impacted by domestic violence, and not have some form of counseling. They questioned the hours of operation, walk -in and weekend traffic. They questioned the traffic flow into the building. Those in opposition presented the possibility of rebuilds on the vacant lot next to this location. They all agreed that the intent and efforts were commendable, but did not think spot zoning was appropriate for this particular area. Speaking in favor of the issue was Leta Anthony, PO Box 661 -4215 W. 11th Street, David Featherstone, 1858 Chester Street, and Barbara Douglas, 1520 Martin Luther King, Jr. Drive. Those in favor of the project cited location was very important in the work they are trying to do. They stated the amount of traffic would be no more than for a family of five. They stated there would not be any counseling done on the premises, saying that they had contracted with the Family Service Center for that. They stated that the purpose of the project would be to act as an inter -face or clearinghouse for the individuals needing service. They stated it was an administration only type service. They stated that they have a desire to improve the neighborhood, whether it is the human capital or property value. They stated the building had been completely remodeled and renovated, and would not deface the neighborhood, but rather improve it. They stated that a portion of the property had been donated, and that was another of the reasons they chose this house as the location. Director Kumpuris asked the business would cease operation if this were not approved. Mr. Lawson stated it is set up as a POD for The Healing Spirits and Hearts only. If the program went out of existence, the building would have to be used as a home. Director -- Keck asked Mr. Lawson, what if the applicant gets approved and in 90 or 120 days, they decide they really do need to have counseling or residents, would this be in conflict of their POD? Mr. Lawson said it would, and if it became knownto staff that they were doing this, an enforcement officer would be sent out to check, and if they were in violation, they would be asked to stop, and if they did not, they would be taken to court. Director Stewart asked about parking and hours of operation. Ms. Anthony answered that the hours would be 9AM to 4PM, and the parking would be in the rear. The ordinance was read the first time. The rules were suspended by two thirds of the board members present, to provide for the second and third readings of the ordinance. A roll call vote was taken and recorded as follows: Directors Pugh, no, Hinton, no, Lichty, no, Cazort, present, Keck, yes, Stewart, yes, Wyrick yes, Kumpuris, yes, Graves, yes, Adcock, no, Mayor Dailey, yes. The vote was 6 yes, 4 no, and 1 present. The ordinance was passed. M -3. ORDINANCE NO. 18,615 — To approve a franchise agreement with the Little Rock Sanitary Sewer Committee to establish the terms and conditions for the use of City rights -of -way and for other purposes. The ordinance was read the first time. Mr. Cy Carney, City Manager, gave an overview of the item saying this would be the fee that would be collected through the Sanitary Sewer System related to the fee the city would charge them and they would pay the city related to use of the public rights -of- way. This would be similar to the other franchise arrangements the city has with other public utilities. The average would be approximately eighty cents depending on actual usage, total bill per month. Mr. Carney stated the increase would be clearly identified on the users bill each month. Director Adcock asked if the fee would be on commercial users as well as residential. Mr. Carney answered that it would. A motion was made by Vice Mayor Cazort to suspend the rules and place the item on second reading; Director Lichty seconded the motion, and by two - thirds vote of the board members present, the ordinance was placed on second reading and was read the second time. Vice Mayor Cazort motioned to suspend the rules and place the ordinance on third reading; Director Lichty LV seconded the motion, and by two thirds vote of the board members present the rules were suspended and the ordinance was placed on the third reading. The ordinance was read the third and final time. A roll call vote was taken and recorded as follows: Directors Pugh -yes, Hinton- yes, Lichty -yes, Vice Mayor Cazort- yes, Keck- yes, Stewart- no, Wyrick- no, Kumpuris -yes, Graves- yes, Adcock- no, Mayor Dailey- yes. The vote was 3 no, 8 yes. The ordinance and emergency clause were passed. Directors Stewart, Wyrick and Adcock voted no on the emergency clause. Note: The emergency clause was retracted. (There was no emergency clause in the ordinance voted on. There had been one listed in the title on the agenda before the actual document was received.) The vote was recalled. 28. ORDINANCE NO. 18,605 - To amend Article VI, Chapter 2, of the Revised Code of ordinances to establish objective standards for financial reports submitted to the Board of Directors; to declare an emergency; and for other purposes. Director Lichty stated there were three ordinances dealing with the budget. Item 28 ( Ordinance # 18,605), Item 29 (Ordinance #18,606), and Item 30 (Ordinance # 18,607). Directory Lichty outlined the ordinances as follows: Ordinance #18,605 addresses the Financial Reporting mechanisms of the City of Little Rock; Ordinance #18,606 establishes the Restrictive Reserve Fund; Ordinance #18.607 approves the 2002 Budget for the City of Little Rock. He emphasized they were separate ordinances, but connected in that they achieve a unified purpose to enhance the reporting, the financial accounting of the City of Little Rock, and makes the process more public in that the reports will now be available to the public. Director Lichty stated that when the original ordinance was presented there were essentially fourteen elements, which were outlined last week to make them apart of the public record, and to make sure at the very minimum those elements got included in the new ordinances. He said those elements were incorporated. He stated the original ordinance was intended to accomplish (1) setting a mechanism to have monthly statements that were based on reconciled balances of the City of Little Rock (2) to establish quarterly detail financial reporting (3) to have certification by a City official of that reporting (4) To have formal acceptance mechanism by the Board of Directors, (5) to have a publication of the statement in the newspaper (6) to have a retention process of those records (7) To have a destruction of said records ( process included) (8) to create an initial funding cash reserve account (9) to create and provide for an initial funding of an infra - structure fund account (10) to restrict the use of the funds of both of the restricted accounts (11) to provide for the continued funding of the cash reserve account (12) to allow for the continued funding of the infrastructure account (13) to allow for prohibition of deficit budgeting (14) to include a provision that prohibits deficit spending. He stated that by action of this board, consideration of the infrastructure account has been eliminated. He said these ordinances would primarily be dealing with the reporting mechanisms and the creation and funding of the restricted reserve account. Director Lichty started the overview with Ordinance # 18,605 which is the ordinance that establishes the reporting format and mechanism for the City of Little Rock. He stated that Section I amends the existing ordinances. Section 2 allows for the title of this ordinance. Section 3 allows for the definition of terms — which will be referenced in this ordinance. Section 4 has a specific and separate paragraph that mandates a reconciliation of the funds. Section 5 allows for monthly financial report by fund type. Section 6 addresses the quarterly fund balance report and the affirmation by the City officials, and acceptance by the Board of Directors. Section 7 deals with semi - annual financial reports. Section 8 deals with publication of the financial reports. Section 9 details the maintenance of the financial records. Section 10 deals with destruction of the financial records. Section 11 references the restricted reserve fund, which will be established under the second ordinance (Item 29 — Ordinance 18,606). Section 12 references a timeline that was established to achieve certain things in the accounting process and reporting process. Section 13 — ensuring that any exemptions granted by higher authority will not trump these reporting requirements. Director Adcock asked for clarification on the publication of the financial reports. Mr. Tom Carpenter, City Attorney, stated the statute that deals with the publication of city documents already uses a terminology for what is a daily newspaper that would include papers like the Daily Record that does not publish on Saturday and Sunday. He stated that the legal notices would end up having to be published with whoever submits the lowest bid, and for the last several years has been the Daily Record. He stated the board is putting a new requirement on themselves, so it /9y N6 will end up in the Arkansas Democrat Gazette also. Some will not have to be published in a paper like the Arkansas Democrat Gazette and some will. The board would not get an option of either or unless the Arkansas Democrat Gazette happened to win the bid for various city notices, in which case the last section is worded in such a way that they have it published in that publication if it does not already hold the contract for publication. Director Adcock asked if anyone had a cost on the ads. Mr. Carney said no, but hoped to secure a competitive rate. Director Graves stated a ballpark figure would be for a four column, (four columns across the top) ten inches down, a minimum would be about fifty dollars a column inch, or roughly $2000, possibly more. Director Hinton asked if Notices could not be posted on the web site and picked up or viewed at City Hall. Mayor Dailey said he liked the idea of publishing it in our major newspaper, due to better. Director Adcock suggested they be inserted in water bills. Mr. Carpenter stated there was a cost associated with doing that also. Director Lichty stated he felt it was a very strong statement from the board and the City, and it may cost a few thousand dollars but the quarterly financial condition of the City of Little Rock, which has never been done before. Director Adcock said she would like to substitute the language to say in some way, some for the city to notify all citizens of Little Rock. Director Lichty asked Mr. Carpenter how you mandate notifying all the citizens of Little Rock, and comply with that. Mr. Carpenter stated that if what the board wished to do is put the reports into a handout with the Water Department or something of that nature, it really needs to say that because Notice is a term of art. The fact that you publish these meetings on cable means there is notice, the fact that you put an agenda on the wall, there is technically notice, so if you are asking for something more specific, the ordinance needs to say that. Mayor Dailey asked by a show of hands how many would like to keep it in as Director Lichty currently has it presented. There were six members who wished to leave it as outlined. Director Hinton pointed out in the sample report that the Police Department was excluded in reporting structure. Director Keck felt it was imperative that the ordinance be amended to include this to properly reflect what needs to be done. All Board members were in agreement on this. Director Adcock stated on page 9 of 18, Municipal Court Traffic was omitted. It was agreed it should be included. Director Lichty asked the Finance Director to go though the list to make sure everything was there that should be. 29. ORDINANCE NO. 18,606 - To require the establishment, funding, and maintenance of a cash reserves account for the City of Little Rock, Arkansas. Director Lichty briefly outlined the ordinance saying Section 1 amends existing ordinances. Section 2 establishes a title of the ordinance. Section 3 defines restricted reserve fund. Section 4 establishes the size of the restricted reserve fund. Section 5 sets the timeline for funding the restricted reserve fund. Section 6 limits the spending of these funds to a simple majority approval of the Board of Directors on the recommendation of the City Manager, and lays forth several criteria on which the City manager can come to the Board to request appropriation of funds from that restricted account. Section 7 mandates notice in the event there is any economic downturn that may impact city services or the restricted reserve fund. Section 10 supplements other provisions of Chapter 2 rather than amends them. Mayor Dailey asked Mr. Carpenter on the basis of fully funding the reserve fund December 31, 2005, even though the ordinance is passed; how binding is that or how does that operate within the structure of annual budget appropriations. Mr. Carpenter stated the ordinance is binding until a board amends it, and the only exceptions to that are when there is bonded indebtedness. Director Kumpuris asked what would happen to the interest once the goal amount is reached and was it spendable? Director Lichty answered that it seemed to him that if interest is part of the building up of that fund balance, and the limit has been established, interest then becomes a self - funding mechanism for that account. Director Kumpuris stated that might not necessarily be so. If you have that amount of money and your budget falls, then you would have exceeded both of your limitations or ceilings you want to get to, and it becomes a surplus. Director Kumpuris asked how much discrepancy would the Finance Director and staff have during the year to use any of that money once it is funded. Director Lichty answered, none, without the approval of the Board of Directors. Director Kumpuris stated that he hoped once it is fully funded, and you get to the five or ten million dollars, you an use part of that as that float during the year to pay for things, because that allows more money free to do some other things. Mr. Bob Biles Finance Director stated he saw the city having that particular fund building up to ten million dollars and at the same time, having the other part of the fund balance that would also be building up to the four or six million dollar 10 !97 range. Mr. Biles stated this was spelled out in the Budget Ordinance. Mr. Carpenter stated the way this works is the million and a half or whatever the amount that ends up being listed by the board in the budget, is what will be apart of this restricted reserve fund. Over the period of time between now and December 31, 2005, the board will build up to that ten million or ten percent of general fund amount. Once they get to that amount, they will maintain that amount unless the board should change the number. There are no real restrictions on the use of funds going in to that account year by year except for what the board says is a part of the budget ordinance. The belief was that it would be too restrictive upon the city to do that. With monthly reports to the board as to what the amount of the reserve fund is, there won't be the question of what is going on with the fund. Director Lichty asked the board to keep in mind that there is not any kind of definitive time frame established for when contributions would be made to that restricted reserve account. They could be made on the 31" of December each year, during which time, you have the float needed to run city business. Mr. Carney stated that as staff sees it, at the end of four years the ten million would be restricted, at any one time the city has fifty million dollars in cash, managed cash investments, those cash flow needs would be covered because of the inequitable revenue coming in various ways, and the idea is monthly payments or quarterly payments are not paid to the restricted reserve fund. This would be done at the end of the year to see how much could be paid toward that total, with the goal to get to ten million restricted, these rules applying to the ten million dollars. Director Keck said his concern was having the money for cash flow purposes. He said in Section 4 (Ordinance 18,606) it says in an amount equal to ten million dollars or ten percent of the annual operating fund revenues for a budgeted year, whichever amount is greater. Director Kumpuris asked for thoughts about adding another clause saying at the end of each year, these responsibilities and rules have to be either reconfirmed or changed by the board. There has to be an act of looking at them by the board each year. Director Lichty stated he didn't have any concern about it. Mayor Dailey asked the clerk to read Items 28 and 29. Ms. Kathleen Olson, League of Women Voters, asked, in the reserve fund that would be set aside and locked in, where the Urban Forestry Fund would come in to play. She stated that in past years that fund had been used to balance the budget, and a formal ordinance was created to say it could only be used for urban forestry, and its in with the general fund, and the reserve fund to be voted on does not comment on this. She was interested in knowing what would be done. Director Lichty stated that that did not have any bearing on this ordinance in his judgment, but if the question was what happens to the Urban Forestry Account, then Mr. Biles should be able to answer the question. Mayor Dailey stated a reserve account is separate from any other encumbrance whether its Urban Forestry or Police Department or PIT or whatever, it's cash set aside specifically for a "rainy day" experience the City Manager would have to come to the board to in order to tap into it. Mr. Biles further explained that in the board's action last week a fund was set up 105 called the Special Fund General Projects Fund, which authorized the transfer of the $796,000 of billboard money into that particular fund, into a an Urban Forestry Special Project. He said that carries over from year to year. The revenues and expenditures for that particular purpose always stay together and can be tracked through the life of the project. The ordinances were read the first time. The rules were suspended by two thirds of the board members present to place the ordinances on second and third readings. By voice vote of the board members present, the ordinances and emergency clause passed. Director Adcock voted yes on Item 28 and present on Item 29. Director Keck voted yes on Item 28 and no on Item 29. CITIZENS COMMUNICATION Ms. Molly Irvin, 507 Deer Brook Road, asked the board to install a traffic light at Barrow Road and Hinson. Mr. Truman Gray, 9305 Cloverhill Road, asked the board for the traffic light as referred to by Ms. Irvin. He asked for the light mainly for the safety of the children trying to cross Barrow Road to Henderson School. He said he was very concerned for the safety of the children. A motion was made by Vice Mayor Cazort to suspend the rules and extend the meeting past 11 PM to the amount of time necessary to finish the ordinances, and to take a ten - minute board break. Director Kumpuris seconded the motion. By 11 � Qg unanimous voice vote the motion carried, and the meeting recessed at 10:50 PM. The meeting reconvened at 11:15 PM. 30. ORDINANCE NO. 18,607 - Providing for and adopting the 2002 Budget for the City of Little Rock for the period beginning January 1, 2002 and ending December 31, 2002; declaring an emergency and for other purposes. Director Lichty covered the sections relevant to the original ordinance, which he proposed. Section 1 gives the purpose of the ordinance. Section 2 gives the definition of terms within the ordinance. Section 3 states a compliance with all the laws, statutes, and ordinances that have previously applied to the budget ordinance. Section 4 presents the actual budget itself by revenue and expenditures in the same order consistent with the previous definitions that exist, as outlined in Section 2. Section 5 deals with the payment in lieu of taxes to the school district. Section 6 references the creation of the restricted reserve fund. Section 7 the definition of significant variance in the budget, a defined term, which can change from year to year, through each budgeting process. Section 8 deals with the timeline for the preparation of the financial reports, and Section 9 deals with the appearance of the new reporting standards cited in the ordinance. Mr. Carney, City Manager, overviewed the key points of the budget stating the budget is in excess of $160 million dollars, funding all the operating services and programs the city will have beginning January 1. He stated this budget preparation was not without difficulty, and what is before the board, reflects significant decrease in level of service in certain areas. Internally this budget calls for eighty -one full time positions within the city organization to be eliminated effective January 1. He said only nine of the eighty -one positions actually have individuals occupying the positions at the current time. Of that nine, eight have had significant job offers within the city organization, four of the eight have accepted those, the other four are considering those offers, and the ninth position is a Police Department employee on a grant, the grant expiring in early 2002, and was confident there would be opportunities for that individual through some other vacancy. He stated this budget includes a ten percent reduction on the outside agency institutions, including Arkansas Transit and the Regional Jail Facility. Mr. Carney said this budget would mean some discipline on the part of city staff to be able to accommodate what we do with fewer personnel. The most important thing about the budget is how it affects existing employees. He said for the first time in a number of years there would be no salary increase for employees, except of the Little Rock Police Uniformed officers, who are under a contractual arrangement, which is the third year of the three year contract, and recommends honoring that obligation. He said the city had been able to accommodate the additional cost for major medical health insurance for employees; the additional premium cost is paid for by the city in this budget. He said the city will be forced to do more with less, and were prepared to do that, and recommended this budget to the board. Mr. Carney stated that some of the major issues that been worked through saying that the Nat Hill Health Clinic had been accommodated, beginning January 1, the Granite Mountain Community Center would be an ongoing relationship with the Public Housing Authority, and would continue to operate that facility and staff it, and take care of utility costs. He said the Ottenheimer Community Center arrangement has two parts. The Ottenheimer foundation has agreed to fund month to month the utility and operating costs. They have agreed for the month of January to do that. Director Wyrick stated that if the funding did not come through, she would like the Manager to take her travel allowance and apply it to the Ottenheimer Park until the funding could be figured out. The AARP Chapter group has volunteered to help the volunteer staffing and provide some staff with their organization. Mayor Dailey asked for clarification for the record, should there be any transition timeframe dealing with the Ottenheimer Center, how it would be handled. Mr. Carney stated the Ottenheimer Foundation will pay operating costs which are the utilities and the building costs, and that arrangement is in place. He said there is not a written agreement yet with the AARP Chapter but the city would work with them informally. He stated that this is the seniors program, and that all youth programs have been transferred to the Southwest Community Center. The final piece is that the four alert centers proposed to consolidate, is in the budget. The code officers at the current level of 35 will remain, and no reductions in Community Policing positions. There was a lengthy three -hour discussion, dealing with various portions of the budget document, including the proposed closing of several alert centers, what the centers cost to operate, the city's share of the jail costs, the job vacancies in the city, the forecasted sales taxes by the state, and at what percentage the budget is dependent on the taxes, raises for 12 I fff firefighters. Director Wyrick asked about the Police and Fire Pension Funds. She said it appeared there was a change, that prior to this year, the city was fully funding the Police and Fire Pensions, and with the change in the Board of Trustees, it appears the employees have to fund 6% and the city is capped at 6 %. The Fire Department has contacted her saying they realize they will not be getting a raise in 2002, but see the reduction in what the city was funding, in the way of retirements as a windfall to the city of 1.2 million dollars. What they would like to see, is a $611, 000 addition to the Budget for 2002, which would be a 4% increase for all the firefighters in the city. Director Wyrick mentioned that the representatives from the Fire Department that she had spoken with told her that Central Arkansas Transit Authority had been funded to almost the same level as last year, and that their employees were getting raises, but the firefighters were not getting any raises, and asked for staff to speak on this issue, and if there is the possibility this can be done. Mr. Carney, City Manager stated that the pension funds are state retirement funds, state statutes establish them, and are out of the control as far as the city. Mr. Carney stated he felt the state pension funds have overcharged the city and participants in terms of participation in recent years because now the funds are 150% funded. They have more than they should have, and at last the State Pension Boards have realized this, and caused reductions in the cities participation level. He said the total is approximately 1.2 million; that the city gained from the lower level, both police and fire, and have used the entire amount related to any other revenue source to the general fund to balance the budget. This amount is in the budget as part of the revenue source. The state can increase it back at the rate of no more than 1 % a year, but given the market, they may increase that in future years. Mr. Carney said the city pays to local pension funds, social security, state pension funds and pays whatever is required, and it does vary, and is different in terms of different pension funds and amounts, and percentage points. It is not a windfall, and was available dollars for the city, and if it were raised next year, the city would pay more. Mr. Carney stated that in the case of Central Arkansas Transit Authority, they did give salary increases, as did MEMS, but they cut services, routes, and laid off some employees, and as an organization, they determine how to manage their budget cut of 10 %. Director Keck stated that in a 164 million dollar budget, why the city could not come up with $600,000 less than 1% of the budget, to a line item in the budget so when a negotiated agreement is reached with the firefighter union, the city would be able to fund some type of a raise. He said it was a principle issue that he was having a hard time with and suggested that a way to get there from here is that seeing that there is $164 million plus in resources, and almost $164 million in uses, there is an approximate $107 million that is unallocated. He suggested that maybe rather than $1.5 million in the restricted reserve fund, that it be lowered to a million and then there would be some funds available for when a negotiated agreement comes into place. Director Keck offered this as an amendment. Director Pugh, Stewart and Wyrick did not believe the cost savings to be gained by cutting the Upper Baseline Alert Center was enough to justify its closing. Director Hinton stated he thought people were concerned about what might happen in the future if the centers are closed, not so much as right now. He said people feel they have a safety net with the centers. Director Hinton said he would be trying to find some dollars to save some of the alert centers. Director Hinton suggested possible fee increases at the impound lot to help fund the centers. Director Hinton proposed a "central supply" for the entire city. Vice Mayor Cazort proposed to reduce the amount allotted to the various departments under line items for supplies by approximately 2.8 %, which is $225,000, to be put in a parks maintenance fund to try and rehabilitate some of the old and dangerous playground equipment, etc. Director Adcock stated that according to her math, about $135,000 would get the four alert centers back on line. Mr. Moore stated it was more like $282, 967. Director Adcock asked how that figure was arrived at. Mr. Moore said its $13,000 for the Barrow Alert Center, $3,500 for Upper Baseline, $13,293 for Arch Street, and $5200 on Park Street, fifteen part-time positions, which are the receptionists. Director Adcock said she was talking about just to put the facilitators back in the facilities, not the receptionists. Mr. Moore stated this would run at approximately _ $187,000. Director Adcock said on the outside agencies, the city gives $432,000 to the Arts Center. They recently received $22 million dollars from the Stephens Family. Director Keck, and the Mayor said this was inaccurate information. Mayor Dailey stated they did a $22 million Capital Improvements program. Director Adcock stated the city gives hundreds of thousands to all of these institutions when that money could be taken instead and put in the alert centers where there would be safety in the community. She said over the last five years the city has added one cultural institution. She wanted staff 13 aov to look at this and see where reductions might be made to the tune of $187,000 to fund the alert centers. Director Lichty stated that less than a hour ago, two ordinances were passed, one of which was a restricted reserve fund which was established after a lot of meaningful discussion and a commitment on the part of this board to create a fund into which money would be put on an annual basis to deal with contingencies in the future. That was a decision to commit to this being a top priority item, and looking at a fairly low level of funding at 1.4 million for the first year. The suggestion is being made to start diminishing that funding. He stated that when this first came up and discussed, funding of the reserve account over a four year period, the suggestion was to do it at 25% a year. By a simple calculation, 25% of $10 million, would suggest an annual funding of $2.5 million, which is $1 million dollars less than what was discussed a few weeks ago. Director Keck stated the ending fund balance would be $3.5 million or that is what he understood Mr. Biles to say earlier. Director Keck stated he would take the zing on willing to do less than the $1.5 million. Mr. Biles stated the $3.5 million was before the reserve fund is taken out. Director Lichty stated that the reserve fund balance is tied to the general fund, which shows a $3.5 million dollar surplus. Director Lichty suggested the board not proceed on the assumption that they needed to start pecking away at the $1.5 million dollar commitment in this budget ordinance; to start funding that restricted reserve account. Director Stewart stated she was supporting the alert centers, as it leaves people unprotected, and fearful. She said she understood budget cuts, but it made no sense to close the alert centers. Director Graves said she empathized and sympathized, and would not take any additional money from the arts, she said she would love to keep the alert centers open, she supported the firemen, but did not see the flexibility at the eleventh hour to start jugging the budget. She said she would be happy to come back to it tomorrow, but thought the citizens need to be heard, they have been patient, that they needed to be listened to, and then call it a night, and come back if the board cannot agree. Director Pugh and Hinton supported the alert centers. Director Hinton stated he was one of the people who stated he would not touch PIT money, but did not see anything any better to use PIT funds, than to restore the alert centers. Mr. Carney stated there was no PIT carry over money forecast for next year. Mayor Dailey announced there were a number of citizens wishing to speak on the budget issues, and announced Ms. Annie Abrams, 1925 Wolfe Street, as the first speaker. Ms. Abrams spoke in favor of the financial reporting system, saying it will aid all citizens in monitoring equity and fairness as it relates to programs and employment practices and financial accountability. Ms. Kathleen Olsen, League of Women Voters of Pulaski County, commended the board for the ordinances passed dealing with financial reporting, and the reserve fund. She said the board would have to be disciplined in making financial decisions. Mr. Tony Rose, 8109 Mellwood, School Board Member, encouraged the board to reconsider the parts of the budget that called for the closing of the Baseline Alert Center. He said the alert centers have gone a long way toward making people feel safer; the students, parents, and people living in the neighborhoods, increasing their sense of security. He said the school district prizes the partnership, and wants to keep the alert center open. He said it is the least expensive of the alert centers, and not the one that it makes any sense to close. Dr. George Blevins, Jr. 1704 W. 19`'' St., concerned if a cost analysis was done to determine which areas of the budget would be cut, concerned of the major cuts in community services in Ward One and Two. He said the war on terrorism, with the establishment of the alert centers is being won. The loss of the alert centers would allow for a revival of terrorism in the neighborhoods of Little Rock. Ms. Emily Lawson, 2418 Arch Street, offered to donate space at 2203 Arch Street, which is a half block from the present center. She said the location would be donated free of charge to the city. She asked the board not to sacrifice a child's well being for clean streets, or the seniors right to leave their home, for tree lined streets, or sacrifice neighborhood safety for a manicured golf green. She said it is in the power of the board to return the alert centers to the neighborhoods. Ms. Pat Gee, 8409 Dowan Drive, stated most things have been said in support of the Alert Centers, saying that what was spent for the urban forestry program was just about the amount that would keep the Alert Centers in tact, and said she loved trees, but you were talking about life. She asked the board to keep the Upper Baseline Alert Center open and support the business, the elementary school, and the people in Southwest Little Rock. She stated all the alert centers are needed. Ms. Janet Berry, 8013 Mabelvale Cutoff, asked the board not to close the Upper Baseline Alert Center. She stated that the board was considering closing four of the sixteen alert centers, a twenty five percent cut, 14 ao/ and that no other sector of the budget was taking that kind of hit. She said the board is almost making the decision to balance the budget on the back of the poor people of the city, as that is the location of the Alert Centers. She also addressed the fact that the Mann Road Alert Center is operating with only one officer. She asked for consideration of public hearings throughout the budget process next year. Ms. Nettie Lawson, 2318 W. 1 lth Street, addressed the issue of the Park Street Alert Center closing. She said she was hoping with all the citizens coming to voice their views tonight that some consideration would be given by the board to keep the Alert Centers open. She said they still have gang and drug problems in their neighborhoods, and it would get back to the state it was in before the alert center if it is closed. Mr. Michael Preble, 1910 S. Arch Street, stated he was with the Arkansas Arts Center, saying he knew the Art Center was not built by one person, it was built by people who came in the door taking part in the programs, who contributed to make the expansion happen. He said there is no free money floating around the Art Center that every dollar has a use. He said there was much discussion as to how they would handle the 10% budget cut, and closing on Mondays was the decision they made, he said it was an awful decision to make, but was the least painful. He encouraged the board to continue to support the quality of life the Arkansas Arts Center can represent. Mr. Ed Jaros, 11520 Birchwood Drive, President of Little Rock Firefighters Local, stated he had sent each board member a letter on the 12`h of this month with concerns they had. Mr. Jaros said the city employees pay 6% of their salary into the retirement system. The reason the system is over funded is LOPFEE has been fortunate with the economy; the retirement system has been extremely fortunate. He stated they have produced over 20% in returns, and now those returns are being taken away. The over funding of the system has been cut out because of a board action, a board of five people, one a city employee. The over funding will be completely eaten up with no benefit increase to the employees who paid 6% of their salary in to it. He stated he wouldn't be here asking for a raise, knowing the situation with the budget, if it weren't for the fact that they were taking a triple hit; more than any other employee group. He said first they were taking a hit on the insurance, which all employees groups were taking, second on salary, and third on the retirement system. The only way they could increase their retirement benefits is to go to the State Legislature and request it, because it is a state system. He said they have no choice, they are required by law to participate in this system. He said he had never seen anyone from the City of Little Rock lobbying on behalf of their employees for any benefit increases to the system. He said he had seen the Arkansas Municipal league on every occasion lobbying against those proposing benefit increases that would strictly go against over funding of the system. He said it was his understanding that the city was a member of the Arkansas Municipal League. He said our own dollars are working against our employees. He said 6% of that money was his. He said the City Manager could say whatever he wanted about the overcharging of the retirement system, but when that system was first implemented, the city was contributing 16% of salary into that system. Since 1983 it has been reduced to 10.1 %. The retirement board took some huge assumptions in decreasing the city's contribution rates. He said it would take five or six years to undo what has been done. He said they were just asking that they receive their portion of those hard investments that were made. A portion should have been dedicated to the firefighters. The city receives insurance premium turn back dollars. For every insurance policy that is sold in this area, a tax is attached to that. The city receives those turn back funds from the state. These turn back funds are dedicated to police and fire pension, and cannot be used for anything else. In the past, before the city's contributions rates were changed, those in the city contributed 10.1 % (in that range) for firefighters, but the state turn back money off set that by almost 6 %. The city actually contributes out of general fund, less that the firefighters and police officers do. He said now the city would be contributing less than a half a percent out of general revenue to the firefighter retirement system. He said if you compare that to a non- uniform employee, covered by social security, where 7.6% is paid in, and another 4% to a retirement system. He said the firefighters have only one retirement system. Mr. Jaros stated Mr. Carney has some contractual obligations with this employee group and said they have a contract that says the city will negotiate in good faith with the firefighters; and while the negotiations are taking place in good faith, by setting aside no money, and publicly saying over and over again, that they would not give raises. He said that was not negotiation in good faith, and really disheartens the members to hear that over and over again. He asked the board to consider leaving some funds out there for the firefighters, to negotiate against. He said if it turns out that they do not negotiate for a single thing, at 15 aoa, least the funds were set -aside at one time. Put them back in the lock box after negotiations, but to cut their group off in the process isn't negotiating in good faith. Mr. Jaros stated the firefighters have done more and more with less and less for many years. He said he had looked back in the budgets from 1991, after salaries, here said there was a million and thirty eight thousand left for expenses, supplies, equipment, etc. In ten years time, in the 2001 budget, there is a million one hundred and forty thousand. Mr Jaros stated an increase of $10,000 a year for supplies and equipment for the firefighters was pitiful. He said you are asking firefighters to go out there and risk their lives, for less and less. He said their standard of living is dropping considerably this year, and wanted the board to understand the size of hit they were taking. Mr. Carney stated he had heard citizens tonight, and at all the public hearings that had been held, and there had been lengthy discussion. He said it's a difficult position o be in. He stated they looked carefully at what citizens said earlier, worked for compromise, restored, some things, made sure the code enforcement pieces and community - policing pieces were back in for those alert center areas. He said they have worked on the community center areas and issues, made the personnel cuts, but filled some vacant positions with existing personnel. He thanked the board for passing the ordinances for the additional fees, saying they were necessary. Mr. Carney said he thought it was a fair balance of reduction of expenditures, increased revenue pieces, and recommended the budget as presented. He said the reporting system adopted would help watch finances in the future. Director Wyrick said looking at what would be left over this year there would be approximately $845,000 as a carry over in the year 2002. She proposed that the $845,000 be utilized to fund the alert centers and to fund an increase for the firefighters. Director Wyrick stated that was her motion. Director Adcock seconded the motion. Director Lichty stated just as a point of order as he goes down the roster, was it the intent to vote on each one as presented, or collectively consider them. Mayor Dailey stated they would be accepted as when a motion is introduced on the floor. Director Keck called for a motion to amend Director Wyrick's proposal to be a total of $600,000, strictly for a line item in the budget for negotiating room for the firefighters. Vice Mayor Cazort seconded the motion made by Director Keck. Director Cazort stated there are alert centers, firefighters, parks, and a number of proposals of how to fund alert centers, and more than one proposal of where to fund firefighters and rather than put together a motion that deals with two, it seemed to him it would be better to deal with each of those three issues one at a time, and where the money is going to come from. He said while he appreciated what Director Wyrick was doing, he agreed with Director Keck that dealing with one issue at time would be better. Director Wyrick stated she would like to amend her motion. Mayor Dailey stated she would have to amend her amendment. Mayor Dailey asked to deal first with the amendment offered by Director Keck. Director Wyrick agreed. Director Wyrick stated her intent was, to exclude the firefighters from her motion, and let Director Keck present that. Mr. Carpenter stated that he had a couple of comments, one being a procedural one. Mr. Carpenter stated the time is one fifteen, and if the board members keep going down the road, and vote and don't vote and amend things, it seemed to him that it would be better to get all items the board is interested in on the table and at the conclusion of that, decide if the board wants to make a motion, and if the information is there for it, so that if something good comes up or gets massaged, at least is not a situation where it was voted down and now it would take an extraordinary vote to get it back on the table. Director Keck stated he would withdraw his motion, if Director Wyrick would withdraw her motion, and start anew. Director Wyrick stated she would withdraw her original motion. Mr. Carpenter commented that he was very well compensated and happy with that, but there are a lot of people who work within the city that make far less than even the firefighters do that could be even more impacted by this, and they haven't had a chance to come and speak to the board. He said the community groups have come to speak on the alert centers, the firefighters have a bargaining unit, but you haven't heard from your own employees who make substantially less, and they have been told raises were not going to happen, and before the board takes a final action, he felt they should have a change to say "this is what this budget means to me to ". Mayor Dailey stated he appreciated Mr. Carpenter's personal perspective on that. Mayor Daily recognized Director Wyrick. Director Wyrick motioned that out of the $$845,000 projected carryover for 2002, that $120,000 be taken to fund three alert centers, those being Arch Street, Park Street, and Upper Baseline. Director Pugh seconded the motion. Director Cazort said he could be persuaded to keep the three alert centers open, agreed with Director Hinton, that money needed to come out of Future Little Rock dollars. Mr. Bob 16 1903 Biles, Finance Director stated he was not trying to usurp the board's authority to make whatever change they wanted to make to the budget, but felt he owned the board the caution to understand this change isn't a one -year change. You are not voting on $120,000 for next year, you are voting on $120,000 forever, unless it's reduced at a later time. He said a similar circumstance exits when you look at raises for the firefighters, it isn't one year $600,000 hit, it a four year, two and a half million dollar hit. Mayor Dailey asked Mr. Biles to explain further. Mr. Carney interjected that what the finance director was saying is that unless the board reverses course next year, or the year after, these expenses would be ongoing. Mr. Carney went on to say if the board did choose the Future Little Rock funds as the source of funding for this, there is no carryover money. Mr. Carney said they would have to come back to the board with additional cuts in Future Little Rock money because there is not any money that is not already specifically allocated. There was a roll call vote, recorded as follows: Director Pugh, yes, Director Hinton, yes, Director Lichty, no., Vice Mayor Cazort, no, Director Keck, no, Director Stewart, yes, Director Wyrick, yes, Director Kumpuris, no, Director Graves, no, Director Adcock yes, Mayor Dailey vote present. The motion failed. Vice Mayor Cazort said it seemed to him if the city was going to fund them and keep them open, it needed to come out of Future Little Rock dollars, wherever that may be, and to him that was the most logical place, and doesn't touch the fund balance. Mayor Dailey said he could support that. Director Adcock made a motion to fund the three alert centers out of Future Little Rock dollars, Director Wyrick seconded the motion. Mr. Carney stated it would be helpful to him for those dollars to be identified as to the specific cuts to be made out of Future Little Rock dollars. Director Adcock asked for a list, and said the board would look at the list and make the recommendations. Mayor Dailey recognized Director Graves who stated she appreciated what the board was trying to do, and assured everyone that she had as much concern as anyone, but felt it was not appropriate for the board to discontinue programs at a moments notice. Director Lichty said the thing that was inappropriate to him was that you either want the alert centers or you don't, and it doesn't matter where the money comes from. Vice Mayor Cazort said where the dollars are coming from needed to be identified. Mr. Carney stated Director Adcock and Wyrick had identified three pieces of programming that could be reduced; for example Community Development, $90,000 down to $70,000, the Minority Incubator Program from $100,000 to $75,000, the Vision Little Rock, $95,000 to $70,000. Mr. Carney stated he would have real difficulty with those three choices in order to fund the alert centers. Mayor Dailey asked Mr. Carney what his thoughts would be if the board were to say find the $120,000 out of $3.5 million Future Little Rock programs next year. Mr. Carney stated the problem, when you look at future Little Rock for next year; there are only six line items in the whole thing, and it would be difficult. Director Adcock said her motion was to fund the alert centers from the New Futures monies, and for the City Manager to determine where the necessary program cuts would be made to fund them. Director Wyrick seconded the motion. Director Kumpuris said every group in the city has been made to squeak with the cuts made, and found it hard to come in at the last moment and say we are going to cut $120,000 from police or the incubator program, etc. and it is the sudden and impulsive cuts that are made that get the city in trouble. Mayor Dailey asked for a motion to call the vote. There was no opposition. A roll call vote was taken and recorded as follows: Director Pugh, yes, Director Hinton, yes, Director Lichty, no, Vice Mayor Cazort, yes, Director Keck, no, Director Stewart, yes, Director Wyrick yes, Director Kumpuris no, Director Graves, no, Director Adcock, yes, Mayor Dailey, no. The vote was 6 yes, and 5 no. The motion passed. Vice Mayor Cazort made a motion to amend the budget to reduce the line item for supplies for all city departments by approximately 2.8% equally a total of $225,000 and transferring that money to parks for a parks maintenance fund. Director Keck seconded the motion. Mr. Carpenter stated the fact of the matter is that the departments have not been heard from or notified of what is being given up, and said he could speak directly from his department. For example if they receive an FOI request, and get asked for video tape, they get bills for the tape, they have to pick up records to prosecute a DWI, the car has to be rented; item after item, and then when you get to a department like his where 3% of the operating budget has been cut, or a department like Fleet Services where you are cutting back on parts for the mechanic. He said two percent does not sound like a lot of money, but many departments area at the breaking point, and that is where this is, and it's a very significant thing. Mr. Carney said supply means a lot of different things, it includes protective clothing for the firefighters, ammunition for police officers, and he was convinced each department had 17 Roll done a good job of squeezing down their supply amount, and objected to an across the board kind of cut. Mr. Biles said a good portion of the supplies represent vehicle costs, for fuel, repair, etc. and that would be cut and have to be managed. A roll call vote was taken and recoded as follows: Director Pugh, no, Director Hinton, no, Director Lichty, no, Vice mayor Cazort, yes, Director Keck, yes, Director Stewart, no, Director Wyrick, no, Director Kumpuris, no, Director Graves, no, Director Adcock, no, Mayor Dailey, no. 9 no votes, 2 yes votes, the motion failed. Director Keck made the motion to place a line item in the budget for negotiations for the firefighters in the amount of $600,000 out of the fund balance, saying there was nothing in the budget allowing for any opportunity to negotiate with the firefighters for raises, not to say that would be the amount they would negotiate. Director Cazort seconded the motion. Mayor Dailey commented that his problem was that if in negotiations the City Manager comes back and says we need to give #5, 1 % whatever it might be, he would have to figure out a way to accomplish that, but thought that was the City Managers role in dealing with this in this form of government. Mayor Dailey said he felt this was inappropriate for the board to be trying to direct or apparently steer, what could be an indication that the board was saying to the Manager that this was something they wanted him to work out as part of the negotiations, even though Director Keck has put a conditional caveat in there. Mayor Dailey also commented that the Municipal League has never campaigned against municipal employees. He said they campaign for local control, in his opinion. Director Keck said one of the things that is unique in regards to the circumstances this year is that one of the ways the city has met the budget was because changes in regards to requirements to the retirement system, and if that was not something that was available to the city, then additional cuts would still have to be looked at. He said what he was proposing allows at least, some room to negotiate and hopefully be something the board could support. Mr. Carney said he objected to this particular motion for a couple of reasons. He said number one is that the board just entered into negotiations. He stated that Director Keck had just set the bar and set it at $600,000 and that is what the firefighters would be at the table saying, that the board voted for it, saying that is the magic number period and that is what we are going to do, and thus have entered the negotiating business. There are three labor unions, and with this motion the door is being opened for all groups to come every year and didn't think it was appropriate for the board to deal with personnel actions. Mr. Carney said the other, and most important part to him, was that the other employees, fifteen hundred of them, are not getting raises. The only contract is with the FOP for one year, and the other contracts have expired, and thought this was not where the board wanted to go. Director Adcock suggested to call this a salary fund, not a firefighters fund, and that way other employees might be included, perhaps an incentive for a department head to stay instead of leaving. Director Keck said he appreciated the suggested amendment, and by putting a dollar amount in there maybe that established the bar, but the fact that there is nothing in the budget right now, eliminates the consideration of anything, and that was very problematic with him. He said things that have accrued related to turnback funds that have allowed the city to balance the budget. Given those two combinations of events, thought the city needed to do something. Director Lichty stated with all the good intents, for the reasons Mr. Carney just outlined, it is bad policy for the board, and a treacherous slope to go down, and encouraged everyone to vote against this particular motion. Director Keck stated there is another policy being set tonight, and this was his eighth budget that he has had the privilege of voting on, and every year prior to this, whether there has been a negotiated agreement or not at the time the budget has been voted on, there has at least been an allocation made when the budget was approved, so that when there was a negotiated agreement with the firefighters union, there would be a budgeted amount, so the other slippery slope we are going down is saying we are going to fly blind, go zero, and if there is an agreement, figure out then, where it comes from. Director Kumpuris said he thought the boards clear responsibility was hiring and working with two people, and the rest of the people are under those two peoples authority. He stated that when the board decided those two people were not doing the right thing, then during their evaluation, their performance would be critiqued. He said as the board does this, that is entering into negotiation and if in fact during the negotiations, the negotiation team for the city comes back and says were need extra money, then it is Mr. Carney's problem to come back to the board, and say, this is what I negotiated, and with that negotiations, here are the changes in the budget, and that in his opinion, was the way the board should be carrying on policy, as a general situation. He said he thought this would be stepping into an area that would be regretted one day. Mayor Dailey called for a roll call vote, which was recorded as follows: Director Pugh, no, Director Hinton, no, Director Lichty, no, Vice Mayor Cazort, yes, Director Keck, yes, Director Stewart, present, Directory Wyrick, yes, Director Kumpuris, no, Director Graves, no, Director Adcock, no, Mayor Dailey no. The vote was 3 yes, 7 no, 1 present. The motion failed. Director Lichty called for the first reading of the ordinance. Director Graves seconded the motion. Directors Adcock, Wyrick and Stewart voted no, Directors Pugh, Hinton, Lichty, Cazort, Keck, Kumpuris, Graves, Mayor Dailey voted yes. The ordinance was read the first time. Director Keck made a motion to suspend the rules and place the ordinance on second reading. Director Lichty seconded the motion. Director Adcock voted no, all other board members voted yes, the vote being 10 yes, 1 no. The rules were suspended and the ordinance was read the second time. Director Keck motioned to suspend the rules and place the ordinance on third and final reading. Director Lichty seconded the motion. There was none opposed. Director Adcock made the motion to amend the ordinance to set aside $600,000 out of the carryover money for City manger to use as raises as he sees fit. Director Wyrick seconded the motion. A roll call vote was called and recorded as follows: Director Pugh, no Director Hinton, no, Director Lichty no, Vice Mayor Cazort, yes, Director Keck, yes, Director Stewart, no, Director Wyrick yes, Director Kumpuris, no, Director Graves, no, Director Adcock, yes, Mayor Dailey, no. The vote was 4 yes and 7 no. The amendment failed. The ordinance was read the third and final time. A roll call vote was recorded as follows: Director Pugh, yes, Director Hinton, yes, Director Lichty, yes, Vice mayor Cazort, yes, Director Keck, no, Director Stewart, yes, Director Wyrick no, Director Kumpuris yes, Director Graves, yes, Director Adcock, yes, Mayor Dailey yes. The vote was 9 yes, 2 no. The ordinance passed. The emergency clause passed with a vote of 10 to 1. Director Wyrick voted no. Director Keck stated it was not his intent to cross the threshold of involvement in management and union negotiations, and hoped it has caused little if any damage. He asked if negotiations had not been completed by the thirty first of December, would the city still abide by the terms of the contract, still continue to operate as if there is one, and asked Mr. Carney what his game plan was in going foreward. Mr. Carney answered that he felt is was important to have an agreement, to continue the current agreement is an option, and would continue to negotiate on some type of agreement, and thought there was some agreement on some changes and improvements, work rules, and other things, and would try to blend those in but it was desirable to have some agreement in place come January L Director Keck said this initiative was his, and hoped it in no way damaged either side in regard to negotiations that occur. Director Lichty made a motion to adjourn, Director Graves seconded the motion and by unanimous vote of the board members present, the meeting adjourned at 2:15 AM. 31. REPORT - City Manager's Activity Report — No report. ATTEST: cy Wo d, City Clerk 19 APPROVED: Wftlx. OaLhq On Dailey, Mayor aos