REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE CITY OF TEXARKANA, ARKANSAS APRIL 16, 2012

Transcription

1 REGULAR MEETING OF THE BOARD OF DIRECTORS OF THE CITY OF TEXARKANA, ARKANSAS APRIL 16, 2012 MEMBERS PRESENT: The Board of Directors of the City of Texarkana, Arkansas, convened in regular session at 6:30 PM on April 16, ROLL CALL: Mayor Smith asked the Clerk to call the roll and the following Board Members were present: Mayor N. Wayne Smith, Assistant Mayor James Mike Jones, and Directors Ruth Penney Davis, Chad Dowd, Laney J. Harris, and Sue Johnson. Also present were City Manager Harold E. Boldt, City Attorney Ned Stewart, and City Clerk Patti Scott Grey. Director Londell Williams was absent. meeting. Mayor Smith asked that it be duly noted there was a quorum present for tonight s INVOCATION: The invocation was given by Mayor N. Wayne Smith. PLEDGE OF ALLEGIANCE: Mayor N. Wayne Smith led everyone in the Pledge of Allegiance. COMMENTS FROM THE MAYOR: Welcome: Mayor Smith welcomed the public and city staff to tonight s board meeting and he briefly talked about his plans for the month of May. He commented he would be out for both May meetings, May 7, 2012 and May 21, He said his son was getting married and his son and future daughter-in-law had asked him to conduct the marriage ceremony and later that month he 1

2 has been asked to be a high school Commencement Speaker. He was honored by both requests. Assistant Mayor Mike Jones would be present to conduct those May Board of Directors meetings. PRESENTATION: Walk the Line Clean Up Day April 21: Mayor Smith recognized City Beautiful Commission (CBC) Chair Nedra Turney. Ms. Turney thanked the mayor and the board for letting her speak at tonight s meeting. She said the CBC was one of the hardest working groups she had ever worked with. Our Keep Texarkana Beautiful Commission was hosting the Walk the Line Clean Up Day on Saturday. It would begin at 8:00 AM at the Downtown Post Office and would work toward Interstate 30. The group would also go half a block off State Line Avenue to clean up debris. They would try to clean up Broad Street, 3 rd Street and 4 th Street downtown. The participants would start at 8:00 AM and they hoped to be done by 12:00 noon. The participants would receive breakfast. Debbie Cole worked very hard to provide breakfast and t-shirts. She said the commission did not have a budget and relied on the generosity of this group and the community to provide food, drinks, t-shirts and so forth. The commission chose this time for the clean up in support of the upcoming RailFest, Car Show and the Bandit Run She asked the board and the community to support the Clean Up Day. She thanked Brandy Chewning with the Texarkana Gazette for getting the word out about this event as well as Beech Street Baptist Church KFLI and Media Manager Eric Ethridge from the city staff. The commission was seeking additional members. Their mission was to work with committed citizens and business owners to glean a beautiful, clean and attractive community. They believed it would increase the value of the community and attract new businesses. Ms. Turney introduced the members of the commission: Ramona Flowers; Rod and Debbie Cole; Wendell and Mary Warner; Rick Hall; and Parks Superintendent Ross Cowling. 2

3 Mayor Smith said the commission did an outstanding job. Last year an individual found some money and because it was unclaimed, it went back to that individual. On behalf of the city board, the city appreciates the hard work of the commission. National Historic Preservation Month: Mayor Smith spoke briefly spoke about National Historic Preservation Month and read the proclamation. It read, as follows: PROCLAMATION National Historic Preservation Month May 2012 WHEREAS, historic preservation is an effective tool for managing growth, revitalizing neighborhoods, fostering local pride and maintaining community character while enhancing livability; and WHEREAS, historic preservation is relevant for communities across the nation, both urban and rural, and for Americans of all ages, all walks of life and all ethnic backgrounds; and WHEREAS, it is important to celebrate the role of history in our lives and the contributions made by dedicated individuals in helping to preserve the tangible aspects of the heritage that has shaped us as a people; and WHEREAS, Discover America's Hidden Gems" is the theme for National Preservation Month 2012, cosponsored by the City of Texarkana, Arkansas, the Arkansas Historic Preservation Program, the Department of Arkansas of Heritage, and the National Trust for Historic Preservation; NOW, THEREFORE, I, N. Wayne Smith, Mayor of Texarkana, Arkansas do proclaim May 2012 as National Preservation Month and call upon the people of Texarkana, 3

4 Arkansas to join their fellow citizens across the United States in recognizing and participating in this special observance. N. Wayne Smith, Mayor ATTEST: Patti Scott Grey, City Clerk Mayor Smith said he would not read the list this year, but if anyone was interested there was a list of the city s National Register of Historic Places twenty-six properties on line. They were as follows: 1. Alvah Horace Whitmarsh House 711 Pecan Street ( ) 3. Beech Street Brick Street between E. 14 th & E. 24 th Streets ( ) 5. Bottoms House 500 Hickory Street ( ) 7. Canaan Baptist Church Laurel and E. 10 th Streets ( ) 9. Claude Fouke House 501 Pecan Street ( ) 11. Dean House 1520 Beech Street ( Hopkins Feed and Seed Store 301 East 3 rd Street ( ) 2. Augustus M. Garrison House 600 Pecan Street ( ) 4. Beech Street Historic District - between E. 14th & E. 24th Streets ( ) 6. Buhrman-Pharr Hardware Company Historic District 610 & 623 E. 3 rd Street ( ) 8. Charles J. Neif House 1410 Pecan Street ( ) 10. Cotton Belt Railroad Office Building 312 East Broad Street ( )) 12. East Broad Street Historic District 100-block of East Broad Street ( ) 14. J. K. Wadley House 618 Pecan Street ( ) 15. John Clifton House 1803 Pecan Street ( ) 16. Kittrell House 1103 Hickory Street ( ) 4

5 17. Miller County Courthouse 400 Laurel Street ( ) 19. Orr School 831 Laurel Street ( ) 21. Ritchie Grocery Building East Front and Olive Streets ( ) 23. Texarkana Municipal Building East 3 rd and Walnut Streets ( ) 25. Texarkana Union Station North State Line Avenue and East Broad Street ( ) 18. Mullins Court 605 Hickory Street ( ) 20. Patrick Ahern House 403 Laurel Street ( ) 22. Swift Building 410 East Broad Street ( ) 24. Texarkana U. S. Post Office and Courthouse East 5 th Street and North State Line Avenue ( ) 26. Wallace Adams Service Station 523 E. 3rd Street ( ) Texarkana, Arkansas Public Employee Retirement System (TAPERS): Mayor Smith recognized Finance Director Jessica Hyman who gave a brief PowerPoint presentation. Ms. Hyman said she would present the changes to the TAPERS plan, which was the city s major retirement plan for non-civil service employees. TAPERS had been in effect since 1979 and since its creation the employer had contributed six percent of an employee s salary. The benefits paid at a rate of percent of salaries. Funding percentages provided by Werntz & Associates stated in 2007 the plan was 121 percent funded; 2008 the plan was 105 percent funded; 2009 the plan was 87 percent funded; 2010 the plan was 66 percent funded; and in 2011 the plan was 69 percent funded. Actuary Danny White from Gabriel, Roeder, Smith & Company recommended the following changes be made to the TAPERS plan: increase contributions; move non-vested and partially vested employees (with less than 10 years of service) from TAPERS to a defined contribution plan; and close the TAPERS plan. The employer would increase contributions from six percent to ten percent of the employee s compensation. The city would implement a mandatory employee contribution of 2% of compensation. Danny White also recommended an annual contribution of $225,000 to the TAPERS plan. The city intended to make an annual contribution as finances allowed. Effective July 1, 2012, the following non-civil service employees would be enrolled in the ICMA 401 (a) 5

6 plan: current employees with less than ten years of service; and new employees hired on or after July 1, All no-civil service employees with ten or more years of service would remain in the TAPERS plan. For transitioned employees the benefit earned in TAPERS would be frozen as of July 1, No additional benefit would be earned. The vesting credit would continue to be earned on the frozen TAPERS benefit. Effective July 1, 2012, TAPERS would become a closed-end fund. No additional participants would be enrolled in the plan. Werntz & Associates has been the actuary for TAPERS since The TAPERS Retirement Committee voted to use Gabriel, Roeder, Smith & Company as the actuary for the TAPERS plan effective July 1, Regions Bank was the current investment manager and trustee of the TAPERS fund. The TAPERS Retirement Committee voted to use Stephens, Inc. as the investment manager and Bank of the Ozarks as the trustee of the TAPERS fund effective July 1, The city also used Stephens, Inc. and Bank of the Ozarks for the Old Police and Fire Pension Plans. ICMA provided retirement plans and related services to more than a million public sector participant accounts. The city had used ICMA s retirement services since ICMA 401(a) versus TAPERS: ICMA 401(a) was a defined contribution plan and the benefit was based on how much was contributed and/or earned; TAPERS defined benefit plan was based on a formula. ICMA 401(a) the employee chose investment options and the investment manager of the TAPERS fund handled investments. ICMA 401(a) offered immediate vesting and with TAPERS, vesting began at six years of service. In both the ICMA 401(a) and TAPERS plans, the employer would contribute ten percent and the employee contribution would be two percent. ICMA 401(a) offered a wide variety of investment options and employees had the freedom to invest as necessary to meet their retirement goals. An ICMA representative would be at the city several times during the month of May to meet with employees about the 401(a) plan and their investment options. Ms. Hyman said she would be happy to answer any questions. Mayor Smith said for those individuals that would remain in TAPERS, the city was asking them to provide a two percent donation and their retirement would not change one bit. 6

7 Ms. Hyman said that was correct. The way that TAPERS worked was based on a formula. Mayor Smith said to him, he thought it was unfair to those individuals that would remain in TAPERS, because they had no option. The city was asking them to contribute two percent, but they would not receive anything in return for that two percent. The senior employees with higher salaries would pay two percent that would go into a program or investment, that they would not see any benefit from, other than they would get two percent less pay. Ms. Hyman said that was right. Mayor Smith said from his perspective if he was one of those employees, he would be a little bit concerned. He said the employees going to the new program, which he commented he thought was an outstanding program, was the best thing to do with our city employees. Ms. Hyman said the two percent was part of Danny White s recommendation. She said he did not necessarily say the employee had to make the two percent contribution, but his recommendation was a total contribution, with whatever ratio of employer or employee, of percent. She said the Retirement Committee felt the city was stepping up by putting in an additional four percent and the employee could contribute something. On top of that, the city would make additional contributions to ensure these employees had their benefit when they retired. Mayor Smith said he believed the additional city contribution would be $225,000. He asked about $324, pay out benefits to ineligible retirees, in 2006, 2007, and He said the city needed to get that money back. Somebody owed the City of Texarkana. Ms. Hyman said she would need to speak with an attorney regarding that matter. She did not have the legal expertise to get the money back, but she did know pay outs were approved and authorized by the committee overseeing the plan. 7

8 Mayor Smith said he understood Ms. Hyman was new to this. He said it was his understanding to be eligible for the payout one had to have 20 years of service plus 60 years of age or 30 years of service and 55 years of age. Ms. Hyman said or you could be 65 years old, which was normal retirement. The individuals that were paid out did not meet the years of service or the age requirement. Mayor Smith asked if everyone on the Retirement Committee signed off on those pay outs. Director Davis said she and Director Johnson were on that committee to salvage the pension fund. If we did not make that adjustment, the plan would go under like the Titanic. Unless the city felt inclined to throw in more money, there was no other choice. She knew it was not fair to Ms. Scott Grey (Referring to City Clerk Patti Scot Grey Also, referenced in the January 20, 2009 Board of Directors meeting minutes, as one other individual the City would do the right thing. ), who had been working for the city and was promised a benefit. She said somebody dropped the ball in the past and did not alert the city that it was terribly unfunded. This was our next best option. Mayor Smith said he agreed there was no other option. Director Davis said it was not fair, and she understood. Director Johnson said the committee had lots of discussions and it was very challenging to come up with the changes. Mayor Smith said he was a spokesperson and wanted to publicly announce concerns about the plan. Mayor Smith commended the Retirement Committee, as well as Ms. Hyman for their work on the city s retirement plans. Ms. Hyman thanked the members of the Retirement Committee. Mayor Smith said he wanted the city to pursue the issue of the nine employees, who received benefits and were not eligible for that benefit. He commended the Retirement Committee for not allowing any ineligible payouts for 2010, 2011 and

9 Ms. Hyman said they were definitely taking measures to ensure they were adhering to the guidelines. City Manager Harold E. Boldt said when those funds were paid out; they forfeited their right to any other retirement, right or wrong. One of the problems over time was the actuary was computing all these options. CONSENT AGENDA: Assistant Mayor Jones moved to approve the consent agenda. The motion was seconded by Director Dowd and carried unanimously. The items approved by consent were: MINUTES: The minutes approved were of the regular meeting of April 2, 2012 and the called meeting of April 9, RESOLUTION NO. 5890: Resolution No granted permission to Hopkins Icehouse to have its 4th Annual Craws for a Cause Event, benefiting the American Red Cross, on Saturday, April 28, 2012, from 5:00 PM 1:00 AM. The Chief of Police, Fire Chief, and Director of Public Works had each approved this event and the City Manager and City staff recommended approval. Hopkins Icehouse also requested permission to close E. 3 rd Street between Wood and Walnut Streets and the City of Texarkana, Arkansas Board of Directors granted permission to close the requested street during the event. RESOLUTION NO. 5891: Resolution No granted permission to Hopkins Icehouse to have its 3rd Anniversary, benefiting the American Cancer Society, on Saturday, May 12, 2012, from 6:00 PM 1:00 AM. The Chief of Police, Fire Chief, and Director of Public Works had each approved this event and City Manager and City staff recommended approval. Hopkins Icehouse also requested permission to close E. 3 rd Street between Wood and Walnut Streets and the City 9

10 of Texarkana, Arkansas Board of Directors granted permission to close the requested street during the event. RESOLUTION NO. 5892: Resolution No granted permission to Joseph McGee to have a Community Day on Fox Street, Saturday, May 19, 2012 from 3:00 PM until 11:00 PM. The Chief of Police, Fire Chief, and the Director of Public Works had each approved this event and the City Manager and City staff recommended approval. Mr. McGee also requested barricades on Fox Street at its intersections with Ferguson and Kirby Streets and the City of Texarkana, Arkansas Board of Directors granted permission to barricade those requested streets during the event. REGULAR AGENDA: 2012 COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG): PUBLIC HEARING: Mayor Smith recognized Public Works Director Paul D. Hackleman. He opened a public hearing to receive comments, regarding amending the FY2012 Budget (Resolution No. 5851) and the Public Works Budget to make adjustments to the 2012 Community Development Block Grant (CDBG) budget allocation. Mr. Hackleman stated the planning figures for the 2012 CDBG Budget had to be adjusted from $289,364 to $253,354. This new amount included our 2012 Entitlement of $229,540 plus $23, of prior years entitlement that was being reallocated. The original budget was our best guess at how much might be funded using past allocations. Please note the budget recommendations were the same projects with the exception for the adjustment in the amount of funding within each category with the exception of Public Service, which relatively stayed the same. The changes to the amended budget were as follows: Grant Administration, approved amount $47,000, amended amount $45,822 line item decreased by $1,178; Code Enforcement, approved amount $54,458, amended amount $41,783 line item decreased by $12,675; Public Facilities Improvements, approved amount $150,101, 10

11 amended amount $62,549 line item decreased by $87,552; Public Service, approved amount $3,200, amended amount $3,200 line item did not decrease; Clearing and Housing Demolition, approved amount $34,605, amended amount $100,000 line item increased by $65,395. Mr. Hackleman said he would be happy to respond to any questions. Mayor Smith asked if anyone in the audience or board members had questions or comments concerning this item. Director Harris asked if this was the year the Five Year Plan would be amended. Mr. Hackleman said maybe that would happen at the end of the year. This item was just finishing up the 2012 budget. Director Harris said for every $5 used to tear a house, he wanted $3 used to help repair houses. This could not be done, based upon the current Five Year Plan, which only had money for house demolition. Assistant Mayor Jones asked how the difference would be made up; for instance Code Enforcement decreases. Code Enforcement had a pretty set budget. Mr. Hackleman said it was a set budget and there was money left over from 2011 and money would not come from the General Fund. Assistant Mayor Jones wanted to make sure the money to make up the difference did not come out of the General Fund. Mayor Smith asked if anyone in the audience had additional questions or comments. No one else came forward; therefore the Mayor declared the public meeting closed. RESOLUTION NO. 5893: Resolution No was read in its entirety. Said resolution amended the FY2012 Budget (Resolution No. 5851) and the Public Works Budget to make adjustments to the 2012 Community Development Block Grant budget allocation. Resolution No. 5851, passed December 6, 2011, approved the 2012 Community Development Block Grant (CDBG) allocation proposed by the Housing and Community Development Department in the amount of 11

12 $289, The City received a reduction in its allocation to $253, The Housing and Community Development Department recommended the following changes to line item allocations: Grant Administration reduced from $47, to $45,822.00, Code Enforcement reduced from $54, to $41,783.00, Public Facilities Improvements reduced from $150, to $62,549.00, Clearing and Housing Demolition increased from $34, to $100,000.00, with no change to the Public Service allocation of $3, The City Manager and Staff recommended approval. Director Davis, seconded by Assistant Mayor Jones, moved to adopt the resolution. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the resolution adopted, as there were six ayes and no nays. RESOLUTION NO. 5894: Resolution No was read in its entirety. Said resolution amended the FY2012 Budget (Resolution No. 5851) to include the CDBG-Disaster Grant (Community Development Block Grant Disaster Funds) IKE-1. The planning figures for the FY2012 Public Works budget had to be adjusted to include the Community Development Block Grant (CDBG) - Disaster Grant IKE-1 Award Funds. The City was awarded grant funds in the amount of $253, in October of 2010 and was awarded additional funds in the amount of $443, in January of 2012, for a combined amount of $696,960.00, for various drainage improvement projects within the City. The Public Works budget should be adjusted to amend the budget to accept the grant revenue and approve expenditures for drainage improvements projects. The City Manager and Staff recommended approval. Mr. Hackleman said the planning figures for the FY2012 Public Works budget had to be adjusted to include the Community Development Block Grant (CDBG) - Disaster Grant IKE-1 Award Funds required for the drainage improvements to Nix Creek from East 9th Street to South State Line, Kniffin and Park Place, Draughn/College Street culvert and inlet replacements, 12

13 Trapezoidal Concrete Chanel at Jackson Street and Nix Creek Bank Stabilization. In October of 2010, grant funds were awarded to the City in the amount of $253,585 from the Arkansas Economic Development Commission (AEDC), which included $121,975 for dredging of Nix Creek from East 9th Street to South State Line Avenue and $119,535 for drainage improvements to Kniffin and Park Place. In January of 2012, additional funding was awarded in the amount of $443,375, which included $32,400 for a box culvert replacement and two new inlet boxes at Draughn and College Street; $186,600 for a trapezoidal concrete channel at Jackson Street and Ivy Creek tributary; $213,360 for Nix Creek Bank Stabilization at the confluence of the Ivy Creek tributary; and $20,590 for South West Arkansas Planning and Development District (SWAPDD) to administer the Grant. The City Manager proposed to amend the budget to accept the grant revenue and expense of $696,960. Funding Sources: CDBG-Drainage Projects Funding Sources As of 4/6/2012 Funding sources: Amount AEDC Grant 2010/ , Entitlement 3, Entitlement 27, Entitlement 62, Total Funds 790, Expenses: Project No. 1 Nix Creek Dredging 137, Construction and Engineering Fees Project No. 2 Kniffin/Park Place 135, Construction and Engineering Fees Project No. 3 Draughn/College 37, Construction and Engineering Fees Project No. 4 Trapezoidal Chanel 213, Construction and Engineering Fees Project No. 5 Nix Creek Bank Stabilization 244,

14 Construction and Engineering Fees SWAPDD 20, Grant Administration Contract Total Expenses 788, Balance 2, Mayor Smith asked what was the grant total. Mr. Hackleman said $696, Originally the grant was $253,585. It was a significant increase in the grant amount. Director Harris commented at Washington and Sunflower California Streets (At the May 7, 2012 Board of Directors Meeting, Director Harris asked the Sunflower Street name be corrected to read California Street.), the creek was causing heavy erosion problems. He asked Mr. Hackleman if he had ever looked at that area. Mr. Hackleman said Sunflower California Streets (At the May 7, 2012 Board of Directors Meeting, Director Harris asked the Sunflower Street name be corrected to read California Street.) Street was not ringing a bell, but he had been on Washington Street north of Dudley and the railroad tracks. Director Harris said along the creek the land or property was being eroded. He asked Mr. Hackleman to take a look at that area to see what could be done. Mr. Hackleman said with CDBG money, citizens needed to attend public meetings and voice their concerns, because those projects were predominately the ones that would be funded. Director Harris said he also wanted to bring up the drainage issues. Mr. Hackleman said there were drainage problems all over town. The City Staff is aware. The issues had to be brought up in the public meeting. Director Harris asked Mr. Hackleman to notify him of the next public meeting. He said he would attend and bring up his concerns. Assistant Mayor Jones said the board could not change this plan, because it was not in the grant proposal. This was what the City had to spend the money on at this time. 14

15 Mr. Hackleman said that was correct, because it was in the grant and was awarded by project, the City would have to go back to the State of Arkansas and ask that it be changed. He said he thought the city was very fortunate to receive the additional grand funds of $443, Director Harris, seconded by Director Davis, moved to adopt the resolution. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the resolution adopted, as there were six ayes and no nays. RESOLUTION NO. 5895: Resolution No was read in its entirety. Said resolution authorized the City Manager to enter into a consulting contract with CLB Engineers, Inc. for drainage improvements along Nix Creek to include Draughn/College Street, Jackson Street trapezoidal concrete channel and Nix Creek bank stabilization. Mr. Hackleman said this was a request for a resolution, authorizing the City Manager to enter into a consulting contract with CLB Engineers, Inc. for Drainage Improvements along Nix Creek to include Draughn/College Street, Jackson Street trapezoidal concrete Chanel and Nix Creek bank stabilization in the amount of $60,610. The appropriation required for this item would come from funds held in the CDBG 2011 Entitlement Funds. Funding Sources: As of 4/6/2012 Funding sources: Amount 2011 Entitlement 62, Total Funds 62, Expenses: Project No. 3 Draughn/College 4, Engineering Fees Project No. 4 Trapezoidal Chanel 26, Engineering Fees Project No. 5 Nix Creek Bank Stabilization 30, Engineering Fees 15

16 Total Expenses 60, Balance 1, Mayor Smith asked if anyone in the audience or board members had questions or comments concerning this item. Director Dowd, seconded by Assistant Mayor Jones, moved to adopt the resolution. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the resolution adopted, as there were six ayes and no nays. TEXARKANA, ARKANSAS PUBLIC EMPLOYEE RETIREMENT SYSTEM (TAPERS): ORDINANCE NO. M-49: An ordinance was introduced to be entitled, "AN ORDINANCE ADOPTING AN AMENDED AND RESTATED CITY OF TEXARKANA, ARKANSAS PUBLIC EMPLOYEE RETIREMENT PLAN; FOR DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES". Said ordinance would revise the City s Texarkana, Arkansas Public Employee Retirement System (TAPERS) Plan. Mayor Smith asked if this ordinance approved the whole package. Finance Director Jessica Hyman said this ordinance would adopt amendments to the TAPERS Pension Plan that have been discussed over a series of TAPERS Committee meetings in the last few months. The original plan was adopted in Some of the major changes were, as follows: 1) an increase in employer contributions from 6% to 10% of compensation; 2) they City intended to contribute additional funds as recommended by the actuarial firm of Gabriel, Roeder, and Smith; 3) mandatory employee contributions in an amount equal to 2% of compensation; 16

17 4) transition plan to a close-end fund, which would prohibit any new participants to enter the plan; 5) transition employees who were not 100% vested to another plan. These employees with less than 10 years of service would have their accrued benefit frozen in TAPERS. They would not earn any additional credit, but would continue to earn vesting on their accrued benefit; 6) redefined the Retirement Committee to bring the current committee in compliance with City ordinance; and 7) at the recommendation of the actuarial firm of Gabriel, Roeder, and Smith, the City intended to make additional employer contributions as circumstances allowed. The effective date for these changes was requested to be set for July 1, Mayor Smith said he had one question, regarding Article 8 of the TAPERS plan. The current one was Article 8 Planned Administrator and the new one was Article 8 Retirement Committee Administration of the plan. He wanted the board to know that we were going from a Planned Administrator, which was the Retirement Committee, and was responsible for administering the plan. The new one stated The Plan shall be administered by the Retirement Committee, which shall perform such duties as are specified hereunder. The City Manager shall have oversight of the Retirement Committee. All decisions of the Retirement Committee shall be subject to review by the City Manager, and the City Manager may take action upon recommendation of the Retirement Committee and approval of the City Board of Directors. He wanted everyone to understand the authority of administration was changed from the committee to ultimately, the city manager. Ms. Hyman said the City Manager could take action upon recommendation of the Retirement Committee and approval of the City Board of Directors. He needed approval from those two entities. Mayor Smith said he did not read it that way and he may be reading it incorrectly. Director Davis said the committee went over that in their meeting. 17

18 Mayor Smith said he read it differently. Director Harris asked where Mayor Smith got that information. Mayor Smith said it was one of the agenda item attachments. Director Johnson said the committee cleaned up the language a lot. Mayor Smith said he wanted to make sure everyone understood what the City Board of Directors was about to do. Director Harris asked what the Retirement Committee said about these changes. Director Davis said the committee went through the plan. The Committee tried every way in the world to make it as clear as possible. If it was altered, since the Committee had those meetings but if it was not, the Committee was fairly much in agreement. Director Johnson said the committee made the recommendation. Mayor Smith said this was one section that really jumped out and was significantly different. Director Davis said our committee was a pretty strong committee and she knew Mr. Boldt understood that it would have to be from the committee. Mayor Smith said this was not directed at the city manager. Director Davis said there had to be someone. City Manager Harold E. Boldt said in a way, the city manager was assuming that responsibility in the past and this clarified it. Ms. Hyman said the City Manager could only take action on request of the committee and with approval of the board. Mayor Smith said the committee was made up of two board members and three employees. The committee members did not have to be participants in the retirement program. He asked if a retiree could serve on the committee. Director Davis said that meant one of us had to go. Assistant Mayor Jones said we could enlarge the committee. 18

19 Director Davis said if they were already drawing retirement, it seemed a little strange that they would have a say so on what was going to affect the people who were in the plan presently. She did not see the rationale. Director Dowd moved to have the ordinance read in abbreviated form. The motion was seconded by Director Johnson and carried unanimously. The ordinance was read the first time. Director Dowd moved the rules be suspended and the ordinance be placed on its second reading. The motion was seconded by Assistant Mayor Jones. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the motion carried, as there were six ayes and no nays. The ordinance was read the second time and the Mayor declared the ordinance open for discussion. Director Dowd then moved the rules be further suspended and the ordinance be placed on its third and final reading. The motion was seconded by Assistant Mayor Jones. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the motion carried, as there were six ayes and no nays. The ordinance was then read the third and final time and the Mayor declared the ordinance open for discussion. Assistant Mayor Jones, seconded by Director Dowd, moved to adopt the ordinance. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the ordinance passed, as there were six ayes and one nay. EMERGENCY CLAUSE: Mayor Smith commented the item stated a need for an emergency clause, but it did not have a reason. It said Staff has asked for an emergency clause and a special request has been made by staff to take action on this item tonight. The Finance Department has asked this item be expedited and passed at tonight s 04/16/2012 Board Meeting. 19

20 Finance Director Jessica Hyman said the emergency clause was necessary to get all the paperwork and arrangements made by July 1, Assistant Mayor Jones, seconded by Director Davis, moved to approve the emergency clause. The Mayor asked the Clerk to call the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the motion carried, as there were six ayes and one nay. RESOLUTION NO. 5896: Resolution No was read in its entirety. Said resolution authorized the City Manager to enter into agreements with Gabriel, Roeder, Smith & Company for actuarial services; Stephen, Inc. for investment management services; and Bank of the Ozarks for trustee services of the TAPERS Retirement Plan. Director Dowd, seconded by Assistant Mayor Jones, moved to adopt the resolution. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the resolution adopted, as there were six ayes and no nays. ORDINANCE NO. M-50: An ordinance was introduced to be entitled, "AN ORDINANCE ADOPTING A 401(a) PLAN FOR NON-CIVIL SERVICE NEW HIRE EMPLOYEES HIRED AFTER JUNE 30, 2012, AND NON-CIVIL SERVICE EMPLOYEES TRANSITIONED FROM THE TEXARKANA, ARKANSAS PUBLIC EMPLOYEE RETIREMENT SYSTEM (TAPERS); FOR DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES". Said ordinance adopted the 401(a) retirement plan for some non-civil service employees. Director Dowd moved to have the ordinance read in abbreviated form. The motion was seconded by Director Johnson and carried unanimously. The ordinance was read the first time. 20

21 Director Dowd moved the rules be suspended and the ordinance be placed on its second reading. The motion was seconded by Director Davis. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the motion carried, as there were six ayes and no nays. The ordinance was read the second time and the Mayor declared the ordinance open for discussion. Director Dowd then moved the rules be further suspended and the ordinance be placed on its third and final reading. The motion was seconded by Director Davis. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the motion carried, as there were six ayes and no nays. The ordinance was then read the third and final time and the Mayor declared the ordinance open for discussion. Director Dowd, seconded by Assistant Mayor Jones, moved to adopt the ordinance. The Clerk called the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the ordinance passed, as there were six ayes and one nay. EMERGENCY CLAUSE: Assistant Mayor Jones, seconded by Director Dowd, moved to approve the emergency clause. The Mayor asked the Clerk to call the roll and the following vote resulted: Directors Davis, Dowd, Harris, Johnson, Jones, and Smith voted aye. The Mayor declared the motion carried, as there were six ayes and one nay. Mayor Smith congratulated Directors Davis and Johnson for their work as members of the Retirement Committee. He also thanked the City Staff. CITIZEN COMMUNICATION TIME: Mayor Smith said the Public Works Department was doing a good job cleaning up the city and improving the city s appearance. They targeted excessive tires and did a good job. One area was targeted and stopped, because of a little bit of controversy and that was the removal 21

22 of abandoned vehicles. He spoke with the Public Works Director, City Attorney and City Manager and there was a lawful city ordinance, regarding abandoned vehicles and Code Enforcement Officers was mandated to abide by the city ordinances. The ordinance stated that if any abandoned vehicle had been on any property for 30 days, then a day notice was left on the vehicle and also mailed to the owner of the vehicle and the owner of the property. If the vehicle was not repaired, moved, licensed, it would be towed. The city did not make exceptions. It was not the police department s responsibility. The police department was only involved, if the vehicle was wrecked or disabled. It was Code Enforcement s responsibility to handle code violations. City Attorney Ned Stewart commented briefly on the trial held last week against the City of Texarkana, Texas. He said he would be happy to answer any questions regarding the trial. He said the City of Texarkana, Texas, took the position that in 1975, they passed an ordinance that created an entity, referred to the Department of Water Utilities of the City of Texarkana, Texas. It was their position that Texarkana Water Utilities (TWU) had never existed and that TWU as the City of Texarkana, Arkansas, knew it was actually the Department of Water Utilities of the City of Texarkana, Texas. Executive Director Bill King and Financial Director Webb Stanley had worked for TWU for over 20 years, and during that entire time, neither one of them had heard of the Department of Water Utilities of the City of Texarkana, Texas. He said he and Mayor Smith presented evidence to the Judge on the amount of money, which could be in excess of $2 million; the Texas City Manager had pulled from TWU. Some of the money went to Riverbend, and $400,000 went to attorney s fees. The funds were Texas funds, but it was still an extraordinary amount of money to pull out of TWU. He said post trial briefs were due on or before May 9, 2012 and then a written opinion from the court would come in due course. Director Harris said back in December 2011, he requested an Attorney General s opinion from State Representative Steve Harrelson, regarding the abandoned vehicle ordinance. 22

23 Mayor Smith said the city had an ordinance and until the City receives an Attorney General s Opinion or the board rescinds the existing ordinance, it would be enforced. The city could not make exceptions, because one person did not like the ordinance. The City Board of Directors has a responsibility to our city to clean up junk vehicles that are polluting our city streets. ADJOURNMENT: There being no further business to come before the Board, on motion duly made, seconded, and unanimously carried, the meeting adjourned at 7:40 PM. ATTEST: N. Wayne Smith, Mayor Patti Scott Grey, City Clerk 23