City Council

CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2018 7:00 P.M. – 7:46 P.M. REGULAR CITY COUNCIL MEETING - CITY HALL - #1 MUNICIPAL DRIVE The City Council of the City of Jacksonville, Arkansas met in regular session on August 16, 2018 at the regular meeting place of the City Council. Councilman Bishop delivered the invocation and Mayor Fletcher led a standing audience in the “Pledge of Allegiance” to the flag. ROLL CALL: City Councilman: Elliott, Bolden, Sansing, Traylor, Twitty, Smith, and Collins answered ROLL CALL. Mayor Fletcher also answered ROLL CALL declaring a quorum. PRESENT SEVEN (7) ABSENT (3). Others present for the meeting were: City Attorney Robert Bamburg, Finance Director Cheryl Erkel, Public Works Director Jim Oakley, IT Director Scott Rothlisberger, Fire Chief Alan Laughy, Police Chief John Franklin, Parks and Recreation Director Kevin House, Human Resource Director Jill Ross, Program and Economic Development Director Robert Price, Planning Commissioner Patrick Thomas, Addie Gibson, Lida Feller, Rick Kron, Johnny Simpson, Glenda Fletcher, Bob Johnson, interested citizens, and members of the press. PRESENTATION OF MINUTES: Mayor Fletcher presented the minutes of the regular City Council meeting of July 19, 2018 for approval and/or correction at the next regularly scheduled City Council meeting. APPROVAL AND/OR CORRECTION OF MINUTES: Councilman Bolden moved, seconded by Councilman Twitty that the minutes of the regularly scheduled City Council meeting of 21 June 2018 be APPROVED. MOTION CARRIED. CONSENT AGENDA: REGULAR MONTHLY REPORT/POLICE DEPARTMENT Councilman Bolden moved, seconded by Councilman Sansing to approve the regular monthly report for July 2018 regarding annual crime statistical comparisons REGULAR MONTHLY REPORT/FIRE DEPARTMENT Councilman Bolden moved, seconded by Councilman Sansing to approve the regular monthly report for July 2018 from the Jacksonville Fire Department, reflecting a fire loss of $44,500.00 and a savings total of $980,500.00. REGULAR MONTHLY REPORT/ENGINEERING DEPARTMENT Councilman Bolden moved, seconded by Councilman Sansing to approve the regular monthly report for July 2018. PERMITS/LICENSE ISSUED INSPECTIONS PERFORMED Building Permits 13 Building Inspections 19 Business Licenses 11 Electrical 29 Plumbing 27 HVACR 15 1  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2018 7:00 P.M. – 7:46 P.M. REGULAR MONTH REPORT/ANIMAL CONTROL Councilman Bolden moved, seconded by Councilman Sansing to approve the regular monthly report for July 2018. ADOPTION FEES/FINES $1,050.00 CONTRIBUTIONS 0.00 TOTALS $1,050.00 Councilman Collins questioned Police Chief Franklin if the Police Department had lost any capabilities with the firing range behind the Animal Control Department being shut down when the gun noise became an issue. Chief Franklin replied that they did not, he pointed out that they have the new range behind the Police Department, explaining that they are about to begin some additional construction on that range. He related that the Police Department had received a grant for $25,000.00 from the FBI and are going to construct a “house mockup” that can be used with the Officers and SWAT teams. He then added that it would be used for other agencies as well as the Jacksonville Police Department, a lot of other agencies come to Jacksonville to use our facilities. He went on to say that we loan our facilities to the FBI and other agencies that do not have much of their own. He then explained that they managed to move Sherwood’s people over to the range behind the Police Department for the following day. He added that they are still in discussions about that. He stated that he would suspect that they are going to have to eventually phase out the range behind the Animal Control Department. Councilman Collins questioned if the Police Department would be losing any capabilities for Jacksonville’s officers by phasing that range out. Chief Franklin stated that he did not believe any capabilities would be lost, adding that he thinks they can make it work with the range they have. He stated that most departments do not even have two ranges, adding that they have a very nice outside range and they will be adding to it. He continued saying that would be okay. He then answered that their weapon systems are covered. Councilman Traylor requested that the monthly report be shortened to comparables between the current month and the same month last year. In response to a question from Councilman Bolden, Chief Franklin clarified that they have received a $25,000.00 grant from the FBI to modernize the range behind the Police Department. He stated that they are constructing the previously mention mockup, explaining that they have purchased the lumber. He stated that this will offer a more realistic training for when they may have to assault a house dealing with a hostage barricade terrorist situation, which happens all over America, even in small cities. He noted that it is to the FBI’s advantage to contribute to the improvements, because they use the range for training. 2  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2018 7:00 P.M. – 7:46 P.M. At this time MOTION CARRIED. ROLL CALL: Councilmen: Elliott, Bolden, Sansing, Traylor, Twitty, Smith, and Collins voted AYE. MOTION CARRIED. WATER DEPARTMENT: WASTEWATER DEPARTMENTS: FIRE DEPARTMENT: POLICE DEPARTMENT: STREET DEPARTMENT: Request to accept bid North First Sidewalks Public Works Director Jim Oakley related that they received a grant for sidewalk construction on North First Street, starting at Dale Drive and going south to the Pulaski County Health Department. He noted that the grant will pay 80% of the projected construction costs. He stated that he is recommending the low bid from Barger Excavating in the amount of $95,216.00 with funds to be drawn from the Street Fund. He noted that Barger Excavating has been used by the City in the past and they have done great work. Councilman Traylor moved, seconded by Councilman Twitty to accept the low bid from Barger Excavating, Inc. in the amount of $95,216.00. MOTION CARRIED. SANITATION DEPARTMENT: PARKS & RECREATION: PLANNING COMMISSION: GENERAL: a. RESOLUTION 772 (#09-2018) A RESOLUTION SUPPORTING APPROPRIATE LEGISLATION TO ENCOURAGE PROPER ASSEMENT AND COLLECTION OF SALES TAX FROM ALL INTERNET/ONLINE SALES TO CREATE A FAIR AND FREE MARKET FOR ALL BUSINESSES AND CONSUMERS IN LIGHT OF THE U.S. SUPREME COURT DECISION IN SOUTH DAKOTA V. WAYFAIR, INC., ET. AL.; AND, FOR OTHER PURPOSES. Councilman Bolden moved, seconded by Councilman Elliott to read Resolution 772 (#09-2018). City Attorney Bamburg explained that the case of South Dakota V. Wayfair has been pending for a number of years, clarifying that Wayfair is an online retailer. He noted that several states have legislation similar to what has been presented in Arkansas as well, to tax online Internet sales. He related that there had been some prohibitions and concerns because of that; but South Dakota’s legislation, which is very similar to what has been presented for passage in Arkansas’ legislature, was successful in withstanding a challenge by Wayfair. He related that a number of states are getting in line with what needs to be done in order for not only states to tax but also counties and cities too, to implement sales tax for the online sales. He related that Resolution 772 is to encourage the Arkansas Legislature and the Governor to pursue some type of either special session or support to get that bill back before the Legislature in order for it to be addressed in Arkansas. Councilman Sansing stated that while he has reservations he does understand the need; so he does support the Resolution. 3  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2018 7:00 P.M. – 7:46 P.M. Mayor Fletcher related that this has been called “fair market legislation” in Congress, adding that it does level the playing field. He stated that without this legislation it is a small business killer. He stated that a law was passed in 1948 but how we do retail has changed. He stated that the “mom and pop” stores are struggling to compete with Internet sales, adding that it is even affecting the big box stores. He stated that brick and mortar stores are what give people the jobs. He posed what is more important – saving a few dollars on tax or providing community jobs and small business owners’ livelihood. He pointed out that other states will follow this example and he hopes the Municipal League will become more involved. He explained that it is important that this Resolution be passed now because it would offer two opportunities for this to be addressed by the legislation, noting that following the November Election there will be new legislation members. He related that this passed in the Senate and was very close in the House. Councilman Bolden stated this is important because of the affect on brick and mortar stores and it would level the field of sales, as well as bringing income into the City for online sales. In response to a question from Councilman Traylor, City Attorney Bamburg stated that there is a minimum level of gross sales volume before the online tax kicks in. He related that under the scale that is currently proposed by both the Arkansas Legislature as well as what was before in South Dakota that would not have activated any type of action. He then concurred that the activating amount is $100,000.00. Councilman Collins stated that one of the additional second order effects is that we have people that are running taxi services in Jacksonville that under our Code 5.20 that have to pay taxes overhead for doing a business that an entity like Uber or Lyft does not pay. He continued saying that it would probably cost the City more to chase those businesses than what the City could collect. He stated that it is still considered an Internet business and the City needs to consider the City Codes that keep our businesses from having a level playing field. Chief Franklin noted that there are B&Bs operating in Jacksonville, and City Attorney Bamburg stated they would fall under the Hotel/Motel taxes as well as the sales tax. State Representative Bob Johnson related that he is on the State task force and they are working on this currently. He explained that last session this passed in the Senate but failed in the House by 8 votes. He added that several of the Representatives had stated that if the Wayfair case was settled they would have voted for the bill. He stated that local businesses have an unfair competition, adding that all the states are considering this. He explained they are pushing the Governor for a special session to get this done, saying this is not a new tax, it is already on the books. He then clarified that services such as Uber or any taxi service do not have sales tax. He reiterated that this is not a new tax, this tax is supposed to 4  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2018 7:00 P.M. – 7:46 P.M. be paid for online purchases. He stated that in 1948 there was not an Internet but now it’s big retail and it is hurting our local businesses if we do not pass this legislation. He related his support for Resolution 772, noting that he would be meeting with the Lieutenant Governor to persuade the Governor to hold a special session. It was clarified that municipalities charge a privilege tax for local taxi services but there is not a sales tax associated with that service. Councilman Bolden stated that it has been brought to his attention that some of the military personnel on Base want to be Uber drivers as a part time job. City Attorney Bamburg stated that an Uber driver would be required to meet the same standards as the taxi services, adding that there are none that have gone through the full application process within the City. He then noted that they would have to satisfy State law as well as City Code in order to be able to provide that service. Councilman Elliott reminded everyone it is local businesses that sponsor City events and local ball teams, and they need to be offered a level field for competing with online businesses that do not support local events or the Police Department, Fire Department, or any other local endeavor. Mayor Fletcher noted that approximately 65% of the City budget is sales tax and physical stores also pay property tax which goes to support our schools. Patrick Thomas, a local businessman related that his business is a 100% online Internet sales. He stated that he is against this proposition, saying that the first time this came up on a national level it was called the “Main Street Fairness Act”. He related that this is not true. He cited the difference between brick and mortar stores and his business, brick and mortar have a showcase; adding that he will admit that some online shoppers go to the brick and mortar stores to examine the physical object they are interested in purchasing, then they purchase online. He stated that he does not feel it is his fault that he operates his business more efficiently than Wal-Mart, adding that in theory his business, as an electronic business, his business has an infinite capacity to sell. He continued saying that Wal-Mart also has the ability to do that, they have a brick and mortar store and distribution centers which are finite compartments; Wal-Mart is stuck in the model of selling in a finite world. He stated that for the businesses that have discovered a way to sell infinitely through various warehouses across the Country, it is not our fault that we have become more efficient. He acknowledged that the State of Arkansas already has a process in place, adding that he has studied it and formed CU-1 which is in the tax book. He stated that it is there to be turned in on an annual basis, noting that we already have in place for the State of Arkansas a mechanism to receive those taxes. He related that he submitted from CU-1 once and the State didn’t know what to do with it, elaborating that he made a $150.00 tax payment using CU-1 to the DF&A and they told him we are not here to collect sales tax. He 5  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2018 7:00 P.M. – 7:46 P.M. related that with the mechanism in place, it is not his fault that he is operating more efficiently than a brick and mortar store. He continued saying that as far as the fairness part of it, he has people paying shipping and handling fees that far exceeds the sales tax that they are being accused of wanting to evade. He stated that it is not sales tax that they are trying to evade, he stated that we need to educate the citizens of Arkansas to do the right thing and we need to get the mechanism into the real world of receiving taxes collected. He related that when he tried to pay those taxes, he was told that he would have to mail the check to Little Rock. He added that there is more to be said about Fire trucks and Whit Davis delivering lumber to Hot Springs, Arkansas regarding point of delivery and point of sale. He pointed out that point of delivery would get the sales tax instead of Jacksonville. He stated that any work legislatively should be to simplify the process that he as a business owner would have to go through, adding that he does not want to get into the conversation regarding zip codes and who would get the services for the 2% he as a business owner would be required to collect. He noted the numerous counties nationwide that would be involved if all states elect to do this, explaining that as a small business operator, working efficiently, he is making a profit. He then added that if the brick and mortar cannot have their tangible products online to sell like he does, it is not his fault. He stated that if he is told by 50 States that he has to collect sales tax for 3,006 counties, he will have to close his business because he cannot hire the data collector to key stroke pennies that will go to the various counties. He then mentioned that it would cost the State of Arkansas $50.00 to send that check for a penny to that county, noting the domino effect of all this work that will have to be done. He stated that the easy way to do this is to rethink our approach and tell the legislators to bring point of sale back to where the sale originated. He stated that the work load for data collection and remission would be reduced tremendously. He stated that this will destroy small business. Councilman Elliott stated that just because a business is operating more efficiently it should not keep them from paying sales tax. Mr. Thomas stated that he is not advocating that they do not pay sales tax. Mayor Fletcher stated that this is not going to be a debate. He offered the floor to anyone else wanting to speak, with no one else offering to speak he called for a vote. ROLL CALL: Councilman Elliott, Bolden, Sansing, Traylor, Twitty, and Smith voted AYE. Councilman Collins voted NAY. MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 772. Councilman Bolden moved, seconded by Councilman Traylor to approve Resolution 772 (#09-2018) in its entirety. ROLL CALL: Councilman Elliott, Bolden, Sansing, Traylor, Twitty, and Smith voted AYE. Councilman Collins voted NAY. MOTION CARRIED. 6  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2018 7:00 P.M. – 7:46 P.M. b. RESOLUTION 773 (#10-2018) A RESOLUTION SUPPORTING THE CITY OF JACKSONVILLE ENROLLMENT AND PARTICIPATION IN THE CLASS ACTION LITIGATION PINE BLUFF ADVERTISING & PROMOTIONS COMMISSION ET. AL. V. HOTEL.COM, L.P., ET. AL., JEFFERSON COUNTY CIRCUIT COURT NO. CV2009-946-5, TO PURSUE APPROPRIATE DAMAGES FROM DEFENDANTS FOR IMPROPER ASSEMENT AND COLLECTION OF SALES/HOTEL/MOTEL TAXES FROM ALL Internet/ONLINE BOOKINGS AT LOCAL HOTELS/MOTELS; AND, FOR OTHER PURPOSES. Councilman Collins moved, seconded by Councilman Bolden to read Resolution 773 (#10-2018). City Attorney Bamburg related that approximately seven or eight years ago, Pine Bluff Advertising and Promotion Commission started an action against the online retailers who book hotels etc. regarding their failure to pay the proper amount of Hotel/Motel taxes as opposed to the gross amounts that they should be paying on, many of those entities are only paying on the net including whatever discounts available, adding that there is a long formula in that circumstance. He stated that the action has gone through the Circuit Court in Jefferson County and it is now at the Supreme Court, adding that there have been a number of both municipalities and A&P Commissions that have joined in as part of the class. He stated that it does not costs Jacksonville to join in, the class has been certified, the fees will be paid to the attorneys out of the class collection so we do not have to write a check for whatever the attorneys fees or costs may be. He added that he feels it would be a positive for Jacksonville to participate because it would allow us to join in for the number of years that this goes back and the amounts that these entities have booked in order to pay us. He stated that in order to authorize the Mayor to sign off on a letter agreement with counsel that is part of this action; the City Council will need to pass this Resolution. ROLL CALL: Councilman Elliott, Bolden, Sansing, Traylor, Twitty, Smith and Collins voted AYE. MOTION CARRIED. Whereupon City Attorney Bamburg read the heading of Resolution 773. Councilman Bolden moved, seconded by Councilman Collins to approve Resolution 773 (#10-2018) in its entirety. Councilman Traylor confirmed with City Attorney Bamburg that if the appeal is not successful there would be no costs to the City of Jacksonville. City Attorney Bamburg added that it is only if the class is successful. ROLL CALL: Councilman Elliott, Bolden, Sansing, Traylor, Twitty, Smith and Collins voted AYE. MOTION CARRIED. c. RESOLUTION 774 (#11-2018) A RESOLUTION EXPRESSING APPRECIATION FOR CANINE OFFICER ACE UPON HIS RETIREMENT; IN SUPPORT OF TRANSFERRING OWNERSHIP AND RESPONSIBILITY OF CANINE OFFICER ACE TO HIS HANDLER, OFFICER JOHNNY HICKS; AND, FOR OTHER PURPOSES. 7  CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2018 7:00 P.M. – 7:46 P.M. Chief Franklin stated that Officer Hicks has served the citizens of Jacksonville for eight years and has decided to move to another agency and we wish him well. He related that Officer Hicks has made a lot of inroads into community policing, he and Ace are well liked and respected. He explained the desire to retire Ace at a fair price. He related that Ace was purchased for $3,500 and he is being purchased by Officer Hicks for $1,500. He explained that Ace was 4 years old when he began his service for the Jacksonville Police Department and has worked in service for 4 years, estimating that his service years might be until he is 14, adding he is not certain of that time. He thanked Officer Hicks for his service to the Jacksonville Police Department. Councilman Bolden moved, seconded by Councilman Collins to read Resolution 774 (#11-2018). ROLL CALL: Councilman Elliott, Bolden, Sansing, Traylor, Twitty, Smith and Collins voted AYE. Ace was brought to the City Council Chamber and received a round of applause. Councilman Bolden offered his appreciation to Officer Hicks and Ace for their service to the community. He stated that Officer Hicks has a heart of love and he reached out to a lot of people in the Jacksonville community. He wished him well in the future. At this time MOTION CARRIED and City Attorney Bamburg read the heading of Resolution 744 (#11-2028). Councilman Bolden moved, seconded by Councilman Smith to approve Resolution 774 (#11-2018) in its entirety. ROLL CALL: Councilman Elliott, Bolden, Sansing, Traylor, Twitty, Smith and Collins voted AYE. MOTION CARRIED. Mayor Fletcher thanked Officer Hicks for his service, saying that he would be missed, noting that Office Hicks has brought a lot of positives to community policing. APPOINTMENTS: ANNOUNCMENTS: Parks and Recreation Director Kevin House announced that the Summer Concert has been moved to the Jacksonville Middle School, noting a 50 to 60% change of rain for Saturday. Mayor Fletcher announced that the Thunder Over the Rock Air Show at the Little Rock Air Force Base will be October 27th and 28th will be headlined by the USAF Thunderbirds. He noted that the event is free to the public and will host the STEM Fest featuring an interactive science, technology, engineering, and math activities for all ages. He stated that the event will draw over 100,000 people each day, making it the largest two day event in Arkansas. Councilman Collins announced that the local football team is having a 8 Red/White game Friday. CITY OF JACKSONVILLE REGULAR CITY COUNCIL MEETING AUGUST 16, 2018 7:00 P.M. – 7:46 P.M. He then announced that he would like to form a committee to review the City Municipal Code regarding 5.20 taxis. Councilman Bolden agreed to sit on the committee. Press notification was noted. Mr. T.J. Ashley with Ashley Media asked the City Council to consider revising the moratorium on bill boards in the City of Jacksonville. He related that he and his family own property north of town that was recently annexed, relating that his family business would like to be able to put bill boards on the property along the freeway. He asked the City Council to consider lifting the moratorium. Mayor Fletcher stated that it would put on the City Council agenda for discussion, allowing the City Council to have time to review documentation. Councilman Sansing noted that Code Enforcement has experienced some difficulties regarding the terminology in the Ordinance regarding overgrown bushy areas and falling fences. He urged that Code Enforcement better address these issues. ADJOURNMENT: Without objection, Mayor Fletcher adjourned the meeting at approximately 7:46 p.m. MOTION CARRIED. Respectfully, ________________________ _________________________ Susan L. Davitt MAYOR GARY FLETCHER City Clerk-Treasurer 9