MINUTES OF THE REGULAR MEETING
FORREST CITY CITY COUNCIL FORREST CITY, ARKANSAS March 18, 2008
Alderman Jeffers made a motion to approve the minutes of the previous
meeting. Seconded by Alderman Fields. Roll Call: All Ayes. Unfinished Utility Alderman Breeding made a motion to authorize the mayor to enter into an agreement with Concentric Utility. Seconded by Alderman Capps. Roll Call: Alderman Peacock, Capps, and Breeding All Ayes. Alderman Fields, Hollowell, Jeffers, and Oswalt said No. Alderman Twillie recused. Mayor McCoy asked, “What do I tell Larry or do we take it off the table, we got to make a decision at some point or time it is not going away.” Alderman Breeding stated it could be discussed more among the council members and then it could be brought back because; it is a tied vote at this point. Mayor McCoy asked it Larry needed to be brought back before the council. Alderman Breeding stated he did not know why the money was spent up to this point if they were not going to move forward. Alderman Jeffers asked Alderman Breeding how he could say it was a tie vote. Alderman Breeding stated Alderman Twillie recused himself he did not vote; it was 3-4-1. It did not receive enough votes to pass or to be totally shot down. Alderman Oswalt stated his question was, when the information was put out there what it was going to cost, he received a vague analysis answer of $80,000.00. Mayor McCoy stated when the analysis was presented the price was in it. Alderman Oswalt stated he was not present. Alderman Oswalt also stated if the majority of the council decided to get the system appraised, if required, it would cost another $50,000.00. He also stated the council is looking at, to draft a franchise agreement, anywhere from $80 to a $145,000.00 to get everything done. Alderman Breeding stated this is an agreement that has been enforced for 50 plus years and will be again, whatever the city council decides to do whether they stay with Entergy or go with Woodruff. When it is looked over the scope of years it is covering, yes it is a large investment. Alderman Oswalt stated he has spoken with people from both utility companies, Entergy and Woodruff, and he has not heard of any complaints from the rate-payers. He also stated he had seen utility bills from both companies. Alderman Oswalt also stated that the company could do a non-bias analysis. “We are going to get down the road, eventually with $100,000 plus spent and still can not get the majority of the council to agree. What do we have to show?” He also stated he has asked numerous times how much has been spent on a lawyer, and still has not received that information. Alderman Twillie stated one of the problems was during one of the meetings there was a close vote. Some of the council members voted to let the mayor go ahead, but was not willing to change. He stated if the council decided to go that route a lot of money would be spent and nothing will be done. He also stated that a decision needed to be made. Mayor McCoy stated the first thing the council is working on is the rate analysis. They may not get to the appraisal, the negotiation support, or the drafting of the franchise agreement. Alderman Peacock stated he had a problem with not getting the proper service from Entergy. He also stated the council has an opportunity to negotiate for the citizens of Forrest City to make it better. “If we do not have the expertise among ourselves then we’ve got to pay somebody to enlighten us on if it’s a good deal or bad deal; and that costs.” Alderman Capps stated he felt like the council is stuck where they are, the contract has expired the city needs to enter into a new contract with an electrical provider. There are two choices and they do not know which one is going to offer the best rates or services for Forrest City. He feels by getting the utility rate analysis done the company would tell them the best deal for the citizens of Forrest City. Alderman Breeding stated his final argument is the council represents a group of people in the community from each of their wards and it is their job to do what is best for the people. He did not think he had the knowledge to make a decision that was going to affect the electrical providers for the next 50 years. He has always leaned toward the option of Woodruff Electric because it is a local company, local jobs, local telephone number and local physical plant; as opposed to picking up the phone calling a 1-800 number. In the preparation from Concentric, it tells that they will provide the city with a recommendation as to which electrical service provider should be selected based upon the results of the rate analysis. Alderman Breeding also stated he think the council should re-consider because they do not have the education to make that decision. Alderman Oswalt agreed with Alderman Breeding, he does not have the knowledge to make that kind of decision. He also said, “Would we be where we were had they not initially said they going to quit paying that money, Henry said yes.” He also stated he looks at the number of complaints, he looks at what service he has, and he is sure woodruff would provide the same type of service. When everything is finished, you are not talking about but a few dollars different; he would rather spend the money re-doing the current contract provider. When it is done, they are going to tell us two things: based on results retain the existing or switch, it still will take five council members to vote, or the mayor will have to break the tie. Alderman Capps stated he thought the firm would give the council concrete answers then the council would know; yes, this is where they needed to be, or no the council should consider changing. That is his opinion; that is why he seconded the motion and voted for it. Alderman Peacock stated until the council decides if they want to find out what the true numbers are, they need to put it out there for bid and let the numbers come back. Alderman Breeding stated he agreed the $80,000 is extremely expensive. He also thought the possible future cost might be scaring the council such as: the system appraisal at $50,000, the negotiation hourly draft franchise agreement at $15,000. He thought Woodruff Electric sent Mayor McCoy a letter stating after the rate analysis they were recommending that they would pay for the system’s appraisal. Attorney Cline stated before they get too far into the bidding concept, they need to ask Larry to be certain. He is not sure if any electrical provider can quote Forrest City a rate going forward that is different in rates in other cities. He thinks it is a packaged deal. He thinks Forrest City is packaged with Wynne’s rates, Marianna, Helena, and West Memphis’s rates. It is not something the providers can come in and give Forrest City a special rate. He does not think it can be done that way because the Public Service Commission regulates the utilities. Alderman Twillie stated then the council cannot have a biding process. Attorney Cline said, “I don’t think we can let out bids and say Woodruff tell us what your rates are going to be and Entergy tell us what your rates are going to be.” There rates are set by the PSC based upon all the customers that they serve. After further discussion Alderman Breeding made a motion that, the council authorize the mayor to enter into the agreement with Concentric Entergy Advisors Inc. for the price up to $80,000 the first phase of the project so the council will have the necessary knowledge to make the best decision in their minds for their constituents. Seconded by Alderman Capps. Attorney stated this proposal and contract is not set for $80,000 in stone, which is a projected fee based upon an hourly rate for them to do the work. Alderman Breeding stated his motion was not to exceed $80,000. Attorney Cline then said, “So if they get $80,000 into this and don’t have an answer for us; where are we?” Alderman Breeding stated the Mayor has the authority to enter into that agreement under this motion up to $80,000 for the completion of the rate analysis and for them to come back to us as a council and make their recommendation as what they will give in a rate analysis. If they cannot complete if for the $80,000 then do not agreed to do it. Roll Call: Fields, Peacock, Capps, Twillie, and Breeding All Ayes. Alderman Jeffers, Hollowell, and Oswalt. All Said No. Grant Agreement Update Alderman Oswalt stated if the city gets funding, the land has not been annexed. Alderman Capps stated the city cannot initiate an annexation the property owners have to ask to be released from the county then they will come before the council and ask to be accepted into the city. There are groups of property owner who are proceeding with their legal descriptions and petitions. Then it will be done within 30 days. Police Car Audio/Video Equipment Bid Staggered Terms New Business Baseball & Softball Bids CDC GIF Funding Alderman Capps stated the resolution is for St. Francis Assistant Living Center, he wanted to know would it always be an assistant living center. Ms. Carr stated one phase would be the assistant living facility, phase two would be independent living, and the third phase would be garden homes. Mr. Stephens director of CDC, was also present. He stated the project was at an early predevelopment stage and they were requesting the resolution to fund stage one. Attorney Cline read a ST. FRANCIS ASSISTED LIVING CENTER RESOLUTION Alderman Twillie Made the motion to adopt the resolution. Seconded by Alderman Fields. Roll Call: All Ayes. STREET FUND BILLS GENERAL FUND BILLS Announcements
_______________________
|
