The City Council of Forrest City, Arkansas, met in regular session on September 16, 2008. The meeting was called to order at 6:00 p.m. Alderman Capps opened the meeting in prayer. The following answered roll call: Mayor McCoy, Clerk Cochran, Attorney Cline, and City Council Members: Peacock, Jeffers, Hollowell, Fields, and Capps. Twillie came in at 6:07 p.m. Alderman Breeding and Oswalt were absent.

Alderman Capps made a motion to approve the minutes of the previous meeting. Seconded by Alderman Peacock. Roll Call: All Ayes.

Committees

Park Committee
Mayor McCoy asked Alderman Twillie had the parks & recreation committee discussed a date to finalize the issues concerning the parks & recreation. Alderman Twillie stated he met with Mayor McCoy on today; they discussed some of the issues that were related to the public meeting. Alderman Twillie also stated he would meet with the park director and Mayor McCoy on September 22, 2008 to finalize some of the issues and the third step would be to make a recommendation to the city council.

UNFINISHED BUSINESS

City Shop Bid Opening
Mayor McCoy opened six bids for the Forrest City Shop building addition as follows:
Frank A Rogers & Co., Inc. $166,315 Alternates #1. $1,640 #2. $1,100 #3 $2,300 deducts.

Hurd Construction & Painting Inc. base bid $175,740 Alternates #1. 600.00 #2. $4,500 #3. $2,300 deducts.

Murdock Enterprises base bid $165,000 Alternates #1. $500 #2. $2,300 #3. $1,700 deducts.

Kenco Construction Co., Inc. base bid $175,000 Alternates #1. $1,200 #2. $3,800 #3. $2,500 deducts.

Jetton General Contracting, Inc. base bid $180,602.55 Alternates #1. $597 #2. $2,500 #3. $1,800 deducts.

Jancour, Inc. base bid $245,212 Alternates #1. 1,800 #2. 4,800 #3. $2,204 deducts.

Mayor McCoy introduced Rodney Garey the architect of Fowler/Garey Architects to the city council. Rodney stated he would take the bids under advisement and he would get back with the contractors.

NEW BUSINESS

Promotions
Mayor McCoy presented certificates for three promotions in the Forrest City Police Department. Deon Lee has been with the department since 1999, he was promoted to patrol lieutenant. Edgar Moore was promoted to special services lieutenant. Brain Davis was promoted to detective lieutenant. Mayor McCoy thanked the officers for their outstanding services. Mayor McCoy also stated that Lieutenant Lee is home on leave from Iraq, where he is serving with the National Guard and he will be returning home soon.

Airport
Mayor McCoy recognized Dr. Robert Cole, Mr. Bill Hayes, and Attorney Phil Hicky to request funding for the Delta Regional Airport. Attorney Hicky addressed the council to ask for short-term financial assistance for the Delta Regional Airport Authority. According to Attorney Hicky the FAA authorized the airport authority to contract for construction of the runway for the new airport. The contract totals 3 million dollars. The FAA pays 95% of the cost the state pays the remaining 5%. The state will not provide advance funding. The city of Wynne and the city of Forrest City have a commitment of $150,000 on the $3 million dollar contract, which is 5% of the cost. The airport authority has gone to the local bank and made arrangements to obtain a loan for $75,000. The bank has agreed to make the loan contingent upon receiving an endorsement from the city council and the mayor relative to securing the line of credit with the existing Forrest City Airport. As he understood, at the completion of the Delta Regional Airport, the Forrest City airport would be sold and the proceeds would go toward the new airport. The $41,643.50 should be added to the $75,000 that was requested as Forrest City’s 5% portion of the contract making a total loan of $117,000 to be secured by a perfected first lien on the Forrest City Airport. If the city decides not to secure the $117,000, the alternate request is for $75,000, the third alternate request would be for $33,000 and the airport authority having to work with the industrial development people to let them roll over the funds that were given last year. It is also his understanding that as construction progresses, substantially all of the borrowed funds will eventually be paid by the state’s 5% contribution in connection with the project; however, the state does not provide the money in advance. He also stated the airport authority did not necessarily have to have all the money at one time but they would like to setup a line of credit and draw against it as needed when the engineering firm that is handling the project approves it.

Alderman Twillie agreed it would be better for the city to use the Forrest City Airport as collateral for a line of credit instead of tying up the city’s money. Mayor McCoy asked from what bank the line of credit would be drawn. Attorney Hicky stated it would be First National Bank of Eastern Arkansas. The Bank has agreed to make the loan to the Delta Regional Airport Authority subject to the loan being collateralized by the Forrest City Airport.

Alderman Capps asked who would be responsible for the interest on the $117,000. Attorney Hicky stated Delta Regional Airport would be responsible for paying it; however if the existing airport secures the loan and the Delta Regional Airport did not pay the loan, it would be charged against the collateral. There are some revenues being generated from the rent of the crops. That money could probably be used to pay the interest.

Alderman Twillie asked Dr. Cole if the same process would be used for each stage. Dr. Cole stated, “That is right and this is the third stage.” Alderman Twillie also asked Dr. Cole if the council borrowed the line of credit up to the $117,000 and the next phase project needed more money, would the city have to go through the same process. Dr. Cole stated that there have been two grants already approved. There will be a grant #3 and #4. Grant #3 will be for the acquisition of the additional land that has not been purchased. Grant #4 is for the construction of a $290,000 plus project. Dr. Cole also answered yes to Alderman Twillie’s question. At some point if the matching funds do not come in from either crop proceed or rent, somehow there will have to be a 5% match coming from some source. Alderman Twillie asked if the collateralization loan needed to be written higher than the $75,000 or the $117,000 in case more money is needed, or would the same credit line be available. Dr. Cole also stated the state department has already approved $60,000 plus for reimbursement to the Forrest City Industrial Development Commission and the City of Wynne, if that money has to be paid back, then that is where the $117,000 comes in. Alderman Twillie asked if a credit line could be established on the front end that would exceed the $117,000 so that the city would not have to ask for a second mortgage.

Mayor McCoy explained that the credit line would not exceed the appraised value. Dr. Cole then stated the Forrest City Airport has appraised at $1 million. Alderman Peacock asked about the time phase to get the appraisal done. Attorney Hicky stated that the contractor has already started the work on the runway. It is anticipated that the contractor will submit at the end of this month for a progressive payment for what he has done up to date. There will be a bill to consider around the first of October. Alderman Peacock asked Attorney Cline when he could do a legal screening on the information and get back with the city council. Attorney Cline stated he could have a legal opinion before the end of the month. The council could do the paper work subject to legal approval and if a problem there were a problem, it woud be dealt with.

Alderman Twillie stated if the contractor would be submitting a bill by the first of the month; the city council needs to move forward.

After further discussion, Alderman Twillie made a motion that the Forrest City Council give the mayor authority to work out a deal with the First National Bank of Eastern Arkansas using the present airport as a line of collateral up to $117,000 for construction of the Delta Regional Airport. And he also moved to give the mayor the authority to sign the deeds of the Forrest City Airport providing that all of the legal paper work is clear.

Seconded by Alderman Peacock. Roll Call: Alderman Peacock, Jeffers, Hollowell, Twillie, Fields, and Capps. Alderman Breeding and Oswalt were absent.

Disposal of Non-Useable Equipment
Mayor McCoy gave reference to a memo dated December 2l, l999 concerning the disposal of non-useable equipment. Mayor McCoy stated that the state auditor recommended that the council put into place a policy that would authorized the mayor to auction off or give permission to destroy old equipment. Attorney Cline stated there is an ordinance already in place, if the city’s property is worth less than $5,000 and if the mayor certifies that the property is worth less than $5,000, it allows the mayor to either sell or auction it off. If the city property is worth $5,000 or more, it must be bid out. Maybe if the auditor is made aware of the ordinance (section 2-21 code book) already on the books, the situation would be taken care of.

Chief Duch stated the council needs to make sure that they are able to destroy the hard drive in the old computers because of the information and employees social security numbers stored in them.

Bid Laney Drive House removal
Mayor McCoy requested permission to bid out the house on 301 Laney Drive. He feels this is the safest and the proper way to handle it. Alderman Peacock made a motion to authorize Mayor McCoy’s permission to bid the house on 301 Laney Drive. Seconded by Alderman Capps. Roll Call: All Ayes.

Powerhouse Electric-Generators Contracts
Mayor McCoy asked permission to renew the generator contracts for the police department, fire department, and civic center for the same fees as 2007 which is $3,100.00 a year.

Alderman Capps made the motion to renew the generator contract with Powerhouse Electric for services of the generators. Seconded by Alderman Fields. Roll Call: All Ayes.

Personal Policy Committee
Mayor McCoy asked Alderman Twillie if they could set a date for the Personnel Policy Committee to meet to finalize the sick leave policy. Alderman Twille set the meeting for October 14, 2008 at 5:00 p.m.

St. Francis County Tax Millage Rate
Mayor McCoy stated it is time to renew the county millage rate for 2009. At the present the rate is 3.8 mills. Alderman Twillie made a motion to leave the county millage at the rate of 3.8 mills. Seconded by Alderman Jeffers. Roll Call: All Ayes.

STREET FUND BILLS

Alderman Capps made a motion to pay Street Fund Bills totaling $1,007.06. Seconded by Alderman Peacock. Roll Call: All Ayes

GENERAL FUND BILLS

Alderman Twillie made a motion to pay general fund bills totaling $22,085.93. Seconded by Alderman Jeffers. Roll Call: All Ayes.

Announcements

Mr. Bill Hays announced that there will be a groundbreaking for the Delta Regional Airport on October 7, 2008 at 1:00 p.m. at the airport site in Colt, Arkansas.

Alderman Jeffers stated that so many times the council receives calls or letters in the negative. Today to her surprise she received something in the positive concerning Public Works Director Patton; he did not know anything about it. Alderman Jeffers read the letter from Ms. Ryan acknowledging and giving Mr. Patton praise for doing a good job (see attached).

Alderman Twillie made a motion to adjourn at 7:07 p.m. Seconded by Alderman Capps.

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Gordon McCoy, Mayor
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Derene Cochran, Clerk-Treasurer