The City Council of Forrest City, Arkansas, met in regular session on October 19, 2010. The meeting was called to order at 6:00 p.m. Alderman Peacock opened the meeting in prayer. The following answered roll call: Mayor McCoy, Clerk Cochran, Attorney Cline, and City Council Members: Peacock, Jeffers, Hollowell, Shepherd, Capps, Oswalt, Fields, and Twillie.

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

COMMITTEES

Recreation
Alderman Hollowell asked the council to have their nominees for the recreation committee ready for the next council meeting.

UNFINISHED BUSINESS

Cable TV Franchise
Mayor McCoy acknowledged Greg Fender, of Local Government Services of Dahlonega, GA to discuss the cable franchise agreement. Mr. Fender stated he and the legal team had worked hard to put together a proposal that he thought the council would consider approving. Mr. Fender presented some highlights to the proposed contract. First, he said, the new contract would be in place for 15-year. The document covers a lot of areas and provisions that are not in the current contract. For example, the proposed contract incorporates minimum federal customer service standards. The franchise fees for compensation for the use of the public rights-a-way would not change from the 3.5 percent, it would be paid on total gross revenues instead of subscriber revenues only. The 3.5 percent would also include revenues from advertising and home shopping commission and it should bring an estimated $5,000 more yearly. In addition, after December 31, 2011, the city could change the franchise fees from 3.5 to 5 percent. Mr. Fender said the way the agreement is structured; the city would be paid quarterly instead of annually. He also said the city should focus on a strong ordinance in case the contract is sold; if the contract was sold, the document would go with what ever company that is in place. The city has the right to do an audit of the cable operator and if found that the city has been under paid, the company would have to reimburse the city for all reasonable cost for the audit. The new contract would provide a dedicated channel for the city’s exclusive use. There is a grant proposal in the document upon execution of the agreement of $5,000 and six months later an additional $5,000 would be provided to help purchase the equipment for the dedicated channel.

Alderman Oswalt commented if the council decides to raise the rate from 3 to 5 percent, the additional l.5 percent would be passed on to the consumers and would not affect the cable company. Mr. Fender said the cable company should pass on the cost of the rent to use the right-a-way to the customers; it would only be pennies.

Alderman Peacock stated he understood the city being in control of the city’s channel, but would there be issues with FCC broadcasting. Mr. Fender said the city could not do commercials; it is a public educational governmental type access channel. Alderman Capps asked if late payment fees are a part of the gross revenue. Mr. Fender said that late payments are part of the gross revenue.

Alderman Twillie asked Mr. Fender to list six things that would make the 15-year a better contract. Mr. Fender stated

1. Locked in with the authority of the right-a-way without having the state government to take it away.
2. A dedicated channel for local governmental use.
3. Receiving a capital grant to help pay for operation for the local channel.
4. Transmission links.
5. Flexibility to change franchise fee during that period.
6. Special testing requirements for proof of performance test.

Alderman Twillie then said he would like to see a 10-year and a 15-year package put together for comparison. Mr. Fender said he could do that.

Alderman Oswalt asked if land was annexed into the city, would there be a problem getting cable to the homes that were spread apart. Mr. Fender said if the cable service extended out to the farthest home then the density requirement in there, then the cable company would be required to provide services to those homes Likewise, the cable company is not obligated to provide service to those homes that do not met the density requirements. Alderman Shepherd asked if there is a provision in the contract for annual performance review. Mr. Fender said the council could do an audit at anytime.

After further discussion, Alderman Shepherd made a motion to accept the recommendations in the contract and put it on the agenda for the next meeting. Seconded by Alderman Twillie. Alderman Peacock stated he still had some issues with the 15-year contract and the cost of operating the local channel. Mr. Fender said, “Under federal law you cannot negotiate for them to provide cost to operate it, you can only negotiate for a capital equipment grant to buy the equipment but it is up to the city to operate the channel.” Roll Call: Alderman Peacock, Hollowell, Shepherd, Twillie, Fields, Capps, Jeffers, and Oswalt. All Ayes.

NEW BUSINESS

2010 Bonus
Mayor McCoy stated that the 2010 bonus figures for the employees had been put together, he asked the council to look at the figures so they could make a decision before Thanksgiving.

Civic Center Parking Lot
Alderman Hollowell stated that Mayor McCoy looked at the civic center parking lot and he wants to repave the back and front parts of the parking lot. Mayor McCoy said he and Alderman Twillie looked at the parking lot and they realized that the parking lot needed overlaying. He also said that M & T Paving had given a quote of $75,000 for a two inch overlay. Mayor McCoy also said the city could cut back to 1½ inch overlay to save some money. Alderman Twillie asked for a comparison based on traffic and weight, the number of year the l½ and the 2-inch overlay would last; then he could make a decision. Alderman Peacock said the 2-inch would hold up longer. Alderman Peacock asked if the asphalt should be bid out. Mayor McCoy stated that was part of the contract that already had a per ton bid price. After more discussion Alderman Shepherd made a motion to give Mayor McCoy permission to have the civic center parking lot overlaid. Seconded by Alderman Hollowell. Roll Call: Alderman Peacock, Hollowell, Shepherd, Twillie, Fields, Capps, Jeffers. All Ayes. Alderman Oswalt voted No.

STREET FUND BILLS

Alderman Oswalt made a motion to pay street fund bills totaling $823.72. Seconded by Alderman Twillie. Roll Call: All Ayes.

GENERAL FUND BILLS

Alderman Shepherd made a motion to pay general fund bills totaling $25,475.09. Seconded by Alderman Capps. Roll Call: All Ayes.

Announcements

Mayor McCoy announced that the city received a 100% grant for $44,250 to purchase a new tractor and a 15 ft cutter for the street department.

Mayor McCoy announced that November 2, council meeting was moved to November 9, 2010

Budget meeting scheduled for November 8, 2010 at 6:00 p.m.

Mayor McCoy gave the council figurers for the bonuses to take into consideration.

Mayor McCoy announced on November 9, 2010 the Federal prison will be having a CRB meeting to discuss the addition to the prison; invitations will be sent to all council members.

Mayor McCoy announced that 77 cities across the state of Arkansas have been approved to receive $807,000 grant money to replace the old traffic lights with energy efficient LED lights.

Harvest Fest October 31, 2010 time 3:00 p.m. to 5:00 p.m.

Alderman Twillie made a motion to adjourn at 7:25 p.m. Seconded by Alderman Fields.

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Gordon McCoy, Mayor

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Derene Cochran, Clerk-Treasurer