President of Council Marjorie Harlow called Council to order on June 3, 2009, at 7:00 p.m.

    The governmental body and those in attendance recited the pledge of allegiance.

    Mrs. McNear took roll call. Present were Council members Danbury, Diehl, Galster, Squires, Vanover, Wilson and Harlow.

    The minutes of May 20, 2009 were approved with one change on page 8619 changing “community” to “committee” with six affirmative votes. Mr. Vanover abstained.

    COMMUNICATIONS

    Mayor Webster said I received a thank you from Kay Maestro for the memorial. She said “This is truly a great tribute to the veterans and their families, past, present and future. Thank you so much for recognizing their sacrifices and service. The memorial service was very nicely done. It meant so much to both my parents and me to be there. Please know that all of your hard work and efforts are greatly appreciated.”

    Mayor Webster said I believe her brother went down in the North Sea in a training exercise in preparation for the rescue of the Iranian hostages in 1979.

    COMMUNICATIONS FROM THE AUDIENCE    -     none

    ORDINANCES AND RESOLUTIONS

ORDINANCE NO. 13-2009 “AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO EXECUTE AN ADDENDUM TO A FORGIVABLE LOAN AGREEMENT BETWEEN THE CITY OF SPRINGDALE AND PCMS DATAFIT, INC., AND DECLARING AN EMERGENCY”

Mr. Vanover made a motion to adopt and Mr. Galster seconded.

Jeff Tulloch, Economic Development Director, stated PCMS Datafit has their North American headquarters located at 135 Merchant Street. They are a supplier of retail software, services and managed IT in internet services. If you buy from a retailer on line their software is dealing with it. In August 2008 we executed an incentive agreement with PCMS wherein PCMS was projected to produce a certain number of jobs, and more specifically, $7,958,000 in payroll. That related to about 114 retained and newly created jobs. That was to be done by December 2008. In March we looked at reconciling those numbers to see if they had met it. Their actual achievement fell short of what the objective ($7,958,000) was. They actually achieved $7,603,000 which is 96% of the objective. When we cast the agreement with PCMS the intention was to have a fudge factor wherein if the company attained a level of 90% of the objective or better, it would be deemed to be satisfied. If they go over that number they don’t get any more incentive. Unfortunately, that did not get incorporated into the agreement. This ordinance is basically clarifying what is called a mutual mistake when both parties make a mistake. That’s the purpose of the request for this ordinance.

Mr. Tulloch said I’d like to introduce Dave Hart, Director of Administrative Services with Cincom and Jeff Kerry, who is President of Kerry Laumar Real Estate consultant for CINCOM. CINCOM has tentatively concluded to stay in Springdale. Part of this incentive agreement is important to them in their decision making as are a few issues they still have to work out with North Star. The world headquarters of CINCOMC is located at 55 Merchant Street. They provide software to simplify and improve business operations and customer communications. We are proud to have as a corporate citizen. They made their corporate headquarters here in 1997 and are considering extending their lease for thirteen years. The proposed incentive agreement is for ten years. It is structured as a line of credit. The statutes preclude us from doing grants so the alternatives are forgivable loans or lines of credit. CINCOM would be able to draw from this line of credit $85,500 annually provided they meet the payroll objective of 90% of $19 million each year 2009 through 2018. The reimbursement from the line of credit would be waived by the City. This ordinance authorizes execution of the CINCOM incentive agreement.

Mr. Galster said previous notes and the legislative update have that payroll at $24 million and an amount of $116,000 a year. Is this proportionate?

Mr. Tulloch replied they elected to be more conservative in their projections. Those numbers were based on historical numbers.

Ordinance 13-2009 passed with seven affirmative votes.

ORDINANCE NO. 14-2009 “AUTHORIZING THE MAYOR AND CLERK OF COUNCIL/FINANCE DIRECTOR TO ENTER INTO AN AGREEMENT WITH CINCOM SYSTEMS, INC., RELATED TO A JOB RETENTION INCENTIVE AGREEMENT AND DECLARING AN EMERGENCY”

Mr. Vanover made a motion to adopt and Mr. Squires seconded.

Mayor Webster said we were overjoyed when CINCOM decided to make their world headquarters here in Springdale. We’re just as tickled today that they are willing to commit to another ten years. They are a world class company in a Class A office space.

Ordinance 14-2009 passed with seven affirmative votes.

RESOLUTION R6-2009 “ FINAL RESOLUTION SR 747 ODOT URBAN PAVING PROJECT”

    Mr. Vanover made a motion to adopt and Mr. Squires seconded.

    Mr. Osborn said Item 3 should say Mayor and Clerk of Council/Finance Director instead of City Administrator. The rest of the document had been amended to reflect that. This project is very much needed. We have delayed it a year of two already. The ultimate cost of the project is unknown to us. ODOT does not share their cost estimates. They only tell us how much they think ours is going to be. We think that the cost will ultimately be close to $650,000. The positive thing for us is that they are estimating our share at $315,352 and we have budgeted $427,350 for this project in 2009. We are about $112,000 to the good. This is just their estimate. The project has not been bid and of course, no change orders have been written so at the end of the project we don’t know how it’s going to shake out but I think it’s safe to say we will be under budget.

    Mr. Vanover made a motion to amend section 3 on page 2 to change the wording from City Administrator to Mayor and Clerk of Council/Finance Director. Mr. Squires seconded.

    Mr. Wilson said you see the word “estimate”. If it goes well over our budget are we still obligated to pay that?

    Mr. Osborn replied absolutely. We do this on every project. This is a commitment we make on the front end of every urban paving project and virtually every other State funded project. We pledge to meet the cost of the local share and that is only determined once the bids are opened. We have to have a comfort range and if we believe that this estimate is on the low side and the number is going to be higher, our choice is to say no, we don’t want the money or yes, we’re prepared to take the risk that this estimate is going to be lower than the actual outcome. I don’t think there’s much likelihood in this case that the project is going to run beyond our budgeted number.

    Mr. Diehl asked Mr. Osborn, could you give a better location of where this is going?

    Mr. Osborn responded the south terminus of this project will be Kemper Road. The north terminus of the project will be the eastbound exit ramp from I-275.

    The amendment passed with seven affirmative votes.

    Resolution R6-2009 passed with seven affirmative votes.

    OLD BUSINESS

    Mr. Parham stated at the last meeting Mr. Squires raised a question about the gym screening process. Mr. Karle informed me today that they were not satisfied with the results so the company will be back to redo the floor. The main gymnasium and the walking track will be closed from June 10 to June 15. We will not incur any cost for the correction.

    Mr. Parham said Mrs. Harlow raised a question about the off ramp at I-275 and the stacking of the traffic. If you take the westbound exit at SR 4, if you recall in the past, the dissection of the two lanes occurred much further back towards the interstate. Now it does not split until you are pretty much at the light. I went out one day last week. Unfortunately, there was a vehicle parked on the side near that exit where you would turn to head north on SR 4. At that time you could only get four vehicles through there. Even with that car removed you would only be able to get six cars through which would back everything up on the interstate. We did check with ODOT and they are projecting that it will be several months before that is opened up to two lanes again.

    Mrs. Harlow said I wondered if they changed the signaling there. It seems like the light to allow the exit traffic onto SR 4 stays green a little longer than it has been.

    Mr. Parham said I asked Mr. Shvegzda to check with TEC who normally handles the adjustments for us. To our knowledge they have not made any adjustment to the signal time.

    Mr. Wilson said the Veteran’s Memorial Dedication service and the memorial were well received. After the program people would come up and say how proud they were of what the City had done for veterans. I want to express my thanks to everybody on the committee and to everyone involved in the program.

    Mr. Diehl said I’d like to give a big well done to Greg Karle and Jackie O’Connell. They did a remarkable job.

    Mr. Danbury said we recently identified two other people who had died while in the service. If there’s anyone else out there that you know of please notify the City. We will try to have some kind of recognition for them.

    Mr. Squires said the monument is unique. It stands alone.

    Mr. Vanover said it is a magnificent structure. The most touching moment was the twenty-one gun salute and Taps.

    Mayor Webster said I’ve been fortunate enough to be part of the ribbon cutting of every structure we have on our City campus. I was more proud of this one than any of the other ones. This was a feel good project and a remarkable achievement. Kudos to CDS for the architecture and Mr. Osborn and Mr. Wilson for their military service expertise.

    Mr. Galster said I think everyone did a great job. It takes a lot of hard work and dedication to make it happen.

    NEW BUSINESS

    Mr. Danbury said I spoke with a representative of Jake Sweeney today. They were told by GM that they feel their Chevrolet and Chrysler stores are going to stay. A couple of companies are looking to acquire Saturn so they don’t think they will be leaving either.

    Mr. Vanover said we’ve had a couple of weekend activities in Chamberlain Park. I’m tickled to death to see the park being occupied but I’ve also gotten calls about the noise of the PA system being used.

    Mr. Osborn stated I had a conversation with Chief Laage earlier this week and I know he is going to address the amplified noise issue.

    Mayor Webster said those folks came to the Parks and Recreation Commission for approval to have that league. The PA system was never brought up as being used. There are certain restrictions put on those folks. There was a summertime situation taking place about six years ago and we had to shut it down because of the alcohol and litter.

    Mr. Wilson asked does this happen during the day or into the evening? Mr. Vanover replied it lasted until 5 or 6 p.m.

    Mr. Wilson said I would be more concerned if it went on into the night.

    Mayor Webster said it’s on Saturday and there are four or five games a day for eight Saturdays. They have hired off-duty police officers to make sure there is no alcohol.

    Mrs. McNear said we have a request for a liquor license transfer from Krazy Buffet at 380 Glensprings to Japan Buffet at the same address. It is a D51 license. There were no objections.

    Mrs. Harlow asked if Council wanted to adopt a summer schedule.

    Mr. Vanover made a motion to have meetings on the third Wednesday only in July and August. Mr. Squires seconded. The motion passed with seven affirmative votes.
   
    MEETINGS AND ANNOUNCEMENTS

    Mr. Squires stated there will be no Board of Health meetings until September.

    Mrs. McNear said there is an open house June 4 at Baldwin Grove.

    Mayor Webster said the Farmer’s Market opens Thursday, June 4, 3-7 p.m.. We have thirteen vendors and it seems to be growing every day

    Board of Zoning Appeals                 -     June 16


COMMUNICATIONS FROM THE AUDIENCE    -     none

Mr. Danbury made a motion that Council go into executive session as a meeting of the whole to discuss possible personnel issues. Mr. Vanover seconded.

Mayor Webster said I’d like the executive session to be for elected officials only. Could we do the update on legislation while Mr. Schneider is here?

The motion passed with seven affirmative votes.

UPDATE ON LEGISLATION STILL IN DEVELOPMENT

2010 Tax Budget                     -     June 17

RECAP OF LEGISLATIVE ITEMS REQUESTED    -    none

Council went into executive session at 8:12 p.m. and reconvened at 8:32 p.m.

Council adjourned at 8:33 p.m.

                        Respectfully submitted,




                        Kathy McNear
                        Clerk of Council/Finance Director

Minutes Approved:

Marjorie Harlow, President of Council



__________________________, 2009