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HomeMy WebLinkAboutCouncil.Minutes.01-05-2004.RegularProceedings of the City Council, City of Cape Girardeau, Mo. Regular Session .lanuary 5, 2004 297 T00111195 REGULAR SESSION — JANURY 5, 200 4 The Cape Girardeau City Council convened in regular session on Monday, January 5, 2004, at 7:00 p.m. with Mayor Jay B. Knudtson presiding and Council Members Evelyn Boardman, Charles Herbst, Matthew Hopkins, Jay Purcell, Marcia Ritter and Hugh White. Rev. Paul Kabo of First Presbyterian Church presented the invocation, and the Pledge of Allegiance was recited. Prior to the regular session, the City Council convened in closed session for purposes of discussing property acquisition and litigation pursuant to RSMo. Section 610.021(1) and (2) upon Ms. Boardman's motion, Mr. Hopkins' second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. The minutes of the December 15, 2003, regular and closed sessions and the December 17, 2003, special and closed sessions were approved upon Mr. White's motion, Mr. Herbst's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. The agenda was adopted as distributed upon Ms. Boardman's motion, Mr. Purcell's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. Mayor Knudtson reported on the following: 1. He reminded the Council that the joint meeting with the Jackson Board of Aldermen is scheduled for January 26. Regarding the issue of fireworks, he stated information has been received from the City of Jackson, and this issue should be placed on the January 20 agenda for discussion. City Manager Doug Leslie reported he spoke with Jackson's City Administrator, and the Board of Aldermen agrees with the age restriction and the time of sale. However, the Board is looking more to limiting fireworks on a stick instead of prohibiting all aerial devices. 2. He attended the deployment ceremony for the 1140"military unit at the Arena Building, and he wished all well on their service. 3. The annual City Council retreat is scheduled for early Spring. He asked each Council member to write down any suggested changes they may have or issues they would like discussed. He suggested that there possibly be two retreats each year with one focusing on the budget and the other on the mission and future planning for the city. The retreat is tentatively scheduled for March 19. 4. Regarding the new Bill Emerson Memorial Bridge, MoDOT has reported that foot and bicycle traffic is acceptable on this bridge, but there are concerns with pedestrians on the old bridge. 5. He reported that Inspection Services Director Robb McClary is again hospitalized for medical reasons, and the Council's prayers are with him. Mr. Leslie reported that City Clerk Gayle Conrad had received her designation as a Certified Municipal Clerk from the International Institute of Municipal Clerks. This being the date set for a public hearing regarding the request of Gwenn Freitag, DVM to rezone 2984 County Road 620, currently in the process of annexation into the city limits of Cape Girardeau, from R-1, single family dwelling district, to C-2, general commercial district, the hearing was opened. There being no appearances, the hearing was closed. Proceedings of Regular the City Council, City of Cape Girardeau, Session January 5, 2004 700111195 _ BILL NO. 04-3 was given irst rea mg as follows: Am 298 AN ORDINANCE ANNEXING LAND TO THE CITY OF CAPE GIRARDEAU, MISSOURI, UPON THE REQUEST OF GWEN L. FREITAG The first reading of BILL NO. 04-3 was approved upon Mr. Herbst's motion, Mr. Hopkins' second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. BELL NO. 04-2 was given first reading as follows: AN ORDINANCE AMENDING CHAPTER 30 OF THE CODE OF ORDINANCES OF THE CITY OF CAPE GIRARDEAU, MISSOURI, BY CHANGING THE ZONING OF LOTS (1), TWO (2) AND THREE (3) OF PEACEABLE ACRES SUBDIVISION, IN THE CITY AND COUNTY OF CAPE GIRARDEAU The first reading of BILL NO. 04-2 was approved upon Mr. Hopkins' motion, Ms. Boardman's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. This being the date set for a public hearing regarding proposed amendments to the zoning ordinance relating to the definition of "family," the hearing was opened. Upon questioning by Ms. Ritter, City Planner Kent Bratton reported that the Planning and Zoning Commission reviewed this change and approved it unanimously. It tightens up the definition of family to insure there is no overcrowding in residential areas. There being no appearances, the hearing was closed. BILL NO. 04-8 was given first reading as follows: AN ORDINANCE AMENDING SECTION 30-2 OF THE CITY CODE RELATING TO ZONING DEFINITIONS The first reading of BILL NO. 04-8 was approved upon Mr. Purcell's motion, Ms. Boardman's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. Nuisance Abatement Officer Aaron Baughn reported on the findings and recommendations of the Nuisance Abatement Team. The proposed ordinance changes will allow the city to more actively pursue renters and owners on weed and nuisance complaints as well as limit the number of cats and dogs allowed in a residentially zoned area. He reported on the number of nuisance and animal complaints in 2003. Mayor Knudtson reported this issue was discussed in the study session, and the Council agreed a public hearing on these issues would be appropriate to receive input from the public. Mr. Paul Davis, 1737 Dunklin, appeared in support of the petition he previously submitted requesting no parking on the north side of the 1700 block of Dunklin Street. Nineteen of 24 property owners signed the petition. He reported on traffic incidents he has witnessed on this block of Dunklin as well as the number of cars that park and travel this street. BELL NO. 04-1 was given first reading as follows: Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session January 5, 2004 299 T00111 AN ORDINANCE AMENDING SCHEDULE F OF SECTION 26-247 OF THE CITY CODE BY ESTABLISHING NO PARKING ALONG PORTIONS OF DUNKLIN STREET, IN THE CITY OF CAPE GIRARDEAU, MISSOURI The first reading of BILL NO. 04-1 was approved upon Mr. Purcell's motion, Mr. Hopkins' second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. Dr. Roy Meyer appeared in support of the ordinance calling an election for a one-quarter cent Fire Sales Tax. He explained that in April his son was involved in a wreck with a cement truck, and it took two and one-half hours to extract him from the vehicle partly due to the Fire Department not having enough money to purchase appropriate extrication equipment. He stated that the Fire Department saved his son's life, and he urged the Council to place the Fire Tax on the April ballot. He thanked the Fire and Police Departments for their hard work, and if the issue is not placed on the ballot, then the lives of the citizens and Fire and Police employees could be in jeopardy. Mr. Nelson Sparks, 301 S. Lorimier, appeared regarding the recent shooting at The Taste Lounge. He has record of 17 police calls to this location since October 11, 2003. The city presently does not have an ordinance regulating after hours clubs. The City and the owner, Patrick Buck, have taken steps to prevent parking in front of the business and to keep patrons inside the premises; however, they are not working. He discussed noise violations that are occurring in this and the surrounding area, and questioned whether the noise ordinance was being enforced. He stated that the situation in this neighborhood is getting worse, and he requested the Council close the establishment. This should not be in a residential area or in the City of Cape Girardeau. Ms. Dana Cotner appeared regarding the traffic and noise problems in the area of The Taste Lounge. On Friday and Saturday nights there is a parade of cars that travel a square pattern through the neighborhood and the noise and music continues through the night. She stated that the noise ordinance needs to be enforced and the parade of cars needs to be stopped. Ms. Peggy Winchester, 200 block of Goodhope, appeared and complained of the trash problems in her neighborhood, and the no parking buckets that are being left for days by Mr. Buck. If The Taste Lounge was not there, the people would not be there causing the problems. When the establishment opened, there was a neighborhood meeting at the Police Sub -Station to discuss these types of issues. Regarding alcohol in the club, Mr. Buck indicated he did not allow it in the premises; however, he could not be everywhere at one time. She requested the establishment be closed. Ms. Kim Dodson, 300 Goodhope, appeared and stated she had also attended the meeting at the Police Sub -Station. Mr. Buck had stated that if there were problems with The Taste Lounge, he would close it down. She requested he stand by his statement. She requested the Council consider blocking some streets and alleys to prevent the circle of traffic until something else can be done. Mr. Patrick Buck, owner of The Taste Lounge, appeared and stated he does not sell liquor in his establishment; however, people do sneak it in. The Police Department has monitored his location in the past. He is working on the trash problems, but he cannot be in two places at one time. There is another bar in the area that had a recent shooting, and the people did not complain. He stated he felt this was a race issue because the people did not complain about the other bars that had problems. Many of the complaints of the neighbors are not the fault of his business. The individuals involved in the recent shooting were never in his business. He again stated he does not sell alcohol, and he will gladly let the Police into his establishment. Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session T00111195 January 5, 2004 300 Ms. Winchester again appeared. She stated she is also opposed to the other bar in this area; however, it has a liquor license and must close at 1:30 a.m. Since they have a license, the Police have more control over what they do. Upon the request of the Mayor, Police Chief Steve Strong reported there have been 17 calls for service at The Taste Lounge since October of 2003. One was a founded noise complaint, one was for a fight in the street, and many of the others were not substantiated. There were reports of illegal activity inside the business, but these were not observed by the Police. The traffic problems around the bar are different than the traffic problems of last summer at Morgan Oak and Ellis. The barricades last summer were manned by Police Officers, and that was paid for from grant monies. His overtime budget is now exhausted and no more grant funds are available to man barricades. Ms. Boardman stated that one of the biggest problems is the noise. She questioned whether there was a simple way to measure the noise in decibels. Chief Strong again stated this would be a budget issue to purchase and staff the equipment. In addition, the area of The Taste Lounge is zoned Commercial but abuts Residential areas. Therefore, there is a different expectation for the level of noise. Mr. Purcell and Mr. Herbst discussed some of the problems surrounding The Taste Lounge, including the problems that occur outside the establishment. Mayor Knudtson questioned the ability of Mr. Buck to control his business. He is obligated to control his premises, and it is his duty to make sure the citizens in the area are safe. Mr. Buck responded that he will come back in 30 days if there are still problems outside the bar. He stated he will take care of the problems. Mayor Knudtson expressed concern with the city's ability to control this situation. Bars are regulated through liquor laws; however, this is an after hours facility that does not have a liquor license, and more could potentially open in the future. He requested the city staff to review this particular situation, including the number of calls and arrests in this area, and to develop options for defining and regulating after hour facilities. Upon questioning by Ms. Ritter, Captain Strong explained the difference between this situation and the problems last summer at Morgan Oak and Ellis. He stated he will be looking into options to address this situation and will be recommending ordinance changes to address after hours clubs. Mr. Don Howard appeared and stated that the Police Department is not enforcing city ordinances. Regarding the proposed Fire Tax, he stated he felt the Fire and Police Departments do not appropriately respond to calls, and they need to shape up their act before this issue is voted on. He stated there are many drug and noise related problems that need to be taken care of. Mayor Knudtson responded that many of his issues deal with manpower problems. He asked Mr. Howard to listen to the discussions on the sales tax issues from a public safety standpoint. The following bills were given second and third readings: BILL NO. 03-211 AN ORDINANCE LEVYING A SPECIAL ASSESSMENT FOR THE IMPROVEMENT OF AN ALLEYWAY RUNNING FROM FIFTH STREET TO JOHNSON STREET, BETWEEN MAIN STREET AND WATER STREET, IN THE CITY OF CAPE GIRARDEAU, MISSOURI, AND AUTHORIZING THE ISSUANCE OF SPECIAL TAX BILLS THEREFOR Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session Iannary 5, 2004 301 T00111195 BILL NO. 03-212 AN ORDINANCE LEVYING A SPECIAL ASSESSMENT FOR THE IMPROVEMENT OF AN ALLEYWAY RUNNING FROM NEW MADRID STREET TO MISSISSIPPI STREET BETWEEN WEST END BOULEVARD AND ILLINOIS AVENUE, IN THE CITY OF CAPE GIRARDEAU, MISSOURI, AND AUTHORIZING THE ISSUANCE OF SPECIAL TAX BILLS THEREFOR BILL NO. 03-220 AN ORDINANCE LEVYING A SPECIAL ASSESSMENT FOR THE IMPROVEMENT OF MT. AUBURN ROAD FROM MISSOURI ROUTE K NORTH TO INDEPENDENCE STREET, IN THE CITY OF CAPE GIRARDEAU, MISSOURI, AND AUTHORIZING THE ISSUANCE OF TAX BELLS THEREFOR BILL NO. 03-214 AN ORDINANCE APPROVING THE RECORD PLAT OF ARBOR HEIGHTS SECOND ADDITION BILL NO. 03-218 AN ORDINANCE AMENDING SCHEDULE A OF SECTION 26-228 OF THE CITY CODE, AMENDING CERTAIN SPEED LIMITS ON SOUTHERN EXPRESSWAY FROM KINGSHIGHWAY TO CAPE LACROIX CREEK, IN THE CITY OF CAPE GIRARDEAU, MISSOURI BILL NO. 03-217 AN ORDINANCE ACCEPTING A QUIT CLAIM DEED FROM THE SOUTHEAST MISSOURI UNIVERSITY FOUNDATION FOR THE RIGHT OF WAY FOR FOUNTAIN STREET BETWEEN MISSOURI ROUTE 74 AND MORGAN OAK STREET, IN THE CITY OF CAPE GIRARDEAU, MISSOURI BILL NO. 03-219 AN ORDINANCE APPROVING A RECORD PLAT OF SHAWNEE CENTER The second and third readings of BILL Nos. 03-211, 03-212, 03-220, 03-214, 03-218, 03-217 and 03-219 were approved and the ordinances adopted upon Mr. Herbst's motion, Ms. Ritter's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. Mr. White abstained for financial reasons on BILL NO. 03-214 because his residence is adjacent to that subdivision. BILL NO. 03-211 is ORDINANCE NO. 3258; BILL NO. 03-212 is ORDINANCE NO. 3259; BILL NO. 03-220 is ORDINANCE NO. 3260; BILL NO. 03-214 is ORDINANCE NO. 3261; BILL NO. 03-218 is ORDINANCE NO. 3262; BILL NO. 03-217 is ORDINANCE NO. 3263; BILL NO. 03-219 is ORDINANCE NO. 3264. BILL NO. 04-4 was given first reading as follows: AN ORDINANCE AUTHORIZING THE EXECUTION OF A SECOND AMENDMENT TO AMENDED AND RESTATED COOPERATION AGREEMENT FOR ST. VINCENT SEMINARY PROPERTY BETWEEN SOUTHEAST MISSOURI STATE UNIVERSITY AND THE CITY OF CAPE GIRARDEAU The first reading of BILL NO. 04-4 was approved upon Mr. Herbst's motion, Ms. Ritter's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. Mayor Knudtson thanked Mr. Leslie and all who worked to get this settled. Proceedings of Regular the City Council, City of Cape Girardeau, Mo. Session January 5, 2004 302 Toon 11 ss BILL NO. 04-9 was given first Tea ing as 5I owl AN ORDINANCE APPROPRIATING PROCEEDS OF THE CITY'S HOTEL/MOTEL TAX TO PAY A PORTION OF THE COSTS OF OBLIGATIONS ISSUED FOR THE SOUTHEAST MISSOURI STATE UNIVERSITY RIVER CAMPUS PROJECT The first reading of BILL NO. 04-9 was approved upon Mr. White's motion, Mr. Herbst's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. BILL NO. 04-6 was given first reading as follows: AN ORDINANCE AUTHORIZING THE MAYOR TO EXECUTE A QUIT CLAIM DEED TO CLILA, LP, FOR A PORTION OF EXCESS RIGHT-OF-WAY FROM RANNEY AVENUE, IN THE CITY OF CAPE GIRARDEAU, MISSOURI The first reading of BILL NO. 04-6 was approved upon Ms. Ritter's motion, Mr. Hopkins' second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. BILL NO. 04-7 was given first reading as follows: AN ORDINANCE AMENDING SECTION 16-13 OF THE CITY CODE RELATING TO ISSUANCE AND EXECUTE OF WARRANTS The first reading of BILL NO. 04-7 was approved upon Ms. Boardman's motion, Mr. Herbst's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. BILL NO. 04-10 was given first reading as follows: AN ORDINANCE ACCEPTING A PERMANENT ACCESS AND UTILITY EASEMENT FROM JEROME R. ZIMMER AND MARY J. ZIMMER FOR EXTENSION OF THE WATER DISTRIBUTION SYSTEM TO SERVE WHISPERING OAKS SUBDIVISION The first reading of BILL NO. 04-10 was approved upon Mr. White's motion, Mr. Herbst's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. BILL NO. 04-13 was given first reading as follows: AN ORDINANCE AUTHORIZING THE CITY MANAGER TO EXECUTE A MUNICIPAL AGREEMENT WITH THE MISSOURI HIGHWAYS AND TRANSPORTATION COMMISSION FOR IMPROVEMENTS ON ROUTE K FROM SIEMERS DRIVE TO MT. AUBURN ROAD, IN THE CITY OF CAPE GIRARDEAU, MISSOURI The first reading of BILL NO. 04-13 was approved upon Ms. Ritter's motion, Ms. Boardman's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. Mayor Knudtson thanked the city staff and Scott Meyer for their cooperative effort on the timing of this intersection. Upon questioning by Ms. Ritter, Mr. Leslie explained that this project is being fully funded by MoDOT through their safety allocation funds. Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session January 5, 2004 303 T00111195 BILL NO. 04-11 was presented as follows: A RESOLUTION AUTHORIZING THE CITY MANAGER TO EXECUTE A STANDARD LOAN AGREEMENT FOR A SKYHAWK AIRCRAFT WITH THE NATIONAL MUSEUM OF NAVAL AVIATION The reading of BILL NO. 04-11 was approved and the resolution adopted upon Mr. Herbst's motion, Mr. Hopkins' second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. BILL NO. 04-11 is RESOLUTION NO. 1935. Mr. Leslie explained that the Pilots Club and the Airport staff have jointly worked on this project. The only cost is hauling the aircraft to the airport and mounting it at the entrance, and the Pilots Club is working on funding for this. The City will be responsible for maintaining the aircraft in its present fashion. BILL NO. 04-12 was presented as follows: A RESOLUTION AUTHORIZING THE CITY MANAGER TO ENTER INTO AN AGREEMENT WITH PINKERTON CONSULTING AND INVESTIGATIONS FOR VULNERABILITY ASSESSMENT DEVELOPMENT AND EMERGENCY RESPONSE PLAN UPDATE FOR THE CITY'S WATERWORKS DIVISION, IN THE CITY OF CAPE GIRARDEAU, MISSOURI The reading of BILL NO. 04-12 was approved and the resolution adopted upon Mr. Herbst's motion, Mr. Hopkins' second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. BILL NO. 04-12 is RESOLUTION NO. 1936. Mr. Leslie explained that this is a federal mandate under the Homeland Security Act to meet EPA requirements. There are no grant funds available to fund the study. The contractor will develop a recommendation and cost estimates to consider in the upcoming budget, and the findings will also be submitted to the EPA. A retail liquor by the drink license for Minkin Enterprises LLC d/b/a Caf6 Azu, 1315 Broadway, Eric Viktor Minkin, Managing Officer, was conditionally approved upon Mr. Hopkins' motion, Mr. Herbst's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. A 5% beer by the drink liquor license to Qing Hong Wu d/b/a Chinatown Buffet, 213 S. Kingshighway, Qing Hong Wu, Managing Officer, was conditionally approved upon Ms. Boardman's motion, Mr. Herbst's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. Mr. White made a motion, seconded by Mr. Herbst, to grant an out -of -district sewer connection to Gwenn Freitag at 2984 County Road 620, LaCroix Pet Hospital, connecting to Trunk Sewer District No, 14. The motion was approved upon the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. The 6" water lines and booster station serving Whispering Oaks Subdivision were accepted into the city's system contingent upon satisfactory testing of the water lines, upon Mr. White's motion, Mr. Herbst's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session January 5, 2004 304 7001,,,95 A request of Marquette Office Building LLC for an extension of time for the Marquette Hotel and Parking Project was approved upon Mr. Herbst's motion, Ms. Ritter's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. The effluent from a sanitary sewer to serve a tract of land located east of Silver Springs Road between Bloomfield Road and Missouri Highway 74 was accepted into the city's system upon Mr. Purcell's motion, Mr. Hopkins' second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. The street, storm and sanitary sewer, and water improvements as shown on the plans approved for Arbor Heights First Subdivision were accepted, and partial release of escrow in the amount of $150,737 was authorized upon Mr. Herbst's motion, Mr. Purcell's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter. Nays, none. Mr. White abstained for financial reasons because his residence is adjacent to this subdivision. An out -of -district sewer connection to Ruth Ellen Holdman at 2309 Perryville Road and Robert McDowell at 2303 Perryville Road, connecting to Sewer District 14-R-3, Arbor Heights Subdivision, was granted upon Mr. White's motion, Mr. Purcell's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. BILL NO. 04-5 was given first reading as follows: AN ORDINANCE PROVIDING FOR A SALES TAX IN THE AMOUNT OF ONE-QUARTER OF ONE PERCENT FOR THE PURPOSE OF PROVIDING REVENUES FOR THE OPERATION OF THE CAPE GIRARDEAU MUNICIPAL FIRE DEPARTMENT AND CALLING AN ELECTION IN THE CITY OF CAPE GIRARDEAU, MISSOURI, ON THE QUESTION OF WHETHER TO IMPOSE SUCH SALES TAX Mr. Hopkins made a motion, seconded by Ms. Boardman, to approve the first reading of BILL NO. 04-5. Mayor Knudtson stated that the three options for this issue are to place it on the ballot in April, August, or not at all. To put it on the April ballot, the first reading of the ordinance must be approved at this meeting, and any amendments could be made at a future meeting. Mr. Leslie reviewed a program that would use the Fire Tax to benefit the Fire Department and indirectly address the needs of the Police and other departments. In developing a program, the staff reviewed the core needs identified in the Citizens Finance Task Force's findings and recommendations and found that they had not changed. The Fire Tax was the top vote getter in the last election, and it could address the most significant needs. There are two components to be addressed: capital and operating needs. He reviewed the projects that make up the annual capital costs of $1 million. PFA bonds would be issued to pay for the capital equipment and facilities, and the proceeds of the tax would be used to retire the bonds over a 10 year period. The largest change in capital costs from last April is renovating the Police Station instead of doubling the size of the station. He then reviewed the operating needs of $1 million annually. They included adjusting salaries to make them competitive with other agencies, upgrading communications equipment, and adding three firefighters to eliminate Fire Department overtime. Because of the pay-off of the Show Me Center Bonds, property tax rates are reduced this year by 21 percent. The approximate cost of the Fire Tax would be $44 annually per household, the savings from the Show Me Center Bonds is $20 annually per household and with the changes to the Fire equipment, this could reduce the ISO rating to 3 which reduces insurance costs to property owners. This tax would also help to free up $597,000 in the general fund to allocate to other general fund expenses. Upon questioning by Mr. White, Mr. Leslie explained that the only other significant revenue Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session January5, 2004 305 T00111195 allowed under State Statutes is a one-half cent Parks and Stormwater Tax; however, this could again raise concerns regarding a water park. The only remaining available taxes are the use tax, property tax extension or addition, and stormwater/park tax. All state programs for stormwater improvements have been frozen due to state budget cuts. Mr. Purcell questioned whether approval of this tax would address all the equipment needs through the equipment replacement fund. Mr. Leslie further explained that the equipment replacement fund is not fully funded, but it has been used to replace some equipment that has run its life. Annual lease payments are not anticipated to be made to the equipment replacement fund on equipment purchased by the proposed sales tax. As a result, funds would not be available in the equipment replacement fund to replace equipment purchased through this tax. The Council discussed the current status of the fire and police equipment and how it could affect the ISO rating. Mr. Purcell commented that he agrees the tax is needed but does not agree with how the city got to this point. The City needs to act in a more aggressive manner and address budget cuts, including service cuts if necessary. He was concerned that if something is not done with controlling the budget, the city will end up back in the same place even if the tax is approved. He suggested the city prioritize the needs of the city, including Police and Fire, and then fund the priorities as the city is able. Mr. Purcell stated that in order to endorse this Fire Tax package, he requested a commitment from the Council to reduce the expenses of the City by a certain amount or percentage. Mayor Knudtson stated he felt the City has made a good case to the citizens for the critical needs. The most important areas need to be identified and funded. The salaries of positions that are not paid equitably in the market should be addressed first, and the biggest needs are in the Fire and Police Departments. The salary needs cannot be addressed by simply cutting the trash service, for example. The Police Department is not able to hire qualified applicants at the current salary level. In addition, by imposing a sunset on the tax, accountability is also imposed on the city. The Council needs to approve a proposal that will be supported and approved by the voters. Mr. Hopkins stated that the staff has been judicious with the revenues but there have been many uncontrollable expenses over the past ten years, including health insurance. Ms. Ritter commented that there is no way to put a sunset on a revenue source which funds ongoing operating expenses of $10 million over ten years and expect the city to come up with $10 million at the end of the ten years. The City should not sunset something that is going to grow. Regarding health insurance costs, the only ways to control costs are to shift the costs to the employees or reduce the benefits to the employees. Mr. Purcell responded that he knows there are uncontrollable expenses, but the city should also be able to control some of its bills. The general revenue expenses should be prioritized and only the essential services should be funded. Small alterations have been made, but there have been no gains in the budget. Mr. Leslie explained that the staff has been cutting and reducing expenses for quite some time. To get significant reductions in the budget, the Council would have to consider service reductions. These are hard policy decisions that must be made by the Council to determine which services are most essential. Mayor Knudtson stated that in May of 2003 there was a citizen meeting to receive input from the public regarding the failed tax proposals. He reviewed several of the comments from this meeting and stated the Council needs to consider a proposal that will be the most successful. The way for Proceedings of the City Council, City of Cape Girardeau, Mo. Regular Session January 5, 2004 306 _ T_00111195 f this proposal to be successful is to impose a sunset provision. He stated he felt that the city could find the money at the end of the ten years to cover the ongoing expenses funded from the Fire Tax. The Council members discussed issues relating to a ten-year sunset provision, including the possibility of placing a sunset provision on half of the proposed one-quarter cent tax. Mr. Purcell reviewed a list of items that were presented in early 2002 that could help reduce city expenses. Mayor Knudtson stated he felt that no sunset on the tax will impede approval of the tax. The original motion to approve the reading of BILL NO. 04-5 was approved upon the following vote: aye, Boardman, Herbst, Hopkins, Knudtson, Ritter, White. Nays, Purcell. Mr. Purcell stated he voted against the proposal because the Council did not make a commitment to reduce the budget. Mr. Hopkins requested from city staff a report showing the annual percentage increase in the operating budget over the last ten years with an explanation for each increase. The Council agreed to hold a special City Council meeting on January 13 at 6:00 p.m. to consider the second and third readings of BILL NO. 04-5. There being no further business, the meeting adjourned upon Mr. Hopkins' motion, Ms. Boardman's second, and the following vote: Ayes, Boardman, Herbst, Hopkins, Knudtson, Purcell, Ritter, White. Nays, none. 4udtson, Mayor Gayle L. Conrad, City Clerk