The Prattville City Council met in regular session on Tuesday, October 19th at 6:00 p.m. in the Council Chambers at City Hall. The meeting was called to order by Council President Argo. Roll was called and all were recorded as being present. After the Pledge of Allegiance to the American Flag, Council President Argo gave the invocation.

THE CHARACTER TRAIT OF THE MONTH IS LOYALTY: Using difficult times to demonstrate my commitment to those I serve.

APPROVAL OF MINUTES: October 5th City Council Meeting.

Councilman Renegar made a motion to approve the minutes and Councilman Fank seconded the motion. The minutes were approved (7-0).

COMMENTS FROM PERSONS PRESENT:

Bob Lee, 112 Quail Run, Prattville, AL 36067, appeared before the Council to urge each of them to vote in opposition to Resolution number 3. He also presented a petition made up of Union Camp retirees, who urged stronger litter law enforcement. The petition was originally presented to the Council on February 2, 2010.

Jon Lee Finnegan, 211 Deer Run, Prattville, AL 36067, appeared before the Council to read a prepared statement in opposition to the proposal to take out a $3.1 million dollar loan so soon after the FY2010-2011 budget was passed. She reminded members of the Council of her protest against the $48 million bond issue that was issued in 2005.

At 6:20 p.m., the Council took a brief recess to restore order in the council chambers. Council President Argo asked Police Chief Wadsworth to escort a boisterous citizen out of the chamber so that the meeting could continue uninterrupted.

At 6:23 p.m., the meeting resumed.

Patricia Cummings, 1208 Kenwood Court, Prattville, AL 36067, appeared before the Council to urge them to vote in opposition to Resolution number 3 and to use cash on hand to pay the pending loan payment. She expressed her concern for the amount of the bond payments that will be due for each of the next 2 years.

Mike Ray, 640 Mimosa Road, Prattville AL 36067, appeared before the Council to voice his displeasure regarding Resolution number 3. He felt that it was wasteful spending by the Mayor and Councilmembers and stated that elected officials failed to prepare for the payment. He also expressed his opinion that the Council should use a line-item budget rather than a lump sum budget.

Councilman Gillespie stated that there is a plan in place to rectify the situation we’re faced with.

Councilman Miller asked for a copy of the written statements read by Ms. Finnegan, Ms. Cummings and Mr. Ray.

Pamela Burkardt, 203 Doe Drive, Prattville, AL 36067, appeared before the Council to express her dissatisfaction that the Council had adopted the FY2010-2011 budget. She asked Councilman Fank to vote against Resolution number 3. She then demanded that Mayor Byard and the five members of the Council who voted in favor of the FY2010-2011 budget to step down from their offices.

Jerry Cimis, 141 N. Chestnut Street, Prattville, AL 36067, appeared before the Council to thank Councilmen Gillespie and Boles for their diligence in attempting to keep spending down. He recommended that the Finance Committee be dissolved and the Finance Committee be reconstituted to include the full council. In his opinion, it appears that the Mayor dictates spending when it is the Council that should be dictating the spending. Regarding the loan proposal, Mr. Cimis questioned why no local banks were given an opportunity to make a proposal. He further stated that River Bank and Trust is located in Elmore County.

Councilman Gillespie thanked Mr. Cimis for appearing at the meeting to voice his concerns. He further stated that he will be working to trim the budget and also move toward implementing a line item budget.

Dawn Barben, 740 Kingsley Drive, Prattville, Al 36067, appeared before the Council to advise them that because of her mother’s accounting experience, she’s smart enough to know that the City is in trouble. She recommended that the Council follow §11-43-20 of the Code of Alabama, which allows municipalities to hire a city manager.

Councilman Boles asked Ms. Barben for a copy of her prepared written statement.

Charlie Graham, 126 Holly Court, Prattville AL 36066, appeared before the Council to state his displeasure with the way in which the budget public hearing was handled. He stated that numerous citizens submitted in-depth questions but did not receive credible answers from the Council. He further questioned the contract that the City had previously with Allied Waste and also questioned why the City didn’t use the $176,000 to build the transfer station back after the tornado. He stated his opposition to the loan proposal of $3.1 million just weeks after the FY2010-2011 budget was adopted.

Dennis Mullins, 111 Danya Drive, Prattville, AL 36067, appeared before the Council to offer a solution to the City’s current financial status. He offered to write a personal check to make his contribution towards paying the debt. He requested the Council form a committee to determine what each household would have to contribute to pay the loan. He further stated that the City needs a city manager rather than a CEO.

Steve Hollan, 545 Upper Kingston reminded members of the Council to do the right thing, not the easy thing and to be more frugal with his tax dollars.

Councilman Gillespie thanked Mr. Hollan and stated the difficulty he has experienced in dealing with this issue.

Debbie Salvador, 1205 Kenwood Court, Prattville AL 36067, appeared before the Council to express her confusion about whether members were inept or if they were being deceitful by forgetting and then remembering the loan payment was due. She recommended that council travel and training, website character traits, Chamber of Commerce, Horticulture and the LPGA be cut from the budget.

Councilman Boles informed Ms. Salvador that he had already asked that his travel be removed from the budget.

Jim Blink, 103 White Tail Court, Prattville, AL 36067, appeared before the Council to state that the proposal to borrow $3.1 million had caught him totally off guard. Mr. Blink stated that he is a local business owner and has concerns that sales taxes will be raised.

Councilman Boles stated that he has no choice but to vote in favor of the proposal because if he doesn’t, property taxes will be raised.

Bobby Carter, 559 West 4th Street, Prattville, AL 36067, appeared before the Council to state the solution in handling this issue would be to cut the budget enough to cover the cost of the loan.

Councilman Argo thanked Mr. Carter for his suggestion.

Will Hutchison, 103 Adell Place, Prattville, Al 36067, appeared before the Council to recommend that the Council allow the property taxes to go up so that the citizens may vote them all out of Office.

MAYOR’S REPORT:

Mayor Byard reminded everyone of the Candy Walk which is scheduled for Thursday, October 29th from 4:00-5:00 p.m. He also encouraged everyone to Trick or Treat Saturday evening from 5:00-8:00 p.m. He reported that improvements at Cooter’s Pond are almost complete and Medline has placed a construction trailer on its site in South Industrial Park.

Regarding Resolution number 3 on the evening’s agenda, the Mayor stated that while this issue certainly could have been handled differently, he asked the Council to move forward with the loan proposal. He further stated that if cash reserves were used to make the loan payment, its balance would be left too low to cover other obligations.

COUNCIL REPORTS:

Councilman Fank read a letter from Mr. Devoe Jones. Mr. Jones requested that the City provide him with a welcome letter, proclamation, or resolution that may be included in the official program for the annual observance of World Aids Day which is scheduled for November 16th at 7:00 p.m. and for the Health and Wellness Fair which is scheduled for November 15th at 7:00 p.m. at Doster Memorial Community Center. (A copy of Mr. Jones’ letter is made a part of the official record.)

Council President Argo recognized Mr. Tom Gaylord, Scout Master for Troop 25. Mr. Gaylord had announced that Terry Bryant Cook will receive his Eagle Scout Badge during a ceremony on November 14th.

AGENDA

1. ORDINANCE: REQUEST TO SURPLUS VEHICLES FROM THE POLICE DEPARTMENT. (ORDINANCE BOOK 2010, PAGE 022).

Councilman Wood made a motion to adopt the Ordinance and Councilman Gillespie seconded the motion. Because Ordinances are generally held for 2 weeks it is necessary for the council rules to be suspended if immediate action is to be taken. Councilman Renegar made the motion to suspend the rules and Councilman Gillespie seconded the motion. The rules were suspended (7-0). There being no discussion, the Ordinance was adopted with the following results:

2. ORDINANCE: REQUEST TO AMEND ORDINANCE BOOK 2010, PAGE 012, REQUEST TO SURPLUS VARIOUS ITEMS FROM THE POLICE DEPARTMENT. (RESOLUTION BOOK 2010, PAGE 023).

Councilman Gillespie made a motion to adopt the Ordinance and Councilman Wood seconded the motion. Because Ordinances are generally held for 2 weeks, it is necessary for the council rules to be suspended if immediate action is to be taken. Councilman Renegar made the motion to suspend the rules and Councilman Miller seconded the motion. The rules were suspended (7-0). There being no discussion, the Ordinance was adopted with the following vote:

3. RESOLUTION: TO AUTHORIZE THE MAYOR TO ENTER INTO A LOAN AGREEMENT WITH RIVER BANK AND TRUST FOR AN AMOUNT NOT TO EXCEED $3.1 MILLION.

Councilman Renegar made a motion to adopt the Resolution and Councilman Gillespie seconded the motion. During discussion, Councilman Gillespie questioned Finance Director Rod Morgan if it is his recommendation that the City borrow the $3.1 million plus interest. Mr. Morgan stated that it is and he is confident that the City can pay it back. Councilman Renegar asked Mr. Morgan which reserves would be used to pay the loan if additional money wasn’t borrowed. Mr. Morgan stated that we would have to tap into all reserve accounts including the debt service, general fund, and the bond service fund. He further stated that we could not dip into the Insurance reserve funds.

Councilman Wood stated his concern to Mr. Morgan about the need to borrow funds so quickly after the budget was passed. Councilman Wood recommended that the loan payment be paid from the City’s reserves and in the event other bills came due and there weren’t enough funds to pay them, at that time the City could borrow money on a short term loan. Due to the Council not receiving the proper information to make sound judgment decisions, he recommended the budget go back to the Budget Committee.

Councilman Miller discussed the anxiety he feels regarding borrowing money to pay debt. He further stated his concern over being placed in a position to borrow funds from River Bank and Trust, a bank in which he owns minimal stock. While there is no ethical violation in voting in favor of borrowing money from the bank, he stated his concern about public perception.

Councilman Boles questioned Mr. Morgan about the amount of money he could put his hands on. Mr. Morgan stated that if he used all funds in the reserve accounts, the City would not be able to pay anything else. Councilman Boles also asked if the Mayor was involved in the discussion regarding the possibility of taking out a loan prior to the passage of the budget. Mr. Morgan stated that several options were discussed.

Council President Argo stated that he shares in the frustration and anger over the circumstances we face. He further stated that even though he owns a minimal amount of stock in River Bank and Trust, it is not an ethics violation for him to cast a vote. He stated that according to §36-25-5 of the Code of Alabama 1975 as amended, he does not own more than five percent of available stock and is therefore allowed to vote. However, he stated that due to a negative perception, he will abstain from voting.

Councilman Fank stated that since the bond payment wasn’t due until November 1st, the Resolution didn’t have to be approved tonight. He respectfully requested that the Resolution be held until the Council can find a proper way in which to handle it.

Council President Argo stated that should the Council decide it was necessary, he had an alternate Resolution that would change the lending bank to Regions. He also asked Mr. Morgan what the repercussions would be if we didn’t make the bond payment by November 1. Mr. Morgan stated that it would be catastrophic to default.

Councilman Wood asked Mr. Morgan why it would be necessary to default and Mr. Morgan said that we would have to default on something because other payments are due and there would not be enough funds left in reserves.

Councilman Fank made a motion to hold the Resolution for 2 weeks to allow for a work session and special council meeting. Councilman Wood seconded the motion.

Councilman Boles asked Mr. Morgan once again if we could pay the bond payment and Mr. Morgan again told him that we would not be able to meet all of our obligations if we did pay it with the reserves. Councilman Boles stated that is what he wanted to hear.

The vote was called to hold the Resolution and all were in favor (7-0). Council President Argo stated that a work session would be held on Monday, October 25th, at 6:00 p.m. and a special session of the Council will be held on Tuesday, October 26th, at 6:00 p.m.

Councilman Renegar requested that Mr. Morgan send out an RFP to all banks located in Prattville.

4. RESOLUTION: TO AUTHORIZE THE MAYOR TO ENTER INTO A LEASE AGREEMENT/CONTRACT FOR SERVICES WITH THE AUTAUGA COUNTY FAMILY SUPPORT CENTER. (RESOLUTION BOOK 2010, PAGE 078).

Councilman Wood made a motion to adopt the Resolution and Councilman Renegar seconded the motion. During discussion, Councilman Miller questioned the market value of the space rented to the Family Support Center. The answer was not readily available. The Resolution was adopted with the following results:

At this time, Councilman Miller, who voted on the prevailing side of the passage of the FY 2010-2011 budget, Resolution Book 2010, Page 075, approved during the October 5th council meeting, made a motion to reconsider. Councilman Renegar seconded the motion. All were in favor of bringing the budget back before the Council with a roll call vote:

Councilman Miller made a motion to lay it on the table and Councilman Renegar seconded the motion. During discussion, Councilman Miller stated that he also had a Resolution to present for the City to continue to operate on a day to day basis, a Resolution prepared to revise the FY 2010-2011 budget and a Resolution prepared to freeze hiring. With a roll call vote, the Resolution was laid on the table.

5. RESOLUTION: APPROPRIATING FIXED EXPENSES AND SALARIES AND CONTINUING POLICY PROCEDURES. (RESOLUTION BOOK 2010, PAGE 079).

Councilman Miller made the motion to adopt the Resolution and Councilman Gillespie seconded the motion. Because the Resolution was introduced from the floor and didn’t appear on the evening’s agenda, it is necessary for the rules to be suspended. Councilman Renegar made the motion to suspend the rules and Councilman Fank seconded the motion. The rules were suspended (7-0). The Resolution was adopted with the following roll call vote:

6. RESOLUTION: TO REVISE THE FY 2010-2011 BUDGET. (RESOLUTION BOOK 2010, PAGE 080).

Councilman Miller made the motion to adopt the Resolution and Councilman Boles seconded the motion. Because the Resolution was introduced from the floor and didn’t appear on the evening’s agenda, it is necessary for the rules to be suspended. Councilman Renegar made the motion to suspend the rules and Councilman Gillespie seconded the motion. The rules were suspended (7-0). The Resolution was adopted with the following roll call vote:

7. RESOLUTION: COUNCIL AUTHORIZATION FOR HIRING FOR VACANT POSITIONS. (RESOLUTION BOOK 2010, PAGE 081).

Councilman Wood made the motion to adopt the Resolution and Councilman Boles seconded the motion. Because the Resolution was introduced from the floor and didn’t appear on the evening’s agenda, it is necessary for the rules to be suspended. Councilman Gillespie made the motion to suspend the rules and Councilman Wood seconded the motion. The rules were suspended (7-0). During discussion, Councilman Miller asked Human Resources Director Lisa Thrash for the number of budgeted/vacant positions. Mrs. Thrash stated that there are currently 6 open positions. There being no further discussion, the Resolution was adopted with the following roll call vote:

CLOSING:

Councilman Miller thanked everyone for their participation and also stated that the Mayor and Council have opportunities to move forward in the right way that will set the City on the best path for growth.

Councilman Boles thanked the Council for “manning up.”

Council President Argo echoed Councilman Miller’s comments. He also reminded everyone to vote on November 2nd.

ADJOURN:

There being no further business to come before the Council, Councilman Renegar made a motion to adjourn and Councilman Fank seconded the motion. The meeting closed at 7:58 p.m.

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Gina P. Smith
City Clerk

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Dean Argo, President
Prattville City Council