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COUNCIL MINUTES
SPECIAL WORKSHOP MEETING
January 20, 2015
A special workshop meeting of the City Council of the City of Jacksonville was held
Tuesday, January 20, 2015 beginning at 4:00 PM at the Jacksonville Youth Center, 804 New
Bridge Street. Present were: Mayor Sammy Phillips presiding; Mayor Pro-Tem Michael Lazzara
and Council Members: Jerry Bittner, Randy Thomas, and Bob Warden. Council Member Jerome
Willingham arrived at 4:30 PM. Council Member Angelia Washington was unable to attend.
Also present were: Richard Woodruff, City Manager; Ronald Massey, Deputy City Manager;
Gayle Maides, Finance Director; Glenn Hargett, Assistant Manager for Communications and
Community Affairs; Wally Hansen, Public Services Director; Reggie Goodson, Planning and
Development Services Director; Mike Yaniero, Director of Public Safety; Susan Baptist,
Director of Recreation Services; Michael Liquori, Director of Park Facilities; Carolyn Lampe,
Deputy City Clerk; and John Carter, City Attorney.
*A video recording of the Council Meeting is presently available for review on the City’s
website.
CALL TO ORDER
Mayor Sammy Phillips called the meeting to order at 4:00 PM.
ADOPTION OF AGENDA
A motion was made by Councilman Bittner, seconded by Councilman Thomas, and
unanimously approved to adopt the agenda as presented.
FY 15 BUDGET MIDPOINT REVIEW
Using the PowerPoint Presentation attached to the original minutes as Exhibit “A,” Gayle
Maides, Finance Director stated that the unassigned fund balance for FY14 was $8.2 million with
a projected decrease in balance to $6.2 million in FY15 if all the amount budgeted was spent;
however, she felt that the balance would probably remain the same as it was in FY14. For the
General Fund, 81% and about a quarter of the sales tax had been collected which was in line with
last year. Privilege license collections were down for this year and would be going away next
year. This year’s collections came only from businesses physically located in the City.

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Mayor Phillips stated that there was talk from the legislature that they would allow $100
per license, and asked if that passed, what would be the offset. Mr. Woodruff stated that analysis
was done last year and he thought it would generate about $200,000 to $300,000.
Ms. Maides reviewed the other revenues and expenditures in the General Fund and stated
some savings would be expected from the decline in fuel costs.
In reviewing the Water and Sewer Fund, she stated revenues were where expected;
however, there had been an increase in expenditures due to failures such as pump failures at
$120,000, infrastructure repairs at $105,000 and the Meadowbrook project, a sewer line collapse
40 feet underground, at $260,000. Mr. Woodruff reminded Council that these projects were not
Capital Projects so the costs came out of the operating side. If Council had not addressed the
water and sewer rates previously, that would have put the budget into a bigger hole. This was
why a healthy operating budget was needed in addition to a healthy fund balance.
Ms. Maides stated the Stormwater Fund was also where they expected it to be for
revenues and expenditures. A debt service payment was being budgeted for the Downtown
Central Project that was not being moved forward, so there would be savings there. Mr.
Woodruff stated that in regard to the revenue, the commercial growth and its impervious surface
resulted in more revenue to the Stormwater Fund.
In reviewing the Solid Waste Fund as a whole, Ms. Maides stated that revenues and
expenditures were where they were expected to be. Some savings came from two trucks that
were budgeted, but not yet purchased.
COMMERCIAL GARBAGE COLLECTION UPDATE
Using Exhibit “A,” Kerry Terrell, Sanitation Superintendent reviewed the
implementation of the commercial collection that began July 1, 2014 and the benefits of getting
into this service. The customer service of the program was excellent and direct contact had been
made with business customers developing good relationships. Dumpsters were supplied to
businesses on Western Boulevard who did not have dumpsters in the past and staff was working
on recycling with those that didn’t currently have it.
Mr. Woodruff stated that from a customer service and quality of service standpoint, the
goals set by Council were met. Unfortunately the service was not self-funded as had been
projected. The Monday through Friday fees were as projected, as well as extra pickups;
however, a 2008 truck was totaled in an accident and the effects caused expenditures that had not

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been budgeted. No funding was budgeted for overtime which occurred because of equipment
repairs and the accident which extended the time of the routes and a driver shortage for 10
weeks. This accounted for $24,476 in overtime with another $10,000 forecasted for the
remainder of the year. As an overtime solution, a new driver was hired who had two years
experience and a residential driver was being trained for part-time regular hours. It was
discovered that commercial trucks had more expensive repairs than residential trucks and if
repairs continued at the same pace, we would be $180,000 over budget. All the trucks were now
in better condition, but repair bills would still be substantial. Mr. Woodruff reviewed the Action
Plan and possible options to take care of the problems.
Mayor Phillips asked if there were special pickups during the week. Mr. Terrell stated
that they were very flexible in taking care of what the customer requested. There were
restrictions on where they could go at certain times like apartment complexes and places close to
residential areas, so they had to come back to those areas.
Mr. Woodruff reviewed several options for Council to consider on commercial service.
Several lessons were learned to date and even though staff was able to give excellent customer
service, it was not free and the service was not self-funding as planned. Mr. Woodruff
recommended that bid documents be sent out for commercial service to see what current rates
were and then Council could decide if they wanted to stay in the business or privatize it again.
He also recommended that the Saturday rate be raised immediately by 36 cents so that the fee
charged matched what Waste Management would have charged.
Discussion followed.
Mayor Pro-Tem Lazzara stated that as a commercial customer, the quality of service
expectations had been exceeded. He asked if there was any analysis on doing away with
Saturday service in lieu of raising the rate. Would the increase outweigh the elimination of the
service. Mr. Woodruff stated that the number one customer on Saturday was restaurants. We
were covering our cost, but should be making more profit to offset losses during the week. The
provider on Saturday was charging $300 a month and we weren’t anywhere close to that amount.
Mayor Phillips asked if the rate was increased on Saturdays, how close would we be to
our budget. Mr. Woodruff responded that there weren’t enough customers to bring it close.
Mayor Pro-Tem Lazzara asked if the decrease in fuel cost had helped. Mr. Woodruff
stated the projection would have been worse had there not been a fuel decrease.

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Councilman Thomas commented that looking at the figures for the past six months to
meet expenses, the City would have to increase the tipping rate by 60%. So far, 82% of the
budget was spent with 50% of the revenue.
Discussion followed on bidding and personnel.
Mayor Phillips stated that everyone should have done a better analysis including Council,
but the number one reason we got into this area was the level of service being provided. The
intent and effort were there to make this work. Better service was accomplished. His position
was to take it out to bid again and look at what the private sector was offering. It might be
something to continue at a better rate.
Mayor Pro-Tem Lazzara stated that based on our experience, on a conservative level we
needed to decide what the rate should be so this conversation would not come up again. Mr.
Woodruff stated the rate would be calculated this week based on the current numbers.
Councilman Warden asked why the City had the responsibility for putting commercial
rates out for bid and why restaurants shouldn’t make their own arrangements directly instead of
the City acting as a third party or service provider.
Mr. Woodruff stated there was power in bulk buying which was the only justification for
the City to become involved. There was no requirement that the City had to provide this service.
Councilman Warden said the problem was that the City had the responsibility to respond,
but had little authority to make anyone meet quality service requirements.
Mayor Pro-Tem Lazzara stated that the City needed to stop providing the billing and
collection service for the private operators if the commercial service was going to be sent out for
bid.
Councilman Bittner stated that we needed to bid the same time period (three, four, five
years) and if we were still concerned about the quality of service, there should be a penalty
clause for missed service as the City would guarantee that commercial garbage was collected
even if it cost us overtime.
Mr. Woodruff stated that in the last bid document there was a substantial improvement in
the issue of missed calls. He recommended that bid documents be prepared including the points
that Council just discussed. After the bids were received, Council could then decide if they
wanted to get into the business directly, indirectly or not at all. Under the former system, the

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City guaranteed 100% collection. If collection wasn’t made, the City was still responsible for
payment to the provider. This was the reason the bids came in so low.
Councilman Thomas stated that if we were truly worried about our commercial
customers, the blanket bid had to give them the best value. He didn’t see the administrative part
as much on our part because we were already sending out the water bill; however, the cost may
be more for a private provider. We didn’t get bids the last time because some providers wanted
exclusivity which we gave to ourselves. He asked if the Ordinance giving exclusivity to the City
could be revised.
John Carter, City Attorney stated that as we were going through the bidding process last
time, it was clearly discovered that Council never made the Waste Management contract an
exclusive contract. Council never made bidding exclusive for a private vendor. Everyone just
assumed it was exclusive. Mr. Carter pointed out that before bids were sent out, Council needed
to decide if they wanted the contract to be exclusive or non-exclusive and then take appropriate
legal actions to make it that way.
RECESS/RECONVENE
Mayor Phillips recessed the meeting at 5:06 PM for a short break. Mayor Phillips
reconvened the meeting at 5:24 PM.
FY15 CAPITAL IMPROVEMENT PLAN (CIP) UPDATE
Using Exhibit “A,” Deanna Young, Capital Projects Administrator began her review of
the status of the 32 FY15 CIP projects and stated that within 30 days staff would provide Council
with the draft FY16 CIP. Fire Station #2 was at 90% completion with interiors being finalized.
The projected completion date was the end of January, beginning of February. The two
completed recreation projects included Jacksonville Landing which final signoff should be
within the next few weeks and Jack Amyette. The NC 24 Lejeune Trail and Greenway was
finally out to bid with a mandatory pre-bid meeting next week and bids due back in February.
Councilman Thomas asked about the Center for Public Safety. Ms. Young stated that the
building was now occupied, the contractor was working on removing the asbestos and
completing the abatement on the old building, and demolition should occur within the next few
weeks.
Ms. Young stated the Public Services Phase II project had been in the CIP for a number
of years. The project initially consisted of a much larger scope, but was well over budget. After

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working through issues, the project now consisted mainly of a grading and paving project with
the construction of a new wet stormwater pond (BMP) in the back. Design issues were worked
through and construction started. The project was being funded in part with Federal
Transportation Administration funds and had a hard deadline completion date of June 1, 2015.
Councilman Bittner asked what the project consisted of. Ms. Young stated that paving
and stormwater drainage pipes would be installed up front. The paving was for buses around the
front of the complex and beside by the Fleet complex so the buses could be driven around the
building.
The automated step screens project initially consisted of replacing the mechanical bar
screen with an automated bar screen, but with more in-depth conversations to identify the need,
the project scope increased. Now it also included some type of enclosure so that it didn’t freeze
in cold temperatures with some type of heating element and electrical component. Construction
was being postponed until FY16 with the FY15 funding used to begin the preliminary design.
The Parkwood Regional and Western Trunk Sewer project was delayed as a result of having to
obtain easements through Burton Park. With those obtained, the project was back on schedule.
Mr. Woodruff stated that as part of the Interlocal Agreement with the County, in
exchange for the easement, the City would remove the Tax Office building. That work would be
performed when the easement became active which was scheduled to occur on December 15,
2015. In recent discussions with the County, the Northwest Lift Station of ONWASA and the
force main along Route 258 were underway and on schedule with the anticipation of completion
being late summer. If that occurred, County staff was in agreement to recommend to the County
Commissioners that the activation date be moved up or stay firm. At that point, the City would
proceed to take down the Tax Building and complete the parking lot. There was a direct nexus
between the two and the easement must be activated first.
Mr. Carter stated that funding was not a General Fund obligation and would come from
the Water and Sewer Fund. Ms. Young stated that it would be better defined in the FY16 CIP as
notated on the CIP form.
The Downtown Central Stormwater Phase I project was in final design and ready to go
out for bid when further analysis determined the benefits did not justify the expenditure and
return. The scope was reduced to install only two BMPs which would be located at the entrance

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to the Sturgeon City site and benefit the Sturgeon City Civic and Environmental Education
Center.
Mr. Woodruff stated that negotiations with DENR caused those projects not to be funded.
We had hoped to create a regional stormwater facility that would generate credits so as
redevelopment occurred in the downtown area, a party could develop property and buy credits in
the stormwater pond. DENR management did not see that as a positive stating it would only
help the environment. Staff could not find justification to build the facility without grant
funding. Only Councilman Willingham had been asked for his input on the project because it
was in his Ward.
Councilman Warden asked with the change in governors would the proposal now be
received more favorably. Mr. Woodruff stated that the controller of this project was in
Wilmington instead of Raleigh. Raleigh saw the value in the project, but the Wilmington
Director did not see it the same way and would not concur. Mr. Carter stated that there were also
other issues with the land involving getting clear title to the property.
Councilman Willingham stated that the struggle we were having seemed a little illogical
when seeing best practices at conferences showing there was an effort to consolidate ponds as an
incentive especially in downtown redevelopment where space was limited.
Ms. Young stated the Sturgeon City Civic and Environmental Education Center was at
100% design and ready to go out for bid about a year ago when environmental issues with the
State came up. Staff was working to resolve those issues.
Councilman Bittner asked what the issues were. Ms. Young stated that the State
determined contamination was on the Sturgeon City site outside the park area, but the limits of
contamination were high enough to investigate. The parking lot was in the area of concern and
not the building. Based on preliminary conversations, she felt land restrictions could be met, but
wanted those restrictions in hand before proceeding. Also over the course of the past year, the
State determined that when prequalified contractors were used there had to be a prequalification
policy for construction in place along with an application and criteria specific to the project. Ms.
Young stated that at the next Council meeting a contractor prequalification policy would be
presented for Council’s consideration. This policy was used for the Sturgeon City project and
the Center for Public Safety project and was modeled after the State construction office and their
criteria.

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Councilman Bittner asked if the policy would resolve the issues over the increase costs of
the facility and would the costs come in over what was originally planned. Mr. Woodruff stated
that the latest opinion of probable costs showed that even after all the modifications, we were
still about $300,000 underfunded and that figure was about a year old. If Council was going to
move forward with the current Sturgeon City project, the bond funding would not be sufficient.
Using Exhibit “A,” Greg Meshaw, Senior Civil Engineer reviewed the streets assessment
ratings regarding serviceability, the work that was done, and the outcome.
Mr. Woodruff stated that the street conditions overall in Jacksonville needed more
attention than we had funding. Powell Bill was the primary source which was about $1 million a
year. By combining several years we are able to get better bids. If we had twice the funding
every year, we would still be chasing road conditions. The decision to catch the roads at the “C”
level, before they got worse was the right decision and the data presented proved it.
Mayor Pro-Tem Lazzara asked if staff had looked at what it would take to subsidize the
program. Mr. Woodruff stated that had not been done, but staff would look to see how much
more could be done.
Councilman Bittner asked if staff was expecting a decrease in Powell Bill funding this
year. Gayle Maides stated that we should know in March or April what the funding would be.
INTELLIGENT TRANSPORTATION SYSTEM (ITS) UPDATE
Anthony Prinz, Transportation Services Administrator stated they had been in the signal
business for the past six months and received a lot of good feedback from the citizens and City
staff regarding better travel times. He reviewed what made up the system and stated all of the
technology came back to the operation center located in the Center for Public Safety. The 87
traffic signals in the ITS system did not include the traffic signals on Piney Green Road. Those
signals were controlled by the contractor in charge of the construction, but they had an
agreement with the contractor to check-in periodically on the operation especially where Piney
Green connected to Marine Blvd and to Lejeune Blvd. Those signals would be added to the
system when construction was complete either late this year or early next year.
Councilman Thomas asked about the traffic counters. Mr. Prinz stated they were in-
payment loops at traffic signals. They were there not only to determine signal timing, but to also
count the vehicles. Loops were also midstream on some streets and were strictly for counting
traffic.

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Mr. Prinz stated one preventative maintenance cycle was complete with every component
in the field being looked at. It was found that the system wasn’t in the shape anticipated. The
ITS project updated all of the technology, but didn’t include a comprehensive round of
preventative maintenance. As an example, when the traffic center was turned on, it went through
a self-diagnostic process and identified over 100 loops that weren’t operational. Repairs were
made and in some cases even rewiring had to be done. It was also identified that the emergency
preemption system was not operating at full capacity. Up until two months ago, only 50% of
those locations were working properly. It would be two to three more full weeks to make sure
all the locations were operable. Optimization was what they were after to make sure traffic was
flowing smoothly through Jacksonville. It would take about six to eight months to complete the
work, but in the past three months substantial progress was made.
Councilman Bittner asked how many staff members provided the service. Mr. Prinz
stated the traffic signal crew consisted of a supervisor and 2 technicians that rotated on call 24/7
to respond to emergencies.
Councilman Bittner asked if there was a service agreement with NCDOT. Mr. Prinz
stated that all of the infrastructure that the City maintained was owned by NCDOT, so when we
called their on-call contractor, the bill was sent to the Division Office. On an emergency repair,
if a piece of equipment needed replaced, we put what we had in stock into place and they
replenished it. This did away with reimbursement paperwork.
Mr. Prinz stated that one of their accomplishments had to do with optimization. They
started on the western part of the City and were moving east. The corridors of Richlands
Highway, Wilmington Highway, Marine Boulevard, Gum Branch Road, and Bell Fork Road had
been completed and they were in the process of taking on Western Boulevard. Runs were taken
prior to and after optimizations to get real time figures which showed reductions in travel time,
delays, stops, and fuel consumption. Investing in ITS was a very cost effective decision. The
first cycle of optimization should be completed within the next few months and then they would
start over again. They wanted to be able to adapt the system to accommodate changing travel
patterns and continue to develop timing patterns for various events whether it be National Night
Out or a 96 hour Base holiday. A Memorandum of Understanding was being worked on with the
Base to integrate the Camp Lejeune traffic signals into the ITS system to improve efficiencies of
traveling on and off Base. One of the challenges for FY16 was a proposed reduction to the

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Schedule C which set the parameters on how the system was maintained and amount NCDOT
would reimburse for associated costs. We were told that reimbursements would be reduced by
25% or $45,000.
Councilman Bittner asked why NCDOT was proposing the reduction. Mr. Prinz stated
that it was due to the new funding system that NCDOT put in place. This was the same reason
we may see differences in the Powell Bill distribution. The reduction in funding was being
spread across the Divisions, so NCDOT was looking for ways to cut and Schedule C was a low
priority for them. With the reduction, they weren’t expecting us to maintain the signals at such a
high level. Mr. Woodruff stated that the challenge in maintaining them only once a year instead
of twice a year would catch up with us over time. Mr. Prinz stated it could also put us in the
same situation that we inherited.
RECESS/RECONVENE
Mayor Phillips recessed the meeting at 6:15 PM for a short break. Mayor Phillips
reconvened the meeting at 6:24 PM.
FY16 REVENUE FORECAST & BUDGET PLANNING ASSUMPTIONS
Using Exhibit “A,” Ms. Maides reviewed FY16 budget assumptions. She said that the
County felt there may be some appeals on the property tax this year, but they didn’t feel it would
be a huge number so property taxes would not change. The City should get about $100,000 to
$150,000 more in sales tax because of the change in the property tax levy last year. There would
be no increase in the water and sewer rates, stormwater fees, and residential solid waste fees;
however, the annual subsidy from the General Fund would continue. To deal with the loss of the
Privilege License revenue, spending would be cut and new revenue sources were being looked
at. The maximum that had been paid for fuel was significantly less than what was budgeted, so
she felt comfortable in reducing fuel pricing, but not to the levels of today.
Discussion followed on fuel pricing. Mr. Woodruff stated that Council would be
presented gross numbers using different fuel price levels for all departments and individual
departments.
Councilman Thomas stated that it was important in the long term to look at ways to
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Mr. Woodruff stated that Michael Liquori, Director of Park Facilities was experimenting
at converting some of our large mowers from gasoline to propane. Ed Richards, Fleet Supervisor
was also looking at alternatives for our vehicles.
Councilman Bittner stated that research was available on using propane and natural gas in
municipalities and state government across the country.
Ms. Maides stated that health care was very difficult to predict and was running high this
year. The projected national average health care cost projection for next year was 8% and ours
was usually not as high.
Mr. Woodruff stated that the money that was left over on the health insurance program
each year stayed in a health insurance fund. For the past two years a rate increase was not passed
on to the employees because the fund was up to $1 million. Wellness was a direct benefit in
keeping health insurance premiums the same and our wellness initiatives would continue.
In regard to revenues, Ms. Maides stated that they were predicting the same amount of
revenue in FY16 as in FY15. Mr. Woodruff stated that different scenarios would be prepared for
Council on the possible effects of pending legislation that could change sales tax distribution.
Ms. Maides stated the current uncommitted balance in the Council Initiatives fund in
Capital Reserves was $1.15 million which could be used to complete Fire Station #2, Sturgeon
City or other projects.
Councilman Bittner asked if Fire Station #2 wasn’t budgeted. Mr. Woodruff stated that
the station was on track to be completed within the budget, but there were certain elements not
included in the bid including the exhaust system.
Mr. Woodruff reviewed the dates of the budget schedule and stated staff believed it was a
budget that Council may be able to adopt in early May.
Councilman Bittner asked about the cost sharing agreement with the Sturgeon City
Building. Mr. Woodruff stated that by memory, $4 million in bonds was set aside which
included architectural fees. The payment plan was roughly $300,000 per year split three ways -
$75,000 from Sturgeon City Board; $75,000 from General Fund; and $150,000 from the
Jacksonville Tourism Development Authority.
Mayor Pro-Tem Lazzara asked what would happen with the funding if the building did
not become a reality. Mr. Woodruff stated it would become a legal question because the City
said in the bond issue that three buildings were to be built.

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Mr. Carter stated there would be a legal issue with the bond if the environmental issues
could not be remediated and we didn’t build. Staff had been in contact with the office of the
Assistant Attorney General to DENR monthly to track the progress. If prudent, he would see if
the matter could be expedited as time was of the essence.
Councilman Thomas said that a sales tax increase on new levies was mentioned and
asked if there was any anticipation of a sales tax gain in totality. Ms. Maides stated that some of
the articles she has read pertained to that, but we had to be really careful because we did not see
the decreases in early 2000 as other communities did.
PROGRESS REPORT - $750,000 REDUCTION GOAL
Using Exhibit “A,” Mr. Woodruff updated Council on what had been done to date to help
with the $750,000 loss in revenue due to the loss of privilege licenses. He stated that currently
every vacant position was analyzed as it came open. The only positions not held were for police
and fire as those were life safety issues. There were six vacant positions put on hold for a
$400,000 savings in salaries and direct benefits. We were not laying off employees, but
downsizing through attrition. Studies were also done on the three E’s and some savings were
realized on copiers, printers and cell phones. State law permitted the fire department and City to
file a claim when there was an accident with a hazmat spill. Mr. Woodruff stated the only thing
the City was allowed to collect from accidents was hazmat spills, so we were now diligently
looking at recovery which could save $40,000 to $50,000 per year. It was not a direct bill to the
person involved in the accident, but a recovery through insurance. Another income opportunity
was passport processing and the City received approval on January 14, 2015. Current staff
would be used with a potential benefit of $40,000 to $50,000 per year. These potential fees and
savings were coming to us before losing the privilege fees and were adding to the general fund
this fiscal year.
ADVISORY COMMITTEE SUMMIT REPORT
Mr. Woodruff stated the Advisory Committee Summit occurred about a month ago.
There were 56 members in attendance breaking down 23 things that they liked and 24 things that
they would like to change about Jacksonville. The top likes included safety, small town feel,
citizen involvement with the City, City-Military relationship, military friendly community, trails
and bike routes, recreation and sports activities, beautification and cleanliness, and quality City
services and transparency. Public Safety was making a difference in this community with 7 lives

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saved in 2014 and response times decreased for both police and fire with over 123,000 calls for
service. Several examples of each of the top likes were reviewed. The top changes that the
committee members would like to see included improve older developments, build a civic or
convention center, build a pool or splash pad, increase jobs in the area and lower taxes. Mr.
Woodruff stated that the streets presentation by Mr. Meshaw showed how the City was trying to
stretch the funding they had for paving and street repairs. He then reviewed several examples of
each of the top changes.
FY16 MAJOR TASKS
Mr. Woodruff stated that Council needed to identify over the next month anything that
they wanted staff to include in the budget in the form of tasks. This did not include Capital
Improvement items as those would go into the fourth or fifth year.
ADJOURNMENT
A motion was made by Councilman Bittner, seconded by Councilman Willingham, and
unanimously adopted to adjourn the meeting at 7:12 PM.
Adopted by the Jacksonville City Council in regular session this 17th day of February,
2015.
______________________________
Sammy Phillips, Mayor
ATTEST:
______________________________
Carmen K. Miracle, City Clerk

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Jacksonville City Council
Agenda
1. FY15 Midpoint Review
2. Commercial Garbage Collection
Status
3. FY15 CIP Update
4. Intelligent Traffic System Update
5. FY16 Revenue Forecasts &
Budget Workshop Assumptions
January 20, 2015
Slide #21
Agenda
6. Progress Report -$750,000
Reduction Goal
FY15 Budget
7. Advisory Committee Summit Report
Midpoint Review
8. FY16 Major Tasks
9. General Discussion
Slide #24
Slide #22
General Fund
FY15 Fund Balance Six Months ending December 31
In Millions
Unassigned Fund Balance Budget
FY14 FY15 Amended
FY12 $8.0M Revenues YTD YTD FY15 %
Ad Valorem Taxes 15.9 18.8 23.1 81%
FY13 $5.4M
Sales Tax 2.5 2.7 10.3 26%
FY14 $8.2M
Fund Balance Appropriations 0 0 2.6
FY15 $6.2M*
All Other Revenues 5.7 6.4 11.2 57%
*Based on Budget Totals 24.2 27.9 47.2 59%
Expenditures 24.7 22.4 47.2 47%
Slide #26
Slide #25 Slide #26

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Water & Sewer Fund Stormwater Fund
Six Months ending December 31 Six Months ending December 31
In Millions In Millions
Budget Budget
FY14 FY15 Amended FY14 FY15 Amended
Revenues YTD YTD FY15 % Revenues YTD YTD FY15 %
UserFees 9.5 10.1 21.6 47% Charges for Services 1.4 1.5 2.8 54%
FacilityFees .4 .3 .8 38% Fund Balance Appropriations (0.1)
Fund Balance Appropriations 4.6 All Other Revenues .1
All Other Revenues 0.6 1.0 1.5 67% Totals 1.4 1.5 2.8 54%
Totals 10.5 11.4 28.5 40% Expenditures 1.4 1.2 2.8 43%
Expenditures 11.8 10.9 28.5 38%
Slide #27 Slide #28
Slide #27 Slide #28
Solid Waste Fund Solid Waste Fund
Six Months ending December 31 Commercial Collections
In Millions Six Months ending December 31
In Millions
Budget Budget
FY14 FY15 Amended FY15 Amended
Revenues YTD YTD FY15 % Revenues YTD FY15 %
Charges for Services 1.8 2.2 4.2 52% Charges for Services 367,835 705,855 52%
Fund Balance Appropriations 0 0 0.2 All Other Revenues 8,346 10,000 84%
All Other Revenues 1.0 1.0 1.8 56% Totals 376,181 715,855 53%
Totals 2.8 3.2 6.2 52% Expenditures 589,734 715,855 82%
Expenditures 4.0 2.7 6.2 43.5%
Slide #29 Slide #30
Slide #29 Slide #30
Report Components
1. Implementation
2. Revenue
Commercial Garbage Collection
3. Expenditures
Update
–Expenditure Issues
4. Customer Service
5. Moving Forward
Slide #32
Slide #33

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Implementation Benefits
• Hired 6 employees
• City controls the quality of service to customers
–4 Drivers
• Ability to address customer complaints
–1 Back-up/Support Driver
–Heavy Truck Mechanic • Real time information
• Purchased Equipment • Fewer missed pick-ups
–5 refurbished front-end trucks • Flexibility to respond quickly to customer
–Purchased 1 container truck service requests
–Purchased 60 recycling dumpsters • Opportunities to expand services
• July 1, 2014 City began service
• Ability to encourage recycling participation
Slide #34 Slide #35
Commercial Dumpster Program
Budget
Contractor City
(June 2014) (December 2014)
• Enterprise Fund
Business customers 839 854
Commercial Dumpsters 1,120 1,135 • Self-Funded
Collections/perweek 2,418 2,529 • Fee and Service Level
DumpsterRecycling 54 58 • FY15 Budget Amount: $1.3M
Customers
Recycling/roll-outcustomers 165 174
Commercial Dumpster
7
Rental Customers
Slide #36 Slide #37
Revenue Expenditures
Source YTD Budget Source YTD Budget
M-F Fees $367,835 $705,855 Salaries $72,720 $159,535
Extra Pickups $8,033 $10,000 Overtime $24,476 $0
Dumpster Fee $312 $0 Fleet $117,944 $72,492
OtherItems Fuel $58,153 $53,617
Insurance Recovery $104,967 $104,967 Insurance $148,716 $192,649
Fund Balance Loan $227,481 $227,481 Capital Equipment $454,731 $455,7
Slide #38 Slide #39

[PAGE 17]
Salaries Overtime
Status: Assumed: Status: Causes:
Within Budget 5 Trucks Not in Budget Equipment Repairs
5 Drivers 5 Routes M & F $24,476 Accident
1 Mechanic 4 Routes T, W, Thur 10 weeks only 4 Drivers
1 Route Saturday Saturday Service
Slide #40 Slide #41
Overtime Overtime: Solution
ThePlan Actual 1. New Driver Hired
1 Driver 40 HrsWeek 4 Drivers 182-234 HrsWk
2. Train PT Driver from Residential
4 Drivers 160 HrsWeek During December
5 Drivers 200 HrsWeek
Forecast:
Thus 22-74 Hours
• $10,000 Remainder of Year
of Overtime Each Week
Slide #42 Slide #43
Fleet Charges Fleet Charges: Solution
Cause: Projection • All Trucks now in better condition
• Used Equipment • $183,000 Over Budget • 2008 Truck Replaced with 2013 Truck
Examples
• Blown Engine $16,000
• 2008 Truck $40,000
• Tires $36,000
Slide #44 Slide #45

[PAGE 18]
Fuel Action Plan
Fuel Budget 1. Monthly Review by CMO & Written
Budget $53,617
Report to Mayor & Council
Year to Date $58,153
2. Saturday Pickup Rate Revised
Prediction -$58,000
3. Review all rates and level of service
Cause:
• Assumed Trucks Run 6-7 Hours per day 4. Review all Routes for efficiencies
Actual:
• 10 Hours per day 5. Prepare Bid Documents
• Saturday Service
6. Other Actions
Slide #46 Slide #47
Options Bid Rates 2014
1. Loan From General Fund for FY15 WasteIndustries $6.76
2. Saturday Rate Increase in February Waste Management $5.99
$0.36 Difference
City $5.63
3. FY16 Subsidy from General Fund
4. Rebid for Privatization Rate Increase of $0.36 Benefit
5. Raise City Rate to Match Lowest Bidder Annual $45,072
March-June $15,024
Slide #48 Slide #49
Lessons Learned
1. Customer Service is not Free
2. Privatization has benefits & drawbacks
FY15 Capital Improvements Plan
3. Used equipment is an unknown
Update
4. Efficiencies are learned through experience
5. Planfor the Unknown
6. Accidents Happen
7. Best intentions are not enough
Slide #52
Slide #50

[PAGE 19]
FY15 CIP Update
FY15 CIP Update Public Safety Projects
Fire Department
FY15 CIP: 32 Projects Planning Design Construction
• 2 Public Safety Projects Fire Station #2
• 23 Public Services Projects
Police Department
• 4 Recreation and Parks Projects
Center for Public Safety
• 1 Community Programs Project
• 2 Transportation Projects
Slide #53
Slide #53 Slide #54
FY15 CIP Update FY15 CIP Update
Recreation & Parks Projects Public Services Projects
General
Planning Design Construction Planning Design Construction
Public Services Phase II B
NC 24 LejeuneTrail
Phillips Park –PhaseI
Piney Green Road Projects
Jack Amyette–Phase II Complete
NCDOTSewer Relocation Complete
Jacksonville Landing Complete
NCDOTSidewalk Installation NCDOTAgreement Executed
ONWASA/CitySewer
Complete
Infrastructure Improvements
Slide #55 Slide #56
FY15 CIP Update FY15 CIP Update
Public Services Projects Public Services Projects
Sewer Sewer
Planning Design Construction Planning Design Construction
Memorial Lift Station
Inflow& Infiltration Phase II Complete
ParkwoodRegional Lift Station
AutomatedStep Screens FY16
Western Trunk Sewer Phase I
Park &Stratford Infrastructure
BrookviewForce Main
Bell Fork Road Sewer
Barn Street Sewer
Slide #57 Slide #58

[PAGE 20]
FY15 CIP Update FY15 CIP Update
Public Services Projects Public Services Projects
Water Stormwater
Planning Design Construction Planning Design Construction
Raw WaterTransmission Mains II Complete DowntownCentral SW Phase I
Piney Green/Hwy 17Service Area Complete
Sidewalks
Zack Circle & Sophia Drive
FY13 SidewalkInstallation Complete
GreencrestWater Line
FY14/15 SidewalkInstallation
FY14 Water Line Replacement
Slide #59 Slide #60
FY15 CIP Update FY15 CIP Update
Community Projects Public Services Projects
Streets
Community Programs
Planning Design Construction Planning Design Construction
SturgeonCity Civic & StreetReclamation –Phase I Complete
Environmental Education Center
Street Reclamation –Phase II
Transportation
Transit Multi-Modal Facility
Commons Park & Ride
Slide #61 Slide #62
Pavement Serviceability Rating
Streets Assessment
(PSR)
In-House effort begins March 2010
• Established rating formula
• Developed rating form
• Began rating the streets
Slide #63

[PAGE 21]
Street Capital Projects Street Capital Projects
Prior to 2013 2013
Focus March 3, 2013 Council Workshop
• Below Average/Poor Streets (D’s) • Report of Planned Actions
 Implement lower costing alternatives
• Failed/Very Poor Streets (E’s)
 Increase proportion of Powell Bill Funds to maintain
Project Types category B & C streets
• Full Reconstruction  Decrease proportion of Powell Bill Funds on street
• Pavement Reclamation reconstruction
• Goals
Reconstruction/Reclamation Expenditures
 Address more streets
• High Compared to Preservation Type Projects
 Extend life of “B” and “C” Streets
Slide #65  Reduce number of future failed streetsSlide #66
Street Capital Projects FY13-14 Street Rehabilitation
Post-2013 Project
FY13-14 Street Rehabilitation Project Planning & Design
• Twenty-three (23) Streets • Consulted with NCDOT
 Seventeen “C” Streets • Conducted Geotechnical Investigation
 Two “D” Streets • Staff Site Visits
 Four “E” Streets  Looked for signs of base or subgrade failure
 Attempted to ascertain nature of non-failure issues
 Experienced traffic volumes & nature of truck traffic
 Checked for potential vehicle bumper strikes at
driveways
Slide #67 Slide #68
FY13-14 Street Rehabilitation FY13-14 Street Rehabilitation
Project Project
Planning & Design Outcome
• Select Method(s) of Rehabilitation for each • Milling and Pavement Overlay of 22 Streets
Street  1 Street: Incidental Milling & Pavement Overlay
 Mill and Overlay vsReclamation  11 Streets: Edge Milling & Pavement Overlay
 Reclamation was not selected for all “D” & “E” streets  7 Streets: Complete Milling & Pavement Overlay
Construction  1 Street: Edge Milling & “Beefed Up” Pavement
Overlay
• Pre-Construction Site Visits with Contractor
• Reclamation of One Street
 Identified potential constructability issues
 Indian Drive
 Adjusted scope of work where necessary
Slide #69 Slide #70

[PAGE 22]
FY13-14 Street Rehabilitation FY13-14 Street Rehabilitation
Project Project
Outcome Outcome versus Goals
• Mill & Overlay 12,899 linear feet (LF) • Work performed at “C” streets versus just “D” &
 $546,847 “E” streets
 $42.39 per LF • 12,899 LF of Mill & Overlay was performed
• Reclamation 1,420 LF  Equals 3,700+LF of street reclamation
 $209,762  3½ times more street
 $147.72 per LF
Slide #71 Slide #72
FY13-14 Street Rehabilitation
Project
Lessons Learned
• One geotechnical boring per street not enough
Intelligent Transportation System
• Limit milling depths to 1-inch where possible
Update
Slide #75
Slide #73
FY 15 Accomplishments
ITS System
87 traffic signals Preventative maintenance
200+ traffic counters
Preemption system repairs
41 cameras
Emergency repairs
9digital signs
Incident response
Fiber optic network
Operations center Optimization
Slide #76 Slide #77

[PAGE 23]
Emergency Repairs
Optimization – Gum Branch Rd
Response <15 min
Operational <1 hour Afternoon rush hour:
 17% travel time
3 knock-downs
 52% delay
Average 4-5 calls per week  62% stops
 12% fuel consumption
Slide #78 Slide #79
Optimization – Marine Blvd
Next Steps
Morning rush hour:
 24% travel time Continue optimization
 55% delay Integrate Camp Lejeune signals
 73% stops Track performance, report
 13% fuel consumption
Slide #80 Slide #81
Reduction to Schedule C
FY 15 – $179,000
FY 16 – $134,000 (projected)
25% reduction
FY16 Revenue Forecast &
Budget Planning Assumptions
Slide #84
Slide #82

[PAGE 24]
FY16 Budget Assumptions FY16 Budget Assumptions
• No increase in property tax rate Privilege License will not return
• Sales tax will increase slightly –$750,000 loss of revenue
• Powell Bill funding remains stable –Cut spending
•Positions eliminated
• No increase in Water or Sewer Rates
–New or Increased revenue sources
• No increase in Stormwater Fee
•Passports
• No increase in Residential Solid Waste Fee
–Annual subsidy from General continues
Slide #85 Slide #86
FY16 Budget Assumptions FY16 Health Care Outlook
• Health Insurance Fund history
Fuel Pricing
–FY12 $520,944
–Unleaded at $3.15 per gallon (FY15-$3.60)
–FY13 $ 47,583
•3 year average $2.6438
–FY14 $249,048
•3 year maximum $3.1520
–Diesel at $3.45 per gallon (FY15-$3.95) • Projected health care cost increase 8%
•3 year average $3.0194 • AHCA payment in FY16 $46,000
•3 year maximum $3.4225
• Wellness Initiatives
• Voluntary Benefit Improvements
Slide #87 Slide #88
FY16 Revenue Forecast
FY16 Revenue Forecast
Property Tax Sales Tax
Powell Bill: Expected to remain stable
FY14 19.4 FY13 11.8
FY14 9.6
FY15 22.5
FY15 10.3
FY16 22.6 FY16 10.5
16 18 20 22 24 0 5 10 15
In Millions Slide #89 Slide #90

[PAGE 25]
FY16 Capital Reserve FY16 Council Initiatives Fund
Council Initiatives
Committed
4¢ Established in 1998 Projects through FY15 Amount
1¢ = $ 352K FY15 Jacksonville Landing 2018 $242K
4¢ = $1,409K FY15
City Hall Renovation 2018 $359K
PublicServices & Fleet 2019 $311K
Current Uncommitted Balance about $1,150,000
Complete Fire Station #2 Rails to Trails 2022 $ 56K
Sturgeon City Sturgeon CityCEEC 2027 $ 92K
Other?
Slide #91 Slide #92
Schedule
Dec–Feb Staff Budget Preparation
January 20 Budget Introduction
February CIPDraft
$750,000 Reduction Goal
March Management FinalizesBudget
Status
April –June Budget Workshops
May Budget Public Hearing
May or June Adopt FY16 Budget
Slide #95
Slide #93
Why? Efforts To Date
• Analyzed Vacant & Currently Filled
Positions
• Conducted 3E’s Studies
• Researched Fee Potential
• Accepted Opportunities
Loss of Privilege License
by General Assembly
Slide #96 Slide #97

[PAGE 26]
Positions Three E’s Studies
6 Vacant Positions • Meter Reading
One Retrained & Filled –No Change
Savings $400,000 • Copiers & Printers
–Some Savings
• Cell Phone Adjustments
–Some Savings
Savings $
Slide #98 Slide #99
Fee Potential Opportunities
HazMat Response Passport Application Acceptance Agency
–State Permitted –Approved by US State DeptJan 14, 2015
–Filed by Fire and Emergency Services –Use of Current Staff
–Paid by Insurance Companies –$25 per transaction fee
Savings $40-50,000 per year Benefit $40-50,000 per year
Slide #100 Slide #101
Summary Next Steps
Positions $400,000 1. Track Fees & Opportunities
3E’s $20,000 2. Analyze Positions
Fees $40,000 3. New 3E’s
Opportunity $40,000
Thus Far $500,000
Slide #102 Slide #103