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HomeMy WebLinkAbout1967-12-18 Minutesi 224 T. J. Keith, News Rep. N.W.'Ark Times a1sol present. he Board of Directors of the City of Fayetteville, Arkansas, met in regular session on Monday, December U. 1967, n the Directors Room in the City Administration Building at 7:30 P. M. resent: City Manager Gerald G. Fox, City Clerk George J. Davis,'City Attorney-Hugh•Kincaid, and Directors: erlin, Swartz, McFerran, Melton, Christie, Trumbo, and Dunn. bsent: None. The minutes of the regular meeting on Monday, December 4, 1967, a copy of which had previously been to each of the Directors, were approved as written. r The City Manager 3resented an Administrative Memo No. 86 which was spread on the minutes and reads as follows: I - ADMINISTRATIVE MEMO N0. 86 REPORT ON EXTENDED AREA SERVICE TELEPHONE SERVICE WITH REFERENCE TO RESOLUTION N0, 17-67 The City Board of Directors on November 20, 1967, approved Resolution 17-67 which, "Requested Public Service Commission Approval of Rates" for extended area telephone service. The inclusion of the rates in the Resolution was discussed at that time, with the City Manager, City Attorney, and Telephone Company Representative, all indicating that the rates were merely proposed and that the Public Service Commission would investigate and actually approve the rates, as the State's Rate Making Body. Quoting from my letter of November 21, 19672 submitting copies of the Resolution to Robert Sells, the local Telephone Manager: "The primary concern of the Board,and the citizens of Fayetteville, apparently was over the rate schedule which we were asked to approve in this Resolution with little information made available in order to make such a judgment. Further, the City Board is not the rate making body for the State and it seems to me, therefore, that it sbould not be asked to make a judgment on rates. It is my feeling that the Board, in approving this Resolution, was approving the "Idea" of extended area service, and not specifically the ra assbeing in the best inteaests of Northwest Arkansas Development." Since November 20, statements have been made publicly.and to me, the City Attorney and to the Board that the effect of the resolution was that the Board was actually setting rates for extended area service. The authority used was Arkansas Statutes Ann. 738208. This statute does state in part,"Every city and town shall have jurisdiction, acting by ordinance or resolution of its council and commission(a) to determine the quality and character of, and the rates for, each kind of product or service to be furnished or rendered by any public utility within said city, . . ." The City Attorney and I were of the opinion, though, that the filing for rates is under another statute, Arkansas Statutes Ann. 73-217, which requires a filing by Southwestern Bell of proposed rates and a proceeding of investigation and public hearing by the Public Service Commission to determine adequacy of proposed rates. The City Board on December 4 requested the City Attorney and myself to investigate this matter on the interpretation of the resolution in relation to the establishment of a rate. In part, Arkansas Statutes Ann. 73-217reads: "(a) Unless the Commission otherwise orders, no public utility shall make any change in any rate now in force or which shall hereafter have been duly established under this act, except after 30 days notice to the Commission, which shall plainly state the changes proposed to be made in the rates then in force, and the time when the changed rates will go into effect. All proposed changes shall be shown by filing new schedules. . . . .(b) Whenever there is filed withl• the Commission by any public utility any schedule stating new rates, the Commission may, either on complaint or upon its own motion, upon reasonable notice, enter upon an investigation concerning the lawfulness of such rate; . . 1 0 . .(c) If after such investigation'and-hearinglthereon, the department finds such rates to be unjust, unreasonable it shall determine and fix the just and reasonable rates to be charged . . . . .". Southwestern Bell representatives were contracted for their interpretation of the effects and procedures for rate setting in this matter. Quoting from a December 8 letter from Don King, legal counsel for Southwestern Bell, to Eity Attorney Kincaid: "The resolution, as I interpret it, does not set rates under Section 73-208. It expresses the opinion of the Board of Directors . to the effect that there i need for EAS service between Springdale and Fayetteville. It also sets forth the rates proposed to be charged by Southwestern Bell for such service. Finally, it requests, in its title and text, the Public Service Commission to approve rates for this service. On December.6, 1967 Southwestern Bell transmitted to the Commission a preliminary copy of the 20th Revised Sheet of the Fayetteville local exchange tariff. This tariff revision sets forth proposed rates for EAS service to go into effect in 1969 when such servic is placed In operation. Yhis filing, in my opinion, constitutes a notice of a proposed rate change under Section 73-217 of Arkansas Statutes Annotated." With Southwestern Bell apparently believing the same as the City Attorney and myself, we proceeded to write the Public Service Commission in order to obtain their interpretation. On December 9 we wrote Lewis Robinson, Chairman of the Public Service Commission, requesting answers to three points: (1) To inquire whether -proceedings will be conducted in accordance with Arkansas Statutes Ann. 73-217 permittine investigation and hearing by the Commission or whether the resolution will,be regarded as an exercise of jurisdiction under Ark. Stat. Ann. 73-208. (2) Assuming it is proper19F..a 73-217 procedure and that the resolution of the city is not construe as a 73-208 determination, will the Commission be able to accept the explanation of the City's intention in adopting the Resolution as outlined in the first paragraph of this memo or will the Commission feel bound to accord the schedule of rates greater weight? If latter, City will consider amending resolution. (3) To urge a hearing conducged by the Commission in Fayetteville on rate schedules. By letter from Lewis M Robinson dated December 11, 1967, the following answer to the three question was received. "The questions posed in your letter of December 9 are questions that should be presented to t Commission if and when a hearing is had in the matter." This, of course, completely avoids answering any of the questions at this time. I am not certain why the Public Service Commission has taken the pos of not even informing the interested parties under which statute the rate filing will be considered. So it is not clear why the Commission has taken the attitude of completely avoiding the issue. A course of action by the City Board is also not clear. Southwestern Bell, the City Attorney and I stil believe that the filing is under Ark. Stat. Ann. 73-217 and not Ark. Stat 73-208 and that, therefore, t. rates as included in Resolution 17-67 should have no effect on the investigation by the Public Service Commission in approving a "just and reasonable"rate. As we cannot apparently at this time receive an answer from them as to under which statute they will consider the rate filing, it would probably be sad at this time to rescind resolution 17-67 and consider replacing it with a resolution merely approving Extended Area Service, requesting the Public Service Commission to investigate the proposed rate filing and hold hepublic hearing on the matter. Such will be prepared for your consideration on Monday. It is still my opinion that the Board followed the proper course as we interpreted it to be from statute but because of Public Service Commission refusal to indicate filing statute to be followed, the recommen course should be considered. 1 No. 20-67 & J.F.Pal to Board Reappoint Warren Seg Board of Ho Appeals. 225 The City Manager introduced and, at the;request of the Mayor, read a proposed resolution in its entire Entitled,"A RESOLUTION REQUESTING THE ARKANSAS PUBLIC SERVICE COMMISSION TO APPROVE EXTENDED AREA SERVICE FOR FAYETTEVILLE, TO REQUEST THAT ANY RATE CHANGES FOUND ECESSARY FOR.SUCH SERVICE BE FILED WITH THE PUBLIC SERVICE COMMISSION; TO REQUEST THE PUBLIC SERVICE COMMISSION TO CONDUCT RATE INVESTI= CATIONS AND HEARINGS, TO RESCIND RESOLUTION N0, 17-679 AND FOR OTHER PURPOSES." Dfrector Dunn moved that the Resolution be adopted. The motion was seconded by Director Kerlin. After a long discussion, Director Dunn moved, seconded by Director Kerlin, to call the question and uc roll call, the following vote was recorded: "Aye". Kerlin, and Dunn. "Nay", Swartz, McFerran, Melton, Christie, and Trumbo. The motion to call the'question.was defeated by a vote of 2 "Ayes" and 5 "Nays". Whereupon, the Mayor declared the Resolution open for discussion. After a long discussion, the following vote was recorded for thepassage of the Resolution: "Aye", Kerli Melton, Trumbo, and Dunn. "Nay", Swartz,.MeFerran, and Christie. There being four "Ayes" and only three "Nays", the Mayor declared the Resolution adopted. RESOLUTION N0, 20-67 A RESOLUTION REQUESTING THE ARKANSAS PUBLIC SERVICE COMMISSION TO APPROVE EXTENDED AREA SERVICE FOR FAYETTEVILLE, TO REQUEST THAT ANY RATE CHANGES FOUND NECESSARY FOR SUCH SERVICE BE FILED WITH THE PUBLIC SERVICE COMMISSION, TO REQUEST THE PUBLIC SERVICE COMMISSION 70 CONDUCT RATE INVESTIGATIONS AND HEARINGS, TO RESCIND RESOLUTION NO. 1747, AND FOR OTHER PURPOSES. WHEREAS, there is a distinct community of interest between Fayetteville and Springdale, Arkansas; FM WHEREAS, there is a need for direct calling between all customers in Fayetteville and Springdale without payment of long distant charges (such service being commonly referred to as extended area service); and WHEREAS, Southwestern Bell Telephone Company is willing,as soon as feasible to provide such extended area service; and WHEREAS, extended area service would provide increased number of telephones available for direct calling thereby .increasing the value of telephone service of Fayetteville customers; and . WHEREAS, any change in the rates now charged Fayetteville customers to institute extended area service must be filed with the Arkansas Public Service Commission; and WHEREAS, Resolution 17-67, adopted on November 20, 1967, by the Board of Directors, supporting extended area service, has produced some misunderstanding of the Noard's Intention, and as same has been filed with the Public Service Commission with the proposed rates changes for said service, it is desirable that said Resolution be rescinded in order to clarify the Board's intention. NOW, THEREFORE, BE IT RESOLVED BY THE BOARD OF DIRECTORS OF THE CITY OF FAYETTEVILLE, ARKANSAS: That, the Arkansas Public Service Commission be requested to permit Southwestern Bell Telephone Company to provide extended area service between Fayetteville and Springdale ; and THAT, any change in the rates now charged Fayetteville telephone customers because of extended area service be filed with the Arkansas Public Service Commission under Arkansas Statutes Annotated Section 73-217; and THAT, the Arkansas Public Service Commission be and it is hereby requested to investigate and hold hearings under Section 73-217, supra, on such rate changes as are nor or hereafter filed with that agency to determine that they are just and reasonable; and it is further requested that such hearings be held in the City of Fayetteville, if possible, as a convenience to such persons as may desire to be heard on the matter, and THAT, after such investigation and hearings that rates so determined as -just and reasonable by the Arkansas Public Service Commission be permitted to become effective upon provision of extended area service between Fayetteville and Springdale; and THAT, Resolution No. 17-67 adopted on November 20, 1967 be and it is hereby rescinded in total; and THAT the City Clerk is hereby directed to furnish copies of the within Resolution to the Arkansas Public Service Commission and to Southwestern Bell Telephone Company, Inc. PASSED AND APPROVED AND ADOPTED ON THIS the 16th day of December, 1967. APPROVED: ATTEST: DON TRUMBO, MAYOR .GEORG J. DKVIS, CITY CLERK Robinson The City Manager reported that the terms of Messrs. Fred Robinson and J. F. Palmer, as members of the Adjust- Board of Adjustment, would expire on January 1, 1968, and he recommended that they be reappointed as went, follows: J. F. Palmer for a four year term expiring on January 1, 1972. Fred Robinson for a five " It If . If 1, 1973. Director Melton moved to accept the recommendation of the City Manager and reappoint Fred Robinson and J..F. Palmer to the Board of Adjustment as recommended above. The motion was seconded by Director Kerlin and passed unanimously. The City Manager reported that the term of Warren Segraves, as a member of the Board of Housing Appeals to would expire on January u, 1968, and he recommended that Mr. Segraves be reappointed for a five year term which will expire on January 1, 1973. Director Melton moved to accept the recommendation of the City Manager and reappoint Warren Segraves to the Board of Housing Appeals for a five year term to expire January 1, 1973. The motion was seconded by Director McFerran and passed unanimously. 226 Reappoint The City Manager reported that the term of Mr. Alsey Holland, as one of the four appointments of the City Alsey to the eleven member Hospital Board (the other seven being appointed by the Churches), would expire on Holland to January 1, 1968, and he and Mr. Ken Sanders, Hospital Administrator, recommended that Me. Holland be City reappointed for another ten year term to expire on January 1, 1978. Hospital Director McFerran moved to accept the recommendation and reappoint Alsey Holland for a ten year term to Board. the City Hospital Board, said term expiring on January 1, 1978. The motion was seconded by Director Dunn and passed unanimously. The City Manager reported .that the terms of .Roy Clinton, Mort Gitelman, and Henry Shreve, as members of Appointments the Planning Commission would expire on January 1, 1968, and he recommended that Roy Clinton and Mort to Planning' Gitelman be reappointed for terms to expire on January 1, 1974. He further recommended that Millard Commission. Goff be appointed Vice Henry Shreve to a six year term, also expiring on January 1, 1974. ctor Kerlin stated that he wished to nominate Mr. -Walter Brown as.one of the three members of the .ning Commission. re any further action was taken, Director Melton moved to accept the recommendation of the City ger and appoint Roy Clinton, Mort Gitelman and Millard Goff as members of the Planning Commission. motion was seconded by Director Christie and upon roll call, the following vote was recorded: it, Melton, Christie, and Dunn. "Nay", Kerlin, Swartz, McFerran, and Trumbo. e being threeMyed"and four"Nays; the motion was defeated for lack of a majority vote. Director Melton then moved to reappoint Roy Clinton as a member of the Planning Commission for a six year Perm, expiring January 1, 1974. Clinton The motion was seconded by Director McFerrandand passed unanimously. ector Dunn then moved to appoint Millard Goff as a member of the Planning Commission for a six year expiring January 1, 1974. motion was seconded by Director Christie and upon roll'call, the following vote was recorded: a", Melton, Christie, and Dunn. "Nay", Kerlin, Swartz, McFerran, and Trumboo re being three "Ayes" and four "Nays", the motion was defeated. Director Kerlin then moved to appoint Walter Bron as a member of the Planning Commission for a six year Brown term, expiring January 1, 1974. The motion was seconded by Director Swartz. Opon roll call, the following vote was recorded: "Ave," Kerlin, Swartz, McFerran ,end Trumbo. "Nay", Melton, Christie, and Dunn. There being four "Ayes" and three "Nave", the Mayor declared the motion passed. Director Trumbo then moved to appoint Mort Gitelman to the Planning Commission for a six year term Gitelman expiring January 1, 1974. The Motion iaas seconded by Director Kerlin and passed unanimously. Appointments The City Manager reported that the City has three appointments to the Northwest Arkansas Regional Airport to R E G Authority and he recommended that William Moeton, Dr. John Kane and a representative of the city goverame: Airport Auth. be appointed to this authority. Director Christie Moved to appoint City Manager, Gerald Fox, as a member of the Northwest Arkansas Gerald Fox Regional Airport Authority as the representative of the city government. The motion was seconded by Director McFerran and passed unanimously. Director Christie then moved to appoint Dr. John Kane as a member of the Northwest Arkansas Regional., Kane Authority. The motion was seconded by Director Dunn and passed unanimously . Director Christie then moved to appoint William Morton as a member of the Northwest Arkansas Regional am Morton Airport Authority. The motion was seconded by Director Kerlin and passed unanimously. McFerran moved to authorize.the City Manager to advertise for bids to be received on Friday, 26, 1967 for the following: Bids ed on A. Two 22;000:4VWtTruck Chassis w/trade B. Two 459000 GVW Truck Chassis w/trade C. Two 3/4 Ton Pick-up Trucks w/ trade ise for D. Five Police Sedans w/ trade E. Two Tractors and Mounted Loader Diggers w/trade F. Two 18-12 Cubic Yard Dump Beds G. Two 1/2 Ton Pick-up Trucks The motion was seconded by Director Swartz and passed unanimously. The City Manager reported that plans for the final phase of Sanitary Sewer Improvements have now been oved completed and submitted to state and federal authorities. There have been some changes in this phase s for of lift stations, force mains, and interceptopas constructtonfrom the original plans. The entire system e III was reviewed by Consulting Engineers, John E. Mahaffey. tary SewerThe City Manager recommended that the plans be approved and authority be given to set a bid opening rovements date upon receipt of approval from state and federal authorities. Director Kerlin moved to approve the plans for Phase III of the Sanitary Sewer Improvements, as outlined by Consulting Engineer, John E Mahaffey, and that the City Manager be and he is hereby authorized to set a bid opening date upon receipt of approval from State and Federal Authorities. The motion was seconded by Director Melton and passed unanimously. ized Director McFerran moved that the City Clerk be and he is hereby'authorized.to execute a Release Deed for se Deed that portion of Red Arrow Not. Subdivision listed as follows of Red No. Two. Lots 12 2, 3, 4, 5,62 72.8, 9, 10, 11, 123 13, 14, 15, 16, 17, and 18, of Block 1; Lots 1, 2, 3, 4, 51 6, 71 8, 9 and 26 of Blocks 2; and Lots 1, 2, 3, 4, 5 6,7.8, and 9 of Block 3; all of said lots and blocks being in Red Arrow Number Two Subdivision to the City of Fayetteville,.Arkansas, as per plat of said subdivision recorded in the office of the Circuit Clerk and Ex -Officio Recorder of Washington County, Arkansas. The motion was seconded by Director. Melton and passed unanimously. There being no futther business, Director McFerran moved to adjourn. The motion was seconded by Directoor and passed unanimously, whereupon the Mayor declared the meeting adjourned. ATTEST: APPROVED: Lyk r EOR J6/DAVIS, CITY CLERK DON TRUMBO, MAYOR 1 1 1