HomeMy WebLinkAbout1970-09-14 Minutes1
MINUTES OF A SPECIAL MEETING OF THE BOARD OF DIRECTORS
September 14, 1970
The Board of Directors of the City of Fayetteville, Arkansas, met in special
session on September 14, 1970, in the Directors Room in the City Administration
Building at 7:30 p.m.
Present: City Manager Wesley M. Howe, City Clerk Marilyn Moore, City Attorney
David Malone, and Directors Jones, Swartz, McFerran, Melton, Lancaster, and
Dunn.
Absent at Roll Call but later entering: Director Starr.
Absent: None.
Representatives of the Press were present.
The Mayor reported that the purpose of the meeting was to discuss the new 1-147
water and sewer rates with Campbell Soup, the University of Arkansas, and any
other concernedcitizen of the City of Fayetteville; and the transaction of
such other business as may properly come before the Board of Directors.
The Mayor reported that all Directors had been notified of the special meeting
in person at the last regular meeting on September 9, 1970.
Director Starr was late entering the meeting, but has waived action on
Resolution No. 55-70,
WAIVER OF ACTION ON RESOLUTION N0, 55-70
FAYETTEVILLE CITY BOARD OF DIRECTORS 2-147
Comes now the undersigned, being a duly elected, qualified and acting member
' of the Board of Directors of the City of Fayetteville, Arkansas, and speci-
fically waives action on Resolution No. 55-70 of the Fayetteville Board
of Directors at a special meeting held in the Directors Room of he City
Administration Building, Fayetteville, Arkansas, at-,77:30'cl on
September 14, 1970. j
The City Attorney introduced, and at the request of the Mayor, read a proposed 3-147
resolution in its entirety concerning,the intent of the Board of Directors ,
in connection with Ordinances to Expr;(1ss the Policies of the City of Fayetteville,
Arkansas Regarding and Concerning the Continued Development and Maintenance of
the Fayetteville Water and Sewer Systems and Resolving that the IMPLEMENTATION
DATE FOR THE DISCONTINUANCE OF WATER AND SEWER REIMBURSEMENTS TO SUBDIVIDERS
BE AND THE SAME IS HEREBY DESIGNATED AS SEPTEMBER 9, 1970 AND FURTHER RESOLVING
THAT THE CITY MANAGER OR HIS DULY AUTHORIZED REPRESENTATIVE BE AND HE HEREBY IS
AUTHORIZED TO DISCONTINUE SAID REIMBURSEMENTS FOR SUBDIVISIONS NOT COMPLETED
PRIOR TO SAID IMPLEMENTATION DATE AND FURTHER RESOLVING THAT SAID IMPLEMENTATION
DATE BE WAIVED BY THE CITY MANAGER TO PERMIT SAID REIMBURSEMENTS FOR SUBDIVISIONS
SUBSTANTIALLY COMPLETE.
Director McFerran moved that the Resolution be adopted.
The motion was seconded by Director Swartz, and upon roll call the following
vote was recorded: "Aye" Jones, Swartz, McFerran, Melton, Lancaster, and
Dunn.
"Nay" none. There being six "Ayes" and no "Nays", the Mayor declared the
Resolution adopted.
* Resolution No. 55-70 is on page 21 of Ordinance and Resolution Book 2.
147
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Director Starr entered at this time.
1-148 The City Manager presented a statement of operations for the Water and Sewer
Department ending July 31, 1970 showing a deficit of ($20,006.65) on the
cash basis of accounting and a deficit of ($102,480.27) on the accrual basis
of accounting. The report included an Water and Sewer 0 6 M Estimated Fund
Balance of ($10,725.00) on January 1, 1971 if the proposed 100% increase in
water and sewer rates from Campbell Soup and the University of Arkansas were
accepted. With the new water and sewer rates in effect, the Water and Sewer
0 6 M. Estimated Fund Balance shows a balance on January 1, 1971 of $47,275.00.
2-148 The City Manager presented a questionaire which the Board proposed to send
to every water and sewer customer in the City of Fayetteville. The questionaire
is as follows:
TO THE WATER CUSTOMERS OF FAYETTEVILLE
The City of Fayetteville Board of Directors needs, -your opinion.
Recently the City
Board raised your
water and
sewer
rates.
The rates
were raised because the
Water and Sewer
Department
must
have more
money.
Here are examples of how the new rates affect you.
Old Rate New Rate
Water $4.65 $5.50 '
Sewer - Older Parts of City 2.33 6.05
Sewer - Newer Parts of City 4.65 6.05
As a commercial customer using 50,000 gallons a month:
Old Rate New Rate
Water and Sewer $52.63 $78.30
The Board decided to get this money by raising water and sewer rates on a
"cost of service' basis. "Cost of service" means that each class of customers
- residential, commercial, industrial - pays the cost of serving its class and
pays its share of the costs of expanding and improving the water and sewer
systems.
There are other ways to increase rates or not increase rates so much.
Please mark your choice to show how you feel about these questions.
YES NO 1. I favor Cost of Service rates as passed by the City Board.
a. If your answer to the above is "No", which class of
customer should pay more than its cost?
( ) Residential ( ) Commercial ( ) Industrial and
Institutional
YES NO 2. I favor selling the Lake Fayetteville property for private
development.
This would reduce all water and sewer rates by 2 percent
and make it possible to extend water and sewer lines to un-
served areas sooner, but would mean losing this property for
public recreation.
148
3
YES NO 3. I favor a four (4) mill property tax to reduce water and
sewer rates by about 4 percent.
This would increase your total property taxes by 6 percent.
Mayor Melton reported that radio spots had been prepared to clarify the
questionaire and asked for suggestions to improve it.
A representative from the University of Arkansas objected to the content of
the questionaire.
Suggestions were presented to the Board of Directors for improvement of the
questionaire, but action was deferred.
Citizens present stated that the average citizen does not have adequate
background of facts concerning the rate increases and is ill prepared to make
a meaningful decision. The Board members are elected by the citizens to
study and determine what should be done, therefore, they would be shirking
their duty and taking a redundant action to request the citizens to determine
allocation of rate increases.
The University of Arkansas representative reported that the University feels 1-149
that water and sewer rates should be increased and offered to increase their
rates by 100% over the old rates with further adjustments made over a period
of years. In the meantime, he requested time to conduct a study. The repre-
sentative reported that the University's budget was already prepared for the
coming year and that they could not pay the increased rates. He asked the Board
' of Directors to reconsider their position on the rate increase and re-emphasized
that the University of Arkansas did not have the money at this time to pay
the increased water and sewer rates.
Director Dunn requested a report on what the effect of a 150% increase in
water and sewer rates to the large customers would have on a Water and Sewer
0 & M Estimated Fund Balance.
There being no further business, Director Starr moved to adjourn. The motion
was seconded by Director Lancaster and passed unanimously, whereupon the Mayor
declared the meeting adjourned.
APPROVED:6 Q �
C. G. MELTON, JR., MAYOR
ATTEST: `% GG idC�� ,`% Orf%z
MARILYN MOOR CITY CLERK "V
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