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HomeMy WebLinkAbout1974-11-05 Minutes176 MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS November 5, 1974 The Board of Directors of the City of Fayetteville, Arkansas met in a regular session on Tuesday, November 5, 1974, at 7:30 p.m. in the Director's Room of the City Administration Building. Present: City Manager Donald L. Grimes; Administrative Assistant David McWethy, City Attorney Jim McCord; Darlene Westbrook, City Clerk, and Directors Orton, Purdy, Noland, Utley, Murray, Carlson, and Stanton. Absent: None Others Present: Mr. Herschel Friday, Bond Counsel; representatives of the news media, and members of the audience. CALL TO ORDER AND APPROVAL OF MINUTES 176.1 After the call to order by Mayor Russell T. Purdy and a brief moment of respectful silence, the Mayor asked if there be any corrections or additions to the minutes of the October 15, 1974 meeting. Copies of the minutes had been distributed to each Board member prior to the meeting. 176.2 Director Carlson requested the deletion of the word "delivered" appear- ing in paragraph 175.1 and that the word "addressed" be inserted. The word "south" appearing in paragraph 173.4 was requested by Carlson to be deleted and the phrase "north between the proposed building and the courthouse..." be inserted. 176.3 The City Attorney requested paragraph 173.7 be amended to read: "...he could submit the request to rezone the property C-3 without having to wait one year." City Attorney McCord also requested that the last sentence of the same paragraph be deleted. 176.4 There being no further amendments necessary, Mayor Purdy declared the minutes approved as amended. ORDINANCE AUTHORIZING ISSUANCE OF INDUSTRIAL DEVELOPMENT REVENUE BONDS (Baldwin Piano and Organ Company) 176.5 The proposed ordinance, which would authorize the issuance of $2,000,000 in Act 9 revenue bonds for the D. H. Baldwin Piano and Organ plant expansion, was left on third reading at the October 15, 1974 meeting so that Mr. Herschel Friday, bond counsel, could be present to answer ques- tions the Board members had pertaining to the issue. 176.6 At the October 15, 1974 meeting, Director Carlson raised several ques- tions concerning some aspects of the proposed trust indenture and lease agreement and had enumerated items of the documents which she felt should be amended in a memo which was forwarded to Mr. Friday for his consideration. City Attorney McCord said that some of the changes suggested by Carlson needed to be adopted but that most of the suggested changes, though acceptable, were not necessary. 176 1 1 177. 1 The floor was then yielded to Mr. Friday who explained the documents of 177.1 the bond issue and enumerated some typographical errors that could be corrected without formal amendments being necessary He noted that attorneys for the Baldwin Company had examined the documents thoroughly and had ex- pressed their approval. He then explained the two guaranty agreements by which the D. H. Baldwin Company guarantees performance by its subsidiary under the lease agreement and by which the parent company guaranteed to the trustee the payment of the bonds issued to its subsidiary. The separate agreement stipulating the payments in lieu.of taxes would, Mr. Friday, assured, be signed by the local company and by the parent company. He said the separate agreement would provide the City with a contractually enforce- able obligation of the two companies to make the payments. In.regard to the pledge of revenues from the project, Mr. Friday said 177.2 that even though the documents provided that only revenue from the project could be pledged, the City was not prohibited from utilizing other revenues if it chose to do so. Such permissive language, Mr. Friday felt, should be retained and not deleted as Director Carlson suggested since the City would be permitted to use other funds for,the benefit of the project should an emergency arise. Mr. Friday then enumerated Carlson's suggestions and gave reasons why each suggestion should or should not be adopted. Addressing the subject of additional rent payments, Director Carlson 177.3 said the additional rent provision seemed to cover only the trustee's charges and expenses but that the provision should also include those expenses which the City should be reimbursed. It was her opinion that notice of expenses to the City should be forwarded to the Baldwin Company and the trustee for reimbursement. Director Carlson said that it was of, prime importance that the 177.4 documents represent the viewpoint of the City.Iand .t1ie.voter(s'..faiph. She felt it important that the payments in lieu of taxes and any expenses in- curred by the City should be clearly stated in the documents as obligations of the lessee should the City ever be involved in a court suit pertaining to the bond issue. She expressed her concern that future city personnel might mi5'consture the • intended extent of the City's involvement and might involve the City on a larger scale unless the documents specified the extent of the City's involvement. Director Carlson said she would prefer to see the separate agreement for payment in lieu of taxes incorporated into the main docu- ments and that the obligation of the lessee to assume expenses of the City should be clarified. Director Carlson was of the opinion that payments in lieu of taxes should be incorporated into the "additional rents" clause and emphasized the differences between additional and basic rents, and their relationship to conditions of default. In addressing the Board, Mr. Friday said that he did not deem it 177.5 necessary for the City to be involved in the actual construction but that the involvement of the City's appointed representative with some administrative details would be practical. In answer to a question from Director Orton, the City Attorney was 177.6 of the opinion that the City was adequately protected under the provisions of the documents and that the reimbursement of expenses incurred by the City could be recouped. Director Murray then motioned to place the ordinance iiefore the Board for its vote ,with the ivnde!s'anding-that payments'zn lieu of taxes would be assured by a separate instrument, and that reimbursement of all city expen- ditures would be insured in this instrument. Director Orton seconded the motion. 177 178 178.1 In further discussion and in answer to a question from Director Noland, City Attorney McCord said that he did not feel that the docu- ments breeched the voter's faith. He said there was no requirement for the City to use funds other than those received from the project but that the City would be permitted to do so if necessary. 178.2 Director Carlson objected to the permissive language which would allow the City to spend other revenues and believed that the collection of the debt,in event of Baldwin's default,should be left to the bondholder. She said that the voters were informed at the time of the referendum approving the bond issue that only revenues from the project could be used for the payment of Baldwin's debt. 178.3 Director Stanton disagreed with Carlson's statements by stating that the voters were informed that the City would not pledge other revenues and not that the City could not make expenditures from other funds. It was his opinion that the City should not bind itself to a point where it would not be able to pay emergency expenses from other funds. 178.4 Director Noland cautioned that the Board should not make a decision that would hinder the actions of future Boards. He believed that a decision regarding the expenditure of other funds in behalf of the project be made at the time such a decision is necessary. 178.5 The Board objected to a suggestion by Director Carlson that a state- ment be included in the documents which would require that the question of expenditures from other funds for the project be submitted to the voters for their approval. 178.6 Mayor Purdy then called for a vote on the motion made by Director Murray and seconded by Director Orton to place the ordinance before the Board for its vote. In roll call vote of the Board the motion passed unanimously. Mayor Purdy then asked if the ordinance should pass and the recorded vote was seven "Ayes" and no "Nays". The Mayor declared the ordinance passed. Director Orton then motioned to adopt the emergency clause of the ordinance. The motion, seconded by Director Murray, was passed unanimously in roll call vote of the Board ORDINANCE NO. 2059 APPEARS ON PAGE 206-210 OF ORDINANCE 8 RESOLUTION BOOK IV ORDINANCE AUTHORIZING LEASE AND AGREEMENT BETWEEN THE CITY AND BALDWIN PIANO COMPANY 178.7 The proposed ordinance, read for the first time by the City Attorney, would authorize the Mayor and City Clerk to execute a lease and agreement between the City and the Baldwin Piano Company in conjunction with the issuance of revenue bonds for'the Baldwin Piano and Organ Company plant expansion. 178.8 Director Murray motioned that the rules be suspended and the ordi- nance placed on second reading. The motion, seconded by Director Orton, was passed unanimously in roll call vote of the Board. The second read- ing completed, Director Murray motioned to further suspend the rules and place the ordinance on third and final reading. The motion was seconded by Director Orton and was passed unanimously by the Board. The City Attorney then read the ordinance for the third and final time. There being no discussion, Mayor Purdy asked if the ordinance should pass. 178 1 1 The recorded roll'call vote of the Board was seven "Ayes" and no "Nays". The Mayor declared the ordinance passed. Director Orton then moved to adopt the emergency clause of the ordinance and the motion was seconded by Director Murray. In roll call vote of the Board the motion passed unanimously. . ORDINANCE NO. 2060 APPEARS ON PAGE 211-212 OF ORDINANCE & RESOLUTION BOOK IV Director Carlson then motioned that the question of expending other City revenues to pay for any of the revenue bonds must be placed before the people for their vote and approval. Director Stanton, who did not think the current board should take any action that might bind future boards, reminded Director Carlson that in case of an emergency there would not be sufficient time in which to call a special election. Following further discussion, Director Utley seconded the motion. In roll call vote of the Board, with six members present (Director Murray.was absent for the remainder of the meeting), five "Nays" and one "Aye", cast by Director Carlson, was recorded. Mayor Purdy declared the motion failed. RESOLUTION AUTHORIZING EXPENDITURES OF FUNDS FOR OLD POST OFFICE RENOVATION City Manager Grimes requested that the Board table the resolution in view of the recent court ruling which enjoined the City from collecting the five mills "voluntary" tax. The ruling, he stated, resulted in a significant loss of revenues. He cited future financial obligations of the City and stated that he did not think the resolution to commit funds should be considered until the lost revenues could be replaced. Mayor Purdy clarified that the City had not yet acquired the Old Post Office, but that the resolution committing funds was one of the steps required by the Housing Authority for acquisition. He assured the audience that the action to table the resolution would not "kill" the City's plans to acquire the Old Post Office. During discussion, Director Carlson stated that a one mill tax could be assessed if the proposed tax received a favorable vote of the citizens, and, that such a tax would be constitutionally justified since the revenues from the tax would be used to provide space for a city hall. Director Stanton then made a motion to table the proposed resolution _,and Director Utley seconded the motion. In roll call vote of the Board, with one member absent, six "Ayes" and no "Nays" were recorded. Mayor Purdy declared the motion passed and the resolution tabled. ORDINANCE APPROVING LARGE SCALE DEVELOPMENT PLAN - Fayett.ev itetPublic.Schools The proposed ordinance, read for the first time by the City Attorney, would approve the large scale development plan of the Fayetteville Public Schools for the construction of a library at Asbell School on North Sang Avenue. The proposed ordinance would also accept and confirm the dedica- tion of street right -or -way and/or utility easements. Director Utley motioned that rules be suspended and the ordinance placed on second reading. The motion was seconded by Director Carlson and in roll call vote of the Board the motion was passed unanimously. 179 179 179.1 179.2 179.3 179.4 179.5 179.6 179.7 179.8 179.9 180 The City Attorney read the ordinance for the second time following which Director Noland motioned to further suspend the rules and place the ordi- nance on third and final reading. The motion, seconded by Director Utley, was passed in a unanimous roll call vote of the Board. The ordinance was then read for the third and final time. 180.1 There being no discussion, Mayor Purdy asked if the ordinance should pass. Upon roll call vote of the Board, with one member absent, the recorded vote was six "Ayes" and no "Nays". Mayor Purdy declared the ordinance passed. ORDINANCE NO. 2061 APPEARS ON PAGE 213 OF ORDINANCE F, RESOLUTION BOOK IV ORDINANCE APPROVING LARGE SCALE DEVELOPMENT PLAN - City of Fayetteville 180.2 The proposed ordinance, read for the first time by the City Attorney, would approve the large scale development plan of the City of Fayetteville for the installation of a metal storage building at the Water and Sewer Operations Center on Cato Springs Road. City Manager Grimes reported that the City would reserve five feet of right-of-way for street purposes. 180.3 Director Noland motioned to suspend the rules and place the ordinance on second reading. The motion, seconded by Director Stanton,passed unani- mously in roll call vote of the Board. Following the second reading, Director Stanton motioned to further suspend the rules and place the ordinance on third and final reading. The motion was seconded by Director Noland and was passed unanimously by the Board. There being no discussion following the third reading, Mayor Purdy asked if the ordinance should pass. In roll call vote of the Board, with one member absent, the re- corded vote was six "Ayes" and no "Nays". The Mayor declared the ordi- nance passed. ORDINANCE NO. 2062 APPEARS ON PAGE 214 OF ORDINANCE & RESOLUTION BOOK IV 180.4 City Attorney McCord then read an ordinance which would reserve five feet of property for street purposes in conjunction with the large scale development plan at the City's Water and Sewer Operations Center. 180.5 Director Noland motioned that the rules be suspended and the ordi- nance placed on second reading. The motion was seconded by Director Orton and was passed unanimously by the Board. Following the second read- ing, Director Orton motioned to further suspend the rules and place the ordinance on third and final reading. The motion, seconded by Director Stanton, passed in a unanimous vote of the Board. There beingno dis- cussion, the Mayor asked if the ordinance should pass. With one member absent, the roll call vote of the Board was six "Ayes" and no "Nays". Mayor Purdy declared the ordinance passed. ORDINANCE NO. 2063 APPEARS ON PAGE 215 OF ORDINANCE * RESOLUTION BOOK IV RESOLUTION REQUESTING PLANNING COMMISSION TO RECONSIDER COMMERCIAL ZONING 180.6 At the October 15, 1974 meeting, Director Carlson had requested a resolution which would request the planning commission to reconsider the commercial zoning in and around the intersection of Highway 16 West and 180 1'81 the Highway 71 Bypass. The City Attorney read the proposed resolution. Director Orton said that since the zoning was established in concurrence with the Comprehensive Land Use Plan that she could not see how the Board could reverse the zoning without being arbitrary. Director Carlson stated that the State laws provide that any zoning ordinance could be recalled at any time by the Board of Directors. She said it would be a good time to repeal the commercial zoning since there is no commercial development at the location. She cited the traffic hazards at the location as being one reason to repeal the zoning. She also cited the possible widening of Wedington Road should the current trend in increasing traffic congestion continue:. Such a widening, she thought, would harm the residences along the Wedington Road. Mr. Dan Thomas, present in the audience, said he understood the con- cern for the traffic hazards but was of the opinion that commercial zoning does not cause traffic deaths. The traffic hazards, he said, were created by poor planning and engineering and felt that the State Highway Depart- ment should realize its responsibility for better planning and engineering. Following further brief comments, Direct6rrOrtontngeb6nd'ed by'Stantbn, moved the resolutionlbe:adopted. NIpnroI11ball•ivote.of•the•Board;. with one member.aberit;•the,rrecorded vote was six "Nays" and one "Aye" which was cast by Director Carlson. Mayor Purdy declared the resolution failed. RESOLUTION AUTHORIZING SUBMISSION OF FAA GRANT APPLICATION The proposed resolution would authorize the submission of an FAA grant application for the reconstruction of approach ramp areas and the repaving of the south 2,100 feet of taxiway. The City's share of the total $155,000 cost would be approximately $30,000. City Manager Grimes requested that the Board approve the resolution with the understanding that when the Board considered the grant acceptance, it could at that time refuse the grant acceptance if the necessary funds were not available to meet the City's share of the costs. He stated that the improvements had been requested by the FAA and the pilots' association. City Attorney McCord read the proposed resolution after which Director Noland motioned the resolution be adopted. The motion was seconded by Director Utley and in roll call vote of the Board, with one member absent, the recorded vote was six "Ayes" and no "Nays". RESOLUTION NO. 77-74 APPEARS ON PAGE 94 OF ORDINANCE $ RESOLUTION BOOK IV 1 RESOLUTION)AUTHOR'LZING APP-,LI_GATION=FOR GRANT FROM THE STATE OF ARKANSAS DIVISION`YOF AERONAUTICS The proposed resolution, read by the City Attorney, would authorize the application to the Arkansas Division of Aeronautics for a $10,000 grant for airport taxiway and approach ramp improvements. The funds would be used in conjunction with FAA funds and theyCity's share.of 'the•,pioject. There being no Cdiscussion, Director Noland moved the resolution be adopted. The motion was seconded by Director Utley and in roll call vote of the Board, with one director absent, the motion was passed unanimously. RESOLUTION NO. 78-74 APPEARS ON PAGE 95 OF ORDINANCE $ RESOLUTION BOOK IV 181 181.1 181.2 181.3 181.4 181.5 181.6 181.7 181.8 182 RESOLUTION ADOPTING AFFIRMATIVE ACTION PLAN 182.1 The proposed resolution, read by the City Attorney, would adopt the Equal Employment Opportunity Affirmative Action Plan and is a re- quirement of the Department of Housing and Urban Development as a condition for receipt of Community Development Act funds. 182.2 Following discussion in which City Manager Grimes informed the Board of a needed correction in Section Five of the plan, Director Noland moved that the resolution be adopted. The motion was seconded by Director Orton and in roll call vote of the Board, with one member absent, the recorded vote was six "Ayes" and no "Nays". Mayor Purdy declared the resolution passed. RESOLUTION NO. 79-74 APPEARS ON PAGE 96 OF ORDINANCE $ RESOLUTION BOOK IV CORRESPONDENCE AND OTHER BUSINESS RESOLUTION COMMENDING PRAIRIE GROVE 4-H CLUB 182.3 Director Carlson read a resolution commending the 4-H Club of Prairie Grove, under the leadership of Mr. Elbert Newell, for their successful efforts in the repair and restoration of the ancient stone wall surrounding the Confederate Cemetery. 182.4 Director Stanton made a motion to adopt the resolution and Director Utley seconded the motion. In roll call vote of the Board, with one member absent, six "Ayes" and no "Nays" were recorded. Mayor Purdy de- clared the resolution adopted. RESOLUTION NO. 80-74 APPEARS ON PAGE 97 OF ORDINANCE F, RESOLUTION BOOK IV ADJOURNMENT 182.5 There being no further business, Director Stanton motioned that the meeting be adjourned. The motion met with the approval of the Board and the Mayor declared the meeting adjourned. ATTEST: 4 ,LL arlene Westbrook, City Clerk APPROVED: la-0-azik 0.041 Russell T. Purdy, Mayor 182