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HomeMy WebLinkAbout1974-12-23 MinutesMINUTES OF A SPECIAL' MEETING OF THE BOARD OF 'DIRECTORS December 23, 1974 The Board of Directors of the City of Fayetteville, Arkansas met in a special session on Monday, December 23, 1974 in the Director's Room of the City Administration Building at 4:00 p.m. The purpose of the special meeting was for the presentation by engineers of a summary of the pro- posed "inside the city" and "Growth Area" water and sewer projects; the consideration and approval of an ordinance authorizing the issuance of $4 million in revenue bonds for the water and sewer projects within the city and water lines within the Growth Area; the consideration and approval of a resolution authorizing advertisement for construction bids for the project; and the approval of the Large Scale Development Plan of the Baldwin Piano and Organ Company. Present: City Manager Donald Grimes; Administrative Assistant, David McWethy; City Attorney Jim McCord; City Clerk, Darlene West- brook; and Directors Orton, Purdy, Noland, Utley, Murray, Carlson, and Stanton. Absent: None Others Present: Mr. Carl Yates and Mr. Ep McClelland, Consulting Engineers, representatives of the news media, and members of the audience. CALL TO ORDER The special meeting was called to order by Mayor Russell T. Purdy, and following a moment of respectful silence, the Mayor introduced Mr. Carl Yates, engineer for the inside water and sewer improvements. Mr. Yates explained in detail the RinSide*the city" water and sewer project to the Board. He explained that the improvements were necessary to provide better fire protection and water service to the citizens of Fayetteville and to provide sewer services to areas around the peripheal of the City not presently having sewer facilities. Estimates of the cost for the project, as presented by Mr. Yates, were placed at $622mmillion with approximately $2.2 million of the cost to be provided by HUD and EPA grants and $4 million to be provided by the City. Mr. Yates informed the Board that the project included deductive alternates in the amount of approximately $1 million and if the alternates were accepted, the City's cost would be approximately $3 million. Should the City decide not to undertake the deductive alternates, Mt. Yates said, it would not result in the decrease of the grants. . Present in the audience was Mrs. Ann Hauser, 929 Park Avenue, who questioned Mr. Yates and the Board about the financing of the project. She expressed her concern that the project cost would place additional burdens on the taxpayer. The Board explained that the project would not derive any income from taxes but from the water and sewer service revenues and that there were no plans for increased water and sewer rates. 213 210 213.1 213.2 213.3 214 214.1 Director Stanton stressed that the system was not being expanded for the sole purpose of accommodating builders but to satisfy the City's obligation to maintain a reasonable water supply and maintain adequate water pressure for fire protection purposes. The City Manager explained that individual property owners would have to bear the expense of running their private sewer lines to the City's lines and would have to pay a connection fee. 214.2 Following further discussion the Mayor introduced Mr. Ep McClelland who briefly explained the proposed improvements and deductive alternates for the Growth Area. Following his presentation, Mr. McClelland answered questions from the Board and the audience concerning the Growth Area im- provements. Mayor Purdy explained that the improvements would attempt to reach the maximum number of people per dollar spent for the improve- ments depsite curtailed funds and increasing costs. The presentation was completed following additional questions and comments. ORDINANCE AUTHORIZING ISSUANCE OF REVENUE BONDS 214.3 The proposed ordinance would authorize the issuance of up to $4 million in revenue bonds for water and sewer projects within the city and water line expansion within the Growth Area. 214.4 The City Attorney prefaced the reading of the ordinance by quoting sections of the recent court decision in the case Carlson, et al. v. City of Fayetteville which ruled that ordinances 1965 and 1966 authorizing the proposed inside and outside improvements to the water and sewer system were constitutional and authorized by state statutes. Mr. McCord said that the proposed ordinance to be considered was essentially the same as ordinances 1965 and 1966 and that no bonds would be issued until a certified statement had been received from a Certified Public Accountant stating the City's financial capability of issuing bonds. 214.5 The City Attorney then read the ordinance for the first time after which Director Noland motioned to suspend the rules and place the ordi- nance on second reading. The motion, seconded by Director Murray, was passed in roll call vote of the Board by a vote of six "Ayes" and one "Nay" which was cast by Director Carlson. The City Attorney read the ordinance for the second time. 214.6 Following the second reading, Director Carlson motioned that a public hearing be held prior to further action of the Board. Director Orton stated that she saw no justification for further delaying Board action since the subject of the improvements was not new and had been before the City for several years. Carlson's motion died for lack of a second. 214.7 Director Stanton then motioned that the rules be further suspended and the ordinance placed on third and final reading. The motion was seconded by Director Noland and was passed by a Board vote of six "Ayes" and one "Nay" which was cast by Director Carlson. The City Attorney then read the ordinance for the third and final time after which Mayor Purdy invited discussion from the Board. 214.8 In a lengthy statement, Director Carlson stated her objections to the ordinance and suggested certain changes she felt should be made to the ordinance. City Attorney McCord said he would confer with bond counsel Mr. Herschel Friday to determine if Carlson's changes would be acceptable. Director Carlson stated that she would abide with the decision of Mr. McCord and Mr. Friday in regard to her suggested changes. 214.9 In answer to a question from Director -Elect John Todd, the City Manager stated that no increase in rates were expected in the near future and that 214 the Board Water and Sewer Committee had contemplated the sale of some- what less than $4 million in bonds pending favorable market conditions and revenue receipts. Following slight further discussion, the Mayor asked if the ordi- nance should pass and upon roll call vote of the Board six "Ayes" and one "Nay", which was cast by Director Carlson, were recorded. Director Orton then moved that the emergency clause of the ordinance be adopted and Director Murray seconded the motion. The motion was passed in roll ualityote of the,. Board inoWh4ch. ik '!py'es!'=anddoh'de"Pay"n''cast 6y Director Carlson were r•ecordedt'J. ORDINANCE NO. 2074 APPEARS ON PAGE 234-255 OF ORDINANCE & RESOLUTION BOOK IV RESOLUTION AUTHORIZING ADVERTISEMENT FOR CONSTRUCTION BIDS The proposed resolution, read by the City Attorney, would authorize the advertisement of invitation for construction bids for the "inside the city" and Growth Area water and sewer projects. Following the reading of the resolution, Director Murray moved that the resolution be adopted. The motion was seconded by Director Orton and was approved in a roll call vote of the Board in which six Directors voted "Aye" and one, Director Carlson, voted "Nay". Mayor Purdy delcared the resolution adopted. RESOLUTION NO. 93-74 APPEARS ON PAGE 114 OF ORDINANCE $ RESOLUTION BOOK IV ORDINANCE'ACCEPTING AND APPROVING LARGE SCALE DEVELOPMENT PLAN - Baldwin Piano and Organ Company The City Attorney reported to the Board that the Large Scale Develop- ment of the Baldwin Piano and Organ Company did not involve the dedication of street right-of-way. He then read the ordinance for the first time after which Director Murray moved that rules be suspended and the ordinance placed on second reading. The motion was seconded by Director Orton and was passed unanimously by the Board. The second reading completed, Director Murray, seconded by Director Orton, moved thatl he rules be suspended and the ordinance placed on third and final reading. The motion was passed unanimously and the City Attorney read the ordinance for the third and final time. There being no discussion, Mayor Purdy asked if the ordinance should pass and the recorded vote of the Board was unanimous. The Mayor declared the ordinance passed. ORDINANCE NO. 2075 APPEARS ON PAGE 256 OF ORDINANCE & RESOLUTION BOOK IV ADJOURNMENT 215 215.1 215.2 215.3 215.4 There being no further business for the Board's consideration, the 215.5 Mayor, upon approval of the Board, declared the meeting adjourned. ATTEST: APPROVED: Russell T. Purdy, Mayor &CAW 215 Darlene Westbrook, City Clerk