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.
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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
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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