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HomeMy WebLinkAbout1975-08-05 MinutesMIWUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS AUGUST 5, 1975 The Board of Directors of the City of session on August 5 , 1975 at 7:30 p.m. Administration Building. 331 Fayetteville, Arkansas met in a regular in the Director's Room of the City PRESENT: City Manager Donald L. Grimes; Administrative Assistant David McWethy; City Attorney Jim McCord; City Clerk Darlene Westbrook, and Directors Marion R. Orton, Ernest Lancaster, John Todd, Paul Noland, Al Hughes, Russell Purdy, and Morris Collier. ABSENT: None OTHERS PRESENT: Members of the audience and representatives of the news media. CALL TO ORDER AND APPROVAL OF MINUTES The meeting was called to order by Mayor Orton. Following a brief moment of respectful silence, the i•layor asked if there be any amendments to the minutes of the July 15, 1975 meeting. There being none, the Mayor declared the minutes approved as submitted. PRESENTATION OF WARNER CABLE RATE INCREASE STUDY At the request of the Mayor, Dr. William Hardin presented a report of findings of a study of a proposed rate increase by the Warner Cable Company which was conducted by himself and Dr. Kenneth Cook. The written report had been received by each Board member and is filed for record in the City Clerk's Office. Dr. Hardin explained the purpose of the report and the five areas of analysis and reporting to which they directed their study. The report in- cluded a technical report and an accounting report. Dr. Hardin emphasized the accounting report and listed several exceptions that he and Dr. Cook had taken to Warner's accounting procedures; particularly in depreciation and cost allocations. In regard to the rate increase, it was the recommendation of the consultants that "...Warner Cable of Fayetteville be allowed to charge sub- scribers the proposed $10.00 connection fee effective immediately, and effective January 1, 1976, the monthly primary service rate for residential subscribers be increased to $5.15 ,provided the major system rebuild is initiated prior to that date. Present rates for additional outlets should remain unchanged. Recognizing that our justification for .such rate changes are based on projected revenue, costs, and investments for Warner Cable, we also recommend that such rates be given reconsideration after the results of operations during the first six months of 1976 are known." Dr. Hardin's comments completed, the Mayor invited comments from the audience during which the consultants responded to questions from members of the audience. Mr. Lynn Wade, representing the Warner Cable Company, stated that the study report had not been received in the New York office until August 4 and that the staff had not had sufficient time in which to 331 331.1 331.2 331.3 331.4 331.5 332 review the report; however, he stated that,"We reject it out of hand and and request to come back in two weeks with a detailed explanation of our position." 332.1 Mr. Rip Lindsey, local manager for Warner Cable Company, was also present and read the following official statement he had received from the Warner offices in New York: "We received a copy of the consultants report on August 4, 1975 and therefore have not had time to make the detailed analysis that was contemplated at our last meeting. Based on our previous review, we must state emphatically that we reject the report completely. The premise that we would consider investing approximately $700,000 to rebuild the Fayetteville system for a token increase of 15 cents (which is actually three percent) is not only totally unacceptable to us, but is unbelievable that it would even be proposed. "We do not fully comprehend the motive or reasoning behind this report, but it is regrettable for further delays in the public's ability to obtain the TV service they desire and which we are prepared and anxious to deliver." In addition to the statement, Mr.Lindsey commented, "This report is ob- viously as full of holes as our original submission was." 332.2 Mr. Bill Ryan, present in the audience, asked if statements he had heard regarding the possibility of the City "taking over" the cable com- pany were true. Mayor Orton replied that the possibility had been recommended if "all else fails or if other conditions weren't fulfilled." The City Attorney advised that he did not think the City had authority to condemn cable television operations. Another member of the audience, Mr. John Wall implied that the consultants, hired by the city, had produced a report in the City's favor. 332.3 Director Todd termed Mr. Wall's and Mr.Lindsey's comments unfair and asked Dr. Hardin if his ethical standards as a consultant had been compro- mised in conducting the study to which Dr. Hardin replied that they had not. When questioned by Mr. Lindsey if he (Director Todd) would swear that he had not conversed with Dr. Hardin concerning the study, Director Todd stated that he had discussed the study with the consultant but had not attempted to influence Dr. Hardin. Mr. Wall asked if it would not have been more feasible to retain the services of a consultant familiar with cable television systems, to which Director Hughes replied that Warner Cable had refused an invitation to share the cost and selection of a con- sultant. 332.4 Following further slight comments, Director Purdy, seconded by Director Noland, moved to table the matter until the August 19, 1975 meet- ing. The following roll call vote was recorded: "Ayes"• Orton, Purdy, Collier, Noland, Hughes "Nays"• None "Abstain": Lancaster, Todd The motion was declared passed. Mayor Orton stated that the Board also officially accepted the report. 332 333 1 REPORT FROM BOARD FINANCE COMMITTEE Director Lancaster, Chairman of the Board Finance Committee, opened his remarks by citing the recent opinion received from the City Attorney that a sales tax ceiling would be unconstitutional. In view of that decision, Director Lancaster moved that Ordinance 2125,which established a sales tax ceiling, be repealed. The motion was seconded by Director Purdy and the following vote was recorded. "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The motion was declared passed. The City Attorney then read an ordinance to repeal Ordinance 2125. Director Purdy, seconded by Director Hughes, motioned to suspend rules and place the ordinance on second reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the second time. Director Hughes, seconded by Director Todd, motioned to further suspend rules and place the ordinance on third and final reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the third and final time Several members of the Board commented that responses from citizens had not been favorable concerning the sales tax ceiling and felt that the ceiling would endanger passage of the sales tax by the voters. There being no further comments or discussion, the Mayor asked if the ordinance should pass. The following roll call vote was recorded: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The ordinance was declared passed. ORDINANCE NO. 2129 APPEARS ON PAGE 321 OF ORDINANCE AND RESOLUTION BOOK IV Director Lancaster then presented a list of priorities of capital improvements that could be financed through any surplus generated by the sales tax. Director Hughes suggested that a portion of any surplus should be used to replace reserves that had been used during the current fiscal year to replace lost revenues. In reply to questions from the audience, Director Todd stated that the latest estimate of revenues from the sales tax was $750,000 and that a surplus might not..b'e realized if the City did not renew bonds that were due to expire this year. The City Attorney advised that the bonds in question could not be automatically renewed and would require a vote of the people. The Board then discussed what alternatives might be considered should the sales tax not receive a favorable vote of the people. The Board informed those in the audience that sanitation and water and sewer funds could not be used for the City's general operating expenses. Director Hughes cautioned service cutbacks in the fire department so as not to raise Fayetteville's fire rating thereby increasing fire insurance rates. He pointed out that cuts in recreation and other areas would still not alleviate the possibi- lity of having to cut services in the fire and police departments since most of the revenue generated by the "voluntary tax" was used to help finance opera- tions of the two departments When asked about possible wage increases for city employees not being listed as a priority for surplus funds generated by the sales tax, Director Lancaster stated that the City could possibly grant increases with the surplus. The Board also discussed with the audience a recent request for an Attorney General's opinion on the consitutionality of the sales tax legislation. The City Attorney explained that those requesting the opinion 333 333.1 333.2 333.3 J 333.4 333.5 333.6 333.7 334 questioned the constitutionality of Act 990 of the 1975 Legislature on the basis that it was special legislation to apply only to a few Arkansas cities. 334.1 Director Todd stated that it should be a full Board decision as to what cuts should be made and that the Board should not lose sight of the fact that the citizens did not favor a reduction in city services. Director Purdy said he was hesitant about any specific cuts being proposed at this time. Mr. Jim Sullivan, present in the audience, said he felt it would be most helpful if the citizens knew exactly what services might have to be cut if the sales tax were not approved. Director Noland, seconded by Director Collier, then moved that the Finance Committee propose to the full Board a list of priorities for which services would be cut in the event that the proposed sales tax is not approved by the voters and the City had to operate with $500,000 less revenues. In roll call vote of the Board the following vote was recorded: "Ayes" Orton, Collier, Lancaster, Noland, Hughes "Nays": Purdy, Todd The motion was declared passed. ORDINANCE REZONING PROPERTY - First National Bank; R75-12 334.2 The ordinance would rezone a one-quarter acre tract of land located at 309 and 313 North University Avenue from R-3 High Density Residential to C-3 Central Business District. 334.3 The City Attorney read the ordinance the first time after which Director Hughes, seconded by Director Todd, moved that rules be suspended and the ordinance placed on second reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the second time. Director Purdy, seconded by Director Collier, moved to further suspend rules and place the ordinance on third and final reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the third and final time. 334.4 There being no discussion, the Mayor asked if the ordinance should pass. In roll call vote of the Board the following vote was recorded: "Ayes" Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The ordinance was declared passed. ORDINANCE NO. 2130 APPEARS ON PAGE 322 OF ORDINANCE AND RESOLUTION BOOK IV ORDINANCE APPROVING LARGE SCALE DEVELOPMENT PLAN - Ridgeview Baptist Church 334.5 The ordinance would approve the large scale development plan of Ridge - view Baptist Church for property located at 1880 Huntsville Road; and would accept and confirm the dedication of street right-of-way and/or utility easements. 334.6 The City Attorney explained that the ordinance came before the Board subject to dedication of right-of-way off of Happy Hollow Road and Highway 16 East (Huntsville Road). He stated that the Church did not object to right-of-way dedication on 16 East but did object to dedication on Happy Hollow Road because that property was not a part of the development. The Planning Office ascertained that the lot on Happy Hollow Road is a separate lot of record and not a part of the development; therefore, the City Attorney 334 1 1 1 advised that the development be approved conditional upon dedication of right-of-way on 16 East. He then read the ordinance the first time. Director Noland, seconded by Director Hughes, moved to suspend rules and place the ordinance on second reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the second time. Director Purdy, seconded by Director Lancaster, moved that rules be further suspended and the ordinance placed on third and final reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the third and final time. Following slight comment, the Mayor asked if the ordinance should pass. The following roll call vote was recorded: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The ordinance was declared passed. ORDINANCE NO. 2131 APPEARS ON PAGE 323 OF ORDINANCE AND RESOLUTION BOOK IV ORDINANCE APPROVING DEVELOPMENT PROPOSAL - Sundowner Realty The ordinance would approve the development proposal of Sundowner Realty to locate a real estate sales office on property located on the southwest corner of the Highway 112 and 71 intersection. The Adminis- trative Assistant reported that he had received a call from Mr. Wayne Wain- wright that Sundowner Realty no longer was interested in the ordinance and asked that it be tabled. Director Purdy, seconded by Director Todd, moved that the ordinance be tabled. The following roll call vote was recorded: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The motion was declared passed. ORDINANCE AMENDING CONTROLLED ACCESS HIGHWAY ORDINANCE The City Attorney suggested that theordinance be tabled in order to allow the Planning Commission to review the ordinance and recommend amend- ments. He commented that he believed his opinion that the ordinance as written was unconstitutional is correct and that the present ordinance could be amended so as to preserve the City's intent to limit access to the bypass. Director Hughes, seconded by Director Purdy, moved that the ordinance be tabled. The recorded roll call vote was: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The motion was declared passed. RESOLUTION AUTHORIZING EXECIJTION OF RAILROAD CROSSING CONTRACT The resolution would authorize the Mayor and City Clerk to execute a railroad crossing contract with the Frisco Railroad Company for two water line and one sewer line crossings for a total cost of $150. Following the reading of the resolution, Director Hughes, seconded by Director Lancaster, moved that the resolution be adopted. The recorded roll call vote was: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The resolution was declared passed. RESOLUTION NO. 57-75 APPEARS ON PAGE 176 CF ORDINANCE AND RESOLUTION BOOK IV 335 335± 335.1 335.2 335.3 335.4 335.5 335.6 O O t) 336.1 In addition to the above resolution, Director Noland moved that the Board adopt a resolution requesting that the railroad company take immediate action to repair railroad crossings in the City and bring them up to acceptable standards Director Collier seconded the motion and the recorded vote of the Board was: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The resolution was declared passed. RESOLUTION NO. 58-75 APPEARS ON PAGE 177 OF ORDINANCE AND RESOLUTION BOOK IV APPROVAL OF 1975-76 WATER AND SEWER BUDGET 336.2 Director Purdy, Chairman of the Board Water and Sewer Committee, stated that the budget had been referred to that committee for review and recommen- dation. He asked the City Manager to inform the Board members of the sug- gested changes. 336.3 Director Tadd questioned budgeted amounts for fire hydrant charges, contractual payments, street repairs, and personnel salaries. He specifically questioned whether any amounts were budgeted for a rate increase study to which Budget Director Sturman Mackey replied that there was not. He also question the amount of water loss to which Pat Tobin, City Controller, replied that every effort was being made to keep losses at a minimum and that a meter change -out program was underway to replace old, malfunctioning meters. Mr. Tobin said much of the water loss was unavoidable due to breaks in mains and freezes during the winter. Mr. Todd questioned why expenditures were shown for the Growth Area but no income indicated. The City Manager stated that the City would have a separate accounting for the Growth Area and that he did not feel it justifiable to draw up a budget for the Growth Area when so many unknown variables existed. 336.4 In regard to personnel salaries budgeted in Account Number 5700, Director Todd stated, "Don't expect me to vote for a large increase in personnel salaries in the 5700 Account without knowning where it is going." Mr. Mackey replied that the budgeted amount reflected what the 1975 Pay Plan specified. 336.5 Upon completion of discussion, a roll call vote was taken on a motion made by Director Hughes and seconded by Director Lancaster, to accept the budget. The following vote was recorded: "Ayes": Orton, Purdy, Collier, Lancaster, Noland, Hughes "Nays": None "Abstain": Todd The motion was declared passed. OTHER BUSINESS ORDINANCE VACATING EASEMENT FOR SEWER LIFT STATION - Paul Marinoni 336.6 The ordinance, read by the City Attorney, would vacate an easement granted the City on September 29, 1972 by Paul A. and Mary M. Marinoni for a sewer lift station site. Director Collier, seconded by Director Todd, nerved to suspend rules and place the ordinance on second reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the second time. Director Purdy, seconded by Director Collier, moved 336 1 to further suspend rules and place the ordinance on third and final reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the third and final time. There being no discussion, the Mayor asked if the ordinance should pass. The following vote was recorded: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The ordinance was declared passed. ORDINANCE NO. 2132 APPEARS ON PAGE 324 OF ORDINANCE AND RESOLUTION BOOK IV RESOLUTION DESIGNATING COMMUNITY DEVELOPMENT AND HOUSING DEPARTMENT AS HOUSING AGENCY OF THE CITY OF FAYETTEVILLE The City Attorney read a resolution designating the Community Develop- 337.1 ment and housing Department as the Housing Agency of the City of Fayetteville to administer and implement Section 8 Low Rental Assistance Program as re- quired by the Department of Housing and Urban Development. Mr. Chuck Hoffman, Community Development administrator, briefly explained 337.2 the Low Rental Assistance Program to the Board and informed that HUD was making available to the City $168,000 to assist people in lower income categories. He told the Board that the City's cost to administer the pro- gram was included in the grant. Mr. Hoffman also answered questions from the Board concerning those who would be eligible. Director Noland, seconded by Director Todd, motioned to adopt the 337.3 resolution. The roll call vote of the Board was: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The resolution was declared passed. RESOLUTION NO. 59-75 APPEARS ON PAGE 178 OF ORDINANCE AND RESOLUTION BOOK IV RESOLUTION AUTHORIZING APPLICATION FOR HOUSING ASSISTANCE PAYMENT PROGRAM The resolution would authorize the City Manager to file a grant appli- cation with the Housing and Urban Development Agency for Section 8 Housing Assistance Payment Program for the City of Fayetteville as contained in Title II of Puibic Law 93-383. Director Todd, seconded by Director Noland, moved to adopt the resolu- tion. The recorded vote of the Board was: "Ayes": Orton, Purdy, Collier, Lnacaster, Todd, Noland, and Hughes. "Nays": None The resolution was declared passed. 337.4 337.5 RESOLUTION NO. 60-75 APPEARS ON PAGE 179 OF ORDINANCE AND RESOLUTION BOOK IV ORDINANCE DISSOLVIi!G STREET IMPROVEMENT DISTRICT NUMBER 46 - Shady Avenue The ordinance would dissolve Fayetteville Street Improvement District 337.6 , Number 46 and would discharge the commissioners of the district from further duties and responsibilities. Following the first reading, Director Purdy, seconded by Director Hughes, 337.7 moved to suspend rules and place the ordinance on second reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the second time. Director Hughes, seconded by Director Todd, moved to 337 Alf 338 further suspend rules and place the ordinance on third and final reading. In roll call vote of the Board the motion carried unanimously and the ordinance was read the third and final time. There being no discussion, the Mayor asked if the ordinance should pass. The recorded vote was: "Ayes": Orton, Purdy, Collier, Lancaster, Todd, Noland, and Hughes "Nays": None The ordinance was declared passed. ORDINANCE NO. 2133 APPEARS ON PAGE 325 OF ORDINANCE AND RESOLUTION BOOK IV RETAIL BEER PERMIT APPLICATIONS 338.1 The Board discussed at length the applications of the Working Class Hero Restaurant and Town and Country Beverages. Even though the Board had received a petition from residents asking that the application of the Working Class Hero Restaurant (21 North Block) be opposed, the Board did not take action since the application seemed to meet requirements of City ordinances. 338.2 The application of the Town and Country Beverages, however, stirred opposition from the Board because of its proximity to a school and because of the proposed location being at a dangerous intersection. The proposed location of the outlet, 2016 West Sixth Street, is 300 feet from school property and 700 feet from a school building. The City Manager informed the Board that the school district intends to oppose the application. Director Hughes moved that the City join the school district in opposing the application on the basis of proximity to school property and location at a dangerous traffic intersection. The motion was seconded by Director Purdy and the recorded vote was: "Ayes": Orton, Purdy, Collier, Lancaster, Noland, and Hughes "Nays": None "Abstain": Todd The motion was declared passed. REQUEST FOR ORDINANCE PROHIBITING FIREWORKS 338.3 Director Purdy requested that an item to consider an ordinance to prohibit the sale, discharge and use of fireworks be placed on the next agenda. Director Todd was of the opinion that intermediate steps to regulate fireworks could be initiated rather than prohibiting their sale and use. The City Attorney stated that he would draft an ordinance to more fully regulate fireworks,as well as an ordinance to prohibit their sale and use, for consideration by the Board at its next meeting. PROPERTY AT WEST AND DICKSON STREETS 338.4 Director Todd questioned why debris, remains of a fire, had not been removed from property at the southwest corner of the West and Dickson Street intersection. The City Manager stated that the owner had been given notice to remove the debris as required by City ordinance but that the notice had since expired and the City was in the process of trying to solve the situation amicably. Mr. Hoffman stated that the owner had contracted removal of the debris but the contractor had failed to perform and now the contractor was trying to secure services of a refugee family to clear the property. 338 1 1 r • PARTICIPATION AT COMMITTEE MEETINGS Director Hughes expressed his opinion that, even though Board committee meetings should be open to the public and interested persons, those attending should not participate unless called upon by the committee members. He also felt that any Board members that might be attending a committee meeting of which they were not a member should not dominate the meeting. ADJOURNMENT Director Purdy motioned to adjourn until 7:00 a.m. August 8, 1975 at which time the Board would consider and award bids for the Housing Assis- tance Program. The motion was seconded by Director Lancaster. In roll call vote of the Board the following vote was recorded: "Ayes": Orton, Purdy, Collier, Lancaster, Hughes "Nays": Todd, Noland (Note: This meeting was subsequently cancelled.since only one bid was •received.) ATTEST: LellthituttAdJ Darlene Westbrook, City Clerk 339 APPROVED: 04. -1 -49 -roe (las,R Marion R. Orton, 339 339.1 339.2 1