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HomeMy WebLinkAbout1978-09-05 Minutes1 MINUTES OF MEETING OF BOARD OF DIRECTORS 315 September 5, 1978 The Fayetteville City Board of Directors met in regular session on September 5, 1978, 7:30 P. M., in the Board of Directors Room of the City Administration Building. PRESENT: Directors Erenst Lancaster, John Todd, Paul Noland, Al Hughes, David Malone, Phillip Colwell, and Ann Henry; City Manager Don Grimes; City Attorney Jim McCord; Administrative Assistant David McWethy; and City Clerk Angie Medlock. N ABSENT: None. COOTHERS PRESENT: Members of the audience and representatives of the news media. (� CALL TO ORDER QThe meeting was called to order by Mayor Lancaster. Following roll call and a moment of respectful silence, the Mayor called for consideration of the first item of business. 1 T.V. RATE INCREASE The Mayor declared open a public hearing on a proposed rate increase for t.v. 315.1 x cable service, submitted by Warner Cable. Attorney Lynn Wade was present to represent Warner Cable. Mr. Wade explained 315.2 that when the previous rate increase was granted, they were requested not to come back with another increase proposal for at least 12 months and it has now been 17 months. Mr. Wade said they would like to request a 50 cent increase for the primary rates and 25 cents on the secondary connection. Mr. Wade noted that the prime interest rate when they were before the Board in February 1977 was 4.8% and now it is up to 7.8% and that obviously affects Warner Cable's cost of doing business. Director Todd questioned the equity base used in the calculations submitted 315.3 and Mr. Phil Taylor of Economic Analysis Associates said it was 45% of the net invest- ment. Todd questioned if this would be somewhere around $600,000 and Mr. Taylor said he wasn't sure. Todd said based on Warner Cable's calculations considering return on equity, the percentages are based on approximately $600,000. Mr. Taylor explained that the equity position has changed from41 to 45% over the year and the return on the equity is based on that. Director Todd questioned where the income tax percentage was derived from and 315.4 Mr. Taylor said he applied a rate which he thought was 50% to it. Mr. Taylor said they use a straight line write-off on investments. Todd said he has not been able to reconcile that, based on previous annual 315.5 reports of Warner Cable, the tax rate has never gone over 36%. Mr. Taylor said Dr. Todd is talking about Warner Corporation and Warner Corporation encompasses a lot of other things. He said he feels you are looking at a conglomorate which might have a 50% tax rate and Warner Communication might have a 20% tax rate somewhere else. Mr. Taylor said he cannot tell Dr. Todd what rate will apply to each business. Director Todd said he doesn't see that the type of business makes that much 315.6 difference. He said the investment tax credit applies to everyone. Warner Cable of Fayetteville is owned by Warner Communication and the rate shown is that rate which would apply on the rates return as they account for them. Todd said if you look at this as an individual corporation you could 315.7 presumably apply 20-22% for the first $50,000 and could still wind up with an effective rate of somewhere between 20-50% or 35% which is about what the corporate rate is. Director Todd said this does make a significant difference in terms of dollars involved on getting to the bottom line. 9/5/78 316 316.1 316.2 316.3 316.4 316.5 316.6 316.7 316.8 316.9 Director Todd asked if the standard allocation is still on a subscriber basis. Todd said he doesn't believe that is accurate and feels it grossly inflates the amount of corporate overhead charged to Fayetteville. He said you are talking - about a cost accounting situation here and some things which could be charged on a per subscriber basis, some which could be charged on a per system basis, and some which could be charged on an investment dollar basis --all kinds of possible basis. Director Todd said when the Board looked at this several months ago, they felt a reasonable compromise would be an average of per system and per subscriber and Warner Cable counted $70,000 overhead allocated to Fayeteville from that system on that basis. He said now it is shown as $116,000 for this year. Director Todd noted that recognizing inflation has gone up, it seems there are extra expenses in there from the standard of rate determination. He said he hasn't seen any justifi- cation for these. He said income tax and overhead allocation are the two big areas. He said you are starting from a standpoint of 15.7% rate of return using Warner's figures, and if you look at these realistically, the figures would be more like 22-23% even without a rate increase. He said it is difficult to evaluate the survey done of the recent rate increase because you are talking about Fayetteville in contrast to the other systems. Todd said it seems we can't get off dead -center on this allocation of overhead on a subscriber basis and this is a key point. Todd said he hates to see Fayetteville lumped in with the larger cities. David Hamilton explained that Columbus, Ohio, is a separate corporation and does not share in the allocation --it has its own cost which is way above Fayetteville's cost. Mr. Taylor explained that the cable system in Fayetteville has been rebuilt since 1972; and Fayetteville has many peculiar problems which lead to higher costs. Director Noland noted that on Table 11 submitted with the proposal, it states that the growth of the system is declining, but technical expenses increased from 1977 to 1978 15% and they are projected to increase another 15% in the 1978-1979 year. Director Noland questioned how this could happen if the number of new subscribers has reduced by about half in one year, as submitted by Warner Cable. Rip Lindsey noted that in the past few months Warner Cable has built about 12 miles of cable, but only gained about 225 new subscribers. He said he feels the basic problem is the number of short-term residents who are deciding they can get by for the 6 months or so they will be in Fayetteville with the two or three channels they can get without cable. Director Malone questioned where the 12 miles of cable built recently are located and Mr. Lindsey said nearly all of it is inside the Fayetteville city limites. Director Hughes questioned the number of 6 -month customers and Rip Lindsey said Warner Cable connects about 40% for only a few months. Director Hughes noted that there are more houses than that built in that area and said it would be interesting to compare the number of houses built with the number of subscribers. He said he felt the number submitted by Warner Cable is in error. Director Malone noted that at the last rate increase request they also had problems with the allocation of the overhead. He noted that it is very difficult to compare Fayetteville with other towns. Director Malone said he is inclined to agree with Director Todd. Director Noland questioned the rate of corporate tax paid in 1977 and Phil Taylor said the parent company probably paid about 35%. Director Henry stated that Northwest Arkansas is absolutely cut off from the rest of the state for news. She noted that Fayetteville cannot get Little Rock news except through the newspaper. Rip Lindsey stated that the FCC had turned Warner Cable down when they requested to carry the three Little Rock stations. Director Henry said she does not want to watch an Atlanta station and said she felt the overall programming is one of the problems with the decrease of customers. 1 *for corporate overhead 9/5/78 31, Attorney Lynn Wade said one of the reasons for putting on Channel 17, 317 1 317.1 "Fanfare", and the Christian Broadcasting Network is to provide alternatives to ABC, NBC, and CBS, and the public broadcastindesystem. Mr. Wade pointed out that there are two problems in getting the Little Rock channels: 1) the FCC, and 2) they need appropriation for ETV so they can come in and have news coverage of their own and that could be sent throughout the state. Rip Lindsey said the FCC basically says the local stations should be encouraged 317.2 and any time you bring in outside competition, like the Little Rock stations, this takes away from the local stations. David Malone said he had talked to Senator Reeves who had tried to do something 317.3 about getting Little Rock stations to Fayetteville, but Mr. Reeves had ran into trouble with the local stations. Rip Lindsey said they had applied to the FCC to carry Little Rock stations but 317.4 N the FCC had received opposition from the local stations and denied Warner's applica- tion. Mr. Lindsey said Warner Cable has property for a microwave tower to transmit 10 from Little Rock if they could get approval from the FCC. U Director Hughes said he feels it is the corporation's responsibility to show 317.5 Q the people of Fayetteville the programs they want to see, and they should apply for something besides an Atlanta station. David Malone said he feels the Little Rock Q channels are the ones people want to see and Mr. Lindsey pointed out that you would be bringing in basically the same network channels with Little Rock. He noted that with independent channels you could give people a bigger choice. Director Colwell said he agreed with Director Hughes about Channel 4 not being 317.6 a very good channel. He said, however, from a practical standpoint, if the increase granted 18 months ago was a reasonable compromise, he felt the 8% increase asked for now would be reasonable. He pointed out that all public utility prices have been increasing, except for the water and sewer. David Hamilton said at the time the report submitted was prepared, they did not317.7 reflect the cost of bringing in Channel 17 and "Fanfare" which would be about 15t per month per subscriber. Director Todd noted that there is opposition to consumers paying the extra 317.8 cost because they may not want to watch the new programs, and said it seems this extra cost is being imposed on them. Director Todd said he would not want Warner Cable to come back before the City Board again asking for a rate increase to pay for the Atlanta Channel and the Christian Broadcasting System. Clara Wisman, questioned if Channel 6 would be the only CBS station they would 317.9 carry and Mr. Lindsey said "no". David Malone questioned if the cable company is still required to provide a 317.10 public access channel and Mr. Lindsey said they are no longer required to provide one, but they do still have that service. David Hamilton noted that Warner Cable does not have the manpower to man the equipment to tape something, but they have the equipment is someone wanted to do the taping themselves. Mr. Lindsey said this would require the Cable Company to construct a return circuit from the square to Maple Street. Mayor Lancaster stated that he would abstain from participating in the 317.11 discussion or voting on this issue .because he also works for a public utility company and felt that his participation might constitute a.conflict of interest. Director Todd said he did not feel the earlier compromise turned out the way 317.12 he had hoped it would. He said he did not want to see Warner Cable get an 18% return on their equity. He also pointed out that the 18% return shown is shown on their own figures. Attorney Wade referred to the franchise for Warner Cable which says "Rates 317.13 charged by the company for service hereunder shall be fair and reasonable and designed to meet all necessary costs of the service including a fair rate of return on the value of the system as a going concern" and also "Rates for 318 318.1 regular subscriber service shall be maintained consistent at all times with company's regular operating costs including increased cost due to inflation and capital costs incurred since company's last preceding rate adjustment". 318.1 Director Todd made a motion to deny the rate increase requested. Director Malone seconded the motion. The recorded vote was: Ayes: Todd, Noland, Hughes, Malone, Henry. Nays: Colwell Abstain: Lancaster. ORDINANCE REZONING PROPERTY R78-20 / David F. Mark and Nancy Partos, Petitioner 318.2 The petitioners had requested rezoning a 1.88 acre parcel located on the west side of Gregg Avenue, 300 feet south of Center Street from 1-1, Heavy Commercial and Light Industrial District to R-3, High Density Residential District. City Attorney McCord read an ordinance rezoning the property as requested and as recommended by the Planning Commission. 318.3 Irving Zisner, 325 S. Gregg presented a petition in opposition to the requested rezoning. He said the property owners in the area feel the increased traffic flow will create a traffic hazard. He pointed outthat you could put approximately 85 units on the 1.88 acre tract. He noted that at the intersection of Prairie and Gregg, it is almost impossible for two cars to meet. 318.4 Mrs. Zisner, of the same address, pointed out that they have 22 signatures on the petition, and there are 27 adults on South Gregg from Center Street to Prairie Avenue. She noted that four people were out of town and the other property owner is David Mark. Mrs. Zisner said she is opposed to the additional traffic the apart- ment complex would create, and noted that the street is very narrow and difficult to drive on in the winter. She pointed out that South Gregg is used by many bicyclists and joggers because it is a quiet street. 318.5 Mary Grace Sinnott, also present in opposition, noted that most of the resi- dents on Gregg Street were present to oppose the request. Mim Wynne, 304 S. Gregg, said she had moved to Gregg Street because it is a quiet neighborhood. 319.6 Director Hughes noted that if you are building apartments near the railroad tracks, you are eliminating the only space for commercial or industrial uses which could use the railroad spur. He said he feels the property should remain industrial and encourage some type of industrial use. 318.7 Director Colwell said if some type of heavy commercial or industrial use was built on the property, there would be twice as many people present in opposition. 318.8 Nancy McGarity, 226 S. Gregg, said she feels the Board should look at the green spaces in Fayetteville and said she hoped at some time maybe this area could be turned into a park. She noted that there are a lot of apartments in the neighbor- hood who could use the quiet space. 318.9 Johnny Woodward, 306 S. Gregg, agreed that he doesn't want any more apartment complexes in the area and that there is a problem with the traffic. 318.1C Linda Callentine, 121 S. Gregg, stated that there are other alternatives besides R-3 and I-1. She said the Board could consider R-2 or R-1 zoning. 318.11 Walter Robinson, 1548 North Leverett, representing the petitioner, stated that there was a master land use plan adopted by the City Board which showed this area as R-3. Mr. Robinson said he felt industrial development has not taken place because the property is so small. He pointed out that there is a desperate need for housing near the University. He felt that the location of the property and the physical circumstances really speak for themselves. 318.12 Joe Neal was present in opposition. He said he bicycles on South Gregg Street because it is a quiet neighborhood. 318.13 Mayor Lancaster questioned how many people at this meeting showed up at the Planning Commission meeting with the same argument and Linda Callentine and Mary Grace Sinnott said they were the only two who showed up at the Planning Commission meeting. N U Q Q 1 9/5/78 David Druding.said there would haveto be major changes made in the street to accommodate the additional traffic. In reply to Joe Neal's concern that the apartment complex would interfere with the creek in the area, Walter Robinson said the creek only runs across a small portion of this property and they would not interfere with it. Director Todd questioned if the applicant had looked at the possibility of R-2 and Mr. Robinson said the R-2 would be a suitable compromise. He noted that Dr. J. B. Hays, who owns the property next to this parcel, is in favor of the rezoning. Director Hughes questioned who would pay to improve the street if the rezoning319.4 were approved and City Attorney McCord explained that this development would have to come back before the Subdivision Committee of the Planning Commission and they have the authority to require off-site improvements. Mim Wynne said her biggest concern is that the people on Gregg Street will be paying for the financial gain of two individuals, and it will seriously jeopardize the lifestyle and environment of the people living there. Director Noland said he would be in favor of referring this back to the Planning Commission if those in opposition would go before the Planning Commission with their concerns. Director Hughes said he could not see a wider street and curb and gutter only in front of this property and then go back to the 30 foot right-of-way. Director Noland said it would be helpful to have students and faculty in walking distance of the University which would conserve energy. Ormalene Goldsmith said she is in objection because of the traffic. Iva Cook said she would rather see the property remain as it is. Walter Robinson said he would be willing to compromise with the R-2 zoning. Director Noland, seconded by Colwell, made a motion to amend the Ordinance to rezone the acreage to R-2, Medium Density Residential. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the Ordinance was read. Director Noland, seconded by Colwell, moved that the rules be suspended and the Ordinance placed on second reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was read the second time. Joe Neal questioned if sidewalks would be required and Mayor Lancaster said 319.14 "yes". Joe Neal said before they approve this development, they need to look at sidewalks from this development to the University and to Highway 62. Director Malone explained that the Board of Directors cannot prohibit property319.15 from being developed. Director Colwell explained that the Planning Commission has the authority to 319.16 require off-site improvements when the large scale development plan is brought in. Director Todd noted that this is an older area and may be available for Community Development funds. Nancy McGarity recommended that. the Board of Directors refer this back to the Planning Commission for consideration of the R-2 zoning. Irving Zisner said he 319.17 would recommend that the property remain I-1. Director Noland, seconded by Colwell, moved rules be further suspended and the 319.18 ordinance placed on third and final reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was read the third and final time. 319.2 319.3 319.5 319.6 319.7 319.8 319.9 319.10 319.11 319.12 319.13 9/5/78 320 320.1 There being no discussion, the Mayor asked if the Ordinance should pass. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The Mayor declared the Ordinance passed. ORDINANCE NO.2464 APPEARS ON PAGE106 OF ORDINANCE AND RESOLUTION BOOK VI. 320.2 Mayor Lancaster said it bothers him that the opposition did not show up at the Planning Commission and the Board of Directors had to go against the Planning Commission recommendation and the recommendation of the Planning Consultant. ROOF REPAIR AT THE YOUTH CENTER 320.3 Elizabeth Reagan, chairperson of the Parks and Recreation Advisory Board asked that consideration of authorizing $25,000 for roof repair at the Youth Center Pool be tabled. 320.4 Director Noland, seconded by Hughes, made a motion to table this request. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. NAMING OF "ROUTH PARK" 320.5 Elizabeth Reagan, chairperson of the Parks and Recreation Advisory Board asked that the Board consider naming the park located at the intersection of Crossover Road and Old Wire Road "Routh Park" in honor of the family who owned the property from 1854 until the late 1950's. 320.6 Director Malone said just because the family owned the property is not justification for naming the park after them. He noted that there is no showing that this family did anything significant in development of the park. 320.7 Malone said he does not feel, even though the Board agreed to name the park after the person owning the property, that this is a good rule. He said he would prefer to name it after someone who has made a significant contribution to the parks system in Fayetteville. 320.8 Director Hughes agreed with Malone and said he feels that naming the parks after the area location is a good idea. 320.9 City Attorney McCord read a resolution to name the park "Routh Park". Director Todd, seconded by Ann Henry, moved adoption of a resolution authorizing naming the park "Routh Park". The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed. 320.10 RESOLUTION N054-78 APPEARS ON PAGE242 OF ORDINANCE AND RESOLUTION BOOK VI. MASTER STREET PLAN REDUCTION / Meadow Street Allen Sumner, principal representing the Hilton Hotel width requirement for Meadow Avenue, reduced to 36 feet. area to 31-32 feet in the 36 side of the Hilton property. partner of Greener and Sumner Architects of Dallas, , said they are asking to have the right-of-way Street, between North College Avenue and North East He said they are proposing to widen the pavement feet right-of-way and install a sidewalk on the south He explained that if the 60 feet right-of-way 1 1 1 9/5/78 was required, they would loose so much of their building and the parking 321 structure, it would make the project unfeasible. The parking deck must be terminated on the south side by an east/west alley, so there is no room for expansion to the south. Mr. Sumner said he had talked with Street Superinten- dent Clayton Powell who indicated he would be satisfied with 31-32 feet pavement. This would give enough pavement for three lanes of traffic. Director Malone questioned how wide the pavement is on the north side of Mcllroy Bank and City Manager Don Grimes said the section of Meadow going west from Center Street is about 31 feet wide. He said it is 24 feet from there back to College. Malone pointed out that all of the sidewalk except about one foot, is on Mcllroy Bank property. Bruce Robertson questioned if the parking structure will also be for public parking and Mayor Lancaster said "yes". The City Attorney read an ordinance which would reduce the master street N plan for that portion of Meadow Street between North College Avenue and North CO East Avenue. Director Hughes, seconded by Colwell, moved that the rules be suspended and the ordinance placed on second reading. The recorded vote was: U Ayes: Henry, Noland, Hughes, Malone, Lancaster, Colwell. Q Nays: Todd. Director Malone explained that the reason faro the 60 foot right-of-way Q requirement is that the City had planned to not have any traffic on the square and move the traffic back one block all the way around the square. He noted that the Board did reduce the master street plan for the block from East to Block Street at the time of Mcllroy Bank construction. Director Todd said he would like assurance that there would be three lanes of traffic. City Manager Grimes stated that 10 feet is the minimum for one lane and 12 feet is ideal. He noted that to obtain the full 60 feet right-of-way would require an additional 12 feet on each side of the centerline. He noted that if the Hilton put the sidewalk on their own property, they would really be requesting a 7 foot variance. He explained that the City could use 15 feet for pavement on the north side and could still have a three foot sidewalk. Joe Neal questioned if there would be a traffic light at Meadow and College Avenue and Director Malone said they are going to ask the State Highway Depart- ment to install one at that intersection. Director Todd asked if there would be additional City expenses. He pointed out that at the time the Continuing Education Center was brought in, there was a letter from the City Manager stating that the only expense to the City would be a 3-phase traffic signal at the intersection of Meadow Street and College Avenue. Malone stated that they could leave the north side of Meadow as it is but he felt, however, that the City should pay for the additional improvements. He noted that it is difficult to determine that all the traffic will be going only to the hotel and Condinuing Education Center. Todd felt the City would not 3 -lane Meadow if this development were not going in. Director Hughes, seconded by Colwell, moved rules be further suspended and the ordinance placed on third and final reading. The recorded vote was: Ayes: Henry, Noland, Hughes, Malone, Lancaster, Colwell. Nays: Todd. The motion was declared passed and the ordinance was read the third and final time. There being no further discussion, the Mayor asked if the ordinance should pass. The recorded vote was: Ayes: Henry, Noland, Hughes, Malone, Lancaster, Colwe.. Nays: Todd. The ordinance was declared passed. ORDINANCE NO. 24-60APPEARS ON PAGE 101 OF ORDINANCE AND RESOLUTION BOOK VI. 9/5/78 322 OVERHEAD PEDESTRIAN WALKWAY / Hilton 322.1 Allen Sumner explained that the walkway is proposed to be 16 feet high and extending from the parking garage to the hotel. The Zoning Ordinance requires an 8 foot setback from the centerline ofa public alley for anything above 30" high and the Board of Adjustment did grant a variance for the set- back. Sumner said they want to leave the option open as to whether the walkway will be enclosed. Mr. Sumner said fire department vehicles and sanitation trucks require 14 feet overhead clearance. 322.2 Bruce Robertson asked if the City is bearing the cost of building the parking structure and Mayor Lancaster said it is a City structure, but the facility will be set up to pay for itself. 322.3 Director Hughes, seconded by Colwell moved that the resolution be passed. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed. RESOLUTION NO. 57-78 APPEARS ON PAGE 246 OF ORDINANCE AND RESOLUTION BOOK VI. REQUEST TO VARY MINIMUM LOT SIZE 322.4 Mayor Lancaster explained that Little Chief Broadcasting Company questing a variance on the minimum lot size to allow a 1.0 acre tract water and sewer facilities, to erect a transmitting tower. 322.5 Director Todd said it seemed to him that this is within the spirit of Ordinance No. 2353. Director Malone suggested they condition this upon no water and sewer facilities be allowed and that the parcel be used only for the purpose stated. 322.6 Director Hughes, seconded by Henry, made a motion to grant the variance as requested. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed. is re - without 322.7 322.8 322.9 322.10 RECYCLING REQUEST DISCUSSION David Druding said he would like to determine what degree of City partici- pation he could be able to call for in trying to implement some type of recycling program. Mayor Lancaster said the City previously had a recycling center, using donated help, which they could not make pay for itself. Druding pointed out that donated help would not be fully committed. Director Hughes said he does not feel the City can afford to contribute to a recycling center because it has been proven that it would not be financially feasible even with donated help. Director Malone said Druding is asking for permission to conduct a survey on the water bills, but that the type of one question yes -of -no survey that could be contained on a small water bill would not produce reliable information. He noted that if someone came back in with a well-designed survey, it would be so extensive that the City would not have the money to send it out. Director Hughes said he doesn't feel at this point, that enough information has been presented to change an operation which has already been proven to be a failure. 1 1 1 9/5/78 323 City Manager Grimes pointed out that the Pollution Control 323.1 Committee did a survey about three years ago and conducted a pilot project, III and even picked up the garbage until the bottom fell out of the paper market. Mr. Grimes said he felt Mr. Druding should go before the Pollution Control Committee first. Mr. Grimes said the City has not felt they should operate a recycling center when there is a private enterprise trying to make a living at operating one. Bruce Robertson, who operates the recycling center, said regardless of whether it is private or public, it is benefitting everyone. Bruce Robertson asked about some type of turnback for the Center from the 323.2 City since the City does not have to pick up that amount of trash which is collected by the recycling center. Mr. Grimes questioned Robertson if he felt a recycling center would pay the rent if the City were in the business of recycling and Mr. Robertson said "no". He said it does pay the rent, and N a little more, for him. CO Director Malone said the City Board is not against recycling and 323.3 suggested that Mr. Druding meet with the Pollution Control Committee and bring a specific proposal back to the Board with cost figures. 0 Director Todd said he would like to see someone try this as a business 323.4 Q proposition and said he doesn't feel a very large majority of people will Q take their trash to the recycling center. David Druding asked if the Board sees any type of financial responsibility in trying to see this type of thing happen and Todd said they accept some responsibility but would rather see a private rather than public enterprise. 1 • LIABILITY INSURANCE FOR HOT ASPHALT ROOFERS Director Hughes stated that the City should be protected by some form of 323.5 liability insurance for the hot asphalt roofing contractors. City Manager Grimes said a roofing contractor had came in to see him 323.6 about the possibility of licensing roofing contractors and he told him to get the roofing contractors together and come before the City Board as a group with their request. Colwell said he feels after the fire in Rogers caused by a hot asphalt 323.7 roofer, there is a definite need for this insurance. The City Attorney read an ordinance requiring hot asphalt roofing 323.8 contractors to secure liability insurance and file a copy of this policy with the City Clerk. Hughes, seconded by Malone, moved rules be suspended and the ordinance 323.9 placed on second reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell Nays: None. The motion was declared passed and the ordinance was placed on second reading. Director Malone, seconded by Colwell, moved that rules be further 323.10 suspended and the ordinance placed on third and final reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. The motion was declared passed and the ordinance was read the third and final time Director Malone noted that this is one of the things which makes the cost 323.11 of construction creep up, but he does feel this is a good ordinance. Director Colwell noted that the City would need help from the roofers in 323.12 enforcing this. He suggested the City Manager's office send a letter to all roofers informing them of this ordinance. 9/5/78 324 324.1 There being no further discussion, the Mayor asked if the ordinance should pass. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The ordinance was declared passed. ORDINANCE NO. 2461 APPEARS ON PAGE 102 OF THE ORDINANCE AND RESOLUTION BOOK. ORDINANCE VACATING UNOPENED STREETS / Treadwell, Buchanan, Ohio, & Delaware Streets 324.2 The City Attorney read an.ardinance vacating unopened street rights-of-way on Fayetteville school property for the following streets: Treadwell, Buchanan, Ohio, and Delaware Avenue. 324.3 Director Noland, seconded by Todd, moved that the rules be suspended and the ordinance placed on second reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the Ordinance was read the second time. 324.4 Dr. Vernon Glenn was concerned that Delaware Avenue remain open for access and City Manager Grimes assured him that an access easement would be retained for the public. 324.5 Director Malone, seconded by Colwell, moved that the rules be further suspended and the ordinance placed on third and final reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was read the third and final time. The Mayor asked if the ordinance should pass. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The ordinance was declared passed. ORDINANCE N0. 2462 APPEARS ON PAGE 103 OF ORDINANCE AND RESOLUTION BOOK VI. ORDINANCE REZONING PROPERTY - R78-19 / Leonard Warford - Happy Hollow Road 324.6 Petitioner requested zoning change from I-2, General Industrial District to C-2, Thoroughfare Commercial District, for a 0.46 acre tract of land located on Happy Hollow Road, approximately 100 feet south of Thirteenth Street. Planning Commission recommended approval of the rezoning. 324.7 There being no public opposition, Director Todd, seconded by Malone, moved that the rules be suspended and the ordinance placed on second reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance read the second time. 324.8 Director Todd, seconded by Malone, moved rules be further suspended and the ordinance placed on third reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was read the third and final time. The Mayor asked if the ordinance should pass. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The ordinance was declared passed. ORDINANCE NO. 2463 APPEARS ON PAGE 105 OF ORDINANCE AND RESOLUTION BOOK VI. 9/5/78 ORDINANCE REZONING PROPERTY - R78-21 / Robert & Elizabeth McKee - City Lake Rd. 325 Petitioner was requesting rezoning of a 22.1 acre tract located on the 325.1 III west side of City Lake Road, south of Dotson Lewis Lane, from R-2, Medium Density Residential District to A-1, Agricultural District. The Planning Commission recommended approval. City Manager Grimes stated that Dotson Lewis Lane is not a City street. 325.2 Elizabeth McKee clarified that the spirit of what Mr. McKee had said at the Planning Commission meeting was that he did not plan to take unfair advantage of Act 188 property tax exemption, but would probably, at some later time, seek a tax exemption for a portion of the property. Director Malone said he feels the City Board should ask the Municipal 325.3 League to look at Act 188. Director Todd, seconded by Director Malone, moved rules be suspended 1. 325.4 and the ordinance placed on second reading. The recorded vote was: CO Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. 10 Nays: None. 0 The motion was declared passed and the ordinance was read the second time. Q Director Todd, seconded by Noland, moved the rules be further suspended 325.5 and the ordinance placed on third reading. The recorded vote was: Q Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was read the third and final time. The Mayor asked if the ordinance should pass. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The ordinance was declared passed. 1 ORDINANCE NO. 2466•APPEARS ON PAGE 111 OF ORDINANCE AND RESOLUTION BOOK VI. RECOMMENDATION TO DELETE UNIVERSITY AVENUE ON MASTER STREET PLAN After a short discussion, Director Malone, seconded by Director Henry, made a motion to send the recommendation from the Street Committee to delete University Avenue from Dickson Street to Duncan Avenue from the Master Street Plan, back to the Fayetteville/Springdale Transportation Committee for study. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed. FEDERAL URBAN SYSTEM FUNDS REQUEST The City Attorney read a resolution asking the Arkansas Highway & Transportation Department to program Federal Urban System Funds for the following projects: 1) four-laning of Gregg Avenue from Elm Street to Ash Street, and from Spruce Street to North Street; 2) four-laning North Street from Skull Creek to Gregg Avenue; and 3) extending Razorback Road from Highway 62 West to West Fifteenth Street. Director Malone, seconded by Director Todd, moved adoption of the resolution. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The resolution was declared passed. RESOLUTION NO 55-78 APPEARS ON PAGE 243 OF ORDINANCE AND RESOLUTION BOOK VI. 325.6 325.7 325.8 326 9/5/78 ORDINANCE AUTHORIZING INCREASE OF ACT 9 BONDS - American Air Filter Company 326.1 The City Attorney read an ordinance to increase the amount of the "Act 9" Industrial Development Revenue Bonds, approved at the July 5, 1978 Board meeting, from $3,200,000 to $4,000,000. 326.2 Director Henry, seconded by Noland, moved that the rules be suspended and the ordinance be placed on second reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was placed on second reading. 326.3 Director Todd, seconded by Director Henry, moved rules be further suspended and the ordinance placed on third and final reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was read the third and final time. The mayor asked if the ordinance should pass. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The ordinance was declared passed. 326.4 Director Henry, seconded by Director Hughes, moved that the emergency clause be adopted. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The emergency clause was declared passed. ORDINANCE NO. 2465 APPEARS ON PAGE 107 OF ORDINANCE AND RESOLUTION BOOK VI. CONDEMNATION RESOLUTION / Highway 265 Sewer Line Project 326.5 Director Malone, seconded by Director Henry, moved to approve a resolution on a request by the Water and Sewer Department for authorization to initiate condemnation proceedings in connection with the Highway 265 sewer line project. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The resolution was declared passed. RESOLUTION NO. 56-78 APPEARS ON PAGE 244 OF ORDINANCE AND RESOLUTION BOOK VI. CHANGE IN CITY'S HEALTH INSURANCE RATING 326.6 Dr. Bob Hall, representing the employee benefit consulting firm of King, Hall, and Associates, explained that the proposed change in the rating method will do two things: 1) if there is any excess premium over the losses after the stabilization reserve has been established, it will then revert to the City, and 2) the stabilization reserve will belong to the City and the City could dip into that reserve to help offset rate increases in the future. Dr. Hall explained that this system is retrospective and each year's losses would affect that year's rates. Dr. Hall said the City would not have to put any money in for the stabilization reserve since they are an established client. 326.7 Director Colwell questioned what would happen if there were large medical expenses one year. Dr. Hallsaid Blue Cross/Blue Shield would pay the excess, but the following year the rate would be adjusted. 1 1 1 r 9/5/78 Director Colwell said if the City does not already do so, they should require physicals on new employees. City Manager Grimes said he thought the City does require physicals for those presons who do manual labor. Director Malone, seconded by Director Todd, moved that authorization to change the City's health insurance rating formula from a "standard rating" method to a "retrospective rating" method be granted. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed. 327 327.1 327.2 ALLEY VACATING - Storer Avenue Robert Windham said Storer Avenue is closed from the north to this 327.3 property and Jerry Sweetser has an agreement to buy this property if Storer Avenue is closed. Mayor Lancaster asked why they do not have written approval from all utility companies. Robert Windham said they are willing to leave a 40 foot utility easement, and only close this as a platted street. City Attorney McCord read the Ordinance vacating an unopened portion of 327.4 Storer Avenue. Director Malone, seconded by Noland, moved rules be suspended and the ordinance placed on second reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was placed on second reading. Director Todd, seconded by Malone, moved rules be further suspended and 327.5 the ordinance placed on third and final reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was read the third and final time. The Mayor asked if the motion should pass. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The ordinance was declared passed. ORDINANCE NO.2467 APPEARS ON PAGE 112 OF ORDINANCE AND RESOLUTION BOOK VI. AWARD OF BIDS - Airport runway/taxiway painting Director Colwell asked if the striping company in Fayetteville had a 327.6 chance to bid on the airport runway/taxiway painting and Purchasing Officer Sturman Mackey said they had submitted a bid. Director Hughes asked if the Traffic Superintendent could do the painting 327.7 and Mr. Mackey explained that the painting would have to be done according to FAA regulations. He noted that the company proposed to receive the bid has done the runway/taxiway painting for both the Little Rock and West Memphis airports. Director Malone, seconded by Hughes, moved to approve the award of bid to 327.8 Arkansas Culvert & Supply Co., Inc., the low bidder. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed. AWARD OF BIDS - Air compressor City Attorney McCord read an ordinance to waive the requirements of competitive bids for an air compressor to fill Fire Department air packs. 327.9 9/5/78 328 and award the bid to Les V. Hart Equipment Company. 328.1 Director Hughes, seconded by Malone, moved rules be suspended and the ordinance placed on second reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed and the ordinance was placed on second reading. 328.2 Director Hughes, seconded by Malone, moved the rules be further suspended and the ordinance placed on third and final reading. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None The motion was declared passed 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: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The ordinance was declared passed. ORDINANCE NO. ` APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK VI. OTHER BUSINESS CITY PLAT BOOKS 328.3 Director Hughes stated that the City plat books need to be updated and this would require authorization to spend about $2500. He felt they could make enough money selling the books to get the $2500 back. 328.4 Director Malone said it is questionable if all streets shown in the plat book are actually dedicated right-of-way. 328.5 City Manager Grimes said they could use money from the City Engineer's department and reimburse them. 328.6 Director Hughes, seconded by Colwell, moved that the authorization of $2500 to update City plat books be approved. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed. FRONTIER LANDING FEES 328.7 Director Hughes stated that Frontier Airlines still owes the City $49,602.88 for landing fees at Drake Field. Hughes said he feels Frontier should either pay the fees or the City should not let them land. DRAIN TILE FOR TAXIWAY/RUNWAY AT DRAKE FIELD 328.8 City Manager Grimes said the FAA inspectors have told the City that there is a boggy area between the taxi area and the runway which would have to be corrected or the airport shut down. He said the City is now in the process of spending about $22,000 to extend about 800 feet of 30" drain tile to tie in to a larger drain. He asked the Board to grant approval to complete this project out of the General Fund Reserve. 328.9 Director Todd, seconded by Malone, moved to approve the allocation of $22,000 from the General Fund Reserve for the improvement of the drainage on the taxi area and runway. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed. 1 1 1 9/5/78 OVERLAY FOR TOWNSHIP ROAD City Manager Grimes said the telephone company told them at the last Plat Review meeting that the telephone company still needs to run a cable from College Avenue to Old Wire Road and Township. He said the Street Department is asking that the City defer paving this and patch it until next paving season. MAPLE-VANDEVENTER INTERSECTION 329 329.1 Director Todd asked the status of the Maple-Vandeventer intersection 329.2 and City Manager Grimes said it is still a project, but they were waiting until (V the property on the northwest corner was sold. He said University Baptist (.0 Church,:who purchased that property, has agreed to dedicate the additional right-of-way. He noted that most of the work to be done at that intersection could be done after the paving season. U Director Malone asked who would pay to relocate the utilities and City 329.3 Q Attorney McCord said they are in court now about a similar case, so it will be determined soon. Director Colwell read a statement concerning his concern about the 329.4 parking problem at the University. Director Colwell made a motion that the City Manager send these sentiments 329.4 to the University. The motion died for lack of a second. Director Hughes said he feels the City should try to get the University 329.5 Committee to try to increase the tax base to support the University which in turn supports the City. He said he doesn't feel a resolution encouraging mass transit will solve the problem. Director Colwell said he would like to expeditethe mass transit system 329.6 because people who do find a parking place on campus then have to ride a bus as far as they have driven. Director Henry said she feels it is up to the Board of Directors to 329.7 try to work with the University. Director Hughes said he feels sending a letter expressing concern over the parking problem is wrong --he said he feels they should try to meet with the proper people at the University. Director Malone, seconded by Henry, said the,City Board recognizes 329.7 and wants to encourage the University to expedite an alternative transportation system in the hope of eliminating some vehicle congestion and on -street parking problems around the campus and further, that the Board indicates its willingness to meet with senior administrative personnel for the University to discuss transportation needs in this area. The recorded vote was: Ayes: Henry, Todd, Noland, Hughes, Malone, Lancaster, Colwell. Nays: None. The motion was declared passed. MINUTES Director Colwell said the last sentence of Paragraph 304.4 should be 329.8 amended to read "in half the states, the higher courts have ruled on flouride and in no case have they ruled unfavorably". With this correction and correction of typing errors in Paragraph 309.1, the Mayor declared the amended minutes approved for the August 15, 1978 meeting. 330 9/5/78 REQUEST FOR INCREASE IN OZARKA GRANT Director Malone said the Airport Study Committee is going to ask that the Ozarka grant be increased to $300,000. He said he is going to meet with Governor Pryor's person on Ozarka Grants. There being no further business, the meeting adjourned at 1:00 A.M. ATTEST: ( trJc� i Angela Medlock, C y Clerk APPROVED: Ernest E. Lancaster, Mayor 1