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HomeMy WebLinkAbout1979-01-16 Minutes430 MINUTES OF A BOARD OF DIRECTORS MEETING A meeting of the Board of Directors was held on Tuesday, January 16, 1979, at 7:30 P.M., in the Directors Room, City Administration Building, Fayetteville, Arkansas. PRESENT: Mayor David Malone, Directors Ernest Lancaster, John Todd, Paul Noland, Richard Osborne, Phil Colwell, and Ann Henry; City Manager Don Grimes, City Attorney Jim McCord, Administrative Assistant David McWethy, City Clerk Angie Medlock. ABSENT: None. OTHERS PRESENT: Members of the audience and representatives of the news media. CALL TO ORDER 430.1 After a moment of respectful silence and roll call, the Mayor called for consid- eration of the first item of business. T.V. CABLE RATE INCREASE 430.2 The first item for consideration was a request submitted by Warner Cable for a "franchise rate adjustment" in the monthly fees for t.v. cable service. 430.3 Attorney Lynn Wade, representing Warner Cable, noted that the last time Warner Cable had received a rate increase was in February 1977. He noted that in May of 1978 they came before the Board asking for a rate increase which was denied. Wade referred to Section 4 of the t.v. cable ordinance which pointed out that the rates should be reasonable and should 'enable the company to meet all necessary costs of service and obtain a fair rate of return on the value of the system" and in addition, rates for regular subscriber services shall be maintained consistent at all times with the company's increased operating costs including increased costs due to inflation and capital costs incurred since the last preceeding rate adjustment. Wade said Warner Cable is of the opinion they have provided more than ample proof of these points at the meeting in September. He introduced Rip Lindsey, local manager of Warner Cable, Phil Taylor and Don Market of Economic Market Analysis, Dave Hamilton from the Atlanta office of Warner Cable, and Dr. Bill Hardin of Hardin Associates. He also noted that the Board members had received a written analysis on the need for the proposed rate increase from Dr. Hardin. 430.4 Rip Lindsey noted that there had been serious problems during a previous week- end with an ice storm and he had called the Atlanta office and by that Monday morning Warner Cable had help from several different systems to help restore service to Fayetteville. He noted that being associated with a larger company provided Warner Cable with twice the number of people to help restore service to Fayetteville. Lindsey noted that he has been with the company since they were established in 1953 and at that time the rates were $3.50 per month and in 25 years the rates have not even doubled. Lindsey also noted that the starting wages now for their employees is $4.15 per hour and when the rates were $3.50 per month, starting wages were $ .74 per hour. Lindsey stated that Warner Cable cannot operate without the revenue to operate with and the only source of revenue they have is the money they receive from their customers for service. 430.5 Mayor Malone stated that he felt the Board members would need a couple of weeks to analyze the data submitted by Dr. Hardin since they had just received it before making a determination. 1 January 16, 1979 431 Dr. Hardin noted that his recommendations are contained in the analysis 431.1 report submitted to the Board. He explained some of the calculations he had IIIcame up with. He pointed out that in 1978 the average deficit per subscriber per month is $ .35. Hardin recommended that the primary connection rate be increased $ .70 per 431.2 month and a second outlet rate increase of $ .25 per month with no adjustments in rates in a larger number of outlets. He said this would bring a total of $97,000 in additional revenues, if his forecast as outlined in the report submitted, proves to be accurate. Hardin stated that capital which supports the Fayetteville system comes in 431.3 directly from the money capital of Warner Communications, Inc. He said Warner Communications is the firm which raises the money in the capital market and releases that to Warner Cable. He said there is very little debt in Warner (V Cable's capital structure other than a very large amount which is provided from CO the parent company. He noted that when this is consolidated with the parent In company, that debt washes out of the capital structure. Dr. Taylor noted that in June 1978 they completed a study which they felt 431.4 U determined Warner Cable needs a $ .50 per month per subscriber increase. He said Q this would yield a rate of return on investment of 13% and 20% on equity for Warner Q Cable of Fayetteville. Taylor further noted that they had used an 82% rate in making the projections and since that time the prime rate has climbed three points higher than they had anticipated. He said this would cause the return on equity to drop to 8.69% in 1979. He stated that the rate increase approved in February of 1977 is now the_equivalent of $5.85 to Warner Cable. Taylor noted the approximate rate of return on equity with the proposed rate increase for 1979 would be approxi- mately 152%. It would take 7.21% per subscriber per month to compensate for inflation and the rate increase requested is 7.69%. Don Market of Economic Market Analysis noted that one way you could justify 431.5 the increase is that a $ .75 per month per subscriber increase would take care of the inflationary factor which has taken place since the previous rate adjust- ment was given in 1977. He said, at its best, public regulation is the second best method. Market noted that two commercial channels and one educational channel can now be picked up in Fayetteville with an antenna, so cable is no longer a "technical monopoly". He said no one can do a better job determining rates than the market place and recommended that the rate for Warner Cable be determined by market price. He submitted to the Board that the collective judgement of the market place is superior and that no one in administration really knows what the right rate should be. He said Warner Cable has suggested if the Board allowed them to go to this method, Warner Cable would 1) not increase the rates more frequently than at 14 month intervals, and 2) will not increase rates greater than 80% of the inflation that has occured since the previous rate increase. He noted that the adoption of this proposal would free the City Board of what is basically an impossible task and these two measures would protect the consumer in addition to the protection he is already going to get from the market place. Attorney Lynn Wade said he feels Warner Cable should be granted a $ .75 431.6 per subscriber per month rate increase. He also stated that if the Board wanted to, they could draft an alternative ordinance which would provide the market price determination. Rip Lindsey noted that the reason Warner Cable went to Warner Corporation for 431.7 funds is that there were no funds to increase and upgrade the system. He said it III would be impossible to operate the system without the benefits which they have by being able togs) to Warner Corporation for assistance. The concensus of the Board was to take this up at the next board meeting, after431.8 having had a chance to study the analysis report submitted by Bill Hardin. January 16, 1979 432 PARKS BOARD DISCUSSION / Youth Center Facilities 432.1 George Faucette, Vice -President of the Youth Center stated that the bond issue was for $450,000 and after expenses and one payment to the architect, the remainder is about $423,000. He explained that the first time they let bids no one bid the project and they let bids again in November and the low bidder at that time was $584,000. He noted that the wage rate would be on the national scale. He stated that the bid leaves the Youth Center $154,000 short of their goal. He said the Youth Center would like to see the City help in funding so they can go ahead with the proposed facility. Faucette stated that they until the middle of February to accept or reject the low bid. 432.2 Director Noland questioned what the dollar fee was per square foot and George Faucette said it would be about $32. Director Noland asked if they have looked at alternative building and Faucette said they have looked at the possibilities of scaling down the asthetics of the building, but do not feel that will reduce the cost very much. Wayne Jones said the $584,000 encompasses everything for the building, except air-conditioning for the gymnasium. Director Todd said hewould be inclined to work with the Youth Center on a matching basis. Faucette said he felt money could be raised in the community, but the problem would be the time in which they need to accept or reject the bid. 432.3 Mayor Malone said he felt realistically, they are looking at $185,000 needed. Malone said he would be inclined to look at taking $100,000 from the general fund reserve and asking the Parks Board to try to raise the remainder of the money. Faucette said the Parks Board would be pleased to try to raise the remainder of the money. 432.4 Director Henry, seconded by Colwell, moved that $100,000 be taken from the General Fund and given to the Parks Board for construction of the Youth Center facility. The recorded vote was: Ayes: Colwell, Hnery, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. REZONING / Sycamore Street / Helen Edmiston 432.5 The City Attorney read an ordinance rezoning property north of Sycamore Street between Birch and Chestnut Avenues, request submitted by Helen Edmiston. 432.6 Director Henry, seconded by Director Todd, moved the rules be suspended and the ordinance placed on second reading. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed and the ordinance was read the second time. 432.7 Director Henry, seconded by Colwell, moved the rules be further suspended and the ordinance placed on third and final reading. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed and the ordinance was read the third and final time. 432.8 There being no public opposition, the Mayor asked if the ordinance should pass. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the ordinance passed. ORDINANCE NO. 2494 APPEARS ON PAGE 19 OF ORDINANCE AND RESOLUTION BOOK VII. 1 1 January 19, 1979 433 REZONING / 15th Street / Vida Drake The City Attorney read an ordinance rezoning property located on the 433.1 north side of East Fifteenth Street halfway between Morningside Drive and South College Avenue, petition submitted by Vida Drake to rezone from R-2, Medium Density Residential to R-0, Residential Office District. Director Noland, seconded by Colwell, moved the rules be suspended and 433.2 the ordinance placed on second reading. 'The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed and the City Attorney read the ordinance for the second time. Director Henry, seconded by Colwell, moved the rules be further suspended 433,3 and the ordinance placed on third and final reading. The recorded vote was: N Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. (0 Nays: None. L() The Mayor declared the motion passed and the ordinance was read the final time. U There being no public opposition, the Mayor asked if the ordinance should 433.4 Q pass. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Q Nays: None. The Mayor declared the ordinance passed. 1 ORDINANCE N0. 2495 APPEARS ON PAGE 20 OF ORDINANCE AND RESOLUTION BOOK VII. REZONING APPEAL / N. Garland & Mt Comfort / Don Johnston The City Attorney explained that the rezoning appeal is asking that a 1.98 acre parcel of property located at the northeast corner of the intersection of North Garland Avenue and Mt. Comfort Road be rezoned from C-1, Neighborhood Commercial to C-2, Thoroughfare Commercial District, petition submitted by Donald W. Johnston. City Attorney McCord stated that the Planning Commission had denied the rezoning petition by an 8-1 vote, and the petitioner has asked that the City Board rezone the property as requested. Director Colwell stated that he would abstain from voting on this item because he has a direct and personal interest in said property. Richard Osborne said he would also abstain from voting on this item because he is a personal friend and legal counsel for Mr. Johnston. Osborne and Colwell left the meeting after disqualifying themselves from voting. Don Johnston explained that he has people interested in Oak Plaza buildings and the C-2 zoning would allow approximately 60 businesses which are not allowed in C-1 zoning. He said the objections heard in the Planning Commission meeting had to do with traffic and Johnston agreed that traffic is a problem. He said traffic is very heavy on Garland Street, approximately 12,000 cars per day and because of this, the property in question is not actually a neighborhood shopping center. He stated that some uses allowed in C-1 require more parking spaces than uses allowed in C-2. Johnston noted that the Ben Franklin Store located in the shopping center requires C-2 zoning but the store was already established before the 1970 zoning was adopted. Johnston noted that the character of the area has changed since the shopping center was built in 1964 and stated that a big objection to the C-2 zoning was because C-2 would allow liquor stores. Johnston said he already owns a piece of property on Garland which adjoins this property which is zoned C-2 and he previously applied for a liquor store in that location but had been turned down. He said if he did decide to apply for another liquor 433.5 433.6 433.7 January 16, 1979 4 3 license it would be for that property and not Oak Plaza. Director Lancaster 434.1 asked Mr. Johnston if he had made this same presentation to the Planning Commission and Mr. Johnston said the two presentations were basically the same. Lancaster noted that the Planning Commission had denied the rezoning by an 8-1 vote. 434.2 In answer to a question by Mayor Malone, Johnston said some stores are owned by individual property owners, such as Dillons, and the pharmacy. The Mayor acknowledged a number of signed petitions in opposition to the rezoning. 434.3 Linda Eichmann, representing Leverett School, said the parents and faculty are concerned about the traffic problem for the children who have to go through the shopping center to get home. She said there are about 30 children who go home this way and the school is very concerned about any increased traffic in that area. 434.4 Jim Parish said he didn't see how they could rezone half of a shopping center. 434.5 Jim Dawson, 1231 South Maxwell, noted that children have to come down the street and through the shopping center parking lot to get home, and any other type stores put in would cause more traffic and problems for children going through. He noted that it is almost impossible for children walking to get through the shopping center area because there are no sidewalks and children either have to walk in the streets or through the shopping center itself. 434.6 Parish stated that most of the traffic is generated by the University and not by the shopping center and C-2 uses would generate more traffic for the shopping center itself. 434.7 Director Noland stated that the use of the shopping center is basically a neighborhood shopping center. He said people living in the area are the ones who come in frequently to the shops. He said the use remains basically as neighborhood commercial as contrasted to thoroughfare commercial. Director Todd agreed with Director Noland. Todd noted that uses allowed in Use Unit 14 are allowed in C-2 and not C-1, and also noted that there are several other uses allowed such as auto sales, boat sales, etc. 434.8 Mayor Malone said the thing which bothers him is the lack of control of traffic within the shopping center. He said the center was developed at a time when the Planning Commission did not look at the points of ingress and egress, curb cuts, or the layout and design of the parking area. He said because of the way Mt. Comfort Road slants off there is the opportunity for cars to veer off at any point, and they do, and there is no design for how the traffic can go through, which is complicated by the fact there are no sidewalks or clearly marked places for pedestrians. He stated that the problem is really very acute when the children walkthrough. Malone said he personally could not vote for a rezoning to C-2 unless the owners of the shopping center could get together and work out some sort of traffic control within the center itself. He said it is to the point that the City cannot force the property owner to put the curbs in because the shopping center was approved before the City had those require- ments. Malone said the property owner would need to do this voluntarily in order to keep from having cars going in several different directions within the center. Malone said until the property owner does that, he feels the traffic situation is so bad that he could not vote to increase the zoning to C-2. 434.9 Director Henry said she agrees with the Mayor that the traffic situation at Oak Plaza is a "scary situation". She said she understands the petitioners position that he would like to have additional people,and with the situation of the school located nearby and "it's not fair" to have them go through the shopping center, however, she could not vote for the rezoning unless there was some plan brought infor the entire shopping center, with clearly marked pedestrian walkways. 434.10 Mayor Malone said he is confident that if a large scale development like what is presently there were submitted today to the Planning Commission it would be turned down immediately. January 16, 1979 435 Someone in the audience stated that all stores in the shopping center 435.1 had been rented for the last ten years and Mayor Malone said this was irrelevant. Malone also stated that liquor stores are not the issue in the rezoning. Director Lancaster questioned if Johnston has any vacancies in the center 435.2 at the present time and Johnston said he doesn't have, but he does have room to build another building, and four houses which he would like to be able to do more with. Lancaster said he feels there is a distinct difference in C-1 and C-2 zoning. The City Attorney noted that one factor which precipitated the rezoning 435.3 was a request for a framing shop, which use is not allowed in a C-1 zone. McCord said thePlanning Commission will be holding a public hearing to amend the Zoning Ordinance to add "framing shops" as a use allowed in a use unit permitted in C-1. Mayor Malone said he feels it might be good for the Planning Commission to look at the use units to see if there are new types of shops and activities which (0 should be allowed in a neighborhood commercial center. 10 Director Noland moved that the appeal be denied. Director Henry seconded 435.4 U the motion. The recorded vote was: Q Ayes: Henry, Lancaster, Todd, Noland, Malone. Nays: None. Q Abstain: Colwell and Osborne. The Mayor declared the motion passed. 1 LEASE AGREEMENT / Drake Field Mayor Malone opened discussion on a resolution authorizing a modification to an airport hay -removal rights lease. The City Attorney stated that the lessee had requested one change --that the type of crops he would be allowed to cultivate be changed from "soybeans" to "grain crops". McCord said he doesn't feel this would be any problem. McCord said the contract would also need to reflect that supervision would be by the Airport Manager. In response to a question by Todd, McCord explained that the lessee, if the lease were terminated, would have the right to harvest any planted crops. Director Lancaster questioned what type of guarantee the City would have that the property would be put back in grass. City Attorney McCord said the Board could require a performance bond. He noted that the lease agreement provides that Mike Price shall plant all land in which grain crops are grown in permanent improved pasture. In the alternative he shall pay lessor the cost of so planting said land, and if requested, the City has the authority to require a performance bond. Price stated that he knows he has a legal obliga- tion to plant the grass. He also noted that even if he did not replant the property in grass, the land would still be in better condition than it is at the present time because now the land is totally useless. City Manager Grimes said he would like the Soil Conservation Service to look at this property to see if it is suitable for cultivation. Grimes noted that the property is subject to periodic flooding. Grimes said he would like the proposed agreement to be subject to the Soil Conservation Service finding that the property is suitable for cultivation. City Attorney McCord suggested the Board specify an amount for the performance bond. Director Noland moved the lease agreement, last paragraph, be amended by saying "to guarantee performance of lessee's obligation hereunder, lessee shall post with lessor a performance bond acceptable to lessee's city attorney in the amount of $5,000." Director Henry seconded the motion. 435.5 435.6 435.7 435.8 435.9 435.9 435.10 January 16, 1979 436 436 1 Director Todd stated that the agreement snould be changed to reflect that the City has the choice of taking payment in lieu of planting grass and McCord suggested they change the agreement to read "at lessor's request lessee shall pay a specific amount." 436.2 Director Noland was concerned that the lessor may cultivate more than 100 acres and the $5,000 performance bond would not be adequate. He suggested they require a certain amount for each acre cultivated. 436.3 After considerable discussion, McCord suggested the amendment in the alternative section of the lease be changed to read "if lessor does not desire for lessee to so plant said land, lessor shall give lessee 90 days notice upon expiration of which lessee shall pay lessor the sum of $50 per acre for each acre cultivated. Lessee shall provide Lessor with a performance bond in the amount of $50 per acre for' each acre cultivated under this lease. This bond shall be provided annually." 436.4 Director Osborne, seconded by Henry, moved the above amendment suggested by the City Attorney. The recorded vote on the motion was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. 436.5 Director Todd, seconded by Noland, moved that the City shall have the option to accept $50 per acre for each acre cultivated, rather than having the land replanted. The recorded vote on this motion was: Ayes: Colwell,Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. 436.6 Director Todd, seconded by Henry, moved that the mayor and city clerk be authorized to execute a resolution to execute the amended lease agreement. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the resolution passed. BOARD COMMITTEES 436.7 Mayor Malone stated that he had passed out a list recommending Board members to serve on various Board committees. 436.8 Director Henry moved the mayor's recommendation be accepted and Osborne seconded the motion. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. 1978 ELECTRICAL CODE 436.9 City Attorney Jim McCord read an ordinance adopting the 1978 Electrical Code with the exception of ground fault interruptors in residential garages, and providing that the use of Type NM or BX cable shall be limited to residen- tial dwellings. 436.9 There was a discussion concerning ground fault in garages and Electrical Inspector Tom Tucker said the discussion he has had within the electrical trade is that the electricians see many things which could go wrong with 1 1 January 16, 1979 ground fault in the garage. He noted that several other towns which have already adopted the1978 Electrical Code have gone back and deleted ground fault in garages. City Manager Grimes expressed appreciation to Tom Tucker for the way he has worked out problems in the electrical code with electricians before presenting the electrical code to the City Board for adoption. City Attorney Jim McCord read the ordinance for the first time. Director Noland, seconded by Osborne, moved the rules be suspended and the ordinance be placed on second reading. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed and the City Attorney read the ordinance for the second time. Director Colwell moved that the rules be further suspended and the (Y) ordinance placed on third and final reading. The recorded vote was: 10 Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. V Nays: None. Cr The Mayor declared the motion passed and the City Attorney read the ordinance for the third and final time. Q There being no further discussion, the Mayor asked if the ordinance should pass. The recorded vote was: Ayes: Colwell,Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the ordinance passed. ORDINANCE N0. 2496 APPEARS ON PAGE 21 OF ORDINANCE AND RESOLUTION BOOK VII. ALLEY CLOSING / Between Mountain and Center Streets The City Attorney read an ordinance vacating an unopened 10 -foot alley between Mountain and Center Streets, running east from Church Avenue. Director Colwell, seconded by Noland, moved that the rules be suspended and the ordinance placed on second reading. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. Mayor Malone declared the motion passed and the City Attorney read the ordinance for the second time. Director Colwell, seconded by Henry, moved the rules be further suspended and the ordinance placed on third and final reading. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed and the ordinance was read the final time. There being no discussion, the Mayor asked if the ordinance should pass. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the ordinance passed. ORDINANCE N0. 2497 APPEARS ON PAGE 23 OF ORDINANCE AND RESOLUTION BOOK VII. ENGINEERING CONTRACT / W/S Line / Industrial Park The Mayor opened discussion on authorization for the Mayor and City Clerk to execute an engineering contract with McClelland Engineers Inc. for 437 437.1 437.2 437.3 437.4 437.5 437.6 437.7 437.8 437.9 437.10 438 438.1 438.2 438.3 January 19, 1979 improvements in the Fayetteville Industrial Park. Mayor Malone stated that the Board has already approved the water line and this agreement is for the engineering services. City Attorney McCord said he had reviewed the contract and it looked satisfactory to him. Following a short discussion, Director Lancaster moved that the resolution be approved. Director Noland seconded the motion. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the resolution passed. RESOLUTION NO. a --\q APPEARS ON PAGE 22 OF ORDINANCE AND RESOLUTION BOOK VII. AUDIT AGREEMENT / Gaddy & Co. 438.4 Mayor Malone opened discussion on a resolution authorizing the Mayor and City Clerk to execute an agreement for audit services with Gaddy & Company. 438.5 City Manager Grimes said the staff has reviewed the agreement and it is satisfactory to them. 438.6 Director Todd questioned why the contract is for four years and Grimes stated that previous auditors have been at the City for four-year periods. Todd questioned if previous contracts had been one four-year contract or four one-year contracts and the City Manager said he was not sure that in the past there was a written agreement. He said he felt it was understood the company would audit the records for four years. Director Todd stated that he feels the City should have the option of changing auditing firms if they wish. 438.7 Director Todd questioned if there was any discussion as to when the audits would be completed. Grimes said there was and Gaddy and Co. have said they would have the audits completed much sooner than in the past. 438.8 Director Osborne suggested a one-year contract with an option to renew for the following three years. 438.9 Director Malone said he would like to have something in the agreement stating that the audit will be delivered to the City by a certain date. Todd suggested they ask that the audit be delivered to the City Board within 180 days. 438.10 Director Todd moved that a one-year contract with an option for three years be approved and also that the audit be furnished to the City Board within 180 days. Todd questioned if this would mean public works and sanita- tion as well as the general fund audit would be delivered by July 1, 1979 and Grimes said this is the intent. 438.11 Director Noland seconded Todd's motion. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the resolution passed. RESOLUTION NO. 3-19 APPEARS ON PAGE 28 OF ORDINANCE AND RESOLUTION BOOK VII. MAP AGREEMENT / Sewer Facilities and Population Projections 438.12 Next the Board took up consideration of a resolution expressing Board agreement with the projections and sewer service areas as set forth on maps prepared by McGoodwin, Williams and Yates, Engineers. Jim Ulmer of MGY pointed out areas which he had added to the map since previously coming before the Board. He said these changes had been suggested by the City Engineer. He said they would like to have concurrence from the City Board showing that they approve of the plan. He noted that the projections 1 1 January 16, 1979 were the result of studies done by the Regional Planning Commission. Jim Ulmer stated that if funds do become available, it would be to the City's advantage to have established projections. Ulmer stated that EPA would want contiguous growth and pointed out if growth is not contiguous the per customer cost would be very high. Ulmer stated that there are federal regulations by which they must comply in making the projections. He noted that they could only design sewer facilities for 25% more industrial growth than the City presently has and they are going to approximately double the population estimates, which would double both residential and commercial sewage flow. Director Todd questioned if they could include the new industries which are now in the process of being built in the Industrial Park and MGY said he did not know. He said the industries may be required to commit themselves to a certain number of gallons of sewage a.ndif so, they could include N that in the study. He stated that it would be to the City's advantage to (Y) have those industries included in the study, because those industries could (S) take up the 25% which EPA will allow them for industrial growth for the next 0 20 years. QDirector Noland questioned what would happen if surrounding towns wanted to hook on to the Fayetteville system. Ulmer said they could include these cities in the Fayetteville study if the cities gave a letter of intent to Fayetteville that they would want to be in Fayetteville's plan. Ulmer said if Fayetteville expands to their proposed 20 year sewage flow capacity within 15 years, they would still be eligible for additional funds, if they can show there is a need. Director Noland moved that the resolution be approved. Director Lancaster seconded the motion. Director Osborne said he feels Fayetteville will grow a lot faster than the projection. Fb pointed out that the City's past growth has exceeded all projections, and the City's actual growth is nearly 5%. Jim Ulmer stated that the design would be there regardless of when the growth takes place. He said he feels Fayetteville could request additional money whenever they need it. The recorded vote on the resolution was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The mayor declared the motion passed. RESOLUTION 79-3A appears on page 28A of Ordinance and Resolution Book VII. TANDEM LOT / Easement to Meet Frontage Requirement Next the City Attorney read an ordinance specifying that a 25 -foot wide perpetual private easement will meet the minimum frontage requirement of the "tandem lot" ordinance. He pointed out that he had added an emergency clause to the ordinance. Following a brief discussion, Director Osborne, seconded by Henry, moved the rules be suspended and the ordinance be placed on second reading. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Ways: None. The Mayor declared the motion passed and the City Attorney read the ordinance for the second time. Director Henry, seconded by Todd, moved the rules be further suspended and the ordinance placed on third and final reading. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed and the ordinance was read the third and final time. 439 439.1 439.2 439.3 439.4 439.5 439.6 439.7 439.8 439.10 439.11 January 16, 1979 440.14 40 Mayor Malone asked if the ordinance should pass. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. Mayor Malone declared the ordinance passed. ORDINANCE N0. 2498 APPEARS ON PAGE 24 OF ORDINANCE AND RESOLUTION BOOK VII. BOARD/MANAGER RELATIONS 440.2 Next was a proposed resolution establishing the relationship between the Board of Directors and the City Manager. 440.3 City Manager Grimes stated that there is a Rules of Procedure set up last year and incorporated into that is the relationship between the Board of Directors and the City Manager. He said this would be distributed as an informational item in the next Board agenda, and the Board could amend the Rules of Procedure if they wished. 1979 BUDGET 440.4 The Mayor opened discussion on the adoption of the 1979 General Fund, Public Works Fund, Sanitation Fund, and Special and Restricted Funds and Revenue Sharing Budgets. 440.5 Director Todd said he felt they should incorporate the $100,000 which the City has pledged to help build the Youth Center facility and Budget Officer Sturman Mackey suggested this go into the capital outlay account. 440.6 Director Todd questioned if anyone had checked on the street lighting and Mackey said in previous years it was decided street lighting should go into the public works fund. 440.7 Director Malone pointed out that the streets listed in the budget will be reviewed by the street committee who will then make a recommendation for street improvement. 440.8 Director Todd moved that the budget for 1979 be approved. Director Henry seconded the motion. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. RESOLUTIONS NO. 4-79 and 5-79 APPEAR ON PAGES 31 and 32 OF ORD. AND RES. BOOK VII. COMMENDATION OF FORMER MAYOR LANCASTER 440.9 Mayor Malone expressed the appreciation of the Board to former Mayor Ernest Lancaster. Malone said Lancaster had done "an outstanding job as mayor over the last two years". Director'Lancaster said the Board had been very enjoyable to work with during the past two years. SPECIAL MEETING 440.10 City Manager Grimes said Norris Industries has asked that the Board have a special meeting January 30, at 4:00, if possible to consider authorization of Act 9 bonds and a lease and trust indenture. 440.11 Director Henry.moved that the Board ,of Directors hold a special meeting January 30, at 4:00 p.m. to consider an ordinance authorizing issuance of Act 9 industrial bonds for Norris Industries, and execution of a lease and trust indenture. 440.12 After discussion, Director Henry amended her motion to reflect that the special meeting would be for the following purposes: 1) consideration of Act 9 Bonds for Norris Industries and execution of a lease agreement and trust inden- ture; 2) to consider the rate increase requested by Warner Cable; 3) to hear the proposed Community Development Budgets for 1979, 1980, and 1981 (action to be taken at a later date), and 4) to consider a request by Fletcher Street residents that the Fletcher Street extension be deleted from the Master Street Plan. Director Osborne seconded the amended motion. The recorded vote was: 1 1 N U a Q 1 January 16, 1979 Ayes: Colwell, Henry, Nays: None. The Mayor declared the Lancaster, Todd, Noland, Osborne, Malone. motion passed. TIME CHANGE FOR FEBRUARY MEETINGS Director Osborne, seconded by Lancaster, moved that the meeting time for the February 6 regular meeting of the Board of Directors be changed to 4:00 P.M. with the meeting to adjourn no later than 7:00 P.M. Director Lancaster seconded the motion. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. Director Osborne, seconded by Colwell, moved the meeting time for the February 20 meeting be changed to 4:00 P.M. with the meeting to adjourn no later than 7:00 P.M. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. OTHER BUSINESS City Manager Don Grimes said the second round of bids for the airport project for streets, parking areas, etc. will be held on February 8, at 2:00. 441 441.1 441.2 441.3 441.4 CARLOS HILL LAWSUIT Mayor Malone noted that the City had gotten a determination on the 441.5 Carlos Hill lawsuit. City Attorney Jim McCord said the court held that the City had the authority to condemn if it was for a public purpose, but that there was no showing of necessity in this case. McCord said the attorney of record on the lawsuit is recommending that the case be_appealed. Lamar Pettus, attorney for Carlos Hill, asked that the Board not vote to appeal the determination at this meeting. He asked that they try first to negotiate with the property owner. He said the Hill's have assured him they are willing to negotiate. He also noted that the City has never offered anything more than the appraised value of the property. Pettus further stated that if the Board votes to appeal the decision at this meeting, they are fore- going any further negotiations. After discussion, Pettus said he would like Richard Osborne to disqualify 441.7 himself from voting on the appeal because of his involvement in the present condemnation proceedings, and Directors Todd, Noland, Henry, and Malone disqualify themselves because of their involvement in the University. Richard Osborne noted that it would be easy to release a notice of appeal 441.8 if a settlement is reached. In response to a question by Director Noland, City Attorney McCord said he didn't think those Board members employed by the University would have to dis- qualify themselves because they have no financial interest in the Continuing Education Center. Todd and Malone agreed that they did not personally feel they need to disqualify themselves. Mayor Malone said he would be available to try to negotiate on the settlement, and with the help of Pettus, would appoint a committee from the•Board to help in the negotiations. Richard Osborne said he did not feel he should disqualify himself from voting on the appeal question. 441.6 ' January 16, 1979 442.442 Richard Osborne made a motion that the Mayor try to negotiate a settlement as soon as possible, and that W.B. Putman ask the Supreme Court try to handle the appeal as expediously as possible because of the public interest in the matter. Director Henry seconded the motion. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. 442.2 Director Lancaster, seconded by Colwell, made a motion that the City file an appeal on the case. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. 442.3 The City Attorney noted that the appraisal was made a couple of years ago and would need to be adjusted. HYLAND PARK 442.4 The City Attorney stated that the Board had indicated in July that they would deed themedian island in Hyland Park Subdivision back to the property owner's association. He said they would need to pass a resolution authorizing the mayor and city clerk to execute the deed. 442.5 Director Henry, seconded by Lancaster, moved that the ownership of the median at Hyland Park be reverted back to the Hyland Park Homeowner's Association. The recorded vote was: Ayes: Colwell, Henry, Lancaster, Todd, Noland, Osborne, Malone. Nays: None. The Mayor declared the motion passed. RESOLUTION NO. 6-79 APPEARS ON PAGE 33 OF ORDINANCE AND RESOLUTION BOOK VII. The meeting adjourned at 12:07 A.M. APPROVED: David Malone, Mayor ATTEST: Angie Medlock, City Clerk