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HomeMy WebLinkAbout1979-10-08 Minutes1 175 MINUTES OF A SPECIAL MEETING OF THE BOARD A special meeting of the Board of Directors was held on Monday, October 8, 1979, at 11:50 A.M. in the Directors Room, City Administration Building, Fayetteville, Arkansas. PRESENT: Mayor David Malone, Directors Phil Colwell, Ann Henry, Richard Osborne, Paul Noland, and Ernest Lancaster; City Manager Don Grimes, City Attorney Jim McCord, City Clerk Angie Medlock, and Administrative Assistant David McWethy. ABSENT: Director John Todd. 01 0 OTHERS PRESENT: Members of the audience and representatives of the news media. 03 CALL TO ORDER The mayor called the special meeting to order at 11:50 A.M. for the purpose 175.1 Q of authorizing the mayor and city clerk to execute a lease agreement for the Continuing Education Center, authorizing execution of a construction contract for the Continuing Education Center, and authorizing execution of a bond purchase agreement. The mayor said he had distributed an estimated-Iproject cost list to the Board 175.2 of Directors and briefly explained differences in the list from what had been presented previously. He acknowledged that Boyd London, representing First South- west Company, had also submitted a Summary of Estimated Pledged Income from Debt Service Requirements and Debt Service Coverages. Mayor Malone explained that the price of $3,137,492 had been arrived at by 175.3 omitting the sixth floor; changing the operable walls; making some changes in the mechanical, plumbing, and electrical, and deleting Alternates #2 (stucco facia) and #11 (minor sidewalk repairs) and leaving the steel structure as designed. Malone said this steel structure addition would allow the eventual addition of the sixth floor if this became desirable. Boyd London commented that the City has been running about two years ahead 175.4 of the Hotel, Motel, Restaurant tax projections. He said the University's lease agreement is fora flat rate, and the net parking revenues shown are those which the City will derive from operation of the parking lots being purchased and built in conjunction with the project. London said he is very satisfied with the rate of interest offered by the underwriters. Malone stated that the reserve fund is basically the same as presented at 175.6 the Board meeting of September 11. He said they would probably have to offer the underwriters a 4% discount. London explained that the average interest rate would be 7 7/8% on $4,400,000. Malone said no amount was projected for Hotel, Motel, Restaurant proceeds 175.7 from August to December at the previous Board meeting, so they should be about $75,000 better off, and the entire project seems to be slightly better off than originally anticipated. Malone said the lease agreement with the University had been distributed to 175.8 the directors about two week ago. He said they had been able to get the wording the City wanted on the option provision to allow the University to purchase the facility at the end of the term. Malone stated that the option provision provides that when the City general fund and local tax funds used in the building have been paid back to the City, the City would give the University the building for $10. 10-J-79 176 176.1 Mayor Malone said the University has asked for two letters from the City -- one which would confirm that the City of Fayetteville will not seek to impose its building codes and ordinances on other facilities of the University other than the Continuing Education Center, and also a letter of committment from the City that the City will enforce performance bonds against the contractors if there are any difficulties encountered in the project. Malone pointed out that the City does plan to have performance bonds submitted. 176.2 The mayor stated that the lease is to be signed by the University of Arkansas and approved by the State Building Services. 176.3 Director Henry moved to authorize the mayor and city clerk to execute the lease agreement withthe University of Arkansas. Director Lancaster seconded the motion. The recorded vote was: Ayes: Henry, Lancaster, Noland, Osborne, Malone, Colwell. Nays: None. Absent: Todd. The mayor declared the resolution passed. RESOLUTION NO. 93-79 APPEARS ON PAGE 13 OF ORDINANCE AND RESOLUTION BOOK VIII. 176.4 Ernie Butler and Charlie Crow, present representing Stephens Inc. gave the city manager a good faith check for 2% of the bond issue. The agreement would allow the City to average 7 7/8% on the $4,400,000 in bonds, although $4,475,000 in bonds would be sold. 176.5 Director Lancaster moved to authorize the mayor and city clerk to execute a bond purchase agreement with Stephens Inc. Director Noland seconded the motion. The recorded vote was: Ayes: Henry, Lancaster, Noland, Osborne, Malone, Colwell. Nays: None. Absent: Todd. The mayor declared the resolution passed. RESOLUTION NO. 94-79 APPEARS ON PAGE 59 OF ORDINANCE AND RESOLUTION BOOK VIII. 176.6 Mayor Malone then moved that the mayor and city clerk be authorized to execute a construction contract, including all deductive alternates, with Brennan -Boyd Con- struction Company. Malone said later change orders would be presented to add back the deductive alternates except #2 and #11. Other change orders would eliminate the sixth floor and make minor changes in the mechanical, plumbing, and electrical specifications and operable wall specifications. Malone further stipulated that the construction contract would not be signed until the lease agreement with the University is signed. Director Osborne seconded the motion. The recorded vote was: Ayes: Henry, Lancaster, Noland, Osborne, Malone, Colwell. Nays: None. Absent: Todd. The mayor declared the resolution passed. RESOLUTION NO. 95-79 APPEARS ON PAGE 65 OF ORDINANCE AND RESOLUTION BOOK VIII. 176.7 Mayor Malone explained that the approximately $5,000 for fire insurance would be taken from the HMR tax receipts and they will add this back on to the option price at the end of the term. 176.8 There being no further business for consideration, the mayor declared the meeting adjourned at 12:15 P.M, APPROVED: ATTEST: 1 1