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HomeMy WebLinkAbout1980-09-16 MinutesMINUTES OF A BOARD OF DIRECTORS MEETING A meeting of the Board of Directors was held on Tuesday, September 16, 1980, at 7:30 p.m. in the Board of Directors Room, City Administration Building, Fayetteville, Arkansas. PRESENT: Directors Sharp, Todd, Colwell, Henry, Lancaster, Noland, Osborne; City Attorney McCord, City Manager Grimes, Administrative Assistant McWethy, and City Clerk Koettel. ABSENT: None OTHERS PRESENT: Members of the audience and representatives of the news media; Fayetteville Open Channel 449 O CALL TO ORDER 449.1 COFollowing a moment of respectful silence and roll call, the Mayor called the meeting to order. Q PUBLIC HEARING/ACT 9 BONDS/BALDWIN PIANO AND ORGAN PLANT SITE 449.2 Mayor Todd announced that this item would be tabled at the request of the Baldwin Company and will appear on a later agenda. LEASE AGREEMENT/BALDWIN PIANO AND ORGAN COMPANY 449.3 Mayor Todd announced that this item would be tabled at the request of the Baldwin Company and will appear on a later agenda. PUBLIC HEARING/REVISED REVENUE SHARING BUDGET 449.4 The Mayor informed the audience and board of the following items pertaining to the Public Hearing to be held on the revised revenue sharing budget: 1. The purpose is to provide the citizens with an opportunity to comment on the proposed budget. 2. The hearing must be conducted by the chief executive officer and the governing body of the local government. 3. A recorder must be present to take the minutes of the hearing. If no oral or written comments are received before or during the hearing, the minutes must reflect that a hearing was held and no written or oral comments were received. A public hearing was conducted by Mayor Todd on the proposed revised revenue sharing budget and no written or oral comments were received. The Mayor explained that this was a revision of an earlier revenue sharing budget and was worked out jointly by the city staff and by the Department of Local Services in Little Rock. 1 449.5 449.6 Director Osborne, seconded by Noland, moved to approve the revised revenue sharing 449.7 budget and the motion passed unanimously. RESOLUTION NO. 93_80 APPEARS ON PAGE J 3 OF ORDINANCE AND RESOLUTION BOOK X . 9-16-80 450 450.1 Mayor Todd stated that there were certain revisions in the agenda to the General Fund and to the Public Works budget and that City Finance Director, Scott Linebaugh, and Assistant Finance Director, David Hausam were present to answer any questions concerning these revisions. Mr. Linebaugh pointed out that the water and sewer revisions would be incorporated into the 1980-81 budget, but a revision would have to be made on the airport fund. 450.2 Director Henry, seconded by Osborne, moved to adopt the changes to the General Fund and to the Public Works budget. The motion passed unanimously. RESOLUTION NO. 94_80 APPEARS ON PAGE 395 OF ORDINANCE AND RESOLUTION BOOK )( . BICYCLE GRANT/FEDERAL HIGHWAY ADMINISTRATION 450.3 Mayor Todd introduced a resolution authorizing the board to execute a memorandum of understanding of the documents pertaining to the bicycle grant of $15,000 to be matched with $5000 from the city. The grant was from the Federal Highway Administration under Section 141(c) of the Surface Transportation Act of 1978. The money would be used to promote bicycling and bicycling safety in the City of Fayetteville. The city would be responsible for all costs above the amount granted. 450.4 Director Noland pointed out that this was an example of individuals bringing an idea to the Board, and with some help from the city staff and other people this grant proposal was written and the grant received. He stated this will certainly help the bicyclers and other people such as joggers, and he wanted to commend the persons responsible. 450.5 Director Colwell asked if the city's matching share on this could be in-kind work. Mayor Todd answered that the commitment had been for $2000 cash and the other would be in-kind work. 450.6 McCord stated that if the Board approved the resolution to execute the memorandum of understanding, a budget adjustment would be required reflecting an increase in the Public Works Fund Budget to show additional state turnback revenues of $5000 with the understanding that $3000 would be in-kind contributions. 450.7 Director Osborne, seconded by Henry, moved to adopt the resolution authorizing the Board to execute the memorandum of understanding and the motion passed unanimously. RESOLUTION NO. 95-80 APPEARS ON PAGE 3 9 $ OF ORDINANCE AND RESOLUTION BOOK X . 450.8 Director Henry, seconded by Colwell, moved a resolution be passed to reflect the budget adjustment necessary to increase the Public Works Fund Budget. Upon roll call the motion passed unanimously. RESOLUTION NO. 96-80 APPEARS ON PAGE 'f -Q 3 OF ORDINANCE AND RESOLUTION BOOK . MT. OLIVE WATER PURCHASE CONTRACT 450.9 The Mayor presented a resolution authorizing the execution of a contract by which the City of Fayetteville will provide water to the Mount Olive Water Association. 450.10 Director Noland stated that it was his impression that the Mt. Olive Water Association wanted to expedite the contract as soon as possible. However, he said it had been brought up earlier at a Water & Sewer Committee meeting that there is a 1.5 acre provision in the present contract and there is a question of how to protect against multiple housing units, motels, and things of this source. Director Noland said is was felt that 1.5 acres would certainly be adequate for a resident, but there is nothing to protect against large apartment complexes and such. He asked the Board if they would like to table this item and think about the project. 1 1 9-16-80 451 City Manager Grimes stated that he had not been in touch with Mt. Olive 451.1 Water Association concerning this problem,but that he envisioned most people getting their FHA approval soon after this meeting. He said that if the item is tabled, then a special session might be requested since the next regularly scheduled meeting is three weeks away. Director Colwell pointed out that paragraph 6 of the contract (in agenda) reads 451.2 as follows: "New on-site systems built on lots platted as of date of this contract shall be deemed adequate if the system is approved by the Arkansas State Health Department." Colwell pointed out that water could be furnished to these lots already platted if 451.3 they had been approved by the Arkansas State Department, even though they may not Q) meet the 1.5 acre requirement. He questioned how many lots are already platted and how 451.4 O many unplatted lots are proposed. CODirector Noland informed the audience that this was an area southeast of Fayetteville and would not be covered by the city's ordinances. 451.5 0 City Manager Grimes suggested going ahead with the contract and requiring 1.5 acres 451.6 Q for each single family dwelling unit with an additional .5 acre for each additional unit. Q Director Colwell asked City Attorney McCord if a general clause could be included 451.7 stating that since no provisions were made for multiple family housing, that board approval would be required for any multiple housing development. McCord answered that a provision could be included stating that water service 451.8 would not be provided to multifamily dwellings without the express approval of the Board of Directors. In answer to Director's Henry s questions of how this could be enforced, since it is outside the city, McCord stated it would be a matter of contract. McCord told the board that a standard should be established for determining the basis of approval or denial.451.9 Director Noland stated that it had been suggested that the applying property owner sign an affidavit stating he did actually have 1.5 acres and McCord said he could draft the language to require an affidavit with deed attached reflecting that a minimum 451.10 acreage requirement had been met. Noland asked if the contract could be written so that the 1.5 acre requirement 451.11 would apply only to single family residences, and that any multiple family units would have to be negotiated on a case to case basis. McCord said that this would protect the city and it would not obligate the city 451.12 to provide water service to any development other than single family development, unless the city had expressly agreed to do so. McCord stated that if the board wanted to proceed with the contract tonight, he felt the staff could arrange the language to reflect the board's desire, which was to insure that water service not be provided to anything other than single family dwellings with 1.5 acre minimum requirement without the express approval of the city board. However, if the board wanted to approve the language, then he suggested the item be tabled to allow this. An alternative was suggested by McCord of imposing the minimum development 451.13 requirement of some additional acreage per additional family unit, and provide that the city board would have the authority to approve a lesser requirement upon proof that adequate provision and safeguards to public health had been made. Director Henry agreed with this suggestion. After some discussion to determine how much additional acreage would be sufficient, Director Henry, seconded by Colwell, moved that the contract be executed with the 451.14 proposed changes in paragraph 6 that in respect to multifamily residential development the land increments above 1.5 acres per unit would be .75 acres per dwelling unit, and that if proper standards were met the city would have the right to relieve that requirement on mulitfamily development. Also, the contract should state that all development other than agricultural and residential would require approval by the city board. There being no further discussion, the motion passed unanimously. 451.15 RESOLUTION NO. 97-80 APPEARS ON PAGE idoS OF ORDINANCE AND RESOLUTION BOOK X 9-16-80 452 CHANGE ORDER -WATER MAIN CONSTRUCTION/SWEETSER CONTRACT 452.1 The Mayor introduced a resolution authorizing the execution of a change order in the contract with Sweetser Construction Company to provide for the completion of the 24 -in. water main loop for the western portion of the City of Fayetteville. 452.2 Director Noland stated that this additional 3300 feet would complete the loop around the west side of Fayetteville and increase water pressure to residents in that area, as well as increase the pressure for fire fighting purposes. 452.3 Director Noland, seconded by Henry, moved that the change order with Sweetser Construction Company be executed. 452.4 Mayor Todd asked if the cost of additional right-of-way was included. City Manager Grimes answered that the cost of $130,000 did not include additional right- of-way expenses, but that these expenses were not expected to be much. The $130,000 would be a loan from the General Fund and is incorporated into the General Fund Revision. 452.5 There being no further discussion, the roll was called and the motion passed unanimously. RESOLUTION NO. 98-BOAPPEARS ON PAGE If O1 IN ORDINANCE AND RESOLUTION BOOK . AIRPORT LIMOUSINE FEES 452.6 City Attorney McCord read an ordinance amending Article III of Chapter 20 of the Fayetteville Code of Ordinances to amend airport limousine service regulations. 452.7 Director Osborne, seconded by Henry, moved that the rules be suspended and the ordinance be placed on second reading. The motion passed unanimously and the City Attorney read the ordinance for the second time. 452.8 Director Osborne, seconded by Henry, moved that the rules be further suspended and the ordinance be placed on the third and final reading. The motion passed unanimously and the City Attorney read the ordinance for the third and final time. 452.9 Upon roll call, the ordinance passed unanimously. ORDINANCE 2660 APPEARS ON PAGE 4,5 1F ORDINANCE AND RESOLUTION BOOK ZX . CD PROJECT CHANGE ORDER/PAVING 7th ST. FROM CHURCH TO LOCUST/MCCLINTON ANCHOR CONSTRUCTION 452.10 The Mayor introduced a CD Project change order in the amount of $20,935.25 to add the paving of 7th Street from Church to Locust back into the contract with McClinton -Anchor Construction Company. 452.11 Rick Mason of Community Development stated that this was originally bid but was taken out because of lack of sufficient funds and was now being put back in with no change in the price. 452.12 Director Osborne, seconded by Colwell, moved to approve this CD change order and the motion passed unanimously. RESOLUTION NO. 99-80 APPEARS ON PAGE 1.09 IN ORDINANCE AND RESOLUTION BOOK ,( AIRPORT RESTAURANT/WARD-POWER MANAGEMENT,INC. 452.13 City Attorney McCord told the board that the lease was with Ward -Power Management Inc. The lease agreement would incorporate all bid specifications and would contain a 30 -day cancellation clause. Rent would be 8% of gross revenues, excluding any revenue from beer and wine in the event they get a permit, and the term of the lease would be one year with a review to take place on January 1, 1981. McCord said if the lease met the approval of the board a resolution authorizing the lease would be in order. 1 1 9-16-80 453 City Manager Grimes stated that he had met with the airport management people, 453.1 I Mike Ward, and John Power about a week ago. They informed him that a McDonald's franchise would not be put in because there was not sufficient volume. However, they did indicate they wanted to operate privately. Grimes pointed out that they have much more flexibility this way. They can sell newspapers, chewing gum, and other things a passenger might ask for that a McDonalds cannot handle. McCord advised the board that the total square footage was 1,144.5 feet. 453.2 Director Sharp asked if the city would readvertise since the rate had been changed from the original $12.00 per sq. ft. He stated that the $12.00 per sq. ft. might have scared off some people who would like to reconsider since there is now no base at al1.453.3 Director Henry stated that she would be in favor of readvertising except that 453.4 Ward -Power has put down flooring and made some improvements. a) Director Sharp said he felt they definitely needed to readvertise January 1, 1981.453.5 0 City Manager Grimes stated that if they were to readvertise then they should 453.6 00 do so immediately in all fairness to Ward -Power. Director Colwell pointed out that the board was in a position to be criticized 453.7 0 because the people who were scared away by the $12.00 per sq. ft. never were informed Q about the possibility of getting in for 8% of gross. He said there may not be Q anyone willing to pay the 8%, but the fact should be publicized so theycannot come back and say they did not know or did not have a chance. Director Henry asked if they would readvertise at 8% gross. 453.8 Director Sharp suggested inviting proposals on 1,144.5 sq. feet. 453.9 Mayor Todd asked if the $12.00 per sq. ft. was in the specifications the second 453.10 time it was bid, or dild the city just invite proposals. City Manager asked if the city should pay Ward -Power for the improvements they 453.11 had made. IIIDirector Osborne stated he felt the city should pay for these improvements. 453.12 Director Henry, seconded by Osborne, moved that the item be tabled until the 453.13 board found out whether or not proposals were invited the second time the restaurant was bid, or if the $12.00 per sq. ft. was required. Upon roll cath the motion passed unanimously and the item was tabled. 453.14 CEMS LITIGATION Director Colwell stated that there has been a law suit filed against the 453.15 quorum court on the legality of the ordinance which levied an assessment for the purpose of providing ambulance service for six school districts. The plaintiffs contend the ordinance is unconstitutional on the basis that the assessment is not county wide, and that they cannot assess only a portion of the county. Director Colwell pointed out that the situation in Washington County is unique in that there are only six school districts without ambulance service. The time table was such that the board had only approximately 60 days to get an ambulance service going from the time it was to be removed from the hospital. This was approved at a referendum by approximately two to one in the entire six school district area, with Fayetteville having the highest percentage. Director Colwell stated he felt an intervention should be filed, if the judge would allow, to provide the continuance of ambulance service in Fayetteville and the other communities. Director Colwell stated that the plaintiffs are concerned with the constitutionality of the ordinance, but that the outcome of this case determines whether Fayetteville does or does not have ambulance service. Director Lancaster stated that this is a county ordinance. He said the people 453.16 have voted and the funds are available so why should the'city get involved. Director Colwell stated that this intervention would be similar to a "friend 453.17 of the court" suit that would stress our concern for the citizens of Fayetteville to the judge. City Attorney McCord stated that if the court finds the party petitioning for 453.18 intervention does have an interest that is affected by the litigation and that the 1 9-16-80 454 interest might be impaired by the outcome of the litigation the court will permit intervention. McCord said that in this case the CMS Board has already petitioned to intervene but no ruling on the petition of intervention has been made at this date. McCord said that Fayetteville has an interest in the outcome of these litigations and the city has intervened in other types of litigation in the past. 454.1 Director Osborne stated that the city has at least two possible interests in the outcome of this case: 1. The board members are the representatives of the people of this city who have overwhelmingly approved this levy. 2. Somebody is going to have to provide some ambulance service, and the citizens will look to the board to come up with an ambulance service if the present one is discontinued. 454.2 Director Henry stated that she felt the board had an obligation to intervene. 454.3 Director Colwell, seconded by Henry, moved that the city request the opportunity to intervene in the litigation. 454.4 After no further discussion, the motion passed unanimously. Y'ALL COME BACK SALOON/NORTH COLLEGE STREET 454.5 Director Lancaster asked City Manager Grimes if he had received any objections to the Y'all Come Back Saloon going in on North College Street. City Manager Grimes said he had received approximately thirty phone calls ob0ecting to the saloon. He said petitions had been submitted to the Alcohol Beverage Control Director by residents of the area expressing their opposition. City Manager Grimes stated that the zoning is proper for this type of use, but there is a lot of neighborhood opposition. He said that the board had determined in the past that when the zoning was proper they would not get involved unless there were some other extenuating circumstances. SEWER PLANT LOCATION 454.6 A member of the audience asked what progress was being made on the sewer plant location. Director Noland stated that various alternatives were still being considered. He advised that the Citizens Advisory Committee has made some suggestions to the consulting engineers and they were obtaining additional information. When this information is available then the Citizens Advisory Committee will be brought back together and will make a recommendation to the Board of Directors. The board must then decide whether or rot to accept the recommendation or decide upon another. 454.7 The member of the audience asked what degree of treatment would be used. Director Noland answered that each of the ten different structural alternatives have different degrees of treatment. All would be secondary and some would be advanced secondary. Director Noland stated that none of the ten alternatives at this point included tertiary treatment. 454.8 Director Noland stated that he expected that a recommendation would have to be made by the Board of Directors by the end of the year. WATER SEWER FUNDING RESOLUTION 454.9 Director Noland, seconded by Lancaster, moved that an additional 10% continuing expenditure of the 1979-80 budget be allowed to the Water and Sewer Department pending final approval of the budget for 1980-81. The motion passed unanimously upon roll call. RESOLUTION 100-80 APPEARS ON PAGE Li. In OF ORIDNANCE AND RESOLUTION BOOK ?( 1 1 1 L 9-16-80 455 AIRPORT RESTAURANT/WARD-POWER'l'MANAGEMENT, INC. City Manager Grimes stated that he had checked the last specifications which were used in advertising the restaurant space in the airport terminal and the $12.00 per sq. ft. was required. Therefore, he recommended that the city readvertise. Director Henry, seconded by Sharp, moved that the item be brought off the table and that the city readvertise the space. Upon roll call the motion passed unanimously. 455.1 455.2 AIRPORT COMMITTEE MEETING City Manager Grimes reported that an airport committee meeting was held 455.3 0) Tuesday, September 16. The committee asked the staff to prepare a proposed 0 contract of extension with Skyways. The attorney for Continental Ozarks wanted CO to confer with this client before proceeding with their contract. PARKING GARAGE/POWELL-SATTERFIELD City Attorney McCord stated that he had been touch with Mr. Tom Pate of 455.4 Powell & Satterfield, Inc. and he indicated that they had contacted two parking garage corporations who operate parking garages full time,and they indicated an interest in becoming involved with the project of a parking garage to service the CEC. They stated their willingness to make a visit to Fayetteville and meet with representatives of the city and representatives of Powell & Satterfield. Powell and Satterfield want a commitment from the Board of Directors that in the event a bond package is developed and the package is sold and bonds are issued they will be used as underwriters on the project. McCord stated that he has a very informal letter agreement stating that they will be used as underwriters in the event they put together a bond package and the bonds are sold. Director Osborne, seconded by Director Henry, moved to enter into the informal 455.5 agreement wiith Powell & Satterfield. Upon roll call the motion passed unanimously. i RESOLUTION NO. 101-80 APPEARS ON PAGE %- ` IN ORDINANCE AND RESOLUTION BOOK X • PUBLIC FACILITIES BOARD MEETING City Attorney McCord stated that the Public Facilities Board met on Tuesday, 455.6 September 16th and there was discussion regarding the possibility of a second housing bond issue. McCord pointed out that the possibility is very remote because of the adverse bond market at this time. The Public Facilities Board discussed the possibility of whether or not neighborhood municipalities would be allowed to participate in the program. The Public Facilities Board has been approached by two neighboring communities. They indicated a willingness to allow their participation subject to city board approval. Director Colwell asked if the two communities were Lincoln and Prairie Grove 455.7 and City Attorney McCord stated that those two communities had contacted the Public Facilities Board. Director Noland stated that he felt it would be satisfactory to allow their 455.8 participation. Mayor Todd indicated two indirect costs to the City of Fayetteville: 455.9 1. The potential liability of defaults 2. Lack of control over development in the areas. McCord stated that the loans must be insured twice and the risk of default 455.10 would be very nominal. 9-16-80 456 456.1 Lancaster asked if this would preclude Fayetteville from ever getting more bond issues or affect the marketability. McCord answered that he did not feel it would and that documents could be drawn to possibly guard against the concerns expressed by the Mayor by limiting loans to existing houses which are on a public sewer system, or new houses to be connected to the public sewer system. Mayor Todd stated that with these restrictions he would have no objections. 456.2 After some discussion, the consensus of the board was to allow participation with the above restrictions. BICYCLE TASK FORCE 456.3 Mayor Todd, seconded by Director Osborne, moved that a bicycling task force be organized. Upon roll call the motion passed unanimously. MINUTES 456.4 The minutes of the 9-2-80 meeting were approved as submitted. ADJOURNMENT 456.5 There being no further business, the meeting adjourned at 9:15 p.m. 1