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HomeMy WebLinkAbout1982-12-05 MinutesMINUTES OF AN ANNUAL BOARD RETREAT The Fayetteville City Board of Directors met on Sunday, December 5, 1982, at 9:00 a.m., at the Mt. Kessler Inn, Fayetteville, Arkansas, to discuss long-term goals for the City of Fayetteville. PRESENT: Mayor Noland, Directors Lancaster, Todd, Osborne, Sharp, Bunpass, 321.2 Johnson, Director -Elect Orton, City Manager Grimes, Assistant City Manager McWethy, City Attorney McCord, City Clerk Kelly, and members of the press and audience. 321 321.1 Also present at different intervals: Community Development Director Carlisle, Finance Director Linebaugh, Assistant Finance Director Hausam, CO Policeman Gerald Bradley, Firemen Dill and Mullins, and citizens Mr. and CO Its. Gary Kahanak and Mr. Bob Brandon. N CALL TO ORDER 0 CO Mayor Noland called the meeting to order at 9.00 a.m. SEWAGE Mayor Noland introduced for discussion a review of the current status of sewage treatment plans, associated rate increases, and alternatives. Mayor Noland referred to a list of sewer rates in the general area of Fayetteville, as of September, 1982, which indicate the relationship of Fayetteville to other cities. He added that these projected sewer rates by Black & Veatch, Consultants, were predicated on the basis that Fayetteville would have to borrow $16 million to complete the sewer treatment plant and the system. Finance Director Linebaugh reiterated that the Black & Veatch cost projections seem to indicate a fair share distri- bution among residents and commercial users. Director Todd stated that the Black & Veatch rates had been on a cost basis which incorporates water costs, but these projections also include line costs However, he added, the Campbell Soup plant, obviously, doesn't take nearly as much line as that used throughout the town. Thus there is a lower per gallon cost for higher users than lower users. Director Osborne reiterated his point that Campbell Soup, which produces over 50% of the nutrient load to the present sewage plant, and approximately 1/3 of the total flow to the plant, would benefit from the upgrade of our sewage trearment and disposal disproportionately, and, he added, at an astronomical cost to the community as a whole. Director Noland stated that he had toured the Campbell Soup plant and they have now on-line a settling tank which collects most of the effluent they produce which is loaded with grease and they feel that this settling tank would reduce their BOD and their suspended solids by 50%. He added, however, that he would like the opinion of the City Engineer regarding these projections. 321.3 321.4 321.5 321.6 321.7 321.8 321.9 322 There was sane discussion about the possible use of sales tax uuuey to augment these sewage rates. It was determined that this 322.1 proposal could be taken to a vote of the people. Assistant City Manager McWethy stated that the Annual Report to the People had contained a questionnaire on this issue and the response from the people could be expected sometime after December 20th. 322.2 Director Todd stated that with regard to subsidizing the plant by sales tax proceeds, he felt that the subsidy should be specifically assigned to the residential class of customer, and thereby reduce their rates. 322.3 City Attorney McCord stated that at the request of the City Manager he had researched the issue of whether the City could levy a City Sales Tax, in addition to the County Sales Tax, which is in effect. There is no statutory prohibition, which would preclude the Board from having an election on that issue. He added that he felt enabling legislation would be needed to authorize the City to pledge local sales tax revenues toward debt service requirements on bonds. There was same difference of opinion on this issue 322.4 Director Bumpass was not in agreement on the vote going to the people concerning a lc sales tax. He felt that lessening of the impart of the rate on the coumunity could be accor„plished by other means, such as the use of Cornunity Development funds. He thought the creation of fewer parks could be helpful. He added that although parks are a part of the quality of life, if the City goes sterile over these sewer rates, there won't be anyone around to enjoy the parks. 322.5 Another source of funding which had been previously talked about was the use of Community Development funds for the sewer treatment plant and the investigation proved they could be used for solid waste facilities, but not the sewage treatment plant. 322.6 It was determined that the Board would defer any action until they had received a report on the cost and feasibility of a land application treatment plan from Metcalf & Eddy, Inc. At that time they would decide how to proceed with sewage treatment. Mayor Noland added that the good feature of land application treatment is that it can be expanded gradually, to meet the needs of the corm niity. 322.7 The Board then heard from Mr. Gary Kahanak, who spoke for a number of his friends who are concerned that they cannot afford the projected increase in sewer rates. He added that every entity, either individual or a business, should be held responsible for the proper handling and treatment of its waste He implored the City to approach the wastewater management to meet the needs of our future when water may be at a premium. 1 1 1 FINANCES Mayor Noland introduced for discussion a review of the financial picture, including anticipated effects of the $25 tax cap, discussion of sales tax apportionment for the current surplus and the 1983 revenues, significant projected revenues and expenditures, and the status Of sales tax expenditures to date. Effects of the $25 Tax Cap There was some discussion with the Finance Director and the City Attorney on how to administer the tax cap, and City Attorney McCord stated that the Finance Department was awaiting the opinion frau the CO Attorney General's office. CO With regard to specifics, Finance Director Linebaugh stated that the people would go to the office of the County Controller, where 0 they will verify that they have paid the 17 sales tax, and upon proper CO documentation of their purchases, they will receive their refund. Q There are some intangibles which have to be worked out concerning purchases of such things as jewelry, building materials, and utility payments, which are relatively unknown at this point. He added that the purchase of new cars would be easily determined, however. They will have the opinion of the Attorney General's office shortly on what would constitute a "single" transaction, and that should be helpful in making their determinations. This additional data, along with experi- ence, will enable them to determine the result of the tax cap. Mr. Linebaugh stated that the total annual receipts on record now are $1,876,877. He estimated that $1,900,000 was to be taken in, without the tax cap, and the tax cap would drop that figure by approxi- mately $200,000, and it would rise again by $100,000 due toinflation, leaving a net loss of $100,000. Sales Tax Apportionment & Review of Overall Finances There was discussion of haw the sales tax proceeds would be utilized. It was debated whether these monies should be held, and invested, and then determine their useage at a later date. Director Osborne stated that our portion of sales tax over commitments is approximately $880,000. Finance Director Linebaugh stated that we have an unusual financial picture this year, due to the excess sales tax. Due to the underestimation of sales tax in 1981 by $652,000, and a remaining Fund Balance in sales tax in 1982 of another $235,000, there is approximately $1,700,000 of 1981, 1982, and 1983 sales tax coney to spend. However, some projects that have already been committed to should be taken into consideration. 1 In other areas, Mr. Linebaugh stated that the Shop Fund shows a gain of $11,000; General Fund a loss of $491,000; Airport Fmmd a loss of $247,000; Public Works a loss of $430,000. This is caused by the drop of revenues this year. The General Fund revenues dropped 323 323.1 323.2 323.3 323.4 323.5 • 3236 323.7 323.8 32-1 $138,500; Public Works revenues dropped $117,000. He stressed the importance of not committing to any long-term projects. In 324.1 apportioning out the sales tax proceeds, the Board should bear in mind the operating losses that are being incurred because of the drop in revenues. 324.2 Director Todd pointed out that in spite of the loss in the General Fund, there is a $1,000,000 reserve, so that it is not an emergency situation, but that it cannot consistently fall. He added that it should be presumed that the loss will be greater next year due to inflation. 324.3 With regard to City Hall Renovation, it is estimated that approximately $467,000 of sales tax proceeds will be available to spend on that project. 324.4 Mr. Linebaugh itemized the projects from 1982 which were committed and have been carried forward to 1983. They are• the hiring of additional policemen, firemen, parks administration, the custodian, the swimming pool, the replacement fund, the Municipal Court computer system, the Arts Center, City Hospital, GEMS money, and the City Hall Renovation. He added that there have been no provisions in the budgets for new expenses which may be incurred for the annexed areas, other than a new grader for the Street Department. 324.5 Mr. Linebaugh indicated that the 1,300 additional citizens in Fayetteville resulted in an additional $72,000 of sales tax money. This figure has been included in the $1,700,000 estimate 324.6 Mr. Linebaugh reiterated the reasons for the unused sales tax, to date- There had been funds apportioned for the Police and Firemen, but that had been postponed during the time of dis- cussion of the Public Safety Officer concept; the swimming pool fund= have been accumulatinv; the Traffic Department did not use $3,000 of their names, due to underbudgeting; the Transit System failed, leaving $11,000 unused; and the Municipal Court has $21,000 remaining, due to the unavailability of computer packages. 324.7 There was agreement among the Board members that this excess and unused sales tax money should be placed in a contingency fund, with the exception of the monies for the Municipal Court and the Swinming Pool allocation. With regard to the streamlining of Municipal Court require- ments, it was suggested that the City of Fayetteville make an attempt to meet with representatives of other towns, in an effort to accomplish sane of these goals through the legislature. It was determined that the City Manager would contact sane of these government representatives to arrange a nneting to discuss some of the areas of mutual concern, such as the streamlining of the Municipal Court. 3248 1 1 1 1 COMMUNITY DEVELOPMENT Sandra Carlisle, Director of Community Development, reviewed the status of current and proposed Community Development programs and pro- jects. She presented to the Board a summary of the status of the program for the years 1975 through 1982. Mrs. Carlisle made reference to the Expenditures Summary, which showed a breakdown of Housing Assistance. She added that in addition to these figures shown, there were additional expenses for bookkeeping, Housing Coordinator, car expenses, and filing expenses for grant agreements, plus acquisition and historic preservation. The total of $5,369,089 is a summary of all CD monies that have been spent to date. The Urgent Needs category includes such things as water main construc- tion in Farmington and Greenland. Mrs. Carlisle included in her report a request for a Budget Revision in order to transfer some of the funds that have been left over in various classifications over the period from 1977 through 1981. Mayor Noland indicated that there is approximately $60,000 to be reprogrdumed, to some aspect of the 1983 Program Year. Its. Carlisle stated that this was being done to clear out previous program years, as a means of balancing the account on the books. There was some discussion on the allocation of funds for the development of Washington Nb retain. Mrs. Carlisle stated that $42,274.57 was allocated for the development of Washington Mountain, which would cover the cost of any equipncnt and the parking lot, and that $55,180 was allocated for acquisition of the land. It was deter- mined that the estimate for the construction of a street for the Washington Mountain development would be approximately $30,000. In applying for funds, this money is considered Parks & Recreation money, not Land Acquisition money. When asked her thoughts about the future of Community Development, Mrs. Carlisle stated that she presumed the govetiuuent would allocate $500,000 for the 1983 Program Year. She added that this amount was on a per capita basis. She informed the Board that Congress is now working on new Rules and Regulations for Community Development programs, which she felt would imply a status quo approach. There being no further discussion, Director Osborne, seconded by Director Lancaster, made a motion to grant the b dget revisions, as presented. Upon roll call, the motion passed by a vote of 7-0. In another matter, Director Bummpass asked Mrs. Carlisle about the possible use of Community Development funds for solid waste disposal. Nrs. Carlisle stated that the facilities eligible for assistance do not include the use of Block Grant Funds for the initial collection of solid waste Iters such as garbage trucks, and trash collection recepticles are not eligible. 325 3251 325.2 325.3 3254 325.5 325.6 325.7 325.8 32 (j Similarly, using Block Grant Funds to provide solid waste collection services is not eligible. She added, however, that 326.1 sites, fixtures and equipment used after the final collection process are eligible. This may include incinerators or sanitary landfills or their appurtenances. Solid waste disposal facilities must serve areas where activities included in the Ccumunity Development program are being carried out, such as Neighborhood Strategy Areas However, the reference to being located in such an area should not be taken as encouragement for the location of solid waste facilities in residential areas 326.2 326.3 326.4 326.5 326.6 326.7 326.8 Director Todd stated that one of the options concerning the solid waste facility would be that of private ownership, and the tax benefits associated with that prospect. However, by going to private ownership, the City may be losing the benefit of CD funding. Director Bumipass asked about the use of CD money for land acquisition, and Mrs. Carlisle stated that land acquisition is eligible for CD uuuey, but it must meet either the urgent needs requirements, the elimination of slim and blight, or service the low-uuderate income citizens. There was some discussion about the prospect of using 1983 CD money to purchase land and houses near the Industrial Park area, to eliminate slum and blight.. And then use that money for the solid waste treatment program. And relocate those homeowners to alternate housing. Mrs. Carlisle was to check on the possibility of doing this. Director Todd asked Mrs. Carlisle how many applicants CD had for housing assistance, and she stated that there were 19 on a waiting list. Mayor Noland stated that he had received a request from EGA for money for a nursery operation, and Mrs. Carlisle stated that CD can use its funds to build a facility, but cannot use them for operation, maintenance or equipment. Assistant City Manager Mtwethy was asked about the status of the Head Start Building, and he stated that there has been some delay in that they ran into a problem because the site selected had no utility connections. The architects are running same new figures on what it would cost to run this building to the RaMay School system's existing utility lines, reasoning that our lease will probably provide that it will be the property of the school system within 25 years. There was no further discussion in the area of Community Development. 1 1 1 ANNEXATION Mayor Noland introduced discussion of additional annexation proposals, including the Highway 45 Fast area In that the Quorum Court was scheduled to act on a third. reading for this zoning at their meeting of December 9th, it was determined to defer action until the meeting of the Board on December 21.st. Director Todd felt that there was a need to clarify the exact area to, be covered by the annexation proposals. The Board would have access to area maps for their review within a short period of. time, and, in the meantime, the Planning Office has a color coded annexation map, with overlays, for their use. The Board would make a decision on 03 whether other areas should be included in the annexation proposal. CO With regard to the most recently annexed areas, Mayor Noland U asked what services have been requested of the City to date, and m Assistant City Manager McWethy said that he has received requests for street lights at intersections in the 16 West area, which qualify Q under the City's street light policy. Director -elect Orton wondered what those requirements were, and Mr. McWethy stated that the request must be for a street light either at a street intersection, or on approximately a 300 foot space between blocks. He added that he also sends out a letter to each neighbor for signature of agreement. Director Buunpass wandered if we could make a request of the subdivision developers to place street lights in these new areas. It was determined that requests of this nature should be submitted to the Assistant City Manager. 1 1 PAY PLAN A review of general pay and compensation matters affecting all city departments was scheduled but the majority of the Board members had not had an opportunity to fully review these matters. It was decided to defer discussion until they had the opportunity to do so. STAFFING Fire Department: The hiring of new personnel and other requirements to secure a "Class 3" fire rating. City Manager Grimes stated that the Board should recognize the fact that the amounts to be allocated to the Fire Department are recurring costs. These funds should be considered when reviewing the requirements for maintaining the Class 4 fire rating and working toward the Class 3 fire rating. Assistant City Manager FtWethy stated that in order to keep the Class 4 rating, six additional firefighters need to be hired. This is because of the number of fire responses and the building up of the City. It is approaching the maximum to handle this build up and still meet the Class 4 rating with the number of points we have. He added that in order to get a Class 3 rating, it would be necessary to add one more fire substation in the northwest part of town, with the appropriate firefighting equipment. 327 3271 327.2 327.3 327.4 327.5 327.6 327.7 327.8 327.9 328 Director Todd asked if a commitment of more time on the part of the firefighters toward fire prevention would help reduce the 328.1 number of responses, and Mr McWethy felt that in his judgment it would not reduce the number of responses. Mr. McWethy stated that the factors taken into account when 328.2 the Class 4 rating was received were (1) the number of fire responses, (2) the amount of exposed, huilt up area in town, and (3) the number of firefighters per station per shift He added that our rating was predicated on the commitment to add six firemen. 328.3 Mr. Grimes stated that there was some question on whether there should be a new substation built, or whether sane shifting could solve this problem. Lengthy discussion followed on the possibility of closing substations and the possibility of shifting personnel. 328.4 Mr. McWethy pointed out that there is an expected reduction in homeowners fire insurance of 3-10% if there is a change from 4 to 3 rating; and a reduction of approximately 25% in commercial - industrial accounts, when changing from Class 5 to 4. 328.5 Director Todd felt that due to the fixed operating costs of any substation, it was the responsibility of the Board and the City Staff to look at the possibility of shifting of personnel to ease the burden, and at the same time work toward the Class 3 rating. 328.6 Mr. Grimes stated that the estimated sales tax revenues allocated to the Fire Department total $160,000. Of that, $95,000 has been allocated to pay for the 6 additional firemen, and their fringe benefits. Any additional hiring beyond those 6, would be allocated from the General Fund. It was agreed that the three additional firemen would be hired 328.7 to maintain the Class 3 rating, and Mr. McWethy would contact the Insurance Services Offices to discuss the possibility of either the abandonment of a firestation, and the addition of a new full station, to reach the Class 3 rating. 328.8 Director Sharp suggested the possibility of utilizing Public Safety Officers as deputized firefighters. If they could be trained and equipped properly, he felt there was a possibility that they could be included in the number of firefighters necessary to reach the Class 3 rating. Finance Department: Additional personnel 328.9 Director Osborne stated his opinion that the Finance Department was in great need of an additional accountant, to help with some of the work generated by the Special Projects requests. The Board and the City Manager were in complete agreement 328.10 that this additional person, an Accountant II, should be hired 1 1 f Administration Department: An additional staff person Mr. Grimes stressed the need for an additional person in the Administration Office to help with the types of projects which are not finance -oriented projects, in order to allow the Assistant City Manager more time to coordinate more administrative types of projects. Mr. Mcwethy pointed out the need for more help now that the City Hall is being renovated particularly. He foresees the need will increase as the project continues toward completion. City Manager Grimes stated that he would prefer hiring the administrative intern when the move back to City Hall takes place, in that there is no available space at this time. It was determined 03 that Assistant City Manager McWethy would investigate the possibility CO of hiring a graduate student from the University to work as an Administrative Intern. Sanitation Department: Review and discussion of the Incentive Q Work Plan 1 1 12 -5-9 - City Manager Grimes stated that the Incentive Plan was begun in 1974 to conserve gasoline consumption daring the fuel shortage. At that time, it was estimated that 190 gallons of fuel could be saved per week, 684 per month, and 12,684 per year That was one of the reasons which prompted the Incentive Plan. There was lengthy discussion of the advantages and disadvantages of the Incentive Plan, but the general concensus was to retain the Incentive Plan. Director Todd felt that the concept was a good one but he, and others felt that the standards for this incentive plan should be looked at more carefully at the time of the changeover to the incinerator system. City Attorney: Discussion of compensation for additional services Section 2-11(b) of the Fayetteville Code of Ordinances adopted December 6, 1965, provides that the City Attorney shall receive additional compensation for legal services rendered in connection with bond issues. The propriety of this financial arrangement was raised by Director Sharp. Following discussion, the Board of Directors decided that the practice does not create a conflict of interest for the City Attorney because the question+:of issuing bonds is a policy decision made by the Board based upon the merits of the project, not legal advice from the City Attorney, and because the City Attorney does not represent any private party but reviews the bond documents and renders other services to protect the City's interest. 329 329,1 329.2 329.3 329.4 329.5 329.6 330 Parks & Recreation Department: Assumption of full control over the Lakes Fayetteville and Sequoyah boat dock operations. 330.1 City Manager Grimes stated that the dock operations at Lakes Fayetteville and Sequoyah have, by tradition, had one operator at each boat dock, responsible for having those facilities open seven days a week from daylight to dark These operators receive a nominal salary, but they do receive the revenues frau certain concessions, such as boat rentals, fuel, candy, bait, etc. The Parks & Recreation Department is interested in assuming responsibil- ity for the operation of these boat docks. 330.2 In general discussion, the Board felt that an increase in boat stall rental should also be considered, along with the possibility of guided tours. It was determined that the City Staff would mail out Requests 330.3 for Proposals for a person or persons to operate the boat docks for the City, inexchange for the concessions. City Engineer: Discussion of the proposal to hire a full-time 330.4 registered professional engineer. City Manager Grimes stated that he felt the Board should consider 330.5 the possibility of separating the Water & Sewer Department from the Engineering Department, which would necessitate the hiring of an engineer, with a three-person field crew. This staff would handle the design work for streets, engineering projects, sidewalks, etc. Mr. Grimes added that these types of projects are currently being given to outside firms, at a very high cost annually. There was also discussion on the possible use of University 330.6 architectural students to perform some of these projects. There was some question about the request for additional equipment for this purpose and it was decided that this request would have to be thoroughly reviewed. The City Manager stated there is ample surveying equipment. 330.7 Mr Grimes suggested that this transition should take place in 1984, rather than at this time, in order to allow some time to clarify duties and the administrative structure of the departments. Concept of Full -Time Minute -Taker: To cover the City Board, 330.8 Planning Commission, Board of Adjustment, Plat Review Committee, Subdivision Committee, Police & Fire Pension Fund Boards, Civil Service Commission, and City Board committee meetings. 330.9 In general discussion of this concept, the advantage, as stated, would be to free up time of the current staff to carry on the other aspects of their positions. The disadvantages, as stated, would be that it might pose 330.10 inconsistency, particularly if a University student would be hired, because of the turnover 330.11 It was determined that the City Staff would get more details on this concept and make their recommendations to the Board at a later date. Discussion of the Use of a University of Arkansas Intern in Selected Departments: Director Bumpass suggested the possibility of hiring admanced architectural students from the University of Arkansas to design some plans for the renovation of the Police Department, which should be considered following the renovation of City Hall. It was deter- mined that the City Staff would contact the School of Architecture about this prospect. 331 331.1 OTHER BUSINESS Mayor Noland suggested that the owners of the Mt. Kessler Inn 331.2 03 receive a Proclamation from the City expressing the gratitude of (1 the Board members for the use of the Inn. Review of Unsafe Intersections CO Mt. Bob Brandon, a resident of 649 Wilson, addressed the Board 331.3 Q with his concerns over the intersections of Gregg Street and North Street, and asked what the City's plans were in devising a plan for signaling at that corner. City Manager Grimes stated that it is basic policy of the City to review traffic counts in order to justify signalization, and these are based upon the Manual for Uniform Traffic Control Devices. He added that the City is periodically furnished with reports from the Police Department on location and number of traffic accidents. He added that the Traffic Department works closely with the Police Department, in trying to eliminate problems in heavily traveled intersections. Mr. Grimes further stated that the City's Traffic Department is currently working with the Highway Department and the Northwest Arkansas Planning Commission to try to better identify these problem locations. Mr. Brandon asked specifically what was being done to direct traffic at the intersection of Gregg and North Streets, in order to avoid encouraging that flow of four lane traffic through a residential neighborhood. He cited many instances of heavy truck traffic coming through that area, in an attempt to avoid the heavy traffic on Highway 71. Mr. Brandon asked what the City Code reflected regarding the definition of a truck, and Mr. McCord stated that "any vehicle designed or operated for the transportation of property, the body weight, or combined body weight and load, of which exceeds 6,000 lbs. Mr. McCord further stated that the Code establishes truck routes, and provided that all trucks use the established truck routes, and certain streets are designated by signs, as "No Trucks" areas. He added that it is an enforcement problem. Mr Grimes stated to Mt. Brandon that he would be certain the restricting signs were placed in their proper location, at the intersection of North & Gregg Streets, and that he would send notices to the businesses which operate the heavy trucks, informing them that the regulations will be enforced, and send then a sketch of possible alternate routes. This vas to be followed up by the use of Police Patrols at that area. 1 331.4 331.5 331.6 331.7 332 Mission Street Speed Limit Director Osborne reiterated a proposal he had made a year ago concerning the raising of the speed limit to 35 m.p.h., from the stop sign at the corner of Maple and Mission, and all along Highway 45 East to Dillon's Supermarket (with the exception of the Root School area, where it will remain 20 m.p.h.lvhen children present). This had been proposed to the Arkansas Highway Department approximately one year ago, but to date no action has been taken. The City Manager would undertake to write the Arkansas Highway Department with this proposal. Swinning Pool - Wilson Park 332.4 City Manager Grimes stated that he and Dale Clark, of Parks & Recreation, had attended meetings with some experts in the field of swinming pool design and construction, and they have determined that an attempt should be made to renovate the existing pool. He added that the City Engineering Department is preparing drawings of the proposed remodeling project, which is estimated to cost between $150,000_$200,000, and -it is felt that the pool could possibly last ten twenty years. 332.1 332.2 332.3 332.5 332.6 332.7 Mr. Grimes stated that this basic set of specs would include replacement of guttering, piping behind the guttering, circula- tion system, additional drains, for a total of three, to comply with Health Department regulations, repair and/or replacement of decking, expansion of the sunbathing areas, and the substitution of sloped areas for steps to aid the handicapped They are also looking at cost estimates for some satellite pools. Mr. Grimes stated further that the low bidder, Brennan -Boyd Construction, is working up some revised estimates for a new pool, along with revised estimates for bathhouse facilities. The estimates on the remodeled pool would be to the Board for review sometime in January. Review of Airport Operations and Future Plans In reviewing the Airport Operations for the Board members, Finance Director Linebaugh stated that the airport has been operating at a loss since 1975, and it is expected to continue unless additional sources of revenue are created. The projected loss for 1982 is $240,000. Mr. Linebaugh furthur stated that the main, cause of this loss of revenue is the loss of the number of landings. Director Sharp indicated that the old terminal had reached approximately 80,000 boardings per year, but that figure has declined steadily, due to the increase in ticket costs, which were the result of the deregulation of the airline industry and the raise in fuel costs. 1 1 In addition to the prospect of increases in landings, the Directors discussed the prospect of increasing flowage fees at Drake. Mayor Noland pointed out that any increases in flowage fees should be kept below those of Springdale. Director Todd stated that he perceives the primary function of the airport management today as being that of marketing. While it is true that the Fayetteville Airport departures amount to 30-35 daily, there is a definite need for expansion of service. Metro is expected to add another flight to Dallas, but none to Little Rock. City Manager Grimes was in agreement with Director Todd and stated that he has had suggestions from the community regarding a group effort to convince the officials at Metro that there is a real need for expanded service at Drake. CO After discussion, the Board instructed the City Manager and Finance Director to report to the Board on how the airport oper- (, ations can break even. CO City Manager Grimes would contact the Airport Committee and Q the Chamber of Commerce about the prospect of approaching Metro with the community's suggestions for a broader scale of service, possibly opening up a route to the east to Little Rock, or to the northwest, to Tulsa. 1 1 Computer Status City Attorney McCord indicated that his report on the City's computer problems was self-explanatory and stated that the matter of litigation was a policy decision to be made by the Board of Directors. He reviewed the possible causes of action available to the City as outlined in his report, i.e., a cause of action for fraud against the manufacturer of the hardware (Microdata), a cause of action for fraud against the corporate vendor (Mid -South) and its officers (Tippett and Dillday), and a possible cause of action for breach of fiduciary duty against one of the consultants. Mr. McCord expressed the opinion that jurisdiction and venue for a suit against Microdata would be in the U.S. Disttict Court for the Western District of Arkansas, Fayetteville Division. He also expressed the opinion that the amount of damages based upon employee lost time could be documented. He noted that the City has a letter from Nicrodata stating that the cold start problem was remedied as of a certain date when, in fact, Microdata was re-engineering a part to solve the cold start problems which continued to occur until the re -engineered part was installed. Mr. McCord stated that a suit by the City against Microdata could seek both actual and punitive damages. Finance Director Scott Linebaugh stated that the hardware is no longer a problem but the City is still faced with the unavail- ability of software He indicated that software cost will be in excess of the contract price with Mid -South. 333 333.1 333.2 333.3 333.4 333.5 333.6 333.7 334 Mr. McCord stated that any litigation by the City should be filed before February 1, 1983 to avoid the possibility of a successful 334.1 defense based upon the statute of limitations. After lengthy discussion, the Board of Directors instructed Mr. 334.2 Linebaugh to investigate the possibility of selling the Microdata computer and to report the amount of the salvage value which could be obtained. Mr. Linebaugh was instructed to submit his report to the Board by early January, at which time the Board will make a decision regarding litigation. Review of 2:00 a.m. Closing Hours Ordinance 334.3 Director Osborne requested discussion of repealing the Closing Hours Ordinance at this time, because he is of the opinion that it is hurting "legitimate" operators. 334.4 Director Bumpass stated that he is under the impression that neither the Hilton, nor the Post Office, nor the hotels or motels in the area with bars have asked to keep their doors open beyond the 2:00 a.m. closing stipulation. 334.5 Mayor Noland stated that the problems that had prompted the 2:00 a.m. closing hour ordinance seem to be continuing, in that the Board continually gets letters and camients from the Dickson Street merchants pressuring the Board to do something about the situation there. He asked that the City Manager provide an update of the number and type of police calls received concerning these establish- ments on Dickson Street. Mr. Grimes said that he cauld so so. 334.6 Mayor Noland felt that in that there is a nuisance there in the eyes of many people, the Board should possibly pursue a lawsuit to close the establishment. 334.7 Mr. McCord stated that he had outlined some procedures to be followed if this course is going to be pursued, and it will be included in the agenda of the Board meeting of December 21st. This procedure would involve the filing of a complaint with the ABC, and if the City doesn't get relief administratively, then the City has the option of filing a lawsuit. POLICIES: Review of Matters Pertaining to Policies and Procedures City Board "Rules of Order and Procedure" 334.8 Director Lancaster asked that Mayor Noland read excerpts from these Rules of Order and Procedure. The Mayor read, "Efficient management of the city can exist only through mutual understanding and complete cooperation between the Board of Directors and the City Manager. The City Manager's performance cannot be the best unless he or she is given the latitude to exercise independent judgment in executing policies of the Board of Directors. The Beard of Directors acknowledges that obligation and gives the City Manager the latitude of judgment and discretion, and expects faithful performance in carrying out the policies of the Board of Directors. 1 1 • 1 He continued, "It shall be distinctly understood that authority for the management of the city shall pass through the City Manager and that he, or a representative authorized by him, shall be the only official contacts between the Board of Directors and employed personnel. Members of the Board of Directors should refrain, as individuals, from discussing nxanagement problems with the personnel of the city except in cases where the Board of Directors may deem it necessary to confer with personnel at regular or special meetings of the Board, and then in the presence of the City Manager." Mayor. Noland called for a motion to readopt these Rules of Order and Procedure, and Director Bumpass asked that it be postponed until the Board Meeting on December 21st, to afford him the opportunity to review them. 335 335.1 335.2 CO Mr. Mcwethy stated that this readoption of the Rules of Order and Procedure is normally done at the first meeting in January, after new 335.3 members come on the Board. U CO Review of Additional Policies It was determined that the following policies would be discussed 1 at the regularly scheduled Board Meetings: Professional Selection Policy Discussion of additional notification requirements --particularly to nearly -but -not -adjoining property owners and renters -- regarding large scale developments and subdivisions. Discussion of a requirement of "voluntary annexation" as a condition for receiving city water Discussion of guidelines on the role and use of citizen committees ADJOURNMENT There being no further business, the meeting adjourned at 5:00 p.m. 335.4 335.5