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HomeMy WebLinkAbout1983-02-01 Minutes1 MINUTES OF A BOARD OF DIRECTORS MEETING A meeting of the Board of Directors of the City of Fayetteville was held at 7:30 p.m., on February 1, 1983, in Room 107, Continuing Education Center, Fayetteville, Arkansas. PRESENT: Mayor Noland, Directors Lancaster, Osborne, Orton, Sharp, Bumpass, and 399.2 Johnson; City Manager Grimes, Assistant City Manager McWethy, City Attorney McCord, City Clerk Kelly; members of the press and audience. 399 399.1 CALL TO ORDER Mayor Noland called the meeting to order and asked for a moment of respectful 399.3 silence. CO EMPLOYEE AWARDS U Mayor Noland presented awards to the three Employees of the Month for the 399.4 CO month of January, 1983. They were John Dietzen, Building/Plumbing/Electrical/ Q Sign/Property Inspector, Inspection Department; Ralph Rathbun, Light Equipment Operator, Street Department; and Sherry Rowe, Accountant I, Finance Department. These winners will be eligible to compete for the Employee of the Year Award. PARKING DECK Mayor Noland called for further consideration of a proposal to sell the 399.5 City -owned parking deck located between the Continuing Education Center and Meadow Street. Mayor Noland said this item was considered at a Special Meeting of the Board on January 24, 1983, at which time the Board deadlocked in a 3-3 vote. He stated that Director Sharp had developed some additional information, since that meeting, which had been circulated to the Board. Director Sharp addressed the Board and stated that the figures involved were extremely complex. He expressed appreciation to Finance Director Linebaugh for his assistance in compiling these figures and stated that the figures Mr. Linebaugh had presented to the Board, in an earlier memorandum, were accurate. However, Director Sharp had compiled additional information concerning the City's retaining ownership of the deck. He spoke about the value of the deck in 2004, adding that Mr. Linebaugh had used an inflation factor of 8%. Director Sharp had plotted inflation rates of 6% (the deck being worth $3,182,026); 8% (the deck being worth $4,711,665); and 10% (the deck being worth $6,926,634). He stated that the balloon payment of $738,000 indicates the scale involved and is a critical point. He added that in looking at "worst case" situations, and considering that the City may own the facility in the future and the CEC may someday be used for other purposes, the Board should realize the need for parking will remain. As an overview, Director Sharp reiterated that the Land Costs involved would be $290,000; with the first issue being $380,000; the second issue being $210,000; extra expenses (contingencies) being $55,392. He referred to Mr. Linebaugh's memorandum to the Board, dated January 20, 1983, in which Operating Revenues are compared to Expenditures. Director Sharp's calculations correspond to the comparison of 88 spaces, 87 spaces, and 85 spaces. Director Sharp spoke of various sets of circumstances. One possible scenario he spoke of was that of revenue pro- jections based on actual revenues, using the figures from Mr. Linebaugh's memorandum, and Proposal "A", whereby the Hilton Hotel leases 205 spaces with the City owning and operating the deck. In Proposal "B", the Hilton would lease 205 spaces, and manage the deck. Director Sharp is of the opinion that there are ways to cut operating expenses and stated that under Mr. Linebaugh's projections, the City has a 1 399.6 399.7 400 guaranteed revenue of $34,091 (Hilton's Capital Yearly Payment), with a possible additional rent of $44,000. He added that these revenues are 400.1 projected for 1982-83, with a 50% increase every five years. He said that Mr. Linebaugh's figure of $971,751, reflecting total operating revenue less operating expenses, doesn't take into consideration the cost of money and cash flow. And only a portion of this amount is guaranteed, the majority is not. Mr. Sharp referred again to revenue projections based on actual revenues (October, November, December, 1982), and had requested from the CEC a report of the projected use during the upcoming year, and these projections resulted in 27% useage for the three-month period, versus the 25% estimate of Mr. Linebaugh. He felt this calculation would answer the question of what chance the City has of receiving additional rent. The total operating revenue, less expenses, will result in the following: 1983 -Gain of $5,858; 1984 Gain of $2,391; 1985 -Loss of $1,354; 1986 -Loss of $9,766. He added that this is the way the current lease is written, so that if the useage is down, they don't pay; if useage is up, they will wait and pay on the cumulative amount. Director Sharp's calculations of Cumulative Operating Revenues, less 400.2 Operating Expenses will result in a loss in 1987 of $8,269; 1991 -Loss of $34; and a loss of $12,875 in 1992. Proceeding into the future, Director Sharp showed a loss of approximately $90,207. This, as stated, is a possibility. It is also possible that revenues will fall somewhere in between those projected by Mr. Linebaugh and this projection. Therefore the $2,841 is guaranteed, the remainder is not guaranteed. He continued that these figures are predicated on the Hilton paying their share of the deck. He made reference to a letter from Greener & Sumner, architects on the project, which had been distributed to the Board, which was directed to Mrs. Bobbie Jones, Planning Administrator, on October 27, 1981. In part the letter stated, "We do understand however that parking spaces will be made available to us on a rent basis to meet our required parking count." He reiterated the requirements of the City's Off -Street Parking Ordinance, being that a building of 40,000 square feet (CEC) will require 66 spaces, and a hotel of 250 rooms (Hilton) will require one space for each room, for a total of 316 spaces. 400.3 City Attorney McCord distributed a memorandum which reflects his research of the action of the Planning Commission regarding the require- ments of the Zoning Ordinance, as applied to the CEC and the Hilton Hotel. It correctly reflected the requirements for the Hilton as one space per guest room, as prescribed by the Zoning Ordinance. The requirements for the CEC Center are 1 space per 600 square feet. The architects plans on file with the City reflect 244 rooms for the Hilton, and Director Sharp accurately reflected the square footage of the CEC, which under the Zoning Ordinance would require 66 spaces, for a total requirement of 310 spaces. As reflected in Mr. McCord's memorandum, on two different dates in 1978, the Planning Commission approved off-site locations for the Hilton and the CEC, to meet the off-street parking requirements of the Zoning Ordinance for those two structures. The two sites were the lot on which the parking garage is now located, and the surface lot north of Mcllroy Bank. As those facilities are presently striped, or can be striped if the lot north of Mcllroy Bank is not striped in conformity with standard parking space requirements, they presently would provide a total of 314 parking spaces, which is 4 in excess of the literal requirements of the Zoning Ordinance. In the opinion of the City Attorney, the two facilities have provided, based on Planning Commission approval, the literal requirements of the Zoning Ordinance. But, Mr. McCord added, this has nothing to do with the issue of what portion, if any, the Hilton should be paying. 1 1 Director Sharp then proposed allotting 55 spaces to the CEC which 401 would leave the Hilton 45 spaces short of requirements and the CEC 11 spaces short. He said requirements for the additional spaces could be met 401.1 by allowing the two buildings to count the lot north of Mcllroy Bank to -meet the remainder. Director Sharp stated that he had contacted Traffic Superintendent Perry Franklin, who indicated that when the lot is re -striped sometime in the next few years, it could accommodate at least 4 to 6 more cars by restriping some spaces 6'6" for compact car spaces. Director Sharp stated that taking into account the current rent being paid 401.2 by the Hilton, $1.00 per space per year, and inflating it at the same rate used by Mr. Linebaugh, 50% every five years, a parking space will cost $7.65 per day in the year 2008. He further stated that using this projection the City would have taken in $2,154,000 more than that which was spent, $971,000. He stated that the payout under this projection would be 15 years and 20 years, respec- tively, which would include paying back the bondholders, reimbursing the City, and the interest. When asked which scenario Mr. Linebaugh would recommend, Mr. Linebaugh stated that he would recommend scenario B, that is the Hilton (� Hotel leasing 205 spaces, and the City owning and operating the deck, with the CEC CO having 55 spaces. Mr. Linebaugh stated that if a situation can be reached where the Hilton will lease 205 spaces from the City, the City will make money by retaining the parking deck. Director Orton stated that a letter, dated December 7, 1979, from City Attorney McCord to the Building Inspection Superintendent, responding to the question of whether issuance of the building permit should be made, states that the City Attorney had the opinion that the building permit should be issued, provided the City obtained from the developers of the Hotel a written commitment to participate in a pro rata basis in the cost and the use of the parking garage to be constructed. Mrs. Orton stated that this was evidently a condition for them to get the building permit and it has not been accomplished. City Attorney McCord stated that the approval, as given by the Planning Commission, contains no conditions as to manner of operation of the surface lot north of Mcllroy Bank, and that minutes reflect the Planning Commission approval of off-site locations to meet the off-street parking requirements for the two faciliites, the Hilton and the CEC. He added that the "manner of operation" does not effect the opinion he rendered which is that literal requirements of the Zoning Ordinance have been met, as approved by the Planning Commission. Attorney McCord added that a permanent Certificate of Occupancy has not been issued. However, the Certificate of Occupancy covers zoning compliances. The issue of pro rata sharing of cost is a separate issue that needs to be resolved. When Mayor Noland asked City Attorney McCord his interpretations of the letter from Greener & Sumner referred to earlier, Mr. McCord stated that the letter appears to imply that the owners of the Hilton will rent a number of spaces required to comply with the requirements of the zoning ordinance. His opinion referred to earlier referred to the building permit being issued on on a pro rata contribution toward the cost of the facility. Attorney Boyd Cox, attorney for the Hilton, addressed the Board and stated that he was not aware of any agreement between the owners of the Hilton and the City for any cost sharing of any type. City Attorney McCord stated that he was never asked to draft such an agreement and has never done so. 401.3 401.4 401.5 401.6 402 When asked about the wording in the letter from Greener & Sumner, Mr. Cox stated that he took that as meaning the City will provide the spaces needed by the Hilton and make them available on a rent basis up to a point. That is, he said, what has occurred since the parking 402.1 facility was completed. The Hilton pays based on useage. The statement in Mr. McCord's letter of December 7, 1979, he added, addressed another matter, that being construction. He referred to the last paragraph of the letter which stated "provided the City obtains from the developers of the Hotel a written commitment to participate on a pro rata basis in the cost and use of the parking garage to be constructed." He stated that it bordered on the ridiculous to think that someone would partici- pate in a pro rata basis in the cost of the facility and not incur ownership of the facility. He further stated that the agreement to participate in a pro rata basis was not reached, and he felt this was not reached because under the Hilton's bond issue they had a capital ceiling, and once the ceiling was reached they could not commit to buy or lease any additional property, and if they went over that ceiling they would lose their tax exempt status. 402.2 Director Lancaster, seconded by Director Orton, made a motion to reject the proposal of the Hilton Hotel. Director Johnson asked what effect the sale of the parking deck to 402.3 the Hilton would have on the assessments against the CEC property, and City Attorney McCord stated that in his view, the ownership of the parking garage is not a relevant consideration in determining the assessed benefits against the property on which the CEC is located, or against the property on which the Hilton is located. The assessed benefits have to reflect the increase in fair market value of the property being assessed, resulting from construction of the improvements by the Improvement District. The ownership does not have any relevancy. The parking facility was not constructed by the Improvement District, and the issue is whether the improvements constructed by the District have benefitted the properties being assessed in accordance with the assessment made. The issue of the validity of the assessment is pending in a court action. 402.4 Mayor Noland reiterated that the motion before the Board is to refuse the offer made by the Hilton. Attorney Cox stated to the Board that the proposal was not initially 402.5 one by the Hilton, but had been brought up by the Finance Committee as an invitation to the Hilton. Mr. Cox stated that they had come to agreement on the proposal. However, he stated that in light of the current situation, he retracted the Hilton offer, and added that the Hilton would consider a counter proposal by the City at some later date. 402.6 Director Lancaster then called for a vote on his motion, but City Attorney McCord stated that a vote should not be made in that the proposal had been retracted. City Attorney McCord stated that the records in the Inspection Office would need to be researched. He reiterated that he had issued an opinion in which he had made a recommendation of the condi- tions under which the building permit could be issued, and that was a written commitment. He would research the records to see if there was a letter in the file to that effect and he would render an opinion on what recourse, if any, the City has if it wants to pursue any action against the developers to require them to make additional capital contributions toward the cost of the parking garage. Director Bumpass felt this would help to direct the Board in negotiating a possible counter proposal. 1 1 HOUSING BONDS Mayor Noland stated that the Public Facilities Board has requested an indication from the Board of its position regarding the approval of the issuance of multi -family revenue bonds. George Faucette, Jr., Chairman of the Public Facilities Board, spoke to the Board concerning this request and a HUD survey which had been made in Washington and Benton Counties. Mr. Faucette stated that last year a request had come to the Public Facilities Board to authorize the issuance of tax-exempt municipal bonds to provide mortgages to multi -family housing pro0ects. He added that this request was opposed by a local developer who felt that the vacancy level in Fayetteville didn't warrant any new projects, and he also felt that government money would then be competing with the private sector. (There is an overall annual vacancy rate of over 6 1/2%, apart from the normal summer vacancy.) The developer had requested that the Public Facilities Board enter into an Inducement Agreement to authorize the bonds, subject to the HUD study showing the need for this housing in the area. The HUD study indicated that 445 units are needed in the Fayetteville -Springdale area and that approximately 250 units have received building permits, but the distribution of the remaining 200 units was uncertain at this time. Mr. Faucette stated that the Public Facilities Board has been considering only new construc- tion, but Ms. Marty Goff had pointed out to him that there are pro0ects existing in other cities which provide for substantial or moderate rehabilitation of housing, which would indicate that if older pro0ects would sell which were in need of rehabilitation, then they would qualify This would mean that the purchase amount, plus the rehabilitation expenses, could be financed through the bonds. Mr. Faucette added that 20% of the units would be offered to low -moderate income families,; as required by law. Ms. Marty Goff addressed the Board and indicated that she felt every issue should be considered individually, bearing in mind the factors of whether it is refurbished or new construction, what the new construction rent will be, and what the mortgage rates are on single family residences. Mr. Faucette stated that the individual pro0ects would be brought before the Public Facilities Board, and, if recommended by that Board, they would be brought before the City Board for final approval. Mr. Claud Prewitt also addressed the Board and stated that he is a proponent of the issuance of these bonds and that he feels there is a great need for this type of housing. Director Orton, seconded by Director Johnson, issuance of the multi -family housing revenue bonds these requests, upon recommendation of the Public brought to the Board for approval on an individual 403 made a motion to approve the , with the understanding that Facilities Board, would be basis. Upon roll call, the motion passed by a vote of 6-1, with Director Osborne voting in the minority. LAND APPLICATION OF WASTEWATER Mayor Noland stated that the Water & Sewer Committee has asked that the presentation of a cost proposal by Metcalf & Eddy Consulting Engineers for further work on the feasibility study be tabled until the meeting of -February 15, 1983. This was recommended in order that the presentation coincide with that of the engineers for Campbell Soup. 403.1 403.2 403.3 403.4 403.5 403.6 404 STREET COMMITTEE REPORTS/RECOMMENDATIONS Bill of Assurance/Sidewalk on Old Wire Road Director Sharp, Chairman of the Street Committee, stated that the 404.1 Street Committee recommends the acceptance of a proposed Bill of Assurance for construction of this sidewalk located on the Poynter property on Old Wire Road, beyond Highway 265. Director Sharp, seconded by Director Orton, made a motion to accept 404.2 this Bill of Assurance. Upon roll call, the motion passed by a vote of 7-0. Bill of Assurance/Sidewalk at 1242 N. Garland Avenue 404.3 Director Sharp stated that the Street Committee had not reached an agreement on this request for a Bill of Assurance to construct this sidewalk. 404.5 The petitioner, Mr. Donald Johnston, spoke to the Board, and stated that he felt that the proposed widening of the highway would preclude the con- struction of this sidewalk at this time and asked that his request to enter into a Bill of Assurance be granted for this reason. 404.6 Director Osborne, seconded by Director Bumpass, made a motion to grant the request to enter into a Bill of Assurance, and to build the sidewalk at the call of the City. 404.7 In discussion, Director Osborne stated that the area of highway in question has no sidewalk for three blocks in either direction, and the o pposite side of the highway has sidewalks for two blocks in both direc- tions. City Manager Grimes stated that the current Highway Department scheduling for Traffic Improvements calls for improvements from North Street to Maple, but that the area in question has been postponed to a later date. 404.8 Upon roll call, the motion passed by a vote of 4-3, with Directors Lancaster, Sharp and Johnson voting in the minority. Mission Boulevard Sidewalk Project 404.9 Mayor Noland stated that Director Sharp had recommended Board review o f the estimates regarding the construction of sidewalks along Mission Boulevard. City Manager Grimes stated that he would be in favor of the construction taking place on the eastside of Mission Boulevard, in that the majority of the homes are set back much farther from the street on the eastside and in that the sidewalks would have to be placed an the property, Just off of the right-of-way, it would be more compatible to construct an the eastside. He added that it might cost a little more on the eastside, but the easements might be less expensive. 404.10 Mayor Noland proposed deferring action on final decision until the Right -of -Way Agent could take an estimate of the cost involved in this project. Director Orton asked what was planned for the heavily sloped area o f Mission Boulevard, and City Manager Grimes stated that this area would require the use of retaining walls. Mr Grimes added that with Board approval, City Staff could be instructed to get estimates of the engineering and appraisal costs involved in the project. 1 1 Director Osborne stated that he was confident that the City Manager would inform the Board if the costs became prohibitive. Director Osborne, seconded by Director Johnson, made a motion to approve the construction of the sidewalks along the eastside of Mission Boulevard, from North to Woodlawn and from Woodlawn to Maple. Upon roll call, the motion passed by a vote of 7-0. PARK LAND/PROPOSED ACQUISITION/WASHINGTON MOUNTAIN 405 405.1 With regard to the possible acquisition of the Washington Mountain pinnacle, Director Sharp stated that the City was able to obtain land from the adjacent 405.2 property owners at a lesser cost. COThere being no further discussion, Director Sharp, seconded by Director Johnson, made a motion to abandon the pursuit of the pinnacle portion of 405.3 the Washington Mountain property. U (n Upon roll call, the motion passed by a vote of 7-0. PARK LAND/APPROVAL OF LAND ACQUISITION Mayor Noland called for retroactive approval of a resolution authorizing the Mayor and the City Clerk to execute the documents necessary for the 405.4 purchase of 17 acres of park land at the south end of East Farmers Avenue. Director Osborne, seconded by Director Johnson, made a motion to approve 405.5 this resolution authorizing this purchase. Upon roll call, the motion passed by a vote of 6-0-1, with Director 405.6 Bumpass abstaining from this vote. RESOLUTION NO. 21-83 APPEARS ON PAGE. #770F ORDINANCE & RESOLUTION BOOK XV Director Sharp stated that he would direct his suggestion for the naming 405.7 of the park to the Parks & Recreation Board for their consideration. LANDFILL STUDY Mayor Noland stated that a request had been made by Washington County for 405.8 participation by the City in the cost of accomplishing a second soils engineering and geological study for a proposed landfill site located north of Highway 68 East, east of Springdale. Mayor Noland said that various groups felt that additional engineering studies were needed to help insure that there would be no pollution to Beaver Lake. Judge Charles Johnson addressed the Board and stated that the Quorum Court 405.9 had felt that additional testing should be done to better determine the suit- ability of the site for which the application was made. Judge Johnson had then contacted McClelland Engineers of Little Rock who had proposed conducting independent tests which would consist of booring of five holes in the site whereby an individual could be lowered into the holes to study the structure of the soil and then have those holes filled with water to test the permeability. The possibility of additional dye testing was raised by the Springdale City Council. He added that the engineers felt that the testing could be done in 4-6 weeks and would not delay the action on the permit. The engineer's cost would be $5,000. Judge Johnson stated that Springdale had discussed the possibility of pledging $1,000-$1,500, and that the Beaver Water District had pledged $1,000. 401; Director Bumpass, seconded by Director Osborne, made a motion to 406.1 pledge $1,000 of City funds for this study. Upon roll call, the motion passed by a vote of 7-0. PROPERTY CLEAN-UP/DAVIS PROPERTY 406.2 Mayor Noland called for further consideration of an ordinance auth- orizing the City Manager to have certain dilapidated and irreparable houses demolished at the owner's expense. This item had been tabled from the meeting of the Board on December 7th. 406.3 City Manager Grimes stated that he had sent a copy of the agenda material to the property owner, Mr. Lester Davis, but the owner was not present for this meeting. City Manager Grimes instructed City Attorney McCord to proceed with the reading of the ordinance. City Attorney McCord read the ordinance for the first time. Director 406.4 Lancaster, seconded by Director Bumpass, made a motion to suspend the rules and place the ordinance on second reading. City Attorney McCord read the ordinance for the second time. Director Bumpass made a motion to leave this ordinance on second reading, adding that he would like to give the property owner an opportunity to address the Board. There being no motion to the contrary, upon roll call, the motion to leave the ordinance on second reading passed by a vote of 7-0. REZONING ORDINANCE/PETITION R82-21 Mayor Noland called for the reading of an ordinance rezoning property 406.5 located at Walker Park and Walker Park North, north of 15th Street, west of South College Avenue, and South Block Avenue, and south of 13th Street, as requested in Rezoning Petition R82-21, which had been approved by the Planning Commission by an 8-0 vote. 406.6 City Attorney McCord read the ordinance for the first time. Mayor Noland, seconded by Director Bumpass, made a motion to suspend the rules and place the ordinance on second reading. Upon roll call, the motion passed unanimously, and the City Attorney read the ordinance for the second time. Director Bumpass, seconded by Director Johnson, made a motion to further suspend the rules and place the ordinance on third and final reading. Upon roll call, the motion passed unanimously, and the City Attorney read the ordinance for the final time. Upon roll call, the ordinance passed by a vote of 7-0. ORDINANCE NO. 2890 APPEARS ON PAGE $j OF ORDINANCE & RESOLUTION BOOK XIII CENTRAL BUSINESS IMPROVEMENT DISTRICT NO. 1/REVENUE BONDS 406.7 Mayor Noland called for discussion concerning the approval of the issuance of $300,000 of revenue bonds by the Central Business Improvement District No. 1 for the renovation of the Guisinger Building, at the southeast corner of the Square. 1 1 03 co N U (n Q Attorney Jack Butt addressed the Board, representing the CBID, and stated that the Central Business Improvement District No. 1 had met on February 1st and had entered into a preliminary Inducement Agreement to issue the bonds up to an amount of $400,000. Mr. Butt added that the bonds are secured by a Letter of Credit from Mr. Bobby Odom and by various other securities that have been deposited at McIlroy Bank. Mr. Odom was represented by Attorney Don Elliott. Mr. Butt further stated that in order to qualify as tax exempt bonds, the issuance must be approved by a municipal body elected by a political subdivi- sion, as per recent tax law changes. City Attorney McCord stated that similar bond issues had been approved by the 407.2 CBID for the renovation of the Mountain Inn Hotel and the Southside Mall, and others, in accordance with enabling legislation at the time of those bond issues. However, at this time it is required by law that this type of bond issue be approved by either the elected executive official, or as in the case of the City Manager type of government, by the legislative body itself. Mr. McCord added that there is no risk to the City or to the Improvement District in that the bonds are secured solely by the mortgage•on the property and a personal guarantee of the borrower, with security being provided by a Letter of Credit, secured by the borrower, and issued by a commercial bank, guaranteeing payment of principal and interest on the bonds. (The average rate of interest on these bonds is 9.3% over a 10 -year period). Director Bumpass stated that he was not opposed to approval of the issuance of these bonds but questioned the procedure to be used in future issuance of these bonds. 407 407.1 407.3 Attorney Butt stated that his role as attorney for the CBID was to insure that the Improvement District has been validly formed, and that it proceeds in 407.4 accordance with state law. He added that bond counsel is usually one of three law firms in Little Rock, who are specialists in this area of the law and it is their duty to insure that these bonds are tax exempt. City Attorney McCord stated that it is incumbent upon the Board to insure 407.5 that the bonds authorized by the CBID are authorized for the purposes sanctioned by the enabling legislation, which are for the elimination of urban blight and decay and to provide for modernization and general improvement of the properties within the CBID. Mr. McCord suggested that as a matter of routine, the Board of Directors be provided the minutes of meetings of the CBID at which any Inducement Agreement and Resolution were authorized, the minutes of the meeting at which any bonds were authorized, and a cover letter explaining the project in detail. If the Board finds that the purposes of the enabling legislation are not being met, the Board can then refuse to grant that approval. Mr. Elliott stated that the building would be returned to its original turn- 407.6 of -the -century appearance, and that it was currently being considered by the Arkansas Society for Historical Preservation for inclusion on the Historical Register. There being no further discussion, Director Osborne, seconded by Director 407.7 Bumpass, made a motion to authorize the resolution approving the issuance of revenue bonds in the principal amount of $300,000 by the Central Business Improvement District No. 1, of the City of Fayetteville to finance the construc- tion and renovation of the Guisinger Building into professional offices. Upon roll call, the motion passed by a vote of 7-0. Director Sharp stated that he felt the group should be congratulated in 407.8 that the renovation would be an asset to the downtown square area. 40'S RESOLUTION NO. 20-83 APPEARS ON PAGE OF ORDINANCE & RESOLUTION BOOK XV CONTRACT CHANGE/MILHOLLAND ENGINEERING 408.1 Mayor Noland introduced a resolution authorizing an increase in a not - to -exceed contract for engineering services, in the amount of $300, for extra engineering and construction management for the 15th Street sidewalk project. 408.2 Director Bumpass, seconded by Director Sharp, made a motion to approve this resolution. Upnn roll call, the motion passed by a vote of 7-0. RESOLUTION NO. 11-83 APPEARS ON PAGE.37Z OF ORDINANCE & RESOLUTION BOOK )(1./ PROPERTY CLEAN-UP/KELLAR PROPERTY 408.3 Mayor Noland called for further consideration of an ordinance authorizing the City Manager to have the dilapidated and irreparable houses located on the east side of South Happy Hollow Road, northeast of the Industrial Park demolished at the owner's expense, which was tabled from the meeting of January 4th. 408.4 City Attorney McCord reported that following that meeting he had con- tacted Attorney Bill Murphy, counsel for the Kellar's, and advised him that the Board was considering the possibility of acquiring the property or have the property owners participate in a Community Development housing rehabili- tation program. Mr. Murphy was to ascertain from his clients whether they would be interested in either of these alternatives, as opposed to demolition pursuant to court proceedings. Mr. McCord had spoken to Mr. Murphy today and Mr. Murphy had asked that the matter be tabled for an additional two weeks, during which time he would meet with his clients and he would recommend, assuming a negotiated price could be agreed upon, the possibility of acquisition. 408.5 There being no further discussion, Director Lancaster, seconded by Director Osborne, made a motion to table this matter until the meeting of February 15, 1983. Upon roll call, the motion passed by a vote of 7-0. BILL OF ASSURANCE/VIRGINIA ST. DRAINAGE IMPROVEMENTS 408.6 Mayor Noland introduced a resolution authorizing the Mayor and the City Clerk to execute a Bill of Assurance with Barbara G. Taylor for the construction of drainage improvements along Virginia Street. 408.7 Mayor Noland stated that this is an area which has experienced periodic flooding and has been in need of drainage improvements. City Manager Grimes asked the Board for authorization to advertise for bids on this drainage project. 408.8 Director Bumpass, seconded by Director Johnson, made a motion to approve the Bill of Assurance and to advertise for bids for the construc- tion of the drainage project. Upon roll call, the motion passed by a vote of 7-0. RESOLUTION NO. 12-83 APPEARS ON PAGE 374 OF ORDINANCE & RESOLUTION BOOK XV 1 1 1 CLOSING OF BOAT DOCKS/AREA LAKES Mayor Noland called for the reading of an ordinance amending Section 12-3(a)(1) of the Fayetteville Code of Ordinances to provide that the boat docks at Lake Fayetteville and Lake Sequoyah shall be closed from December 24th 409.1 through January 14th of each year. City Attorney McCord read the ordinance for the first time. Mayor Noland, 409.2 seconded by Director Johnson, made a motion to suspend the rules and place the ordinance on second reading. Upon roll call, the motion passed unanimously, and the City Attorney read the ordinance for the second time. Director Bumpass, seconded by Mayor Noland, made a motion to further suspend the rules and place the ordinance on third and final reading. Upon roll call, the motion passed unanimously, and the City Attorney read the ordinance for the final time. a) Upon roll call, the ordinance passed by a vote of 7-0. 409 CO ORDINANCE NO. 2889 APPEARS ON PAGE a 7g OF ORDINANCE & RESOLUTION BOOK XII( U AGREEMENT WITH CITY OF GOSHEN rn a Mayor Noland called for approval of a resolution authorizing the Mayor and 409.3 the City Clerk to execute an agreement with the City of Goshen to establish the limits of the respective territorial planning jurisdictions of the City of Goshen and the City of Fayetteville. In discussion, City Manager Grimes and City Attorney McCord pointed out 409.4 that this agreement would not adversely impact upon the existing east planning area boundary. Director Osborne, seconded by Director Johnson, made a motion to authorize 409.5 the Mayor and the City Clerk to execute this resolution and agreement. Upon roll call, the motion passed by a vote of 6-1, with Director Lancaster voting in the minority. RESOLUTION NO. 22-83 APPEARS ON PAGE 79 OF ORDINANCE & RESOLUTION BOOK XV MODIFICATION/FIRE CONTRACT/CITY OF GREENLAND Mayor Noland introduced a request for approval by the City Board of a renewal of the Fire Protection Contract between the City of Fayetteville and the City of 409.6 Greenland. 1 Finance Director Linebaugh addressed the Board and stated that the formula used to reach the agreement was that used in the original contract, the rates being $5,683 for the first and second quarters, and the remaining third and fourth quarter rates to be determined when the Fire Department's Budget has been approved by the Board, and the pending compilation of information on changes in population due to the recent annexation. Mr. Linebaugh stated that the rate is expected to be approximately $6,001 for the third and fourth quarters. Director Bumpass, seconded by Director Orton, made a motion to authorize the execution of this resolution and contract with the City of Greenland. Upon roll call, the motion passed by a vote of 7-0. RESOLUTION NO. 24-83 APPEARS ON PAGE (22. OF ORDINANCE & RESOLUTION BOOK XVI 409.7 409.8 410 "NOT -TO -EXCEED" CONTRACTS/PROFESSIONAL SERVICES Mayor Noland introduced a resolution authorizing the City Manager to 410.1 approve expenditures of up to $2,500 in excess of the amount specified in "Not -To -Exceed" contracts for professional services or for the construc- tion of public improvements. City Manager Grimes stated that he sought this authorization in order 410.2 to avoid bringing frequent, minor requests to the Board each time a Change Order is necessary for legitimate project changes. Director Johnson, seconded by Director Osborne, made a motion to 410.3 approve the execution of this resolution. Upon roll call, the motion passed by a vote of 7-0. RESOLUTION NO. 13-83 APPEARS ON PAGE 37 7 OF ORDINANCE & RESOLUTION BOOK XV REVIEW OF PARTICIPANT WITHDRAWAL FROM RETIREMENT PLAN Mayor Noland called for discussion from the Board on the recommendations 410.4 from Dr. Bob E. Hall, of Hall Consulting, Inc., concerning the withdrawal, at will, of employees from the Fayetteville City Pension Plan. Dr. Hall addressed the Board regarding this matter and reiterated the 410.5 following recommendations: (1) Participants in the City's Retirement Plan who withdraw from participation (but who remain employed) shall be entitled only to a return of their contributions; (2) The vested employer portion shall be deferred to retirement, death, disability, or following a break in service upon termination of employment; (3) Terminated parti- cipants will be paid their employee contributions (plus interest) but the vested employer portion shall not be distributed until incurring a break in service; and (4) A participant that agrees to participate in the Plan on the anniversary of the Plan (June 1) shall not be permitted to cease participation until the following anniversary date, except in the case of extreme financial hardship or emergency to be approved by the Retirement Committee. Director Osborne, seconded by Director Orton, made a motion to accept 410.6 the recommendations of Dr. Hall. In further discussion of these recommendations, Finance Director Linebaugh stated that the Finance Committee had discussed this matter 41o.7 at its meeting of January 24th and there was concern raised over the fact that nineteen (19) employees have withdrawn from the Plan due to financial problems. Mr. Linebaugh stated the Committee felt the Plan was being considered as a savings account, rather than a Pension Plan. He added that the Finance Committee had raised the possibility of prohibiting withdrawal from the plan, but that was not the recommendation of Dr. Hall. 410.8 Director Osborne then withdrew his motion. Several members of the Board expressed the desire to investigate the possibility of forming the Retirement Committee, comprised of Department Heads, to determine the criteria for withdrawal from the Plan, and Dr. Hall volunteered to assist in its formation. 1 1 1 1 co co N U m Q 1 Director Osborne, seconded by Mayor Noland, made a motion to table the discussion until the meeting of March 1, 1983, in order to allow City Staff the opportunity to investigate the questions which were raised concerning the Retirement Plan. MODIFICATION OF LEASE AGREEMENT/FAST-FOOD SERVICE/AIRPORT Mayor Noland called for approval of a resolution authorizing the Mayor and the City Clerk to execute a modification of the City's Lease Agreement with Lorene O'Donnell for fast-food service in the Airport Terminal Building. Airport Manager Hogue stated that the rental fee was increased 7%, and the terms of the lease are for a five-year period. Director Osborne, seconded by Director Orton, made a motion to auth- orize the execution of this Modification of the Lease Agreement with Lorene O'Donnell. 411 411.1 411.2 411.3 411.4 Upon roll call, the motion passed by a vote of 7-0. RESOLUTION NO. 14-83 APPEARS ON PAGE g7g OF ORDINANCE & RESOLUTION BOOK XV LEASE AGREEMENT/LIMOUSINE RENTAL BOOTH/AIRPORT Mayor Noland called for approval of a resolution authorizing the Mayor 411.5 and the City Clerk to execute a Lease Agreement with Charles Cole for space in the Airport Terminal Building for an airport limousine rental booth for 1983. Director Lancaster, seconded by Director Johnson, made a motion to authorize the execution of this Lease Agreement. Airport Manager Hogue stated that the rental fee was increased 7% Lease Agreement. Upon roll call, the motion passed by a vote of 6-0-1, with Director being absent for this vote. on this Osborne 411.6 411.7 411.8 RESOLUTION NO. 15-83 APPEARS ON PAGE 387 OF ORDINANCE & RESOLUTION BOOK XV MODIFICATION OF LEASE AGREEMENT/METRO AIRLINES/AIRPORT Mayor Noland called for approval of a resolution authorizing the Mayor and the City Clerk to execute a modification of the City's Lease Agreement with 411.9 Metro Airlines, Inc., for space in the airport terminal building to modify the rent and fees payable thereunder for the year 1983. Director Johnson, seconded by Director Bumpass, made a motion to 411.10 approve the execution of this Modification of the Lease Agreement. Airport Manager Hogue stated that the airline had negotiated a 0% icrease, and had been invited to the meeting of the Airport Committee for discussion, but they elected to decline, and are therefore in acceptance of this increase. She 411.11 added that the Finance Committee had approved the new rate. Upon roll call, the motion passed by a vote of 7-0. 411.12 RESOLUTION NO. 16-83 APPEARS ON PAGE 395 OF ORDINANCE & RESOLUTION BOOK )0,/ 412 MODIFICATION OF LEASE AGREEMENT/SCHEDULED SKYWAYS, INC./AIRPORT Mayor Noland called for approval of a resolution authorizing the Mayor 412.1 and the City Clerk to execute a modification of the City's Lease Agreement with Scheduled Skyways, Inc., for space in the airport terminal building to modify the rent and fees payable thereunder for the year 1983. 412.2 Director Johnson, seconded by Director Bumpass, made a motion to approve the execution of this modification of the Lease Agreement. Airport Manager Hogue reiterated that the airline had negotiated a O% 412.3 increase, and, declining attendance at the meeting of the Airport Committee, elected to accept this increase. This rate was also approved by the Finance Committee. Upon roll call, the motion passed by a vote of 7-0. RESOLUTION NO. 17-83 APPEARS ON PAGE j3// OF ORDINANCE & RESOLUTION BOOK XV BID AWARD/#508/TRACTOR-BACKHOE 412.4 Mayor Noland called for approval of the award of Bid #508 for a tractor - backhoe for the Water & Sewer Department, Pollution Control Plant. This matter had been tabled from a previous meeting because of a difference of opinion about the specifications and the eligibility of the low bidder. The Purchasing Agent and City Engineer recommended the award of the bid to E.A. Martin Company, of Harrison. 412.5 City Engineer Bunn addressed the Board and stated that detailed speci- fications had been worked out for this bid and the view was that the JCB from E.A. Martin Company seemed suitable to their purposes. He said the Ford 555 was found to be unsuitable in that it was the same size as the John Deere 310A, which is being replaced because it is not large enough to meet the demands of the Pollution Control Plant. 412.6 Director Sharp voiced concern over the award of the bid to a firm which markets an English -made product which has not been fully tested in the local area, and Mayor Noland wondered about the difficulty of service and parts replacement for this product. Director Sharp made the suggestion of awarding the bid to the second lowest bidder, R.A. Young, of Ft. Smith, for a Case Super D machine, at a price which is approximately $600 higher than the lowest bidder's price. The City Attorney assured the Board that they had the authority to award the bid if they deemed it in the best interest of the City. 412.7 Director Lancaster, seconded by Director Sharp, made a motion to auth- orize the award of Bid #508 to R.A. Young of Ft. Smith, for a Case 580 Super D tractor -backhoe. Upon roll call, the motion passed by a vote of 7-0 BID AWARD/#510/ANNUAL CONCRETE CONSTRUCTION CONTRACT 412.8 Mayor Noland called for approval of a resolution authorizing the Mayor and the City Clerk to execute a contract with Gintonio Concrete Construction, Inc., to perform concrete construction on an as needed basis, to specifica- tions contained in Bid #510, and the proposal submitted by Gintonio Concrete Construction, Inc. Purchasing Agent, Sturman Mackey, reiterated that this firm is the overall low bidder on the project. RESOLUTION NO. 18-83 APPEARS ON PAGE '/0,2. OF ORDINANCE & RESOLUTION BOOK XV 1 1 OTHER;BUSI.NESS Water & Sewer Matter Mayor Noland stated that the Water & Sewer Committee had received a request 413.1 concerning the City's possible installation of sewer lines to serve the platted development north of the airport, the Miller Addition. One property owner, Mr. Joseph Terminella, had discovered that the ground was unsuitable for septic tank useage, verified by percolation tests run by Mr. Will Hastings of the Health Department. Also present was Mr. Arthur Miller, owner of Lots 1, 2, 3, 14 and 15 of the Miller Addition. He stated that the engineer on the project had taken percolation tests when the subdivision was approved and found the ground suitable for septic tanks. 413 City Engineer Bunn stated that the City's share in the installation of these CO sewer lines would be $39,700.00, and the property owner's share would be 413.2 CO $37,600.00, for a total project cost of $77,300.00. This would be $2100 per lot. I Directors Osborne and Bumpass suggested the possibility of the owners of the U property forming an Improvement District consisting of the majority of the 413.3 CO assessed valuation of the property. This was discussed as an alternative and Q City Attorney McCord stated that this could be accomplished within a reasonably short period of time, following published notice and public hearing, and once the commissioners of the district had formulated the plans and improvements, then an engineer could be hired to do the design work. 1 Mayor Noland indicated that it was important that the City earmark this area as invalid for septic tank useage, and it was determined that the Inspection Department would be instructed not to issue any building permits on these lots unless they have valid percolation tests performed by the Health Department. City Attorney McCord stated that if the Board determined to allocate funds for the westernmost sewer line to the designated lots, he would draft a con- tractual agreement between the City and the owners of the property which could be coordinated by the City Manager. The terms of the payout could be over a ten-year period, but subject to negotiation. Director Osborne, seconded by Director Sharp, made a motion to refer this matter to City Attorney McCord and City Manager Grimes, who were instructed to meet with the property owners and draft a contractual agreement concerning the cost-sharing of the installation of the line to the westernmost portion of this addition. The City Manager would report to the Board at the meeting of February 15th. There being no further discussion, upon roll call, the motion passed by a vote of 7-0. Swimming Pool - Wilson Park City Manager Grimes called for approval of the Plans and Specifications which had been prepared for the pool at Wilson Park. He stated that upon approval and authorization for bids, the project can begin. The estimated completion date is June 12th. He further stated that the Parks & Recreation Board had seen the plans and approved them, and that Mr. Richard Naylor had been in continual contact with the Health Department concerning these plans. Director Johnson, seconded by Director Lancaster, made a motion to approve the plans and specifications and to authorize the City Manager to advertise for bids on the project. 413.4 413.5 413.6 413.7 413.8 413.9 Upon roll call, the motion passed by a vote of 7-0. 413.10 414 Parking Lot Resurfacing/Airport Fire Station Mayor Noland called for approval of a resolution authorizing the 414.1 execution of a contract with Tomlinson Asphalt Company for the resurfacing of the parking lot at the Airport Fire Station. Mayor Noland indicated that this would cost $4,732.50, and there is a possibility that the City might be able to receive matching funds on this project. He specified that it was not an Airport project, but was a Fire Department project. 414.2 Director Lancaster, seconded by Director Osborne,made a motion to approve the execution of this contract and resolution. Upon roll call, the motion passed by a vote of 7-0. RESOLUTION NO. 23-83 APPEARS ON PAGE 1f7 OF ORDINANCE & RESOLUTION BOOK X Y 1 Agreement with State Board of Finance 414.3 City Attorney McCord stated that a resolution was before the Board to authorize the Mayor and the City Clerk to execute an agreement with the State Board of Finance for financial assistance to the City under the City -County Tourist Meeting and Entertainment Facilities Assistance Law. 414.4 Mr. McCord stated that the State Board of Finance had approved the City's application for funds, which are subject to the approval of the General Assembly. 414.5 Director Lancaster, seconded by Director Johnson, made a motion to authorize the execution of this resolution and agreement. Upon roll call, the motion passed by a vote of 7-0. RESOLUTION NO. 19-83 APPEARS ON PAGE 436 OF ORDINANCE & RESOLUTION BOOK XV Burlington -Northern R.R. Depot 414.6 Director Bumpass stated that he had met with Mr. Lyle Bratsch, Manager - Development Coordination, Glacier Park Company, which is a subsidiary of Burlington -Northern Railroad. Mr. Bratsch had informed Director Bumpass that he is sensitive to the historical significance of the train depot in many communities throughout the country, and he intended to make every effort to retain the Fayetteville depot. He is currently investigating the possi- bility of leasing the facility to someone in the private sector, but he did not furnish specifics regarding terms of that agreement. It was determined that Mr. Bratsch would contact the City at a later time if no agreement was reached with the private sector. Meetings Scheduled 414.7 Director Bumpass called a meeting of the Police and Fire Committee for Tuesday, February 8, at 1:00 p.m. Director Sharp called a meeting of the Street Committee for Friday, February 4, at 3:30 p.m., for the purpose of reviewing the budget and the ranking of priority items. 1 1 co co N U m Q Sidewalk Repair Director Osborne called.to the attention of City Staff an area in the vacinity of Underwood Jewelers northward to Best Sports, Inc. repair, as a result of the placement of some underground conduit by City Manager Grimes assured Director Osborne that the City will put back in good order later in the year. Annual Report to the People Director Osborne asked that the matter of a yearly version Report to the People be discussed at an upcoming meeting of the 415 of sidewalk , which needs 415.1 the City. the sidewalk of the Annual Board. MINUTES Meeting of January 24, 1983 - Changes to Minutes 396.3 - "would receive no net" should be changed to "would receive all 396.4 - "financial arrangement had been made" should be changed to "financial arrangement had not been made". ADJOURNMENT There being no further business, the meeting adjourned at 11:35 p.m. net" 415.2 415.3 415.4