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HomeMy WebLinkAbout1984-12-18 Minutes348 MINUTES OF A MEETING OF THE BOARD OF DIRECTORS A regular meeting of the Fayetteville City Boar held on Tuesday, December 18, 1984 at 7:30 P.M. of City Hall, 113 W. Mountain Street, Fayetteville, d of Directors was in the Board Room Arkansas. PRESENT: Mayor Noland; Directors Bumpass, Johnson, Lancaster, Martin, Orton and Sharp; City Manager Grimes, Assistant City Manager McWethy, City Attorney McCord, City Clerk Kennedy; members of the press and audience CALL TO ORDER Mayor Noland called the meeting to order, with six Directors present, and asked for a moment of respectful silence. REZONING R84-23/R.L. JESKE 348.1 Mayor Noland introduced an ordinance rezoning .19 acres located at 626, 628 W. Dickson Street, from R-3, High Density Residential, to C-3, Central Commercial. The Mayor noted that the Planning Commisson had voted, 5-0, to recommend approval and that the Planning Consultant, Larry Wood, had recommended the rezoning for the following reasons: 1. The property is being used and has been used for commercial purposes for a number of years; 2. There are commercial uses to the east and south; 3. The zoning district to the east and south is C-3; and 4. The General Plan recommends commercial use for the property. 348.2 There was no one present to represent the petitioner, R. L. Jeske, and the Mayor asked the City Attorney to read the ordinance for the first time. The ordinance was read and Director Bumpass, seconded by Johnson, made a motion to suspend the rules and place the ordinance on second reading. Upon roll call, the motion passed, 6-0. The City Attorney read the ordinance for the second time. Director Johnson, seconded by Bumpass, made a motion to further suspend the rules and place the ordinance on third and final reading. Upon roll call, the motion passed, 6-0. The City Attorney read the ordinance for the third and final time. The Mayor asked if anyone in the audience wished 1 1 349 December 18, 1984 to speak in opposition to the ordinance. No public opposition was 349.1 expressed. Upon roll call, the ordinance passed, 6-0, with Director Martin not present when the roll was -called. ORDINANCE NO. 3055 APPEARS ON PAGE ;?3, OF ORDINANCE & RESOLUTION BOOK .10( . CD LO ALLEY CLOSING W Mayor Noland introduced a request from FirstSouth Federal Savings 349.2 CO and Loan Association to close and vacate an east/west alley running a east from College Avenue to the north/south alleyway along a centerline 146 feet south, and running parallel to Dickson Street. William Storey was present to represent the petitioner. William Storey addressed the Board, explaining that the neighboring church has been made aware of the request and loins in the request, although their property does not adjoin. Storey explained there is another alley between the FirstSouth property and the church which is not part of the request. Mayor Noland noted that written concurrence had been obtained from appropriate utilities and City departments. The City Attorney read an ordinance to vacate and abandon the alley. Director Bumpass, seconded by Johnson, made a motion to suspend the rules and place the ordinance on second reading. Upon roll call, the motion passed, 7-0. The ordinance was read for the second time. Director Bumpass, seconded by Johnson, made a motion to further suspend the rules and place the ordinance on third and final reading. Upon roll call, the motion passed, 7-0. The City Attorney read the ordinance for the final time. The Mayor asked if anyone in the audience wished to speak in opposition to the ordinance. No public opposition was expressed. Upon roll call, the ordinance passed, 7-0. ORDINANCE NO. 3056 APPEARS ON PAGE .25 OF ORDINANCE & RESOLUTION BOOK x X QUITCLAIM DEED The Mayor introduced a resolution authorizing the Mayor and City Clerk to execute a Quit Claim Deed for a parcel of land six feet in width and 50 feet in length located on the south side of Lot 2 in the Van Hoose -Van Winkle Addition. The Mayor explained the property had, in the past, been intended for construction of a sidewalk. Storey explained the property is within the area of the alleyway just considered 349.3 349.4 349.5 349.6 350 December 18, 1984 350.1 and was deeded to the City on December 17, 1909 for the purpose of constructing the sidewalk and also for installing stone rip -rap on the north side of Spring Street. Storey added that, for many years, there was a house standing over this property. 350.2 Director Johnson, seconded by Bunpass, made a motion to authorize the execution of a Quit Claim Deed. Upon roll call, the motion passed, 7-0. RESOLUTION NO. 146-84 APPEARS ON PAGE In OF ORDINANCE & RESOLUTION BOOK )0(1 ACT 9 BONDS/COCA-COLA/7-UP BOTTLING PLANT 350.3 The Mayor introduced consideration of a resolution authorizing a Memorandum of Intent regarding the issuance of $10,000,000 in Act 9 Industrial Development Bonds for financing the costs of acquiring, constructing and equipping the Fayetteville Coca-Cola/7-Up Bottling Plant. 350.4 The Mayor pointed out that the Board considers the following factors before making a decision regarding such requests: 1. Whether the proposed project will produce additional employment opportunities for residents of the City of Fayetteville; 2. Whether the company demonstrates in writing such financial and organizational capability that there is no risk of default on the bonds; 3. Whether the proposed project will secure and develop "industry" rather than commercial development. The term industry shall include, but is not limited to, manufacturing facilities, warehouses, distribution facilities, repair and maintenance facilities, agricultural facilities and corporate and management offices for industry; 4. Whether the proposed project will provide economic stimulation for the economy of the area; and 5. Whether all or a substantial portion of the end product or service produced locally is either consumed elsewhere or consumed locally by visitors drawn by the activity, rather than the end product or service being marketed solely to retail customers in the area. 350.5 The Mayor opened the public hearing concerning the request. The City Attorney stated the required notice had been published. 1 December 18, 1984 Rick Ebersole, representing Franklin L. Haney, addressed the Board. Ebersole pointed out that the request is different from that which was presented to the Board on December 4th; that they are no longer seeking funds for acquisition of Fulbright Enterprises and the amount of their request has been reduced to $6,500,000. Ebersole explained all funds would be applied exclusively to capital expansion of existing facilities. Ebersole noted that IRS regulations require that the proceeds of, the bonds be expended within three years. Ebersole stated that the Haney Company presently does not own any other bottling interests although they expect to acquire such interests when they have completed the takeover of Fulbright Enterprises. Ebersole estimated the capital expenses associated with the expansion could exceed $8 million over three years but projected that revenues would be sufficient to make additionally needed capital available. Ebersole listed the types of facilities they feel will be necessary: (1) the addition of a canning line; (2) a larger storage for soft drinks; and (3) the expansion of existing bottling facility. Regarding the creation of additional Sobs in Fayetteville, Ebersole noted that the company expects there to be an additional 100 jobs created within five years, with a corresponding increase in tax base for the City of Fayetteville. Ebersole explained that while all of the company's product will be produced within the city, their marketing area approaches 200,000 people in Benton and Washington counties. Director Bumpass asked what assurance the Board would have that the bond proceeds would be expended for the projects as specified by Ebersole. The City Attorney explained that requests for "draw downs" must be approved and signed -off by both the borrower and the lender. Director Bumpass asked if the Board could require that requests be reviewed by the Finance Committee or the Board and the City Attorney replied that the Board may designate the Finance Committee as opposed to the Finance Director (the usual designee). McCord commented this has never been done before and would be a time-consuming process. City Manager Grimes suggested that a summary should be supplied to the Finance Director who could bring any questions before the Board. In answer to a question from Bumpass, a deal had not yet been closed with accepted in principle and closing is year. Ebersole explained that, although Fulbright Industries, they have to take place by the end of the Addressing the criteria that the product not be marketed solely to retail customers "in the area", Director Sharp questioned whether the Board's intent was the Northwest Arkansas area or within the city limits of Fayetteville. Ebersole commented that the company intends to expand their service area in the future through the acquisition of other existing franchises. 351 351.1 351.2 351.3 351.4 351.5 351.6 352 December 18, 1984 352.1 Director Martin asked for more specifics regarding the company's expen- diture of bond proceeds. Ebersole provided these details - (1) that a 40,000 square -foot warehouse is proposed to be built with some refriger- ation capability, at a cost of approximately $45 per square foot, or a total cost of approximately $1.8 million; (2) a storage facility is proposed to be built within three to five years at a cost of approxi- mately $45 per square foot; (3) a canning line is proposed to be added at a cost of approximately $1 1/2 million; (4) expansion of the existing line at a cost of approximately $1 million; (5) the purchase of service vehicles at a cost of approximately $600,000 and two service bays for about $300,000; (6) furniture and fixtures at a cost of about $100-200,000 and (7) additional office space to cost about $100,000. Ebersole noted these expenses would exceed the amount of bond proceeds and do not include the cost of vending machines or acquisition of other exisiting franchises. 352.2 Director Bumpass pointed out that, should the Board approve a memorandum of intent, there is a "moral obligation" to then pass the ordinance to issue the bonds. The City Attorney explained that the bond issue must be totally closed by the end of the year because of existing regulations. 352.3 Director Martin asked Ebersole if it would be possible to operate any of the new facilities with the current level of employees. Ebersole explained the need for the new facility is based on a projection of increased sales and increased production which, if they take place, would create a need for new employees. 352.4 Director Johnson suggested the possibility of the Board calling another meeting to consider this issue on December 31st. After further dis- cussion, the Mayor asked Ebersole if more detailed information could be provided, in writing, between now and December 31. 352.5 The City Attorney explained the purpose of an inducement resolution is to enable the borrower to recoup expenditures - that there would be no reason to adopt the inducement resolution if the Board wishes to give further consideration to the request. The City Attorney suggested the Board extend the public hearing until December 31st, allow Haney Company to provide the additional information, publish and file notice requirements and on December 31st, the Board may consider the adoption of the bond ordinance. 352.6 With six Directors being available to meet on December 31st, the Mayor declared the public hearing be extended until December 31st. The Mayor noted five favorable votes would be needed to approve the bond ordinance. 352.7 Director Lancaster asked that the company provide information relating to expansion and creation of new jobs, not relating to further acquis- itions. The City Attorney noted that the bond ordinance could include 1 U) N IJ co Q December 18, 1984 wording which would specify exactly how proceeds will be used. Director Sharp asked that information be provided to show that 90% of the company's sales are 15 miles outside the City of Fayetteville. Director Bumpass asked that an explanation be provided as to what the detrimental effect to the company would be if the projects were to be done in phases. AIRPORT CONTRACT/FOUR-HOUR FIRE WALL Mayor Noland introduced consideration of the award of a contract for installation of a four-hour fire wall in the 13 -unit T -hangar which is to be erected in January of 1985. City Manager Grimes explained that, since only one bid was received, another contractor was asked to provide costs and the figures were so close it was decided to recommend the bid be awarded to the one bidder, Structural Systems. • Director Johnson, seconded by Bunpass, made a motion to award the bid to Structural Systems for $8,080. Upon roll call, the motion passed, 7-0. RESOLUTION NO. 147-84 APPEARS ON PAGE 1ok l OF ORDINANCE & RESOLUTION BOOK XX ONE-HOUR FIRE WALLS Mayor Noland introduced consideration by the Board of the installation of a total of 3 1/2 one-hour rated fire walls in the new 13 -unit T -hangar at an estimated cost of $4,260.00 for materials. The Mayor added that the Bulding Board of Appeals has approved the necessary variance for this project. The City Attorney explained that the fire walls are a requirement of the State Fire Code and the City received a variance from the Building Board of Appeals to reduce the number of partitions required, at a dollar savings, without increasing the fire risk. Airport Manager Dale Frederick noted that he had received information from Weinland Corporation that the cost of the T -Hangar has been reduced from the original contract price of $121,000 to $117,610. Director Johnson, seconded by Martin, made a notion to approve the purchase of materials for $4,260. Upon roll call, the motion passed, 7-0. 353 353.1 353.2 353.3 353.4 353.5 353.6 353.7 353.8 354 EXTERIOR WINDOWS/AIRPORT OFFICE December 18, 1984 354.1 Mayor Noland introduced a request for Board approval to purchase three exterior windows for the Airport Manager's office area. 354.2 Airport Manager Frederick explained the desire is to reproduce the same type of window which was used in the terminal building but it might be possible to save on costs by using residential windows instead. Frederick asked if the Board would approve a residential window if it met with the approval of the architect. 354.3 City Manager Grimes noted the cost estimate to use as was used in the terminal building would be within suggested the Board authorize the alternative window architect's approval and, if the architect does not the other windows would be used. the same window budget, and he subject to the approve, then 354.4 Director Lancaster, seconded by Orton, made a motion to approve the City Manager's recommendation. Upon roll call, the motion passed, 7-0. SEWER TAPPING MACHINE 354.5 Mayor Noland introduced an ordinance waiving competitive bidding require- ments for the purchase of one sewer tapping machine; and authorizing the purchase from Midwest Manufacturing, Inc. of Shawnee Mission, Kansas. Noland commented that City Engineer Don Bunn has explained that the department has a machine of this type, their experience with the machine has proven it to be durable and reliable, and that personnel are trained in its use and operation. The Mayor explained that the $2,631 cost is within the budget. 354.6 The City Attorney read the ordinance for the first time. Director Bumpass, seconded by Johnson, made a motion to suspend the rules and place the ordinance on second reading. Upon roll call, the motion passed, 7-0. McCord read the ordinance for the second time. Director Johnson, seconded by Bumpass, made a motion to further suspend the rules and place the ordinance on third and final reading. Upon roll call, the motion passed, 7-0. The ordinance was read for the final time. Upon roll call, the ordinance passed, 7-0. ORDINANCE NO. 3057 APPEARS ON PAGE BOOK yy OF ORDINANCE 6 RESOLUTION 1 December 18, 1984 20% FUNDING Mayor Noland introduced a resolution authorizing the expenditure of up to 20% of the amounts in the 1984 budgets until, the 1985 versions have been approved. 355 355.1 Director Lancaster, seconded by Orton, made a notion to pass the reso- 355.2 lution. Upon roll call, the notion passed, 7-0. RESOLUTION NO. 148-84 APPEARS ON PAGE 13,5 OF ORDINANCE & RESOLUTION BOOK AX/ w CO a OTHER BUSINESS Nominating Committee Report Amendment to Code Director Johnson, Chairman of the Nominating Committee, introduced an ordinance which would amend Article VI, Section 2-98 of the City Code which requires that the Youth Center Board make three appointments to the Parks and Recreaton Advisory Board. McCord read the ordinance for the first time. Director Bumpass, seconded by Johnson, made a motion to suspend the rules and place the ordinance on second reading. Director Orton noted that the recommendation is that the ordinance provide for appointments to be made by the City Board and not go through the Youth Center Board. The City Attorney clarified that the ordinance would provide that all members be appointed by the Fayetteville Board of Directors. Upon roll call, the motion passed, 7-0. McCord read the ordinance for the second time. Director Johnson; seconded by Bumpass, made a motion to further suspend the rules and place the ordinance on third and final reading. Upon roll call, the motion passed, 7-0. The ordinance was read for the final time. Upon roll call, the ordinance passed, 7-0. ORDINANCE NO. 3058 APPEARS ON PAGE 77 OF ORDINANCE & RESOLUTION BOOK )(X 355.3 355.4 355.5 355.6 el, .• . 1 1 r.. Appointments to Citizen Boards Director Johnson, seconded by Sharp, made a motion to approve the 355.7 appointments of Beverly Melton and David E. Lashley (from the Youth 356 December 18, 1984 356.1 Center Board) and C. Robert Emerson, Rodney Ryan, and Charles D. Yarbrough to the Parks and Recreation Advisory Board for terms expiring January 1, 1987. Upon roll call, the motion passed, 7-0. Director Johnson reported there were nine applications for these positions. 356.2 Director Johnson reported there were 11 applications for positions on the Planning Commission. Johnson, seconded by Sharp, made a motion to approve the appointments of Barbara Crook, Ernest Jacks and Trey Trumbo to the Planning Commission for terms expiring January 1, 1989. Upon roll call, the motion passed, 7-0. 356.3 Director Johnson, seconded by Sharp, made a motion to approve the appointment of J. W. "Bill" Gould to the City Hospital Board of Control for a term expiring January 1, 1989. Upon roll call, the motion passed, 7-0. 356.4 Director Johnson noted that 24 applications were submitted for seven appointments to the new Arts Center Board. Johnson explained the terms of two members would expire January 1, 1986, the terms of two members would expire January 1, 1987 and the terms of three members would expire January 1, 1988 -- that the Arts Center Board will choose their terms at the first meeting. Johnson, seconded by Bumpass, made a motion to approve the appointments of Stephen E. Adams, Sarah M. Burn- side, Mary Margaret Durst, Frank Sharp, Loris Stanton, Billie Jo Starr and Roger Widder to the Arts Center Board. Upon roll call, the motion passed, 6-0-1, with Sharp abstaining. 356.5 Director Johnson noted the Nominating Committee wishes to provide a list of the remaining applicants to the Arts Center Board for their use in creating an Advisory Board. 356.6 Director Orton encouraged citizens and applicants for appointment to attend any meetings and she stressed that meetings on the various committees are open to the public. Sidewalk on Lafayette 356.7 Mayor Noland referred to the citizen request for a sidewalk located on the south side of Lafayette Street running west approximately 160 feet from Fletcher. The Mayor commented that the Board had visited the location and saw the need for the sidewalk - the Mayor noted that the Board will be considering the 1985 budget very soon. Community Development Monitoring Report 356.8 The Mayor expressed pride in the monitoring report Bade by HUD of the City's Community Development Program, stating it was the "most glowing" report the City has ever received. The Mayor commended the 357 December 18, 1984 Community Development Director, Sandra Carlisle, for her excellent 357.1 work in keeping the program in such good order. Resolution in Support of C.D. Program The Mayor introduced a request from Community Development Director Carlisle that the Board pass a resolution in support of the concept of Community Development to be sent to congressional representatives. 357.2 WDirector Orton, seconded by Johnson, made a motion to pass a resolution 357.3 urging support of the Community Development Program and reflecting CO that the Program bas provided substantial benefits to the low and Cr moderate income persons in the community. Upon roll call, the motion passed, 7-0. RESOLUTION NO. 149-84 APPEARS ON PAGE J 3 62 OF ORDINANCE & RESOLUTION BOOK XX 1 1 Property at 618 Lafayette Mayor Noland reported on the status of an unsafe structure located at''618 West Lafayette Avenue: At the -November 20th meeting an ordinance was introduced ordering the razing and removal of the strucuture, Director Johnson reported that the owner had obtained a building permit to repair the structure and the issue was tabled. City Manager Grimes reported that, after conferring with the property owner, some progress is expected to be made very soon. Director Johnson reported bids have been taken for demolition of the structure. Flashing Ltght/Millsap and Highway 71B City Manager Grimes introduced the request from Northwest National Bank for a flashing.yellow warning light at the intersection of Millsap and Highway 71B. Grimes estimated the cost of a "very basic type installation" to be about $2585, including wood poles and cables. Grimes asked that the Board consider the request, noting that the Highway Department is not enthusiastic about the installation of a stoplight. With Grimes noting that the City has a permit from the Highway Department, Director Lancaster, seconded by Orton, made a motion to authorize the City Manager to proceed with the installation of a flashing yellow warning light. Upon roll call, the motion passed, 7-0. 357.4 357.5 357.6 358 December 18, 1984 Expression of Appreciation to Director Sharp 358.1 Phil Colwell, resident of 1122 Hillcrest, addressed the Board, thanking Director Frank Sharp for his service to the City over the last several years. Colwell noted that Director Sharp's footsteps will be noticed for many years in the community, especially in the area of the Arts Center. 358.2 Mayor Noland commented that Director Sharp, whose term on the Board expires at the end of this year, was presented a plaque at the Employee Banquet. 358.3 Director Sharp thanked the staff in the City Manager's Office, the City Attorney and the Finance Director for their cooperation and help over the years. Sharp thanked the Board for listening to and respecting his point of view and he thanked the citizens for their support of the Board of Directors. January Board Meetings 358.4 Director Johnson noted that the first Board meeting in January is scheduled for January 1, a holiday. With the Board expressing general agreement, Director Johnson, seconded by Bumpass, made a motion that regular Board meetings for January be scheduled for January 8 and January 22. 358.5 The City Attorney reported that a Petition had been filed and a Notice published for annexation of additional property to the Central Business Improvement District. McCord explained the Notice specifies that the matter will be considered at a regular Board meeting on January 2nd (because the Ordinance provides that the Board meet on the day following a holiday). The City Attorney pointed out that re-advertisment would have to be done should the Board decide not to meet on January 2nd. 358.6 Upon roll call, the motion passed, 6-0-1, with Director Sharp abstaining. MINUTES 358.7 The following corrections were made to the Minutes of the December 2nd meeting: 302.6 "of" should read "toward" 303.7 "Lancaster" should read "Sharp" 304.3 "raise" should read "lower" N W Q December 18, 1984 The following corrections were made to the Minutes of 4th meeting: the December 333.1 In the fifth line, "...other employers;..." read "...other local employers;..." 333.4 In the last line, "...alley to the north," "...alleys to the north and east..." should should read The Minutes of the December 2nd, December 4th and December 7th meetings were approved as corrected. ADJOURNMENT With no further business before the Board, the meeting was adjourned at about 9:25 P.M. 359 359.1 359.2 359.3