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HomeMy WebLinkAbout1985-11-19 Minutes380 MINUTES OF A REGULAR MEETING OF THE BOARD OF DIRECTORS 380.1 A regular meeting of the Fayetteville Board of Directors was held on Tuesday, November 19, 1985 at 7:30 P.M. in the Board Room of City Hall, 113 Test Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor Noland; Directors Bumpass, Hess, Johnson, Lancaster, Martin and Orton; City Manager Grimes, Assistant City Manager McWethy, City Attorney McCord, City Clerk Kennedy, members of the press and audience. 1 CALL TO ORDER 380.2 The meeting was called to order at 7:30 P.M. with six Directors present. The Mayor asked for a moment of respectful silence. ACT 9 BONI'.6/HACRNEY BR0S. BODY CO. 380.3 The Mayor introduced an ordinance authorizing the issuance of up to $700,000' in Act 9 Industrial Development Revenue Bonds -for financing the costs of acquiring, constructing, and equipping industrial facilities for the Hackney Bros. Body Company. 380.4 The Mayor explained that the Board previously had approved a resolution of intent, in support of this bond issue. Noland stated that, at that time, the Board determined the project met standard criteria, such as the following: That the proposed project would produce additional employment opportunities for the residents of Fayetteville; That the company demonstrated in writing such financial and organi- zational capability that there is no risk of default on the bonds; That the proposed project would secure and develop "industry rather than commercial development; That the proposed project would provide economic stimulation for the economy of the area; and That all or a substantial portion of the end product or services produced here will be consumed elsewhere rather than locally. 380.5 At the request of the Mayor, City Attorney McCord read the ordinance for the first time. Director Bumpass, seconded by Johnson, made a motion to suspend the rules and place the ordinance ori its second reading. Upon roll call, the motion passed 7-0. McCord read the ordinance for the second time. Director Bumpass, seconded by Johnson, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion passed 7-0. Director Bumpass asked a representative from Hackney Bros. Body Company to explain how the bond proceeds would be used and how many new jobs would be created. Clark Noland, speaking for the Company, explained that Hackney Bros. custom builds refrigerated truck lines. Noland stated that, in order to increase production, the Canpany plans to expand the plant. Noland stated the Company presently has about 60 production employees and they hope to add 30 additional employees. James Buttry, Attorney for Hackney Bros., noted that this would be the third bond issue and the second expansion for Hackney since they came here in 1978. City Attorney McCord noted that federal law requires that a public hearing be held on the proposed bond issue. Mayor Noland opened the public hearing and asked if anyone present opposed this issue. None were forthcoming. The Mayor closed the public hearing. Upon roll call, the ordinance passed 7-0. ORDINANCE NO. 3151 APPEARS ON PAGE BOOK xxiII 467 OF ORDINANCE & RESOLUTION REZONING PETITION R85-26 The Mayor introduced an ordinance rezoning property, as requested in rezoning petition R85-26 and noted that this ordinance was left on the third reading at the last meeting until a certified mail receipt is obtained showing proof that notice has been sent to the property owner. Planning/Community Development Director Sandra Carlisle stated she received a returned certified letter she had sent to the co-owner which was undeliverable because he now lives in Missouri. Carlisle further stated that the other owner, his daughter, never knew that the property had been zoned F-1 and requested that it be reverted back to C-2 zoning. Director Johnson, seconded by be suspended and the ordinance Upon roll call, the motion for the third time. Upon roll Bumpass, made a motion that the rules be placed on its third and final reading. passed 7-0. McCord read the ordinance call, the ordinance passed 7-0 ORDINANCE NO. 3152 APPEARS ON PAGE 472 OF ORDINANCE & RESOLUTION BOOK xxnn2 • 381 381.1 381.2 381.3 • 381.4 381.5 381.6 382 November 19, 1985 REZONING PETITION R-85-29 382.1 The Mayor introduced an appeal of a decision by the Planning Commission regarding the failure to rezone 1.96 acres at the southwest corner of the intersection of Old Farmington Road and Shiloh Drive. Requested rezoning is from A71 "Agricultural" to C-2 "Thoroughfare Commercial". Noland stated that the planner's report • recommended against rezoning for the following reasons: 1. The introduction of C-2 zoning at this location would open up the west side of the Fulbright Expressway to commercial development; 2. R-2 zoning would establish a transition from the commercial development to the south and the residential properties to the north and west; and 3. R-2 zoning is consistent with the recommendations of the General Land Use Plan. 382.2 Carolyn Schisler, speaking on behalf of the request, stated there was no decisive action from the Commissioners and she disagreed with the recommendations of the planning report, stating: (1) it is her contention that the west side of Fulbright Expressway is already open to commercial development, (2) Mr. Hickman's property is unsaleable as it is, and (3) she cannot see how this rezoning would hurt the General Land Use Plan since all the other property around this parcel is commercial. 382.3 Director Orton stated the dividing line between two zones is usually along the back boundary, rather than facing the street so that a res- idential area doesn't face a commercial area. Schisler pointed out that none of the surrounding property owners have objected to the rezoning and noted she had a petition signed by residential and business people in the area who are in favor of the rezoning. 382.4 Orton commented that until there is a new Land Use Plan developed, now is -not the time to rezone this property. Orton added that the present Land Use Plan for this area was written so as not to strip -zone the by-pass with commercial zoning. Director Hess stated he doubted that anyone would want to build a hone in that spot and he felt that R-2 was the wrong zoning. Hess asked Schisler whether R-0 zoning, serving as a buffer, would be adequate to suit Hickman's purpose. Schisler responded she would accept R-0 if the Board denies the C-2 rezoning, but stated she would prefer C-2. 382.5 Director Bumpass stated he possibly would be in favor of the rezoning if he was convinced that Old Farmington Road would be the boundary of commercial zoning and it would go no further. But, Bumpass added, if R-0 would be acceptable, it would give Hickman more options and more uses. City Attorney McCord read the ordinance for the first time. November 19, 1985 Director Martin stated he didn't feel the argument for continued encroach- ment along the by-pass was a valid one and commented that "if there is any place where C-2 zoning is appropriate, it's at the intersection of two major roads, buffered by yet another road." Orton conmented that Old Farmington Road is not a major road. In answer to a question from Bumpass, Bob Fairchild, speaking in favor of the rezoning, stated that the property does not abut Hwy. 62. Fairchild went on to say he felt that Old Farmington Road is going to be a major road. Fairchild stated that Hickman's 1.96 acres is the only A-1 zoned property in that area and R-0 zoning would not accomplish anything. Director Bumpass stated he was not convinced the property should be rezoned C-2 and suggested the ordinance be left on its first reading until the entire Board can view the property together. The Mayor concurred and the ordinance was left on the first reading. CRAY MGT., INC INC.PMENDMENT 10 BILL OF ASSURANCE Mayor Noland introduced a request by Gray Mgt., Inc. for an amendment to a Bill of Assurance, which was signed as a stipulation to the'approval of a large scale development in Woodland Hills, for the improvement of James Street. The Bill was executed on November 15, 1984, and street improvements were to be completed within one year or by the time 40 dwelling units had been constructed. To date, no construction has started. Gray requested an amendment which would allow the James Street improvements to be completed one (1) year after the occupancy of the first unit. Tom McLaughlin, a representative frau Gray Mgmt., stated Gray is still planning on doing the project, to be started in the first quarter of 1986. In answer to a question from Bumpass, McLaughlin said the amendment is requested because the project is to be done in four different phases and the improvements to James Street need to be done in conjunction with phases three and four. In answer to a question from Orton, McLaughlin stated they have acquired the right-of-way for the access street from their property to James Street. Hess stated he would prefer that the amendment require the improvements be completed one year after the beginning of construction, as opposed to after the occupancy of the first unit. Director Lancaster, seconded by Orton, made a motion to grant Gray a 6 month extension on the existing Bill of Assurance. City Manager Grimes pointed out that Gray may be unable to complete the work in 6 months because they may only have two months construction weather. Grimes went on to say that an 8 or 9 month extension would probably be more reasonable. Director Lancaster, seconded by Orton, amended his motion to grant a 9 month extension on the existing Bill of Assurance. At the request of Bumpass, McLaughlin agreed to furnish the City a copy of the right-of-way easement agreement. Upon roll call, the motion passed. 6-1 with Johnson in the minority. 383 383.1 383.2 383.3 383.4 384.1 384.2 384 November 19, 1985 SIGN VARIANCE The Mayor introduced an ordinance amending the City Code by stipulating that a sign. variance granted by the City Board will expire if not complied with in thirty days. City Attorney McCord pointed out the ordinance would implement a decision previously made by the Board McCord read the ordinance for the first time. Bumpass, seconded by Johnson, made a motion that the rules be suspended and the ordinance beplaced on its second reading. Upon roll call, the motion passed 7-0. • The ordinance was read for the second time. Bumpass, seconded by Johnson, made a nation that the rules be further suspended and the ordinance be placed on its third and final reading. Upon roll call, the motion passed 7-0. The ordinance was read for the third time. Upon roll call,"the ordinance passed 7-0. ORDINANCE NO. 3153 APPEARS ON PAGE 474 OF ORDINANCE & RESOLUTION BOOK xxIII 384.3 McCord stated the Board had expressed a concern recently over a loophole in the ordinance whereby one business can have two freestanding signs if the business is located on separate lots. He stated that it was the staff's impression, from con.nents made by Directors, that the Board desired for only one freestanding sign to be permitted per business, regardless of the number of platted lots that might be involved. If that is the desire of the Board, McCord recommended that the ordinance be clarified. The Board indicated that such an amendatory ordinance should be placed in the agenda for the next meeting. WATER RAZE STUDY. 384.4 Mayor Noland introduced a resolution authorizing the execution of a contract with Black & Veatch Engineers -Architects for the performance of a ccanprehensive water rate study. In a memo to the Board, Finance Director Scott Linebaugh pointed out that the City of Fayetteville has not changed its water rates since April of 1980 and recommended that, based on a proposal from Black & Veatch, the firm be contracted to perform a comprehensive study at a fee of $38,500, for the following reasons: 1. Our current rates are not covering the water expenditures; 2. We need to define the proper split between Water & Sewer Revenues required so that one type of user is not supporting another; 3. It has been approximately five years since the last study was performed, and • November 19, 1985 4. We are anticipating a need to spend a large amount on capital between the Beaver Water District expansion and the improvements need in our system. Noland stated he thought that Black & Veatch would try to do a rate study on the basis of cost -of -service. Orton stated that, at the Board Water & Sewer Committee meeting, the Committee discussed the idea that the Board, before the study begins, should state any policies they wish to have included in the firm's consideration of the cost - of -service. Orton suggested policy considerations such as continuing to charge "out -of -city" water customers more than "in=city" customers, and secondly, that residential low income, low -water -users be charged a lesser minimum charge. Mayor Noland suggested the Board members be given an opportunity to meet with Black & Veatch to discuss these issues. Director Martin agreed, cautioning that the extra charge to out -of -city users might be detrimental to the users in the city, "to the extent that additional users can be added which would cover the fixed cost of the system." Director Lancaster, seconded by Johnson, made emotion that the resolution be passed. Orton stated that since Black & Veatch has done this particular study for the City for the past several years, she feels there would be advantages in changing fiitb after this study is completed. Johnson concurred with this suggestion. Upon roll call, the motion passed 7-0. RESOLUTION NO. 120-85 APPEARS ON PAGE BOOK xxIII DRAINPGE ENGINEERING 69 OF ORDINANCE & RESOLUTION The Mayor introduced a resolution authorizing the execution of a contract with McClelland Consulting Engineers for the design and construction supervision of drainage facilities along Highway 16 West, in the area of Rupple Road. Bumpass asked if the recent flooding problems, due to heavy rains, has given the City an opportunity to identify' some critical drainage areas "that might exist closer in". Bumpass further asked if, in the opinion of the staff, this is the most critical spot in the City. Noland stated this was previously discussed and it was decided that the City would have part of the work done on the front end, and as development occurred, that there would be so much per acre charged to the developers for the existing drainage that is in place Grimes stated he would like to get the engineering done so hopefully the funds could be budgeted to do the construction work in the coming year. Grimes further noted there are other drainage problems and the City is addressing these, stating "we just have to take them as we can afford them." Bumpass pointed out that it was reported that there were 20 houses in one neighborhood that had water 4' deep from 385 385.1 385.2 385.3 385.4 386 • November 19, 1985 386.1 recent flooding. Hess statedthat problem was caused by a creek in that area. Grimes stated that, had that area been inside the City limits when those homes were (wilt, they would not have been allowed to be constructed there. 386.2 • McCord advised the Board that the City cannot construct a public improve- ment and thereafter assess the abutting property owners for the cost of that improvement. He stated that procedure requires the formation of an improvement district, initiated by the property owners. In answer to a question from Grimes, McCord stated that a future developer can be required to bear that portion of the cost for an off-site improve- ment which bears a rational nexus to the needs created by the development. McCord went on to say that, if the work is going to be done in phases, the Board can require a subsequent developer to contribute to the cost of a future phase. 386.3 Grimes, answering a question from Director Martin,, stated the project was not put out for bids due to a comprehensive drainage study of this area which was done by McClelland previously, due to the relatively small fee quoted by the firm and the firm's familiarity with the area, and because he felt it would permit the City to expedite the project more quickly. Martin stated that in one other instance he can remember, the Board refused to honor the expertise of an engineering firm in a study they had previously done and required that the project be put out for bids Martin remarked that the Board was not being consis- tent. Hess concurred and stated this points out a need for the City to have a professional engineer on the staff. 386.4 Johnson, seconded by Orton, made a motion that the resolution be passed. Upon roll call, the motion passed 4-3, with Martin, Hess and Bumpass in the minority. RESOLUTION NO. 121-85 APPEARS ON PPGE. 75 OF ORDINANCE & RESOLUTION BOOK XXIII FAA GRANT 386.5 The Mayor introduced a resolution authorizing the execution of a Federal Aviation Administration grant application; and the approval of an $18,450 budget adjustment. 386.6 Noland pointed out that the potential return on this investment would be about $350,000. In answer to a question from Noland, Ede Hogue stated these funds will be used to conduct an obstruction study at the airport which will also include an estimate of what the obstruction removal will be. Hogue said the study could probably be completed in 6-9 months and also noted that the amount of the requested budget adjustment represents 5% of the project cost and would be included in the 1986 budget. In answer to a question from Orton, Hogue stated McClelland Engineers was selected to do the study. In answer to a question from Martin, Hogue said the City is not committing to the November 19, 1985 removal of the' obstructions regardless of the cost and added that the grant will not be issued by the FAA until the project has a firm figure. McCord pointed out that the resolution would simply authorize the execution of a grant application. McCord stated that no expense would be incurred by the City until the Board accepts the grant. Hogue concurred. In answer to a question from Hess, Hogue stated that the FAA will pay 90% of the cost of the engineering study. Director Bunpass, seconded by Hess, made a motion that the resolution be passed. Upon roll call, the motion passed 7-0. RESOLUTION NO. 122-85 APPEARS ON PILE 96 OF ORDINANCE & RESOLUTION BOOK XXTIT In answer to a question from Martin about from where funds would be taken for a budget adjustment, Hogue stated that the Airport's capital account has funds which have been committed but will not be expended this year. Director Martin, seconded by Hess, made a motion to approve the budget adjustment with the source yet to be determined. Upon roll call, the motion passed 7-0. Hogue announced that a reception would be held in the terminal building Thursday morning from 9:00 - 10:30 to host the airlines, travel agents, Chamber people, the business community and the University to try to better acquaint potential users of the airport about the services available. Director Johnson, seconded by Bumpass, made a motion that the Mayor submit a letter to our senators and representatives reiterating our request for the Microwave Landing System and the radar system. Upon roll call, the motion passed 7-0. LAND AOQUISITION Mayor Noland introduced a request by the City Engineer for authorization to pursue the acquisition of a 40 -acre parcel located in the Wyman Community, east of the White River and adjacent to other city -owned property. Noland pointed out that this land has been offered to the City and is not being condemned and stated that the property is surrounded on three sides by city -owned land that would be used in the sludge disposal and effluent irrigation project which will be constructed in conjunction with the new sewer treatment plant. In answer to a question from Johnson, City Engineer Don Bunn stated funds are available to purchase this land but noted that the purchase would not be grant - eligible. 387 387.1 387.2 387.3 387.4 387.5 387.6 387.7 387.8 388.1 38 .8 November 19, 1985 Director Johnson, seconded by Orton, made a motion that the City Engineer be given the authorization to purchase this land. In answer to a question from Hess, Bunn stated that the City has only received one appraisal for the land. In answer to a question from Bumpass, Bunn stated that the landowners would accept $50,000 for the property but he did not know whether the owners would accept $40,000 for the property. Upon roll call, the notion passed 6-1 with Surpass in the minority. UTILITY EASEMENT '388.2 The Mayor introduced a resolution authorizing the execution of a 15' utility easement for Arkansas Western Gas Company along the north side of Routh Park; for the relocation of gas lines in connection with the replacement of the Old Wire Road bridge. •388.3 Director Johnson, seconded by Bumpass, made a motion that the resolution be passed. Upon roll call, the motion passed 6-0-1 with Director Martin abstaining. RESOLUTION NO. 124-85 APPEARS OF PAGE OF ORDINANCE & RESOLUTION BOOK XXIII CBID BONDS 388.4 The Mayor introduced a resolution .approving the issuance of up to $2,250,000 in revenue bonds by the Central Business Improvement District #1, for financing of the Woolworth Building Renovation Project. 388.5 Boyd Cox, a representative of the Franklin Haney Company, speaking on behalf of the request, stated that Haney is proposing to form a limited partnership with Fayetteville Associates #2 to renovate the Woolworth Building into first class office space. In answer to a question from the Mayor, Cox stated the money would be spent on the acquisition of the land, by the partnership which has been fouled, Franklin Haney being the general partner in that partnership. Cox went on to state that other costs which would come out of this amount would be (1) interim construction costs, and (2) issuance costs for the bonds. Cox noted that the renovation cost would amount to about $1.5 million, the interim construction interest is considered to be in the neighborhood of $150,000 for one year, the land acquisition would be $400,000, and the issuing cost would be approximately $200,000. 388.6 Orton stated she felt the City needed more retail space in downtown Fayetteville, rather than another office building. Cox pointed out that substantially all of this office space would be used by the partner- ship and Franklin L. Haney Company. Orton questioned why the project was being financed through a bond issue. Cox responded that the CBID, which was fouled initially for the Southside project, by statute is authorized to issue tax exempt bonds for downtown redevelopment projects. He pointed out that such bonds will not be available after the end November 19, 1985 of the year. Cox stated that, at a special meeting of the Central Business Improvement District Commissioners last Friday, the CBID entered into an agreement with Fayetteville Associates #2 to issue these bonds. Noland stated he would like to see an endorsement from the CBID in writing which can be put into the official minutes. Cox, in answer to a question from McCord, stated that the resolution and the agreement for this project have been signed and sealed by the CBID. McCord pointed out to the Board that federal law requires that an IDB, issued by other than a governing body, be approved by the governing body of the municipality in which the issuer is located. McCord, in answer to a question from Noland, stated he has seen the documents executed by the CBID and noted that they are the standard documents used for this type project. Director Johnson, seconded by Martin, made a notion that the resolution be passed. Bumpass noted that there has been a technical default on a previous bond issue and there was no liability to the City. McCord concurred. Upon roll call, the notion passed 7-0. RESOLUTION NO. 125-85 APPEARS ON PAGE 126 OF ORDINANCE & RESOLUTION BOOK xxiiI Bumpass questioned McCord as to whether, in the future, there is a way the City can require, other than just a resolution, that the CBID furnish the City Board with the minutes of their meeting. McCord answered affirmatively stating the Board could refuse to take any action without the proper documentation and background information. Hess noted that the Board should be given at least a week's notice of any bond issue which is to come before them. OTHER BUSINESS POLICE DEPARTMENT RECORDS AUDIT Mayor Noland introduced a letter from the Office of the Governor stating that the Standards Specialist, upon completion of a Standards Audit of the Police .l partment's personnel files, had awarded the Police Eepartnent a SUPERIOR rating. The Mayor commended the Police Department for achieving this superior rating. COUNTY AVENUE VACATION REPEALED City Attorney McCord noted that the Board recently adopted an ordinance vacating a portion of County Avenue between East Center Street and Meadow Street and stated that Carl Grimes of Greer Abstract Company who requested this ordinance, has determined that that ordinance is not necessary for them to complete their acquisition. McCord read 389 389.1 389.2 389.3 389.4 389.5 389.6 390 November 19, 1985 390.1 an ordinance, repealing this previous ordinance, for the first time. Director Johnson, seconded by Bumpass, made a motion that the rules be suspended and the ordinance be placed on its second reading. Upon roll call, the notion passed 7-0. McCord explained to the Board that the reason this ordinance is not needed is that Greer "cannot ascertain that there was a street easement of record" when the building in question was constructed. McCord read the ordinance for the second time. Bumpass, seconded by Johnson, made a motion that the rules be further suspended and the ordinance be placed on its third and final reading. Upon roll call, the motion passed 7-0. McCord read the ordinance for the third time. Upon roll call, the ordinance passed 7-0. ORDINANCE NO. 3154 APPEARS ON PAGE 475 BOOK xxr7I PERSONNEL COMMIITEE. MEETING OF ORDINANCE & RESOLUTION 390.2 Director Johnson noted that the Board Personnel Committee met last week and received an update on the safety program, which Johnson reported is progressing nicely. Johnson stated the Committee also met with Ron Raine with the Lawrence -Leiter Company who will be doing the super- visory training. Johnson reported that Raine will have a tentative program for the supervisory training at the end of this week and would like to begin the training in the first week of December for all super- visory personnel. Johnson said the Committee will be meeting again on November 25th at 1:00 p.m. Johnson requested that the Board look over the job descriptions for the Public Works Director, Public Safety Director and the Administrative Services Director before the meeting on the 25th. Johnson reported the committee went over the pay plan discrepancies and she asked that these be placed on the next Board agenda for Board approval. Johnson stated the Committee also went over some criteria which could be used in order for pay plan discrepancies to be handled administratively rather than as a policy decision and noted the Committee will include these criteria with the agenda. In answer to a question from Lancaster, Johnson stated she feels this should clear up all existing pay plan discrepancies. ADVERTISING AND PRaCTION C flIITIEE MEETING 390.3 Mayor Noland stated that a mooting of the Advertising and Promotion Committee has been tentatively scheduled for 3:00 p.m., December 6th. Ci2PIuNITY DEVELOPMENT BUDGET REVISIGN 390.4 Mayor Noland stated Planning/Community Development Director Sandra Carlisle has requested that the Board make a budget revision in the 1985 Community Development Budget, transferring $94,303 in North Oakland drainage funds to the Wedington Drainage Project. Director Orton, seconded by Johnson, made a notion that this budget revision be granted. Upon roll call, the notion passed 7-0. November 19, 1985 RESIINATION OF ASSISTANT CITY MANAGER Assistant City Manager David MCWethy addressed the Board advising them of his resignation from his position with the City, effective January 1, 1986. McWethy stated "It was a difficult decision to face, but as Fayetteville's first, and apparently last, Assistant City Manager, I believe I can best serve this Board by not being here." McWethy offered the Board his very best wishes during the difficult period ahead and stated that he hoped, for Fayetteville's sake, that the Board's efforts meet with success. Mayor Noland thanked McWethy for the service he has given the City and expressed his personal appreciation for the continuing endeavors he has made on behalf of the City. McWethy stated he had been employed with the City of Fayetteville for 13 years. MINUTES The minutes of the November 5 meeting were approved with the following correction: Paragraph 377.5 - At the end of the first sentence, add "as a part of their sign variance." The minutes of the October 31 special mooting were approved with the following correction: Paragraph 358.2 - In the second line, "bonds" should be "law". ADJOURNMENT With no other business before the Board, the meeting adjourned at 9:50 p.m. • 391 391.1 391.2 391.3 391.4 391.5 391.5