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HomeMy WebLinkAbout1986-08-28 MinutesMINUTES OF A SPECIAL MEETING OF THE FAYETTEVILLE BOARD OF DIRECTORS A special meeting of the Fayetteville City Board of Directors was held on Thursday, -August 28, 1986 at 4:45 p.m. in Room 326 of City Hall. PRESENT: Mayor Noland; Directors Lancaster, Martin, Orton, Hess, Bumpass and Johnson; City Manager Grimes, City Attorney McCord, City Clerk Kennedy, Administrative Services Director Linebaugh; members of the press and audience The meeting was called to order by Mayor Noland, with seven Directors present. The Mayor explained -the purpose of the meeting was to discuss an ordinance which would call a -special election to authorize the issuance of bonds to finance the City's share of constructing an arts center:: City' Attorney McCord explained;- if the Board of Directors wishes to finance its portionof the cost. of .constructing an iarts center -by- the issuance of bonds, an Arkansas Supreme -Court decision:-handed-down:this year will require the holding of an election to obtain voter approval of the bonds. McCord=said bonds can be issued under -Amendment -62 to the Arkansas -Constitution as capital improvements bonds and would be - secured .by a pledge of 20% of the City's share of -revenues from the 1% sales and use tax levied by Washington County. McCord explained that, although the surplus funds from the pledged revenue (under the trust indenture for the Continuing Education Center) can be used, they cannot be pledged to another bond issue because of some restrictive language in that trust indenture. McCord explained that, in order to market bonds-, there has to be a guaranteed revenue source pledged. McCord said .the ordinance; if adopted,- would call a special election to be -- held September 30, 1986, on the question of issuing not -to -exceed $4 million in capital improvement bonds under Amendment 62;to provide a portion of the financing necessary to construct an- arts center estimated to cost $6 million. In answer to a -question from -Director Lancaster, McCord said the City would not be using more than its allocation of sales tax revenues because it will offset the excess with surplus moneys from the CEC bonds: Director Bumpass commented that the location of the arts center was predicated on a commitment from the merchants and property owners on Dickson Street to provide parking. Bumpass also noted that the documents for the organization of the center have not.yet- been finalized. Mayor Noland said he felt these matters could be worked out prior to the election and that. he felt it imperative -to:move'ahead in order to take advantage of favorable interest rates. • `- U1 ,, U 4 302.1 302.2 302.3 302.4 303.1 Special Board Meeting August 28, 1986 • • Director Orton said she thought the operating agreement needed to be finalized before the election. Orton suggested there be a public meeting at which the operating agreement can be explained to the voters. 303.2 The City Attorney pointed out that the ordinance would not peg the facility to a specific site. He added that he had prepared a memo today to the -joint committee commenting on suggested changes to the bylaws and pointing out that final documents needed to be agreed upon in time for the University Board of Trustees to approve the documents at their.September 12 meeting. He commented that, by calling an election; the' City Board would ensure that documents would.be finalized prior to the date of the election. 303.3 Director Martin commented that he resented having a bond issue force, in advance, the approval of the documents. McCord '.said he -did not 'think final documents were a prerequisite to holding an election; but he thought calling the election would encourage that result. He added that the ordinance would only call the election and would not authorize the issuance of bonds. 303.4 Lancaster remarked that, if documents are not finalized to everyone's satisfaction, it was possible that an election might fail. Lancaster asked how an election Could be stopped if, after the ordinance is approved, no agreement has been reached regarding final documents. McCord explained the Board could repeal the ordinance and pass another ordinance specifying another election date. 303.5 Director Martin asked why the election the general election. Mayor Noland possibility that interest rates may go could not be held on the date of stated he thought there was a up after the general election. 303.6 Director Bumpass asked if, after the election is held, there was a limitation on when another election could be called on the same issue. McCord said he did not recall such a limitation but would check into the question. 303.7 Director Bumpass asked if the Board could designate any date in the ordinance for the election. McCord said.the Board could designate any date but that the Election Commission requires a minimum of thirty days after passage of the ordinance. Director Lancaster said he would not be satisfied until the Dickson Street property owners commit to providing parking for an arts center on Dickson Street. 303.8 303.9 In answer to a question from Director Lancaster, the City Attorney. explained the City committed an amount not -to -exceed 50% of the surplus moneys under the CEC trust indenture, but, because that amount cannot Special Board Meeting August 28, 1986 • be pledged, the. City must pledge that amount of county sales tax revenues which will then be offset by the surplus moneys under an accounting procedure. In answer to a 'question from Director Orton, it was clarified that the amount being pledged includes 50% of the surplus moneys plus 4 of the 1% sales tax. City Manager Grimes reported that the Dickson Street merchants were really working to form a parking improvement district. He said he thought it was a good faith question on bothThides. He remarked that the Board did not have to issue bonds until the district is formed but, at the same time, he did not think the merchants group should be asked to spend a lot of money until they know the voters have approved an arts center. Grimes said, if the voters approve an arts center, there was no question in his mind that the parking district will be formed. Director Bumpass noted that, the Mayor had recommended waiving the City's professional selection policy in the selection of bond counsel and underwriters. Bumpass asked if it was incumbent upon the Board to do this in order to have the election. McCord said that would not have to be a prerequisite to calling an election but, if it were done, it would enable document preparation to begin. The Mayor said a recommendation was made by the banking'community several years ago that the A. G. Edwards firm had submitted the most acceptable proposal. 304.1 304.2 In answer to a question from Director Orton, McCord said there was no 304.3 limitation on how long voter approval lasts after the election. Director Bumpass said he thought thirty days was "too short a string" 304.4 and he suggested the election might be called in sixty days. Director Johnson commented 'that' there are no architectural plans 304.5 detailing the cost of the center, that the size of the auditorium is not yet known, the cost of the land is unknown, it is unknown whether the amount of the proposed bonds issue will be enough' to .pay for the center and the agreement between the City and the University has not been finalized. Johnson said that, even if those things are worked out before the election, there is not enough time to communicate all the information to the voters. Mayor Noland pointed out that an architect cannot be hired until the voters approve the project. :Director _Martin commented that, by calling an election, 'the Board is 304.6 shifting unnecessary uncertainty onto the vbte'rs. '.Martin 'suggested an alternative - of saying that the Board' seriously considered issuing some bonds but will not take action until the basic agreements are finalized. Mayor Noland asked if the Board would agree to pass an ordinance today304.7 and, if operational agreements are not finalized by September 16, agree to repeal the ordinance on that date. Director Hess said he thought 911x, 305.1 Special Board Meeting August 28, 198 this would exert an enormous of pressure on the joint committee to reach an agreement. Director Johnson commented that this also exerts pressure.on the Board to get information to the voters between the 16th and.. the 30th. Director Hess remarked that the project has been in the news for a long time and he did not fear there would be any lack of attention. Director Lancaster remarked that he did not Want to wind up, from an operational, standpoint, with another Continuing Education Center. Lancaster asked,.what steps. .remained in the formation of' the Dickson Street parking improvement district.Grimes explained that figures have.. been obtained on the assessed, value of property in the entire area,:and the group is in the process, of selecting from six or seven sites for possible parking. Grimes estimated there to be approximately 90% positive participation from the property owners. Director Bumpass explained that the total costs will have to be obtained on two or three options, territorial boundaries of the district will be determined, a general plan will be proposed and commissioners will be elected to follow that plan.should the,center be built. 305.2 The Mayor,asked.if the Directors wished to have theordi nance read, or if they wished to.drop,it. 305.3 .Director Orton. spoke in favor but, at the September. 16 Board in place, the Board repeal the decide to have the election at of calling the election for October 7 meeting if finalized documents are not ordinance and either set anothef date or the time of the general election. 305.4 Director Orton, seconded by Hess, made a motion the ordinance be read. Upon roll call, the motion passed, 5-2,. with Directors Johnson and Martin voting in the minority. The City Attorney read the ordinance for the first time. Director Orton, seconded by Hess, made a motion to suspend the.rules and place the ordinance on its second reading. Upon roll call, the motion passed, 5-2, with Johnson and Martin in the minority. The City Attorney read the ordinance for the second time. Director. Orton,. seconded by Hess, made a motion to further suspend the rules .and. place the ordinance on its third and final 'reading. Upon roll .call, the: motion passed, 5-2, with Johnson and Martin in the minority. The. ordinance was read for the third time." 305.5 It was clarified that the ordinance which was read specified the date of the election to be September 30. After discussion, it was decided to schedule the election for October 7. Director Orton, seconded by Hess, made a motion to amend the ordinance to schedule the election for October 7. Upon roll call, the motion passed, 6-1, with Martin voting in the minority.. 305.6 The Mayor asked those Directors voting in the minority to clarify whether their votes were being cast in opposition to the arts center or Special Board Meeting August 28, 1986 because of the idea that all the loose ends are not tied together yet. Director Martin stated he thoroughly supported the arts center but felt like the ordinance was "like a blank check" in that it was giving approval to something very important that has not quite crystallized. Director Johnson said, although she supports the arts center, she thought the people of Fayetteville deserved more timeto understand the information. Upon roll call, the ordinance (as amended) passed, 5-2, with Johnson and Martin voting in the minority. Director Bumpass, seconded by Orton, made a motion to"adopt an emergency clause. Upon roll call, the motion passed, 5-2, with Johnson and Martin voting in the minority. ORDINANCE NO. 3206 APPEARS ON PAGE 4 • OF ORDINANCE & RESOLUTION BOOK ✓ Director Orton made a motion that, if at the September 16 Board meeting the Board does not approve of the governing agreements and bylaws of the center, the Board will repeal this ordinance. Director :Lancaster asked that the Dickson Street group promise to do 306.3 certain things. Mayor Noland asked if the Board could have a written agreement to the effect that the Dickson Street group will provide 500 parking spaces. Director Bumpass stated that letters have been submitted to the joint committee by the ."Pride in Dickson Street" group. 306.1 306.2 Director Bumpass seconded the motion. Upon roll call, the motion 306.4 passed, 7-0. With no further business before the Board, the meeting adjourned at about 5:50 p.m. 306.5