HomeMy WebLinkAbout1987-02-03 MinutesMINUTES OF A SPECIAL MEETING OF THE BOARD OF DIRECTORS
A special meeting of the Fayetteville City Board of Directors was held
on Tuesday, February 3, 1987 at 8:30 a.m. in Room 326 of City Hall, 113
West Mountain Street.
PRESENT: Mayor Johnson; Directors Lancaster, Martin, Kelley,
Marinoni, Hess and Bumpass; City Manager Grimes, City
Clerk Kennedy; members of the press
CALL TO ORDER
The meeting was called to order by the Mayor, with six Directors
present at roll call.
EVALUATION OF CITY MANAGER
Mayor Johnson stated the purpose of the meeting was for the Directors
to evaluate City Manager Don Grimes' job performance as relative to his
employment with the City of Fayetteville. Johnson asked that the Board
go into executive session.
Director Bumpass, seconded by Marinoni, made a motion to go into
executive session. Upon roll call, the motion passed, 6-0, with
Director Kelley not present during roll call.
EXECUTIVE SESSION
The Board met in executive session, with City Manager Don Grimes being
invited into the meeting at about 10:20 a.m.
RECONVENE
The meeting was reconvened at about 11:00 a.m. Mayor Johnson reported
the Board had determined that, on the average, City Manager Grimes had
met the expectations of the Board, and recommended he be given a raise.
Director Marinoni, seconded by Lancaster, made a motion that Don Grimes
be granted a 3 1/2% raise.
Johnson said she thought this was in context with Grimes having been
gone on sabbatical for half of the past year.
Upon roll call, the motion passed, 7-0.
ADJOURNMENT
With no further business before the Board, the meeting adjourned at
11:05 a.m.
30
1
30.1
30.2
30.3
30.4
30.5
30.6
30.7
30.8
30.
MINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS
A regular meeting of the Fayetteville City Board of Directors was held on
Tuesday, February 3, 1987. at 7:30 p.m. in the Directors' Room of City Hall
at 113 W. Mountain Street, Fayetteville, Arkansas.
PRESENT: Mayor Johnson; Directors Lancaster, Martin, Kelley, Marinoni, •
Hess and Bumpass; City Manager Grimes, Department Directors
Burch, Coates and Linebaugh, City Clerk Kennedy, City
Attorney McCord; members of the press and audience.
CALL TO ORDER
The Mayor called the
asked for a moment of
REPORT TO THE PUBLIC
meeting to order, with seven Directors present, and
respectful silence.
31,
City Manager Grimes presented the following report to the public and Board 31.1
for the month of January:
Workers' Compensation Report
There were three minor employee injuries in the Police Department,
Building Maintenance Division and Municipal Court.
Administrative Services Department
A video tape is being used for training new employees involved
with the purchasing process. Scheduling for major purchases will
soon be completed so staff is prepared to handle them both
financially and manpower -wise. Nine vendor visits were made by
the Purchasing Division. A self-insurance study has begun.
A program has been computerized in the Business Office to keep
better track of delinquencies. The entire money -handling process
has been reviewed for crime prevention. 60% of vehicle and
equipment specifications have been compiled for purchases to be
made in 1987. An operator vehicle condition report has been
developed to be used as a daily checklist for preventive
maintenance. Storage tanks have been purchased to allow for bulk
purchasing of oil, resulting in savings of approximately $1 per
gallon.
A "forced ranking system" is being devised for employee
performance evaluations.
31.2
31.3
31.4
31.5
32
February 3, 1987
32.1 A collection agency has begun collecting Municipal Court fines and
bad debts from the Business Office.
32.2 A new IBM computer for general administrative areas is due to be
delivered March 20, 1987, with the Public Safety computer expected
on April 17, 1987. Renovation has begun to house those new
computers.
32.3 465 persons were placed, under the Municipal Court's public
service program, and worked 7,662 hours, valuing $30,648.
Public Safety Department
32.4 The Criminal Investigation Division of the Police Department has
been changed to the "Detective Division", and upper management in
this program has been replaced. 28 felony arrests were made. 13
additional cases were turned over to the prosecutor, pending
filing of charges against suspects. The Detective Division
assisted other law enforcement agencies on 15 different occasions,
the most notable being assisting the Wichita, Kansas Police
Department in clearing up an estimated 400-600 burglaries. Police
Officers traveled to the Tulsa Police Department to meet with
their special operations team. Two officers will attend a handgun
retention course in March in Kansas City. Several public service
announcements were made locally covering areas such as
"Neighborhood Watch", vandalism, accidents, security surveys and
motor vehicle theft. CPR and defensive driving classes are being
scheduled for employees starting in February. The warrant officer
reports serving approximately 225 warrants; however, Municipal
Court turned in 680 new arrest records during the month. 80% of
the incoming warrants are estimated by the warrant officer to be
for failure to answer traffic summons.
32.5 In-house training is continuing for 30 minutes, three days a week,
in the Inspection Division. There was attendance at a two-day
plumbing school.
32.6
32.7
Three central dispatchers were hired and trained.
Fire Captain Ledbetter has begun a process to certify all fire
personnel in CPR, with 14 persons having completed training.
Other fire personnel who will assist Ledbetter as instructors are
Carl Rochier, Mark Myer, Ted Youmans and Chris Lynch.
32.8 On January 26 the Civil Service Commission held a public hearing
to discuss certain proposed rule changes pertaining to promotion
and entry level examinations, which would have a strengthening
affect on the Fire Department.
1
1
•
February 3, 1987
There has not been a serious fire in Fayetteville thus far in
1987.
Animal Control division picked up 58 animals, 90 were adopted, and
many other animals were simply brought in. 24 warnings and 3
citations were issued, while 210 calls were answered.
Public Works Division
Specifications for budgeted equipment are
Booklets and instructional manuals are being
divisions to use this year. A program was
being prepared.
prepared for all
started with an
engineering computer expert from the City of Fort Smith, who has
developed the main program Fayetteville anticipates using for a
road log and street inventory project.
The City Manager met with the State Highway Department to
discussed the City's scheduled budgeted projects. Razorback Road
from 15th Street to Cato Springs Road project is ready to begin -
a three year phased project with engineering to begin this year.
City Lake Road (Highway 156) project, looping from Morningside
Drive to Highway 71 South is set up to begin around August of
1987. Work on the additional lane at Millsap and College will
begin in about March, with signal installation to be done in late
Summer or Fall. The design for the new interchange at Highway 71
and Cato Springs Road has been changed so that traffic can move
directly to and from the Airport. Construction at the railroad
bridge on Sixth Street (formerly Highway 62, now Highway 180)
from Garland to School Avenue is scheduled to begin late in the
year, with remaining four-laning to be done in 1988.
The Pollution Control contractor has a new manager on site. The
time extension request is in process, construction must be
completed by April 30, and the plant must be operational by June
30.
Recent cost reduction measures in the Sanitation Department have
crews on tight schedules, especially on Monday and Tuesday. The
City Manager said that, although the City offers "carry out"
service, citizens are asked to set their trash out by the curb if
they are able to do so.
Approval has been received of additional Airport grant funds in
the amount of $595,477, for the runway overlay to be done this
year, striping of the runway, and some additional parallel taxiway
overlay.
Grimes reported that he talked with the contrac'tor's
superintendent and the Highway Department about the project at the
intersection of Highways 45 and 265, and was informed that because
33.1
33.2
33.3
33.4
33.5
33.6
33.7
33.8
33
34
February 3, 1987
34.1 of the freeze -thaw cycle, there is a lot of subsurface moisture
and they are waiting for more extended dry spells before finishing
work on the sub -base.
34.2 Grimes reported the contractor on the Gregg Street project has
been very slow and the contract may be close to penalty time at
this point.
REZONING
34.3 The Mayor introduced an ordinance rezoning property north of Stone and west
of Delaware from R-2 "Medium Density Residential" to P-1 "Institutional".
34.4 The City Attorney read the ordinance for the first time. Director Bumpass,
seconded by Martin, made a motion to suspend the rules and place the
ordinance on its second reading. Upon roll call, the motion passed, 7-0.
The ordinance was read for the second time. Director Bumpass, seconded by
Martin, made a motion to suspend the rules and place the ordinance on its
third and final reading. Upon roll call, the motion passed, 7-0. The
ordinance was read for the third time.
34.5 The Mayor reported the Planning Consultant recommended the rezoning and the
Planning Commission voted, 7-1, to recommend the rezoning.
34.6 Pat Parsons was present to speak on behalf of the petition. He said the
property was contiguous to existing school property on Stone Street,
bordered on the east by Delaware which is a dirt road used strictly for
school purposes. He said the property would be used for future school
purposes.
34.7 The Mayor asked if anyone in the audience wished to speak in opposition to
the rezoning. Alvin Neal, resident of 224 Virginia Avenue, pointed out that
the property consisted of 7 lots, comprising 1.22 acres, not 8.54 acres as
noted in the agenda. The City Attorney assured the petitioner that the
legal description in the ordinance reflected the seven lots and if the total
acreage was in error, it would be corrected. Mr. Neal stated he owned Lot
517 which includes part of Ohio Street which was closed and returned to the
property owners. He said his only concern was drainage. The City Attorney
told Mr. Neal that when the property is developed a large scale development
plan will have to be submitted to the Planning Commission by the school
district. He added that the ordinance requires provisions for drainage be
made. Neal said he did not protest the rezoning.
34.8 Director Hess asked if the south half of Ohio Street north of Lot 812 would
be part of the property in question. Parsons said the legal description on
the petition submitted to the City includes the south half of Ohio Street.
34.9 Upon roll call, the ordinance passed, 7-0.
1
e. w
4 -
February 3, 1987
ORDINANCE N0. 3241 APPEARS ON PAGE // 9 OF ORDINANCE & RESOLUTION BOOK
Director Bumpass said he was sure the Planning Commission was well aware of
the drainage problem which has been in existence in that area for several
years. He said a great deal of City money has been expended in trying to
correct the problem. He expressed hope that, in the large scale development
evaluation, the Commission would try to assure the residents in the area
that the property would be protected from any additional drainage which
might be caused by anticipated development.
SIGN APPEAL
The Mayor introduced a sign appeal for a 9 square foot sign, at a six foot
setback, at 151 West Dickson Street, zoned C-3 "Central Commercial".
Lamar Pettus addressed the Board on behalf of the appeal. He said the sign
could either be located in its present position, or straddling the walkway
which goes around the north end of the building. He said he felt it
enhanced the property where it is now located, as opposed to being in the
middle of the parking lot or on the building itself.
Director Martin, seconded by Hess, made a motion to approve the request.
Director Bumpass noted the hardship seemed to be indicated by the factual
situation. He said the property developed by Pettus was a fine addition to
Dickson Street and he commented that the yard was substantially higher than
street level and the building was very close to the street. Bumpass said he
did not think the sign constituted a safety hazard in its present location.
In answer to a question from Director Lancaster, Pettus said he had applied
for a sign permit. Pettus told Lancaster he knew a sign permit was
necessary before he put the sign up, and that he put the sign up before
applying for the permit. Director Martin commented that people who put up
signs contrary to the ordinance run the risk of being required to take their
signs down. Martin said his motion was not blanket approval of signs which
are put up without regard to the ordinance.
City Manager Grimes noted that, although the request was for permission to
have the sign at a 12 foot setback, it actually should .have stated a six
foot setback.
Upon roll call, the motion passed, 7-0.
ELECTRICAL LICENSING
The Mayor introduced a request from the Public Safety Director for an
ordinance amending the City Code to eliminate the City's electrical
•
35
35.1
35.2
35.3
35.4
35.5
35.6
35.7
35.8
35.9
36
February 3, 1987
36.1 licensing examination program. She explained the State Department of Labor
offers tests in Fayetteville every two months.
36.2 Public Safety Director Marty Coates explained the City would continue to
issue City licenses for those electricians who already have City licenses.
He said the City recognizes the State licenses but the State does not
recognize the City license.
36.3 The City Attorney read the ordinance for the first time. Director Bumpass,
seconded by Hess, made a motion to suspend the rules and place the ordinance
on its second reading. Upon roll call, the motion passed, 7-0. The
ordinance was read the for second time. Director Bumpass, 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, 7-0. The
ordinance was read for the third time.
36.4 Director Marinoni asked if the continuation of issuance of City licenses
would give electricians with City licenses an advantage over others who
would not have a City license. Building Inspector Freeman Wood explained
the purpose of continuing the practice was for the benefit of those
electricians who do not have a State license, to allow them to keep a City
license until such time as they have obtained a State license.
36.5 Upon roll call, the ordinance passed, 7-0.
ORDINANCE N0.3242 APPEARS ON PAGE /a/ OF ORDINANCE & RESOLUTION BOOK
xx►v
OPERATIONS AMENDMENT
36.6 The Mayor introduced a resolution authorizing the Mayor and City Clerk to
execute Amendment No. 2 to the City's agreement with CH2M Hill for
operations and management services at the Wastewater Treatment Plant.
Public Works Director Deryl Burch told the Board that, due to rain and other
construction problems, the expected January start-up date for the new
Wastewater Treatment Plant has been delayed. Burch said the Amendment would
allow for operating costs to be paid to the engineer until the start-up of
the facility, estimated to be $131,000. Burch explained there would be a
reconciliation at the end of three months between the actual costs and the
estimate. Burch said part of the system is estimated to be "on line" as
early as April.
36.7 Gary Vaughn, speaking for Operations Management International (OMI),
explained that, until start-up of the new facility, his company had taken
over the current City employees and the total operation of the old facility.
He said the $131,000 estimate was "a little bit higher" than last year's
budget. Director Martin asked if "actual costs" included an overhead
factor. Vaughn distributed a breakdown of a proposed budget and
expenditures for January of 1987.
1
1
February 3, 1987
Director Martin asked if CH2M Hill would continue to charge overhead costs
for engineering services. Vaughn said OMI had a contract with CH2M Hill,
that OMI was a wholly owned subsidiary of CH2M Hill, and OMI's contract for
operations was exactly the same as the contract the City has with CH2M Hill.
Martin asked if this meant the City was paying the same firm twice for
overhead. Vaughn said this was not the case, and that CH2M Hill does not
charge any overhead to OMI.
Director Marinoni asked for an explanation of the $63,273 fee included in
the amendment. Vaughn explained that this figure was a part of an incentive
program. He said if his company does not meet permit by lab results, $3,000
per month is kept by the City. He added that the fee was approximately 3%
of the overall contract amount which they receive if they do a good job.
In answer to a question from Marinoni, Vaughn said the monthly operating
charge after start-up would be $183,000. Vaughn said that, after start-up,
the term of the operating agreement would be for two years, after which the
City has the option to take over the operations.
In answer to a question from Director Kelley, Scott Linebaugh confirmed that
the figures being discussed were approved as a part of the City's 1987
budget.
Director Bumpass asked for an breakdown of costs included under "labor
overhead". Vaughn said these included costs of payroll, purchasing and
corporate employees, or the office costs of "doing business". Vaughn
explained there were three "overheads" - 35% on salaries only, S% on
electricity only, and a profit margin. Director Bumpass asked what $3,154
in "outside services" represented. Vaughn said this was the costs of 21
physical examinations at the Fayetteville Diagnostic Clinic which OMI
required of the City employees.
Director Martin asked for the City staff's recommendation.
Grimes recommended approval of the resolution.
Director Bumpass asked Linebaugh if the
substantially higher than those used by
expenses. Linebaugh said the overhead
address whether the proposed costs were
reviewed the overhead since it was the
Director to review the contract.
City Manager
overhead figures being proposed were
the City in 1986 for administrative
costs were greater but he could not
fair. He told Bumpass he had not
responsibility of the Public Works
Director Lancaster commented that, if the City had felt it was capable of
operating the new plant, it would have done so. He said it was a known
factor that it was going to cost more money to hire someone else to operate
the plant. Director Bumpass said he thought the City was fully capable of
operating the plant, but was looking for someone who would guarantee the
performance of the plant.
37
37.1
37.2
37.3
37.4
37.5
37.6
37.7
37.8
33
February 3, 1987
38.1 Vaughn said Plant Manager Mike Lawrence has said that the $131,000 estimate
is about 12% higher than last year's operating costs. Vaughn said the
January operating costs were $113,000.
38.2 Public Works Director Deryl Burch told the Board the fee has already been
set by the original contract, that the amendment would only set the monthly
fee before start-up. He said City staff determined that, if OMI were not
operating the plant in January, it would probably cost the City between
$115,000-$119,000 to operate. Burch said there was a little extra money
included in the budget because certain portions of the new plant may be
operating before the actual start up date.
38.3 Director Martin, seconded by Hess, made a motion to approve the resolution..
Upon roll call, the motion passed, 7-0.
38.4
38.5
38.6
38.7
RESOLUTION NO.7-87 APPEARS ON PAGE S/6 OF ORDINANCE & RS9OL.UTIQ BOOK
XXVlj
AIRPORT COMMITTEE
Director Lancaster, Chairman of the Board Airport Committee, warted on the
committee's January 28th meeting.
MINORITY BUSINESS ENTERPRISE PROGRAM
Kelly Johnson, Assistant Airport Manager, told the Board Vice Minority
Business Enterprise Program, which was approved by the Board iia M2, is
required in order to receive federal funding for FAA projectti.. She
explained that, due to the Airport's present level of federal funeteg, it
has been recommended that the percentage of minority and womae rewned
business be increased. She said an overall goal of 8% is recommended,
keeping the percentage of minority-owned businesses at .25% and amendleg the
percentage of women -owned businesses to 7.75%. Johnson explained it was
difficult in this area to find a large number of minority bnnriness
enterprises which deal with the type of construction taking place at the
Airport.
Director Lancaster, seconded by Marinoni, made a motion to app,^nae the
resolution. Upon roll call, the motion passed, 7-0.
��RY�E��SOLUTION NO. 8-87 APPEARS ON PAGE .5,2S- OF ORDINANCE & RESOLUTION- BOOK
AIRLINE LEASE AGREEMENTS
Director Lancaster introduced modifications to lease agreements '.Wt Air
Midwest, American Eagle, Atlantic Southeast and Northwest Air link anirlines
Airport Manager Dale Frederick explained base rent would be increased from
$12.00 to $13.00 per square foot for exclusive use; and non-exclusive use
1
1'
February 3, 1987
39
would increase from $6.00 to $6.50 per square foot. He said the airlines 39.1
agreed with the increases.
•
Director Lancaster, seconded by Kelley, made a motion to approve the 39.2
modifications.
Director Martin asked what basis was used for the recommended increases. 39.3
Frederick said other airports in the region were polled but he noted it was
hard to compare charges because of the way the airports arrive at their
total operating costs. He said the staff considers what it costs to operate
the Airport on a yearly basis and negotiates with the airlines. Martin said
both he and Bumpass have requested a long range financial plan for the
airport, so that the Board would know the economic basis for
recommendations. He said that he would oppose any request for financial
changes at the Airport until he can see a good financial basis for making
decisions.
Frederick told Martin the staff had not overlooked the request for a long 39.4
range plan, but said there had been staff changes at the Airport. Martin
commented that the large percentage of federal funding "takes some of the
sting" out of some of the requests, but said he thought citizens wanted to
be sure Airport expenditures are cost -justified. Kelly Johnson said the
staff was gathering information to start on a plan and looking at the twenty
year plan to determine how projects will be funded in the next five years.
Johnson said the consumer price index for the last three years was also
considered in determining the increases for the airlines. She said the CPI
over the last three years amounted to a little over 9%, with the proposed
increase amounting to about 8.33%. She said the staff felt the increase was
justified in order to carry out the operation and maintenance program.
Lancaster said the City has been trying over the years to make the Airport
self-sufficient but he didn't think the Airport could ever "show a black
figure". He said the fees come from rentals, and the airlines agreed with
the increase providing that an expansion is made to the fuel farm, and with
the stipulation that it would profit the airlines to buy fuel in
Fayetteville. Lancaster said the City would receive six cents for every
gallon of fuel sold from the fuel farm. Director Martin asked Frederick if
there was a hidden condition to the lease increase, that the City expand the
fuel farm. Frederick said the airlines agreed to the rate increases, but
were also extremely interested in being able to supply fuel in Fayetteville
for their airlines.
39.5
Upon roll call, the motion passed, 6-1, with Martin voting in the minority. 39.6
RESOLUTION NO. 9-S7 APPEARS ON PAGE 537 OF ORDINANCE & RESOLUTION BOOK
4 0
AUTOMATIC GATE PROJECT
February 3, 1987
40.1 Lancaster reported that a new hydraulic gate is proposed to be installed on
the east side of the Airport, with the existing gate to be moved to the area
south of the main terminal. Lancaster reported the expense was budgeted, a
bid was received [in the amount of $21,350] and the committee recommends
approval.
40.2 It was moved by Lancaster, and seconded by Marinoni, to recommend a contract
be initiated.
40.3 Frederick told the Board the project would be 50% State funded.
40.4 Dpon roll call, the motion passed, 6-1, with Martin voting in the minority.
FUEL FARM EXPANSION
40.5 Lancaster introduced consideration of bid award for the expansion of the
existing fuel farm. He reported the low bidder was Southern Company,
bidding $43,393. Lancaster said the expenditure was budgeted.
40.6 Director Lancaster, seconded by Marinoni, made a motion to approve the award
of bid.
40.7 Director Bumpass asked for the
He asked if the tank would also be
operators can obtain their fuel at
installation of the fuel farm will
anticipated amortization of this expenditure.
leased to the FBO. Lancaster said if
the Airport in less than two years the
be paid for. In answer to a question
from
with
1987,
said,
with
will
Director Bumpass, Lancaster said there was no contractual arrangement
the airlines. Dale Frederick reported that projected revenues for
based on the flowage fee presently being charged, is $74,829. He
with the additional fuel farm in place, and contracts being negotiated
the Fixed Base Operator and the airlines, projected revenues for 1987
be close to $100,000.
40.8 Director Bumpass expressed reluctance to vote on the motion, stating he did
not have enough information.
40.9 Director Kelley expressed confusion, stating he thought there was a long-
term financial plan. He said he could go along with the lease agreements
for space at the Airport and on the automatic gate project based on the
apparent needs, but expressed concern that the lack of a long range plan can
affect the fuel farm and hanger space rentals, or any other revenue-
producing area of the Airport. He said he would probably vote against the
motion, even though he was on the Airport Committee. Kelley said he thought
there was a long range plan because the budget had been approved.
40.10 Frederick explained that the Airport presently operates under a 20 -year
master plan which was approved in 1983. Frederick said he thought Director
1
February 3, 1987
1
Martin was asking for a forecast of finances. Frederick commented that it
was extremely important to expand the fuel farm to be able to accommodate
theairlines • which he said were growing rapidly. Frederick said there were
fiver --trunk carriers at the Airport, with 28 departures per day, and
enplanements over 7,000 per month.
Lancaster spoke in favor of a financial plan but said he thought the Airport
needed to move ahead. He. said if the Airport had made financial projections
five years ago it would now be farahead of -the projections.
Director Bumpass said he recalled, in earlier discussions of an additional
fuel tank for the use of the airlines, that there would be a contract, a
holding tank fee for the airlines, a small service fee for the FBO, and a
flowage fee to the City. Director Lancaster said this is exactly the plan.
He said there was a verbal commitment with the airlines.,. Kelly Johnson
explained the airlines can buy. fuel from a gas company at a reduced price,
enabling them to dump into the holding tank at the Airport. Johnson said
the airlines will pay a handling fee to use the fuel and the City will
receive a flowage fee. Johnson said one airline thinks the expansion of the
fuel farm will save them over $20,000 per year. She said this will provide
incentive for airlines to continue providing service in Fayetteville.
Director Bumpass asked if commitments from the airlines could be obtained in
writing.
Mayor Johnson asked the Board if they wished to table the item. Director
Bumpass said he thought this might be a very good investment at the Airport
if the City had a solid deal with the airlines.
•
41
41.1
41.2
41.3
41.4
Mayor Johnson asked the Board if they wished to amend the motion, pending a 41.5
contract agreement by two of the four airlines.
Director Bumpass asked if the City was risking the loss of the bid.
Frederick explained bids were taken on November 6, 1986., He said those bids
were good for thirty days but an'agreement was made to wait for budget
approval and for this Board meeting. Frederick said there was a good chance
of losing the bid.
41.6
The President of Aero -Tech addressed the Board, stating he had letters of 41.7
commitment from ASA and Northwest Air link to buying over another 22,000
gallons per month flowage through the new tank. He•said they presently had
a 12,000 gallon tank and it would beFof benefit to him to allow the airlines
to dump their fuel and Aero -Tech to just do enplanement. He said he was
currently negotiating with American Eagle which is currently taking on 30-
40,000 gallons per month in Fort Smith He said he could not understand the
opposition. He added that Aero -Tech had invested $70,000 in trucks to serve
the airlines and, without -the farm to store the fuel, that investment was
premature. He said the City would receive 6 cents per gallon and Aero -Tech
would receive 12-14 cents per gallon for fuel pumped out of the tank. He
said there would be a savings to the airlines because they can buy wholesale
fuel at 20-30 cents per gallon less than Aero -Tech can buy the fuel. He
42.1
42.2
42.3
42
February 3, 1987
pointed out it was difficult to negotiate a contract without the storage
facility available.
The City Attorney said if the Board supports the project, it could authorize
the contract for the construction of the additional storage tank, contingent
upon execution of a contract between Aero -Tech and the airlines to guarantee
that a minimum volume of fuel will be pumped monthly. Director Bampass
moved to amend the motion as suggested by the City Attorney. The motion vas
seconded by Director Hess. Upon roll call, the motion passed, 7-0.
Upon roll call, the motion as amended passed, 5-2, with Martin and Kelley
voting in the minority.
LEASE FORMAT
42.4 Director Lancaster introduced approval of a lease format to be used for
advertising and direct dial telephone line leases. Kelly Johnson explained
these were one-year leases, with the City presently holding four advertising
space leases, and two telephone leases. She said the Airport receives about
$5200 annually from these leases, and the staff wishes to use a format lease
rather than bringing individual leases before the Board on a regular basis.
In answer to a question from the City Attorney, Johnson said the lease the
staff wishes to use is the same as that presently being used.
42.5 The Mayor said she would like the Board to know when those leases are not
being renewed. Kelly Johnson said the staff intended for the Public Works
Director to approve the leases.
42.6
42.7
In answer to a question from Director Martin, Johnson explained the rent for
the advertising leases was $80 per month, and $20 per month for the
telephone lease, when the lessee enters into both leases. Johnson said a
telephone lease alone amounts to $80 per month. Johnson said the staff
intended to bring the leases before the Board only in the event of a change
in the terms of the lease, or in the event of a rate increase. The City
Attorney pointed out that the statutes require that a one-year leases must
be approved by the Board and executed by the Mayor and City Clerk, unless
the form of the leases are changed to automatically be renewed. He added
that if the rent increases or a term is changed in a lease, it must have
Board approval.
Director Johnson asked the Airport staff to work with the City Attorney and
bring this item back to the next Board meeting.
42.8 Director Lancaster recommended that, if the proposal is going to cause any
confusion, the leases continue to be brought before the Board as in the
past.
1
1
w
1
February 3, 1987
EXPRESS RENT -A -CAR PROPOSED PARKING LOT AND LEASE
Director Lancaster reported that Express Rent -A -Car's proposal would be
clarified and brought before the Board on February 17.
AIRPORT MEETING
Director Lancaster asked that Director Kelley, Director Martin, and Public
Works Director Burch meet to discuss financial projections for the Airport.
COMMITTEE OF THE WHOLE REPORT
The Mayor introduced a report from a Board "Committee of the Whole" meeting
of January 28, 1987, regarding restructuring of outstanding residential
housing bonds amounting to approximately $550,000. Assistant Mayor Bumpass,
who had chaired the meeting, expressed appreciation to the City Manager for
his written report of that meeting, and added that the Board voted to set
the money aside as a separate fund and have the staff draft a proposed long
range plan, with a report to the Board by the end of March outlining long
range needs and possible uses for these available funds. Bumpass said the
Board would also receive written proposals from other groups. He said the
Board also voted to have the funds accumulate interest to be kept in that
separate fund.
OTHER BUSINESS
z
DICKSON STREET PARKING IMPROVEMENT DISTRICT
Director Lancaster asked for a report on the status of the formation of the
Dickson Street Parking Improvement District. Director Bumpass said out of
town property owners are still being pursued. Bumpass said that Rick Mayes
would report to the Board around the middle of March. Bumpass explained a
petition would have to be presented to the Board and an ordinance passed
establishing a district. He said the petition was now being circulated by
the proposed commissioners of the district: Curtis Shipley, Carl Collier,
Tom Pearson, Jr., Bill Underwood, and David McClinton.
Director Martin noted that the City Attorney had prepared an opinion for
Director Bumpass on the applicability of improvement district assessments on
churches, and he asked if that referred to the Dickson Street Parking
Improvement District. Bumpass replied that it did, and that he had
contacted the County Tax Assessor concerning this. Bumpass said the County
had never listed "exempt" properties in the reappraisal process due to the
expense involved to the County, because of the many exempt or publicly owned
properties in Fayetteville. He said he contacted the State Director for
Assessments who will instruct the County Assessor on how to handle exempt
properties for this district. It was clarified the churches involved in the
district would be First Baptist, United Methodist, Central Methodist, St.
43
43.1
43.2
43.3
43.4
43.5
44.1
44.2
February 3, 1987
Paul's Episcopal, Lutheran, and University Baptist. Director Martin said he
did not think it was anyone's understanding that the churches along Dickson
Street would be financially liable for parking in connection with the Arts
Center. The City Attorney said church property is subject to assessment by
municipal improvement districts, and the assessed value of church property
should be included in determining the sufficiency of an improvement district
petition. He said the law is clear that property can only be assessed by a
municipal improvement district to the extent that the property is benefited
by the construction. McCord said the churches would benefit very nominally,
if at all, by the construction of the parking lots. McCord said it appeared
to him that the fair market value of the churches would not be increased
because of the construction of parking lots several blocks away. In answer
to a question from Director Martin about whether the University of Arkansas
would be subject to assessment, the City Attorney explained that public
property used exclusively for public purposes is not subject to assessment
by a municipal improvement district.
Mayor Johnson called the Board's attention to the Arts Center tentative
schedule for planning and construction contained in the agenda. Director
Lancaster reminded the Board that, although that schedule is moving right
along, the construction of the Arts Center was to be contingent upon the
formation of the parking improvement district.
FIVE YEAR GOALS
44.3 Director Hess said it was becoming increasingly apparent to him that the
Board needs to demand a comprehensive five year plan, not only for the
airport, but for streets, water and sewer systems, police, fire, computer
operations, and many other facets of City operations. Hess said he thought
the plan should show where the City will be in five years, how it's going to
get there, and what sources of revenues will be, and how those revenues will
fit in with budgetary expenses. Director Martin commented that this was one
of the City Manager's principal objectives for 1987, to develop a long-range
plan.
44.4
44.5
MINUTES
The minutes of the January 20 meeting were approved.
ADJOURNMENT
There being no further business, the meeting was adjourned at 9:40 p.m.
1