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HomeMy WebLinkAbout1987-09-15 Minutes1 it MINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A meeting of the Fayetteville Board of Directors was held on Tuesday, September 15, 1987 at 7:30 p.m. in the Directors' Room of the City Administration building, 113 West Mountain Street, Fayetteville, Arkansas. • PRESENT: Mayor Johnson; Directors Marinoni, Hess, Bumpass, Lancaster, Martin and Kelley; City Manager Pennington, City Attorney McCord, City Clerk McWethy, Department Directors Burch, Coates and Linebaugh; members of the press and audience. ROLL CALL The meeting was called to Directors present. There was order by the Mayor, with seven a pause for a moment'of silence. CITY MANAGER'S REPORT City Manager James Pennington presented the report to the public and board for the month of August. [Clerk's Note: Because of its length, the report is not included in these minutes, but is on file in the City Clerk's Office.] 286 286.1 286.2 PICKETING The Mayor introduced consideration of an ordinance amending the 286.3 City Code to provide that it shall be unlawful for any person to picket before or about a residence located in a residential area and used exclusively for residential purposes. She explained a.three-judge panel of+the`United States Court of 286.4 Appeals had concluded that the Fayetteville residential picketing ordinance was unconstitutionally overbroad because it did not define 'a residential area". She asked that the Board decide whether to amend the ordinance to conform to the court's decision, or whether to appeal to the Supreme Court. The City Attorney told the Board that factors to consider were: • 4 There is a reasonable likelihood the United States Supreme Court would hear this case because there is a division among the Circuit Courts of Appeals on the V Jo 286.5 286.6 r -Ur September 15, 1987 287.1 constitutionality of an ordinance which completely bans residential picketing; 287.2 (2) The United States Supreme Court has indicated in a previous case that the Court would uphold the constitutionality of an absolute ban on picketing at residences used solely for residential purposes; 287":3 (3) The cost of the appeal; 287.4 (4) The Court of Appeals' decision does not clearly indicate what "less restrictive alternative" the Court would hold constitutional; 287.5' (5) A new ordinance would be subject to constitutional challenge and enactment of a new ordinance would likely result in litigation because the home which plaintiffs desire to picket is located in an exclusively residential area; 287.6 The City Attorney told the Board the City Prosecutor believes the case should be appealed. McCord told the Board some additional factors to consider are: 287.7 (1) The estimated time an appeal would take is 6-9 months. During this period there would be no prohibition against residential picketing in the City; and 287.8 (2) An ordinance could be drafted which he thinks would conform to the Court of Appeals' "less restrictive alternative" requirement and would withstand constitutional challenge. 287.8 McCord said he personally believed the current ordinance would be upheld by the United States Supreme Court. McCord proposed an ordinance which would provide that "It shall be unlawful for any person to picket before or about a residence located in a residential area and used exclusively for residential purposes." He said he thought that ordinance would withstand a challenge of facial constitutionality. 287.9 McCord said, considering the City Prosecutor's opinion, he stills recommends the amendatory ordinance be adopted. 287.10 Director Kelley proposed another alternative - to drop the whole issue, so there would not be an ordinance which would prohibit picketing in residential areas. Kelley said that, after reading the First Amendment, he didn't see where the Board had the authority to try to legislate and qualify the First Amendment. 1 ii • September 15, 1987 e, ,? "J 8 He said he would vote against any ordinance that would try to 288.1 limit freedoms of citizens. Director Martin asked Director Kelley if 50 people were picketing 288.2 in front of his (Kelley's) house, would he consider he and his neighbors were entitled to the peaceful use of their property. Kelley said he thought that was a right he had as a property owner but, at the same time, the persons would have to assemble peacefully and give access to the property owner. He said people could picket his home based on political, moral or religious issues. Kelley said the Constitution doesn't quantify or qualify situations, it only says the people have a right to peaceable assembly. Director Martin said there were places where freedom of assembly 288.3 is permitted and there are other places where it violates other peoples' rights. He said the City never has denied anyone the right to express an opinion in the proper place, but a residential neighborhood is not the place. Martin said he thought the proposed amendment was exactly what the intent of the Board initially was when it passed the current ordinance. The City Attorney told the Board that, under the First Amendment, 288.4 the Court has not directly addressed an absolute ban on residential picketing, but did consider in 1980 an ordinance which prohibited residential picketing but contained an exclusion or exemption for labor disputes. He said the court struck that ordinance down as being violative of equal protection but said: "We are not to be understood to imply however that residential picketing is beyond the reach of uniform and nondiscriminatory regulation. The State's interest in protecting the well being, tranquility, and privacy of the home is certainly of the highest order in a free and civilized society. Nor can it be said that the State interest could be fully protected by a less restrictive statute. An absolute ban on picketing at residences used solely for residential purposes permissibly furthers the State interest in protecting residential privacy. The State could certainly conclude that the presence of even a solitary picket in front of a residence is an intolerable intrusion on residential privacy." McCord said the Court of Appeals' decision on the Fayetteville 288.5 ordinance, which was a narrow holding of overbreadth, reads: "Our holding is not a blanket' prohibition of residential picketing statutes. We hold rather that in this instance Fayetteville has not carried out its laudable motives with the care and precision required by the Constitution." Director Hess said another ordinance, than likely still be appealed. McCord • in his opinion, would more 288.6 said that was the point of 2OJ 289.1 289.2 289.3 September 15, 1987 the City Prosecutor. Hess said he would prefer to appeal the decision. Director Bumpass said it was just as possible for the City to appeal and the Eight Circuit to be upheld, and for the City to then rewrite the ordinance. Bumpass recommended the ordinance be amended. Director Lancaster said, from a safety standpoint, he resented the sidewalk being covered up with pickets, when people have to thread their way through. Lancaster said he was ready to vote to appeal it, and then write a new ordinance. 289.4 Director Kelley asked how the re -worded ordinance would be enforced. McCord said if an individual was picketing before or about a residence located in a residential area, the individual would be cited for a violation of the ordinance. Kelley asked how it would be determined what was a predominately residential area. McCord said the factual circumstance which precipitated the original ordinance occurred on Mt. Nord, and he said it would be clear to anyone driving through Mt. Nord that it was a residential area. 289.5 Director Marinoni said he felt anyone business during business hours but person home to his residence and picket totally unacceptable to him. Marinoni be amended. had a right to picket a to follow a professional in front of his house was said the ordinance should 289.6 Director Bumpass moved to amend the ordinance as recommended by the City Attorney. The motion was seconded by Marinoni. Upon roll call, the motion passed 6-1, Kelley voting in the minority. 289.7 The City Attorney read the ordinance for the first time. The Mayor asked if anyone wished to speak in favor of or in opposition to the ordinance. 289.8 Gary Carnahan, Fayetteville resident, asked the Board how many complaints had been received in the last ten years from people whose homes have been disturbed by picketing. He said picketing had taken place on Maple Street as well as on Mt. Nord, and the pickets had been few and have been peaceable. He said pickets had followed the Bill of Rights very carefully, and had not impeded the flow of other people on sidewalks. Carnahan asked how much City money has been spent, and commented that he thought City money was being spent to protect the interest of one businessman in town, that no one else had complained to the City. The City Attorney corrected Carnahan, stating the neighbors, not the businessman, had complained to the City. 1 1 September 15, 1987 • Carnahan said the original ordinance was passed without public 290.1 input and, when the public asked for a chance to appeal it, they were turned down. He said he thought the appeal would be "throwing good money after a bad idea". He asked that the City drop this, and not spend any more City time and money "trying to control' a few citizens who believe strongly in something they would like to make a statement against." McCord estimated the cost of appeal to be approximately $7500. He said if the Board adopted an amendatory ordinance "it would not cost the city a dime" unless the ordinance is challenged in court. He said the last appeal cost from $5000-$6000. Director Bumpass, seconded by Lancaster, made a motion to suspend the rules and place the ordinance on its second reading. A member of the audience, who told the Board he was one of the plaintiffs in the suit against the City, said "none of the picketers that really want to picket could be stopped dead cold if the abortionist would stop doing abortions". The City Attorney pointed out the ordinance was "content neutral" and didn't address the subject matter of the picketing. • Dr. Dow Pursley addressed the Board, suggesting it would cost the City considerably more than $7500 to appeal. He said he resented his tax money being used to support an abortionist. He told the Directors to think about their vote and decide how they wanted to be recorded in Fayetteville's history in this area. Upon roll call, the motion passed, 6-1, Kelley in the minority. 290.6 McCord read the ordinance for the second time. Director Bumpass, seconded by Lancaster, made a motion to further suspend the rules and place the ordinance .on its third and final reading. Upon roll call, the motion passed, 6-1', Kelley voting in the minority. The ordinance was read for the third time. Director Bumpass 'pointed out that the subject matter of the 290.7 public comments, which was strong opinions about abortion, is not the subject matter of the ordinance. He said the ordinance is to maintain the peaceful tranquility of the residential neighborhoods in the', city. He noted there were all sorts of commercial areas where picketing can take place and where persons can exercise their right of free speech. t, Upon roll call; the ordinance passed, 6-1, Kelley in the 290.8 minority. 290.2 290.3 290.4 290.5 ORDINANCE NO. 3293 APPEARS ON PAGE RESOLUTION BOOK /gX ✓ as OF ORDINANCE AND 1 I 4'J September 15, 1987 BURGER PLUS PERMIT 291.1 The Mayor introduced consideration of whether to appeal a decision by the Arkansas Alcoholic Beverage Control Board approving an on -premise beer permit for "Burger Plus", located at 14 S. University. She explained earlier this year, because of objections raised by the Acting City Manager, the Police Department and residents in the area, the permit was denied. She said later this was appealed to the full ABC Board and the permit was approved. 291.2 A. O. White, apartment owner across the street from "Burger Plus", told the Board he represented owners and managers of five apartments across the street and within one block. He said they oppose any alcoholic beverages being sold in that neighborhood. He said a petition had been signed by Summit Terrace Apartments, Beverly Manor, Glendale Apartments, Oakwood Place, Viking Apartments, and others. He said it wasn't right that political appointees (referring to the Alcoholic Beverage Control Board) "run our town". 291.3 White said approximately a year ago a beer license was applied for in the same area, and the City Manager, Police Department, Sheriff's Department, and the apartment owners and managers vigorously opposed it, and the license was denied. He said approximately six months ago another person applied for a license in the same area, and again the same persons opposed the license, and it was denied by the ABC Director. He said it was appealed to the entire Board which unanimously granted the license. 291.4 White said the City Board has opposed alcoholic beverage applications for locations which are not zoned C-2 or C-3. He said the "Burger Plus" property was zoned C-1 and is surrounded by residents opposed to the application. White said there was no one present at the hearing in Little Rock to represent those who were in opposition to Whitmore's beer permit, because they were under' the impression that the Sheriff's Department, Police Department, City Manager and City Board's wishes would be complied with. He said were it not for that impression, they would have been present with an attorney. 291.5 The City Attorney told the Board the City has the right to appeal the decision to Circuit Court. He said the question was whether the record made before the ABC Board contains substantial evidence to support the Board's decision. He said the property owners also had the right to appeal, whether or not they had been present at the session. A. O. White said the property owners had not yet discussed whether to appeal but if an appeal is made they would prefer it be a joint appeal with the City. 1 n 1 II 11 September 15, 1987 The City Attorney explained any appeal must be made within thirty days from final agency action, which was taken on August 20. Hess said he thought if any appeal is made, the City's weight should°be behind it. Director Lancaster asked, if an appeal is filed, what would happen to the permit. The City Attorney said a court order staying the permit could be requested. Pat Tobin, owner of the "Burger Plus" property, said restaurant, beer and wine licenses can be found in just about any zoning class within the city with the -'exception of residential areas. He noted his property was zoned C-1, said zoning should not be used as a tool to discriminate or forbid somebody from doing something they have a right to do within that zoning classification. Tobin said to have to fight City Hall in order to do business is totally unfair. He said his tenant had rights to do business in the City of Fayetteville. Director Bumpass said he really believed if the apartment owners feel they've been aggrieved and their property values are at risk it might make sense for them to bear the expense of filing the appeal. He said he could see the City cooperating by providing additional testimony. Mayor Johnson asked when the Board can object to an on -premise beer permit in a certain location. She said the Board had routinely opposed those permits for locations close to residential districts. She said the first time the permit was requested, the ABC Director considered the opposition, but when it was heard a second time by the full ABC Board, they gave no consideration to the opposition. Johnson said she preferred appealing the decision. Director Johnson moved to.appeal.the permit to the Circuit Court, with the .adjoining property owners, and that those expenses be shared fifty/fifty. The motion was seconded by Marinoni. The City Attorney said the motion created a problem, as far as he was concerned, if the property owners don't come to him within the proper time period with an agreement to share the costs. Johnson said the City Attorney should file the appeal and the City work out an arrangement with the property owners afterwards. The City Attorney said he thought the City should make its own decision and let the property owners do what they want to do. • Johnson reworded her motion to appeal the decision of the Arkansas Beverage Control Board to the Circuit Court. The motion was seconded by Director Martin. Director Bumpass asked for a staff recommendation. Administrative Services Director Linebaugh said the staff had 9 (i f././4, 292.1 292.2 292.3 292.4 292.5 292.6 292.7 292.8 r�kl September 15, 1987 293.1 done everything administrative -wise that could be done and to go any further would involve a lawsuit. He said the staff concurs with the Mayor. 293.2 Bumpass said the City routinely objects to certain permits in different locations but he thought the precedent should be clear. He said the City has allowed beer permits to be issued under these same circumstances directly across the street from apartments where students live. He said he thought the applicants were legally entitled to have their permit in a commercial zone. He said he thought the Board would be better off rezoning the property. 293.3 The City Attorney said if the City opposes a particular permit he should be instructed to participate in the administrative hearings because any appellate review will be based on the record made before the administrative board. He said in this case he was not asked to participate and the record is not as good as he'd like for it to be on an appeal. He said there was a fifty/fifty chance of success. McCord estimated the appeal could cost $2-3000. 293.4 Director Martin commented that the issue is proximity to residential areas, not the question of the appropriateness of beer or wine. He said he might feel differently if the neighbors had not objected. He said he felt obliged to support the neighbors, noting that the Board's policy has been to oppose these permits in a C-1 zone. 293.5 Director Lancaster said the City Board should back up their decision to oppose the permit. 293.6 Director Hess said procedurally speaking the Board should send McCord to the administrative hearing when it chooses to oppose a permit. 293.7 Upon roll call, the motion passed, 6-1, Bumpass voting in the minority. ANIMAL SHELTER OPERATION 293.8 The Mayor introduced a resolution authorizing the execution of an agreement between the City of Fayetteville and the Fayetteville Humane Society, for the operation of the Animal Shelter. 293.9 Director Hess, seconded by Martin, made a motion to approve the resolution. Upon roll call, the motion passed, 7-0. 1 1 1 September 15, 1987 RESOLUTION NO. 66-87 APPEARS ON PAGE 3 3 y OF ORDINANCE & XXVII I RESOLUTION BOOK SIGN ORDINANCE CHANGES The. Mayor introduced• an ordinance amending the City's Sign Ordinance, left on second reading on September 1st. The City Attorney requested the Board delete Section 2 of the ordinance, so that he might research court decisions dealing with prohibitions against pennants, balloons and windblown signs, with his intent being to redraft Section 2. Director Bumpass, seconded by Marinoni, made a motion to suspend the rules and place the ordinance on its third and final reading. Upon rdll call, the motion passed, 7-0. The City Attorney read the ordinance for the third time. Director Bumpass moved to amend the ordinance be deleting Section 2. The motion was seconded by Martin and, upon roll call, passed by a vote of 7-0. Director Johnson expressed concerns about allowing two signs on commercially developed property used for residential purposes. She said this would cause more visual blight in residential housing areas, because the ordinance will allow "for rent" signs as well as allowing another sign for advertising. Johnson moved to delete Section 3 (b) from the ordinance. The motion was seconded by Lancaster.. Johnson said removing this section from the ordinance would allow the Board to vote on it separately. Upon rollcall, the' motion failed, 2-5, Johnson and Lancaster voting in favor, and the remainder of.the Board voting against the motion. Director Bumpass said the ordinance would now legitimize apartment signs. He asked about size limitations for these signs. , Inspection Superintendent Wood said the signs would be limited to four square feet, must be set back 15 feet, and limited to six feet in height. ti Director Hess said this would allow apartments to advertise their business through a freestanding sign. Johnson pointed out apartments are already being permitted "for rent" signs, and that now they will be permitted to have a second freestanding sign, and in addition may have a wall sign. 1 294.1 294.2 294.3 294.4 294.5 294.6 294.7 .i J September 15, 1987 295.1 Director Bumpass asked if the "for rent" signs and the freestanding signs should be allowed for awhile and, if there is abuse, the signs would have to be standardized. 295.2 Upon roll call, the ordinance passed, 6-1, with Johnson voting in the minority. ORDINANCE NO. 3294 APPEARS ON PAGE 2,2/ OF ORDINANCE AND RESOLUTION BOOK %K/ V SANG SENIOR CENTER ADDITION 295.3 The Mayor introduced consideration of the award of bid for construction of an addition to the Sang Senior Center, to be funded under the Community Development Block Grant program. She said the Public Works Director recommends the bid be awarded to the lowest of three bidders, Turner General, bidding $19,477. She said the estimate had been $20,575. She told the Board the contractor expects to complete the work within sixty days after issuing a Notice to Proceed. 295.4 Director Hess, seconded by Martin, moved the award of bid to the low bidder. Upon roll call, the motion passed, 7-0. WEDINGTON DRAINAGE 295.5 The Mayor introduced consideration of the construction of Phase II of the Wedington area development project. She told the Board Director recommends the award to the lowest Snyder Construction, bidding $251,316.32. engineer's estimate was $298,214. award of bid for drainage community the Public Works of five bidders, She reported the 295.6 Director Marinoni, seconded by .Johnson, made a motion to award the bid to Snyder Construction Company. Upon roll call, the motion passed, 7-0. RUPLE ROAD DRAINAGE 295.7 The Mayor introduced a request from the Public Works Director for the city to contribute one-half the cost of constructing drainage improvements to Ruple Road and Highway 16 West. She said the Public Works Director estimates the cost of the project to be $55,000, and recommends the City contribute $27,500. She said 1 1 September 15, 1987 216 V the budget contained $35,000, and that the City had already 296.1 contributed $5,850 towards engineering design work. Johnson suggested that, since the City has already spent $5,850, 296.2 the City pay $25,000 rather than $27,500. Director Marinoni said he had lived in that area all his life and 296.3 attested to the fact that the drainage work is highly needed. He said the property owner contributing half is already a better deal than the City is receiving on the Wedington drainage project. Marinoni moved to approve the City's contribution of $27,500, 296.4 seconded by Martin. Public Works Director Burch explained the City's expenditure of 296.5 $5,850 took place in 1985. He recommended the City participate up to $27,500 but that any additional engineering required to complete the portion on the south side for which the property owner will be responsible, would be entirely at the cost of the property owner. Marinoni agreed this was the intent of his motion.. Upon roll call, the motion passed, 7-0. 296.6 • RECESS The meeting recessed at 9:25 p.m. and reconvened at 9:40 p.m. UNSIGHTLY PROPERTY The Mayor unsightly structure on August meetings. introduced an ordinance ordering the abatement of conditions and the razing and removal of an unsafe located at 1717 Stirman Avenue; left on first reading 4th and tabled at the August 18th and September 1st Public Safety Director Coates told the Board the staff to allow them until September 4th permit. He said this has not been done, Board proceed to act on the ordinance. the owners had asked to obtain a building and recommended the Director Hess, seconded by Marinoni, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed, 7-0. The City Attorney read the ordinance for the second time. Director Bumpass, seconded by 296.7 296.8 296.9 296.10 September 15, 1987 297.1 Marinoni, 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. 297.2 Director Johnson, seconded by Martin, moved to delete the emergency clause from the ordinance, so the property owners will have an additional thirty days. Upon roll call, the motion passed, 7-0. 297.3 Upon roll call, the ordinance passed, 7-0. ORDINANCE NO. 3295 APPEARS ON PAGE �223 RESOLUTION BOOK )(XIV OF ORDINANCE AND YOUTH CENTER POOL 297.4 The Mayor introduced a request from the Public Works Director for approval of a resolution authorizing the City to enter into a contract for an engineering study on the Youth Center pool; and approval of a budget adjustment to pay for the study. Johnson said the staff recommended the contract with Northwest Engineers and O. Michael Green Engineering, Inc., who will study the structural and mechanical problems with the Youth Center pool and make a recommendation and cost estimates for necessary repairs. She said there would be a lump sum fee for the study of $1500, to be taken from floating boat dock funds which were not used this year. 297.5 Public Works Director Burch said the Parks and Recreation Advisory Board had brought this request to the staff. He said it was decided to find someone trained in air handling equipment and structural design to do the study. He said the engineers recommended had past experience in this area and in the pool area. - 297.6 Director Martin asked about the requirement for obtaining competitive bids. The City Attorney explained this would not be required because of the amount to be spent. 297.7 Director Hess, seconded by Bumpass, moved approval of the resolution. Upon roll call, the motion passed, 7-0. RESOLUTION NO.72-87 APPEARS ON PAGE 34.5" OF ORDINANCE AND RESOLUTION BOOK )(X V // / p , 1 1 2 September 15, 1987 BID AWARDS/SANITATION TRUCKS BID NOS. 802 AND 802-1 The Mayor introduced consideration of the award of Bid No. 802. 298.1 She reported the Public"Works Director recommended the award, for one 58,000 GVW truck chassis, to the only bidder, Crane Carrier Corp., bidding $74,970.. She introduced the award of Bid No. 802-1, the Public Works 298.2 Director recommending the award,'for one 34 Cu. Yard Front Loader unit, to the lowest bidder, Lodal, Inc., bidding $41,182. Director Bumpass, seconded by Lancaster, moved the award of Bid 298.3 No. 802, for $74,970, to Crane Carrier Corp., the only bidder, and the award of Bid No. 802-1, for $41,182, to Lodal, Inc, the low bidder. In answer to a question from Director Marinoni, Public Works 298.4 Director Burch said this was a replacement truck. He said old chassis are sold at auction, and the pack body itself is also sold but usually doesn't bring much on resale. Upon roll call, the motion passed, 7-0. 298.5 1 APPOINTMENTS Director Kelley, Chairman of the Board Nominating Committee, recommended the appointment of Stephen Brandeis and Barry Fink to the Electrical Advisory Board, and the appointment of Bill Flynn to the Historic District Commission. Kelley so moved, seconded by Martin. Upon roll call, the motion passed, 7-0. 298.6 AIRPORT HANGAR LEASE The Mayor introduced a resolution authorizing the Mayor and City 298.7 Clerk to execute a renewal of a lease with Aero Tech Services for a maintenance hangar; tabled at the September 1st meeting. Johnson said this lease contained the same provisions as last year; at $1,674.17 per month, but will be for a term of one year. Lancaster moved approval of the resolution, seconded by Bumpass. 298.8 Upon roll call, the motion passed, 7-0. RESOLUTION NO. 67-87 APPEARS ON PAGE 357 OF ORDINANCE AND RESOLUTION BOOK i(x vfn 91)9 September 15, 1987 HART LEASE MODIFICATION 299.1 The Mayor introduced a resolution authorizing the Mayor and City Clerk to execute a modification to a lease with Hart Leasing (dba Express Rent A Car) for a car rental booth in the Airport Terminal Building; tabled at the September 1st meeting. 299.2 Johnson explained the modification would allow for the monthly rental to be credited to the company until such time as the total amount credited pays for the overflow parking spaces they constructed at the Airport. 299.3 Director Hess, seconded by Lancaster, moved approval of the resolution. Upon roll call, the motion passed, 7-0. RESOLUTION NO. 68-87 APPEARS ON PAGE .39y OF ORDINANCE AND RESOLUTION BOOK ,KX V ii / ADVERTISING DISPLAY LEASE 299.4 The Mayor introduced consideration of a resolution authorizing the Mayor and City Clerk to execute a one-year lease agreement with Bentonville Inn for advertising display space at the Fayetteville Airport Terminal Building, at a monthly rental cost of $80 per month. 299.5 Director Bumpass asked if the Board could reconsider this proposal in light of the airport survey just received. He suggested the Advertising and Promotion Commission should be contacted about the availability of display space for businesses in the Fayetteville area. He said "we are not getting what I think is an appropriate market share of the overnight visitors to the area that come through the Fayetteville Airport" and at the same time "we are getting comments from the passengers who come through the Fayetteville Airport that they are dissatisfied with some of the hotel and restaurant services available to them." Bumpass said he believed the City may need to do a better marketing job of things available in the area before allowing an out-of-town business to advertise at the terminal. 299.6 Bumpass moved to table this and submit its consideration to the Advertising and Promotion Commission. The motion was seconded by Kelley and, upon.roll call, was passed, 7-0. 1 1 1 1 September 15, 1987 FINANCIAL AUDIT John Votter, speaking on behalf of, Arthur Young, the financial audit for the year ending December presentation to the Board -on the findings of the which conducted 31, 1986, made a audit. 300 300.1 Votter said the audit consisted of eight reports, two of which 300.2 were financial, two concerned internal.control, three concerned compliance, and one was the "management letter". Votter 'said an statements shows examination of the general purpose financial 300.3 "everything is okay". 1 He said the report on the, schedule of federal financial 300.4 assistance shows the City to be in conformance with generally accepted accounting principles. • He said, in their study of the internal control system, the 300.5 general purpose financial statements show no condition of material weakness; and'a second study of internal control systems used in administering federal financial assistance programs also shows no condition believed to be a material weakness. • He said the compliance report on the general purpose financial 300.6 statements, and the report required to be issued by the Single Audit act shows the City to be in compliance with the laws and regulations. He said in reference to the City's responsibility for complying- 300.7 with laws and regulations of the State of Arkansas, results indicated the City to be in compliance, except for certain items which were found to be in non-compliance: The City Treasurer has not been submitting monthly copies of 300.8 bank reconciliations and signed statements to the Board of Directors; A list was not provided in a timely manner to the Board of 300.9 Directors, of all banks doing business in the State and which are members of the FDIC; The City does not use professional services maximum established by competitive contracts the Board; bidding procedures on all 300.10 which exceed the $2,500 The Arkansas Judicial Department is not being given a copy 300.11 of reports from the Municipal Court Clerk on monetary settlements of certain court costs and fines collected. The Municipal Court Clerk is not always making daily deposits of cash receipts. 3U1. September 15, 1987 301.1 No state statute or ordinance can be found authorizing a $4.00 fee being collected by the Municipal Court. 301.2 Votter reported on the study of the City's compliance with the terms and provisions of applicable federal awards, and he summarized the schedule of findings and questioned costs: 301.3 Two instances were found where there was no Department of Labor wage determination for the classification of certain individuals employed by contractors or subcontractors, causing a question in the amount paid to the individuals. 301.4 One instance was found in which the certified payroll did not included classifications for the employee, causing a question in the amount paid to the individual. 301.5 A review of salaries charged to the CDBG Program notes that salaries were charged based on percentages instead of detailed timesheets (a procedure approved by a regional office but not by a district office) 301.6 Federal funds held in a CDBG escrow account were being released before completion of housing rehabilitation projects. 301.7 A grantee performance report, for the CDBG program, was filed two months late. 301.8 Grant expenditures review shows retainages were being requested as the expenditure occurred but before they were due and payable. 301.9 On an Airport project, two expenditures were made prior to the grant execution date and were later charged to the program. 301.10 Construction projects were not completed in the designated time frames, including extensions obtained. 301.11 Prior approval was not obtained for professional services on a CDBG program. 301.12 Bonding was obtained in three situations from insuring companies which did not hold certificates of authority as acceptable sureties. 301.13 Reporting on the management disclosed no evidence of a further consideration be given items: letter, Votter noted the study material weakness, but suggests by the City to the following 1 1 The City auditors reviewed September 15, 1987 incorrectly paid some parking lot revenues. The recommend .schedule changes in the future be by the,City Attorney. Two instances of noncompliance were found with various debt covenants. The auditors recommend monitoring procedures be established. • l Several instances of ' noncompliance were found in Airport grants, some because of split accounting functions between Airport and the Finance Department. The auditors suggest the Airport Accounting functions be brought back under the Finance Department. The auditors noted the Administrative Services Director and the Accounting Supervisor were spending a great deal of time on special projects, analyses and requests from Board members which detracted from the day-to-day running of the department. The auditors recommend the city add a position of "city auditor" to do internal auditing and be responsible for grants administration. Extremely high turnover rate is seen in the Finance Department. The auditors recommend an internal study be done to determine the causes of the turnover. Director. Martin asked if some of the situations were to continue would they result in a finding of material weakness. Votter said it was possible a few of them could, especially the high turnover situation. Director Hess asked if it was the auditors' procedure cost -efficiency or time -management recommendations management letter. Votter said they always furnish a "one liners" to Linebaugh which are not included management letter. Hess said even though the situation at the airport is not considered a "material weakness" he felt it ought to be investigated. to make in the list of in the Director Lancaster said paperwork". He said Finance` Department, the the people in City Hall are "drowning in instead of tending to business in the employees are doing surveys and reports. Director Bumpass said he didn't want a situation where everybody is "pointing fingers" at everybody else, but he didn't want it to be a problem again next year. He asked the City Manager how the questions would be resolved. Pennington commented that the audit report could not have come at a better time for him. He noted 302 302.1 302.2 302.3 302.4 302.5 302.6 302.7 302.8 302.9 302.10 September 15, 1987 303.1 that, although there are not any material weaknesses, there are a lot of "red flags" that exist. He said it was his responsibility to report back to the Board with organizational improvements that can be made in a short period of time. He said internal management will have to be looked at, particularly on the finance side 303.2 Director Martin asked Pennington when he would give the Board a response to the audit. Pennington said on about 3/4 of the items he could provide a response in about two weeks, and on some items he would respond within thirty days. Pennington said he had some very firm opinions on what can and should be done. ASBESTOS REMOVAL 303.3 The Mayor introduced consideration of the award of bid for asbestos removal at the Fayetteville Public Library; and a resolution authorizing the Mayor and City Clerk to execute a contract with Environmental Protection Associates of Russellville, Arkansas, the low bidder, bidding $123,843. The Mayor told the Board the budget contained $300,000 for this work. 303.4 Director Hess, seconded by Marinoni, moved award to the low bidder, Environmental Protection Associates. Upon roll call, the motion passed, 7-0. RESOLUTION NO. 69-87 APPEARS ON PAGE .3 Y L OF ORDINANCE AND RESOLUTION BOOK XX01 BID WAIVER 303.5 The Mayor introduced a request from the Public Works Director for an ordinance waiving the requirements of competitive bidding and authorization to purchase two pumps for the Highway 112 Sewer Lift Station. 303.6 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 its second reading. Upon roll call, the motion passed, 7-0. The ordinance was read for the 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. 1 1 September 15, 1987 • In answer to a question from Director Martin, Public Works Director Burch told the Board'the pumps would not be the same type as those which have -been installed in the pump station•at Highway 265 and Old Wire"Road. Martin said, "those pumps stink". Martin objected, saying that people are now being offended with odor from that project. He said' Burch has told him the contractor is being pursued by the City. Burch explained that hopefully the City can.get the situation taken care of as soon as line bypass work is completed. Upon roll call, the ordinance passed,"7-0. ORDINANCE NO. 3296 APPEARS ON PAGE 2,23. -- OF ORDINANCE AND RESOLUTION BOOK XX/ V Bumpass said he thought the City should publicly announce that people should expect the odor when there is going to be a line bypass, and that it is a temporary inconvenience. Martin said Burch told him oxygen can be injected into the stream which would mitigate the odor. Martin suggested the contractor be asked to do this, as the offensive odor at the intersection has existed' for the last two or three months. Burch said all connections should be completed by mid to late October. He said he would talk to the contractor to see if arrangements can be made for the oxygen. BUDGET ADJUSTMENTS The Mayor introduced requests for approval of budget adjustments for (1) travel expenses for applicants for the position of City Manager, •in the amount of $3,217, with funds for this to be transferred from an excess in General Fund designated; but not needed, for the Arts Center Fund, to the Travel and Training account; (2) for the expense of animal disposal from August through December (until the incinerator is operational), in the amount of $1,875, with funds to be transferred from Building Cost account to Contract Services account; and (3) for repair of a water line break on Harvard Street, in the amount of $1,245, with funds to be transferred from the Fire Division's travel and training account to the Water Division's miscellaneous account. Director Bumpass, seconded by requests. Upon roll call, the Hess, made a motion to approve the motion passed, 7-0. • 01 304.1 304.2 304.3 304.4 304.5 uuj September 15, 1987 HOUSING & HISTORIC PRESERVATION 305.1 The Mayor introduced a resolution proposed by Director Bumpass, urging Congress to amend the 1986 Tax Reform Act to ensure that rehabilitation tax credits and low-income housing credits are an effective method of achieving historic preservation and low- income housing objectives. The Mayor commented that this issue was discussed at the last Board agenda meeting. 305.2 Director Bumpass moved approval of the resolution, seconded by Johnson. Upon roll call, the motion passed, 7-0. RESOLUTION NO. 70-87 APPEARS ON PAGE 3y, OF ORDINANCE AND RESOLUTION BOOK nxV1f1 PERFORMANCE AUDIT 305.3 The Mayor introduced a request from Arthur Young for payment for services rendered in connection with the performance audit conducted by them in 1985. 305.4 The Mayor reported the Administrative Services Director recommends payment of the entire contract fee of $48,700, and an additional amount of $19,463 for expanded services, including reviewing the City's communication system and Central Dispatch. 305.5 Director Bumpass, seconded by Martin, moved approval of the recommendation of the Administrative Services Director. 305.6 John Vines, speaking on behalf of Arthur Young, told the Board the firm feels a fair fee for their work would be more on the order of $90,000. He said after meeting with as many Directors as he could, and receiving feedback, the firm is now willing to settle for the recommended amount "in order to get this matter behind us and to continue the good working relationship we have had with the City of Fayetteville over the years." 305.7 Director Hess said, unfortunately at Arthur Young's expense, this has pointed out a weakness in the City's contractual procedures, which is that at some point the company felt they were going beyond the scope of the contract and the staff felt they were within the scope. Hess said if the company had informed the City at the point when they felt they were going beyond the scope of the contract, if there were discrepancies it could have been discussed then. 305.8 In answer to a question from the Mayor, Vines said the audit work papers were in Scott Linebaugh's office. 1 1 • ii • 306 September 15, 1987 Uponroll call, the motion passed, 6-1, Lancaster voting in the 306.1 minority. OTHER BUSINESS GENERAL PLAN The Mayor introduced consideration of the award of contract for 306.2 update of the City's General Plan. She said the Selection Committee, composed of Director Bill Martin, Don Bunn, Bob Franzmeier, Ernest Jacks and -Sandra Carlisle, recommended the contract be awarded to the low bidder, Hart -Freeland -Roberts, in the amount of $60,000. Director Martin, seconded by Kelley, made a motion award of contract to the low bidder.. to approve the 306.3 Director Bumpass asked if the options offered by the •firm would 306.4 be in addition to the $60,000 bid. Carlisle said if the City chose to pursue the options at a later date, the cost of those could be budgeted in 1988. She said the options were over and above what was specified in the Requests for Proposals. Director Martin said the committee was impressed with the work of the firm, and felt some of the options would be well recommended for the future. Carlisle concurred. 306.5 Director Hess said the City had no planner on board who could 306.6 impart information to or from these people, and another consultant is being hired to do a job he thought could be done in-house. He said he could not vote in favor because he thought it was premature. Upon roll call, the motion passed, 6-1, Hess voting in the 306.7 minority. RESOLUTION NO. 71-87 APPEARS ON PAGE .3S a OF ORDINANCE AND RESOLUTION BOOK X XV/I ARTS CENTER SURVEYOR The City Attorney said the surveyor for the Arts Center project 306.8 has advised him that five of eight property owners have not granted him permission to enter upon their property to begin the surveying work. He asked if the Board wished to authorize his office to file an action to obtain court orders of entry so the work.can be done. Director Johnson, seconded by Martin, Attorney's office get a court order of Upon roll call, the motion passed, 6-0-1, moved that the City entry for the survey. Bumpass abstaining. 306.9 • 30' POLARBEK DEVELOPMENT September 15, 1987 307.1 Director Marinoni raised the issue of a 188 -apartment large scale development to be built on James Street. He said he had received a number of calls from irate constituents who are upset about the process. Marinoni said he was "a little bit in the dark on the facts" because the only material the Board received was Planning Commission minutes and memos from the City Attorney. He said he was told the development was heard by the Subdivision Committee but the notice to adjoining property owners went out the day of hearing, and these people contend they didn't have time to prepare or to retain a lawyer. Marinoni said he was told the development was then recommended on to the Planning Commission which tried to table it but they were instructed by the City Attorney that they could not table the issue. Marinoni said Director Hess then appealed the decision. Marinoni said the adjoining property owners feel the applicant has succeeded in getting approval and "eluded the just process through our Planning Commission." Marinoni asked for someone on the staff to explain what actually happened. 307.2 Director Hess said the Subdivision Committee approved the development without any further action by the Planning Commission. The City Attorney explained the ordinance provides that the Subdivision Committee shall approve, disapprove or refer to the Planning Commission each large scale development and, in this case, they approved it. 307.3 Hess said he appealed the decision on the basis of several points: (1) the drainage (which he said may be adequately addressed now); (2) parking (which he said another person has now told him may exceed the requirements); (3) while the developer might have followed the requirements in sending out notification, he didn't feel the developer followed the spirit of the requirement. Hess said notice was sent out Wednesday and received at 5:30 p.m. on Thursday. Hess said the Planning Commission refused to hear his appeal and a property owner's appeal. 307.4 City Attorney McCord advised the Board that the developer's attorney claims the appeal was filed too late, as required by ordinance; that it should be filed by a Director and, instead, was filed by the Acting City Manager; and that the appeal should state the reasons the Subdivision Committee was in error, and it did not do that. McCord said the property owners contend they did not receive adequate notice. He said the ordinance requires the notice either be sent by mail or published in the newspaper. He said, since the notice was published the day before the Subdivision Committee meeting, there was technical compliance. 1 1 i4. September 15, 1987 3t)8 McCord;said he advised the Planning Commission that the appeal 308.1 was timely filed, even though it was on the llth day and not the 10th'day (as required by the ordinance) because the 10th day was a Sunday. He said he advised them it was irrelevant that it was actually submitted by the Acting City Manager, because it was submitted on behalf of a Director.- He said he advised the Commission the issue for them was to decide whether the appeal stated the reasons the appellant contended the decision was in error;tand they apparently decided all the issues addressed in the appeal had been previously considered by the Commission and did not state valid reasons for them to reconsider the issue. He said they voted 5-4 not to hear the appeal. Hess commented that this development was approved by two of the three-member Subdivision Committee. Martin asked if the committee was not charged with the task of ensuring that the plan conformed to the City requirements. Hess said he was sure this was done. Martin asked if due process had not been followed. Hess said the Planning Commission as a whole voted to table the issue but could not because the Subdivision Committee had already approved it. Hess said he thought every large development should be reviewed by the Planning Commission. McCord explained that the original ordinance required that to be done, but the City Board amended the ordinance to allow the Subdivision Committee to approve them. Hess said he thought the ordinance should be amended. The City Attorney said. he thought this points out the need to amend the notice requirement in the ordinance, that it must be published seven days before the meeting. Director Bumpass said he thought this was a tragedy. He said any time a,Director wants to appeal a Planning Commission decision "this is where the buck should stop." Martin disagreed, commenting that otherwise there will be no planning process at all. He said any one Director should not have a veto power over a city; commission. Hess said Bumpass meant that any Director should have the right to appeal a decision to the full Board, which would vote. Bumpass said the Board does not know whether the developer met the requirements or not, since they will not have to present their plan before the Board. Martin said he didn't want to review every decision -of the Planning Commission, when any one Director has an objection. Bumpass expressed concerns over the. traffic considerations, noting 'that the development could be responsible for the addition of 300-400 additional cars on a dead-end street. Bumpass said he thought the Board should appeal the decision to Circuit Court. • 308.2 308.3 308.4 308.5 308.6 3 '.1. September 15, 1987 309.1 McCord said the Court would have to decide the same issue which was before the Planning Commission -- does the development conform with City ordinances. 309.2 Martin commented that it was ludicrous for the Board to sue the Planning Commission for "doing what this Board told it to do." Martin pointed out that nobody's going to want to serve on the Planning Commission "if this Board is going to act like one planning commissioner every time a decision comes up that doesn't conform to our personal interests." 309.3 McCord pointed out that any property owner also has the right to appeal to the Circuit Court. 309.4 Director Lancaster asked if the Board could pass an ordinance eliminating the three-member Subdivision Committee. McCord pointed out the Board could establish any procedure it wishes to establish. 309.5 The Mayor asked the City Attorney to prepare an ordinance requiring (1) a seven-day notice time to be published in the paper prior to a large scale development being heard by the Planning Commission; (2) a letter which is to be mailed at least seven days prior to that meeting; and (3) that all subdivisions are referred to the Planning Commission for final approval, with an appeal to the City Board. 309.6 The Mayor asked for a point -by -point statement of the facts in this case, before making a decision on whether or not to file suit. 309.7 Director Bumpass asked when a notice of appeal would be required to be filed. McCord said, under the statute, it is thirty days from the date of final administrative action (the day the Planning Commission voted not to hear=the appeal). He said the day of Subdivision Committee approval was August 20. McCord said the Board could file a Complaint, attaching the minutes of the meeting as the "transcript" of the proceeding. 309.8 Director Martin asked if the Chairman of the Planning Commission could address the Board as to some of the facts. He said the Board was making assumptions that the Planning Commission didn't consider things which are routine for that body. Director Hess said there wasn't time to do that. He reiterated that the Planning Commission voted to table. 309.9 Director Hess said that having a City planner on board as a go- between for the two bodies would be enormously advantageous at this point. 1 1 • 1 "4 September 15, 1987 Rosemary Shaddox, resident of James Street, addressed the Board. She said on September 1 she was told the next meeting of the Planning Commission would be on September 14 at 5:00 p.m., and was told the City Attorney overrode the decision of the Planning Commission on August 24th, and was told that if she filed an appeal k by Thursday, September 3, it would be within the regulations. She said her attorney filed the appeal on September 2 and now she is told her appeal is not legal. She said she had questions about that, and questions about the approval of the development by two people "without any input whatsoever from the people that live in that area." She remarked that the street in question is 18 feet wide and has a water line running right through the middle of the street. She said the development plan includes an extension of the street to 31 feet after it passes her home. She said traffic would be funneled off Garland down Mt. Comfort. She said right now Mt. Comfort can't carry all the traffic it carries. She said she had questions about being able to turn off Mt. Comfort into James Street. She asked how a fire truck would turn onto an 18 foot street. She said she was of the opinion that "we don't need an apartment complex." She said she just wanted the Board to be aware of what the situation will entail with that large a complex. She said if there is a 1" rain there is going to be a drainage problem that is overwhelming. She said no one got to speak at the Planning Commission meeting last night. She asked the Board to take her concerns into consideration. The City Attorney advised the Board they could request the Subdivision Committee to reconsider its action, and refer the development to the full Planning Commission for its consideration. The Mayor said she thought the Board ought to do that as a first step. • Bumpass said he thought this had been improperly handled. Bumpass, seconded by Hess, moved that the Board file a notice of appeal tthrough -the City Attorney in the Circuit Court as described earlier, with the minutes from the August 24 meeting, and at the same time request the Subdivision Committee to refer the development to the `full Planning Commission so that these people can be heard who appeared and apparently could not speak. 4 Director Martin said he thought if the City Board got into the processof suing its citizen committees .it is going to destroy the integrity of that ,process. He commented that the committee may have come up_with a decision that some Directors don't like but they did exactly what.they were supposed to do. Bumpass said he was asking to preserve an opportunity for people to be heard. He said he was dumfounded that someone on the staff hasn't said there will be a street bigger than 18 feet and we • • 310.1 310.2 310.3 310.4 310.5 311.1 U J. will be drainage ought to minutes, September 15, 1987 able to get fire trucks into the development, and that is not a problem. He said he thought staff assessments be stated in an open meeting, and there needs to be and people living out there need to speak. 311.2 The Mayor said she was disturbed that the City has a Planning Commission which won't listen to another group of citizens with a concern about an area in their neighborhood. Hess said he didn't care how the Planning Commission voted but couldn't understand why they wouldn't let people have the common courtesy of speaking their minds. Director Martin pointed out the Board had not even heard from the Planning Commission and didn't know that they didn't allow anybody to speak. He urged that the Board allow the Planning Commission to respond and hear both sides of the issue. 311.3 Marinoni said the Board has found a couple of loopholes in its system - (1) that the only required notice is the same day as the hearing; and (2) that the Subdivision Committee has the right to approve a large scale development. Marinoni said the Board is trying to back up and "catch the canary after he's already out of the cage." 311.4 Bumpass request, Planning said if the Subdivision Committee honors the Board's the appeal can be easily dismissed and then the full Commission can hear the issue in the appropriate forum. 311.5 The City Attorney pointed out, if an appeal is filed by a property owner, the Planning Commission would be the defendant and he would be defending them. He said if the Board files an appeal, he would defend the Board and they would have to retain private counsel to defend the Planning Commission. 311.6 Bumpass said if the street is not improved and traffic increases the taxpayers will pay for the improvements, not the developers who have caused the traffic problems. McCord said he was sure all those concerns were addressed by the Subdivision Committee because off-site improvements are a requirement of the ordinance. 311.7 The City Attorney stated he did not think it was a good precedent for the City Board to sue its Planning Commission, because of some practical considerations pointed out by Director Martin. 311.8 Upon roll call, the motion failed, 2-5, Directors Hess and Bumpass voting in favor, and Directors Marinoni, Johnson, Lancaster, Martin and Kelley voting against the motion. 1 1 1 0 t September 15, 1987 Director Lancaster moved to request the Subdivision Committee, on their own initiative, ask for a rehearing to the Planning Commission on this issue, and that the property owners be given time to file their own suit. The motion was seconded by Marinoni and, upon roll call, passed, 7-0. MINUTES The minutes of the September 1 meeting were approved as distributed. ADJOURNMENT The meeting was adjourned at 12:00 midnight. • 1) ') V 1 ti 312.1 312.2 312.3