HomeMy WebLinkAbout1988-01-19 Minutes•
MINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS
A regular meeting of the Fayetteville City Board of Directors was held on
Tuesday, January 19, 1988 in the Directors' Room of the City Administration
Building at 113 West Mountain Street, Fayetteville, Arkansas.
PRESENT: Mayor Johnson; Directors Hess, Martin and Marinoni; City
Manager Pennington, Department Directors Coates and
.Linebaugh, City Attorney McCord, City Clerk McWethy, members
of the press and audience.
ABSENT: .Directors Bumpass, Lancaster and Kelley
ROLL CALL
The Mayor called the meeting to order with three directors present.
Director Marinoni arrived at about 7:35 p.m. The Mayor explained that
Director Lancaster was in the hospital, Director Bumpass was absent due to a
back injury, and Director Kelley was out of town. The Mayor asked for a
moment of silence
The City Attorney advised the Mayor that the City Manager could make his
report without a quorum present, but that no Board action should be taken
without a quorum.
CITY MANAGER'S REPORT
City Manager Jim Pennington presented a report to the public for the month 34.1
of December, 1987. Pennington reviewed the financial picture of the City,
followed by a report on personnel statistics.
Pennington reported that the parking plan for the Arts Center project has 34.2
been formulated by the Arts Center architects and is available for review at
the Arts Center office. He reported five year public forums continue to
take place at City Hall. He said the Warner Cable franchise renewal has
been postponed while Warner investigates certain cost elements in bringing a
Little Rock channel to subscribers, a main point in the negotiations.
Pennington said in early December Warner said they were ready to finalize
their information but, as of today, no information has been forthcoming. He
said the City has now requested Warner establish a date when they will be
available to meet to move on with the negotiations.
Pennington, referring to the Wastewater Treatment Plant project, reported 34.3
good progress was being made until the inclement weather arrived. He said
Huber, Hunt and Nichols had 334 personnel on the job at one point, but
January 6 their staff was down to 224, reached a low of 52, and has now
January 19, 1988
arisen again. He said the staff has been meeting with the engineer to
discuss the slippage in the time frame.
35.1 Pennington reported last night there was another overflow in the new sewer
lines which feed into the plant. He said City staff and OMI staff were
notified and will meet with engineers, CH2M Hill and McClelland, to try and
come to an understanding as to why the overflows continue to happen.
Pennington announced the Board would discuss the status of the solid waste
incinerator project at a later date, particularly on the question of whether
an election will be called. He did report that Coopers and Lybrand should
issue a draft this week of their report on the project.
35.2 Pennington said a lot of misinformation went out the week of the snow storm,
and hopefully in the future the staff will be able to do a better job of
providing public information. He reported the staff was on the street with
trucks, chat, gravel and rolling equipment from the moment the snow began.
He estimated over $30,000 was expended on the snow removal program,
including over 512 hours of labor. He noted the crews worked on a 24-hour
basis and did not stop until streets were cleared. He said when it was
discovered the City did not have enough equipment, the staff was authorized
to lease equipment, but found most of the equipment available was already
under contract to other communities which have no grading equipment. He
said this year the City needs to put together proposals for having stand-by
equipment available to Fayetteville.
35.3 Pennington said December was amnesty month and the City received 151
inquiries from people who wanted to take care of their "warrants". Public
Safety Director Coates reported moderate response. Pennington said citizens
are permitted to pay off their fines without additional penalties.
35.4 Pennington said 1987 set a record for the Airport, with 101,592
enplanements, a 22% increase over 1986, and with 97,674 deplanements, for a
total passenger count of 199,266. Pennington noted that Little Rock's
increase was only 7%, Texarkana increased only 2%, and Fort Smith's count
actually decreased.
35.5 Dennis Sandretto reported on behalf of CH2M Hill on the treatment plant
project. He said he disagreed with the amount of work that had been
completed in the contractor's December monthly report. He said, as a result
of snow, there was a period of lower staff level but was back up to 136 last
week. He said the contractor, as a result of the bad weather, has stated
some work has been set back about a week to ten days. He said the
contractor's opinion is that he will not miss the start up date proposed for
Phase 1 and 2, and does not intend to miss the June 1 date in their
contract.
35.6 Sandretto said his firm continues to be concerned about the quality of the
work, because it appeared to him the contractor is making the choice that he
will meet the schedule and the quality of work would not be up to the
original standards they set. He said the contractor says they will not
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January 19, 1988
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decrease the quality of their work, but is assessing what work is needed for
start up and what work can wait until after start up. He said he thought
the contractor would be on the job after June 1 to finish jobs which are
being deferred until after start up. Sandretto said he believed the project
will be meeting "permit" by the Administrative Order date of June 30.
Director Johnson asked what the financial status was of the collection 36:1
system project, and whether it came in over or under budget. Administrative
Services Director Linebaugh said he would report back to the Board with that
information. Sandretto said he thought the construction was about $200,000
under original bid price.
Hess noted the City Manager had .proposed new operating procedures for
responding toproblems at the plant. Pennington said crews which
investigated the situation reported that the pumps were working alright at
the lift station, and that he had no other information beyond that. •
Pennington said a capped manhole overflowed on private property. He said
gases are not supposed to escape from this manhole but they have and no one
understands why this is occurring. Pennington said this has happened three
times since he has been in Fayetteville. He added that the City has not
accepted the system and doesn't recommend the Board do so until this problem
is taken care of.
The Mayor asked the City Manager to explain the "Green Thumb Program"
Pennington said it was a regional program funded by the State and employs a
few individuals in the Parks Program who are elderly and low income.
The Mayor requested the Workers' Compensation report be given from July to
July, because that is the paying period. She asked that, instead of going
from July 1, 1985 to present date, a yearly summary be given because that
is what premiums are based on.
REZONING APPEAL
The Mayor introduced an appeal from a decision of the Planning Commission
regarding denial of Rezoning Petition R87-29, for 0.18 acres south of the
west end of Rutledge Lane, from R-1 "Low Density Residential" to R-2 "Medium
Density Residential." Johnson reported the Planning Commission recommended
denial, by a vote of 5-3. She reported the Planning Consultant originally
recommended against the rezoning but later stated that if the petitioner
offered a Bill of Assurance to extend the water line, including a fire plug,
he would consider supporting a change in zoning to R-2.
City Attorney McCord told the Board the petitioner, Pat Pinnell, submitted a
letter indicating improvements would be constructed pursuant to a Bill of
Assurance guaranteeing construction prior to obtaining a building permit.
McCord said, because only four Directors are present, the ordinance could
not be passed, as the rules require five votes to suspend separate readings
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January 19, 1988
of the ordinance. He advised the Board to leave the appeal on the table
until their next meeting. ,
37.1 The Mayor, with other Directors in agreement, suggested the ordinance be
read for the first time. The City Attorney read the ordinance for the first
time.
37.2 Johnson told the Board that Commissioner Madison has changed her request and
would be on the approval side of this rather than on the denial side.
Marinoni asked if a poll had been made of the entire Planning Commission.
Johnson suggested the Board officially instruct the staff to poll all
commissioners as to their reaction to the offer of a Bill of Assurance,
noting that Director Lancaster had requested this as well.
AIRPORT FLOWAGE FEES
37.3 The Mayor introduced an ordinance amending the City Code to amend flowage
fees charged at the Fayetteville Municipal Airport; left on first reading at
the January 5 meeting.
37.4 The City Attorney advised that, if the rules are not suspended, the
ordinance must be read in full the second time. He told the Board they
could choose to table the ordinance and suspend the rules at the next
meeting.
37.5 It was moved by Martin and seconded by Marinoni, to table the ordinance.
Upon roll call, the motion passed, 4-0, Directors Bumpass, Lancaster and
Kelley being absent.
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HUMANE SOCIETY CONTRACT
The Mayor introduced a resolution authorizing the City to enter into a one-
year employment contract for a full-time kennel master at the City Animal
Shelter for the 1988 year. She said the salary would be $11,552, and
additional funds would be granted to cover Social Security, health insurance
and life insurance, for a total grant in the amount of $13,314.60 from the
Fayetteville Humane Society to the City of Fayetteville.
It was moved by Martin and seconded by Hess to approve the resolution.
Director Martin commented that the City Manager's report indicates the
national adoption rate is 12% compared the Fayetteville's shelter's adoption
rate of 34% in December. Martin congratulated the shelter staff for doing a
super job.
Coates told the Board the City may still be obligated for unemployment
compensation for this position, and will also be obligated to pay workers'
compensation insurance.
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Upon roll call, the motion passed, 4-0.
RESOLUTION NO. 6-88 APPEARS ON PAGE
BOOK
SLUDGE PROJECT WAIVER
The Mayor introduced a request from
Sludge Management System project,
between the City and United Pacific
of liquidated damages.
January 19, 1988
OF ORDINANCE AND RESOLUTION
CH2M Hill, consulting engineer for the
for Board authorization of a compromise
Insurance Company concerning the issue
Dennis Sandretto said construction on the operations building, the fencing,
force mains, valves, andthe underground sprinkler system has essentially
been completed, but the bermuda grass is not in a state where the City can
use the facilities. He said the contract provides for the City to use the
facilities when the contractor reaches substantial completion, thus letting
the contractor off the hook on liquidated damages. - He said the contractor
and bonding company claim they have met substantial completion for the first
phase of the project (everything but the grass stand). He said it was his
firm's contention that, until the grass stand is completed, the City cannot
use the facilities for their intended purpose. He said the reason for
requesting a waiver of some liquidated damages is so the City can make use
of some of the facilities without stating that they are substantially
complete. He recommended the City waive the $300 per day liquidated
damages. He said a suggestion had been made at the Board agenda session
that the money might be put into an interest-bearing account, and if the
contractor and bonding company perform well, at the end of the job the City
might consider waiving the liquidated damages then.
Be said the amount of money left in the job amounts to about $380.,000.. He
said roughly $178,000 has been retained for work not completed, for a total
of about $560,000 not yet paid to the contractor. Hesaid enough money
should be left to complete the job, including liquidated damages the City
would be assessing.
McCord advised the Board the takeover agreement with the bonding company
contains the following provision:
Should the bermuda grass stand established not meet contract
specifications and be accepted by the City before the contract
deadline, the City agrees to place a statutory retainage in escrow
with the interest earned thereon accruing to the surety and the
retainage itself to be used by the City in accordance with the
contract terms. All amounts withheld because the bermuda grass
stand is not sprigged or is not maintained in conformance with the
contract specifications need not be placed in escrow but shall be
used by the City to ensure that the bermuda grass stand meets
contract specifications. The original contract document provides
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January 19, 1988
that the owner should have the right to deduct liquidated damages
from any amount due or that may become due the contractor.
McCord said the City would have sufficient funds through retainage or
withheld contract due amounts to cover the full amount of liquidated and
actual damages through the date indicated. He recommended the Board not
agree to waive liquidated damages at this point, but to comply with the
takeover agreement and determine when the project is finished whether the
performance of the takeover contractor would merit waiving liquidated
damages at that point in time. He said the City would have access to the
site.
39.2 Sandretto said he was referring to a separate interest-bearing account which
would be set up for the $300 per day liquidated damages from October 25 to
the end of the job, which would be separate from the takeover agreement
being referred to by the City Attorney. McCord said he had no problem with
that, but thought the Board should reserve their decision on the waiver to
see how the project develops.
39.3 Sandretto said the surety has made a good faith effort to finish the job in
a timely way and have accomplished that, with the exception of the bermuda
grass. McCord said there is some merit to the surety's position that they
should not have to pay liquidated damages because the City does not need the
grass stand now anyway. He said putting them in an escrow account, whereby
the surety might receive the benefit of the interest upon successful
performance of the contract, would illustrate good faith and would be an
appropriate action.
39.4 Hess said he had a problem with the City relinquishing any of its leverage
it might have in terms of liquidated damages.
39.5 Martin, seconded by Hess, moved that liquidated damages of $300 per day be
placed in an interest bearing account subject to further review. Upon roll
call, the motion passed, 4-0.
ENGINEERING AGREEMENT
39.6 The Mayor introduced a request from CH2M Hill for approval of funding for
additional engineering services due to the delay in the contract completion
date for the Wastewater Treatment Plant. She said the amount of the
increase would be $173,000, and the amount contained in the settlement from
the bonding company is $175,801.88, in reserve to cover the request.
39.7 Dennis Sandretto told the Board he did not expect the contractor would
finish on June 1 as his contract stipulates, and the agreement would cover
engineering to June 30. He said he would be back in May requesting an
additional contract amendment for funds to come out of the liquidated and
actual damages assessed, if the contractor does not finish on time.
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Sanuary,F19, 1988
Director, Martin questioned the basis of the figure, asking Sandretto if he
was projecting man-hours Sandretto 'said yes, based on recent experience
with the effort taken on the job site. He said most of the man hours would
be in management and observation. Martin said what concerned him was the
responsibility CH2M Hill may have had for the delay in the first place. He
said, if there was some shared blame, it seemed to him CH2M Hill was
benefitting from it. Sandretto said his firm was not in any way associated
with the delay and he thought the record would demonstrate that. He said
the principal delay, which he was unaware of at the time, was the financial
difficulties Olson was undergoing.• He said it was not his firm's intent to
benefit from the delay in starting the plant, nor was it ever their intent
to get an extension of an Administrative Order, but has been their intent to
both meet the schedule and see that the quality of the work is satisfactory.
Martin said the delay was still producing more fees for the firm. He asked
if the firm had a role in recommending Olson. Sandretto said at that time
there was no indication Olson was in financial difficulty. The Mayor
remarked that Olson was the low bidder on the project.
A citizen in the audience said the expense would amount to $37,000 per month
for five months for resident observation and engineering services. She
asked how many engineers would be at the site, exactly what they would be
doing, and how much the firm would receive for actual services performed by
the engineers. Sandretto said there are two resident observers on site, one
provided by subconsultant, McClelland Engineers. He said both individuals
have been on the job from the beginning of the project. The citizen asked
how much it would cost the City if this request is approved. Sandretto said
it would not cost the City anything, stating the funds would come from a
settlement with the bonding company as part of the takeover agreement.
`Director Marinoni, seconded by Hess, moved to approve the request. Upon
roll call, the motion passed, 3-1, Director Martin voting in the minority.
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PENSION CHANGE
The Mayor announced that the staff had asked to withdraw the request from,
employees at the Pollution Control Plant for authorization to freezeor
withdraw their contributions to the City Pension Plan, so that they could
participate in the OMI Pension Plan. The Mayor said the request would be
considered at a later date.
OTHER BUSINESS
EMERGENCY PROCEDURES FOR HANDLING STORM FLOW AT TREATMENT PLANT
The Mayor introduced approval of the emergency procedures for handling storm
flow at the wastewater treatment plant. The Mayor noted that three of the
top persons on the call list lived out of town, and she asked if they would
have time to come into town in the case of an emergency. Pennington said if
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there was no response in fifteen minutes, OMI would automatically shut down
the equipment (this being set out in the procedure).
41.1 Pennington said he and OMI are exploring the possibility of a system whereby
the lift stations can be controlled at the plant. Gary Vaughn, speaking on
behalf of OMI, said as a matter of policy OMI has City radios in their
vehicles and can notify central dispatch in the event they have turned off
any pumps.
41.2 Director Marinoni, seconded by Hess, moved approval of the emergency
procedures. Upon roll call, the motion passed, 4-0.
PRATT WOODS POA AGREEMENT
41.3 The Mayor introduced approval of the Pratt Woods property owners association
agreement, developed in order to assure for upkeep of concrete aggregate
streets and unconventional streetlights. The City Attorney told the Board
they had previously approved the developer's request for aggregate streets
and Victorian -style streetlights, conditioned upon the developer
guaranteeing that the property owners would bear any additional cost
associated with those improvements. He said he drafted the agreement before
the Board.
41.4 Director Martin, seconded by Marinoni, moved to authorize the agreement.
41.5 Director Hess noted the agreement has the staff determining whether
maintenance is needed because aggregate streets were installed as opposed to
asphalt or concrete streets. McCord said that provision was drafted in
accordance to the motion approved by the Board. He added that, if the City
does not receive payment for the additional costs incurred, as set out in
the agreement, it will not perform the maintenance. Hess said he thought
there will be some subjectivity involved in making the determination.
McCord said the City will still be in control of the situation.
41.6 Upon roll call, the motion passed, 4-0.
UNSIGHTLY PROPERTY AT 325 ROLLSTON
41.7 The Mayor said she thought it would be appropriate to place the unsightly
property at 325 Rollston on ,the agenda for the next meeting. Other
Directors were in agreement that this be done.
BID WAIVER/GRADER TURNTABLE
41.8 The Mayor introduced a request for a bid waiver for the replacement of a
grader turntable.
41.9 The City Attorney read the ordinance for the first time. The ordinance was
left on its first reading.
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ARTS CENTER COUNCIL MINUTES
January 19, 1988
The Mayor -asked the City Manager to write a letter to the Arts Center
Council to correct items she said were_incorrect in their minutes. She said
it was her understanding that assessors would be appointed at the first
meeting in February. The City Attorney said that could not be done until
.commissioners for the Improvement District file plans and cost estimates.
The Mayor said if that is not done by the February meeting, the City Board
should take some action with the University in setting -a deadline to get
that project moving. She said the other correction is that the City Board
would make an appointment at the next Board meeting for Gilbreath's position
on the Arts Center Council.
AGENDA MEETING SET
The next Board agenda meeting was set for Sunday, 2:00 p.m. on January 24 in
Room 326 of City Hall.
MINUTES
The minutes of the January 5 meeting were approved as distributed.
ADJOURNMENT
The meeting adjourned at about 8:50 p.m.
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