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HomeMy WebLinkAbout1988-12-13 Minutesn ?”.1 MINUTES OF A SPECIAL MEETING OF THE CITY BOARD OF DIRECTORS A special meeting of the Fayetteville City Board of Directors was held on Tuesday, December 13, 1988 at 9:40 a.m. in Room 326 of the City Administration Building at 113 West Mountain Street. PRESENT: Mayor Johnson; Directors Lancaster, Martin, Kelley, Marinoni and Hess; City Manager Pennington, Assistant City Manager Linebaugh, Public Works Director Batie, Planning Management Director Merrell, City Clerk McWethy, budget staff, members of the press and audience. Present in the audience were Directors -Elect Mike Green and Fred Vorsanger. ABSENT: Director Bumpass The meeting began with six Directors present. 394.1 INTRODUCTION Assistant City Manager Linebaugh opened the meeting by referring to the budget 394.2 document which had been distributed to the Board. He noted the document contained a budget message from the City Manager, and a net addition of four new positions. He noted the'introductory part of the budget showed a Statement of Percentage Changes, comparing the 1988 budget to the revised expenditures in 1988, and comparing 1988 budget to 1989 budget. He said the budget contained department organization charts, program summaries, goals and objectives for each division, details on important line items, and a personnel schedule showing the number of employees by position and pay grade. He said fund summaries were included in the budget, detailing each fund, fund balances, revenues and expenditures, and explanatory notes on revenue sources. CHARTS AND GRAPHS Linebaugh reviewed the budget summary which had been distributed to the Board, beginning with charts and graphs showing revenues and expenditures. In answer to a question from Director Hess, Linebaugh said the staff was not investigating any alternative methods in 1989 for raising revenues. Linebaugh told the Board revenues for 1989 are proposed to be $77,683,548 and 394.4 expenditures in the 1989 budget are proposed to be $59,497,735. He said the difference was in fund equity and the reason for it was because of bond issues and not spending all .the money in one year. He said the budget projected the entire revenue of the sales tax bond issue in one year, but it will actually be expended over several years. He said what is not expended in 1989 will go into fund balance, and that was the difference between revenue and expenditures. Linebaugh explained there was $31,523,326 in debt service on the sales tax bond 394.5. issue. He said there were two bond issues anticipated - $31 million in sales tax bonds and $11 million in water and sewer bonds. He said a little less than $10 million for the schools will be included in the $31 million. He said the first year the schools will only receive about $500,000. Director -Elect Vorsanger asked why there was such a tremendous increase in the 394.6 Water and Sewer Fund in 1989, when the wastewater treatment plant went on-line in 1988. Linebaugh said one reason was that operating costs have gone up significantly, and depreciation of the sewer plant is just beginning. In answer to a question from Hess, Linebaugh said most of the major funds now have a depreciation, or sinking fund. Vorsanger asked if the City was now funding the depreciation, or whether it was just a book entry. Linebaugh said in most of the funds it was just a book entry. 394.3 December 13, 1988 395.1 In reference to the graph entitled "Bond Indebtedness", Linebaugh told the Board that right now the City has $3.9 million in CEC bonds, $380,000 remaining in Airport revenue bonds, $3.7 million in the Water and Sewer refunding bonds, $15.8 million in Sewer sales tax general obligation bonds, $3.7 million in Arts Center bonds, and $21.8 million in Resource Recovery bonds. He said this year the City would issue $11 million in Water and Sewer and $31 million in Capital improvements bonds. Director Martin expressed surprise that the graph indicated principal and interest to be so close in size. Linebaugh said where the graph shows principal and interest for 1989, this actually depicts the amount it would cost if the City were to pay all the interest on the bonds, over the life of the bonds. He said the chart did now show debt service payments, but showed how much total principal and interest the City would owe. COMBINATION STATEMENTS/FUND SUMMARIES 395.2 Linebaugh reviewed the combined statement of budgeted revenues, expenditures and changes in fund balance for all governmental fund types. He reviewed the combined statement of revenues, expenses and changes in retained earnings/fund balance, for all proprietary fund types and similar trust funds. 395.3 Vorsanger asked why Southwestern Bell's franchise tax to the City was lower than that of the other utility companies (with the exception of Warner Cable). Linebaugh said a set amount, was agreed upon in negotiations between the City and Southwestern Bell. In answer to other questions, Linebaugh explained the payments in lieu of franchise tax shown consisted of money received from Act Nine bond industries which pay their property taxes in this manner. 395.4 Referring to the Animal Shelter Account showing $7,239 of revenues in 1987, Linebaugh explained money was being paid directly to the Humane Society now, so this is not a revenue source in 1988 and 1989. He said in the last two years the City has been paying the same amount for operations, and in addition the Humane Society receives the revenues. He said, in addition, the City is paying $50,000 per year for three years towards a new animal shelter. 395.5 Linebaugh noted that, under Miscellaneous Revenue, transfers from the excess HMR/CEC revenues were $366,500 in 1987, and in 1988 were $358,000. He estimated these to be $345,000 in 1989, although he said this was contingent upon the HMR tax, the amount of turnback received from the State and parking revenues. 395.6 Linebaugh reveiwed the summary of expenditures in the General Fund, noting there to be a 15% increase in personnel, over 1988 actual expenditures. He said there was a 13% increase proposed for materials and supplies, a 19% increase in contract services, an increase of 8% in maintenance, a 10% decrease in transfers, and a 7% decrease in capital outlays. He said the reason for the decrease in transfers was because, until the Board approves a transfer of advertising and promotion funds, that is not included in the budget. He said the reason for the decrease in capital outlays was because of the capital improvement program which is handled in a separate construction fund. 395.7 Vorsanger asked why there was a 19% increase in contract services in the General Fund. He asked what the City was doing with $1,947,702 in that account. Huffaker said funds from 1988 for some equipment for the Police Department were rolled forward because the equipment was ordered late in the year. She said that accounted for $17,900. She said a large part of the figure is internal motor pool charges which the Police Department pays the City Shop. 395.8 Vorsanger asked what it cost the City to televise the Board meetings. Linebaugh said that was a cost of about $10,500 per year. City Manager Pennington told Vorsanger that the City owns all the equipment. 395.9 Linebaugh said about $50,000 of the account is used to pay off legal settlements. 395.10 Linebaugh reviewed the Street Fund, noting there is concern that this Fund is going down. He said in 1987 there was a fund balance of $1,555,000 which at the end of 1988 has dropped to $1,051,000. He said in 1989 this fund drops to $246,000 which the staff feels is the minimum. He said the CIP will be a big • • December 13, 1988 lift to the City. Vorsanger asked Linebaugh to comment on contract services in that area Pennington said the City wants to minimize the amount of road paving being done by the City, and begin doing projects such as street patching, letting contractors handle the large projects. Linebaugh said State turnback is going down. He said in 1987 $150,000 was taken from General Fund and transferred to the Street fund. He said that money is not available anymore, noting this was not done in 1988 and 1989 Reviewing Street Fund expenditures, Linebaugh said personnel services went up 396.; 18%, materials and supplies went down 56%, contract services went up 31%, maintenance went up 5% and capital outlay went down 60%. Vorsanger noted that total expenses were projected at $2.1 million, while projected revenues were $1.3 million. He asked where the difference would come from. Linebaugh said it would come from excess in the fund balance. He said there were a lot of projects in 1988 which were budgeted but were not completed. Director -Elect Green asked if personnel costs would go down since contract services were going up. Public Works Director Batie said personnel will now be freed up to do other projects which will increase services. Green said he was in favor of contracting services but asked, if the City increases contract services but continues to increase our internal personnel costs, when those costs would eventually level out. Pennington said the City would eventually come to a level point but would also be doing things that hadn't been done in the past. Batie remarked that, for example, instead of running a paving crew for eight weeks in the summer, crews will be out doing work that hasn't been done in years. Reviewing the Advertising and Promotion Fund, Linebaugh noted this started in 1988 with a $64,000 fund balance, said he expected revenues and transfers totalling $482,000 and projected expenditures at $643,000, resulting in a $95,000 fund balance "in the hole." He said this is what will happen if we don't give $152,000 to the Advertising and Promotion Commission. He said, otherwise, they will have to cut back on programs. Vorsanger asked what was included in the $100,000 budgeted for public notification. Linebaugh said that covered advertising. He said last year the Commission spent $100,000 and the year prior to that they spent about $60,000. He said last year the Board voted to increase their budget. Kelley asked if the Commission has been able to quantify any results from the increase. Johnson said there has been a positive response to surveys and advertising and the Commission, in the next year, would like to do a different kind of survey, and target specifics. Pennington said Economic Development Coordinator Richard Shewmaker plans to work closely with this program. Johnson said the $100,000 is spent on three categories - tourism, industrial development and convention business. Johnson said the Continuing Education Center is now full almost year-round. °396.] 396.3 Linebaugh, reviewing the Off -Street Parking Fund, said the staff was projecting 396.4 quite of bit of maintenance work to be done on the parking deck. He said we normally receive about $500,000 per year but are now projecting about $65,000 in 1989. Linebaugh said the parking deck is about six years old. Reviewing the Sewer Sales Tax Bond Fund, Linebaugh said the fund balance has 396.5 gone down from $10 million to $8 million because enough sales tax has been gathered to fund this until the payoff date, which is projected to be 1990. Reviewing the capital improvement construction fund, Linebaugh explained revenue of $27,880,000 is estimated for 1988 to fund three years of the CIP. He said f10 300,000 is to be spent in 1989, of which $7.5 million is estimated to come rom the bonds, and $2.7 million is estimated to be paid directly by the sales tax. He said it may be a year before the bonds are issued. In answer to a question from Vorsanger, Pennington said it was true that the City will not be able to issue any new bonds until the incinerator contracts are resolved. Reporter Phyllis Rice asked if it was true that the collection of the new sales tax would not start until the sewer tax stops. Linebaugh projected the new tax to begin in January 1989. Martin asked what happens to the balance in the Sewer Plant Construction Fund when it's finished. Linebaugh said it would go to pay off the bond issue. 396.6 396.7 396.8 397.1 December 13, 1988 In reviewing Water and Sewer construction projects, Vorsanger pointed out the time available to do the projects would be cut down in view of the fact that no new bonds can be issued until the incinerator problem is resolved. Pennington said, with or without the bond issue, the staff will be ready to issue Requests for Proposals from engineers. Vorsanger asked if the Sunrise Mountain water project was included in the budget. Linebaugh said the staff was recommending against that project. 397.2 In reviewing the Arts Center Project Fund, Vorsanger asked what the $122,000 in professional services covered. Linebaugh said this covered architectural services. He said the Arts Center Council spends the money, and the Arts Foundation administers the money. Vorsanger asked if the City was responsible for any of the $209,000 budgeted for administration. Judy Huffaker explained that the $4,745,500 budget on page 548 was the Arts Center Construction Fund, while the budget of $209,500 shown on page 549 is the Arts Center Budget for the Endowment Fund. Linebaugh explained there was an original endowment of $3 million which was shared equally by the City and University. He said the budget on page 549 was funded from interest earned from the endowment. 397.3 In answer to a question from Lancaster regarding the status of the project, Linebaugh said asbestos removal should begin quickly, but demolition is stalled because of the Davis property which is involved in litigation. He said the Arts Center has to decide whether to break the demolition project into two parts or whether to wait for the resolution of the Davis case. Pennington said he is advising the Council to move ahead with the demolition now. 397.4 Reviewing the Airport Fund, Linebaugh said overall fees are planned to be increased in 1989. He said a federal grant of about $554,000 is anticipated in 1989 which was to be received in 1988. He said a replacement fund of $50,000 is being established in 1989. 397.5 Johnson asked if the rate comparison study which the Board approved was ever done. Linebaugh said the study had been done. 397.6 Reviewing Airport expenditures, Linebaugh said personnel was up 5%, materials and supplies were up 12%, contract services were down 4%, maintenance was up 22%, debt service was down 7%, depreciation was up 1%, and total expenditures were up 1%. Linebaugh projected $722,000 in capital expenditures for 1989, approximately a 700% increase, because grant revenues anticipated in 1988 were not received that year. Reviewing CEC and Parking Facility Fund, Linebaugh said he anticipated State Convention Center returns to go from $151,000 in 1987 to $210,000 in 1988, and up to $225,000 in 1989. 397.7 397.8 Reviewing the Water and Sewer Fund expenditures, Linebaugh reported there to be a 18% increase in Personnel, a 56% increase in Materials and Supplies, a 23% increase in Contract Services, a 11% increase in Maintenance, over a 1,000% increase in debt service, and a 300% increase in depreciation, for an overall increase of 281%. 397.9 Reviewing the Sanitation Fund, Linebaugh pointed out this did not include anything on the incinerator or the recycling program. City Manager Pennington said the proposed recycling program was a major policy decision he wished to address as a separate issue. 397.10 Reviewing the Shop Fund, Linebaugh pointed out the City operates with a motor pool and motor pool charges now include replacement costs. Martin asked if the staff felt the Shop was in good shape as compared to a few years ago. Linebaugh said, compared to several years ago, the Shop was "many thousands percent improved". Linebaugh said, although it is more costly to operate the City Shop than it would be to operate a business shop, it should be remembered that the Shop operates on a 24-hour a day basis. Linebaugh said capital expenditures had gone up 65% because we're replacing a lot of old equipment this year. 397.11 Reviewing the Police Pension Fund, Linebaugh said we were working towards increasing the City contribution to the Fund, as discussed earlier in connection December 13, 1988 with an Arthur Young audit. He said the Fund has a large unfunded liability 398.: which looks to be going further and further "in the hole." He said this would continue unless the pattern is changed for contributions to the Fund. He said we had extra money, an additional 3%, which we were planning on contributing on the City side. Vorsanger asked about the $15,000 shown in the budget for investment funds, and 398.: asked who the manager was.. Linebaugh said in 1988 the investment manager was Merrill -Lynch with RNC, and A. G. Edwards. He said the Police Pension Board became very dissatisfied with the job the managers were doing because their fees were higher than average, and because in two years their $1 million investment went down to roughly $800,000. He said they just switched to a different investment manager with monitoring. Linebaugh said he has been very opposed to the way the pension funds have been 398.: handled, commenting that we still have problems on the Fire Pension side. He said the investment managers are not doing the job they are supposed to be doing. He said Merrill Lynch, with RNC, was handling investments for the Fire Pension Fund. Linebaugh said he wanted the Board members to be aware that the City is not raising its contribution to the Fire Pension Fund at this time. He said, hopefully, the staff will bring a request to the Board in 1989 to change that when the management feels the proper job has been done, investment -wise. He said, unlike the Police Pension Board, the Fire Pension Board does not have an investment policy. He said he, the City Attorney, and the State Pension Board, all feel one investment the Fire Pension Board has made is an illegal investment. He said he and Pennington have been working to get the Fire Pension Board to change the way they have been doing things with no success to date. Vorsanger asked if retirement programs were the same for all city employees, including police and fire employees. Linebaugh said police and fire pension plans are dictated by State law. He said there is an "old" police and fire pension plan, and a new "LOPFI" plan. He said the old fire pension plan is run by a Pension Board, with the City Manager and City Clerk serving on that seven - member board. He said the old pension plan pays completely different benefits than those paid by the LOPFI plan, and has different criteria for retiring. He said there is a tremendous discrepancy between the amounts contributed by the City to the two plans. He said there is a tremendous discrepancy between what is contributed by the City to police and fire pension plans and what is contributed to pension plans for other employees. In answer to a question from Vorsanger, Pennington said the police and fire retirement plans were better than the retirement plans for other employees. Vorsanger said he thought this situation ought td be reviewed. Pennington said the City actually has five or six different retirement programs. THE MEETING RECESSED AT 11:50 A.M. AND RECONVENED AT 12:30 P.M. PRESENT: Directors Kelley, Lancaster, Marinoni and Martin ABSENT: Mayor Johnson; Directors Bumpass and Hess 398.4 398.5 HIGHLIGHTS City Manager Pennington presented highlights of 1989 budgeted items. He began 398.6 by reporting the budget included a 5% cost of living increase to the pay matrix. General Administration Budget City Manager Division: Pennington said the professional services account 398.7 includes an additional $2,000 contribution to Partners for Livable Places. He noted the Staff Administrator position approved in 1988 is continued in 1989. December 13, 1988 399.1 City Attorney Division: Pennington said there were to be no material changes at the present time, but said the Board needed to be aware of some discussions he and City Attorney McCord have had over the last few months. He said he was approached by McCord about the possibility of setting up his own private practice but still being retained by the City. Pennington said that was "up in the air" right now. Director Kelleyasked if the City would not have to re -bid for the City Attorney's services if it broke its relationship with the present City Attorney. Pennington said that was possible. 399.2 Municipal Judge Program: Pennington noted the Judge's salary was currently $34,500. He said the budget proposes an increase to $36,425 at the Board's discretion. He said State law allows for a salary range of $30,000 to $50,000. He said a computer terminal for the courtroom is proposed. 399.3 Central Dispatch Program: Pennington recommended the addition of a Dispatcher II position, and fixed assets additions of $34,986. Administrative Services Budget 399.4 Assistant City Manager Program: Pennington said the additional Administrative Intern approved in 1988 is proposed to continue in 1989. 399.5 Personnel Division: Pennington said $35,000 is budgeted for training of supervisors and division heads. He said $3,500 is budgeted for the City Picnic and $10,000 for an Employee Awards program. He said the half-time Personnel Technician in 1988 will be full-time in 1989. 399.6 Accounting and Audit: Linebaugh reported an Accounting Clerk I position has been transferred to the Purchasing Office He said the duties will remain the same while the only change will be in the supervisor of the Clerk. 399.7 Budget and Research Program: Pennington noted the deletion of the Special Projects Officer and the addition of an Assistant Administrative Services Director at the same pay grade. He said the Special Projects Officer has been acting in the capacity of AASD for the last year. He said no salary change was involved. Director Martin asked if the line of command in that department would go through the Assistant rather than through Linebaugh. Linebaugh said the Assistant would handle day to day duties. Martin said he was concerned about the addition of layers of management. Pennington agreed, but commented that this is the way the department has been operating for the past year. 399.8 Utility Billing Program: Pennington reported on personnel changes as a result of a reorganization of the Business Office: Delete Water Service Superintendent Delete Business Office Manager Add Water & Sewer Service Superintendent Add Assistant Office Manager Grade 16 Grade 17 Grade 18 Grade 15 399.9 Linebaugh explained a manager in the meter division couldn't handle everything and, after reviewing the situation it was decided to combine the Business Office and the Meter area together under one supervisor. He said no positions have been added but responsibilities have been changed. 399.10 Kelley asked if new Assistant. reason for the duties the Superintendent would report directly to Linebaugh or to his Linebaugh said she would report directly to him. He said the change in grade is because of the assumption of a lot more 399.11 Internal Auditing Program: Pennington reported the addition work/study student with $2,804 budgeted for the position. 399.12 City Clerk Division: Pennington reported an increase in fixed purchase of a Reader Printer for the Microfiche Operator. of a part-time assets for the v .� December 13, 1988 Purchasing Division: Pennington reported the addition of a Buyer position at 400.1 Grade 14, a transfer from the Accounting Program of an Account Clerk 1, and the addition of a personal computer and accessories. Linebaugh commented that the division has been running under -manned for quite 400.2 a while, and said it was ridiculous to think that one person could handle it all. Data Processing Division: Linebaugh noted professional services for custom programming or programming assistance total $21,000, as well as the addition of $$31,750 in fixed assets. Martin asked what kinds of applications the Cameo software packages spanned. Linebaugh said they were primarily for such areas as purchasing, accounting, personnel, work measurement, and shop inventory. Customer Accounting and Collection Division: Pennington noted capital expenditures of $71,134, for the installation of water meters and the new "touch -read" program Shop Division:. Personnel changes were noted such as the deletion of a half-time Clerk Typist and the addition of a maintenance clerk. Police DepartmentBudget PRESENT: Mayor Johnson; Directors Kelley, Lancaster, Marinoni and Martin ABSENT: Directors Bumpass and Hess Pennington reported that, early in 1988, he had an analysis and review of the department conducted by an individual he considered to have expertise in the area and from that review, some .programs have been proposed for the department to adopt and corrections to be made. He said it was found that the department already had a lot of good things doing for it. He said a request is being made for an additional sergeant position to work in the training and crime prevention areas, and an additional position in the investigative area Martin asked if it was felt there were enough patrol officers on the streets. 400.8 He said he had heard criticisms that we don't have enough of these. Pennington said we were far from being over -staffed, but we are doing a complete revision of all police policies and procedures, and everything is being reorganized. He said the City keeps six patrol cars in operation 24 -hours a day. Pennington reported that as part of our accreditation program one weakness 400.9 (from a liability standpoint) is our Cityail. He said this issue is being studied, along with the possibility using the County Jail. Director Kelley questioned the funding for equipment for a Special Operations 400.11 Team, noting the Board voted against doing this. Pennington said the Board in 1987 voted to start the program but in 1988 it was dropped out of the budget. Pennington recommended the program continue Martin said he recalled the program was dropped to wait for a regional approach. Martin spoke in favor of continuing the program Kelley said he didn t think the City should have the cheapest Special Operations Team, commenting that a SOT not properly equipped and trained could be a greater liability than having no team at all. Vorsanger asked if the staff could get some information to him at a later date 400.1: on what the City is paying for liability insurance. Fire Department Budget Pennington reported the addition of a Clerk Typist in the Fire Chief's office. Noting the increase in contractual services, Vorsanger asked what we contract out in the Fire Department. Chief Jackson said this was a classification for 400.3 400.4 400.5 400.6 400.7 400.1: 400.1: December 13, 1988 401.1 certain budget items such as public notification, uniforms and protective clothing. 401.2 Vorsanger asked if we were involved in the five -county Hazardous Materials team. Pennington said the federal government mandates this program be in the community. He said a regional program will be used in this area. 401.3 Pennington recommended the acquisition of two CPR dummies for cost-effective and health-related reasons. Planning Management Department Budget 401.4 Pennington said the budget included the continuation of the City's contract with the Al Raby Plan Group. Planning Management Director John Merrell noted funding of $75,614 for the new zoning ordinance and other development regulations. He said a majority of those funds are a carryover from the 1988 budget which contained $112,800 for the preparation of the General Land Use Plan. He said that Plan is about 75% complete. 401.5 Merrell said four items are being added to the Raby project - a tree ordinance, a landscaping ordinance, an annexation policy and an illustrated guide to property development. 401.6 Merrell said the staff had just received a preliminary report on the land use plan and expects the "ultimate draft" in January. He said after the staff reviews it, it will go to the Planning Commission and then to the City Board. He said public hearings are required for the adoption of the land use plan. Public Works Department Budget PRESENT: Mayor Johnson; Directors Lancaster, Marinoni and Martin ABSENT: Directors Bumpass, Hess and Kelley 401.7 Batie reported a 57% increase in the Fire Hydrants and Valves Program. He said since OMI is taking over maintenance of the pump station, personnel who were doing periodic maintenance on pump stations will be shifted into the fire hydrant and valve program which has not been done adequately in the past. In answer to a question from Martin, Batie said the City did not have a maintenance program for the major valves. 401.8 Pennington said the budget reflects continuing emphasis on sewer rehabilitation. 401.9 Batie noted the addition of an engineering technician position in the Water and Sewer Administration program, to work on performance standards and scheduling. 401.10 Reporting on the Sanitation Operation and Administration Program, Pennington told the Board he recommended the deletion of the Sanitation Superintendent (osition (Grade 19) and the addition of a Solid Waste Management Administrator Grade 23). He said the Administrator would manage Sanitation, Recycling, Compost and Solid Waste Programs. 401.11 401.12 Pennington reported cut. He said the regular routes. Pennington reported now under contract. the Brush Service Program would be deleted and one laborer service (picking up bundled brush) would be provided on boat dock operations at Lakes Fayetteville and Sequoyah are REGIONAL PLANNING COMMISSION MEMBERSHIP 401.13 In answer to a question from Vorsanger, Pennington said he was not recommending the continuation of funding for Fayetteville's membership in the Northwest Arkansas Regional Planning Commission. He said this decision was a result of staff discussions in which it was concluded it was questionable whether the City 1 December 13, 1988 was getting any benefit from the roughly $27,000 paid annually in membership fees. Pennington said if the Board felt 1t was essential to continue the City's membership, he urged them to consider a drastic reduction in the amount which is being spent. Pennington said the City Planning Department has taken over the service which formerly was .provided by the Regional Planning Commission's Planning Consultant. He said the Police Department has indicated they no longer need the data which they have received from the Commission. He said the City would still have to be involved with the Commission's Transportation Improvement Program Pennington said the Regional, Planning Commission is no longer as strong an entity as it once was. He 'urged that the, City increase its involvement in the Northwest Arkansas Economic Development District, at a cost of $12,000. Martin commented that he has last year and a half. He participates in the district, been representing the City on' the NAEDD for the said every major elected official in the area and hestronglyurged the City participate. • Lancaster, a member of the Regional Planning Commission, said he would not comment because of his membership on that group.,F Director Marinoni asked if the amount that Fayetteville paid in dues to the Regional Planning Commission was negotiable. .Vorsanger said he thought not, that the dues were probably paid on a per capita basis. Johnson said she thought Fayetteville would benefit from an association with the NAEDD, but said if we dropped out of the Regional Planning Commission it would be "the kiss of death" forpthe Commission. She said she thought they still served a useful purpose in reporting and gathering -statistics. Martin added that their statistical data base was outstanding. Johnson pointed out the Commission was participating in the 9-1-1 program She saidshe would favor the City remaining a member for at least another year until we determine whether our Planning Management Department can "take over' and whether we see the usefulness of the NAEDD. Martin suggested the staff could be empowered to negotiate'an arrangement with the Regional Planning Commission He said if we are receiving reduced services that should reduce our contribution. 1 Vorsanger urgedthat the City take a leadership position in the Regional Planning Commission. He said he thought we should remain a member of the Commission, but consider dropping out in the future unless we can use more of their services. He spoke in favor of the City's involvement with the NAEDD. Green cautioned the Board to be careful about the message: we send to our neighboring cities - that we should all be striving for a. regional concept to all our problems. He said it would be a danger sign to the other communities if we drop our membership in the Commission. He said Fayetteville trying to solve problems by itself has gotten it into trouble in the past. Martin said he hoped the staff would bring a recommendation before the Board for an appropriate funding level, and specify what benefits we would receive for our membership. RECYCLING PILOT PROGRAM The remainder of the meeting was conducted without a quorum present. PRESENT: Directors Marinoni, Martin and Lancaster. ABSENT: Mayor Johnson; Directors Bumpass, Hess and. Kelley Batie said .he tried to design a recycling program based on research from across the country, from talking to as many people as possible, and from doing as much methodology research as he could. He said last September he presented a short program to the Board and noted the primary parts to the program were: 402. 402.: 402:: 402.1 402.`_ 402.6 402.7 402.8 402.9 402.11 402.1: 403.1 December 13, 1988 1. Implementation of an effective education program; 2. Implementation of a citizen group or "block leader" program. 3. Implementation of a voluntary recycling program; 4. Pilot Program for curbside recycling; 5. Initial Drop-off Center for Separated Recyclables; 6. Igloo Glass Collection Containers; 7. Composting Area for Leaf and Yard Waste; and 8. Hold an annual Spring Household Chemicals Collection Day 403.2 Batie reported that bids are being containers, and on a collection truck. the pilot program will cost about $153 sought on curbside boxes, on igloo He said the items needed to implement ,000. 403.3 During 1989, Batie said the program will a and from about 1200 houses to 6000 houses, with a maintenance budget of about $166,000. 403.4 Batie estimated about $3 million would be needed to get the program started over a five year period. He said about $1.5 million was proposed as a ball park figure for 1989, but Batie said he wanted to wait until a report is received from Franklin and Associates (consultant for the NAEDD) regarding a regional program. Batie asked that the curbside program, the igloo program, and the drop off center program be implemented first. 403.5 Vorsanger said he thought the Board should take the lead and participate with the rest of Northwest Arkansas, and not try to go it alone on a recycling program Vorsanger said he thought in the meantime we should try the pilot program 403.6 Green said he didn't think the City should spend a lot of money on something that may not fit into a regional plan. He said the City could, however, get people used to source separation. He said this could be done inexpensively and with education and modification of the City's rate structure to encourage people. 403.7 Martin asked how quickly the pilot program could get started. Batie said he would have figures to bring before the Board in early January for the purchase of equipment. 403.8 In answer to a question from Marinoni, Batie said a Springdale dealer has agreed to take all the glass, aluminum and paper that can be collected. He said, although the City won't make any money, it will reduce volume in the landfill. 403.9 Green asked what the chances were of trying to modify our rate structure to add incentives for separation. Batie said rate reductions have been used in some towns to encourage people to recycle, and rate penalties have been used for people who don't recycle. Green said our entire sanitation rate structure seemed inequitable, and he suggested that could be studied with cost of service. Batie said the City will get to the point soon where we will not be able to afford to pick up trash from back yards, and will have to go entirely to curbside pickup. Martin said he thought it would be even better if the City could provide an incentive for people to participate in the pilot program 403.10 Pennington said the pilot program budget would be considered separately from the City budget. ADVERTISING & PROMOTION FUNDING 403.11 Linebaugh asked if the Board wished to fund $100,000 in advertising as recommended by the Advertising and Promotion Commission. Director Martin remarked that we now will have the Advertising and Promotion Commission, the Chamber of Commerce, and the Economic Development Director promoting the City. He asked if the advertising and promotion budget might be integrated into the economic development budget. Linebaugh said the Chamber program and the Advertising & Promotion program are already integrated in a joint effort. Pennington said Shewmaker would now be working with that group. 403.12 r Vqu4 December 13, 1988 In answer to a question from Vorsanger, Linebaugh said the three City Directors now serving on the Commission are Johnson, Bumpass and Hess, with three new Directors to be serving on the group in 1989. Green spoke in favor of the funding, commenting that the convention and tourism business in Fayetteville is one of our greatest, cleahest industries. He said it added to our sales tax revenues. Martin said, with three new members to be appointed to the commission, if this Board approves the funding, it should be contingent upon a recommendation from the three new members of the Commission. Vorsanger remarked that, if the Board approves the funding, it in essence loses control of how it is spent. He said he understood there was flack in the committee now over funding the Music Festival. He suggested the Board approve funding in a "contingency" fashion, and then ask our representatives on the Commission to meet with the Board and tell"them how the Board proposes the,money be spent. Linebaugh said the problem in delaying action is that advertising arrangements have already been made for which funding is necessary OTHER BUSINESS 4 The City Manager asked the Board to meet in special session prior to their agenda meeting on Wednesday, December .14, to take action on the budget. Following discussion, it was decided to wait to vote on the budget until the next regular Board meeting on December 20. Green said he had received several questions about the 6/10% increase in,the Parks budget, compared to a 23% increase,in General Administration, and a 16% increase in other areas. Pennington said he:wanted to discuss this in 1989 with the Board, noting that the City does not have a Parks Plan.' Linebaugh said the Parks Board had ignored the fact that the operations side of that budget has increased tremendously. It said it was costing more and more to run the parks. Vorsanger asked if, after the first of the'year, he could have a list of the salaries of the department directors, a copy ofr the pay plan, and .some suggestions from the staff about where the Pay Plan ought to be heading,. what salaries ought to be compared to what they are in other cities, and what can .be done to .improve the fringe benefits. Pennington said he had that information and it is available to everyone, but the problem is the City hasn't updated its Pay Plan in five'years. He said in January or February the Board would receive a complete revision of the City Personnel Policy. He said the staff had been discussing a benefit package for employees. ADJOURNMENT 404.1 404.2 404.3 404.4 404.5 404.6 404.7 404.8 -There being no further business before the Board, the meeting was adjourned at 404.9 3:05 p.m.