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HomeMy WebLinkAbout1989-01-03 Minutes1 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 3, 1989 at 7:30 p.m. in the Directors' Room of the City Administration Building at 113 West Mountain Street, Fayetteville, Arkansas: PRESENT (for the first part Kelley, Marinoni; Lancaster City Manager Pennington, McCord, City Clerk McWethy; CALL TO ORDER of the meeting): Former Mayor Johnson; Directors and Martin; former Directors Hess and Bumpass; Assistant City Manager Linebaugh, City Attorney members of the staff, press and audience. The meeting was called to order by former Mayor Marilyn Johnson, with Directors Kelley, Marinoni, Lancaster and Martin, and former Directors Hess and Bumpass seated at the table. Johnson remarked that this was the last meeting for Hess, Bumpass and herself, and each of them wished to make a few comments. #' COMMENTS FROM JEREMY HESS • Hess said the last four years had seen a lot of turmoil and change which he said many times was necessary through no fault of anyone or anything, when you find yourself in a situation where.things need to be done. He said he thought the Board had successfully dealt with those things to the best of each of their abilities. He expressed hope that,the new Board would continue to lead the City, commenting that one fear he had was that Fayetteville, rather than assuming a position of leadership it always had in the State, has been content to follow. Hess said he had enjoyed the four years he had' the opportunity to shape the direction of the City and institute a lot of programs. He said he knew the new Board would successfully complete its task, and hoped the citizens would support the new Board as they have supported the old Board.'. He said at some time in the future he hoped to be back. COMMENTS FROM RON BUMPASS P , ;� Bumpass said he had enjoyed his eight years and thanked the citizens for giving him the opportunity to serve. He said it had been both a pleasure and a challenge and he had learned a great deal. He said he thought the City had spent over $300 million in the last eight years. Bumpass remarked that service on the Board is one of the few ways in which you can have a direct impact on the quality of life in the community.. He said, in the theoretical world, the city manager form of government is the one way we learn how to govern ourselves. He said it had its advantages in that you have professional management and expertise to carry on the day-to-day affairs of city government, and gives an opportunity for 1.1 1.2 1.3 1.4 January 3, 1989 2.1 amateurs to have input on the Board. Bumpass said we'd like to think that the _ most efficient way of spending the taxpayers' money is under this system but said he didn't think that had always proven true most recently. He said he thought the biggest drawback to this form of government is that it seems to be unresponsive to the desires of the voting public in many ways. Bumpass challenged the new Directors to continue to listen to the people. Bumpass said he was extremely proud of the City Manager and his staff. 2.2 Bumpass said the saddest times he has' experienced serving on the Board were knowing the city employees and fellow directors who have suffered a personal tragedy or loss in their family. He said, as big as this "city family" is, with 350 employees and a number of Directors, each has been touched by personal sadness and tragedies. 2.3 Bumpass said the funniest thing that ever happened at a city board meeting happened in the old city board room when Paul Noland was Mayor and the "employee of the month" program was in operation. Bumpass said that month the employee of the month was "Sampson", the city's first canine corps of the Police Department. He said after the Mayor presented the award to Sampson's handler, Charles Johnson, he said "let's all give Sampson a hand." Bumpass said there was a large audience that night which began to clap and the dog thought there were gunshots going off and immediately turned and growled and literally scared everybody to death. 2.4 Bumpass presented some challenges to the continuing Directors and the new Directors. He said "we've got to clean up the incinerator situation and figure out a way the citizens can pay for it in a way that's fair to everybody concerned." He said a lot of hard work and expense will be associated with the sewer collection system and odor problems, and this is something that needs to be taken care of. He said he hoped we could follow through with the plans for the Arts Center, but maybe some of the construction aspects of the facility should be re -thought, and specific authority vested in the City Manager to control the construction timeline, rather than management by committees which have been involved. 2.5 Bumpass said he thought the people deserved, as an alternative to some of the capital improvements program, a staff -generated development plan for Gulley Park. He said a five-year plan would be well-received, remarking that he heard a lot of dismay about a twenty-year plan to get the park developed. He suggested $1- $1.5 million might be spent to make it a first class park. Bumpass said he hoped, in a cooperative effort with the Fayetteville Schools, a lot of the school facilities such as gymnasiums, tracks and ballfields could be open to the public year-round. 2.6 Speaking about the cable system, Bumpass urged the Board and staff to study the situation and make the best proposal they can to the public for solving the problem. He said the high percentage of public buildings and residences which use the cable system really make it a necessity. Bumpass said part of the role of city government is to provide for necessities that citizens want. Bumpass said a challenge which was made to him eight years ago was "to spend the January 3, 1989 taxpayers money as if it were your own." He said sometimes city government tends 3.1 to whittle away money when what people really want is for the city to assure itself it is getting value for its money. Bumpass said he enjoyed serving, noted the Directors have had their disagreements 3.2 in the past, and said it was difficult to remember that each director represents a constituency. Bumpass thanked the taxpayers and said "I hope to see you soon and for a long, long time." COMMENTS FROM MARILYN JOHNSON Johnson said the greatest accomplishment she could think of in the six years she 3.3 served on the Board was that finally we had completed the sewage treatment plant and, for the first time in the State of Arkansas, that plant was paid for as quickly as possible. She said the city had "the go-ahead" to pump the 5-5-2 effluent to Mud Creek and to the White River, commenting that the city had weathered a long line of administrative appeals. She said she thought this Board had done a considerable amount to make sure that the quality of water in the White River and the Illinois River is protected, because of stringent limits the city is meeting. She said another thing she thought was the greatest accomplishment was the 3.4 renovation of City Hall. She said when she first came on the Board the room they met in could only hold about twenty people and the meetings were not televised. She said _she thought live television coverage of the meetings has done a lot to enlighten the voters of Fayetteville as to exactly what's happening with city government and the process. Johnson mentioned the renovation of the Police Department and the building of interim City Hall which was later turned over to a shop and police facility, and the renovation of the swimming pool at Wilson Park. Johnson talked about the community development block grant funds which built a Head Start facility, a Children's House facility, funded the purchase of land at Walker Park North, and Charles Finger park, and which were used to upgrade streets, sidewalks, and curbs and gutters in many parts of town. • Johnson said when she began serving this has grown to five commuter airline fact that enplanements at the airport said the Board had made commitments° to hangar facilities, a fuel farm, and the 7 on the Board there were two airlines, s. She said she was very proud of were up to around 120,000 per year, serve the airlines as well, and to remodeling of the air museum 3.5 and 3.6 the and new Johnson said in her last two _years, as Mayor, the city has seen more turmoil, problems and controversy, but also more successes than Fayetteville has seen for a long time. Johnson said she thought sometimes that quickness of change is difficult for citizens, but certain things probably had to be done. Johnson mentioned the General Land Use Plan was about complete, the City had developed a mission statement, and the staff has developed goals and objectives. She said r 3.7 January 3, 1989 4.1 the new City Manager had brought organizational changes which have been stressful for the staff but in the long run are needed changes. Johnson said it had been a pleasure to head the search for the new City Manager and said the City can be proud of him and of the job he is doing. 4.2 Johnson said the reauthorization of the one -cent city sales tax, including the schools as part of that, is an innovative change that the city needed. She said this will take care of infrastructure problems throughout the next five years. Johnson said she believed economic development was the way for the city to go to increase the tax base so that the citizens can have increased municipal services and won't have to bear the major part of those costs. 4.3 Johnson said service on the City Board can be a very frustrating experience or a very rewarding experience - she said it was a 24 -hour -a -day, seven -day -a -week job. She said it had been a pleasure for her to serve on the City Board. She said she began this year having lunch with two international students every month and encouraged the Board to continue that practice or something similar to that, in trying to develop a cohesiveness with the University, as well as with the Chamber of Commerce. 4.4 Johnson said, with the Santa Fe Seatbelt Challenge, seatbelt participation has been encouraged and is still going on, with a citizen committee in force. She encouraged this to continue with the new Board. 4.5 Johnson said that "Partners for Livable Places" is a tremendous opportunity for citizens to develop what they want Fayetteville to be. She encouraged anyone to contact the City Manager to become a member. 4.6 Johnson said in the last six years she had learned a lot but had learned, most of all, how to brag about Fayetteville. She said the community had a tremendous amount to offer and she was pleased to have played a part in that. RECESS 4.7 The meeting was recessed at about 7:55 p.m. and reconvened at about 8:00 p.m. PRESENT: Directors Lancaster, Martin, Kelley, Marinoni, Spivey, Vorsanger and Green; City Manager Pennington, Assistant City Manager Linebaugh, City Attorney McCord, City Clerk McWethy; members of the staff, press and audience. SWEARING-IN 4.8 Municipal Judge Charles Williams asked newly Directors Shell Spivey, Fred Vorsanger and Mike Green to stand and raise their right hands, and he administered the Oaths of Office to each new Director. 1 1 January 3, 1989 ROLL CALL The roll was called by the City Clerk, with all seven directors being present. 5.1 ELECTION OF MAYOR The City Attorney declared nominations were open for.the position of Mayor. 5.2 Director Russ Kelley, seconded by Lancaster, nominated Director Bill Martin for Mayor. There being no other nominations, the City Attorney asked for a motion that Martin be elected Mayor by acclamation. It was so moved by Marinoni and seconded by Vorsanger. Upon roll call, the motion passed, 7-0. 5.3 5.4 Martin thanked the Board for their confidence and said he would do his best to 5.5 justify it. ELECTION OF ASSISTANT MAYOR Mayor Martin declared that nominations were in order for the position of 5.6 Assistant Mayor. Director Lancaster, seconded by Marinoni, nominated Director Vorsanger for Assistant Mayor. There being no other nominations, Mayor Martin asked for a motion to elect Vorsanger by acclamation. It was so moved by Kelley and seconded by Lancaster. Upon roll call, the motion passed, 7-0.' RECESS 5.7 5.8 The meeting was recessed from about 8:02 p.m. to about 8:05 p.m. 5.9 PRESENTATIONS TO OUTGOING DIRECTORS Mayor Martin asked Jeremy Hess to step to the podiumr and presented him with a 5.1C plaque on behalf of the City Board, City Administration and citizens, in appreciation for service as a Board member from January 8, 1985 to January 3, 1989. Ron Bumpass was presented with a plaque on the same behalf for service as a Board member from January 6, 1981 to January 3, 1989. Marilyn Johnson was presented with a plaque on the' same behalf for service as a Board member from 6.1 August 17, 1982 to January 3, as Mayor from January 6, 1987 PUBLIC PARTICIPATION January 3, 1989 1989, and in special thanks for outstanding service to January 3, 1989. 6.2 Mayor Martin recognized members of the public watching the proceedings on television as well as those present in the audience. Martin said every member of the audience would be given an opportunity to speak on each item which comes before the Board. He asked that comments be concise and not be repetitive, that citizens address the Board as a whole, and that all questions to Board members or City officials be directed through the presiding officer. He said any member of the public who wishes to address the Board on an item not on the agenda would have an opportunity to do so under "Other Business." Martin respectfully requested the public, to the extent possible, advise the City Manager of items they would like the Board to consider, so that the Board can develop the information at its agenda meeting each Wednesday preceding regular Board meetings. 6.3 RULES OF ORDER & PROCEDURE Martin introduced adoption of the City Board's "Rules of Order and Procedure". He explained these were generally developed guidelines to govern the conduct of City Board meetings, and the relationship between the Board and City Manager. He said the Rules were customarily adopted as each new City Board initiates its term. 6.4 Martin explained the Board had been presented with a proposed revision to the section on selection of citizen committee members. Martin asked for a motion to adopt the proposed Rules of Order and Procedure presented in the agenda. It was so moved by Lancaster and seconded by Marinoni. 6.5 Green said he had received comments from various citizens in regard to the term of the Mayor's office. He said during his campaign he suggested the term be limited to one year, and that consecutive terms not be held. Green proposed the change be made either as part of the Rules, or the adoption of a future ordinance. He said his understanding of the statutes is that a city can change the term of office of Mayor to one year, but cannot prohibit any Director from serving more than one term. He said the prohibition of consecutive terms would prevent a Director from serving more than one term during the normal four-year term on the Board. 6.6 The City Attorney advised that an ordinance would have to be adopted if the Board wished to accept the suggestion to limit the term to one year, because the statute provides for a two-year term. 6.7 Green moved the adoption of such an ordinance. There was no second to the motion. January 3, 1989 ,.,+ Upon roll call, Director Lancaster's motion passed, 7-0. Martin commented that, in error; he neglected to allow public input on the Rules. He invited the public to make comments, noting At was not too late for the Board to reconsider the matter. Bill Stiles, resident of 304 W. Meadow, said there seemed to be an awful lot of business conducted at agenda sessions (held on Wednesdays preceding regular Board meetings) which he thought should be made public. He asked if the actions taken last Wednesday to purchase property on Dickson Street for the Library were done in a Special Board meeting, and whether the meeting had been published in the paper: The Mayor said it was a .special meeting and had been published in the newspaper. Lancaster commented that the agenda meeting is for the purpose of discussing a proposed agenda for the next Board meeting, and no voting takes place on the business to be considered on the agenda. Martin said if the Board, in the past, has strayed from its rule of not making decisions at agenda meetings, the Board will do its best to make sure this does not happen in the future. Stiles pointed out that, if anything happens at an agenda meeting, citizens ought to be able to have input, because these meetings are not televised, sometimes the press is not present, and working citizens cannot attend because they are held during the day. Stiles said sometimes things. are discussed at agenda meetings other than just agenda items. 7-.•1 7.2 7.3 7.4 7.5 7.6 Kelley said the agenda meetings are primarily to allow the Directors to be sure 7.7 they have enough information in order to make decisions on the following Tuesday. He said if discussions have gotten out of hand, the Board as a whole apologizes for that. He said it was not the Board's intent to make decisions at those meetings. Cyrus Young, resident of 210 N. Locust, said although the Board does not vote at 7.8 the agenda sessions, they form opinions without a balanced view of the issue, since the public may not be present. He said one solution to that would be to hold the sessions in the evening. Young said he had proposed changes to the Board's Rules, and he summarized these 7.9 [Clerk's Note: Mr. Young's proposal, because of its length, is not included in these minutes but is on file in the City Clerk's Office, as well as having been distributed to each Board member.] There being no motions to adopt any of the proposed changes, Martin thanked the 7.1( public for their comments and stated the Board would at least consider the ideas being suggested, even though they were not formally adopted. 8.1 January 3, 1989 BOARD NOMINATING COMMITTEE Mayor Martin introduced consideration of adjustments in the membership of the Board Nominating Committee and Advertising and Promotion Commission. Martin noted the Mayor had the prerogative to appoint members to the Nominating Committee and Advertising and Promotion Committee. 8.2 Martin reappointed Director Kelley as Chairman of the Nominating Committee, and appointed Directors Marinoni and Spivey to serve as well. 8.3 Martin appointed Directors Green and Vorsanger to the Advertising and Promotion Commission, noting that legislation provides for the Mayor to be a standing member of the commission. Martin said because of the vital relationship of the City's Airport to that commission, and because of Director Lancaster's knowledge of Airport matters, he would appoint Director Lancaster, to the extent possible, as a proxy and stand-in representative on the commission. 8.4 The City Attorney recommended the appointment be confirmed by motion. It was so moved by Kelley and seconded by Marinoni, that the appointments be ratified. Upon roll call, the motion passed, 7-0. CONSENT AGENDA 8.5 Martin introduced consideration of items which may be approved by motion, or contracts and leases which can be approved by resolution, and which were grouped together and approved simultaneously under a "consent agenda." 8.6 The items in the "consent agenda" included: 8.7 A. Minutes of the December 20, 1988 regular Board meeting; 8.8 B. Change order No. 2 to a contract with J. D. Sweetser, Inc , for water line replacements on Company St./Ed Edwards Rd./Dead Horse Mt. Rd./Gregg Ave./Sutton St.; and a request for a budget adjustment for $4,376. Martin said these were to repair breaks which occurred because of a broken water main; RESOLUTION NO. 1-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 8.9 C. A resolution naming County Road 667 as West Tackett Drive, tabled from December 6. Martin said this change was requested as a result of an annexation of the road into the City in 1982. RESOLUTION NO. 2-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 8.10 There being no objections to any item, it was moved by Marinoni and seconded by Kelley to approve the consent agenda. Upon roll call, the motion passed, 7-0. q 'January -3, 1989 RECYCLING PILOT PROGRAM BUDGET "c Martin introduced a resolution approving the 1989 Recycling Pilot Program Budget 9.1. for the City of Fayetteville. ""+'' ' f Public Works Director Mike Batie said a preliminary program was presented to the 9.2 Board last September which was to have involved an educational program preceding a voluntary recycling program, as well as a new drop-off center for separation of recyclables, with igloo glass containers to be deposited in grocery store and shopping center parking lots for individuals not in the pilot program He said they had already begun a Christmas tree recycling program and a composting area for leaf and yard waste. He said there would be an annual Spring household chemicals collection day. Public Works Director Mike Batie reported on the Operations and Management 9.3 portion of the budget which he said would fund one Recycling Coordinator, one half-time Secretary, one Maintenance Worker III and one Maintenance Worker I, for a total of 3 1/2 employees in 1989, at a cost of approximately $166,000. Addressing capital expenditures, Batie said the program would start with 1,200 9.4 houses and hoped to reach 6,000 by the end of the year, a recycling truck, and igloo containers, for a total cost of $373,900. Batie estimated a $150,000 expenditure for land, but stated he expected and hoped to have "a land swap" with city land, thus avoiding the $150,000 expenditure 9.5 Batie said the total budget amounted to $536,000, but pointed out he hoped to 9.6 reduce that amount by $150,000. He said that would bring the total for the 1989 pilot program recycling budget to about $186,000. Martin asked for a motion to approve the budget. It was so moved by Mike Green 9.7 and seconded that the budget as described be approved. Green said he was pleased to see the City heading in this direction, remarking 9.8 that after the defeat of the incinerator it seemed there were no other solutions available. He said he hoped the City would work very closely with the other communities in the Northwest Arkansas Economic Development District, so our efforts are in harmony with the other parts of the region. Director Lancaster asked Batie from what department the city hoped to trade land. Batie said the city would try to get ten acres of land in the industrial area, and hoped there was some surplus city land which could be traded. Lancaster asked if the land which might be swapped was already in the water and sewer department. Batie said it would have to be other land, commenting that at this time the city did not plan on using any water and sewer land. Director Vorsanger asked if these funds were included in the 1989 budget. Batie said they were not, but were being brought before the Board as a separate item. He said, however, that $1.5 million is being held in the capital improvements program until results are obtained from the Franklin & Associates study for the 9.9 9.1C January 3, 1989 10.1 nine -county area. Batie said the funds being requested for the pilot program are over and above next year's budget. 10.2 Director Spivey asked how many volunteers were still needed. Batie said they hoped to find 35-40 volunteers and have found about 18 so far. He said in about two weeks the first organizational meeting of block leaders will take place. 10.3 In answer to a question from the Mayor, Batie said the total budget amounted to $537,000, including the $150,000. 10.4 Vorsanger asked where the money would come from. City Manager Pennington said the proposed funding would come from the Sanitation Fund. He said since the issue was very new the staff felt it should wait until the new Board was seated to make them cognizant of the program, since it was going to be very expensive. He said the idea was to explain to the Board and the public that recycling is not going to be an inexpensive proposition. He said the budget was proposed separately in order to focus attention on it. 10,5 Martin asked, if the budget were not approved, if the Sanitation Fund would be greater by $537,000. Pennington said a rate increase would be required in the next few months. He reminded the Board that a full-scale program, as opposed to a pilot program, would greatly exceed the budget before the Board. 10.6 Marinoni asked for projected income from the program. Batie said he could not give the Board a good figure at this time, but estimated probably 20-25%. Marinoni said he didn't think any of the Board expected the program to pay its own way. 10.7 Vorsanger said he was not against recycling, but his point was everyone ought to be informed that it is going to cost between $300,000 and $500,000, and the money will be coming from increased sanitation rates to the citizens. He asked what the cost would be for a city-wide program. Batie said that was hard to say right now, be he could get a figure on that. He said it would exceed $1.5 million. 10.8 Green said the recycling program would be a positive step, because as costs for landfilling escalate, the city's costs for that service will go down, and hauling costs would be less. He said the city may find that it will be beneficial to change its sanitation rate structure, which he said he didn't think was fair. Green said, with the recycling program, he didn't think we could maintain the same rate structure we have had in the past. 10.9 Mayor Martin asked if anyone in the audience wished to address the Board. 10.10 Fran Alexander asked ifthere were funds allocated in the budget for an educational program Batie said there were no funds specifically allocated for education, but there was money for "site contingency" which may be able to be used for education. He said his instructions were to try to keep the program as low-cost as possible. • iJanuary 3, 1989 Alexander said the proposal put out last fall included the implementation of an 11.] effective education program, which was to begin in October of 1988. She said there had been one ad in the paper and thedelineation of recycling districts has been established. Alexander brought out models of a cart and horse, and said Fayetteville was getting its horse behind its cart._ She said until the city understands that you.have to educate people and involve them in programs, this is a situation that. is "slated to fail:" • Vickie Kelley, resident of 320 West Mountain, addressed the Board, stating she 11.: worked with Northwest Arkansas Waste Management, the company which presently provides landfill services to the City. She said the commercial sector was being ignored, while households were being burdened with the responsibility to solve the solid waste problem. She said 50% of the waste stream coming into the landfill comes from the commercial sector. She said cardboard and computer paper is accessible and guaranteed to be recyclable, and said she could not begin to grasp why this is continually ignored. She said people could have offered different expertise to the city if given the opportunity. Kelley urged the Board to consider other options and other major impact programs which can be added to what is being proposed. Upon roll' call, the motion passed, 7-0. RESOLUTION NO. 3-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK REZONING APPEAL Martin introduced an appeal from a decision of the Planning Commission regarding denial of Rezoning Petition R88-27; tabled on December 20. The Mayor said the petitioner requested this item be tabled. 11.; It was moved by Marinoni and seconded by Kelley to table the item. Upon roll 11.5 call, the motion passed, 7-0. SEWER DISTRICT CHARGES Martin introduced an ordinance setting sewer rates the Wedington Sewer Improvement District; tabled on It was moved by Kelley and seconded by Marinoni table. Upon roll call, the motion passed, 7-0. and deposits for residents of 11.E December 6. to remove the item from the The City Attorney read the ordinance for the first time. Director Marinoni, seconded by Kelley, moved 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 Marinoni, seconded by Lancaster, moved 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. 11.£ 12.1 12.2 January 3, 1989 Director Marinoni said he was a member of the improvement district, but said he didn't feel that disqualified him from voting on it. He said he was originally a director of the district but resigned when he became a member of the City Board. He said the figures the city had in mind before the item was tabled were considerably higher than what most people in Fayetteville were paying. He said, after further study, the staff decided to base the fees on average water consumption for households of different sizes, and now new figures are proposed which are more equitable. Martin asked if members of the audience wished to speak. There being no response, the roll was called on the ordinance which passed, 7-0. ORDINANCE N0. 3398 APPEARS ON PAGE /CU OF ORDINANCE AND RESOLUTION BOOK XX/V INDUSTRIAL DEVELOPMENT BONDS 12.3 Martin opened a public hearing regarding an ordinance authorizing the issuance of $1,200,000 in industrial development revenue bonds to Specialty Fastening Systems, Inc., to finance a manufacturing facility to be located at 1501 Armstrong Avenue; authorizing a trust indenture securing the bonds; authorizing a lease and agreement between the City and Specialty Fastening Systems; authorizing the sale of the bonds; and authorizing an Agreement For Payment in Lieu of Taxes. 12.4 Al Vick, resident of 213 S. Block, asked if anyone could describe the industrial process which would be used, what type of chemicals would be used, how the chemicals would be disposed of, and how this will affect the air and water quality. Martin responded by stating those questions were heard from Vick at a previous meeting and that he recalled there was discussion of the city's industrial pretreatment process, and that Vick had been referred to material in the City Manager's Office. Vick said, although he was directed there, neither the City Manager's Office nor the Chamber of Commerce had any answers at the time. He asked if anyone had any additional information. Martin asked what Vick's basic concern was. Vick said chemical disposal was his concern. Martin asked Vick if he was persuaded that the city's industrial pretreatment process would not detect and preclude the inappropriate disposal of materials. Vick said he had a few doubts because, if all the processes were working well, he didn't see why we would be needing to put effluent in a new river right now. 12.5 Mark Oletti, resident of 2630 Golden Oaks, asked if information had been made available on whether the company "demonstrates in writing such financial and organizational capability that there is no risk of default on the bonds." City Attorney McCord said he understood the bonds have been guaranteed by the Arkansas Industrial Development Commission. He said representatives of the company were present and could answer questions. 12.6 Oletti asked whether the company had provided financial information which included projections regarding profitability, and whether it was evaluated by a January 3, 1989 • public accounting firm. Het.asked if there was information regarding the 13.1 company's length and level of business experience. Oletti said he would like to be assured that the people the.: money would be placed with would have the expertise and knowledge of business to "make it go." He said the Board should be aware that there are three similar companies in the`area doing the same business. He said as recently as two years ago a company in a similar business went out of business. He said one of the goals of the .Board should be to spent the taxpayers' money as if it were their own. Tom Leggett, speaking on behalf,of bond counsel, Friday, Eldredge and Clarke in 13.: Little Rock, explained that, as with all other Act 9 bonds, these bonds would not be general obligations of the City in any way, but would be special obligations payable solely from payments made by Specialty Fastening Systems. He said there would be absolutely no taxpayer dollars involved. He said all the financial information about the company was presented to the Arkansas Industrial Development Commission when they made application for guaranty. He said the AIDC voted to approve the guaranty and the bondholders are relying on that guaranty. Leggett said, in order to get tax exempt status of the bonds under Internal Revenue Service regulations, the project must be a manufacturing project. Joe Robson of Fayetteville asked if there was a cap on bonds, and to whom the bonds were available. Leggett said there were various caps under Internal Revenue Service regulations. He said there was a $10 million limit per project. He said there was a $40 million cap nationwide for companies that takes: into account grouping corporations together. He said there was a state -by -state cap that Congress established, and Arkansas has so many dollars available statewide. He said this was administered by the Arkansas Development Finance Authority. He said certain amounts were allocated to agencies, but it's "first-come, first- served" for cities and counties throughout the year. He said, fortunately, Arkansas' cap has not been a problem, with plenty of bond money being available. Tom Willcutt, President of Specialty Fastening Systems, said he didn't think there would be a duplication of services with the company being in the community, because their products are marketed nationwide, with very little going into the Arkansas community. He said it was a new corporation, and the Board of the corporation brings a combined total of 80 years experience. There being no other public comment, the public hearing was closed by the Mayor. The City Attorney read the ordinance for the first time. Director Lancaster, seconded by .Kelly, moved 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 Marinoni, seconded by Kelley, moved 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. 13.: 13.4 13.E 13.E The Mayor asked if the public wished to comment either for or against the 13.; ordinance. There being no response, upon roll call, the ordinance passed, 7-0. January 3, 1989 ORDINANCE NO. 3399 APPEARS ON PAGE V3.1 OF ORDINANCE AND RESOLUTION BOOK Xi/J 14.1 The City Attorney told the Board that bond counsel had requested a separate vote on the emergency clause. It vas so moved by Vorsanger and seconded by Lancaster. CITY MANAGER AUTHORITY 14.2 Martin introduced consideration of an ordinance amending the City Code to increase the purchasing authority of the City Manager; and a resolution authorizing the City Manager to approve line item budget adjustments up to $10,000. 14.3 The City Attorney read the ordinance for the first time, noting that the City Manager had requested an addition to Section 1, to read "provided quotation bids need not be secured for purchases under $500." Director Kelley, seconded by Vorsanger, moved 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. 14.4 Director Marinoni said the Board hadn't had a lot of time to consider the request and hear input from the public. He requested the ordinance stay on its second reading. 14.5 Kelley said it was discussed at the last agenda meeting that the intent was to improve the efficiency of management, and it was agreed there would be a quarterly report made to the Board of all expenditures by the City Manager. Kelley, seconded by Green, moved the rules be further suspended and the ordinance be placed on its third and final reading. Upon roll call, the motion passed, 6- 1, Marinoni voting in the minority. The ordinance was read for the third time. 14.6 The Mayor asked if there was any public comment on the ordinance. There being none, upon roll call, the ordinance passed, 7-0. ORDINANCE NO. 3400 APPEARS ON PAGE Xxiv yY� OF ORDINANCE AND RESOLUTION BOOK 14.7 The Mayor asked for a motion to approve the resolution authorizing the City Manager to approve line item budget adjustments up to $10,000. It was so moved by Vorsanger and seconded by Green. 14.8 Martin remarked that the Board understood these adjustments would involve offsetting adjustments in every case. 14.9 There being no public comment, upon roll call, the motion passed, 7-0. RESOLUTION NO. 4-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK LEGAL SERVICES January 3, 1989 t i 4 , The Mayor noted, in reference to.,the request to retain;outside counsel to assist 15.1 the City in defending a 1awsuit,'_the staff has requested the item be tabled. City Attorney McCord said a complication developed. and the Davis law firm will be unable to assist ih the defense ,of ;the lawsuit. . He said he would have a recommendation at a later date. • Y - ' 4 A a It was moved by Kelley, and seconded b'y Marinoni,- to:table the item. Upon roll 15.2 call, the motion passed, 7-0. 9 1:4 OTHER BUSINESS • SETTLEMENT OFFER/ARTS CENTER PROPERTY The City Attorney asked the Board if they wished to consider a settlement offer 15.3 in the Banks condemnation case, contained in the Board's informational items in the agenda. McCord said his memorandum recommends the settlement offer be accepted, noting the landowners had lowered their offer to $260,000. It was decided that, since some Board members had not realized action was needed 15.4 at this meeting, this request would be placed on thenext agenda. COMMENTS FROM DIRECTOR VORSANGER Director Fred Vorsanger thanked the Directors for his appointment as Assistant Mayor, and recognized his wife, Doreen, Mr. and Mrs. Carl Leffler, and Mr. and Mrs. Keith Newhouse, all present in the audience. • COMMENTS FROM MAYOR MARTIN Mayor Martin thanked the viewers and audience for watching the proceedings, and said the Board appreciates the public comment and input. He said he thought the citizens would find the Board to be extremely open and sensitive to the desires of the public. 15.5 15.E ADJOURNMENT There being no further business before the Board, the meeting was adjourned at 15.3 9:50 p.m.