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HomeMy WebLinkAbout1989-04-18 MinutesMINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on Tuesday, April 18, 1989 at 7:30 PM in the Directors' Room of the City Administration Building at 113W Mountain Street, Fayetteville, Arkansas. PRESENT: Asst. Mayor Fred Vorsanger; Directors Paul Marinoni, Jr., Shell Spivey,Michael Green and Ernest Lancaster; City Manager James- Pennington, Asst. City Manager Scott Linebaugh, City Attorney James McCord, Acting City Clerk Kay Nash; members of the staff, press and audience ABSENT: Mayor William Martin and Director Russ Kelley CALL TO ORDER • i N V • Asst. Mayor Vorsanger called the meeting to order with five Directors present. 128.1. The Asst. Mayor welcomed those present and invited everyone to stand and join in the Pledge to the Flag and then requested a moment of respectful silence. REPORT TO THE PUBLIC The City Manager made his monthly report to the public. Pennington stated 128.2 revenues over expenses for this period are $363,113. He said Hal Morton had been hired in the position of Solid Waste Management Administrator and that Scott. Smith was hired in the position of RecyclingCoordinator: ---Pennington reported that in the Public Works Department 209 manholes had been inspected and of those, 189 brick manholes are in need of repair or replacement. He said staff will be approaching the Board at a later date with plans to replace these manholes. MAJOR PROJECTS ARTS CENTER - Pennington stated that demolition on Dickson Street for the Arts 128.3 Center has begun .and staff is very pleased with progress thus far. The a*chitect, he said, has been instructed to redesign certain phases of the project to bring them "down within the cost element." Pennington noted to the Board that the disagreement between the Dickson Street Improvement District and the Citizens Against Unfair Taxation has been resolved and an agreement has been reached between the two parties. He said he did not know all the details of the settlement but informed the Board a press conference is scheduled for next week to apprise the public of the settlement. WASTEWATER TREATMENT PLANT - Pennington said final performance tests are continuing and noted we are in the "finishing up stages" on those particular contract. He stated the herbicide and sludge programs are currently underway. He noted that Collection System Contract "C" is closed out and pointed out that this contract was $132,261 less than the original contract amount. 128.4 • • April 18, 1989 129.1 NORTHWEST ARKANSAS RESOURCE RECOVERY AUTHORITY - Pennington stated there were two items he wished to discuss concerning the Authority. The first being the results of a meeting held in New York with the bond rating agencies. He stated he felt very positive about the meeting with Standard & Poors as well as with Moody's. He said they discussed the City of Fayetteville and its relationship to the Authority and the bonds issued by that organization. He pointed out that the bond raters indicated if the City expects to have rated bonds for the State or national market, there will have to be a solution to the issues surrounding the incinerator project. Pennington reminded the Board that one year and one day after the Board and the Authority voted to disband the incinerator project, the M -K Ferguson contract was closed out and the $79,000 was returned to the Authority and that portion of the project was closed out. Secondly he reminded the Board of the responsibilities of Nickson, Hargraves, Devans and Doyle in their capacity as the City's legal representative for disengagement from the incinerator project. He said they were to serve three specific functions; the first being disengagement from the M -K Ferguson contract, the second being reporting on the financial status of the Authority and the third being presentation of final legal recommendations and alternatives to the City Board. Pennington told the Board that Tom Ingallsby is scheduled to appear before the Board and make a public presentation on May 2nd. He said any legal questions the Board members have should be asked at that time. 129.2 The City Manager read a report prepared by City Attorney McCord regarding the Aero Tech Services settlement. The report stated that on April 4th the Board of Directors approved a settlement of up to $52,428 on the claim of Aero Tech Services, Inc. for breach of its Fixed Base Operator -Lease. - After full payment was made the City received an executed release from Aero Tech. The report further stated a memorandum dated December 21, 1988 had been discovered by Arthur Young during the audit after lease termination which would have prevented the termination from taking place had staff members known of its existence sooner. 129.3 The City Manager's Report to the Public and the report on the Aero Tech settlement are both on file in their entirety and available for inspection in the City Clerk's office. 129.4 Asst. Mayor Vorsanger asked if any of the Board Members had any questions regarding the City Manager's Report. Director Marinoni noted that the Police Chief's report stated there were approximately 890 arrests during the month of March. He questioned how, with this many arrests, the City jail could be "done away with" as has been discussed previously. Pennington stated this is commonly done as it is essentially the County's responsibility to house these prisoners. Pennington pointed out that a final decision on this has not been made by the Board. He further noted that the Police Department is currently attempting to become nationally accredited and one of the recommendations made to them was that they not be a "holding facility." 129.5 Director Spivey questioned where the memo mentioned in the City Attorney's report concerning the Aero Tech settlement was "found". McCord stated he assumed the memo was found at the Aero Tech office as that is where the audit was performed. Spivey further questioned if, had the City Attorney had this information prior to lease termination, would the termination have taken place. McCord answered he would not have recommended termination of the lease April 18, 1989 had he had prior knowledge of the memo. McCord further stated the auditors 130.1 "thought that was a reasonable explanation of what occurred." In answer to further questioning from Spivey, McCord stated that neither the Director of Public Works, the Asst. City Manager, the City Manager, the auditors nor himself had been made aware of the existence of the memo prior to the audit after termination of the lease. 130 Director Green stated he shared Spivey's frustration over the Aero Tech situation and said he felt the major concern at this point was to see thatit doesn't happen again. Green asked Pennington if the staff had any suggestions which would avoid recurrence of such a situation in the future. Pennington stated the staff had already implemented "a number of concrete solid management ideas" which should have been in place before this. He said that staff had implemented a monitoring. system which would monitor all contracts at the Airport since the Airport is a revenue generating facility. He also stated the Interim Public Works Director has been instructed to monitor this situation as closely as possible and make continual reports to the City Manager. Green stated that "if a contract falls within the realm of requiring Board approval, we may also want to consider asking for approval before we terminate a contract." Pennington stated that in the wording of many of the contracts "there really are no safeguards for the City." Spivey questioned who originally drafted the Aero Tech contract. McCord stated he had some input into the drafting of the contract along with Aero Tech's attorneys. Pennington noted to the Board that during the investigation of the Aero Tech situation it was discovered that there was "definite friction" between parties at the Airport. McCord stated, in further response to Spivey's question, that the incident did not occur because of the manner.'in-which the lease was worded. He said the lease provided certain bases for termination by the City including failure to meet airport standards, failure to pay rents due under the lease, and bankruptcy or insolvency of the lessee. Spivey stated he wanted to go on record saying that if a contract requires Board approval, then termination of that contract should have Board approval also. He further stated he felt the Aero Tech situation might not have occurred if the Board had had a chance to analyze it thoroughly before termination. Pennington stated he felt it would be appropriate for the Board to adopt such a policy although there would need to be provisions for emergency situations where the Board can't be assembled immediately. Vorsanger stated that if a meeting had been held with Aero Tech officials prior to termination of the lease it might have been handled in a more efficient and effective way as far as the City was concerned. He further stated he felt the Aero Tech situation was a "policy question" rather than an "operating question" and that all policy questions should go to the Board before any action is taken. Vorsanger requested McCord to draft a resolution to this effect. 130 2 Vorsanger asked if there were any questions or comments from the audience. 130.3 A gentleman in the audience questioned where one could get a copy of the report "A Community Profile" used by Pennington in his presentation to the bond raters in New York. Pennington stated copies were available in the City Manager's office. April 18, 1989 CONSENT AGENDA 131.1 The Asst. Mayor introduced consideration of items which may be approved by motion, or contracts and leases which can be approved by resolution, and which may be grouped together and approved simultaneously under a "Consent Agenda." Vorsanger said any director may request the removal of any item from the Consent Agenda. 131.2 Vorsanger reviewed the items shown as follows: f3}.3 131.4 131.5 131.6 • A. Approval of the minutes of the April 4, 1989 regular Board meeting; B. Award of Bid No. 89-6, for the purchase of two intermediate pick- up trucks for the Shop Division; The City Manager recommends award to the lowest of two bidders, Nelms Chevrolet, bidding a total of $21,783.52. The 1989 budget contains $22,400 to cover the expense. C. Award of Bid No. 89-8, for the purchase of modular cabinets for the Wastewater Treatment Plant; The City bidders, $10,984. Manager recommends award to the lowest of four All Storage Products of Little Rock, bidding $38,500 is budgeted for the expense. D. Award of Bid No. 89-9, for the purchase of one cargo van and one cage unit for the Animal Services Division; The City Manager recommends award of the cargo van to the lowest of two bidders, Nelms Chevrolet, bidding $13,246.73; and award of the cage unit to the only bidder, Animal Care Equipment, biding $4,976, for a total expenditure of $18,222.73. The 1989 budget contains $21,500 to cover the expense. E. Award of Bid No. 89-11, for the purchase of one 4 x 4 full-size vehicle for the Fire Department; The City Manager recommends award to the lowest of two bidders, Jones Olds -GMC -Buick, bidding $16,369. The 1989 budget contains $19,000 to cover the expense. 131.7 F. Approval to extend the City's employee insurance contract with Blue Cross/Blue Shield, for one month; The City Manager recommends approval. The extension would be in effect from April 15 through May 15, 1989, and would allow the staff additional time to evaluate bids recently received for employee insurance. G. (deleted at Board Agenda Session) April 18, 1989 y; A resolution authorizing the Mayor and City Clerk to execute a. .132.1 grant agreement with the Federal Aviation Administration for a Master Plan Update study for the Fayetteville Airport; and approval of a budget adjustment; The City Manager recommends approval of the resolution. The totalgrantwould amount to $61,111. The City's cost is estimated to be 5%, or $3,056. The budget adjustment, in the amount of $61,111, is .requested to be taken from the Airport's Federal Grant Account, where all local share funds were budgeted in a lump sum, before it was decided by the FAA which projects would be funded in 1989. The adjustment will not affect fund balance.. RESOLUTION NO'S.- 35&36-89 APPEAR. ON PAGE OF ORDINANCE AND RESOLUTION BOOK I. A resolution authorizing the Mayor and City Clerk to execute a Modification of Lease Agreement with Lorene O'Donnell, for lease 132.2 of space and operation of the airport restaurant in the Airport Terminal Building; • The agreement was executed in December of 1985 for a term of five years, with the schedule of payments and rate to be re -negotiated annually. The City Manager recommends approval of the modification, which would change the 1988 monthly base rent from $1498.75 (or 8% of all gross sales, whichever is greater) to $1564..70.. (or the following percentages on sales, whichever is greater: • 8% on beverages, 12% on beer and wine, 13% on magazines, 15% on gifts, 15% on miscellaneous and 50% on electronic games). If approved, the change would be retroactive to the renewal date of December 15, 1988. RESOLUTION NO. 3789.APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK A resolution authorizing the Mayor and City Clerk to execute a 132.3 one-year lease agreement with Robert Bianco of Butterfield Trail Village, for advertising display space at the Airport Terminal Building; The City Manager recommends approval, with standard rental rate of $80 per month and a provision for extensions for up to five additional one-year terms. The request from Bianco, for placement of any acrylic brochure holder on the advertising display case, is not recommended at this time. Approval for one central brochure holder at the Airport may be brought before the board at a later date. -RESOLUTION N0. 38-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK K. A resolution authorizing approval of a change order to. a 132.4 construction contract with APAC Arkansas, Inc., and approval of 133.1 April 18, 1989 an amendment to an engineering contract with Grafton and Tull, for improvements to Willow and Spruce Streets under the Community Development Block Grant Program; The City Manager recommends approval of the changes, which were considered necessary by the project engineer and City staff. The combined increase would be $4,475 ($3,980 for construction and $494.80 for engineering), making the total project cost $120,844.58. $173,700 was originally budgeted for the project. RESOLUTION NO. 39-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 133.2 It Was moved by Director Lancaster to approve the Consent Agenda. The motion was seconded by Director Marinoni. Upon roll call the motion passed 5-0 with Directors Martin and Kelley absent. REZONING PETITION R89-11 133.3 Asst. Mayor Vorsanger introduced an ordinance rezoning property as requested in Rezoning Petition R89-11 for a parcel containing 1.85 acres at Melanda West Subdivision, fronting on Velda Court, east of One Mile Road. The petitioners for this rezoning are Norman and Barbara Gabbard who are requesting a zoning change from A-1 Agricultural to R-1 Low Density Residential. 133.4 The Planning Commission, said Vorsanger, recommended approval with a vote of 8-0 at its April 10, 1989 public hearing. 133.5 City Attorney McCord read the ordinance for the first time. Marinoni, seconded by Green, moved that the rules be suspended and the ordinance placed on its second reading. The motion passed 5-0 with Directors Martin and Kelley Absent. 133.6 McCord read the ordinance for the second time. Marinoni, seconded by Green, moved that the rules be further suspended and the ordinance be placed on its third and final reading. The motion passed 5-0 with Directors Martin and Kelley absent. 133.7 McCord read the ordinance for the third time. Lancaster, seconded by Vorsanger, moved the ordinance be passed. The ordinance passed 5-0 with Directors Martin and Kelley absent. 133.8 ORDINANCE NO. 3420 APPEARS ON PAGE SO OF ORDINANCE AND RESOLUTION BOOK XXV R -O -W VACATION Asst. Mayor Vorsanger introduced a request for an ordinance vacating and abandoning a portion of the street right-of-way of Eva Avenue where it ends south of Ora Drive. The vacation is requested by Paul and Louise Kuroda. The City Manager recommends approval of the right-of-way vacation. 1 J `9 April 18, 1989 City Attorney McCord read the ordinance for the first time. Marinoni, 134.1 seconded by Green, moved that the rules be suspended and the ordinance be. placed on its second reading. The motion passed 5-0 with Directors Kelley and Martin absent. McCord read the ordinance for the second' time. Marinoni, seconded by Green, 134.2 moved that the rules be suspended and the ordinance be placed on its third and final reading. The ordinance passed 5-0 With Directors Kelley and Martin absent. McCord read the ordinance for the third time. Upon roll call, the ordinance 134.3 passed, 5-0, Directors Martin and Kelley absent. ORDINANCE NO. 3421 APPEARS ON PAGE SP OF ORDINANCE AND RESOLUTION BOOK X X V RELOCATION REIMBURSEMENT Asst. Mayor Vorsanger introduced consideration of a resolution authorizing execution of an agreement with the Arkansas State Highway Department to allow reimbursement to the City for expenses incurred for city utility relocations at the Cato Springs Road and Hwy. 71 intersection. These relocations are in connection with the construction of new Hwy. 71 from Ft. Smith to Fayetteville and the reimbursement amount is estimated to be $193,440 said Vorsanger. The City Manager recommended approval of the resolution. Pennington said the City is responsible for relocation of any its utilitiesr.located 'in the State's right-of-way under the program He further stated the State is responsible for the expenses of relocating any city utilities located on private land which are required to be moved for State purposes. Marinoni noted that there are five items listed under the program with two of the items involving placing a conduit under the highway to be used for "future extension of utilities." He questioned whether the conduit would be used strictly for city utilities or would other utilities possibly use them. He further questioned if other utility companies do use the conduit, would they help with the expense of placing the conduit. Planning Management Director John Merrell answered that the conduit was for City use only and other utilities would be responsible for their own conduit. Lancaster moved that the resolution be approved Marinoni seconded the motion. Upon roll call, the motion passed 5-0 with Directors Martin and Kelley absent. RESOLUTION NO. 40-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK NO. OTHER BUSINESS PUBLIC WORKS DIRECTOR 134.4 134.5 134.6 Asst. Mayor Vorsanger noted that Public Works Director Mike Batie's last day 134.7 was April 14th and asked Pennington how that position would be covered until a new director is hired and asked what the procedure is to hire a new director. Pennington stated that Asst. Public Works Director Bob Kelly would be filling in on an interim basis until a new director is hired. Pennington April 18, 1989 135.1 further stated the selection process for this position is a nation-wide process and that the position has already been advertised regionally from Dallas to St. Louis. He said the position has also been advertised in professional journals. He stated this will probably net 50-80 applications of which 5-10 will be qualified for the position. 135.2 INFORMATIONAL ITEMS Vorsanger noted that, at all Board meetings, the Directors receive "Informational Items" which are normally not discussed individually at the meetings. He read the Informational Items for the benefit of the viewing audience. UNSIGHTLY PROPERTY/SQUARE 135.3 Lancaster questioned the status of Informational Item G which deals with an unsightly property complaint for property located on the Square across from the Bank of Fayetteville and A. G. Edwards. Planning Management Director Merrell said the building was bought by a group of partners who later ran into financial difficulty and the property was then sold to an individual in Fayetteville. He noted that the City has issued "another violation notice" on this building requesting the owner to bring the building up to code or, at a minimum, to "block out the building" as there are open windows in the building. He said if there are no improvements made to the property in the immediate future the Board will be approached by staff with a request for condemnation. Merrell said the current violation notice expires sometime in the middle of May. Lancaster noted the complaint sajrs:the:property is unsafe as well as unsightly. Pennington concurred. AERO TECH SETTLEMENT 135.4 Lancaster said the Board had allowed staff two days to complete the termination and settle all issues in the Aero Tech settlement. He said he could not find notation of this in the minutes from the April 4, 1989 meeting. McCord said he would request the City Clerk to review the tape of the meeting tq clarify this. He further stated his recollection was that Aero Tech's attorney had indicated that if a complete settlement for all damages claimed was not made within two days, litigation would be pursued. ADJOURNMENT 135.5 With no further questions or comments from the Board or the audience, the meeting was adjourned at 8:45 PM.