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HomeMy WebLinkAbout1989-05-16 MinutesMINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on •'Tuesday, May •16, '1989 at 7:30 p.m. in the Directors' ;Room of the City 'lAdministrationBuilding at 113 West'Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor WilliamMartin; Directors Michael Green, Russ Kelley, Ernest Lancaster, Paul Marinoni, Jr., Shell Spivey and Fred Vorsanger; City Manager James Pennington, City Prosecutor Terry Jones, City Clerk Suzanne McWethy; members of the staff, press and audience CALL TO ORDER The meeting was called to order by the Mayor, with seven Directors present. The Mayor asked those present to stand and recite the Pledge of Allegiance, and then asked that a brief moment of respectful silence be observed. . The Mayor welcomed the public watching the meeting on television,e and those 162. present in the audience. He said everyone present would have an opportunity to address the Board on every item under discussion. He asked that those wishing to speak introduce themselves, give their place of residence, keep their comments concise and non -repetitive, and address the entire Board. He said any questions for.the Board or staff should be directed to the Mayor. 162. REPORT TO,PUBLIC 'The City Manager presented a report to the public and Board for the month of 162. - -April. [The report in its entirety is on file in the City Clerk's Office.] ' Pennington reported the City, as of April 30, had revenues over expenses in the 162. amount of $133,478. 4 Reporting on major projects, Pennington said Warner Cable was installing new facilities and testing basic channels, although he said a lot of work remained 'to be done. He noted the first customer was hooked up to the 'new:system a week ago. Reporting on the Arts Center/Dickson Street Improvement District projects, Pennington said demolition was continuing on the site of the center, but had been slowed due to the discovery of tanks under a building on the site.' • 162. 162 Reporting on the Wastewater Treatment Plant project, Pennington said Contract 162 "Cr was completed, the City was ready to deal effectively with the sludge management project, and hoped to obtain agreement with the bonding firm. 163 May 16, 1989 163.1 Pennington reported that at the May 2 Board meeting attorney Tom Ingoldsby presented a report on the legal obligations of the city in connection with the incinerator disengagement. 163.2 Pennington said that today a series of arrests were announced in connection with the City Police Department's drug program. He said the program was working closely with the DEA and the FBI in northwest Arkansas. Pennington reported foot patrols were working on the Square in response to complaints regarding theft of plants and flowers. He reported during April around 36 arrests were made but said the majority of them were alcohol-related. Pennington said the City was pleased to be working with the public schools on a "Drug Abuse Resistance Education" (DARE) program Pennington reported the field training officer program was continuing in the Police Department, where officers act as sponsors and trainers of individuals completing an eight-week basic training academy. 163.3 Pennington reported the Fire Department was continuing with training programs with the schools. He added that the City was contributing funding to a regional Hazardous Materials Response Program 163.4 Pennington said the Central Dispatch unit was developing an automatic response data base including all locations of streets and fire hydrants. 163.5 Reporting on the Public Works Department activities, Pennington said the airport continued an increase in enplanements, with a recent 16.06% increase over enplanements from 1988. 163.6 Pennington reported the Appleby Road street improvement project was completed and open. He reported improvements at the intersection of Township and Old Wire Road were in process, with utility relocations practically complete. 163.7 Pennington called the Board's attention to the City's water system maintenance program, noting that the City had a very solid valve exercising program combined with a fire hydrant testing program He said the City was under an administrative order to make sure we have an ongoing program to deal with sewer infiltration and inflow. He said the City was getting ready to begin the design of over 100 manholes. 163.8 Pennington announced a May 30 workshop for the City Board and Planning Commission in connection with the General Plan. He announced a Board retreat was tentatively scheduled for the morning of June 9. 163.9 Directors Vorsanger and Green both reported having received positive feedback from citizens on the results of the foot patrol on the Square. 163.10 Green noted the City Manager's (written) report indicated a 4.8% employee turnover for the month of April. He commented that this seemed extremely high and, projected over an average, would mean we could have a complete turnover in twenty months. Pennington said in the Finance Department there already has been a 100% turnover within a 16 -18 -month period. He said exit interviews indicate employee dissatisfaction regarding overtime and salaries. 1 164 ' The Mayor asked if the Directors could receive copies of the General Plan Update Well in advahce of the May 30 meeting with the Planning Commission. ' The Mayor said there has been a recurrence, especially in the east part of town, of some odor problems. He said his neighbors report chronic odor problems associated with the sewer treatment 'plant. He said this was unacceptable and asked if we could look back at the contract documents to see if the plant was supposed .to be odor -free. CONSENT AGENDA The 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." The Mayor explained that the Consent Agenda represents items on which there is thought to be unanimous agreement by the Board, but pointed out any Director may request the removal of an item from the Consent Agenda. The Mayor read the items contained in the Consent Agenda, as follows: A. Approval of the minutes of the May 2, 1989 regular Board meeting; 0,1( 164 164 164 B. Consideration of the partial award of Bid #89-12, for the purchase IL¥. of Police uniforms, equipment, weaponsand ammunition on an as -needed basis during. the next 12 months; The City Manager recommends award to the low bidder in every case. It is contemplated that in the next 30-60 days, the Police Chief will have completed his review of all items to be purchased during the year, to verify their suitability, at which time the remainder of the bid will be brought before the Board. The cost to the city (for the entire bid) is estimated to be in the range of $35,000 to $46,000. The budget contains $46,308 to cover the expense. C. A resolution authorizing the Mayor and City Clerk to execute a two- year. lease with Ron Sherwood for rental of storage space in an aircraft hanger at the Fayetteville Airport; Rental rate proposed for the office/storage space available in the T -hanger building is to be $50 per month. The lease contains a provision for extensions for up to three additional one-year terms. Under the terms of the lease, Sherwood would agree to pay for the purchase and installation of an overhead garage door at a total cost of $585, to be credited by the City toward Sherwood's rental obligation, until he is completely reimbursed. The City Manager 'recommends approval of the request. lba May 16, 1989 RESOLUTION 43-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 165.1 D. A resolution authorizing the Mayor and City Clerk to execute a modification to the City's Employee Assistance Program contract with the University of Arkansas Psychological Clinic; 1654 The City Manager recommends approval of the request, which would extend the expiration date of the contract from May 15, 1989 to June 30, 1989. This will allow the City to bid this employee service for the first time in two years. RESOLUTION 44-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK E. A resolution authorizing award of engineering contract to Milholland Engineers, for design of Stubblefield Road improvements, from Old Missouri Road to Harold Street, and associated drainage study of Missouri Greek; The City Manager recommends approval of the resolution. Milholland was one of three engineers submitting proposals through the City's professional contract policy process, and submitted the lowest proposed fee of $32,900. Although the 1989 Capital Improvement Construction Fund budget contains $40,000 for the project, it will be temporarily funded by the Sales Tax Constuction Fund until bonds can be issued for capital improvements. RESOLUTION 45-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK F. A resolution authorizing approval of a change order to an engineering contract with ETC Engineers, Inc., for sewer flow monitoring design and installation services. The contract, which was approved by the Board on April 4, contained a base cost of $47,000 with a not -to -exceed cost of $110,000. The change order would include waterworks telemetry as part of the work, bringing immediate indication of water problems to Central Dispatch for dispatching of appropriate crews. The cost of the change order is $11,639, bringing the total contract to $102,266. The City Manager recommends approval. RESOLUTION 46-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK A motion was made by Director Kelley, seconded by Vorsanger, to approve the Consent Agenda. Upon roll call, the motion passed, 7-0. REZONING/R89=16 May 16, 1989 lbb The Mayor introduced an ordinance rezoning 1.54 acres located at 4907 Huntsville Road, from A-1 "Agricultural" to R-1 "Low Density Residential." He explained the petitioner, Nellie Shofner, was heard by the Planning Commission on May 8, 1989. He said the Planning Management Director made the following recommendation to the Commission: - The surrounding area contains other single family houses and last Fall the City approved an annexation and R-1 rezoning of a large tract for development of a subdivision at the southwest corner of Hunt and Huntsville. Neither the rezoning nor the proposed house are in conflict with any City plans or policies. The staff recommends approval of this ,rezoning. The Mayor reported no public opposition was expressed at the hearing and that a motion to recommend approval passed by a vote of 8-0. - - r The ordinance was read for the first time. Director Marinoni, seconded by Kelley, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed, 7-0. The ordinance was read for the second time. -Director Marinoni, seconded by Lancaster, made a motion to further suspend the rules and place the ordinance on its third and final reading. The ordinance was read for the third time. 166 166 166 The Mayor invited public comment. None being expressed, upon roll call, the 166 ordinance passed, 7-0. _ t ORDINANCE NO. 3426 APPEARS ON PAGE %,, OF ORDINANCE AND RESOLUTION BOOK XXV - REVENUE BONDS/BUTTERFIELD TRAIL VILLAGE The Mayor opened a public hearing regarding an ordinance approving the issuance of revenue bonds by the, Fayetteville Public Facilities Board, to refund outstanding revenue bonds which were issued in 1984 to finance Butterfield Trail Village, and to finance certain costs of Butterfield Trail Village. He explained 'that, in 1984, the'Public Facilities Board issued $28,035,000 in revenue bonds to finance the Butterfield Trail Village Project, a retirement community consisting of 248 residential units and a nursing care center located on Joyce Streetand owned by Butterfield Trail Village, Inc. He said the bonds were special obligations only of the Public Facilities Board, secured by payments to. be made by Butterfield in repayment of the loan, that there was no liability of any kind on the part of the City or its citizens for the repayment of those bonds. The Mayor explained the ordinance would approve the issuance of revenue bonds by theFayettevillePublic Facilities Board to refund the outstanding revenue bonds issued in 1984. 166 166 May 16, 1989 167.1 Steve Gunderson, Fayetteville attorney representing the project, addressed the Board. He explained the plan was to issue 1989 bonds to defease the 1984 bonds. He told the Board construction of the facility was complete in 1986 and the facility was now about 70% occupied. He said it was a non-profit organization managed by a Board, and noted three Board members were present. He said the purpose in defeasing the bonds was to take advantage of a lower interest rate. He also noted the presence of a representatives from the underwriters on the bonds, Stephens, Inc., the presence of bond counsel, and counsel for the underwriters. 167.2 The Mayor asked Gunderson what the City Board's role was in connection with the approval of the ordinance. 167.3 Gunderson explained that, under the Tax Reform Act of 1986, there is a requirement that any revenue bond issue must go before the City Board of a municipality. He said that was the purpose of the public hearing. He said State statutes require an ordinance be brought before the City Board, a resolution be passed by the Public Facilities Board and a public notification must be published in the local newspaper one time 14 days prior to the hearing. He said the notice was published on April 29 and May 1. Gunderson said the City Board's function was to hold a public hearing and examine whether or not the ordinance should pass. He said even after the City Board approves the ordinance, the Public Facilities Board has to approve a resolution to be inserted into the bond issue. 167.4 The Mayor said it seemed that the City Board's function was ministerial and was in a position of passing an ordinance without any due diligence. Gunderson mentioned that neither the City Board nor its members have any liability on the issuance of the bonds, nor do the Facilities Board members. 167.5 167. 6 167.7 The Mayor asked if any members of the public wished to comment. Bob Brandon, resident of Fayetteville, asked how many dollars of new financing were involved. Gunderson said they would not exceed $35 million. He explained the original issue was in excess of $28 million. He said, because the bonds in 1984 were callable at different times and with different interest rates, the amount would be more than $28 million but less than $35 million. Dr. Anthony De Palma asked about the composition and function of the Public Facilities Board. Director Shell Spivey said it was established by the City Board late in 1978, and originally formed to administer the issuance of tax-free municipal revenue bonds for the purpose of establishing a fund from which residential mortgage loans could be made. He said a March 1981 amending ordinance expanded this purpose to include the issuance of bonds for health care facilities. He said there were five members, serving five-year terms, acting under the authority of Act 142 of 1975. He said the group selected its own replacements and its current members were: Bill Conrad, R. Dale Christy, Phil Taylor, Dennis Smith and George Faucette, Jr. 167.8 Joe Robson said he wanted to clarify that Gunderson said the bonds were secured only by the revenues generated at Butterfield Trail, and there is no guarantee that the City is involved. Gunderson said there was no liability on the part 1 May 16,.1989 isa of the City or the Public Facilities Board. Martin added that the public hearing 168 was a.mechanism for bringing the issue to the public's attention. There being no further public comment, -the Mayor closed the public hearing. Director'Marinoni asked if it was possible, in light of a time of declining interest rates, that a request would be made in the future for another bond issue. Gunderson they will be able to issue the 1989 bonds at an interest rate between 9.5% and 10% which he said would have a substantial impact on the savings Butterfield Trail Village will see from the defeasance of the 1984 bonds. He said they would secure the escrow money with government securities. He said the expansion of the dining room would be taken care of by the reissuance of the bonds. The Mayor asked for a synopsis of how the facility was presently doing. Henry Meenen, Chairman of Butterfield Trail Village Board, reported the facility was between 75% and 80% sold, and between 65% and 70% occupied. He encouraged the Directors to visit the facility. He said all services have been operational from the beginning. He said 80% to 90% of the residents are from this area, with the remainder coming from various parts of the United States. The ordinance was read for the first time. Director Vorsanger, seconded by Kelley, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed, 7-0. The ordinance was read for the second time. Director Marinoni, seconded by Vorsanger, made a motion to further suspend the rules and place the ordinance on its third and final reading. The ordinance was read for the third time. 168 168 168 168 There being no further public comments, upon roll call, the ordinance passed, 168 7-0. , ORDINANCE NO. 3427 APPEARS ON PAGE 7y OF ORDINANCE AND RESOLUTION BOOK X X V LEGAL SERVICES The Mayor introduced a request for consideration of a resolution authorizing the 168 City Manager to contract for legal services on an as -needed basis, in connection with the incinerator disengagement project. The Mayor asked. the City Manager for a recommendation. City Manager Pennington told the Board that Tom Ingoldsby, who was lead counsel on the project when he was affiliated. with Nixon, Hargrave, Devans and Doyle, has transferred to another firm - McDermott, Will and Emery. He recommended that because of Ingoldsby's experience and background working with the project, the firm of McDermott, Will and Emery be retained to complete any remaining work. He said the terms.of the agreement would be identical to the those of the agreement with Nixon, Hargrave, Devans and Doyle. It was moved by Kelley and seconded by Marinoni to authorize a transfer of the contract for legal services to McDermott, Will and Emory. 16E 16E May 16, 1989 169.1 The City Manager said that, in addition, a resolution should be approved waiving bidding requirements. 169.2 It was moved by Marinoni and seconded by Martin to approve a resolution authorizing the waiver of requirements for competitive bidding. 169.3 Director Green said he agreed continuity should be maintained but said he had a problem issuing a blank check for services. He asked what kind of cost control there would be relative to specific assignments. Pennington said the original contract with Nixon, Hargrave was essentially classified as an open-ended contract with an estimate that it would cost between $350,000 to $500,000 relative to disengagement, depending on exactly what happened. He said all that would remain for the new firm to do would be the actual close-out of the bond situation. He said, however, there was the potential of litigation, the cost of which he said would have to be determined at the time. He said we were still getting advice and would continue to get advice until the project is closed. He said there was no way he could estimate the cost at this point in time. 169.4 Green said it was frustrating because we had already spent $355,000 and we still weren't disengaged. Pennington said, if and when the Board takes action to pay off the bonds, this could be "a triggering factor." He said the Board's prime involvement with legal counsel in the future would be in the event of litigation. He said, if there is no litigation, there essentially is nothing else for legal counsel to do but give advice the Board may wish to have as they close out the bond issue. He said we were either looking at the possibility of long-term involvement or short-term involvement with legal counsel. Vorsanger said he hoped we could place a cap on the contract, noting the contract could always be extended if needed. He noted the City had already spent $294,000 on the Nixon, Hargrave firm since 1988. Vorsanger commented that was a "hefty" fee in view of the report we got. 169.6 Vorsanger said he thought we should have a "town hall meeting" or a public meeting of the City Board and everyone connected with the bond issue. He said today he received a letter from Williams and Anderson, stating they were "the firm who put us in this thing." Vorsanger read from that letter: "...As I told you, we have been retained by Union National Bank, the trustee on the bonds, to advise them concerning their responsibilities and to assist them in protecting the interest of the bondholders. Since David and I acted as bond counsel while we were at the Wright firm, we feel a similar responsibility." Vorsanger said Jack Williams told him he wanted an opportunity to sit down with the Board and any citizen to discuss the matter. Vorsanger said he still didn't know why FGIC hadn't been asked to come and meet with the Board. He said we had underwriters who ought to be involved in this heavily, mentioning The Rose Law firm and others. 169.5 169.7 Martin said he thought Ingoldsby and his new firm would save the City money, as opposed to the cost of a new attorney. He said he thought it was the right decision but said the public was concerned about it being "carte blanche." He asked about the contracting authority of the City Manager. Pennington said he had authority to approve contracts up to $10,000. Martin suggested a $10,000 cap. 170 May 16, 1989; Kelley said he didn't see this as a complicated issue, other than having monthly 17( monitoring or using the $10,000 cap now in existence. He said he thought the City Manager needed to have the authority to at least be able to call the law firm and secure their counsel. Vorsanger said the money which was spent for legal services, and any additional money to the law firm, cannot be taken out of bond proceeds, but must be paid out of the general budget. He said others who were involved have already been paid for their services and commented that their help in getting us out of this would be at their expense. - 17C Joe Robson, citizen of Fayetteville, commented that this was a large amount of 17C money and said doing away with competitive bidding would be foolish on the part of the Board. He asked the Board to consider setting up an advisory committee of citizens and attorneys that live in the community. He read from the introduction of the Nixon report: "...This report does not consider whether any parties other than the City are legally obligated to pay the debt service on the bonds." Robson said that was a serious shortcoming. He said he thought we could get a local attorney to give a legal opinion and get some answers as to whether or not there is greater liability than suggested. He said a shortcoming of the Nixon report was its answer that "either the City has to pay or the City has to pay." He said on the one hand, the city ratepayers will be paying and, on the other hand, "the City" might mean very different people altogether. He said, if the city ratepayers don't have to pay, potentially that means that other people in the city have to pay, .including people in the Administration and/or others. Robson took issue with the statement made by the City Manager that it was a very 17c complex issue that required nearly 1/3 of a million dollars of general revenues. He said if it gets to be that we are going to disregard the Constitution so that we can maintain a bond rating, he thought we were making another serious mistake. He said while the Nixon firm was taking 14 months to generate a limited opinion that points only to the City of Fayetteville, he was writing a "pro se" lawsuit, noting that he didn't have 15 minutes of legal training. He said he wrote the lawsuit in anticipation of a time when the City Board would pass the debt on to the ratepayers. He said he objected to that very strongly and would file that lawsuit. He said he had "peddled" the lawsuit all over the State and had several law firms who will join it with him. Martin remarked to Robson that he seemed to be saying he was going to sue the 170 City while arguing that the City shouldn't engage legal counsel. Robson said "somebody needs an attorney." He said he objected to the City spending huge amounts of taxpayer money to try to pass the debt on to the citizens. He said citizens were left totally unprotected. Robson said he went over that point with Frank Lyman [member of the Nixon firm] when the City first contracted with the Nixon firm. He said he asked Lyman: "Are you going to protect the citizens of Fayetteville?" and Lyman said: "No. We are here to protect the City Directors. That's what we're charged to do. That's what we're going to do." Robson said Lyman made that absolutely clear to him. Martin said he didn't remember Lyman making that statement and asked if it was made in a public meeting. Robson said he asked it in public, but said Lyman didn't say it as explicitly in public as he did to him (Robson) "in the hall.". 171 171.1 May 16, 1989 Robert Brandon, Fayetteville citizen, said he contacted Tom Ingoldsby earlier in the process asking for access to the records he and his firm would be generating on behalf of the public, and was denied access to the records. He asked if the law firm we hire would represent the public, if the public had the right to know what the attorneys are doing on their behalf. Director Martin said it was his understanding that the City would engage the law firm on behalf of the City of Fayetteville. He said, as he understood the Freedom of Information Act, the public does not have the right to all records of an attorney engaged by a municipality, and there was not a legal obligation to make those records public. He added, however, that we needed to check with the Attorney General or the legislature, stating he assumed the reason was because the information an attorney is developing in defending a City should be kept within that attorney's purview until it needs to be released. Brandon said he thought, if the attorney would represent the City of Fayetteville, he should have the opportunity to know exactly what the attorney is doing. Brandon added that he thought this should be part of any contract. 171.2 Leland Hamilton, resident of Fayetteville, said he thought positive consideration should be given to having a town meeting, where citizens can be afforded the opportunity to discuss these matters, without belaboring the City Board meetings. Martin said he thought that was a splendid suggestion and said he thought we should let the staff, as quickly as possible, come forward with a recommendation, depending on what action is taken later in the meeting regarding a citizen panel. 171.3 Fran Alexander, resident of Fox Hunter Road, asked if Frank Lyman had joined the new law firm with Tom Ingoldsby. Martin responded that Lyman was still affiliated with Nixon, Hargrave, Devans and Doyle. He added that, at the Board meeting where Lyman and Ingoldsby gave a presentation, Ingoldsby was present at his own expense. Alexander asked if the City would incur expenses for Lyman along with Ingoldsby. Pennington said, if the Board approves the agreement with the new law firm, tomorrow a letter would be transmitted to Nixon, Hargraves, Devans and Doyle, terminating their agreement with the City of Fayetteville. He said all records would be requested to be transferred from the Nixon firm to the McDermott firm. He said the only expenses with the Nixon firm would be those to date. Alexander said she wondered if there wouldn't be additional expense in the event Ingoldsby would have to confer with Lyman or others from his firm. She also asked if there would be a new retainer fee with the new firm. Pennington said there would be no retainer fee. 171.4 Upon roll call, the motion to waive the competitive bidding requirements passed, 7-0. RESOLUTION 47-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 171.5 Martin moved to amend the motion to transfer the contract for legal services to McDermott, Will and Emery, to provide that the City Manager provide a monthly accounting of fees and that specific authorization be requested for any expenditures estimated in excess of $10,000. The motion was seconded by Green. 172 Brandon requested the contract be amended to require that all records be made public. There being no response from Directors on the request, upon roll call, the motion to amend passed, 7-0. Upon roll call, the motion to transfer the contract, as amended, passed, 7-0. RESOLUTION 48-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK BUDGET ADJUSTMENT The Mayor introduced a request for approval of. a budget adjustment to cover engineering services performed by Roy F. Weston, Inc., in connection with the incinerator disengagement project. - Martin said the City Manager recommends a budget adjustment in the amount of $11,500, to be taken from Unreserved Fund Balance to cover technical services. performed through September 2, 1988 under an agreement with Roy F. Weston, Inc., the firm engaged by the City to provide engineering services in connection with the incinerator disengagement project. He said when a possible conflict of interest with Weston developed, an assignment of contract was made to another engineering firm, R. W. Beck, which allowed Beck to use information, data and other work done by Roy Weston for their study. He told the Board that the City has paid R. W. Beck a total of $43,644.27 for their services. Martin reported budget adjustments to date for legal and engineering services in connection with the disengagement thus far: February 21, 1989 February 21, 1989 April 4, 1989 April 4, 1989 May 16, 1989 TOTAL TO DATE: Nixon, Hargrave, Devans & Doyle R. W. Beck Nixon, Hargrave, Devans & Doyle R. W. Beck Roy F. Weston, Inc. $151,579 36,502 142,820 12,700 - 11,500 $355,101 It was moved by Kelley and seconded by Vorsanger to approve the request. Kelley remarked that there was no duplication of service and that the amount of payment is for services performed until the date the second engineer took over the work. Joe Robson asked if the Resource Recovery Authority had contracted with the company. Martin said the company was hired by the City, and payment is to come from the City's unreserved fund balance. Robson asked that an addition be made to the Minutes of the May 2 Board meeting, at page 149.3. Robson asked that the City Clerk include in the minutes a statement he made that "any new City Attorney that is hired should be prohibited from benefitting from any contracts that the City enters." The Mayor stated that he did recall Robson making such a statement. 172 1722 172 172 172 172 172 172 172 May 16, 1989 173.1 Robson said, when the Beck firm gave their report, Robert Schafich of the firm said they had contacted 15 companies or municipalities to attempt to sell the incinerator equipment. He said he asked Schafish for a listing of these, and Pennington said he would provide the list. He said he has since written two letters to the City for that information and haven't received it yet. Robson said it has been about six months since he made his request. Martin said the City Manager would see that Robson is provided the list, if Schafish will provide it to the City. 173.2 Upon roll call, the motion passed, 7-0. RESOLUTION 49-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK BID WAIVER/PIPE & FITTINGS 173.3 The Mayor introduced a request for an ordinance waiving the requirements of competitive bidding for the purchase of pipe, meters, fittings and other water and sewer items for the Public Works Department and Meter Division. 173.4 173.5 He said the City Manager recommends approval because the formal bid process is not feasible, as manufacturers and suppliers will not confirm contract prices for a one-year period and the items are priced on a very short term. He said such an ordinance was adopted last year at this time, and has been adopted annually in the past, under the condition that the staff obtain competitive quotations if possible before any materials are purchased. The ordinance was read for the first time. Director Lancaster, seconded by Kelley, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed, 7-0. The ordinance was read for the second time. Director Lancaster, seconded by Kelley, made a motion to further suspend the rules and place the ordinance on its third and final reading. The ordinance was read for the third time. 173.6 Katherine Adam, Fayetteville resident, asked if any attempt was made to buy these items in the State of Arkansas, American-made, or whether the lowest price means they would be purchased from a firm which deals with items made in Taiwan. 173.7 City Manager Pennington said the City has a preference for Arkansas -manufactured goods where possible, while selecting the low bid. Acting Public Works Director Kelley said water meters are American-made. 173.8 Adam asked if any attempt is made to check components to be sure they are all up to the standard to give the longest possible service for the money spent. She said there has been a lot of question about bogus parts which don't stand up. The Mayor asked if the City did a product reliability test. Pennington said product reliability was based on a series of standards adopted by the American Waterworks Association and other similar organizations. In answer to a question from the Mayor, Pennington said he was currently revising the City's purchasing policies. The Mayor said he thought we should consider Arkansas preference and local preference because we have sales taxes which could actually tax a vendor in the community out of competition with a vendor across the street. 1 • • May 16, 1989 Upon roll call; the ordinance passed, 7-0. 17 174. ORDINANCE NO: 3428 APPEARS ON PAGE '77 OF ORDINANCE AND RESOLUTION BOOK XX ✓ CITIZEN GROUP/INCINERATOR DISENGAGEMENT The Mayor introduced a request from the Fayetteville Chamber of Commerce 174. regarding the formation of a citizens' ad hoc committee in connection with the incinerator project. He said the Chamber Board was of the opinion that a citizens ad hoc committee should be -formed to review the facts and options available for settling the issue of the City's disengagement from the incinerator project, and voted to ask the City Board: If they agree to the formation of such a citizens group; 2. If they want the Chamber to take the lead in putting such a group together; and If they have suggestions for people who should be considered for this group. Director Green said he appreciated the Chamber's request and said he would be 174 willing. to accept any help or ideas the City can get to help it unwind the project and unite the community in solving the problem. He said the school system adopted a similar citizens advisory group which he said was successful in pulling together various ideas and different points of view. He proposed, for the Board's consideration, the following objectives for the. committee: • 1. To gain a broad perspective of public input on the disengagement process; 2. To develop a consensus for a suggested course of action; 3. To advise the City Board on funding options they feel will be least damaging to the quality of life of our citizens; and 4. To suggest procedures for developing future projects to avoid similar mistakes. Green said he thought the objectives should be accomplished very quickly. He said he felt the Board needed the citizen input, and said he thought the Chamber of Commerce should take the lead, in light of their vast resources and contacts in the business community. Green said he thought the group should be made up of a broad cross-section of the community, and suggested a few areas - Chamber of Commerce representatives from business, industrial and retail; representatives from the local legal community; realtors, financial and accounting professionals; people from the public school systems and the University of Arkansas; various citizens and other consumers, including groups who have followed the matter, such as the League of Women Voters, environmental groups such as the Sierra Club, Citizens for Clean Fayetteville Air, and the Association to Fight the 174 1./D 175.1 May 16, 1989 Incinerator. Green said representatives from those groups have spent countless hours working on the issue and know the history. Green proposed this cross- section be passed on to the Chamber of Commerce if the Board votes to adopt the committee. 175.2 Director Green, seconded by Vorsanger, moved his recommendations be adopted. 175.3 It was clarified that the group would be open to Chamber and non -Chamber members. Pennington said the Chamber was only acting as a catalyst in the formation of the group. 175.4 Green recommended David Dubbell and Joe Robson be seriously considered to serve on the group, commenting that their background, involvement and knowledge of the issues would be beneficial. 175.5 Phyllis Rice, Reporter for the Northwest Arkansas Times, asked if the group would be an arm of the Chamber or of the City Board, in terms of freedom of information. Martin said he understood the group was neither to be a body of the Chamber nor of the City Board, but said he hoped the meetings would be public. Green said the intent was for public input. It was agreed by the Board that the meetings of the group would be a public forum. Robson, commenting from the audience, said if selected, he "would like to help get us out of it if that is possible." He said he was not stating earlier that "any person sitting up here needs to be sued" but he thought the ratepayers shouldn't have to pay. 175.6 175.7 In answer to a question from wouldn't make any difference, concerned. Fran Alexander, Mayor Martin said your address in serving on the committee, as far as he was 175.8 Ruth Collier, speaking from the audience, commented that her idea of a public meeting is not "where we sit and keep out mouths shut and watch other people talk." 175.9 Al Vick, speaking from the audience, asked how many people would be represented on the committee, who would make the selections, and on what basis the selections would be made. Director Green said the Chamber of Commerce, as far as he knew, would be making lists and getting input. Green suggested the public either write or call the Chamber of Commerce and make suggestions. Martin said it may be impossible to get everyone who wants to be on the committee. He said it may have to be a plenary group which breaks apart into special interest groups. Martin told the citizens to submit their suggestions to Dale Christy of the Chamber, or contact City Manager Pennington or members of the City Board. Vick said there was a little bit of skepticism on the part of some citizens, commenting that the City Manager ignored virtually all the people involved in the incinerator project, with the exception of Vickie Kelley, when he made appointments to the Solid Waste Task Force. He said he hoped for a broader cross section than in the past. 175.10 Upon roll call, the motion passed, 7-0. OTHER BUSINESS May 16, 1989 CITIZEN COMMENT/EMPLOYEE APPRECIATION Leland Hamilton, Fayetteville resident, said the Board some outstanding jobs done by some City employees. He neighbors, as well as others over a two-year period have and Shane Stills of the Sanitation Division, who he said and considerate to senior citizens. He said you never who work for the city who go above and beyond their jobs, foot forward" in representing the City. 176 should be made aware of 176 said he, his family and observed Mike Albertson were very helpful, kind hearmuch aboutpeople or at least "put a good Hamilton said in the past six months he came into contact with Karen. Farris and Cindy Anderson of the City Manager's Office who he said were the "absolute right arm" as far as citizens are concerned who try to get into contact with the city staff. He said they have always been so very kind and considerate in offering assistance to citizens in getting them to the right department. Hamilton said these employees were "unsung heroes" of Fayetteville, Arkansas. 176 Hamilton said the Fire and Police Departments have struggled long and hard 176 through adversity caused by massive problems the City is facing. Hamilton requested city employees, especially the Fire Department, be brought up in parity, without the disparity of wages between them and the Police Department. Hamilton said all departments are receivingsomewhat low pay. Hamilton said Fire Chief Mickey Jackson was one of the finest fire fighting experts in the country and is a tremendous asset to the City, as well as Police Chief Richard Watson. The Mayor said commendations would be forthcoming and the Board would take his comments about pay parity into consideration. EVALUATION/CITY MANAGER 176 The Mayor introduced the interim evaluation of the City Manager by the Board. 176 He remarked that it was typical six months after hire date for an interim review to be made. He pointed out that, although Pennington had been with the City more than six months, he has had a new employer as of January, 1989, noting the current board has only been together as a group for five months. He said the evaluation was not inspired by any event or situation but was just good management procedure. He said he expected the Board to go into executive discussion and have a frank discussion about Pennington's employment and his performance. He said the Board will reconvene and report to the public if any decision or recommendation occurs. It was moved by Martin and seconded by Marinoni to go into'executive session to consider the employment of City Manager Jim Pennington. Upon roll call, the motion passed, 7-0. 176 May 16, 1989 177.1 The Board met with the City Manager in executive session from about 9:50 p.m. to about 11:30 p.m., at which time the Mayor reported no action had been taken. 177.2 ADJOURNMENT The meeting adjourned at about 11:30 p.m. 1