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HomeMy WebLinkAbout1989-07-18 MinutesMINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on Tuesday, July 18, 1989 at 7:30 p.m. in the Directors' Room of the City Administration Building at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor William Martin; Directors Michael Green, Russ Kelley, 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 ABSENT: Director Ernest Lancaster CALL TO ORDER 227.1 The meeting was called to order by the Mayor, with six 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. 227.2 The Mayor welcomed the public watching the meeting on television, and those 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. REPORT TO PUBLIC 227.3 The City Manager presented the Report to the Public and Board for the month of June. [A copy of the report in written form is on file in the City Clerk's office.] 227.4 Pennington reported, as of end of June, revenues over expenses were $1,189,113. He said cash and investments on hand were $69.5 million. He reported combined fund balances were $128 million. POLICE DEPARTMENT 227.5 Pennington reported on activites over the last six months of the drug enforcement program He said 219 drug-related arrests were made. Of those, he said 132 were felonies, and 87 were misdemeanors. He said 183 were arrested on drug charges. He said this averaged over 30 arrests per month. Pennington He said the system and July 18, 1989 FIRE. DEPARTMENT reported 88 fire calls :in the last month, department oversaw the installation of one the removal of three groups.of old tanks. PUBLIC WORKS, yr. with:very minimum damage. new flammable storage tank .4, Pennington reported the Public Works Department completedthe cleanup from the May storm. He said over 124 miles of,right-of-way were mowed, and 412 hours of hand -work on the right-of-way was completed. SOLID WASTE PROGRAM + ` s Pennington reported an in-house waste -reduction program had been initiated as part of an overall recycling program... He said we implemented a weighing process for vehicles so we can get accurate information on data collection. He said a tremendous amount of time was spent on collecting data for the citizen task force. Pennington said long-range plan PLANNING WORKSHOP Al Raby would be here to conduct a workshop and ordinances. on August 8 on the DRUG-FREE WORKPLACE Pennington said the City had developed and implemented.a drug-free policy, required by federal regulations. PERSONNEL POLICY workplace Pennington said by the end of the week the Board would have a new personnel policy delivered to them for their review. FINANCIAL QUESTIONS Vorsanger noted revenues over expenses for the first six months this year were $1,189,000, compared to 1988 when they were only $23,000. He said this was a tremendous variance. Vorsanger noted that depreciation and capital expenses in 1988 were $4.5 million while in 1989 they were only $2.5 million. Linebaugh explained the reason for there being a lot more revenue was because of timing on the charges for services, primarily in the water and sewer area. He said $300,000 in intergovernmental revenue came in, as well as a large amount of contributions from government funds. Linebaugh explained that some things being depreciated last year had "gone off" and some things have been transferred into the general fixed asset group. 228 22E 22E 22E 22E 22E 22E 22i 22 July 18, 1989 229.1 Vorsanger noted salaries were up $1.7 million. Linebaugh said the Board was sent a report about two weeks ago with an explanation for this. He said he would get another copy to Vorsanger. 229.2 Noting that a security survey had been completed by the Police Department and reviewed with the building management of Hillcrest Towers, Vorsanger asked if this information had been shared with Sam Guido who had come before the Board to discuss security for Hillcrest Towers. Pennington said he was not aware that the report had been shared with Guido. Vorsanger said he thought this should be done. 229.3 Director Green said several citizens are anxious to participate in the City recycling program. He asked when we could anticipate getting drop-off stations set up. Acting Public Works Director Kelly said it was anticipated the first phase of the collection stations would be out in September. 229.4 229.5 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 July 5, 1989 regular Board meeting; B. Consideration of a resolution authorizing the intention of the Fayetteville City Board of Directors to use the existing City maintenance building in the Fayetteville Industrial Park for economic development; 29.6 The City Manager recommends approval. This action would occur in the event a new City maintenance facility is constructed, and the existing maintenance building in the Industrial Park is vacated. 229.7 RESOLUTION 57-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK C. Consideration of award of Bid i89-27, for the purchase of traffic signs, posts, and related materials; 229.8 The City Manager recommends award to the lowest bidder, Vulcan Signs of Foley, Alabama, bidding $15,486.90. The budget contains $26,122 for this equipment. 1 July 18, 1989.4 • • Consideration of the re -award of four items in Bid #89-12 (for police uniforms, equipment, weapons and ammunition);: The City Manager recommends re -award to the next lowest bidder meeting specifications, Tuxall Uniforms of Kansas City, Missouri, since the present vendor is unable to deliver the specified products. • Consideration of a resolution authorizing the Mayor and City Clerk to execute a one-year lease with Joe Terminella for space in a T - hangar at the Fayetteville Airport; ' t1 Rental rate proposed for4the space is $11S per,month. The lease contains a provision for five additional one year options. The City Manager recommends approval of the -request: , 23( 23( RESOLUTION 58-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK F. Consideration of the award of Bid #89-28afor the purchase of one 23( 3/4 ton passenger type van for the Police Department; The City Manager recommends award to the only bidder, Jones -Olds - GMC Buick Inc., bidding $18,593. The budget contains $21,000 to cover the expense. G. Consideration of a resolution authorizing a two-year agreement with 23( AT&T Communications, Inc. for long distance service at the Fayetteville Airport; The City Manager .recommends approval of the agreement with AT&T, which contains a provision for automatic renewal for one additional year. 10% of the revenue generated from operator assisted, long distance calls is to be paid to the Airport. A 4% bonus will be paid for the first six months usage. The staff anticipates approximately $10,000 in revenue for the first year. RESOLUTION 59-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK H. Consideration of aresolution authorizing an agreement accepting an 23( easement to Gulley Park, from Township Road; The City Manager recommends approval. In exchange for granting the described easement, the City promises to install a fence on the property line between Gulley Park and the Winwood Baptist Church property. The cost of the fence along the right-of-way and church property east of the described easement would be covered in 1989 by Green Space funds and is estimated at a cost of $2,775. The balance of the fence, west of the easement, would be budgeted and installed in 1990, at an approximate cost of $2,160. Total cost of the project is estimated to be $4,935. RESOLUTION 60-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 231.1 231.2 July 18, 1989 It was roved by Kelley and seconded by Marinoni to approve the Consent Agenda. Upon roll call, the motion passed, 7-0. INCINERATOR COMMITTEE REPORT The Mayor introduced a report from Senator David Malone, chairman of an ad hoc citizens' committee, formed to make recommendations on the payoff of the incinerator project. 231.3 Malone began by clarifying that the Chamber of Commerce took no official action to endorse the report of the ad hoc citizens committee, although the committee has been referred to as a Chamber of Commerce committee. He also said that he was working on the committee as a citizen of Fayetteville, and not in any official capacity. 231.4 231.5 231.6 Malone said that, on behalf of the committee, they appreciated the efforts of the City of Fayetteville, particularly Scott Linebaugh, in getting information to the committee, and answering questions. Malone noted the other members of the committee: John W. Cole, George Faucette, Jr., Jeff Koenig, Kent McVey, Phil Taylor, Fran Alexander, David Dubbell, Hariett Jansma, Frances Langham, Virginia Morris and Lynn Wade. Malone said the committee tried to focus on the incinerator debt problem, and resisted the inclination to get off into a lot of other problems, although it was necessary to be aware of some other problems and take them into consideration. He said the committee reviewed a great deal of documentation, heard legal counsel Tom Ingoldsby, questioned City staff, had an opportunity for public hearing of any citizens who wanted to speak, and worked with some local CPAs to get a handle on the actual debt figure. He said the committee settled on looking at the debt as of May 31, 1989, because it was the last date for which they had audited figures. 231.7 Malone presented the committee's recommendation to the Board (attached as a part of these minutes). 231.8 Malone said the recommendation was the committee's best advice to the Board, based upon testimony they heard from the City's legal advisors, from the general public, and from all the facts and figures they could gather during the time period. He said the committee understood that further public hearings might be necessary before the Board could take any official action on any of the recommendations. 231.9 The Mayor thanked Malone for the report, and thanked the committee members for their service. The Mayor said he would propose to the Directors at the next agenda meeting to consider using time between now and the next meeting to digest the report and to place a public hearing as the first item on the agenda of the next Board meeting, at which time all citizens could have a chance to address the Board and ask questions. The Mayor said that perhaps the committee members could be present at the hearing. July'18, 1989 • Director Vorsanger thanked the committee members but said a lot of credit should 232 be given to Linebaugh and his staff who prepared documentation for the committee. Vorsanger asked Linebaugh to name those of his staff who assisted him. Linebaugh said there were many employees involved in the work, but the ones who did the major amount of the work were Kevin Crosson, Lance Heater, Brian Swain, Greg Fields and Judy Huffaker. = ' Director Green said the committee and the accounting staff did,a tremendous job in a very short period of time. Hetsaid'he thought the idea of,using excess tax revenues from the one-centsales tax5.fas a great idea. He asked if the committee looked at the City's other sales tax it,uses for General Fund. Malone said they did not but felt the Board should—look at all its other funds, since the committee was not really asked to do that. e , • 232 Malone said that local accountants Bill Gould, Rick McCullough and Jim Sandlin 232 put in a great deal of time working on figures for the committee. Vorsanger said, as the report notes, a vote of the people would be necessary to 232 use excess sales tax to pay part of the debt. He asked if the committee gave any thought to the possibility that citizens may turn down this request. Malone said this was taken into consideration.. He said, obviously, if excess revenue is not devoted to lowering the rates, the opportunity exists to use the revenue for other capital projects. Malone said the committee, recommends the city accomplish the entire capital improvement program and the funding for the schools, and that only the excess revenue above projections would go toward the incinerator debt, meaning that revenue would not be available forother expenditures. Martin asked if the excess revenue was recommended to be applied to other costs as well, such as for landfill costs. Malone said the committee debated that and decided it was a decision for the City Board to make. Martin asked if the committee had any idea as to how substantial excess revenues could be. Malone said the committee saw figures which were made available by City staff and said the projections were substantial, although they did not change the committee's basic recommendation. 232 Gordon Cummings, Fayetteville citizen, addressed the Board. He said he didn't 232 know whether the Board was getting good legal advice from their Washington, D. C. legal counsel in regards to the incinerator debt. He said he didn't believe the firm, which he said had received about $400,000 from the City, informed the Directors of the Arkansas law. He said the incinerator debt was an illegal debt and it was against the law to pay it. He said $22.4 million in bonds were issued in 1986 by the Northwest Arkansas Resource Recovery Authority. He said the City purportedly unconditionally guaranteed another government's debt. He said Arkansas had certain constitutional provisions that limit government debt. He said Article 12, Section 4 of the Arkansas constitution prohibits the government of Fayetteville from incurring expenses higher than revenues. He said when the Board unconditionally guaranteed another government's bonds, they clearly violated the "balanced budget" provision of the Arkansas constitution. He said Arkansas had another consitutional provision, Article 16, Section 1, which says no city shall ever lend its credit for any purpose whatsoever." He said that meant you couldn't mortgage the citizens of Fayetteville to pay somebody else's July 18, 1989 debt. He said in 1986 the City Board unconditionally lent credit to another governmental entity, the Authority. Cummings said if the City pays an illegal debt, any citizen can go to court to seek an injunction to prevent the City from paying the debt. He said if money is paid while the citizen waits to go to trial, the citizen can get a judgment against whomever receives the illegal payment. He said if a Director clearly violates the law and pays an illegal debt, he can be held personally liable. 233.1 Cummings suggested the City hire a local attorney and file a lawsuit to find out the legality or illegality of the debt before any of it is paid. Cummings said he understood the principal of the debt to be $7.3 million, and the interest to be $6.9 million. He said that money needed to stay in the community and didn't need to be spent on illegal debts. 233.2 William Giese, Fayetteville citizen, told the board it would cost him $1,700, at $2.40 a week, until the year 2003. He said anytime he spends $5, he wants to know where it's going, who it's going to and if there's a shadow over it, he doesn't pay it. He said he didn't mind paying a legal debt, but he wasn't going to pay an illegal debt, and he'd give $1700 to Mr. Cummings to go his route. 233.3 Mike Phillips, Fayetteville citizen, said he had been in the investment business since 1963. He said "if everything they say is true" whether the debt is legal or illegal, the purchasers of those securities thought they were legal and, if the debt is not paid, the City of Fayetteville would be ostracized. He said Fayetteville might be lucky to even sell bonds in the marketplace. ii3.®eorge Blackwell said he questioned whether the citizens received true representation by the ad hoc committee organized to represent the citizens. SCHOOL BONDS 233.5 The Mayor introduced further consideration of a request made by the Fayetteville School Board that the City issue unrated, uninsured, non-bank qualified for interest exemption bonds to fund construction of a new wing at Fayetteville High School; postponed on July 5. 233.6 Judy McDonald, President of the School Board, said that School Superintendent Simpson wanted her to express their continued interest in having the bonds sold as quickly as possible. She said the purpose was to proceed with the high school building project. She said as each planning phase is accomplished, they become further indebted, and will reach a point in September when they will have to pay additional funds to architects. She said that money was planned to be spent from the bonds approved by the voters. She said the school budget had very little flexibility, and a limited amount of money for capital improvements. She said they simply wanted the City Board to proceed as quickly as they can with the bond sale. 233.7 George Blackwell told the Board he opposed the issuance of school bonds at this time, without further consideration. He said he believed the school child population of Fayetteville had decreased. He said he didn't know of any July 18, 1989%14 T ' precedent in Fayetteville where city taxpayers subsidized schools. The Mayor reminded Blackwell that the majority of Fayetteville citizens had voted to approve the issue. speed to resolve this issue. He said school issue if need be. • The Mayor said the Board would proceed. with we would move forward with with a separate LEASE AGREEMENT • • • • The Mayor introduced consideration of a resolution authorizing the Mayor and City Clerk to authorize a lease between the City of Fayetteville and Fayetteville "School District 1. He explained the provisions of the lease included having the district make lease payments to the City if the City provides certain tax base improvements within the district. He said if tax base expansion didn't occur with the district, lease payments would not be inccurred.nor would they accrue. He said lease payments would be 'deposited into an 'interest bearing account designated the "Fayetteville Economic Development Revolving Fund" and would be used as the Board determined necessary^to stimulate economic development in the City. He reported the City Manager recommended approval. The City's Economic Development Coordinator Richard Shewmaker explained the lease would give both entities an opportunity to expand the tax base. He explained funds would not be allowed to be expended anywhere but within the Fayetteville school district. Inanswer to a question from Director Marinoni, Shewmaker said the agreement had been discussed with School Superintendent Winston Simpson who had discussed it with School board members. He added that Simpson was in support and indicated he had received a positive indication from the School Board. Shewmaker said lease payments would only be made when the tax base expanded and only for one year, if a new industry were constructed. He said the value of the lease payments would equal the increased taxes generated from a piece of property where an industry located. He said the lease payment would take three years to make it into the revolving fund, because of certain legal requirements stating a minimum of 70% of any new revenues have to be set aside for teachers' salaries. In answer to a question from Mayor Martin, Shewmaker explained the school board would be leasing from the City the $10 million of school improvements to be paid for by City sales tax. He said because the law'requires the City to construct the buildings to be used by the school system, the facilities can be leased to the school system. Director Vorsanger commented that it appeared the request was really for the Board to authorize the staff to work with bond counsel to make this agreement a part of the closing documents for the capital improvement bonds. He asked, if this is made a part of the bond indenture, if any additional agreement was needed from the Board. Vorsanger said he thought it was an excellent idea and would help the schools and city in the future in developing its economic base. Vorsanger, seconded by Kelly, moved to approve the lease. 234 234 23e 23e 23e 231 July 18, 1989 235.1 Director Green said this was an innovative idea that would get Fayetteville's economic development going again. He said although it was complicated the benefits were tremendous. He asked if it was possible to use the anticipated tax increase as collateral. Shewmaker said he thought that was possible. 235.2 Bob Brandon, Fayetteville citizen, said he had school-age children and was interested in the issue. He said what we were doing was laundering money through our school bond issue into a purpose for which that money was not intended by people who voted for funds to build the school buildings. He said we were taking money out of the schools by diverting the funds into a slush fund for economic development. Brandon said he didn't see this as assisting the school system but as simply a means of getting money for some other purpose with the idea that in the future this will form a tax base increase for the school system. He suggested some tax money be dedicated to economic development rather than involving the school system. Brandon said this was not discussed for the school bond election. Shewmaker said the $10 million the people voted on for school improvements will not be siphoned off for some other purpose. He said the proposal was reviewed both by those who would be paying the school system, and those who would be the recipient through the expanded tax base via the school system. He said he didn't think they would have supported it if they felt it would be to their detriment. 235.3 235.4 Al Vick, Fayetteville citizen, said at the time of the election a lot of news articles claimed that if the sales tax didn't pass the City would actually collapse and City services wouldn't be in place anymore. He said, if we are considering paying some of the incinerator debt from sales tax, it seems to prove that the City was really not on the verge of collapse before the tax was approved. He said the tone of the news articles may be the reason some people voted for the tax. He asked why everybody wanted the City to continue to grow so much. He said if we are going to talk about doubling the population we need to talk about what we're going to do with the solid waste and raw sewage. Mayor Martin said he shared many of Vick's concerns but told him that he thought our concern shouldn't be growth versus no growth, but carefully managed growth so we get the best, not the worst, out of an expanding tax base. 235.5 Joe Robson, Fayetteville resident, said he had children in the school system and would like to see the school system continue to improve the quality of service. He said he wasn't really opposed to economic development. Robson said the idea was creative but wondered whether we knew exactly what we were getting into. He said it appears to him we were "playing another shell game with money." Robson asked if bond counsel, or the City's attorney, would receive benefit from involvement in the bond issuance. The Mayor said, if the City didn't yet know who bond counsel would be, they wouldn't know if any benefit would be received. Robson said we had received an opinion in regard to the incinerator and he still held the view that opinion was faulty. 235.6 Robert Reus, Fayetteville resident, said he remained skeptical of the proposal. He said he recalled when the sales tax was put before the voters, it was with the provision that approximately $10 million would be used for the schools. He said he didn't think the sales tax would have passed without that provision. He said he opposed the sales tax because of the fiscal irresponsibility he had July'18, 1989 e seen an the part of City Directors for several.years now. He said he hadn't seen anything to indicate, with three new Board members, there has been a drastic change in the fiscal policy of the Board.. He -said most of the money goes out of the community to consultants. He said he took 'issue with that as a policy. He said if the tax base expanded, he -thought the money should stay in the schools. He said any drain on school' revenues'will continue to accelerate a trend of mediocrity. Martin said he thought this.was.really a proposal towards producing additional revenues, rather 'than a drain on revenues. Reus said it was a loss to the schools if they are.to.kick back some additional revenues they might receive due to new industry'locating;here. Martin said he saw it as a generator of money to the schools. He>said those who support the idea think it is a way to produce finer schools. Reus said he thought we needed an expanded industrial base, not to lower unemployment, but to raise wages. He added that we needed to attract clean industry to the area. Green said he thought some people were confused about one point - that we aren't 23E talkingabout spending any of the $10 million the voters approved for the schools. He said the lease payments would consist of about 30% of any excess property tax, due to additional industry in the community. He said he thought 70% of it was dedicated to teachers' salaries and other benefits. He said the only connection with the bond issue is the fact that the city would fund the school building and lease it back to the school. Reus said he preferred any increase in the tax base staying within the school system. He said any economic development fund should be created with the knowledge and consent of the Fayetteville voters. Director Vorsanger said he didn't. appreciate Reus questioning his integrity. 23E He said a majority of people in the city, such as himself, who don't have any children in school, feel it a social responsibility to build a better city. He said he didn't trust Reus' judgment, Al Vick's judgment, and Joe Robson's judgment. Reus said he didn't mean any insult to Vorsanger personally and didn't question his integrity. He said he was questioning judgment. Upon roll call, the motion passed, 6-0-1, Marinoni abstaining. 23E RESOLUTION 61-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK Marinoni said nothing had been heard from the school board on the issue, and the board had had about a week to think about it. He said for that reason he would abstain. BID WAIVER/RADIO EQUIPMENT 23E The Mayor introduced consideration of a request for an ordinance waiving the 23E requirements of competitive bidding for the purchase of radio equipment for one year. He said the City Manager recommended approval because the supplier is the sole source of the specified equipment, making the formal bid process unnecessary. The ordinance was read for the first time. Director Kelley, seconded by 23E Marinoni, made a motion to suspend the rules and place the ordinance on its July 18, 1989 second reading. Upon roll call, the motion passed, 7-0. The ordinance was read for the second time. Director Kelley, seconded by Marinoni, made a motion 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. 237.1 George Blackwell, Fayetteville citizen, asked if any other companies had been contacted. Martin explained that the city's five -channel trunk system was microprocessor -driven. He said the software controlling the system was licensed exclusively by IBM to Motorola, so there are no compatible systems. 237.2 237.3 Upon roll call, the ordinance passed, 7-0. ORDINANCE NO. 3438 APPEARS ON PAGE 92 OF ORDINANCE AND RESOLUTION BOOK AK ✓ BUDGET ADJUSTMENT The Mayor introduced a request for approval of a budget adjustment for legal settlement expenses and audit services for the Public Works Department. He said the City Manager recommended approval of the adjustment, in the amount of $61,688, including $52,458 to cover the Aero -Tech settlement, and $9,230 to cover audit services performed by Arthur Young and Company in reference to Aero Tech. 237.4 Martin explained the total adjustment was recommended to be taken from General Fund Unreserved Balance and Airport accounts which have funds available because of unanticipated revenues, expense items which came in below cost and maintenance contracts which will not be executed. 237.5 It vas moved by Marinoni and seconded by Martin to approve the budget adjustment. 237.6 Director Kelley asked if the city had received all disclaimers from liability and that this was the final action in relation to the issue. City Manager Pennington stated that this was the case. 237.8 237.9 Upon roll call, the motion passed, 7-0. PROPERTY CLEANUP The Mayor introduced an ordinance ordering the abatement of unsightly conditions and the razing and removal of unsafe structures located at 515 Lytton Avenue; tabled on December 6, 1988 (after being read for the first time on November 15, 1988). 237.10 The Mayor explained the City Manager recommended approval. He said the matter was considered by the Board on December 6 at which time the property owners were given 60 days to demolish the house and clean up the property. He said the owner began demolition during the period, but later discontinued the work. July 18, 1989 .,.,.-0, • The ordinance was read for the second time.''�Director Marinoni, seconded by 238 Green, moved to 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. Planning Management Director Merrell commented that the sixty day extension was granted to the owners about six months ago. He;said, although demolition was begun, .the debris is still there. -He-said slides could be shown if the Board wished to view them. The Mayor saidxat least five of the Board members had viewed the property itself and it was decided to forego -the slide presentation. a There being no one present to speak in'opposition to the ordinance, upon roll call, the ordinance passed, 7-0. ORDINANCE NO. 3439 APPEARS ON PAGE cJ 3 OF ORDINANCE AND RESOLUTION BOOK X)(I/ ENGINEERING SERVICES The Mayor introduced consideration of the award of contract for engineering services relating to a study of the City's sewer system lying within the White River watershed. He reported the staff selection committee and the City Manager recommend award of the contract to McGoodwin, Williams and Yates of Fayetteville, proposing a fee of $639,770, and that the budget contained $800,000 to cover the expense. It was moved by Kelley and seconded by Martin to approve the award of contract.. City Engineer Don Bunn explained the project consisted of an overall detailed study of 40-45% of the city's sewer system. He said the object was to identify leaks and to suggest ways to repair those leaks. He said eventually we were looking towards a construction program that the City can undertake and eliminate existing overflows in that part of the sewer system. He said when the treatment plant was constructed it was designed to handle a certain flow at the plant, that the interceptors going to the plant were designed on the same basis, and what has resulted is the flows in our system exceed the capacity of the plant in the lines going to the plant when there is a significant rainfall. He said the plant was constructed that way with the intent that the City undertake rehabilitation df the sewer system. He said this would be the first step in the rehabilitation of our lines. He said there would be three phases to the study and at each phase we would review the study and determine what steps should next be taken. He said the first step should cost about $231,000. He said the scope of work for additional phases would be determined at the end of phase 1, but if the program is carried out exactly as proposed it would cost $639,000. He said the ultimate objective was to eliminate overflows in the White River watershed. In answer to a question from Marinoni, Bunn said this study would be similar to 235 one done in the late 1970s of the entire system. He said it would tell us where we need to repair or replace lines, or to build relief lines to prevent overflows. Marinoni asked if we could do the work in-house. Bunn said that the City had one crew now with a sewer television camera and some repair 238 238 238 239 239 July 18, 1989 capabilities. He said they didn't have the expertise needed to get a program going. Marinoni asked if another study would be needed for the Illinois side of the sewer system. Bunn said that depended on the progress being made on that side by in-house crews. He said a study may be recommended. 239.1 In answer to a question from Vorsanger, Bunn said the contract included all three phases but phases would only begin upon direction of the City. City Manager Pennington said funding for each phase would need Board approval. 239.2 In answer to a question from the Mayor, Bunn said the need to reduce inflow and infiltration was always a part of the plan. He said he didn't know whether the study was anticipated five years ago. Martin asked if it was true the City had spent substantial amounts of money on necessary repairs which were not the most effective in reducing inflow and infiltration. Bunn said we did sewer system demonstration projects in 1984 or 1985, and one a year later. He said reports indicate we achieved 40-45% reduction in inflow sources by doing those projects. He said a lot of leaks were fixed and a lot of overflow was eliminated. Bunn said State and federal authorities definitely expect the City to institute a program to reduce inflow and infiltration into the system, or to eliminate overflows. He said, depending on progress we make, we will be subject to fines for each overlow and will be directed by EPA to undertake a program if we don't do it voluntarily. 239.3 The City Manager said the City has laid out a course of action to deal with infiltration and inflow problems and made a commitment with the sewage treatment plant which he said was being monitored regularly. He said the City must submit periodic reports. He said every overflow we have is reported to the EPA and is a point that EPA can cite us for. He said they would continue to monitor our progress. 239.4 Upon roll call, the motion passed, 7-0. 239.5 WARD BOUNDARIES The Mayor introduced consideration of an ordinance redistricting the wards in the City of Fayetteville. He explained the City Manager recommended approval and that the proposed changes, recommended by the Chamber of Commerce Ward Boundaries Task Force, would more nearly equalize the population in the four Fayetteville wards than is now defined by current ward population. 239.6 The ordinance was read for the first time. 239.7 The Mayor said on June 6 Larry Bittle, Chairman of the Task Force, presented a report to the Board. He reminded the Board that the present estimated percent of population now varies from 18% in Ward 1 to 36% in Ward 2. He said the law indicates that it is illegal for ward percentages to be drastically out of line. 239.8 Martin said he understood the percentages under the proposed boundaries basically divide the City around arbitrary north/south, east/west boundaries, and would leave Ward 1 with 27%, Ward 2 with 23%, Ward 3 with 25% and Ward 4 with 25%. A Martin said if more than 100 citizens object to the final redistricting, the 24( matter would be referred to the Circuit Court 64 1 Director Green said he thought we should try to comply1with the law, but said 24( he thought leaving the ordinance on its first reading would give time for the public to respond. Director Vorsanger commented that this had been publicized and he had received only one letter.• The City Manager. said he had received no letters. • The ordinance was left on its first reading. 24( • BID AWARD The Mayor: introduced consideration of the award of Bid #89-34, for installation 24( of odor and corrosion control facilities at two lift stations. The Mayor explained the project would involve the installation of chemical feed equipment at the Double Springs Road and Johnson Road lift stations. He said the equipment would be used to feed chemicals which will prevent the formation of hydrogen sulfide and other gases which cause odors and corrosion within the sewer system, and that the project was in response to recommendations contained in the September 1988 Metcalf and Eddy odor control study. 24( The Mayor said the City Manager and project engineer (McGoodwin, Williams and 24( Yates) recommended the award to the low bidder, Fochtman Enterprises, bidding $111,750. He said that with $80,450 in the sewer plant construction fund, a budget -adjustment was recommended for $32,000, to be taken from interest on the sewer plant construction fund. It was moved by Marinoni and seconded by Martin to award the bid. 24( It was clarified that $84,000, rather than $80,450, was budgeted. 24( Director Spivey asked what liability the company would have if there is no 24( significant reduction in the odor problem. He asked if the City would receive any guarantee. Carl Yates, of McGoodwin, Williams and Yates, said he didn't believe there were any guarantees. He said Metcalf and Eddy did the study and this is the method they have found, particularly in the southern part of the country, which "has done the trick." Spivey said he understood that, under worst case conditions, it is going to be 24( difficult for anything we do to control the odor, because of some climatic conditions. Yates said he was not sure he would necessarily agree.with that. Upon roll call, the motion passed, 7-0. 24( OTHER BUSINESS July 18, 1989 CITIZEN COMPLAINT/STORM DEBRIS 241.1 Mary Sue Karnes, resident of 1559 Sandy Drive, told the board the debris from storm cleanup being stored by the City is no more than 100' to 150' from her patio. She said that she and her neighbors now have a tremendous amount of mosquitos, gnats and even rats coming up into their yards. She said people dumping debris were coming to the area as late as midnight. She said the City did put a stop to that by putting a lock on the gate after 4:30 p.m. She said, on weekends, when people couldn't get in, they dumped the debris over the fence, leaving debris on the streets. She said she believed the gates have now been completely locked. She said there is a space in the fence big enough for a truck to get through, so people now jump the curb with their vehicles and go around the fence to dump debris. She said in addition to debris from the storm, people are dumping couches, chairs, tires, cans, and other things. She said they wanted to know what was going to be done about it, commenting that it was dangerous, was a health hazard to the neighborhood and an eyesore. She said she couldn't open her windows at night because of the gnats. 241.2 Acting Public Works Director Bob Kelly said the City sympathized with Ms. Karnes, adding that it had been a nightmare for the City in keeping out the other debris. He said there had been a tremendous amount of abuse. He said approval had been received today to add two additional staff who will do nothing but monitor, and chip wood. He said a composting consultant would be hired. He said the debris would be moved from the area. 241.3 The Mayor said he thought the neighbors would appreciate Kelly coordinating with them efforts to mitigate the insects and other nuisances. The Mayor asked Ms. Karnes to contact the City Manager or any board members if she is not satisfied with actions taken by the City to solve the problem. CITIZEN COMMENTS/HILL STREET STOP SIGNS 241.4 George Blackwell, resident of Fayetteville, made some comments about stop signs on Hill and Eleventh Streets which he said he contacted the City Manager about two years ago, receiving no results. The Mayor suggested the City staff look into Blackwell's complaint, and see if they can recommend any improvements. The Mayor urged all citizens to feel free to contact the City Manager with their concerns. He said the Board would follow up and make sure the citizens receive a response. 241.5 ADJOURNMENT The meeting adjourned at 9:57 p.m. 1 July 17 1989. 1 as 4 • TO: CITY BOARD OF DIRECTORS FROM: CITIZENS AD-HOC COMMITTEE David Malone, Chairman John W. Cole George Faucette, Jr. Jeff Koenig Kent McVey Phillip Taylor Fran'Alexander David Dubbell Harriett Jansma Frances Langham Virginia Morris Lynn Wade The Citizens Ad -Hoc Committee has met five times since its for- mation on June 12, 1989 to review the facts concerning the dis- engagement of the incinerator project. During this time we have: * reviewed the City's documentation on the project; * questioned the City staff extensively on this data; * heard from your consultant, Tom Inglesby, on the legal implications of the project; * heard comments from all citizens who attended announced public input session and elected to the speak; * received an independent review from volunteer CPA's on the numbers regarding this project leading us to believe that the debt as of May 31, 1989 is in fact $8,492,277.10 less $2,200,000 available in the sani- tation fund, for a net debt of $6,292,277.10 * spent considerable time collectively and independently arriving at what we believe is our best judgement on the matter. We hereby make the following recommendations: 1. We urge the City Board of Directors to take immediate steps to assure payment of the incinerator bonds as they become due and thus to avoid default so that the excellent credit rating of the City will be maintained. We totally agree that default on these bonds is not an opt -24; ion. The City and its various departments is dependent on a credit rating that will permit continued issuance of bonds to meet the capital needs of a developing city. An immediate example of finan- cing need is the implementation of the financing for the capital im- provement program including the school construction funds approved by the voters last November. 24; 24'; 24' 243.1 The committee heard testimony from citizens who believe the bond insurance will pay the cost of the bonds if the City de- faults. The committee, however, understands that the bond insur- ance purchased by the City is payable only to the bondholders and was purchased to improve the rating of the bonds and thus to re- duce the amount of interest to be paid by the City. It is apparent that if default occurs, the bondholders will be paid by the insur- ance company who will then still have a claim on City assets for ultimate recovery. 243.2 2. We recommend that you proceed with the capital improvement pro- gram as overwhelmingly approved by the voters. 243.3 3. We recommend that you proceed with the original program for the Fayetteville School District as overwhelmingly approved by the vot- ers as soon as issuance details can be worked out by the City and School staff. 243.4 4. We recommend that you raise the sanitation rates to cover the principal and interest needed to retire the net incinerator debt. This increase should not exceed $2.40 to the homeowner and $3.78 for the average commercial user, the estimates made at the time of the election to stop the incinerator project. It is our understand- ing that these rates would permit paying off the bond issue by 2003 or sooner. 243.5 The ultimate cost of this rate increase to the citizens may be reduced during this time frame by implementing any or all of the suggestions included in section 5. 243.6 5. We recommend you consider reducing the rates recommended in section 4 by taking the following steps: 243.7 a. Sell the incinerator site on Indian Trail as soon as practicable. The committee realizes the proceeds from this sale may be small in comparison to the total debt but we believe the action is important to restore public confidence that every effort has been made to reduce the debt to the maximum extent possible. 243.8 b. Specifically determine the legal liability of any firms, individuals or entities legally liable for this debt. 243.9 Move as rapidly as possible to secure a legal recovery where the cost/benefit ratio is favorable and to place any funds recovered in the sanitation fund to benefit ratepayers. 243.10 c. Review other city revenues, expenditures or programs to determine if there are other funds that might be used to help reduce this sanitation rate increase to pay off the bonds. 243.11 d. It is our understanding that a 2% growth figure has been used in estimating the revenues available to cover the capi- tal improvements program approved by the voters. We suggest that 1 r citizens be given an opportunity, by publkic vote, to allocate ad- ditional growth sales tax revenues over this 2% figure, up to the remaining net amount of the incinerato.r,.bond debt. f. i • The committee believes that the City Board should resolve 244. this issue as soon as possible to enable the City to get on with other priorities and to make'certain the bond trustee is comfort- able with the fact the the bands will be paid as. due. • •