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HomeMy WebLinkAbout1989-08-01 MinutesMINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on Tuesday, August 1, 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 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: Directors Michael Green and Ernest Lancaster CALL TO ORDER 245.1 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. 245.2 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. CONSENT AGENDA 245.3 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: 235.4 235.5 A. Minutes of the July 18, 1989 regular Board meeting; B. Approval of a budget ad)ustment for the Fire Pension Fund; The City Manager recommends approval of the transfer of $16,500 from Fund Balance to Unrecognized Accrued Interest, because the interest on a purchased investment was mistakenly booked as revenue in 1988. 235.6 C. Approval of a resolution authorizing the Mayor and City Clerk to grant a right-of-way and utility easement from the City of Fayetteville to Southwestern Electric Power Company (SWEPCO); 1 August 1, 1989 The City Manager recommends approval of the resolution. SWEPCO is requesting a ten -foot easement across City property in the Industrial Park being leased by Specialty Fastening Systems. SWEPCO wishes to secure right-of-way for a transmission line under construction west of the property, to serve a new substation located north of Pump Station Road and west of Armstrong Avenue. Specialty Fastening Systems has concurred in writing with the request. RESOLUTION 62-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 246 D. Approval of a resolution authorizing the Mayor and City Clerk to 246 execute an amendment to an agreement with McClelland Consulting Engineers, for engineering services for design and construction of additional water line replacements; The original contract authorized by the Board in March of this year 246 provided for water line replacements on Mt. Comfort Road, Addington Avenue and in the Rose Hill Addition. The amendment would increase the scope of work since a field survey has indicated additional lines need replacing which were not shown on city maps. The increase in engineering fees is proposed to be $3,093, to be taken from funds budgeted for capital improvements. The City Manager recommends approval of the resolution. RESOLUTION 63-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK E. Approval of a resolution authorizing the Mayor and City Clerk to 246 execute an amendment to a contract with Milholland Engineers for engineering services for Appleby Road improvements; The amendment would provide for an increase in engineering fees due 246 to a change order authorized by the Board in February of this year, involving additional intersection improvements at Bishop Drive and Appleby Road. Additional costs of $828.23 would be covered'by funds budgeted for the project and are recommended by the City Manager. RESOLUTION 64-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK F. Award of contract for relocation of water and sewer facilities in 246 the new Highway 71 and Cato Springs Road area; The City Manager recommends award to C. W. Combs Construction .246 Company, one of four firms submitting bids, proposing a contract price of $387,855.50. The budget contains $427,000 for the project. In accordance with an agreement with the Arkansas State Highway Department, the City anticipates being reimbursed approximately $213,250 from the Highway Department. G. A resolution authorizing condemnation of two tracts of land necessary 24E for the utility relocation project at Highway 71 and Cato Springs Road; • • • 247.1 August 1, 1989 The City Manager recommends approval of the resolution, since both property owners have refused the City's offer to purchase the property at its appraised value and have made no counteroffers. One parcel, known as Tract G, consists of 0.05 acre, and is appraised at $400.00. An offer of $420 (including compensation for a temporary construction easement) was made to the property owner. The other parcel, known as Tract D, consists of 0.09 acre, and is appraised at $270, the amount of the City's offer. The budgetcontains$2,500 for these purchases. 247.2 The Mayor asked if any Director wished to remove an item from the Consent Agenda. Director Marinoni requested the removal of Item G. 247.3 The City Manager, reporting in reference to Item F, told the Board that the City had been notified that the federal government disagrees with the State over the project, and asked that the item be removed from the agenda until the matter can be straightened out. 247.4 It was moved by Vorsanger and seconded by Kelley to approve the Consent Agenda, with the exception of Items F and G. Upon roll call, the motion passed, 5-0, Green and Lancaster being absent. 247.5 The Mayor asked that Item G be considered following the public hearing. PUBLIC HEARING/INCINERATOR DISENGAGEMENT 247.6 The Mayor introduced the next item on the agenda, a public hearing to receive input regarding the Citizens' Ad -Hoc Committee report to the City Board concerning the disengagement from the incinerator project, presented at the July 18 Board meeting. 247.7 As way of background, the Mayor explained that 10 years ago, in 1979, a study "Solid Waste Management Plan for Benton and Washington Counties" was published. He said it was a catalyst for the formation, in 1980, of the Northwest Arkansas Solid Waste Authority which consisted of 21 members including city and county entities. He said virtually all members dropped out and in 1982, Fayetteville and West Fork formed the Northwest Arkansas Resource Recovery Authority. He said in 1984 Washington County became a member, and in 1985, $22.4 million in bonds were issued and placed in escrow for one year. He said, during 1986, the development of the incinerator project continued, with contracts being finalized• and approved by the Authority. He said the Authority hired MK Ferguson/Volund to build the incinerator. He said the City Board, the Washington County Quorum Court and West Fork City Council approved remarketing the bonds in December of 1986, and the Authority entered into a Waste Supply Agreement. He said, in 1987, MK Ferguson began work on the design of the facility and began procuring equipment. He said there were changes in the project in 1987, including at least two changes in the proposed site. He said, late in the year, the Authority directed MK Ferguson to place a moratorium on all discretionary spending, and in 1988, the City Board placed before the electorate a non-binding referendum as to whether or not to continue with building the project. Martin said 57% of • • August 1, 1989* the voters voted against proceeding to build an incinerator, and the City Board immediately decided to withdraw or disengage from the project. He said in 1988 the City hired an independent outside counsel to assist it with the disengagement. He said in early 1989, after negotiations based on recommendations of the disengagement counsel, the contractor, MK Ferguson, took over the existing construction materials and equipment and released the Authority from any claims it had against it. He said on May 2, 1989, the Board heard a report from the disengagement counsel concerning the City's legal obligation to repay the bonds. He said on May 16 the Board accepted an offer by the Chamber of Commerce to form a citizens committee, independent of the Chamber and Board, to consider unresolved disengagement issues. Martin said on July 18 the Board heard a report from the committee. Martin explained the public hearing was called to receive input on the recommendations of the committee, copies of which were made available to citizens in the audience. Martin said the committee recommended: 24£ 1) that the City pay off the bonds and avoid default; 24E 4 2) that sanitation rates be raised immediately by an amount sufficient 24E to pay off the bonds; and - 3) that measures be taken to reduce the sanitation rates from the 24E increased levels by dedicating excess sales tax revenues and securing legal recovery from other parties Kevin Crosson, Assistant Administrative Services Director, said the staff had 24E been working closely with the committee and concurs with their recommendation. He said they concur with the committee's recommendation that the increase should not exceed the $2.40 residential rate and the $3.78 commercial rate on the ballot. He said the staff would be recommending the rates be raised to pay off the incinerator debt, and use a bond payoff date of 2003. He said, in addition, they will recommend an operational rate increase to cover current solid waste operating costs. He said the City currently charges a $5.50 monthly residential sanitation rate and, at this rate, the Sanitation Fund is running in a deficit situation. He said the last rate increase was in 1982. He said, for 1988, the deficit was running at approximately $360,000 and, in 1989, it is projected to be well over $600,000. He said, regardless of the Board's actions concerning the incinerator payoff, rates will have to be increased to fund current operations. Crosson explained the recommended increases as follows: Current Proposed Incinerator Monthly Monthly Payoff Rate Rate Increase 1 $5.50 $8.67 RESIDENTIAL: $9.90 AVERAGE COMMERCIAL: $15.71 • ` $2.02 $3.21 Operational Increase $2.38 Total hawse $4.40•; 24E $3.83 $7.04 24E August 1, 1989 249.1 The Mayor told the audience that each person wishing to speak should come to the podium, introduce themselves and give their place of residence. He asked that each speaker limit their comments to five minutes. 249.2 Senator David Malone, Chairman of the ad hoc committee, pointed out that we were dealing with monthly rates and that the amount of incinerator payoff increase reflects costs before any of the recommended reductions are taken off, such as application of sales tax or legal recovery. 249.3 Leland Hamilton thanked those who served on the committee and said they did a fine job. He pointed out that the committee was a very selected group which contained no low-income, fixed-income or low -moderate -income representatives. He said one citizen who was asked to participate by a City Director was advised he could not serve because he was an elected official. Hamilton said it was ironic that the Chairman was a State -elected senator. Hamilton said he attended all but one of the committee meetings. He said citizens were allowed to give input on one occasion, but said the Chairman took up most of the time pointing out what the committee was and was not to do. He said the committee was told up front by the Chairman "we are not concerned about who was at fault, about who's right or wrong, it is our job and only job to figure out a way to pay for this thing." Hamilton said he agreed the City of Fayetteville was "in a hell of a mess" but said unless we have time to discuss these matters and unless the Directors are given the benefit of all of the information, he asked how you could possibly judge if you don't have all the information. Hamilton said the City's counsel, Tom Ingoldsby, was asked questions by the committee regarding "was it constitutional," "were there problems," "did someone do something wrong" but, while attempting to address them, was "shut down" by the Chairman who said "it's not our concern." Hamilton said he thought it was the concern of all the citizens of Fayetteville, remarking "why should we have to tote the note for the ill doings or misguided acts of those of previous administrations, whether they be well intended or otherwise." Hamilton said a 1985 letter states "this payoff is illegal, unconstitutional and the citizens of Fayetteville do not owe it." 249.4 Al Vick asked how many people on the City Board understand what it's like to be a low-income person suddenly hearing about paying $9.90 per month. He said he knew people who have become unemployed and who have to make decisions about whether to pay a utility bill or whether to put a little food in the refrigerator. Vick said when we consider that the whole thing is unconstitutional, that the committee was never allowed to address the fact that someone else might be responsible, "it's really a hard pill for low-income people to swallow." 249.5 John Lewis, resident of Fayetteville, commended and endorsed the committee's findings and recommended the City Board adopt their findings. He said he agreed with Vick, commenting that it was regrettable and a horrible thing, and that we were sending $7 million out of our city. He said if we don't do that we'll never have any outside money come back in the city, and we'll see a degradation of all the city services, such as streets, sewer and water services. He said to him it was a question of who and when it is paid. He said i'ie cannot pay it and see our City slowly die, so our children get to pay it, or we can pay it ourselves. He said no one likes it, but it is something he thought we must do. 1 August:1, 1989 Oscar Leverenz, resident of Fayetteville, said he was a retired managing partner of Arthur Anderson & Company. He said he had dealt with lawyers and been personally sued for $400,000 million in a situation just like this, only because hewas representing the firm. He said he took issue with John Lewis, stating that all of the $7 million would not go out. of the City. He said a lot of the citizens in this area buy bonds. He said he would like to know if the statement being made that this is unconstitutional is a professional opinion or a layman's opinion. Joe Robson, Fayetteville resident, said he agreed with everyone's comments. He said Louis Watts [former Project Director] told him the City had lent the Authority around $600,000. He said he agreed it was very unfortunate and he didn't want to see a degradation of City services, but at the same time he didn't want to see a degradation of the constitutional and statutory protections that exist in this case. He said the Nixon, Hargrave, Devans and Doyle report states "the report does not consider whether any parties. other than the City are legally obligated to pay the debt service on the bonds." Robson said he thought this indicated that nothing else was looked into. He added that the report cost the City around $10,000 a page, including 3 1/2 pages of graphs. He said he didn't agree with the committee report, stating he thought we had a constitution we ought to abide by. He said the Authority is an incorporated quasi -governmental entity and was empowered by Act 699 to issue the incinerator bonds. He said the City no. more had the obligation to pay off the debt than it does to pay off the debts of the City of Springdale. He said the State constitution specifically prohibited "the lending of the credit of any municipality for any reason whatever." He said citizens were protected from being forced to pay illegally incurred debts and debts incurred by other entities. He said nearly a decade of preliminary work preceeded the project and just 21 working days before the bond indebtedness was finalized, the FGIC asked for an unconditional agreement from the City. He said if you present the argument that the City residents on March 8, 1988 agreed to pay off the debt, you have to acknowledge that they were not given the option of not paying for the project. He said if you make the argument that it will affect our credit rating, another equal argument is that it should no more affect our credit rating than if the City of Fort Smith defaulted, since the Authority is who has the legal obligation to pay, not the City of Fayetteville. He said the Authority purchased an insurance policy for over $500,000 which would pay bondholders and investors back if the Authority could not. He said he agreed the bondholders should be held harmless. .He said an argument has been made that we are morally obligated to pay the debt. He said it seemed to him that the City should do just that. He said the City still had the opportunity to do the right thing and let the insurance company pay the debt. Robson said the report addressed the question of whether. the City may be legally obligated to pay losses sustained by the Authority. He.said that agreement may be unenforceable "either because it violates constitutional restrictions on municipal indebtedness and lending of credit, or because making payments pursuant to the waste supply agreement without receiving corresponding service is not within Fayetteville's municipal powers." Keith Newhouse, resident of 1211 E. Ridgeway, July 18th when Attorney Cummings excoriated the and Doyle for charging unconscionable fees and He said he wished to direct him to Andrew Ziser said he was here the evening of firm of.Nixon, Hargrave, Devans not even knowing Arkansas laws. 's office which is investigating 250 250 25( 251.1 August 1, 1989 the very points, among others, to which Cummings referred. He said these texts regarding "hell or high water clause" and the constitutionality of the debt service on the bonds, were questioned by the very firm that he accused of ignorance. Newhouse said Cummings may be right in his interpretation of the bonds' legality or illegality, and said he was personally repulsed by the idea of sneaking out of a contract through a technicality - a contract pledging Fayetteville's good name, instigated by a duly elected board, advised by several lawyers, local as well as out of town. He said Cummings may also be right that a local attorney can be hired for the seemingly bargain fee of $50,000 a year. He asked if Cummings was suggesting he would do so and wind it up in short order. He said he was sure Cummings' fellow attorneys would vehemently change any prediction of the time this litigation might require. Newhouse said, as for Joe Robson's threat backed by two out-of-town contingency fee seekers, he was at a loss regarding Robson's true motives. He said Robson's veiled threats, made on the steps of City Hall on June 4, of uncovering liability on the part of many people, smacks of a vendetta. He said Robson says he's bringing suit because Fayetteville city ratepayers should not have to pay 100% of this horrendous debt. Newhouse asked if Robson, as an elected Justice of the Peace, is wanting to make sure that the county and West Fork pay a proportionate share. He asked if Robson had thought through the possibility of the bond he might have to put up to file such an action. Newhouse said "What a Pandora's box these two men will open for the legal fraternity in Washington County, with suits, countersuits for fraud, character assassination --I'll let your imaginations play with that evil scenario. It will be a field day for the legal eagles. The bondholders will be paid, whether by Fayetteville or the insurance company. If the latter, then our city will be subject to a suit by the insurance company to recover its loss. Meanwhile, the city's business will be in limbo and its bills mounting with interest payments and defense lawyers' fees. I foresee nothing but more problems compounding the errors already made, leaving poor Fayetteville in a hole from which it won't emerge for years. I would hope that there are some among you who can help Robson and Cummings see the potential of harm they are threatening. There is absolutely no way to estimate the down -side costs of these litigations. Not just monetarily, but in prestige, divisiveness of the community, but deep bitterness over this whole mess. And whether a suit to recover some of the bond money should be started is a decision that this board must take when it has received the report from Andrew Ziser's office and we have a city attorney in place. Meanwhile, I challenge these recycling novices to prove that they can reduce costs in our waste program by recycling, because we're back to square one regarding our solid waste problem. Believe me, the cost of landfill is going up everyday in every aspect of its use. Remember, the incinerator would have reduced the volume by 75% to 80%, and did include a recycling program. I stringly urge that we all cool it, and believe that the board must get on with paying our obligations." John Quinn, resident of Fayetteville, said he appreciated the fine work of the task force. He said in his estimation they represent a good cross section of our citizenry, he endorsed their consensus opinion of the direction in which we should head. He took exception to a remark made that Fayetteville was in a terrible mess. He said our city would not ever be in that kind of mess so long as we have dedicated citizens who will offer their time freely to resolve these types of tough problems and make good decisions. He said so long as the Board continues to listen to volunteers, so they can feel gratified at the free time August 1, 1989 • they are giving, we'll continue to get good quality task force representation and good decisions. Mike Phillips, resident of Fayetteville, said he has been in the investment 252 banking business since 1963. Hesaid he didn't think defaulting is a reasonable alternative for the City to take. He said we would pay more if we default. He said our contract with the insurance company was not to pay off the bonds, if you didn't pay them. He said one of the conditions of that insurance contract was the agreement which was signed and was authorized by the previous City Board. He said that if the City considers default, it will be turning its back on a path of progressive government which he said could lead to good industry locating in Fayetteville and manageable growth that will provide jobs for all those that want jobs, will provide an expanding tax base, there will be more sales tax revenues to pay off the debt. He said he wouldn't tell the Board they can grow their way out of the problem, but would tell them for sure they can't shrink their way out of it. Rick McCullough, resident of Fayetteville, recommended the Board adopt the committee's proposal. He said default was just not an option and would be very expensive. 252 J. E. McClelland, resident of Fayetteville, endorsed the work by the committee. 252 He said he felt nothing was to be gained by finger -pointing and grousing over the situation. He said we were in it, we needed to solve it the best we can, and get on with the business of operating the City. He urged the Board to aggressively, and with dispatch at the earliest, to adopt the report and to proceed to put the City back together. There being no further comments, the public hearing was closed. 252 The Mayor encouraged the public to contact the Board by telephone or in writing, 252 and to come to Board meetings. He said the staff would be asked for a recommendation. He said the Board would consider all comments which have been made in deciding how to deal with the issue. CONDEMNATION/UTILITY RELOCATION The Mayor introduced Item 1G which had"been removed from the Consent Agenda at 252 the request of Director Marinoni - A.resolution authorizing condemnation of two tracts of land necessaryfor the utility relocation project at Highway 71. and Cato Springs Road. He said the City Manager recommended approval of the resolution, since both property owners have refused the City's offer to purchase the property at its appraised value and have made no counteroffers. He explained that one parcel, known as. Tract G, consists of 0.05 acre, and is appraised at $400:00, and that an offer of $420 (including compensation for a temporary construction easement) was made to the property owner. He,said the other parcel, known as Tract D, consists of 0.09 acre, and is appraised at $270, the amount of the City's offer. Martin said the. budget., contained $2,500 for these purchases. . August 1, 1989 Marinoni said his concern was about the property values. He said Tract G, at 0.05 acre, appraised at $400, translates to $8,400 per acre, while Tract D, being 0.09 acre, appraised at $270, translates to $3,000 per acre. He said both tracts were at a major intersection with commercial potential, and the dollar figures were considerably out of line. He asked the staff if the City was buying a deed to the property or simply an easement. Planning Management Director John Merrell said it was intended to be the purchase of an easement. Marinoni said if the City condemned the property the dollar value of the land would be set by the courts. 253.1 It was moved by Kelley and seconded by Marinoni to approve the resolution. 253.2 Lamar Pettus, attorney, said he represented Martha Alton, owner of Tract D. Pettus said it was understanding the City is not condemning a right-of-way easement for the extension of utilities, but that the City has made an agreement with the Arkansas State Highway Department to put a pipe under the proposed Highway 71 relocation, and is asking to condemn two pieces of property on each side of the already existing right-of-way, and there are no plans to install sewer. He said if the City is condemning a sewer line there is no sewer there and none is proposed at this time. He said City Right -of -Way Agent Bert Rakes advised him the reason for the condemnation was in case someone wanted to buy the Alton farm and subsequently develop it for commercial purposes, and then they would be required to install sewer, and it would be nice to have the pipe under the existing highway. Pettus said Mrs. Alton was approached by SWEPCO since the highway took the middle out of her farm and, after negotiations, agreed to give them right-of-way. He said after that, Ozarks Electric requested an easement. Pettus said he suspected eventually the telephone company may want an easement. He said he suggested to Rakes and Ozarks Electric that all the utility companies get together and negotiate the sale of an easement, because her property is being taken 25 and 50 feet at a time. Pettus asked if there were any plans to install sewer on the south side of the Higway 71 bypass within the next few years. 253.3 City Manager Pennington said there were no plans and that was why the City was now working to develop both a water and sewer plan for potential expansion in the western area. Pettus said it was their position then that there is no necessity for the easement. He said Arkansas statutes allow the City to lay pipes and lines under Arkansas highways and he thought you could make arrangements with the federal government to put lines under the highway without any necessity to take any additional property from Mrs. Alton. 253.4 Pettus said about six months ago Mrs. Alton and others came before the Board because their water lines were rotting on Sunrise Mountain, and the City asked them to form an improvement district. He said Mrs. Alton is not interested in working with the City Administration if they aren't interested in working with her. He asked the City Board to direct the City Attorney, before he gets an Order to condemn her property, to notify Mrs. Alton in advance. He said they felt there was no necessity and the City is not authorized to condemn her property at this time. 253.5 Public Works Director Bob Kelly said the conduit under the highway is a requirement from the State Highway Department. Mayor Martin asked if the conduit • 1 August 1, 1989 ;. ± ': could be put under the highway without taking property on either side. Kelly said the footage on either side is required by the State Highway Department. Director Kelley said the agenda indicated there was no response from the property owner and he assumed there was no objection, since no counteroffer had been made. He said Pettus made an interesting argument and he would at least like there to be some conversations between City staff and the property owner, and then a recommendation. He said he wanted to make sure we knew we were doing the right thing. Public Works Director Kelly said it would be appropriate to postpone it until the next meeting. It was moved by Martin and seconded by Kelley to table the issue until the next meeting. Upon roll call, the motion passed, 5-0, Directors Green and Lancaster being absent. LEGAL COUNSEL 4 The Mayor introduced a request from the City Manager for authorization to hire local legal counsel to provide legal services in connection with the City's withdrawal from the solid waste incinerator project. The Mayor said this item was requested to be removed from the agenda by the City Manager. REZONING/HATFIELD The Mayor introduced an ordinance rezoning property as requested. in rezoning petition R88-19, as follows: Size of parcel: .81 acre Location: West side of Lee Petitioner: Jim Hatfield Change requested: From R - Commercial" Planning Commission action: Avenue 1 "Low Density Residential" to C-2 "Thoroughfare Recommended approval, 6-0 The ordinance was read three times on November 1, ,1988, amended to R-0 "Residential Office"; tabled on November 15 and December 6 at the request of the petitioner; and referred back to the Planning Commission on July 5, 1989. The Commission voted to reconsider the petition in a public hearing on July 24, 1989. • t = - s. r At the hearing, Hatfield offered a Bill of Assurance dedicating property on the northeast corner of the lot to the City. No public opposition was expressed and a motion to recommend rezoning to C-2.passed by a.vote of 6-0, Commissioners Klingaman, Ozment and Seiff being absent. 254. 254 254 254 August 1, 1989 255.1 The following is the recommendation of the Planning Management Director: 255.2 The staff notes that Mr. Hatfield has obtained a letter from the law firm which represents the owners of the Consumers property. This letter authorizes access to and from the Consumers parking lot. 255.3 The staff feels that Mr. Hatfield's proposed business will have an impact on Lee Avenue and on the possible extension of Stubblefield/Bertha through to North College. The staff recommends that the Board rezone the subject property to C-2 provided that Mr. Hatfield will offer a Bill of Assurance to: 1) dedicate land for sufficient right-of-way across the northern portion of Lot 1 to improve traffic flow in this vicinity and; 2) dedicate sufficient right-of-way at the southern edge of the subject property to accommodate the construction of Stubblefield/Bertha. 255.4 If the rezoning is approved, Mr. Hatfield may proceed with filing a building permit application. The staff will review his application and site plan in order to determine to what extent Article IV, Section J of the City's Subdivision Ordinance is applicable. This section states in part: 255.5 "The developer shall...install street paving, curbs, gutters, and sidewalks necessary to bring the street into conformity with all existing City standards. The developer shall be required to bear the portion of the cost of said improvements which bears a rational nexus to the needs created by the development." 255.6 The City Prosecutor advised the Board that the ordinance was left on third reading, having been amended to R-0 zoning. Martin, seconded, by Marinoni, moved to amend the ordinance to C-2 zoning. 255.7 In answer to a question from Director Vorsanger, Planning Management Director John Merrell said Hatfield stated at the Planning Commission meeting that he would be willing to offer a Bill of Assurance on the dedication of a portion across the northern part of Lot N1, to provide a street connection between Lee Avenue and Consumers Market. Hatfield concurred with this. Director Marinoni asked if Hatfield was willing to offer a second Bill of Assurance for access off the south part of the lot. Hatfield said that he had no idea, until the Planning Commission meeting, that there was any discussion about upgrading Stubblefield Road. He said it seemed a long way off, would be quite expensive and didn't seem feasible at the time. Planning Director Merrell said the City proposed to include the project for consideration in the five year capital improvement program 255.8 The Mayor asked if anyone present wished to speak in opposition to the ordinance. There being no public comments, upon roll call, the motion passed, 5-0. Upon roll call, the ordinance passed, 5-0. ORDINANCE NO. 3440 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 7 1 1 August 1, 19891:r WARD BOUNDARIES The Mayor introduced consideration of an ordinance redistricting the wards in 25E the city of Fayetteville, left on first reading on July 18. He said the City Manager recommended approval, and that the proposed changes in ward boundary lines, recommended by the Chamber of Commerce Ward Boundaries Task Force, is intended to more nearly equalize the population in the four Fayetteville wards than is now defined by current ward boundaries. City Prosecutor read the ordinance for the second time. Director Kelley asked if the staff had received any public input. The City 256 Manager said he had received none. President of the Chamber of Commerce, Dale Christy, stated he had received no information or questions from the public. Vorsanger said he received one letter and it was positive. Kelley said, due to the lack of response, he thought the ordinance should be moved on to its third reading. Kelley, seconded by Vorsanger, moved the rules be suspended and the ordinance placed on its third and final reading. Upon roll call, the motion failed, 4-1, with Martin voting against the ordinance (five votes being necessary to suspend the rules). The Mayor said any citizen who wishes to, should speak to the Board, staff or Chamber before the next meeting. He said he voted against the motion because he thought citizens were left with the impression the ordinance would be left on its second reading at this meeting. REHAB PROGRAM AMENDMENT The Mayor introduced a resolution authorizing amendments to the Community 256 Development Residential Rehabilitation Program Policies and Procedures. He told the Board that the following amendments are proposed and recommended by the City Manager: That the Deferred Payment Loan Program, currently available to persons 60 256 years of age or older who are at or below the HUD very low income schedule, be expanded to included disabled or handicapped heads of households. Eligibility would be determined by CD staff based upon certification of the disability or handicap; That the ten-year term of the loan write-off be -reduced to five years; 256 and s,- That persons operating small businesses in.their homes be eligible for the 256 3% Loan Program Director Marinoni, seconded by Kelley, moved to approve the resolution. 256 1 Planning Director Merrell told the Board ,that this would apply only to 256 businesses in a home allowed under the home occupation regulations of the zoning ordinance. 257.1 August 1, 1989 Upon roll call, the motion passed, 5-0. RESOLUTION 65-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK BID WAIVER 257.2 The Mayor introduced an ordinance waiving the requirements of competitive bidding and authorizing the Mayor and City Clerk to execute an Employee Assistance Program contract with Charter Vista Hospital. 257.3 The Mayor said the City's current Employee Assistance Program with the University of Arkansas Psychological Clinic expired June 30, 1989 and that no bids were received in response to the City's advertisement for competitive bids in May. He said City staff contacted Charter Vista to negotiate a contract at a projected cost for a one-year period of $4,200. He said the cost for the remainder of 1989 would be $1,750 and the City Manager recommends approval, with the 1989 budget containing $3,543 to cover the cost. 257.4 257.5 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, 5-0. The ordinance was read for the second time. Director Marinoni, seconded by Kelley, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion passed, 5-0. The ordinance was read for the third time. Upon roll call, the ordinance passed, 5-0. ORDINANCE NO. 3441 APPEARS ON PAGE ?Jr OF ORDINANCE AND RESOLUTION BOOK XXV BID WAIVER The Mayor introduced an ordinance waiving the requirements of competitive bidding and awarding a contract to design and oversee installation of the Sewer Lift Station Telemetry; and a request for a budget adjustment. 257.6 He said the City Manager recommends award to ETC Engineers, and approval of the budget adjustment. He said the contract price is proposed to be $63,718 and it is recommended that $60,000 of the needed funds be transferred from funds budgeted for OMI's contract which were intended for this purpose. 257.7 The ordinance was read for the first time. Director Kelley, seconded by Marinoni, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed, 5-0. 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, 5-0. The ordinance was read for the third time. 1 August 1, 1989 r, In answer to a question from Director Marinoni, Public Works Director Kelly explained that originally OMI was responsible for the lift station maintenance and repair and the money was funded under OMI's budget for 1989. He said there was an apparent misunderstanding by CH2M Hill and they prefer to not have ETC work under their contract. He said the qualifications were competitively bid in January for telemetry, but lift station telemetry was not included in that contract because it had been covered under OMI's contract. Kelly said that only $60,000 is requested for the budget adjustment because the $3,718 is budgeted in the original contract. Upon roll call, the ordinance passed, 5-0 ORDINANCE NO. 3442 APPEARS ON PAGE /03 ENGINEERING SERVICES OF ORDINANCE AND RESOLUTION BOOK XX ✓ The Mayor introduced consideration of'the award of contract for engineering services relating to the construction of Armstrong Avenue from Commerce Drive at the Industrial Park south to the City limits. The Mayor said the City Manager and staff Selection Committee, in accordance with the Professional Services Policy, recommend award to CEI Engineers of Rogers, Arkansas, one of five firms submitting proposals. He said the price proposed is $13,075.00 and that engineering fees were estimated at $15,000- $20,000, with a total of $155,400 budgeted for the entire project. It was moved by Marinoni and seconded by Kelley to approve the award of 258 contract. 25E 25E 25E 258 Mayor Martin stated that his employer, Arkansas Western Gas Company, has a Bill 258 of Assurance which would be called in the matter and he therefore would be abstaining from discussion and vote. • In answer to a question from Kelley, City Manager Pennington stated the project 258 would be completed with the balance in the budget, with current projections. There being no public comments, upon roll call, the motion passed, 4-0-1, Martin abstaining. • PRIVATE COLLECTOR CONTRACTS The Mayor introduced a resolution authorizing the Mayor and City Clerk to execute contracts with Northwest Arkansas Waste Management, Inc., and Sunray of Arkansas, Inc., authorizing the firms to collect garbage and trash from certain establishments within the City. f _ The Mayor said that in accordance'with the City Code of Ordinances, both firms entered into contracts with the City which are to expire..on July 31, 1989. He 258 258 258 259.1 259.2 August 1, 1989 explained that the contracts grant private collectors the right and privilege to collect and dispose of garbage and trash from commercial and industrial establishments and construction contractors, where specialized services are required which the City cannot provide. He said the resolution would extend the current contracts for a period of sixty days. It was moved by Kelley and seconded by Marinoni to approve the resolution. Director Marinoni asked why the new contracts were limited to a period of 60 days. City Manager Pennington responded that during the sixty days the City will be looking at our services as they relate to operating costs and looking at what will happen if the Board takes action on sanitation rates. He said the City did not want to extend the contracts beyond the 60 day period if at all possible. Marinoni asked if there was a chance the City might be able to provide the services now being offered by the firms. Pennington said the City was not considering that, but was looking at how our proposed rate structure is going to impact the contracts. 259.3 There being no public comment, upon roll call, the motion passed, 5-0. 259.4 RESOLUTION 66-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK OTHER BUSINESS INCINERATOR DISENGAGEMENT Director Vorsanger said he wanted to make sure the many citizens who called and wrote regarding the disengagement could have their comments and letters recorded in our official minutes. He noted that Fran Alexander had submitted a statement, as well as Ellen Traxell who submitted a petition on behalf of senior citizens. Vorsanger said the City Manager had told him that we could possible work out something for the elderly in our city on fixed incomes, concerning the proposed rate increase. ADJOURNMENT The meeting was adjourned at 9:10 p.m.