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HomeMy WebLinkAbout1989-08-15 Minutes1 MINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on Tuesday, August 15, 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., and Fred Vorsanger; City Manager James Pennington, City Prosecutor Terry Jones, City Clerk Suzanne McWethy; members of the staff, press and audience ABSENT: Directors Ernest Lancaster and Shell Spivey CALL TO ORDER The meeting was called to order by the Mayor, with five Directors present. The 262 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, and those • 262 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 speakintroduce 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 The City Manager presented a report to the public and.,Bbard for the month of July. City Manager Pennington reported, for the month ending July 31, revenues exceeded expenses by $370,924, compared to last month's when revenues over expenses were $1,189,113. He said that was a result of adjustments to correct double booking of EPA construction grants. He said revenues to budget were essentially in line with projections, with expenses higher than revenues. He said we budgeted for the gap from reserves. 262 ADMINISTRATIVE SERVICES DEPARTMENT Pennington reported new Personnel Officer Don Bailey had -been with the City now 26; for a few months, and the program is moving along very successfully. He said, with the addition of the new City Attorney as of August 28, for the first time in two years, the City will have all department and division heads in place. Pennington said the City Nurse position was first proposed to the Board in the 26: fall of 1987, with the thinking this would help :reduce workers' compensation claim costs. He said there has been a 40% reduction in the City's loss ratio since the City Nurse position was created, a,littleover $100,000 in estimated savings to the City. • Pennington reported the Personnel_Division had initiated a serious effort in 26: the "drug free work place program " He said all City employees were asked to sign statements. • 263.1 Pennington reported a new Purchasing Officer had been hired - Peggy Bates - who reported to work about three weeks ago. ANIMAL SHELTER 263.2 Pennington reported, as of the end of July, there were 1,023 county animals entering the Animal Shelter. He said to date 35% of the animals at the Shelter have been county animals. POLICE DEPARTMENT 263.4 Pennington reported 24 persons were arrested in July on 31 drug-related charges, 13 of which were felony charges, and 18 of which were misdemeanors. Pennington reported the City employees now have their own City newsletter and the Police Department wrote an excellent article on rape prevention. He said the department has received pamphlets on rape protection and have distributed these to neighborhood groups, particularly neighborhood watch groups which have seen films on rape prevention. FIRE DEPARTMENT 263.5 Pennington reported a small amount of fire loss in July. He noted the Hazardous Materials Program formed last year responded to five incidents in July, all of which turned out to be minor. INSPECTION DIVISION 263.6 Pennington reported the City's concentrated code enforcement program is currently underway and Inspection Office staff is devoting approximately 16 hours per week to the program. He said such programs have been used nationwide since the 1960s and the idea is to make people aware of the condition of the property, and then try to get them some assistance if it is available and they are willing to accept assistance, in order to rebuild the community. PUBLIC WORKS DEPARTMENT 263.7 Pennington reported the Old Wire Road and Township Street intersection project is hoped to be completed in three weeks, at which time a traffic signal will be installed. 263.8 Pennington reported the architectural engineering work on the Youth Center Pool is now underway and the first report is due in August. 263.9 Pennington reported the work order has now been issued for the installation of odor and corrosion control facilities, to be completed by late August. 263.10 TAXI PROGRAM Pennington reported the taxi program continues to be effective and additional Community Development funding will be proposed to bolster the program because of its success. August 15, 1989 TRAFFIC SIGNS Pennington reported, during July, the Traffic Division repaired 105 vandalized signs. He said it was extremely expensive to taxpayers every time a sign is vandalized. URBAN TRANSPORTATION PROJECTS 264 Pennington reported two projects have received Urban Transportation funding - 264 which will be paid for by the Highway Department with matching money from the City. He said these were projects on Razorback Road and North Street. Pennington said the City had been notified that it cannot have two urban projects going at the same time, but said the City would try to discuss this with the University and the Highway Department to show how important both projects are to the City. FINANCIAL STATEMENTS Director Vorsanger noted a deficit of $362,427 in General Fund revenue over expenses for the period ending July 31 and noted the Street Fund shows revenues over expenses of $153,934. He said Water and Sewer revenues over expenses show $977,081, and sanitation revenues over expenses are shown at $223,254. Vorsanger asked if this meant that the sanitation fees income is not covering our operations. He asked what relationship these figures had to the combined revenues and expenses report which shows revenues over expenses of $370,924. 264 Assistant City Manager Scott Linebaugh said, of the over 30 Funds in existence, 26' only the major funds are shown in the financial report. He said, in addition, there is a lot of capital revenue not shown in the major funds. 1110 Vorsanger said there is an overall positive fund balance for the seven-month 26' period but pointed out we have some real major problems which he said he hoped the Board would address. .t CONSENT AGENDA 1 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 approvedsimultaneously 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. Minutes of the August 1, 1989 regular Board meeting; 264 B. Approval of a budget adjustment, in the amount of $12,343, to 264 complete payment of the Shadowridge sewer project; 26Z 265.1 265.2 265.3 August 15, 1989 Funds are recommended by the City Manager to be taken from capital water line projects where funds are available because projects came in under -budget. C. Consideration of the award of Bid #89-32, for the purchase of one passenger vehicle 4 -door sedan, and a request for a budget adjustment; The City Manager recommends award to Lewis Ford Sales, the only bidder, submitting a bid of $12,618.40. Funds are available to be transferred from those budgeted for the purchase of backhoe loaders which came in under -budget. The vehicle is intended to replace a staff car which was storm - damaged. D. A resolution authorizing the Mayor and City Clerk to execute a one- year lease agreement with The Executive Inn of Springdale, for advertising display space No. 5 at the Fayetteville Airport Terminal Building; RESOLUTION The City Manager recommends approval of the lease, which contains a provision to extend for up to five additional one- year terms. The term of the lease is from September 1, 1989 through August 31st, 1990, at a rate of $80 per month. 67-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK E. A resolution authorizing the Mayor and City Clerk to execute a one- year lease agreement with the Executive Inn of Springdale, for advertising display space No. 30 at the Fayetteville Airport Terminal Building; The City Manager recommends approval of the lease, which contains a provision to extend for up to five additional one- year terms. The term of the lease is from September 1, 1989 through August 31, 1990, at a rate of $80 per month. RESOLUTION 68-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 265.4 F. A resolution authorizing the Mayor and City Clerk to execute a one- year lease agreement with the Executive Inn of Springdale, for direct -dial telephone space No. 6 at the Fayetteville Airport Terminal Building; The City Manager recommends approval of the lease, which contains a provision to extend for up to five additional one- year terms. The term of the lease is from September 1, 1989 through August 31, 1989, at a rate of $20 per month. RESOLUTION 69-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 1 1 August 15, .1989,a G. A resolution authorizing the Mayor and City Clerk to execute a one- year lease agreement with the Holiday Inn Convention Center of Springdale, for direct -dial phone space No. 5 at the Fayetteville Airport Terminal Building; The City Manager recommends approval of the lease, which contains a provision to extend for up to five additional one- year terms, and a rate of $20 per month. RESOLUTION 70-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK A resolution authorizing the Mayor and City Clerk to execute a one- year lease agreement with Randolph Boyd, for space No. B-5 in Aircraft Hanger B at the Fayetteville Airport; The City Manager recommends approval of the lease, which contains a provision to extend for up to five additional one- year terms. The term of the lease is from August 1, 1989 through July 31, 1990, at a rate of $115 per month. RESOLUTION 71-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK I. A resolution authorizing the award of contract for a pay plan study, and a request for a budget adjustment; The City Manager and Selection Committee, following a review of twenty proposals, recommend the:award of contract to The Hay Group, proposing arnot-to-exceed fee of $60,000. The committee consisted of City Director Fred Vorsanger, Recycling Coordinator Scott Smith, Staff Administrator Lance Heater, Police Chief Richard lAlatson,, Fire Chief Mickey Jackson, Personnel Officer Don Bailey and Asst. Administrative Services Director Kevin Crosson. i' The budget adjustment, in the amountrofr$60,000, is recommended to be taken from the Workers' Compensation Premium Tax Account which has funds available because of reduced premiums in 1989. RESOLUTION Ste 72-89 APPEARS ON PAGE" OF ORDINANCE J. A resolution authorizing the adoption of Professional Services Policy; RESOLUTION a AND RESOLUTION BOOK Competitive Selection of The City Manager recommends approval of the policy which would replace the City's existing Professional Contract Policy, because of the adoption of Act 616 of 1989. 73-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK K. Approval of a budget adjustment to cover.the cost of motor pool charges and vehicle maintenance in the Solid Waste Division; 26' 26E 26E 26E 26E 267.1 267.2 August 15, 1989 The City Manager recommends approval of the adjustment, in the amount of $18,000, to be taken from Unreserved Fund Balance. L. Consideration of the award of Bid #89-31, for property, auto, boiler & machinery, law enforcement liability, and public official liability insurance; and a request for approval of budget adjustments; The City Manager recommends approval of the following coverages: Public Official Liability Law Enforcement Liability Auto -Statutory Liability Boiler & Machinery Property The 1989 budget contains the Public Official Liability Law Enforcement Liability Auto -Statutory Liability Property/Boiler & Machinery Rebsamen & Co. Rebsamen & Co. Municipal League Rebsamen & Co. Eason & Co. following funds: Actual Cost $ 9,116 28,261 26,675 35,021 $ 9,116 28,261 100/vehicle 4,389 30,632 Budgeted $ 8,622 26,561 1,840 50,940 Due to an error, funds were not budgeted to cover auto insurance. The City Manager recommends a budget adjustment in the amount of $26,875 to fund auto and property insurance, to be taken from available funds in the Capital Account. Budget adjustments are also recommended in the amount of $494 for Public Official Liability, to be taken from the City Manager's Professional Services Account, and $1,700 for Law Enforcement Liability, to be taken from the Police Department's Contract Services Account. M. A resolution authorizing the Mayor and City Clerk to execute a lease agreement with the Fayetteville Humane Society; The Humane Society serves as the City's agent for enforcing the City's animal control ordinances and operating the City's animal shelter. The City and the Society propose to share in the cost of constructing a new animal shelter on City property west of the existing animal shelter site. The agreement will lease the property to the Society, who will agree to use the premises solely for the purpose of constructing, operating and maintaining an animal control shelter. The City Manager recommends approval of the lease, which provides for a rental rate of $10 per year, for an initial term of 20 years, with options to extend for up to three additional 20 -year terms. The Society would pay all real estate taxes, August 15, 1989 utility costs, and will be responsible for certain insurance coverage. The City would be responsible for all maintenance at the new animal shelter. Director Marinoni requested the removal of Item M from the Consent Agenda. It was moved by Director Vorsanger, and seconded by Marinoni, to approve the Consent Agenda, with the exception of Item M. Upon roll call, the motion passed, 5-0, Directors Spivey and Lancaster being absent. HUMANE SOCIETY LEASE The Mayor introduced consideration of Item M of the Consent Agenda: A resolution authorizing the Mayor and City Clerk to execute a lease agreement with the Fayetteville Humane Society; The Mayor explained the Humane Society serves as the City's agent for enforcing the City's animal control ordinances and operating the City's animal shelter. He said the City and the Society propose to share in the cost of constructing a new animal shelter on City property west of the existing:animal shelter site. He explained the agreement will lease the property to the Society, who will agree to use the premises solely for the purpose of constructing, operating and maintaining an animal control shelter. The Mayor said the City Manager recommends approval of the lease, which provides for a rental rate of $10 per year, for an initial term of 20 years, with options to extend for up to three additional 20 -year terms. The Society would pay all real estate taxes, utility costs, and will'be responsible for certain insurance coverage. The City would be responsible for all maintenance at the new animal shelter. It was moved by Kelley and seconded by Vorsanger to approve the resolution. f ' Director Marinoni said he had two problems with the lease, the first problem being the 20 -year term of the lease, with three successive 20 -year renewals. He said he knew of no other lease the City had with anyone for twenty years. He said he had a letter from the Humane Society which contained language which sounded as though they were building the;new facility themselves, and which announced a meeting for August 24 to consider the renaming of the Animal Control Facility. He said the new name would'be changed from the Fayetteville Animal Shelter to the Humane Society of the Ozarks. Marinoni said he opposed this and said he didn't see how the Society had the right to .change the name of the Shelter. He asked if it was correct that the Society planned to come before the Board to ask for approval to change the name. Les Howick, President of the Humane Society, -told the Board the meeting on August 24 was to change the name of the Society and had nothing to do with the name of the Shelter. He said the needs go far beyond the City of Fayetteville and must involve the cooperation of more than just one city, and the proposed name change is to adjust the goals of the Society to reflect those needs. 268 268 268 26£ 26 August 15, 1989 269.1 Director Vorsanger asked if there was any reason for the three additional 20 - year options in the lease. Howick said the attempt was to raise a good deal of the needed money, and they wanted people to know that money coming in is devoted to a long-term project. 269.2 Howick said the County has made a $25,000 commitment this year towards operations, contingent upon the name change of the Society and a plan for how things will operate. 269.3 Upon roll call, the motion passed, 5-0, Directors Spivey and Lancaster being absent. RESOLUTION 74-89 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK SANITATION RATE INCREASE/INCINERATOR PAYOFF 269.4 The Mayor introduced two ordinances to increase residential and commercial sanitation rates. He explained one ordinance would increase rates to retire revenue bonds issued in connection with the Northwest Arkansas Resource Recovery Authority incineration project; and the other ordinance would increase rates to compensate for increased costs of operations, as shown below: 269.5 Current Rates Incinerator Payoff Operational Total Proposed Increase Increase Rates RESIDENTIAL: $ 5.50 $ 2.02 269.6 COMMERCIAL (Average): $ 8.67 $ 3.21 $ 2.38 $ 9.90 $ 3.83 $15.71 269.7 At the request of the Mayor, the City Prosecutor read the ordinance to increase rates to pay off the incinerator project 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, Lancaster and Spivey being absent. The ordinance was read by the City Prosecutor for the second time. Director Kelley, seconded by Marinoni, moved to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion passed, 5-0, Director Lancaster and Spivey being absent. The ordinance was read for the third time. 269.8 The Mayor said the ordinance was the product of months of deliberation, including the Ad Hoc Committee report, and legal and -economic studies. The City Manager said the staff recommended the ordinance. 269.9 Director Vorsanger asked what we needed to do to call an election concerning the proposal to apply excess revenues from sales tax to pay off the incinerator. August 15, 1989,,4 He asked, if people vote to use that excess, and it is a substantial amount, if we could pay the debt off early, or wipe out the $2.20 sanitation rate increase. The City Manager said that, at the next Board meeting, the staff was prepared to present a recommendation that that question be placed on the ballot in November. He said it would be for the Board to decide whether to reduce the rate or pay off the bond issue early. Director Green said, in trying to do what is best for the City of Fayetteville, he based his decision on two basic criteria: (1) that whatever solution we have should try to preserve the credit and integrity of the City of Fayetteville for present and future generations; and .(2) that any solution must minimize the actual burden on Fayetteville citizens. Green said he felt the recommendations of the committee for this rate increase are appropriate and well within the estimate given to voters on the ballot. He said he thought it would serve as a clear indication to the bond:,trustee and bond insurance company that Fayetteville intends to live up to.its•obligations and pay its debts. He said he wished we didn't have to pass the rate increase, commenting that people with fixed incomes will have a lot of problem paying for it. He said he thought we should make absolutely sure we continue beyond the ordinance, specifically by following other rate reduction guidelines. presented by the committee, and at all costs should ask the people if they want to dedicate the excess sales tax revenue they voted on for capital improvements; and make sure this is presented to the people in a timely fashion. Green said Fayetteville didn't get into this mess all by itself, and said he thought we should ask the County and West Fork to pay their pro rata portion towards helping us retiretthe incinerator debt. Green noted the City also has a 1% sales tax used for City operations, and said perhaps some consideration should be given to dedicating sits excess revenue to retire the incinerator debt early. He pointed out the costs of.all city services are going up at the same time, noting that -sanitation .rate 'increases are just starting, operations landfill costs are increasing drastically, and water rates are increasing. Green said, if the ordinance passes, he hoped we were sending out a message to the bond trustees that we are going to put this issue behind us and Fayetteville is going to move forward. Green suggested there be no delay in trying to implement as many cost-cutting measures as we can, to offset not only the incinerator debt, but also for future rate increases. tax'revenues increase as they have money, not only to amortize the landfill cost increases and other Mayor Martin said it was clear that if sales been, we will have substantial amounts of incinerator debt, but also to offset future costs. Director Vorsanger said the City Administration has indicated they are looking into ways to identify the fixed income residents and make some concession so, when rate increases are put into effect, we will take considerations concessions for the elderly on fixed incomes., He said he thought that was a move in the right direction. Martin noted that Directors Lancaster and Spivey could not attend this meeting for personal reasons, and said Director Spivey had addressed a letter to the Mayor and asked that it be read at this meeting. Martin read the letter as follows: 27( 27( 27 27 27 August 15, 1989 270.1 Dear Mayor Martin: I want to apologize for not being present at tonight's meeting. I certainly do not want to have it interpreted that I am trying to avoid casting my vote on this most controversial issue. I said publicly when I was running for the Board that the real tragedy of the incinerator whether for or against is the way it has divided our community. We cannot continue to let this issue be the driving force within our city. The sad truth is there is no easy way out of our current situation. We are faced with deciding just what is the lesser of two evils - do we default on the bond issue and almost assure that we cannot market any rated bond issues in the foreseeable future - or do we pay a $7 million debt that may have been entered into illegally. My position is that we cannot Jeopardize our city's ability to issue long term debt obligations. The consequences of going on for an extended period of time without this ability would be devastating to our community. At a board meeting several weeks Mike Phillips with Llama Company gave an analogy of a pedestrian who, upon receiving a green light, steps into the path of an automobile which runs a light. The pedestrian may, in fact, have the right of way, but he will be "dead" and "right". Ultimately, it may be proven that the obligation was illegal, but we cannot Jeopardize our city's credit rating in the process. I am in no way suggesting that we forgive and forget. If this debt was, in fact, entered into illegally, we should aggressively pursue the parties that advised us to enter into such an agreement, as well as the parties who may have advised us to release the funds prematurely. Respectfully submitted, Shell Spivey, City Director, Postion 5. The Mayor asked if anyone present in the audience wished to address the Board. 270.2 Joe Robson said he thought it was a prevalent concern to want to protect the credit rating of the City of Fayetteville. He said there were other concerns about what a community is and what culture is, and whether or not what keeps a culture together are those rules that, when people abide by them, create some sustaining value system. He said these were clearly outlined in the Constitution of the State of Arkansas and in the Constitution of the United States. He said the Nixon, Hargrave report which cost the city $382,000, offered certain disclaimers to the effect that it did not look in particular directions because it was asked not to. He said in the report's concluding statement on page 37 it said that the waste supply 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 services is not within Fayetteville's municipal powers. He told the Board he signed a sworn oath and said he believed the Directors signed one too. He said the oath said "I, Joe Robson, do solemnly swear that I will support the Constitution of the United States and the Constitution of the State of Arkansas and that I will faithfully discharge the duties of my office." Robson said, while credit ratings are important, so is the Constitution and so are laws and there are a lot of less fortunate people than all of us who violate laws and pay very dearly for that. He said he didn't know that any person on the Board should pay very dearly and it was not his intention to make individuals pay. He said it was a matter of whether we are going to live in a town where we have elected officials who will abide by their sworn oath to uphold the Constitution of this State. He said he thought that was important and something the Board should consider one more time. August 15, 1989 Director Green said he didn't think any Director would wilfully or consciously violate any laws. He said, to his knowledge, the Board had never been told by any legal counsel or other advisors that anything they would do in order to pay off the incinerator has ever been determined to be unconstitutional. He said this has merely been suggested as a possibility. He said we know we can violate securities agreements if we don't fulfill the payment of the debt. Robson responded that the City has spent $382,000 on a law firm and asked them not to answer that question for the City. Martin said he disagreed, stating the law firm had clearly pointed out that there were legal uncertainties about the transaction, and was very clear in its written report that the waste supply contract, for instance, may be unenforceable. He said the report also said that if you borrow money under U. S. security laws and youtdon't live up to the warrants that you make under that law, there is no question that that's illegal. He said the question was, in his opinion, is the City of Fayetteville. liable. He said he had yet to hear any lawyer say that it is legal for the City to say "we're going to borrow money and repay it" and then not to repay it. Robson said he thought the Constitution was clear that lending of ,the credit means when a city. assumes the debt of someone else: He said the City,of Fayetteville didn't borrow this money. He said the Authority issued the bonds, not the City of Fayetteville. Robson said this was affecting the credibility of the Board and of the City Manager form of government. The Mayor said thekquestion of credibility here was not a clearcut one. He said some people feel: that credibility isbeing eroded and if the Board were to raise sanitation rates to pay offIthe bonds, there are some people who would say "credibility of this city government has been eroded." He said other people would say that if the Board does not pay off the debt which the elected officials of the City entered into, then the credibility is destroyed. Robson said his credibility has been affected to a certain extent. He said he was just a citizen who feels :a right and an obligation to participate and "I'm attacked personally, here even, by other City Directors in some ways." Director Kelley said Robson had also made personal attacks at the Board. Robson said he didn't remember ever attacking.a Board member but said he supposed that it has seemed that way. He said he certainly had taken issue with the project all along. He said, before a million dollars was spent he was here asking the Board to please stop. He said he felt like he wasn'tbeing listened to and thought a lot of other citizens felt the same way. He said he decided to run for public office on that basis. • Martin said the important thing was to.focus on the issue:and thought we had to leave personalities out of it. He said'he apologized to Robson if there had been personal innuendoes. He said what the Board had tried to do over the last year was to focus on issues and not personalities. He asked Robson if he was at the Authority.meeting where the bonds were authorized to be remarketed, in December of 1986. Robson said he was probably present. Martin said, ironically, of the present Board members, only two (including himself) were members of the Authority and were present at that meeting and that he voted against the issue. He said the.problem before the Board was inherited. He said seven of the eight elected officials on the Authority voted to incur the indebtedness. He said there was no groundswell against the issue and he thought our officials were representing us at the time. Robson said he didn't feel angry toward any individual and his 272 272 27: August 15, 1989 inherent Christianity wouldn't allow him to sustain an ugly feeling toward any individual, no matter what they did. He said he trusted every Director on that basis and allowed them to make their decision. He said he wasn't going to say what was going to happen as a result of the Board's decision, commenting that "it won't be done on a personal basis." 273.1 Director Vorsanger said he wasn't a part of getting the City into this thing, but when he ran for the Board he accepted the responsibility to be a City Director and to act at all times in the best interest of this City. He said this question about the incinerator has dogged us since the days he has been on the Board and said, whether we'll admit it or not, the incinerator was an excellent project for this city. He said we changed our minds on a non-binding vote. He said that didn't suit him but he was now willing to bite the bullet to do what he feels is right for the City. He said there was no question in his mind that the bond indenture clearly says that the full faith and credit of the City of Fayetteville is backing those bonds and if we don't take care of those bonds we lose that full faith and credit. He said he thought we were doing what we needed to do so that the people in Fayetteville will know that we are restoring some competency, honesty and credibility to this City and that we're going to move ahead and do what we need to do to make this a great city. 273.2 Robert Reus, Fayetteville resident, addressed the Board. He said he was a little uncomfortable with the location of the podium, saying he felt a little rude having his back to the audience. Reus respectfully requested the podium be returned to its original location. The Mayor said Reus' comments would be taken under consideration. 273.3 Reus said "to pay or not to pay" was the question. He said he didn't have any easy answers, but said the Nixon, Hargrave report essentially said that if we decide not to pay, the decision will be made by the Eighth Circuit Court in St. Louis. He said some other lawyers say lending of the indebtedness was illegal. He said we were going to lose whether we pay or don't pay. Reus said every time he opens up his utility bill in the future he will be reminded that the City Manager system of government has ultimately failed the people of Fayetteville to the tune of many millions of dollars. He said he thought it was time we all stood up and start thinking about reorganizing the City. He said he thought the Directors all had high ethical standards and he didn't hold any individual responsible. He said every one of the Directors was trying to do what they thought was best. He said he had been watching the system for awhile and feels when citizens are paying on a monthly basis for years and really getting nothing in return that was an indication the City Manager system has failed. He said he was going to start working on the problem. 273.4 Mayor Martin said there was an interesting alternative, that under some other form of government, a $22 million dollar project may have been built, mothballed or put out of commission by a public vote. He said he personally thought it was a victory for the City Manager form of government because under other forms of government this issue would never have been put up to a vote of the people. Reus said he thought with the Mayor Council form of government at least every neighborhood had a councilman and a Mayor and a form of checks and balances. He said the way it is set up now, four votes control the City, the Board tells the City Manager what to do and essentially "he goes on automatic" and does it 1 August 15, 19894 • to a certain degree as he pleases. He said he didn't feel the system was representative, he said the wards were too large and didn't really represent neighborhoods, he didn't believe in the at -large system of electing, and would like the chance to vote for a popularly elected mayor to set the stage for our future development. He said from his canvassing of many citizens, there was a very high rate of agreement with him. The Mayor said the last time the question was put to a vote the rate of agreement was in the minority. Reus said he recalled the turnout was very light and the vote was very close. Upon roll ORDINANCE call, the ordinance passed, 5-0. thc NO. 3444 APPEARS ON PAGE,./a2/ OF ORDINANCE AND RESOLUTION BOOK X XI.,/ 44. SANITATION RATE INCREASE/OPERATIONS COST The Mayor asked the Prosecuting Attorney to read the ordinance to increase sanitation rates to cover the cost of operations. The ordinance was read for the first time.. Director Marinoni, seconded by Kelley, moved to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion failed, 4-1, Director Green voting in the minority (five affirmative votes being necessary to suspend the rules). t Director Green said it seemed obvious to him that this was a very untimely rate increase. He said he knew we were operating in a deficit and we've needed some type of relief for a long time. He.said the'.main problem he had with this was that our whole sanitation rate structure'is inequitable.. He said it was very obvious when someone who generates one bag of trash a week has to pay the same as someone who generates four to six bags a week. He said possible relief for someone on a fixed income could be integrated within the rate structure. He said we had services (such as twice a week pickup and back yard pickup) which were probably way above the call of duty. He suggested making the rates reflect the cost of service. He said right now we were in a position where the rates had nothing to do with the actual cost of service. He said this was why he had a problem with approving an operational increase before we know what the rate structure should be. He said some people will think that a $4.40 sanitation rate increase will all be to pay off the incinerator. He,said,he thought we should use this time to generate as much of a new rate study as we can, and try to see where inequities can be smoothed out and solved. He said if we look at ways we can more equitably charge for actual cost of service on a tiered level, we may find that we don't need to ask for this rate increase to meet our operating costs. Director Vorsanger said there was no question that we have "a cadillac service." In answer to a question from Director Vorsanger, the City Manager said, if we passed the ordinance now and later we find that we can reduce the rates, we would be able to reduce the rates. Vorsanger said the staff had been asked to make a study on the cost of sanitation services in other cities, and the results show Fayetteville (with one exception) has the lowest rates of any cities our size, and we have the same rate since 1982. He said we already were running about a 27Z 27z 27[ 27i August 15, 1989 $400,000 deficit in sanitation operations to date, meaning if we don't do anything by the end of the year, the deficit will be close to $500,000 or $600,000. He said, because we haven't increased our sanitation operating funds, we are robbing other city funds for "a cadillac sanitation system." Vorsanger said many cities in the State and many utility companies in the State give a special rate for the elderly and those on a fixed income. He said he felt, as long as we were moving in the direction to increase our efficiency, and can look forward someday to reducing fees, he felt it was something that ought to be done. 275.1 Vorsanger said he hoped when the City Manager proposes an election on the use of excess sales tax, he will also propose that the question of the issuance of bonds for capital improvements be placed on the ballot at the same time. The Mayor asked if anyone in the audience wished to comment. 275.2 Al Vick, Fayetteville resident, said at the recent "Trash Busters" meeting, it was brought out that the City would begin a recycling program by the middle of September. He said it had been suggested at the time that those who didn't want to recycle their trash would pay more for services than those who were recycling. He asked how that figured into the rate increase being proposed. The Mayor said the proposed increase is to cover the existing type of services. City Manager Pennington said the staff is expecting to make a report in October detailing the projections for reducing costs, providing incentives for people to recycle. He said they were exploring the possibility of doing an analysis of whether or not it would be cost-effective to use a "tiered system" (back door pickup versus curbside pickup). 275.3 Joe Robson, Fayetteville resident, said he thought it was a progressive move to give consideration to measures to reduce bills on the basis of how much trash they generate and whether they carry it to the curb, to provide incentives for those who consume less, and for those who go to the extra trouble to separate trash and recycle it. 275.4 Robson asked if the operational increase also was intended to cover the $382,000 spend on attorneys fees. He asked if that was why we were showing a deficit. Assistant City Manager Linebaugh responded that the operational increase did not include any incinerator costs. 275.5 City Manager Pennington said another thing being looked at is a "per can" or "per bag" cost. LEGAL COUNSEL 275.6 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. 275.7 The City Manager reported that both the Board and Washington D. C. legal counsel felt there was a need for local legal services. He said proposals were received from four firms, and three firms asked to remain under consideration - Arens and Alexander; Wallace, Stover and Dixon; and The Niblock Law Firm. He said after 1 August 15, 1989 A_, interviewing all three firms, it was recommended The Niblock Law Firm of Fayetteville be retained to work with our counsel. It was moved by Marinoni and seconded by Vorsanger that the Niblock Firm be hired 27i as local counsel to provide legal services in connection with the withdrawal from the solid waste incinerator project. Upon roll call, the motion passed, 5-0, Directors Lancaster and Spivey being absent. 0 ,. The City Manager said he thought it would be appropriatethat the Board consider directing the staff or legal counsel :to review the question of whether or not there could possibly be third party.liability in regard to the incinerator pro3ect and, if so, to determine whether it would be cost-effectiveness to pursue the situation. It was the consensus of the Board to so direct legal counsel. PROPERTY CLEANUP/1300 PETTIGREW STREET • The Mayor introduced an ordinance ordering the abatement of unsightly conditions and the razing and removal of an unsafe structure located'in the 1300 block of Pettigrew Street. The City Prosecutor read the ordinance for the first time. Director Marinoni moved to suspend the rules and place the'ordinance on its second reading. There was no second to the motion. 27' 27( Director Kelley said he received an indication from .someone working with the 27E owner that they would like to have -a little more'time. He suggested the ordinance be left on first readimp until the next meeting. Director Vorsanger said the City has:been criticized about condemning some properties and asked that slides be shown of the property, so the public can get " some idea as to why the ordinance is being proposed. - Green said if the owner intended to clean up the property, it may be a little out of line to show pictures to the public at this time. He said it might be more appropriate right before a vote is. taken on the ordinance. Directors Kelley and Marinoni agreed. Director Vorsanger said the Directors had all been notified by legal counsel that the property was going to be taken care of. He said the owners are asking for 90 days to clean up the property and he wanted to know who was going to police the situation. He asked how long the City had been working on the property. Inspection Superintendent Freeman Wood said the staff had been working on the Pettigrew property for the last two years. PROPERTY CLEANUP/S. LOCUST AVENUE The Mayor introduced an ordinance ordering the abatement of unsightly conditions and the razing and removal of an unsafe structure located at 411 South Locust Avenue. The City Prosecutor read the ordinance for the first time. Director Marinoni moved to suspend the rules and place the ordinance on its second reading. There was no second to the motion. 27( 271 27 August 15, 1989 277.1 Director Marinoni said this property was owned by the same person owning the Pettigrew Street property and the letter received by the Board concerned both properties. He said the Board viewed the property, it was a burned out house which was open and dangerous. He said he would like to see slides of the property. He said a child was seen playing in the yard with a electric line hanging from a tree. 277.2 Director Vorsanger expressed a wish to see slides of the property. These were shown by Inspection Superintendent Freeman Wood. Director Vorsanger said the owner has requested 20 additional days to correct the situation. Martin said 277.3 he would support a motion to suspend the rules at the next meeting, which would give the owner the 20 days requested. UNSIGHTLY PROPERTY/N LEVERETT AVENUE 277.4 The Mayor introduced an ordinance ordering the abatement of unsightly conditions and the razing and removal of an unsafe structure located at 707 North Leverett Avenue. The City Prosecutor read the ordinance for the first time. Director Vorsanger moved to suspend the rules and place the ordinance on its second reading. There was no second to the motion. 277.5 Don Dees addressed the Board on behalf of the property owner, stating he was the apartment manager for the owner, Steve Cummings. He said the property was being used for storage for furniture. He said he had no objection to the Board's seeing photos of the property in its prior condition, but said he would like to show the Directors photos of the property in its present condition. He also requested more time to clean up the property. He said he had made improvements over a period of time, since the May storm. He said they had cleaned up all the unsightly trash, and the building was secure. He said there were some problems on the outside, but they planned to take care of them. 277.6 Building Superintendent Freeman Wood said city staff had looked at the building this morning and it didn't look like anything had been done, and didn't look secure. 277.7 The Mayor said no action would be taken until two weeks from this meeting at the earliest. He said the City was very sensitive to property owners and bona fide attempts to correct problems. He told Dees he would have two weeks, perhaps as much as four weeks, before final action would be taken. 277.8. Wood reported no permits had been issued nor had any been requested. He told Dees that the first step towards curing the problem would be to come to the City Inspection Office and talk to the staff and apply for permits. He said, if this had been done, the ordinance would not be before the Board at this meeting. Wood showed slides of the property. - August 150 1989 COMMITTEE APPOINTMENT The Mayor introduced a recommendation from the Fayetteville Youth Center Board 27E of Directors to appoint one of its members to the Parks and Recreation Advisory Board. The Mayor told the Board the Youth Center recommended the appointment of one of its Board members,.William'Kimbrough, to replace Chuck Yarbrough, a Youth Center representative who has resigned from the Parks Board. ag It was moved by Vorsanger and seconded by Kelley to approve the recommendation. 27E Upon roll call, the motion passed, 5-0, Directors Lancaster and Spivey being absent. - . , ; WARD BOUNDARIES S The Mayor introduced consideration of an ordinance redistricting the wards in 27E the City of Fayetteville; left on second reading on August 1. The Mayor reported the City Manager recommended approval of the ordinance, explaining the proposed changes in ward boundary lines was recommended by the.Chamber"of Commerce Ward Boundary Task Force and is intended to more Nearly equalize the population in the four Fayetteville wards than is now defined by current ward boundaries. • The City Prosecutor read the ordinance for the third time. 27£ In answer to a question from DirectorfKelley, The City Manager said that the 27f staff had not received any comments from the public regarding the ordinance. • The Mayor said he had had some input expressing concern this would be a first 27E step away from voting at large for all ward representatives, and an affirmation • of our -current- ward system. Director Green said he had received one or two phone calls, one positive and one who questioned whether any other groups had reviewed the ordinance. He said he knew the Northwest Arkansas Regional Planning Commission.. had input into the ordinance. The City Manager said he was not aware that any other groups had reviewed the ordinance. No public comments were expressed. Upon roll call, the ordinance passed,'5-0. ORDINANCE NO, 3445 27E 27 APPEARS ON PAGE 0.3 OF ORDINANCE AND RESOLUTION BOOK XX V The Mayor told the public that if 100 or more citizens disagreed with the 271 redistricting they may, by petition, have it submitted to the courts and the courts would take care of the redistricting. The Mayor thanked the Chamber and the Task Force for their work.. August 15, 1989 BID WAIVER 279.1 The Mayor introduced an ordinance waiving the requirements of competitive bidding for the purchase of asphalt, asphalt mixes and aggregates. He told the Board the City Manager recommended approval because there is only one area supplier. He said prices were being held at the same quoted prices as last year. 279.2 The ordinance was read for the first time. Director Marinoni, seconded by Green, 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 Green, 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. 279.3 In answer to a question from the Mayor, the City Manager said the supplier of the products was McClinton -Anchor of Fayetteville. 279.4 Upon roll call, the ordinance passed, -5-0. ORDINANCE NO. 3446 APPEARS ON PAGE /4;27 OF ORDINANCE AND RESOLUTION BOOK ?XV EMPLOYEE REFUND 279.5 The Mayor introduced a request for approval of a budget adjustment to enable a rebate to employees of a Blue Cross/Blue Shield refund received in 1988. 279.6 The Mayor explained that, in 1988, the City received a refund of $84,387.68 from Blue Cross/Blue Shield as a result of claims on health insurance being less than premiums for the period of April 1987 to April 1988. He said the City Manager recommended that $58,125.75 of the refund be returned to the City, and $26,261.45 be returned to employees subscribing to the family plan. He said the method recommended to return the funds to employees was to reduce the employees' cost of family plan insurance by $11.91 per month over a 12 -month period. The Mayor said it was recommended that a budget adjustment in the amount of $26,261.45 be approved from Unreserved Fund Balance to Health Insurance Accounts. 279.7 It was moved by Kelley and seconded by Martin to approve the request. 279.8 Director Marinoni asked if the same people who were on the family plan at the time would be receiving the refund now. Assistant City Manager Linebaugh responded by saying the employees who left the City's employment would not receive a refund. 279.9 Director Kelley asked if it was understood by employees that they may realized an abnormally large increase the following year. Linebaugh said that was understood. 279.10 Director Green asked if this had been run by the employees. Linebaugh said this had been run by the employees, and some had problems with it, but he thought the problems had been taken care of. He said we had no employees unhappy with it August 15, 1989 at this point. Upon roll call, the motion passed,"5=0: 4 280 OTHER BUSINESS ARTS CENTER PROPERTY ir The Mayor introduced a request for ,a resolution authorizing an Order of 280 Possession of property atthe Arts Center site. . . City Manager Pennington said this concerned .Robertson `et al vs. City of Fayetteville, an eminent domain action. He said.the;project is at the point where construction can move forward, but it is necessary to obtain possession of the property. He said anumber of rulings have so far upheld the right to take the property by the City. He,said there were still some legal matters to be taken care of. He said the City's Attorney, Jim McCord, was recommending the Board authorize him to file a Motion for an Order for Possession. He said $200,000 is in hand to pay to the court;to take care of,the situation. He said this may not be the final amount of money the property will cost, but will permit the City to take possession.. He said he agreed with McCord. Director Marinoni noted that, in the case of other properties for the site, the City's standardoffer was appraisal value plus 10%. Heasked if that offer was extended in this case. The City Manager said that -,it was, explaining the question in the case was whether or not the City had the right of eminent domain, and the lower court ruled that it did have the right. Director Vorsanger quoted from the memorandum prepared by McCord to the Board: "If an Order of Possession is obtained, demolition of the existing structures can take place and construction of the Arts Center can begin." Vorsanger said that was a very important point. It was moved by Vorsanger and seconded by Green to move ahead with the resolution. Mayor Martin said what concerned him was whether or not the property owner really 28( had a fair opportunity to be here to express his point of view, since the item came up under Other Business. City Manager Pennington said McCord had been in contact with the owner's attorney, who has indicated that if they City files for the Order of Possession, the landowner will not post a bond in contest. The Mayor said he hated to take such items up under Other Business because there is no chance for citizens to attend the meeting unless they have been specifically notified. 28C 28C 28C There were no comments from the public. The City Prosecutor said the landowner will have to be notified of the Court 281 action and will be given ample opportunity to respond. Upon roll call, the motion passed, 5-0, Lancaster and Spivey being absent. 281 August 15, 1989 SETTLEMENT AGREEMENT 281.1 The Mayor introduced a proposed settlement of a lawsuit in regard to the sludge management site. 281.2 The City Manager explained Olson Construction Company went into bankruptcy, defaulted on the project, and United Pacific Insurance Company (the bonding agent) took over the project, as was the case with the main treatment plant. He said United Pacific filed suit against the City and the engineer, CH2M Hill, to obtain moneys which had been held until completion of the project. Pennington said the attorneys for all parties have been going through a long negotiation process to settle the issue without court action. He said, under the settlement, the City would agree to pay United Pacific $360,000 as final payment under the contract, and the lawsuit would be dismissed. He said the City would not file any counterclaim. He said the funds presently being retained in the account exceed the $360,000. He said CH2M Hill has agreed that, should any additional costs arise in order to complete the work, CH2M Hill will bear the excess cost. Pennington said this holds the City harmless, and funds are budgeted. He said a resolution would be required authorizing the settlement agreement. 281.3 It was moved by Green and seconded by Martin to approve the settlement. 281.4 Director Kelley asked if an engineer has determined that the work which has been done is worth $360,000. Pennington said he did not specifically know who was involved in the negotiations, except for the attorneys and CH2M Hill representatives. He said the City had withheld $560,000 payment and United Pacific sued for that amount of money. He said CH2M Hill felt $360,000 worth of work had been done. Pennington said CH2M Hill has agreed that, should construction and engineering costs in excess of remaining contract funds be required to complete the work, CH2M Hill would bear such excess cost. In answer to questions from Director Kelley, Pennington clarified that the City would spend all the funds retained (about $560,000) before CH2M Hill would have any liability. 281.5 Director Green said he resented the issue being brought before the Board under Other Business, and said he wished there was some way this could be prevented. He noted that CH2M Hill's agreement letter was dated May 16, and he wondered why the Board was just now hearing the request. Pennington said he couldn't tell the Board exactly what McCord's work program was, but said McCord had been working on this lawsuit as well as the USF&G lawsuit. He said the agreement came early in the negotiations. He told the Board we were spending a considerable amount of money, and said every minute spent on the negotiation was being charged to the City. He said the City is in the process now of going through depositions relative to the lawsuit on the main plant. He said there would be a mediation session in Dallas to try and settle the suit before it goes to Court. Green asked if the settlement could in any way prejudice the USF&G case. Pennington said it would not. 281.6 In answer to a question from Martin, Pennington said the $360,000 would come from the Construction Fund of the Wastewater Treatment Plant, and not from General Fund, and those funds were produced in large part by federal grants, and in some part by local match. August 15, 1989 Vorsanger commended the negotiators for, reaching a settlement fora minimum cost. Kelley said he was concerned that we:got $250,000 worth of work, and we are giving away $110,000. Pennington said,there was going to be more that will need to be done. Upon roll call, the motion passed; 5-0, Lancaster and Spivey being absent. RESOLUTION 75-89 APPEARS ON PAGE d OF ORDINANCE AND RESOLUTION BOOK A PSYCHOLOGICAL TESTING/BUDGET ADJUSTMENT • City Manager Pennington explained that, although,the Board approved a contract on September 9 to conduct psychological testing for police officers, the Board did not vote on the needed budget adjustment in the amount of $20,000. He said that figure was based on every police officer being tested... Pennington said there had been comments about the firm which was selected to do the testing. He said Chief Watson spent quite a bit of.,t=ime going through the selection. He said one criteria was that the City needed 42 MMPI right now, and he understood that the firm selected was the only one whofhad 42 MMPIs available and, in fact, are the source of the test for other psychologists in the community. He said the firm was also able to reconstruct their schedule to do the work immediately. He said the,Chief reports testing is scheduled to be completed by August 25. It was moved by Kelley, and seconded by Vorsanger, to approve the budget 28: adjustment. • 4 A Green said he had received some calls from citizens critical of the way the City handled this. He said he understood the argument for the need to progress to get proper certification but said he had some reservations. He said there were other ways this could have been.. approached, and we didn't have to have the same firm handle all the testing. He asked what criteria was used in the selection of only one firm. 282 282 282 282 282 Watson responded they were under an extreme time limit and it would have been very time consuming to contact every psychologist in town. He said he managed to reach the Backs who he said were able to stop their practice and do the testing this week. He said the firm was high quality, had a very good reputation and specialized in testing. He said they had the tests on hand. He said the firm the City had been doing business with indicated it would be at least three weeks before they could begin the work. He said the longer we delay this, any arrests made by police officers could be questioned. He said both the City Prosecutor and City Manager thought it was a good selection. Watson said any future testing could be bid if the Board so desired. Marinoni asked if any problem had arisen where an officer has not passed the 28 test. Watson said not at this time, and that he didn't anticipate that. He said everyone being tested had already passed the tests, and there was just a technicality in who was administering the test. 28: 28: August 15, 1989 283.1 Vorsanger asked if the City's new procedures would do away with competitive bidding. He said one basic reason he was impressed with the Chief's recommendation was that those who had done the testing previously didn't meet the qualifications, or else we wouldn't have had to do the testing again. 283.2 Upon roll call, the motion passed, 5-0, Lancaster and Kelley being absent. UNSIGHTLY PROPERTY/DICKSON STREET 283.3 Robert Reus, citizen of Fayetteville, said according to the Times, City letters to residents regarding unsightly property conditions have scared some residents. He said he didn't agree with "the heavy handed" tactics involved but agreed that Fayetteville needed cleaning up. 283.4 Reus said a year ago he came before the Board complaining about unsightly property at Dickson and West, and mentioned a hole leading about 10 feet down into a junkyard swamp which represents a hazard to children and is breeding mosquitos. He gave photos to the Board and said there has been no change in the last year to the property. 283.5 Reus said he thought it was the job of the City government to protect the health and welfare of the citizens and asked why, after a year, this slumlord has not be cited, while some elderly and impoverished residents are being given twenty days to make repairs. 283.6 Pennington said Inspection Superintendent Wood had been working on the issue since the last year. The Mayor asked the City Manager to report back to the Board, as an agenda item, at the next meeting. He said Reus was correct and that we should enforce the ordinances uniformly. CITY WARDS 283.7 Joe Robson said there were certain socio-economic groups that are under- represented on the Board. He said about four Board members are living in the same neighborhood, and three in one ward, commenting that those Directors are living in a socio-economic situation different from some other people. He asked why there weren't seven wards for seven City Directors. 283.8 Mayor Martin said the City staff would try and find the answer to Robson's question. He said he thought the current system is as well suited as any to provide as broad representation as possible. He said he thought where there was interest there would be representation. He said "let's do away with uncontested elections and let's get on with contested elections." He said people just needed to come out and run for election, speak their point, and the community will elect the people it wants to elect, regardless of their socio-economic background. Robson said he thought people won elections based on advertising and whether they can afford to run. 283.9 Al Vick pointed out that someone who has to maintain a full-time job almost have a conflict of interest when they want to get involved in government, because it's basically a full-time job. 1 August,15,1989 FAREWELL' TO MARC FRANCOEUR' The Mayor said the City and the Board enjoys some outstanding and thorough reporting of its events by several reporters in town and appreciates the long hours they put in. He said one of-those:reporters wes.Marc Francoeur, noting this was Fraricoeur's last evening covering -City news (having resigned as reporter for The Springdale News). On behalf. of the Board; Martin wished him all the best and thanked him for his diligence..;1 ADJOURNMENT The meeting adjourned at 10:40 p.m. 4 • • L 281