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HomeMy WebLinkAbout1990-03-20 MinutesMINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on Tuesday, March 20, 1990 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, Ernest Lancaster, Paul Marinoni, Jr., and Fred Vorsanger; Assistant City, Assistant City Manager Scott Linebaugh, City Prosecutor Terry Jones, City Clerk Sherry Thomas; members of the staff, press and audience. ABSENT: Shell Spivey CALL TO ORDER The meeting was called to order by the Mayor, with six Directors present. The Mayor asked those present to stand and recite the Pledge of Allegiance, and. then asked that a brief moment of respectful silence be observed. ' The Mayor welcomed the public watching the meeting on television, and those present in the audience. He said everyone present would have an opportunity to address the Board on every item under discussion. He asked that those wishing to speak introduce themselves, give their place of residence, keep their comments concise and non -repetitive, and address the entire Board. He said any questions for the Board or staff should be directed to the Mayor. REPORT TO THE PUBLIC • A report to the public and Board was presented by the Assistant City Manager, Scott Linebaugh. The report for the month of February, included financial information, an 'update on staff activities, and items of general interest. FINANCIAL INFORMATION Linebaugh stated there was cash of $4.3 million and investments of $64.4 million, which includes several of the pension investments. It also includes the $10 million held with the trustees to.paycoff our sales tax and sewer bonds and $13.5 being held for the Resource Recovery bonds. There are assets of $167.7 million, liabilities of $46.3 million, and for the two month period there were revenues of $6.3 million and expenditures of $6.2 million for a balance of $127,000 revenue over expenditures. 103 March 20, 1990 POLICE DEPARTMENT Linebaugh reported that there were three officers who went through the seven week basic training course at the Arkansas Law Enforcement Academy. Of those officers, one took first place and one took second place honors in the class. PLANNING MANAGEMENT in the month of February there were 124 construction permits issued amounting to $2.7 million, which makes a year-to-date figure of 256 permits and amounts to $4.5 million. The Planning Commission and Board of Adjustments have resumed their review of the unified development ordinance, and a staff committee made up of John Merrill, Jerry Rose, Becky Bryant, Don Bunn, and Freeman Wood have all begun reviewing it on the staff level. In addition, Linebaugh reported that the Arkansas Highway Department has authorized the City to advertise for the Cato Springs Road relocation project. COMMUNITY DEVELOPMENT Linebaugh reported that the rental rehabilitation project approved its first dwelling and that there are 11 unit applications, all in the target area. There are plans to assist in 27 household rehabilitations this year. ADMINISTRATIVE SERVICES Linebaugh stated Personnel has met with representatives of Blue Cross/Blue Shield to discuss possible cost containment measures for the group medical plan. Blue Cross/Blue Shield conducted meetings with the employees to present different alternatives on which the employees will vote, and results will be presented to the Board at the next Board Meeting. Linebaugh reported that the City's financial auditing firm, Coopers and Lybrand, are ahead of last year's schedule and significantly ahead of this year's schedule. The City's internal audit program has been a tremendous success and provides for independent appraisals and evaluations. Yolanda Perez-Beltram was commended for the excellent job she has done in setting up and making the program work. ANIMAL SHELTER Linebaugh reported that they had another month with a high adoption rate of 29.5 percent, received 181 calls, and issued 68 warnings. The staff has been working with the Humane Society to develop a more effective spay/neutering program. At the next Board Meeting, a bid will be introduced on the construction of the animal shelter. Linebaugh stated that the City was working with the Humane Society 10,E March 20, 1990 on a program to get other cities and counties involved in hopes of making it a regional facility. Bill Griggs, President of the Humane Society, was thanked for the great job he has been doing and his cooperation in working with the City. PUBLIC WORKS Water and Sewer Superintendent, John Tucker, retired from the City after 20 years of excellent service. FIRE DEPARTMENT Linebaugh highlighted some statistics that were in the report from the Fire Department for the month of February: the Department responded to 92 alarms, which included 22 fires in structures, 7 smoke investigations, 3 Hazmat investigations, 24 false alarms, of which 7 were malicious, 13 ground cover fires, 5 vehicle fires, 11 rescue runs, and 7 other minor emergencies. Fire Prevention conducted 96 inspections, 5 public education presentations, which contacted 164 adults and 23 school children, made 4 court appearances, investigated 12 fires, and 3 other incidences. A training burn of an old house was conducted, which involved 18 persons and lasted 7 hours, as well as two other multiple company operations drills. Linebaugh then turned the meeting over to Fire Chief Mickey Jackson who spoke further about the Fire Department and showed a video of the Mitchell Oil fire. Jackson stated that the department operates out of 5 fire stations, with 53 civil service or fire -fighting personnel on the payroll, and one clerk typist, with one frozen position due to budget constraints. The main Fire Station is downtown at'the corner of Center and Locust; the No. 2 station is located on the north side of the University campus at N. Garland and Eagle streets; the No. 3 station is located at the Airport, which has in recent years come under the constraints of the mandates of the Federal Aviation Administration. Station No. 4 is on the north side, located at Harold and Lee streets; No. 5 station is on the east side,. located at Highway 265 and Highland Park Drive. Jackson wanted it made clear to the public that any one station is available to fight fires anywhere in the City. He stated that any structural fire always gets a response from at least two stations and usually three stations. Jackson went on to identify the strengths; weaknesses, opportunities, and threats to the department. CONSENT AGENDA The Mayor introduced consideration of items which may be approved by motion, or contracts and leases which can_ be approved by° resolution, and which may be grouped together and approved March 20, 1990 simultaneously under a "Consent Agenda." The Mayor explained that there is thought to be unanimous agreement by the Board, but pointed out that 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 March 6, 1990 regular Board meeting; B. A resolution approving payment of $32,078.18 to the Niblock Law Firm, and $65,517.59 to McDermott, Will i Emery for the period January 2 - 31, 1990 for legal services rendered on the incinerator and FOIA lawsuits; RESOLUTION 38-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK C. A resolution awarding bids 89-60 and 89-61 for a twelve month contract for purchase of regular and unleaded gasoline to the low bidder, Northwest Oil Co., Inc.; Staff recommends award of the bids to the low bidder. The budgeted amount for 1990 fuel purchases is $104,650.00. RESOLUTION 39-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK D. A resolution awarding bid 90-4 for six Police Pursuit Vehicles to Lewis Ford Sales; Staff recommends award of the bid, at $14,579.00 per vehicle, which totals $87,474.00. The budgeted amount is $123,782.88, leaving a balance of $36,266.48 in this account. RESOLUTION 40-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK Vorsanger, seconded by Kelley, made a motion to approve the consent agenda. Upon roll call, the motion passed by a vote of 6 to 0. REZONING APPEAL Mayor Martin introduced consideration of a rezoning appeal filed by the City of Fayetteville, relative to property fronting on Shiloh Drive, Deanne Solomon Road, and Moore Lane. Size of parcel: Approximately 290 acres Location: West of Hwy. 71 By-pass, North of Mt. Comfort Road Property owners: Five different owners 1U1 March 20, 1990 Change requested: From A-1 "Agricultural" and R-1 "Low Density Residential" to I-1 "Light Industrial" ;;,The Planning Commission voted to deny the rezoning by a vote of 4 to 3, with 1 abstention. The City has an option to purchase these 5 plots of land in order to establish and develop a new Industrial ,spark .-on the property. Richard Shewmaker, Economic Development Coordinator of the City, has been working with the State Highway Department and Washington County officials on access to the area. Staff recommends this rezoning as it conforms with the City's ,proposed year 2010 general plan, which shows the property as being designated for future commercial development. Merrill stated the possible zoning was either I-2 "Heavy Industrial" or an I-1 "Light Industrial". The recommendation to the Planning Commission was two -fold: (1) that the proposed Industrial Park be zoned I-1 "Light Industrial"; and (2) that authorization be given to engage in a study of the overall hierarchy of industrial zoning districts in Fayetteville. Shewmaker stated that the City could draw approximately a million dollars in state assistance to help in the development of the park. The proposed new park would provide visibility, better access to transportation, and a closeness to the center of economic activity in Northwest Arkansas. 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, 6-0. 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 6-0. The ordinance was read for the third and final time. Marinoni asked if the property was rezoned and the City did not consummate an industrial park as planned, if a "condition" could be put on this rezoning. Vorsanger asked how such a provision to the ordinance could accomplish reversion to present zoning, if the site isn't used for an industrial park. Marinoni asked if the City was offering a bill of assurance that the property would only be used for the purposes stated. Lancaster stated that he felt the Board has the prerogative to change its mind and de -zone. Green felt there was a need to be more specific in what the re -zoning is for, or the bill of assurance would not be of any value. - March 20, 1990 Mr. Butt, Vice -President of the Fayetteville School Board, saw this as an opportunity to enhance the property tax base. Butt stated that industrial property typically has a much higher base and pays much higher taxes than residential and agricultural property. The school district is trying to fly a first class district on a third class tax base, and for that reason they are very interested in seeing any industrial or commercial based project developed here. Robert Reus addressed the Board in opposition to the industrial park. Reus asked the Board who the industrial park was for, what kind of jobs would be provided by the park, and who are the land owners. Mr. Shewmaker answered that the proposed manufacturing plant would not be involved in chicken processing or food processing. Shewmaker further stated that he would have no objection to a food processing plant, as it would conform to all environmental standards. Jim Lindsay, realtor involved in this sale, advised the Board that 102 acres was owned by the Calibria family, who live out of state; 120 acres was owned by Don Mills, residing in Rogers; 42-1/2 acres was owned by Highland Park, Inc., a corporation in which Lindsay owns 50%; 10 acres was owned by Gary Cuoso, residing in New Jersey; and approximately 14 acres was owned by Amal Sonoman, owner of the Razorback Golf Course. Lindsay stated he found the price fair and honest considering property on Hwy. 71 By-pass recently sold at $4,200 per acre. He stated that this industrial park would be the single most significant development to take place in the last twenty years. Jim Bob Wheeler, a land owner adjacent to the proposed industrial park, addressed the Board expressing his opposition. He stated it was poor usage for land with the potential to be a real residential growth area in Fayetteville. Wheeler suggested that a local citizens committee could be formed, at no expense to the City, to study the needs, establish criteria, and to recommend various alternatives to this present proposal, which he felt was ill- conceived, poorly thought out, and suddenly sprung on the citizens of the City. Hugh Brewer, Chairman of the Industrial Development Committee of the Chamber and as Chairman of the Board of Directors of the Chamber of Commerce, addressed the Board in favor of the proposed industrial park. In answer to the arguments presented against the rezoning, Brewer felt that (1) the visibility requirement by some plant prospects would be met by this park; (2) that efforts to sell the existing industrial park land would not be slowed by the proposed park; and (3) the boggy "gumbo" condition at the proposed site does not present a problem. Brewer urged that this project 1 March 20, 1990 is needed for jobs and broadening the tax base, especially within the Fayetteville school district. Harley Brigham of Fox Hunter Road addressed the Board in opposition to the proposed industrial park. Brigham stated that the existing industrial park is adequate, with paved streets, rail facilities, easy access to airport and major highways, utilities in place, land well drained and soil stratum suitable for heavy foundations. Brigham voiced his opinion that what was really needed was a good sales person, since of the existing 800 acre park, only 360 acres have been sold. He further suggested improvements in existing park such as building an attractive entrance, landscaping the park, and building indoor and outdoor recreational facilities for exclusive use of park employees, families and guests. In closing, Brigham stated that the City could do better to attract retirees and tourists, like the surrounding communities, if this land was used for housing and a recreational park for the west side. J.E. McClellan addressed the Board in favor of the proposed industrial park. McClellan expressed his concern that the school system can be and must be better, and in order to do so, the tax base must be increased, and the proposed industrial park would be a good opportunity to do so. Mr. McClellan urged the City to continue with the policy of accepting "clean" industry only to prevent environmental problems. Jim Potts, resident of Springdale, addressed the Board to offer observations and comments on the proposed industrial. park. Potts stated that he is owner of 35.6 acres of industrial property in Fayetteville, approximately 1/4 mile south of the proposed site, with total acreage of 115.acres, which has been:"for sale for approximately eight years. Potts further commented that if you buy property with tax money and no one wants to purchase that property,' you deteriorate the tax base instead of improving it, and if you saturate an area with a certain product, you devalue the existing property. Unemployment at 3% is not conducive to businesses wanting to locate here. Potts was concerned whether there'really was a need for another industrial park, and if such a need exists, why 'isn't his 115 acres being considered, which is ready to build on with roads and utilities already in place and<being offered at a good price. Director Vorsanger asked Mr. Potts what is currently being built on his industrial property, to which Mr. Potts responded, a janitorial supply warehouse. Ken Pommell,. first purchaser of property in the Fayetteville Industrial Park on the south end, addressed the Board in total support of a second industrial park. Pommell stated that as industry is expanded in the community, the biggest winners are the 1V March 20, 1990 employees and citizens of Fayetteville as competition within industry raises wages and living standards. Tiny Hamilton addressed the Board in opposition to the proposed new industrial park. Hamilton felt that the $2.2 million bale -out of certain financial institutions in Fayetteville of the Industrial Park south of town, was due to years of failed policy and lack of sales by Chamber of Commerce, and the answer is not another industrial park. Hamilton asked the Board why Fayetteville needed a $44 million budget and only has 1/3 more people than Springdale, with an annual budget of $7.5 million, and why the City of Fayetteville has over 97 employees in City Hall while the City of Springdale has only 12. Hamilton stated his belief that there is a need for employees in our existing industry and a greater need for low to moderate income housing in Fayetteville. Director Vorsanger addressed Mr. Hamilton and stated that he was "comparing apples and oranges" when comparing the budgets of Fayetteville and Springdale. Vorsanger stated that Fayetteville's $44 million budget includes all funds, such as sewer, street, water, etc... the revenues from taxes, not charges of citizens for use of facilities, is used to fund the general budget of $9 million, which is in line with Springdale. Vorsanger stated that Fayetteville was not competing with any community, but rather cooperating with Northwest Arkansas for the main purpose of making Fayetteville a quality place to live. Buddy Olinghouse, a resident of Fayetteville and employee of Arkansas Best Corporation (ABF Freight System), one of the first new businesses in the proposed area, addressed the Board. Olinghouse stated that an issue at the time ABF looked at this property was the water problem, due to the extreme weight of their trucks, but ABF has found this not to be a problem. Misty Morgan, an adjacent owner to the land being proposed for a new industrial park, addressed the Board in favor of the plan. Ms. Morgan sees the plan as being of great benefit for the younger people of the City and school system. Kurt Elsass, a resident of the City of Fayetteville, addressed the Board in favor of the proposed park as a very positive step forward. He presented a list of signatures from Fayetteville citizens and reports not one negative comment from citizens and employees who work in the area, including some adjacent property owners to the proposed site. Director Green asked Mr. Shewmaker about how covenants would be implemented to control industrial development, and how the City could legislate aesthetics. Shewmaker responded that the Planning Department staff would work on the covenants and present them to the Board at the next Board meeting. March 20, 1990 Mayor Martin stated staff has not recommended a rezoning request on this same agenda for property off the bypass. He asked how this was consistent with recommending rezoning for the new industrial park. Merrill stated that the proposed site is in a different land use situation than the other proposal mentioned. He stated that the basic philosophy of the City over the years has been to encourage heavy commercial and light industrial development in the "nodes" rather than stripping them up and down the by-pass roads and similar locations. Merrill considered the proposed new industrial park siteto be in a major activity node with immediate access to the by-pass. Mayor Martin asked what is to prevent other major manufacturing industries from coming to town and requesting other sites to be rezoned to I-1 at various locations in Fayetteville. Shewmaker responded that he did not believe that would happen and that the plan was to be able to satisfy a multitude of demands by the two parks. Martin further stated that with the substantial amount of property in the existing park, there is a draw back to this plan, and that if an alternative is to be offered, it must be a "bonafide" alternative to the existing park, with restrictions and concerns for the environment and neighborhood taken into consideration. Shewmaker stated that the City would not be showing any property other than the two sites. Upon roll call, the ordinance passed by a vote ofw6 to 0. ORDINANCE NO. 3473 APPEARS ON PAGE aS OF ORDINANCE AND RESOLUTION BOOR X K V REZONING APPEAL The Mayor introduced consideration of a rezoning appeal as presented in Rezoning Petition R90-6 requested by Charles Heathco. Size of Parcel: Approximately 6 acres Location: Northwest corner of Porter Road and West Sycamore Street. Property owner: Charles Heathco • ,.. Change requested: From A-1 "Agricultural" to R-2 "Medium Density Residential" Planning Commission Action: Voted 6 to 0 to approve the rezoning request subject to a Bill of Assurance limiting development to no more than 12 family units per acre. March 20, 1990 The ordinance was read for the first time. Director Marinoni, seconded by Vorsanger, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed, 6-0. 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, 6-0. Prosecutor Terry Jones read the ordinance for the third time. Director Marinoni stated that the Planning Commission recommended rezoning to R-2, but staff recommendation was to rezone to R-1.5. Under the R-2 zoning, petitioner offered a bill of assurance that occupancy would be limited to 12 units per acre. Under the guidelines of R-1.5, there is a limit of 12 units per acre. Marinoni asked Heathco what the difference would be between rezoning to R-1.5 or R-2 with his bill of assurances. Heathco responded that he could not meet the spacing requirements of R-1.5. In addition, Heathco stated that he needed the R-2 mechanics. Upon roll call, the ordinance was unanimously adopted. ORDINANCE NO. 3474 APPEARS ON PAGE 199 OF ORDINANCE AND RESOLUTION BOOK XX V REZONING APPEAL The Mayor introduced consideration of a rezoning appeal as presented in Rezoning Petition R90-1, requested by the Krupas and Lynches. Size of Parcel: 10 acres Location: West of the 71 Bypass and North of Old Farmington Road fronting on Shiloh Drive. Property Owners: John and Irene Krupa and Frank and Mary Lynch Change Requested: From R-2 "Medium Density Residential" to C-2 "Thoroughfare Commercial" At the January 22, 1990, Planning Commission meeting, the Commission voted to deny the rezoning by a vote of 8 to 0. The petitioners appealed the decision to the Board of Directors at the February 20 meeting, at which time it was determined that the petitioner was only asking for 10 acres to be rezoned rather than the whole plot of land that the Planning Commission ruled on. The Board of Directors returned the petition to the Planning Commission for further consideration on the request for rezoning only the 10 acre plot. March 20, 1990 ^?v At the March 12 Planning Commission meeting, the vote was 4 to 2 to approve the rezoning. However, it takes 5 positive votes for a motion to be approved by the Planning Commission. The petitioner is once again appealing to the Board of Directors for the rezoning to be approved. Marinoni stated he would be abstaining from the vote because he was an adjoining property owner. The ordinance was read for the first time. Director Kelley, seconded by Vorsanger, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed, 6-0-1. The ordinance was read for the second time. Director Kelley, 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 by a vote of 6-0-1. The ordinance was read for the third time. Pete Camfield, sales agent for Realty World McNaughtan and representative for the Lynches and Krupas, addressed the Board. Camfield stated that they were willing to give a Bill of Assurance stating that if construction is not started within a reasonable time, the property will return to R-2. A reasonable time is suggested by Mr. Benedict to be six months. Camfield believes that had there been eight members present at the last meeting, a two- thirds majority would have prevailed thus giving .them the five votes necessary to pass. In addition, Camfield reminded the Board that there had been no opposition to this rezoning from anyone, including surrounding neighbors. Charles Heathco addressed the Board and stated his approval of this rezoning request and further expressed that the business would enhance the City and is not appropriate to be located -in the industrial park. Mayor Martin asked Mr. Merrill what the consensus was of the majority at the March 12th meeting which voted 4 to 2. Merrill responded that offering the bill of assurance, one being the reduction of acreage from 40 acres to 10 acres, together with the. bill to initiate construction within what is perceived to be a reasonable amount of time, had an impact on the Commissioners. Mayor Martin further asked Merrill how this property would be designated under the draft of the new Land Use Plan, .and Merrill responded "Low Density Residential". 4. Director Green commented that this was more of a philosophical issue than a specific issue. Green stated that for years there has been a struggle to limit strip development along this particular access road, and it is gradually growing with each adjoining property obtaining rezoning to C-2. Green further stated March 20, 1990 that if this rezoning is approved, the City is basically opening the door and giving up on trying to maintain controls of this road. Director Lancaster agreed with Green and gave an example of land located South of the subject property recently rezoned to C-2, was never developed and now can be developed from this point forward in C-2. Dale Benedict, President of Bio -Tech, addressed the Board with a proposal for a site on which Bio -Tech would like to locate. Benedict stated that they had outgrown their present facility, had to go somewhere, and would like to stay in Fayetteville as long as they find a place that will accommodate their type of business and be visible. Benedict assured the Board that Bio -Tech would strive to limit impact on the environment. Mayor Martin stated he understood the two bills of assurance offered would (1) return the land to R-2 zoning if construction is not completed within a reasonable amount of time, and (2) the entire front half of the property would remain in green space in perpetuity. Benedict responded that an access road is needed through the front of the property to the proposed building site, but he will only develop the back portion of the property. Mayor Martin asked Merrill if the petitioners offered a bill of assurances regarding the location of their building on the property. Merrill responded that there was some discussion on that and he believes they offered a bill of assurance at the Planning Commission level, but doesn't believe they formally offered a bill of assurance specifically regarding the front part of the property. Mayor Martin asked Benedict if he was offering a bill of assurance that they would build on the back part of the property. Benedict stated he was offering the bill of assurance and further stated they may want to expand in the future, but plan to do so laterally on the property. Upon roll call, the motion to adopt the ordinance passed by a vote of 4 to 1 to 1, with Lancaster voting no and Marinoni abstaining. ORDINANCE NO. 3475 APPEARS ON PAGE /7/ OF ORDINANCE AND RESOLUTION BOOR )(KV REZONING APPEAL The Mayor introduced consideration of a rezoning appeal as presented in Rezoning Petition R90-5, requested by Donald Johnston. Location: Part of the Oak Plaza Shopping Center located at the intersection of Mt. Comfort Road and North Garland March 20, 1990 Avenue fronting on North Garland and Holly Street. The "Dillon's" store is not included. • Property Owners: Donald Johnston Change Requested: From R-0 "Residential -Office" and C-1 "Neighborhood Commercial" to C-2 "Thoroughfare Commercial" Planning Commission action: Recommended approving the rezoning by a vote of 6 to O. 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, 6-0. 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, 6-0. The ordinance.was read for the third time. Rick Osborne, representing the property owner, addressed the Board and stated that Mr. Johnston finds himself at a competitive. disadvantage with the all other shopping centers iniFayetteville which are zoned C-2. Mr. Johnston can sell a stereo, but he can't service it, and wishes to put in a service center behind the -old "Mr. Burger" location by the barbershop to service stereos. Upon roll call, the ordinance was unanimously adopted." ORDINANCE NO. 3476 APPEARS ON PAGE /95 OF ORDINANCE AND RESOLUTION BOOR xX V AIRPORT RESTAURANT LEASE • Mayor Martin introduced consideration of a resolution approving the assignment of the Airport Restaurant Lease from Ms. Lorene O'Donnell to Mr. and Mrs. Dale Warren for the remaining • portion of the lease. Staff recommends assignment of this lease which expires on December 15, 1990. The airport restaurant operation will gooutfor bids prior to that date. s Mr. Linebaugh stated that letters and documentation have been received from the owner and purchaser indicating agreement on the assignment. Director Kelley, seconded by Vorsanger, made a motion to approve the resolution. 114 March 20, 1990 Upon roll call, the motion passed unanimously. RESOLUTION 41-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR HAY GROUP PLAN STUDY Mayor Martin introduced consideration of a resolution adopting the Hay Group Plan Study as the pay plan for the City of Fayetteville and option three of the pay plan funding options as the 1990 salary and benefits budget. Staff recommends adopting the Hay Group Plan Study. Mayor Martin stated that the Board had been presented the study in a 1/2 day presentation by a representative of the Hay Group on the recommendations, and had discussed the options recommended by City staff. Mr. Linebaugh elaborated that the Hay Group Study involved discussions with employees and evaluations of the plan, and it is felt that they have a good, workable plan and will be one that the City Staff and management supports. The plan will be on a "performance pay" basis for the majority of employees. Linebaugh further stated that it would take more than one year to fully implement the plan, and they are recommending "Option 3", as it is fair to all the employees. It would take two years to get all employees under the merit pay system up to where they should be for their positions and their service. Linebaugh stated that they would like to make this retroactive to January 1, 1990. Don Bailey, Personnel Director, addressed the Board regarding the issues raised at the Agenda Session, as follows: (1) Bailey stated that he believed this option was a more equitable allocation of the 8% contingency budget; (2) Bailey stated that he was pleased with the progress made on this program. Increases and changes to benefits have been taken care of through the adoption of the a new personnel policy, encompassing vacations, holidays, sick leave, etc., and brings Fayetteville in line with the market as recommended by the Hay Pay Plan Study. Current year pay recommendations are essentially funded with the 8% contingency. Bailey stated that there is no increase for employee group medical factored in the 8% - this issue will be addressed to the Board in a memo and brought up for discussion at the next meeting. Bailey believes that they have cost control measures which will be able to maintain the existing level of benefits with no increase in cost to employees or the City. Because of budgetary limitations, the contributions to the pension plans could not be raised to the 9% level recommended by Hay Pay Plan. Contribution rate to the money purchase pension plan and the deferred compensation plan have been March 20, 1990 equalized to a 6% level for all non -civil service employees. The plan requires salary surveys be conducted on an annual basis. The maintenance of the job evaluations which determine the profit pay range, must be taken care of on an ongoing basis. Director Vorsanger, seconded by Marinoni, made a motion to approve the resolution. Martin stated that the Hay Plan Group did an on-site study of every job as it now exists in the City, interviewed employees and supervisors and developed job descriptions. Compensation for each job was compared in turn to other jobs in the City as well as to relevant market places for those jobs. This study determined that there were varying degrees across the spectrum with respect to compensation for City employees, ranging from "dramatically low" to "top of the range". Director Vorsanger stated one reason the Board initially settled on the Hay Group was because they proposed an evaluation, performance or "appraisal" system for employees, and the City could evaluate themselves in the future. Vorsanger asked for confirmation that the City's objective has been met, and Bailey responded that objectives had been met and they have,a plan in place that is maintainable by the staff. , Danny Farrar, representing the Fayetteville firefighters, expressed his appreciation for the efforts and sensitivity of the City and Board to the needs of the City employees. The Fayetteville fire- fighters completely endorse the final study and .support the proposed recommendations. • Upon roll call, the resolution was unanimously adopted. RESOLUTION 42-90 APPEARS IN BOOK OF ORDINANCE AND RESOLUTION BOOK GROWTH AREA FIRE HYDRANT POLICY • Mayor Martin introduced staff recommendations for a change in the growth area fire hydrant policy. They feel that fire hydrants should be provided in an attempt to be good neighbors when certain criteria are satisfied. Linebaugh stated that this policy is not limited to the Wheeler group, but for the entire growth area. This is a general policy, and will not deal mainly with annexation, as did the last policy. Linebaugh recommended that the City should assist in the installation and maintenance of fire hydrants in growth area. The growth area must meet certain criteria, as follows: (1) the growth areas benefiting from the fire hydrants bear all costs; (2) the lines upon which the hydrants are attached be capable of March 20, 1990 maintaining a proper flow for fire protection; (3) the growth areas agree and understand that the City makes no guarantee of any minimum capacity of flow and agrees to provide a disclaimer; (4) the City have prior approval of placement and number of fire hydrants; and (5) the growth area has the present ability to utilize the fire hydrants by having a rural fire service currently existing. Linebaugh stated that with the above conditions, the Staff recommends that the policy be passed. Director Kelley, seconded by Vorsanger, made a motion to adopt the policy. Director Green asked what staff recommended on back flow prevention. Linebaugh responded that back flow prevention is mandatory and necessary. Green asked if they proposed to put a back flow preventer in the growth area supply line or at various places throughout the water system. Bob Kelly responded that no policy was in place at this time for back flow preventers, except within the city limits. Growth areas would require inspection for this new service, to determine the necessity for back flow prevention. Fran Alexander, representing the growth area, addressed the Board regarding the source of funding for maintenance, and how the growth area would have its representation to get funding to finance this project, specifically in unincorporated areas. In addition, Alexander asked whether residents who receive these hydrants, would still pay for City fire insurance. Linebaugh responded that this is a general policy, so each situation would have to be taken on its own merits. This could be a grant or come from the county. He confirmed that the City itself would not be involved in the funding. Linebaugh further stated that for unincorporated areas, the procedure would be to form an association and apply for grants or pay the tax themselves. In addition, if residents wanted City fire protection within the two miles, they would still have to pay for fire insurance. Mayor Martin asked Linebaugh whether fire insurance rate might go down if hydrants were available and Linebaugh answered that they probably would. Upon roll call, the motion passed unanimously. RESOLUTION 43-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK WHEELER WATER CONTRACT AMENDMENT Mayor Martin stated the Wheeler Water District has received a grant to provide fire hydrants in their area. City Staff has concerns 1I March 20, 1990 about misleading the district regarding the availability of fire protection during a drought, of possible contamination at times of low water preosure, and the cost of maintenance that the District will have to pay. Staff has recommended possible solutions to these concerns. Linebaugh stated that George Butler of the Wheeler Water District Association advised that .the recommendation about just placing parts for the hydrants so that they could later be installed, will not qualify them to receive the grant. Linebaugh stated Staff recommends that Wheeler be fully advised and encouraged to disclose the same to its customers, that the situation exists whereby in the event of a drought in the City of Fayetteville, the water to Wheeler would be cut-off. Linebaugh further stated that it would be necessary to obtain a formal disclaimer from Wheeler of any liability to the City. Linebaugh stated that two possible solutions to this is to upgrade the major lines from a six to an eight inch line.which will be proposed to the Board at the next meeting. In addition, Linebaugh stated that Wheeler Water District needs to understand the maintenance of the hydrants is likely to be higher than that for Fayetteville residents, due to distance, incidence of vandalism and misuse. The solution to these problems would be to charge rates that are sufficient to bear those additional costs. Mayor Martin asked why changes were being made to the contract that has so recently been approved. Linebaugh stated the contract as it exists does not allow fire hydrants. Director Lancaster asked if all concerns were addressed in the contract, and Linebaugh responded that they would-be handled in the amendment to the contract. Director Vorsanger, seconded by Green, made a motion to approve the amendment to the contract. Green asked if the conversion from a 6" to 8" line would be in the form of a recommendation to the Wheeler Water District, or would Fayetteville be responsible for the up-sizing. Linebaugh stated that the Staff recommendation would be for Fayetteville go ahead and up-size because they feel it will be necessary for future growth. George Butler, attorney for Wheeler Water District, stated that the Association and the Fire Department are aware of possible water shortages, and will make contingency plans. In regards to upgrading of lines, the Wheeler Water District will most likely be in agreement with this recommendation, which will take care of the issue of potential back flow problems. March 20, 1990 Mrs. Lindsay commented that numerous studies have been done in rural areas and vandalism is no greater in rural areas than in metropolitan areas. Linebaugh responded that Staff simply wants to make all possibilities obvious so there is no misrepresentation. Upon roll call, the motion was unanimously adopted. RESOLUTION 44-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR SOLID WASTE TRANSFER/RECYCLING FACILITY Mayor Martin introduced consideration of the appropriate site for a solid waste transfer/recycling facility. A Public Hearing was held on March 13, 1990, at 7:30 p.m. to inform the public about transfer facilities and to receive comments and suggestions about the citing of the facility in Fayetteville. Mr. Linebaugh stated that the Staff is asking the Board to take no action on this item tonight to allow more time to look at other locations and hold another public hearing on a possible site. Bob Kelly addressed the Board stating that the U.S. Environmental Protection Agency mandated that solid waste had to be managed on a regional basis. The state's agency, the Department of Pollution Control and Ecology, then mandated that to regions. Fayetteville is part of the Northwest Arkansas Solid Waste Management Planning District which covers a nine county region in which there are only three landfills. Of the three landfills, Northwest Arkansas Landfill had their license revoked on March 2nd, and are currently fighting that revocation in bankruptcy court. Fulton Landfill in Rogers has filed their closure plan and are to close in November 1990. Sunray Landfill has filed their closure plan for one and one-half years from now. Hal Morton addressed the Board and advised that the type of facility they are talking about could best be described as a large scale version of a kitchen compactor. Garbage would be packaged in a convenient fashion for transfer both inside and outside Arkansas. The facility would be designed to maximize the reduction of transportation costs. The compactor has already been purchased for about $31,000. For transporting compacted as opposed to uncompacted waste, the costs differ by a factor of roughly two, and by compacting waste, the $31,000 investment should be paid off within a period of eight weeks. The transfer facility would also provide a location for citizens to take large items, enhance recycling efforts, and would also provide a "filter" for any contaminates. March 20, 1990 x Morton stated that a number of criteria are being considered in the citing for this facility, such as (1) keep facility as isolated from other types of land uses; (2) the routing of trucks to and from facility, and (3) to be near major transportation corridors by pursuing a publicly owned transfer facility, it is intended to be part of the regional solution to the solid waste plan and intend for this facility to maximize options in the future. Scott Smith showed a video on transfer stations currently operating in Rogers and Berryville. Mayor Martin asked if Cato Springs Road was still a possible site. .Linebaugh responded that the Staff was not recommending that site. Director Green asked if the eight week pay back included cuts in transportation time by not having to haul to the landfill so many times per day. Morton stated that would be an additional savings. Vorsanger asked if there was any possibility of sharing the use and cost of the compactor with the University. Morton responded that he had been in communication with the University and they are expressing interest in utilizing this as a regional facility. NORTHWEST ARKANSAS RESOURCE RECOVERY AUTHORITY Mayor Martin introduced a. resolution authorizing payment of legal fees to Jim Rose, the attorney for NWARRA, for services rendered on the incinerator disengagement lawsuit and a budget adjustment. The City of West Fork and Washington County have been asked to pay 5% each of the $5,654.00 bill which is $283.00, leaving the City with the responsibility of paying $5,089.00. The NWARRA as a different entity, needs to have its own attorneys to handle problems separate from the City of Fayetteville, and therefore, it was recommended that an attorney be retained for the NWARRA, on the incinerator disengagement. Linebaugh stated that the Staff was recommending that this bill be paid in the amount of $5,089.00. Director Green, seconded by Kelley made a motion to approve the resolution. Green_ asked if the attorney fee would come out of the sanitation fund. He was advised that they would. Upon roll call, the motion passed unanimously. RESOLUTION 45-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR Malt. IP 41 t March 20, 1990 ARKANSAS INDUSTRIAL DEVELOPMENT COMMISSION GRANT: Mayor Martin introduced a resolution approving the agreement with the AIDC for $125,000 to make road improvements to the existing Industrial Park. Linebaugh explained that this was a grant agreement with the AIDC for $125,000. The grant would provide for paving of the right turn lane on Armstrong Avenue, paving of a portion of Pump Station Road between Armstrong Avenue and Highway 156, and paving of Pump Station Road east of Armstrong Avenue at a total estimated cost of $109,000, and engineering fees in the amount of approximately $16,000. It was recommended that the City enter into this contract for the grant. Director Vorsanger, seconded by Kelley, made a motion that the resolution be approved. Upon roll call, the motion passed unanimously. RESOLUTION 46-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR OTHER BUSINESS RETREAT Linebaugh addressed the Board concerning setting of the date for the budget retreat #2. After discussion, it was set for Thursday, April 5th from 8:30 to 12:30. INDUSTRIAL PARK Mrs. Alexander again addressed the Board regarding the process by the Board to hear from the public concerning the industrial park. Alexander felt that the process needed to be slowed down for the public's sake and their input. In addition, she stated her concern over the secrecy on this issue. ADJOURNMENT The meeting adjourned at 11:12 p.m.