Loading...
HomeMy WebLinkAbout1990-07-17 Minutes1 MINUTES OF A MEETING OB THE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on Tuesday, July 17, 1990 at 7:30 p.m. in the Director's Room of the City Administration Building at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor William Martin; Directors Michael Green, Ernest Lancaster, Russ Kelley, Paul Marinoni, Jr., Fred Vorsanger and Shell Spivey: City Manager Scott Linebaugh, City Attorney Jerry Rose, City Clerk Sherry Thomas; members of the staff and audience. CALL TO ORDER The meeting was called to order by the Mayor with seven Directors present. The Mayor asked those present to stand and recite the Pledge of Allegiance and then asked that a brief moment of respectful silence be observed. The Mayor welcomed those present and reminded the public that they 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 stated 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 City Manager Scott Linebaugh. The report for the 'month of June included financial information, an update of staff activities and items of general interest. FINANCIAL INFORMATION Linebaugh stated that the City•had assets of $168.7 million, liabilities of $35.9 million and fund balance of $132.8 million. Total revenue for the six-month period ending June 30 was $19.2 million and total expenses were $19.5 million for a balance of $317,000 expenses over revenue. Linebaugh stated that expenses in several departments were 'higher than the„ -previous year. For example, the General Fund expenditures were up $400,000 as compared to the same time in 1989, the Street Fund:spent $122,000 more, Water & Sewer Fund spent $1,370,000 more and Sanitation Fund spent $92,000 less. He also explained that these expenditures were planned for in the City's accrued excess fund balance. POLICE DEPARTMENT*' Linebaugh stated the Police Department performed 291 unlocks for citizens which totalled 169 hours in June. 154 escorts were 233 240 July 17, 1990 performed which totalled 72 hours. He pointed out that most cities do privatize these services to save using on -duty personnel. FIRE DEPARTMENT Linebaugh commended the department for operating for 53 months without a fire fatality. PLANNING MANAGEMENT During the first six months of 1990, the Elderly Taxi Program averaged 916 coupon redemptions per month. Linebaugh noted that participation in the program has been so great that it is projected that funds will run out before the month of December, although ridership has decreased somewhat. Currently, the program is seeking private funding to be able to continue the service. He also stated that staff has initiated a program involving educational packets and informational mailings to better inform the Planning Commissioners. ADMINISTRATIVE SERVICES Linebaugh stated that the loss ratio on Workman's Compensation has been drastically decreasing over the past two years from an 87% ratio to a 10% ratio. He stated that this was due to several areas of emphasis, including the nurse program among others. The Library Pay Plan has now been completed and has been given to the Library Board for action on the plan. PUBLIC WORKS Linebaugh stated since the Youth Center Pool was closed, the pool at Wilson Park has increased attendance and revenues from $17,000 in 1989 to $31,000 for the same time period this year. For the month of June, Street Division mowed 208 miles of right- of-way. Linsbaugh reminded property owners that they are required by law to maintain weed control on sidewalks and their rights-of- way. He said that this becomes a problem when the property owners do not maintain their rights-of-way because the City does not have the extra personnel required to do so. CITY BOARD ELECTIONS Linebaugh outlined the qualifications to run for a City Board position: 1) must be a qualified elector in the City of Fayetteville 2) must be more than 21 years of age July 17, 1990.».. ,a 3) 'must reside within the City limits for at least 30 days 4) must be qualified to vote at an election of the County or State officers Tofile, applicants must submit a petition (a sample form can be obtained at the City Clerk's office) containing signatures and resident addresses of at least 50 qualified electors and must be filed in the City Clerk's office no later than September 7. Linebaugh also explained that there would be no run-off situations in the city management form of government but that the candidate elected would be the one receiving the greatest number of votes. OPEN CHANNEL A report was given by Kathryn Shurlds, access manager for Fayetteville Open Channel. She stated that the search for a new manager had already begun, as she was leaving the position to teach at the University the next semester. Ms. Shurlds began by explaining the mission statement which was "to give local people a chance to use television to meet local needs". She stated that the Open Channel provides service to the community in three main areas known as "PEG", Public, Education and Government. Shurlds explained that the programming is very different from that of regular television in that the Channel is very "low budget" but that they try to meets the needs not met by conventional television programming in the community. Programs are notjudged by content in keeping with the Open Access theme. She stated that 30 hours a week are broadcast, -averaging approximately 10 hours a week of programming produced locally by volunteers and the staff. Programming on the channel ranges from lectures from the university to intramural sports activities. TY Shurlds stated that the channel works with the university's journalism and communications departments, providing internships for some students. Public schools also make use of the channel for teachers, parents and students as well. The channel has been used as a debate forum for local, state and national issues. Take 5 is a. free service provided whereby local citizens can use five minutes of time to announce a community event, state their opinion, or whatever, provided it is not a promotion for a commercial product or service or make a direct appeal for funds. • Open Channel also offers live call-in shows for professionals as well as public information matters such. as recycling. Shurlds stated that a series of`live call-in shows produced by NARTI has been very successful and.has provided an^important service to the community. From surveys taken in the last two years, percentages range from 25-50% of all cable subscriberstwatch at least once a week or more. Staff consists of three full-time members and three part-time members and a number of volunteers. Plans and needs for �4: 24. - July 17, 1990 the future include additional staff and equipment. Building plans are waiting for a final decision for future funding and administration of the channels. CONSENT AGENDA The Mayor introduced consideration of items which may be approved by motion, or contracts and leases which can be approved by resolution, and which may be grouped together and approved simultaneously under the "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 July 3, 1990 regular Board meeting. B. A resolution authorizing a budget adjustment in the amount of $17,000 transferring funds from Unreserved Fund Balance to cover the legal fees regarding the Stanbsrry lawsuit. RESOLUTION 111-90 APPEARS ON PAGE OP ORDINANCE AND RESOLUTION BOOR C. A resolution approving a budget adjustment in the amount of $14,400 from the Street Fund Unreserved Fund Balance for removal of the brush pile at the corner of 15th Street and Armstrong. The Board of Directors approved a bid waiver for the project at their May 15, 1990 meeting; however, the budget adjustment was not approved at that time. The work has been completed. RESOLUTION 112-90 APPEARS ON PAGE OP ORDINANCE AND RESOLUTION BOOR D. A resolution approving a contract amendment with Black and Veatch Engineers to develop charges for water service to be provided to the Wheeler Water Service Area and approval of a budget adjustment. Staff recommends approval of the contract amendment and budget adjustment in the amount of $51,300; $47,300 is a roll forward of funds budgeted in 1989 for the original water and sewer rate study. The additional $4,000 will need to be approved by the Board for the contract amendment and the budget adjustment for this portion. wd4, July 17, 1990 The cost of the Wheeler Rate Study will be paid through rates charged to the Wheeler customers. RESOLUTION 113-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK E. A resolution approving an agreement with the State Board of Finance for Turnback Revenues under the Tourist Meeting and Entertainment Facilities Assistance Act. Staff recommends approval of the renewal of the agreement for one year which enables the City to receive turnback funds from revenues generated by the Continuing Education Center. RESOLUTION 114-90 APPEARS ON PAGE 08 ORDINANCE AND RESOLUTION BOOK Kelley, Agenda. seconded by Marinoni, made a motion to approve the Consent Upon roll call, the motion passed by a vote of 7 to 0. WATER AND SEWER RATE INCREASE Martin introduced consideration of an ordinance setting water and sewer rates effective August 1, 1990 and ending on January 1, 1994. Staff recommends approving the new rates as proposed by the City's consultants, Black and Veatch Engineers. A public hearing has been held on this increase and representatives from both Black and Veatch and the Beaver Water District have made presentations to the Board and the public regarding the proposal. The ordinance was read for the first time. Marinoni, seconded by Kelley, made a motion to suspend the rules and place the ordinance on its second reading. Director Green abstained from the voting as his firm is directly involved with the Beaver Water District. Upon roll call, the motion passed 6 to 1, with Green abstaining. The ordinance was read for the second time. 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 to 1, with Green abstaining. The ordinance was read for third time. Linebaugh stated the rate increase process began in September of 1989 when Black and Veatch was hired to perform a cost of service study and design the rates. A presentation was held at public meeting on June 27, a .public hearing on July 12, and there have been meetings with several special groups from industry and wholesale water customers. The Beaver Water District needs to update its water facilities due to increased consumption and water July 17, 1990 quality standards. The City of Fayetteville also needs updates, including a 36" water line or water management is inevitable. Blaine Bickel from Black & Veatch, Kansas City, Missouri, gave a presentation regarding the rate structure. He stated that the report has been available for review for several weeks now. The system used in both the water and sewer rats studies is consistent with prior rates studies performed for the City and conforms with the American Waterworks Association procedures for water rate studies and with the Water Pollution Control Federation's recommended procedures for sewer rats studies. Bickel explained there are three basic parts: 1. The development of the revenue requirements. Customer numbers are projected, as well as volumes of water and wastewater and the revenues that would be derived under the existing rates. Operation and maintenance expenses ars also projected and capital costs of the utility. These are all incorporated into a cash flow statement on a five year study period. 2. The allocation of costs referred to as functional cost components. These are base rates of use, maximum day use in excess of the average day, maximum hour usage in excess of the maximum day usage, fire protection, and customer related costs (reading meters, preparing bills, etc.). For the sewer utility, the functional cost components are volume of wastewater treated, the strength element of that wastewater, and customer components. Allocations are also made according to customer classes, developing unit costs for each customer's class requirements. 3. The design of the actual rate schedule. The first consideration is recovering the total amount of revenue required for placing the utility on a sound financial basis. The total cost of water increased $3.5 million from the 1989 test year (previous study) to the 1992 test year in the current study. Due to financing plan development, revenue increases would be as follows: 17% for mid-1990 12% for 1991 11% for 1992 9% for 1993 8% for 1994 The initial increase would manifest itself as a $2.73 increase on the typical residential customer's bill. ' July 17, 1990 Sewer increases are consistent with inflation and the requirements of financing a Capital Improvements Program. The sewer increases would be as follows: 6% for mid-1990 5$ for 1991 .5$ .for 1992 6% for 1993 8% for 1994 The initial sewer increase would, affect the typical residential customer's bill by $1.19 per month. Combined increase for water and sewer would be $3.92 per month. Bickel stated that by adopting the indicated rate schedules estimated revenue requirements could be met by placing the utility on a sound financial basis. Mayor Martin asked if the current rates were covering the cost of service, and Bickel responded that the current rates were slightly below the costs of service, as demonstrated by the declining working capital balance on hand. Martin asked if the rate increase schedule coincided with annoc^ced increases at the Beaver Water District. Bickel answered that .:.hey did to some degree as the mid-1990 increase was to off -set that cost. He also stated that by using some of the fund balances on hand, a small portion of the rate increase would not be passed along to the City customer. Mayor Martin asked what the outcome would be for the five year period if rates stayed the same. Bickel responded that there would be a cumulative deficit. over the five year period of approximately $9 to $9.5 million. Martin asked how much of the total cost of service was attributed to the cost of purchasing water. Bickel stated that, using 1990 as an example, the cost of•purchased water. was somewhat over $3 million or about 60% of the revenue requirements of $5 million for 1990. Director Vorsanger questioned the number•of,.studies Bickel's firm had done for the City of;Fayetteville,-and-Bickel stated that they had done 4 water rate studies and 3 sewer rate studies over the past 15-20 years. Vorsanger asked howthe new rates would compare with other cities. Bickel-stated•that.he did not have any figures to give on the subject but cautioned that any comparisons made just for general information purposes were fine, but the comparisons do not tell you what type of system each city had, the city requirements and so on.• • 246 July 17, 1990 Linsbaugh stated that the survey the City had performed on water rates had shown that rates in Bentonville, Rogers, Springdale and Fayetteville were some of the highest in the state. The cause was primarily seen as the majority of the cities in the state use some type of well water system and the cost for treating that type of water is much lower. Cities in Northwest Arkansas use lake water, and it is expensive to treat. He stated other cities in the state will increase rates substantially at some point in the future but Fayetteville gust deal with the situation at hand now. Sharolyn Bennett, a resident of Custer Lane in Fayetteville, addressed the Board. Shs stated that her family's water bill ran over $35 for one month when they were out of town, and she did not understand why the costs were high when usage was not. Shs spoke against the rate increase and asked if other solutions had bean looked into. She stated she was told that her water meter was read in the month of December and the rate of usage was basad on that reading for the rest of the year. Mayor Martin asked Linebaugh to explain the winter averaging rates to Ms. Bennett. Linebaugh stated rates are averaged based on three winter months and applied for the rest of the year. Sewer rates are based on water usage, so this averaging keeps people from paying higher sewer rates in peak water usage months when the majority of the water is used for watering lawns, pools, etc., and does not go through the sewer system. Mayor Martin asked if any consideration was given to actual consumption to allow for cases like Ms. Bennett's when they were not even home for three months. Linebaugh stated that the winter amount charged for December, January and February is for the lowest months of usage and seems to be the most fair. It was explained that if someone watered heavily in the summer, they would be charged more for water but the sewer would not go up accordingly. Martin also addressed Ms. Bennett's question of possible mis- management or mis-appropriation of funds and Linebaugh explained several safeguards for the citizens in regard to such a happening. He pointed out that the City has an internal Auditor that reports directly to the City Manager and is reviewed continuously all year round. There is also an audit performed each year, along with other procedures to prevent mis-management from happening. Mayor Martin recounted a recent award given to the City for its financial controls, which is precisely what would prevent mis- allocation of funds from happening. He stated that any citizen having a question about their rates or the amounts they have been charged should contact Sharon Lacey at the Water & Sewer Department and then if they were not satisfied, contact Linebaugh at the City Manager's Office. Linebaugh stated numerous costs within the bill July 17, 1990 include the meter charge, sewer charge and sanitation, which are all fixed rates per month. He stated that the rate increase was being passed through with much regret but felt it was necessary to provide quality service. Al Vick, resident, questioned how the current growth projections for the next twenty years would affect the water and sewer rates beyond the estimated five year period estimated presently. Bickel stated that projections that far into the future had not been made and he explained that assumptions regarding inflation rates, growth, number of customers and the usage of those customers were all factors in projecting increases and the further into the future estimations are made, the higher the degree of error so the projections were made for only a five year period. Director Vorsanger stated that the cost of the new 36" water line from Beaver was not reflected in the rate increase because the City was using sales tax money and bonds to finance the project to keep from passing the cost on to the consumer. He said in all reality rates would never be reduced and, in fact, continue to increase. Concerning requesting the wholesale portions omitted from the ordinance, Linebaugh explained that in the public hearing on July 12, 1990 many organizations outside of the City complained about the amount of the increase they would be receiving, as it is higher than the increase for inside City customers. The reason for this is growth is increasing as never before with new developments and they will pick up a greater percentage of the cost for getting the water and other services to them outside the City. Another reason those customers are charged a rate of return is the fact that, in providing the services for the businesses and such outside the City, the amount spent providing such services for them would otherwise be invested in the water and sewer fund. Therefore, a percentage is calculated and translated into a dollar amount (approximately 8.8%) and charged as a rate of return. In fairness to the Rural Development Authority, Linebaugh stated that he proposed delaying their portion of the increase until September 1, 1990 to give them time to study the detailed costs allocated to them. This delay in the wholesale rate increase was agreed upon. 24% Upon roll call, the ordinance passed, 6 to 1, with Green abstaining. ORDINANCE NO. 3491 APPEARS ON PAGE.0OP ORDINANCE AND RESOLUTION /CV BOOK . MATERIALS RECOVERY FACILITY Mayor Martin introducedreonsideration of a resolution approving a site for the Materials Recovery Facility and appropriate site acquisition measures.' 248 July 17, 1990 There was a public hearing Tuesday, July 10, 1990, at 7:00 p.m. in Room 326 of City Hall to receive input on seven proposed location. Using the input from the meeting and the various ranking criteria, Staff has made a recommendation to the Board of the Futrell Drive site as the first choice and the Bypass location as the second choice. City Attorney Rose read the resolution. Kelley, seconded by Martin, made a motion to approve the resolution. Linebaugh explained the process the City had used for establishing plans for the facility, including public hearings and land criteria and narrowing the possible sites before the Board at present. Hal Morton gave a brief presentation regarding the two possible sites for construction and the facility itself, outlining the two options considered most viable for Fayetteville. He stated that the goals and objectives were to emphasize and encourage reduction of generated waste, maximize composting and recycling, keep recovered resources locally, and maintain long-range flexibility regarding technology. Morton pointed out that regional facilities are eligible for state funding, federal grants, and low interest loans. This would also provide economic benefits for the host city of the facility. key points in the selection process: - looking for industrial -zoned properties - level of development and current use of the properties - parcel sizes - regulatory floodway restrictions - adjacent land uses and zoning - local traffic disruption - access to major highways and rail service -regional site accessibility - availability of utilities - isolation from non -compatible land uses - floodway problems and site drainage costs - public acceptance of the site Slides were then shown of possible appearances and technology of the facility. Director Marinoni asked if the final property selection would come before the Board again before a decision was made as the resolution stated that the City Manager could proceed at his discretion. Rose stated that a contract for purchase of sale would be presented by Linebaugh for approval of rejection by the Board. Morton outlined the `July 17, 1990 Director Kelley asked if all decisions and plans being made were in concert for a regional facility as well as the best decision for the City of Fayetteville. Morton explained that advisors and consultants all agreed that this was so and the facility would definitely fit into a long term regional plan. Director Spivey asked Morton if all plans and decisions being made so far would commit the City to a regional facility. Morton replied that this would not commit the City to a regional facility. Spivey asked what happens to the liquid portion of the wastestream. Morton explained that all of the operations, including tipping, loading and transfer trailers would be indoors and on concrete slab. The hose -down, dust control misting and other liquid would be contained in the facility and channeled through the sewer system. Spivey asked about safeguards against contamination in the system, and Morton stated that the primary threat seemed to be household hazardous waste and potentially infectious waste, but the type of facility proposed would have the ability to separate and collect those materials before they entered the wastestream. Director Green expressed concern regarding the infancy of the Materials Recovery Facility concept and the lack of experience and data regarding potential problems. He stressed addressing the safety concerns and proceeding with great caution. He also expressed concern about the end product results and compatibility of future goals and criteria of the regional committee. Morton agreed that the facilities were indeed relatively new in this country but had been used for over twenty years in Europe. He stated that even though the wastestream and markets are different, the technology for handling those materials are essentially the same. Linebaugh assured Green that the approach was to be with the least dollar investment possible in case of technology changes in the future but that the planning stages would be over soon and a contract drawn up as the landfill problem was a very real concern. Mayor Martin questioned Morton regarding,the pollution aspect of the facility, and he assured Martin that no combustion would take place at the facility and there were some systems they were looking at presently to control dust on the tipping floor. There would also be no odor. Martin described the Futrall site as having dense woods to the south, Baldwin Piano & Organto the east and a small housing development to the north. He asked Morton how the facility could 2�0 July 17, 1990 be hidden from the neighborhood. Morton answered that vegetation along the side could act as a buffer for the development. Director Vorsanger pointed out that in using the Futrell site, the trucks would use Futrell Street and prevent the use of Hollywood Street, which borders the neighborhood and the McDonald's on Highway 62. Joe Albrook, resident of Foxhunter Road, addressed the Board and asked thea to reconsider the location of the facility next to any residential area. He stated hs believed that the truck drivers would anter and exit the facility on any thoroughfare they wished. Mayor Martin explained that the only entrance into the facility would be off of Futrell Drive, forcing the use of the one street. Mrs. Bennett, resident, addressed the Board and reminded them of the meeting held on 3/13/90 when a proposal for a Cato Road sits was discussed. She questioned the absence of odor or pollution problems at the new facility and also the site. Bennett suggested locating the facility much farther out of any type of residential areas and stated that she felt the facility was not the answer to the waste problem. When asked by Mayor Martin what method she would propose to remove the recyclables from the wastestream and take care of the remaining solid waste, Ms. Bennett stated she had no answer. Martha Noble, resident of North Palmer, addressed the Board on behalf of the Ozark Headwater Group of the Sierra Club She stated that the organization strongly approved of the city's siting method and was pleased that the City would consider large scale recycling efforts. Noble urged the City to join with other local governments in the area to use the same criteria or process to put in effect a regional plan and perhaps consider a site outside the City of Fayetteville if that might be possible. She stated that they strongly advocated public ownership of the facility, citing many advantages of public ownership including a shorter time factor to put the facility into operation, public financing and grants, and greater control of exactly where the wastestream originates. She also asked if any attempts had been made to develop a method such as a joint powers agreement to run a regional system or would the City be the sole owner of the facility. Morton explained that Mayor Martin is a member of the Regional Solid waste Planning Board, and it is felt that they ars the proper entity to spearhead the agreement approach for the facility. He stated he felt that would be a more successful approach than to have an individual owner such as Fayetteville alone. July 17, 1990 Jenny Borne, resident of Susan Carroll, thanked the Board and Directors Kelley and Spivey for addressing her same concerns with their questions. She concurred with the Sierra Club's observations and stressed the use of caution in the advancement of plans. Borne stated she was concerned with the collection of household hazardous waste and wastestreams from other cities not concerned with waste reduction. . Mike Eric, resident of West Custer, addressed the Board stating that he resides in a neighborhood directly South to the proposed site. He stated that he felt when the wind was from the North, the odor would be too much. He also stated that trucks drop litter along their routes from time to time and felt that this would be a problem. Eric stated that the location'was also extremely close to Ramay Junior High School West Campus, several motels, restaurants and a shopping 'center, and if anything at all went wrong, it could be very serious. He suggested the location be moved out by the bypass away from densely populated -areas in the City. Tina Gabbard, resident of Lindell street, addressed the Board and expressed her concerns. She stated that small children already know about the recycling•process in school', and because of its importance to the future, some decisions"need to be made soon even if some mistakes were made along the way. Director Lancaster stated that everyone agrees that the landfill opportunities are short-lived. He wondered -what other cities will do when the landfills are closed and no prior arrangements have been made for the wastestream. Mayor Martin stated that he felt other cities were depending on the Regional Planning Group. Morton stated that the other cities in the region are currently` served by two major private firms currently operating the two landfills in the area and they seem to be promising their customers that when these two sites are filled they will have a third landfill. He stated that the figures received from the State Department of Pollution Control and Ecology indicate that the landfills are approaching closure and that, even if a new landfill were opened, with the new -landfill regulations, it would be a minimum of three to four years to have a new landfill operational. Director Spivey stated that he felt Fayetteville was a long way from being a regional site and emphasized the need to proceed with caution making sure it was a planned process. Director Vorsanger stated that he felt the next step would be for staff to bring information on costs of the sites and all pros and cons back to the Board for a decision. 251 • • 252 July 17, 1990 Mayor Martin stated that a vote for this resolution would be to authorize staff to negotiate the bast figures for a contract of purchase and a vote against would only be delaying the inevitable steps to a material recovery facility. Linebaugh asked Ross to read the resolution again. Director Green asked if there would be time for additional public input for the subject until negotiations stopped, and Director Kelley stated that he felt a vote for location of the site was a definite indicator of where the facility should be located. He stated that discussion regarding the specific type of facility might need further public input but as far as the location of such site was concerned, the vote for or against the resolution should be taken at this meeting presently. Upon roll call, the resolution passed by a vote of 7 to 0. RESOLUTION 115-90 APPEARS ON PAGE OP ORDINANCE AMD RESOLUTION E00E CAUDT•F REZONING Mayor Martin introduced consideration of a request filed in R90-16 by Dennis, Dale and Jeff Caudle for property fronting on Wedington Drive and Rupple Road. The parcel consists of 5.05 acres fronting on Wedington Drive and Rupple Road. The request is to rezone from A-1, Agricultural to C-2, Thoroughfare Commercial. Staff recommended rezoning to R -O, Residential Office, to keep the area in harmony with the type of growth the City has encouraged in that location, subject to a bill of assurance on tree preservation. The Planning Commission recommended unanimously rezoning the North (back) 3.5 acres to C-2, Thoroughfare Commercial, with a bill of assurance that it will be limited to mini -storage development and that the access would be from Rupple Road and to recommend a rezoning of the South (front) 1.5 acres to R -O, Residential Office. The ordinance was read for the first time. Director Marinoni, seconded by Kelley, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed 7 to 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 7 to 0. The ordinance was read for the third time. Upon roll call, the ordinance for rezoning passed unanimously. ORDINANCE 10.0/"APPEARS ON PAGE1Sd 0P ORDINANCE AND RESOLUTION NOOK xxV July 17, 1990 McCANDLESS REZONING Mayor Martin introduced consideration of a request filed in R90-14 by George Leonard McCandless for property located on the North side of Sycamore, West of College Avenue. The request is to rezone the property from R-1, Low Density Residential, to C-2, Thoroughfare Commercial. Staff recommended rezoning to R -O, Residential Office. The Planning Commission agreed with the staff recommendation and unanimously recommended to rezone R -O. The applicant agreed that the R -O zoning would be acceptable for the development he plans for the property. yAx The ordinance was-readfor the first time. Director Marinoni, seconded by Kelley, made a motion that the`rules be suspended and the ordinance be placed on its second reading. Upon roll call, the motion passed by a vote of 7.to 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 by a vote of 7 to 0. The ordinance was read for the third time. Upon roll call, the ordinance was passed unanimously. • ORDINANCE NO. 3493 APPEARS, ON PAGE0240 OF ORDINANCE AND RESOLUTION BOOR XK J SEWER EASEMENT CONDEMNATION4 Mayor Martin introduced for consideration anXordinance condemning sewer easements on two (2) properties in connection with an on- going construction project. Staff is seeking Board approval to exercise the city's right of eminent domain in obtaining these two easements: 1. Robert L. Vaughn Estate - A 20 foot wide permanent sewer easement and a 10 footiwide temporary construction easement on the property located north of Highway 16 East and is adjacent to South School Street. 2. George Flowers - A 20 foot wide permanent sewer easement and a 10 foot wide temporary construction easement on the property located east of Mill Avenue and south -of Rock Street. There have been several factors delaying the acquisition of these properties, and the City will need possession of these easements before the negotiations can be complete. In this regard, staff is recommending this action. 254 July 17, 1990 The ordinance was road for the first time. Director Kelley, seconded by Lancaster, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed 7 to 0. The ordinance was read for the second time. Director Kelley, seconded by Lancaster, 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 7 to 0. The ordinance was read for the third time. Upon roll call, the ordinance passed unanimously. ORDINANCE 10.3f14 APPEARS ON PAGE,i61 OF ORDINANCE AND RESOLUTION BOOK KKf ARTS FOUNDATION BOARD Mayor Martin introduced for consideration a report from the City Board Nominating Committee for appointments to the Arts Foundation Board. As Chairman of the Committee, Director Kelley announced two appointments: 1. Mark F. Renner to an un -expired term ending 6-31-91 2. Elaine Longer to a term expiring 6-30-93 Kelley, seconded by Lancaster, made a motion to approve the appointments. Upon roll call, the nominations were confirmed unanimously. SCHOOL SYSTEM GRANT PLAN Mayor Martin introduced for consideration a resolution approving a grant plan to the Fayetteville School System. City staff recommends approving the resolution wherein the City and the School System can enter into a contract to transfer funds from the General Fund over a ten year period into an escrow account with which it will pay for the school improvements. After several legal opinions, the consensus of opinion is this method will allow the City to fulfill the commitment made to the schools and to accomplish what the voters asked for in the November, 1988 election. The resolution was read for the first time. Director Kelley, seconded by Vorsangsr, made a motion that the resolution be adopted. City Manager Linebaugh explained that because of negative legal opinions, his office began an attempt to find a plan that would July 17, 1990 provide the school system with the money it needed to continue construction of the high school addition and other needed improvements. He stated that School Board member Jack Butt and the School Superintendent were involved with both bond counsels so they would be completely informed of all happenings and exactly how decisions were reached. There is one out of seven alternatives that is both financially and legally possible and that was the use of non -regular tax revenues. The plan was reviewed by both the City Attorney and the Rose Law Firm and declared legal. The plan is to give $1 million, plus interest, and place the first $2.6 million in escrow as a first payment. Director Vorsanger questioned the payment PLUS interest and Linebaugh explained that it would be similar to taking out a $10 million bond issue, paying interest on the $10 million and then on the decreasing balance at a rate of 6.5%. Director Lancaster questioned what the total payment would equal and Linebaugh stated that it would be approximately $13 million which was the $10 million plus the interest earned. Director Green stated that due to the fact that his firm was directly involved with the school, he would be abstaining from the vote.. Upon roll call, the resolution was adopted by a vote of 6 to 1, with Green abstaining. 4 • RESOLUTION 116-90 APPEARSON PAGE RESOLUTION BOOK OTHER BUSINESS KEEN -PROPERTY ANNEXATION • OF ORDINANCE AND • Linebaugh stated the owners are attempting to achieve sewer service by the City since the property is directly adjacent to the City Limits. , -Director Marinoni stated if there was no real immediacy, it would be prudent for the Board to see the property before making any decisions and recommended that it be considered at the agenda session for next board meeting. Director Kelley suggested the request was fairly routine and felt it was not really necessary to make the property. owners wait until the next board meeting for annexation. 255 256 July 17, 1990 Linebaugh stated that it was indeed routine, and the City requested the annexation of the property. The ordinance was read for the first time. Director Kelley, seconded by Martin, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 6 to 1, with Marinoni voting against the ordinance. The ordinance was read for the second time. Director Kelley, seconded by Martin, 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 to 1, with Marinoni voting against the ordinance. The ordinance was read for the third time. Director Marinoni questioned whether or not the property in fact did join with the city limits, and Staff confirmed this. Director Green stated that the property was in line with the direction of any projected annexation and stated that he was definitely in favor of approving the request. Upon roll call, the ordinance passed by a vote of 7 to 0. ORDINANCE NO. 349S APPEARS ON PAGE 24.-C OF ORDINANCE AND RESOLUTION BOOK XX d ATTORNEY GENERAL APPEAL Linebaugh stated that at a meeting of numerous mayors of Northwest Arkansas, Attorney General Steve Clark gave a review of the 10th Circuit Court of Appeals judgment. Clark stated that ha does wish to appeal the decision. Linebaugh stated that it was an important issue and the Board should act upon the City Attorney's recommendation for a re -hearing before the entire 10th Circuit Court of Appeals and to seek a stay of the order. He stated that the Attorney General's Office would be doing most of this, requiring very little cost to the City of Fayetteville. Mayor Martin made the motion to appeal, seconded by Vorsanger. Upon roll call, the resolution was unanimously adopted. RESOLUTION 117-90 APPEARS ON PAGE OP ORDINANCE AND RESOLUTION SOON ADJOURNMENT The meeting was adjourned at 10:55 p.m.