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HomeMy WebLinkAbout1990-08-21 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 21, 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., Shell Spivey and Fred Vorsanger; City Manager Scott Linebaugh, City Attorney Jerry Rose, Clerk Sherry Thomas, members of the staff, members of the press 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 in the audience. He 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 said any questions for the Board or Staff should be directed to the Mayor. . r Before •beginning the meeting, Mayor Martin asked Linebaugh if there were any amendments to the Agenda. Linebaugh mentioned three items with the first being item #6 -Razorback Road Alley Vacation. Staff recommended that the item be pulled from the Agenda. Item #8 Alley Vacation by Medark Building was requested by a private citizen to be tabled for further discussion. Linebaugh explained that there have been numerous meetings and a public hearing on the matter and he recommended that the item remain on the Agenda. Item #11 -Collection Agency was requested to be tabled for the present and resubmitted for the next Board meeting in September. It was removed from the Agenda. REPORT TO THE PUBLIC A report to the public and Board was presented by City Manager Scott Linebaugh. The ,report for the -month of July included financial information, an update of staffactivities and items of general interest. • CITY CENSUS , Linebaugh reported that the preliminary count figures had been made available and they show Fayetteville's total population at 42,513. He stated that it was felt^that the figures might be somewhat low 271 f_*272 August 21, 1990 according to figures supplied by the Regional Planning Commission. It was suggested that the Census information be checked further, decide if it is reasonable and take action accordingly. FINANCIAL INFORMATION Linebaugh stated that the City's balance sheet for the month of July showed assets of $167.3 million, liabilities of $34.8 million and a fund balance of $132.4 million. Operating and non-operating revenues were $22,640,000 which increased from last year's total by $1.8 million. Operating and Non-operating expenditures totalled $23.4 million as compared to $20.1 million the same time last year which was a $3.4 million increase. Linebaugh explained that the reason for the increase over last year is an increased activity in capital projects, sales tax projects and the CIP projects. In summation, expenditures exceed revenues by $791,000. He stated that this was planned, due to the fact that the fund balance would cover this overflow and, in fact, the total amount was actually lower than had been anticipated. POLICE DEPARTMENT Linebaugh stated that the City currently has 17 Neighborhood Watch Program which are initiated by citizens who contact the Police Department indicating that they are interested in forming a group. The police officers then meet with the group of interested neighbors to discuss the program, order signs for the neighborhood and other things. The watch program operates on the simple principal of the neighbors staying on watch for unusual or suspicious activities in their neighborhood. MUNICIPAL COURT Linebaugh stated that for the month of July, the Court disposed of 1,406 cases as compared to 1,239 cases for the same period last year. The Court assessed $84,000 worth of fines and collected $75,000 on fines. PUBLIC WORKS To date, the Street Division has mowed approximately 630 miles of rights-of-way and spent approximately 2,000 man hours trimming and cleaning the city's rights-of-way. Linebaugh stated that they are doing everything possible to maintain the streets on their $185,000 budget. He stated city statutes require citizens to clean their right-of-way to the city streets. COMMUNITY DEVELOPMENT REHAB PROGRAM Linebaugh stated that owner -occupied residential housing was the major activity in community development. In 1989 the target area August 21, 1990 ,4 had 12 homes and $125,000 was spent with $40,000 going on minor rehab. In 1990, 27 homes are scheduled for rehab with expenditures expected to reach approximately $270,000. Coy Hurd, Community Development Rehab Specialist, and Jan Simco, Community Development Coordinator, presented a program outlining the diverse services of the department of the City of Fayetteville. The primary objective of the Community Development Division was stated to be the development of decent, affordable housing and the promotion of neighborhood revitalization. Hurd stated that achievement of these goals could be done through such things as street improvements, parks, water delivery or storm water systems and public facilities. He explained that activities are funded through the Community Development Block Grant which is awarded to the City each year by the Department of Housing and Urban Development. He gave a detailed account of past development and explained some of the programs and fund usages, including the Housing Rehabilitation Program by giving a brief slide presentation. INCINERATOR DISENGAGEMENT SUIT Counsel for the City of Fayetteville, Walter Niblock, presented a report on the status of the disengagement lawsuit and the Freedom of Information Act suits. He stated that some progress had been made and a hearing held on July 7. He gave a rundown of the proceedings, including the judge's ruling that their plaintiff in the class action suit will be tax payers as well as rate payers. After the court heard testimony from Harold Roudabush, it was determined that he would not be allowed to be the new plaintiff in the case. As a result, Katherine Barnhart was designated to be the new plaintiff in the case. Judge Adams refused to stay the proceedings in state court so that the case could be heard in federal court as the city's attorneys hadmrequested. Therefore, the case will have to be Beard in state court and then in federal court. • On July 7, Ms. Barnhart filed a third amended complaint in the case. The city has -filed an answer to this new pleading. Union National Bank has not•yet filed their'answer. The judge set the pre-trial hearing for September 24, 1990. The hearing on the motion for summary judgment 'has lbeen set for October 22, and November 22 is the date set-to hear the remaining issues. e Director Green asked what has currently been paid in attorneys' fees. Linebaugh stated that he did not have exact current figures, but it was over the $500,000 amount. Marinoni asked why the McDermott, Will and Emery law firm was so far behind in billing, and Linebaugh,answered that he had asked them to become current in'billing so an accurate total could be kept but he did not know -the reason they were approximately five months behind. `: 274 August 21, 1990 Mayor Martin stated the Board has been criticized for the massive legal expenses regarding these cases. He stated the voters of Fayetteville said to disengage from the incinerator project, so the Board engaged legal counsel and proceeded the disengagement efforts. He stated the root cause of the fees has been caused by the City having to defend itself against a suit filed by its own citizens. Martin asked Niblock if this was a true summary of the situation. Niblock agreed that this was true. In fact, the City has not sued anybody except the proponents of the FOIA action. Kitty Gay pointed out that the third party defendants have been brought into the suit by the City. Niblock stated the City was being forced to respond to all of the different actions and complaints that have been filed, and all of these various actions are what has driven the attorney fees so high. Martin stated the Board felt the obligation for the City to repay the bond, and legal counsel stated it would be wise to do so. He stated the Board was trying to save the City money in the long run by meeting the City's obligations and avoiding any future adverse effects on the city's credit rating and ability to operate effectively. Martin asked Niblock if the City gave up the current lawsuits, would this end the litigation and legal expenses. Niblock stated that it would not, rather the bonds would be paid off by FGIC, and then they would in turn file suit against the City for failing to meet the payments on its obligation. In addition, the city's financial and credit ratings would suffer greatly which would cost taxpayers much more in the long run due to the higher costs of borrowing money, if money could be found at all based on the damaged credit rating. David McWethy, resident of Fayetteville, addressed the Board with comments regarding the FOI portion of the lawsuit. He felt the City was wrong in not turning over requested documents as he felt all papers should be considered public information. He stated that the money spent on attorney fees could have been better spent on parks, roads, libraries, etc. Joe Robson addressed the Board with comments regarding the incinerator lawsuit. He stated the plaintiffs in the case should not be looked at as "bad people." He stated the City had violated the state constitution by assuming the debts of another entity, namely the Northwest Arkansas Resource Recovery Authority. Robert Reus addressed the Board with comments regarding the incinerator lawsuit. He felt the judge wanted to move the case along, but the City and their attorneys are delaying the case by filing stays, etc. He felt Arkansas courts should be the place where this constitutional issue is settled. He asked if there was `:275 q' August 21, 1990 a limit to how much money would be paid out in attorney fees to defend this case. Spivey stated if the City goes into default, it would be devastating to the city's credit rating, and then its ability to function and operate. He asked why the plaintiffs were so adamant to prove a point at the sacrifice of the citizens. Katherine Gay of the Niblock Law Firm explained the stay procedure they were requesting in state court was to allow the federal court proceedings to continue. This would enable the federal case to have a full set of parties that have claims to be decided to be included in the same case and all issues decided at one time. Otherwise, the case will be tried in state court and then tried in federal court. This costs the taxpayers twice. The stay, if granted, would save the taxpayers money. Robert Brandon addressed the Board and stated they had been asked to clarify issues about the liability on the bonds which they did not do which precipitated the lawsuit. He stated the Board caused the suit to be filed and all of the litigation expenses. He stated it would not be the City of Fayetteville that would lose its credit rating, rather it would be the Northwest Arkansas Resource Recovery Authority because they issued the bonds. Mayor Martin stated the Board has already been in contact with Moody's and Standard and Poor's, and they have confirmed that it will be the city's credit rating that will be affected. Director Green stated the same issues were merely being rehashed, and he felt nothing would be accomplished by belaboring this issue more. CONSENT AGENDA The Mayor introduced consideration of items.which may be approved by motion, or contracts and leases which can be approved by resolution, and which .may be grouped .,together and approved simultaneously under a "Consent Agenda". The Mayor explained that 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: s A. Minutes of the July 11 and July 13, 1990 Special Board meetings and the August 7,1.1990 -regular Board meeting; B. A resolution approving a budget adjustment in the amount of $63,814.17 and payment of $46,221.17 to McDermott, Will & Emery for the period March419 through March 31 and payment of $17,593.00 to the Nibiock Law Firm for the • 276 August 21, 1990 period May 1 through June 30 for services rendered on the. incinerator disengagement and Freedom of Inforaation Act lawsuits; RESOLUTION/JSt90APPEARS ON PAGE OP ORDINANCE AND RESOLUTION BOOK C. A resolution awarding a construction contract to Payette Tree & Trench for grads separation and water and sewer relocation on Highway 180 in the amount of $128,059.50; Staff recommends awarding the contract to the low bidder, Fayette Tree & Trench. RESOLUTION/.M7-9.APPEARS ON PAGE OP ORDINANCE AND RESOLUTION BOOR D. 1 resolution approving Change Order #3 on the Cato Springs Road-Eighway 71 water & Sewer relocation project for the net amount of $7,127.08; Staff recommends approval of these changes. This change order will delete change order #2 which was for $17,536.98. This change order is for changing the encasement line from 16" to 14" on the sewer crossing portion of the project and will cost $18,589.06 or a net change of $1,052.08. In addition, the change order will allow for the use of butterfly valves rather than regular gate valves which are designed to function better when subject to differential pressures at an increased cost of $6,075.00. RESOLUTION/16'9'APPEARB ON PAGE OF ORDINANCE AND RESOLUTION BOOK E. A resolution authorising purchase of property located at 145 E. Meadow at a price of 513,500 for the Detention Center Road right of way; Staff recommends purchase of the property. RESOLUTION/fl?'APPEARS ON PAGE 07 ORDINANCE AND RESOLUTION BOOK 7. A resolution awarding a contract to McCormick Paint Company in the amount of $79,345 for painting the Township and Methodist Assembly water tanks; Staff recommends approval of the budgeted item. RESOLUTION/19/.APPEARS ON PAGE OP ORDINANCE AND RESOLUTION BOOK G. A resolution awarding an engineering contract with McClelland Consulting Engineers for Nyland Park/Mt. August 21, 199014 Sequoyah water system improvements in an amount not to exceed $79,400.00; Staff recommends approval ofthe project that was budgeted in the 1990 CIP program. RESOLUTION/3a-73PPEARB ON PAGE Director Marinoni, seconded by Consent Agenda be approved as passed unanimously. REZONING APPEAL OF ORDINANCE AND RESOLUTION BOOK Vorsanger, made a motion that the read. Upon roll call, the motion Mayor Martin introduced for consideration an appeal to a decision by the Planning Commission to deny rezoning for property located at 34 E. Sycamore as requested by Stephen and Darlene Davis. This property is located on the north side of Sycamore and west of College Avenue. The Davis' are requesting the property be rezoned from R-1, Low Density Residential to R -O, Residential Office. Staff recommends that the request be denied as residential use of the property appears to be the most reasonable. The Planning Commission voted 4-2 to approve the rezoning request; however it takes a majority of 5 of the 9 members to approve a rezoning, so the issue failed. Mr. Gunderson, representing the Petitioners, addressed the Board concerning the results of the Planning Commission meetings on the subject. He asked the Board to either grant the appeal or to ask the Planning Commission to reconsider its action based on the fact that if all members had been present at the meeting, the issue may have received a majority of the positive votes. Lancaster, seconded by Kelley, made a motion to send the matter back to the Planning Commission for re -consideration. Upon roll call, the motion was passed unanimously. 4 UTILITY EASEMENT Mayor Martin introduced for consideration an ordinance abandoning a portion of a utility easement at 2417 Lensfield (Lot 18 of Park Place Addition, Phase III) as requested by Mike Roetzel. Staff recommends abandoning the utility easement, and the utility companies have given no opposition to .the abandonment. City Attorney Jerry,Rose read the ordinance 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 by a vote of 6 to 0, with Director 277 Vorsanger absent. The ordinance was read for the second time. Kelley, seconded by Marinoni, moved that the rules be further suspended and place the ordinance on its third and final reading. The motion passed by a vote of 6 to 0, with Director Vorsanger absent. The ordinance was read for the third and final time. Mark Roetzel, representing the petitioner, was on hand to answer any questions. Upon roll call, the ordinance passed by a vote of 7 to 0. ORDINANCE3499 APPEARS ON PAGE219 OT ORDINANCE AND RESOLUTION BOOK xx ✓ ALLEY VACATION II Mayor Martin introduced for consideration an ordinance vacating an alley located between Washington and Willow Streets, north of Maple, as requested by Mrs. Claudette Hunnicutt. Staff recommends vacating the alley. The city has no utilities in the alley and does not use the alley for any other purpose. The utility companies have given no opposition to the alley closing. City Attorney Rose read the ordinance for the first time. 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 by a vote of 7 to 0. The ordinance was read for the second time. Kelley, seconded by Marinoni, moved that the rules be further suspended and the ordinance be placed on its third and final reading. Upon roll call, the motion passed by a vote of 7 to 0 and the ordinance was read for the third and final time. Mr. Hunnicutt, representing the petitioner, was present to address any questions. Upon roll call, the ordinance was unanimously adopted. ORDINANCE NO. APPEARS ON PAGE.290OF ORDINANCE AND RESOLUTION BOOK XxV ALLEY VACATION III Mayor Martin introduced for consideration an ordinance closing the alley adjacent to the Medark Building and a resolution approving the construction of the extension to the County Parking Facility up to the property line between the First South Building and the Medark Building. Staff recommends closing the alley and approving the construction of the additional parking space. City Attorney read the ordinance for the first time. 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 0, with Director Green abstaining. The ordinance was read for the second time. Kelley, seconded by Marinoni, made a motion to further suspend the rules and place the 1 81:173 3 August 21, 1990 ordinance on its third and final reading. Upon roll call, the. motion passed by a vote of 6 to 0, with Green abstaining. The ordinance was read for the third and final time. Director Green explained that the reason for his abstaining from the voting was due to the fact that his firm was involved in the parking facility with the County. Woody Charleton addressed the Board and questioned whether the parking lot existing now at.the old Medark building would be used as means of access for traffic and Linebaugh assured him it would. Charleton explained his concern -that if the alley was tclosed completely, the "short-cut" traffic would be channeled to the Library parking lot. Linebaugh explained that the Detention Center Road will give passage through the area in question. Emelia Fulton addressed the Board as property owner on Connor Street adjacent to the alley property. She questioned if the closing was permanent or temporary. Linebaugh explained that the closing would be permanent. After describing where her residence was located, it was decided that Ms. Fulton lived some distance away• from the property in question and Linebaugh explained that there would be an extension to the Detention Center Road for traffic access. Ms. Fulton explained that she was concerned about ambulance and fire truck access and the Board assured her that they would continue to have access to the homes on Connor Street. Upon roll call, the ordinance passed by a vote of 6 to 0, with Green abstaining. ORDINANCE NOr/APPEARS ON PAGEOS OP ORDINANCE AND RESOLUTION BOOR STREET CLOSING Mayor Martin introduced for consideration a public hearing and an ordinance closing a portion of Cleburn Street from Park Avenue to Highland Avenue as requested by Lawrence Blaustein and Eve Lowery. Staff recommends approval of the closing and a utility easement will be retained over the. south 20 feet of the street right of way. The portion of Cleburn requested to be closed has never been opened and the utility companies. have no objections to the closing. Mayor Martin declared the `Public Hearing open and, hearing no comments for or against the street closing, declared the Public Hearing closed. City Attorney read the ordinance. Director Marinoni, seconded by Kelley, made a motion to suspend the rules • xXV H280 August 21, 1990 and place the ordinance on its second reading. Upon roll call, the motion passed unanimously. The ordinance was read for the second time. Marinoni, seconded by Kelley, made a motion to further suspend the ordinance and place it on its third and final reading. Upon roll call, the motion passed unanimously and the ordinance was read for the third and final time. Upon roll call, the ordinance passed by a vote of 7 to 0. ssn' ORDINANCE NO. APPEARS ON PAGE* OP ORDINANCE AND RESOLUTION BOOK XxV POLICE VEHICT•FS Mayor Martin introduced for consideration an ordinance waiving the requirements of competitive bidding which will allow the Police Department to purchase used vehicles during the next twelve month period to be used in the drug enforcement program. Staff recommends approval of the waiver which would give the Police Department authority to spend up to $6,000 and trade-in existing undercover vehicles on replacement vehicles. City Attorney Rose read the ordinance. Director Marinoni, seconded by Lancaster, 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 7 to 0. The ordinance was read for the second time. Marinoni, seconded by Lancaster, moved that the rules be further suspended 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 and final time. Linebaugh explained that the main reason for trading the undercover vehicles is that they become identifiable quickly and it becomes necessary to change vehicles from time to time. Upon roll call, the ordinance passed unanimously. 35-0, ORDINANCE NO. APPEARS ON PAGE OVOF ORDINANCE AND RESOLUTION BOOK It was noted that item Mil had been pulled from the Agenda until the September 4, 1990 Board meeting. INDUSTRIAL PARK Mayor Martin introduced for consideration a resolution authorizing the City to exercise the second acquisition option to purchase land in the southern Fayetteville Industrial Park. On September 22, 1989, the City entered into an option agreement with the Fayetteville Industrial Foundation to acquire over a four (4) year period 163.55 acres of land for $2,688,290.00. This :281 August 21, 1990 second year purchase includes Lot 14 which consists of 37.10 acres for $671,510.00. Staff recommends exercising the second option to purchase the additional 37.10 acres. Director Kelley, seconded by Vorsanger, made a motion to adopt the resolution. Mayor Martin stated that he was a member of the Board. of Directors for the First National Bank which owns some of the bonds that finance the Industrial Park and, even though he felt this option was nothing more than implementation of the decision made last year, he would be abstaining from discussion and voting. Linebaugh explained that this was not a purchase of an additional Industrial Park. Director Marinoni asked how much money would be lost on the deposit made last year if the purchase was turned down. It was explained by Economic Development Coordinator Richard Shewmaker that no deposit was made for any of the four years, just the right to exercise that option. Director Spivey explained that he would also be abstaining from the vote as he is employed by First National Bank. Robert Reus addressed the Board concerning the acquisition of the additional acreage and new business brought into the area this last year. Linebaugh stated that it was important to realize that in acquiring the Park there were several necessary improvements to be made to that particular area. He also explained that it might take as long as four to five years to get the program established in the park. Steve Moore, President of the Fayetteville Chamber of Commerce, addressed the Board concerning the longterm investment of economic development for the community and commended the city for their actions so far, encouraging them to take the second step in acquiring the acreage. Upon roll call, the resolution was adopted by a vote of 5 to 0 to 2, with Martin and Spivey abstaining. ram/ 0 RESOLUTION APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR BOARD NOMINATING COMMITTEE The Board heard a report by the Board Nominating Committee for vacancies on the Area Transit Authority•Commission, the Historic 282 August 21, 1990 District Commission and the Electrical Advisory Board. Director Kelley, Chairman of the Board Nomination Committee, gave the report. Kelley stated that there were no nominees for the Area Transit Commission and the Electrical Advisory Board. The one appointment for this meeting was to recommend Mr. Clark Davis to the Historic District Commission which Kelley made in the form of a motion. Director Marinoni seconded the motion. U?on roll call, the motion passed unanimously and Clark Davis was appointed to the Historic District Commission. OTHER BUSINESS Director Lancaster announced that he would not be a candidate for his position as City Board Director. Mayor Martin stated that the City appreciated the twenty-four years of service given by Lancaster. ADJOURNMENT The meeting was adjourned at 10:48 p.m.