Loading...
HomeMy WebLinkAbout1990-09-04 Minutes• MINUTES OF A MEETING OF TBE -CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville, City Board of Directors was held on Tuesday, September 4, 1990 at 7:30 p.m. in the Directors' Room of the City Administration Building at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Directors Russ Kelley, Paul Marinoni, Jr., Shell Spivey, Fred Vorsanger, Michael Green, and Ernest Lancaster; City Manager Scott Linebaugh, City Attorney Jerry Rose, City Clerk Sherry Thomas; members of the staff, press and audience. ABSENT: Mayor William Martin CALL TO ORDER The meeting was called to order by Director Fred Vorsanger, with six directors present. Vorsanger asked those present to stand and recite the Pledge of Allegiance and then asked that a brief moment of respectful silence be observed. Director Vorsanger welcomed those present and stated that he would be presiding over the meeting as Mayor Martin was out of town. He stated that, in discussing the items on the agenda for the evening, each speaker would have 2 minutes to make their point whether it be pro or con. He stated that people in the audience wishing to discuss with the Board of Directors items not on the agenda would be addressed after the regular agenda items as other business. CONSENT AGENDA Director Vorsanger introduced consideration of items which may be approved by motion or contracts or leases which can be approved by resolution and which may be grouped together and approved simultaneously under a "Consent Agenda". He 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. Vorsanger read the items as follows: A. Minutes of the -August 21, 1990iregular Board meeting. B. A resolution awarding bid 90-38•to the low bidder, Ace Acoustics and Drywall, Inc., of Springdale for T-Eangar firewalls at a price of $10,452:00. Staff recommends awarding the bid for this budgeted project. ,.. RESOLUTION 132-90 APPEARS•ON PAGE OF ORDINANCE AND RESOLUTION BOOK • 28: September 4, 1990 C. A resolution approving a contract with Youth Bridge, Inc., for disbursement of a grant for construction of a shelter for runaway or homeless adolescents and conditions of occupancy after the construction is complete. The Board approved a $65,000 grant to Youth Bridge in the 1989 Community Development Block Grant budget. Staff recommends approval of this contract. Youth Bridge will own the facility, so the City will not incur expenses for maintenance and insurance which are expenses not eligible for CDBG funding. RESOLUTION 133-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK D. A resolution approving the payment of $14 Niblock Law Pira for July 1-31, and of McDermott, Will i Emery for April 1-30 rendered on the incinerator disengagement Infoaation Act lawsuits, and approval adjustment. ,745.94 to the $49,4136.21 to for services and Freedom of of a budget Staff recommends approval of these payments. RESOLUTION 134-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK Director Marinoni, seconded by Kelley, made a motion to approve the Consent Agenda. Upon roll call, the motion was passed by a vote of 6 to 0. Vorsanger recognized candidates running for certain Board member positions in the audience. AIRPORT COMMISSION REOUEST President of the Fayetteville Chamber of Commerce, Steve Ward, gave a presentation regarding a Chamber recommendation that the City pursue the development of an Airport Commission. It had been mentioned earlier that the Chamber of Commerce was not addressing the issue of a regional airport, and he reminded everyone that the Chamber had taken a stand in favor of a regional airport. Ward stated that the Chamber of Commerce recommended the Commission as this would bring some long-range planning processes and eliminate duplicate efforts as it exists today. He stated that the Commission would also attract the community leadership having a direct concern for the airport and it's services. It was felt that a Commission would focus directly on Drake Field and the specific needs of the facility. t8±:81; FSeptember 4, 1990 Director Kelley, seconded by Green, made a motion to approve the bid waiver and contract Mcllroy Bank & Trust as the City's Trustee for the bond issue. Robert Brandon asked if any of the Board members had professional or personal relationships with Mcllroy Bank, and Vorsanger answered that he did and would be abstaining from the voting. "Tiny" Hamilton addressed the Board in opposition of the Llama Company, citing several discrepancies in their business transactions for the County and urged the Board to think about setting criteria that only certain people or companies could follow. He stated there were too much "hurry up" decisions being made. Upon roll call, the motion passed by a vote of 5-0-1, with Director Vorsanger abstaining. RESOLUTION 135-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR RIGHT. OF WAY VACATION-HALSELL ROAD Vorsanger introduced for consideration an ordinance vacating an unopened.portion of the right of way on Halsell Road as requested by John S. LaTour, Johnnie Hoffman, Harrold McKinney, and the University of Arkansas. This item was tabled at the August 21 Board meeting. Staff recommends the vacation and the utility companies have given no opposition. 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. 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 rules. and place the ordinance on its third and final reading. Upon roll call, the motion passed unanimously and the ordinance was read for the third and final time. George Blackwell addressed the Board stating.. he used the street and did not want it closed. City Staff explained to him that the street was a platted street only and did not exist and pointed out to Mr. Blackwell on a map the location of,the street in question. Upon roll call, the ordinance passed unanimously. ORDINANCE 3504 APPEARS ON PAGEO&? OF ORDINANCE AND RESOLUTION )0(V • 286 September 4, 1990 REZONE WEST AVE. Vorsanger introduced for consideration an ordinance rezoning property located at 337 West Avenue as requested by Jeff Armstrong and Richard Berquist of Berquist-Armstrong Photography in conjunction with Marshalltown Tools. The petitioners are requesting rezoning from I-1, Light Industrial, to C-3, Central Commercial. This property is located on the west side of West Avenue midway between Dickson Street and Lafayette. The petitioners originally requested a lot split, but the Planning Office recommended a rezoning so that the requested use would confirm with setbacks, etc. Vorsanger stated that the Planning Commission had voted unanimously to rezone the property. 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. Upon roll call, the motion passed unanimously and 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 unanimously. The ordinance was read for the third and final time. Upon roll call, the ordinance passed unanimously. ORDINANCE 3505 APPEARS ON PAGEf9/ OP ORDINAINX E/ AND RESOLUTION BOOL ARTS CENTER Vorsanger introduced for consideration a resolution approving a change order to reinstate a portion of Item "Y" for the Walton Arts Center Construction in the amount of $12,968.00. Staff recommends approval of this change order which is for the drilled piers and structural steel work for the entry canopies and access ramp covers. There is approximately $75,000 available in contingency funds that may be used for Phase II items of the construction contract. Director Lancaster, seconded by Marinoni, made a motion to approve the resolution. Upon roll call, the resolution passed unanimously. RESOLUTION 136-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 287 September 4, 1990" Director Marinoni questioned the need to form another airport for the region when the existing airport affords quite a few benefits already. Ward stated that the need for additional and expanded air transportation in the years to come will need to be addressed and he urged the Board to look into it. Director Green asked to what extent the Commission would have regarding hiring and firing personnel and other aspects of the airport management. Ward stated that observing other airports with this type of system, along with studying what would be best for Fayetteville was the main objective, and the Chamber of Commerce would lend its full support in studying and researching all aspects of this. Director Kelley, seconded by Green, made a motion to accept the Chamber's report and instruct the staff to continue to work with Mr. Ward and submit a recommendation concerning the Airport Commission. Director Vorsanger invited the comments of City Manager Scott Linebaugh. Linebaugh stated that his office was in agreement with Ward and the Chamber. Upon roll call, the motion passed unanimously. LLAMA CO. BOND ISSUE A presentation was given by. Mike Phillips, a representative of the Llama Company regarding the 1990 Sales Tax Bond Issue. Approval was requested for a bid waiver and contract with Mcllroy Bank & Trust as the City's Trustee for the bond issue. Phillips stated that his company was engaged approximately six months ago to assist in structuring a bond issue for the City. He stated that Standard & Poor's rating of the bond issue, which will be secured in the form of a 1% sales tax, is an A-. He stated that this is substantially better than investment grade. Moody's Investment Service has given the City an A rating on the bond issue and the Llama Company felt -that due to the -amount of the issue, $33,000,000, bond insurance would be a cost effective measure on the issue. The insurance was taken out with Financial Guarantee of San Francisco. However, due to the cloud on the city's financial condition as a' result of the incinerator lawsuits, the insurance cost approximately $174,00.0 more than a standard policy would have cost. 1 Phillips also stated that a restriction will be placed on the City regarding future bond issues. For the City to be able to issue 2, September 4, 1990 additional bond issues, revenues to cover that issue will have to be 1.5 times the historic coverage of the maximum annual debt service to be outstanding. Phillips stated that the bond issue would be priced early next week. A selling group consisting of the Llama Company along with nine or ten other firms with representatives in Arkansas and the general market will be formed soon to meet and construct a bond ordinance which will be brought back to the Board at another meeting for consideration. Hs stated that the ordinance would contain provisions for adoption of the trust indenture which will define all the legal ramifications of the bond issue. There will also be a bond purchase agreement detailing the underwriting conditions. Ward stated after the bond issue is closed they will be able to pay for it 30 days after the date of the bond purchase agreement. Vorsanger asked about the reputation of the insurance company providing the bond insurance, Financial Guarantee. Phillips explained that Financial Guarantee is owned in part by USF&G, and the document the Board was presented included information concerning the company and their background, owners, and so forth. Spivey asked if the City incinerator litigation. asked if the ability to were to default on the would. was paying a higher premium because of the Phillips stated this was correct. Spivey issue bonds would be hindered if the City incinerator payoff. Phillips stated it Joe Robson addressed the topic of the City's credit rating and stated he understood that each bond issue was rated on its own merit. He also questioned the bid waiver and the fact that there had been no discussion about it during the meeting. Linebaugh made a clarification concerning the bid waiver, stating that this was a request for waiver of the Professional Selection Policy and agreement to name McIlroy Bank & Trust as Trustee and Registrar. He stated that McIlroy Bank was recommended after review of proposals turned in by both McIlroy and a bank in Texarkana. Director Spivey asked who was the low bidder. Kevin Crosson, Administrative Services Director, stated McIlroy Bank was the low bidder. Director Green asked why we needed a bid waiver if there were two bids. Linebaugh stated that the City did not go through the professional selection process because there were only two banks in the state that met the criteria determined by the bond company. • .6 September 4,1.990 r ARTS CENTER CONVEYANCE OF PROPERTY Vorsanger introduced for consideration a resolution authorizing the conveyance of a deed for one-half ownership of the Banks property (Walton Arts Center Project) to the University of Arkansas. According to opinions from the Attorney General's Office and the University of Arkansas, a resolution is needed before the University can take ownership. The City acquired this property through condemnation at a price of $260,000 of which the City paid the full amount. In order for the University to reimburse the City for their half of the property, a deed has to be conveyed. Director Marinoni, seconded by Vorsanger, made a motion to approve the resolution. • Upon roll call, the resolution passed by a unanimous vote. RESOLUTION 137-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR OTHER BUSINESS A&P AND BUDGET ADJUSTMENT Linebaugh addressed the Board requesting permission to hire a full time staff person which would consist of a $30,000 annual contract. He stated that the A&P would supply the funding for this additional City Staff person. Director Green, seconded by Kelley, made a motion for a resolution to approve the additional staff person and budget adjustment. . Upon roll call, the resolution passed by a vote of 6 to 0. RESOLUTION 138-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK ANNOUNCEMENTS Linebaugh announced that the oral arguments for the FOIA lawsuit will be heard in the Supreme Court on September 17. He also announced the Annual City picnic would be held Sunday, September 9 at 12:00 noon at Lake Wedington and invited any and all Directors to come and enjoy the fun. CHANGE IN CITY GOVERNMENT PETITION Robert Reus addressed the Board with a petition and requested fair verification of signatures. He voiced his opposition to the "gag" 290 September 4, 1990 order Director Vorsanger had placed on the citizens of Fayetteville by limiting the time for discussion to two minutes. Director Vorsanger stated that the petitions had been submitted to the City Clerk's office, and they would be verified, and if there were enough signatures, the question would go on the ballot. He further stated that no one was cut short by the time limit, and the meeting progressed smoothly without continued rehashing of old information. ADJOURNMENT The meeting was adjourned at 8:52 p.m. 1 1