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HomeMy WebLinkAbout1990-11-20 Minutes• MINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the -Fayetteville City held on Tuesday, November 20, 1990 at 7:30 Room of the City administration..Building Street, Fayetteville, Arkansas. fo i PRESENT: Mayor William Martin; Directors Michael Green, Ernest Lancaster, Russ Kelley, Paul Marinoni, Jr., Shell Spivey and Fred Vorsanger;_City Manager Scott Linebaugh, City Attorney Jerry Rose, City Clerk Sherry Thomas; members of the staff, press and audience. , Board of Directors was p.m. in the Director's at 113 West Mountain 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 and those watching the meeting on television. 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. REPORT TO THE PUBLIC A report to thepublic was presented by City Manager Scott Linebaugh. The report is presented at the second Board meeting of each month. The report for the month of October included financial information, an update of staff activities and items of general interest. FINANCIAL INFORMATION Linebaugh stated that the balance sheet at the end October listed assets of $181.7 million and liabilities of $47.2 million and a fund balance of $134.5 million. For the period ending October 31, 1990, total operating and non-operating revenues were $33.6 million. Total operating and non-operating expenditures were $52.8 million. He explained the reason for the difference in revenue versus expenditures was the paying off of the sewer sales tax bonds in the amount of $16.2 million and contractual services toward capital projects in the amount of $5.3 million. FIRE DEPARTMENT Linebaugh stated that the Fire Prevention Bureau spent approximately 130 man hours on the Highland Street gas problem in 35" November 20, 1990 October in conjunction with the Department of Pollution Control and Ecology investigating and assisting in clean up, providing data and resources to try and make the investigation go smoother. The training division completed the annual high-rise drills, hosted the officer training course conducted by the Arkansas Fire Training Academy and began an introductory training program for new firefighters. Also, a special class for fire personnel was conducted by a safety officer from a local hazardous materials handler and processor. The Fire Department also conducted their annual service tests of frontline fire apparatus, with two fire trucks failing the tests. Plans are being made to take the trucks in for tune-ups and pump checks. Linebaugh emphasized that just because the trucks failed the tests did not mean they did not work at all but meant that they were not able to pump at the recommended pressure like a newer truck would. POLICE DEPARTMENT Linebaugh stated there was a total of 1,811 training hours for the month of October. Training included handgun retention, management training, basic law enforcement training, International Association of Chiefs of Police training, Arkansas Area Council on Aging training and several other training sessions. COMMUNITY DEVELOPMENT Linebaugh stated that there have been six meetings of the Herbicide Task Force, with one held this evening. The city divisions using herbicides in their programs did provide detailed reports to the committees to show what was being used, how it was being used presently and when it was used. The Task force has examined several issues, as well as current research available on the subject and are expected to draft a policy, then conduct a public meeting to allow input from the citizens. After the meeting, a proposed policy will be given to the City Manager's office. ADMINISTRATIVE SERVICES Linebaugh stated that a new policy on Administrative spending restrictions had been in effect since the early quarter of this year. All divisions were instructed to reduce spending to try and alleviate foreseeable problems with the General Fund. Linebaugh stated that the reduction effort has resulted in approximately $162,000 worth of savings in 1990-1991. He stated that the reductions, along with careful scrutiny of all purchases had curtailed the expenditures sufficiently to allow continued operations at the current level for 1991. He stated that it was estimated that approximately $285,000 was saved through restrictive spending and cutbacks. • • 1November.20, 1990 Linebaugh stated as of January 1,..:1991., Judge Charles Williams will take 'office as Circuit Chancery Judge of Washington County and Governor Clinton will appoint someone to fill the Judge's position and will take office on January 1 , 1991, but since there is more than six months remainingt:on; Judge Williams' term, a special election will be required._, b ' i.. Linebaugh stated that several= Directors and staff members had recently returned from an Arkansas, Municipal League Meeting. Fayetteville received favorable comments on the agenda and the way it is handled in City Board Meetings. Linebaugh and Director Vorsanger accepted an award for Volunteer.Community of the Year for 1990 on behalf of the citizens of Fayetteville and stated that it was a great honor for the City. 4 Don Bunn, City Engineer, gave a presentation regarding major water projects. He stated that the budget contained funds for three types of water line projects and reviewed each type. First was projects related to the water systems study done by McGoodwin, Williams & Yates in 1989. This included the 36" water line. He stated that recommendations were expected by mid-December and engineering work should begin early 1991, with completion of the project by year end 1992. Cost was estimated at approximately $12 million. Waterline replacements or improvements were also recommended by the study. These consists of about six waterlines around town with the purpose being to improve system flows such as relating to fire flows within the system. Approximately $440,000 will be the cost of the project, with bids expected for December and completion in 1991. The study also recommended an improvement to the Mt. Sequoyah/Highland Park high pressure system. Improvements include renovation of two pump stations and the addition of elevated storage for the system. Engineering is being done by McClelland Engineering and they are probably mid -way in the process atthis time. Bunn stated that some of the residents of Highland Park had definite comments regarding the presence and location of the tank for the system. Possible alternatives for storage are being considered at present, and a report is expected for the first part of December. Bunn stated that the second type of project was waterline replacements around the City and work on three different contracts has been done and are approximately 85-90% complete at this time. Cost of the projects is in access of $900,000 and this includes replacement of 33,000 feet of line. Two other projects included tank painting and the water system telemetry, which is approximately 90% finished. The telemetry 3t November 20, 1990 system involves collection of data from the water tanks and water booster stations in the city. Bunn explained that this is also tied in with the sewer pump station monitoring. Bunn stated the total value of projects began this year is $15 million. CONSENT AGENDA The Mayor 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". 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 he Consent Agenda. The Mayor read the items contained in the Consent Agenda as follows: 1. Minutes of the November 6, 1990 regular Board meeting; 2. A resolution approving the payment of $35,138.18 to the McDermott, will & Emery law firm for services rendered on the incinerator disengagement, Freedom of Information Act, and Barnhart (formerly Robson) lawsuits, and approval of a budget adjustment; RESOLUTION 183-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 3. A resolution awarding Bid 90-66 to Diversified Recreation of Little Rock for the purchase of playground equipment in the amount of $12,152.05 for Asbell Park; Staff recommends awarding the bid for the equipment which is to be purchased from Greenspace funds. RESOLUTION 184-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 4. A resolution approving Amendment 41 to the Tolling Agreement with Rutak, Rock & Campbell; Staff recommends Board ratification of this amendment. RESOLUTION 185-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK Director Green requested that the minutes be pulled from the Consent Agenda and be considered separately. • November:20, 1990 Director Kelley, seconded by Marinoni, made a motion to approve the Consent Agenda. Upon roll call, the motion passed unanimously. F Director Green commented,that paraphrasing of the minutes of the Board meetings sometimes did not -adequately indicate the mood of the Directors or their positions •atitime. He stated that since the minutes are the official record of the meetings, more attention of what is paraphrased should be emphasized. Mayor Martin asked if Green wished to postpone consideration of that particular item due to lack of' information concerning discussion of that item, .and Green stated,that he felt nothing was omitted that was extremely"important or to the point. With that he made a motion, seconded by Kelley, that the minutes be approved. • Robert Brandon, resident..of Fayetteville- addressed the Board concerning the detailed billing from McDermott, Will & Emery. City Staff was instructed to provide Brandon with a copy of the detailed listing of services provided to the City with explanations. Upon roll call, the motion to approve the minutes were unanimously adopted. CDBG BUDGET PUBLIC HEARING Mayor Martin explained that the Board of Directors held the first public hearing on the 1991 CDBG at the last meeting, November 6, 1990. Mayor Martin stated that requests from various groups were made for funding and he asked Linebaugh if members of the audience had any type of summary of all requests made at the last meeting. Linebaugh stated they did and Mayor Martin explained that he would beparaphrasingthe different areas and requests. Mayor Martin stated that proposed project funding was as follows: 1991 Grant Funding Funds from past projects Total Anticipated Funding $400,000 255,700 $655,700 Projects, Costs and Recommendations were as follows: Residential Rehabilitation Public Improvements(target area) Fayetteville Taxi Program Parks & Recreation EOA Weatherization Acquisition REQUESTS $168,000 250,000 10,000 25,000 10,000 35,000 STAFF RECOMMENDATIONS $168,000 250,000 10,000 25,000 10,000 35,000 3 5' s'. t'. November 20, 1990 Disposition Clearance Target Area Design Standards Public Improvements/ Barton & Walker Streets Administrative & Indirect Costs Public Services* Youth Bridge, Inc. NWA Health Clinic "You Can" Program Sang Ave. Senior Center TOTALS 5,000 10,000 7,500 100,000 75,200 30,000 30,000 41,990 3.750 $801,440 5,000 10,000 7,500 0 75,200 30,000 26,250 0 3.750 $655,700 *Total expenditures for Public Services subject to statutory 15% cap or $60,000. Mayor Martin opened the public hearing for additional requests. Kathleen Randall, representing the Economic Opportunity Agency of Washington County, addressed the Board regarding the staff position for the "You Can" Program. Randall stated that she rewrote the proposal, eliminating the staff position and requesting scholarship funding only. Randall explained that the proposal involved a "mentoring" idea to be used in conjunction with the scholarship funding. She explained that the mentoring project would involve community volunteers to work with the students and take the place of an additional full- time paid staff person. She also stated that her original request for funding had been amended to the amount of $16,350.00. Mayor Martin declared the public hearing closed after allowing sufficient time for additional discussion or requests. Vorsanger, seconded by Kelley, made a motion to accept Staff's recommendations with the understanding of discussion of possible amendments to the budget in the meeting. Director Vorsanger expressed concern over the original amount of funding requested for the "You Can" program's administrative costs. He went on to say that in light of Ms. Randall's presentation, he now did recommend approval of the project. Director Vorsanger made a motion to approve funding of the "You Can" project in the amount of $16,350 and reducing funding of the NWA Health Clinic to $9,900. Director Green seconded the motion. Director Marinoni questioned other fund sources for the program. Jan Simco, Community Development Director, stated that some funding 35'rz November 20, 1990 did come through the Housing Bond turnback in years past but that is considered in the overall budget.' Linebaugh stated that Staff has recommended in the 1991 budget not to recommend funding since the Housing Bond funds are almost entirely -gone. 3 Director Spivey wished to state.for the record that he is currently on the Board at Youth ?Bridge and stated that he felt there was no conflict of interests at this point." He stated that he would be participating in the voting. Director Kelley expressed concern over the amounts of funding and ,, discussion was held about' the possibility of splitting funds between the two programs.. Simco.stated that it would be feasible to shorten the period of time funding began to coincide with the fiscal year. ,,,, • Director Vorsanger stated that he was in favor of the NWA Health Clinic but understood ,that their clientele was expanding to citizens outside of Fayetteville, while the "You Can" program was exclusively designed for scholarships,for Fayetteville students, particularly single parents. Mayor Martin referred to the testimonials given at the last Board meeting in support of the "You Can" program and stated that he did not personally support funding from the CDBG and believes there were alternative funds for scholarships. Upon roll call, the amendment was adopted by a vote of 5 to 2, with Directors Spivey and Martin voting in the minority. Mayor Martin then presented the CDBG budget, with amendment, to the Board for a vote. Upon roll call, the amended budget was adopted by a vote of 7 to O. WHOLESALE WATER RATES Mayor Martin introduced consideration of an ordinance approving the water rates for wholesale customers .for a five year period, retroactive back to August 1, 1990 and ending January 1, 1994. The Board of DirectorS tabled the issue and left the ordinance on its third reading at their November 6 meeting in order to allow Staff and the wholesale water customers, which include the City of Elkins, the City of West Fork, Mt. Olive, and the Rural Development Authority (RDA) of Washington County, to negotiate the rate increase. The Board has requested that briefs be submitted from both. City Staff and the wholesale groups. This information was be .available by the November 20 Board. Meeting. 358 November 20, 1990 Director Marinoni, seconded by Vorsanger, made a motion to remove the ordinance from the table. Upon roll call, the motion passed unanimously. Mayor Martin stated that the impact of the proposed rates as compared to what the wholesale water users feel they should be was determined by the differential rate of return. Martin stated that the differential rate of return originates from the question of who funded the existing water system and that this was largely the reason for the difference in the differential rate. Martin stated that it was explained in the last meeting and in the briefs presented that the current rates had a 6% rate of return built in. He questioned Kevin Crosson if that was a differential rate of return and Crosson stated that it was. Martin stated that discussion was to increase the differential rate of return from 6% to 9.8%. He acknowledged that the city's citizens are the rightful owners of the sales tax proceeds but also recognized the arguments presented by the wholesale water users that the City of Fayetteville was the beneficiary of their purchases and economic activities on a daily basis. Martin questioned if the proposed increase was just too large a raise, based on the impact of the customers. Kevin Crosson explained that the exact proposed rate of return was 8.8% with a 1% risk factor built into it. He stated that the revised compromised proposal was to eliminate the 1% risk factor in return for a long-term three year -plus service contract with the wholesale customers, resulting in an 8.8% rate of return. He responded to reducing the rate further by saying that the City's investment in the plant was an important consideration and the rate of return was justifiable. Mayor Martin explained that he understood the methodology in the development of the proposed rates and what had been done this far was fair in principle but the substantial customer impact of almost 50% remains for the cost of service. Martin suggested attempting to reduce impact by "splitting the difference". Crosson stated that, to be fair to all outside customers, the city would also be required to pass on the opportunity to Farmington, Greenland and the growth area. Linebaugh stated that to split the difference and spread it out across a five-year period, it would mean a difference of approximately $208,000 per year. Linebaugh stated that the prepared brief Option One demonstrated the lowest rate that could be dropped to without causing a rate increase for the citizens of Fayetteville, including reducing the 1% risk factor and the maximum daily demand factor for the wholesale class, which means a loss of approximately $60,000 from the recommended proposal of Black & Veatch. This would drop the November 20, 1990:' t rate of return down to 6% (Option Two), a $208,000 drop in revenue per year. This would require an .inside city rate raise of 4%. Linebaugh explained to "cut that. in half_' would mean a raise of 2%. Mayor Martin made a motion to amend the ordinance to include the provisions of Option One.- The motion failed for lack of a second. Linebaugh explained that Option One• is included in the Staff's compromised proposal and would not require a rate increase to the citizens of Fayetteville. Director Vorsanger asked,Staff to explain why citizen's water bills would be required to increase by $208,,000. to cover the loss of revenue. i Crosson explained that Staff's recommendation was, should the Board choose to lower the rate of return to 6%, that the same rate would be applied to all outside customers,. which would mean a .corresponding reduction outside rates. He explained that the revenue would be made.up by increasing the inside rates. The total revenue stream is composed of all rate -paying customers, both inside ratepayers and outside ratepayers and Crosson explained that the lost revenue would -have to be made up somewhere, thus the increase for city residents. Conversely, if rates were increased to. 10% for outside customers, rates could be lowered for inside customers. Crosson explained that the eliminated 1% risk factor would be only for the wholesale customer, not including Greenland, Farmington or the growth area. He again stated that in lowering the rate of return from 8.8% to whatever was agreed upon, Staff would recommend application to all outside customers. He emphasized that it would be subject to the Board's decision to do differently. Director Green questioned what percentage of interest rate would be paid for making the capital investment versus the rate of return. Linebaugh explained that the rate of return involved taking the transmission facilities provided by the City for the outside customer and receiving a capital return, and he stated that it really has nothing to do with an interest rate. He explained that the consultant calculates what the rate of return should be off of the plan and does not try to realize any interest for that period of time. Director Vorsanger asked what portion of the 36" line would be attributable to the outside water users. He stated that a memo by staff stated that "the wholesale water users are responsible for approximately 9% of the water demand, on both average and maximum daily basis." If the capital cost of the proposed 36" water line 359 :3GO November 20, 1990 is pro -rated to the wholesale users based on the share of the cost would be $12,300,000.00 X 9% He asked if south Washington County could pay would that affect their water rates. 9% figures, their or $1,107,000.00. that amount, how Linebaugh stated that it would substantially reduce them and essentially the largest part of the rate of return. Vorsanger stated that he felt this was asking the ratepayers in that area to pay off heavily, considering they had already invested approximately $4.5 million in running lines. Linebaugh stated that there were several other things that entered into consideration other than just the 36" line, but for the most part, Vorsanger would be correct. Director Marinoni stated that they were overlooking the fact that the outside users were not being given credit for coming to Fayetteville to spend their money and contributing to the 1 cent sales tax. He stated that the citizens of Fayetteville were paying for the other 91% of the line, including other things like schools, etc., with the 1 cent sales tax. He stated that he felt they were paying twice if they chose to come to Fayetteville and spend their money. Marinoni proposed amending the ordinance to reduce the differential rate of return to 8% to give the outside wholesale users "up front" consideration for their contributions to the sales tax for the City of Fayetteville. He put this into the form of a motion with Martin seconding. Crosson stated that the other customers in the outside area were paying O&M (operations and maintenance) their share of administration costs mentioned before. He stated that they are also sales tax payers and should receive some type of consideration or credit as the wholesale users. Director Marinoni was asked to clarify his amendment. He stated the reduction would only affect wholesale water users outside the City and not retail users. Mayor Martin withdrew his second of the motion. Crosson stated that the 36" line was only one element in the transmission system and total plant allocation that was being charged (8.8% or 9.8% rate of return). He stated that the transmission system covers all lines over 12". Director Marinoni's motion failed for lack of a second. Director Lancaster stated that he was in favor of the water project and the outside users but he could not support a program that would require a rate increase to fund it. He stated he could support something for cost of service only, with no profits. He also fat1 4 'November 20, 1990, _ stated that the sales tax' for the City of Fayetteville was voted on by the citizens of Fayetteville.and that Farmington, Elkins and West Fork could all vote for a sales tax if they so desired. Director Green voiced similar concerns to those of Lancaster. He stated that he wanted assurance.that the ratepayers. of Fayetteville were•not subsidizing or being subsidized.,,. Green stated that rates should have good reasonable basis and be supported by sound engineering studies and principles. He stated that no one on the Board was qualified to do a rate study and establish what rates of return were and some professional input was critical and important.' Green stated that Black & Veatch, a reputable company, was paid for this purpose and, unless there was a particular reason for deviating from:the rate consultant's study, he felt the recommendation+for.Option One should be agreed upon. Mayor Martin made a motion to amend the differential rate of return for all outside users (wholesale and others) to 8%, as opposed to 8.8%. The motion was seconded by Marinoni. Martin explained that dropping the .8% will, reduce customer impact, an established rate -making principles by recognizing those particular customers of.the city bear 'a special relationship as opposed to other customers.} z , •. Rich Haberman, resident of the growth area, questioned if Wedington Road out to Double Springs Road is considered inside city limits. It was answered yes. He stated he lived five miles inside that area (.2 mile outside the city limits) and paid $400 to connect to city water. He suggested that the cost for his connection to city water might be arbitrary since someone five miles further out would not pay that amount. Tom Stock, an attorney representing the Rural Development Association, referred to Director Green's comments regarding a defensible alternative. He stated that when the RDA was first given the water rates, they reviewed the charges given various users. Stock stated that, based on the block rate and the knowledge that the cities of Farmington and Greenland were retail users, the RDA rates were higher. Jeff Hoppy, a rate specialist who assisted the RDA in their study, reduced the schedule to an average of 4.1 million gallons per month, based on the Black & Veatch study. Stock explained that they could not pay Hoppy to completely rework the whole study so his primary concern was with allocations. Jeff Hoppy, a resident of Oklahoma City, addressed the Board regarding several studies made by himself, as well as a hand-out given to the Directors. November 20, 1990 Hoppy explained that, after reviewing the study by Black & Veatch, he found three key areas that required additional review. The first area was the peak day allocation and the capacity values. He recommended lowering the capacity factor from 2.5 to 1.9. Mr. Bickel reviewed the information for the City and recommended that the value be lowered to 2.35. This is included in Proposal #1. He stated that there are no meters in the City to provide information as to how much water was used on the peak day so these are purely judgment calls. Hoppy stated the second area he reviewed was the plat allocation. He stated that he noticed the wholesale customers had been combined with the growth area customers and explained that it caused a discrepancy in the rates being charged. He recommended that the growth area customers' distribution mains be allocated at the same cost level per customer as users inside the city limits. The third area reviewed was the rate of return. Hoppy stated that he asked the advice of head of the economics department at the University of Oklahoma. He stated that the differential between -2.5% and 8.8% was unfair and advised that the rate of return should be developed assuming a 8.8% cost of debt and a 0% cost of equity. With some calculation, he arrived at a result of 5.3% rate of return and recommended it to the Board. Harley Brigham, resident of Foxhunter Road, addressed the Board concerning the "human factor" involved in the water rate issue and asked that the Board give the people a break on the increase. Jerry Paschal addressed the Board concerning sharing the costs to bring the rate of return for water rates down. Upon roll call, the amendment failed by a vote of 2 to 5, with Directors Kelley, Spivey, Vorsagner, Green and Lancaster voting no. Mayor Martin asked for a vote on the ordinance on its third reading to adopt the wholesale water rates Option One as per staff. Upon roll call, the ordinance passed by a vote of 5 to 2, with Directors Marinoni and Martin voting in the minority. ORDINANCE 3519 APPEARS ON PAGEV S OP ORDINANCE MW RESOLUTION BOOK ALDERSON REZONE Mayor Martin introduced consideration of an ordinance rezoning property as requested by Cecil Alderson located at 4458 E. Huntsville from A-1, Agricultural to C-1, Neighborhood Commercial. November 20, 1990' Staff recommends rezoning the property.- The Planning Commission voted unanimously to recommend rezoning, and there was no neighborhood opposition. The ordinance was read for the first time: 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 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. .The ordinance was read for the third and final time. Upon roll call, the ordinance passed by a vote of 7 to O. ORDINANCE 3520 APPEARS ON PAGES?? OF ORDINANCE AND RESOLUTION BOOK X X ✓ HUNTINGDON DRAINAGE F. Mayor Martin introduced consideration of a resolution approving the - construction contract for Phase I of the drainage improvements project to the low bidder, McClinton -Anchor, at a price of $86,210.01 with a $12,000.00 contingency for utility relocations and approval of a budget .adjustment for $14,500. • Staff recommends awarding,this contract which is for underground drains, an above ground drainage ditch; related catch basins, street repairs and other miscellaneous work that will relieve the drainage problems in the Huntingdon area.t .L Kelley, seconded by Lancaster, made a motion to approve the resolution. Linebaugh explained that the development's drainage had not turned out as expected and plans were made to take care of the problem as quickly as possible. He stated that action against the developer or contractor would be taken at a later date. Linebaugh stated that the problem was due to improper work done in the past, with developers going bankrupt and so forth. Director Green asked if action could be taken in the future to prevent this problem from arising again. Linebaugh stated that all safeguards were used on this particular case and the problem still occurred. Upon roll call, the resolution passed by a vote of 7 to 0. •RESOLUTION NO. 186-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK 3f'' November 20, 1990 DPC&E LANDFILL Mayor Martin introduced consideration of a resolution approving the agreement with the DPC&E to contribute $15,000.00 for the cleanup of the Northwest Landfill, and approval of a budget adjustment. Staff recommends approval of this agreement. The funding will be taken from Unreserved Fund Balance. This agreement does not relieve the City from any future liability that may result from the landfill situation. Vorsanger, seconded by Kelley, made a motion to approve the resolution. Linebaugh explained the cleanup in detail to the Board. He also stated that due to the urgency of the matter, DPC&E hired an outside contractor and the City would pay a share of the total cost incurred in the project. Director Kelley asked if there were any others assisting in paying the cost of the clean up. Linebaugh answered that the state was paying the remainder of the bill, and at this point, there was no community involvement. Upon roll call, the resolution was adopted by a vote of 7 to 0. RESOLUTION NO. 187-90 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK BUDGET ADJUSTMENT POLICY Mayor Martin introduced consideration of a resolution approving an amendment to the City's Budget Adjustment Policy. Staff recommends the changes which are in line with the City's movement toward a program/performance budget system. The new policy will require budget adjustments only when the cost of service exceeds the budgeted amount by category of service rather than by line item. Kelley, seconded by Marinoni, made a motion to approve the resolution to amend. Director Green expressed concern about keeping track of the activity and trends. He asked if it would be possible to have a tally sheet possibly in the City Manager's monthly report showing where the activity was taking place, what accounts had been debited or credited and so forth, for the information of the Board. Director Lancaster questioned the possibility of appropriating funds to purposes other than what they would be intended in this new system. Linebaugh stated on capital items, an increase November 20, 1990* exceeding $10,000 would have to come back the Board for approval. He explained that most adjustments would -be on maintenance or service -type items. i Upon roll call, the motionto approve the amendment passed by a vote of 7 to 0. - RESOLUTION NO. 188-90 .APPEARS ON PAGE OF ORDINANCE' AND RESOLUTION BOOK . s AU INDUSTRIES, INC. ,P • 4 • Mayor Martin introduced.consideration.of a resolution awarding Bid 90-55 to the low bidder,- Buildings, Inc:, for $74,485.00 for improvements to the •AU Industries, Inc. (formerly Abilities Unlimited, Inc.). ' '� Staff recommends awarding this bid which will be funded from the 1990 Community Development. Block Grant budget. + Green, seconded by Kelley, made a motion'to.adopt the resolution. Upon roll call, the motion -passed •bya vote of 7 to 0.' RESOLUTION NO. 189-90 LAPPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK OTHER BUSINESS °BOARD RETREAT Linebaugh stated that the Board retreat planned for December 1 will not allow several of the new Board members to attend. A new date of December 15 will tentatively be set but he stated a more formal announcement.of the exact date would be given later.. SIERRA CLUB Rob Leflar, representing. the Ozark Headwaters Group of the Sierra Club, addressed the Board regarding the subject of waste management. He called attention to copies of several internal memorandaconcerningcharges by Mr. Hal Morton of lack of concern about the city's waste management issue. Leflar stated that whether the allegations are right or wrong, the issue deserved attention. He stated that the recycling program shouldmove forward immediately with more Board of Director involvement and a set timetable concerning specific goals of waste management and reduction put into effect and made public. Leflar suggested the timetable address the following questions: 3136 November 20, 1990 When will someone be in place to serve as directly in charge and responsible for solid waste management? When will a recommendation be given for changing the rate structures to include recycling incentives for residential and commercial users and will it be by volume? When will the proposed transfer station site be purchased, designed and constructed. When is "start-up" anticipated? Will the recycling staff be reorganized and decreased? Who will be responsible for working with the public and commercial sector in working to increase the level of recycling and composting to achieve the goals of waste reduction? WEST BY-PASS PROPERTY Director Lancaster asked Planning Management Director John Merrill about action taken on zoning property west of the by-pass in the Planning Commission Meeting. Merrell stated that the Planning Commission voted unanimously to recommend to the Board that the property be returned to an R-2 zoning. He stated the recommendation would be brought to the Board for the December 18 meeting. PLUMBING CODE Reed Welker, resident of Fayetteville, addressed the Board concerning the current section of City Plumbing Code requiring piping under concrete be strictly cast iron. He stated that other materials such as PVC pipe would be more cost effective, and if that section of the code were repealed, it would not require those materials to be used but allow it. He explained that he was in the process of constructing a new home and asked for a passage on the issue tonight, if possible. John Merrell stated that the Inspection Division had been researching the issue for the last several months and it was felt that there were many cases where using the alternative PVC pipe was justified. Merrell stated that Staff would possibly have recommendations and an amendment for the Board at the December 18 meeting. It was stated that, without some review and time for deliberation, the code could not be repealed or revised at the present meeting. ADJOURNMENT The meeting was adjourned at 9:55 p.m.