HomeMy WebLinkAbout1991-02-19 Minutes"MINUTES OF A MEETING OF THE FAYETTEVILLE BOARD OF DIRECTORS
A regular meeting of the Fayetteville City Board of Directors was
held on Tuesday, February 19, 1991 at 7:30 p.m. in the Director's
Room of the City Administration Building at 113 West Mountain
Street, Fayetteville, Arkansas.
PRESENT: Mayor Fred Vorsanger; Directors Shell Spivey,
Michael Green; Bob Blackston, Ann Henry, Dan Coody
and Julie Nash; City Manager Scott Linebaugh, City
Attorney Jerry Rose, City Clerk Sherry Thomas;
members of the staffr press and audience.
CALL TO OJ:
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 in honor of the troops currently
serving in the Middle East.
The Mayor welcomed those present in the audience, and introduced
the members of the:City Staff. 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 the public and Board is presented by the City Manager
at the second Board meeting of each month. This report, for the
month of January, includes financial information, an update on
staff activities and .items of general interest.
Linebaugh began the report with a financial summary. He stated
that the City currently has assets of $181 million, liabilities of
$50 million, and a fund balance at the end of January of $131
million. For the period ending January 31, there were total
revenues -in the amount of $4,750,000. He stated that there was an
increase in the amount of $3.3 million -- an increase of a little
over a million dollars. For the same period of time, the operating
andrnon-operating expenditures totalled $5,470,000. For the period
last year, this amount was $3,142,000. This difference of about
$2,300,000 is primarily caused by the capital improvements plan and
contract services in the amount of $1.6 million, and also, in
depreciation that has increased with the capital improvements
program in the amount of $900,000.
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February 19, 1991
INSPECTION DEPARTMENT
Linebaugh stated that 1991 was a record year as far as construction
in the city of Fayetteville. The City realized over $54 million
worth of construction. Already in 1991, there was $3.4 million
worth of value in construction permits that were issued in the
month of January.
FIRE DEPARTMENT
Linebaugh stated that the Fire Department has responded to 53
emergency calls and 12 non -emergency calls in January. For the
60th consecutive month, there has not been a fire fatality in the
City of Fayetteville. There were 122 fire inspections conducted
during the month of January, one public educational :resentation
with 20 adults and 6 children present.
POLICE DEPARTMENT
There were a total of 169 persons who were reached through the
crime prevention program, and neighborhood watch information was
sent out to 62 individuals. Also, the Police Department answered
1,907 calls for service during the month of January and had 5,478
self -initiated calls. The vehicles travelled a total of 30,639
miles.
RECYCLING PROGRAM
Linebaugh reported that the Recycling Program, which began in 1990,
has collected a total of 530 tons of newspaper, 127 tons.of glass
and 13 tons of aluminum.
ANIMAL SHELTER
He reported that the animal shelter was due to be completed within
the next few weeks. The only work that needs to be done is a
little site preparation and some minor interior work. It is
anticipated that this joint construction project between the City
of Fayetteville and the Humane Society will be coming to a close
very soon.
SEWER AVERAGES
Linebaugh stated that the City is currently under its Sewer
Averaging Period. This is a period where it is determined what the
public sewer rate will be for the next entire year. The reason it
is done in January is that January is the lowest month for the
majority of citizens, for water consumption.
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NORTHWEST ARKANSAS REGIONAL AIRPORT AUTHORITY
A report given by the city's representatives on the Northwest
Arkansas Regional Airport Authority, Mr. Bill Martin and Dr. Dan
Ferritor, on the status of the Authority's activities.
Mr. Martin reported that three things had taken place in the
Authority since its inception last November. Those were: (1) The
selection of an airport consultant for the feasibility study; (2)
the application for grant funding for the feasibility study; and
(3) a, public involvement procedure.
He reported that the City has received proposals from the very top
airport consultants in the nation. The local firm of McClelland
Engineering; a national firm 'headquartered in Tulsa, Bernard,
Dunkelburt and Company; and the leading national consultant from
Tulsa -is a firm called Howard, Needles, Tammon and Burgendorf.
These firms will help in putting together a feasibility study.
As
Martin reported that the final negotiated fee for a feasibility
. study was approximately $640,.000. .The application was made to the
FAA and a grant was, in fact, approved for 90% of that amount. The
'remaining monies will be granted by the Arkansas Aeronautics
Commission.
He stated that the public involvement would be in the form of the
formation of a Citizens Advisory Council. The areas involved would
consist'of the area of finance and banking, communications (radio,
TV andpublishing), retail/wholesale field, educational field, real
estate and development; retirees and senior citizens, environmental
groupsj'cultural arts and interests, and the professions of law,
medicine, religion; industry and labor. These were chosen to be
inclusionary groups rather than exclusionary groups.
Mayor Vor; .:tiger pointed out that' civic and other non-profit
organizations, governmental officials, and agriculture were also
groups to be included.
-Martin explained that the procedure to apply for a position on the
Citizens Advisory .Council would be as follows: Each elected
official is being requested to nominate up to three persons in each
of those areas described above. Those nominations would be turned
over to the Authority's consultant in Dallas, who would then take
.these numerous nominations and come back to the Board with a
proposed slate of nominees which would reflect a balance among
these.groups. 'The final analysis is up to the public and other
governmental entities, not the Airport Authority. This group that
is put together would be privy to all information concerning the
development or opposition of a regional airport and would act as a
platform for expressing the concerns of the citizens.
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February 19, 1991
Dan Ferritor expressed his thanks for his appointment to the
Commission. He gave the Board an overall impression of the
different areas and interests of people on the Authority.
Harley Brigham, a member of the audience, addressed the Board
concerning the cost of the feasibility study.
Vorsanger explained that the same nominating procedures that are
used for all committees and commissions was used in the formation
of the commission.
Coody asked who would pay the original consulting firm that gets
reimbursed by the FAA. Martin explained that the plan is for the
Authority to solicit some benevolent bankers who would extend to
the Authority an interest free line of credit, which the Authority
would use to make the initial payment, subject to reimbursement.
Bill Stiles, a member of the audience asked the Board if the 14
member commission formed in connection with the Regional Airport
would view the Regional Airport in a biased way.
Dan Ferritor stated that the Commission would view the construction
of a Regional Airport unbiasedly. He stated that the Authority has
been responsive to the differing needs of the region. They seem to
be a group of problem -solvers interested in getting on with the
feasibility study.
Martin agreed with Ferritor, and stated there was a great deal of
willingness among the Authority members to be open to the concerns
of people. He stated that the Authority had the ability to excise
from its agreed powers, the ability to form a bi-county improvement
district. This was a concern raised by some, that this might be a
"back -door way" of financing the airport or feasibility study. It
was never the intent of the Authority to "back -door" an improvement
district. The Authority voted to eliminate that right from itself.
Janie LaSuo, a member of the audience, asked for clarification in
determining who would make the committee selections for the
Regional Airport. Martin explained that the elected
representatives of the seven governmental entities will make the
nominations.
Leland "Tiny" Hamilton, a member of the audience, suggested that
since the low and moderate income people represent the majority of
the population and in selecting people from the different areas
that were pointed out, consideration should be given to a balance
of income. Dr. Ferritor stated that he thought that was an
excellent suggestion, and it would be passed on to the consultant.
Vorsanger stated that applications would be filled out and turned
back in to City Hall by February 26, 1991. Then, they will be
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forwarded to the Authority on February 27, 1941, which is their
deadline to receive nominations. For those interested, Vorsanger
asked them to contact any Board or Quorum Court member and express
their interest.
Harley Brigham addressed the Board concerning the agenda
procedures. He stated that the fact that Martin and Ferritor being
at the meeting tonight was not published in the newspaper. Mayor
Vorsanger explained that the City Clerk was responsible for the
agenda being published in the paper and there is only a limited
amount of piJblishing space expressly for the agenda issues. This
is why thi" -as not included in the agenda which was sent to the
newspaper. ..righam stated that he felt that a cargo airport would
be detrimental to our region.
Fran Alexander, a member of the audience, stated that she felt the
time allowed for committees to be formed was insufficient. She
asked that more time be given for this committee to be formed.
Vorsanger responded by -reading what was written by the Regional
Airport Authority. He stated that.these forms had to be submitted
by February 27, 1991, and it was the Authority's guidelines not
those being set by the City.
Vorsanger explained that the reports were sent to his home. last
Thursday, and he happened to be in Florida. Consequently, he found
the forms in his mail, made copies of the instruction sheets, and
hand -wrote "Dear Director" letters to every director, giving them
directions and urging them to get their recommendations to him by
February 26, 1991. These were given to the Directors at 8:30 a.m.
Tuesday. He apologized for the delay in submission to the -members.
Martin explained to the Board, that the schedule calls for the
forms to he returned to the Authority on the 26th, and for the
Authority to return the forms to the governmental bodies the
following week. He urged the Board to abide by the time frame
described so that these names may be sent to the consultant.
Vorsanger explained that the City would advertise in the newspaper
and that -those nominated would have to be recommended by the Board.
It would be best if people would call the Board of Directors and
request that they be nominated and talk with the Directors about
those applicants.
Green asked if it was safe to say that if the Board failed to
respond in a timely manner with their nominations, then
Fayetteville's interest would not be represented in this forum.
Martin stated he would hate to see that happen.
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February 19, 1991
Barbara Morgan, a member of the audience, inquired about the length
of time involved in the feasibility study. Vorsanger responded
that he thought it would be completed in the area of 12 to 18
months. The feasibility study needs to be started pretty quick,
and this would give the Board an opportunity to form the Advisory
Committee before they got into the full-blown action of the
feasibility study.
It was asked by an audience member if the Board members already had
names in mind of people who they would nominate.
Green responded that he did not. He understood from the directions
that the Board members were to nominate people without contacting
them individually to determine if they were interested.
Blackston stated that he had already been receiving calls from
people who were interested, and he was compiling a ;t of these
people.
An audience member addressed the Board concerning the feelings of
the citizens of Fayetteville, and suggested that the advisory
committee "advise" rather than "decide".
Judith Levine, a member of the audience, asked the Board if the
citizens of Fayetteville would be able to provide the committee
that is formed, with direct input so that they know what the public
is thinking about certain issues that they may encounter.
Martin replied by saying that the citizens' voice certainly would
be heard and amendments could be made on certain decisions made by
the committee as needed.
REGIONAL AIRPORT RESOLUTION
Mayor Vorsanger introduced a request by Candace Marie Henry for the
Board to adopt her proposed ordinance regarding the City's
association with the Northwest Arkansas Regional Airport Authority.
Henry stated that the resolution the board proposed commits the
City Board to do all things necessary in order to hold a public
vote on the issue of the City's continued participation in the
Northwest Arkansas Regional Airport Authority and to assure the
vote within 90 days following completion of the feasibility study.
Therefore, she will withdraw her request for the adoption of her
ordinance contingent upon the passage of the proposed resolution.
Staff has reviewed the proposed resolution and has drafted an
alternate resolution for the Board's consideration.
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;;February 19, 1991
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Coody asked if the original agreement that the'City entered into
regarding the Authority committed any financial support and/or was
the City locked into the agreement.
Bill Martin explained that there was no financial commitment, and
the City can withdraw from the Authority.
City Attorney Rose read the resolution. Henry, seconded by Green,
made a motion to approve the resolution.
Green.stated he does not intend to "push this through" without
first takiri it to a vote from the citizens.
Vorsanger asked Rose if, after the feasibility study is complete
and it is determined that a regional airport is not recommended for
this area, would the public have to vote on this also. Rose stated
the way the resolution reads, that any decision made after the
feasibility study would require a vote.
Rob Lefler, a representative of the Ozark Headwaters Group of the
Sierra Club, addressed the Board concerning the position of the
Sierra Club. He stated that the Club favored a vote by the public
upon completion of the feasibility study. He stated that the Club
would be sending the Board a formal resolution in due course.
Chris Kirby, a Fayetteville attorney, addressed the Board and
thanked them for giving their attention to the resolution. He
stated that it was in the best interest of the.public to pass this
resolution, and give the public a vote on this issue.
Upon roll call, the resolution passed by a vote of 7 to O.
'RESOLUTION 34-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOK
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."
A. Minutes of the February 5, 1991 regular Board meeting and the
January 30, 1991 special Board meeting.
B. Removed from Consent Agenda at Board Agenda Session
C. A resolution authorizing the renewal of the annual Lake
Sequoyah Boat Dock Operator contract with Mr. Jim Wood at a
cost of $19,006.00.
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February 19, 1991
Staff recommends renewing the contract that expired on
December 15, 1990. At the public hearing held on January 22,
1991, with approximately 200 people in attendance, there was
100% support to increase the lake fees showing support for
keeping the lake open. Mr. Wood has continued his
responsibilities of overseeing the boat dock without
compensation after his contract expired. He is to be
commended for this effort. The Staff also recommends that the
contract be retroactive to the contract expiration date.
RESOLUTION 20-91 APPEARS ON PAGE OF RESOLUTION AND ORDINANCE
BOOK
D. A resolution authorising the execution of a street easement
for the Poplar Street Project.
The City owns the property in question. Staff recommends
approving the easement needed for the street right of way.
RESOLUTION 21-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOK
E . A resolution authorising the execution of a utility easement
for the Poplar Street Bridge Project.
The City owns the property in question. Staff recommends
authorizing this utility right of way agreement.
RESOLUTION 22-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOK
✓ . A resolution authorising an agreement between the City and the
Water and Serer Department for the relocation of utilities in
connection with the Poplar Street Bridge Project.
Staff recommends authorizing this agreement for this project
which is 100% eligible for 80% reimbursement by the Federal
Highway Administration. This is a budgeted project, and the
City's share of the estimated $39,501.25 cost would be
$7,900.25.
RESOLUTION 23-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOK
G . A resolution approving the amendment to the Crafton and Tull
engineering contract for the construction inspection of the
Highway 26S/Highway 71 Water and Sewer Relocation Project in
the amount of $7,000.00.
Staff recommends approving the amendment which will cover the
cost of inspection fees from September through the end of the
rFebruary 19, 1991
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project. No'other increase in fees is'expected on this
project, and it is eligible for 50% reimbursement from the
Highway Department.
RESOLUTION 24-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOR
H. A resolution authorising the award of Bid 90-73 to C. W.
Construction Company in the amount of $58,100.00 for sewer
repairs in the vicinity of Joyce Street and Mud Creek.
Staff recommends awarding the contract for the work which is
needed to restore the integrity of the lines and prevent
overflows.
RESOLUTION 25-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOK
i. A resolution allowing Baldwin Piano and organ Company to sub-
lease a portion of their facilities to First Brands, Inc.
Baldwin financed their facilities through Act 9 Bonds, and the
City leases the facilities back to Baldwin. Under the terms
of the lease, the City has to approve a sub -lease. Staff
recommends approving the sub -lease.
RESOLUTION 26-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOK
J. A resolution approving a Letter of Agreement with the
Washington County Sheriff's Posse to provide for -security
services as mandated by the Federal Aviation Administration
Security Division, and approval of a budget adjustment.
Due to the war in the Middle East, the FAA has mandated extra
security. The hourly rate for the security personnel is
$10.61 which is the most economical the staff could locate for
officers who met all certification requirements.. The budget
adjustment is for $67,120 which is to cover anticipated
expenses for a three month period.
RESOLUTION 27-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOK
A resolution approving a contract for security services with
Burns International Security Services to enforce vehicle
parking regulations as required by the Federal Aviation
Administration due to the. Middle East conflict, and approval
of a budget adjustment.
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February 19, 1991
Staff recommends approval of this contract which is at an
hourly rate of $8.00 for curb coverage by one uniformed
security officer to keep any vehicle from parking within 100
feet from the terminal as required by the FAA.
RESOLUTION 28-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOR
Blackston, seconded by Coody made a motion to approve the consent
agenda. Upon roll call, the motion was passed by a vote of 7 to 0.
SEWER LINE EASEMENT/STEVE CUMMINGS T.FGAL ACTION
The Mayor introduced consideration of a resolution authorizing the
City Manager to either purchase a sewer line easement from Mr.
Cummings in the approximate amount of $43,000 or authorize the City
Attorney to initiate legal actions to obtain clear title to that
easement.
Linebaugh explained the sewer line was put in many years ago for
the purpose of a development off of Highway 265. That subdivision
never did occur, and now the City is dealing with the matter.
Rose stated that he and the attorney representing Mr. Cummings had
reached an impasse in negotiations. He stated the easement was
never recorded but has been in existance since 1974.
Coody asked if the easement was granted contingent upon Mr.
Cummings building a low income residential area. Rose stated he
had found no documentation regarding this issue.
Blackston asked if there was any record of a complaint being filed
before this time. Rose stated there were none on file.
Green stated he did not want to pay $43,000 for an easement that
was appraised at $4,700. He felt the City should deny the offer
and seek a clear title to the easement.
Green, seconded by Blackston, made a motion to deny the $43,000
settlement offer and try to obtain a clear title for the easement.
Upon roll call, the motion was passed by a vote of 7 to 0.
RESOLUTION 29-91 APPEARS ON PAGE OP ORDINANCE AND RESOLUTION
BOOR
LAKE FEES
Mayor Vorsanger introduced consideration of an ordinance increasing
the fees for fishing and boating at Lake Fayetteville and Lake
Sequoyah.
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February 19, 1991
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Vorsanger explained that there was a public hearing held on January
. 22, 1991, and there' was 100% support of the nearly 200 in
attendance to increase the fees at the lakes thereby increasing the
revenues for;the lakes and keeping them open.
Blackston stated he attended the public meeting and stated the
positive public input from the meeting was unanimously in favor of
the increased rates and keeping the lakes open.
Coody•stated he would like to.see all of the parks in the City be
self 'supporting.
Linebaugh explained that Staff recommends adopting the ordinance
,.and the proposed fees which are as follows:
Current Fees Proposed Fees
Daily Fishing Permit $1.00
.Daily Boating Permit $1.00
$10.00/lake
$10.00/lake
$40.00/yearly
-Season Boating Permit
Season Fishing Permit
Lake Sequoyah Boat
(stall rental)
$2.00
(over. age 65-$1.00)
$2.00
(over age 65-$1.00)
$20.00 both lakes
(over age 65-$15.00)
$20.00 both lakes
(over age 65-$15.00)
$60.00/yearly
The ordinance was read for the first time. Henry, seconded by
Green, made a motion to suspend the rules and place the ordinance
on its second reading. Upon roll call, the motion was passed 7 to
O. Henry, seconded by Green, made a motion to further suspend the
rules and place the ordinance on its third and final reading. Upon
roll call, the motion passed 7 to 0. The ordinance was read for
the third and final time. Upon roll call, the ordinance passed by
a vote of 7 to O.
ORDINANCE 3533'APPEARS ON PAGE 557 OF ORDINANCE AND RESOLUTION
BOOR X X V
PROPERTY ACOUISITION
Mayor Vorsanger introduced consideration of a resolution approving
the purchase of the KHOG and Systematics properties at a total
price of $547,000.
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February 19, 1991
City Manager Linebaugh stated that staff recommends approving the
purchase. The KHOG building is tentatively scheduled to be used
for Community Development and Planning, Engineering, Central Supply
area, Administrative Services storage, and an employee lounge and
concession area. The Systematics building is scheduled to be
occupied by the Police Department operations, Municipal Court, and
possibly the Prosecutor's Office. The purchase price of these
acquisitions are below the appraised values. There are funds
targeted in the 1991 budget for the renovation of these buildings.
Spivey, seconded by Green made a motion to approve the property
acquisition.
Linebaugh stated that the acquisition should accommodate the City
for many years into the future. He stated that this would give the
City an opportunity to consolidate some of its oper'- ons, making
it more efficient for the citizens to perform businc n different
areas. Linebaugh stated that this was clearly outil.._3 in the CIP
pay-as-you-go fund.
Green stated that in previous discussions, there was the
requirement of a budget adjustment to purchase the property, but it
was not mentioned now. Kevin Crosson, Admistrative Services
Director, stated that since the purchase price had been
renegotiated, there was no longer a need for a budget adjustment.
Spivey stated that the City would be getting more building than it
actually needs right now, but if the building is not purchased now,
in five years down the road, the Board would be sorry they did not
purchase the building.
Vorsanger agreed and stated especially since the property is
located in the same block as City Hall.
Henry stated she had been the most negative regarding this
purchase. But, after looking at the building, the needs of the
City, and the cost of the building, she was in favor of the
purchase.
Tiny Hamilton asked the Board if there was a price attached to the
proposed figure for future remodeling. Vorsanger explained that
approximately $310,000 would be available for the remodeling of
both buildings from a variety of sources. He stated that $43,000
would have to be spent on the building for asbestos removal, but
the price had been decreased by this amount to allow for this
removal of asbestos in the floor tiles.
Robert Reus, a resident of Fayetteville, stated that he did not
really have an opinion of the City purchasing the building rather
a concern. He the recognized need for additional space at the
Police Department, but didn't see the Court's need for more space.
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February 19, 1991
He expressed his opinion that the City might be paying more than
the buildings are worth. He also asked about the missing air
conditioners on the outside of the building.
Harold Dahlinger, Building Maintenance Supervisor, stated the air
conditioners that had been removed were used strictly with the
computer equipment'that had been in the Systematics building. The
air and heating systems"for the building were intact. He further
stated that the cost per square foot for the buildings is
approximatley $18.00 versus the cost of building new which is about
$45.00 -per. square foot.
Green pointed out that the •$18.00 per square foot figure also
includes the prices of the land which makes the purchase price even
more attractive.
' Upon roll call, the motion to approve the purchase passed by a vote
of 7- to 0.
RESOLUTION 30-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
BOOK
WATER TESTING.. CONTRACT
The -Mayor introduced consideration of an ordinance waiving
competitive bidding and awarding a contract to Dr. Richard Meyer to
gather, test, analyze a number of water samples, and prepare a
written report(s) setting out the test data and conclusions.
City Manager Linebaugh stated that staff recommends awarding the
contract to Dr. Meyer at a cost of between $25,000 and $40,000, not
to exceed $40,000. . The need to waive competitive bidding and
awarding this contract is due to the fact that Dr. Meyer's
laboratory is one of the few in the area that meets EPA
requirements for quality assurance and control, and he has
performed this type of work for the City previously.
The 'ordinance was read for the first time. Henry, seconded by
Green, made a motion to suspend the rules and place the ordinance
on its second reading. Upon roll call, the motion was passed 7 to
0. The ordinance was read for the second time. Coody, seconded by
Blackston, 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 passed by a vote of 7 to 0.
ORDINANCE 3534 APPEARS ON PAGE 3..n OF ORDINANCE AND RESOLUTION
BOOK X X V
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February 19, 1991
$CHOOL CONSTRUCTION CONTRACT
Mayor Vorsanger introduced consideration of a resolution
authorizing the Lease/Option Agreement and Mutual Agreement for the
construction of educational facilities for the Fayetteville Public
School System.
Linebaugh explained that staff recommends these agreements which
will allow the City to finance the construction of the school
facilities as the voters asked for in the November 1988 election.
Linebaugh explained that the sewer and water departments of the
City, are paying a franchise tax back to the City. It generates
money that is non -regular tax money. The City is allowed to give
money to the school district, so long as the money that is given,
is non -regular tax funds. That money will be used to construct a
new addition of the high school. The City will lease that portion
of the building to the school district in a lease -_hat has two
revisions regarding options. First, the City may at any time, on
a dollar for dollar basis, buy out the interest of the school
board. The other option would let the School Board, at its
discretion, at any time purchase the City's interest for one
dollar. This effectuates the voter's purpose of giving the School
Board the benefit of $10 million. The object is to eventually give
the School Board $10 million. This is a proposal that has been
agreed upon through the School Board, Chamber of Commerce, etc.
that all parties involved can benefit from.
Vorsanger asked why the City would pay interest, and would that
interest be set up in an escrow account. Linebaugh responded by
saying that the reason for the interest is because the City is
trying to give the schools, as close as possible, what the voters
authorized. The voters authorized $10 million worth of bonds to be
given to the School Board. Basically, the interest will go into an
escrow account, with the construction money, and be spent on the
projects that are allowed.
Nash, seconded by Coody, made a motion to approve the resolution.
Harley Brigham, a member of the audience read an article from The
Morning News regarding the consideration of school funds by the
City Directors. He stated that he had written many letters to
Board members and School Board members explaining that it was his
belief that politics should be left out of school business. He
stated that the Attorney General of Arkansas, stated to the
officials of Fayetteville, that City funds providing financial aide
via a City sales tax revenue would not be in compliance with the
constitutional laws of the State of Arkansas. He challenged the
legalities of the city's authority in regard to this promise. He
requested that the City seek a higher opinion regarding the
legality of the funding mechanism.
February 19, 1991.
'■ Linebaugh stated the citizens voted to give this to the schools,
the schools need it, and the City does not intend to break any
laws..
Spivey stated that just having the.Attorney General of Arkansas
approve this resolution, does not give it an iron -clad assurance
that it would stand up in. Court, since legal opinions vary.
Henry stated that this resolution would not be to fund operations
in the school system, it would merely be funding a school building.
She statedthat this issue is something that has been thought
through arc of rushed into hurriedly. She stated the only way to
really have: at deemed legal is to go to court and ask for the Court
to declare if it is legal or not.
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Robert Reus expressed his concerns that the governing body of the
City may have rushed to make good on a promise that was made by the
Fayetteville.city government.• He stated that he felt the City: was
doing what was expedient rather than what is right and legal. He
read a letter addressed to Dr. Simpson, Superintendent of the
Fayetteville Schools, dated July 3., 1990, regarding legalities of
sales tax being used to fund facilities for the schools.
Spivey stated this may be an unorthodox way of getting the money to
the schools, but it is the best way that has been found, and the
schools need the money.
City Attorney Jerry Rose, explained that the issue was explored
very closely. The problems with a declaratory judgment on the
issue is that it takes quite a lengthy period of time,.. and if you
lose the lawsuit, you lose it on that specific issue and.then you
have to bounce back and forth through the courts on issue after
issue. Instead, the City chose to try to find the way with the
least legal risk to it.
Brigham requested Mayor Vorsanger to poll the Board to see about
reading the entire resolution regarding this matter before they
vote. It was the consensus of the Board to read the resolution.
Jerry Rose read the entire Lease/Option Agreement for the benefit
of all those in audience.
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Upon roll call, the resolution for the Lease/Option Agreement
passed by a vote of 5-0-1, with Henry absent from the vote and
Green abstaining.
RESOLUTION 31-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
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February 19, 1991
Coody, seconded by Nash, made a motion to approve a resolution for
the Mutual Agreement for the construction of educational
facilities.
Upon roll call, the motion passed by a vote of 6-0-1, with Green
abstaining.
RESOLUTION 32-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
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ATTORNEY FEES
A resolution approving payment of $12,893.99 to McDermott, Will &
Emery for services rendered in the month of December on the
incinerator disengagement, FOIA, and Barnhart (formerly Robson)
lawsuits, and approval of a budget adjustment.
Green, seconded by Spivey, made a motion to approve the resolution.
Coody asked if the attorneys might be lingering over the issues at
the expense of the City. It was suggested that the attorneys in
question cut down on the review and clerical time they are devoting
to this case.
City Attorney Rose stated that he reviewed the billings, but there
was no actual way to determine the amount of time that was spent on
each area. However, he has no reason to believe that the attorneys
are being anything but fair with the City.
Upon roll call, the resolution passed by a vote of 6.to 0, with
Coody abstaining.
RESOLUTION 33-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION
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OTHER BUSINESS
Tiny Hamilton asked the Board to consider a resolution supporting
the troops in the Persian Gulf.
Spivey, seconded by Henry, made a motion to pass the resolution.
Upon roll call, the resolution passed by a unanimous vote.
RESOLUTION 35-91 APPEARS ON PAGE 01 ORDINANCE AND RESOLUTION
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NEW BUSINESS
VIDEO FILE
There was discussion about the subject of beginning a video tape
February 19, 1991
archives of Board meetings. Thereis currently a permanent audio
archives..
ADVERTISING & PROMOTION
Green announced that through the efforts of Woody Bell and Warner
Cable, Fayetteville's Advertising and Promotion Division has been
given an opportunity to air a •30 second spot promoting
Fayetteville, which will be aired through the Warner Cable System,
to about 12 other cities allover the country at no cost to the
City.
ADJOURNMEli
The meeting was adjourned at 11:39 p.m.
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