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HomeMy WebLinkAbout1991-05-21 MinutesMINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on Tuesday, May 21, 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; Assistant Mayor Mike Green; Directors Ann Henry, Dan Coody, Julie Nash, Shell Spivey and Bob Blackston; City Manager Scott Linebaugh, City Attorney Jerry Rose, Acting City Clerk Gaylene Bunch; members of staff, press and audience. ABSENT: City Clerk Sherry Thomas CALL TO ORDER The meeting was called to order by the Mayor, with five Directors present (Director Julie Nash arrived at 7:45 and Director Shell Spivey arrived at 8:45). 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 comments from the public on any item on the Agenda. He explained that comments should be limited to 15 minutes per item, and a spokesperson be elected for comments made on the same issue. REPORT TO THE PUBLIC City Manager Linebaugh introduced a report to the public and Board, which is presented by the City Manager at the second Board meeting of each month. This report, for the month of April, included financial information, an update on staff activities and items of general interest. Financial Condition Linebaugh stated the City was in good financial condition and better than was anticipated for this time period. The City has total assets of $181.9 million, total liabilities of $46.7 million, and a fund balance of $135.2 million. As of April 30, 1991, revenues were $16.4 million, which are up $3.8 million from last year primarily because of the water and sewer franchise tax being collected for school construction. Expenses are at $15.3,million as compared to $12.3 million for last year. The $3 million increase in expenses is due primarily to the increase in contractual services and depreciation of capital associated with the Capital Improvements Program. 17 171 May 21, 1991 Adult Center Proaram The City is proud of its association with the Adult Center Program which is administered by the Council on Aging. There is a wide variety of activities and services offered by this organization for the elderly. In addition, the nutrition program is offered throughout the county providing meals Monday through Friday. "Meals on wheels" is also an important function of this organization which delivers nutritious meals to home -bound individuals. The nutrition center serves approximately 400 meals each day. Taxi Program The taxi program, which is provided through C & H Taxi Company, is administered through the Community Development office. This program provides transportation for the elderly to the hospital, doctors, and shopping. Through the first quarter of 1991, ridership has increased by 28%. Fire Department The Fire Department has completed the construction of the "Brush Pumper" unit which is parked outside of City Hall and will be available for public inspection after this meeting. The Fire Department staff built this unit which will be of great benefit in the fighting of brush fires. MAIN STREET PROGRAM John Merrell, Planning Management Street Program and gave a slide regarding the revitalization of Street, and stated a comprehensive revitalization. Director, reported on the Main presentation for those present the downtown area and Dickson approach was needed for downtown Mayor Vorsanger stated he felt Fayetteville was doing a lot to revitalize downtown and asked if this program would be appropriate for the Dickson Street area. Merrell stated that it would and plans were to include the Dickson Street area in the Main Street Program application. Director Green asked if the program provided grants and/or low income loans to participants and how the advantages of the program were transferred to the business owners. Merrell reported that this program is primarily a technical assistance program and does not provide grants or loans. However, staff will be recommending to the Board to allocate some of the Community Development Block Grant money provided by HUD to this project. Director Henry stated this program but was that Fayetteville has area, and she stated program. May 21, 1991 that in 1983 or 1984, the City applied for not successful in the attempt. She stated come a long way in revitalizing thedowntown shewas not sure Fayetteville needs this Merrell stated he had studied the records from the previous application. There are several different explanations as to why the attempt failed. However, the City has received a good response from the current effort. 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 May 6, 1991 regular Board meeting. B. Removed from Consent Agenda at Board Agenda Session.. C.. A resolution approving a. three year heating and air conditioning maintenance contract to cover all parts and labor for the Administration Building, Police, Interim City Hall, Administration Annex (R -HOG), and the new Police/Court Building (Systematics) at an annual price of $13,681.00 to the low bidder, Johnson Air Conditioning.. • Staff recommends approving the contract. RESOLUTION 87-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR D. A resolution awarding a bid for R -HOG and Systematics buildings Bids will be opened May 10, recommendation available at the asbestos removal in the to the low bidder. • • and staff will have ,a Agenda Session. 0 RESOLUTION 88-91 APPEARS ON PAGE BOOR OF ORDINANCE`AND RESOLUTION f A resolution approving Task Order #3 to the engineering contract with McClelland Consulting Engineers, Inc.,.in the amount of $159,252.29 of which the city's share is $7,962.61 for survey, easement, and plat work required for easement and property, acquisition. Staff recommends approving the task order which is necessary to fulfill FAA easement and land acquisition 113 May 21, 1991 requirements for the runway protection zones and transitional surfaces purchase project. RESOLUTION 89-91 APPEARS ON•PAGE OP ORDINANCE AND RESOLUTION BOOR F. A resolution amending the current "Damage Claims -Sewer Back-ups" Policies and Procedures dated October 6, 1989. Staff recommends approving the amendments which will (1) allow City Staff, with the property owner present, to assess damages; (2) would require that claims be presented within thirty (30) days of the incident; and (3) require the claimant seek "reasonable" costs for repair and recommend that the City contract with a cleaning service to provide repairs and/or replacements to claimants. RESOLUTION 90-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR Blackston, seconded by Nash, made a motion to approve the consent agenda.. Upon roll call, the consent agenda was approved by a vote of 6 to 0, Director Spivey being absent at the time of the vote. ATTORNEYS FEES Mayor vorsanger introduced a resolution authorising payment of 629,640.04 to the McDermott, Will i Emery Law Firm for February and March and of $14,078.19 to the Niblock Law Firm for February and March for services rendered on the incinerator disengagement, FOIA, and Barnhart (formerly Robson) lawsuits. Vorsanger reported that Staff recommends law firms. Green, seconded by Blackston, made a resolution. approving payment to the motion to approve the Director Coody stated that the reason this was pulled from the Consent Agenda was because most of this bill revolves around the incinerator public hearing that was held March 21, 1991. He stated that the attorneys defended themselves, rather than the City, and a $15,000 bill was submitted to the City for this. Coody stated that this was not fair to the public and deemed further discussion before payment is made for this. Jerry Rose stated that the view of the other attorneys probably was not the same as Director Coody's. He stated that they would view their activity as defending the Board's decision, rather than 1 t: 174 May 21, 1991 defending any position that they may have individually, as attorneys, one way or another. Director Blackston asked the Board if they didn't feel over- represented on behalf of the City presently, by legal counsel both locally and nationally. He asked if the City would weaken its position if only one attorney from each firm was to work on the case. Rose stated that the attorneys would do whatever they are directed to do. There presently are two law firms involved -- McDermott, Will & Emery (Chicago and Washington D.C.), and the Niblock Law Firm. He stated that the trial attorney from McDermott, Will & Emery is located in Chicago and the expert in bonds, etc. is in the Washington D.C. office. The reason for having the Niblock Law Firm is that you need someone to associate with in Arkansas that has an understanding of Arkansas law. Director Coody stated he felt the attorneys being here was a complete waste of time and taxpayer's money. He stated no one's mind has been changed as a result of that meeting. After discussion, it was the consensus of the majority of the Board that attorneys could not be asked to represent the City, and then refuse payment to them. The Board decided to ask the Niblock firm to be the local representative counsel, which would hold down travel expenses from Chicago and Washington D.C. 4 Director Green stated the City has to treat this as a client attorney relationship and that what they are doing is in our best interest. •We have to have confidence in them. This is the only way to have a proper relationship. The City is not in a position to place restrictions on the attorneys because tying their hands will limit their ability to defend us. Director Henry stated the frustrating part is that the case is on hold waiting for trial, and we are still paying attorney fees. ; Director Blackston stated we have to the pay the bills we have been presented with. He was just wondering if the same things could be accomplished with fewer attorneys from each office and cut down on some of the expenses. He stated he wasmerely asking for, clarification and not being critical. Director Coody asked if there would be an answer to Director Blackston's question or would the question just die. Mayor Vorsanger stated these things needed to be discussed with our attorneys. He also stated that this team of attorneys have been preparing for this case, and we do not want to hinder them now. Mayor Vorsanger stated that it was at the insistence of Mr. • .175 May 21, 1991 Froelich that a special hearing was held on the incinerator disengagement. It was not by the choice of the Fayetteville Board of Directors. Robert Reus, a member of the audience, stated that he felt like $45,000 for five or six weeks is a bit much for one night's attorney's fee. He stated that even with all of the thousands of dollars spent on the FOIA lawsuit, we still lost. He asked that this be kept in mind. Upon roll call, the resolution passed by a vote of 5 to 1, with Coody voting in the minority, and Spivey absent at the time of the vote. RESOLUTION 91-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOON ANNEXATION ar Mayor Vorsangsr introduced a request by Ben and Nancy Israel for annexation of their 31.17 acres located on Highway 43 to the City of Fayetteville. Linebaugh reported that the Planning Commission voted 9-0-0 to recommend the annexation be approved by the City Board. There was no opposition to the annexation, and Staff recommends approval. John Merrell stated this was a relatively inexpensive annexation, and the property taxes that would be generated far outweigh the other cost of services. Henry, seconded by Coody, moved to approve the resolution to annex the property in question. Merrell stated their needs to be a policy established for annexation procedures in the near future in order to have certain guidelines and procedures when annexing property. This annexation will call for the creation of about 56 lots in the range of 1/4 to 1/2 acre lots. Director Henry asked if anyone has checked with the school system to see if they could handle the additional students. Merrell stated it is not felt that this will create an over -burden for the Fayetteville schools. Director Green stated he had always favored annexation when it will not cost the City. He would like to have an annexation plan adopted before the various annexations make the City unbalanced. Mickey Jackson, Fayetteville Fire Chief, stated that as far as fire protection is concerned, the annexation would not have any adverse 16 May 21, 1991 effect on the Fire Department. However, if no guidelines are followed, and as Fayetteville keeps growing, problems with fire protection could develop. A member of the audience stated that this would not affect the school system since the children living in this area are already included in the Fayetteville school system. Upon roll call the resolution was passed by a vote of 6 to 0, with Spivey being absent at the time of the vote. RESOLUTION 92-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK REZONE ORDINANCE' • Mayor Vorsanger introduced an ordinance rezoning property located on Highway 45 East consisting of 31.17 acres from A-1, Agricultural,to R-1, Residential, as requested by Jim Lindsey on behalf of Ben and Nancy Israel. The Planning Commission voted 9-0-0 to recommend the rezoning be approved by the City Board. There was no opposition to the rezoning, and Staff recommended approval. The ordinance was read for the first time. Director Green asked if the neighbors had expressed any concerns about the rezoning. John Merrell stated that immediate neighbors had been notified, and there was no opposition. Mayor Vorsanger asked if there would be greenspace provided with this development. Merrell stated there is a section in the zoning ordinance called the "PUD" regulation, which if a developer chooses that route, he or she is required to put in green space in certain areas. This has not been a popular development tool. This will be a conventional subdivision with one loop street going off of 45 east, and extending north, looping around and coming back down into 45. Director Coody asked if there was a way to avoid covering all of the best agricultural land up with foundations. Merrell responded by saying that annexing and developing agricultural lands has been a growing problem throughout the nation, particularly in areas where major crop production 'is practiced. However, at this time this does not seem to be a major issue locally. It will be studied further in the annexation study that has been proposed for next year. 177 May 21, 1991 Vorsanger stated that he had cause for some concern on this issue, and suggested that since there were 31 acres involved, and this had come up with "a lot of notice and knowledge of the public," instead of rushing through the ordinance, he suggested this be left on its first reading and tabled to the next meeting to give the public a chance to comment on this issue. BASEMENT ACOUISITION Mayor Vorsanger introduced a resolution authorising the purchase of easements located on the property owned by Kenneth Yourton in the amount of $17,750.00. Linebaugh explained that the utility lines have been across the Mourton property for at least 20 years without any easement acquisition on record. Staff recommends purchasing the easements. Green, seconded by Nash, made a motion to approve the resolution. Director Green asked that after 20 years would there not be some sort of acquisition by right. Rose stated that the general rule to gain property through adverse possession is that the possession has to be open and notorious. It is difficult to prove to people that these easements were there because they were all underground and the railroad owned the property at the time the lines were installed. Director Blackston asked how Mr. Mourton happened on this discovery. Rose stated through researching the City's files, this became apparent to Mr. Mourton. Director Henry stated these lines have impinged on Mr. Mourton's ability to do anything with this land because of these easements. Upon roll call, the motion passed by a vote of 7 to 0. RESOLUTION 93-91 APPEARS ON PAGE O! ORDINANCE AND RESOLUTION BOOK CABLE TV Mayor Vorsanger introduced a resolution assigning the three Access Channels and an ordinance establishing a Cable Television Board. The Ad Hoc Committee on Cable recommended the establishment of a Cable Television Board to oversee the operations of the Access Channels as well as the performance of Warner Cable. 1 1 May 21, 1991 Staff recommends establishing the board and assigning the channels as designated. Blackston, seconded by Coody, made a motion to approve the resolution. Robert Reus, a member of the audience, inquired what kind of programming we would be looking forward to on the government access channel. Linebaugh stated that it would be much the same as it is now out of the city government and county government. However, in addition to that, a scroll would provide information, like Channel 4, on all three channels, which would have public school information, governmental information, etc. Upon roll call, the motion passed by a vote of 7 to 0. RESOLUTION 94-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK CABLE TV BOARD ORDINANCE The committee recommended that the public access channel be administered by Open Channel, the University of Arkansas be given the use of the educational access channel, and the governmental access channel be administered by the City. Staff recommends establishing the board as designated. The ordinance was read for the first time. Green, seconded by Blackston, 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. Green, 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 was passed by a vote of 7 to 0. The ordinance was read for the third and final time. • Linebaugh stated that a new staff position would be added to fill this need. This position would be partially funded by Fayetteville Open Channel. This will be a citizens' committee, with applications being submitted and appointments being made by the City Board. This committee would also look into complaints made against Warner Cable. Upon roll ORDINANCE BOOK xX call, the ordinance passed 3549 APPEARS ON PAGE 903 • by a vote of 7 to 0. OF ORDINANCE AND RESOLUTION • "1 8 May 21, 1991 9BniLarn FIRE CONTRACT Mayor Vorsanger introduced a resolution approving a five year contract with the City of Greenland for fire fighting services to be rendered by the Fayetteville Fire Department. Linebaugh reported that city Staff has negotiated with the City of Greenland and reached an agreement to enter into a five-year contract at a price of $45,000 annually. Staff recommends approval of this contract. Henry, seconded by Blackston, made a motion to approve the resolution. Linebaugh stated this was a negotiated situation with Greenland, and both parties feel the contract is beneficial to both parties. Upon roll call, the resolution was passed by a vote of 7 to 0. RESOLUTION 95-91 APPEARS ON PAGE 07 ORDINANCE AND RESOLUTION BOOM 36N WATER LINE Mayor Vorsanger introduced a resolution approving a contract with McClelland Engineers for engineering work related to the construction of the south part of the 36 -inch rater line, storage tanks, and related system tie-ins at an estimated price of $741,977.00. Linebaugh reported that staff recommends approving this contract. Henry, seconded by Nash, made a motion to approve the resolution. Upon roll call, the resolution was passed by a vote of 7 to 0. RESOLUTION 96-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK ELKINS WATER PURCHASE CONTRACT Mayor Vorsanger introduced a resolution approving a contract with the City of Elkins for the purchase of water. City Staff has been negotiating with the City of Elkins on the terms of the contract for Elkins to purchase water. Final negotiations have been completed and it is stated that Elkins approved the water purchase contract that Fayetteville sent to them after numerous meetings. ecru May 21, 1991 Kevin Crosson, Administrative Services Director, explained a few minor changes that were.made concerning this contract and handed out printed reports to the audience. Rate reductions have been included due to the storage.capacity Elkins has available. They will also have a part in the rate making process. In addition, a disengagement fee would be assessed for those no longer wanting to be on the water system. They also computed a formula for Elkins to pull out of the system. The final item included in the contract is the ability to enter into binding arbitration on contract terms. He outlined the eleven changes that were made in the contract. Vorsanger asked if were offering the same basic contract to Mt. Olive and West Washington County. Crosson stated this contract is substantially the same contract that was offered to Mt. Olive and Washington Water. There has been no response from these two places to date. Director Blackston asked if the back payment issue had been resolved. Crosson stated that the back payment issue would be included on the next billing date, assuming the contract passes. Henry, seconded by Coody, made a motion to approve the resolution. Upon roll call, the resolution was passed by a vote of 7 to 0. RESOLUTION 97-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK SCHOOL CONSTRUCTION CONTRACT Mayor Vorsanger introduced a resolution approving and awarding a construction contract for improvements to the Fayetteville High School. The City Board and the Fayetteville School Board met in a joint special meeting on May 14, 1991. The School Board approved the contract. The City Board tabled the item to allow further Consideration. City Staff recommends awarding the contract. Coody, seconded by Spivey, made a motion to remove the item from the table and continue discussion, which was tabled at the last meeting. • Upon roll call the motion passed by a vote of 6 to 0,•with Green abstaining. r Spivey, seconded by Blackston, made a motion toapprove the resolution. • $DIttt May 21, 1991 Director Spivey stated that after attending a Fayetteville Vision meeting, it was the consensus of those attending the meeting, that education was one of the top priorities in the community. He further stated that after visiting Fayetteville High School, it was apparent that the building is antiquated, severely overcrowded, and in critical need of renovation. He stated that the passage of the sales tax was an alternative vehicle to the failure of the millage. He stated that the Municipal League is afraid that other cities will follow suit if the construction is allowed to happened through a sales tax instead of a millage. This is a risk that we take, to go on with this thing and proceed as planned, but he feels this is a risk the community needs to take. He stated we need to look for alternative funds as well to finance our schools as well as teacher salaries. Director Henry stated that when she teaches, she teaches finder the constitution, and doing things in a legal method and not skirting the law. She stated that the Arkansas constitution is somewhat antiquated and it may not be fair, but schools are funded through property taxes. Her feelings were that a legal way needs to be found to fund the schools; therefore, she stated that she would not vote to approve that contract because she deems that it is unconstitutional. She does not feel that it would be right to "buy" another lawsuit for the City. She recommends working to change the constitution to allow for this type of funding. Mayor Vorsanger stated that the question before the board was that everything had been done to react to the wishes of the people. He stated that he was not a part of the incinerator. The people voted before his term on the board 2 to 1 for a sales tax to build school facilities. Then we found that we could not use the sales tax to issue bonds for school facilities. He stated that he felt confident that the City Manager and City Attorney, working with others, have come up with a plan which is legal to do this very thing. By the same token, the school system has taken bids for the building ($500,000 below their estimates). That bid will run out in the next day or two, and if the Board does not approve them entering into a construction contract, they will lose that bid, and if it is re -bid, it will cost more. He further stated that there is a new law on the books, that may be illegal. He stated that the law indicates that we can issue bonds with them to be paid off with sales tax money for educational facilities (Act 645 of 1991). He called the Municipal League and discussed this with Don Zimmerman. Vorsanger stated that his point was that he felt this construction contract should be approved this evening and then move ahead because the Act says that you have to have a vote of the people, and that has already been done. We can issue bonds that can be paid off with the one percent sales tax. He is calling for the Board to approve the contract and then call for an election as soon as possible on issuing the bonds. =189!82 4 y May 21, 1991 Director Nashstated that any time the Board votes on an issue there is potential for a lawsuit. She clarified that we are not under Act 25, but under 645, which may not be legal, but this may be something that will have to be settled by the courts one way or another. She asked if the Board was being asked to put the cart before the horse by approving the bonds and then asking for the people to vote on bonds. Mayor Vorsanger responded by saying that his thoughts on this issue were that he knows the school board has some money at present, and he suggested that perhaps in the first month or two before we get this to a vote, that the school board spend some of their money and not the city's appropriation until it has been approved by the voters. Director Coody asked if any of the contractors had been asked to extend their bid time. He stated that he wanted Fayetteville to have some of the best schools in the country, but he felt it counter-productive to- get into a situation where the City could lose millions of dollars and still not get the facilities that are needed. He stated that he was not totally convinced that this was a legal situation and did not want to bet on the legality based on a couple of wording changes. Vorsanger responded by saying that there are three other bills involved in this issue. They pretty well say that this can be done, and HR 1382 also deals with this issue. Coody asked Jerry Rose if he felt confident in this gamble. Rose responded by saying that he respectfully disagreed with Director Henry. He stated that in order to issue bonds we must have a bond counsel opinion. We could not get this opinion under the old Act 25. Assuming bond counsel will allow us to issue these bonds under the new local government act, then it is certainly a viable way to go. It puts to the court, if we do get sued,,a very clean proposition as to whether or not this new act is either constitutional or unconstitutional. If we go forward.with our present plan, it probably has a higher degree of legal risk,but at least you know that it will begin to build a school building: There are indications from the Rose law firm, that they, if asked, would approve and issue a bond counsel opinion. We may not be able to deal with them as we are suing them on a previous bond opinion. Director Nash asked if we needed another election. Rose stated that another election would be needed to get a bond issue. This would eliminate the legal risk. Director Nash asked what should be done with the $2 million that has already been collected. Rose stated that the $2 million should be used in an attempt to pay off the bonds. Nvgigs May 21, 1991 Director Henry stated we could go back to the voters for a property tax increase to fund the school construction. If the citizens of Fayetteville are as committed to education as they say, they would vote for this tax increase:' She stated she would be willing to campaign for this tax increase. Director Coody asked where the City would be if they signed the contract for construction but could not find a bond counsel to issue and sell bonds. Mayor Vorsanger stated that the construction contract would be signed by the school board and not the Board of Directors. Spivey stated he too agrees with Director Henry. This is different from the incinerator issue because we have a mandate of the people to fund the schools. Just because we pull out now, does not mean that we will not be sued because this project has been in the works for two years. He stated that there are legalities in all aspects of this issue. The kids will be the ones to suffer while this is being fought. Director Coody stated that it was his desire to find a more legal vehicle to pursue this issue. Winston Simpson, Fayetteville School Superintendent, urged the Board to approve awarding the contract that is now held by the schools, and to award those based on the plan that Mr. Rose and Mr. Moore has presented. Then we should proceed as expeditiously as possible to examine the question as to this new law, and if that would allow the City to sell bonds as a basis for funding the balance of the $10 or $12 million in school facilities. Again, he urged the Board to take positive action on this matter this evening. The crowding in the schools only gets worse. There is no assurance against lawsuits, no matter how the Board votes. There is a variety of lawyers with differing opinions. Director Coody asked Mr. Simpson to not hold it against the Board if they vote against the issue. He stated that he pictured this as being the same thing as if he signed a contract to buy a $100,000 piece of land, and then sought financing. That is a sure way to get into serious trouble. There are ways this could be done where all the lawyers could agree that this is legal, and that is to go back to the voters for a millage increase. Simpson responded by saying, indeed, that is a legal way to fund school construction, but he speculates that until the people of this community know for sure that you can't build school improvements with some participation from the city, they are not going to approve a property tax to do it. They've said very strongly that they want it to be done this way. Simpson asked the Board to approve those contracts, based on monies already escrowed, • 1 a1 0a May 21, 1991 sufficient to fund your obligation under those particular contracts. Director Nash stated should just could not vote to approve this funding mechanism. Jack Butt, vice president of the school board, stated that there are some political realities that we all face this evening. The City has promised the citizens that $10 million of that sales tax will be used for the schools. If it is not used for the schools, there are going to be 6,000 children, 3,000 parents, 400 teacher and seven school board members that are going to be immediately angry about that. Not to mention another 4,000-5,000 people who voted in the election, and the Chamber of Commerce, and Citizens Advisory Committee, that designed that device. That money has been entrusted to the City for the sole purpose of building schools.. If for legal reasons, you don't want to build schools, the lawsuit will be much quicker, much more direct, and it will be a class action joined by most of the prominent people in Fayetteville. The City Board is not committed to spend $10 million right now. The Board has until next January to figure out how you might come up with the rest of it. We will only be shifting around tax money, and we won't be depriving anyone of their basic fundamental rights. or anything of that nature. He stated that time is running out, and he urged the Board to proceed as planned. Robert Reus stated that the crux of the problem is the promise that was made by a previous board to use $10 million for the schools. No one can guarantee that this is legal. He stated that the citizens might turn down a millage increase because they might feel they are being burned, by paying twice, $10 million in sales tax and then have their property taxes raised. He suggested that the City rebate the $10 million, via rebates on the utility bills and then ask for a millage increase. Rudy Moore, representing the Fayetteville School Board, urged the Board to consider that regardless of what legal counsel can try to convince you about, about the bond issue, the constitutional versus the statutory matter -- we have reams of opinions that are in conflict, just as in 1988. Failure to enter into the contract does not change that. He asked what would be done with the $10 million if the Board does not approve this contract. He asked the Board to consider this: Go on and approve these contracts. The maximum extent of this liability at this point in time is $2.7 million. The school district cannot get any more money out of you until next January if you decide to put another $1.3 million into the building fund, via this transaction that is before you. He suggested that the Board direct Mr. Rose to look into the alternate Diamond Center legislation. He urged the Board to comply with the wishes of the people. May 21, 1991 Director Coody asked if there was any way the school board could complete the school construction. Moore stated that the school.district has enough money in -hand to build a new facility, but not some of the other amenities and not some of the equipping and parking lots and that sort of thing. The brick work could be done, but to finish it out you would probably have to go back to the voters. Director Coody asked if the millage increase necessary to fund the schools had been calculated. It was stated that this has not been calculated. Director Blackston stated that he has reached a decision on how he will vote on this issue. Not having great legal knowledge, he has decided to go with the majority and vote in support of this issue. He urged the people not to judge this vote in light of the incinerator issue. Joel Furring, a member of the audience, addressed the board in support of a positive vote of the Board on the contract in question. He stated constituents would be very angry if the contract is not approved by the Board. Director Coody asked if there was a clause that stated the contractor would be able to stop construction and he would be paid up to that point, plus stoppage and a five percent bonus. He inquired if this had been discussed with the contractor. Rudy Moore stated that the proposal at the meeting was: Would the school board hold you harmless up to a certain point? That certain point was undefined. The school board could not be held responsible for the entire bond issue. He stated that the contractor expects to be paid for the work he does, plus a margin of profit. This is a fourteen month contract, so you will have quite a bit of money into it to begin with. Director Coody stated he was trying where the City might be limiting its has more of a risk than the school asked Mr. Moore if this was right. to get more information about liability. He stated the City board does in this issue. He Rudy Moore said that was not correct. Unless you are talking about the underlying bond issue. You have no more liability to the contractor than the school board. Jerry Rose agreed and stated that however this goes, he would attempt to represent the city to the best of his ability. He did not anticipate recommending to the City that they hire any other outside attorneys. He stated we were playing a lot of "if" games. 43888 May 21, 1991 Mayor Vorsanger stated people kept talking about returning the sales tax to the voters. However, more than Fayetteville voters are paying these taxes. Harley Brigham, a member of the audience, stated that he voted for the six mill tax and would vote for whatever it takes to build a high school on a millage because it is legal. Tiny Hamilton, a member of the audience, addressed the Board in opposition of the way the ballot was worded in regard to the sales tax increase for the school and urged the Board to uphold their oaths of office and uphold the Arkansas Constitution while voting against this issue. He stated the people did not know when they voted for the school bonds that this was illegal. A member of the original Citizens Advisory Committee addressed -the Board in support of an affirmative vote on behalf of the Board. He stated that Staff worked very hard to come up with the proposal on the ballot and to uphold the legalities involved in the decision of putting the sales tax vote on the ballot. He disagreed that Staff made mistakes. This was the accumulation of many people working very diligently for over three years to come up with the plan. He hates to see the Board subjected to idle threats. Director Henry stated that she felt the decision made by the Citizens Advisory Committee at that time was not a misrepresentation to the voters and was thought to be a legal method. She stated that at this particular meeting, the Board has been threatened with lawsuits from both sides of the issue. Goody said that he assumed that the sales tax issue was legal when he voted on it, but now he seriously questions the legality of the vote. He is not going to assume that just because the majority of the people voted for this issue that means it is a legal method. Upon roll call, the motion to .award the school construction contract passed by a vote of 4 to 2 to 0, with Henry and Coody voting in the minority and Green abstaining. Director Nash stated she was basing her yes vote on the fact that they will find something in the legislation that can be used by the school board and City. Director Coody stated he was glad he voted his conscience and glad that the motion passed. • RESOLUTION 98-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK May 21, 1991 NOMINATING COMMITTEE REPORT Director Spivey reported that there were openings on the Library Board of Trustees, an opening on the Board of Adjustments, and we are appointing a Vegetation Management Advisory Committee. LIBRARY BOARD OF TRUSTEES Spivey reported that Jeffrey Koenig was the nominee for the Library Board of Trustees position. Spivey, seconded by Green, made a motion to appoint Koenig to the Library Board of Trustees. Upon roll call, the motion was passed by a vote of 7 to 0. • BOARD OF ADJUSTMENTS Spivey reported that Marion Orton was the nominee for the Board of Adjustments position. Spivey, seconded by Green, made a motion to appoint Orton to the Board of Adjustments. Upon roll call, the motion was passed by a vote of 7 to 0. VEGETATION MANAGEMENT ADVISORY COMMITTEE Spivey reported that by the make-up of the committee, there has to be people appointed with expertise in specific areas, and then there are some community at large positions. He stated that the nominees were as follows: Position 1 -- Dr. Ronald Talbert (herbicide use) Position 2 -- Dr. John King (integrated vegetative management) Position 3 -- Dr. Edward D. Dale, Jr. (toxology) Position 4 -- Dr. Charles J. Amlaner, Jr. (wildlife ecology) Position 5 Al Vick (community) Position 6 Marcia Donley (community) Position 7 Linda Telthorst (community) Spivey, seconded by Henry, made a motion to approve the nomination of the preceding. May 21, 1991 Upon roll call, the motion was passed by a vote of 7 to 0. OTHER BUSINESS AIRPORT IMPROVEMENT DISTRICT Director Coody asked if there Attorney General's office on the the airport. City Attorney Rose spoken with Senator Malone, but received. had been any response from the improvement district language from stated that they have not. He has to date, no information has been ELECTIONS BY WARD ISSUE Bill Stiles, a resident of Fayetteville thanked the Board for their proclamation for historic preservation. He asked about the redistricting the wards for electing City Board of Directors and maybe even paying the board members. He asked that these issues be discussed at some point in time. Vorsanger responded by saying that no concrete plans have been developed regarding these issues, but they have been discussed some by the Board and the Chamber of Commerce. Director Nash stated that the Board has asked the Staff to give them information on options on how to hold public hearings concerning voting on wards. But, she stated she did not remember seeing a report on this. City Manager Linebaugh stated that was not his understanding of what the Board wanted. He understood that the Board wanted to wait until the League of Women Voters and the Chamber of Commerce developed their ideas, and then hold public hearings discussing the issues. ADJOURNMENT The meeting was adjourned around 11:00 p.m. •