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HomeMy WebLinkAbout1991-12-17 MinutesA430 MINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on Tuesday, December 17, 1991 at 7:30 p.m. in the Directors' Room of the City Administration Building at 113 West Mountain Street, Fayetteville, Arkansas. PRESENT: Mayor Fred Vorsanger; Assistant Mayor Mike Green; Directors Ann Henry, JulieNash, Dan Coody, and Shell Spivey; City Manager Scott Linebaugh; City Attorney Jerry Rose; City 'Clerk Sherry Thomas; Director of Planning Allett Little; Director of Public Works Kevin Crosson; Director of Administrative Services Ben Mayes; members of staff, press and audience. ABSENT: CALL TO ORDER Director Bob Blackston. The meeting was called to order by the Mayor, with six Directors present. .The Mayor asked those,preseht to stand and recite the Pledge of Allegiance,and then -asked that a brief moment of respectful silence be observed. ft•A The Mayor welcomed comments on - any item on the Agenda. He explained that in order to allow -equal attention to all items on the Agenda, the Board requests that comments be limited to 3 minutes per person per item, and a spokesperson be elected for comments made on the same issue. - 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 November, includes financial information, an update on staff activities, and items of general interest. In addition, the City Engineer's Office will be giving a presentation on the 36 inch water line project. , FINANCIAL INFORMATION City Manager Scott Linebaugh reported that at the end of November, the balance sheet revealed assets of $187 million, liabilities of $35 million with a fund balance of $151 million. For the period ending November 30th, there were total revenues of $46 million and expenditures of $49 million which is in line with the budget. TREE CITY U.S.A. DESIGNATION City Manager Linebaugh reported that this is a program sponsored by the U.S. Forest Service. In order to be designated Tree City U.S.A. a City must meet the following standards: 1) Legally form ri i431 December 17, 1991 a tree board or committee, and the City has formed the Landscape Beautification Committee; 2) Develop a comprehensive community forestry program supported by a minimum of $2 per capita, and the City has formed this program which is supported by funding of $9 per capita, including in-house work by the City and the University; 3) Continue to celebrate Arbor Day with tree plantings; 4) Tree City U.S.A. status must be adopted with an ordinance; the Committee has begun work on this which will be submitted to the City Board next year. PARKS AND RECREATION The Parks and Recreation Department has been awarded $55,000 from the Community Development Block Grant Fund, $20,000 to develop the land donated at Walker Park for senior citizens and handicapped and $35,000 to provide water and rest room facilities at Finger Park. CONSTRUCTION PERMITS One hundred and ten permits were issued in the month of November 1991 for a value of $2.1 million, compared to 153 permits in November 1990 for a value of $3.6 million. Linebaugh stated that 1991 will be another record setting year. During the first eleven months of 1991, 1643 permits were issued for a value of $50.7 million, compared to 1548 permits for $47.6 million for the same period in 1990. RECYCLING City Manager Linebaugh reported collections of 22.6 tons of glass, 41 tons of newspaper, and approximately 2 tons of aluminum cans during the month of November 1991. Linebaugh stated that capacity was being increased at the IGA Super Store and Lindsey Mercantile locations as well as the addition of a new station at Dillons on Hwy. 45. CIP PROJECTS The City has spent over $12 million in 1990 on CIP projects, which is 46% of the $27 million that has been budgeted. These CIP projects include the 36 inch water line, Public Library, bridge repairs, and the Youth Center pool renovation. FIRE DEPARTMENT City Manager Linebaugh reported that the entry testing of 21 applicants was completed in November to fill the six positions; the new firemen began work on December 9th. 1n432 ..December 17, 199.1 SUPREME COURT TRIP City Manager Linebaugh reported attending the Supreme Court hearing held on the Oklahoma lawsuit. Seven of the nine justices asked well informed questions favorable to the City of Fayetteville and indicating their knowledge on the subject. Although a decision was reached by the Supreme Court on December 13th, it could take weeks or months before the City actually receives the decision. The team from the Beaver Water District and the Atttorney General's Office gave an excellent presentation of the case. 36 INCH WATER LINE Don Bunn from the Engineering Department addressed the Board stating that their work on the 36 inch water line began in the Summer of 1990 with McGoodwin, Williams &•Yates being awarded the contract for the overall design phase of the project. The purpose of the overall design phase completed in late 1990 was for establishing primary design.routing to the East and West. Bunn reported that two engineering contracts were awarded: (1) to McGoodwin, Williams & Yates for designing that part of the 36 inch line which lies north of Fayetteville in the amount of $512,000.00 and (2) to McClelland Engineering for that part of the 36 inch line lying in south Fayetteville and.the storage tanks to be located southwest of Fayetteville in the amount of $750,000.00 for a total engineering cost of the project estimated -,at $1,360,000. This figure is subject to variation from the construction management contract. • Bunn further reported the status of the contract awarded in June 1991 to McGoodwin, Williams & Yates was for completed plans and specifications to be ready in mid January 1992. The in-house review and Arkansas Health Department review time .is estimated at 45 days. Construction bids will be let and received on the project by the end of March 1992, and construction is scheduled to begin on the north portion in May or June of 1992. Bunn reported they are currently in the process of acquiring easements on the land with approximately twenty easements presently in hand and plans to have all easements acquired by the commencement of construction, either by accepted offers made to property owners or by a condemnation process. Bunn stated that he saw no other obstacle to delay the 36 inch line project. Bunn reported that the McClelland Engineering portion of the contract commenced in July 1991. Completed plans and specifications were expected by mid March 1992 on the ground storage tanks and that part of the 36 inch line connecting into Fayetteville's system on the south side. Bids will be let in the spring and construction should start sometime thereafter. The final portion of McClelland's contract for the balance of the 36 inch line was projected to be completed, bids received and construction to begin all in late 1992. Bunn stated that to date, ;• 33 December 17, 1991 no easements have been acquired on the south side; however, 10 acres for the tank site and access thereto has been acquired by a long term lease. The acquisition of easements is the only delaying factor for this portion of the project. In conclusion, Bunn reported that total funds expended to date on the 36 inch line total project at approximately $500,000. The majority of that is engineering fees and acquisition of easements. Bunn reiterated Linebaugh's statement that there is a possibility for consumption water management for one more summer. Whether water management will be necessary for the summer of 1993 will depend on the progress of construction. The planned construction of water tanks, which will provide an additional 12 million gallons, is scheduled to be completed first in order to be in service for the summer of 1993. In addition, the progress of construction at the Beaver Treatment Plant could affect the 1993 service. OLD BUSINESS Items that have been brought before the Board but were tabled or no decision made to alloy for further information to be presented. SMOKING POLICY Mayor Vorsanger reintroduced an ordinance regulating smoking in certain public areas. Vorsanger explained that the Board of Directors adopted a smoking policy for City owned facilities at their November 5, 1991 meeting. The matter before the Board now is the consideration of enacting a smoking policy for certain public places. Vorsanger further reported that the Board voted at the November 19 meeting to table this ordinance to allow people from the hospitality industry in Fayetteville to meet with Robert Lefler and others who drafted the original ordinance to come up with a compromise ordinance that both business people as well as the non- smoking community could endorse. In addition, Vorsanger reported that the Board voted at the December 3 meeting to leave the item on the table to allow further time for the two groups to reach a compromise ordinance and to be presented to the Board members for their consideration prior to the meeting. Mayor Vorsanger requested input from the other Board members as to whether they should take the previous ordinance off the table, or start anew, leaving the old ordinance on the table and address the new ordinances before them this evening. December 17, 1991,E Director Green recommended that they leave the old ordinance on the table and start anew with the revised ordinance. City Attorney Rose verified that by the Board's inactivity, the. previous ordinance is automatically tabled indefinitely. Director Coody, seconded by Spivey, made a motion to adopt the new, ordinance dated December 17th. The ordinance was read for the first time. Green, seconded by Coody, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 6 to 0. The ordinance was read for the second time. Coody, 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 was passed by a vote of 6'to 0. The ordinance was read for the third and final time. 110111.1 Director Coody thanked Rob Leflar and members of the Sierra Club for their efforts in reaching the compromise ordinance being presented. Director Spivey thanked all°interested parties; including the hotel and restaurant owners, who were all•instrumental in the compromise settlement of this issue. + — ..'y Sierra Club representative Rob Leflar addressed the Board. Leflar reported that he had fulfilled his pledge to work in good faith with the Chamber of Commerce and the hospitality industry. Many hours of discussion were .held in which the concerns of both sides were voiced and good faith efforts were made on all sides in reaching a compromise which he believes is acceptable to all. Leflar further expressed his appreciation t� Coy Kaylor, Pat Henry, Bill Clodfelter, and Wayne Dyer for their effective negotiations and contributions to the process. `He further stated that these gentlemen would prefer not to have a'smoking ordinance, but in the event of the Board's judgment'that an ordinance is necessary in the best interests of the City, they believe that the new ordinance is acceptable and one they can.`live with. Leflar further addressed the concerns raised by Mayor Vorsanger at. the last Board meeting regarding enforcement of the ordinance stating this concern is addressed in the new ordinance by giving the City Manager authority'to designate an officer most appropriate for enforcement of the ordinance. In addition, Leflar reported his contact with Jim McSwain, Fire Chief of the City of Lawrence, Kansas (a strong business and University community with a comparable population to Fayetteville), regarding McSwain's responsibility for enforcement of a similar ordinance, relayed his experience that in over 4 years since their ordinance was passed, a total of 45 complaints have been received with the majority received in the first year. Once their citizens became familiar E.t 144 435 December 17, 1991 with the provisions of the ordinance, the number of complaints dramatically reduced and enforcement became a minor problem. Lefler stated that he believes a similar situation will be realized in the City of Fayetteville. Lefler proceeded to explain the points of significant change in the new ordinance as follows: 1) Paragraph A(2a) pertaining to the designation of designated smoking area, the word "clearly" was omitted; 2) Paragraph A(2b) contains a provision which will essentially serve as a "grandfather clause" so that existing restaurants can use their existing physical barriers and ventilation systems to avoid major remodelling expenses in order to comply with the provisions of the ordinance and can merely post "smoking" and "non-smoking" signs in areas of their choice; 3) Paragraph A(3) includes a new definition for "designated non-smoking areas"; 4) Paragraph A(6) pertaining to the definition of "public place" has specifically exempted hotel/motel guest rooms; banks were moved from category "B" into category "C"; 5) Paragraph C(6) contains an exemption of existing restaurants with a total public seating of 30 or less, where it is difficult to separate "smoking" from "non- smoking"; however, said exempt restaurants would be required to post a notice on the outside of their establishments informing potential customers of that fact; 6) Paragraph E(3) clearly states that managers of public places will place conspicuous signs at all entrances, up to a maximum of six; posting one of the following statements: "Smoking Prohibited" or "Smoking Prohibited Except Within Designated Smoking Areas" or "Smoking Permitted Except Within Designated Non -Smoking Areas"; with the option of which sign to post being that of each individual facility by their management; 7) Paragraph E(5) addresses management's enforcement of the ordinance in order to comply by asking smokers to refrain from smoking in a non-smoking area or directing smokers to designated smoking areas; 8) Paragraph F addresses City enforcement by authorizing the City Manager to designate an officer responsible for enforcement of the ordinance; ,December 17, 1991 9) Paragraph F(2) states that an inadvertent first offender could be given a warning rather than being fined; 10) Paragraph F states that the City officials responsible for granting permits for new facilities would consider applicant's compliance with "smoking" and "non-smoking" citing designation as.a factor in granting of permits. In conclusion, Leflar stated that the process by which the parties arrived'at an acceptable compromise will stand as a good example of "bending bridges" and set a good example for future controversies among different areas and groups in the community. Molly Wolfe, student at the University of Arkansas, addressed the Board encouraging them to support the smoking ordinance and feels strongly about this issue as her conscious efforts at health/safety seem to be in vain when she has to be subjected to second hand smoke in public places. With all the hazards that we don't have control over, this is one,that can be controlled. Janet Titus, immediate past kPresident of the Washington County Medical Society, addressed the Board in support of the new smoking ordinance as it supports in spirit the goals of -the Washington County Medical Society efforts for a smoking ordinance. She stated that it seems to be an acceptable -compromise that helps to protect the health and welfare of the majority of citizens without overly taxing the facilities' ability to serve their customers who wish to smoke. As a physician, she spends a lot of time trying to convince, her patients not to smoke, and a' position like this taken by a public entity, supports her stand against smoking. • r, Mayor Vorsanger addressed Dr. Titus regarding his confusion with the ordinance and her letter wherein they talk about the risks of smoking which he 'agrees with, but the ordinance as well as the last paragraph in her letter states;." the Washington County Medical Society strongly supports efforts to regulate smoking in all public areas, all areahospitals: have already taken the lead in banning smoking, except by patients in their rooms" which he finds confusing and contradictory. r Dr. Titus responded that nurses find some patients to be extremely difficult to deal with when they are raving about wanting to have a cigarette in the middle of the night. ,The original ruling was that patients could smoke only with the direct permission of their physician which quickly fell by the wayside as it is difficult to confront long term smokers with this restriction. Although Dr. Titus would like to see smoking banned completely, she does not believe it is practical in those situations. In addition, the hospitals when admitting patients assign rooms according to smoking preference. Titus also stated that regulating smoking by staff in nursing homes will help considerably in those facilities. December 17, 1991 Director Henry stated that despite the fact that physicians are trained in health issues, and many have stopped smoking themselves, they cannot convince their patients to stop smoking as some people have no choice as they are addicted to the habit. Dale Smith, owner of Carolyn's Restaurant, addressed the Board stating that his restaurant is already in compliance with this ordinance, and he would like to think that an ordinance like this wasn't necessary; however, people simply don't smoke responsibly nor realize the seriousness of this issue. Therefore, an ordinance is required to help control the problem as well as further educating people on the hazards of smoking. Carol Fossey, physician practicing in the Fayetteville area, addressed the Board recommending that the Board pass this smoking ordinance as a good compromise and stated the importance of the City Board as representatives of the well being of the citizens of Fayetteville. Fossey encouraged the passage of an ordinance to help protect non-smokers from passive smoke. Director Henry inquired as to whether this ordinance will require many changes from the hospitality industry that have not already been implemented. Lefler stated that some additional signage would be required. Henry stated that bars, beauty shops, and barber shops were exempted from this ordinance, and it is really not any broader than any of the previous proposed ordinances. The ordinance will take care of some additional problems. Henry further stated her concern that this ordinance was placing a lot of responsibility on managers of public establishments, especially in view of the fact that physicians are not willing to confront their patients. In addition, Henry stated that the City was being asked to solve this problem and to do what each individual has every right and the ability to control in their own situations. In closing, Henry stated that although this ordinance appears to be a compromise, she believes it is just the continuation of a trend to ask the government to do things that each individual should be able to do for themselves. Betty Lou Olson addressed the Board stating that a common response received by a non-smoker requesting that someone not smoke in their presence is "I am not breaking the law"; therefore, an ordinance is necessary for enforcement. Director Nash pointed out that this is pot a smoking ban. She has received various opinions on a smoking ordinance and believes that both sides have made concessions and are willing to live with this ordinance. She is pleased to see this sort of communication and cooperation by everyone involved. December 17, 1991• Mayor Vorsanger stated his concerns that: (1) chewing tobacco, which he considers more offensive than smoking, is not included in this ordinance; (2) it's okay to smoke and drink, but if you smoke and eat, the required signs needs to be posted; and (3).government should not regulate people or businesses in this matter. He stated he would vote against the ordinance. Director Henry stated her agreement with Mayor Vorsanger, stating that she would like to see the word "tobacco" used in the ordinance. Director Green stated that the Board needed to realize that this is a start and they have to start somewhere. This happens to be an ordinance which is at least bearable to most of those involved. Although it is not the answer to everything, this ordinance itself is at least a compromise and a good start, and the other issues will take care of themselves in time or can be addressed by the Board in the future if necessary. Even though he would prefer not to be asked to regulate business, there are valid reasons for trying to protect non-smokers from passive smoke; therefore, he stated that he would support the ordinance.: Mayor Vorsanger stated that one of the wonderful things about democracy and being on the Board of Directors is that they will all vote their conscience. _. Upon roll call, the ordinance passed =by a vote of 4 to 2, with Directors Vorsanger and Henry voting against the ordinance. • ORDINANCE 3584 APPEARS ON PAGE 7/. OF 'ORDINANCE AND RESOLUTION BOOR )(j( ✓ 6 UTILITY VEHICLE BID AWARD Mayor Vorsanger reintroduced a resolution awarding Bid 91-61 to Ron Blackwell Ford for $68,028 and to Lewis Ford Sales for $43,857 for the purchase of seven (7) light and medium duty utility vehicles. Vorsanger further reported -that Staff recommends awarding the bids for the purchase of 4-1992 Jeep Cherokees, a 1991 Ford Ranger, a 1992 Ford F-250 pickup with'a slip indumpbed, and a 1992 Ford Ranger 4x4. Vorsanger explained that.this item was tabled at the December 3, 1991 meeting so that the department needs for 4x4 vehicles could be presented to the Board. .. ;1 Director Coody stated thattin response to his questions regarding the necessity of the 4x4 vehicles, he has` received a lot of input which include the following options: (1) Continue with current situation with 4 -wheel drive Jeep Cherokee sport wagons; (2) Provide sufficient justification to reject the lowest bid to allow 439 r ;439 December 17, 1991 award to next highest bid for the more expensive Jeep Cherokees; or (3) Provide sufficient justification to put out new bids. He suggested instead of buying all Jeep Cherokees, change the specifications and purchase a couple 4 -wheel drive trucks which would be more service oriented than the Cherokees. In addition, Coody stated that justification has not been made for the need of the fourth Jeep Cherokee for use by the Public Works Director. While it is agreed that the fire department needs to have good equipment, he believes that only two of these Jeep Cherokees can be justified. Departments such as Public Works and the Fire Department could jointly use a vehicle. He feels it is not responsible for the Board, on the heels of increasing taxes, green space fees, and cutting services, to purchase four of these 4 -wheel drive Jeeps. Director Spivey stated that each one of these vehicles has special needs; although Jeep Cherokees have a higher purchase price than the other automobile options, the resale value of the Cherokee is higher and the life of these vehicles will allow them to pay for themselves. Therefore, Spivey suggested that the Board act on this resolution and approve the same. Mayor Vorsanger stated that he is convinced that these vehicles are necessary; however, he questioned that only the higher priced vehicles were priced. The main difference is that the Jeep Cherokee has the type of power train to do the kind of work that will be required during inclement weather. Bill Oestreich, Fleet Maintenance Supervisor, addressed the Board stating that he is well aware of the numerous incidences wherein the existing equipment/vehicles were not adequate or capable to perform the type of work that the street division deals with on a daily basis. City employees have been trying to be professionals for many years even though they haven't had professional equipment to work with. Since these people are doing the kind of work that sometimes nobody else wants to do, they should at least be properly equipped. In addition, Oestreich stated that the added expense necessary to protect equipment/tools carried in the back of a pick-up will add $2,407 to each unit, which makes the difference in price $603 - a difference which will take away advantages such as the safety of a heated back window as well as the convenience and ability to carry passengers. All options presented are the smallest units that the manufacturers have available. Their justification is primary with a need for 4 -wheel drive vehicles, and those that have been chosen are the most practical for what the City requires. In response to Director Coody's question, Oestreich responded that the City currently has a total fleet of 243 passenger cars and pick-up trucks, including all rolling equipment such as garbage t?' 04 •j 0 4 4.. .December17, 1991 trucks and bulldozers and a breakdown of rolling inventory is available for review. Director Nash stated that the Board of Directors is being held responsible for "fiscal responsibility" to the citizens; therefore, any opportunities to save taxpayers' money must be explored. Nash reported that this subject has developed; more "heat" or citizen response than she expected. Nash suggested postponing purchasing the second two vehicles until June 1992 to explore the possibility of rotating two vehicles. Oestreich responded to Director Nash stating that they are not asking that all units be 4 -wheel drive rather only enough to get by for the next year. In addition, there is a question of scheduling the ordering prior to the Christmas holiday; if they delay any longer, the price concession is likely to disappear. The present delay has already cost them $2,984 in budgetary funds that the shop fund would receive if their vehicles were in working condition, not to mention the inconvenience for the four individuals involved or towing expense and repairs necessary on vehicles trying to do the work of a 4 -wheel drive. In response to Director Nash, Fire Chief Jackson responded that he currently has two 4 -wheel drive vehicles which are utilized by three different individuals and operations. Green, seconded by Spivey, made a motion to, approve the resolution. Upon roll call, the resolution passed by a vote of 5 to 1, with Director Coody voting against the motion. RESOLUTION 223-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR NEW BUSINESS CONSENT AGENDA Mayor Vorsanger 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 December 3, 1991 regular Board meeting; minutes of special meetings of the Board of Directors on April 10, 1991, June 28, 1991, and July 16, 1991; and minutes of a Board Retreat meeting of June 11, 1991; 7 B. A resolution awarding Bid 91-65 to Lewis Ford Sales in the amount of $106,566 for the purchase of,seven (7) 1992 Ford Crown Victoria Police Pursuit Package vehicles, and approval of a budget adjustment; k:441 December 17, 1991 Staff recommends purchasing the vehicles. a trade in allowance on 5 older vehicles. RESOLUTION 224-91 APPEARS ON PAGE BOOK The price includes OF ORDINANCE AND RESOLUTION C. A resolution awarding Bid 91-66 for the purchase of a 1992 Ford Model 250-C tractor with counted Rhino Model TW -72 Hower to Williams Ford Tractor in the amount of $11,499; This tractor and mower will be used primarily by the Street Department, Parks 8 Recreation, and Airport to maintain grounds, right of way, and recreational facilities. The $11,499 price includes an allowance for trading in old equipment. RESOLUTION 225-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK D. A resolution approving a budget adjustment in the amount of $21,500 for the purchase of bus equipment for the Youth Center; Staff recommends approving the budget adjustment which would allow for the purchase of a new bus for the Youth Center. The funding is available because the cost of vehicle purchases throughout the year has been lower than expected. This new bus would replace one of the older models currently being utilized. RESOLUTION 226-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK E. A resolution awarding a bid to the low bidder, Ramsey, Krug, Farrell i Lensing, in the amount of $17,346 for Property Insurance for City owned vehicles, equipment, and property; The City has joined with the State of Arkansas in a multi - agency property bid. The multi -agency group currently has better rates and a lower deductible than we have. RESOLUTION 227-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK F. A resolution authorising payment of $1,196.61 to the Nibiock Law Firm for services rendered during the month of September on the incinerator disengagement and related lawsuits; Staff recommends approving payment. RESOLUTION 228-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK tsslAt12 December 17, 1991] A resolution awarding. Bid 91=67 to the low bidder, Buildings, Inc., for construction of' -a. Shelter_ for Runaway/Homeless Children sponsored by Youth Bridge, Inc.; The $95,000 funding from the City will come from the Community Development Block Grant funds that were allocated for this project in 1989 and .1991. The balance of the funding will come from private donations. Staff recommends awarding the bid. ti 1. RESOLUTION 229-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK Henry, seconded by Coody, made a motion to approve the consent agenda. Upon roll call, the motion was passed by a vote of 6 to 0. 1992 BUDGET Mayor Vorsanger introduced a resolution adopting the 1992 Budget. Vorsanger stated on behalf of the Board and the citizens of Fayetteville that it is a distinct pleasure to have the opportunity to approve a budget before the year begins and commended the Staff for their outstanding work to provide a balanced budget for 1992. Director Henry commented that the '92 Budget was responsive to many of the needs that had been identified in the Vision Project as well as showing that the City, to a great extent, is already on track with many of the projects included in the '92 CIP. Director Coody stated his concern that the news that Mcllroy Bank will not be loaning the. City any more money could throw an enormous wrench in their works as the '92 budget contains CIF' funds. Coody reported that City Manager Linebaugh received a letter from Mcllroy Bank on December 6th which was not mentioned at the Budget Retreat held on December 9th. Coody asked if he had not addressed the issue at Wednesday's agenda meeting, whether they would still be "in the dark" about it. City Manager Linebaugh stated that a copy of that letter was on its way to all Directors before Director Coody addressed the issue on December 9th. In addition, Linebaugh stated that the reason for not yet addressing the subject publicly is that the City is currently negotiating with Mcllroy, and the exact situation and conditions have not yet been worked out. The City is currently awaiting a response from Mcllroy following a meeting last Monday. Director Coody read the following excerpt from the Mcllroy letter: . . . we will seek a hearing as soon as possible, notify the City, Federal Guarantee Insurance Company, Fayetteville School District, and bond holders about a hearing date; however, we will not pay any requisitions until the Court has decided our motion. . ." Coody 443 December 17, 1991 stated that he doesn't see much negotiating happening with Mcllroy and that they knew exactly what they were doing with respect to the charge. Coody continued that in light of the fact that the School Board and banking industry knew about Mcllroy's intentions a couple weeks ago, it seems only fair that the City Board of Directors should have known about it. In response to Mayor Vorsanger's inquiry regarding publication of a hearing date, City Attorney Rose explained that Arvest has filed a motion for instructions which essentially asks the Court to instruct them on procedures they should follow with the money as trustee. The judge set a hearing on Friday, December 20th on all pending motions and has indicated that he will take under advisement the motion to determine whether or not he has the authority to even hear the motion, as he had not heard of such a thing and wanted to explore with the attorneys. Rose further reported that final hearing on this matter has been scheduled for January 23 and 24 before Judge Hanna. In response to Director Nash's question, City Attorney Rose verified that Judge Hanna would be deciding on Friday, December 20 whether or not he was able to decide if he can hear the motion to release the money, which hearing would then be set sometime in the future. Director Nash inquired about the clause in the bond contract that states that the plaintiff's attorneys will be paid from City sales tax received. City Attorney Rose explained under the terms of the bond indenture, the trustee is able to charge to the trust corpus his expenses, including legal fees necessary for him to protect the trust. This expense is deducted from the trust monies and not something the Board has to vote on. Director Spivey stated that this was discussed at the December 9th Budget Retreat meeting. He does not see how this has anything to do with the budget question, and they can not hold off on voting on the budget due to "what may happen if such and such does happen," as they would never approve a budget. As responsible Board members, they need to proceed with their budget on "facts" and not act on hearsay. Director Henry stated that the reality is that any budget that is adopted once the lawsuit was filed back in June is based on those continual funds. from Mcllroy. In response to importance should Linebaugh stated responsibility is decide when the Director Coody is an update. Director Coody's remarks that news of this not be withheld from the Directors, City Manager that this was not at all the case. His to inform the Mayor immediately and they jointly issue is presented to the Board members, but welcome to visit his office on a daily basis for ;A. 449 December 17, 1991 Spivey, seconded by Green, made aWmotion to approve the '92 Budget. Upon roll call, the motion passed by a vote of 5 to 0 to 1, with Director Coody abstaining. RESOLUTION 230-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOR , : REZONING II r Mayor vorsanger introduced an ordinance rezoning 8.81 acres located on the south side of Huntsville Road, east of Jerry Avenue at the south side of the intersection of Crossover' Road and Huntsville Road from R-1, Low Density Residential, and A-1, Agricultural, to C-2, Thoroughfare Commercial, as requested by Jim Watson on behalf of the property owners, J.C. i Daisy Jones, Richard 8 Evelyn Delores Mayes, and D.S. 8 Doris Ann Glass. City Manager Linebaugh further reported that the Planning Commission voted 7 to 0 to recommend the rezoning. Staff recommends the.rezoning as well. 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 passed by a vote of 6 to 0. The ordinance was read for the second time. 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 was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Upon roll call, the ordinance passed by a vote of 6 to 0. ORDINANCE 3585 APPEARS ON PAGE 77 OF ORDINANCE AND RESOLUTION BOOR X xv i RADIO EOUIPMENT PURCHASE Mayor vorsanger introduced an ordinance waiving the requirements of competitive bidding for the periodic purchase of radio equipment from Motorola, Inc. City Manager Linebaugh reported that Staff recommends waiving competitive bidding for this radio equipment for which Motorola is the sole source for as long as the City operates the 800 MHz Motorola trunking system. The ordinance was read for the first time. Green, seconded by Vorsanger, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 6 to 0. The ordinance was read for the second time. Green, seconded by Henry, made a motion to further suspend the 445 December 17, 1991 rules and place the ordinance on its third and final reading. Upon roll call, the motion was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Director Coody commented when the Board waives requirements for competitive bidding, they will continue to buy this equipment. He feels the City has purchased an expensive system and locked themselves into continuing to purchase this Motorola system. He stated that with electronics as it is these days, Staff needs to keep their eyes open for a compatible system that they could receive competitive bids for better quality equipment at a lower price. In the future, Coody suggested that they be cautious and make sure that potential uses are lined out and not just speculated before purchasing equipment. In response to Director Coody, Crosson stated that this is what their Communications Supervisor has done in this case by making this her recommendation as standard procedure. Upon roll call, the ordinance passed by a vote of 6 to 0. Henry, seconded by Nash, made a motion to approve the emergency clause on the preceding ordinance. Upon roll call, the motion passed by a vote of S to 1, with Director Coody voting no. ORDINANCE 3586 APPEARS ON PAGE 79 OF ORDINANCE AND RESOLUTION Boor XXVI AIRPORT PROPERTY PURCHASE Mayor Vorsanger introduced a resolution authorising the purchase of property, relocation benefits, and moving expenses for the property owner, Deborah Bradshaw, in the amount of $54,371.30 for Parcel #63 in the federally funded Land Acquisition Project to clear obstructions from the Airport's PAR Part 77 surfaces. City Manager Linebaugh reported that this is the first of several pieces of property that will have to be acquired by the City to comply with the FAA's mandates regarding clearing obstructions from flight paths. In addition, Linebaugh reported that Staff recommends approving the purchase. In response to Director Nash's question, City Manager Linebaugh responded that there is a small portion (5%) of this that is funded out of the City's budget, 5% by the State of Arkansas, with the remaining 90% federally funded. Mayor Vorsanger stated he believes government is being more than fair with the property owners by paying moving expenses, relocation expenses, the value of their property, and additional money to buy December- 17, 1991. a new home. In addition, a tenant_. on the is eligible as a "90 day tenant" for rental and a moving payment. 9 ` 4 4 r 1 • %fp�5446 property being acquired down payment assistance Director Nash commented that -the residents of Greenland will find it a hardship and very difficult to leave their homes, even though the City and federal government have done more than they have to do to accommodate them. Nash further stressed that the City Board is simply complying with FAA mandates. Even ,though they have the choice to say no, the property is needed in order to provide the type of desired air service. t Green, seconded by Coody, made a motion to approve the resolution. Upon roll call, the resolution passed by a vote of 6 to 0. RESOLUTION 231-91 APPEARS ON PAGE OF ORDINANCE AND RESOLUTION BOOK OTHER BUSINESS AGENDA SESSION City Manager Linebaugh reported that the next Agenda Session would fall on Wednesday, January 1st and requested the opinions of Board members on when to reschedule the meeting. It was briefly discussed and decided among the Board members that the Agenda Session would be held on Thursday, January 2, 1992 at. 8:30 a.m. BOARD NOMINATIONS Director Spivey made a report from the Nominating Committee stating that several committees have openings and the nominations are as follows: 1. One (1) Airport Board Position - Nominating Committee voted to reappoint Leo Yanda, presently a member on the Airport Board, to serve another term. 2 Two (2) positions on the Northwest Arkansas Regional Planning Commission - The Nominating Committee has deferred these nominations due to the fact that two Staff members that were placed on the Committee, which was not reflected in the advertisement for vacancies. Therefore, the City will re -advertise for two positions and will automatically place the people who previously applied before the Nominating Committee for consideration. 3) Four (4) Parks and Recreation Advisory Board Positions - Out of the six applicants, one was submitted by mistake; • 447 December 17, 1991 three applicants were clear cut choices by Committee vote, and the remaining two applicants tied. Spivey suggested that they take the two tied nominees and vote on just those two people to fill the fourth position at the time the vote is taken on the other nominations. Spivey reported the remaining three positions on the Parks & Recreation Board were filled by William Waite, Donna Waselues, and Greg Anderson. 4) One (1) Regional Airport Citizens' Advisory Council Position - the Nominating Committee has nominated William Walters to this position. 5) Three (3) Planning Commission Positions - Spivey reported the Committee's nominations of J.E. Springborn, Tom Suchecki, and Kenneth Pummill. Director Coody questioned the current nominating system and suggested that they should consider taking new applications as positions open up instead of keeping applications on file from previous attempts. In response to Director Coody, Director Spivey stated that the incident with Charlie Sego was simply an innocent mistake by a Staff member, and this type of oversight hardly ever happens. Spivey, seconded by Green, made a motion to approve the nominations. Upon roll call, the nominations were approved by a vote of 6 to 0. TOLLING AGREEMENT City Manager Linebaugh introduced discussion of Tolling Agreements with Union National Bank and the Financial Guarantee Insurance Company. Linebaugh explained that legal counsel's advise is not to sign the Tolling Agreements because it is not in the City's beat interest to sign them. The City should simply allow the banks to file lawsuits if they wish to do so. City Attorney Rose explained that a Tolling Agreement means that the statute of limitations is waived whereby the banks can sue the City at any time, and that this agreement waives the running of the statute of limitations. With regard to the worst case scenario, if the agreements are not signed and the threatened lawsuits are filed, Rose stated that it is his understanding that the banks are then in danger of the statute of limitations running out on January 1, 1992, as a result of a new Supreme Court case. Rose further explained that between now and January 1, 1992, the banks have 448 December 17, 1991' • threatened to sue the City on securityviolations which could be put off to the future if, the tolling agreements are signed. If Union Bank decides to sue the City, Rose understands that this suit would be filed in Pulaski County, Arkansas; and the F.G.I.C. lawsuit would be filed in'New York where the contract was entered into. The downside of such -lawsuits, especially in New York, would be the horrendous expense involved. So the worst case scenario is that in addition to the present lawsuit the City is involved in, they would have these other lawsuits to deal with. 1 Director Henry commented that in essence, the tolling agreement only postpones the inevitable; and the question before the Board is whether to deal with the lawsuits at this time or pass them off to others to deal with at a later time. Mayor Vorsanger commented that the Arvest is a powerful law firm, and they should be taken at their word New York law firm representing City Attorney Rose agreed that as their threats are not idle. Director Henry suggested that they postpone this item indefinitely. Director Henry, seconded by Vorsanger, made a motion that they not sign either Tolling Agreement. Upon roll call, the motion passed by a vote of 6 to 0. ADJOURNMENT The meeting adjourned at 9:27 p.m.