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HomeMy WebLinkAbout1992-04-07 MinutesA Public Forum April 7, 1992, West Mountain, .«MINUTES OF PUBLIC -FORUM meeting of the City Board. of Directors vas held on at 7:00 p.m. in the Board of Directors Room, 113 Fayetteville, Arkansas. thi Mayor Vorsanger opened the Public Forum at 7:00 p.m. explaining the purpose of this meeting was for citizen input on non -agenda items. Mayor Vorsanger reported that the Board was to have their picture taken to be placed in a time capsule for 100 years. VEGETATION MANAGEMENT PLAN Director Nash reported that she had received questions regarding the Vegetation Management Plan and suggested this be a topic for discussion at the next agenda session. _ Mayor Vorsanger presented a letter from Barbara Moorman regarding the progress of the Vegetation Management Plan and asked that Staff review and respond to the letter. ADJOURNMENT The meeting adjourned at 7:10 p.m. lOV MINUTES OF A MEETING OF TEE CITY BOARD OF DIRECTORS A regular meeting of the Fayetteville City Board of Directors was held on Tuesday, April 7, 1992 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, Dan Coody, Julie Nash, Shell Spivey and Bob Blackston; City Manager Scott Linebaugh; City Attorney Jerry Rose; City Clerk Sherry Thomas; Planning Management Director Alett Little; Administrative Services Director Ben Mayes; members of Staff, press, and audience. CALL TO ORDER The meeting was called to order by the Mayor, with seven Directors present. The Mayor asked those present to stand and recite the Pledge of Allegiance, further asking that a brief moment of silence be observed in honor and memory of a great benefactor to the City of Fayetteville and outstanding individual, Sam Walton. Mayor Vorsanger introduced special guests present in the audience, Dr. Yon Min, a visiting Ophthalmologist from Beijing, China. Dr. Min is being hosted by Dr. J.E. McDonald for eight weeks during her six month visit to the United States. In addition, there were students from the University of Arkansas present to observe governmental operations. The Mayor welcomed comments on any item on the Agenda. He further stated that in order to allow equal attention to all items, the Board requests that comments be limited to 3 minutes per person per item. He explained that the Agenda for the Board Meeting was set on the Wednesday before the meeting. Any item a citizen wishes to be presented to the Board not on this Agenda must be presented at the next Agenda session or brought up by a Director at that session for discussion at the following meeting. OLD BUSINEBB TWIN CITY TAXI Mayor Vorsanger reintroduced a request by Code Eleven, Inc., dba Twin City Taxi, for the Board of Directors to authorise a Certificate of Public Convenience and Necessity for the tazi to operate within the City of Fayetteville. He reported that a Public Hearing was held at the March 3, 1992 Board of Directors meeting to allow public input on this taxi request. A copy of the Board minutes are attached as well as any additional information received on the taxi request. Vorsanger stated that the Board was being asked to review comments from the April 7, 1992 Public Hearing and render a decision as far as granting of this license. Green, seconded by Nash, made a motion to authorize the Certificate of Public Convenience and Necessity to Code Eleven, Inc. Everett Cole, owner of C&H Taxi, addressed the Board asking if in the event the Board authorizes the granting of this Certificate of Public Convenience and Necessity, whether he can raise his rates to $1.50/mile, matching those of Code Eleven, Inc. without formally requesting approval from the Board to raise his rates. Cole stated that he currently charges $1.00/mile (as the crow flies) and 50C per passenger compared to Code Eleven's $1.50/mile (by meter) and $1.00 per passenger. In addition; Cole stated that when he began his service 13 years ago, the use of the City's name in his company name was prohibited, and he inquired whether this rule applies to any cab company. City Attorney Jerry Rose explained that the same laws apply to both. cab companies, and the rates asked for when applying for such .a license are approved as part of the application for operating within the City. Therefore, in order to raise cab rates, C&H would be required to make formal application to the City for a rate increase, and that permission could not be unreasonably withheld. In response to Mayor Vorsanger's question regarding the use of "City" or "Fayetteville" in the cab company name, City Attorney Rose responded that he has been unable to find such an ordinance. He further explained the City Board at the time Mr. Cole's license was granted probably made this specific request for the reason that it infers that the City operates the cab company. Mr. Cole stated that data he collected from approximately 100 of his customers indicated that very few citizens wanted to pay higher rates for 24 hour service. Therefore, Cole could not justify charging higher rates to maintain a 24 hour service. Currently, Cole sees no emergency need for 24 hour service with the exception of limited requests from bar patrons after 1:00 to 2:00 a.m. He further stated that%there is not enough business in the City of Fayetteville for two cab companies. 'Cole reported that years ago before he started his company, Fayetteville had 3 or 4 different cab companies, none,ofwhich were making any money. The companies gradually dropped out -until the City .had no cab service for 6 months. It was at that time that Mr. Cole began his cab service, after learning of Ozark Transit's interest to start a cab company with ridiculous rates'.• ,It is impossible to compete with the University's Ozark` Transit which receives government aid to operate. In addition„ Cole. pointed out that the City recently granted a license for, a 24 hour handicapped taxi service which serves those not wanting, to summon an ambulance. The airport limousine service adequately handles the majority of airport .4 • • • • 104 April 7, 1992 business. It was for these reasons that Mr. Cole supported Twin City Taxi's move to Springdale as he was losing money. In response to Mayor Vorsanger's question regarding Twin City Cab Company, City Attorney Rose responded that they have already submitted their application which includes their rates. C&H would be required to modify their permit in order to raise their rates. Mr. Cole stated that he does not recall submitting his rates with his application, but he recalls the City set his rates when he began his service. He has formally requested rate increases twice in the past. City Attorney Rose reiterated that it is his understanding that cab company rates are part of the permitting process and approved by the Board at the time a permit is granted. Mayor Vorsanger pointed out the application letter from Twin City Taxi sets out proposed rates and discounts to senior citizens.; these rates are automatically approved with the application. Director Spivey stated that in the spirit of competition and in allowing the operation of two taxi companies in the City, these rates should be considered the maximum and not a requirement, and lower rates could be charged at each company's discretion. City Attorney Rose responded the ordinance is set up to where proposed rates of an applying taxi company is one of the considerations of the Board in granting or denying the permit. The ordinance currently does not address the setting of maximum or minimum taxi rates; however, this could be done through amending the current ordinance. Director Spivey suggested the Board consider such an ordinance to allow a ceiling on the rates as well as competitive advantage to a taxi company that is able to operate efficiently and charge the lower rates. Director Henry addressed Mr. Todd, owner of Twin City Taxi Company, who verified that he is currently unable to cross the City line into Fayetteville after C&H Cab Company closes even though he is ready, willing, and able to do so, without the Certificate of Public Convenience and Necessity. Further, Henry asked whether Twin City Taxi Company perceived the need for their service to Fayetteville basically between the hours of 1:00 and 6:00 a.m. Mr. Todd responded that his intent is to operate in Fayetteville 24 hours a day, 7 days a week, as they do in Springdale, including the time between 1:00 and 6:00 a.m. when C&H Tax Company is not operating. Todd further concurred with Director Spivey regarding setting maximum rates and explained his company is required to charge the higher rates due to the quality of his vehicles and ar April 7, •1992; reliable 24 hour service they provide. In addition, Todd refuted Mr. Cole's statements regarding Twin City's metered service and practice of running up the fares. The name "Twin City Taxi" has no connection to the City of Fayetteville; but merely a name they made up as Fayetteville and Springdale are considered "twin cities" given their location and approximate equality in size. Todd further verified that he has not made application for a limousine service, nor has he ever intended to station a taxi at the airport. He also stated that Twin City Taxi's dispatch center is located in the city limits of Fayetteville just north of the Mall on Johnson Road. Director Green agreed that whatever rates the Board approves should be considered maximum rates across the board in order to avoid discrimination against any one particular company. Green further stated that the City of Fayetteville is grateful to C&H Taxi Company for their service over the last 13 years. He believes that this type of competition may have a positive effect on both cab companies in that it will probably increase citizen use of the cab services. _ Mayor Vorsanger asked if Director Green wished to amend his motion to include the maximum rates. Green, seconded by Nash, amended his motion to make the proposed rates of Twin City Taxi the maximum allowed rate and to apply to all cab companies. Marilyn O'Neal, employee of C&H Taxi Company, addressed the Board requesting that they consider that the majority of citizens who use a cab are elderly on fixed incomes and should not be required to pay a higher price to ride in newer equipment. In addition, O'Neal expressed her concern that if cab drivers can not make money, they will quit and Fayetteville may once. again find itself without any taxi service. Mayor Vorsanger called for a vote on the amendment to the proposed motion. Upon roll call, the amendment to the motion passed by a vote of 7 to 0. With no further comments, Mayor Vorsanger then called for a vote on the motion to authorize a Certificate of Public Convenience and Necessity to Twin City Taxi. s Upon roll call, the motion passed by a vote of 7 to 0. RESOLUTION 44-92 AS RECORDED IN THE CITY CLERK'S OFFICE t 164 April 7, 1992 NEW BUSINESS CONSENT AGENDA Mayor Vorsanger introduced consideration of items which may be approved by lotion, 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 March 17, 1992 regular Board meeting; B. A resolution approving Change Orders 2 i 3 with Branco Enterprises for the Fayetteville Nigh School Construction Project in the amount of $34,411; Change Order 2 for $29,217 includes the cost of rock excavation as well as credit for anticipated soils undercutting and backfill. Change Order 3 for $5,194 adds the cost of construction of a retaining wall in the basement of the existing high school building. The City has approximately $190,000 remaining in the school escrow account. After these funds have been expended, the City will have depleted all the money authorized and available for this project. C. A resolution authorising the City to pay half of the construction costs of Cornell Street as an easement to Davis Park in the amount of $10,933, and approval of a budget adjustment. In addition, this resolution would authorise the City to pay the cost of the street in Davis Park from Cornell Street to Princeton Street in the amount of $22,500 and approve an easement across Davis Park to RE/MAX for extension of Columbia Avenue; The total cost for these Davis Park related items is $33,433 of which the $22,500 will be funded in the 1993 budget process. The 1992 budget adjustment of $10,933 will be for street construction and is available from the balance of the cost of the Transportation Study which came in under budget. Both the Parks Board and Staff recommend approving these construction costs for Davis Park. RESOLUTION 45-92 AB RECORDED IN THE CITY CLERK'S OFFICE D. A resolution approving the renewal of the Lake Fayetteville Boat Dock Operator's contract with Jim Black in the amount of $15,840 for the period beginning April 6, 1992 and terminating on December 31, 1992; April 7, 1992.,:. Staff recommends --approval .of this contract renewal which includes a 4% increase from last year's contract amount. RESOLUTION 46-92 AS RECORDED IN THE CITY CLERK'S OFFICE E. A resolution approving the establishment of an Economic Development Reserve Account to designate surplus Economic Development funds with the City Board controlling the destination of these funds; Surplus funds for 1991 of $8,978.18 were reverted back to the City by the Chamber. Staff recommends establishing the Economic Development Reserve Account for these funds. RESOLUTION 47-92 AS RECORDED IN THE CITY CLERK'S OFFICE A resolution awarding a contract based on RFP 91-15 for maintenance of radio equipment to Motorola, Inc., at a cost of $3,400 per month for a two year period; The City received two responses to the RFP, and Motorola, Inc., offered the contract which is most advantageous to the City. Therefore, Staff recommends awarding the contract to Motorola, Inc. G. A resolution awarding Bid 91-69 for the purchase of pumps and equipment for the.Pollution Control Plant to the low bidder, American Power and Supply Company, in the amount of $26,322; Staff recommends awarding the bid. RESOLUTION 48-92 AS RECORDED IN THE CITY CLERK'S OFFICE H. A resolution awarding an engineering contract to DeShazo, Starek, and Tang, Inc., in an amount not to exceed $36,500.00 for the 1992 CIP Traffic Study plus a contingency of $5,500.00 for anticipated, yet unidentified, intersection analysis for a total not to exceed $42,000.00; Staff recommends approving the contract. The study will review, justify, or change the proposed 5 -year and long range street construction plans. It shall also establish priorities, recommendations, 'project rankings, schedules, scope, and cost estimates for proposed street improvements and/or construction. RESOLUTION 49-92 AS RECORDED IN THE CITY CLERK'S OFFICE I. Ratification of a Resolution supporting the placement of the Arkansas School for Mathematicsrand Science on the University of Arkansas campus at Fayetteville; • 3 1.86 April 7, 1992 J. A resolution renewing the Blue Cross Blue Shield contract for group medical, dental, life, AD&D, and LTD insurance plans for the policy year 5-1-92 through 4-30-93; Staff recommends approving the renewal of this contract. There will be no changes to benefit provisions of the policy. The group medical premium will increase by 15.4% due to cost trends and projections. Staff recommends using the retrospective premium refunds held in escrow to fund the increase, and there will be no increased cost to the employees. RESOLUTION 50-92 AS RECORDED IN THE CITY CLERx'8 OFFICE E. A resolution approving an engineering contract amendment in the amount of $19,300.00 with Kilholland Engineering for the Stubblefield Road/Missouri Creek Drainage project; Staff recommends approving the amendment to the original May, 1989 contract because changes were requested by the City to realign Stubblefield Road which included waterline replacements, negotiations with property owners, sidewalk construction, and road redesign and engineering costs have gone up since the original contract was signed. RESOLUTION 51-92 AS RECORDED IN THE CITY CLERK'S OFFICE L. A resolution approving payment of attorney fees to McDermott, Will and Emery in the amount of $8,823.41 for December 1, 1991 through January 31, 1992 and to the Nibiock Law Firm in the amount of $7,983.89 for January and February, 1992 for services rendered on the incinerator disengagement and related lawsuits; Staff recommends approving payment of the attorney fees. Mayor Vorsanger requested that Item "F" be pulled from the Agenda for further discussion. Director_ Coody asked that Item "I" be pulled; Director Green requested that Item "B" be pulled; and Director Nash asked that Item "L" be removed. Henry, seconded by Nash, made a motion to approve the consent agenda, with the removal of Items "B", "F", "I" and "L". Upon roll call, the resolution passed by a vote of 7 to 0. ITEM "8" Director Green stated that since his firm is indirectly involved in the Fayetteville High School Construction Project, he will need to abstain from the vote on this particular item. • April 7, 1992 Henry, seconded by Blackston, made a motion to approve the resolution. Upon roll call, the resolution passed by a vote of 6 to 0 to 1, with Director Green abstaining. RESOLUTION 52-92 AS RECORDED IN THE CITYICLERR'S OFFICE ITEM "F" Mayor Vorsanger.stated.that due to the total cost of this two year contractswith Motorola',: Inc., approximately $76,000 to $80,000, the resolution warranted further discussion. He specifically asked about the other bids submittethand why Motorola was chosen. r. introduced Kathy Stocker, Director of and head of a team of employees on the Besides.: Motorola, Smith Two Way also 1 a t City Manager Linebaugh Communication Services, selection committee:' . submitted a bid. P• Kathy Stocker, Director of Communication Services, addressed the Board stating that the amounts of:the bids received were $3,055.6.0 from Smith Two Way and $3,400 from Motorola. Stocker stated the subcontractor for Motorola, Allcom, is the only authorized Motorola service dealer in Northwest Arkansas as well as the only authorized service and repair ifacility,able to perform warranty work- on Motorola equipment.' .Motorola provides free factory training to their subcontractors, and currently have three technicians with Motorola training available to the City compared to one technician at Smith Two Way. Smith Two Way can perform warranty work but must sustain the cost of the repairs and order any parts. The Selection Committee selected Motorola as they have the best trained technicians available to work on the City's system which cost over $900,000. Motorola offers field technicians free of charge to the City, and she reported a time last year when the City used this service. The technician worked on the City's system along with Staff for over 12 hours. This same type of service normally costs $750/day. Stocker reported that Motorola's original bid was $3,800; however, the Committee voted unanimously for Motorola and subsequently negotiated the price of $3,400. Another concern of the Selection Committee was that in the event the City signed a contract with Smith Two Way, and later were dissatisfied with the service and wished to go back with Motorola, it could potentially be costly to bring the system back up to Motorola's standards. In response to Mayor Vorsanger's question, Ms. Stocker reiterated that it is her understanding that Smith Two Way is not an authorized Motorola dealer. Therefore, Mayor Vorsanger stated that if the City allowed a nonauthorized technician to work -on their equipment, the warranty with Motorola could be void. Andrew Montgomery, representative from Motorola, addressed the Board explaining that Motorola, Inc., has over 900 service centers set up throughout the United States. Allcom Communications is the log April 7, 1992 only authorized Motorola service center in Northwest Arkansas and are entitled to subcontract for Motorola and perform authorized warranty repair for products that they sell along with the direct sales force. The use of any other nonauthorized service center may present warranty problems. Montgomery reported that Smith Two Way was formerly the authorized Motorola repair center in this area; but that contract was terminated. Blackston, seconded by Green, made a motion to approve the resolution. The resolution passed by a vote of 7-0. RESOLUTION 53-92 AS RECORDED IN TEE CITY CLERK'S OFFICE ITEM "I" Director Coody questioned whether there was a way for the City to assist the University and work with Bernie Madison to "sweeten the pot" for placement of the Math and Science School in Fayetteville. Coody reported that there are several cities with a lot of determination vying for the school as it would be a real asset to a community. City Manager Linebaugh reported that the City has been involved with Bernie Madison and the University helping in every way requested; however, he will contact them again with regard to the matter. Director Coody suggested that there may be some things the City could do that haven't been thought of yet. Henry, seconded by Blackston, made a motion to ratify the Resolution. Upon roll call, the motion passed by a vote of 7-0. RESOLUTION 35-92 AS RECORDED IN TEE CITY CLERIC'S OPPICE ITEM "L" Director Nash stated that a portion of the fees are from December 1991, and stated her concern that the bill was not timely. In addition,. Nash asked City Attorney Rose to verify the trial date set for the incinerator lawsuit and when this date was set. City Attorney Rose responded that the judge set the trial for June 22, 1992, early in March during a hearing between all parties. Director Coody further expressed his concern that these attorney bills continue to be submitted four months late, and the City continues to pay them without any type of recrimination. City Attorney Rose responded that he has requested many times that these law firms submit their statements in a timely manner; he doesn't see what else can be done. Blackstone resolution. to 2, with April 7, 1992?' seconded by Green, made a motion to approve the Upon roll call, the resolution passed by a vote of 5 Directors Coody and Nash voting no. RESOLUTION 54-92 AS RECORDED IN THE CITY CLERK'S OFBICS ELDERLY TAXI SERVICE i -0 Mayor Vorsanger introduced a report on the 1991 Elderly Taxi Program presented •by, Elaine Walker of the Northwest Arkansas Regional Planning Commission. Elaine Walker, Director of the Elderly Taxi Program, addressed the Board reporting that this program has been very positive with 1991 ridership up 5% over ;1990. She explained the reason for this small increase was partially due to the great service being provided free of charge by the University of Arkansas, through Razorback Transit, with 35% of their riders non -students;-. many elderly and some wheelchair riders.Ms.. Walker stated that Razorback Transit reports that their ridership has doubled since last year on the mall route with 150 to 200 riders per day. Wheelchair Transit, Inc., a newly formed business, reports that the majority of their rides are to grocery stores and doctors' offices In addition, Wheelchair Transit handles backup trips'for the Rehab Hospital and Ozark Transit; however they currently only haul 7 to 13 riders per week. Ms. Walker, --explained that the jury is still out on Wheelchair Transit, as a young business .that hasn't done much advertising or marketing. Ozark Transit has started a human service, elderly, and -handicapped system in the urbanized area, using Federal Transit Administration ."Section 9" funds. Ms. Walker further reported that the Elderly Taxi"Program currently has 275 participants with an,average participant age of 84.4, and the oldest rider is 101.years old. The average participant income is $6,417. The report further shows 41% of the trips for shopping purposes, 30% for medical purposes, 6% to beauty shops, and many trips for personal visitation purposes. Ms. Walker further reported that it has been shown that the participants shop primarily on weekdays in the middle of the day where they can take advantage =of multipurpose shopping at close proximity to their homes, and they tend to stay home during extreme weather conditions. There were 6,282 coupons used in 1991, or an average of 523 per month at a 75% savings, with an average trip cost of $2.67. Ms. Walker explained that a survey was sent to all participants -of the Elderly Taxi Program in October and November 1991 of which 45% responded; with only 6% of the respondents unhappy with the program. The major complaint was being picked up in a reasonable amount of time. The new cab service may solve some of this problem. Ms. Walker reported receiving many positive comments on the Elderly Taxi Program. Director Henry inquired as to the procedure for anyone interested in participating in the program. Ms. -Walker responded that they 190 April 7, 1992 should contact Jan Simco with the Community Development Office for an application. Director Nash reported on comments regarding the federally opposed cap on income of participants ($16,000 in Fayetteville) and questioned why Fayetteville's cap is higher than Springdale's. Ms. Walker responded that Fayetteville uses CDBG funds with criteria mandated by HUD; and Springdale uses general funds. Mayor Vorsanger commended Ms. Walker for her work with the Elderly Taxi Program WATER SERVICE REQUEST Mayor Vorsanger introduced a resolution approving a request for rater service by John McDonnell for 17.3 acres on Highway 45 East. Mayor Vorsanger introduced John McDonnell, U of A Track Coach, commending him as one of the most successful University track coaches in America. City Manager Linebaugh explained that the property is located about one-half mile east of the present growth boundary and is adjacent to the Goshen city limits on the east side. Mr. McDonnell plans to divide the 17.3 areas into 4 tracts. The Renager development is directly south of the McDonnell property and has had city water since 1977. There are no technical reasons why the City could not serve the property with water. The water line would need to be extended along Hwy. 45 or come from the development south of Mr. McDonnell's at his expense. Mr. McDonnell will be forwarding an annexation certificate and a waiver from the White River Rural Water Authority to the City. Staff intends to look at the cost effectiveness of enlarging this line at the time the water line is approved, and Staff recommends approving this request. Director Henry asked for verification that all policy questions have been resolved and conditions met from the 1988 request for water service to the area. City Manager Linebaugh reported that there is a possibility that Goshen may extend their city limits and annex the area. At that time, an arrangement would need to be worked out with these lines. However, this type of arrangement has been worked out before with other surrounding towns. John McDonnell addressed the Board explaining that he desires to build a home on the property and is requesting four water hookups, with plans to sell the other three parcels. 9 April 7, 1992 Director Green stated that there doesn't appear to be a downside as far as the City is concerned, especially if studies indicate that it would be advantageous to up-size the water line. Green, seconded by Blackston, made a motion to approve the resolution._ Upon roll call, the resolution passed by a vote of 7 to O. RESOLUTION 55-92 AS RECORDED IN THE CITY CLERK'S OFFICE BUILDERS' REGISTRATION.REOUIREMENT Mayor Vorsanger introduced an ordinance requiring -state registration for all -builders (1-4 rdwelling units) wishing to obtain building permits within the City: A public hearing was:held on March 24; 1992 on this registration requirement.f sy * City Manager Linebaugh reported that there were 21 members from the public present at the public;hearing'with 8 additional comments received before the„ Marche 31st deadline. He reported limited discussion on public liability or,property damage insurance. The majority of the discussionsand disagreement centered around Workers' Compensation insurance and whether this should be required by the City. The Home Builders Association is attempting to form a pool under which the builders:may become self-insured. Linebaugh reported that Staff recommends supporting the acquisition of insurance by all persons engaged in home=building; however, Staff is hesitant to require registration.: Therefore, Staff recommends that a resolution be passed -in' support of the Arkansas Home Builders Association becoming a self-insured pool. Alett Little, Director of Planning, !reported another issue discussed at the pubiic hearing was 'the handling of Workers' Compensation by general contractors with relation to their subcontractors. The State Insurance Department verified that as per a 1981 law, 'a : contractor was '.made liable for their subcontractors. In the event subcontractors do not have this insurance., the general method of acquiring Workers' Compensation insurance is for the general contractor to buy the coverage for them. Workers' Compensation insurance is required by state law for any person having two or more employees. In response to Mayor Vorsanger, Director Green reported from the agenda session that they are currently looking at passing a resolution to support the Arkansas Home Builders Association in developing a pool for self-insurance, instead of an ordinance actually requiring builders to be state registered and carry all required insurance. If this plan were to work out, the City would avoid creating an overlying ordinance on top of existing state requirements. Green .stated his support for passing such a 192 April 7, 1992 resolution as it may work out the current problems for all concerned. Green, seconded by Coody, made a motion to pass the resolution supporting the Arkansas Home Builders Association insurance pool. Bill Whitfield, builder from Fayetteville, addressed the Board with a list of cities in Arkansas who have passed similar ordinances in support of a self-insurance program Whitfield reported that due to the high cost, a majority of builders do not carry Workers' Compensation insurance on their employees as per state law; a builder basically builds using subcontractors. He referred to the recent excavation ordinance passed by the Board with the basic purpose to protect people. In addition, Whitfield stated that due to Arkansas' outdated laws, most people he builds for are totally unaware of their ultimate liability and the importance for the builders of their homes to have Workers' Compensation insurance. Whitfield reported knowing of only ten builders in Fayetteville who carry Workers' Compensation insurance. Rogers, who recently passed this ordinance, has registered 70 builders who have purchased Workers' Compensation policies. Whitfield addressed Director Coody reporting that the way the Workers' Compensation law is currently written, it does not refer to "remodeling". Director Coody stated that he hires only sub -contractors with Workers' Compensation insurance. Coody reported that his insurance carrier reports that Workers' Compensation insurance rates have quadrupled in the last ten years and are expected to quadruple again in the next five years. Coody stated his support for the resolution to encourage a home builders self-insurance pool as a good alternative where builders could be insured at a lower, more stable rate. Mr. Whitfield stated that in Little Rock where an ordinance such as this is in place, builders report that they use only subcontractors who have their own Workers' Compensation insurance. He further stated that there are only two alternatives - either license everybody who builds on your house and require insurance or put the responsibility on the builder which would be the easiest way for the City to administer. The ordinance cannot be based on waiting on the Arkansas Home Builders Association self-insurance program because it needs to be done anyway. Custom home builders have no idea what their exposure is until they are faced with it, and some of them will not voluntarily carry this insurance. Director Henry stated that due to the wage structure, individuals working for these contractors do not have there own insurance and are dependent upon them to have insurance. Whitfield stated that in the event that the Arkansas Home Builders Association is able to put together a workers' compensation self- C19 April 7, 1992 insurance program similar to Tennessee and Mississippi, the local association will have a part in the decision making process on the program. The program would place incentives in the program to keep rates down for those builders who don't have claims. Those builders that have a lot of claims would pay higher rates. Gary Streigler, C&S Custom Homes, addressed the Board relating an incident which would have forced he and his partner out of business had they not had Workers' Compensation insurance. There are many abuses of the system, and it is necessary to get everybody into the system in order to have control over it. 4. Mark Marquess, BMP Development, addressed the Board in support of the ordinance. He stated that regardless of the reasons given for not carrying Workers' Compensation insurance which include the high cost and inability to compete, an ordinance is necessary to protect the homeowner, community, and workers, including the small home builder. A first time homeowner has enough trouble understanding all the legal terms required for financing let alone realizing the- importance of insurance 'coverage. Marquess questioned the advisability of putting..off.the ordinance to give the Arkansas Home Builders Association time to develop a self-insurance pool. Pat Tobin, a resident and •developer, addressed the Board stating that before the Board 'addresses this problem, they should look at this special interest legislation. If th'e state thought the self- insurance program was viable, then they should have adopted it. Restraint of the free enterprise system'will definitely take place if this ordinance is passed. It will'eliminate the small builder, and create a monopoly' for a certain group of people thereby increasing the cost of housing,in.generai. Tobin stated that the City Board and builders should be looking'at how to reduce the cost of housing. Ray Ragsdale, a small volume builder,addressed the Board stating that it is unfair for all subcontractors not to have Workers' Compensation insurance: Ragsdale reported that Fayetteville is the largest municipality. in -Arkansas that does not have this ordinance. There are a lot of "_fly-by-night" contractors from other states that come -into town with no insurance and do "shoddy" work. Director Coody asked Alett Little if the Arkansas Home Builders Association has advised when the self-insurance pool is expected. Little responded that a member service survey has been completed with 20-25% of their members responding. A tabulated report will be sent to the actuaries by April 15, and the actuarial company will rate the reports within 30 days. The considerations of the ratings would be the number of insured, the premiums currently being paid, the histories of loss ratios in numbers and dollars paid balanced against a modification factor (State rate based on the actual experience). The ARBA expects to hear back from the April 7, 1992 actuarial company by mid May with any obstacles this program faces; however, there is no guarantee at this time whether they will be able to become a self-insured pool. Bill Whitfield addressed the Board at the request of Bruce Blackhaw, the Executive Director of Arkansas Home Builders Association, stating that Blackhaw has requested that the self- insurance pool II4t be a consideration in adopting this ordinance. He further stated that it has been brought about as a delay tactic by builders in opposition to the ordinance. Whitfield further stated that if the self-insurance pool program fails, the AHBA will commence working on another program. Director Henry asked Bill Whitfield for verification that in order for builders to be eligible for this self-insured program, they would need to be members of the Home Builders Association. She also ventured that those builders opposed to this ordinance are not members nor interested in becoming members of the ARBA. Mr. Whitfield confirmed Director Henry's statements. Director Coody responded that if the AHBA does become self-insured, then the Board could look at this ordinance again and immediately require Workers' Compensation insurance permits. This would give builders an alternative to the standard insurance companies. Director Henry stated that Workers' Compensation is already required by the state except for very small subcontractors with less than 2 employees. The problem is there is not a check point, and the state has no registration system. Henry stated that she supports the ordinance and registration as it allows the City to get a better handle on the very thing they have been concerned about - establishing track records of who is building and making sure that permits are issued. Director Nash concurred with Director Henry, stating that since the issue on the agenda to be addressed is the ordinance, she suggested that the ordinance be read and those opposed vote against it, rather than adopt a resolution that is not a law but only encouragement. Nash further stated that she doesn't see this as the state dumping enforcement on the City. This is protection for all homeowners who live in Fayetteville and not for special interest groups. In addition, Nash stated that the Board members took an oath to uphold the state constitution and statutes, and the state has a statute they are asking the City to enforce. Mayor Vorsanger asked whether this applied to the building of office buildings as well as residential homes. Mr. Whitfield responded that this law does not include office buildings, but applies only to residential dwellings, single family, and multi- family homes. 19 April 7,, 1992 Alett Little stated that persons constructing office buildings are probably covered under the State Contractors Licensing Board and was considered by the Home Builders Registration Act specifically to include those other than single family builders. The State Contractors Licensing Board just passed legislation at the last session which applies to all other contractors. Director Green stated that he believes this issue is more complex than it appears on the surface. One issue is that it is putting the City Board in the position of legislating insurance. Director Henry responded that the legislature is putting the City Board in the position:•of enforcing.insurance regulation that is already in place. T; Director Green stated that he is all'for protecting the homeowner, contractor and workers;`involved. He suggested the City encourage public (homeowner) education and make people aware of the risk of not requiring certificates of insurance: In addition, the added administrative costs to City Staff to administer this program should be considered. - ,;hj ' S fzH'- Alett Little responded that she has not compiled figures on -the added administrative costs; butit will involve additional time to make the check. Ms: Little reported'that the Inspection Division has discussed this matter,•and the "confrontational" aspects as far as enforcement will he handled'at the permit window. Director Green further stated, his concern that the way the ordinance is set up, it creates a requirement for a state registration fee of,$25, and the Cityris'actually administering the. program. Green stated he is in favor_of creating a program to protect the public against the uninsured contractor; however, he is not convinced at this time.that'this ordinance is the best way to accomplish it. Therefore,"he stated his -support for the resolution supporting the Home'Builders Association pool in order to give the City more time to assess the administration cost, how the program will be administered and enforced as'well as further assessment of the proposed ordinance. t _ r Director Nash reiterated that rather.:than going through with the resolution, it would accomplish the same thing in giving them additional time, if they simply leave the ordinance on its first reading. .. Director Spivey stated that he would like further clarification on the potential liability for the City in the instance of a builder's insurance being canceled, the City receiving notification of this cancellation, but for whatever reason, the license was granted anyway. yvv April 7, 1992 City Attorney Rose responded that in such an instance of tort negligence, the City would raise the defense of tort immunity. Mayor Vorsanger asked for a vote on the resolution to support the Arkansas Home Builders Association self-insurance pool. Upon roll call, the resolution passed by a vote of 6 to 0 to 1, with Director Green abstaining. RESOLUTION 56-92 AS RECORDED IN TEE CITY CLERK'S OFFICE City Attorney Rose read the ordinance was read for the first time and left on its first reading. BID WAIVER/TRAFFIC SIGNAL EQUIPMENT Mayor Vorsanger introduced an ordinance waiving the requirements of competitive bidding for the purchase and maintenance of traffic signal equipment. Staff recommends waiving the requirements of competitive bidding which would allow the Traffic Department to continue purchasing equipment from Tranyst Traffic Control Equipment and Valmont Traffic Signal Poles. Equipment has been purchased from these two companies since 1980. In order to stock parts and maintain current equipment, it is necessary to continue current purchases with the same manufacturer. The equipment has proven to be both reliable and economical. The ordinance was read for the first time. Blackston, seconded by Henry, 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. Blackston, 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 by a vote of 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 0. ORDINANCE 3606 APPEARS ON PAGE 429 OF ORDINANCE BOOK X X VI AMERICAN AIR FILTER Mayor Vorsangsr introduced a resolution authorising the Mayor and City Clerk to execute a Mortgage Agreement with American Air Filter and Snyder General Corporation. City Attorney Rose explained this request is based on the Arkansas Industrial Revenue Bonds, normally referred to as Act 9 Bonds, and it does not appear that the requested mortgage adds any new potential liability to the City for the bond issue. The City is 1 April 7, 1992 being asked to sign a Mortgage Agreement at the request of Snyder General Corporation. Rose explained that in 1978, the City of Fayetteville issued Act 9 bonds in the amount $4,000,000 to American Air Filter for construction of the American Air Filter Plant at 2355 Armstrong Road. He further explained that Act 9 bonds essentially use the City as a -conduit to allow industrial development in the City, allows the issuance of bonds without the City being liable in their general fund should those bonds fail, and essentially is a maneuver in which the IRS allows bond holders to get the City benefit of a non -taxability status for their bonds without putting the City's credit on the line for those bonds. Rose reported that in 1988, this project came back before the Board. American Air Filter, at that time a division of Allis Chalmers & Co., who took bankruptcy, and Snyder Corporation bought American Air Filter and took a mortgage on the property. Rose introduced Bruce Harland from Snyder General Corporation, who wants to request the Board agree to a new mortgage in order to take advantage of the low interest rates currently available. Bruce Harland, representative from the General Counsel's Office of Snyder General Corporation based in Dallas, addressed the Board explaining that a second and: inferior. mortgage to the City's was put on this property.in'.1988 when purchased by Snyder General from American Air Filter.- Harland stated that they are simply asking the City to maintain the status quo; it will not alter the City's rights and obligations. In order for'Snyder General Corporation to refinance at a lower:interest rate, their lender Citicorp, requires that all first lien holders, in this case the City of Fayetteville acknowledges that there is a refinancing happening, and they have no objection. € , City Attorney Rose further'explained that it is normal procedure in these transactions for the City to give to the trustee of the bond issue, all of its rights under the bond. The trustee of this bond issue is Boatman's National Bank �f St..Louis assigned to the City in 1978 and 1988. They have been -requested to sign the same document the -City is being asked to:sign. Rose reported that Boatman's National Bank advised him that they are requiring bond holder approval before signing the Mortgage Agreement. Therefore, Rose recommended that the Board sign the Mortgage Agreement, but onlyafter it has been signed by Boatman's National Bank of St. Louis as trustee. The.resolution before the Board sets out that it is expressly_contingent upon prior execution of the agreement by Boatman's National Bank. Green, seconded by Blackston, made a motion to adopt the resolution. Director Coody inquired as to the principal amount left on the bonds. Mr. Harland responded that at last check, it was approximately $800,000. The original bond issue in 1978 was 1.98 April 7, 1992 $4,000,000. Harland further stated that this is a thirty year bond and due to retire in the year 2008. In response to Director Coody's question; Mr. Harland responded that the interest rate was 13 3/4% and will be reduced to under 12% although the rate has a floating feature. Jim Crider, Director of Economic Development with the Chamber of Commerce, addressed the Board encouraging them to consent to the refinancing. American Air Filter has been a long standing valued corporate citizen in Fayetteville since 1978. He explained that this will help American Air Filter remain competitive in the world market place. Director Spivey concurred with Jim Crider agreeing that American Air Filter has been a good corporate citizen and commended Bob Hughes, the plant manager. Spivey reported having the opportunity to tour their plant and stated that it is one of the finest plants in Northwest Arkansas. Upon roll call, the resolution passed by a vote of 7 to 0. RESOLUTION 57-92 A8 RECORDED IN THE CITY CLERK'S OFFICE DALTON ARTS CENTER Mayor Vorsanger introduced a resolution approving a change order with McClinton -Anchor in the amount of 5150,300.00 for the construction of the Town Creek Garden at the West Avenue parking lot, and approval of a budget adjustment. This change order will cover the reconstruction on the stone structures, landscaping, a water feature, sidewalks, lighting, and terraced walkway, and a pavilion with a skylight across from the Walton Arts Center canopy. There are $110,000 in uncommitted funds for this project, but a budget adjustment of $50,000, which will include a $10,000 contingency, is required to cover the cost of the Town Creek Garden project. David Cox, the City's project coordinator, presented drawings of the landscaping of Town Creek Garden at the West Avenue parking lot including reconstruction of the stone arch with a water flowing feature, landscaping with replacement and replanting of trees, a pavilion matching the canopy of the Arts Center with a skylight. Every effort is being made to complete this work before the Art Center opens. Director Nash asked if a public hearing has been held on the addition of these landscaping features. Cox responded the last public hearing was in the summer of '91 regarding approval of the overall plan. Cox further explained that this landscaping plan was 1 April. 7, 1992 developed from the overall plan and contained the same amount of landscaped area. Director Nash expressed her concern that the trees and stonework were removed and now the City is spending extra money to reconstruct it and suggested the money may be better spent on an existing park area rather than "reinvent the wheel". Director Green asked what it would take in order to get the cost back down to the original estimate of $110,000 and what features would need to be taken out. Cox responded that there have been several options explored. The total removal of the pavilion would save $48,000, and $20,000 would be saved by eliminating the skylight. Cox further reported that the original estimate for this landscaping was $170,000. Modifications were made to reduce the change order to $150,000. Any further reductions would necessitate scraping the design and starting over. Director Green stated that the particular design being presented was a result of many compromises in dealing with a lot of public -input. Scraping the plans and paving this area for a parking lot would be a dangerous course after the City Board committed to the compromise as presented. The Walton Arts Center will be a very pleasant facility for citizens to enjoy with green space, the water feature and a pavilion. These positive features are the major amenities left for this parking area. Perhaps there is a way to reduce the cost by negotiation without changing the concept and destroying what has been created and at the same time avoid being accused of overdoing the landscaping. Director Nash agreed that the landscaping plan is beautiful; however, she expressed her concern that they need $150,000 worth of "beautiful" when the majority of complaints against the plans were to save the existing trees. Nash therefore suggested that they may want to make this the maximum on this landscaping. . 1 David Cox responded that this change order for a budget adjustment would completely cover the cost for the garden, including changes in the amount of $4,300_ to comply with the Americans with Disabilities Act. There are two other parking lots to be considered which will require some minor change orders to comply with the Americans with Disabilities Act. Some of the costs are unit costs, and it is anticipated that the full price will not be needed for the 400 block of Dickson parking lot and there may be a credit coming back on that..The $50,000:budget adjustment is being requested to ensure that $10,000, remains in contingency funds to make additional handrail modifications to comply with the Act. 4 Director Coody stated that.he.,also sees irony in this project since hundreds of people representing thousands asked the Board to - 44 • 4UU April 7, 1992 preserve one-third of an acre for a park which was denied due to lack of money and the ability to maintain. The City had the money to tear out the stone wall, cover up the creek, remove the trees, fill it in and pave it over. Now they have the money to recreate the stream, rebuild the stone wall, and replant trees. Coody, therefore, stated that the vote the Board took to bulldoze this area was the biggest public relations snafu the City has done for quite awhile. The best thing the City could have done was to spend half the money and fix up the existing area. Director Coody asked why the spring that was to be left exposed under Scheme "B" has been covered up. Cox responded this was part of the contract for the West Avenue parking lot. Cox further reported that minor modifications were made to the schematic plan. The "L" shaped landscaping plan in Scheme "B" was modified in order to construct more parking places and contain the spring using a spring box into an overall landscaped area. These changes were contained on the drawings presented Board approved the plan for the West Avenue parking lot. Director Coody further questioned the use of "SB2" on the parking lot when it was agreed that asphalt would be put directly on the clay base. Cox responded that Director Coody is referring to the change order on the Dickson Street lot rather than this lot. Director Spivey reminded Director Coody that the vote the Board took to bulldoze this area was a call they had to make in order to avoid having a hole in the ground when the Walton Arts Center opened due to being tied up in litigation. This issue has been addressed and agonized over at many meetings and was not a flippant decision. A decision has been made, and they do not need to go over it again. There has been a lot of money spent, and it will be a very nice facility. Spivey also stated that by not choosing this path, they could have secured more property for parking. Mayor Vorsanger asked for verification on Director Nash's suggestion that they could use this money for improvements at existing parks and whether it is an "even/or" situation. City Manager Scott Linebaugh responded that the money has been designated by the Board to be used for only this purpose. Director Nash responded that the Board designates and undesignates every day. In closing, she agreed that it is time to complete this project. Henry, seconded by Blackston, made a motion to adopt the resolution. David Franks, resident of the Walton Art Center "Disapprovement" District, addressed the Board stating that there used to be a park at West and Dickson which was bulldozed with "misused" City funds. ' April 7, 11992 Franks stated that the City has stabbed "them" in%the back and now is compromising by not twisting the knife so badly. He expressed his displeasure with the proposed landscaping plan. He stated it is not a garden, or a park, or a, spring, or the wall. Franks reported that the row of trees on the east side, unless planting poplar trees, the parking lot is visible from every lobby window in the Walton Arts Center building.`. In addition, this will produce a glare for the afternoon performances. from the parking lot and cars. Mr. Franks further asked if someone planned to monitor that only the elderly and infirmed park on this one-third acre. ,..„ Charles Moorman, resident of Finger Road,''addressed the Board stating that City Manager Linebaugh was reported as lamenting the fact that the sales tax suit had deprived the taxpayers of a number of needed services, such as street improvements,ipark maintenance, etc. Therefore, the Board should consider reallocating the $150,300 for those purposes rather than spending the money to make amends for the destruction of Town Creek Park by replacing what was once a beautiful, natural, wooded green space with what appears to be an unneeded, pretentious, a wholly artificial garden with its spur of the moment addition of a glass pavilion entirely alien to the historical character and way of life of the area, and designed as yet another mindless feature of a self-indulgent facility. Moorman stated that the last existing tree on the Arts Center grounds, at the corner of Dickson and School, went down this week in the course of constructing the Arts Center parking lot which inartistic asphalt slabs have already cost the City $2.5 million. Barbara Moorman, resident of Finger Road, addressed the Board stating that for just phase II of this particular parking lot, they are proposing to spend $800,000 which will probably be over $1 million after the purchase of land, demolition, and other phases. The budget for Walton Arts Center parking was $2,480,037 and $2,369,737 has already been spent, and now the City wants to exceed the budget at $2,530,037. Moorman stated that the Arts Center, fostered and fed by the City, is a monster as greedy as it is tasteless and is swallowing money just as it has swallowed trees and green space and the character of original Fayetteville. Ms. Moorman requested that the City Board cut off the Arts Center's allowance and to start compensating for the damage and suggested a better idea would be to put the money toward buying the land and trees for a park next to Leverett School which the City claims they can't afford. John Quinn, resident of Stagecoach Drive, addressed the Board endorsing the proposed parking facility across from the Walton Arts Center. He plans to attend some of the activities taking place at the facility; and he will want close, convenient parking. Quinn stated that theplan is a reasonable compromise that most reasonable citizens of Fayettevillewould approve and agree to in trying to restore green space that was taken and yet provide efficient parking utilization for the facility. 20 L232 April 7, 1992 Mayor Vorsanger called for a vote on the resolution. Upon roll call, the resolution passed by a vote of 6 to 1, with Director Nash voting no. RESOLUTION 58-92 AS RECORDED IN THE CITY CLERR'S OFFICE OTHER BUSINESS "3 MINUTE BEEPER" Director Coody requested that the little "beeping device" be moved to another location as it really has no purpose and is annoying. City Manager Linebaugh responded that the device is Board policy and was instituted by the Board at their wishes. Director Blackston stated that he would rather see the "3 minute rule" enforced rather than do away with the beeping device; it is annoying to him when the beeper goes off and there's no action taken. Mayor Vorsanger stated that it is probably his fault that the rule is not being enforced. NEWSPAPER ARTICLE Mayor Vorsanger stated that in the same newspaper article that Mr. Moorman mentioned, there was a quote by Mr. Robson which mentioned Mayor Vorsanger's name, ". . the lawsuit was filed and I didn't even know it had been filed . ." Mayor Vorsanger reported that for the record, he would be giving the press tonight transcripts of the hearing and depositions sworn under oath. Mr. Robson is mentioned by five out of six of the individuals that filed the sales tax lawsuit against the City as the individual who they talked to, and in most cases, were asked by Mr. Robson to be a party to that suit. Tiny Hamilton discussed, he Director, and HAMILTON REOUEST requested that since this issue has already been be allowed to speak with Mayor Vorsanger, a Board of the press after the meeting. VEGETATION MANAGEMENT PLAN Director Nash reiterated that Jerry Cooper would be presenting a report at the next agenda session. ADJOURNMENT The meeting adjourned at 10:02 p.m.