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HomeMy WebLinkAbout1992-08-04 MinutesMINUTES OF A MEETING OF THE CITY BOARD OF DIRECTORS A regular meeting of the FayettevilleCity Board of Directors was held on Tuesday, August 4, 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, Julie Nash, Dan Coody, and Bob Blackston; City Manager Scott. Linebaugh; City Attorney Jerry Rose; City Clerk Sherry Thomas; Director of Planning, Alett Little; Director of Public Works 'Kevin Crosson; Director of Administrative Services Ben Mayes; members of Staff, press and audience. ABSENT: CALL TO ORDER Director Shell Spivey. The meeting was called to order by the Mayor, with six Directors present. The Mayor asked those present to. stand and recite the Pledge of Allegiance, and then asked that a brief moment of respectful silence be observed. The Mayor welcomed 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. CITIZEN RECOGNITION Mayor Vorsanger announced the City of Fayetteville has so many citizens who bring recognition to the City. He stated the City has a 10 -year old baseball team called the "Bambinos" who have won the first state championship held in Fayetteville for 10 -year olds. He announced the Bambinos are playing tonight in Mountain View against three other teams who won their state championships. If the Bambinos win two more games, they will sweep their regionals. Mayor Vorsanger designated July 31st as "Bambinos Day" at their send off last Friday. Mayor Vorsanger further announced that Mike Conley, from Fayetteville, has won a gold medal in the Olympics in Barcelona. This is the first Olympic gold medal won by anyone from the City of Fayetteville. Mike will be arriving home on Thursday evening. His plane is due in at 9:00 p.m. at Drake Field. Vorsanger announced the City would hold a "Mike Conley Appreciation Day" on Friday, August 7 with a noon reception on the Square. He urged the citizens of Fayetteville to come out on Friday to welcome home and honor Mike Conley. 40 August 4, 1992 OLD BUSINESS Items that have been brought before the Board but were tabled or no decision made to allow for further information to be presented. NOISE CONTROL ORDINANCE Mayor Vorsanger reintroduced an ordinance amending the Noise Control Ordinance. The Board voted at their July 21, 1992 meeting to amend the Noise Control Ordinance. The amendments would provide that only property owners or leaseholders may complain, and the noise is measured from that property. This would eliminate the general public from complaining and eliminate enforcement from public property. The police would have no independent enforcement responsibilities. The ordinance was read for the first time. Green, seconded by Blackston, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 6 to 0. The ordinance was read for the second time. Green, seconded by Blackston, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Director Nash asked City Attorney Rose to briefly explain how this Noise Control Ordinance is different from the original. City Attorney Rose explained the present Noise Control Ordinance has been criticized in that it is ambiguous as to where the noise is to be measured from. The proposed ordinance would clear up the alleged ambiguousness by having the noise measured from the property owner's or lease holder's property. Secondly, the current ordinance allows any individual, regardless of where he is, to complain. The proposed ordinance limits those who complain to lease holder's or property owners on their property. The decibel levels contained in the amended Noise Control Ordinance are precisely the same as in, the present ordinance. Director Coody expressed reservations with the proposed amendments to the Noise Control Ordinance. He stated his support for the recommendation previously rendered by City Prosecutor Terry Jones to clear up any ambiguity and intent of the original ordinance, noise levels should be measured from the property that was generating the noise. Coody further stated he believes the specific problem at issue has been solved through the cooperation and extreme measures taken by George's Majestic Lounge to lower their noise levels, the noise level has become acceptable to the neighborhood, and the same was solved without amending the City's ordinances for this one situation. August4; 1992 Director Coody further questioned the. amendment to the Noise Ordinance which eliminates the generaFpublic from complaining, but doesn't address or eliminate the noise problem: He feels it is unfair to disallow, for instance, an employee of a retail establishment who is bothered _by'. noise eight. hours a day from complaining about the same. He believes the City is weakening their current -noise ordinance by amending the measurement of sound levels from the property boundaries of the actual source of the noise, and moving the measurement 4 to 5 blocks away, to the property of complainant as well as limiting who can complain. This problem does not necessitate changing the laws. Bill Myers, resident of 306 Adams, addressed the Board stating he does not have a complaint against George's Majestic Lounge. He has been a patron for many years back in the beginning when the beer garden was a vineyard. Mr. Myers stated his opposition to the amended Noise Ordinance, and suggested they look at the overall problem of "noise pollution" in two capacities: 1) The primary purpose of public health, which the amended ordinance does not address, but rather interferes with the enjoyment of life; and 2) The entire concept should be expanded to look at the interior noise as well, and reduce that level to where it is not destroying the hearing of patrons. Mr. Myers further supported measuring noise from the source, and differentiating between "sound" and "noise". With respect to limiting who can file a complaint, Mr. Myers stated this will merely cause confusion. He suggested the Board defeat the proposed amended Noise Control Ordinance, go back to square one, and improve the entire ordinance in terms of the public's hearing being protected. Claudette Hunnicutt, resident of 520 North Washington, located one block east of College Avenue, addressed the Boardstating there are times when her family can hear the music coming from George's. Regardless of the fact that the City seemingly has corrected the problem with George's Majestic Lounge, she assured the Board that George's is not the only problem in the community concerning loud music emanating from bars and causing trouble in residential neighborhoods. Ms. Hunnicutt posed the question as to when her rights to enjoy the peace and quiet of her home and neighborhood became secondary to those who wish to play loud music, scream,. swear, and fight on her street at 2:00 a.m., and when did their rights become more important than hers? Ms. Hunnicutt reported from her discussions with public officials, that many of the people who frequent these establishments are not even residents of Fayetteville, who come to our city to party, because their cities don't allow these kinds of establishments. As the student population grows at the University of Arkansas so does August 4, 1992 their numbers grow at the local bars, and they make up a large percentage of the patronage. The University's decision several years ago to stop all alcoholic beverages from being served on campuses has only added to the problem in the Fayetteville community. Ms. Hunnicutt stated her family and neighbors feel like captives in their own homes. In light of the many and varied problems being experienced in several areas of Fayetteville, she urged the Board of Directors not to "water down" the Noise Control Ordinance in any way. The problems already being encountered in many areas of the city will only become compounded if they do so. Director Coody addressed Ms. Hunnicutt stating he receives more complaints, like those she expressed,- from this same neighborhood, than any other single situation in Fayetteville. What occurs inside these bars at night when they're open is their business; however, when these patrons trespass on private property and violate the rights of the property owners, it becomes the City's responsibility to protect these neighborhoods. In response to Director Henry's question whether the police respond to her calls, Ms. Hunnicutt stated if available, the police do respond. However, she has been told there are only 8 policemen on patrol in Fayetteville at night, and it frequently takes 20 minutes for them to arrive. She has also been advised by the police on numerous occasions her calls are not considered "an emergency situation", and often times by the time the police arrive, the troublemakers are gone. It wouldn't be so bad if these activities occurred occasionally; but these infractions are happening every week, and on her Street, as often as Thursday through Saturday, until 2:30 a.m. Woody Bassett, attorney representing George's Majestic Lounge, addressed the Board stating in view of some of the remarks made, he was compelled to address the Board once again. Mr. Bassett stated he knows and respects Claudette Hunnicutt and her family; however, he doesn't believe the problems she is encountering in her neighborhood have anything to do with George's Majestic Lounge. He further suggested the discussion taking place should be focusing specifically on the Noise Control Ordinance. Mr. Bassett stated he doubts the City Board can do much to control rude, obnoxious behavior at late hours; however, a citizen has every right to be concerned and to call the police with such complaints. Mr. Bassett further explained this proposed Noise Control Ordinance is designed to protect people and ensure citizens have the right to enjoy peace and quiet in the privacy of their homes. The ordinance allows a property owner or apartment dweller to enjoy this peace and quiet in their home or apartment, and if they are disturbed by some source of noise that is too high or out -of -line, then they have the right to lodge a complaint with the Police Department. An officer will then visit the property where the complainant resides August 4, 1992.: and using their equipment, will measure the decibel level. If the decibel level registers in excess of the proscribed limits, then that source of sound will receive a citation. To his knowledge, Bassett stated this is the method in which the Noise Control Ordinance was originally intended 'and enforced. Somewhere along the line, someone made a decision to measure the decibel level from the boundary line of the noise emitting property. Once that switch was made, at least in the interest of George's Majestic Lounge, it became rather unfair. With respect to the concern this Noise Control Ordinance will not permit the general public to lodge a complaint; Mr. Bassett reiterated a noise ordinance is supposed to protect citizens in 0 their homes. If the ordinance was to allow the general public to complain, this could create a situation where those who don't like music or establishments that sell liquor or patrons that gather there could use this as a vendetta against that establishment. Mr. Bassett stated the City Board should be focusing on an ordinance that is fair and reasonable for everybody concerned, and in the final analysis, protects people in their homes. Mayor Vorsanger asked if anyone present knew the Board of Director's legislative intent in the initial Noise Control Ordinance of where to measure the noise? Director Henry responded she was serving on the City Board at the time the initial Noise Control Ordinance was adopted, and the legislative intent was to protect people in their own homes from unduly noise. The Board recognized this could be within compliance at that establishment, but because of the topography, could be disturbed in their own home. Director Henry further stated it is her recollection that the intent of the original Noise Control Ordinance was to measure the decibel level from the receiving source. Woody Bassett stated the City's amended Noise Control Ordinance returns to the original intent of the ordinance where measurements of sound levels are taken from the receiving land use. Mr. Bassett further stated the management and employees of George's Majestic Lounge are very aware of the problem and have made considerable efforts to control the noise problem, and will continue to keep the noise level at a legal and appropriate level in the future. To his knowledge, George's Majestic Lounge is the only establishment in Fayetteville which offers outdoor music. The surrounding neighbors in this area are satisfied with the efforts made by George's to control the noise. Mr. Bassett further stated with the passage of this ordinance and the public debate that has taken place on this issue over the past few months, surely puts everyoneon notice they need to monitor the 4'i • August 4, 1992 noise from their home or property is kept at an acceptable and legal level. If nothing else, this decision has brought the problem to the minds of the people and to those who have an obligation to control noise. Director Coody, through Woody Bassett, thanked George's Majestic Lounge for their efforts to correct the noise problem. Charles Howard, resident of Fayetteville, addressed the Board in opposition to the proposed amendment to the Noise Control Ordinance, stating he is not satisfied with the efforts taken by George's Majestic Lounge, and although the noise level has been reduced, there is still a problem. Mr. Howard reported the neighbors he has spoken with agree with him that the current noise levels should be reduced even more. Mr. Howard called attention to the preamble of the amendment to the Noise Control Ordinance which states, "It is the intent of the Board of Directors of the City of Fayetteville to protect the citizens from unreasonable or excessive noise while in their homes and/or their property." He believes the intent of this ordinance should be to protect the citizens of Fayetteville from excessive noise, wherever they might be within the city limits. Mr. Howard stated the proposed amendment ignores the problems that people have with noise outside their homes and gave the example of a family picnic taking place in a city park, and another picnicker sets up a "boom box" close by, playing loud music; the proposed amendment to the Noise Control Ordinance would not enable them to be protected from this noise. He further reiterated Director Coody's concern with the proposed amendment that individuals who are bothered by outside noise during the course of their employment would be barred from making a complaint. Mr. Howard stated the noise level should be measured as close to the source as possible which gives a better measurement than measurements taken one-half mile away from the sound source. He further stated the police report of July 20th in which it was reported they measured a decibel level of 72 at George's Majestic Lounge, which is approximately four times a higher noise level than would be under the interpretation of the current ordinance. The police stated they could not determine who was making the noise because it appeared there was a second band playing somewhere in the immediate area; therefore, the police decided to ignore the situation. Mr. Howard stated that if the police can ignore a decibel level of 72 because two bands are playing, they are likely to ignore measurements taken one-half mile away from the noise source. Mr. Howard mentioned the EPA survey of cities throughout the United States that found the decibel measurement at the boundary line between commercial and residential properties averaged 52 decibels, r;4 U August .4, 1992, and the City's decibel level limits allowed are approximately four times that of the survey average.' • In view of the numerous concerns expressed by citizens about other noise problems in the City, Mr. Howard suggested that the Board of Directors appoint a committee of citizens to study these problems, and try to establish the best possible noise control ordinance possible. Director Coody stated that some cities have noise levels 5 decibels lower than the City of Fayetteville's; however, due to the University, the City felt that a higher level was in order. He reported that in Columbia, Missouri, their noise control ordinance is without decibel levels, but rather,it states that if a sound can be clearly audible at 300 feet before 11:00 p.m. and clearly audible at 50 feet after 11:00 p.m., this violates their noise ordinance. Mr. Coody stated that he liked the idea of forming a citizen's committee to discuss this multi -faceted city-wide noise problem and ordinance. Charles Howard responded to Director Coody's comments and stated the City of Norman, Oklahoma, where the University of Oklahoma is located, has a decibel limit ordinance which provides for a limit of 55 decibels at night. He further reported the City of Greensboro, North Carolina, had an ordinance which prohibited sounds from amplifiers which were audible at 150 feet. Mr. Howard stated he lives more than 1,500 feet from George's Majestic Lounge, and the noise created by the amplified music is audible at his home. The noise level has decreased and the problem improved since the controversy began; however, he believes it could be improved further. Cyrus Young, resident of Fayetteville, addressed the Board stating as far as he is concerned, the original Noise Control Ordinance needs no further clarification. However, he doesn't believe the ordinance is clear to the Police Department or the City Prosecutor. A problem in the past has been with enforcement of the law as it is written. Mr. Young asked if this ordinance is passed, what assurances would the citizens of Fayetteville have, that the ordinance would be enforced as it is written? Mayor Vorsanger responded to Mr. Young's question, stating he assumes it would be enforced the same as the present ordinance is enforced. Mr. Young stated the problem has been that the Noise Control Ordinance has not been enforced as it was written. It was his understanding that the center of the problem has been with the interpretation of the ordinance; however, the amended ordinance is very clear, and he would hope the City makes, certain this -new ordinance is enforced as it is written and filed at the Courthouse. August 4, 1992 Robert Brandon, resident of Fayetteville, addressed the Board stating he has a problem with the bizarre line of reasoning which says citizens only have a right to protection from noise pollution while huddled in their homes. By not enforcing the Noise Control Ordinance in public places, this allows for wide discretion in terms of any kind of noise source, and in such places as public parks, this would open a gate to continual, constant, unmitigated noise in public places. Mr. Brandon stated his agreement with Director Spivey's comments at the last Board meeting. It is absolutely absurd to expect the public to enforce the noise ordinance. It is the responsibility of the police, and the wording in the amended ordinance makes it absolutely unenforceable. In order to respond to complaints, the police would be required to go to a number of different places to investigate noise from a single source. Mr. Brandon stated the only reasonable method for measuring noise levels is to measure from the source. In closing, he urged the Board to reject the proposed amended Noise Control Ordinance. Bill Myers addressed the Board stating the problems created with reflection of sound, is exactly why the noise measurement should be taken at the source. A member of the audience addressed the Board stating she has since moved, and cited an incident when one Saturday night, the band from George's Majestic Lounge and four bands at the old warehouse were competing until 2:00 to 3:00 a.m. Many of the elderly residents at Hillcrest Towers go to bed at 9:00 p.m. and find it hard to sleep due to the noise. Mavis Mitchell stated she is a resident at 1 North School, a twelve story high rise with 120 apartments which primarily houses disabled and elderly people. Many of the residents cannot afford air conditioning and keep their windows open in the summertime. She stated her appreciation for any efforts made by George's Majestic Lounge and other establishments on Dickson Street to shut the noise down. Woody Bassett stated it would be great if a perfect Noise Control Ordinance could be drafted to address every potential situation and problem, but that is impossible. He suggested the Board of Directors needed to pass an ordinance that is fair and workable and balances the interests of businesses and homeowners. The ordinance further should permit the police department to investigate and issue citations for violations of the Noise Ordinance, but won't have the police running here and there with decibel machines when they have more important matters to attend to. Mr. Bassett stated there is not a citizen in this country that from time to time isn't affected by some source of excessive noise. The ordinance needs to address the situations where there is a rel August 4/ 1992 continuous problem, and give .homeowners and citizens on their property a remedy. He stated his belief that the remedy offered by the amended ordinance was fair and good. Mr. Bassett gave an example of how noise affected different people in different ways, citing that decibel levels taken in the surrounding neighborhood to George's Majestic Lounge register at 58 to 61 decibels from the crickets. For the record, Mr.. Bassett reiterated George's Majestic Lounge closes at 1:00 a.m., Monday through Friday, and closes at midnight on Saturday. Mr. Bassett assured the Board that if this ordinance is passed, George's Majestic Lounge will do their best to ensure that citizens are not disturbed in their homes. George's has been in business for many years, and in general has done a good job of limiting the noise. There have been some problems when the noise was too loud, and this has been corrected. Many of the complaints being conveyed to the Board come from past behavior, and he suggested they look not to the past, but to the future. Charles Howard addressed the Board suggesting the simplest way to handle the problem at George's would be to turn off the amplifiers, suggesting amplified music after 11:00 p.m. is inappropriate. George's Majestic Lounge is currently the only establishment in Fayetteville with outdoor amplified music, and Mr. Howard expressed his concern that other establishments are considering it. Therefore, he suggested the City stop outdoor amplified music after 10:00 p.m., and lower or hold the decibel levels to the current limits prior to 10:00. Claudette Hunnicutt addressed the Board stating she is very good friends with the Harrisons, and she appreciates the fact that they have corrected the problem at George's Majestic Lounge. However, this Noise Control Ordinance is not only for George's but for the entire City. Therefore, the Board needs to consider other situations as well when passing this ordinance. Director Coody concurred with Ms. Hunnicutt that the discussion has zeroed in on one particular business and situation at George's, but the Noise Control Ordinance is city-wide and ongoing. He believes this issue has been more special interest oriented than it should be Director Green stated based on his research and the various positions expressed on the proposed Noise Control Ordinance, it appears to him that the original intent of this ordinance was for the protection of people in the privacy of their homes and property. As far as noise levels in the workplace, there is the Federal Occupational Safety and Health Act which protects workers on the job. The decibel levels proscribed under OSHA regulations are extremely stringent and .strictly enforced. .The issue of controlling noise levels on public property can be a problem, and he suggested persons being bothered by noise on public property, August 4, 1992 such as parks, always have the option of moving to another location. The other facet of that is that if the noise on public property is extreme, chances are it is going to be extreme at the boundary and interfering with nearby residential property owners who could complain. Director Green stated some of the decibel measurements taken by the police indicate if they were to lower the decibel limits at residential property, they will be creating a further enforcement problem by requiring the noise limit to be lower than the background limit. Noise created by crickets, tree frogs, and general traffic has background noise levels right at the proscribed limits in the ordinance. Therefore, Green stated he believes the decibel limits established in the Noise Control Ordinance are very practical, well thought-out, and balanced to different needs and the various special interests. Green expressed the original Noise Control Ordinance contained some "gray areas" which were perhaps misinterpreted and created confusion. He believes the proposed amendment to the Noise Control Ordinance absolutely clarifies the original intent of the ordinance and will continue to protect the people on their own property, whether commercial or residential. Director Blackston stated regardless of what type of Noise Control ordinance the City adopts, it will not please everyone. What is noise to one person, is not necessarily noise to another. At his own residence, he reported the primary noise created in the summertime results from crickets, katydids, and locusts. There are only three sounds that will penetrate through and become dominate over the natural sounds created by these insects: noise from Thunder Valley Racetrack two miles away, the EPC Plant which operates a machine that creates a hammer noise, and the large trucks, with loud mufflers, traveling from the south on Hwy. 71. Blackston stated when they chose this option from the four offered, the Board did so with the intent of clarifying the existing Noise Control Ordinance as to where the noise is to be measured from. They are not tearing up an ordinance which was probably given a great deal of thought at the time it was adopted. He believes the option the Board chose for amending the existing Noise Control Ordinance is the least offensive, and he will support it. Director Nash reiterated she prefers City Prosecutor Terry Jones' option of measuring the sound at the source because logistically it makes more sense to go to one place than to run all over town trying to measure the source. Upon roll call, the ordinance passed by a vote of 4 to 2, with Directors Coody and Nash voting no. ORDINANCE 3624 APPEARS ON PAGE /63/ OF ORDINANCE BOOK )(XVI August 4; 1992 CONDEMNATION Mayor Vorsanger reintroduced an ordinance to condemn Tract #73 consisting of 1.96 acres plus 11 mobile homes owned by Mr. and Mrs. Allen Hatch for the Airport Federal Land Acquisition Project. This ordinance was left on its third reading at the July 21, 1992 Board meeting to allow Mr. Hatch additional time to negotiate on replacement property. W.D. Schock Co. has been unable to reach a settlement with Mr. and Mrs. Hatch on their property. The Hatches were made an offer of $230,000 for their property on April 8, 1992, which is the appraisal amount. The Hatches made a counteroffer of $300,000 and to keep 3 of the mobile homes. (A copy of the appraisal is available for review in the City Clerk's Office). To avoid delays in the project, the Airport Board and staff recommend condemnation of the property. City Attorney Rose read the ordinance, which was on its third reading. Allen Hatch, owner of the subject property, addressed the Board stating as of that evening, the property that he has been attempting to acquire is no longer for sale. Therefore, he is out of suggestions and/or places to go for replacement property. Dale Frederick, Manager of Drake Field, addressed the Board reiterating the Airport Federal Land Acquisition Project is primarily for safety and the Relocation Act is to move people away from areas that would create danger to the public, and in no way will the property owner be jeopardized with the proceedings on this condemnation. Mr. Hatch is entitled to full benefits of the law. W.D. Schock addressed the Board stating he has been conferring with Mr. Hatch over the last two or three weeks, and they have made a good faith effort to come to an administrative settlement before proceeding with condemnation proceedings. Mr. Schock reported their approach is to try to work with homeowners one-on-one before filing condemnation proceedings; however, his job ends at a certain point after the offer is made and a reasonable period of time has elapsed. If in fact there is a disagreement on the appraisal of the property, in order to be fair and equitable to the property owner, a condemnation proceeding is necessary. As the City's consultant, he recommends this property be condemned. Mr. Hatch stated he and Mr. Schock have worked hard on a settlement in the last few weeks, and believes Mr. Schock has done everything possible to reach settlement. However, his disagreement is the appraisal of this property does not justify his loss,of income for the balance of his lifetime. .With the new county rules and August 4, 1992 regulations as far as sanitation, water and roads, which he fully supports for a small business, the cost of these improvements would be a hardship on him. Director Coody addressed Mr. Hatch stating condemnation proceedings are probably the least favorite responsibility of the Board. Mr. Hatch responded the hard part for him to swallow is that his father left him a little money, and he put it into this mobile home park, which was his retirement. He has been a police officer most of his life with small cities, and he has no pension; this was intended as his pension. This property existed before the airport, and planes have been flying over it for years and years. Upon roll call, the ordinance passed by a vote of 6 to 0. ORDINANCE 3625 APPEARS ON PAGE/("/ OF ORDINANCE BOOR XXVI SANITATION RATE INCREASE Mayor Vorsanger reintroduced an ordinance increasing the sanitation rates for the City of Fayetteville. This ordinance was left on its first reading at the July 21, 1992 Board meeting to allow time for further information to be prepared and presented. Based on current projections of expenditures, rates will have to be increased for sanitation services effective August 1, 1992 to avoid a year end deficit in the Sanitation Fund. To stabilize the Sanitation Fund, the following rates are proposed: A. Increase current residential rates from $5.50 to $7.75 per month ($1.50 for current recycling and composting programs and 75C for increased disposal cost). B. Increase commercial load all rates from $2.00 to $3.00 per cubic yard. C. Increase commercial cans base rate from $5.50 to $8.00 per month. Henry, seconded by Blackston, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 6 to 0. The ordinance was read for the second time. Henry, seconded by Blackston, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion was passed by a vote of 6 to 0. The ordinance was read for the third and final time. • August 4,. 1992 Director of Public Works Kevin Crosson addressed a memo Staff had prepared regarding discussions with the City Board of Directors over the last several weeks program. The memo outlines the City's interest and commitment to provide a pilot curbside recycling program to the citizens of Fayetteville. Crosson reported due to the sales tax bond funds being tied up in the lawsuit and the inability to secure capital funds for a processing facility, curbside recycling has not yet been implemented. The City has set aside money for a transfer facility in the last two Capital Improvement Programs, and Staff is currently working on other options involving the Four -County Solid Waste Management District to obtain state grant money to fund a solid waste transfer station for Southern Washington County. Such a facility may be able to serve as a processing facility for the City's recyclables. A third option would be a combination of the Four County Solid Waste District's grant program and the City's sales tax money. He stated they are prepared to implement a very limited pilot curbside recycling program within the next eight weeks. Staff is currently evaluating a program started in Hot Springs, Arkansas, in early July, and will continue to follow their progress as the City of Fayetteville begins its own curbside recycling program. Over the past several years, Staff has gathered a tremendous amount of information on the various curbside recycling program options available. Crosson reported they anticipate their initial pilot curbside recycling program to entail a neighborhood volunteer program limited to one route, utilizing existing manpower and equipment. This program would be coupled with once -a -week trash collection. Due to the lack of capital infrastructure, this program will be limited to collection of aluminum, clear glass, and newspaper, with one material being collected each week. Staff proposes to refine and develop a proposal, including a time frame, to present to the Board at the first meeting in September that outlines the specifics of the program they would like to offer the City. Crosson further reported Staff's concern with the sanitation increases, as they feel strongly that it is their responsibility to present options to the Board to maintain the integrity of the solid waste fund. He further reported the best estimates are that the solid waste fund will be out of money by the end of the year, assuming no landfill rate increases. The Board has options for improving the entire rate increase being recommended or a percentage increase simply to maintain the fund until other options can be explored. - In response to Mayor Vorsanger, and in further clarification of the proposed ordinance, Crosson explained he is recommending the City begin the process of evaluating curbside recycling programs. The concept being presented to the Board is an initial pilot curbside recycling program, on a very limited basis; utilizing existing August 4, 1992 resources. This pilot program will give them information such as public participation levels, initial data on volumes, and evaluation of infrastructure needs. This being the initial program, there will probably be a need to do several other pilot programs to evaluate various collection methods before a final decision is made. Future pilot programs would also incorporate volumetric rate studies to determine the most cost-effective method to charge residents for these services. In response to Director Coody's question regarding collection procedures with the pilot curbside recycling program and normal trash collection, Crosson stated on a Monday/Thursday schedule, they would collect solid waste on the first day of the week and then one recyclable on the second collection day of the week. Director Coody stated anything they can do to implement curbside recycling should be supported by the City. He believes the simplest and least confusing method will be the most effective. In his discussions with Drew Holt, the Four County Solid Waste District Coordinator, he presented the argument for a twice -a -week collection schedule with solid waste collection on one day and recyclable collection on the other. He stated it is hard for citizens to remember which days what is collected, so he favors a once -a -week collection schedule for all materials which is much less confusing and would allow for much higher participation. Director Coody suggested Staff consult with Drew Holt, who has expertise in this area and could offer some very good ideas. Kevin Crosson responded he believes Drew Holt's suggestion is an excellent program the City may want to undertake as one of their pilot programs. He stated the Board of Directors would most likely prefer to look at a handful of collection options, and evaluate each against the other to determine which would fit the City of Fayetteville. Mayor Vorsanger stated these are very good discussions and as far as a pilot recycling program, they can be started at any time. However, the question before the Board is a rate increase. He expressed his concern with the deficit in the sanitation fund, spending $350,000 per year more than collected. The question before them is whether to continue on their current path, which will only increase the deficit in the sanitation fund, or is the Board willing to raise sanitation rates to cover a minimum level of service currently being offered. He personally believes Fayetteville's sanitation/recycling service is a "Cadillac" service and the best buy anywhere in Arkansas at $5.50 per month. Director Nash asked Kevin Crosson if he has reviewed the daily operations of the Sanitation Department to see if there are any areas that could be cut? August 4, 1992 Kevin Crosson responded he has evaluated the solid waste operation on several occasions, and in fact, reduced expenses tremendously in the operations and administration program by approximately $200,000. This department has had no choice but to be cost conscious in the solid waste fund due to their inability to get a rate increase since 1982. Mayor Vorsanger stated they should not minimize the fact that the City has not had a sanitation rate increase for ten years. Director Blackston stated he has been opposed to looking at a solution to the City's sanitation situation from only one standpoint, that of a rate increase. The thing that "sticks in his craw" is a lot of people continue to purport Fayetteville's neighbors to the north have programs that provide essentially the same services for less money. He has talked with Staff, and this simply is not true. These communities are paying approximately $5.50 a month sanitation fee, but their programs are not nearly equal to those provided by Fayetteville. Fayetteville's recycling and composting: programs are far superior. Director Blackston stated the point he would like to get across to the public is that recycling and composting is a "negative" in terms of the cost; it's not a break-even or profitable situation. Blackston stated he is firmly convinced this is the route the City of Fayetteville needs to take, but it will take funding. The fact is that to increase the City's recycling or composting programs or to maintain the current level of service, it will cost more money. Director Blackston stated the City is in a deficit situation, and if they want to keep their current services or improve services, they must consider increasing rates. Blackston stated he is willing to vote for some sort of program that will keep the sanitation fund balance in the black, instead of in a deficit condition, leaving the new City Council with a much larger problem than they would have otherwise. Director Henry stated some members of the Board have been members since 1988, and the rate increase proposals have been made every year since; therefore, she hates to see them put this issue off to another Board. She believes the public's perception to be that a portion of this issue is reflected by the "incinerator" which was an attempt to solve some of the problems, and they are paying for that and not getting anything in return. The City has proceeded with programs which the citizensrequested such as composting, and it simply is not a "free" good, and the citizens of Fayetteville have been receiving a real bargain. The options are either to raise the income or reduce services; and she for one is not willing to give up on composting and recycling. The reality isthat, even if they make no changes, or do nothing, everything is going to cost more. The state has mandated they solve this issue responsibly in an environmentally acceptable way. August 4, 1992 Henry stated she believes the Public Works Department has strained and taken a number of steps to get this matter under control. Henry further stated the proposed rate increase will only reflect what the services are actually costing and will put the new City Council in a position to continue with these services. She believes curbside recycling is coming, and they need to implement multiple projects to see which the citizens prefer. This is the type of action this Board can take in a responsible way to prepare the new City Council, with some funds coming in and begin to have programs in place for them to consider. In conclusion, she stated her support for the sanitation rate increase because it is "reality" whether they like it or not. She suggested they do need to begin "unbundling" their fees with the use of volumetric rates, which will be much better received by the public. Director Nash stated she is not willing to approve residential sanitation rate increases at this point, but would rather implement the prior mentioned pilot programs and projects in town to determine exactly what the citizens of Fayetteville can live with. She would probably approve a variation of the proposed rate increase; such as a commercial rate increase and decreasing residential collection to only once a week. Director Green stated when the Four County Solid Waste District was established, he had and still does have extremely high hopes it will be the ultimate long-range solution for the solid waste problems in Fayetteville and in the Four County District. One unrealized drawback with the Four County Solid Waste District plan is it gave them all a good excuse to sit back and wait for the Solid Waste District to solve all of their problems. They failed to realize the probability of so much inertia involved with these programs. It takes a lot of time and effort to get organized and implement successful programs and can seem overwhelming on the forefront. Green stated his belief because of this inertia, the Four County Solid Waste District, and the City have not made any big breakthroughs to date. He believes once the Four County Solid Waste District gets rolling and establishing programs, it will be a benefit to Fayetteville. Green further stated Fayetteville needs to realize they still need to look out for themselves and tend to their own solid waste disposal needs, and we can't look to "big brother" to solve all of our problems. Director Green stated there will be a lot of "bullets to bite" before this is over with. Due to controversy, there are a lot of areas that have yet to be investigated, such as a "materials recovery facility" (MRF). No matter what programs the City implements, the fact of the matter is, that Northwest Arkansas is still going to have to face the necessity of a landfill whether private or public, in order to manage solid waste into the next century. He reported the landfill that is currently closest to being permitted is at the Durham site. 4I August 4, 1992 Director Green stated they need to look at the sanitation rate increase as stabilizing funds. This Board of Directors has been extremely fiscally responsible and have made sure that their funds are liquid and everything is funded properly. The best legacy for this Board would be to at least make sure all funds are in order and fluid. In closing, Green stated he would support a sanitation rate increase, although not necessarily in final form, as a rate increase will not serve as a long-term solution. The problem creating a rate structure that favors those who recycle, is that it ends up costing the City more, which violates economic principles. He is in hopes that the Four County Solid Waste District will create some markets making recycling economically viable. Director Coody stated he concurred with the other Directors' comments. The City needs a volumetric based rate - the less waste generated, the less you pay and the more waste generated, the more you pay. The current sanitation rate of $5.50 per month, averages out to 69G per collection, which currently doesn't include recycling and composting costs. Coody stated the real solution to the solid waste problem will not be whether they have an incinerator or a landfill, but rather, how can they reduce the amount of trash generated to begin with. Director Coody asked Staff if the City's commercial contracts include ,their collection of the incinerator disengagement fee. Kevin Crosson responded they are currently negotiating this action. If for instance, a bank contracts with the City to collect their trash, they pay an incinerator disengagement fee, but if the bank subcontracted with Sunray for their trash collection, the City would not collect the fee. Director Coody stated the current system discriminates against some City waste producers and lets the others off the hook, when to begin with everyone would have used the incinerator. Coody stated he is 45% in favor of a sanitation rate increase, because he believes the public will tolerate a small rate increase. They .know $5.50 per month does not cover the services they are receiving. However, Coody stated he is 55% in favor,of waiting until the City knows exactly what they are going to do in regard to their solid waste situation, establish the necessary rate increase and it will be implemented, and then present it to the public. In addition, Coody suggested the City needs to immediately implement an educational, campaign to encourage the public to reduce the trash they generate. Carol Conger., resident of Fayetteville, addressed the Board stating the information she has received through the news media regarding a sanitation rate increase has been confusing. The question before the Board seems to be whether or not to raise the sanitation rates; however, the discussion demonstrates there remains a lot of questions and concerns within the community and by the City Board on the topic of garbage, sanitation, and recycling. In that light, August 4, 1992 Ms. Conger entertained the idea of the City hosting a public forum that allowed everyone to put their heads together and look at the problems and various methods to solve the same. She questioned the amount of garbage being imported into their area. Ms. Conger further stated it appears the finger is being pointed at the recycling project as the cause of a deficit and financial problems in the Sanitation Department. It is her understanding over $2 million in legal fees for the incinerator lawsuit have also come out of this same budget. Director Henry responded to Ms. Conger she had been misinformed with respect to the incinerator lawsuit legal fees. Ms. Conger suggested the Board of Directors and the public should work together on long-range solutions for their long-range solid waste problems. Director Coody asked Ms. Conger if she would suggest the public meet with the existing Board of Directors, or with the new City Council. Ms. Conger responded they needed to proceed as soon as possible in hopes the new City Council would continue in the same vein. Director Henry announced Drew Holt will be in attendance at the next Board Agenda meeting to present options for dealing with solid waste. As the Four County Solid Waste District process proceeds, she suspects there will be numerous opportunities for the public to become involved. Mike Faupel, resident of Fayetteville, addressed the Board reiterating his statements from two meetings ago that any rate increase needs to move to a volume based rate as a simple rate increase would only serve as a "bandage" to the problem. He further stated the pilot programs proposed by Kevin Crosson would serve as a "carrot" and would make a simple sanitation rate increase a lot easier to swallow considering the interest shown for curbside recycling. Director Blackston stated the programs and studies being proposed are all methods he has considered himself and has proposed and lobbied for in the past. However, by the time they implement all of these programs, if they decide to postpone a rate increase until after public hearings and until they have all the answers, the fund will be broke. Therefore, for the time being, the City has to "bite the bullet" and approve a sanitation rate increase. If they allow this fund to operate in the red and turn the matter over to the new City Council, it could be sometime into the early part of 1993 before any action could be taken. Therefore, Director Blackston stated his support for the sanitation rate increase as proposed. August 4, 1992 Director Henry stated if the Board approves a sanitation rate increase at this time, it will give them the ability to bring the sanitation fund back to a decent balance and also provide solid information and feed back from the pilot programs. She stated her belief there are a number of neighborhoods that are very committed and she believes there will be people coming forth to volunteer to be the leaders to prove these programs can be successful. One of the most frustrating things for her as a City Board member has been she has been on this Board for almost two years, and for one reason or another, nothing has been done to start the process. They should not be fiscally irresponsible and put money into something that may not be the best option for the four counties; however, it is time for the City to take some action. The pilot programs being proposed could provide valuable information for the Four County Solid Waste District, which no other community is currently doing. Director Coody asked if there was a City fund that was so well off they could borrow from it to cover their debt in the sanitation fund, to allow them to work on a feasible plan, so at the time they do increase the sanitation rates, they will know exactly what will be required for what they plan to do and then pay back the borrowed funds. City Manager Linebaugh responded this would be an alternative, as there are funds they could borrow against which would allow them to go for several months without creating problems. The only problem he sees with that option is by not increasing sanitation rates now, it will take longer to pay back such a loan, and the money would have to be repaid. Mayor Vorsanger asked the Board if he sensed they wished to include in the proposed ordinance suggestions made by Kevin Crosson regarding the pilot projects? Kevin Crosson responded he didn't see a need to tie the pilot projects into the rate increase ordinance. He explained Staff's intentions are to present the Board with a proposal at the first meeting in September for their approval or modification. Mayor Vorsanger stated the reason he raised the question was due to Mr. Faupel's statement for which he concurs. rt Citizens would understand a sanitation rate increase better if a volumetric rate system was implemented. Upon roll call, the ordinance passed by a vote of +5 to 1, with Director Coody voting no. / ORDINANCE 3626 APPEARS ON PAGE �.6 8 OP'ORDINANCE BOOR X1CV/i August 4, 1992 FINANCIAL AUDIT SERVICES Mayor Vorsanger reintroduced an ordinance waiving the requirements of competitive bidding and approving a contract extension in an amount not to exceed $51,000 with Coopers & Lybrand for financial audit services of the City for 1992. This ordinance was left on its second reading at the July 21, 1992 Board meeting. This contract with Coopers & Lybrand was for the years 1988 through 1991. However, due to the change in government, changes in operations and procedures may be made. Therefore, it would create a problem for firms submitting proposals for audit services. Coopers & Lybrand is familiar with the operations of the City and can provide continuity in the audit process until the new administration is in place. City Attorney Rose read the ordinance, which was on its third reading. Director Coody stated since the City is going to a new form of government, it might be better to have an independent auditing firm review the books and provide a brand new, fresh look at the financial status of the City. Mayor Vorsanger explained this contract is bid every four years, and the new bid is due for 1993. He stated he was responsible for suggesting to the internal auditor that, since the current Board members are "lame ducks", it seemed inappropriate to go through the RFP process for only a one year contract. It was his suggestion they waive this requirement of competitive bidding this year, and extend the contract for one year with Coopers & Lybrand for 1993 only. The new City Council could then go through the process of selecting their own auditors. Director Henry commented the argument that they should use a local firm is moot because local firms are not large enough to be able to service and meet all requirements that a City of this size and magnitude requires. In addition, using auditors from outside the City tends to establish the "independent" factor. Moat of the firms staffed for this type of contract are located in Tulsa and Little Rock. Henry explained her reasoning for suggesting they look at having a separate audit done to verify that everything was in place as of the time this Board left. However, in talking with auditor friends and the City's internal auditor, she does not believe at this point there will be a problem nor a need for a separate audit that would cost an extra $25,000. Coopers & Lybrand independence and integrity are enough that if massive changes are made with the new City Council, they would be able to detect procedures that were not August 4, 1992 being followed according to the procedures set in place and to make sure the funds brought in are also expended in the fashion proscribed under both state and federal audit requirements. Director Nash stated she still favors the competitive bidding process and doesn't agree with waiving competitive bidding as often as they do. They are talking about hiring a firm for one year, and she sees no reason for the rush. They could have the competitive bidding process, and if in fact no local companies are interested in this bid, they could still hire Cooper & Lybrand at a later date. Mayor Vorsanger responded it doesn't work way. He stated all the local firms are eligible to bid, and the City would welcome their bids, if they felt they could handle the City's audit. For the public's benefit, he reported asking the independent auditors to define the difference in cost to the City if they only audit the General Fund as opposed to the entire City Administration which is only $2,000. To those individuals who continue to ask why the City doesn't use the legislative audit, which is free to the City, Mayor Vorsanger responded the legislative audit only audits the General Fund, and the City, however, is required to have an audit for all of its government grants and contracts, all bond issues, and those audits must be completed within six months of the end of the City's fiscal year. The legislative auditor could take up to two years to complete their audit, and the City cannot wait that long to receive the audit for the present year. Therefore, regardless of whether the legislative auditors would audit the City's General Fund, they would still need the independent, outside auditors. Vorsanger stated in his opinion, the use of an independent auditor is a "good buy" and is a sound, fiscal method to do their business. Upon roll call, the ordinance passed by a vote of 5 to 1, with Director Nash voting no. ORDINANCE 3627 APPEARS ON PAGE /76 OF ORDINANCE BOOR XX VI' CHAMBER OF COMMERCE REPORT Mayor Vorsanger introduced a report from the Fayetteville Chamber of Commerce on economic development activities for the second quarter of 1992. Jim Crider, of the Fayetteville Chamber of Commerce, addressed the Board to present the quarterly. report, in accordance with the Cooperative Agreement between the City and Chamber. He touched on someof the more salient aspects 'of the Chamber of Commerce's activities for the second quarter of 1992, as follows: August 4, 1992 1) New Business Recruitment A. The Chamber has continued to coordinate with the Arkansas Industrial Development Commission to train a new Fayetteville marketing team; five of the six training sessions have been completed and have gone extremely well. The new marketing team will help to get the "good word" out about Fayetteville and compile additional credible information for their research base. Most importantly, the marketing team will deal directly with clients looking into our community, whenever they have potential for investment in Fayetteville. B . The Chamber has conducted tours of the Fayetteville Industrial Parks to five different industrial prospects during the second quarter. Based on his years of experience in economic development, Crider stated in his opinion, the City continues to recruit extremely good industrial clients. C. The Chamber has responded to twelve general inquiries from industry and has done follow-ups with these companies and will continue to work these leads. D . The Chamber has worked with Southwestern Electric Power Company (SWEPCO) in participating in a booth for their service area that was conducted at the Institute of Food Technologists in New Orleans at which there were roughly 14,000 people in attendance. Each City that participated with the SWEPCO booth was assigned specific times to work the booth to discuss the benefits of their specific service areas and of the individual communities. The Chamber is following up on clientele who showed interest in Fayetteville, and Crider reported some good leads. E . At the time of the report, the Chamber had been coordinating with the five Northwest Arkansas Regional Chambers for a trip to participate in the "Trends 2000 Business Expansion/Relocation Expedition" in Anaheim, California. The Chamber has since attended this Expedition and has leads from there to follow up. F. Crider reported travel to visit with two different companies about investing in Fayetteville as well as six prospect visits, and two investors who visited Fayetteville. G . The Chamber has placed advertisements to continue the exposure of Fayetteville nationwide and throughout many major areas of the world in some of the leading August 4, 1992 industrial magazines including the "Arkansas Manufacturers Guide" and "Area Development Magazine". These are frequented by decision makers of the major companies in which Fayetteville has an interest. In addition, Crider reported the Chamber would be advertising with a full page ad in the programs at all of the University of Arkansas home games including six football and seventeen basketball games. H. The Chamber is continuing to negotiate with two clients, one of which the Board of Directors has been made privy to. Crider reported as soon as the technical steps have been completed, the Chamber will finish this project and make it public. 2) Existing Industry Retention and Expansion A. Crider reported he has made it his own personal target to visit with each and every one of the 39 manufacturers and processors in Fayetteville and has completed 20 visits to date. In these visits, Crider is receiving input on what each industry is doing, information on their products and area service, and most importantly, what their needs are and what the City and Chamber can do to help. He further stated the City should not overlook the chances to become better acquainted with the needs of local industry since they will comprise about 85% of the City's projected growth in the number of employees in the years ahead. 1992 has shown major potential for expansion and addition of employees from the local industries. B. Crider reported attending the Arkansas First Manufacturing Trade Show in Hot Springs in order to become acquainted with their program. From this show, he has determined instead of bringing a_ function such as that to Northwest Arkansas, they more than likely will be looking into a "Matchmaker Program" for Northwest Arkansas, and have prescheduled the same to take place in December. He explained the "Matchmaker Program" is a one day reverse trade show where anywhere from ten to twenty manufacturers display parts forwhich they are interested in locating Arkansas manufacturing sources. This would keep trade within the boundaries. of Arkansas, make transportation of products. easier, ,and help other manufacturers. 1 C. Crider reported attending a Northwest Arkansas World Trade Committee meeting regarding Japan export opportunities. In addition, the Chamber hosted a group from the Shandong Province in China. This delegation's ._. .5":Y 4 • August 4, 1992 visit was for the purpose of exploring the potential of international trade opportunities. Crider reported the visit with this China delegation went well, and the Chamber plans to continue to encourage further development in that area. 3) Small Business Assistance A. The Chamber provided counselling and employer services to a number of small businesses and has begun to coordinate with the U.S. Small Business Administration to establish a Small Business Assistance Library within the Chamber. Crider reported this effort is not peculiar just to the Chamber, as the Genesis Program has already put together an extremely good reference library for small business and the Small Business Development Center at the U of A. The Chamber's intent is to help enhance this situation. 4) Research A. The Chamber has compiled area demographics for six general inquiries, and their capabilities have increased tremendously in this area to the point that they are maintaining a data base of information on the Four County Northwest Arkansas area. This will assist the Chamber in conveying the regional picture of Northwest Arkansas which Crider stated was extremely important. With a combined population of over 260,000 in the region, companies begin to show interest in the area that wouldn't otherwise even look at Fayetteville. B. The Chamber has received a new community profile on Fayetteville produced by SWEPCO. Crider stated SWEPCO is a tremendous ally to Fayetteville, as well as the AIDC, and expressed the Chamber's indebtedness to these entities. Without a lot of cooperation from various agencies, including the various departments within City Hall, Crider stated he wouldn't have obtained the research that he has thus far. 5) Community Awareness A. The Chamber continues to attend various meetings to promote the Chamber of Commerce and offer the opportunity to ask about the City's Economic Development Program. Crider reported having the opportunity and privilege to make some speaking engagements with various organizations. Director Coody asked Mr. Crider if the Chamber was continuing efforts in locating pinpoints of companies that can deal with the City's "post consumer resources" (trash) and in zeroing in on 1 August 4, 1992 4 .i industry that could help the City with their hi -tech industrial research park, someone that could work with the University's Physics Department, for example. Crider responded he has had contact with Ed Davis and Al Drinkwater of AIDC and has been provided with a directory of companies involved in processing. With regard to hi -tech industry, Crider reported the Chamber is dealing with two companies who have an interest in Fayetteville's hi -tech industrial park. They certainly want to carefully scrutinize for the non-polluting companies, and are environmentally sensitive with the questions they pose to these companies. Crider stated the Chamber is very interested in recruiting hi -tech companies. He reported on the recent trip to the "Trends 2000 Expo" in Anaheim, California, they came across a couple of companies who could very well be interested in this type of set-up. Director Coody suggested Crider continue his discussions with Drew Holt in an effort to research new technologies in recovery facilities dealing with tires and mixing glass with melted rubber to produce "glasphalt" for roads. In addition, Coody stated Drew Holt may be able to enlighten the Chamber toward new industries for which the City may want to consider. 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 July 21, 1992 regular Board meeting. B. A resolution awarding Bid 91-59 to the low bidder, Southern States Industries, for the purchase of pumps and equipment in the amount of $11,325.90 for use at the Pollution Control Plant. This is a budgeted replacement pump in the Water and Sewer Fund and is to be used in the aeration basin at the Waste Water Treatment Plant. RESOLUTION 113-92 AS RECORDED IN THE CITY CLERK'S OFFICE 1 C. A resolution authorizing the application for $50,000 matching funds for the development of Gulley Park from the Arkansas Recreation Outdoor Grants Program Y This is the third application for matching funds for the development of Gulley Park., .If funds are awarded, they will • August 4, 1992 be used to install a pavilion, playground, water fountain, and picnic facilities. (A copy of the grant application is available for inspection in the City Clerk's Office.) RESOLUTION 114-92 AS RECORDED IN THE CITY CLERK'S OFFICE D. A resolution authorising payment of $90,238 for permanent and temporary easements as required for the installation and maintenance of the proposed 36" rater main across vantage Square property, Tract Nos. 208-A, 208-B, 211, and 212 on Joyce Street. Appraisals have been done on the land, and an offer made for the easements of $80,400 which included a credit to the City for an 8" water line across Tract 1211. Vantage Square would not recognize the credit for the water line and has agreed to settle for the appraised value without the credit or $90,238. RESOLUTION 115-92 AS RECORDED IN THE CITY CLERK'S OFFICE E. A resolution awarding to the low bidder, Thomas Harding, in the amount of $193,000 a construction contract for the Boarding Gate Expansion Project at Drake Field, and approval of a budget adjustment from the Airport Fund Unreserved Fund Balance. The Airport Board recommends awarding the contract and approving the budget adjustment of $61,210 contingent upon sufficient funding. The project is over budget because of several reasons: the existing type of metal roof is no longer manufactured; the two gates have to be constructed separately for operational reasons; the existing concrete slabs have shifted and are unusable; no funds were budgeted for HVAC items; and the budget price is over one year old. (A copy of the Wittenberg, Delony & Davidson Architect, Inc. project manual is available for inspection in the City Clerk's Office.) RESOLUTION 116-92 AS RECORDED IN THE CITY CLERR'S OFFICE F. A resolution awarding a contract in the amount of $30,715 to McClelland Consulting Engineers, Inc., to provide a study and report of recommended public improvements in the Community Development Southeast Target Area. McClelland was selected as a result of the City's professional selection process. The scope of the study will be to identify streets and sidewalks that need repaired/replaced; identify neighborhoods that need sidewalk construction; determine the need for storm drainage; determine need for traffic control signals; and develop a master plan for a 3-5 year period. ti ly August 4, 1992 G. A resolution approving a budget adjustment for the Cable Administration Department decreasing the Building Cost Account by $93,500 and increasing Minor Equipment by $23,500 and Fixed Assets by $70,000 for the purchase of video equipment, test equipment, furniture, and computers for the PEG Center. The Board approved Ordinance 3589 dated January 21, 1992, to amend the Franchise Agreement with Warner Cable allowing grant monies to be used for equipment, construction, and renovation of the PEG facilities. This Budget Adjustment is required for the money to be transferred on the City's books. RESOLUTION 117-92 AS RECORDED IN THE CITY CLERK'S OFFICE Director Nash requested Item "F" be removed from the Agenda. Nash, seconded by Coady, made a motion to approve the Consent Agenda. Upon. roll call, the motion passed by a vote of 6 to 0. ITEM "F" Director Nash reported receiving requests from residents of the Southeast Target Area to pull this item from the Consent Agenda in order allow discussion -on the possibility of these residents offering their services in helping with the ranking of the projects. Carol Conger, resident of the southeast target area, addressed the Board with a prepared statement concerning the resolution awarding a contract to McClelland Consulting Engineers to provide a study and report of recommended public improvements in the Community Development Southeast Target Area. She expressed her gratitude to the City for moving toward making, badly needed improvements to the infrastructure of their neighborhood. With respect to the proposal for a study by McClelland Engineering .firm, to determine what and where improvements are most needed, Ms. Conger stated the proposal raises a number of questions, and requested the Board carefully review her questions before voting on this resolution. With respect to John Quinn's written statement to Jan Simco that there appears to be more needs within'the target area than there are funds to address them. She :suggested each expenditure be seriously scrutinized. Ms. Conger questioned whether the expenditure of $30,715 for the services of McClelland Engineering, was absolutely necessary? Is there an alternative which would save money? Can they possibly achieve the same goals in a less expensive and more costeffective way?, Specific questions concerning the proposed study include, but are not limited to the following: . , 1) The cost summary for the proposed study reflects $16,467.93 will be charged for an item called overhead. August 4, 1992 This amount is more than half the total amount of the contract, and more than triple the direct labor cost. Is 157% overhead a standard for all of McClelland's contracts? Besides payroll expenses and office overhead, what is this charge for? 2) A profit of $2,907.94 is listed in the cost summary. Does this mean no other profit is being made on the $27,807.06, which McClelland will receive? 3) The fee proposal lists rates for six employees, ranging from $92 per hour for the project director to $22.50 per hour for clerical help. Multiplying these rates by the estimated hours for each employee, gives a total fee of $30,211.50, which is more than a $500 difference than the total price shown in the cost summary. Is this an error in their mathematics? 4) Why should it cost $416.50 to obtain forms and City codes? This seems unrealistic. Are other items on the fee proposal equally unrealistic? 5) Why was this item placed on the Consent Agenda to be voted on without further discussion of these expenditures? 6) Although bids are not required by law for services, why didn't the City choose to shop around and determine if these services could be procured less expensively? 7) John Quinn's letter states the output of this contract will be a plan for spending $1.5 million over the next five years. Is this Federal Block Grant money or Community Development money that has been borrowed at 45% interest? 8) The Community and Board of Directors must exercise great responsibility over such a large amount of money. How will the Board ensure ongoing citizen participation? The people who live in South Fayetteville and who know the conditions there should have more input than just one final public hearing to fine tune this proposal. Ms. Conger requested the Board postpone voting on this proposal until further review and clarification occurs, preferably involving residents of the target area. She further requested the Board carefully consider finding another less expensive method to assess the needs and determine what improvements shall be made, so the limited funds available are spent directly on the improvements that are most needed. 'August 4, 1992 Jan Simco, Community Development Director, addressed the Board stating she was not aware of most of these concerns until now. She announced Wayne Jones from McClelland Engineering was present to answer questions and was also unaware of these concerns. Mayor Vorsanger asked Ms. Simco to verify, on what basis the City selected McClelland Engineering in their selection procedures. Ms. Simco responded last October, the Purchasing Officer solicited a request for proposals from several area engineering firms. The Committee of Staff met to consider the firms and rank them according to their capacity to complete the job, timeliness, past experience, etc., at which time, cost was not a factor in this process. Thereafter, Ms. Simco requested John Quinn, Vice - President of McClelland Consulting Engineers, Inc., submit a proposal and cost which Staff assessed and found to be reasonable in comparison to other contracts at that time. Ms. Simco reported there are two public hearings being planned: one early in the process, to receive input from the neighborhoods involved and another at the end of the process to receive additional input and present the proposals to the City Board. In response to Director Nash's question, Ms. Simco explained her statement "cost was not a factor" stating this was not a "low bid" situation, according to City policies for selection of professional services and according to HUD regulations. Jan Simco further stated as Community Development Director, her door is always open for citizens to discuss their concerns at anytime. She reported the study process is expected to take approximately three months, and based on recommendations in the final study and report, she will be able to budget funds for the next 4-5 years, thus the reason for ranking the projects, since there isn't enough money in• the Block Grant .Funds to fund everything. • Director Henry added HUD also has regulations that must be followed in order to be eligible to spend any of these funds. From an engineering standpoint, a portion of the study is to evaluate conditions in terms of long life, and set a 3-5 year plan to schedule anticipated projects. Henry reported this portion of Fayetteville has been the beneficiary of numerous.Block Grants over the past 10 to 12 years. Director Henry reported the "Central City" area, including Boles and Watson Streets, is another area which is currently receiving public improvements including street, infrastructure, and sidewalk construction and improvements. Thereafter, the target is being shifted down into the southeast part'of Fayetteville, and these areas have been chosen and are eligible, under strict income guidelines, for Block Grant funds. Since there are many areas of town which need improvements, Henry stated these target August 4, 1992 improvements could certainly be perceived by some as "special interest legislation". Ms. Simco reported taking a tour of the entire Southeast Target Area with Johnny Quinn and Jim Beavers. This neighborhood has been segmented into areas "A", "B", and "C". It has already been determined area "A", east of the Courthouse, between Willow and College and Spring and Huntsville Streets, is the area in greatest need of improvements. This area will be targeted first, followed by areas "B" and "C". Director Henry explained under Block Grant regulations, the City is required to verify income levels to make sure that the targeted area is within the guidelines, which requires intrusive questioning of residents. If HUD would perform an audit and discover, in fact, these improvements were placed in an area that was not eligible, then the City is required to pay back out of its General Fund, the funds expended not within the federal government guidelines. Mayor Vorsanger stated before they get into the specifics of the McClelland bid, he suggested Ms. Simco address Ms. Conger's question as to why use an outside firm, and why not perform this study in-house. Jan Simco responded she does not have the expertise to perform such a study. Besides being familiar with the area and talking with the residents to determine what problems exist, including storm drainage water problems, badly needed street repair, addition of curb and gutter, and flooding of yards, Ms. Simco stated how to get from point A to B and get the projects implemented, she does not know the answers and needs assistance to get the maximum utilization from the rehab funds. Mayor Vorsanger added the in-house Engineering Department is involved with other projects and does not perform this type of work. Ms. Simco stated Jim Beavers, staff engineer with the City, has assisted her up to this point, and will continue to do so throughout the process because of her unfamiliarity with this type of project. She further stated there will be ample occasion for City Staff, as well as the public, to give their input on the project. Director Green asked if there were any HUD requirements for such a study and report in these targeted areas. Ms. Simco responded there are no such HUD requirements. Director Green believes since this area is so large and the needs abundant, and the constraints with future budgets, that some kind of ranking study and report would be advisable. In addition, improvements in this target area need to tie in with other improvements down the creek, for example. 1 •`t t1 August 4, 1992 Wayne Jones, principal with McClelland Consulting Engineers, addressed the Board stating the proposal was prepared by Johnny Quinn, who is currently on vacation. He stated he has reviewed the request for proposals from the Community Development Office and Quinn's proposal, which addresses the specific items requested. Mr. Quinn met with Jan Simco and Jim Beavers of the City Engineering Staff and toured the project areas, and estimates were made thereafter. Mr. Jones stated that from a technical engineering standpoint, levels of effort required to prepare such a report include drainage calculations and studies, streets and sidewalks, cost estimates, supplies needed, acquisition of copies of information from City Hall on a pay-as-you-go basis for prints, copies, telephone conferences, etc., to obtain information from City files that would be beneficial to McClelland in the development of the target area report. He explained if McClelland had to develop that information on their own, the cost would be several times greater than the figures in the estimate.. Director Coody reiterated Ms. Conger's question regarding the amount budgeted for obtaining review forms and city codes. Mr. Jones responded this cost is for obtaining copies of city codes to ensure they are complying with up-to-date codes, acquiring information on City street standards, and generally ensuring they have in their possession all information with regard to City codes and other standards and that they are current before preparing the report. Jones further verified it would take approximately eight hours to obtain the information • Director Green stated this is a prime example of "swallowing a camel and choking on a gnat". The Board has many more items to address on the Agenda, and yet they are drilling Mr. Jones over $416, which will be charged to McClelland by the_City for making copies of the forms and current codes. Green stated he sincerely believes they have answered Ms., Conger's questions, and doesn't understand why they are wasting their time on this matter, suggesting they proceed with the Agenda. Mayor Vorsanger reiterated Ms. Simco's previous invitation that her door is always open to any citizen from the southeast target area who would like to discuss the proposed project, and he is assured Ms. Simco will be talking with the citizens of this target area before any final decisions are presented to the Board. Green, seconded by Henry, made a motion to approve the resolution. { Ms. Conger addressed the Board •reiterating one>of her specific questions whether 150% of the direct cost for*overhead is standard in McClelland contracts. Wayne Jones responded this rate is standard in all McClelland contracts, and has been for years. August 4, 1992 Ms. Conger further asked besides payroll and office expense, what does this $10,000 go to. Mr. Jones responded it is for all overhead expenses other than direct labor costs. Carol Conger reiterated her previous request that the Board postpone voting on this resolution. She requested the City include community involvement in ranking of projects in this target area. Since this engineering study and report is not a HUD requirement, Ms. Conger suggested the money could possibly be put toward actual improvements, instead of consultants. In response to Mayor Vorsanger's question as to who Ms. Conger is representing; she responded she is a resident of this area. Mayor Vorsanger stated the easy way out of this situation and an alternative would be to cancel the project. Upon roll call, the resolution passed by a vote of 4 to 2, with Directors Coody and Nash voting no. Director Coody stated he was in favor of the southeast target area project. He further apologized for the attitude of the City government toward Ms. Conger, which he considers offensive. A resident of the area addressed the Board stating the $30,000 approved for the McClelland study and report, could have been put to better use. Specifically, she referred to needed repairs to Willow Height Apartment #29, where water has been seeping in around the apartment for the past nine months and creating a terrible stench. There are four families living in this building who have had to shovel water out of their apartments, and dig a ditch to reroute the water. She reported these families have been advised by the City that there are no funds available to cure this problem. Mayor Vorsanger suggested she discuss these problems with the City's Community Development Director, Jan Simco. RESOLUTION 118-92 A8 RECORDED IN THE CITY CLERK'S OFFICE REZONE R91-23 Mayor Vorsanger introduced an ordinance rezoning 25.61 acres located on the east side of Old Missouri Road and south of Zion Road from A-1, Agricultural, to R-1, Low Density Residential, as requested by Jim Phillips and Rick Robles and represented by Dave Jorgensen. This rezoning was tabled by the Planning Commission at their December 1991 meeting. At the July 27 Planning Commission meeting, they voted 7-0-0 to recommend rezoning. 11'3.- August 4, 1992 The ordinance was read for the first time. Blackston, 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. 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 was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Director of Planning Alett Little explained this is a 25 acre tract which the developer wants to subdivide into 17 lots. She reported Staff has been working with the developer for quite sometime now in developing the design for the subdivision, and the rezoning request has been before the Planning Commission on two occasions, and they have voted unanimously to approve it. Director Henry asked if the concept plat for this subdivision had anything to do with the Board approving the rezoning? She reported receiving calls from concerned citizens regarding topographical issues in terms of drainage, and requested she be allowed to review the concept plat with Ms. Little. Ms. Little responded the concept plat is tied to the rezoning in that the developer presented both to the Planning Commission for approval at the same time. She explained the Planning Commission delayed the rezoning request in order to address some of the concerns regarding the subdivision plat. Ms. Little further reported the Planning Commission does have an outstanding drainage concern, and the developer has been charged with submitting a drainage plan to the City. Director Henry asked how far the Stearns Road intersection, between Joyce and Zion, was from this proposed development? Her question stems from long term plans to connect Crossover Road over to Hwy. 71, which would make Old Missouri a through street and create additional traffic in this area. Henry asked whether there were plans for a traffic light at this intersection of Old Missouri and Joyce. Alett Little responded a street light would be more probable for placement at the intersection of Joyce Street and Old Missouri, prior to placement of a street light at Stearns and Old Missouri, due to the fact that Joyce will carry. more traffic than Stearns. In response to Mayor Vorsanger's question, Alett Little stated Stearns is not currently a through street, and'one of the items negotiated on this subdivision plat was a;dedication of 25 feet of right-of-way on the south side of this particular parcel, to give the City halfof the needed right-of-way required to place a city street through here in the future, if required. August 4, 1992 Upon roll call, the motion passed by a vote of 6 to 0. ORDINANCE 3628 APPEARS ON PAGE j7/ OF ORDINANCE BOOK wit REZONE R92-23 Mayor Vorsanger introduced an ordinance rezoning 3.2 acres located on the north side of West 6th Street and went of One Mile Road from A-1, Agricultural, to C-1, Neighborhood Commercial, as requested by Mike Price on behalf of Nelson D. Curtis and Glenn A. Oldham. The Planning Commission voted 7-0-0 to recommend rezoning. The ordinance was read for the first time. Blackston, 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. 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 was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Director Coody stated he understands the need for rezoning this property commercial; however, it appears to be a continuation of strip commercial zoning in areas of Fayetteville. He asked how the land use plan was proceeding and how the strip commercial zoning versus cluster commercial zoning fit into this plan. Alett Little responded she shares Director Coody's concern with the appearance developing on West 6th Street, and this will be addressed in the land use plan. This particular area was shown on the 1970 land use plan to be developed as multi -family residential; however, it was not developed that way, and she believes it would be a disservice to construct apartments in this area since this area has been developed as concentrated commercial. Upon roll call, the motion passed by a vote of 6 to 0. ORDINANCE 3629 APPEARS ON PAGE 173 OF ORDINANCE BOOK X x vl REZONE R92-25 Mayor Vorsanger introduced an ordinance rezoning 51.34 acres located on the east side of Gregg Avenue and north of Township from A-1, Agricultural, to R-2, Medium Density Residential, as requested by Dr. Mae Nettleship and represented by Dave Jorgensen. The Planning Commission voted 7-0-0 to recommend rezoning. The ordinance was read for the first time. Green, seconded by Blackston, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed August 4, 1992 by a vote of 5 to 0 to 1, with Director Henry absent at roll call. The ordinance was read for the second time. Green, seconded by Blackston, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Director Blackston commented this rezoning request brings into focus the continual problem that many of the streets in Fayetteville do not actually support the amount of development being planned for them. As these areas develops, it will create pressure on some of these areas for street development. With regard to the subject property, the area in front of Meeks all the way to the bypass is pitifully inadequate. However, Blackston questioned where in Fayetteville there was an area that could be developed and not present the same problem. Upon roll call, the motion passed by a vote of 6 to 0. ORDINANCE 3630 APPEARS ON PAGE /7( OF ORDINANCE BOOR /X Vi REZONE R92-26 Mayor Vorsanger introduced an ordinance rezoning 8.21 acres located on the east side of Gregg Avenue and north of Township from A-1, Agricultural, and R -O, Residential -Office, to C-1, Neighborhood Commercial, as requested by Jim 'Lindsey on behalf of Dr. Mae Nettleship and represented by Dave Jorgensen. The Planning Commission voted 7-0-0 to recommend rezoning. 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 6 to 0. The ordinance was read for the second time. Blackston, seconded by Henry, 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 motion passed by a vote of 6 to 0. . i ORDINANCE 3631 APPEARS ON PAGE pat OF ORDINANCE BOOK )(XVI' REZONE R92-27 Mayor Vorsanger introduced an, ordinance rezoning 19.65 acres located east of Gregg Avenueand, north of Township from A-1, Agricultural, to R -O, Residential -Office, as requested by Jim Lindsey on behalf of Dr. Mae Nettleship and represented by Dave Jorgensen. August 4, 1992 The Planning Commission voted 7-0-0 to recommend rezoning. 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 6 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 was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Upon roll call, the motion passed by a vote of 6 to 0. ORDINANCE 3632 APPEARS ON PAGE /80 OF ORDINANCE BOOK X n CONDEMNATION I Mayor Vorsanger introduced an ordinance authorising condemnation proceedings on Tracts 75, 76, and 77 involved in the Federal Airport Land Acquisition Project which are owned by Mr & Mrs. Melvin Francis. Based on the appraisal, an offer of $137,500 was made for the approximately 2.15 acres which contains 4 older block and frame structures, two storage buildings, and 15 on-site mobile homes. Mr. & Mrs. Francis made a counter offer of $250,000. Condemnation proceedings are recommended to avoid delays in the project. (A copy of the appraisal is available for inspection in the City Clerk's Office.) The ordinance was read for the first time. Green, seconded by Blackston, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 6 to 0. The ordinance was read for the second time. Green, seconded by Blackston, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Mrs. Francis, property owner, addressed the Board stating they acquired this property in 1983, and have since been making payments and maintaining the property. Then all at once, the City begins advertising the Federal Airport Land Acquisition Project on television, their renters began moving out, and they started to lose money. This all occurred before the City had the courtesy to contact the Francis' about their land acquisition plans for their property in October. Even though they live in Oklahoma, the City could have located their address at the courthouse because they are the owners of record and pay taxes on the property. Mrs. Francis further stated they have continued to lose money on this rental property since they obviously cannot offer rentals under these conditions. 1 August 4, 1992 Mrs. Francis further expressed her displeasure that the City, when they did finally contact the Francis', offered them only $137,000 for 300 feet of frontage property on Hwy. 71, with 26 rental units, consisting of 15 mobile homes, 6 apartments, 2 houses, and 1 duplex. Before this fiasco hit them, the Francis' were bringing in over $2,000 weekly on these rental properties. She further reported they still owe $180,000 on the property, after making payments for 8 years. She expressed her confusion with a law that allows the City to condemn property for this kind of a price, stating it simply is not right. When people put their entire life's savings into property and the City can turn around and take in this manner, forcing the property owners into bankruptcy, then something is wrong with the laws. Mrs. Francis further stated her confusion that the City is offering their neighbor, Allen Hatch, $72,000 for less than 2 acres; while they offered her only $55,000 for over two acres of her property, and she has more highway frontage property than Mr. Hatch. In closing, Mrs. Francis stated she is not arguing with the need for acquisition of her property; however, she does disagree with the offer they received, and requested the City give them a fair price for their property, at least in excess of the existing debt on the property of $180,000. W.D. Schock responded the land acquisition team has attempted to work with Mr. and Mrs. Francis; however, the Francis' opinion of the value of their property differs from that of a professional appraiser. He stated this land acquisition has been treated like the rest; the same appraiser who appraised Mr. Hatch's property next door, appraised the Francis' property which was sent to the review appraiser, Keith Schultz, as per the federal -law which they are required to follow with all acquisitions. Since they can no longer negotiate the acquisition of the parcel, it is being recommended for condemnation. Director Coody questioned Mr. Schock's attempts at communication with the Francis' regarding the land acquisition. He responded they have attempted notification of these property owners by registered letters on several occasions, which were refused by the Francis' and returned. In addition, attempts at communication have been made via. the phone, only to be hung-up on. Mr. Schock further reported attempts to have the Francis' attend their meetings, which has been difficult, if not impossible. He therefore stated his belief that they have made extra efforts to work with these property owners, to no avail. .* Mrs. Francis strongly disagreed with Mr. Schock,.. stating she has never hung-up on him; to which he responded their files do reflect this fact. • Mayor Vorsanger stated the Board is not a court of law and they cannot settle this matter, which is the purpose of the condemnation • August 4, 1992 proceeding where a judge will decide what the settlement price will be, and that is what all concerned will have to live by. In response to Mayor Vorsanger's question, Mr. Schock responded there have been meetings held with the home owners of this area, in late September 1991 at the Greenland School, at which Mr Hatch and the Francis' were present, as well as all other home owners subject to land acquisition. The homeowners were advised of plans for the entire acquisition program at that time. Individual meetings were subsequently held with the property owners, prior to the appraisals, for which all federal rules were followed. Director Coody reiterated he hates condemnation proceedings. Mr. Schock concurred with Coody, stating he would rather negotiate than condemn. He further reported meeting with Mrs. Francis that afternoon in an attempt to settle, which he was willing to execute prior to the Board meeting and presentation of the condemnation. The Francis' remain firm in their beliefs, and he has done all that he can do at this particular point in time. Mr. Schock suggested it was time to turn the matter over to the attorneys to settle in Court, as they do need to complete the transaction for acquisition of this property and work with the remaining tenants, who are contacting the City of Fayetteville requesting repairs to their trailers and other requests. The City does not yet own the property and are not responsible for the tenants at this point in time; however, the City will own the property and be responsible for the tenants in the near future. In response to Director Coody's question, Mr. Schock responded the debt owed against a piece of property is not taken into consideration when making an appraisal. An appraisal must be based on the fair market value of the property, which is the opinion of the appraiser. He added all three approaches to the commercial properties were used: the income approach, comparison approach, and replacement of value minus depreciation approach. In addition, these appraisals are required to be certified by a second opinion before an offer can be made. In response to Mayor Vorsanger's question, Mr. Schock reported the Francis' did not submit an appraisal of their own, but rather their opinion of the value. Mrs. Francis stated she was appraisal done. Mr. Schock committee's option to obtain will be obtained during the advised that they could have a second responded it is the land acquisition a second appraisal, and he suspects it court proceedings. Mrs. Francis reiterated her concern and confusion that property, containing over two acres, located adjacent to property of Allen Hatch, containing less than two acres, was appraised at the same value. her the not August 4, 1992 Mayor Vorsanger suggested both parties explain their positions to the judge and let him decide what is fair. Mr. Schock stated he understands the Francis' distress regarding this matter and believes the only reasonable method for settlement is possibly with the parties' attorneys attempting to settle out- of-court. The acquisition committee would certainly be amiable to an out-of-court settlement; however, it is vital they proceed with this condemnation as there are tenants on the property to be considered. Under federal law, the property tenants are entitled to relocation benefits; however, Mr. Schock stated until the property is acquired, they are restricted from talking to the tenants. In addition, they have a situation in which some of the trailers are indecent, unsafe and unsanitary living facilities. When the City does take possession of the property, many of these tenants will have to be moved to motels. Director Nash asked if a Court of law wouldbe deciding a value of this property, or simply upholding the City's condemnation proceeding. City Attorney Rose responded .the only way to challenge a condemnation itself generally is to challenge the public purpose of the condemnation; and there is not much doubt in anyone's mind that there is a valid purpose for the,condemnation. Most condemnations, and most likely this condemnation proceeding, will address how much to pay these folks for their land. Director Green stated land values and compensation•is,certainly out of the realm of this Board. Director Blackston explained to delay the condemnation would be compounding the problem which has to be handled eventually; the City would be doing them no favors in delaying the condemnation, which puts the proceedings in.a good settlement position. Mrs. Francis questioned who was responsible•for the payments on the property. Due to those tenants who have abandoned their rental properties, she will be unable to make her payments. Mrs. Francis stated her opinion that this type' of action is nothing more than dictatorship.• • ; at Director Nash inquired as to the time table involved with the condemnation proceedings. City Attorney Rose responded they will more than likely file the condemnation suit within the next two weeks, at which time the appraised value of the property is deposited with the Court, and thereafter, the Court generally will allow immediate possession of the land. Oncethe money is deposited with the Court, the Francis' are entitled to withdraw it at any time. Rose further explained the Francis' attorney answers the City's complaint, and the matter then proceeds to trial, which in his best estimate would be anywhere from nine to twelve months. August 4, 1992 Mayor Vorsanger reiterated these are discussions that must be held with the Judge in this case, and the Board will simply be helping all concerned by moving this condemnation proceeding along, so that a settlement can be reached. Upon roll call, the motion passed by a vote of 6 to 0. ORDINANCE 3633 APPEARB ON PAGE /SP; OF ORDINANCE BOOK Coody, seconded by Nash, made a motion to approve the Emergency Clause. Upon roll call, the motion passed by a vote of 6 to 0. CONDEMNATION II Mayor Vorsanger introduced an ordinance authorising condemnation proceedings on Tract 71 involved in the Federal Airport Land Acquisition Project which is owned by National oil Supply, Inc. Based on the appraisal, an offer of $39,000 was made for the approximately .88 acre and the concrete block warehouse. National Oil made a counter offer of $77,140. Condemnation proceedings are recommended to avoid delays in the project. (A copy of the appraisal is available for inspection in the City Clerk's Office.) The ordinance was read for the first time. Blackston, 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. Blackston, seconded by Henry, 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. W.D. Schock reported he has spoken with the Director of Properties for National Oil Supply, a firm based in Joplin, Missouri, and was advised that this is investment property. The firm has their own in-house counsel and made a counter offer which the review appraiser feels is considerably higher than the value of the property. National Oil Supply does not occupy the subject property. It has been rented to a local trucking firm for the past 4-5 months. The tenants of the property are well aware of the condemnation proceeding. Schock further reported National Oil Supply has amicably conveyed their support for proceeding with the condemnation. Upon roll call, the motion passed by a vote of 6 to 0. ORDINANCE 3634 APPEARS ON PAGE /9/ OF ORDINANCE BOOK 0\11 vi Green, seconded by Blackston, made a motion to approve the Emergency Clause. Upon roll call, the motion passed by a vote of 6 to 0. i August 4, 1992 CONDEMNATION III Mayor Vorsanger introduced an ordinance authorizing condemnation proceedings on Tracts 3 and 14E owned by Jack Burge Construction Co., Inc., Glacier Park Co., Inc., and Burlington Northern Railroad to obtain street, sidewalk, drainage, and utility easements for the improvements to North Street project. Rather than a question of value, problems with ownership, special conditions requested by the property owners, and coordination of activities have caused excessive delays. Possession of the property is necessary to avoid further delays in the project. The ordinance was read for the first time. Coody, seconded by Blackston, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 6 to 0. The ordinance was read for the second time. Coody, seconded by Blackston, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Mayor Vorsanger explained this condemnation proceeding is a result of the need to straighten out some ownership disputes. He further reported there are federal funds tied up on this North Street project, and if the City does not proceed quickly on the condemnation proceedings, they will lose the federal funds. Upon roll call, the motion passed by a vote of 6 to 0. ORDINANCE 3635 APPEARS ON PAGE /F' OF ORDINANCE BOOK )(XV/1 Blackston, seconded by Coody, made a motion to approve the Emergency Clause. Upon roll call, the motion passed by a vote of 6 to 0. CONDEMNATION IV 4 Mayor Vorsanger introduced an ordinance authorizing condemnation proceedings on Tracts 12, 12E1, and 12E2 owned by David S. Randle and Jeane W. Randle, Glacier Park Co., Inc., and Burlington Northern Railroad to obtain street, sidewalk, drainage, and utility easements for the improvements to North Street project. Rather than a question of value, problems with ownership, special conditions requested by the property owners, and •coordination of activities have caused excessive delays. Possession of the property is necessary to avoid further delays in the project. August 4, 1992 The ordinance was read for the first time. Green, seconded by Blackston, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 6 to 0. The ordinance was read for the second time. Coody, seconded by Blackston, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Mayor Vorsanger stated this condemnation proceeding is also necessary in order to obtain federal funds for the North Street project. Upon roll ORDINANCE call, the motion passed by a vote of 6 to 0. 3636 APPEARS ON PAGE MI OF ORDINANCE BOOR X Y J 1 i Blackston, seconded by Coody, made a motion to approve the Emergency Clause. Upon roll call, the motion passed by a vote of 6 to 0. OTHER BUSINESS COMMITTEE APPOINTMENTS In the absence of Director Shell Spivey, Director Green gave the report from the Nominating Committee. He reported there are two positions open on the Cable Board, with terms ending on July 31, 1994. These positions were formerly held by Earl Buddy Chaddick and Hoyt H. Purvis. Director Green reported the Nominating Committee has nominated Earl Buddy Chaddick and Hoyt H. Purvis to serve second terms. Green, seconded by Blackston, made a motion to approve the nominations. Upon roll call, the nominations were approved 6 to 0. Director Green reported there are also two openings on the Electrical Advisory Board, but no applications were received. PEARSON LETTER OF ACCEPTANCE Mayor Vorsanger announced he had previously requested an addition to the Agenda, that of a Letter of Settlement received in the matter of a Board of Adjustment decision made on July 20, 1992. Mayor Vorsanger read a letter from Attorney Tom Pearson, owner of the properties in dispute. Pearson's letter set out the events of this situation, beginning on July 20th when he requested that the Fayetteville Board of Adjustments grant three variances which were a..1 t, August 4, 1992 necessary for a new buyer to renovate and expand three of his buildings on Dickson Street which properties lie due north of the Walton Arts Center and are situated on the northeast corner of Dickson and West Streets. Two of the three variance requests were denied as a result of a tie vote (3 to 3) by the Board of Adjustment. These variances, demanded by the new buyer of the property, are essential if the. property is to be sold and renovated. The letter continued that on July 29, 1992, Mr. Pearson filed an appeal in the Washington County Circuit Court, appealing the Board of Adjustment decision. In an effort to expeditiously resolve this matter, by way of his letter of settlement, Mr. Pearson offered the sum of $200 in settlement. He expressed his concern that it is unfortunate they must rely on this procedure in order to redevelop and renovate Dickson Street. He further expressed his hope that in time the procedures necessary for the rehabilitation and renovation of Dickson Street may be streamlined. Director of Planning Alett Little explained with respect to the actions taken by the Board of Adjustment, the petitioner had requested five foot variances to the front of the building, or that portion of the building which faces south on Dickson Street. The property is situated approximately six feet back from its property line. The petitioner wished to add a balcony on the front which would extend over the property line and into,thesrea required for the set -back; therefore, a variance was requested. . In addition, the petitioner requested to extend an additional two feet into the City right-of-way to place the poles which would support the balcony.. The reason for the additional two foot extension is that the six foot wide sidewalk in that area is hollow with a 6x6 foot culvert underneath, requiring the placement of poles down through this sidewalk in order to .support the balcony. Because of the denial of the variance request and in order for the balcony to be extended over the five foot area required for the set -back, the City Board would have to agree to a settlement, which has been offered by the petitioner as well as agreeing to the use of two feet of the City right-of-way. • - Director Coody stated the City does not know exactly what plan they will approve for Dickson Street,how this area will be developed, whether there will be planters, or what the parking arrangement will be. • Alett Little concurred stating the Planning Department is currently working very closely with the Dickson Street Improvement District to put the City's plan for improvements to Dickson Street into perspective with the Dickson Street Improvement District's plan to place planters and make the street more pedestrian oriented. Therefore, Director Coody asked if the Board approves the construction of this balcony, and they later find out that it is August 4, 1992 not compatible with the plan for Dickson Street improvements, do they have a choice of either rebuilding the balcony, at the City's cost, or do they change the plan for Dickson Street to accommodate the improvements made by the new property owner? Alett Little responded Director Coody had accurately outlined the City's two options, and she believes the more realistic option at that point, if this Board votes to allow the 2 foot extension into the right-of-way area, would be to conform the plan for Dickson Street to the balcony. In addition, Ms. Little stated if these three buildings in the 400 block of Dickson Street are allowed to extend two feet into the right-of-way, it would appear logical that the other 11 to 15 buildings would also be afforded that same option. Director Coody stated once the City allowed Mr. Shewmaker's building a right-of-way, they were obliged for the remaining buildings on Dickson Street to follow suit. Alett Little responded in the case of the Shewmaker building, the balcony extended tQ the right-of-way line, not into the right-of- way. Director Coody stated as it currently stands, there will be diagonal parking in the near future. If they allow the diagonal parking to remain and the support poles are installed for the balcony, it is likely, unlike Mr. Shewmaker's building where there is parallel parking, that someone could back into or drive directly into one of these poles possibly causing severe problems or injury. Alett Little responded on the western edge of the property, the two foot extension would place the support pole into the area which is currently occupied by landscaping, and not directly in line with the parking places. Ms. Little stated she is not exactly sure where the support pole would fall on the eastern edge. Director Henry asked Ms. Little if she anticipates maintaining the diagonal parking for this area in the long range plans. Ms. Little responded there is currently diagonal parking; however, the long range plans call for this situation to change. In addition, Director Henry stated it was her understanding that the long range plans for Dickson Street include widening the sidewalks as opposed to widening the street. Alett Little responded the Dickson Street Improvement District has not addressed the issue of sidewalks in their long range plan. The City code states that sidewalks are the responsibility of the property owner; therefore, she doesn't see widening of sidewalks occurring as a result of any action of the Dickson Street Improvement District. August 4, 1992 Director Coody stated the City has pumped millions of dollars into Dickson Street for years now, and he questioned whether there was a projection or idea of when a consensus plan might be reached. So far, the Board's actions have been "hop -scotch" down the street with every new situation without a cohesive plan. Alett Little stated all of the items being addressed by the various plans in the development scheme, no one will take responsibility for design guidelines of buildings. She stated her belief that this matter should be addressed by at least one of the entities involved. Ms. Little further reported the Planning Department is currently working on a consensus plan and will be meeting with the Dickson Street Improvement District this month. There has been quite a bit of discussion about requirements to handle the current traffic volumes on Dickson Street which is currently 33 feet wide. The City Engineering Staff feels there are portions of Dickson Street which should be widened to 36 feet which would eliminate existing parking. This option is acceptable at some areas but not at others because of eliminating parking immediately in front of stores which don't have parking to the side or rear. Another major item which is under discussion is the placement of planters within the turning lanes which could block the line of sight. With respect to the parking situation, Director Coody stated it is his understanding that there were discussions during the planning stages to make Dickson Street.. a four -lane thoroughfare. He believes this simply is not a serious, viable alternative. Alett Little responded they have rather at most, three lanes, with cases. • not considered four -lanes, but one being a turning lane in most • Mayor Vorsanger reported his understanding that the intent for Dickson Street was to be pedestrian oriented, and he believes this is a good plan. As stated before Dickson Street is improving faster than anyone ever dreamed it would, and he believes it is improving in the right direction. With respect to the Pearson property, Vorsanger stated this is a case where a landowner has the possibility of selling three of his buildings. Other buildings along this way are improving, and the City is not aware of any of those plans for building front design. Vorsanger further reported two new businesses opening, Anna's Coffee Shop, with a nice garden in the rear, and Roger's Rec, who remodelled the rear of the building. Vorsanger stated his point is that the City was unaware of any of these improvement plans. He suggested the City needed to obtain, as soon as possible, a development plan for Dickson Street. It is up to the Dickson Street Improvement District to obtain this development plan since it involves them more than anyone else. The response received from the Improvement District whenever asked about a development plan is August 4, 1992 that they are waiting on private investment in this area for a final plan. Vorsanger stated the City has contributed about all they plan to contribute in this area. Referring to the Pearson property, Vorsanger further stated they have a chance for private money to be invested on Dickson Street, and an opportunity to move ahead on something that will improve the area. The vote of the Board of Adjustments being 3 to 3 indicates that they simply put the ball in the Board of Director's court, and he is ready to vote to accept Mr. Pearson's settlement offer of $200. Vorsanger stated his belief that the new owner will not do anything in the next 30 to 60 days that would not be compatible with the overall plan for Dickson Street, whatever that may be. He believes it is unfair to ask these folks to wait on the Board and the Improvement District to present a final development plan. He further suggested the City and Improvement District should ensure that all properties along Dickson Street which are being improved be tied in and compatible to the overall plan. Director Coody asked if the Board was addressing all three variances with one vote. Alett Little responded one of the requested variances was approved, so there were only two that were appealed, one to the front and one to the side of the building. Director Coody stated they are developing problems through lack of planning, and one problem he sees is if they continue to waive the parking requirements, 100 to 120 parking places being waived to date, they will experience a net loss of parking on Dickson Street. This same thing happened on the Square with employees parking in all the public parking. Customers wishing to shop on Dickson Street will be unable to find parking. Coody reported receiving three complaints from people required to park near the Square to attend a performance at the Walton Arts Center. If the City does not address this potential problem, it will come back to haunt them in the very near future. Alett Little responded to Director Coody that the 500 parking spaces developed for the Walton Arts Center are expected to be used primarily at night, and the retail developers along Dickson Street will be using them during their hours of operation. City Attorney Jerry Rose explained this matter would take a resolution to approve the settlement offer, and he read the resolution. Director Coody requested a requirement be added to the settlement offer resolution that the new owner of the building will hold off on construction of the balcony until a plan is completed for development on Dickson Street. August 4, 1992 City Attorney Rose stated this would be in the nature of a counter offer to the Pearson's for settlement which can be added to the resolution by. amendment. Director Coody made a motion for a counter offer as hereinabove stated. Mayor Vorsanger questioned whether this action would cloud the title for the sale of the building. Director Green stated it would be a condition on the sale. City Attorney Rose advised the Board they have a resolution before them in which they need to approve prior to Director Coody's amendment. Nash, seconded by Coody, made a motion to approve the resolution. • City Attorney Rose confirmed with Director Coody the intent of his amendment is to request that Mr. Pearson, as part of the settlement, agree not to build his balcony until a Dickson Street development plan is formulated, at 'which time the balcony could be constructed but only in conformity with the Dickson Street plan. S Director Blackston questionedthe $200 settlement offer and suggested it either be something of value or nothing at all because the sum of $200 is incidental. C Mayor Vorsanger explained Mr. Pearson offered the sum of $200 because that is what was previously made by Mr. Shewmaker. ' 1 Director Henry stated Mr. Pearson has three separate pieces of property while Mr. Shewmaker only had one. • Mayor Vorsanger responded that by settling this matter, the City saves court costs. Director Green commented Mr. Pearson's "token payment" is a result of the City's outdated zoning rules for that particular area and the way it is being developed. He stated his belief that the City should be allowing private property owners to develop their property as they so desire. The City's role comes'in by creating a good atmosphere on Dickson Street, conducive for this kind of development, and to encourage it. The City lacks a good district zoning plan on Dickson Street which would take into account the unusual requests for development. Alett Little stated this matter is the third or fourth item that she has handled for Dickson Street, and she is pleased with the progress being made, in spite of the City. August 4, 1992 Director Blackston stated that if the real intent is for development of Dickson Street, then why charge anything for such development. Director Henry asked if the intent for Pearson's property is to restore the building frontages. Mr. Shewmaker responded their intent was to restore the building faces and remove the existing eyesore that protrudes from the building. He further reported the planned balcony will be placed above the transom windows, placing it more to scale. Director Henry concurred with Mayor Vorsanger that the City has contributed enough public money to the Dickson Street improvements, and it is time for private involvement. However, she is a little uncomfortable discussing this issue with property owners on Dickson Street until she had validated her own positive feelings that in the absence of the missed years of planning, she is ready to do something even if it is not perfect. She believes private citizens are doing their part to improve Dickson Street. upon roll call, the resolution passed by a vote of 6 to 0. RESOLUTION 119-92 718 RECORDED IN THE CITY CLERK'S OFFICE SHEWMAKER EASEMENT Alett Little stated in addition the Board needed to address a vacation of the right-of-way of an alley and a statement by the City that they make no claim to a sewer easement. Mr. Shewmaker stated the original intent was to include all of these issues on the Agenda, but due to the lawsuit, it was delayed. He explained this is a minor issue where the City had a small diagonal cut across the back of the property where a sewer line existed at one time. The new parking lot calls for the relocation of any utilities, be it private or public utilities, and they were relocated into the planters along the parking lot behind the Library Club and Hanna's. The sewer line was abandoned; however, there is concern on the part of the buyer that the land is not abandoned. The other minor issue is a legal description could not be located on this property; therefore, there is no proof the City ever had legal ownership to this easement. Alett Little stated the only item uncovered in their records was on the survey submitted by the petitioner, but the Planning Department has no record of City ownership. The concern is on the part of the buyer that since there was a sewer line in this area, that the City may have a claim at some future time that the City actually owned this land by prescriptive right, in which case a building could not be permitted to be situated over the easement. 1 August 4, 1992 City Attorney Rose explained it would take an ordinance to vacate the easement, if it does exist, in order to resolve this matter. The ordinance was read for the first time. Green, seconded by Blackston, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 6 to 0. The ordinance was read for the second time. Coody, seconded by Blackston, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion was passed by a vote of 6 to 0. The ordinance was read for the third and final time. Upon roll call, the motion passed by a vote of 6 to 0. • ORDINANCE 3639 APPEARS ON PAGE ,2 L 7 OF ORDINANCE BOOK y/(V / d Alett Little questioned exactly what has beenaccomplished with regard to the Petitioner's request for permission to install a balcony with supporting posts which extend two feet into the City's right-of-way. • Director Blackston responded it was his understanding that this request by the petitioner to install a balcony was addressed under the settlement offer. t ': City Attorney Rose re -read and verified•the resolution just passed by the Board included language that as part of the settlement, a five foot variance to the front set -back and a five foot variance to the side set -back were granted. 69 Director Henry asked Alett Little whether there was discussion at the Planning Commission meetingaegarding granting this variance for the two feet into the right-of-way with the understanding that if.the City .required a change, it would need to be. moved at the owners expense. ' Alett Little responded to get thebalconyremoved, it would require a variance from the front set -back, which would get to within one foot of their property line. Therefore, the additional five feet is required for set -back, which puts them 6 feet over, and below that is empty space. The petitioner,is requestingato move two feet beyond that point and install their supporting -poles into the right-of-way, which requires Board permission. Ms. Little suggested an amendment to the previous resolution granting a 5 foot variance and use of 2 feet of the City's right- of-way for the purpose of installing supporting posts for the balcony. Green, seconded by Coody, made a motion to allow the use of a 2 foot right-of-way for the purpose of installing supporting posts for the balcony. August 4, 1992 Upon roll call, the lotion passed by a vote of 6 to 0. RESOLUTION 1197-92 A8 RECORDED Iii THE CITY CLERK'S OFFICE ADVERTISING & PROMOTION COMMISSION As Chairman of the Advertising and Promotion Commission, Director Green reported a letter was received from the City Manager regarding the Fayetteville Air Museum. The City has discovered the Museum has not been charged for fire protection service on their sprinkler system, which fee would be $159.47 per month. The City Manager requested the Advertising & Promotion Commission pick up this particular funding since the Air Museum has already received $50,000 in the 1992 budget. Currently, there exists $1,280 to cover the past due billings and through the end of 1992. Green reported from the Advertising & Promotion meeting last Monday, the A & P Commission voted not to approve this funding out of their budgeted funds but rather to ask the City Board or Staff waive this fee for the Air Museum, especially in light of it being a city -owned building. Director of Public Works Kevin Crosson responded their only objection to Director Green's suggestion to waive the fee for the Air Museum is all of the City owned facilities pay water and sewer fees, and applicable charges, such as the fire protection charge. Any other non-profit and/or other organizations or agencies are also responsible for these fees. Therefore, by waiving this fee to the Air Museum, they would be setting a precedent that might cause problems in the future. City Manager Linebaugh suggested he would recommend that Staff prepare a memo addressing this fire protection fee because there are more implications involved with this issue, such as contracts stating the City will not waive water fees in circumstances such as this. Director Coody asked why the Advertising & Promotion Commission denied the request to pay these fees. Director Green responded the mood of the Commission was that they had already given the Air Museum $50,000 this year, and they should take it out of that; the City should waive the fee; or they should obtain the money from some other source. ADJOURNMENT The meeting adjourned at 11:47 p.m.