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HomeMy WebLinkAbout1993-01-19 MinutesMINUTES OF A MEETING OF THE CITY COUNCIL A meeting of the Fayetteville City Council was held on Tuesday, January 19, 1993, at 6:30 p.m. in the Council Room of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas. PRESENT: Mayor Fred Hanna; Aldermen Fred Vorsanger, .Len Edens, Joan Chapman, Heather Daniel, Stephen Miller, Kit Williams, and Conrad Odom; City Attorney Jerry Rose; City Clerk Sherry Thomas; City Treasurer Glyndon Bunton; Administrative Services Director Ben Mayes; Public Works Director Kevin Crosson; Planning Management Director Alett Little; members of Staff, press, and audience. ABSENT: Alderman Woody Bassett CALL TO ORDER Mayor Hanna called the meeting to order with seven aldermen present. OMI PRESIDENT DAN.EVANS Dan Evans, President of OMI, the company that operates the City's waste water treatment plant, addressed the Council expressing his appreciation for the continued partnership that has existed since 1986 between OMI and the City. He also applauded Fayetteville's commitment to protecting the environment. CONSENT AGENDA Mayor Hanna 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 January 5, 1993 regular City Council meeting; • B. A resolution approving a contingency of $150,000 or 2.8% of the contract amount to the construction contract with Garney Companies for the 36/42" Beaver .water line and authorizing the Mayor to execute.change orders as necessary for this contract within the total contract plus the contingency amount without further Council approval. This contract vas 'awarded without a contingency amount being included. The quantity estimates were made by the design engineer, and actual quantities could vary from the estimate. To provide for these possible variations, the contingency amount is being recommended. Also, in order to avoid any possible delays in the project, Staff is requesting the Mayor be given thee -authority to execute change orders to the contract that might 'be,required due to minor problems and field changes. 4. 'January 19, 1993 RESOLUTION 13-93 AS RECORDED IN THE CITY CLBRKVB OFFICE C. A resolution authorising the destruction of documents that have been microfilmed and retained the length of time required by statute. City documents are microfilmed and stored for a scheduled length of time. There is limited space for storage, so on an annual basis, records are cycled for destruction based on retention schedules and statutes. RESOLUTION 14-93 AS RECORDED IN THE CITY CLERK'S OFFICE D. A resolution approving Change Order 3 in the amount of $5,912.25 to the contract with Crafton, Tull & Associates for Community Development street improvement project for Watson, Thompson, Boles, and Rollston Streets. The original contract did not include water or sewer line replacement. It was decided to "wait and see" if any upgrades or repairs were necessary. The lines were found to be inadequate and requiring replacement. RESOLUTION 15-93 A8 RECORDED IN THE CITY CLERK'S OFFICE Vorsanger, seconded by Edens, made a motion to approve the consent agenda. Upon roll call the motion passed by a vote of 7 to 0. ALLEY VACATION V93-1 Mayor Hanna introduced consideration of an ordinance vacating a north -south alley in the 900 block of East Lighton Trail as requested by Julie Krohn and Bruce Cully. The Planning Commission voted 9-0-0 to recommend the vacation and maintain a 15 foot easement. City Attorney Jerry Rose read the ordinance for the first time. Vorsanger, seconded by Miller, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 7 to 0. The City Attorney read the ordinance for the second time. Miller, seconded by Williams, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion passed by a vote of 7 to 0. City Attorney Rose read the ordinance for the third time. Upon roll call, the ordinance passed by a vote of 7 to 0. ORDINANCE 3672 APPEARS ON PAGE 35-3 OF ORDINANCE BOOK OW ,:January 19, 1993, STREET RENAMING Mayor Hanna introduced consideration of a resolution renaming that portion of Millsap Road west of Highway 71B to Futrall Drive in order for Futrall to be a continuous street. He stated the street will be renamed at the time the final plat for CMN Properties, Phase I, is filed and approved. City Attorney Jerry Rose read the ordinance for the first time. Vorsanger, seconded by Edens, made a motion to suspend the rules and place the ordinance on its second reading. Upon roll call, the motion passed by a vote of 7 to 0. The City Attorney read the ordinance for the second time.. Miller, seconded by Odom, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion passed by a vote of 7 to 0. City Attorney Rose read the ordinance for the third time. Ella Smiley, representing Proctor and Gamble, addressed the Council stating her .company's concern with changing the street name. Proctor'end Gamble operates in 54 countries as well as all over the United States and employs in excess of 88,000 people. Changing their address will be very costly by having to reprint stationery and various• other documents. In addition, by changing their address, they are much more likely to have disruption in delivery service from vendors. Alderman Vorsanger asked if there was any way to do this without causing anyone an inconvenience. Ms. Smiley stated Gregg Street would be an obvious break where the name change could end. Planning Management Director Alett Little stated the City has a good working relationship with. the postal service, and feels Proctor and Gamble will not encounter any difficulties with their mail service. She hopes the same would be true for delivery services. However „she did understand Ms. Smiley's concerns. Ms. Smiley stated if mail was addressed to Proctor and Gamble, they did not usually have.a problem. However, about l0% of their mail comes addressed to individuals who work_for them. This is the mail that will be a problem. getting forwarded. Ms. Little stated one of the main reasons for changing the street name was at the request, of 1.911 so ithat Futrall would be a continuous street. .t,. • Mayor Hanna asked how soon. Futrall and Millsap would be connected. Ms. Little stated they expected to receive the request next month and for the actual extension to be in the next 3 to 4 months. January 19, 1993 Alderman Chapman stated she agrees with the problem Proctor and Gamble is concerned about. Mayor Hanna asked why the road could not be named Millsap rather than Futrall. Little stated Futrall was the state's name for the road. Alderman Vorsanger stated he would like to work out something that would make everyone happy. He suggested getting together with Ms. Smiley and working something out. Vorsanger, seconded by Miller, made a motion to table this item to allow further time for negotiations. Upon roll call, the motion passed by a vote of 7 to 0. SETTLEMENT OFFER Mayor Hanna introduced consideration of a resolution approving a settlement with John Vernon Wilson in the amount of $39,158.44 in a case regarding a sewer easement for property located on the corner of Garland and North, and approval of a budget adjustment. City Attorney Rose stated he recommended the settlement of $39,158.44 plus $410 in court costs to the Council. In 1977 the City condemned the southern corner of Mr. Wilson's property for a permanent easement and deposited $100 in the registry of the trial court. Eleven years later the case went to court, and Mr. Wilson was awarded some $29,000 by the jury as the value of the land. The City appealed. Mr. Wilson appealed as well claiming he wanted pre- judgment interest. The appeals court ruled for Mr. Wilson and awarded him interest. The City paid him $59,618.62, the amount of the award and simple prejudgment interest. Mr. Wilson once again appealed claiming he should receive compound interest. The court awarded him compound interest, and he was paid $69,466.69. This amount included post -judgment interest, but it was simple interest. Mr. Wilson is claiming that the post -judgment interest should also be compound. The difference in the two amounts is somewhere between $2,000 and $4,000. Rose stated he felt it was time to settle this long-running suit and pay the man. Vorsanger, seconded by Daniel, made a motion to accept the settlement offer. Alderman Edens stated he agreed with paying the settlement only because of the advice of the City Attorney. He stated he felt this was a blood-letting of the citizens by Mr. Wilson. Alderman Miller agreed and felt the City was being taken advantage of by paying almost $120,000 for a small parcel of land that the City does not even own. • January 19, 1993..." Alderman Williams stated it took so long to get to court, and he could not understand how the jury ever came up with a value of $29,000.., Alderman Miller stated he hoped this was the last time the City heard from Mr. Wilson. City Attorney Rose stated they would get a satisfaction of judgment signed by Mr. Wilson before releasing the check. Alderman Chapman stated she did not want to support the greed represented by this settlement, but she did concur that it was time to settle this case. Alderman Daniel stated she hoped the City had learned a valuable lesson as a result of this case. City Attorney Rose stated the lesson was well taken, and his office will do everything in their power to never let anything happen. U.pon;roil.call, the motion to settle the case passed by a vote of 7 to 0. RESOLUTION 16-93 AS RECORDED IN THE CITY CLERK'S OFFICE OTHER BUSINESS SALES TAX LAWSUIT City Attorney Jerry Rose ruled against the City on cent sales tax passed in big shock, and the City proceed with funding. stated the Arkansas Supreme Court has the sales tax lawsuit. They ruled the 1 1988 was illegal. He stated this was a would now have to decide which way to Mayor Hanna stated he felt this should be used as an opportunity for the City to move ahead. He asked the City Council and citizens to get behind the City in getting the sales tax question back before the voters. :He stated there had been several errors made with the past election that he hoped would not be repeated. He stated the $33 million bond issue was for capital improvements, and the City would be paying interest on this money several years before it would have been used. He felt this is a chance to rectify that. He suggested the possible removal of the 3.8 mills from the property tax and vote for anew sales tax. He felt with this new sales tax, the City could dedicate 75% of the tax to capital improvements and 25% would be for the General Fund to be utilized at the discretion of}the Council. He feels the capital improvements can be completed in"a, shorter length' of time and at a lower total cost than with the bond issue. • January 19, 1993 Alderman Vorsanger stated he was disappointed in the decision. He has heard from several citizens, and they are upset as well. There is no way for this City to move ahead without sales tax revenue. There can be no parks, streets, or everything that the City has been talking about for the past two years. He feels the citizens will get behind the City and vote for a new sales tax as soon as possible. Alderman Vorsanger stated in reading the opinion, the Supreme Court only ruled on the question of tieing part of the tax to the schools. The opinion also talked about the two elections where voters voted both times to fund the school programs. He supports moving ahead and reinstituting a tax. Mayor Hanna asked the City Attorney to petition the Chancellor to allow the tax to continue to be collected and held in a trust fund until the sales tax can be voted on. Alderman Chapman stated unlike the previous case the Council just voted to settle where errors had been made, no errors were made in this case. The Supreme Court decision was very close, 4 to 3. She felt the only thing to learn from this case is not to tie funding the schools to any sales tax question. She feels it is important to allow sufficient time before the next sales tax election to adequately inform the public about what happened in the old case, what the sales tax is needed for, and to encourage their votes. Alderman Williams agreed and suggested the City move ahead slowly. He is disappointed that the revenue is lost for the City; however, he is more in favor of pay-as-you-go programs. He stated the City has 17 days from the date of the decision to ask for a re -hearing. He stated the Supreme Court may want the City to repay the money, and that would be extremely difficult. He feels that part of the opinion should be clarified because he does not see any way to refund money to the taxpayers. Alderman Vorsanger stated he felt the opinion was clear when the judges stated there was no way to return the money that has already been spent. Alderman Miller stated he agrees with Alderman Williams, and he is in favor of a pay-as-you-go government. He is leery of deficit spending. He hopes the citizens see that the sales tax is the future of Fayetteville. He stated he was not in favor of doing away with the property tax millage the City receives. Alderman Edens stated he was aware that all of this happened before the present Council came along. He asked the City Attorney to look into the possibility of the City recovering costs due to reliance on the various attorney opinions and legal counsel that has been proven to be bad advice. 1 • • • January 19,,:i 93 Alderman Chapman stated she hopes the• City does not get too enthralled in further litigation. ,She does not feel that would be good for the City either. City Attorney Rose stated the opinion calls for this case to be remanded back to the lower court where Judge Hannah will award attorney fees and determine if the City has any funds that should be paid back and if so, how to proceed. There were no federal questions that he could see, so there is no place for an appeal of this decision. The City does have the right within 17 days to request a rehearing before the Arkansas Supreme Court. This type of request is rarely successful, but it will probably be in the City's best interest to pursue that possibility. The Court rules just on the facts and looked at the 1988 ballotand called the sales tax and the school funding "inextricably connected". The opinion stated the primary purpose of the tax was for school funding, and this was an illegal extraction. He feels this opinion does not disturb any other municipality in Arkansas from collecting their sales taxes. The City has always held the citizens knew what they -were voting on in both the 1988 and 1990 election when they voted for funding school expansion. The decision is very disappointing and does not allow the voters wishes for capital improvements to be carried out. Rose stated in effect, the bonds will be in default. City staff and the bond trustee will be working together to determine how to pay off the bonds. He thinks there is enough money available to retire the bonds. No bond holder will be out any money at all. Their investment is completely safe. In addition, the bonds are insured. No one that has invested in the good name of the City of Fayetteville will lose any money. City Attorney Rose stated this will affect other City priorities as well because somethings that were to be funded by the sales tax money are mandatory projects that will have to be funded elsewhere. Alderman Williams asked if the City will be assisting the schools. City Attorney Rose stated the opinion does not address that question. The City.has given the schools some $2.7 million. It will be a political decision to make if the city can afford to aid the schools. He sees'no laws, at this point in time, that would prohibit the City from funding public schools. Alderman Vorsanger suggested citizens•contact their representatives to get them to pass legislation that makes sure municipalities can aid schools. ,� v 1, Rose stated this should:berexplored,;although there are those that think cities should be not involved with school financing. January 19, 1993 NOMINATING COMMITTEE Alderman Edens stated there were two vacancies in the Central Business Improvement District. These vacancies were advertised, and no applications were received. The improvement district is recommending the nomination of Steve Ward and Gary McClendon to fill these vacancies. Edens, seconded by Williams, made a motion to approve these nominations. Upon roll call, the motion passed by a vote of 7 to 0. DICKSON STREET IMPROVEMENTS STATUS REPORT Kirby Estes, architect for the Dickson Street Improvement District (DSID), addressed the Council with his plans for improving the intersection of Dickson and Highway 71. He reported on the history of the project which began in 1989 with the development of parking spaces to blend with the Walton Arts Center. The DSID contracted for plans to be made for improving Dickson Street. The City did so as well. They have now been trying to reach a compromise between the two plans in addition to including changes made as a result of the goals of the project. He brought a model of the intersection and explained to the Council the changes the DSID proposed to make. The Council members expressed their concern that the plans take into consideration the possibility of bus stops and increased bus transportation. They also discussed the crosswalks that Mr. Estes stated would be of granite and bricks rather than of asphalt like the remainder of the street. Estes stated the durability of these crosswalks would have to be watched and taken care of. Alderman Williams asked when the construction would begin. Mr. Estes stated the end of February or first part of March depending upon the weather. The planters on the corners were also discussed. The type and size of vegetation to be utilized will have to conform to the City's vegetation policy. Mr. Estes stated the planters would be assigned to volunteers for a 12 month period, and basically the type of vegetation would be left to their discretion. Alderman Miller asked if the DSID was working with the University of Arkansas as they were with the City to incorporate the U of A's desires and plans for Dickson Street. Mr. Estes stated they had been meeting with Mr. Bomanti regarding traffic on Dickson and the fact that the University does not want Dickson to be the key entrance to the campus. They have also met with SWEPCO and the Arkansas Highway Department regarding these changes. January 19, 1993 4 - Alderman Miller stated he wanted to applaud his efforts in trying to make Dickson Street'more pedestrian oriented. Alderman Williams agreed with this, and stated he hoped Dickson did not become a three lane thoroughfare. Alderman Daniel stated she would like to see more parking off of Dickson similar to that behind Jose's Restaurant. NATIONAL CEMETERY EASEMENT CLOSING Mayor Hanna stated the City Board voted and approved Ordinance 3623 to close a portion of University Avenue as requested by James Clark for the National Cemetery. •A utility easement was retained on this property. At this time, Mr. Clarkis requesting the easement also be abandoned. There are no objections to this abandonment. City Attorney Jerry Rose, read the ordinance for the first time. Vorsanger, seconded by Miller, made a motion to suspend the rules and place the ordinance on its second reading.. Upon roll call, the motion passed by a vote of 7 to 0. The City Attorney read the ordinance for the second time. Williams, seconded by Odom, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion passed by a vote of 7 to 0. City Attorney Rose read the ordinance for the third time. ORDINANCE 3673 APPEARS ON PAGE 3cr OF ORDINANCE BOOK )Q( UI AIRPORT SETTLEMENT City Attorney Rose stated the City had voted to condemn the Airport Trailer Court, the Francis property, in September 1992, in conjunction with the Airport Federal Land Acquisition project. City staff has continued negotiations with the owners of this property to reach a settlement. The City obtained two independent appraisals of the property, and they were both $137,500. This amount was deposited with the court when the condemnation was approved. The property is now in bankruptcy proceedings, but an agreement to settle for $145,300 has been reached. This is $7,800 or 5.4% more than the appraisal. Rose stated he recommended this settlement offer to.the.Council for their approval. Vorsanger, seconded by Odom, made a motion to accept the settlement. Upon roll call, the motion passed by a vote of 7 to 0. RESOLUTION 17-93 AS RECORDED IN THE CITY CLERK'S OFFICE • • • January 19, 1993 "CITY TALE" Mayor Hanna stated he would be taping a television show tomorrow at 3:00 p.m. called "City Talk." Alderman Edens would be joining him on the show. ENVIRONMENTAL CONCERNS COMMITTEE Mayor Hanna stated the Environmental Concerns Committee had called a meeting directly following the conclusion of this Council meeting. Alderman Chapman stated the members of the committee, Conrad Odom, Stephen Miller, Fred Vorsanger, and herself, would be educating themselves on the various technology, etc., dealing with this issue. They would in turn be passing this information along to the other Council members. VANDALISM IN YARDS Alderman Vorsanger stated a small vehicle has been vandalizing the yards in his neighborhood for the past several weeks. The residents of the Mt. Sequoyah area are offering $100 reward for information on the person(s) causing this expensive damage to the yards and sprinkler systems. NATIONAL CEMETERY James Clark thanked the Council for their actions in abandoning the easement for the National Cemetery property. ADJOURNMENT The meeting adjourned at 8:20 pm.