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HomeMy WebLinkAbout1993-07-06 Minutes1 , l MINUTES OF A MEETING OF THE CITY COUNCIL AA.:meeting of the Fayetteville City Council4was held :on Tuesday, July 6, 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 Joe •Box, Heather Daniel, Stephen Miller, Kit Williams, Conrad Odom, Woody Bassett, and Len Edens; City Attorney Jerry Rose; City Clerk :,. Sherry Thomas; City Treasurer 4Glyndon Bunton; Administrative.. Services. Director Ben Mayes; Planning' Management Director Alett Little; Public Works Director Kevin Crosson; members of staff, press, and audience. ABSENT: Alderman Fred Vorsanger CALL TO ORDER Mayor Hanna called the meeting to order with seven aldermen present.. 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 June 15, 1993 regular City Council meeting and the June 29, 1993 special City Council meeting. B. A resolution approving the purchase of MS2A Strong Seal Manhole Sealing Cement from Strong Seal Systems Corporation in the amount of $21,945.00 as part of the Sanitary Sewer Rehabilitation Project for the Illinois River Watershed Basins 10 and 11, the Wilson Park area. Only one quote was received for this manhole lining material, but the quoted price is $4.50 per bag below the standard price of $23.00 because of a price break due the size of the order. RESOLUTION 67-93 AS RECORDED IN THE CITY CLERK'S OFFICE C. A resolution awarding Bid 93-29 to the lowest bidder meeting specifications for a Portable Tandem Roller for $28,226 from Clark Machinery Company, and for a Dual Drum Vibratory Roller for $67,965 lessa trade in allowance of $16,000 for Unit #55 resulting in a net bid of $51,956 from Aces, Inc. These rollers will be used by the City Street Department for in-house street overlay projects. RESOLUTION 68-93 AS RECORDED IN THE CITY CLERK'S OFFICE July 6, 1993 D . A resolution authorizing the Parks & Recreation Department to apply for $50,000 (50/50 matching funds) from the Arkansas Department of Parks and Tourism's Outdoor Recreation Grants Program for the development of the Lake Fayetteville South Park. The Parks Staff and the Parks & Recreation Advisory Board recommend applying for this grant which would be used to build additional trails and a large pavilion. RESOLUTION 69-93 AS RECORDED IN TRE CITY CLERK'S OFFICE E . A resolution endorsing the participation in the Arkansas Enterprise Zone Program for the Mexican Original Plant locations owned by Tyson Foods, Inc., which will allow them to benefit from the refunds/exemptions as provided in the Arkansas Enterprise Zone Program Regulations of 1989. RESOLUTION 70-93 AS RECORDED IN THE CITY CLERK'S OFFICE F. A resolution of intent to initiate the project and approve the execution of an Agreement of Understanding with the Arkansas Highway Transportation Department for the Federal Bridge Replacement Program to replace the one -lane bridge over Mud Creek on North Gregg, and approval of a budget adjustment. This project will be funded by an 80% federal grant and 20% City funds. The estimated cost of the project is $300,000 which will make the City's share $60,000. The project is expected to be completed in two years. There is no budget for this project this year, so there will need to be a budget adjustment to allow the City to pay the 5% deposit required after the project has been officially approved by the state and federal agencies. RESOLUTION 71-93 AS RECORDED IN THE CITY CLERK'S OFFICE G . A resolution approving the receipt of a $500,000 grant from the Arkansas Industrial Development Commission to Superior Industries International of Fayetteville, and approval of a budget adjustment. Superior Industries will be using the grant to assist with their plant expansion. The function of the City of Fayetteville is to act as a conduit for the grant money, so the budget adjustment will set up the revenue and expense accounts for recording the transactions. RESOLUTION 72-93 A8 RECORDED IN THE CITY CLERK'S OFFICE H . A resolution approving a budget adjustment in the amount of $460,000 to the Building Costs Account for the construction July 6, 1993 and equipping of a Maintenance Facility to be located at 1525 S. Happy Hollow Rood. A maintenance facility has been in the capital improvements program budget since 1990 and was to be partially funded by the sales tax. The cost of the facility has been reduced from previous estimates ranging from $1,750,000-$1,900,000 down to $950,000. The cost savings result from using City staff and equipment whenever possible in the construction and equipping process to build the 125' x 200' building. RESOLUTION 73-93 AS RECORDED IN THE CITY CLERK'S OFFICE I. A resolution authorizing the Mayor or his representative to ;.r acquire the necessary permanent and temporary construction easements for the southern segment of the 36" Water Main Transmission and Water Tanks, and approval of a budget adjustment. There are 38 permanent and 32 temporary easements to be acquired to complete this project. The estimated amount of $221,000 will be needed to acquire the easements and for the right-of-way agents' salaries for the next 6 months. RESOLUTION 74-93 AS RECORDED IN THE CITY CLERK'S OFFICE Edens, seconded by Daniel, made a motion to approve the consent agenda. Upon roll call, the motion passed by a vote of 7 to 0. CONDEMNATION Mayor Hanna introduced consideration of an ordinance authorizing condemnation proceedings for a permanent easement across a portion of Tract #327 owned by Campbell Soup Company (Herider Farms) at 420 W. 6th Street and Tract #329 owned by C & G Welding at 653 W. 6th Street which are required for the water and sewer relocations/adjustments for the Highway 180 improvements project. The'appraised value of the two easements is $3,162.50. The City is currently negotiating with the property owners for these easements, but in order to avoid any delays with these projects, condemnation proceedings are recommended. Alderman Daniel asked where the property was located that was owned by Campbell Soup. Mayor Hanna stated it is the feed mill by the railroad track on 6th Street. City Attorney Jerry Rose read the ordinance for the first time. Williams, 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. Odom, seconded by Miller, made a July 6, 1993 motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion passed by a vote of 7 to 0. The City Attorney read the ordinance for the third time. Upon roll call, the ordinance passed by a vote of 7 to 0. Upon roll pall, the vote on the emergency clause passed by a vote of 7 to O. ORDINANCE 3717 APPEARS ON PAGE / OF ORDINANCE BOOK XXVII STREET VACATION Mayor Hanna introduced consideration of an ordinance authorizing the vacation of a portion of Willoughby Road (Ark. Hwy 156) and authorizing the issuance of a Quitclaim Deed in favor of the Marian E. Morgan Trust, title holder on both sides of the property to be vacated. When Highway 156/Willoughby Road/City Lake Road was improved in 1990-91, a portion of the road was redirected, thereby abandoning small areas either for highway use or right of way use. As part of the right of way negotiations, these abandoned areas were to revert to adjoining property owners. City Attorney Jerry Rose read the ordinance for the first time. Miller, seconded by Odom, 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. Odom, seconded by Miller, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion passed by a vote of 7 to 0. The City Attorney read the ordinance for the third time. Upon roll call, the ordinance passed by a vote of 7 to 0. ORDINANCE 3718 APPEARS ON PAGE er OF ORDINANCE BOOK X X JIB HOTEL. MOTEL. & RESTAURANT TAX An ordinance amending Ordinance 2310 to include in the HMR tax levy delis, drive-in restaurants, carryout restaurants, concession stands, convenience stores, grocery store -restaurants, and similar businesses. The Advertising & Promotion Commission passed a resolution at their June 14, 1993 meeting requesting the City Council amend the HMR ordinance to include the facilities that are not currently covered in the ordinance. July 6, 1993 Mayor Hanna stated there is no ordinance ready for this meeting because the City Attorney it not sure how to address the changes requested by A&P. City Attorney Jerry Rose stated he did not have enough information to write an ordinance. He stated he needs to know how the Council wants the tax. In 1965 an act was passed by the Arkansas Legislature, and it has been amended about a dozen times. .Any city of the first class (which includes Fayetteville) may levy a 1% tax for hotel or motels and on gross receipts of restaurants, cafes, etc., or as described in the ordinance for establishments engaged in selling for consumption on premises. City Ordinance 2310 was passed that levied a 1% tax on hotels, motels, and establishments selling food for consumption on premises. Act 626 of 1989 was added by the Arkansas Legislature to the 1965 act. The 1989 act allows any city of the first class to levy by ordinance a tax not to exceed 3% on gross receipts of restaurants, cafes, drive ins, carryout food, concessions, convenience stores, grocery stores/restaurants, etc., who sell prepared food and beverages for on and off premises consumption. Rosestated he believes the resolution by the Advertising & Promotion Commission wants only a 1% tax, but they want to broaden it to include the establishments in the new act. He stated he needs help in the definitions of concession stands, grocery store/deli's, etc. Alderman Miller stated IGA has a the extra tax on only that item confusing for retailers. • salad bar, if a person has to pay in the store, it could be really ir Alderman Williams asked if the tax goes to pay off the Continuing Education Center. <. City Attorney Rose stated all the money goes to pay off the CEC, and the excess- funds come back to the City to be used for advertising and promotion purposes. Alderman Williams asked what percent goes to the CEC and what percent comes back to the City. Ben Mayes stated most of the money now comes back to the City for use by the Advertising and Promotion Commission. In.1992 100% of the money was for A&P. The percentage and amount varies according to thestate convention turnback funds each year. Alderman Williams asked if this money was used for the promotion of Fayetteville, tourism, etc. Mayes stated the way he understands the statute, the money could be used for any tourism purpose such as City parks. July 6, 1993 City Attorney Rose stated the A&P Commission only uses the money for advertising, promotion, and tourism purposes. 100% of the HMR tax is pledged for the repayment of the CEC bonds. There are four sources to pay off these bonds: (1) the University of Arkansas pays rent for use of the building, (2) turnback revenues from the state, (3) parking deck revenue, and (4) Advertising & Promotion funds. The bond indenture states any money that is left over after payment of the bonds goes back to the City to be used for any lawful purpose for which the City wants to spend the money. The City has appropriated the money to the A&P Commission. Alderman Williams asked if the City has to give the money to the A&P Commission. Rose stated there is one school of thought that the A&P money loses its identity and comes back to become general fund money. Conversely, some believe it is always A&P money, and the City does not have much discretion for use of the money. Rose stated he would like to avoid this problem and use the money for tourism purposes. However, he would be glad to request an attorney general opinion on this question. Alderman Williams stated if there is more money than can be spent, the City may need to look into decreasing the tax rather than increasing it. Rose stated he did not think the City would be able to tinker with the tax amount since this was all set up in the CEC bond indenture. Alderman Miller stated he would like to see the city be creative and use the money for all aspects of tourism, including beautify the entrances into the City, tree planting, etc., that would make Fayetteville more attractive to tourists. He is not is favor of doing away with the tax. Alderman Bassett asked who about spending this money. Rose stated the Advertising spend this HMR money. is in charge of making the decisions & Promotion Commission decides how to Alderman Edens asked how much longer it will be before the CEC bonds are paid off. Mayes stated the last payment to be made on them is in 2004. Alderman Miller asked if there were any way to accelerate the payments. Mayor Hanna stated after the bonds are paid off, the City will no longer receive turnback funds, so accelerating the payoff is probably not a very good idea. 1 O J July 6, 1993 k { Marilyn Johnson of the Chamber of:Commerce stated'the bonds•-can.be accelerated, but only to the year 2003. She stated the City receives about $340,000 per year in turnback funds. There is a cap on the amount of turnback based on 80% of the bond indebtedness.a ' r... i Alderman Miller asked where would the line be drawn about deli's, etc. Ms. Johnson stated she has talked with A&P commissions in other towns, and the rule they use is if the food is altered in any way prior to sale, it would be included in the tax. This would need to be addressed in the ordinance. Fayetteville currently has about 125 restaurants paying the tax and about a dozen who do not. Some do have off premises consumption which also needs to be clarified in.the ordinance. Alderman Edens asked if the A&P Commission's motive for changing the tax is to increase revenues or to equalize the tax. Ms..Johnson stated they want to equalize the tax.. If they wanted more money, they would request the tax be increased to 3% Alderman Edens stated he understood they could not spend all of the money that is now being raised.. Ms. Johnson stated the total revenues collected are about $649.,999, but the A&P budget is $710,000. • Alderman Bassett stated he is a member of the A&P Commission, and -thischange in the HMR tax is being requested only for the fairness issue. Alderman Williams stated he feels concession stands should not•be taxed because most of the time they are -non-profit, or run by volunteers and/or students. Mayor Hanna stated this is thetype of clarification that is needed in order to write an amendment to the original ordinance. He agreed that concession stands should not be taxed., 44 Alderman Bassett asked if the ordinance amendment would be coming back to the A&P Commission at their next meeting. ,r.. Ms. Johnson stated it could. Alderman Williams stated he felt it should and for the A&P Committee to make recommendations to the Council. Mayor Hanna stated the. City may be able to interpret the ordinance in such a manner than the Northwest Arkansas Mall.Food Court would be included in the HMR tax. without having to change -.the current ordinance. July 6, 1993 City Attorney Rose stated this may be done either through interpretation or by definition. He would prefer to do it this way. He stated if the tax is changed by an amending ordinance, it may not be able to be collected according to the CEC bond trust indenture. Alderman Daniel asked if the restaurants and booths set up on the Square during Autumnfest and Springfest would be included in the tax collection. Alderman Bassett stated he felt these booths should be eliminated at these functions anyway. CONTRACT CHANGE ORDERS Mayor Hanna introduced consideration of an ordinance authorizing the Mayor to approve contract change orders up to the contingency amount approved by the City Council. Allowing the Mayor to approve change orders in excess of $20,000 will provide for more efficient administration of city government. Alderman Miller stated this is not carte blanche spending authority for the Mayor, rather the Council will have already approved a contract with a contingency amount. This will allow the Mayor to spend only that contingency amount. City Attorney Jerry Rose read the ordinance for the first time. Miller, seconded by Odom, 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. Odom, seconded by Miller, made a motion to further suspend the rules and place the ordinance on its third and final reading. Upon roll call, the motion passed by a vote of 7 to 0. The City Attorney read the ordinance for the third time. Upon roll call, the ordinance passed by a vote of 7 to 0. Upon roll call, the vote on the emergency clause passed by a vote of 7 to 0. ORDINANCE 3719 APPEARS ON PAGE 7 OF ORDINANCE BOOK X XVII JUVENILE CONCERNS COMMITTEE Mayor Hanna introduced a report from Alderman Woody Bassett on the Juvenile Concerns Committee. Alderman Bassett stated this committee has met for several months and received a lot of public comment. He thanked the members of the committee, the public, and the youth who came before this committee. July 6; 1993 ctri Alderman Bassett .stated it was the collective,judgment of this committee that the role of the committee was to provide a public forum for people to be able to express their opinions. They gathered facts and tried to separate fact from fiction and come up with recommendations to the Council. This committee has raised the community's awareness about juvenile problems, and he believes this alone will help with the problems. He also stated the Committee recognized that most of the kids in this town are good citizens and do not go around causing problems. Government does not raise kids, parents do, and parents can't expect government to raise kids. There are several reasons juvenile crime statistics are increasing in Fayetteville. The population is growing; there are problems with repeat offenders; and Fayetteville is agathering point for many area youth who come here because there is something to do. These factors tend to skew the statistics. The state legislature is the body to determine whether or not to have jail time for juvenile offenders. • Alderman Bassett stated there is a problem with alcohol abuse in this_town. He heard this from a lot of the kids who met with the committee. This community needs to try and eliminate adults serving or selling alcohol to minors. This is a college town, and that is why a lot of kids come here. He met with Casey Jones, the City's prosecuting attorney. Mr. Jones has met with prosecutors from several other cities to discuss the ways to stop the sale to minors. Kids have stated they like the teen nights at the area clubs and do not want those stopped. Alderman Bassett stated the committee did not find any evidence that weapons were a problem with the area youth. On a very limited basis, .some kids are carrying weapons. This is just something that needs to be watched. - He stated the committee did not find any evidence of gang problems in Fayetteville. There are somekids who run together and call themselves a gang, but there is not violence associated with them at this time. The committee did come up with 6 recommendations to make to the City Council. 1) The -City -should authorize the hiring of one .additional juvenile officer which would cost about $31,000 per year. 2) The City should express to the public its concern over.teenage drinking and urge law enforcement, local prosecutors, liquor stores, club owners, .and citizens to help eliminate this problem. - There -has already been some work in this area, and the laws need to be enforcedand prosecuted to the fullest.. 187 July 6, 1993 3) The City should explore ways to work with the Washington County Juvenile Court to offer public service for repeat offenders. 4) The City Council should request the Parks Board to consider the feasibility of keeping the Youth Center open at night in order to provide a place for teens to gather. No place to go is one of the main complaints the committee heard from the kids. 5) The City might consider the possibility of creating a "shadow" teenage government to make non-binding recommendations to the City on issues affecting youth. The committee feels this is premature at this time for Fayetteville, but in the fall when school starts up, the committee would like city officials to work with the students to learn about their problems and concerns. 6) The Committee does not recommend passage of a curfew at the present time. Alderman Bassett stated he was the one who started the curfew suggestion. The majority of the people he heard from are against a curfew, so it probably would not work. The kids who are getting in trouble now would continue to do so. Alderman Edens, a member of this committee, stated he would second most of what Alderman Bassett had said. Alderman Edens stated he was in favor of a curfew to begin with. The kids came up with good ideas. He agreed the major problems are the repeat offenders and alcohol. Fayetteville is the only city in Arkansas where a minor can be fined up to $500 for attempting to buy alcohol. Arrests have been made recently under this law. He hopes this continues and will stop the sale of alcohol to minors. Alderman Edens stated he would like for the City to provide facilities for entertainment where the kids could dance, eat hamburgers, etc. He learned a lot about kids on this committee. The kids in Fayetteville are really good kids, and only a small group of people are repeat offenders and will give them a bad name. Alderman Daniel, a member of the committee, stated Alderman Bassett had done an excellent job with this committee. She stated she was impressed with the young people who came and spoke. She feels a curfew would not be an effective measure to the problems facing the area youth. She agreed that the community needs more for young people to do. Alderman Miller, a member of the committee, stated he was against a curfew from the very start. He stated providing opportunities for youth is the best this city can do. He thanked the other committee members and all the people who came and spoke as well as to the 35-40 kids who came and participated in democracy. July 6, 1993 Mayor.Hanna stated this was a very complete report, and he knows this required a lot of time by the four aldermen on this committee. This committee generated interest in the community, and he thanked all who participated. Alderman Bassett stated the committee would meet again in the fall and follow up on the recommendations that have been made. OTHER BUSINESS • NOMINATING COMMITTEE REPORT Alderman Edens stated the nominating committee interviewed applicants for the Citizens Environmental Concerns Committee and are recommending the following people: • • • Environmental Law: Steven Parker Business & Industry: James Glass Duyen Tran Science: Louise Russert-Kraemer Edward Dale Lynda Hustead Community: Al Vick John King Rodney Williams Cary Arsaga Jeffery Demarest 3 year term 1 year term 3 year term 1 year term 2 year term 3 year term 1 2 2 2 3 year year year year year term term term term . term 1219 Alderman Alderman Edens stated the terms were selected randomly for each of the nominees. - !. Edens, seconded Upon roll call, by Odom, made a motion to approve the appointments. the motion passed by a. vote of 7 to 0. COUNCIL STREET COMMITTEE Alderman Daniel stated the Street Committee held their first meeting, and she was appointed chairman. July 6, 1993 There will be a Town Meeting held on Thursday, July 22, 1993 at 7:00 p.m. in City Hall. The Street Committee would like to hear input from the public at that time about street projects for 1994. Alderman Edens stated the Town Meeting would also be open for general discursion. This meeting will be held in lieu of the ward meetings. They are going to try and have live call in questions for the Town Meeting. The plan is to hold a Town Meeting on the third Thursday of every month at 7:00 p.m. to be broadcast live on the government channel. All ward meetings for the month of July are canceled. STREET PAVING Alderman Edens stated the City crews have just completed 2 miles of paving on Dean Solomon Road. This is the first project for the new paving equipment, and he felt the Street Department has done a very good job. ENVIRONMENTAL CONCERNS COMMITTEE Alderman Miller stated the Environmental Concerns Committee would meet on Monday, July 12, 1993, at 5:30 in Room 111 of City Hall. He stated this would be a brief organizational meeting. ORDINANCE REVIEWAL Mayor Hanna stated he had received some comments on City ordinances. He had asked for volunteers to review the ordinances, and only one alderman has volunteered. He asked the aldermen to continue to consider this matter. VICE MAYOR Mayor Hanna stated he wanted the aldermen to continue to consider the possibility of appointing a vice mayor to handle meetings, etc., when the mayor is out of town. WASHINGTON COUNTY 1% SALES TAX Alderman Williams stated he will bring up at the next Council meeting a resolution to support Washington County for their 1% sales tax for 6 months. This money will be used for such things as to build a juvenile detention center. Mayor Hanna stated county officials were supportive of the City sales tax. ADJOURNMENT The meeting adjourned at 7:47 p.m.