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HomeMy WebLinkAbout1993-10-16 Minutes233 MINUTES OF A MEETING OF THE CITY COUNCIL A meeting of the Fayetteville City Council was held on Tuesday, October 5, 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 Woody Bassett, Fred Vorsanger, Len Edens, Joe Box, 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; Planning Management Director Alett Little; Assistant to the Public Works Director Cheryl Zotti; members of staff, press, and audience. CALL TO ORDER Mayor Hanna called the meeting to order with eight aldermen present. OLD BUSINESS Items that have been brought before the Council but were tabled or no decision made to allow further information to be presented. A. CRYSTAL SPRINGS SUBDIVISION: A public hearing on an appeal of the Planning Commission decision to approve Crystal Springs Subdivision, Phase I. The Planning Commission voted to approve the Crystal Springs Subdivision, Phase I, at their August 23, 1993 meeting. Alderman Joe Box filed an appeal on behalf of the persons desiring to be heard on the question of whether the -Planning Commission's decision was in error. The City Council voted'at their September 21, 1993 meeting to hear this appeal. Jim McCord, attorney representing Tom Muccio and others, who4are concerned about the Crystal Springs Subdivision. They lore% concerned about their quality of life, traffic problems, and property values. They are not seeking to prevent development of the subdivision, but are seeking to make the development comply with the new master plan. The new plan calls for transition zones with minimum lot sizes of 1/2 acre. Crystal Springs lots are planned to be 1/3 acre. He felt it would be bad for the City to approve a subdivision that does not comply with the new zoning ordinance. He referred to case law that supports this theory. Wilson Kimbrough stated his property abuts the original 275 acres of the proposed subdivision and is close to the proposed phase I of the project. He has attended the various meetings held on this matter and read the minutes of numerous hearings. He stated the testimony from many of the citizens over the past 5 months expressed many concerns about the adverse affects of the Crystal Springs Subdivision. He is especially concerned about the 2 October 5, 1993 hazardous traffic on Salem and Mt. Comfort roads and that the proposed land use is not compatible with the new land use plan. He asked the Council to consider these concerns when making their decision. He stated there was a lot of open land around this proposed development, and a decision would have to be made about the use of this land. Jim Kimbrough, 2424 N. Salem Road, stated there are to be 115 lots on 39.9 acres. He stated this density is not in character with the surrounding area and is inconsistent with the new land use plan. He stated the lot sizes should be from .5 to 1.5 acres. The only access to the subdivision will be on County Road 892, Salem Road. He asked that this item be referred back to the Planning Commission for revision to comply with the new land use plan. Jim Silvey stated he lives 1/4 mile from the proposed subdivision, and he is a retired highway engineer. He stated Salem Road has a 20' surface with a 60' right of way, and it is just barely above a dirt road. Heavy construction vehicles like cement trucks will tear the road all to pieces. According to the City's traffic count, there are 578 cars per day on this road. Phase I of the development will increase the total to about 1720 cars per day, and this does not include the proposed new school traffic. He stated this was far too many for this size road. When there are 570 vehicles per day, a Class 3 road requires a 24' paved surface with 20' shoulders on each side. He stated the City requires developers to develop 1/2 of the road, so there will be curb and gutter on only one side of the road for a distance. He stated there will be fatal accidents on this road if this project is approved, and he feels the developer should pay to make the road safe. Michele Harrington, attorney for JED, Inc., stated she wanted the City Council to remember the laws that are in effect today, not proposed changes. She stated property owners' rights need to be considered as well as the neighbors. The developers are relying on current regulations when they purchase and make improvements to property. She stated in a Little Rock case, Richardson v. City of Little Rock, the court stated that a city is bound by the regulations it adopts and shall enforce them. She stated it would be arbitrary to deny a plat if it meets the subdivision standards. She stated there was no way her client should be expected to comply with the 2010 Plan when it has yet not been adopted by the City. Subdivisions bring good things to an area. This one will bring a new school and a 15 acre park. She stated her client has made every attempt to address all of the issues. The City does not have any jurisdiction over County roads. The County has already addressed the road issue, and her client has lost the entire construction period because of the wait. Jeff Koenig, School Board President, gave the Council a brief history of siting a school for this area. He stated, with the assistance of the Northwest Arkansas Regional Planning Commission, 2.15 October 5, 1993;' they had studied enrollment patterns and demographics. He stated the conclusion of the studies indicated the 20 acre site to be donated by JED will be an ideal location for the school. They would like to see the area annexed, and would be willing to work with the City to build a youth center in the area. Alderman Williams asked how far past that area is the school district limits. Koenig stated the school district goes several miles farther West, and this is a fairly centrally located site. Mel Milholland, engineer for Phase I;. stated of the total 280 acres planned for this project, about 80 acres are in the flood plain'and probably will never be developed. Phase I is less than 40 acres. He stated Salem Road has a compacted subgrade, is well ditched'on both sides, and has 6 inches of SB2, and then chip and seal. He stated the road is straight, has shoulders on about 90% of it, and is safer than Highway 112. He feels the Council has to consider that this is not the only subdivision the Planning Commission has approved in the last 30 days. The plans for this subdivision have been ongoing for some period of time. Both the City and County Planning Commissions voted to approve this project, and he requested the Council concur with these decisions. Howard Davis, president of JED, Inc., stated he had relied on the current laws and was advised to do so by his counsel. Obviously, Jim McCord has more foresight into what the City will be adopting in the future. He stated his development will be about .7 of a mile from the bypass. Since traffic is the problem, he feels it makes more sense to develop closer to the bypass than farther away. He stated they were converting farm property into residential areas. Years ago, this process was started with the surrounding developments. He just wants the land to be used for its best and proper use compatible with the area, and he asked the Council to uphold the Planning Commission decision. Virginia Fidosky, resident of North Salem Road, stated she walks every day on Salem Road, and there is no shoulder. Jim McCord stated he did not mean to be presumptuous about the 2010 Plan, but the City has paid thousands of dollars to a consultant to develop this plan for the City, and he assumes that it will be adopted. Hestated the school site is not an issue in this subdivision request. JED has offered to donate the school site irregardless of the outcome of the development. He stated the safety of Salem Road has been debated by people who have knowledge in the field, and they have differing opinions. He feels this is a good reason to send the whole thing back to the Planning Commission. McCord stated the major consideration here is if the City of Fayetteville will comply with its own rules. The Planning Commission was aware of the new 2010 Plan. Again, he requested October 5, 1993 this be returned to the Planning Commission so the development could be redesigned to comply with the new minimum lot size. Alderman Bassett asked at what stage is the annexation of this area. Alett Little stated annexation follows the adoption of the land use plan. The zoning ordinance is in the same status. Alderman Bassett asked what is the process for developing the rest of the acreage. Little stated as with Phase I, each subdivision request goes through two phases, a preliminary and a final plat approval. The preliminary plat goes to the Subdivision Committee, and then the plat is sent to the Planning Commission. Alderman Bassett asked if all of that comes to pass, City Staff and the City Council will have the right to require off-site improvements. Little stated that was correct. In addition, on-site improvements can be required. Alderman Miller stated he was weighing the pros, such as R-1 zoning of 3 lots per acre, the Richardson v. Little Rock case, JED seems to be conscientious developers, JED has been good to offer to donate land for the school and park areas, and this is a growth area for Fayetteville. He has also looked at the cons, such as the narrow road that has some bad spots in it, he feels the concerns of the neighbors about the density of the new residential area, his desire to protect trees and wet lands, and his fear that a bond issue might be needed if the City outgrows its ability to provide infrastructure facilities. He feels the City needs to get on with the 2010 Plan and adoption of a revised zoning ordinance. Alderman Daniel stated she would like to hear City Attorney Rose's comments about the new land use plan and how it applies to this issue. Rose stated the City Council has had the benefit of two fine attorneys that have laid out the law for them to review. His advice to the Council is to follow the present law. Is the law so clear that it makes a decision for the Council? Rose stated he could not tell the Council that. He advised them to listen to the legal and factual arguments and make their best decision. Alderman Daniel asked if the Council could ask for additional off- site improvements. L.i / 3 October 5, 1993 "" Little stated under the way this was appealed, the Council may affirm, reverse, or modify the plan or the Council may send the item back to'the Planning Commission. Alderman Williams stated he can see why the residents are concerned about maintaining the beauty of the area. He is not in favor of developing Fayetteville as fast as possible. This has been a rural area, and the houses on the north do have larger lots. However, it looks like Fayetteville will be needing a lot of land, so he feels. the density may be needed. He agrees that concrete trucksJwill tear up the road. He would be much less receptive to this proposal if they were asking for 4 houses per acre. He has more of a ' tendency to agree with the Planning Commission. There have been.8 hearings on this already, and he thinks that is enough. Alderman Daniel stated she understands the developer will be required to make some improvements to Salem Road. Salem Road looks better than many of the city streets she drives on in Fayetteville. However, she too is concerned about the increased traffic. Alderman Edens asked if the Council adopts related ordinances, would the other phases of zoned at R-1 with the possibility of 4 houses the 2010 Plan and this subdivision be per acre. Little stated the new plan calls for transition zones, whereby the closest land to the city would be zoned R-1, beyond that, the zone would call for lots up to 1 1/2 acre, and the farthest from the city would call for lots in excess of 1. 1/2 acre. So, this subdivision would probably still come in as R-1. Alderman Edens asked if the current houses could be considered as the transition zone. Little stated she felt they could. Alderman Edens stated he rarely will vote to overturn the Planning commission. He considers the City Council almost like a higher court. If a matter is appealed to them, they have to look to see if the Planning Commission acted in error or not. He believes Howard Nichols Road will be used some to access this area. He does not feel there is problem with the infrastructure. There will be problems with the streets, and it will need some modifications by the developer. He does not feel the Planning Commission erred in their decision, and he will vote to uphold them. Alderman.Vorsanger stated he was impressed that any developer would volunteer land for a park and a school. He is also impressed that in all of the materials, this is the first time he has seen these types of restrictive covenants. Little stated the developer did this to address the concerns of the neighbors. The houses will be a minimum of 1,600 square feet, will October 5, 1993 have a 2 car garage, and no carports. Public streets will be paved hard surface construction. Alderman Vorsanger stated it will probably cost about $100,000 to purchase a lot and build a new house in this subdivision. He stated he would feel differently if the developer were asking for a change in R-1 zoning. But, he feels R-1 is the most restrictive zone, the lowest density. He will vote to uphold the Planning Commission. Alderman Bassett stated all of the people who have addressed the Council have done a good job. He understands why all of the people who live in the area are concerned. However, he does believe that after 7 public hearings and all of the efforts the developer is making by donating 20 acres for a school and 15 acres for a park, the developer has gone above and beyond what is required. It is possible the City may adopt the new 2010 Plan and zoning ordinance. But, he does not know when that will happen. He does not feel the City Council should apply a law retroactively. If this developer comes back and wants to develop some of the additional acreage, he will have to comply with the laws at that time. Bassett stated he was reluctant to overrule the Planning Commission. Alderman Odom stated he agrees with the other aldermen. It would take a lot for him to overrule the Planning Commission. He stated he would like to hear from Alderman Joe Box why he filed the appeal. He has heard good legal arguments on both sides, but he agrees with upholding the Planning Commission's decision. Alderman Box stated he does not regret having filed the appeal. He had many questions about the development, and he feels they have been adequately answered. He stated there are some beautiful homes in this area and some that are not as large as 1,600 square feet, and there are many mobile homes. To put in mobile homes, a person does not have to go to any planning commission. He is also impressed with the donations of land. He wanted to make sure he listened to the very end and had not missed anything regarding this issue before making a decision. He is still worried about the road. However, there are several other roads leading to this development area, and no one appealed the approval of this to the County Planning Commission. The City can't force a developer to fix a road that is not even in the City. He does not have a problem with overturning the Planning Commission if they were in error, but he has not heard of any error being made. Alderman Daniel stated she appreciates the developer's generosity in donating the land. She had heard the term "affordable housing" used when describing this subdivision. She would like to be able to afford an $80,000 house. vorsanger, Commission of 8 to O. October 5, 19934 seconded by Edens, made a motion to uphold the Planning decision. Upon roll call, the motion passed by a vote 4: 239 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 September 21, 1993 regular City Council meeting. B. A resolution approving Change Order 1 in the amount of $33,109.82 to the Mitchener Excavation contract for taxiway, blastpads, fencing, drainage, clearing, grading, and obstruction removal work under Airport Improvement Grant #17, and approving an $18,000 contingency to the contract. The change order will cover the cost of clearing an area of trees that was not earlier identified as an obstruction and for the associated seeding and mulching. There was no contingency approved when the contract was approved, so the engineer is recommending an $18,000 contingency. RESOLUTION 98-93 AS RECORDED IN THE CITY CLERK'S OFFICE A resolution approving Amendment 2 to Task Order 1 with McClelland Consulting Engineers for additional design services relating to obstruction removal in the Airport Improvement Project AIP 17. This amendment deleted the language in Amendment 1 regarding payment for overtime engineering. The additional design work which will cost about $1,800 will now be performed by the prime contractor, Mitchener Excavation. RESOLUTION 99-93 AS RECORDED IN THE CITY CLERK'S OFFICE D. A resolution granting a 30 foot utility easement on City owned property in the Industrial Park South at 15th Street and Happy Hollow Road for the City Street/Sanitation Service Center Facility. This easement will be utilized for .above ground and below ground utility services and involves Lots 2 & 3 of the Industrial Park South. RESOLUTION 100-93 AS RECORDED IN THE CITY CLEAVE OFFICE October 5, 1993 E. A resolution granting two utility easements to Southwestern Bell Telephone Company along City owned properties north of the Airport and across the airport property. These easements will be used by Bell to place telecommunication systems underground along South School Street and across airport property. RESOLUTION 101-93 AB RECORDED IN THE CITY CLERK'S OFFICE Miller, seconded by Odom, made a motion to approve the consent agenda. Upon roll call, the motion passed by a vote of 8 to 0. REZONE APPEAL Mayor Hanna introduced consideration of an appeal of a Planning Commission decision denying rezoning of .96 acres as requested by Betty and Randy Adkins for a lot located adjacent to the Leverett Elementary School on North Garland from R -O, Residential -Office, to C-1, Neighborhood Commercial. The Planning Commission denied the rezoning by a vote of 6-2-0 at their August 23, 1993 meeting. Alderman Edens stated he would be abstaining from the discussion and vote because he owns a like business in the area. Alett Little stated there are adequate services in the area. The principle reason the Planning Commission and planning staff recommended denial is because this land was just rezoned to R-0 less than a year ago and has not been developed. They feel R -O is the appropriate zoning for this land. Randy Adkins stated he and his wife own Oak Plaza Laundry. They are not asking for commercial zoning, rather they are seeking a conditional use. They are very environmentally and socially concerned people. They are willing to save as many trees as possible. They also are willing to accommodate some of the concerns of the residents on Hall Street. They are willing to put in a privacy fence at the back of the property. He visited with faculty at Leverett School, and they do not want anyone to build on the land. He is not planning on having an arcade, but they had planned a couple of video games for patrons to use while they wait. Regarding the traffic concern, school opens at 7:45 a.m. and they open at 8:00 a.m. He would be willing to change his hours during school times and not open until after school starts. In addition, he would be willing to use a "community" driveway with the other two lot owners. He will put in a parking lot between his building and the school, and he would be glad for the school to use the lot. Mr. Adkins stated his laundry currently offers on a limited basis service for the disabled and elderly. They plan to expand this service. On the back of the lot, they would like for the school to be able to expand their playground. He stated they are willing to 441 October 5, 1993 t a, compromise. He stated someone else could buy the land and do what they want with it and not have to come before the Council. Kim Smith addressed the Council and stated he lives on Hall avenue and represents the property owners. In the early 1990's, the Planning Commission voted not to rezone the property to commercial. The Board of Directors voted 6 to 1 to deny the appeal. Last year the property owners wanted to rezone to R -O, and there was no opposition. He feels that is a wonderful compromise. Now, less than a year later, the neighbors are back to fight another rezoning request. Commercial zoning is not correct for this area. There are some turns onto Leverett that are now illegal because of the large amount of traffic. In addition, it is not good to have commercial property abutting the playground of Leverett School. This would be a bad precedent for the City. There is plenty of commercial property for sale on down the street. Jan England, who lives on Garland across from the property, addressed the Council. She asked the Council to consider whether or not the rezoning would be an asset to the City and whether or not denying the rezoning would be a great detriment to the applicants. She stated there is a lot of commercial zoned property available to them in this area. •Pat Green, 962 Hall and a teacher, stated there is already a problem with juvenile crime. She is concerned that commercial property next to a school might increase this problem. If there is a commercial parking lotnextto a school, undesirables could have an easy way to approach elementary kids. Audrey Peterson, 930 Hall Avenue, stated she agrees with her neighbors. This is not about the character of the Adkins, she is comfortable with them. But if the business were sold, who knows about the next owners. She is glad the Council has been listening and upholding the Planning Commission decisions. Alderman Bassett stated this is in his ward. There is nothing personal about this issue, and he wishes the Adkins well with their business pursuits. However, he agrees with everything Mr. Smith has said. He does not feel this would be an appropriate location for commercial use, and he does not want to overturn the Planning Commission. Bassett, seconded by Miller, made a motion to affirm the Planning Commission's decision to deny the rezoning. Upon roll call, the motion passed by a. vote of 7 to 0 -to 1, with Alderman Edens abstaining. SEWER CONNECTION REOUEST Mayor Hanna introduced consideration of a request by Harley Brigham for a sewer connection to his property which is located on Fox October 5, 1993 Hunter Road and is outside the city limits. Mayor Hanna stated Mr. Brigham has contacted him twice about his Red Wolf Park he has been developing into a nature park and nature study center. Mr. Brigham states he is nearing completion and wants to be able to have public restrooms. He owns about 4 acres, and he has his original house on the lot that is hooked to the City's sewer system. The smaller house contains the nature center. He is requesting that he be able to tie this smaller building to the sewer system. Mr. Brigham's rates will be nearly double that of in -town rates. Mr. Brigham has also stated he wants his property annexed into the City when possible. Williams, seconded by Killer, made a motion to approve the sever connection. Alderman Bassett asked if this would cost the City anything. Alderman Vorsanger stated the sewer runs next to Mr. Brigham's property. Cheryl Zotti stated the sewer tap outside the city limits will cost Mr. Brigham $330. Mayor Hanna stated Mr. Brigham has to run the sewer lines out to the city's lines to be connected, so there will be no cost to the City. Upon roll call, the motion to approve the sever connection passed by a vote of 8 to 0. RESOLUTION 102-93 A8 RECORDED IN THE CITY CLERK'S OFFICE REZONE R93-41 Mayor Hanna introduced consideration of an ordinance rezoning 66 acres located on the north side of Drake Street and west of Gregg Avenue from A-1, Agriculture, to R -O, Residential -Office, as requested by Robert Whitfield. The Planning Commission voted 8-0-0 to recommend rezoning. City Attorney Rose read the ordinance for the first time. Williams, 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 8 to 0, and 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 8 to 0, and the City Attorney read the ordinance for the third time. Los 4 October 5, 1993,' gh � iz�4 Little stated the Planning Commission voted to recommend the rezoning. Construction of a frontage road will be required for development. Upon roll call, the ordinance passed by a vote of 8 to 0. ORDINANCE 3725 APPEARS ON PAGE 0120 OF ORDINANCE BOOR X )(✓rI CAPITAL IMPROVEMENTS PROGRAM Mayor Hanna introduced consideration of a resolution approving the 1993-1998 Capital Improvements Program for the City of Fayetteville. Ben Mayes stated staff is asking the Council's adoption of the 5 year working plan. There have been public hearings, meetings with the Council, and meetings with the Water & Sewer and Street Committees on this plan. Mayes stated this plan is to provide direction and is updated annually. Mayor Hanna stated the Council will still vote on each individual project when it comes before them for spending approval. Vorsanger, seconded by Daniel, made a motion to approve the 1993- 1998 Capital Improvements Program Upon roll call, the motion passed by a vote of 8 to 0. RESOLUTION 103-93 AS RECORDED IN THE CITY CLERK'S OFFICE 1993 CAPITAL PROJECTS Mayor Hanna introduced consideration of a resolution appropriating funds for the 1993 capital projects listed in the 1993-1998 Capital Improvements Program. Mayes stated there are several projects that need to be started this year. Those items are detailed in the plan. When the sales tax was overturned, all of these projects had to be stopped.‘,By approving these appropriations, the Council will appropriate ,the funds, but all formal approvals will still come back to Council for final approval. . x Alderman Williams stated he had some questions on item #10, the Lake Fayetteville South parking lot. Before any additional money is spent on parking, the feasibility of the botanical gardens proposed for this site needs to be determined. Alderman Vorsanger asked that Council be given a list of the streets that will be done in-house. r October 5, 1993 Mayes stated staff would provide that list. In 1993, the goal has been to pave all gravel streets remaining in the City. For 1994, the Street Committee will address the street priorities. vorsangsr, seconded by Odom, made a motion to approve appropriating funds for the 1993 capital projects. Upon roll call, the motion passed by a vote of 8 to 0. RESOLUTION 104-93 AS RECORDED IN THE CITY CLERK'S OFFICE LIGHTING BID WAIVER Mayor Hanna introduced consideration of an ordinance waiving the requirements of competitive bidding for the purchase of lights for the Lighting of the Ozarks Festival in the amount of $11,200. The City will be sharing the cost of lighting the City during the winter holiday season with the Advertising & Promotion Commission. The City will be providing lights for the Downtown Square, Air Museum, Municipal Airport, City Hall, and the Police and Fire Stations. City Attorney 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 8 to 0, and 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 8 to 0, and the City Attorney read the ordinance for the third time. Ben Mayes stated these funds are coming from the Advertising & Promotion Commission budget. They will be jointly funding the Ozark Lighting Festival. The bid waiver is required so the same type of lights can be purchased. The City will be getting them at cost. Mayor Hanna stated the Advertising & Promotion money of $17,760 will be used for electrical upgrades on the square. These upgrades will also be helpful to the Farmers Market and other festivals that use the square. The lights should last three years, and there may be more lights added over the next two years. Alderman Bassett stated he sits on the electrical upgrade on the square will Lights of the Ozarks Festival has been & Promotion Commission, and they feel additional revenues for the City. A&P Committee. He feels the be of benefit to many. The approved by the Advertising this will be a way to raise Upon roll call, the bid waiver was approved by a vote of 8 to 0. ORDINANCE 3726 APPEARS ON PAGE 09.02 - OF ORDINANCE BOOK KXV1i October 5, 1993 " TROLLEY/BUS EQUIPMENT BID WAIVER Mayor Hanna introduced consideration of an ordinance waiving the requirements of competitive bidding for the purchase of used trolley and bus equipment in an amount not to exceed $70,000 for utilization in the proposed Downtown/Dickson Street Tourist Transportation Program. The Advertising & Promotion Commission voted to approve: the purchase of up to 2 passenger trolleys/buses. They also approved funding for operators and tourist guides, custom painting of the trolleys/buses with a tourism logo denoting Fayetteville, and fuel for at least the remainder of 1993. Mayor Hanna stated they have found a bus that costs $17,500 that is equipped with a lift. It is a 1985 with high mileage. However, the dealer has agreed to replace the engine, put on new tires,a new front end, and several other things to improve the bus. Mayor Hanna stated the lift units alone cost $6,000. Alderman Daniel asked if a decision has been made about the routes; for the bus. Mayor Hanna stated those are still being decided. Alderman Miller asked if there will be a charge for riding the bus. Mayor Hanna stated there would not be a charge. City Attorney 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 8 to 0, and the City Attorney read the ordinance for the second time. Williams, 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 8'to 0, and the City Attorney read the ordinance for the third time. Alderman Vorsanger stated he too is a member of the A&P Commission, and he thanked all of the other members of this committee. They are making a $70,000 grant to the City with their HMR funds to' start a trolley system. _' Mayor Hanna stated Alderman Odom stated he would prefer to have a regular trolley vehicle. This bus will allow the City to have a trial run at the project. The merchants thought the City might need to double the routes during the lunch hour. Trolleys cost about $200,000 each and the upkeep is considerably higher than with the bus. Even if the City got a transportation grant, it would still cost the City between $60,000 and $70,000 for a trolley. October 5, 1993 Upon roll call, the ordinance passed by a vote of 8 to 0. ORDINANCE 3727 APPEARS ON PAGE ,(3 OF ORDINANCE BOOK XX✓I] OTHER BUSINESS NOMINATING COMMITTEE Aldermen Edens stated there was a vacancy on the Library Board. Edens, seconded by Odom, made a motion to appoint Michael Thomas to fill the unexpired term which will end April 1, 1998. Upon roll call, the motion passed by a vote of 8 to 0. SALES TAX HEARING Alderman Bassett stated the hearing on awarding attorney fees in the sales tax lawsuit will be held Thursday, October 7. Mayor Hanna thanked City Staff for all their hard work on the sales tax refund project. He stated Judge Mobley was very complimentary. JUVENILE CONCERNS COMMITTEE Alderman Bassett stated there will be a meeting of the Juvenile Concerns Committee on Tuesday, October 12 at 6:30 p.m. on Room 326. SALES TAX LAWSUIT SETTLEMENT Alderman Bassett stated because this case is still in court until the attorney fee is decided, he has written his statement. He asked why the City agreed to stand mute on the attorney fees. He stated we have to remind ourselves why we settled. It looked good back in mid April. Settling out -weighed the risk of not settling. By settling, the City avoided default on the $33 million bond issue. This saved the City's credit rating so that the City will be able to engage in future bond issues. It also protected the City's financial reputation and credibility. The refund office saved the City lots of money. He commended all of the people who worked with the office and helped process the approximately $1.3 million in refund claims. Alderman Bassett stated the City knew that the risk of refunds might exceed the collected but unspent sales tax; however, the Council felt this was a risk worth taking. After the attorney fees and expenses are deducted from the unspent sales tax funds, the remaining funds will be spent on capital improvement projects. Settling the lawsuit also stopped the litigation in its tracks back in April. Had the case continued, the City would have had to pay thousands of dollars to Arvest and there would have been increased attorney fees to Lisle. In addition, the City did not need another October 5, 1993 lawsuit hanging over its head. The time had come to put this behind us, clear the air, and move forward. The citizens passed a new sales tax and at the same time dropped the 3.8 mill property tax so the schools could pass this for their needs. All of this was done without increasing the tax by even 1 cent to our citizens. This also put our city on a basis to fund pay-as-you-go projects. Regarding the attorney fees, the City lost the lawsuit. Lisle is entitled to a fee, and he held most of the cards. Alderman Bassett stated he felt both sides did their best to negotiate in good faith. But, an agreement could not be reached on attorney fees. The City agreed not to refute Lisle's claims for attorney fees. He has requested $4 million. Alderman Bassett stated he is willing to accept all blame if the City gets slammed on the attorney fees. However, he reminded everyone that asking for and getting are different things. He stated he trusts Judge Dawson to be reasonable and fair and do, the right thing. Alderman Bassett stated the City cannot and should not violate the agreement that was entered into last April. He stated both sides have agreed not to appeal the attorney fee. He stated all citizens do have the right to attend the hearing to be held Thursday morning. •Alderman Bassett stated the local television news reported that there was money left after the refunds, and the City of Fayetteville would be making off like bandits. This is WRONG!! Any available money will be used for capital improvement projects. How much the City can do all depends on how much money is left. Mayor Hanna stated he echoes what Alderman Bassett has stated. The City took a risk. There were $12 millions collected in sales tax. 85-90% of the people did not request their tax refunds. The refund total is larger because several businesses claimed their refund to protect the rights of their clients. Alderman Williams stated he would like to thank the 90% or more of the people who did not seek a refund. He stated most citizens did not seek a refund because they have voted for the tax and wanted the money to be spent on capital improvement projects. Alderman Williams stated he was the only City Council member who voted against the settlement. He did so because he wanted to be able to argue the attorney fees. However, he feels the City Council stands together, and all will share the responsibility. Alderman Daniel thanked Alderman Bassett, his sister Beverly, and Jerry Rose for all their many hours spent in helping settle this case City Attorney Rose stated the hearing starts at 9:00 a.m. on October 7 in Judge Kim Smith's court room on the second floor in the Court House Annex. October 5, 1993 Alderman Vorsanger stated he owed a debt of gratitude to Alderman Bassett who took the lead when this Council needed leadership badly. He wanted to thank all of the citizens who did not apply for a tax refund. He stated the Northwest Arkansas Times ran a daily tally on the number of refunds and the total. He was very shocked that so many people said they had not heard about the refund until the last few days. This city gave every possibility for people to apply. The refund office was open for 4 months and nothing was made secret. He understands this is the first time anything like this has been done in the State of Arkansas. AUTUMNFEST Alderman Daniel stated Autumnfest is this weekend, Oct 8, 9 and 10. She asked if there was a schedule of events available to the public. Mayor Hanna stated it has been published in the newspaper. Ben Mayes stated the Chamber of Commerce has a brochure. ADJOURNMENT The meeting adjourned at 9:20 p.m.