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HomeMy WebLinkAbout1998-07-07 - Agendas - Final AGENDA FAYETTEVILLE CITY COUNCIL MEETING JULY 711998 A meeting of the Fayetteville City Council will be held on July 7, 1998 at 6:30 p.m. in the City Administration Building, 113 West Mountain Street, Room 219, Fayetteville, Arkansas. The following items will be considered: I. CONSENT AGENDA A. APPROVAL OF MINUTES: Approval of minutes from June 16, 1998, meeting. B. WATER LINE REPLACEMENT: A resolution approving the construction contract with Goodwin and Goodwin, Inc. in the amount of $368,615 for Rolling Hills Area Phase II- water line replacement and $44,235 for project contingency and approval of a budget adjustment. C. LAND ACQUISITION: REMOVED FROM CONSENT AGENDA. Item has been placed under NEW BUSINESS item G. D. SEWER REPAIR: A resolution approving a change order for an emergency sewer pipe bursting with T.G. Excavating, in the amount of $37,373, and to continue the contingency for the existing contract at $ 18,654. 1I. OLD BUSINESS A. RZ 98-10.00: An ordinance approving a rezoning request submitted by Demaree Media, Inc. for property located at 1780 Holly Street. The property is zoned R- 1 , Low Density Residential. The request is for R-O Residential Office. The property contains approximately 2.34 acres. Item was left on the second reading at the June 16 meeting. B. LANDING FEES: An ordinance revising and updating the landing fees at Drake Field to meet leasing requirements, industry trends, an use in negotiating future leases and airport agreements. Item was left on the second reading at the June 16, 1998 meeting. C. SUTTON STREET: A report from the City Attorney on the Sutton Street offer and acceptance. D. HOG CITY DINER: A resolution approving a patio area lease between the City of Fayetteville and Hog City Diner. E. REFUND AND/OR ROLLBACK OF MILLAGE: Discussion of the Millage Refund/Rollback. III. NEW BUSINESS A. PETITION FOR REFERENDUM: A public hearing for all who wish to be heard on the question of whether or not the petition for referendum was signed by the requisite number of petitioners. B. PETITION FOR REFERENDUM: A resolution finding that the referendum petition on Resolution 51 -98, a resolution declaring the Human Dignity policy of the City of Fayetteville, was signed by the requisite number of petitioners and setting a date for the referendum election. C. CRACKER BARREL: Appeal of a Planning Commission decision to deny a variance request to erect one free standing pole sign for Cracker Barrel restaurant. D. VAC 98-5.00: An ordinance approving a right-of-way vacation request submitted by CEI Engineering on behalf of Cracker Barrel for property located south of 6th Street and East of Highway 71 and Futrall Drive. The request is to vacate approximately 0.37 acres of City right-of-way extending approximately 315 feet east of Futrall Drive. E. ORDINANCE AMENDMENT: An ordinance amending Section 33 .049 of the City code of ordinances to allow certain designated non-Fayetteville Fire Department personnel to ride Fayetteville Fire Department vehicles within prescribed FFD policies. F. RZ 98-11 .00: An ordinance approving a rezoning request submitted by Hailey/Amiroez Associates on behalf of Fayetteville School District for property located north of Mount Comfort and west of Salem Road. The property is zoned R- 1 , Low Density Residential. The request is for P-I, Institutional, and contains approximately 20 acres. G. LAND ACQUISITION: A resolution approving the acquisition of land for the extension of Sunbridge Drive from Villa Boulevard to College Avenue and approval of a budget adjustment providing funding for the purchase. H. FUEL FARM: A resolution approving a contract with John P. Marinoni Construction Company, Inc. for construction of the Airport's Above Ground Fuel Farm for the amount of $517, 130.00 and also approval of change order no. 1 reducing the contract amount to $487,830, and a contingency of $48,783 .00, and approval of a budget adjustment. I. COMPENSATION FOR ALDERMEN: An ordinance amending Section 31 . 16 of the Code of Fayetteville by increasing compensation for aldermen from $350.00 per month to $700.00 per month. J. INFORMATION 7/7 15? s POLL 71 IRCHFR TRIJMBO WIT I I AMS qCHAPFR MAVQRHANNA ZITRCHER PFTTI IS WIT I TAMS SCHAPER MAYOR HANNA TRTIMBO WIT I TAMS qCHAPFR MAYOR HANNA L � v' v Nay, T (p- b - O , �- r,�°^'fid 71 JR C14FR Mil I FR WE I TAMS qCHAPFR DANTFT MAYOR 14ANNA PFrn is. CHAPER C 71 TR CHER Aael io TRITMBO PETIT IS W11 I TAMS 1 n ✓ RCHAPER MAYnR HANNA \P ' S - Z— o . (p - ) - 0 . vqc 9r3-S. PFTTI IS WIT I TAMS SCRAPFR ✓ ✓ i/ MAYOR HANNA b -0 - 0 . 0z-D /jZr PFTTI PON V qCHAPER MAYOR HANNA ✓ ✓ ✓ & - o (a - O -D ,e297. 11 IRTIMBO WIT T TAMS SCHAPER MAYC)R HANNA V ✓ /� ✓ c/ ✓ [/ Cn,.ia J FuEz Fio,aw.� v K+GD FINAL AGENDA INFORMATION for JULY 7 , 1998 , Council Meeting Given out at agenda session : - Add sewer repair item from Dave Jurgens number this ID . 2 - . 13 ( . 1 provided here ) - Add memo packet from Nancy Dugwyler number this IID . 1 - IID . 10 - Add Hog City lease to above number this IID . 11 - . 30 - Add Airport fuel farm contract number this IIIH . 1 - IIIH . 10 ( ignore duplicate contracts and change orders ) - Add alderman pay ordinance number this IIIi . l Attached here : - Final Agenda - Minutes of June 16 meeting - Page ID . 1 for sewer repair item added at agenda session - Replacement pages IIIH . 2 - . 3 for fuel farm item - Add pages IIIH . 11 - 14 for fuel farm item - Information items - item IIID A MEETING OF THE FAYETTEVILLE CITY COUNCIL A meeting of the Fayetteville City Council was held on June 16, 1998, at 6:30 p.m. in the City Administration Building, 113 West Mountain Street, Room 219, Fayetteville, Arkansas. PRESENT: Mayor Fred Hanna; Aldermen Cyrus Young, Randy Zurcher, Trent Trumbo, Stephen Miller, Kit Williams, Len Schaper, and Heather Daniel; City Attorney Jerry Rose; City Clerk/Treasurer Heather Woodruff; staff; press; and audience. ABSENT: Alderman Pettus Mayor Hanna called the meeting to order with seven aldermen present. CONSENT AGENDA MINUTES: Approval of minutes from June 2, 1998, meeting. BID 98-7: A resolution awarding a contract to Johnson Mechanical Contractors Inc. in the amount of $47,500 for the installation of new plumbing, heating, ventilation, and air conditioning for the Animal Shelter Clinic Expansion project. RESOLUTION 76-98 AS RECORDED IN THE CITY CLERK'S OFFICE BID 98-50: A resolution approving a contract with RPD Quality Construction, Inc. in the amount of $39,220 plus contingency of $8,000 for all slab work for the new animal clinic. RESOLUTION 77-98 AS RECORDED IN THE CITY CLERK 'S OFFICE BID 98-39: REMOVED FROM CONSENT. MOVED TO THE FIRST ITEM OF NEW BUSINESS. BID 98-43: A resolution accepting Midwestern Equipment Company's bid for the purchase of a H.D. Cab and Chassis with mounted sewer cleaner (combination wash and vacuum) in the amount of $231 ,766. 60 and approval of a budget adjustment. RESOLUTION 78-98 AS RECORDED IN THE CITY CLERK 'S OFFICE BID 98-48: A resolution accepting Shipley Motor Equipment Company's bid in the amount of $ 130, 120 for the purchase of a H.D. Cab and Chassis with mounted combination bulk waste crane with roll off. This unit will be used by the Solid Waste Division. RESOLUTION 79-98 AS RECORDED IN THE CITY CLERK'S OFFICE BID 98-45: A resolution accepting Alma Tractor and Equipment, Inc. 's bid in the amount of $90,669. 12 for the purchase of two tractor/backhoe/loader. The unit will be used by Water and Sewer Maintenance and Sidewalks and Trails crews. RESOLUTION 80-98 AS RECORDED IN THE CITY CLERK 'S OFFICE June 16, 1998 HAMESTRING SEWER: A resolution awarding a contract to Jackson Electric in the amount of $143,583.00 plus contingencies for improvements to the Hamestring Sewer Pump Station, and approval of a budget adjustment in the amount of $120,000, and approval of expenditures up to $50,000 from off site escrow accounts to go toward the project costs. RESOLUTION 81-98 AS RECORDED IN THE CITY CLERK 'S OFFICE Alderman Williams stated the minutes need to reflect that the Council did vote to grant Washington Regional Medical Services a waiver from placing utility lines underground. Alderman Williams moved to approve the consent agenda, with the correction. Alderman Miller seconded Upon roll call, the motion carried on a vote of 710 0. OLD BUSINESS RZ 98-10.00/1780 HOLLY/DEMAREE MEDIA INC. Mayor Hanna introduced an ordinance approving a rezoning request submitted by Demaree Media, Inc., for property located at 1780 Holly Street. The property is zoned R- 1 , Low Density Residential. The request is for R-O, Residential Office. The property contains approximately 2. 34 acres. This item was left on first reading at the June 2, 1998, meeting. Alderman Young stated someone associated with this is a client of the company he works for, so he would abstain on this issue. Alderman Miller moved to suspend the rules and go to the second reading. Alderman Zurcher seconded Upon roll call, the motion carried on a vote of 6-0-1, with Alderman Young abstaining. City Attorney Rose read the ordinance for the second time. Alderman Schaper asked if the bill of assurance is recordable as a restriction that will run with the land. Rose replied it is. Alderman Schaper stated they are giving themselves an out in saying there won't be any further development except for single family residential uses meeting the code requirements in existence at the time of development. He felt they could request a lot split and put on some residential lots. Alett Little, Planning Director, responded that they have the right to develop it R- 1 now. They are reserving the right. There were no comments from the public. Alderman Williams moved to suspend the rules and go to the third and final reading. Alderman Miller seconded Upon roll call, the motion failed on a vote of 4-2-1, with Aldermen Zurcher and 2 June 16, 1998 Schaper voting no and Alderman Young abstaining. This item remained on second reading. PLANNING COMMISSION APPEAUWASHINGTON REGIONAL Mayor Hanna introduced an appeal submitted by Burke and Eldridge on behalf of Washington Regional Medical Services for a large scale development off Millsap Road and Wimberly Street. The request is to appeal the Planning Commission's decision to deny a waiver request for the construction of a standard city street. Jack Anderson, Administrator of Fayetteville City Hospital, stated this is a Fayetteville City Hospital project. He stated he was present to ask the Council to waive the portion of the road through Washington Regional property as well as the monetary assessment for the road across the property to the east. They are requesting this because every dollar required made it less likely the project would be developed. They have an excellent site at that location. They can only afford this type of facility on this site because Washington Regional has worked with them. If the site development costs are significant, they will have to look at alternative sites and possibly not continue with the project. The bottom line is if you take the street development cost off of this four-acre development you'll be taking it off the backs of senior citizens of Northwest Arkansas. He requested the Council wait until Washington Regional developed the remainder of the property to require the road to be completed. If it is required now, it may prevent the project from taking place. Alderman Williams stated the Council saved the development half a million dollars by taking into account the need for this facility. However, the normal procedure is for the developer to build the street all the way through. He could imagine the property on the other side developing and having two streets within half a block of each other not being finished. He stated he has no problem requiring them to pay half the cost of extending the street off their property; but he agrees with the Planning Commission that they do need a street through their property. Mr. Anderson stated his concern is that the additional cost would make it unfeasible to continue with the project. Alderman Williams estimated the cost savings of not running the street through to the property line would be approximately $75,000. Kurt Jones, Crafton & Tull Engineers, stated the estimate submitted did not include storm drainage. He estimated it to be $150,000. Alderman Schaper asked about further development. He noted the development was sited in the middle of a forty-acre tract of land. Mr. Anderson replied that the facility has been situated where it is because it is the least attractive on the property and could justify this type of facility. They have no plans for other development at this time. 3 June 16, 1998 Alderman Schaper questioned the agreement between this development and Washington Regional. Mr. Anderson stated it was his intention to purchase this portion of the property from Washington Regional. Alderman Schaper stated the rest of the site could be further developed. Ms. Little stated part of the reason why the master street had not joined Kenray Street was so that there would be more room on the eastern side for future development. Alderman Daniel stated she had spoken with Chief Jackson who stated the road was needed for emergency vehicles. Little stated it is normal procedure for a developer to guarantee the construction of facilities with a bond or cash contributions. The City has not taken bills of assurance for two to three years. They are very difficult to collect. Alderman Schaper expressed concern about the developer purchasing a land-locked piece of property. He asked if they were going to purchase the property, would Washington Medical Center dedicate an access easement to them. Little stated they have not discussed a lot split during any of the meetings. It is her understanding that this is a Washington Regional Medical Center project. Mr. Jones stated they are not discussing a lot split at this time. Alderman Williams stated this was Washington Regional property and they would have to have a road constructed through the property. He could not see a good reason not to required the road. Alderman Williams moved to grant the waiver not to require off-site road construction. The through road would be required Alderman Schaper seconded the motion. The motion carried by a vote of 6-0-1, with Alderman Young abstaining. CHAPTER 33 AMENDMENT & ADOPTING UDO Mayor Hanna introduced an ordinance amending Chapter 33 of the Code of Fayetteville to provide for the Board of Adjustment, the Plat Review Committee, the Subdivision Committee, the Tree and Landscape Advisory Committee, and the Board of Sign Appeals. Alderman Williams moved to suspend the rules and go to the second reading of this item and the next item, an ordinance deleting Title 15, etc., and adopting the Unified Development Ordinance. Upon roll call, the motion carried on a vote of 7 to 0. City Attorney Rose read the ordinances for the second time. Alderman Schaper asked if editing corrections would have to come back to the Council. 4 June 16, 1998 Rose replied clerical errors can be corrected as found. Alderman Trambo moved to go to the third and final readings. Alderman Miller seconded Upon roll call, the motion carried on a vote of 7 to 0. City Attorney Rose read the ordinances for the third time. There were no comments from the audience. Mayor Hanna called for separate votes. Upon roll call, the ordinance amending Chapter 33 passed on a vote of 7 to 0. ORDINANCE 4099 AS RECORDED IN THE CITY CLERK'S OFFICE Upon roll call, the ordinance deleting Title 15, etc, and adopting the Unified Development Ordinance passed on a vote of 7 to 0. ORDINANCE 4100 AS RECORDED IN THE CITY CLERK'S OFFICE. NEW BUSINESS BID 98-39/WALKER PARK PARKING Mayor Hanna introduced a resolution awarding a contract to J & L Construction in the amount of $ 188,500 plus a project contingency of $ 18,850 for the construction of a 100 space parking lot in Walker Park and approval of a budget adjustment. Alderman Miller read a prepared statement opposing this. Alderman Daniel asked about the cost of doing this in house. Kevin Crosson, Public Works Director, replied that the City tries to do smaller parking lots attached to City facilities. This stands alone and will require landscaping, etc. Alderman Schaper stated the issue is not cost but that the Council hasn't seen an overall plan for development in Walker Park and what parking is available. Bill Ackerman, Parks & Recreation Board, stated this parking lot has been in the CIP since 1992. The need arises from the growth of the children's athletic program. He cited statistics regarding usage. He stated there is constant use of the facilities and there is not adequate parking. There are two small parking lots in the area. A third parking lot to the north is not used for a number of reasons. Its location was not determined by the Parks Department. Parents have been pressing to get this facility built for four to six years. We have not had the money. We wouldn't have the money this year, if another project or two came to fruition. Now, we have the chance to get this project off the table. 5 June 16, 1998 Mr. Ackerman stated there have been over a hundred parking citations issued this year in the vicinity of the facility because there is not adequate parking. He stated there is a safety problem as well. Children have been hit by automobiles. We have one-lane traffic. Richard Alderman, architect, stated there is a master plan for the park that suggests there are 339 parking spaces. Adequate parking would be 471 spaces. This project would add 100 spaces. He stated the concept is to locate it centrally, which also helps with handicap access. Only a comer of the heavily wooded area would be used. Alderman Williams asked if the lot will be landscaped and conform to the current parking lot ordinance. Mr. Alderman replied this project has been worked on by all the City departments. Beth Sandeen, Landscape Administrator, walked the site. She did a tree inventory and determined that the quality trees are in the front area. The parking lot was set back and a tree preservation area was created. One reason this will be a little more expensive than a regular parking lot is because the contractor will have to fence that area off to be kept entirely natural. He stated Chuck Rutherford, Sidewalk and Trails Administrator, saw the site and went through all of the sidewalk relationships. A major crossing area will be marked off. This project has been a couple of years in development because it did go through all the steps. Alderman Miller stated seeing the plan took care of his objections. Alderman Schaper asked about the one access to the parking lot. Instead of spreading the congestion out, this parking lot concentrates it. Mr. Alderman responded that they had talked early on about spreading it out. With the amount of cars coming from some of the other parking lots, that extra exit would be to no advantage, as it would bring more cars out where there is a bunch of cars. This plan requires everyone to make a right turn. In overall terms, this is a better flow. Alderman Williams stated the Council should look at the safety issue above everything else. Parking should be allowed on only one side of Block Street. Alderman Young asked about the general plan. Mr. Alderman replied the general plan done in 1992 shows closing a street and parking being added. Alderman Young asked why the heavily wooded area is being sacrificed, rather than an area in the ball fields. Crosson responded that we need more ball fields. Alderman Zurcher stated research needs to be done on the songbird act referred to in Alderman Miller's statement. Mr. Alderman stated the only thing he has found is a law that states you cannot harm, kill, etc. It would 6 June 16, 1998 be hard to say you are doing harm if you are taking three quarters of an acre out of sixty acres and no known habitat. Alderman Zurcher stated removing trees is removing habitat. Crosson responded that as far as staff is concerned, there is no such law. Alderman Young asked about the consequences of awarding the contract and then having someone come up with a law. Alderman Miller stated that the birds the Federal law protects are done nesting and probably would not affect the schedule. Mr. Ackerman explained their extensive efforts to find such a law and that they found nothing that would impact this. Alderman Zurcher asked what fund the money for this project would come out of. Mr. Ackerman replied part would come from the CIP budget and part from greenspace money. Alderman Zurcher found it ironic to be taking money from the greenspace fund to do away with greenspace. Alderman Williams stated there has been neighborhood opposition to building ball fields in the wooded area. There was going to be nature trails and a senior citizen center. He asked about plans for this. Mr. Ackerman stated it is part of the CIP budget process for this year. They hope to start on the trail project in 1999. Crosson noted there is $79,000 budgeted in 1998 and $50,000 in 1999 and $2,000 in 2000 for Walker Park trail and parking lot. The work will begin this year and spread out over the next two years. Jeff Erf ,, parent of a son who plays T-ball at Walker Park, encouraged the Council to come up with a solution because there is definitely a problem. Beth Campbell, another parent, stated the Council should represent the parents. She stated she loves her children more than she loves trees. There is a safety factor. She noted she carries lawn chairs and other paraphernalia when walking from the parking spots and she is not willing to walk half a mile. She stated the wooded area is a home for vagrants. If the City is not willing to develop this park, they need to fmd another site for a sports complex. Vince Kelly, Fayetteville Youth Baseball Board, stated safety is a concern. In the last four years, three kids have been struck by cars. We need this parking lot and proper cross walk. This will not solve all the problems, but it is a step in the right direction. Preserving nature is also a concern, but parents do not allow children to enter into this wooded area as it is. . The parking lot to the north does not get used because of the distance and the hill that blocks the view. Car windows have been broken, tires slashed, and graffiti sprayed on cars. Block Street was not designated as parking; it is makeshift parking. He 7 June 16, 1998 hopes parking is limited to one side of the street, which would improve traffic flow and safety. Alderman Trumbo moved to approve the resolution. Alderman Miller seconded. Upon roll call, the resolution passed on a vote of 7 to 0. RESOL UTION 82-98 AS RECORDED IN THE CITY CLERK'S OFFICE, LAND PURCHASE/HICKSON/FAT GULLEY RD, Mayor Hanna introduced a resolution authorizing the acquisition of a 12-acre tract of land from Carolyn Hickson in the amount of $243,000. The property is located along Fat Gulley Road, south of Joyce Blvd. and north of Highway 45 . The land will be used for the installation of new water storage towers in conjunction with Fayetteville Water Systems Improvements. Approval should include closing costs associated with the purchase of land. Alderman Schaper felt the City is being forced to purchase land they do not need. There is marketable land along the road. He questioned why we have to buy the road frontage in order to have access to the water tower site. Alderman Young replied if the land is marketable, the City could sell it. Kevin Crosson, Public Works Director, stated if there is not a need for the land, it would be sold. The current owner does not want a portion left to sell. Alderman Williams stated the water tower would devalue the remaining property. Alderman Schaper asked if this was the highest land around. He asked if the tower would be elevated. Don Bunn, City Engineer, stated the land is the highest in the vicinity, but it is not high enough for the required pressure. Crosson stated the new tower would help with some of the pressure problems. Bunn stated it would help the east side of town. Alderman Schaper moved the resolution. Alderman Daniel seconded Upon roll call, the resolution passed on a vote of 7 to 0. RESOLUTION 83-98 AS RECORDED IN THE CITY CLERK'S OFFICE LANDING FEES/DRAKE FIELD Mayor Hanna introduced an ordinance revising and updating the landing fees at Drake Field to meet leasing requirements, industry trends, and use in negotiating future leases and airport agreements. City Attorney Rose read the ordinance for the first time. 8 June 16, 1998 Alderman Schaper asked when the lease with American Eagle expires. Don Green, Airport Director of Operations, replied it expires December 31 , but there is a clause allowing American Eagle to terminate it at any time. We can terminate at any time, too. Alderman Schaper stated American Eagle needs to be notified that the City is terminating their lease effective the first of November. They've made it clear they have a contract starting the first of November with the regional airport. Green stated this resolution will give airport staff the ability to negotiate new landing fees. Alderman Williams stated this would allow the airport to negotiate the best fee with new carriers. He agreed American Airlines' actions are disappointing, but we need to be careful of what we do. There are FAA rules about being accessible to national carriers. We need to go slowly and to make sure we are in total compliance. We need to involve the Airport Advisory Board. He suggested relaying Alderman Schaper's suggestion about terminating the lease in November to Dale Frederick, Airport Manager, and to the Airport Advisory Board. Alderman Schaper stated he would like a study to be done real quick regarding FAA rules. At least one airline that is staying has requested to move into American's space. We need to get on with taking care of our loyal carriers. Alderman Williams moved to go to the second reading. Alderman Daniel seconded Upon roll call, the motion carried on a vote of 7 to 0. City Attorney Rose read the ordinance for the second time. Alderman Williams asked if there is any need for a rush on this. Green replied there is not. This item was left on second reading. DRAKE FIELD FIRE STATION AND TERMINAL CANOPY Mayor Hanna introduced a resolution approving a contract amendment in the amount of $62, 100 with Garver and Garver Engineers. The amendment covers additional engineering work for two projects, the new airfield rescue fire fighting building and the terminal canopy. Alderman Williams stated this is a good improvement, especially for the passengers. Alderman Miller moved the resolution. Alderman Daniel seconded Upon roll call, the resolution passed on a vote 7 to 0. RESOLU77ON 84-98 AS RECORDED IN THE CITY CLERK'S OFFICE. 9 k June 16, 1998 SUMMIT WATER TANK SITE Mayor Hanna introduced a resolution approving a bid award for the restoration of the old Summit water storage tank site. Alderman Williams stated this has been an eyesore and a danger for a long time. This is money well spent. That part of town does not have a park. Alderman Schaper stated the City has a responsibility to be its own best citizen. Alderman Schaper moved the resolution. Alderman Zurcher seconded Upon roll call, the resolution passed on a vote of 7 to 0. RESOLUTION 85-98 AS RECORDED IN THE CITY CLERK'S OFFICE VAC 98-7/EMERALD SUBDIVISION/HAYS Mayor Hanna introduced an ordinance vacating a utility easement for property located on Lots 8 and 9 in Emerald Subdivision, Phase I. The request was submitted by Floyd Reed on behalf of J. B. and Oma Hays. City Attorney Rose read the ordinance for the first time. Floyd Reed, representing the petitioner, stated they are trying to move the utility easement 15 feet to the north. He asked if the three readings could be done at this meeting. Alderman Schaper moved to suspend the rules and go to the second reading. Alderman Williams seconded Upon roll call, the motion carried on a vote of 7 to 0. City Attorney Rose read the ordinance for the second time. There were no comments from the public. Alderman Williams moved to go to third and final reading. Alderman Miller seconded Upon roll call, the motion carried on a vote of 6 to 0, with Alderman Zurcher absent for the vote. City Attorney Rose read the ordinance for the third time. There being no further comments, Mayor Hanna called for the vote. Upon roll call, lite ordinance passed on a vote of 6 to 0, with Alderman Zurcher absent for the vote. ORDINANCE 4101 AS RECORDED IN THE CITY CLERKS OFFICE. LEASE AGREEMENT/BEKKA DEVELOPMENT/TOWN CENTER Mayor Hanna introduced a resolution approving a lease agreement between the City of Fayetteville and BEKKA Development for the property to be used as the entrance to the town center. 10 June 16, 1998 City Attorney Rose stated the Council had before them the lease agreement that Ed Bradberry and he negotiated, with the help of John Bradberry and Diane Boyd. The lease agreement attempts to give the City as much of an ownership interest as possible and provide a lease for Mr. Bradberry. It is a 25-year lease initially, with five year extensions at the option of the City. He read from the agreement, "It is the specific intent of the parties that this lease be one of perpetual renewal at the option of the lessee as long as the lessee is not in default. " Reading from paragraph 11 , he stated, "Default is failure to pay any installment of rent or to comply with any other terms of the lease and not curing those failures within 60 days." Rose stated the amount of money is an up-front sum of $120,000 upon possession and $1 per year during the term or any extended terms of the lease. Mr. Bradberry will receive 32 covered parking spaces or room for those spaces under the town plaza area. He also has reasonable design approval as to the town plaza as it connects especially to his buildings to the north and south. He is interested in maintaining the flow and access to his buildings. Alderman Trumbo stated this is a good and equitable compromise. He would like to pursue having the Advertising & Promotion Commission pay the up-front money. Alderman Daniel asked how many parking spaces would be left for the City. Richard Alderman, architect, stated the literature that went out for the election stated we would have about 230 parking spaces. They have wanted to change that and take about 30 parking spaces out, to lower the cost. He has been instructed to bid the project with all the parking spaces in it. He stated instead of bidding that part underneath, they would just bid the part under the plaza and leave out the ones they were going to put back in that were under the parking decks. Cost-wise, there is not a lot of difference between the lowest level parking and the ones under the plaza. He stated his instructions were to include 230 spaces. We had committed to giving Mr. Bradberry 32 parking spaces in the deck. We are just moving them from under the deck to under the plaza. Alderman Miller asked if the public would have access to Mr. Bradberry's spaces at night. Rose replied that the lease reads, "Said area shall be for the exclusive use of the lessor and/or his tenants and guests. However, when not in use by the lessor, said spaces may be utilized by the lessee for public purposes. " He felt an arrangement could be worked out with the Bradberrys, when needed for events. He stated they feel it would be best to work this out on a case-by-case basis, rather than having it in the lease. He stated the Bradberrys are committed to the City being able to use the spaces for public purposes when the tenants are not using them. Alderman Schaper asked what the taxes would be, which the City would be required to pay. Rose thought they are about $ 1 , 100 now. The lessee is generally accountable for taxes. He agreed we would be paying property taxes on what we are building for Mr. Bradberry's use. For all productive purposes, this property is ours. Alderman Williams asked where the space for garbage disposal would be. Mr. Alderman replied there are areas on either street for dumpsters and trash pick up. 11 June 16, 1998 Alderman Schaper stated the real question is who pays the $ 120,000. This is part of building the town center. Alderman Williams stated the A & P has $960,000. In addition to that, they have the $ 1 million they committed to the project. He stated he has no problem with the City joining with the A & P. This is a civic improvement. He noted that statements had been made to the public that the City would consider putting some money in it. The ballot was to approve the bond issue; nothing on the ballot said the City wouldn't also put money into this project to make it that much better. Alderman Schaper stated the Council has not decided on that yet. Rose stated some members on the A & P Commission are receptive to the possibility of this. He suggested asking about this at the next A & P Commission. Alderman Schaper stated if the Council approves the lease, they are kind of approving that they will pay it. Rose explained no rent will be paid until possession is taken. Possession is contingent upon the approval of the plans and approval of construction contracts. If no town center is built, there will not be $ 120,000 passing hands. Alderman Young asked if the resolution could be passed contingent on the A & P Commission coming up with the money. Rose replied this could be done. Alderman Williams suggested leaving it on the table for future public comment. Bootsie Ackerman, Coordinator of the Downtown Dickson Street Enhancement Project, urged the Council not to table this. The people voted for this project and she urged the Council not to delay it. Jeff Erff, audience member, asked if citizens would have some idea of the City's contribution before the City signs off on the project. Alderman Williams responded that the A & P Commission has studied operating costs and that would come out of A & P funds. Some things are yet to be decided. Alderman Schaper added that future decisions will come before the Council. David Glasser, University Community Design Center, stated this has been worked on for over a year. He stated this is an extraordinary building project. It will be a major anchor of downtown. Alderman Williams noted that Alderman Pettus, who has been outspoken against a lease, was not present. He did not favor passing this in her absence, without giving her a chance to again explain her position. Mr. Glasser stated the town center will put us in a competitive stance with other cities that have beaten 12 June 16, 1998 us to the punch with meeting space. The $120,000 invested by the City with this lease could be a catalyst that gets this project going. Alderman Williams stated we can't go forward with anything until we go forward with the bonds. It would not delay the project to delay this one more meeting and look at everything. Alderman Trumbo moved to approve the resolution. Alderman Daniel seconded Steve Ward, Chamber of Commerce, encouraged the Council to approve this at this meeting. This is preferable to condemnation and buying the property, which have been discussed. He stated the A & P commissioners are committed to this. He stated the $120,000 is something the City can well afford. This action will keep the project on track. Alderman Zurcher stated it is important to look at what zaps a downtown. One thing is having an overabundance of commercial property. If we keep rezoning to commercial on demand, it will always be cheaper to go out to the edge of town. Upon roll call, the resolution passed on a vote of 7 to 0. RESOLUTION 86-98 AS RECORDED IN THE CITY CLERK'S OFFICE. REFUND AND/OR ROLLBACK OF MILLAGE Mayor Hanna introduced discussion of the Millage Refund/Rollback. City Attorney Rose reminded the Council that last year the City, along with the Fayetteville School District, the City of Springdale, and the Springdale School District, was sued in a class action lawsuit that alleged that a county-wide reappraisal had taken place beginning in 1994. It alleged that Amendment 59 required either a roll back of our rates or millage taxation or a refund of millage already collected. Rose stated he initiated answers to that lawsuit. Up until December, he had thought the City wished to proceed with those defenses and take the lead with the Fayetteville School Board in alleging there was no rollback needed because there was no county-wide reappraisal. Rose stated that in December, the Council passed Resolution 119-97 and there was discussion about whether the Council wanted to go ahead and roll back or make refunds based on whatever figures we got from Washington County and that the Council no longer wished to proceed with the defenses in the lawsuit. Rose stated the figures were received from Washington County and provided to the Council. Based on that, he stated he thought his instructions were to try to seek a refund and settlement of the lawsuit. Accordingly, he contacted the attorneys for the plaintiffs and they have agreed to a settlement based on the figures received from Washington County and on the plaintiffs' theory of this lawsuit. The case can be settled by refunding the sum of $ 152,374 on a pro rata basis to the property tax payers in Fayetteville. Rose stated the refund would be for the 1996 property taxes that they claim were exacted prematurely and the 1997 taxes that are alleged to be collected in excess of the 10% allowed by Amendment 59. 13 June 16, 1998 The attorney fees would be 25% of that. An administrative cost would be deducted from the total amount. The plaintiffs' counsels would supervise the refund in a manner approved by the court. The settlement would have no impact at all, at the present time, on any future year and no rollback would be required. Rose asked for further instructions from the Council on how to go forward. Alderman Trumbo expressed concern about leaving the school board to pursue this by themselves and possibly getting a ruling that goes the other way. Alderman Williams explained his reasons for drafting Resolution 119-97 were that it had been certified that there had been a county-wide reappraisal and he didn't want Fayetteville to have to be dragged to court to pay money back to its taxpayers and also out of fear of a long litigation process. It was not to support a settlement between attorneys. Now we are only two months away from a trial and the figures are much more than what was anticipated. Dale Evans, plaintiff attorney, asked why, if passing the resolution then was the right thing to do then, it would be any different today. Also, the conclusion of the case will probably not occur in August. It could be several years away. Alderman Zurcher stated that after reading the ballot title and the opinions from several judges and other information, the right thing to do is to refund the money. The City should not have to be forced to give money back that doesn't belong to it. Mr. Evans challenged the Council to read the ballot and come up with a different meaning than what the plaintiffs are claiming. Alderman Schaper asked about how the numbers were arrived at. Mr. Evans explained that no one knew exactly what the numbers were. The amendment is set up for certain exclusions to be taken out of the money. Those records had not been kept that way for some period of time. This was not determinable until the last few months. Ben Mayes, Administrative Services Director, stated there are several ways to determine this. He remembered estimating approximately $70,000 a year-and-a-half ago. Alderman Williams stated the plaintiffs' theory is that there are two years that the $70,000 couldn't be collected, instead of one year. Rose stated you can argue over whether there was a county-wide reappraisal and whether 1994 was the base year. They are being argued in good faith and can continue to be. Mr. Evans stated he is asking whether or not the people asked for a cap to be implemented and has it occurred. Alderman Schaper asked if the Council accepts the settlement, would they be prejudicing the other defendants in this. 14 June 16, 1998 Rose did not think so. No admissions of fault would be made in the settlement offer. It would have a psychological effect and their interest is much greater than ours. Alderman Trumbo supported letting the court decide. Alderman Daniel agreed. Alderman Zurcher agreed. Alderman Williams was not in favor of passing the resolution at this time, as it is complicated material. Mr. Evans stated settlements are time related. This is not an open-ended offer. Mr. Evans stated the settlement could include that this cures any exposure the City of Fayetteville has. Alderman Williams stated he would like to table this and have it as old business at the next meeting. Alderman Williams moved to table this. Alderman Zurcher seconded Upon roll call, the motion carried on a vote of 7 to 0. ADJOURNMENT Mayor Hanna adjourned the meeting at 9:30 p.m. . 15 JhwhK KhYEllK ID. I STAFF REVIEW FORM T. , XXX AGENDA REQUEST CONTRACT REVIEW GRANT REVIEW For the City Council meeting of: J dy 7 1998. FROM: David Jurgens Water/Sewer Public Works Name Division Department ACTION REQUIRED: City Council approve the attached change order for emergency sewer pipe bursting with T. G. Excavating, pipe bursting in the amount of $37,373, and approve maintaining the contingency for the existing contract at $ 18,654. COST TO CITY: $ 37,373 .00 $40830402 Sewer Rehabilitation Cost of this request Project Budget Project Name 4470-9470-5815.00 $1928-889 Sewer Mains Const Account Number Funds used to date Program Name 96012-8320 $ 1 - 154-513 Water and Sewer Project Number Remaining Balance Fund BUDGET VIEW: XXX Budgeted Item _ Budget Adjustment Attached budget Coordinator Administrative Services Director CONTRACT/GRANT/LEASE REVIEW: GRANTING AGENCY: Accounting Manager Date ADA Coordinator Date (a 2s j0000 Ci Attomey Date 4'lAit�': /„ Date (e -as -9.8 sing Officer Date SOMMENDATION: Award change order and approve contingency as stated above. ,�7 WkAa J as Di ' ion Date Cross Reference: Z ra1V09 Department Director Date New Item: YOS Jy.Q hX Administ/rAieve�Servi ctor Dat Previous Ord/Res #: 73-98 Mayor Date Orig Contract Date: June 2, 1998 r UL 14AKIV1 FAYETTEVILLE 1111-1.2T my . CIT 1 T THE CITY OF FAYETTEVILLE, ARKANSAS DEPARTMENTAL CORRESPONDENCE TO: FAYETTEVILLE CITY COUNCIL THRU: FRED HANNA, MAYOR FROM: DALE FREDERICK, AIRPORT MANAGER DATE: JUNE 24, 1998 SUBJECT: FUEL FARM CONTRACT The Airport is requesting award of the low bid for the removal of the underground fuel storage tanks and the construction of above fuel storage tanks to John P. Marinoni Construction Company, Inc., approval of Change Order No. 1, approval of a project contingency in the amount of $48,783 and approval of a budget adjustment. The project was bid on June 2, 1998 and three bids were received. The amount of the low bid was $5179130. A deductive alternate of $2,770 was taken and McClelland Consulting Engineers have negotiated Change Order No. 1 , reducing the bid amount to $487,830. The total cost to the City of this request, including contingencies, is $536,613 . This project award and related budget adjustment are forwarded for City Council approval after being recommended by the consulting engineers and the Airport Advisory Board. The Airport faces a December 22, 1998 EPA deadline to make improvements to our fuel storage facility. Airport staff, our consultants and the Airport Advisory Board concur that removal of the underground fuel storage tanks and replacing them with above ground fuel storage tanks is in the City's best interest for the future. Retrofitting the existing underground tanks would leave the City exposed to ever more stringent environmental guidelines with ever more costly spill remediation efforts. The funding for this request is from Airport operational funds and is budgeted in the Airport Capital program. Attachments: Staff Review Marinoni Contract Contract Change Order No. 1 Consulting Engineers Recommendation Bidders List Budget Adjustment r VEL r : RIVI HIH.3 N + m m V m U Y {J N + Q O ou p W m m m D mm oa Nn2L m 00 woo y0 by vmXZ D � mm m D0 ixo m C1 -i C m ^ oc � mc O i MZ MZ �O Zm00 AO Ar r Ay wo - Z w � so2 mL' 2 C D O '� O �y aA Om < S 3m < O (O(�� EV mem m Z Z 5 yoam .. xa � r Ay 3 1 ODN m OD D r MDQ NCD 1 � cmd3 ag3 D _ vm OA N m4 y 3 a � mo3 Hm3 m r2 rZ ZO ZO� T X m m D 0 � T m O B d � � j mgrs y N O -DI m � O � <A z m � O O yZy W b .� . . Z a yg9 �, m a m m � a wo Zx C O -D1 N O Dp b N D +avd3 � Ngo. z e > D my SF w�Amv o mm m m 7 o 00 a 4 y KD A Z r m m y m 5 ZO < - - — _ _ — - - - - - - - - - - - - - m Z mu r r 9 D C A A z = w �v OZ 0 O N N M w J a N N pU A m 0 r O V > O O m O O m O Z c M D X '9 0 0 0 o a H o 0 0 o N o m 0 0 0 0 0 0 O o 0 0 0 0 0 0 o O -- — — — — - - - - — — — — - - - - - - - A- - A C Z r a v w y < Z 0 . N m N N m O A p m O N O N d 0 d m + m m n P Z N m m O N O O — _ — — — — - - - - — — — — - - - - - C 0 M O fn fn a m Z N A w a u m m N v p A N N m O U N m O O fJ m U O O U U O O O O O O U O m O O m m m O O O O o 0 0 0 0 0 0 0 0 O C m Z r N y < O a m u V 0 N w v v u m N mwow m m om m o m m 0 O A N N x (I1 p m N J m L Y N b N m W m N 2 p a + N N O O J O O b J O 01 N N > O O O N FUEL FARM IIIH . 11 McCLELLAND P.O. Box 1229 M CONSULTING Fayetteville, Arkansas 72702- 1229 DESIGNED TO SERVE FAX ENGINEERS, INC. 501 -443-2377 501-443-9241 July 1 , 1998 Mr. Dale Frederick Airport Manager Fayetteville Municipal Airport 4500 S. School St., Suite F Fayetteville, AR 72701 Re: Fuel Farm Improvements, Drake Field Bid Tabulation Dear Mr. Frederick: Bids were received on the referenced project Tuesday, June 2. Three bids were received. All of the bidders were properly licensed and submitted proper bid bonds. The bids have been tabulated and checked, and a tabulation of the bids is enclosed. The low bid was from John P. Marinoni Construction Company, of Fayetteville, with a base bid total of $519,900.00. Our most recent construction cost estimate that included all of the bid items was $420,000.00. Marinoni Construction Company has constructed several projects which our firm has engineered. We have found them to be competent and responsive and do not hesitate to recommend them for the award of this contract. Consequently, we recommend that the contract be awarded to John P. Marinoni Construction Company, in the base bid amount of $519,900.00, less Deductive Alternate 1 , in an amount of $2,770.00, resulting in a recommended amount for award of $517, 130.00. Additionally, we are recommending concurrent acceptance of Change Order No. 1 which offers a net reduction in contract price of $29,300.00, resulting in a total contract amount of $487,830.00. If you have questions or comments, please advise. Sincerely, McCLELLAND CONSULTING ENGINEERS, INC. 4CQ nQp President Encl: Bid Tabulation cc: Mr. Steve Smith, John P. Marinoni Construction Co. , w/encl. Mr. David Norman, E. I. , MCE C:\W0RKW\96146W WARD.701'# FUEL FARM IIIH . 12 McCLELLAND P.O. Box 1119 MCECONSULTING Fayetteville, Arkansas 72701- 1119 501 -443-1377 DESIGNED TO SERVE ENGINEERS INC.� FAX 501 -443-9241 July 1 , 1998 Mr. Dale Frederick Airport Manager Fayetteville Municipal Airport 4500 S. School St. , Suite F Fayetteville, AR 72701 Re: Commentary Regarding Construction Bids Fuel Farm; Drake Field Dear Mr. Frederick: When we receive bids which significantly exceed the Engineer's estimate, some explanation is in order. The following is a brief recap of your project's history, with related comments. 1 . The existing fuel farm is an underground facility that was commissioned around 1985. 2. For several reasons, including those given below, Drake Field staff began in 1993 to plan for the fuel farm's relocation: A. Portions of the fuel farm facility penetrate the imaginary transitional surface adjacent to, and beyond, the primary surface, thereby requiring a technical waiver for its location. B. A seasonally-high ground water table in the vicinity, coupled with the lack of water-tight accessways for the underground fuel tanks, precludes unscheduled inspection of the tanks as required by Drake's airline customers. This necessitates the waiver of the requirement for these types of quality control inspections until/unless the groundwater table can be lowered by long-duration pumping. C. The potential for fuel contamination with groundwater and/or the potential for the rapid migration of a fuel leak/spill via the groundwater associated with the site is recognized as a serious concern. The liability potential is judged to be significant. D. The uncertainty of future/additional regulatory requirements which may be placed upon buried tanks, makes the rehabilitation of the existing facility less attractive. C:\W OR KftR%1461COM M E NT.B I D:Jrn FUEL FARM IIIH . 13 Mr. Dale Frederick July 1 , 1998 Fayetteville Municipal Airport Page. . . . . .. . .2 E. Rehabilitation of the existing facility would likely require an interruption to fuel services and/or waiver of the City's safety requirements governing above ground fuel storage tanks. F. The impending deadline to rehabilitate or close-out all underground fuel tanks by late-1998, has been identified as a catalyst to make a decision regarding needed fuel farm modifications. 3. The Drake Field Staff solicited a quotation from a Fort Smith fueling equipment representative for making fuel farm improvements in June, 1993. At that time, the equipment supplier estimated that improvements associated with relocation of the fuel farm (i.e. , new construction) would cost $211 ,574.00, excluding tax. This estimate, which did = include a cost for closing-out the existing fuel farm, was apparently used for budgeting purposes. The budget subsequently established by Drake's staff was $264,750. 4. In May, 1997, the City authorized McClelland to design a new fuel farm in a new location. The total fee, including preliminary study, design, and construction administration, was established as $29, 597. (In spite of the subsequent escalation of construction cost, McClelland has stood by its initial design fee amount.) 5. After experiencing delay in the preliminary study phase while awaiting development of the airport's Master Plan, MCE submitted its preliminary engineering study in February, 1998. That study presented a construction cost estimate of $364,698, including both new fuel farm construction and close-out of the existing fuel farm. 6. Subsequently, detailed design was completed and presented to the airport Staff and Board for review and comment. At that time (April, 1998) the scope of the work was increased to provide a collision/barrier for safety and appearance reasons, and different access points for fuel loading and unloading to allow simultaneous operation of both. All said, the Engineer's final construction cost estimate increased to $420,000. 7. Recognizing that budgetary concerns existed, the Engineer was authorized to include two Deductive Alternate items in the bid documents in order to afford an opportunity to receive a bid within an affordable range. CAW OR KW6W 146YCOM M E NT.81 D:Jm FUEL FARM IIIH . 14 Mr. Dale Frederick July 1 , 1998 Fayetteville Municipal Airport Page. . . . . . . . .3 8. Actual bids were received on June 2, 1998. The low bid amounted to $519,900. The Airport Board's decision to recommended acceptance of Deductive Alternate No. 1 reduces the proposed Contract amount to $517, 130. 9. Subsequent to opening bids, McClelland met with the low bidder and discussed ways of lowering the construction cost without compromising the ability of the new fuel farm to meet its objectives. This has resulted in proposed Change Order No. 1 which offers a net decrease in cost of $29,300, yielding a revised construction cost of $487,830. This amount is 16. 15% above the Engineers final cost estimate. We have analyzed the bids and are recommending that you accept the low bid, amending it as noted heretofore. This firm truly believes that it has exercised due diligence in preparing its cost estimates (by working closely with both equipment suppliers and contractors). While it is possible that we overlooked some expense item(s) which will be incurred by the construction Contractor, it is also likely that the higher-than-expected bids are the result of ample work for Contractors to bid, coupled with the widely-recognized impending EPA regulatory deadline for addressing all underground storage tanks. If you have questions or comments regarding these matters, please let me know. Sincerely, McCLELLAND CONSULTING ENGINEERS, INC. n C. Quinn, President cc: Mr. David Norman, E. I. , MCE C:1W OR KWR%14=0MM ENT.BID:JM