HomeMy WebLinkAbout1998-09-01 - Agendas - Final AGENDA
FAYETTEVILLE CITY COUNCIL MEETING
SEPTEMBER 1, 1998
A meeting of the Fayetteville City Council will be held on March 17, 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 August 18, 1998.
B. BID 98-72: A resolution awarding Bid 98-72 to Smith Two Way Radio for seven Panasonic
laptops plus three docking stations for $23,458. 39 and Office Imaging for 16 Rocky II
laptops, plus three docking stations for $ 103,231 . 18 and approval of budget adjustment.
C. AIRFIELD LIGHTING PROJECT: A resolution approving a FAA Airport Improvement
Project Grant. The funds will cover phase 1 of the Airfield Lighting Rehabiliation Project,
the Runway Approach Obstruction Location System and the Pavement Management
System.
D. SUBSTATION GRANT: A resolution approving a grant offer from the FAA, which will
partially fund the construction of an Aircraft Rescue and Firefighting Station.
II. OLD BUSINESS
A. RZ 98-14.00: An ordinance rezoning 3.07 acres located at 4070 Huntsville Road from A-
1 to R-S, Residential Small Lot. The request was submitted by Jack Butt on behalf of Paul
and Geraldine Bond. The ordinance was left on the second reading.
B. LEASE AGREEMENT: Review, comment, and approval of a lease and agreement for the
Town Center between the City of Fayetteville, and the Advertising and Promotion
Commission.
III. NEW BUSINESS
A. STREET RENAMING: A resolution approving the renaming of "Crest Lane" to "Glen
Wing Lane. " The request was submitted by Gayle O'Donnell to honor the late Glen Wing,
a Fayetteville real estate attorney.
B. ILLEGAL PARKING: An ordinance prohibiting illegal parking in Handicap parking areas
and proscribing penalties.
C. RAOLS: An resolution approving a contract in the amount of $28,000.00 with Garver &
Garver for a Runway Approach Obstruction Location System.
D. HANNA'S POTPOURRI SPECIALTIES: A resolution certifying local government
endorsement of Hanna's Potpourri Specialties, Inc. to participate in the Advantage Arkansas
Program (also known as the Arkansas Enterprise Zone Program - ACT 947 of 1993).
E. DRUG TESTING: A resolution amending the City Council's Rules of Order and
Procedure by adding Section J, Drug Testing Policy, to provide for random drug testing of
the City Council.
Only items presented by the City Council or City Staff may be discussed during the
meeting. If you have an item you wish to discuss, please contact your alderman to have it
presented at the neat City Council Agenda Session. For further assistance, please contact
Heather Woodruff, City Clerk, at 575-8323.
9/1/98 ROLL CONSENT
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DANIEL
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AGENDA
FAYETTEVILLE CITY COUNCIL MEETING
SEPTEMBER 19 1998
A meeting of the Fayetteville City Council will be held on March 17, 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 August 18, 1998.
B. BID 98-72: A resolution awarding Bid 98-72 to Smith Two Way. Radio for seven Panasonic
V laptops plus three docking stations for $23,458. 39 and Office Imaging for. 16 .Rocky II
la to sR Plus three docking stations for $ 103,231 . 18 and approval of budget adjustment.
C. AIRFIELD LIGHTING PROJECT: A resolution approving a FAA Airport Improvement
Project Grant. The funds will cover phase 1 of the Airfield Lighting Rehabiliation Project,
the Runway Approach Obstruction Location System and the Pavement Management
\� System.
D. SUBSTATION GRANT: A resolution approving a grant offer from the FAA, which will
\�U/L10 partially fund the construction of an Aircraft Rescue and Firefighting Station.
II. OLD BUSINESS
A. RZ 98-14.00: An ordinance rezoning 3 . 07 acres located at 4070 Huntsville Road from A-
` ,,\�D\ 1 to R-S, Residential Small Lot. The request was submitted by Jack Butt on behalf of Paul
v1 and Geraldine Bond. The ordinance was left on the second reading. r
B. LEASE AGREEMENT: Review. comment, and approval of a lease and agreement for the ,
Town Center between thheCCity
d=+nofp�Fayetteville, and the Advertising and Promotion Zy.�f��
Commission.
III. NEW BUSINESS
A. STREET RENAMING: A resolution approving the renaming of "Crest Lane" to "Glen
Wing Lane." The request was submitted by Gayle O'Do ell to honor the late Glen Wing,
a Favetteville real estate attorney.
B. ILLEGAL PARKING: An ordinance prohibiting illegal parking in Handicap parking areas
t (p and proscribing penalties.
C. RAOLS: An resolution approving a contract in the amount of $28,000. 00 with Garver
oto Garver for a Runway Approach Obstruction Location System.
D. HANNA'S POTPOURRI SPECIALTIES: A resolution certifying local government
endorsement of Hanna's Potpourri Specialties, Inc. to participate in the Advantage Arkansas
\� �1� Program (also known as the Arkansas Enterprise Zone Program - ACT 947 of 1993).
E. DRUG TESTING: A resolution amending the City Council's Rules of Order and
Procedure by adding ecuon J. Drug Testing Policy, to provide for random drug tes g of
the City Council. <�
Only items presented by the City Council or `City Staff may be discussed during the
meeting. If you have an item you wish to discuss, please contact your alderman to have it
presented at the neat City Council Agenda Session. For further assistance, please contact
Heather Woodruff, City Clerk, at 575-8323.
9/1/98 STREET
RENAMING
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WILLIAMS
DANIEL
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9/1/98 RAOLS
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HANNA' S
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9/1/98 DRUG
TESTING
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PETTUS
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MAYOR HANNA
ADJORNMENT
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MAYOR HANNA
FINAL AGENDA INFORMATION
FOR
SEPTEMBER 1, 1998, COUNCIL MEETING
GIVEN OUT AT AGENDA SESSION:
• BID 98-72, POLICE LAPTOPS
NUMBER THIS I132-6
• AWARD LIGHTING PROJECT
NUMBER THIS IC 1 -4
• SUBSTATION GRANT
NUMBER THIS IDI -22
• AMENDMENTS TO THE LEASE AGREEMENT
NUMBER THESE IIB1 AND IIB2
• STREET RENAMING-ADDITIONAL INFORMATION IIIA5
• ILLEGAL PARKING
NUMBER THIS IIIB 1
• RAOLS
NUMBER THIS IIIC 1
• HANNA' S POTPOURRI SPECIALTIES
NUMBER THIS IIID1 -7
• DRUG TESTING
NUMBER THIS IIIE1 -7
ATTACHED HERE:
• FINAL AGENDA
• AUGUST 18, 1998 MINUTES
NUMBER THIS IAI - 12
• ADDITIONAL INFORMATION HANNA' S POTPOURRI IIID8
0 ADDITIONAL INFORMATION LEASE AGREEMENT 11133-27
t-
'i
A MEETING OF THE FAYETTEVILLE CITY COUNCIL
A meeting of the Fayetteville City Council was held on Tuesday, August 18, 1998, at 6:30 p.m.,
in the Council Room of the City Administration Building, 113 W. Mountain, Fayetteville,
Arkansas.
PRESENT: Mayor Fred Hanna, Stephen Miller, Kit Williams, Len Schaper, Heather
Daniel, Cyrus Young, Trent Trumbo, Donna Pettus, City Attorney Jerry
Rose, City Clerk/Treasurer Heather Woodruff, staff, press, and audience.
ABSENT: None
Mayor Hanna called the meeting to order with seven aldermen present.
CONSENT AGENDA
MINUTES: Approval of the minutes from the meeting of August 4, 1998.
MINUTES APPROVED.
AIRFIELD LIGHTING: A resolution approving Amendment #1 to the contract with Chris King
Electric, Inc. in the amount of $5, 140.00 for the Airfield Lighting Control Project and approval of
a budget adjustment.
RESOL UTION 110-98 AS RECORDED IN THE CITY CLERK 'S OFFICE.
LAKE LUCILLE SPILLWAY: A resolution authorizing the Mayor and City Clerk to execute a
construction Contract with Sweetser construction for the Lake Lucille Spillway Replacement
Project for $59,649. 00 plus contingency of $ 12,000.00.
Alderman Kit Williams moved to accept the Consent Agenda. Alderman Miller second the
motion. The motion carried with a vote of 6-0-0. Alderman Daniel was not present to vote.
RESOL UTION 111-98 AS RECORDED IN THE CITY CLERK 'S OFFICE
OLD BUSINESS
ORDINANCE REVISION: Mayor Hanna introduced an ordinance revising Chapter 161 :
Physical Alteration of Land. The ordinance had been left on the first reading.
Alderman Stephan Miller moved to suspend the rules and go to the second reading.
Alderman Schaper second the motion. Upon roll call the vote carried 6-0-0. Alderman
Daniel not present for the vote.
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AUGUST 18, 1998
City Attorney Rose read the ordinance.
Alderman Williams stated that this ordinance had be in the planning for over a year and with the
help of the Engineering Department the ordinance was ready to approve. Alderman Williams
thanked the Engineering Department and staff for all of their work on this ordinance.
Alderman Miller stated he had been concerned with development on hillsides. He felt the
committee had done a really good job. He was extremely please with this ordinance.
Alderman Williams moved to suspend the rules and go to the third and final reading.
Alderman Schaper second the motion. Upon roll call vote carried 6-0-0.
City Attorney read the ordinance.
Mayor Hanna called for the vote. Upon roll call the ordinance passed with a vote of 6-0-0.
ORDINANCE 4113 AS RECORDED IN THE CITY CLERK 'S OFFICE.
NEW BUSINESS
BID 98-60: Mayor Hanna introduced a resolution awarding Bid 98-60 to TNT Construction and
approving a contract for the replacement of playground and picnic equipment at Hotz Park. The
bid amount is $45,908.43 plus $3,000 contingency.
Alderman Williams stated he had requested this resolution be placed under new business because
there had been two bids received for this project. Alderman Williams stated that one of the bids
was a lower bid and that it was not in compliance with the Council's request. He showed the
members of the Council a picture of the new playground equipment. He added that it seem to be a
lot of money, but he felt that it would be well spent. Alderman Williams asked Alderman Schaper
if he had spoken with any of the neighbors surrounding Hotz Park.
Alderman Schaper stated the University Heights Neighborhood Association approved of this
resolution. He expressed concerns about the amount of the money, but felt the current equipment
needed to be updated. He stated this was the kind of neighborhood park that he liked.
Alderman Schaper moved to approve the resolution. Alderman Miller second the motion.
Upon roll call, the motion carried with a vote of 7-0-0.
RESOL UTION 112-98 AS RECORDED IN THE CITY CLERK 'S OFFICE.
RZA 98-13.00: Mayor Hanna introduced an ordinance annexing 3 .07 acres located at 4070
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A {
AUGUST 18, 1998
Huntsville Road. The request was submitted by Jack Butt on behalf of Paul and Geraldine Bond.
RZ-98-14.00: An ordinance rezoning 3 .07 acres located at 4070 Huntsville Road from A-1 to R-
S, Residential Small Lot. The request was submitted by Jack Butt on behalf of Paul and
Geraldine Bond.
City Attorney Rose read the annexation and re-zoning ordinance.
Mayor Hanna state that it should be known that the Planning Commission approved the annexing
with a vote of 7-0 and the re-zoning by a 6- 1 vote.
Alderman Miller expressed his gratitude to Jack Butt for excepting a R-S zoning instead of an R-2
zoning.
Attorney Butt stated at this time the Bond' s had no immediate plan for developing the parcel of
land . He added the Bonds were annexing to connect to the City's sewer system.
Alderman Trumbo made the motions to suspend the rules and go to the second reading.
Alderman Miller second the motion. Motion carried 7-0-0.
City Attorney Rose read the ordinance.
Alderman Williams asked if any of the neighbors across the road had been notified of this
rezoning. He stated that he would prefer not to go to the final reading until the public had been
notified.
City Clerk/Treasure Heather Woodruff stated the City' s ordinances required adjoining property
owners to be notified in the Planning Commission meeting.
Alderman Williams asked if the neighbors across the road had been notified.
Alderman Schaper asked attorney Butt if the said neighbors had been notified. Butt replied the
Planning Department had taken care of the notification. He noted the property across the road
was zoned R-2.
Alderman Williams stated he was reluctant to proceed to the final reading on the re-zoning.
Mayor Hanna asked Mr. Butt if delay in the re-zoning would cause a hard ship to his clients.
Attorney Butt replied it might cause a problem for his clients, because the Bonds were concerned
with connecting to the sewer system.
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AUGUST 18, 1998
Alderman Miller stated they would be able to connect to the sewer, if they were annexed.
Alderman Williams made the motion to suspended the rules on the annexation and go to
the third and final reading of the re-zoning. Alderman Miller second the motion. Upon
roll the motion carried 7-0-0.
City Attorney Rose read the annexation ordinance.
Alderman Trumbo made an motion to suspended the rules and go to the third and final
reading. No second motion was made. The re-zoning ordinance was left on the second
reading.
Mayor Hanna called for the vote on the annexation. Upon roll call the motion passed 7-0-0.
ANNEXING ORDINANCE 4114 AS RECORDED IN THE CITY CLERK 'S OFFICE.
REZONING LEFT ON THE SECOND READING
WRMC ASSISTED CARE DEVELOPMENT: Mayor Hanna introduced a resolution from
Council concerning a proposed cost-share for the cost difference between construction Longview
as a 36 ft. Collector vs. A 28 ft local street for approximately 1450 ft at the WRMC Assisted Care
development.
Alderman Schaper stated that he did not know if this policy was in the City's best interest.
Alderman Williams replied the reason behind the policy was that it is assumed that many other
people other than that developer and his tenants will be using the collector. We do require a
larger right way.
Alderman Trumbo made the motion to move the resolution as presented. Alderman Pettus
second the motion. Upon roll call the motion carried 7-0-0.
RESOLUTION 113-98 AS RECORDED IN THE CITY CLERK 'S OFFICE.
ORDINANCE AMENDMENT: Mayor Hanna introduced an ordinance amending Section
97.016 of the Code of Fayetteville to allow the Mayor or his designee to establish fees for the use
of City Park Ballfield for tournaments.
City Attorney Rose read the ordinance.
Alderman Williams made the motion to suspend the rules and go to the second reading.
Alderman Miller second the motion. The motion carried 7-0-0.
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AUGUST 18, 1998 '
City Attorney Rose read the ordinance.
Alderman Williams made the motion to suspend the rules and go to the third and final
reading. Alderman Miller second the motion. The motion carried 7-0-0.
City Attorney Rose read the ordinance.
Upon roll call the motion was approved with a 7-0-0 vote.
ORDINANCE 4115 AS RECORDED IN THE CITY CLERK 'S OFFICE.
NON-RESIDENT PARKING: Mayor Hanna stated that this item had been removed from the
agenda and forwarded go to the Street Committee.
No action taken.
NO ACTION. SENT TO THE STREET COMMISSION.
LEASE AGREEMENT: Mayor Hanna introduced the review, comment, and approval of a lease
agreement for the Town Center between the City of Fayetteville and the Advertising and
Promotion Commission.
City Attorney Rose read the resolution.
Alderman Schaper asked if the State law required the A & P Commission to manage the
Convention Center because of the issuance of the bonds.
City Attorney Rose replied no.
Alderman Schaper asked if the center could be managed by anyone?
City Attorney Rose replied yes and he thought the City would be hard press to find someone
willing to do it as well as pay for the operation and maintenance of the building.
Alderman Pettus asked if there was any reason why the City of Fayetteville could not manage
center.
City Attorney Rose answered no.
Alderman Williams asked if there was a provision in the lease that stated that if the A & P default
that the City would manage the Center.
5
AUGUST 18, 1998
City Attorney Rose answered the bonds were issued strictly go to the A & P. He explained that
the bonds were issued from the HMR tax. No City funds were committed to this project. The
City, would not be responsible for the default of the bonds. The City would not have to pay
money under the terms of this agreement. He reiterated the only thing committed was the HMR
tax.
Alderman Young stated if they default, then City could start to take over.
In response to questions from the Aldermen, Ben Mayes, Administrative Services Director,
stated that Section 10 stated that if the A & P default for any reason, the leasor, which was the
City, may re-enter and take possession of the leased premises without terminating the agreement.
He added the City can step in if necessary.
Alderman Williams asked what the maturity of the bonds were and when they would be paid off.
Mr. Mayes replied it would depend on the market conditions at the issuance of the bonds. If the
bonds were issued now they would be for twenty years. Even though the election allowed for
twenty-two years.
Alderman Trumbo asked why the term of the lease did not match the terms of the bonds.
Alderman Pettus expressed concern that the lease gave the A & P a lot of control and the City
practically none. She knew the City could step in if the A & P were to default. She noted that the
City would have no recourse if the A & P mismanaged the faculty.
Alderman Schaper asked what the performance metrics were for the A & P Commission under
this lease.
Alderman Schaper asked if the lease could be terminated if they did not generate a minimum
number of days per year lease income.
Alderman Schaper noted there were no provisions to terminate the lease if the A & P did not
manage the Center go to the City's expectations. He also questioned what would happen to the
money if they turned a huge profit. He suggested the additional money be used to pay off the
bonds.
Alderman Pettus stated that perhaps a percentage could be paid back to the people of Fayetteville.
Alderman Schaper replied he had concerns about this lease agreement. He said he saw no
control in the ordinance.
Mr. Mayes suggested a meeting between the Council members and the A & P. He stated that A
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AUGUST 18, 1998
& P was controlled by state statues of the HMR Tax. The center itself will operated at a loss not a
gain that is the projections based on studies done by an independent party not the A & P. But the
A & P are total at risk and that is why they have control over the center Mr. Mayes again
suggested further meetings, he didn't think that staff could answer the type of questions that were
being asked.
Alderman Schaper replied the A & P Commission was and was not at risk. He noted that their
only source of revenue was the A & P tax. He commented if necessary the revenue could go to
pay the bonds. Because they have a broader taxing authority, the city doesn't have too, but it
could bail out this project if necessary.
City Attorney Rose replied there was no legal obligation on the City' s part.
Alderman Pettus noted the City needed more control in the operation of the Center.
City Attorney Rose stated he was just representing the City' s best interests. He suggested a
meeting between the two parties.
Mayor Hanna also requested a meeting.
Alderman Pettus suggested the Public send in questions that they would like the Alderman to ask
the A & P Commission.
Alderman William stated he thought both parties were on the same side and they were both trying
to build an effective and beautiful Town Center. He expressed concern about the length of the
lease and concern about protecting the non-profit organizations.
Alderman Schaper asked in Section 502, access to non-profit ship, that premises should be made
available for use by non-profit groups located in the City of Fayetteville. He expressed concern
about non-profit groups not be able to reserve the premises for more than thirty days prior to the
date that it will use the lease premises. He asked if the non-profit group reservation was
guaranteed. He suggested sixty days instead of thirty days to give non-profits time to advertise
their events.
Alderman Pettus noted that lease does not state how often the non-profits can use the center.
She expressed concern that the Center would choose conventions over the non-profit groups.
Alderman Williams stated it would be leased to conventions a quarter of the time. He would like
to see an area in the Town Center that would be only used for non-profit community groups.
Mr. Mayes remarked the intent was to guarantee reservations and thirty days was so that groups
could not reserve the center a year or more in advance.
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AUGUST 18, 1998
Alderman Young stated his concerns that they were narrowing it to one kind of non-profit
organization and would like the lease to say non-profit groups.
Alderman Schaper asked about the requirements?
Mr. Mayes replied the center could not be exclusively used for non-profit use, it then would be a
non-public faculty under this A & P Law and Federal Law. Another example would be if you
built a town center and leased it out go to a major corporation for three years the IRS would say
that the corporation was using the city's tax exempt status to build a convention center for their
training center.
Alderman Schaper asked if the City pays the rent for A & P and it is deemed additional rent, then
how would this provision works?
Mr. Mayes replied the A & P was still responsible for their obligations. He then deferred go to
City Attorney Rose.
City Attorney Rose stated the City had many options they could take if this should occur.
Alderman Schaper stated he would like to see some of the provisions stated more clearly.
Alderman Pettus agreed with Alderman Schaper on this aspect. She asked City Attorney Rose if
the A & P Commission and their activities in managing the Convention Center were subject to the
Freedom and Information Act.
City Attorney Rose said to his understanding the answer was yes.
Alderman Pettus commented the Center was to be financed out of the bonds and other monies.
She asked what other monies?
Mr. Mayes replied the A & P Commission agreed to contribute one million dollars toward the
construction of the Town Center.
Alderman Young asked if the Turn back funds were to be used.
Mr. Mayes stated the Turn back funds were not for construction and there was only two sources
of monies those of the A & P Commission and the bonds.
Joe Fennell, Chairman of the A & P Commission, stated he appreciated all the concerns and
comments of the Aldermen. He would welcome a joint meeting.
Mayor Hanna request a meeting be set for 5 :30 next Tuesday afternoon in room 326.
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AUGUST 18, 1998
Alderman Williams suggested the discussion be tabled until the next meeting.
Jeff Erf asked who wrote the contract?
Mr. Mayes replied he wrote the draft.
Mr. Erf asked why the City was responsible for paying the insurance?
Alderman Miller said the City was not responsible for paying all the insurance.
Mr. Erf then replied why was the City paying for the premises, furniture, and fixtures.
Mr. Mayes said the A & P Commission felt it was more appropriate for the City to pay for their
own liability and property insurance and the A & P Commission to pay for the building insurance.
Alderman Miller asked how much the insurance would cost.
Mr. Mayes replied he did not know, but would find out and supply that information.
Alderman Schaper replied that the City was responsible for the expense of the Town Center and
the insurance was part of that expense.
Mr. Erf asked if there were any other expense in the contact that the City of Fayetteville had to
pay.
Alderman Pettus replied she was not aware of any other expense.
Mayor Hanna asked if there were any other questions or comments.
No action was taken. The Item was place on the next agenda.
TABLED TO NEXTMEETING. NO ACTION TAKEN.
VA 98-9.00: Mayor Hanna introduced an ordinance vacating approximately three feet of a utility
easement for property located at 2394 Big Oak Drive. The request was submitted by John and
Lesley Green and is only for the portion of the of easement on which the house encroaches.
City Attorney Rose read the ordinance.
Mayor Hanna asked for questions.
Alderman Williams made the motion to suspend the rules and go to the second reading.
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AUGUST 18, 1998
Alderman Miller second the motion. Upon roll call the vote passed 7-0-0.
City Attorney Rose read the ordinance
Mayor Hanna asked for comments.
Alderman Schaper made the motion to suspend the rules and go to the third and final
reading. Alderman Daniel second the motion. Upon roll call the vote passed 7-0-0.
City Attorney Rose read the ordinance.
Mayor Hanna called for the vote. Upon roll call the vote passed 7-0-0.
ORDINANCE 4116 AS RECORDED IN THE CITY CLERK 'S OFFICE.
VA98-1000: Mayor Hanna introduced an ordinance vacating approximately 6. 5 feet of a utility
easement for property located 2911 Birdie Drive. The request was submitted by Lyle and Kelley
Nicholson and is only for the portion of the easement on which the house encroaches.
City Attorney Rose read the ordinance.
Alderman Williams made the motion to suspend the rules and go to the second reading.
Alderman Miller second the motion. Upon roll call the vote passed 7-0-0.
City Attorney Rose read the ordinance.
Alderman Miller made the motion to suspend the rules and go to the third and final
reading. Alderman Daniel second the motion. Upon roll call the vote passed 7-0-0.
City Attorney Rose read the ordinance.
Mayor Hanna asked for any more comments.
Mayor Hanna called for the vote. Upon roll call the vote passed 7-0-0.
ORDINANCE 4117 AS RECORDED IN THE CITY CLERK 'S OFFICE.
SPECIAL ELECTION: Mayor Hanna introduced an ordinance calling for an election on the
issue of Sunday sales of alcoholic beverages.
10
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AUGUST 18, 1998
Mayor Hanna called upon John Gilliam.
Mr. Gilliam stated the ordinance could be passed by resolution or by petition. He asked the City
Clerk if she had started counting the signatures yet.
City Clerk/Treasurer Heather Woodruff replied they had started counting the signatures today.
Alderman Williams asked Mr. Gilliam if Marilyn Johnson-Snapp had counted the signatures.
Mr. Gilliam answered yes.
Alderman Schaper asked City Clerk Heather Woodruff how long it would take to verify the
signatures.
City Clerk Heather Woodruff replied three days.
Alderman Daniel replied that she would be hesitate to pass the resolution tonight.
Alderman Pettus remarked the resolution was to place the petition on the ballot.
City Attorney Rose read the ordinance.
Alderman William asked if the resolution would automatically be placed on the ballot after the
City Clerk verified the signatures.
City Attorney Rose replied that was correct.
Alderman Williams made the motion to suspend the rules and go to the second reading.
Alderman Miller second the motion. Upon roll call the vote passed 7-0-0.
City Attorney Rose read the ordinance.
Alderman Miller made the motion to suspend the rules and go to the third reading.
Alderman Pettus second the motion. Upon roll call the vote passed 7-0-0.
Mayor Hanna asked for comments.
Mayor Hanna called for the vote. Upon roll call the vote passed 7-0-0.
ORDINANCE 4118 AS RECORDED IN THE CITY CLERK 'S OFFICE.
SUTTON PARK VETO: Mayor Hanna introduced the Sutton Park Veto pursuant to ACA
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AUGUST 18, 1998
Section 14-43-504 the Mayor' s veto of Ordinance No. 4110. An ordinance authorizing Eminent
Domain Proceedings for the City to obtain land for park purposes which is located in the 400
Block of Sutton Street.
Mayor Hanna called for any motions.
Alderman Miller went on the record as saying that he was disappointed in the way things turned
out and that it was time to move forward.
Alderman Schaper commented there was not enough votes to override the Mayor' s veto. He
addressed the many calls and letters received concerning this ordinance.
Mayor Hanna replied the rules stated that the Council could override the veto or let the veto lay.
No motion was made to override the veto. The veto was let lay.
NO ACTION TAKEN.
ANNOUNCEMENTS & ADJOURNMENT
Mayor Hanna adjourned the meeting at 7: 55.
12
IIID8
RESOLUTION NO .
RESOLUTION OF THE CITY OF FAYETTEVILLE , ARKANSAS
ARKANSAS , CERTIFYING LOCAL GOVERNMENT ENDORSE -
MENT OF HANNA ' S POTPOURRI SPECIALTIES , INC .
TO PARTICIPATE IN THE ADVANTAGE ARKANSAS PROGRAM
(ALSO KNOWN AS THE ARKANSAS ENTERPRISE ZONE PRO -
GRAM - ACT 947 OF 1993 ) .
WHEREAS , the local government must endorse a business
to participate in the Advantage Arkansas Program and benefit
from the refunds / tax credits as provided in the Arkansas
Enterprise Zone Program Regulations of 1993 ; and
WHEREAS , said endorsement must be made on specific
form available from Arkansas Economic Development Commission ;
and
WHEREAS , Hanna ' s Potpourri Specialties , Inc . has
sought to participate in the program and more specifically
has requested benefits accruing from construction of the
specific facility ; and
WHEREAS , Hanna ' s Potpourri Specialties , Inc . has
agreed to furnish the local government all necessary
information for compliance .
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF FAYETTEVILLE , ARKANSAS THAT :
Section 1 . That Hanna ' s Potpourri Specialties , Inc .
be endorsed by the City Council of the City of Fayetteville ,
Arkansas for benefits from the refunds / tax credits as pro -
vided in the Arkansas Enterprise Zone Program Regulations of
1993 , through June 30 , 2001 .
Section 2 . That the Department of Finance and
Administration be authorized to refund local sales and use
taxes to Hanna ' s Potpourri Specialties , Inc .
Section 3 . That this resolution shall take effect
immediately.
PASSED AND APPROVED THIS DAY OF , 1998 .
APPROVED :
BY :
Fred Hanna , Mayor
ATTEST :
BY :
Heather Woodruff , City C er
FAYETTEVILLE IIB 3
THE CITY OF FAYETTEVILLE, ARKANSAS
DEPARTMENTAL CORRESPONDENCE
To: Mayor Fred Hanna, Fayetteville City Council and Advertising 8t Promotion
Commission Members
From: Ben R. Mayes, Administrative Services Directoruyv�%.
Date: August 27, 1998
Subject: Town Center Lease Agreement
Attached you will find an updated copy of the Lease 8E Agreement for the Town Center. All
agreed upon changes have been made and are reflected by shaded areas (for additions) and
strikeouts (for deletions)
Those sections which show additions and/or deletions are as follows:
Section 202 .
Section 402 .
Section 403.
Section 503.
Section 506.
Section 507.
Section 508.
Section 1101 .
If you have any questions, call me at 575-8330.
IIB4
LEASE AND AGREEMENT
Between
CITY OF FAYETTEVILLE, ARKANSAS
and
ADVERTISING AND PROMOTION COMMISSION
of the CITY OF FAYETTEVILLE, ARKANSAS
Dated as of
LEASE AND AGREEMENT IIBS
TABLE OF CONTENTS
ARTICLE 1
DEFINITIONS
Section 101 Definitions
ARTICLE II
DEMISING CLAUSES, DURATION OF LEASE TERM
AND RENTAL PROVISIONS
Section 201 Demise of Leased Premises
Section 202 Term of Lease and Agreement
Section 203 Basic Rent; Additional Rent
ARTICLE III
INSURANCE
Section 301 Insurance Required
ARTICLE IV
REPAIRS AND MAINTENANCE OF
LEASED PREMISES AND ALTERATIONS
Section 401 Lessee Obligated to Maintain Improvements
Section 402 Lessee Has Right to Make Additions,
Alterations and Changes
Section 403 Structural Improvements and Alterations Become
Property of Lessor; Machinery, Equipment and
Other Property Installed at Lessee's Expense Remain
Its Property With Right of Removal
Section 404 Lessee to Pay Public Utility Charges
IIB6
ARTICLE V
USE OF LEASED PREMISES -
COMPLIANCE WITH ORDERS, ETC,
Section 501 Permitted Use of Leased Premises and
Compliance With Laws, etc.
Section 502 Use by Local Groups
Section 503 Operating charges, revenues and costs of the Project
Section 504 Compliance with City/County Tourist Meeting and Entertainment
Facilities Assistance Law
Section 505 Compliance with Internal Revenue Code of 1986
Section 506 Compliance with Freedom of Information Act
Section 507 Annual report requirement and City Council review
ARTICLE VI
LESSOR MAY PERFORM LESSEE'S OBLIGATIONS
Section 601 Lessor May Perform Lessee's Obligations;
Lessee to Reimburse Lessor for Costs and
Expenses Incurred in Doing So
ARTICLE VII
INSPECTION OF LEASED PREMISES
BY LESSOR AND TRUSTEE
Section 701 Lessor and Trustee to Have Right of Inspection
and Right to Perform Work Subject to Certain
Restrictions
ARTICLE VIII
DAMAGE AND DESTRUCTION
Section 801 Lessee to Restore in Event of Damage or Destruction;
Application of Insurance Moneys
ARTICLE IX
ASSIGNMENT
Section 901 Assignment and Subletting Permitted But Lessee
Not Relieved of Obligations.
IIB7
ARTICLE X
DEFAULT PROVISIONS
Section 1001 Events of Default
Section 1002 Remedies
Section 1003 Remedies Not Exclusive
Section 1004 Rental, Damages and Reletting Handled as
Provided in Lease and Agreement and Indenture
ARTICLE XI
NOTICES
Section 1101 Notices
ARTICLE XII
GENERAL
Section 1201 Arkansas Law Applicable
Section 1202 Severability
Section 1203 Provisions Binding on Successors and
Assigns
Section 1204 Lease Agreement Constitutes Entire Agreement
Section 1205 Lease Agreement Not to Waive Sovereign
Immunity
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IIB8
LEASE AND AGREEMENT
This LEASE AND AGREEMENT made as of , by and
between the CITY OF FAYETTEVILLE, ARKANSAS ("Lessor" or "City") and the
ADVERTISING AND PROMOTION COMMISSION OF THE CITY OF
FAYETTEVILLE, ARKANSAS ("Lessee" or "Commission");
WITNESSETH:
1 . WHEREAS, Lessor is a duly organized and existing municipality, a city of the first
class, under the laws of the State of Arkansas with full and lawful power and authority to
enter into this Lease and Agreement; and
2 . WHEREAS, Lessee is authorized under the laws of the State of Arkansas to enter
into this Lease and Agreement and to perform all covenants and obligations on its part and
to be performed under and pursuant to this Lease and Agreement; and
3. WHEREAS, at a special election held on August 5, 1997 the electors of the City
approved the issuance of a $6,950,000 bond issue to finance the construction of the
Fayetteville Town Center as a new, multi-purpose, civic center for meetings, conventions,
exhibitions, entertainment events, related uses and parking; and
4. WHEREAS, the Bonds are issued by the City but are largely/primarily to be funded
by the Advertising and Promotion Commission through the pledge of the City's one cent
Hotel and Restaurant Gross Receipts Tax approved by the voters in 1977; and
5 . WHEREAS, the Commission agrees to contribute $ 1 ,000,000 toward the
construction of the Town Center; and
6. WHEREAS, upon completion, the Town Center will be owned by the City; and
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II139
7. WHEREAS, the Commission is willing to manage the Town Center and to assume
the financial burden, if any , incurred in such management for the purpose of fulfilling their
statutory purpose of advertising and promoting the City and for maintaining and operating
a convention center and/or tourist promotion facility in the City; and
8. WHEREAS, the City believes it is in the best interests of the citizens of Fayetteville
for the Commission to manage the Town Center on behalf of the City,
NOW, THEREFORE, for valuable consideration, receipt of which is hereby
acknowledged by Lessor and Lessee, and in consideration of the mutual benefits and
covenants herein contained, Lessor and Lessee AGREE as follows:
ARTICLE I
DEFINITIONS
Section 101 . In addition to the words and terms elsewhere defined in this
Lease Agreement, the following words and terms as used in this Lease Agreement shall
have the following meanings unless the context clearly indicates a different meaning or
intent:
"Bonds" - The City of Fayetteville, Arkansas Hotel and Restaurant Gross
Receipts Tax Bonds, Series 1998, issued under and secured by the Indenture, to provide
funds to construct and equip the Project. .
"Indenture" or "Trust Indenture" - the Trust Indenture and First
Supplemental Trust Indenture between the City and the Trustee, which sets forth the
details pertaining to the Bonds, the nature and extent of the security and the rights, duties
and obligations of the City, the Trustee and the holders and registered owners of the Bonds
and the terms under which the Bonds are secured.
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11B10
"Lease Agreement" - The within Lease and Agreement.
"Lease term" or "Term" - the term of the Lease Agreement set forth in
Section 202 .
"Leased Premises" - the lands, buildings, improvements, and facilities covered
by the Lease Agreement and defined in Section 201 hereof.
"Lessee" - the Advertising and Promotion Commission of the City of
Fayetteville, Arkansas.
"Lessor" - The City of Fayetteville, Arkansas, a city of the first class and
located in Washington County, Arkansas.
"Project" - The lands, buildings, improvements, and facilities constituting a
multi-purpose civic center for meetings and conventions, exhibitions, entertainment events
and related uses, and related parking facilities, collectively to be known as the Fayetteville
Town Center financed out of proceeds of the Bonds and other monies and leased under
this Lease Agreement. The lands included in the Project are described as Exhibit A
attached hereto.
" Rent" or "Rents" - the Basic Rent (provided for in Section 203 (a) hereof)
and the Additional Rent (provided for in Section 203 (b) hereof), unless the context
clearly indicates both are not intended.
"Trustee" - The Trustee for the time being, whether original or successor
with the original Trustee being Bank of Oklahoma, N.A., Tulsa, Oklahoma who is a party
to the Indenture.
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