HomeMy WebLinkAbout1998-09-15 - Agendas - Final AGENDA
FAYETTEVILLE CITY COUNCIL MEETING
SEPTEMBER 15, 1998
A meeting of the Fayetteville City Council will be held on September 15, 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:
NOMINATING COMMITTEE REPORT
I. CONSENT AGENDA
A. APPROVAL OF MINUTES: Approval of minutes from September 1 and September
8, 1998 meetings.
B. FIRE STATION: A resolution approving a contract change order with Wittenberg,
Delony and Davidson, Inc. in the amount of $37,561 . 13 for additional fees for Fire
Station #6 (Hollywood) and Fire Station 44 (Plainview). The additional fees reflect the
increase in estimated cost for the prototype fire station.
C. BID 98-65: A resolution awarding Bid 98-65 to Harrison Davis Construction Company
for the construction of Fire Station #6 located at 900 Hollywood St. and the approval of
a contingency and a budget adjustment.
D. OFF-LOADING FACILITY: A resolution approving the lowest qualified bidder for
the construction of an off-loading facility for the Solid Waste Division and approval of
a budget adjustment.
E. AIRPORT HANGER: A resolution approving a contract with Garver & Garver
Engineers in the amount to $26,300.40 to administer and oversee the construction of
an eight-bay T-hanger for the airport.
II. OLD BUSINESS:
A. TOWN CENTER BOND ISSUANCE: An ordinance providing for the execution of
documents needed to complete the issuance of the Hotel and Restaurant Gross
Receipts Tax Bonds, Series 1998, the proceeds of which will be used to partially
fmance the construction of the Town Center and Parking Garage on the south side of
the downtown square. In addition, the City Council is requested to grant the authority
for the Budget Coordinator to execute any budget adjustments necessary to recognize
the bond proceeds and bond issuance cost. The item was tabled at the April 21 , 1998
meeting after its second reading.
III. NEW BUSINESS:
A. SEWER REHABILITATION: A resolution approving the construction contract for
sewer rehabilitation with Building and Utility Contractors in the amount of $ 1 , 127,809
and a contingency of $56,390.
B. COST SHARE: A resolution approving a "50/50" cost-share with Ben Caston of
Caston Construction for the construction of a 28 foot local street as recommended by
the Planning Commission for the Barrington Parke Subdivision Phase II.
C. PRIVATE CONCERNS: A resolution prohibiting the City from inquiring into private
concerns of its employees and prospective employees regarding non-job related
activities and private beliefs.
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 next City Council Agenda Session. For further assistance, please contact
Heather Woodruff, City Clerk, at 575-8323.
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FINAL AGENDA INFORMATION
FOR
SEPTEMBER 15, 1998
CITY COUNCIL MEETING
Given out at agenda session:
a) Budget Adjustment Form for fire station
Number this I.C.4.
b) Private Concerns Resolution
Number this III.C. 1 .
Attached here:
a) Final Agenda
b) September 1 , and September 8 minutes
c) Map for Cost Share
Number this Ill.B. 12
A MEETING OF THE FAYETTEVILLE CITY COUNCIL
A meeting of the Fayetteville City Council was held on Tuesday, September 1 , 1998, at 6:30 p.m., in
the Council Room of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas.
PRESENT: Mayor Fred Hanna, Aldermen Donna Pettus, Kit Williams, Heather Daniel,
Cyrus Young, and Trent Trumbo, City Attorney Jerry Rose, City
Clerk/Treasurer Heather Woodruff, staff, press, and audience.
ABSENT: Aldermen Stephen Miller and Len Schaper were absent.
Mayor Hanna called the meeting to order with five aldermen present.
CONSENT AGENDA
MINUTES: Approval of the minutes from the meeting of August 18, 1998
BID 98-72: A resolution awarding Bid 98-72 to Smith Two Way Radio for seven Panasonic laptop
computers plus three docking stations for $23,458. 39 and Office Imaging for 16 Rocky II laptop
computers, plus three docking stations for $103,231 . 18 and approval of budget adjustment.
AIRFIELD LIGHTING PROJECT: A resolution approving a FAA Airport Improvement Project
Grant. The funds will cover Phase 1 of the Airfield Lighting Rehabilitation Project, the Runway
Approach Obstruction Location System, and the Pavement Management System.
SUBSTATION GRANT: A resolution approving a grant offer from the FAA, which will partially
fund the construction of an Aircraft Rescue and Firefighting Station.
Alderman Kit Williams moved to approve the Consent Agenda. Alderman Daniel seconded the
motion. The motion carried with a vote of 5-0-0.
OLD BUSINESS
RZ-98-14 00: Mayor Hanna introduced an ordinance rezoning 3 .07 acres located at 4070 Huntsville
Road from A-1 . Agricultural, to R-S, Residential Small Lot. The request was submitted by Jack Butte
on behalf of Paul and Geraldine Bond. The ordinance had been left on the second reading at the
August 18th meeting.
City Attorney Jerry Rose read the ordinance.
No public comments.
Mayor Hanna called for the vote on the rezoning. Upon roll call the ordinance passed 5-0-0.
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SEPTEMBER 1 , 1998
LEASE AGREEMENT: Mayor Hanna introduced a resolution approving the lease agreement
between the City of Fayetteville and the Advertising and Promotion Commission for the Town Center.
Mr. Ben Mayes, Administrative Services Director, stated copies of the lease agreement were sent out
after the joint meeting between the City Council and the A & P Commission.
Alderman Pettus stated some of the Councilmen were concerned with the definition of the word
satisfactory. She substituted the words Prudent Man Rule from the Arkansas Code. Which basically
states the A & P Commission would operate the business as any ordinary prudent man would manage
his finances.
Alderman Daniel asked the Council to consider the possibility of reserving a certain number of hours
for non-profit groups per year.
Mayor Hanna replied he did not think that could be added legally to the language of the lease because
of the bond issue.
Mr. Mayes explained a room or specific number of hours could not legally be set back for non-profit
groups. In order to reserve a room for the exclusive use of non-profit organizations, the City would
have to build or finance the room with City money. Bond Money could not be used for this purpose.
Alderman Daniel expressed her desire to finance a room. She stated most non-profit groups did not
usually need a monthly meeting space. They needed space to hold fund raisers, which required more
space and planning time.
Mayor Hanna stated the City Council and the A & P Commission were working toward the same goal.
Alderman Williams made a motion to amend Sections 502 and 503 replacing 501C3 with local
non-profit community groups. Alderman Young second the motion.
Alderman Trumbo replied he thought the amendment would not have enough control over non-profit
groups and requested the wording not be changed.
Alderman Pettus argued the time limits which stated the room could only be reserved thirty days in
advance would establish the necessary control.
Alderman Young agreed. He stated the non-profit groups would only use the Town Center for
banquets, perhaps once a year.
Mr. Joe Fennel, A & P Commission Chairman, stated he liked the wording, but would like to see more
control over the non-profit groups.
Alderman Young stated the lease had a provision which would allow the A & P Commission to change
the lease.
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SEPTEMBER 1 , 1998
Alderman Daniel expressed her concern that thirty days was not enough to time for the non-profit
groups to organize a banquet.
Alderman Pettus asked how much income the City received from the parking lots where the Town
Center would be located.
Mr. Mayes stated there were approximately ninety spaces which rented for approximately twenty
dollars each per month.
Alderman Pettus questioned if the parking spaces would be under the control of the A & P Commission
after the Town Center was constructed.
Mr. Mayes replied the Town Center & Parking Deck would be constructed on top of the existing
parking lot which would be managed by the A & P Commission.
Alderman Pettus asked if there would be any remaining parking spaces or would the Town Center and
parking deck cover the entire area.
Mr. Mayes replied yes, it would take up the entire existing parking lot.
Alderman Pettus asked if there would be charges to park on the parking deck and if the income from
those charges would go to the A & P Commission. She also asked if the funds would be dedicated to
the bonds.
Mr. Mayes replied yes to the first two questions and stated that the funds would first go to the operation
of the Town Center and parking deck and if there was any money left, then it would be pledged to the
bonds.
Alderman Pettus asked if the A & P could use the money for other projects.
Mr. Mayes replied if the money was pledged to the bonds, then they had to pay on the bonds first. He
deferred to City Attorney Rose for further comments.
City Attorney Rose replied he did not know the answer to the question and would find the information
and would give it to the Council members.
Alderman Pettus expressed her desire to see the funds go to pay for the bonds and asked if the public
would be allowed to use the parking deck.
Mr. Mayes replied the operating revenues of the Center were pledged to the bonds. The City was
leasing the Town Center and the parking deck to the A & P Commission. They would operate the deck
and the Center.
Alderman Williams stated the need for the public to use the facility and the wording of the lease did not
make this issue clear.
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SEPTEMBER 1 , 1998
Alderman Pettus stated she was concerned about the parking issue and hoped the parking deck would
be available to the public. She asked if anyone had spoken with the Bond Council about why the lease
had to be done first before the bonds could be voted on.
City Attorney Rose replied Bond Council stated it was more a matter of common sense than a legal
issue. They wanted to ensure that the Center would be used in the manner in which the voters had
chosen it to be used.
Mayor Hanna called for the vote on Alderman Williams amendment Upon roll call the
amendment failed 3-2-0. Aldermen Daniel and Trumbo voted nay.
Alderman Williams commented the lease did not set forth any goals. He suggested three goals
a)tourism, b) pay debts on time and c)serve the Fayetteville community to be modified in a report
which documented how the Town Center had been managed. If lessee failed to accomplish one of the
three goals that the lessee shall be given written notice of such failure and a special review to determine
if corrective action needed to be taken.
Alderman Pettus and Alderman Trumbo agreed with this suggestion. Alderman Daniel disagreed.
Alderman Young asked if the resolution was going to be voted on at this meeting.
After discussion on this subject, Alderman Trumbo expressed his desire to vote on the resolution.
Alderman Daniel suggested a special meeting.
Alderman Williams suggested the bonds be placed on the next agenda and be voted on after they voted
on the lease.
Mr. Rose replied the A & P Commission had to approve the changes that Council wanted to make.
Alderman Williams remarked he thought the changes went to the A & P Commission before City
Council saw them.
Mr. Rose stated if the Council would give his office the proposed changes he would forward them to
the A & P Commission.
Mr. Mayes stated there was a thirty day waiting period on the bonds, even if City Council passed the
resolution. He further stated this waiting would give the A & P time to act upon the agreement.
Mayor Hanna requested a special meeting to be set on Tuesday, September 8, 1998, for the lease
issues. He asked for public comment.
Mr. Fennel stated he and the A & P Commission would like to see a final draft of this agreement.
Mr. Tex Trumbo, area resident, stated he disagreed with the lease agreement. He argued the people
4
SEPTEMBER 1 , 1998
did not vote for a convention center. They voted for a Town Center. He remarked it was after the vote
that people realized it was a convention center. He reiterated this was not what the voters wanted.
Only 10% of the people voted on this issue. He remarked the HMR tax was paid by the restaurants,
hotels, and motels of the community. He stated this tax was not a tax on tourists, but on the
Fayetteville residents and people who worked in Fayetteville. He commented the people had believed
that the Town Center was to be used by the residents of Fayetteville not the tourists. He felt the needs
of the Public should to be addressed before the needs of the tourists.
Mr. Jim Bemis, area resident, stated he had been following this Council closely and admired the
Council in terms of how they handled issues without losing their tempers. He handed out and read the
Public Forum, the results of the Public Forum and the sub-committee meetings regarding the Town
Center. He commented he had not heard any discussion on whether drinks would be allowed on the
premises of the Center. He stated he did want to see a Town Center, but disagreed with a Convention
Center.
Mr. Jeff Erf, area resident, commented on the 501 C3 non-profit status. He was afraid it would restrict
the number of groups who would use the facility. This would cause fewer people to come to the square
and shop. He requested the Council think about this before their special meeting next Tuesday.
Mr. Mayes disagreed with Mr. Tex Trumbo. The people did know the Town Center was going to be
used as a convention center. He stated in all the planning and the meetings it was clearly stated the
town center could not be used exclusively for a Town Center.
Mayor Hanna stated that in the ballot the Fayetteville Town Center would be constructed to be a multi-
purpose Civic Center for meetings, conventions, etc.
City Attorney Rose read the ballot.
No action was taken on the lease agreement.
NEW BUSINESS
STREET RENAMING: Mayor Hanna introduced 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, Fayetteville real estate attorney.
Mr. Mark Denniston stated he was the only property owner on the street. He urged the Council to
consider this resolution for two reasons. The first reason being there were two streets with "Crest" in
their names. The second reason was that Glen Wing was a respected citizen and attorney. He felt the
Council would be honoring his memory with this street change.
Alderman Williams made the motion to accept the resolution. Alderman Pettus second the
motion. Mayor Hanna called for the roll. Upon roll call the vote was 4-1-0. Alderman Daniel
voted nay. Mayor Hanna was called upon to vote. The resolution passed with a 5-1-0 vote.
Alderman Daniel voted nay.
5
SEPTEMBER 1 , 1998
ILLEGAL PARKING: Mayor Hanna introduced an ordinance prohibiting illegal parking in Handicap
parking areas and proscribing penalties.
Alderman Pettus stated this ordinance tracked the state law. She commented this would give the Police
an option of ticketing individuals who parked illegally in Handicap spaces.
City Attorney Jerry Rose read the ordinance.
Alderman Daniel asked how the proposed ordinance differed from current ordinances.
Alderman Pettus stated there was no ordinance on this issue, only the State Law.
Alderman Daniel asked if there were any fines and if this ordinance would apply to business parking
lots.
Alderman Pettus replied the fines were set by the State and the ordinance would apply wherever the
City of Fayetteville was allowed to give tickets.
Alderman Pettus took the opportunity to bring everyone up to date about the committee. She
commented on the good work Ms. Hendricks had done for the committee. One the duties of the
committee is to notify and draw up notices and documents for businesses. The committee along with a
group of citizens had purchased audible signals at intersections for people who are sight impaired. The
signal sounds a chirping sound when the light changes so they could cross the street. The committee
was currently working on a pamphlet entitled Access Fayetteville which would spotlight restaurants,
hotels, motels and recreational facilities which were accessible to the handicap.
Alderman Trumbo made a motion to suspend the rules and go to the second reading of the
ordinance. Alderman Pettus second the motion. Upon roll call with Mayor Hanna's vote the
motion passed with a vote of 6-0-0.
City Attorney Jerry Rose read the ordinance.
Alderman Pettus made a motion to suspend the rules and go to the third and final reading of the
ordinance. Alderman Daniel second the motion. Upon roll call the motion carried with a vote of
6-0-0.
City Attorney Jerry Rose read the ordinance.
Mr. Randy Zurcher stated the ordinance was a good one, however there was only one apartment
complex in the City that was ADA accessible. If the City was going to become ADA accessible, the
City needed to require developers to build them to ADA standards. He commented the sidewalks in
the downtown section of the City needed to be kept up. He thought this was a good start.
Alderman Trumbo replied most banks required developers to include ADA standards in their building
plans. He asked Ms. Little if the City had such a rule.
6
SEPTEMBER 1 , 1998
Alderman Pettus stated the Inspection Department did provide guidelines and notices to all new
developersso they know what they have to comply with ADA guidelines.
Ms. Little added any apartment complex that has any Federal money associated with it, must be ADA
accessible. She also stated if any person wanted an ADA accessible apartment, it was the owner's
responsibility to make it ADA accessible.
Alderman Williams stated the City was working on improving the downtown sidewalks.
Mr. Zurcher asked if anyone could remember a fine being given out to a developer for not meeting 1
these guidelines.
Mr. Venable commented the ADA guidelines come under the Fair Housing Act from the Department
of Justice not the City of Fayetteville.
Upon roll call with Mayor Hanna's vote the ordinance passed with a vote of 6-0-0.
RA L • Mayor Hanna introduced a resolution approving a contract in the amount of $28,000.00 with
Garver & Garver for a Runway Approach Obstruction Location System.
Mr. Dale Frederick, Airport Administrator, stated the new equipment would take the Airport out of the
dark ages and into the Twentieth Century. He stated this would allow the Airport to identify and locate
obstructions surrounding the runway especially during approaches. He introduced Mr. Griffin with
Garver & Garver.
Mr. Griffin stated Garver & Garver was primarily an engineering design firm. He introduced Mr.
Johnson who demonstrated how the system worked.
Alderman Daniel asked what happened if some of the obstacles were on private property.
Mr. Griffin replied the Airport would work with the property owner, either allowing them to be
enumerated for the removal those obstructions or by obtaining an aviation easement over the land.
Alderman Daniel asked if the $28,000.00 would cover updating the system.
Mr. Griffin replied no, but they would show the Airport personnel how to update RAOLS.
Alderman Trumbo asked Mr. Frederick if this was a requirement of the FAA.
Mr. Frederick replied it was not required, but it would improve the safety of the Airport's runway.
Alderman Williams made the motion to pass the resolution. Alderman Pettus second the
motion. Upon roll call the resolution passed with a 5-0-0 vote.
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SEPTEMBER 1 , 1998
HANNA'S POTPOURRI SPECIALTIES• Mayor Hanna introduced 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).
Mr. Jim Crider, Fayetteville Chamber of Commerce, stated the Chamber of Commerce sponsored the
application of Hanna's Potpourri to participate in this project. He explained Hanna's had out grown
their facilities and wanted to expand and hire an additional two hundred employees.
Alderman Daniel express her support for the business.
Alderman Trumbo stated Hanna's was going to add a day care system plus hire more employees.
Alderman Daniel made a motion to pass the resolution. Alderman Trumbo second the motion.
Upon roll call the resolution passed with a 5-0-0 vote.
DRUG TESTING: Mayor Hanna introduced 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.
Alderman Trumbo stated he introduced the resolution because the Fayetteville schools and several of
the City' s departments had random drug testing. He had been asked by citizens if the City Council also
had random drug testing. He felt if the City was going to ask its employees and school children to be
tested, the leaders of the City should fall under the same rule.
Alderman Pettus asked if the Fayetteville School Board volunteered to do mandatory drug testing.
Alderman Trumbo replied no, but if asked they probably would be willing too.
Alderman Williams read a prepared statement voicing opposition to the resolution and stated he hoped
every Alderman on the Council would vote against the resolution.
Alderman Trumbo stated he respected Alderman Williams comments. He asked Alderman Williams
for "discussion purposes" what was the difference in testing the school students and testing the
Aldermen.
Alderman Williams replied he was against random drug testing for anyone. However, he was not
against drug testing an individual who had reasonable cause to be tested.
Alderman Trumbo asked City Attorney Rose what would be the procedure for the City to stop
mandatory random drug testing its employees. He stated random drug testing employees had not been
brought before the Council.
Mr. Rose stated it was a mayoral declaration.
Mr. Mayes explained the recommendation had come from the Safety Committee Volunteer employees.
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SEPTEMBER 1 , 1998
It had been highly recommend by City employees and passed on to the Personnel Department
requesting a random drug testing policy. A policy was then put together and was presented to the
City's department heads. The Division heads then passed the policy which was signed by Mayor
Hanna.
Alderman Pettus stated she agreed with Alderman Williams. She felt insulted. It was an invasion of
privacy. She stated she would vote against the resolution.
Alderman Young commented mandatory random drug testing did not really address the problem of!
drug abuse. He asked who was tested for drugs in the City's government.
Mr. Mayes replied all the Department of Transportation employees are required by Federal Law to be
tested. The Safety Committee had recommended that all City employees be tested. Mr. Rose helped
with the research and found only employees that were considered "safety sensitive" could be tested.
This term is defined in the Drug Policy. He stated there was 443 employees that are randomly tested.
Mr. Kyle Russell, an area resident, stated it was wrong to ask someone to a take a drug test unless there
was reasonable cause. He further stated to participate in a random drug test was making an individual
prove his or her innocence.
Mr. Zurcher stated he was adamantly against this resolution.
Mr. Mayes stated the City's drug policy was a good policy and that the employees set up the policy
themselves. He commented anyone not passing the drug test was referred to a substance abuse
professional.
The motion died for a lack of a second.
ADJOURNMENTS AND COMMENTS
The meeting adjourned at 8:20 P. M.
9
A MEETING OF THE FAYETTEVILLE CITY COUNCIL
A meeting of the Fayetteville City Council was held on Tuesday, September 8, 1998, at 4 :30 p.m. ,
in Room 326 of the City Administration Building, 113 W. Mountain, Fayetteville, Arkansas.
PRESENT: Mayor Fred Hanna, Aldermen Trent Trumbo, Stephen Miller, Kit Williams,
Heather Daniel, Cyrus Young, and City Attorney Jerry Rose, City
Clerk/Treasurer Heather Woodruff, staff, press, and audience.
ABSENT: Alderman Len Schaper and Alderman Donna Pettus
Mayor Hanna called the meeting to order with five aldermen present.
OLD BUSINESS
LEASE AGREEMENT: Mayor Hanna introduced a resolution to approve a lease agreement
between the City of Fayetteville and the Advertising and Promotion Commission for the Town
Center.
City Attorney Rose read the changes and introduced Section 507.
Mr. Ben Mayes stated this was the fourth time the lease had been before the Council. He said all
the changes had been incorporated into the lease with the exception of Section 507.
Alderman Trumbo stated he thought the City Council and the A & P had work together to reach a
good compromise.
Alderman Williams agreed with Alderman Trumbo. However, he was still in favor of changing
the terminology of 501 -C3 non-profit groups to community non-profit groups.
Alderman Miller asked Alderman Williams if it was just the language he wanted to change.
Alderman Williams replied yes, he just wanted to make the lease more accessible to community
non-profit groups.
Alderman Daniel asked what defined a non-profit group.
Alderman Williams suggested it be left up to the tenants of the Town Center to decide what was
or was not a non-profit group. He stated the Center was not set up to be a monthly meeting place
for non-profit groups. He further commented the groups would probably only hold yearly
banquets in the Center.
Alderman Trumbo asked if the A & P Commission or the City of Fayetteville had a process for
appealing a denial of non-profit status.
Alderman Williams thought the A & P Commission should deal with appeals. He stated the City
could comment at the Yearly Review Session,
Mayor Hanna asked Alderman Williams if his amendment for Section 503 was to delete the 503-
C3 and replace that with non profits.
Alderman Williams replied non-profit community groups.
City Attorney suggested non-profit community groups located in the City of Fayetteville.
Alderman Williams said yes.
Alderman Williams moved to amend Section 503 to delete 503-C3 non-profit groups and
replace with non-profit community groups. Alderman Young second. Upon roll call the
vote was 4-1-0. Alderman Daniel voting nay. Mayor Hanna was called upon to vote. The
amendment passed with a vote of 5-1-0. Alderman Daniel voting nay.
Alderman Trumbo moved to approve the Lease Agreement, Alderman Williams second
the motion. Upon roll call the resolution passed 5-0-0.
ADJOURNMENT AND COMMENTS
The meeting adjourned at 5: 10 P. M.
ADDITIONAL INFORMATION FOR FINAL
AGENDA SEPTEMBER 15, 1998
Attached here :
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Preliminary Pricing
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Presentation
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City of Fayetteville , Arkansas
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• `�J � �MPAY September 15 , 1998 Stephens, Inc.
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• TABLE OF CONTENTS
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• I. Preliminary Term Sheet
• II. Schedule of Events
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• III. Debt Service Numbers
• IV. Current Market Articles
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• DRAFT
PRELIMINARY TERM SHEET
• $699501000
• CITY OF FAYETTEVILLE, ARKANSAS
• HOTEL AND RESTAURANT GROSS RECEIPT TAX BONDS
• SERIES 1998
• 9/11/98 10:59 AM
• FOR INTERNAL USE ONLY — NOT TO BE USED AS AN OFFERING DOCUMENT — ANY
• DLSCREPENCIES BETWEEN THIS DOCUMENT AND THE P/O/S AND THE O/S SHALL BE
• RESOLVED IN FAVOR OF THE P/O/S AND THE O/S.
• PURPOSE: The Bonds are being issued to construct and equip facilities constituting a
• muld-purpose civic center for meeting and conventions, exhibitions,
entertainment events, and related uses, and related parking facilities,
• collectively to be known as the Fayetteville Town Center.
• DATED DATE: November 1, 1998*
•
• TAX STATUS: The Bonds are exempt from federal and state tares and are bank-qualified.
• RATING: A rating on the Bonds has currently not been applied for.
• BONDS: The Bonds are issued in denominations of $5,000 or any integral multiple
• thereof and are book-entry only.
• SCHEDULE: Mail P.O.S. October 26, 1998*
• Pre-Pricing November 2, 1998*
• Pricing November 3, 1998*
• Sign B.P.A. November 4, 1998*
• CLOSING: November 18, 1998*
• EXPECTED
• STRUCTURE: Serial Bonds maturing from 1999 to 2012 with a term due in 2017.*
• INTEREST
• PAYMENT
DATE: Interest on the Bonds is payable each April l and October 1 beginning April 1 ,
• 1999.
•
PRINCIPAL
• PAYMENT
• DATE: Principal on the Bonds is payable each October I beginning October 1, 1999.*
• DSR: The Indenture provides for a debt service reserve fund to be established of an
• amount equal to the lessor of 1) 10% of the par amount 2) the maximum annual
• debt service or 3) 125% of the average annual debt service on the Bonds
outstanding (the 1995 and 1998 Bonds).
•
• Subject to Change
•
•
•
•
•
• SECURITY: The Bonds are secured by the following pledges:
• 1) Amount received by the City from the 1% Hotel and Restaurant Gross
• Receipts Tax:
• 2) Amounts, if any, received by the City from the State as State Turnback
• Revenues:
3) Amounts, if any, received by the City, pursuant to a lease agreement with the
• Board of Trustees of the University of Arkansas, for the Continuing Education
• Center, and;
• 4) Certain amounts on deposit in certain funds and accounts held by the
• Trustee.
• REDEMPTION: Extraordinary Redemption. The Bonds are subject to extraordinary
• redemption, in whole or in part, in inverse order of maturity, at a redemption
price equal to the principal amount thereof, plus accrued interest to the
• redemption date on any Interest Payment Date, from proceeds received from
• insurance in connection with loss, damage or destruction of the Convention
Facilities or any portion thereof in an aggregate amount in excess of $250,000
• not used for restoration or repair of the Convention Facilities on any date on or
• after October 1, 2001 .
• Optional Redemption. The Bonds are subject to optional redemption, in whole
• or in part, on any Interest Payment Date on or after October 1, 2005, at the
redemption prices set forth below, plus accrued interest to the date of
• redemption:
• Redemption Date Redemption Prices
•
• October 1, 2005 to September 30, 2006 101 .0%
October 1, 2006 to September 30, 2007 100.5%
• October 1 , 2007 and thereafter 100.0%
• TRUSTEE: Bank of Oklahoma, National Association, Tulsa, Oklahoma.
• BOND COUNSEL: Mitchell, Williams, Selig, Gates & Woodyard, Little Rock Arkansas.
• SENIOR MANAGER: Llama Company
• CO-MANAGER: Stephens, Inc.
•
• FEATURES: 1) The Bonds are bank-qualified.
• 2) The debt service for the 1998 Bonds are "wrapped around" the debt service
• of the 1995 HMR Bonds that have their final maturity in 2004.
• 3) The Indenture requires that the City maintain a 1 .2x debt cover ratio for the
• Bonds.
• 4) The Hotel and Restaurant Gross Receipts Tae, which acts as the primary
• revenue source for payment of principal and interest on the Bonds, was first
collected in June 1977.
•
• 5) Fayetteville is the sixth largest city in the State of Arkansas.
•
•
•
•
•
• FAYETTEVILLE TOWN CENTER
• PRELE IINARY PROJECT TIME LINE
HMR Tax Revenue Bonds, Series 1998
• 9/14/98 8:40 AM
• DATE ACTION RESPONSIBLE
• PARTY
• 9/14 A&P Approval of the Management Contract A&P
• 9/15 City Council Pass Bond Ordinance FCC,FCS, BC, UC
• 10/23 Print Preliminary Official Statement (P/O/S) UC, U
• 10/26 Mail P/O/S U
11%2 Preliminary Pricing Call FCS, U
• 11/3 Offer the Bonds U
• 11 /4 Sign Bond Purchase Agreement Mayor, BC, U
• 11/17 Pre-Close Bond Issue FCS, BC, U, UC, T
• 11/18 Close Bond Issue FCS, BC, U. UC, T
• December Approve Final Budget, Approve Project for Bid & FCS, FCC
• Construction Documents
•
• FCC Fayetteville City Council
A&P Advertising and Promotion Commission
• A&PS Advertising and Promotion Staff
• FCS Fayetteville City Staff
• BC Bond Counsel
• U Underwriters
UC Underwriter' s Counsel
• T Trustee
• A Architect
•
•
•
•
•
•
•
•
•
•
•
•
•
•
•
• LLAMACOM ANY
• INVESTMENT BANKING
• ASSUMPTIONS
•
• ISSUER: City of Fayetteville
• (Fayetteville A&P Commission)
•
• SERIES 1998
• PROJECT: Town Center
DATED DATE: November 1, 1998
• DELIVERY DATE: November 18, 1998
• ASSUMED RATINGS : Not Rated
•
• TAX STATUS : State and Federal Tax-Exempt, Bank Qualified
• STRUCTURE: Serials maturing through 1999 through 2012
• Term Bond with its final maturity in 2017
FIRST COUPON: April 11 1999
• FIRST PRINCIPAL: October 1 , 1999
• LAST MATURITY: October 1 , 2017
•
• INTEREST RATES : 3 . 90% to 5 .20%*
• CAPITALIZED
• INTEREST: None
• DEBT SERVICE
• RESERVE FUND: Lesser of 1 ) maximum annual debt service on the bonds 2)
• 125% of average annual debt service or 3) 10% of the par
• amount of the bonds outstanding (the 1995 and 1998 Bonds)
• CONSTUCTION
• FUND: D Months; Level Draw beginning 12/1/98
OTHER NOTES
• * -- Interest Rates are based on Current Market Conditions as of September 14, 1998 and
• are subject to change.
•
•
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•
•
• SOURCES AND USES OF FUNDS
• City of Fayetteville, Arkansas
• Hotel , Motel 8 Restaurant Tax Revenue Bonds
(Town Center Project)
• Series 1998
• Dated Date 11 /01 /1998
• Delivery Date 11 /18/1998
• Sources :
•
• Bond Proceeds :
Par Amount 609508000 .00
• Accrued Interest 16 , 130 . 40
609668130.40
• Other Sources of Funds:
• Cash fund 10000, 000 . 00
• 789668130 .40
•
•
• Uses :
• Project Fund Deposits :
Construction Fund 7, 353, 122 . 23
Other Fund Deposits :
Debt Service Reserve Fund 483, 773 . 00
• Accrued Interest 16 . 130.40
499,903.40
• Delivery Date Expenses:
• Cost of Issuance 50, 070. 00
• Underwriter ' s Discount 62. 550. 00
112,620. 00
• Other Uses of Funds :
• Additional Proceeds 484. 77
• 709660130 . 40
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• 14- Sep-98 10 :30 am Prepared by Ltama Company ( Finance 3 . 100 NVARK : FAY-MAX7) Page 1
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• BOND DEBT SERVICE
• City of Fayetteville, Arkansas
• Hotel , Motel 8 Restaurant Tax Revenue Bonds
(Town Center Project )
• Series 1998
• Dated Date 11/01/1998
• Delivery Date 11/18/1998 ,
• Period Annual
• Ending Principal Coupon Interest Debt Service Debt Service
• Nov 18, 1998
• Apr 10 1999 1420327.08 142,327. 08
Oct 10 1999 308000. 00 3 .900% 170, 792 .50 200, 792. 50 343, 119. 58
.• Apr 1 , 2000 170,207.50 170, 207. 50
• Oct 1 , 2000 30, 000 . 00 4 .050% 1708207.50 200, 207. 50 370,415 . 00
Apr 1 , 2001 169,600 .00 169,600. 00
.• Oct 10 2001 30, 000. 00 4 . 150% 169,600 .00 199,600. 00 369, 200. 00
Apr 10 2002 168,977. 50 168,977.50
• Oct 10 2002 35 ,000. 00 4 . 200% 168, 977. 50 203,977.50 372 ,955 .00
Apr 10 2003 168, 242. 50 168, 242 .50
• Oct 1 , 2003 35 , 000. 00 4 . 250% 168, 242. 50 203, 242 .50 371 ,485 .00
• Apr 1 , 2004 167,498. 75 1670498. 75
Oct 1 , 2004 35 , 000 .00 4 .350% 167,498. 75 202,498.75 369,997.50
• Apr 1 , 2005 166, 737. 50 166, 737.50
Oct 1 , 2005 385 ,000 . 00 4 .400% 1660737. 50 551 , 737.50 718,475 . 00
• Apr 1 , 2006 158, 267. 50 158, 267.50
• Oct 1 ; 2006 405 ,000 .00 4. 500% 1588267. 50 563, 267.50 721 , 535 . 00
Apr 1 , 2007 149, 155 . 00 149, 155 .00
• Oct 1 , 2007 425 , 000 .00 4.600% 1490155 . 00 574, 155 .00 723 ,310 . 00
Apr 11 2008 139,380. 00 139,380 .00
• Oct 1 , 2008 440 ,000 .00 4.650% 1390380. 00 579,380 .00 718, 760 . 00
Apr 11 2009 129, 150. 00 129, 150.00
• Oct 11 2009 4656000 .00 4. 750% 129, 150. 00 594, 150 .00 723 ,300 . 00
• Apr 10 2010 118, 106. 25 118, 106.25
Oct 1 , 2010 485 ,000 .00 4.800% 118, 106. 25 603, 106.25 721 , 212 . 50
• Apr 1 , 2011 106,466. 25 1060466. 25
Oct 1 , 2011 510, 000 . 00 4 .900% 106,466. 25 6168466.25 722,932. 50
• Apr 1 , 2012 93,971 . 25 93,971 .25
• Oct 1 , 2012 535 , 000 . 00 4 .950% 93,971 . 25 628,971 .25 722,942. 50
Apr 1 , 2013 808730 .00 800730. 00
• Oct 1 , 2013 560, 000. 00 5 . 200% 80 , 730 . 00 640, 730. 00 7210460. 00
Apr 1 , 2014 66, 170 .00 66, 170. 00
• Oct 1 , 2014 590, 000 . 00 5 . 200% 668170 .00 656, 170. 00 722, 340. 00
Apr 1 , 2015 50, 830 .00 50 , 830 . 00
• Oct 1 , 2015 620, 000 . 00 5 . 200% 50 , 830 .00 6700830 . 00 7210660 .00
• Apr 1 , 2016 34, 710 .00 34 , 710 . 00
Oct 1 , 2016 650 , 000 . 00 5 .200% 340710.00 684 , 710 . 00 719,420 .00
• Apr 1 , 2017 171810.00 17,810 .00
Oct 1 , 2017 685 , 000 .00 5 .200%. 17, 810. 00 702,810 . 00 720,620 . 00
6,950, 000. 00 41625 , 139. 58 11 , 575 , 139. 58 111575 , 139. 58
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• 14-Sep-98 10:30 am Prepared by Llama Company ( Finance 3 . 100 NUARK: FAY-MAX7) Page 2
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• PROJECT FUND
• City of Fayetteville, Arkansas
• NoteL , Motel 8 Restaurant Tax Revenue Bonds
(Town Center Project )
• Series 1998
• Construction Fund (CONST)
•
• Interest Scheduled
• Date Deposit a 4% Principal Draws Balance
• Nov 181 1998 7, 353 , 122 . 23 7,3531122. 23
Dec 1 , 1998 10, 523.88 569, 476. 12 580 , 000. 00 6, 783, 646. 11
• Jan 1 , 1999 220425 .99 557, 574 . 01 580 , 000. 00 6, 226, 072. 10
Feb 1 , 1999 20, 582. 71 559, 417. 29 5800000. 00 5 ,666, 654.81
• Mar 1 , 1999 18, 733.34 561 , 266.66 580 ,000. 00 5 , 105,388. 15
• Apr 1 , 1999 16,877.85 563 , 122 . 15 580 , 000 . 00 4, 542 ,266. 00
May 1 , 1999 15 , 016. 23 564, 983 . 77 580 ,000. 00 31977, 282 .23
• Jun 1 , 1999 130148.46 566, 851 .54 580, 000. 00 30410,430.69
Jul 1 , 1999 11 , 274. 51 5631725 .49 5756000. 00 2,846, 705 . 20
• Aug 1 , 1999 9,410.90 565, 589. 10 575 ,000. 00 2, 281 , 116. 10
Sep 1 , 1999 7, 541 . 12 567, 458.88 575 ,000. 00 1 , 713 ,657. 22
• Oct 11 1999 5 , 665 . 16 569,334 .84 5750000. 00 1 , 144, 322.38
• Nov 1 , 1999 3 , 783.00 571 , 217. 00 575 ,000. 00 573 , 105 .38
Dec 1 , 1999 1 , 894.62 573, 105 .38 575 , 000. 00
• 74353 , 122 . 23 156, 877. 77 7,353 , 122 . 23 71510 ,000. 00 -
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• 14-Sep-98 10 :30 am Prepared by Llama Company ( Finance 3 . 100 NWARK: FAY-MAx7) Page 3
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• RESERVE FUND
• City of Fayetteville, Arkansas
• Hotel , Motel 8 Restaurant Tax Revenue Bands
(Town Center Project )
• Series 1998
• Debt Service Reserve Fund (DSRF )
•
• Interest
• Date Deposit a 4 .75% Principal Debt Service Balance
• Nov 180 1998 4830773 . 00 483 , 773.00
Apr 1 , 1999 80489.54 -8, 489.54 4831773 .00
• Oct 11 1999 11 , 489.61 - 11 ,489.61 483, 773. 00
Apr 1 , 2000 11 , 489.61 - 110489.61 483, 773 . 00
• Oct 1 , 2000 11 ,489.61 - 11 ,489.61 4830773. 00
• Apr 1 , 2001 11 ,489.61 - 11 ,489.61 483, 773. 00
Oct 11 2001 11 ,489.61 - 11 ,489.61 4830773. 00
• Apr 1 , 2002 110489.61 - 118489.61 4838773 .00
Oct 10 2002 11 ,489.61 - 11 ,489.61 483, 773. 00
• Apr 1 , 2003 11 ,489.61 - 118489.61 483, 773 .00
Oct 1 , 2003 11 ,489.61 - 11 , 489.61 4831773 .00
• Apr 1 , 2004 11 ,489.61 - 110489.61 483, 773 .00
• Oct 1 , 2004 11 ,489.61 - 111489.61 483 ,773 .00
Apr 1 , 2005 11 ,489.61 - 11 , 489.61 4830773 .00
• Oct 1 , 2005 11 ,489.61 - 11 , 489.61 4830773 .00
Apr 1 , 2006 110489.61 - 11 , 489.61 483 , 773 .00
• Oct 1 , 2006 11 ,489.61 - 11 , 489 .61 483, 773 . 00
• Apr 1 , 2007 11 ,489.61 - 11 , 489.61 483, 773 .00
Oct 1 , 2007 110489.61 - 11 , 489.61 4836773 .00
• Apr 1 , 2008 11 ,489.61 - 11 , 489 .61 4831773 .00
Oct 10 2008 11 ,489.61 - 11 ,489.61 483 , 773 .00
• Apr 1 , 2009 11 ,489.61 - 11 ,489. 61 483, 773 .00
Oct 1 , 2009 11 ,489.61 - 11 ,489.61 483, 773 .00
• Apr 1 , 2010 11 ,489.61 - 116489.61 483, 773 .00
• Oct 1 , 2010 11 ,489.61 - 11 ,489.61 483, 773 . 00
Apr 1 , 2011 11 ,489.61 - 116489.61 483, 773. 00
• Oct 10 2011 11 ,489.61 - 11 ,489.61 483, 773. 00
Apr 1 , 2012 11 ,489.61 - 11 ,489.61 483, 773. 00
• Oct 1 , 2012 11 ,489.61 - 11 ,489.61 483, 773. 00
• Apr 11 2013 11 ,489.61 - 110489.61 483, 773 . 00
Oct 1 , 2013 118489.61 - 11 ,489.61 4830773 . 00
. • Apr 1 , 2014 11 ,489.61 - 118489.61 4830773 .00
Oct 1 , 2014 11 , 489.61 - 110489.61 483 , 773 .00
• Apr 1 , 2015 11 , 489.61 - 11 ,489 .61 483, 773 .00
Oct 1 , 2015 11 , 489.61 - 110489.61 4836773 . 00
Apr 1 , 2016 11 , 489.61 - 11 ,489 .61 4830773. 00
Oct 1 , 2016 11 , 489.61 - 110489. 61 483, 773. 00
• Apr 10 2017 11 ,489.61 - 116489. 61 483, 773. 00
• Oct 1 , 2017 11 ,489. 61 4831773 .00 -495 , 262 .61
• 4830773 .00 433,605 . 11 483, 773. 00 -917,378. 11
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• 14-Sep-98 10:30 am Prepared by llama Company ( Finance 3 . 100 N4ARK : FAY-MAX7) Page 4
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