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HomeMy WebLinkAbout1999-04-20 - Agendas - Final FINAL AGENDA FAYETTEVILLE CITY COUNCIL APRIL 20, 1999 A meeting of the Fayetteville City Council will be held on April 20, 1999 at 6 :30 p.m. in Room 219 of the City Administration Building, 113 West Mountain Street, Fayetteville, Arkansas. The following items will be considered: A. CONSENT 1. APPROVAL OF MINUTES: Approval of the minutes from the April 6, 1999 City Council meeting. 2. ARKANSAS AVENUE: A resolution approving a budget adjustment and authorizing the Mayor to enter into a cost-sharing agreement with the University of Arkansas for the removal and replacement of the curbs and gutters located on the outside of each lane of Arkansas Avenue between Dickson and Maple Street. 3, BID 99-47: A resolution awarding bid number 99-47 to the selected bidder, who will be determined after the bid opening on April 19, 1999, for the installation of the ultraviolet disinfection system for the Paul R. Noland wastewater treatment facility. 4. INSURANCE POLICY RENEWALS: MOVED FROM NEW BUSINESS, ITEM C. 5 . A resolution to exercise option to renew Blue Cross/Blue Shield, U. S. Able Life, Accidental Death & Dismemberment, and Long Term Disability Group Policies for policy period May 1 , 1999 through December 31 , 1999. There is no increase in premium. Annualized total city contributions for calendar year 1999 will be approximately $ 184,606. B. OLD BUSINESS 1 . HISTORIC DISTRICT COMMISSION: An ordinance approving the amendment of Ordinance 3836 to provide for two additional members to the Historic District Commission for a total of nine members. Item was tabled on the first reading. 2. LAND POSSESSION - RUPPLE ROAD: An ordinance authorizing the City Attorney to seek court-ordered possession of 0. 317 acre of land owned by Tony and Bobbye Hardin, located north of Mt. Comfort Road and west of Salem Road for the purpose of extending Rupple Road from Mt. Comfort Road to the proposed new middle school. Ordinance should also include specific temporary easements. Item was left on the first reading. • Final Agenda City Council Page 2 3. CHIEF EXECUTIVE OFFICER: An ordinance amending Chapter 10, General Provisions, of the Code of Fayetteville, to add Section 10. 13 , Chief Executive Officer, to define miscellaneous powers and duties of the mayor. Item was left on the first reading. C. NEW BUSINESS 1 . STREET NAME CHANGE: A resolution changing the name of Hall Avenue (Highway 112) to Garland to make Garland Avenue the continuous street name south from I-540 to W. Maple Street. 2, CLIFFS BOULEVARD: A resolution approving a budget adjustment, cost share and bid waiver in the amount of $300, 129 for construction of Cliffs Boulevard Phase 2 and Happy Hollow extension south of Cliffs Boulevard with the developers of the Cliffs PUD. 3, PLANNING COMMISSION APPEAL: A request for an appeal of a Planning Commission requirement for the Cliffs Phase 2 Preliminary Plat. 4, DISCUSSION OF ODOR-EMITTING BUSINESSES: A discussion of the permitting process for odor-emitting businesses in Fayetteville, i.e. Bakery Feeds and Hanna' s Potpourri. 5. 1999 WATER & SEWER REFUNDING BONDS: An ordinance that provides for the issuance of Water & Sewer System Refunding Revenue Bonds, Series 1999 in the amount of $8,370,000. All costs associated with the issuance of the bonds will be paid from bond proceeds. The refunding bonds result in an approximate savings of $600,000 to the City. 6, INSURANCE POLICY RENEWALS: MOVED TO CONSENT AGENDA, ITEM AA. 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 . L FINAL AGENDA FAYETTEVILLE CITY COUNCIL APRIL 20, 1999 A meeting of the Fayetteville City Council will be held on April 20, 1999 at 6 : 30 p. m. in Room 219 of the City Administration Building, 113 West Mountain Street, Fayetteville, Arkansas. The following items will be considered : A. CONSENT 1 . APPROVAL OF NIINUTES : Approval ofthe minutes from the April 6, 1999 City Council meeting. 2. ARKANSAS AVENUE: A resolution approving a budget adjustment and authorizing the lviayor to enter into a cost-sharing agreement with the University of Arkansas for the removal and replacement of the curbs and gutters located on the outside of each lane of Arkansas Avenue between Dickson and Maple Street. 3, BID 99-47 : A resolution awarding bid number 99-47 to the selected bidder, who will be determined after the bid opening on April 19, 1999, for the installation of the ultraviolet disinfection system for the Paul R. Noland wastewater treatment facility. 4. INSURANCE POLICY RENEWALS : MOVED FROM NEW BUSINESS, ITEM C. 5 . A resolution to exercise option to renew Blue Cross/Blue Shield, U. S . Able Life, Accidental Death & Dismemberment, and Long Term Disability Group Policies for policy period May 1 , 1999 through December 31 , 1999. There is no increase in premium. Annualized total city contributions for calendar year 1999 will be approximately $ 184,606. B. OLD BUSINESS 1 . HISTORIC DISTRICT COMMISSION : An ordinance approving the amendment of Ordinance 3836 to provide for two additional members to the Historic District Commission for a total of nine members. Item was tabled on the first reading. 2. LAND POSSESSION - RUPPLE ROAD : An ordinance authorizing the City Attorney to seek court-ordered possession of 0. 317 acre of land owned by Tony and Bobbye Hardin, located north otMt . Comtort Road and west of Salem Road ['or the purpose of extending Rupple Road from Mt. Comfort Road to the proposed new middle school . Ordinance should also include specific temporary easements. Item was left on the first reading. Final Agenda City Council Page 2 3, CHIEF EXECUTIVE OFFICER: An ordinance amending Chapter 10, General Provisions, of the Code of Fayetteville, to add Section 10. 13 , Chief Executive Officer, to define miscellaneous powers and duties of the mayor. Item was left on the first reading. C. NEW BUSINESS 1 . STREET NAME CHANGE: A resolution changing the name of Halt Avenue (Highway 112) to Garland to make Garland Avenue the continuous street name south from I-540 to W. Maple Street. 2. CLIFFS BOULEVARD : A resolution approving a budget adjustment, cost share and bid waiver in the amount of $300, 129 for construction of Cliffs Boulevard Phase 2 and Happy Hollow extension south of Cliffs Boulevard with the developers of the Cliffs PUD. 3. PLANNING COMMISSION APPEAL: A request for an appeal of a Planning Commission requirement for the Cliffs Phase 2 Preliminary Plat. 4, DISCUSSION OF ODOR-ENIITTING BUSINESSES : A discussion of the permitting process for odor-emitting businesses in Fayetteville, i. e. Bakery Feeds and Hanna' s Potpourri, S. 1999 NATER & SEWER REFUNDING BONDS : An ordinance that provides for the issuance of Water & Sewer System Refunding Revenue Bonds, Series 1999 in the amount of $8,370,000. All costs associated with the issuance of the bonds will be paid from bond proceeds. The refunding bonds result in an approximate savings of $600,000 to the City. 6. INSURANCE POLICY RENEWALS: MOVED TO CONSENT AGENDA, ITEM A.4 . 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 . AGENDA SESSION DATE: COUNCIL DATE: 9�1 ALDERMEN ELECTED OFFICIALS \�L Robert Reynolds Mayor Hanna \�/ Ron Austin Jerry Rose y Cyrus Young Heather Woodruff Kyle Russle PRESS Trent Trumbo \ V/ NWAT ` 7/l Jze P d &h Bob Davis Vof Morning News Kevin Santos Dem-Gazette Heather Daniels KIX 104 STAFF HANDOUTS Charlie Venable �� h1�For�g Kevin Crossen Don Bunn Nancy Hendricks Alert Little NOTES Steve Davis Yolanda Lana L \ _ -cn, _ � � , �� _ Stephens Inc. ' April 20, 1999 ' The Honorable Fred Hanna, Mayor and City Council ' City of Fayetteville 113 West Mountain Fayetteville, AR 72701 ' RE: $8,3653000 City of Fayetteville, Arkansas Water and Sewer System Refunding Revenue Bonds, Series 1999 ' Dear Mayor Hanna and Council: On behalf of Stephens Inc., 1 am pleased to advise you that we have agreed to underwrite the above referenced bond issue for the City of Fayetteville at an average interest rate of 4.206%. This interest rate will result in a net cost ' savings to the City of $626,243.79 by refunding the City's existing 1992 Water and Sewer Improvement and Refunding Revenue Bonds. Outlined below is a comparison of the City's existing bond issue and the results of this refunding. ' Comparative Analysis t Issue Maturity Interest Rate Total Principal Net Savings & Interest Cost Existing 1992 2012 5.984% $ 121281 ,300.00 N/A ' Series 1999 2012 4.206% $ 11 ,252,316.21 $6269243.79 Refundin ' Following is a Summary Structure and Pricing Report that presents the key components of this transaction. Mr. Gordon Wilboum, with the Kutak Rock law firm, and I will be in attendance during the City's April 20, 1999 ' City Council Meeting to present the necessary bond ordinance to authorize this transaction and achieve the above described savings for the City. If you have any questions concerning this financing, please feel free to contact me. Sincerely, Denn s Hunt DH/kg ' cc: Mr. Kevin Crosson Mr. Gordon Wilboum ' Investment Bankers Executive Square • 21 West Mountain, Suite 300 • Fayetteville, Arkansas 72701 501-521 -4708 Fax 501 -521-6770 1 $8,365,000 City of Fayetteville, Arkansas ' Water and Sewer System Refunding Revenue Bonds Series 1999 Summary Structure and Pricing Report April 20, 1999 Prepared by ' Stephens Inc. 1 1 1 Purpose of Report. To present the pricing and structure for the City of Fayetteville's Water ' and Sewer System Refunding Revenue Bond issue and to detail all costs associated with this financing. ' Trend of Interest Rates. Charted below is an eight week trend of the Bond Buyer's Index of 25 Revenue Bonds (REV DEX). This index is a weekly gauge of the tax-exempt revenue bond market and is comparable in many ways to the Dow Jones Industrial Average. The Bond Buyer's Revenue Bond Index ' Most Recent Eight Weeks 5.50 - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - SAO - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -5.34 ' 5.31 5.30 5.29 5.29 - - - - - -5.29 . _ _ - - 6- - - - - - - - - - - ' Rates 5'23 520 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5.10 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ 5.00 ' 02/18/99 02/25199 03104/99 03111/99 Dates 4/0 03/18/99 03125/99 07/99 04/08199 ' Based on the current tax-exempt market, Stephens has committed to purchase this issue with an average coupon of 4.206% for maturities in the years 1999-2012. Arkansas investors are the primary purchasers of these bonds. ' Sources of Funds ' Par Amount of Bonds $81365,000.00 Existing Funds on Hand 1 ,211 ,200.00 ' Accrued Interest 24.509.40 TOTAL $9.600.709.40 1 Uses of Funds Cost to Retire Bonds $8,629,525 .00 ' Debt Service Reserve 800,000.00 Cost of Issuance 70,000.00 Underwriter's Discount 751285 .00 Accrued Interest 24,509.40 Contingency 1 .390.00 ' TOTAL $9.600,709.40 Description of Financings Components tCosts of Issuance. While these numbers are estimates, they should be close to the actual costs the System will incur. Funds remaining will be applied towards the issue' s first interest and ' principal payment in August of 1999. Bond Counsel (Includes Expenses) $3700.00 ' Trustee (Authentication) 15500.00 Prepaid Escrow & Trustee Fee 6,404.00 ' Rating Expense: Standard & Poor's 92000.00 Rating Expense: Moody's 10,900.00 Ordinance Publication 15500.00 Official Statements 1 ,750.00 Clearing Costs (CUSIP, Ticket Charges, DTC, Day Loan) 1 ,222.00 Miscellaneous 724.00 ' Total Costs of Issuance $701000.00 Underwriter's Discount. In the amount of $9.00 per thousand ($75,285.00), this amount will ' be paid to Stephens Inc. for structuring and marketing the bond issue. Cost to Retire Bonds. This figure is the amount due to call the Series 1992 issue on August 15, 1999 at 103%. This amount will be invested by the Trustee until the call date and investment earnings will be applied towards the first interest payment on the Series 1999 issue. ' Call Provision. Optional beginning August 15, 2004 at par. ' Debt Service Reserve. The Debt Service Reserve will be funded at $800,000.00. Earnings from the reserve fund will be used to pay debt service. Refunding Analysis The following information includes a Savings Report, Sources and Uses of Funds Statement, and Debt Service Schedule for the Series 1999 Bonds. Based on reducing the average coupon on the debt from 5 .984% to 4.206°/%, the net interest cost savings is $626,243.79. 1 ' City of Fayetteville, AR Series 1999 Refunding Issue Savings Report ' - - - - - - - - Proposed Debt Service - - - - - - - - Prior Cumulative Date Principal Coupon Interest Total Debt Service Savings Savings _ _ - - - - - - - " " ' - - - - - - - - - - - - - - " ' - - - " - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8/15/99 100, 000. 00 3 .600000 98,361 .61 198,361 .61 595 , 525 . 00 421 , 753 . 79 10 , 553 . 79 2/15/ 0 168,441 . 25 8/15/ 0 450, 000. 00 3 .600000 168,441 . 25 786,882. 50 8348130 . 00 47, 247. 50 57,801 .29 ' 2/15/ 1 160, 341 . 25 8/15/ 1 465 , 000. 00 3.650000 160,341 . 25 785 ,682. 50 830, 700 .00 45, 017. 50 102, 818. 79 2/15/ 2 151 , 855 . 00 8/15/ 2 485 , 000. 00 3 .650000 151 , 855 . 00 788, 710. 00 835 ,950 .00 47, 240 . 00 150, 058. 79 ' 2/15/ 3 143, 003 . 75 8/15/ 3 500, 000. 00 3. 750000 143, 003 . 75 786, 007. 50 834, 530 .00 48, 522 . 50 198, 581 . 29 2/15/ 4 133 , 628. 75 ' 8/15/ 4 525 , 000. 00 3.900000 1331628. 75 792, 257. 50 840, 110.00 47,852 .50 246, 433 . 79 2/15/ 5 123, 391 . 25 8/15/ 5 545 , 000. 00 3.950000 123,391 . 25 791 , 782 . 50 838, 790.00 476007.50 293, 441 . 29 2/15/ 6 112, 627. 50 8/15/ 6 565 , 000. 00 4 . 000000 112 , 627.50 790, 255 . 00 840 , 327. 50 50, 072 .50 343 , 513 . 79 2/15/ 7 101 ,327.50 8/15/ 7 590, 000 . 00 4 . 050000 101 ,327.50 792,655 . 00 839, 615 . 00 46,960 .00 390, 473 . 79 2/15/ 8 89,380.00 ' 8/15/ 8 615 , 000 .00 4 . 150000 89,380.00 793, 760 . 00 841 ,870. 00 48, 110 . 00 438, 583 . 79 2/15/ 9 76,618.75 8/15/ 9 640, 000 .00 4 .200000 76,618. 75 793 , 237.50 841 ,470. 00 48, 232 . 50 486,816. 29 ' 2/15/10 63, 178.75 8/15/10 665 , 000 .00 4 .250000 63, 178. 75 791 , 357.50 838,657. 50 47,300 . 00 534 , 116. 29 2/15/11 49, 047. 50 8/15/11 695 , 000 .00 4 .350000 49,047. 50 793 , 095 .00 838, 067. 50 44,972 .50 579, 088. 79 ' 2/15/12 33,931 . 25 8/15/12 1 , 525 , 000 .00 4 .450000 33,931 . 25 1 ,592 , 862 .50 1 ,640, 017. 50 47, 155 . 00 626, 243 .79 - - - - - - - - - - - - - - " ' - - - - -- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 8,365 , 000 .00 21911 ,906.61 11 ,276,906.61 12 , 289, 760 . 00 626, 243 . 79 ACCRUED 24, 590 .40 24 ,590.40 8,365 , 000 .00 2,887,316. 21 11 , 252 ,316.21 12, 289, 760 . 00 _ 626, 243 .79 -------------- - ------------ -------------- -------------- ' Dated 5/ 1 /99 with Delivery of 5/27/99 Bond Years 69, 236. 556 Average Coupon 4 . 205736 Average Life 8. 276934 ' N 1 C % 4 . 205736 % Using 100 . 0000000 T I C % 4 . 193000 % From Delivery Date Arbitrage Yield 4 . 193000 % N 0 T E : Cumulative Savings are Net of the Initial Transfer Amount of 411 , 200 .00 tN 0 T E : Savings on 8/15/99 Include Accrued Interest of 24 , 590.40 Net Present Value Savings at : 4 . 1930% Equals 477, 771 .07 or 5 . 7115% of Par of the Current Issue ' or 5 .8550% of Par of the Prior Issue N O T E Present Value Savings are Net of the Initial Transfer Amount of 411 , 200 . 00 ' Micro-Muni Debt Date: 04- 14- 1999 a 13 : 13 : 54 Filename: FAY Key: NEW 1 ' City of Fayetteville, AR Series 1999 Refunding Issue _____________________ _____________________ Sources and Uses of Funds ' Delivery Date: 5/27/99 Sources of Funds Par Amount of Bonds . . . . . . . . . . . . . . . . . . . 580365 , 000 .00 ' +Premium /-Discount . . . . . . . . . . . . . . . . . . . $0 .00 Bond Proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81365, 000 . 00 Accrued Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 240590.40 Assumed DSR Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800, 000. 00 Assumed Bond Fund Balance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 411 , 200 . 00 ' $9, 600, 790 .40 Uses of Funds ' Cost to Retire Bonds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8, 629, 525 .00 Cost of Issuance. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70, 000 .00 Underwriter' s Discount . . . . . . . . . . . . . . . . . . ( 0.900000%) . . . 75 , 285 . 00 ' Accrued Interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 , 590 . 40 Debt Service Reserve. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 800, 000 . 00 Contingency. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1 .390 . 00 $9, 600, 790 .40 Micro-Muni Sizing Date : 04- 14- 1999 a 13 : 14 : 27 Filename: FAY Key: NEW 1 1 1 Citv of Fayetteville, AR ' Series-1999 Refunding-Issue Debt Service Schedule --------------------- ' Date Principal Coupon Interest .Period Total Fiscal Total . . . .. . . . . . . . . . . . . . w - - - - - - ---- - - - - - - - - - - - - - - - - - - - - - 8/15/99 1000000.00 3.600000 98,361 .61 .198,361 .61 1980361 .61 2/15/ 0 168,441 .25 168,441 . 25 8/15/ 0 450,000 .00 3.600000 168,441 .25 6180441 .25 786,882.50 2/15/ 1 160,341 .25 16G,341 . 25 - 8/15/ 1 465 ,000.00 3.650000 160,347.25 625,341 . 25 785,682.50 ' 2/15/ 2 151 ,855 .00 151 ,855 . 00 8/15/ 2 4850000.00 3.650000 151 ,855 .00 6368855 .00 788,710.00 2/15/ 3 143,003.75 143,003. 75 ' 8/15/ 3 5008000.00 3.750000 1430003.75 6438003. 75 7868007.50 2/15/ 4 133,628.75 133,628.75 8/15/ 4 525 ,000.00 3.900000 133,628.75 658,628.75 792,257.50 2/15/ 5 123,391 .25 123,391 .25 ' 8/15/ 5 545 ,000.00 3.950000 123,391 .25 668,391 . 25 791 ;782.50 - 2/15/ 6 112,627.50 112,627.50 8/15/ 6 565,000.00 4.000000 112,627.50 677,627. 50 790,255 .00 ' 2/15/ 7 101 ,327.50 1015327.50 8/15/ 7 590,000.00 4.050000 101 ,327.50 691 ,327.50 792,655 .00 2/15/ 8 89,380.00 89,380.00 8/15/ 8 615, 000.00 4. 150000 89,380.00 • 704,380.00 793,760.00 2/15/ 9 76,618.75 76,618.75 8/15/ 9 640,000.00 4.200000 76,618.75 716,618. 75 793,237.50 2/15/10 638178.75 63, 178. 75 - ' 8/15/10 665 ,000.00 4.250000 638178.75 728, 178.75 791 ,357. 50 ' 2/15/11 49,047.50 49,047.50 8/15/11 6950000.00 4.350000 490047.50 744,047.50 793,095 .00 2/15/12 33,931 .25 33,931 .25 8/15/12 1 ,525,000.00 4.450000 33,931 . 25 1 ,558,931 . 25 1 ,592,862 .50 t . . . . .. . . . . . . . . . . . . . . . . . . . . . . . m . . . . . . . . . . . . 8,365,000.00 2,911 ,906.61 41 ,27689C6.61 ACCRUED � 24,590.40 24,590.40 8,365,000.00 2,887,316.21 11 ,252,316.21 ' Dated 5/ 1/99- with Delivery of ' 5/27/99 Bond Years 69, 236.556 t Average Coupon 4. 205736 Average Life 8.276934 N I C X . 4. 205736 % Using 100.0000000 T I C X 4. 193000 % From Delivery Date Arbitrage Yield 4. 193000 % ' Hicro-Nuni Sizing Date: 04- 13- 1999 8 16:25 :50 Filename: FAY Key: NEN 1 1 1 1 MINUTES OF A MEETING OF THE FAYETTEVILLE CITY COUNCIL APRIL 61 1999 A meeting of the Fayetteville City Council was held on April 6, 1999 at 6 : 30 p. m. in Room 219 of the City Administration Building located at 113 Nest Mountain Street, Fayetteville, Arkansas. 1TENIS CONSIDERED ACTION TAKEN Block Grant Agreement for Community Development Approved Res. 46-99 Bid 99-34 Approved Res. 47-99 Washington School Gym Approved Res. 48-99 Bid 99-36 Approved Res. 49-99 West Fork Master Meter Vault Approved Res. 50-99 Sycamore and Leverett utility relocation Approved Res. 51 -99 Wilson Park Swimming Pool Approved Res. 52-99 VA 99-2 Passed Ord . 4151 RZ 99-3 Passed Ord. 4152 RZ 99-4 Passed Ord. 4153 RZ 99-5 Passed Ord . 4154 Bakery Feeds Motion to pursue injunction. Historic District Commission Tabled on the first reading. Library Expansion Information item/no action Warrant Service Fees Passed Ord. 4155 Additional Police Staff Approved Res. 53 -99 Land Possession-Rupple Road Left on first reading Chief Executive Officer Left on first reading U of A Fireworks Passed Ord. 4156 Republic Parking Approved Res. 54-99 MEMBERS PRESENT Mayor Hanna Aldermen: Robert Reynolds Ron Austin Bob Davis Trent Trumbo Heather Daniel Kevin Santos Cyrus Young Kyle Russell City Attorney Jerry Rose City Clerk Heather Woodruff StaQf, Pass, and Audience MINUTES OF A MEETING OFTIIE FAYETTEVILLE CITY COUNCIL A meeting of the Fayetteville City Council was held on April 6, 1999 at 6:30 p. m. in Room 219 of the City Administration Building located at I I3 West Mountain Street, Fayetteville, Arkansas. Present : Mayor Fred Hanna, Aldermen Reynolds, Austin, Davis, Trumbo, Daniel, Santos, Young and Russell, City Attorney Jerry Rose, City Clerk Heather Woodruff, Kevin Crosson, Charles Venable, and Alett Little; Staff, Press and Audience. NOMINATING COMMITTEE REPORT Alderman Daniel moved to appoint : Y2K Ad Hoc Committee Members: Heather Woodruff, Reba Patton, Major Jack Owens, Lana Clark, Bob and Donna Treat, Gordon Rowell, Ann Murphy, Michael Crow, Greg Thoma, Kate Conway, Kyle Russell, Katona Bayles, Michael Andrews, Mike Hocklander, Don Taylor, Lin Oliver, and Paula Ellington. Juvenile Concerns : Mieka Hatcher.and reappointment Hamsa Newmark Library Board : Reappointment Steven Singleton. Planning Commission: Don Marr; Reappointments Loren Shackleford and Bob Estes. Board of Adjustments: Michael Green Civil Service Commission: Denny Tune Environmental Concerns: Roxanna Willis Historic District : David Lewis Alderman Trumbo seconded the motion. Upon roll call the motion carried unanimously. CONSENT AGENDA BLOCK GRANT A resolution approving the 1999 Community Development Block Grant agreement and funding approval . RESOLUTION 46-99 AS RECORDED IN THE OFFICE OF 7HE CITY CLERK. BID 99-34 A resolution awarding Bid 99-34 to Barton County Implement and Williams Ford Tractor for balers and mowing equipment for use at the Fayetteville Sludge Management Site. RESOLUTION -17-99 AS RECORDED IN 7111, OFFICE OF 7HE CITY CLERK. City Council April 6, 1999 Page 3 WASHINGTON SCHOOL GYM A resolution approving a budget adjustment to fund the Washington Elementary School Gym joint project with the Fayetteville Public Schools in 1999. RESOLUTION 413-99 AS RECORDED IN 7HE OFFICE OF THE C177 CLERK. BID 99-36 A resolution awarding Bid 99-36 to Heckathorn Construction Company in the amount of $32, 187.00 plus a project contingency of $ 1 ,600 and a budget adjustment for Wilson Park Castle Renovations Phase 3 . RESOLUTION 49-99 AS RECORDED IN THE OFFICE OF THE CITY CLERK. WEST FORK MASTER METER VAULT A resolution approving the contract for West Fork Master Meter Vault Reconstruction with Basic Construction Company, in the amount of $37, 808. 00 plus a contingency of $43 ,480. 00 RESOLUTION 50-99 AS RECORDED IN THE OFFICE OF THE CITY CLERK. City Council April 6, 1999 Page 4 SYCAiNIORE AND LEVERETT A resolution approving the relocation contract in the amount of $20, 500 with a contingency of $5 ,000 with Arkansas Western Gas to relocate approximately 300 If of 6 inch high pressure gas line south of Sycamore and west of Leverett to allow the construction of the proposed improvements at the intersection of Sycamore and Leverett. RESOLUTION 51-99 AS RECORDED IN THE OFFICE OF THE C1I7 CLERK. WILSON PARK SWIMMING POOL A resolution approving a budget adjustment and settlement offer with Wilks Construction Company for painting the Wilson Park swimming pool. RESOLUTION 52-99 AS RECORDED IN THE OFFICE OF THE CITY CLERK. Alderman Daniel moved to approve the consent agenda. Alderman Austin seconded the motion. Upon roll call the motion carried unanimously. PRESENTATION Ms. Marilyn Johnson, Chamber of Commerce, presented a front bumper plate with "Fayetteville" and graphic of the old Fayetteville courthouse to all the aldermen from the Chamber of Commerce. OLD BUSINESS VA 99-2 Mayor Hanna introduced an ordinance approving vacation request VA 99-2, to vacate a 20 foot alley to the east of property located at 820 South College Avenue as submitted by Gary Kahanak and John Firmin of Build A Home. This item has been tabled on the first reading at the March 23 , 1999 meeting. Alderman Trumbo moved to suspend the rules. Alderman Austin seconded the motion. Upon roll call, the motion carried unanimously. City A11orncy Race read Ilse orchno tce. Alderman Trumbo stated the property had been overgrown and was run down. He stated this development would only enhance the existing and surrounding property. He noted the applicant was planning to construct allordable housing for the elderly on the site. City Council April 6, 1999 Page 5 Alderman Reynolds stated he would like to see the city abandon the whole block. Mayor Hanna explained the property owners would have to make the vacation request. Alderman Young stated the people living there were not currently using the alley. He was concerned that they should maintain access to the alley. He thought the alley could be reopened if a different owner wanted to use the alley. He stated the property would still be considered a utility easement and could not be built over. Ms. Little explained part of the alley would be reserved as a utility easement and there were also setbacks. Alderman Daniel noted some of the city's new developments had alleys. She was not in favor of vacating the alley because they were handy for access. She thought it might be useful sometime in the future. Alderman Trumbo replied this part of town had not had that kind of investment in years and the city needed to give the developers some incentive to invest in that area. Alderman Austin moved to suspend the rules and go to the third and final reading. Alderman Reynolds seconded the motion. Upon roll call, the motion carried 7- 1-0, Daniel voting nay. City Attorney Rose read the ordinance for the third and final time. Mayor Hanna called for the vote. Upon roll call, the ordinance passed by a vote of 7- 1 -0, Daniel voting nay. ORD/MANCE 4151 AS RECORDED IN THE OFFICE_ OF THE CITY CLERK. RZ 99-3, RZ 99-4, AND RZ 99-5 iMayor Hanna introduced three ordinances rezoning property located off Wedington Drive and Rupple Road . All three ordinances had been left on the second reading at the March 23 , 1999 meeting. RZ 99-3 An ordinance approving rezoning request RZ 99-3 , submitted by Dave Jorgensen of Jorgensen and Associates on behalfof WI-IM Land Investments, Inc. for property located at Wedington Drive and Rupple Road . The request is 10 rezone the 2 . 37 acre property liom A- 1 , Agricultural City Council April 6, 1999 Page 6 to C- I , Neighborhood Commercial . RZ 99-4 An ordinance approving rezoning request RZ 99-4 for property located at Wedington Drive and Rupple Road. The request is to rezone 4 .09 acres from A- t , Agricultural to C- 1 , Neighborhood Commercial . RZ 99-5 An ordinance approving rezoning request RZ 99-5 for property located at Wedington Drive and Rupple Road. The request is to rezone 21 .91 aces from A- 1 , Agricultural to R-2, Medium Density Residential. Alderman Young moved to suspend the rules and go to the third and final reading. Alderman Davis seconded the motion. Upon roll call, the motion carried unanimously. City Attorney Rose read the ordinance for the third acrd final time. Mr. Vernon McBride, adjacent property owner, requested the boundaries of the property to be defined. NU. Jorgensen showed Mr. McBride the proposed request. Alderman Daniel thought the area could use more neighborhood commercial in the area because of all the new development in the area. Mayor Hanna called for the vote of RZ 99-3. Upon roll call, the ordinance passed unanimously. ORDINANCE 4153 AS RECORDED IN THE OFFICE OF THE CI7y CLERK. Mayor Hanna called for the vote on RZ 99-4. Upon roll call, the ordinance passed unanimously. ORDIXANCE 4153 AS RECORDED IN 7HE OFFICE OF THE C17y CLERK. Mayor Hanna called for the vote oil RZ 99-5. Upon roll call, the ordinance passed unanimously. ORDINANCE 4154 AS RECORDED IN THE OFFICE OF THE CITY CLERK City Council April 6, 1999 Page 7 BAKERY FEEDS Mayor Hanna introduced discussion of legal alternatives for Bakery Feeds. Attorney Rose stated he had presented his report to them at Agenda Session last week as well as the progress of the negotiations with Bakery Feeds for a possible settlement of this matter. He had received two documents since that presentation which he was distributing tonight. The first document was a laboratory report. Bakery Feeds had hired an independent laboratory to analyze various processes at their plant for aflatoxin. The report indicated that there were no apparent aflatoxin present. In addition, he had received from the Arkansas Department of Health a letter dated April S, 1999, which said they were currently gathering information regarding Bakery Feeds and would be able to make statements in the next few weeks. He stated what he needed to know from the council was how they wanted him to proceed. Mr. John Everett, Bakery Feed ' s attorney, stated it was his desire to settle the dispute. He questioned if the city was truly trying to settle. He also suggested that Bakery Feeds did fit into Use Unit 22. It was a right in their zone. Some people thought it was a legal use for where they were currently located. He had also discovered the city did not own all the land in the Industrial Park. There was the possibility for them to purchase land from others in the Industrial Park. In response to questions from Aldermen, ivlr. Rose explained the Planning Commission had felt they were a Use Unit 23 which was food and allied products. If the council wished to make their own decision on what use unit this business belonged in, it was within their rights. In response to questions from Alderman Santos, Mr. Rose and Ms. Little stated a rendering plant would be considered a Use Unit 23 and would require a conditional use permit. It would also require I-2 zoning. In response to questions from Aldermen, Mr. Rose stated the Health Department would have a report for them to consider, if they wished to delay their decisions. He needed sonic indication on how the council wanted him to proceed. Alderman Santos thought they should identify which unit they belonged in. Alderman Russell stated his main concern was whether or not they were in the proper zone and if they applied for the proper permits. Ms. Little explained if they were an odor-producing facility; they would need a conditional use pernut which could only be applied for if they were in an 1 -2 zoning district. Where was a point in time where the ordinance had been passed. 1,hose businesses which had been in existence City Council April 6, 1999 Page 8 prior to the ordinance would be considered grand fathered in. In response to questions from Alderman Russell, Nts. Little stated the current facility would have been grand fathered in if they had been in the correct zoning district and had the right permits. The expansion of the operation would be subject to the new ordinance. Alderman Reynolds thought that the facility belonged under Use Unit 23 . He knew that they had rendered in the plant. This had been illegal . He was ready to challenge them in court. Mayor Hanna stated the council had decided to do that. He asked if there was a motion to continue with negotiations, if not the decision had been made. Alderman Trumbo reminded them that this was a legislative body and not a judicial body. He did not believe they were the proper authority to make a decision. Alderman Russell stated they had to consider their chances of winning a lawsuit. If they felt they could win the lawsuit then they did not owe them any help in moving to the Industrial Park. Alderman Austin asked if Bakery Feeds had indicated that they could clean up the existing conditions. Mr. Rose discussed the remedies that Bakery Feeds had proposed, with which the neighbors had not agreed during the negotiations. Mr. Everett stated the city and Bakery Feeds had started the negotiations in good faith. Alderman Young asked if Bakery Feeds, while in the process of negotiations, was willing to upgrade their technology in the smoke stack if the problem was not solved. Noir. Rose replied they had been willing to put in a wet scrubber. They had stated the catalytic scrubbers were too expensive. They had been willing to do the 100-foot tower and the wet scrubber, but they were not willing to put in a catalytic scrubber. He added this was the kind of detail that they could work out. He stated if the council was opposed to them being located in the South Industrial Park then there was no sense in him going forward with negotiations. Alderman Davis asked if the city had contacted other cities where Bakery Feeds had constructed towers. City Council April 6, 1999 Page 9 Mr. Rose stated they had not, but they had been provided a letter from one of the towns which stated they had not had any complaints since the tower had been constructed. Alderman Trumbo stated the Planning Commission had denied their request for a conditional use based on their interpretations. He thought the courts needed to decide if they were operating in the correct zone. Alderman Austin moved to cease negotiations with Bakery Feeds for a move to the industrial park. Alderman Santos seconded the motion. Upon roll call, the motion carried by a vote of 7- 1-0, Trumbo voting nay. Mayor Hanna stated they needed to clarify if they wanted Mr. Rose to continue negotiating or to continue with the lawsuit. Alderman Russell moved to instruct Mr. Rose to proceed with the law suit, but not to preclude further negotiations. Alderman Reynolds seconded the motion. Mayor Hanna stated he was going to say one thing before they voted. If Mr. Rose filed the lawsuit and there were no further negotiations and the city loses the lawsuit, Bakery Feeds could continue to operate where they were from now on without constructing the 100-foot stack or anything else. Alderman Russell stated if there were any residents who did not want the city to proceed with the lawsuit and wanted them to continue with the negotiations then they needed to let them know. Ms. Terry Easton, an area resident, thanked the council for hearing their concerns. She stated there were other avenues of relief, if the city lost their injunction based on zoning. The residents believed this company had acted in bad faith since they had opened their doors. They asked the council to go ahead and file the lawsuit. Ms. Charlotte Sheldon, an area resident, stated she was upset about moving the plant to the south side of town. She was in favor of continuing with the lawsuit and to stop negotiations. She stated this company needed to be run out of town. \9r. Lyle Dawn, an area resident, stated he was pleased the way they had voted . He expressed concern about all the land not being owned by the city in the Industrial Park. Upon roll call, the motion curried unanimously. City Council April 6, 1999 Page 10 M07I0N �vfADE 70I'URSUL AN INJUNCTION NEW BUSINESS HISTORIC DISTRICT CONINIISSION An ordinance approving the amendment of Ordinance 3836 to provide for two additional members to the Historic District Commission for a total of nine members. Mayor Hanna stated the chairman of the commission, Orland Maxfield, had requested two additional persons. Alderman Davis thought this would allow more people to be involved. Alderman Daniel noted the attendance at the last Historic District Commission meeting. She expressed concern that there had not been a quorum present. Alderman Trumbo moved to table the item. Alderman Daniel seconded the motion. There was no one present from the Historic District Commission to discuss the item. Alderman Santos suggested they add a membership requirement to maintain their membership on the committee. Mayor Hanna noted on the Planning Commission there was an attendance policy. If you missed more than three consecutive meetings, you could be replaced . Ni /Ir. Rose stated there was no general law. Each committee' s ordinances were different. He thought the city could pass their own ordinance requiring attendance. Mayor Hanna thought they would send it to the Ordinance Review Committee to address mandatory attendance of board and commission members. Upon roll call, the motion to table the item carried unanimously. L113RARY EXPANSION Nlayor Hanna introduced a presentation and discussion of the site for the new Fayetteville Public Library expansion. City Council April 6, 1999 Page 12 Alderman Austin questioned some of their calculations. He noticed they would be increasing the size of the library more than 300%. Fayetteville' s population was projected to increase 170%. He asked them to justify such a large increase. He noted the number was what would drive the square footage of the building. He was pro-library, but he questioned their calculations. NIr. Roberts stated the current population was approximately 55,000. Using the same measure for their projected population, the current library would be considered 30,000 square feet too small. The increase was not based on the current size of the library today, but on what size it Should be today, if it had kept up with the growth in population. He added the same rules should apply to a public library that applies to other public services. If they responded simply to convenience then they would erode the soul of the city. They needed to make some sacrifices to maintain the soul of the downtown. Alderman Austin asked if they had seriously addressed the idea of a branch library now. i\dr. Roberts replied they had presented branch options. During the meetings they had decided to build a core collection and a central library. Alderman Austin questioned if they were constructing the library based on the 2020 projections, and where was the need for a branch library in the future. \4r. Roberts replied the 2020 projections had been the standard length of time used to calculate future needs. This method was becoming less and less reliable. They were being as conservative as they could. The question of convenience would bring the need for a branch library sooner. In mature cities people were beginning to move back into the core part of town which strengthened the need for a central library. \4r. Roberts stated the branch library and the need for duplication of core services would strain the operation budget of the library. Alderman Davis thought they might be going too far south to draw the public. Mr. Singleton stated in other parts of the county where libraries had been sited in undesirable locations they had brought the neighborhoods up. Aderman Daniel thought this would be a deterrent to urban sprawl and would tit in well will, the efforts to revive the downtown. City Council April 6, 1999 Page 14 AoIr. Rose read the orchnance for the third ane/final lime. Mayor Hanna called for the vote. Upon roll call, the ordinance carried unanimously. ORDINANCE 4155 AS RECORDED IN THE OFFICE OF THE C17Y CLERK. ADDITIONAL POLICE STAFF A resolution approving an increase of the 1999 operating budget to add one police sergeant, one police officer, and one dispatcher. Alderman Daniel asked if they planned to hire these right away because the money had not been accumulated yet. Mr. Rick Hoyt stated they had planned to start collecting the fees in May. He added the police department has had several openings this year which they had not filled . Because of the hiring process, he thought the money would be there by the end of the year. Mr. Crosson explained they had a budget adjustment which recognized the position would start in June. The budget adjustment would offset the cost. Alderman Austin moved to approve the resolution. Alderman Davis seconded the motion . Upon roll call, the motion carried unanimously. RESOLUTION 53-99 AS RECORDED IN THE OFFICE OF THE CITY CLERK LAND POSSESSION - RUPPLE ROAD An ordinance authorizing the City Attorney to seek court-ordered possession of .317 acres of land owned by Tony and Bobbye Hardin, located north of Mt. Comfort Road and west of Salem Road for the purpose of extending Rupple Road from Mt. Comfort Road to the proposed new middle school. Ordinance should also include specific temporary easements. A1r. Rose rent/ the ordinance for the first lime. Mr. Bobby Hardin, property owner, stated he did not understand the location of the street. Mr. Venable stated the location of the street was part of the Master Street Plan and had been worked out to service the new school in the area. He stated Mr. Hardin had been present at the meeting when it had been determined the middle school would be located in the area. City Council April 6, 1999 Page 16 CII IEF EXECUTIVE OFFICER An ordinance amending Chapter 10, General Provisions of the code of Fayetteville, to add Section 10. 13 , Chief Executive Officer, to define miscellaneous powers and duties of the Mayor. Xfr. Rose read the ordinance for the firs! lime. Alderman Austin asked if the ordinance was approved would the action give the mayor the authority to change an ordinance. Mr. Rose replied no. Alderman Austin asked if it would give the mayor the authority or the power to veto the council or committee action. Mr. Rose stated that he had the power of veto by statute and he would continue to have that power. Mayor Hanna stated the ordinance was to clarify some of the ordinances which had been about before the change of government. He stated they had been talking about the change for four years. Alderman Daniels asked about the impact of the ordinance. She had received several calls on this with people voicing concerns. She thought the ordinance would be dealing with employment positions. The paper had given a specific example of the mayor being able to overrule an ordinance. Mayor Hanna replied the ordinance would not allow him to overrule an ordinance. There were sonic things that were at the department director' s discretion. This ordinance did not specifically state the mayor, but his designee. He felt the citizens should be able to come to an elected official when they felt that they were not getting the proper determination. He wanted to be able to answer people when they had complaints. He stated since the change of government they had tried to be citizen friendly and they wished to continue to do so. Alderman Daniel questioned whom the duly appointed official would be. Mayor Hanna replied it would normally be the department head. Alderman Russell asked who would normally make the decisions given the example in the paper. City Council April 6, 1999 Page 18 designation was set by state law. She questioned if the ordinance would change all the things in the UDO. Mr. Rose replied they would be replaced . Ms. Little stated the whole reason for the UDO was so the developer would know who to go to for those issues. She added that it simplified the process, so the developer would know where to get answers. Mr. Rose stated he thought the developer would still know that. It did not change that, it was where the developer would go. He added if an individual was continually making decision that the mayor disagreed with. Alderman Russell asked if the mayor under state law or under this ordinance would have the authority to overrule one of those decisions and make it have a binding affect without them firing the individual. Nlr. Rose replied it was not intended to. He could not if it was already in our ordinance that a specific person were to make the decision. Alderman Russell asked if they were changing the ordinance to read the Mayor or his duly authorized representative. Alderman Santos stated it gave them the option to go directly to the Mayor for a decision. Alderman Daniel stated some of the people she had talked to had been in favor of this because they could go directly to the Mayor. She expressed concerns about sonic mayors taking advantage of this. Mayor Hanna replied if the city elected someone who decided to do favors for the developer, they would be laying themselves open to a lawsuit or to be removed from office. He stated they did not have any problems currently. They had been discussing this for more than four years. Alderman Santos stated the decision should be made by the professional stafTmember and thought the politician would be to susceptible. Mr. Dan Coody, an area resident, stated this might be it solution waiting for a problem. He gave the example if he were a developer and he disagreed with planning director' s decision, he could go to the mayor and have the decision overturned . The next developer who was not on good City Council April 6, 1999 Page 20 U OF A FIREWORKS An ordinance allowing the University of Arkansas to use fireworks for the opening of Baum Baseball Stadium. Mr. Rose rend the ordinance for the first time. Alderman Daniel moved to suspend the rules and go to the second reading. Alderman Austin seconded the motion . Upon roll call the motion carried unanimously. n11r. Rose read the ordinance for the second time. Alderman Austin moved to suspend the rules and go the third and final reading. Alderman Davis seconded the motion. Upon roll call the motion carried unanimously. Alfr. Rose read the ordinance for the third and final time. Mayor Hanna called for the vote. Upon roll call the motion carried unanimously. ORDINANCE 4156 AS RECORDED IN THE OFFICE OF THE CITY CLERK. REPUBLIC PARKING SYSTEMS A resolution approving a lease modification with Republic Parking System at Drake Field; and to authorize the mayor and city clerk to execute said lease. Mr. Rose explained the business had decreased at the airport to the point that it was almost non- existent and was not economical for Republic Parking to continue their operations. Alderman Daniel moved to approve the resolution. Alderman Trumbo seconded the motion. Upon roll call the motion carried unanimously. RESOLUTION 54-99 AS RECORDED IN THE OFFICE OF 7HE CITY CLERK.. i`4eeting adjourned at 9 : 30 p. m. FAYETTEVILLE THE CITY OF FAYETTEVILLE. ARKANSAS April 13, 1999 AGENDA SESSION APRIL 20, 1999 I . REPORT FROM OMI : A presentation of a refund check to the city. Il . CURBSIDE BIN RECYCLING: Status report III . NEW ITEM : Petition for removal of Dickson Street Central Business Improvement District board members, filed by Lamar Pettus and Richard Shewmaker IV. DISCUSSION: Permitting process of odor-emitting businesses in Fayetteville, i.e. Bakery Feeds and Hanna's Potpourri V 113 WEST MOUNTAIN 72701 501521-7700 FAX 501 575-8257 FAYETTEVI LLE OMI REPORT THE CITY OF FAYETTEVILEE, ARKANSAS DEPARTMENTAL CORRESPONDENCE April 7, 1999 To: Fayetteville City Council From: Don Bunn, Assistant Public Works Director Subject: Refund Check, Wastewater Treatment Plant Operations OMI Our contract with OMI for the operation of the Noland Wastewater Treatment Plant calls for an estimated amount to be paid each year for operation of the facility. If the actual cost of operation of the plant is less than the amount paid , then the City receives a refund check in the amount of the overage. OMI would like an opportunity to make a formal presentation of the 1998 refund check to the City at the Council Agenda Meeting on April 13, 1999.