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HomeMy WebLinkAbout2005-10-18 MinutesMayor Dan Coody City Attorney Kit Williams City Clerk Sondra Smith aye City Council Meeting Minutes October 18, 2005 Page 1 of 22 Aldermen Ward 1 Position 1 - Robert Reynolds Ward 1 Position 2 - Brenda Thiel Ward 2 Position I - Kyle B. Cook eviWard 3 Position 2 K- Rob rt r Ward 3 Position 1 -Robert K. Rhoads Ward 3 Position 2 — Robert Ferrell ARKANSAS Ward 4 Position 1- Shirley Lucas Ward 4 Position 2 - Lioneld Jordan City of Fayetteville Arkansas City Council Meeting Minutes October 18, 2005 A meeting of the Fayetteville City Council was held on October 18, 2005 at 6:00 PM in Room 219 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Mayor Coody called the meeting to order. • PRESENT: Alderman Reynolds, Thiel, Cook, Marr, Rhoads, Ferrell, Jordan, Mayor Coody, City Attorney Kit Williams, City Clerk Sondra Smith, Staff, Press, and Audience. ABSENT: Alderman Lucas Pledge of Allegiance CONSENT: Airport Disadvantaged Business Program: A resolution to accept and approve the updated Fayetteville Municipal Airport Disadvantaged Business Enterprise (DBE) program participation goals for FY2006. Resolution 202-05 as Recorded in the Office of the City Clerk. Purchase of Two 4x4 Crew Cab Trucks from Landers Ford: A resolution awarding Bid #05- 69 to Landers Ford for the purchase of two (2) 4x4 Crew Cab and Chassis Trucks with Dump Bodies in the amount of $83,906.00 for use by the Transportation Division for the In -House Trails Program; and approving a budget adjustment to move funds to Fleet Expense Account. Resolution 203-05 as Recorded in the Office of the City Clerk. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi I Ie. org City Council Meeting Minutes October 18, 2005 Page 2 of 22 Purchase of One Compact Track Loader from Williams Tractor: A resolution awarding Bid #05-68 to Williams Tractor for the purchase of one (1) Compact Track Loader in the amount of $35,696.70 for use by the Transportation Division for the In -House Trails Program; and approving a budget adjustment to move funds to the Fleet Expense Account. Resolution 204-05 as Recorded in the Office of the City Clerk. Construction of Walker Park Entry with Midland Construction, Inc.: A resolution approving a contract with Midland Construction, Inc. in the amount of $64,026.00 for the construction of the Walker Park Entry; and approving a 10% project contingency in the amount of $6,402.60. Resolution 205-05 as Recorded in the Office of the City Clerk. J.B. Hays and Charles W. Sloan O&A Contract: A resolution approving an Offer and Acceptance contract between the City of Fayetteville and J.B. Flays and Charles W. Sloan for the sale of approximately 33.436 acres of the Westside Wastewater Treatment Plant Site for $1,039,007.00; and authorizing the Mayor and City Clerk to execute said agreement. Resolution 206-05 as Recorded in the Office of the City Clerk. Alderman Jordan moved to approve the Consent Agenda. Alderman Reynolds seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. UNFINISHED BUSINESS': 2005 Millage Levy: An ordinance levying a tax on the Real and Personal Property within the City of Fayetteville, Arkansas, for the year 2005 fixing the rate thereof at 2.0 mils for General Fund — Operations, 0.4 mils for the Firemen's Pension and Relief Fund, 0.4 mils for the Policemen's Pension and Relief Fund and 1.0 mil for the Fayetteville City Library; and certifying the same to the County Clerk of Washington County, Arkansas. This ordinance was left on the First Reading at the October 4, 2005 City Council meeting. Alderman Marr moved to suspend the rules and go to the second reading.. Alderman Jordan seconded the motion. Upon roll call the motion passed 7-0. Alderman. Lucas was absent. City Attorney Kit Williams read the ordinance. Alderman Thiel: Since we have discussed the Library funding in conjunction with the two new mils, if we do choose to support that it is with the idea that the Library will request a special election for additional millage and then we can discuss dropping the millage we are currently discussing. It is my understanding that they need 2.5 mils. Alderman Thiel moved to increase the 2.0 mils to 2.5 mils with the understanding that the Library will seek a special election to support this. Alderman Jordan seconded the motion. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org • .) • • • City Council Meeting Minutes October 18, 2005 Page 3 of 22 Alderman Marr: The property millage information in our package does not allocate this to a specific project; it is for the General Fund, is your amendment allocated specifically for the Library and contingent on the library property millage vote? Alderman Thiel: I don't think we can do that. Kit Williams, City Attorney: This millage is part of the five general mils that are authorized under the constitution for operating general expenses. You can as part of your budget process put your funds where you want to in the General Fund but 1 don't think you can limit these particular mils to any particular project. Mayor Coody: One of the things that we went over at one of our agenda meetings was exploring our expenses and our revenues. It has been apparent over the last several years that 70% of our growth and expenses have been to the Fire and Police Departments. So, if we pass this millage it would be basically to make up the short fall that we have experienced. Should we approve these two mils that would help cover the short fall? Steve Davis, Finance and Internal Services Director: The City Attorney is correct in that the mils would not be designated for any particular purpose. The only time the City has to my knowledge passed any discretionary mils for a specific purpose was when we passed two mils for one year directed to the Senior Center; we did that to assist in the construction cost of the Senior Center. Since these are general operating mils and the library transfer comes out of general revenues for the City it would be staff's recommendation to not designate it for any particular purpose but to use that money to essentially balance the General Fund's budget. In the September budget briefing we predicted about a $2.2 million deficit. Alderman Jordan: So if we pass the 2.5 mils it's like it goes into a big pie and then the Council decides at budget time how we slice up the pie? Steve Davis: That is correct. Alderman Thiel: The reason that I proposed this is because 1 think the public thinks this millage will fund the Library. The Library has said all along that they are going to need 2.5 mils if they go to a vote of the people. Steve Davis: If the Library expenditures were removed from the General Fund we would not necessarily need any millage to balance the budget in 2005 or 2006. Alderman Thiel: 1 think the only way the public can really feel comfortable that this millage is being dedicated is if they vote for it. Elsa Isaacs stated she is following this but it does not coincide with what was in the Times. She stated she is in favor of the Library millage going to a vote of the people. She wants the Library to get its finances through the elected officials at the City. She voiced her concern about citizens that live on social security not being able to afford an increase. A discussion followed on the millage increase. 1 13 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevil le. org City Council Meeting Minutes October 18, 2005 Page 4 of 22 Alderman Reynolds: Are people over 65 exempt from this millage increase? Kit Williams: They are not exempt and 1 don't think we can insert that. Alderman Marr: is the half mil issue related to the Library financing because the packet that the staff put forward certainly took into account what we spend on the Library and their recommendation was 2.0 mils. So to get here tonight and have it be 2.5 mils after the staff made a recommendation of 2.0 mils, using the argument in our first meeting about the Library, I have a concern about. I just want to understand why that half mil was not originally presented. Steve Davis: We looked at the two mils because when we are doing the General Fund forecast, from our financial planning point of view if we can get an adopted budget within $500,000 of break even we consider that to be essentially balanced because we know we are not going to spend the full budget. Alderman Marr: If the library goes to a vote with 2.0 mils not 2.5 mils what impact does it have? Steve Davis: There would be a half mil more revenue generated for the Library at 2.5 mils than 2.0 mils would generate for the City. Mayor Coody: We think the Library can suffice with 2.0 mils, they think they need 2.5 mils? Steve Davis: I can not speak to what they believe they need. The revenue streams that we have we think that for the General. Fund budget all we need to ask for is 2.0 mils. The Library has reviewed their financial condition and they think 2.5 mils will meet their needs. They only have one revenue source which is millage, we have multiple. • Louise Schaper, Library Director: We get funding from both the General Fund and the Capital Fund that is the difference. The other piece of that equation is that when you start collecting millage you don't see all of it for several years and there is also the payment you make to the assessor. Alderman Marr: What is the dollar amount from CIP? Louise Schaper: $280,000 is scheduled for this year and $298,000 for next year. Alderman Marr: Please explain the difference in the City collecting this mil and using it in the Library in terms of reserved funds. Louise Schaper: If you were to approve this discretionary mil it would not begin collection immediately, it would begin collection the following year, which would be 2006. If it were to be approved by the voters it would be 2007 before collection could begin. The tax bill is not due until October so those funds would not be received until November. We couldn't budget those funds in that first year because they would not be coming in until the end of the year that would be 2008. In addition when you begin to start collecting mils and you are an entity that has never 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org • •l • ) City Council Meeting Minutes October 18, 2005 Page 5 of 22 • received any income from property tax, you do not see all of what you would expect to see in the first few years. • • Alderman Ferrell: My feeling is that the City has a wants list and a needs list and we get them mixed up. I think decisions need to be made that sometimes aren't popular about spending. I think rather than raise taxes we need to start cutting spending. 1 think we could go for five mils tonight and it would all be spent. Mayor Coody: 1t is easy to say that we need to cut spending; we have seen the numbers and the budgets. Have you brought forward a suggested list of cuts to make? Alderman Ferrell: Why don't I come to your office and I will mark through some items. Mayor Coody: Sure. It has taken leadership to make sure we can operate as well as we have been operating and we have been collecting zero property mils for operations and maintenance in the City for years. We collect the least sales tax of any City in Northwest Arkansas. So 1 think that we have been doing very well with the quality of City services that we provide with the absolute (east tax bite of any City in Northwest Arkansas. I think this staff, Council and administration has shown good leadership when it comes to handling public money, very well. We will be glad to look at it and you can bring your suggested cuts back to the Council for them to consider. Alderman Ferrell: Okay Alderman Marr: I would like to know the difference of the 2.0 mil and the 2.5 mil. I would like to see the numbers that explain the 2.5 mils. I am not comfortable supporting the 2.5 mils tonight. Alderman Thiel withdrew her motion to increase the mils from 2.0 mils to 2.5 mils. Alderman Jordan agreed to withdraw his second. Alderman Marr: I understand Alderman Ferrell's comments about our fiduciary responsibility. I also think we have a responsibility to not have all of our eggs in one basket. I think we have the responsibility to diversity our revenue. I do think it is important that we begin to talk about property tax as a revenue stream. Mayor Coody: I think if we collected the same property tax and sales tax that the next lowest taxing City charges that would be an additional $7 million dollars a year to the City. Alderman Marr moved to table this ordinance until the October 27, 2005 Special City Council meeting. Alderman Jordan seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. This ordinance was tabled to the October 27, 2005 Special City Council meeting. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Meeting Minutes October 18, 2005 Page 6 of 22 C-PZD 05-1670 (Pratt Place Inn, 481): An ordinance establishing a Commercial Planned Zoning District titled C-PZD 05-1670, Pratt Place Inn, located at the west end of Markham Road, containing approximately 72 acres, more or Tess; amending the official zoning map of the City of Fayetteville; and adopting the Associated Master Development Plan. This ordinance was left on the First Reading at the September 20, 2005 City Council meeting. This ordinance was left on the Second Reading at the October 4, 2005 City Council meeting. Alderman Jordan moved to suspend the rules and go to the third and final reading. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Jeremy Pate, Director of Current Planning gave a brief update of the project and the conditions of approval. Alderman Reynolds: Is this restaurant going to serve liquor. Albert Skiles, Architect: 1 don't know. A discussion followed on the closing time of the restaurant and the conditions of approval Alderman Thiel moved to amend the ordinance to state the hours of operation will be from 7:00 AM to Midnight. Alderman Jordan seconded the motion. Alderman Marr: I would like to hear the public comment because we may hear things that may make us support or not support the amendments. Jerry Kelso Crafton, Tull and Associates discussed the project and what the charge of the City Council is regarding this. He stated the current zoning would allow 207 dwelling units and possibility 288 units. He stated the current zoning would allow 1,981 vehicle trips per day the PZD would allow 446 units which is a much less impact. He also stated the water impact would be less with this PZD than as it is currently zoned. Terry Hunt stated he has known the Archers for years and can be trusted to do what they say they are going to do. Lynn Wade stated he hoped this would be tabled tonight so they can get some answers to their questions. He stated they are concerned about a commercial activity in a residential area with alcohol and with an event bam. He stated they are also concerned about the amount of traffic this project might create. A discussion followed on tabling the ordinance until the next City Council meeting. Felicia Farris stated she would like to see an earlier end time on weekends to the hours of operation. She would rather not have the restaurant and alcohol. She also stated the road is 113 Wtst Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi I I e.org • • • City Council Meeting Minutes October 18, 2005 Page 7 of 22 narrow. She said a bed and breakfast and limited use of the barn would be acceptable but not the restaurant. Mary Bassett stated she has known the Archers and represented them during the past year and a half. She stated the land has been in the family since the I900's. She stated it would be very easy to sell this property. She thinks this project would be a wonderful addition to Fayetteville. She supports the project. She also stated the Archers have had high integrity since she has worked with them. Fran Alexander stated she and her daughter own some adjoining property. She asked if the public could ask for a down zoning on this in the future. Kit Williams: I don't think the public could, the City Council has the right to rezone property. Until it could be rezoned the property would have to remain as described in the master planning document. They must follow what is on the site plan and all the conditions of approval, if they did sell it they would have to sell it to someone that would want to do the exact same thing. Fran Alexander: Would it be possible if the neighbors petitioned the Council to down zone it back to residential? Kit Williams: There would be a problem I think to do that. Fran Alexander: Are the cabins on septic now? Albert Skiles: The existing cabins are not going to be there any more. Jerry Kelso stated everything would tie onto the sewer line. William Feldman voiced his concem about this commercial property in this neighborhood. He stated his concern about the traffic. He also voiced his concern about the possible noise. John Williams asked about the questions he has on the property and when he will get the answers to the questions. Jeremy Pate: We are working on getting that information together. John Williams stated there are two barns on the property. Albert Skiles summarized some of the issues and concerns that have been brought up. He stated the Planning Department has approved this project. He gave a brief history of the project. He stated approval of this is just approving the concept; it still has to go to the Planning Commission. Alderman Thiel withdrew her motion to amend the ordinance to state the hours of operation will be from 7:00 AM to Midnight. Alderman Jordan withdrew his second to the motion. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi Il e. org City Council Meeting Minutes October 18, 2005 Page 8 of 22 Alderman Marr moved to table this ordinance until the November 1, 2005 City Council meeting. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. This ordinance was tabled to the November 1, 2005 City Council meeting. R-PZD 05-1636 (Wellspring): An ordinance establishing a Residential Planned Zoning District titled R-PZD 05-1636, Wellspring, located at Rupple Road and Highway 16, containing approximately 152 acres, more or less: amending the official zoning map of the City of Fayetteville; and adopting the Associated Master Development Plan. This ordinance was left on the First Reading at the September 20, 2005 City Council meeting. This ordinance was tabled at the October 4, 2005 City Council meeting to the October 18, 2005 City Council meeting. Alderman Rhoads moved to table this ordinance indefinitely. Alderman Jordan seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. This ordinance was tabled indefinitely. Fayetteville Depot, LLC Lease Agreement: A resolution approving a lease agreement with Fayetteville Depot, LLC for property located at the northwest corner of Dickson Street and West Avenue to provide parking enforcement and revenue collection services for a proposed parking lot. This resolution was tabled at the October 4, 2005 City Council meeting to the October 18, 2005 City Council meeting. Sharon Jenkins, Parking and Telecommunications Manager: This is a lease agreement for City staff to provide parking services on a piece of private property located at the comer of West and Dickson Street. It has recently been resurfaced and turned into a 150 space parking lot. Staff recommends that we provide the parking services in order to generate some revenue into the parking fund and to provide some constituency with our parking regulations and the way that we handle parking in that area. Sharon Jenkins: The information that was passed out yesterday pertains to the paid parking plan which is actually not directly related to this lease agreement but it will have an overall impact once the whole plan is brought to the Council. A discussion followed on the project. Alderman Marr: I want to understand why we are tabling this. The packet that we'receiv.ed in our mailbox speaks to the feedback from the residential program and the discussion that is taking place on the overall downtown parking plan. The Item on our agenda is our support or lack of support for whether we want to manage a private owner's parking lot. I think we are confusing that the information we received in our mailbox relates to this. The piece that relates is the same point that I brought up last Tuesday, there is one item in the contract that requires Lot 55 go to a certain time frame that is the only item in this contract that relates to any information. There actually is no information in this report that speaks to Lot 55. What is in this report is that 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville. org • ) •) • • • City Council Meeting Minutes October 18, 2005 Page 9 of 22 we had a residential neighborhood meeting to solicit feedback on a residential parking program and the issue around the downtown Dickson Street feasibility study that was done in partnership with the University. 1 just want to be clear that I think they are distinctly different. Alderman Jordan moved to table this resolution until the November 1, 2005 City Council meeting. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. This resolution was tabled to the November 1, 2005 City Council meeting. Associated Time & Parking Controls, Inc.: An ordinance waiving the requirements of formal competitive bidding and approving the purchase of Parking Revenue Collection Equipment from Associated Time and Parking Controls, Inc. in the amount of $46,805.10; approving a 10% contingency in the amount of $4,408.50; and approving a budget adjustment in the amount of $51,213.60. This ordinance was tabled at the October 4, 2005 City Council meeting to the October 18, 2005 City Council meeting. Alderman Thiel moved to table this ordinance until the November 1, 2005 City Council meeting. Alderman Jordan seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. This ordinance was tabled to the November I, 2005 City Council meeting. Parking Management Division Position: A resolution authorizing the addition of one (1) full- time position in the Parking Management Division; and approving a budget adjustment in the amount of $3,282.00. Thu resolution was tabled at the October 4, 2005 City Council meeting to the October 18, 2005 City Council meeting. Mayor Coody. In the packet there was information that made it seem the starting pay was almost $31,000, that is the ceiling; it starts at $21,000 and goes to almost $31,000. I just wanted to make that clear. Sharon Jenkins: This position was not in the 2006 budget originally because staff thought we were going to present this to the Council earlier this year with the paid parking plan. When we heard wishes from the Council that they wanted to get more input on the parking program the position was put on hold even though the residential piece was going to be a very important part of what this position was going to help with. So we missed submitting this position with the 2006 budget. Regardless of any other plan we are currently losing revenue by not having this position on the streets. We have a lot of time that we do not have someone on the street because we have one full-time officer and one half-time officer that write parking citations, help the general public, help with special events and they perform all the maintenance on all of our equipment and cleaning of the parking lots. The loss of revenue will more than make up for the salary and all the expenses that this position will generate. The bonus is that if we get this position then we can move forward with the residential parking program which we had 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Meeting Minutes October 18, 2005 Page 10 of 22 tremendous feedback from the residents in that area Without this position we do not have the staffing to provide that service. Alderman Rhoads moved to table this resolution until the November 1, 2005 City Council meeting. Alderman Ferrell seconded the motion. Upon roll call the motion passed 6-1. Alderman Marr, Rhoads, Ferrell, Jordan, Reynolds and Thiel voting yes. Alderman Cook voting no. Alderman Lucas was absent. This resolution was tabled to the November 1, 2005 City Council meeting. RZN-05-1687 (Hopmann): An ordinance rezoning that property described in rezoning petition RZN 05-1687 for approximately 0.18 acres located at 935 North College Avenue from R -O Residential -Office to C-1, Neighborhood Commercial. This ordinance was left on the Second Reading at the October 4, 2005 City Council meeting. Alderman Thiel moved to suspend the rules and go to the third and fmal reading. Alderman Rhoads seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Alderman' Marr: As owner of the Staffing Factor which is a temporary professional staffing business it may be perceived as a conflict of interest since this would be a competitor, therefore I am going to recuse. Alderman Cook: In the C-1 category they are eliminating eating places, gasoline service stations, liquor stores and outdoor music establishments? Jeremy Pate: That is correct. Alderman Cook: From your understanding this is all about that they just want a larger sign. Jeremy Pate: That is my understanding. Alderman Cook: The only comments that I have heard from people is that the street behind this has residential houses. Does this Bill of Assurance go with the land? Jeremy Pate: Yes. Mayor Coody asked shall the ordinance pass. Upon roll call the ordinance passed 6-0. Alderman Marr recused. Alderman Lucas was absent. Ordinance 4778 as Recorded in the Office of the City Clerk. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org • • • • • NEW BUSINESS: City Council Meeting Minutes October 18,2005 Page 11 of 22 Fayetteville Public Library Long Range Funding Plan: A resolution supporting the Fayetteville Public Library in the Development of a Strategic Service Plan and the development of a Long -Range Funding Plan for library services. Alderman Thiel: Does the Library charge Washington County residents for a library card. Since we are considering a millage that would directly relate to Fayetteville citizens, I think there is a concern about citizens outside the City of Fayetteville not being charged a fee. Louise Schaper, Library Director: There is an agreement in Washington County that we do not charge anyone that lives in Washington County to use our library and the other libraries do not charge for the use of their libraries. Alderman Thiel moved to approve the resolution. Alderman Jordan seconded the motion. Upon roll call the resolution passed 7-0. Alderman Lucas was absent. Resolution 207-05 as Recorded in the Office of the City Clerk. Amend >Z166.06 Planned Zoning District (PZD): An ordinance amending §166.06, Planned Zoning District (PZD), Unified Development Code, Code of Fayetteville, to provide for Planning Commission review of all PZD Master Development Plans. City Attorney Kit Williams read the ordinance. Alderman Marr: 1 brought this forward. This allowed a person to bring forward a master concept plan without going to the level of detail that our current PZD process required. This change would still allow that option but would take it to the Planning Commission before it came to the Council to discuss the laundry list of things that we have experienced in the Pratt Place concept PZD. 1 would argue the architect's earlier point that by changing this we are sending it back to a large investment on the front end because it is still a concept PZD which allows individuals to talk in concept to get through these items to bring to the Council. It does not require the level of design that the existing PZD process did. Since 1 was a vote in majority in a 5-4 split of the Council and have experienced something that I do not believe will save developers time and doesn't give citizens the same level of notice that is why I brought this forward. Jeremy Pate gave a brief description of the ordinance. Alderman Cook: Thank you for bringing this back. That was one of my concerns initially. I supported the concept design and I still support the concept PZD but 1 think we have learned how beneficial the Planning Commission review is. A discussion followed on the ordinance. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi I I e.org City Council Meeting Minutes October 18, 2005 Page 12 of 22 Alderman Cook moved to suspend the rules and go to the second reading. Alderman Marr seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Alderman Marr moved to suspend the rules and go to the third and final reading. Alderman Jordan seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Mayor Coody asked shall the ordinance pass. Upon roll call the ordinance passed 6-1. Alderman Marr, Rhoads, Jordan, Reynolds, Thiel and Cook voting yes. Alderman Ferrell voting no. Alderman Lucas was absent. Ordinance 4779 as Recorded in the Office of the City Clerk l Bio -Based Technology Offer and Acceptance: An ordinance waiving the requirements of §34.27, Code of Fayetteville and approving an Offer and Acceptance Contract with Bio -Based Technologies in the amount of $940,000.00 for the purchase of the Water & Sewer Operations Center on Cato Springs Road; designating the proceeds for Economic Development purposes; and approving a budget adjustment implementing the designation. City Attorney Kit Williams read the ordinance. Steve Russ, FEDC gave a brief description of FEDC and information regarding Bio -Based Technologies. A conference call was conducted with Tom Muccio of Bio -Based Technologies. He stated they are a green company. He stated in the polyethylene market they are the best altemative. Alderman Ferrell thanked him; for considering Fayetteville. Chuck Chadwick an attorney spoke on behalf of some of the residents. He stated they had three concerns, how will this affect the adjacent land owners specifically, they are all tax payers in the City of Fayetteville how will this affect them as tax payers of the City of Fayetteville and can they get a sewer easement through their property. He stated the City of Fayetteville has planned a sewer and utility easement along the side of the railroad track that will end up at some of the resident's property. He stated the owners of property in this area have contracts on their property and he does not want this utility easement that will be reserved to harm the potential buyers of property in that area. Tom Muccio stated he believes their development will be an asset to the City of Fayetteville and to the neighbors. He stated they are a green company and their intention is to make that a showplace in terms of the campus. We think it will be an asset to the property owners. He stated he thinks they will bring a lot of knowledge based jobs to the City as well as taxes in terms of their development. He stated the easement will be determined once they work with their 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org • • City Council Meeting Minutes October 18, 2005 Page 13 of 22 architects and lay out the campus. He stated their intent is to be the best neighbor that they could possibly be to the adjoining land owners and that it is in their best interest to have the entire corridor developed in way that is going to make the City of Fayetteville very proud. Chuck Chadwick asked why the City would accept less than market value for the property. Tom Muccio spoke of the company and the step they have taken to move to Fayetteville. He also said he thinks the price the City of Fayetteville is recommending, based on the appraisal that has been made on the property is a fair price. Chuck Chadwick asked about the company and how it was formed. He also voiced his concerns about the product that will be produced at the site. He stated his clients are concerned about the type of products that will be produced at the facility which is next to his client's property. Terry Easton a resident of the area voiced her concern about the project. She reminded the Council of a previous company that was located in this area in the past that was a problem to the neighborhood. She stated she admires and looks forward to the opportunity to have economically green businesses in our City. She stated it is necessary and the only way that our country will survive. She stated she supports the University of Arkansas and the mission for providing technology and resources to help these businesses grow. She asked several questions about the project. She asked why this had to be located in the middle of a residential re- development area that has suffered in the past from a blending operation. Ron Woodruff an attorney opposed the offer and acceptance on behalf of his clients. He asked about the product that will be produced on the site and how safe the product will be. He also voiced his concern about the purchase price not being market value. Ron Goforth stated he visits companies of this nature around the country. He stated this approach of a knowledge based technology enterprise has a very substantial merit. He stated he has done environmental impact assessments and social economic impact assessments. He stated he has visited the facility in Rogers and there is a limited opportunity of anything going wrong. He stated he feels this is exactly the type of company that we need to have in our City. He urged the Council to move expeditiously on this and to not lose the opportunity that Bio -Based represents. Renee Thomas stated she is concerned about the City taking less than the appraised value. She also stated there are lots of projects that have been started to revitalize that area but industrial should not be one. She stated Bio -Based is great for Fayetteville but is in the wrong location. Doris Treat asked if the storage tanks will be below or above ground. She also voiced her concern about the use of the railroad for this project, the noise it will cause and the traffic that will back up due to the train. Mark Bickford stated he does not feel this facility needs to be built on this property because of the train situation. He asked why they could not be located in the industrial park. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi1le.org City Council Meeting Minutes October 18, 2005 Page 14 of 22 Tom Stockland stated the entity that is buying this land is a month old. He stated that is a true statement. He said Bio -Based Technologies is a stand alone company that has been in existence for two or three years. The technology that it bought and brought into it has been in existence longer. This is not a shell company that can fold and there be no cost involved that is just not happening. Tom Muccio stated there is nothing in their lab that is not in any of the chemistry labs at the University of Arkansas or the high schools, local stores or home medicine cabinets. Alderman Thiel asked if the Council could tour the facility and if he could be available to answer any questions during the tour. A tour of the facility was scheduled. Kit Williams asked the Council to amend the ordinance so that the title reads approving a real estate sales contract and the same change to Section I. Alderman Rhoads moved to amend the ordinance title and Section 1 of the ordinance to read A Real Estate Sales Contract. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. This ordinance was left on the first reading. Fayetteville Municipal Property Owners' Improvement District No. 11 - West Side Village: An ordinance to establish and lay off Fayetteville Municipal Property Owners' Improvement Distnct No. 11 - West Side Village. City Attorney Kit Williams read the ordinance. Alderman Jordan moved to suspend the rules and go to the second reading. Alderman Ferrell seconded the motion. Upon roll call the motion passed 6-0. Alderman Rhoads and Reynolds were absent during the vote. Alderman Lucas was absent. Mayor Coody voted yes. City Attorney Kit Williams read the ordinance. Alderman Jordan moved to suspend the rules and go to the third and final reading. Alderman Thiel seconded the motion. Upon roll call the motion passed 6-0. Alderman Rhoads and Reynolds were absent during the vote. Alderman Lucas was absent. Mayor Coody voted yes. City Attorney Kit Williams read the ordinance. Mayor Coody asked shall the ordinance pass. Upon roll call the ordinance passed 6-0. Alderman Rhoads was absent during the vote. Alderman Lucas was absent. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi11e.org • •) • • i • • • Ordinance 4780 as Recorded in the Office of the City Clerk. City Council Meering Minutes October 18, 2005 Page 15 of 22 Water and Wastewater Impact Contract- Duncan Associates: An ordinance waiving the requirements of formal competitive bidding and awarding a contract (Phase I) to Duncan Associates in the amount of twelve thousand three hundred dollars ($12,300.00) to update the existing Water and Wastewater Impact Fees and to calculate additional Wastewater Impact Fees. City Attorney Kit Williams read the ordinance. Jeremy Pate gave a brief description of the ordinance. Alderman Jordan asked how much money has been received in impact fees since they were established. Tim Conklin: Around $1.8 million dollars. Steve Davis: 1 believe the wastewater impact fees have generated about $1.9 million and about $1 million in water impact fees. Alderman Ferrell: Will this be paid for with impact fees. Tim Conklin: The study will be financed with the water and wastewater fund not by the impact fee fund. Alderman Ferrell asked if impact fee funds could be used to pay for this and if the staff would look into using impact fee money. Kit Williams: We have to be careful in spending impact fees for capacity improvements. The original impact fee ordinance did not call for spending money that has been collected for this; it is to be used for new pipes or the treatment plant. I think they can only be used for an increase to the capacity. Impact fees have to be kept in their own fund and spent on only what is allowed under the law. Alderman Cook: I appreciate this coming forward. Originally our impact fees were based solely on the new Westside plant; this will expand it to the full collection system and the lift stations. Alderman Jordan moved to suspend the rules and go to the second reading. Alderman Cook seconded the motion. Upon roll call the motion passed 6-0. Alderman Rhoads was absent during the vote. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Alderman Jordan moved to suspend the rules and go to the third and final reading. Alderman Cook seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi ll e.org City Council Meeting Minutes October 18,2005 Page 16 of 22 City Attorney Kit Williams read the ordinance. Mayor Coody asked shall the ordinance pass. Upon roll call the ordinance passed 6-1. Alderman Marr, Rhoads, Jordan, Reynolds, Thiel and Cook voting yes. Alderman Ferrell voting no. Alderman Lucas was absent. Ordinance 4781 as Recorded in the Office of the City Clerk. ADM -05-1744 Walnut Crossing: An ordinance amending a Residential Planned Zoning Distnct entitled R-PZD 04-1181, Walnut Crossing, located north of Highway 62 and east of Farmington, containing approximately 52.98acres, more of less, to reflect revised side setbacks as described and depicted herein. City Attorney Kit Williams read the ordinance. Jeremy Pate gave a brief description of the project. Kim Hesse stated their intention is to build 1,100 to 1,600 square foot homes. By reducing the set hacks they will be able to attain this. Alderman Thiel: If you are changing the foot print, does that change the detention pond and the drainage? Kim Hesse: I believe it will but only slightly and we are well over designed in our drainage. Alderman Ferrell: What will the price range be? Kim Hesse: $110,000 to $160,000. Alderman Jordan: I have not had any calls on this. Alderman Jordan moved to suspend the rules and go to the second reading. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Alderman Jordan moved to suspend the rules and go to the third and final reading. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Mayor Coody asked shall the ordinance pass. Upon roll call the ordinance passed 7-0. Alderman Lucas was absent. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi Ile.org • •) •) • Ordinance 4782 as Recorded in the Office of the City Clerk. • City Council Meeting Minutes October 18, 2005 Page I7 of 22 RSF-8 Zoning Classification: An ordinance amending Title XV: Unified Development Code, of the Code of Fayetteville, to provide a new residential zoning district. City Attorney Kit Williams read the ordinance. Tim Conklin gave a brief description of the ordinance. Alderman Cook permitted uses are single family dwellings and everything else is conditional use. I like having this opportunity in our zoning classification. Jim Jarnagan, a resident of the area stated he thinks this is a wonderful proposal. He voiced his concern about the height restriction. He stated he feels the height needs to be higher or eliminated. Tim Conklin said in the hillside ordinance he thought we went to 45 feet. Staff would not be opposed to recommending that modification to this ordinance. • A discussion followed on the height requirement. Alderman Marr moved to amend the ordinance to change the height restriction to 45 feet. Alderman Thiel seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. Alderman Marr moved to suspend the rules and go to the second reading. Alderman Cook seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Alderman Marr moved to suspend the rules and go to the third and final reading. Alderman Reynolds seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Mayor Coody asked shall the ordinance pass. Upon roll call the ordinance passed 7-0. Alderman Lucas was absent. Ordinance 4783 as Recorded in the Office of the City Clerk. Design Overlay District: An ordinance to amend §161.24 Design Overlay District, Subsection (D) (2) Signs. City Attorney Kit Williams read the ordinance. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Meeting Minutes October 18, 2005 Page 18 of 22 Kit Williams: I brought this forward to try to remove the content based sign regulation that we had in our Overlay District that was not any where else within the City and is probably questionable at best from a constitutional point of view. Alderman Marr: Are there any signs that have currently been denied that would have been allowed. Kit William: There are some signs that probably can be changed. This is a common thing that cities can be attacked on. Jeremy Pate: We have had several variances approved. Kit Williams: That is the problem when we pick and choose which person we allow to have their name only on a sign and which ones we allow to have a slogan. This will be more uniform for all. A discussion followed on the sign ordinance. Alderman Reynolds moved to suspedd the rules and go to the second reading. Alderman Marr seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Alderman Marr moved to suspend the rules and go to the third and final reading. Alderman Reynolds seconded the motion. Upon roll call the motion passed 6-1. Alderman Marr, Rhoads, Jordan, Reynolds, Thiel and Cook voting yes. Alderman Ferrell voting no. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Mayor Coody asked shall the ordinance pass. Upon roll call the motion passed 6-1. Alderman Marr, Rhoads, Jordan, Reynolds, Thiel and Cook voting yes. Alderman Ferrell voting no. Alderman Lucas was absent. Ordinance 4784 as Recorded in the Office of the City Clerk. Police and Public Safety Systems Impact Fees - Chapter 159 Fees: An ordinance to amend Title XV Unified Development Code of Fayetteville, Chapter 159, Fees by enacting §159.03 Police and Public Safety Systems Impact Fees of the Unified Development Code. City Attorney Kit Williams read the ordinance 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Meeting Minutes October 18, 2005 Page 19 of 22 Alderman Jordan moved to suspend the rules and go to the second reading. Alderman Reynolds seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. Kit Williams: For the record my original draft of this was to send this to a vote of the people to avoid the possible problem that a court might determine that these impact fees are in fact taxes even though they are noted as impact fees in the statue. I have sent you several memos as to why I am concerned about that. I remain concerned especially since this statue has never been interpreted by a court and these fees generate millions of dollars which are enough to interest attorneys that specialize in suing cities. My recommendation continues to be that you refer this to a vote of the people. A discussion followed on impact fees in other cities. Alderman Rhoads: Is there an Attorney General opinion on this? Kit Williams: Yes, the Attomey General said this is a fee and not a tax and that he did not feel there needed to be an election. Alderman Ferrell moved to amend the ordinance to send this to a vote of the people. Alderman Reynolds seconded the motion. Alderman Rhoads: If we vote this down and then later vote the ordinance as it stands are we prohibited from bringing it up again to send it to a vote of the people? Mayor Coody: No. Kit Williams: Instead of being a majority vote to send it to the people then I think it requires a two thirds vote. The reason we did not have to vote on the water and sewer impact fees is because the Supreme Court has sanctioned water and sewer impact fees as fees not taxes. The other thing is the difference between water and sewer services the City provides to individual customers through pipes. They provide them only to paying customers; it is not a benefit to the City as a whole. Police, fire and roads are a community benefit you do not have to live here to take advantage of those. Those are general community benefits. What the court stated in one case was that water and sewer impact fees were okay because they provided a benefit to the payers and only to them. They said the contrast was in the ones they found to be a tax is that they were a community benefit. Alderman Marr: I highly respect Kit's opinion and try to always weigh his advise heavily. We have two pieces of legal advice in this scenario, our City Attorney's and our State Attorney's advise. I have a hard time believing that police and fire, that is directly related to home owner's safety and protection, that it is not directly beneficial. On the flip side of it that tourist do not use water and sewer as a general benefit of the community when they go to our parks and motels and hotels. I think it is our fob if we believe that we can talk about the direct benefit and impact of growth that our City Attorney can defend us in that situation and that we have the support of the 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) ac ces s fay ettev i I I e. org City Council Meeting Minutes October 18, 2005 Page 20 of 22 State position in our analysis. If people do not like this they can take petitions out and get signatures and we can have an election anyway. 1 think there are,opportunities to address this. Mayor Coody: The one thing that makes me curious is that water and sewer improvements are paid out of our Water and Sewer Fund which is collected by the users every month. Fire and police are paid out of the General Fund, Sales Tax that fact right there gives me enough pause to say that if the public would support it why not go ahead and have it voted on by the people that would stand a court challenge. Kit Williams: I would ask that we not vote on the amendment tonight. Alderman Ferrell moved to withdraw his amendment to send this to a vote of the people. Alderman Reynolds withdrew his second. This ordinance was left on the second reading. Fire Protection Systems Impact Fee - Chapter 159. Fees: An ordinance to amend Title XV Unified Development Code of Fayetteville, Chapter 159, Fees by enacting §159.04 Fire Protection Systems Impact Fees of the Unified Development Code. City Attorney Kit Williams read the ordinance. Alderman Jordan moved to suspend the rules and go to the second reading. Alderman Marr seconded the motion. Upon roll call the motion passed 7-0. Alderman Lucas was absent. City Attorney Kit Williams read the ordinance. This ordinance was left on the second reading. Greenland and/or.Farmington Sewer Systems: A resolution to express the intent of the City Council to assume the ownership and the operation of the Greenland and/or Farmington Sewer Systems. Alderman Cook: We have been negotiating with Farmington about taking over their system. The last discussion we had with them their City Attomey stated that he wanted to have some idea if the City of Fayetteville was interested in doing this. Steve Davis: The sewer negotiations with Farmington and Elkins have been in compliance with the resolution that was passed that whatever the results of those sewer contract negotiations that the Fayetteville rate payers not be negatively impacted or that they be held harmless In looking at Elkins it was a fairly straight forward analysis. Farmington is different because we have retail customers that we invoice in Farmington and provide services to. If our customer base in Farmington goes away, the bottom line from a financial perspective is if the Farmington customer base disappears it would equal about a fifteen cent per thousand rate increase for 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi I I e.org • • 1 �) City Council Meeting Minutes October 18, 2005 Page21 of22 • Fayetteville residents to cover the fixed cost that is currently being paid by Farmington rate payers. That fixed cost is in depreciation and debt service primarily. • Kit Williams: Does that mean as Fayetteville grows and we get more sewer customers as we annex in stuff that lowers everyone's rate payment? Steve Davis: As you spread' your fixed cost around more customers, yes. Alderman Cook: 1 struggle with that. 1 agree philosophy with that but as we annex specifically I struggle with that because while we are spreading the customer base out we are also spreading our system out and we are spreading it out in an in -efficient manner. If we want to spread it out around more customers 1 would think we would want to do that within the system that is already in place. Teresa Clark, a Farmington resident stated the citizens of Farmington have a few concerns, she stated what they need is more than the letter that the Mayor's have signed. She stated they need to know rate parity and Fayetteville's intent. She stated if Fayetteville owns Farmington's sewer system can Fayetteville stifle their growth. She wanted to know if Fayetteville will treat Farmington just like they do treat themselves. Ernie Penn, Farmington City Council member stated he would like a timeframe established on this negotiation period. He said they need to know if they are wasting their time. He said they need to know that this is going to be a negotiation that is in good faith, that will go forward and an agreement will be worked out that will be a good partnership between the two cities. The City of Farmington does not have the resources or the revenue to do the things that they need to do to that system. He stated the current contract is very vague and does not cover all the areas of their system. He said their whole system technically over the last 15 years, has been ignored except for when they had a break in the line or a situation to where the City of Fayetteville had to come out and immediately take care of, which they always did. He commended the people that work for Fayetteville; they have always taken good care of us. He appreciates the fact that Fayetteville is going to pay for another study that is going to address this rate parity. He said impact fees are something that we could offer if in fact our system is taken over by Fayetteville. He stated timeliness is very important. Kit Williams: When you say rate parity you don't mean rate equality do you? Ernie Penn: Not necessarily. Alderman Marr: When I here arguments about rate parity, no growth limits, priority in repairs and capital improvements I think it is unfair to expect that it wouldn't be evaluated against our total system. When we are struggling with our own sewer capacity, our own development and annexation amounts that we can do and then to have an unlimited contract for Farmington or anyone else, I do not believe I could ever support no growth limits in a contract I think it is our responsibility to take care of our boundaries and not be doing any expansion on management time and cost that affects the overall ability for us to deliver core services at the best cost for our own citizens. You are asking us to create this growth in the system with rate parity and no growth limits that creates an economic base that drains from our sales tax base which is the 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayet tevi I I e.org City Council Meeting Minutes October18,2005 Page 22 of 22 primary funding mechanism of our City today because that is how we fund Fayetteville. I continue to have serious concerns about investing our money for someone else to become an economic center, to take from our predominant revenue base with no growth limits, financial impact on our citizens and a set aside prioritization on capital improvements against our own needs. It is not that I don't think we are negotiating in good faith, I personally don't agree with the philosophy of taking over every other cities trash, water or anything else. Alderman Cook moved to table the resolution until the November 1, 2005 City Council meeting. Alderman Jordan seconded the motion. Upon roll call the motion passed 6-1. Alderman Marr, Rhoads, Ferrell, Jordan, Thiel and Cook voting yes. Alderman Reynolds voting no. Alderman Lucas was absent. This resolution was tabled to the November 1, 2005 City Council meeting. Meeting Adjourned at 11:40 PM. Dan oody, Mayor rwiL- Sohdra Smith, City C1erlf/Treasurer 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi1le.org •