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HomeMy WebLinkAbout2009-01-06 MinutesMayor Lioneld Jordan City Attorney Kit Williams City Clerk Sondra Smith TayVCLtC11e City of Fayetteville Arkansas City Council Meeting Minutes January 6, 2009 City Council Meeting Minutes January 6, 2009 Page 1 of 13 Aldermen Ward I Position I —Adella Gray Ward 1 Position 2 — Brenda Thiel Ward 2 Position I — Kyle B. Cook Ward 2 Position 2 —Matthew Petty Ward 3 Position 1 — Robert K. Rhoads Ward 3 Position 2 — Robert Ferrell Ward 4 Position 1 — Shirley Lucas Ward 4 Position 2 —Sarah E. Lewis A meeting of the Fayetteville City Council was held on January 6, 2009 at 6:00 PM in Room 219 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Oaths of Office: Brenda Thiel Alderman Ward 1 Matthew Petty Alderman Ward 2 Robert Ferrell Alderman Ward 3 Sarah E. Lewis Alderman Ward 4 Sondra E. Smith City Clerk/Treasurer Mayor Jordan called the meeting to order. PRESENT: Alderman Thiel, Cook, Petty, Rhoads, Ferrell, Lucas, Lewis, Mayor Jordan, City Attorney Kit Williams, City Clerk Sondra Smith, Staff, Press, and Audience, ABSENT: Alderman Gray Pledge of Allegiance. Mayor's Announcements, Proclamations and Recognitions: Presentations, Reports and Discussion Items: Election of Vice Mayor: Alderman Rhoads nominated Alderman Brenda Thiel Alderman Lucas nominated Alderman Bobby Ferrell 113 West Mountain 72701 (479) 521-7700 (479) 575.8257 (Fax) accessfayetteville.org City Council Meeting Minutes January 6, 2009 Page 2 of 13 Alderman Rhoads, Lewis, Thiel, and Petty voted for Alderman Brenda Thiel. Alderman Ferrell, Lucas, and Cook voted for Alderman Bobby Ferrell. Alderman Gray was absent. Alderman Brenda Thiel was elected as Vice Mayor. Report on the Firemen's and Policemen's Pension and Relief Fund — Mayor Mayor Jordan gave a report on the Firemen's Pension and Relief Fund and the Policemen's Pension and Relief Fund. A copy of the report is attached. Mayor Jordan: This is Paul Becker's report so whatever questions you may have for him please fire away. Alderman Petty: I read in the memo from our City Attorney that currently the pensioners are drawing more than they earned while in service and I was wondering if that statement was inflation adjusted. Paul Becker, Finance and Internal Services Director: That is not inflation adjusted. Alderman Thiel: Could you explain how the board acts and how the raises are acquired. Paul Becker: The Board votes on what the Pension allocations are which is controlled by the Pension Boards not the City. They have had increases since they were originally established. As we all recognize the economic situation and investment situation for all pension funds have changed dramatically this year. These funds have been worsening in the past years and the pension boards have been advised of this and they are looking at potential options. This is a situation that is going to have to be dealt with in one way or the other. Alderman Thiel: What can be done? Paul Becker: The most straight forward option would be to prorate or reduce the benefits to a point where they are affordable over the long term plan. Another option is you would have to look at other ways of funding it. There is a third option that it could be sent to LOPFI a State Pension Fund. However, that would be expensive and would have to be funded by the City of Fayetteville. Alderman Lewis: We are deciding whether or not to send it to the Legislature is that right? Alderman Thiel: You said your first option was that "we" could. This body has control? Paul Becker: The Pension Board would have to vote to prorate. The City Council does not control that. The Pension Board would have to consider a proration or reduction of benefits to the point that they were affordable. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Meeting Minutes January 6, 2009 Page 3 of 13 Alderman Lewis: Will the City Council act on this again or will the Board act and then it will come back to us? How does that work? Paul Becker: At this point in time it would be up to the Pension Boards to deal with this. It would not be scheduled to come back for action to the City Council at this point in time. It is not a question or decision for the City Council. However it is the responsibility to annually report the condition of these funds to the Council and the public. Alderman Ferrell: I am assuming that the five member board and the Mayor and City Clerk make up the Pension Board. Paul Becker confirmed that was correct. Alderman Ferrell: Are they cognizant of the financial shape and were they the last time they voted for a raise? Paul Becker: That was before I was here. The Fire Pension asked to institute a COLA which you have to submit to the Pension Review Board and that was found not to be an available action by the actuary. It failed a cash flow test so they could not grant that. Sondra or Kit would have to help me on the last time there was a pension increase. City Attorney Kit Williams: There have been a few pension increases. The Primary ones occurred in 1999 and 2001 when the raises went up to 90%. They started originally by State law at 50% of ending pay and by 2001 both pension funds voted a 90% benefit. All of the benefits that have been voted on have gone through the State Pension Board and been approved by the Pension Board and their actuarial people there based on a cash flow analysis. It's not like they violated any rules when they were raising their benefits. Additional benefits were voted on after 2001 specifically a COLA for the Police. It was a five year 3% COLA and there was concerns from administration and staff at that point in time that the funds were not actuarially sound but they could still be approved on the cash flow basis which they were. At this point in time I think neither fund would be approved by the State for any further increases because they would not be able to meet the standards. Alderman Ferrell: So they are subject to scrutiny by the State Pension Board? City Attorney Kit Williams: Yes. Alderman Cook: So what are the odds of this becoming a liability to the City? Paul Becker: The odds are predicated by legally what is our responsibility. We have been advised by the City Attorney that we have no obligation to fund this and it's a liability for the oversight boards. City Attorney Kit Williams: The current status of the law is that the City Council would get to decide whether or not to send these two pension funds to the State LOPFI system which would protect them but it would mean the citizens of Fayetteville would have to pick up the slack with 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Pax) accessfayetteville.org City Council Meeting Minutes January 6. 2009 Page 4 of 13 maybe as much as $20 million over the life of these pensions. That can only happen under the current law, if you all as a City Council voted to do that. Two years ago there was a Bill presented at the State Legislature that took away your right to decide which said they would automatically go -if there is no active members. Fortunately we were able to find out about this law and we spoke with the Representative and he was polite enough to withdraw his Bill that had been filed. You never know what will happen in the future. Alderman Rhoads: Kit when you wrote the memo 27 months ago did anyone respond to you and if so what was the response? City Attorney Kit Williams: We have spoken about this at the Pension Board Meetings. There has been that kind of response that we are very concerned. I know the Mayor and City Clerk expressed their concerns and they have been opposed to any future increases. In fact, as Paul said, some reduction might be needed in order to try to maintain the liquidity of the fund. Alderman Rhoads: Was that your thinking or was that their response? City Attorney Kit Williams: That is my thinking. I would ask Sondra to speak for herself. She is the Secretary of the Board and a voting member. She has been concerned about this for a number of years. City Clerk Sondra Smith: Yes it has been a concern of mine. At the January Pension meetings I plan on proposing a benefit decrease. You have to understand though that there are four pensioners that sit on the Firemen's Pension Board and two City employees, the Mayor and I, so it is very difficult to get anything passed that they choose not to pass. The Policemen's Pension is not in quite as rough of shape as the Firemen's Pension so therefore I think the Firemen's Pension needs to have a larger decrease. Alderman Rhoads: What is the pension board's solution? I can understand them being against the reduction but have they come up with a better idea. City Clerk Sondra Smith: Not at this point in time. I have not heard any solutions from the actual pensioners or the pension board. Alderman Rhoads: Do they understand that in bad times everybody has to take a haircut? City Clerk Sondra Smith: This has been discussed since 2003. We have been discussing the benefits and if the market declined how it could be a determent to the fund. Alderman Cook: What is the goal of that? If they know that it is going to deplete the fund and they are not willing to do anything to rectify it that seems to me that the City is going to have to pick up the tab somewhere or the retirement benefits are just going to go away. Surely they are not going to let that happen. City Attorney Kit Williams: I think they assume that something would save them and either the City would send them to LOPFI or some other revenue source would increase like the turn 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Pax) accessfayetlev i lle.org City Council Mecting Minutes January 6, 2009 Page 5 of 13 back on the insurance premiums. We are talking about something that is years away and so it is pretty easy to say we will get to it next year but I don't want to lose any money this year. I think that has been the problem over the last five years that we have been looking at something that has gotten more severe the last two or three years but was obviously an indication of a problem at least five years ago. Mayor Jordan: I talked to one of the people that sat on the Pension Board and they are going to have the actuary come up in January and get their opinion at the meeting so there will be more discussion on this at that point in time. Alderman Ferrell: If there is action decided can we be made aware of that so that we can see what is going on down the road as opposed to waiting until the end of the year. Mayor Jordan: You bet. We will keep you posted on what is going on. If you want a monthly report or whatever we will give you one. City Clerk Sondra Smith: We can get them copies of the minutes. Housing Authority Board Appointment: Alderman Cook: Their board met and they selected Beautiful Gibson. We interviewed the applicants and she was in our top three choices. I do not feel that the committee had any problem with her as a selection. Alderman Cook moved to approve the appointment of Beautiful Gibson to the Housing Authority Board. Alderman Lucas seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. Advertising and Promotion Commission Appointment: Mayor Jordan: That is an appointment that I make. I am going to serve on that board and I have asked Alderman Rhoads to also continue serving on that Board. Alderman Ferrell moved to approve the appointment of Lioneld Jordan and Robert Rhoads to the Advertising & Promotion Commission. Alderman Cook seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. Agenda Additions: None 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Meeting Minutes January 6, 2009 Page 6 of 13 Mayor Jordan: We are going to remove # 3: Bid # 08-72 Honda of Fayetteville. We are removing them because they are 4 -wheel drive and we are trying to get away from having so many 4 -wheel drive vehicles. Alderman Ferrell moved to permanently table #3 Bid # 08-72 Honda of Fayetteville. Alderman Cook seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. Alderman Ferrell: There will be another bid coming back through but they will be 2 -wheel drive. Approval of the December 2, 2008 and December 16, 2008 City Council meeting minutes. Bid # 08-71 Golden Circle Ford: A resolution awarding Bid # 08-71 and approving the purchase of one (1) sign body truck with crane from Golden Circle Ford of Jackson, Tennessee in the amount of $73,582.00 for use by the Transportation/Traffic Division, such approval being contingent upon the sign body meeting the required specifications. Resolution 01-09 as Recorded in the office of the City Clerk. Bid # 08-72 Honda of Fayetteville: A resolution awarding Bid # 08-72 and approving the purchase of two (2) Honda Elements from Honda of Fayetteville in the amount of $38,516.00 for use by the Parks & Recreation and Community Resources/Code Compliance Divisions. This item was removed from the agenda and Tabled Indefinitely. McKinney Dodge: A resolution approving the purchase of two (2) Dodge Charger Police Pursuit Sedans from McKinney Dodge of McKinney, Texas through the state vehicle purchase contract in the amount of $20,318.00 each plus approximately $7,000.00 per unit for up -fit items. Resolution 02-09 as Recorded in the office of the City Clerk, Patrick J. Tobin Revocable Trust: A resolution authorizing the Mayor to sign a quit -claim deed of approximately 5.51 acres to the Patrick J. Tobin Revocable Trust to correct a previously recorded Warranty Deed. Resolution 03-09 as Recorded in the office of the City Clerk. Greenland Sewer Service: A resolution to approve a two year agreement to continue sewer service for Greenland. Resolution 04-09 as Recorded in the office of the City Clerk. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Meeting Minutes January 6, 2009 Page 7 of 13 Local Police and Firemen's Pension Programs: A resolution to request legislation to fully and fairly fund Local Police and Firemen's Pension Programs. Resolution 05-09 as Recorded in the office of the City Clerk. Alderman Ferrell: I appreciate the Chief of Police and the vehicle people considering the Dodge Chargers. We talked about trying to get away from the Ford Interceptors, the big cars. The Chief has agreed to try out a couple of these Dodges and I applaud him for that. Alderman Lucas moved to approve the consent agenda. Alderman Cook seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. Unfinished Business: Park West, LLC Cost Share: An ordinance waiving the requirements of formal competitive bidding and approving a cost -share agreement with Park West, LLC in the amount of $2,157,000.00 for the upgrade of the future location of Highway 112 through Phase 1 of the Park West Development from two lanes to a four -lane boulevard. This ordinance was left on the First Reading at the December 2, 2008 City Council meeting. This ordinance was left on the Second Reading at the December l6, 2008 City Council meeting. Alderman Ferrell moved to suspend the rules and go to the third and final reading. Alderman Petty seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. City Attorney Kit Williams read the ordinance. Alderman Lucas: Has it been to the Street Committee? Mayor Jordan: No it has not. Ron Petrie, City Engineer: We have a Street Committee meeting scheduled for next week. Alderman Lewis: I would like to see it go to the Street Committee. Alderman Petty moved to table the ordinance to the January 20, 2009 City Council meeting. Alderman Lucas seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. This ordinance was Tabled to the January 20, 2009 City Council meeting. I-PZD 08-3062 (Westside Storage): An ordinance establishing an Industrial Planned Zoning District Titled I-PZD 08-3062 Westside Storage, located at 1192 North Rupple Road, containing approximately 0.77 acres; 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 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) acccssfayetteville.org City Council Meeting Minutes January 6, 2009 Page 8 of 13 at the December 2, 2008 City Council meeting. This ordinance was left on the Second Reading at the December 16, 2008 City Council meeting and Tabled to the January 6, 2009 City Council meeting. Alderman Ferrell moved to suspend the rules and go to the third and final reading. Alderman Lucas seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. City Attorney Kit Williams read the ordinance. Jeremy Pate, Director of Current Planning gave a brief up date on the project. He proposed two amendments to the project. Amendment One states all remaining parking places adjacent to Rupple Road shall be removed or screened. Alderman Lucas moved to amend Condition of Approval # 3 to state all remaining parking places adjacent to Rupple Road shall be removed or screened. Alderman Lewis seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. Alderman Cook: Is the applicant okay with that? Steve Clark, Clark Consulting: We are good with that item. Jeremy Pate recommended Condition of Approval # 7 be removed and new language be added. Jeremy read the new language for the Council. Alderman Thiel moved to remove Condition of Approval # 7 and insert new language as proposed by staff. Alderman Lucas seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. Steve Clark: My client's concern is what precipitated this is the right of way acquisition along Rupple Road. The City has asked him to settle that and to dedicate the right of way. He wants to be assured that if he settles that he will be able to build the building and the new office in the complex that he is going to have to build. If the Planning Commission or City Council says you must preserve the two trees then he can't do the development that he needs to do. I don't know that there is a solution. What is being proposed leaves him in limbo because if the trees have to stay then he can't build what he needs to build. If he can't build then he can't settle the right of way Issues. Dennis Caudle: I do not agree with the amendment. The purpose of all these months of work was to get a determination from the Council that I would be able to build this building for the reasons stated. The project forced us into this situation and it was recognized as the alternative to correct the damage that is going to be done on the existing driveway and the business as a whole. I spent $20,000 to get to this point and have nothing. The tree issue should have never been an issue. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Pax) accessfayetteville.org City Council Meeting Minutes January 6, 2009 Page 9 of 13 A discussion followed on the previous bill of assurance that was offered by the applicant several years ago. City Attorney Kit Williams: If we pass the planned zoning district as presented by the Planning Department and allow Mr. Caudle's engineer to go ahead and do the large scale development plat and take it through the process, I think this will probably work itself out. Alderman Cook: I would much rather make the decision to keep those trees but I think we need to let it go forward and let the Planning Commission and staff handle it. City Attorney Kit Williams: We need to keep in mind that we put him in this bad spot and we need to try to work with him. Alderman Ferrell: I think he is uncertain about whether he will prevail or not. Alderman Lewis: Passing this seems to help move the process along. Alderman Lucas: This is a concept plan and we don't usually get so detailed at this point. I certainly want to work with the applicant. Dennis Caudle: We are at odds over two trees. This is what I would need as a remedy to what has been done. Mayor Jordan asked shall the ordinance pass. Upon roll call the ordinance passed 7-0. Alderman Gray was absent. Ordinance 5210 as Recorded in the office of the City Clerk Villas at Stonebridge Appeal: An ordinance establishing a Residential Planned Zoning District Titled R-PZD 06-2170, Villas at Stonebridge, located south of Highway 16 East and east of Goff Farm Road; containing approximately 53.03 acres; 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 December 2, 2008 City Council meeting. This ordinance was left on the Second Reading at the December 16, 2008 City Council meeting. Jeremy Pate: The applicant has requested his item be tabled for a couple of meetings. Alderman Rhoads moved to table the ordinance to the February 3, 2009 City Council meeting. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. This ordinance was Tabled to the February 3, 2009 City Council meeting. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Meeting Minutes January 6, 2009 Page 10 of 13 VAC 08-2982 (Markham Hill Cottage Courts): An ordinance approving VAC 08-2982 submitted by Northstar Engineering Consultants, Inc. for property located north of Maine Street, between Sang Avenue and Cross Avenue to vacate portions of two alleys, a total of 0.30 acres, in order to develop the Markham Hill Cottage Courts. This ordinance was left on the First Reading at the December 16, 2008 City Council meeting. Alderman Thiel 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 Gray was absent. City Attorney Kit Williams read the ordinance. Jeremy Pate gave a brief update on the vacation. Alderman Lucas moved to amend the ordinance to adopt the amended exhibits. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Gray was absent. Gray was absent. Alderman Ferrell moved to suspend the rules and go to the third and final reading. Alderman Cook seconded the motion. Upon roll call the motion passed 7-01 Alderman Gray was absent. City Attorney Kit Williams read the ordinance. Mayor Jordan asked shall the ordinance pass. Upon roll call the ordinance passed 7-0. Alderman Gray was absent. Ordinance 5211 as Recorded in the of tce of the City Clerk Smith Communications, LLC: A resolution to approve a lease agreement with Smith Communications, LLC for a cell tower at the Township Water Tank Site. This resolution was tabled at the December 16, 2008 City Council meeting to the January 6, 2009 City Council meeting. City Attorney Kit Williams: We assumed the only issue was the monthly rental. We were able to comprise that down to $1,150 and I was going to recommend that to you. Mr. Reynolds noticed that after they get their initial customer on the tower there is a revenue sharing with the City of Fayetteville for virtually every tower location that holds more than one company antenna. I have tried to include that language in the contract. Mr. Reynolds did not notice that language, it required a fifty percent revenue sharing between the City and his company for a second tenant, and that concerns him. Alderman Rhoads: Is it fifty percent for the others as well? City Attorney Kit Williams: It varied with the towers. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org City Council Meeting Minutes January 6, 2009 Page I I of 13 Dave Reynolds, Smith Communications, LLC: All the agreements in the City that have revenue sharing are with our company. When we started with this the fifty percent was not in there. Because of the type of tower and the severely limited capabilities it has we will be extremely lucky if we get a second carrier. Alderman Ferrell: Are the monthly recurring charges the same at all the towers? Dave Reynolds: No. They range from $850 to $1,000 for five carrier towers with increases on the carriers of twenty five to fifty percent. City Attorney Kit Williams: Everything is on location. The Township tower is an important site. We will need to remove the cell phone antennas that are on the water tower. Mr. Reynolds asked to have a standard monopole at this site and was turned down. You all agreed that a flag pole was better. That makes it more difficult for him and more expensive. Alderman Lewis: How many carriers will this one have? Dave Reynolds: It is designed to hold two carriers. It could hold three. A discussion followed on the cost share amount. Alderman Ferrell moved to amend the contract amount to $750 per month plus twenty five percent of the revenue for any additional carriers. Motion died for lack of a second. Alderman Ferrell: I think it would be a good idea for our Telecommunications Board to focus on things like this that are productive. Dave Reynolds: It would help from an industry stand point to have an expert. Alderman Lucas: I appreciate what Kit has done with these contracts. I think he has done a great job bringing these contracts forward to us. I think we should have a percentage. Alderman Cook moved to amend the contract to remove Subsection A, Revenue Sharing. Alderman Thiel seconded the motion. Upon roll call the motion failed 3-4. Alderman Ferrell, Thiel and Cook voting yes. Alderman Rhoads, Lucas, Lewis and Petty voting no. Alderman Gray was absent. Motion failed David Jurgens, Water and Wastewater Director: I hope we can reach a solution' because we have two antennas that are mounted on the Township tower and we have identified some structural failures on that tower, due in part to the movement from wind effect on the tower. It was not designed for cellular towers to be mounted on the water towers. They increase the wind 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Pax) accessfayetteville.org City Council Meeting Minutes January 6, 2009 Page 12 of 13 load. It is creating structural problems with the tower and long term metal fatigue issues with the tower. Jan Olson voiced his concerns about manmade obstructions and their affect on navigation systems. City Attorney Kit Williams: This will be limited to 150 feet. A discussion continued on the contract price and if the project will cash flow for Smith Communications. Aubrey Shepherd: I would like for you to let them build the kind that works the best. It does not seem the one that has been proposed is cost effective. City Attorney Kit Williams: Our ordinance requires that we co -locate on City property where possible. Alderman Petty moved to table the resolution until after the Telecommunications Board reviews the contract and the payment amount. Alderman Rhoads seconded the motion. Upon roll call the motion failed 3-4. Alderman Rhoads, Ferrell and Petty voting yes. Alderman Lucas, Lewis, Thiel and Cook voting no. Alderman Gray was absent. Motion failed Alderman Rhoads moved to amend the contract amount to $850 per month plus twenty five percent of the revenue for any additional carriers. Alderman Ferrell seconded the motion. Upon roll call the motion passed 5-2. Alderman Rhoads, Ferrell, Thiel, Cook and Petty voting yes. Alderman Lucas and Lewis voting no. Alderman Gray was absent. Alderman Thiel moved to approve the resolution. Alderman Ferrell seconded the motion. Upon roll call the resolution passed 7-0. Alderman Gray was absent. Resolution 06-09 as Recorded in the office of the City Clerk. New Business: Goodwin & Goodwin, Inc: A resolution approving a contract with Goodwin & Goodwin, Inc. in the amount of $1,543,600.00 for construction services for tie over and cutover of the West Side Wastewater Collection System, WSIP Subproject WL -9, Bid # 0863; and approving a 5% project contingency in the amount of $77,000.00. David Jurgens gave a brief summary of the contract. Alderman Cook moved to approve the resolution. Alderman Thiel seconded the motion. Upon roll call the resolution passed 7-0. Alderman Gray was absent. 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayettevi Ile. org City Council Meeting Minutes January 6, 2009 Page 13 of 13 Resolution 07-09 as Recorded in the office of the City Clerk Decco Contractors -Paving, Inc: A resolution approving a contract with Decco Contractors - Paving, Inc. in the amount of $2,467,237.77 for construction of improvements to Mount Comfort Road from I-540 to Alpine Avenue; and approving a 10% project contingency in the amount of $246,724.00. Ron Petrie gave a brief summary of the contract. Alderman Ferrell moved to approve the resolution. Alderman Lucas seconded the motion. Upon roll call the resolution passed 7-0. Alderman Gray was absent. Resolution 08-09 as Recorded in the office of the City Clerk The meeting adjourned at 7:30 PM Lioneld Jorda yor Sondra E. Smith, City Clerk/Treasurer 113 West Mountain 72701 (479) 521-7700 (479) 575-8257 (Fax) accessfayetteville.org LOCAL PENSION FUND REPORT 2008 In keeping with statutory requirements, I am presenting this report for 2008 on the local Police and Fire retirement funds for the City of Fayetteville. Both of these plans were closed, by law, in 1983 and there are no longer any active members remaining. There are currently 52 police and 63 fire retirees and beneficiaries in the system. At December 2008 projected expenses from the fire pension fund were in excess of $1.5 million as compared to fund revenues of approximately $232,000.Projected police pension fund expenses exceeded $1.7million as compared to fund revenues of approximately $424,000. This is before adjusting investments to market value. Therefore, final losses will be even larger. Obviously, on a cash flow basis, contributions are not close to covering expenses. Actuarial evaluations are the responsibility of the State of Arkansas Fire and Police Review Board. Since these evaluations are performed biennially, the last one was completed as of December 31, 2007. Based on those evaluations the unfunded pension obligations of police and fire were $$3,100,000 and $4,700,000 respectively and had grown considerably from prior yearst'The unfunded actuarially accrued liabilities for these funds were approximately $9.2 million for police and $10.5 million for fire. In the annual reports issued by the Arkansas Pension Review Board neither the fire nor police pension fund were adjudged actuarially sound pursuant to established financial tests. Again, this actuarial valuation was performed before the 2008 current year. The appropriate local oversight pension boards have been notified of these facts and are currently examining the situation and reviewing possible options. Although, the City has no direct obligation to fund these pension plans other than a .4 mill dedicated levy for each, plus state insurance turn back and certain dedicated fees, the status of these plans need to be carefully monitored.