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HomeMy WebLinkAbout2012-01-03 MinutesMayor Lioneld Jordan City Attorney Kit Williams City Clerk Sondra Smith City of Fayetteville Arkansas City Council Meeting Minutes January 3, 2012 City Council Meeting Minutes January 3, 2012 Page 1 of 6 Aldermen Ward I Position 1 —Adella Gray Ward I Position 2 — Brenda Boudreaux Ward 2 Position 1—Mark Kinion Ward 2 Position 2—Matthew Petty Ward 3 Position I —Justin Tennant Ward 3 Position 2 — Robert Ferrell Ward 4 Position 1—Rhonda Adams Ward 4 Position 2 — Sarah E. Lewis A meeting of the Fayetteville City Council was held on January 3, 2012 at 6:00 p.m. in Room 219 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Mayor Jordan called the meeting to order. PRESENT: Alderman Gray, Boudreaux, Kinion, Petty, Tennant, Ferrell, Lewis, Mayor Jordan, City Attorney Kit Williams, City Clerk Sondra Smith, Staff, Press, and Audience. ABSENT: Alderman Adams Pledge of Allegiance Mayor's Announcements, Proclamations and Recognitions: City Council Meeting Presentations, Reports and Discussion Items: Election of Vice Mayor Alderman Boudreaux moved to elect Alderman Ferrell as Vice Mayor. Alderman Tennant seconded the motion. Alderman Boudreaux: Bobby has served for a long time and has a lot of knowledge and experience. I think he will do a good job. Alderman Gray: I think he is a very serious Alderman. He does lots of homework and I appreciate him. I think he will do an excellent job. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 accessfayetteville.org Telecommunications Device for the Deaf TDDn-TY (479) 521-1316 City Council Meeting Minutes January 3, 2012 Page 2 of 6 Upon roll call the motion passed 6-0. Alderman Ferrell abstained. Alderman Adams was absent. Report on the Condition of the Pension Funds Mayor Jordan gave a report on the condition of the Firemen's Pension and Policemen's Pension Fund. A copy of the report is attached. Alderman Petty: Is anything we can do legally to resolve the question about whether or not they are able to reduce benefits. City Attorney Kit Williams: I don't think we can. The City, I don't believe, has standing to bring any kind of case for declaratory judgment. The City has no control over the Pension Boards. The Pension Board is controlled primarily by the pensioners themselves. The Mayor and City Clerk are members of the Firemen's Pension Board automatically but there are four other members. The four other members have not been willing to make any changes. The Attorney General says they can't reduce benefits. My interpretation is that they could but it has not been tested in court. It really can only be tested in court, to my knowledge feasibly, if they actually tired to reduce the benefits and then a pensioner might sue and say you can't. Then there would be a case in controversy that the judges could decide. As long as the Pension Board makes no moves, I don't know how it can get to court. Alderman Ferrell thanked the Mayor and City Clerk for taking their fiduciary duties on that board seriously. If they elected to lower the pension that would open an avenue for finder of facts if someone objected. What if they lowered the pension to be able to get a longer in the future snap shot to see how long it is going to last and no one objected? That would be legal wouldn't it? City Attorney Kit Williams: I believe it would be legal, if someone thought it was not legal and believed the Attorney General's analysis, that they had no right to do it, and then any of the pensioners that were receiving less money could sue and say I am entitled to more. It would be up to the judges to determine who is right. Alderman Lewis: At what point does the pension run out if they don't reduce it? Paul Becker, Finance Director stated we cannot predict that for certain but they have said its risk of ruin is between five and ten years. The actuarial study is using a 5% discount rate which means you would have to incur increases on your investments of 5%. The chances of obtaining 5% are nil in the near future. I would say the risk of ruin is closer to the five years than ten years. City Attorney Kit Williams: There is some danger for the City in this. There have been some attempts to have the law changed to require, that if a pension plan no longer has active members 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 accessfayetteville.org Telecommunications Device for the Deaf TDD[TTY (479) 521-1316 City Council Meeting Minutes January 3, 2012 Page 3 of 6 or if it falls below a certain amount, that it must be consolidated with LOPFI. This would cost the taxpayers millions of dollars if that happens. That could happen and that is something we are concerned about. Alderman Ferrell: When we had a meeting to discuss the pension there was one guy from Little Rock that was advocating that. City Attorney Kit Williams: The previous attempts have come from the State Board. One of them was carried by a legislator out of Springdale who did not understand what the affect was going to be on us. When we explained to him what the effect would be on Fayetteville he withdrew his support. Re -approval of Nominating Committee Report Alderman Gray stated there was a mistake in the Nominating Committee Report previously in relation to Airport Board. She read the corrected Nominating Committee Report. Alderman Gray moved to reapprove the Nominating Committee Report. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Adams was absent. A copy of the revised Nominating Committee Report is attached. Agenda Additions: None Consent: Approval of the December 6, 2011 and the December 20, 2011 City Council meeting minutes. Approved Police Department Policy: A resolution to approve Police Department Policy 33.1.1 Physical Fitness and 53.1 Inspections. Resolution 01-12 as recorded in the office of the City Clerk. Trail Naming: A resolution naming Oak Ridge Trail and Meadow Valley Trail. Resolution 02-12 as recorded in the office of the City Clerk. Bid #11-71 Keeling Company: A resolution awarding Bid #11-71 and approving a contract with Keeling Company in the amount of $77,333.34 for the purchase of two (2) irrigation wheels for effluent irrigation to hay fields. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 accessfayetteville.org Telecommunications Device for the Deaf TDD/TTY (479) 521-1316 City Council Meeting Minutes January3, 2012 Page 4 of 6 Resolution 03-12 as recorded in the office of the City Clerk. Community Services Division Budget Adjustment: A resolution to approve a budget adjustment to recognize $1,929.00 in donation revenue for the Ranger's Pet Food Bank and $568.00 in donation revenue from the Fayetteville Fraternal Order of Police and citizens for the Senior Giving Tree. Resolution 04-12 as recorded in the office of the City Clerk. 2012 Community Development Block Grant (CDBG): A resolution authorizing the Mayor to execute the Community Development Block Grant (CDBG) agreement for 2012 when received in the estimated amount of $589,066.00. Resolution 05-12 as recorded in the office of the City Clerk. 2012 Washington County Inter -Local Agreement: A resolution approving a month-to-month animal sheltering contract with Washington County, Arkansas beginning in 2012. Resolution 06-12 as recorded in the office of the City Clerk. Southwestern Electric Power Company (SWEPCO): A resolution approving an agreement with Southwestern Electric Power Company (SWEPCO) to participate in an energy efficiency rebate program in the amount of $13,569.32, and approving a budget adjustment. Resolution 07-12 as recorded in the office of the City Clerk. Alderman Lewis moved to approve the Consent Agenda as read. Alderman Boudreaux seconded the motion. Upon roll call the motion passed 7-0. Alderman Adams was absent. Unfinished Business: Kum & Go Appeal: Appeal of the Planning Commission's determination to limit access for a proposed Kum and Go Large Scale Development at Martin Luther King, Jr. Blvd and Hill Avenue. This appeal was tabled at the December 20, 2011 City Council meeting to the January 3, 2012 City Council meeting. Jeremy Pate, Development Services Director stated staff received a request to have this item tabled for two weeks. Alderman Lewis moved to table the appeal to the January 17, 2012 City Council meeting. Alderman Ferrell seconded the motion. Upon roll call the motion passed 7-0. Alderman Adams was absent. This appeal was tabled to the January 17, 2012 City Council meeting. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 accessfayetteville.org Telecommunications Device for the Deaf TDD/TTY (479) 521-1316 City Council Meeting Minutes January 3, 2012 Page 5 of 6 New Business: 2012 Budget Reappropriation Request: A resolution amending the 2012 city budget by reappropriating up to $57,649,568.00 in bonded or ongoing capital projects, outstanding obligations and grant -funded items previously appropriated in the 2011 city budget but not completed or delivered in 2011. Paul Becker gave a brief description of the resolution. Alderman Ferrell: There was a story in the newspaper that handled the description of this very well. It was a good story and explanation. Alderman Lewis moved to approve the resolution. Alderman Kinion seconded the motion. Upon roll call the resolution passed 7-0. Alderman Adams was absent. Resolution 08-12 as recorded in the office of the City Clerk. VAC 11-3970 (862 & 846 Hoddle Place/Slavens): An ordinance approving VAC 11-3970 submitted by Jorgensen & Associates for property located at 862 & 846 Hoddle Place in Addison Acres Subdivision to vacate a utility easement, a total of 0.57 acres. City Attorney Kit Williams read the ordinance. Jeremy Pate gave a brief description of the item. Jeremy pointed out a typo in the ordinance that needed to be corrected. Alderman Ferrell moved to amend the ordinance to read 1,500 square feet. Alderman Lewis seconded the motion. Upon roll call the motion passed 7-0. Alderman Adams was absent. Alderman Lewis 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 Adams was absent. City Attorney Kit Williams read the ordinance. Alderman Boudreaux moved to suspend the rules and go to the third and final reading. Alderman Lewis seconded the motion. Upon roll call the motion passed 7-0. Alderman Adams 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 Adams was absent. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 accessfayetteville.org Telecommunications Device for the Deaf TDDlrTY (479) 521-1316 City Council Meeting Minutes January 3, 2012 Page 6 of 6 Ordinance 5474 as Recorded in the office of the City Clerk Freeze City Clerk Salary: An ordinance to suspend the normal pay adjustment of the City Clerk/Treasurer for 2012. City Attorney Kit Williams read the ordinance. Various Aldermen thanked City Clerk Sondra Smith for doing this. Alderman Boudreaux moved to suspend the rules and go to the second reading. Alderman Tennant seconded the motion. Upon roll call the motion passed 7-0. Alderman Adams was absent. City Attorney Kit Williams read the ordinance. Alderman Tennant moved to suspend the rules and go to the third and final reading. Alderman Gray seconded the motion. Upon roll call the motion passed 7-0. Alderman Adams 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 Adams was absent. Ordinance 5475 as Recorded in the office of the City Clerk Announcements: Meeting adjourned at 6:30 6WCSondra E. Smith, City Clerk/Treasurer 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 accessfayetteviile.org Telecommunications Device for the Deaf TDD/TTY (479) 521-1316