HomeMy WebLinkAbout134-89 RESOLUTIONRESOLUTION NO. /9 /-
No resolution was ever drafted.
Attached is a copy of the Board of Director
minutes where the resolution was adopted.
408
implications outlined in the letter from Blue Cross Blue Shield,
Staff does not recommend approval of the benefits at this time.
Linebaugh stated Staff had asked Blue Cross if any arrangement 408.1
could be made to provide coverage for the judge. In this regard,
Staff recommends that the judge be allowed to obtain his own single
coverage and the City pay the judge the amount paid to Blue Cross
for single employee coverage.
Green, seconded by Kelley, made a motion to approve the health care 408.2
insurance premiums for the judge equal to the same benefits of the
other city employees.
Lancaster asked if the money was to be used strictly for health 408.3
insurance premiums.
Director Green stated this was the intent of his motion.
Vorsanger stated he felt the judge should be treated as any other
employee and be provided either single or family coverage whatever
he needs. Linebaugh stated the judge had only requested individual
coverage.
Upon roll call, the motion to pay the equivalent of health 408.5
insurance premiums to the Municipal Judge passed unanimously.
RESOLUTION 133-89 APPEARS ON PAGE OF ORDINANCE AND
RESOLUTION. BOOK
408.4
(HUNTINGDON HOMEOWNERS ASSOCIATION'""'
Linebaugh stated the problem in the subdivision is very complex.
The developer is responsible when he puts in a subdivision for the
drainage and street construction. At the same time, the City is
responsible for making sure the proper drainage and streets are
constructed. In this case, the developer had financial problems
and did not complete the work. The City is not legally responsible
to provide drainage or street work if the developer fails to do so.
However, the City is responsible to try and protect the public in
this type of situation. When the developer goes through the
building process, he is allowed to continue on even though he does
not have the drainage or street construction completed and building
permits will be issued. In the final plat review, liens are
required on lots equivalent to the cost of completing the street
and drainage construction before the building permits are issued.
In this subdivision, several problems have occurred: (1) There 408.7
appears to have been an inadequate drainage plan that the City
approved. This is still being investigated. (2) There were liens
that were received on the lots. However, the City failed to sell
the lots to complete the construction. The City has requested an
engineering study into the drainage problems, and the City is
looking into the old engineering study on the drainage plan to see
if it had been done correctly and why the City accepted it. Staff
is also looking into why the protection system failed on the liens.
408.6 -
4p9
409.1 There are basically three alternatives the City can take: (1) no
action; (2) City could accept some responsibility for improvements
and seek to defray costs by assessing the property owners; or (3)
the City undertake the improvements of the drainage system without
seeking to defray the costs. Staff feels that the property owners
should be held harmless because they were not aware of the problems
that occurred; therefore, Staff recommends the City correct the
drainage problems at no cost to the property owners.
409.2 City Attorney Rose stated he has attached to the report a copy of
the statute that allows the City to defray the costs of
improvements if they so desire. Thereis no legal solution to the
problem. The statute of limitations has expired on the liens, so
they are no longer any good.
409.3 Director Vorsanger asked what Bank had been involved and he
expressed his concern that this problem has been going on for
twelve years. Linebaugh stated he understood First National Bank
had been involved.
409;4 Rose stated he was not aware of the bank pursuing any recourse
against the developer. The last correspondence from the bank
regarding this development was about 1981 or 1982.
409.5 Vorsanger liked the Staff recommendation to pay for these
improvements from the.CIP budget and asked if this was a legitimate
CIP item:- Linebaugh stated it was a valid item, and what would be
required would be moving improvements from later years to the
current level.
409.6 Kelley asked if there were any legal liability that could be
attached to the original developer. Rose stated he would like to
say yes, but he was not aware of any lots retained by the developer
or of any legal recourse.
409.7 Lancaster asked how the lots had been sold if the liens had been
recorded. Rose stated the contract that the City had which
established the liens was duly recorded in 1979. The lots have
been sold in spite of the recorded contract. In two instances,
title insurance was issued that listed the liens as an exception
on the title insurance policy, but apparently made no difference
to the purchasers. The contract was entered into in 1979, and the
statute of limitations has run.
409.8 Green stated his main concern was to make sure that this type of
thing does not happen again.
409.9 Marinoni asked what the dollar amount was to correct the drainage
problem. Linebaugh stated the City estimate was somewhere around
$200,000. Marinoni asked if the City obligated themselves on this
issue, would that set a precedent for future failures of streets,
water lines, etc. Rose stated he did not feel it would because
this is a special situation that has occurred and the circumstances
of bankruptcy should not set a legal precedent. There may be a
1
moral precedent set, and the City may get requests in the future
based on the fact that "you did it for them, now do it for us."
Vorsanger, made a motion for the City to undertake the drainage
repairs and the funding come from the CIP budget. This motion was
seconded by Kelley.
Lancaster stated that the issue before the Board tonight was
drainage for the PUD.- What type of problems will be brought before
the Board in the future when the developer has defaulted.
Linebaugh stated that the regulations for drainage and streets in
the PUD were not different than any other development. The streets
do have problems, but their repair was already budgeted into the
CIP budget.
Kelley asked that thenecessary changes to City ordinances and
policies that would eliminate these types of deficiencies be
brought back to the Board as early as possible in the first quarter
of 1990.
410
410.1
410.2
410.3
Upon roll call, the motion passed by a vote of 7-0.
Eric Malstrom addressed the Board and thanked the Board for their 410.4
support and willingness to address the problem. He wondered if the
Staff was prepared to address specific solutions to the drainage
problems. Linebaugh stated that the City has received no plans
from the engineer at this point. The engineer has looked at the
location and stated there was a considerable amount of work that
needed to be done.
Malstrom stated that several members of. the neighborhood had 410.5
suggestions on how to solve the drainage problems that they would
like to share with City Staff. Mayor Martin stated Staff would
welcome the suggestions and cooperation with the subdivision
members.
RESOLUTION 134-89
RESOLUTION BOOK
OTHER BUSINESS
APPEARS ON PAGE OF ORDINANCE AND
NORTHWEST ARKANSAS RESOURCE RECOVERY AUTHORITY
Linebaugh announced that the Northwest Arkansas Resource Recovery
Authority would hold a meeting at 8:00 a.m. on Thursday, December
21 at City Hall to discuss filing lawsuits against the third
parties that have not signed the tolling agreements.
Linebaugh has also asked Walter Niblock to present the Board with 410.7
a report tonight. Niblock is requesting two actions from the
Board: (1) approval of the signatures on the tolling agreements
and (2) approval to enter into a lawsuit against the third parties
who refuse to sign the tolling agreements.
410.6