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HomeMy WebLinkAbout2022-07-19 - Minutes -Council Member Sonia Har%eN Ward I Position I Council Member D'Andre Jones Ward I Position 2 Council Member Mark Kinion Ward 2 Position I Council Member Mike Wiederkehr Ward 2 Position 2 Mavor Lioneld Jordan City Attorney Kit Williams Citv Clerk Treasurer Kara Paxton City of Fayetteville Arkansas City Council Meeting July 19, 2022 City Council Meeting Minutes July 19, 2022 Page I of 28 Council Member Sloan Scroggin Ward 3 Position I Council Member Sarah Bunch Ward 3 Position 2 Council Member Teresa Turk Ward 4 Position I Council kiember Holly Hertzberg Ward 4 Position 2 A meeting of the Fayetteville City Council was held on July 19, 2022 at 5:30 p.m. in Room 219 of the City Administration Building located at 113 West Mountain Street, Fayetteville, Arkansas. Mayor Lioneld Jordan called the meeting to order. Pledge of Allegiance Mayor's Announcements Proclamations and Recognitions: None City Council Meeting Presentations, Reports, and Discussion Items: Annual Comprehensive Financial Report Announcement of the completion of the audited 2021 annual comprehensive financial report by Paul Becker. Paul Becker, Chief Financial Officer: Good evening Mayor and Council. I'm happy to report that we have completed and published the 2021 annual financial statements of the City. In that report you'll see it was audited by BKD, we received an unqualified opinion. Also, we had a single audit done and the single audit talks about grant compliance with Federal Government and we had no significant deficiencies or material weaknesses in regard to internal control. We also have complied with all the state statutes in regard to state grants that we got last year in 2021. It is posted on the website, comprehensive annual report and I would refer people who would like to look at it to the MDNA that's the management report on pages 13 to 25 and that gives you what 113'hest Muuntain Fayetteville AR 72701 (4-9) 575-8323 www fayetteville-ar gov City Council Meeting Minutes July 19, 2022 Page 2 of 28 we call the management discussion and analysis and would give the high points. I will be happy to answer any but I'm required by statute to let you know that the report has been completed, and it is in fact on file so I'll be happy to answer any questions. Agenda Additions: None Consent: Approval of the July 5, 2022 City Council Meeting Minutes. Wilson Bauhaus Interiors: A resolution to approve the purchase of equipment and furnishings for the new police headquarters building from Wilson Bauhaus Interiors and other dealers, as authorized by Resolution 97-21, in the amount of $965,009.91 plus any applicable taxes and shipping charges, and to approve a budget adjustment. Resolution 158-22 as recorded in the office of the City Clerk On Point Dumpster Rental NWA, LLC: A resolution to approve an agreement with On Point Dumpster Rental NWA, LLC for the hauling and disposal of solid waste in the City of Fayetteville. Resolution 159-22 as recorded in the office of the City Clerk SPO Networks, Inc.: A resolution to approve an agreement with SPO Networks, Inc. for the hauling and disposal of solid waste in the City of Fayetteville. Resolution 160-22 as recorded in the office of the City Clerk Sweetser Construction, Inc.: A resolution to award bid 422-34 and authorize a contract with Sweetser Construction, Inc. in the amount of $362,283.00 for construction of the Wilson Park Trail Bridge Replacement and Promenade Improvements, to approve a project contingency in the amount of $25,000.00, and to approve a budget adjustment. Resolution 161-22 as recorded in the office of the City Clerk 2022 City Sales and Use Tax Bonds: A resolution to approve a budget adjustment in the total amount of $75,513,868.00 to appropriate proceeds from the 2022 City Sales and Use Tax Bonds. Resolution 162-22 as recorded in the office of the City Clerk Landscape Structures, Inc.: A resolution to authorize the purchase of playground safety surfacing from Landscape Structures, Inc. for installation at David Lashley and Hotz Parks in the amount of $101,039.75 pursuant to a Sourcewell Cooperative Purchasing Contract, and to approve a project contingency in the amount of $10,000.00. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 3 of 28 Resolution 163-22 as recorded in the office of the City Clerk Arkansas Air and Military Museum, Inc.: A resolution to approve a three-year lease agreement with the Arkansas Air and Military Museum, Inc. for property located at Drake Field, with options to renew for additional three-year terms. Resolution 164-22 as recorded in the office of the City Clerk Council Member Bunch moved to accept the Consent Agenda as read. Council Member Harvey seconded the motion. Upon roll call the motion passed unanimously. Public Hearing: Mayor Jordan opened the floor for the public hearing. Public Hearing on the Proposed Ordinance to Change or Establish Water and Sewer Rates: A resolution to conduct a public hearing on the proposed ordinance to change or establish water and sewer rates. Paul Becker, Chief Financial Officer, spoke and introduced Anna White with Black and Veatch. Anna White, Black and Veatch Representative: When we do a cost of service rate study there's three steps that we're following. Step one, is the revenue requirements, that's when we're determining how much revenue, we need to generate from the rates in order to fund the operating and the capital costs for each of the utilities for water and sewer. The second step is the cost of service, this is where we're allocating those costs to your customer classes in order to determine how much revenue, we need to recover from each customer class. The third step is rate design, once we know how much revenue, we need to recover from each customer class. We designed the rate schedule and the rate structure in order to recover it appropriately. Tonight, I'm going to focus on step two, cost of service. There's two manuals that provide the guidelines for doing a cost of service rate study for water and sewer for the wastewater utility. It's the Water Environment Federation's manual that shown there on the slide, the second one is for the water utility. It's called the MI manual, this is the one that really lays out all of the detail and how you do the cost of service analysis that I'm going to talk about. What's so important about cost of service and why do we stress that and why are we doing a cost of service rate study. The reason is because different customer classes within the community inside and outside the city, use the systems. The water and wastewater systems in different ways, and so the cost of service step is how we recognize that there's differences in the different customer classes, that you serve. For example, customers that are located inside the city for water service use all of the components of the water system, the distribution mains the transmission mains the pumping stations, and the plant all of those where we purchase water from. Customers that are located outside the city don't necessarily use those same assets, for instance, the small mains, the distribution mains within the water system. They don't provide any service to customers outside of the city, so we don't allocate the costs associated with distribution mains to customers outside the city. So, the way that we make that recognition that there's differences for this cost of service analysis. The other difference that we draw our 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www,fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 4 of 28 attention to in this step is your rate structure in what costs are recovered in each of the two components, so you have a minimum charge, and you have a volume charge. Costs associated with meter reading, billing collection, customer service, those are recovered through the minimum . charge. Costs associated with how much water is being treated or pumped that's recovered through the volume charge. So again we do that cost of service analysis in order to break out those costs to know what costly to be recovered through what feed. So, the current context for Fayetteville, with regards to revenue requirements, for the last 11 years across the board increases have been used in order to increase the revenue in order to fund the revenue requirements. Cost of service, the last cost of service study was done, 14 years ago, rate design because of the across the board increases and because of how long it's been since the last cost of service was completed. Your existing rates do not reflect cost of service. Because of the passage of time what's happened over those 14 years cuts customer characteristics of change there's been new customers to the system, different customer classes have grown at different rates, water usage wastewater consumption, the usage per customer has changed over time. Especially with COVID, there's a lot of changes in your customer patterns just due to COVID. The cost allocations have changed, so if we look at your operating costs, maybe the costs associated with the distribution mains within the costs associated with your transmission mains. That makes a difference again because customer classes use different parts of the system, your capital costs have changed you're investing in different parts of the system now than you did 14 years ago and so again your existing rates do not align the cost of service. So how do we do the analysis? What we're going to focus tonight on is what's called the return on investment. This is a key component for the cost of service analysis, so the M 1 manual that I mentioned specifies that if a utility provided service to customers outside of the city limits, outside of the city boundary, it is entitled to earn a return on those services provided outside of the city, because those customers outside the city are not considered owners of the utility. The city and the inside city customers are the owners and are entitled to earn the rate of return on that investment that's been made in the system to serve customers outside the city. So why is that? There's three reasons, so first off the city and the inside city customers have an ownership risk. The city is ultimately responsible for paying all of the costs associated with the system operating capital making sure that regulatory compliance requirements are being met and they own the risk if there's any liabilities or penalties. The second one is financial risk, so the city has to invest in those assets outside the city to serve customers outside the city. But if those customers suddenly decide that they're going to go buy water from somewhere else or they're going to build their own treatment plant. Then there's just stranded investment out there that the city invested in put into place and it's now not generating any revenue. The third is the opportunity risks, those funds that have been committed for those investments, pose a capital and an opportunity cost for the city, the city could invest in those funds somewhere else, but they chose to invest them to build those investments outside the city to serve those customers. The steps that we use in order to calculate this return on investment, the first one is the rate of return, this is the percentage rate of return. The MI manual specifically lays out the methodology that we use to calculate the rate of return and it's using the weighted average cost of capital. I'm going to walk through that in more detail. So once we know what that percentage rate of return is, then we need to determine the dollar amount of return and walk you through that. Then the third step once we know what that total dollar amount of rate of return is allocated between the customers inside the city and outside the city and so we'll walk through. Okay, so determining the rate of return, so this is the methodology that's laid out in the manual, is the weighted average cost of capital what we're, taking into account. There is the total original cost, less depreciation value all of the assets that are currently in service in order to 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 5 of 28 provide both water service and wastewater service to all of your customers. So the value of those assets we look at how much outstanding debt there is associated with those assets and then the remainder, then of course the equity portion of those assets. So, the City, the utility does not have any outstanding debt associated with water or wastewater so the value of those assets is 100% equity. So, when we do our weighted average cost of capital what we're taking is the portion that's equity and the depth portion multiplying both of those by the interest rate on the debt or what we would call a fair rate of return on the equity portion and that gives us what our initial rate of return would be for customers outside the city. So basically, we're just taking into account how much the City has invested in those assets, where that investment is taking place, whether it's through equity or death in calculating what the average cost of capital is within at a premium to that amount. So, the premium is what recognizes that there is a risk associated with providing service to these customers. What that premium number is can vary. The MI manual does not give any guideline for what that number is, it can be dictated in a contract like it is here. it can be a number that is just what the City feels is a reasonable rate of return, to learn from their customers knowing their customers and what relationship, they have with them. That's a number that's an assumption or something that needs to be input and again here it's dictated by the contracts that the city has with the wholesale customers. So the calculation that I have appeared just shows you how we do that math. I do have an example for water and wastewater. You can see, those are the actual numbers from the study, so you can see how that math is being calculated. So, once we know what that percentage rate of return is, and you can see there for water what I'm showing here for water at 7%, for wastewater it's 5.5%. Okay, so we know what that percentage rate of return is for the outside city customer, so the next step, then is to go to the dollars. So the way that the dollar rate I return on investment is calculated, we know when we look at the costs for each of the systems, we have operating costs, and we have capital costs. The operating costs are the operating costs they are what they are. What we're talking about here is the capital piece. So we take the total costs related to capital, it's debt services, if there's debt service, which there isn't here. So here it's the amount of the annual cash investment that the utility is making into the assets. We're talking about the capital portion here, so when we talk about the capital portion what we're referring the annual amount that each utility is investing back into the infrastructure or the assets. So the way, then, that we calculate the dollar amount of return it's that total what we look at it, it's the total amount of capital investment, less depreciation and what's remaining is the return. So that's a very simple calculation, that's how its laid out in M1 manual. So that's just how we get that dollar amount of return. The next step, then, is, we need to allocate that return to inside outside customers. I'm going to show you a couple examples. Just to show you the math and what I just walked you through so you can better understand it. So this is for the water utility, and these are the numbers from the rate study so what's shown on the left there if we're looking at the cash flow. The costs that we have, we have the operation and maintenance costs about $18 million, debt principle if there was any, there is not so that is zero, cash financing of CIP, so the water utility is estimated to invest about $4 million from rate revenue back into the water system and then there's no debt interest, so the total costs are about $22 million. When we move to what's called the utility basis to recognize that there's customers outside the city all we're doing is just restating those costs a little bit differently. So the O&M cost is still O&M, it's still about $18 million, but we put that $4.3 million of investment back into the system and we divided it into depreciation and return. Depreciation is a known number that's the annual depreciation on the water assets, so the difference between the two, the $1.5 million is return. So again it's just a calculation to come up with that dollar return. I You can see the same information for the wastewater utility. I think the main thing to point out 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 6 of 28 here is how much lower the dollar amount of return is for wastewater than it is for water. So for water is about one and a half million for wastewater $130,000. So much, much smaller and basically what that's indicating is that the cash investment that's going back into the wastewater system is pretty much equal to depreciation, whereas on the water side that cash investment was greater than depreciation. Okay, the next step, then, is to allocate that dollar value back to inside versus outside city customers. So once we know the value of the assets, this is the original cost less depreciation value of the assets. We divide that by the units, that's how we come up with the unit costs that goes into developing the rate schedule. For the unit cost associated with plant investment for inside city and outside city, we multiply that by the rate of return for each of the inside and outside customers and that's how we get the dollar amount or inside versus outside. So when you look at the detailed tables, if you looked at them in the report, you'll notice that we had returned broken out between inside and outside it was much more heavily allocated to outside city customers that's because the rate of return for outside city customers is greater than inside city to again represent that risk associated with providing those services. So then this just shows a little bit more detail here for water again we have O&M, we have depreciation, and we have returned and how we've taken that return component and we've now allocated it between inside and outside city customers. So if you add up now all of the components showing on here it's still equal to what we originally saw the operating on the capital costs for water. we're just slowly breaking it down into these pieces, that we need in order to develop the rates. We are entitled to earn a return on the outside city customers, because it comes out to the greater than the total return. It's a negative return for inside city. I know that's kind of hard to understand, it really is just how the math works, but that's also just to recognize that there is a risk associated with the outside city customers and the inside city customers does not have to pay that risk. Just to summarize, when we talk about return on investment. The purpose of that is intended to provide a reasonable return for the equity capital that's used in order to finance those investments, infrastructure to provide water and sewer service to your customers and to all of your customers. The weighted average cost of capital is the generally accepted method outlined in the M 1 manual and serves as a guideline that's what's important here it's a guideline for determining that outside city rate of return. What can impact that decision on what that outside city rate of return is City policies, existing contracts that we've recognized, impacts on customers. When I made my presentation to you a couple of weeks ago one of the things that I talked about with some of the things that we take into consideration when we go into rate design. Impact on the customers, the rate structure is easy to understand. We're talking about the rate of return what it is and how its applied to the customers what's outlined in the MI manual are guidelines that we can follow to get us to a starting point for what those numbers are. They can always be adjusted. So, then, I just want to conclude with the two rate structure tables, these have not changed from the record that we issued or what I showed you when I presented to you a couple of weeks ago. These are the proposed rate schedules, this is for water, the next slide is for wastewater. These are based on the cost of service analysis that I just walked through. Again, we were hired to perform the cost of service analysis and that's what we did, following the methodology and M1 manual the results of that calculation is what's represented here in the rates there's always adjustments that can be made. Council Member Turk: I have one question. So, the rate study that was done 14 years ago was the same methodology used that you use in this rate study? Anna White: Yes. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 7 of 28 The City Council received 2 public comments regarding this resolution. Mayor Jordan: At the end of the Public Hearing the Council needs to pass a resolution that states that we had a public hearing. Is that correct Kit? Kit Williams, City Attorney: Yes mayor, I would like to do that. We needed to have something in order to have a public hearing according to the Granicus systems. So I wrote the resolutions saying you have had a public hearing, we have listened to everyone who wanted to talk. So now we are going to be moving on to the ordinance after we pass this resolution. This is only a resolution saying that we have had the public hearing. It is not deciding any rates or anything like that. Council Member Bunch moved to approve the resolution and close the Public Hearing. Council Member Turk seconded the motion. Upon roll call the motion passed unanimously. Resolution 165-22 as recorded in the office of the City Clerk Unfinished Business: An Ordinance to Amend §51.136 Monthly Water Rates and §51.137 Monthly Sewer Rates to Change Water and Sewer Rates: An ordinance to amend §51.136 Monthly Water Rates and §51.137 Monthly Sewer Rates to change water and sewer rates as recommended by the cost of service study conducted by Black & Veatch. Council Member Harvey moved to suspend the rules and go to the second reading. Council Member Turk seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Paul Becker, Chief Financial Officer: Well, we would like to recommend this be tabled. We've heard some comments, one of the things for the City of Farmington is that study was done pursuant to a contract that was in effect that at the time that we began the study. That contract has currently expired, so we have to negotiate a new contract, so we would like to table the study. We would like to have time to meet with Farmington. Also, look at the entire rate study and come back to the Council, we like to table that until the first meeting in December, that will give us sufficient time, to try to negotiate an agreement. Which, I think we can successfully do at that time and look at some of the other issues that we've heard, so that's staff recommendation. Mayor Jordan: I want to thank everyone who shared comments during the public hearing on this item and several people also have emailed comments and I want to thank all of you that emailed us comments, and it became clear to me that we had more work to do on this. Our water and sewer committee recommended tabling Is that correct? 1 Council Member Turk: It is mayor. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 8 of 28 Mayor Jordan: So, I'm asking the Council also to table beside him tonight to allow us more time to make changes. We're going to take our time and we're going to work this thing out. Council Member Scroggin: I'm perfectly fine tabling this after public comment. I've got a lot of emails on this and some of the emails don't really make sense. I teach math at the University and we're talking about increasing certain things by percentage. Which to the wholesale customers is a percentage of their total cost and for the total cost to go more than our percent increase that doesn't make sense. So either I'm misunderstanding it, or some other people are misunderstanding and I think it's important that everybody involved actually knows what it's going to do to their own residents. So that makes sense and then obviously we need a contract in Farmington before we come back again. As a mathematician there's definitely been some stuff that's been emailed me doesn't make sense, and I hope that we can we can fix it. Council Member Kinion, spoke and asked a procedural question. Kit Williams, City Attorney spoke and provided a detailed procedural explanation regarding the motion to table. He went on to explain how the rate study will need to be heard by the other city's council before it comes back for a vote by the Fayetteville City Council Members. Council Member Kinion moved to table the item until the December 6, 2022 City Council meeting. Council Member Scroggin seconded the motion. Upon roll call the motion passed unanimously. This ordinance was Tabled until the December 6, 2022 City Council Meeting. RZN-2022-021 (S. Happy Hollow Road/Black Pine Construction and Development): An ordinance to rezone that property described in rezoning petition RZN 22-021 located at 248 South Happy Hollow Road in Ward l for approximately 3.1 acres from RSF-4, Residential Single Family, 4 Units per acre to NC, Neighborhood Conservation. Council Member Scroggin moved to suspend the rules and go to the third and final reading. Council Member Turk seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Jonathan Curth, Development Services Director, spoke and explained that he, did not have any new information to present. He went on to explain and summarize the significant amount of public comment received regarding this item. Robert Rhoads, Representative of Applicant, I'm representing the petitioner here, as you all probably remember I gave a full-blown presentation a month ago, and then a little tiny presentation, two weeks ago, and this one will even be tinier. Okay, so just highlight some things. This property and this petition originally started with RI-U, but got neither staff support or Planning Commission's support. He heard them and changed it and that's why you have 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www_fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 9 of 28 Neighborhood Conservation in front of you, and that is now both supported as you heard from staff and from the Planning Commission. I think there was some concern about density and I think anyone looking at this property can tell you that, even though, with this rezoning, technically, you could put 31 lots. There's absolutely no way no how anyone's going to put 31 lots on this, as I mentioned in the last two meetings we believe 16 to 20 is probably what it will hit. This is compatible, this is compatible with the property around it currently and it is compatible with the future plans of the City. Again, some of the comments that that you heard one of the ones that resonate with me is that we need more homes, and this is an ideal spot to put some more homes. There are questions about speed bumps I think, and two agenda sessions ago and I was surprised when I drove out there and there's five. I mean, as you heard there's five traffic calming devices. I don't mean just one bump, but I mean five different places on that stretch of road, so there are things being done, obviously, to make this safe, and I would agree with staff that this is not going to enhance the dangers of that in that regard. I like the one positive comment email that was sent probably a month ago and, in a nutshell, that said hey we need homes, and this is close to school with public transportation, sidewalks and it's a good spot. So with that all said, I would ask you to pass this rezoning and I stand ready, willing and able to answer any questions, thank you. There was a brief discussion regarding questions received from a member of the public. The member of the public wanted to know why she could not see the site plan and why it had not been reviewed yet. It was explained that the Supreme Court does not allow the City Council to consider a site plan at this point. It was explained to the citizen that if this property is rezoned and the applicant decided to go further and want to build housing then the applicant would have to submit a large-scale development plan or a preliminary plat. Once submitted it would then be forwarded to the Planning Commission for a decision. The City Council received 4 public comments regarding this ordinance. Council Member Hertzberg: I have a question for Jonathan. Will this proposed rezone allow multi -family, or will it remain single-family? Jonathan Curth: It remains single-family by right. Council Member Scroggin, spoke about the Happy Hollow area, speed cushions, and the development up the hill from this area. He went on to discuss the increase in the amount of rain that the City of Fayetteville has received on two different occasions. He concluded his comments by explaining that this would stay single-family homes even if the decision is to rezone to NC. He went on to pose a question for Jonathan Curth. Council Member Scroggin wanted to know more about NC, Neighborhood Conservation when it came to density numbers. Jonathan Curth, spoke and explained that he would look into that question. Council Member Scroggin, spoke and explained that 16 to 22 units made more sense to him. Council Member Wiederkehr: I agree with Council Member Scroggin. When cities grow organically, they frequently find infrastructure like this street, that is too narrow for the volume I that it entails. I know we've got theories that narrow streets make safe drivers and that may 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 10 of 28 generally true, but I think the volume on this piece of infrastructure causes me to have caution. While I think the property in question could certainly afford greater than RSF-4, the concerns that I hear cause me concern about NC density by right. I know the developer has indicated a desire for a certain level but I'm very cautious going that direction. I am not anticipating it being widen and addressed anytime in the near future. I want to be sure to express that it's not necessarily the drainage, which is going to become more of an issue, but is actually the traffic issue that causes me the greatest concern. Council Member Turk: I too share some concerns about the compatibility of the area. Some of the drainage concerns that have been highlighted tonight, and in that area, and then I just want a clarification from Jonathan. So, if this is rezoned to NC the developer could go and request a conditional use permit and actually build three and four family dwellings on that on that property. Is that correct? Jonathan Curth: That's correct, we'd have to go back to the Planning Commission and submit detailed plans and elevations similar to what I think some of the residents are asking for. Council Member Turk: But under RSF-4 currently they would not be allowed, they could only have a family dwelling is that correct? Jonathan Curth: By conditional use. Council Member Turk: Okay, I just wanted to clarify that. There is a possibility that there could be cluster housing and there could be multifamily housing if a conditional use permit was approved? Jonathan Curth: That's correct. Council Member Turk: I've been over there several times kind of driving around, I guess, contributing to the traffic and there is a lot of cut through traffic there. There just is. That's just the way it's kind of setup because people want to get from 265 quicker over to Highway 16 and that's what I'm saying. So, I have some serious concerns about up zoning this more than what it is right now, and they are allowed to build 12 units, right now, as it is, thank you. Council Member Kinion: I have the similar concerns on the traffic going and looking at that. That road needs improvement, anyway, but with the current zoning still offering up to 12 units by conditional use, right? Jonathan Curth: By right? Council Member Kinion: I mean by condition. Jonathan Curth: The current RSF-4 or zoning district would allow. Council Member Kinion: So that's pretty good density for this lot, it seems to me. So it's hard for me to see that someone would possibly get it more crowded than that and if there's one thing I've 113 West Mountain Fayetteville. AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page I 1 of 28 learned from my years of being on City Council we're presented with these ideas and ideals, but what you have to consider is what is the worst possible situation that could happen to this neighborhood with a rezoning and I know that's not maybe the fatalistic approach that a lot of people want to see but I've seen us be tricked so many times. People come in and they say oh we're going to do this and that's nice it's feasible, that they would do that there, but then in the end that's not what is there because the zoning goes with the property and if that person sells the property or has a change of heart they get to utilize the zoning that we have approved and currently in this property I can't support an up zoning. I understand the arguments for it, and we do need housing, we do need density, but this is not the area, this is not the lots that we need to have higher density until we have a better situation with the cut through there on Happy Hollow to make sure that is safe so that's currently how I see it, so anyway thanks. Council Member Harvey: I just want to thank the neighbors for coming out and voicing your concerns and your emails we received all of that. We were asked to hold it for that reason. That's what these extra readings are about. So thank you for making time to come out and for being available on zoom. I do agree, I feel like the infrastructures not quite matching with the street, and so you know I'm wanting to maybe slow it down just a little bit. Keep it to the zoning it is, and in fact there is a lot more dwellings. You're just right next door but then the neighborhood begins at the end of that street so you know it's okay that there's single-family spaces and then right next to that there's already some very dense spaces so I'm feeling like I'm wanting to keep that lower density and allow some time for the infrastructure to build there. It sounds like we're going to get sidewalk soon, that's good. If we need to find some other solutions for traffic, we need to do that as well. Mr. Drake, I saw his video, I don't know if you all got to see his video on flooding, but it was like a mudslide. It was very, very bad, they said from the email that it happens every single time it rains so there's quite a bit of work that needs to be done in the area before we kind of make the situation worse so I probably will not be supporting the rezone. Council Member Bunch: Jonathan I have a question about our list of streets that are getting improvements. Where is Happy Hollow in the grand scheme of having these extensions, the sidewalks and maybe better gutters or something like that? Jonathan Curth: I do, and Chris Brown the Public Works Director is also on. It was recently overlaid with fresh asphalt, which is part of the traffic calming conversation, because there was a lot of concern from residents that the asphalt level may have gone up to the point where the existing speed tables are less effective because of that vertical differences less. So a piece of that conversation was the recent resurfacing of the street and to Council Member Harvey's point, there is a need sidewalk on the work program for later this year but it's possible that it will be built in the beginning of 2023. That's intended to connect the sidewalks that are closer to fourth and fifth street with Mount Sequoyah Woods, to the north. Council Member Bunch: I don't necessarily like the speed cushions, but that's something we're using a lot, but I do like the process we go through now to get those. It is 70% of the neighbors have to agree to put the speed cushions in. I think that's more collaborative than what we've had in the past, but as far as traffic calming some of the things that we try to use around the city meet with great resistance and you know lots of people don't like roundabouts they don't like curves in the street, they don't like narrowing points in the street, they don't like the planters. We're kind of 113 West Mountain Fayetteville. AR 72701 (479) 575-8323 www.fayetteville-ar,gov City Council Meeting Minutes July 19, 2022 Page 12 of 28 trying to feel our way through what will be the best calming methods for the streets. Now lots of people have mentioned cut through and I'm not necessarily in favor of this rezoning but if we don't rezone this, how does that help the cut through traffic? I don't really see that that changes it at all honestly I'd love to hear from D'Andre because he's also the other ward member from that that part of town and i know we tabled this to allow the citizens to get together. I remember asking if two weeks was long enough for them to do that, so I want to make sure that we did try to give everybody time to get together. I'd love to hear what the other Council Member from that ward has to say about this. D'Andre Jones: Thank you so much, and the concerns that each Council Member has voiced are legitimate and I was thinking about it from a perspective of needing more houses but after receiving the information from many citizens, I guess I'm leaning more toward that this is the right time because, again, as you all have stated that there is some work to be done as it relates to the citizens who needed the extra time. I believe that they were able to get together and talk and discuss. Council Member Hertzberg, spoke and explained that she felt there were other traffic calming measures that could be implemented. She stated she felt inclined to support this item. She went on to ask a clarifying question to Jonathan Curth. She asked him to clarify what happens in the development stage when it comes to drainage. Jonathan Curth: That's correct one of the tenants of the city's drainage criteria manual is that the post or the predevelopment drainage patterns do not worsen after post development. In some instances where there is a known issue sometimes the city, as you all know, can work with residents to try to resolve something that's off site that may not be the result of a development. Council Member Hertzberg: Thank you so much, I think that that would be the way that I would like to go. Council Member Jones: Isn't there a Lindsay Apartment housing close in that area? Jonathan Curth: Yes, the Cliffs Apartments which is several hundred housing units is, I believe, still owned by Lindsay apartment to the north. Council Member Jones, spoke and wanted to know how the issues that had been discussed are affecting the individuals who lived at the Cliffs Apartments. Council Member Kinion: Well, if you're using it as a cut through, then you would turn on it and drive through the Cliffs to get back over to a Crossover so inevitably, has an impact. Jonathan Curth: A merit to that point, there was a discussion that predates my time with the city of making this a much more robust network of streets through this area for which Lindsay, I believe, cost shared work on Cliffs Boulevard to make it a sizable street that it is to accommodate much larger volumes of traffic that are currently going to the property. So as far as traffic impacts go Cliffs definitely has the capacity for it if that's your major concern Council Member Jones. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar,gov City Council Meeting Minutes July 19, 2022 Page 13 of 28 Council Member Jones, spoke and shared his concerns about accessibility when it comes to residents using the sidewalks and bus service. He went on to say that he was inclined to support it. Mayor Jordan asked shall the ordinance pass. Upon roll call the vote was 5-4. Council Member Hertzberg, Jones, Scroggin, and Bunch voted yes. Council Member Harvey, Kinion, Wiederkehr, and Turk voted no. Mayor Jordan broke the tie and voted yes. Ordinance 6583 as Recorded in the office of the City Clerk RZN 22-022 (3061 East Skillern Rd./Bearden): An ordinance to rezone that property described in rezoning petition RZN 22-022 located at 3061 East Skillern Road in Ward 3 for approximately 2.99 acres from R-A, Residential -Agricultural to RSF-4, Residential Single Family, 4 units per acre. Council Member Hertzberg moved to suspend the rules and go to the second reading. Council Member Harvey seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Jonathan Curth, Development Services Director Very similar to the last item, I don't have any updates to their request. Also, similar to the last item we have received some additional public comments, since the last hearing I believe a little ways before the meeting you received some correspondence from the, I think it was the Brookbury Subdivision, that was petitioning the applicant to consider offering a bill of assurance that would limit the number of units on the property, it is worth noting. I think, Mr. Williams, may have shared at the previous meeting and if he didn't you've heard it before, we cannot require a bill of assurance from the applicant, but it can be offered if it is in their interest as of immediately before this meeting we had not seen that. From staff and the Planning Commission's perspective, I did want to remind you all that we felt that the request to rezone the property from its agricultural zoning to RSF-4 is compatible with the exclusively single-family character there and the almost uniformly RSF-4 zoning of the area. Accordingly, staff is recommending approval and as a reminder again the Planning Commission to forward it to Council by a vote of seven to zero. Daniel Bearden, Applicant, spoke and explained why his family is seeking to rezone this property to RSF-4. He stated that his family had been drawn to this property due to the extra acreage that was attached to it in the middle of the city. He went on to explain that he and his family did not have any plans other than to build a single-family home on this property. The City Council received I public comment regarding this ordinance. Council Member Hertzberg: i would like to start by thanking the applicant for being so transparent with us and letting us know exactly what he was planning to do, even though he didn't have to. I think that RSF-4 is completely appropriate. All of the surrounding areas are RSF-4, I 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar,gov City Council Meeting Minutes July 19, 2022 Page 14 of 28 don't think it's fair to ask the applicant to limit the density, even though the density in the surrounding areas is exactly the same, and they aren't required to be limited. So I'm in favor of this request and I hope that you all will be as well, thank you. Council Member Turk: You know I always like to give people an opportunity to work it out. So, I don't know if there's a really big downside of holding it for two weeks, and if they can't work it out, then we can move forward with our vote at that time, but that's what I would recommend here tonight. Council Member Harvey, spoke and agreed with Council Member Turk. Council Member Jones, spoke and agree with Council Member Harvey in the hopes that the property owner and neighbors could work out an agreement. Council Member Wiederkehr, spoke and agreed that he would support tabling the item. He went on to suggest that the applicant might need to consider applying for a tandem lot. Council Member Scroggin, spoke and stated that he was ok with holding this item. Jonathan Curth, spoke and explained that creating a tandem lot in this location was not an option. This ordinance was left on the Second Reading. VAC 22-015 (2584 N. Candlewood Dr./Harbaugh): An ordinance to approve VAC 22-015 for property located at 2584 North Candlewood Drive in Ward 3 to vacate a portion of a drainage easement. Council Member Bunch moved to suspend the rules and go to the second reading. Council Member Harvey seconded the motion. Upon roll call the motion passed unanimously. Jonathan Curth, Again staff s recommendation is a conditional approval of this request. One piece of that is that if they damage any utilities in moving the drainage line it's at their expense. The second piece is that the drainage line that they need to abandon, and move is approved, prior to the easement or the vacation being finalized. Robert Rhoads, Applicant Representative: Actually, I'm representing the applicant and the former owner of this property, the former owner is the Harbaugh's and to give you a little a little background. They bought this house about 20 years ago and unbeknownst to them their driveway and part of the retaining wall was built on this easement. They didn't know about it until I went to sell it the Timberlakes, who I also represent. So we agree to all the conditions that the city has imposed on us as far as what we need to do, and really the only issue we had was with our neighbor and there's only one neighbor involved, because the easement is in between the two pieces of property. We are requesting a temporary construction easement from said neighbor. We chatted and they said they didn't really want to give us the construction easement and that's fine because, according to Mr. Henley, we can do the work on it. It might be a little bit slower and might take a 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 15 of 28 little more money, but we can do it within the easement that we currently have. I have a text message from the neighbor's lawyer, and that is John Elrod. He said I could read this to confirm our conversation my clients will not give the easement. They will not object proceedings before the City Council or reserve all rights if the trees are damaged or die because of the works being done. You know I think we literally had four or five of the things that we agreed to such as repairing the side or the grass if it's just grass and it's not side leveling things of that nature. A lot of those things are already in our plans, and you know we're going to be good responsible citizens. The Timberlakes would like to get this project started and done so they can enjoy their house and then of course the neighbor would like to make sure that we do it properly and we've got one of the best engineers and we've got a contractor that is also an engineer by nature, and so we should get it done effectively. If we know the city will hold us responsible and we'll do it right. I think we'll do it right in the first time, I would ask you to approve this partial vacation. Council Member Harvey moved to suspend the rules and go to the third and final reading. Council Member Turk seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Mayor Jordan asked shall the ordinance pass. Upon roll call the ordinance passed unanimously. Ordinance 6584 as Recorded in the office of the City Clerk New Business: RZN 22-024 (502 S. College Ave./Davis): An ordinance to rezone that property described in rezoning petition RZN 22-024 located at 502 South College Avenue in Ward 1 for approximately 0.28 acres from NC, Neighborhood Conservation to RI-U, Residential Intermediate Urban. City Attorney Kit Williams read the ordinance. Jonathan Curth, Development Services Director, spoke and explained that the request was to rezone the property from NC, Neighborhood Conservation to RI-U, Residential Intermediate Urban. The property currently has one home located on it. The Development Services staff reviewed the request. They assessed the property for land use compatibility and found that the request was compatible with the surrounding area. Staff also reviewed the request in order to compare it to the city's long-range planning goals. Staff found that the rezone was also compatible with the long-range planning goals due to the type of services and bus access the property has. Ashley Davis, Applicant: I do not have anything to add to what Jonathan said. I will be happy to answer any question that you have. Council Member Harvey: I haven't heard anything. We do have RI-U right next door. It is a very dense area. I am inclined to support it. I would love to hear from Council Member Jones. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 16 of 28 Council Member Jones, spoke and explained that he had not heard from anyone. Council Member Harvey moved to suspend the rules and go to the second reading. Council Member Hertzberg seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Council Member Harvey moved to suspend the rules and go to the third and final reading. Council Member Hertzberg seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Mayor Jordan asked shall the ordinance pass. Upon roll call the ordinance passed unanimously. Ordinance 6585 as Recorded in the office of the City Clerk RZN 22-026 (2015 S. Vale Ave./Titan Vale, LLC.): An ordinance to rezone that property described in rezoning petition RZN 22-026 located at 2015 South Vale Avenue in Ward 1 for approximately 3.50 acres from NS-G, Neighborhood Services -General to CS, Community Services. City Attorney Kit Williams read the ordinance. Jonathan Curth, Development Services Director, spoke and provided a description of the property and the surrounding area. Mr. Curth went on to explain that this property had been seen by Council before. Earlier this year the applicant requested to vacate a piece of right -a -way that bisected the property and the request was denied by Council. Mr. Curth explained that since the previous item was denied the applicant has now requested to rezone the property back to CS, Community Services. City staff and Planning Commission supported the new rezone request. Will Kelster, Applicant Representative: Well, I was going to get up here and tell you all the long - jaded history of this project, but Jonathan's already done a pretty good job of that. I am happy to answer any questions you have. Mayor Jordan, spoke and asked Jonathan to clarify the request. Mayor Jordan wanted to ensure that he understood the rezoning request and asked if the property had been zoned CS previously. Jonathan Curth: That is correct. Mayor Jordan: So we changed it and now we are going back to the original? Jonathan Curth: That is the request. 113 West Mountain Fayetteville AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 17 of 28 Council Member Scroggin moved to suspend the rules and go to the second reading. Council Member Harvey seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Council Member Harvey moved to suspend the rules and go to the third and final reading. Council Member Scroggin seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Mayor Jordan asked shall the ordinance pass. Upon roll call the ordinance passed unanimously. Ordinance 6586 as Recorded in the office of the City Clerk RZN 22-025 (507 S. Church Ave.): An ordinance to rezone that property described in rezoning petition RZN 22-025 located at 507 South Church Avenue in Ward 1 for approximately 0.17 acres from NC, Neighborhood Conservation to RI-U, Residential Intermediate -Urban. City Attorney Kit Williams read the ordinance. Jonathan Curth, Development Compliance Director: I actually received a request from the applicant yesterday, that this item be tabled to the 8/16/22 Council meeting. I am prepared to present on it if the Council is interested. The applicant is not available, and they did understand that, they did not want to start the reading process until there was a full hearing. I believe some of you all may have received some public comment very shortly before the meeting about a nearby property owner who wanted to coordinate with the applicant. I don't know if that is the applicant's reason for requesting the tabling but there might be some nice serendipity there. Council Member Harvey: I concur with the tabling if that is what they want to do. Council Member Hertzberg moved to suspend the rules and go to table this ordinance until the 8/16/22 City Council meeting. Council Member Bunch seconded the motion. Upon roll call the motion passed unanimously. This item was tabled until the August 16, 2022 City Council meeting. Amend §92.04 Sale of Diseased Animals; Kennel and Pet Shop Regulation: An ordinance to amend § 92.04 Sale of Diseased Animals; Kennel and Pet Shop Regulation to prohibit the retail sale of dogs, cats, puppies, and kittens unless obtained from and in cooperation with the Fayetteville Animal Shelter or another animal rescue organization, and to declare an emergency. City Attorney Kit Williams read the ordinance. I 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 18 of 28 Kit Williams, City Attorney: Mayor, this afternoon after some consultation and comments from the public and others, I just thought that subsection C should be somewhat expanded to make sure that the other shelters, could be accessing our pet stores but I wanted that with the okay, and cooperation of the Fayetteville Animal Shelter. I wanted them to be able to approve that to make sure that whatever other shelter might want to use the pet stores, it would be approved by Fayetteville Animal Services. I also thought that the volunteer animal rescue organizations should also be approved by Fayetteville Animal Services. They have a lot of experience in this and they know which is a real animal rescue groups, I think there are a lot of them in there, my wife does one herself. I rewrote this a little bit added a little bit to it, and I would hope there will be amendment to it, let me read you what I'm proposing subsection C should say. It shall be unlawful for a pet shop to offer for sale or to display any dog cat puppy or kitten unless obtained from and cooperation with the Fayetteville Animal Shelter, a government or nonprofit animal shelter approved by the Fayetteville Animal Services or nonprofit animal rescue organization or approved by Fayetteville Animal Services. So that is a sentence that would have been changed to the first sentence. I would recommend that. To you, the City Council at this point in time to make this a little bit more clear and make sure that Fayetteville Animal Services can use their expertise and make sure it is the right kind of group that we are going to be helping by allowing them to display their animals. Mayor Jordan: Let me ask the two sponsors of the ordinance, do you have a concern about amending to that? Council Member Bunch: I don't. I do agree with the city attorney on this, I appreciate the clarification because I did get the emails and I thought well that's a good point there we don't have this outlined. I think our animal shelter already works with quite a few rescue groups and possibly other animal shelters in the area. I'm looking at Justine sitting there and she's nodding, so. I think they're more qualified to know who the best shelters and you know that sort of thing would be. We also have a county shelter, this was something that was brought up and I'm pretty sure Fayetteville Animal Shelter already works with Washington County and she's nodding again so she'll come up and outline this little bit more to, I think. But I feel comfortable with these changes. Council Member Hertzberg: Yes, I agree with Kit and Sarah. I think this would make this a little more flexible but also offer the same protection with Animal Services involved. I am in favor of this amendment. Council Member Hertzberg moved to amend to expand the ordinance to include Section C. Council Member Bunch seconded the motion. Upon roll call the motion passed unanimously. Justine Lentz, Animal Services Superintendent: I wanted to give you a little bit of background on how this came about. I would say late 2019 early 2020 right when things were getting real fun with the pandemic, our Animal Services Advisory Board, which is one of the city's boards that is made up of citizen numbers, as well as representative Bunch who is our Council representative. There had been a business that had opened up and Rogers at had gotten a lot of negative public feedback because of their business practice of selling at commercial retail pet sales of puppies and they wanted to look at our current ordinance see what we could do to improve that. Fayetteville's overall 113 West Mountain Fayetteville. AR 72701 (479) 575-8323 www,fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 19 of 28 mission to be a very humane community, we have a very pet loving community and we wanted to further that interest, so we the members researched, discussed and voted in favor of animal services staff, bringing forward a change to the current pet sales ordinance to not allow commercial pet sales of dogs and cats and I wanted to give a little bit of clarification to you because we have had a lot of comments back and forth today that I've seen and I'm sure that you've seen as well. This in no way would affect anybody who is wanting to have a small-scale breeding operation, if you have a couple of dogs that you want to breed and you're wanting to sell them privately, you know personally that's fine. This is just addressing the sale of dogs and cats in a retail outlet. Also previously mentioned both Pet Smart and Petco, which are our two biggest current pet supply stores that have been here for years, both have corporate mandates against the sale of dogs and cats. So when you go in those stores, the pets that you're seeing there are being sourced from either local municipal shelters, 501 C3, or animal rescue organizations. So, when you see those sometimes people get confused about what that is. Also something I've seen kind of thrown around a little bit too it's just the idea that if a store was wanting to sell puppies it doesn't mean that they can't still operate a pet supply business, so of course we welcome pet supply businesses in Fayetteville and the competition that they bring and but what we're really targeting here is the fact that the sourcing of these puppies that come into these retail outlets are coming from puppy mills and puppy mills are place that no one ever really wants to be. They are commercial dog breeding facilities in which the health of the dogs is disregarded in order to maintain a low overhead and maximize profits. There's very little oversight, the conditions are deplorable, a lot of these dogs that I have personally seen and others in our community that do rescue work and if you've ever dealt with a dog that has come from a puppy mill and I'm talking about the ones that don't make 1 it to the pet store. The ones that are left there in cages where they never see grass they don't get touched by humans, they don't go outside and they never received that care they never received any kind of grooming services it's a pretty horrific place and I think it's really hard for the average customer to associate that sometimes with what they see in a bright lit store that's you know happy with I'm sure very welcoming customer service people don't understand what they're helping to continue to propagate and that was kind of the purpose behind this ordinance. You know Fayetteville, we are very lucky to live in a community that is so support it with our animal services. Even in the Northwest Arkansas Region, I feel like our animal services division receives more support than any other, you know local community and that we're so appreciative of that. Currently I have more dogs in my facility than I've had and probably the last three years. We're definitely seeing a lot of people and a lot of tough places that are needing to place their pets, we definitely do not have a lack of adoptable pets in our community, and certainly in the Northwest Arkansas Region, and this is not just an issue that Fayetteville is facing. I work closely with other local shelters, particularly Springdale and their directors been in the same place for a long time. They're just inundated with people that either put off having their pet spayed during the pandemic or financially or just really struggling. So there's definitely not a lack of adoptable pets and we want to make those a priority, because those you know they didn't ask to be here, but they're here and we want to give them the best shot that we can at finding a loving home. We have a vet on staff, of course, to ensure that our puppies that are put up for adoption are healthy. So, in summary that's what this ordinance is for. We just really are wanting to target this. We can't regulate what happens outside the city limits, but we can take a stand on the product that is here, and that is something that we don't want to see that these puppies coming in from puppy mills and being sold. In addition, you know a lot of places that sell these puppies, they sell for a lot of money, like thousands of I dollars. A lot of people don't have thousands of dollars to initially spend on a pet so they offer 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 20 of 28 financing through private entity and a lot of times those interest rates are 30% and up, and then if you default it's even more penalties. i am in communications with directors, from both the Humane Society of the United States and Best Friends Animal Society. That was something that came up in these places, opening in college towns, particularly like. We have a lot of people that maybe don't have the financial know how or the savvy to understand when they might be taken advantage of. They're not reading the fine print because it's a very emotional thing. That's what we're trying to prevent with this ordinance moving forward. I'm happy to answer any questions that anybody has. Council Member Bunch: I don't have any questions I'm pretty clear on everything. Council Member Scroggin: I don't have any questions. I just want to thank you all for bringing this forward. Council Member Bunch: Well just very briefly, i would say that I've been on the Animal Services Advisory Board for a while and I am glad Justine pointed out that we started talking about this, and when the store first opened in Rogers so that was 2019 or 2020 and we had the pandemic, you know this kind of got put on the back burner, a little bit, but it is something we had talked about multiple times over the past several years and started the process of actually writing it and just you know it just kind of there always seem to be a big agenda and everything going on and it's asked well let's wait a little while and now is the time to do it, I think, thank you. Council Member Hertzberg: I just want to add kind of how I got involved in this, I had approached Kit and Justine to work on our pet care ordinance to improve our requirements for shelter for outdoors because we've gotten some public comments from concerned residents about care of animals, and so I was meeting with them and they mentioned that Sarah had brought up this ordinance, and so I asked to be a part of it, and she graciously allowed me to co-sponsor this and so that's how I got involved in, I am very much in support of this, so thank you. Council Member Bunch: That's actually the other way around, because I did not bring this forward, it was I forgot who that started it on the Animal Services Advisory Board but Holly is the one that really took it to the front burner this past couple of weeks so and I think Justine was probably the one that brought it to our attention, thank you. The City Council received 7 public comments regarding this ordinance. During public comment the owners of Petland came to the mic and engaged in a question and answer session with the City Council Members. Kit Williams, City Attorney: This is not the first time, the City Council considered restricting or prohibiting of the sale of dogs and cats in the city, we have a specific code of provision in our animal chapter, it says you can't sell animals off parking lots. We used to have a lot of that going around, and it was to do the same thing that I think the Animal Services Committee wanted to do here is to protect the animals from being really sold or even given away to someone that might not know how to handle the animal or care for the animal and we felt like that was just the City Council felt like that was just the wrong thing to do, and so they prohibited that. We never talk about any 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 21 of 28 pet store that this might affect we talk about some pet stores that don't do this, that sell pet supplies and live on that, rather than trying to sell individual animals but this is directed totally at trying to slow down as much as possible the mass production of puppies and kittens that we see in this country. They were being produced under conditions most of us don't think is probably the best thing to do. We're not trying to shut any business down; they can do anything except selling puppy mill dogs and cats. What we're not trying to, I want to make sure that that the Chamber of Commerce realize we're not really, directing this in any store we want all the stores all the pet stores in Fayetteville to operate under the same conditions where they're not helping and facilitating the mass production of cats and dogs sometimes called puppy mills and we just feel like or, this is at least directed toward trying to prevent that and rather than any other business might be coming in. So, I just want to say we've already made efforts years ago to prevent that kind of activity on parking lots and now it is being potentially extended to a pet store. Council Member Bunch: I have a question and possibly for kind of a combination of the City Attorney and Justine Lentz. In crafting this change to our ordinance, where did you find that Pets Smart and Petco do not sell animals, puppies and kittens that they only take them from shelters and rescues and that sort of thing, but where are other cities that have ordinances similar to this because I know we mentioned a few when we first started talking about this? I'm kind of wondering where are some other places that that might have an ordinance like and in those cities feel that they are not promoting business by not allowing the store to sell purebred dogs, I don't think we're unique in this and alone Ellen Island on this. Justine Lentz: When we were doing our research and we reached out to the Best Friends Animal Society they gave us some information, there are 26 other states that have enacted very similar retail pet store bans and over 350 cities and no one has ever filed a suit in a community for passing such an ordinance, didn't displace any currently open businesses. Further only a handful of suits has been filed in communities that already had retail pet stores and none of those have been successful so it's definitely, I mean, yes, the first in Arkansas but we're certainly not the first in country. Council Member Turk: I have a question for the owners, if you could come back up here. So, Mr. Clark mentioned that you all were franchise, is that right? So the rules that govern Petland your franchise, do they prohibit you from taking dogs or cats or kittens or puppies from an animal shelter? Is that a prohibition within the contract with Petland? Petland Owners: No, it does not. Council Member Turk: Okay, so for your three stores, could change that practice if you desire to? Petland Owners: We would have to change our class, it's not our business model and for the cross contamination of puppies i just would feel like it would be, you could ask Justine, because when you intake a pet not knowing where it came from the quarantine process that has to happen is pretty intense, because just like a human, we can harbor something viral for 14 days that's why the State's , regulation on warranty was 10 days, but we go above and beyond that to be 14 days, which is really, that is, the ethical thing to do for the consumer, and so you know if you quarantine every 1 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 22 of 28 intake puppy to bring that in basically I just feel like there is a way that we can work with just being in the local shelters, it could be a new business model, I will tell you ASPCA is opening up in talks with major retailers to change up the business model because things are different now people understand that these animals are their family members, they are not just the cow sitting in the field, which you know every animal has its place, but not in my heart. The animal has a right to go to a loving home at a young age, and we care about that. One thing we could also help Justine with is, you know we're open quite a bit more than shelters if somebody has an emergency or somebody needs to intake; we could have a designated spot, maybe. We could take something in to help her, you know in designated area, I do have a separate room. But you know couldn't be on a permanent basis, they will have to come get it on that, following Monday, but there's so many options that we can do to help each other. I could help them; we have such strict protocols and everything that we could learn from her and she can learn from us. Council Member Turk: Have you all had conversations like that yet? Petland Owners: So. I have reached out and I actually have it on video, I have to find it sorry we just learned about this literally today. I have not had much opportunity to prepare, but I have actually recorded myself calling local shelters, to try to partner with them to sponsor vaccinations to I've actually reached out to local vets to say, hey can we educate, these people will be honest with you the vets do not have time to do it, even if I paid them to do it. There's just not enough hours in the day to take care of the animals. The way that they need to be taken care of and you know that's why I'm telling you there's so much more that can be done. Council Member Turk: Okay, thank you. Petland Owners: I just want to ask that we table this so that way we can get a chance to prepare. Council Member Bunch: I have a question here for Samantha you mentioned quarantining puppies if they came from a shelter but do you quarantine the puppies that you get? Petland Owners: That is a great question. We know exactly where they came from, I can see exactly that puppy's vaccination record, we have a very strict protocol on the worming on all of our prophylactic care and we do a bordetella, which is kind of like the flu shot for humans, puppies get the same thing, and it should help give them that extra boost immunity because if you think about a puppy you know they basically work on mom's immunity, for the first 16 weeks so, although we do give them their vaccinations, that's just such a strong component and how they're going to respond to the external whatever they're exposed to, but at the end of the day, I can see that, so what we do is once we take them in we do a five day deworming. Basically, what we do is monitor their weight, we monitor their food, we monitor their water. We hope to have you and if you guys came in, so I can show you everything that we do. Show you we also take them to the vet, which we don't have to do that but we do that, because what we need to do is see if they have any issues, so say they have weak knees or an open fontanel. There's so much that we can tell whether a breeder wants to hide it or not, the puppy's health speaks for itself, and we can tell, by having a vet to go down a list to say hey, is this puppy healthy? Are we social? There's so much that you, you just have to run a transparent business, when you deal with a heard management situation and immune systems issues, no way around it. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 23 of 28 Council Member Bunch: I really appreciate your transparency on this but you go through this process, but you don't actually quarantine the puppies for two weeks or anything. Petland Owners: We quarantine for 48 hours to see that they have their vaccinations and then we are seeing the veterinarian we're going through the treatments that Samantha talked about. We can see that they have had the care that they need before they come in because we require it by the breeders. Council Member Bunch: I would like to ask Justine if she could come up. Justine when the Animal Shelter gets a dog what's the process that they go through before that dog is available? Justine Lentz: Right, so we obviously we have the ordinances to follow so any dog that we take in or cat, for that matter, and unless they are coming directly from an owner, who can no longer care for them they are held either five to seven days, depending on if they're microchips or not, regardless of that, unless we have current vaccine records, we immediately give dogs a Parvo distempor boosters, bordetella, which is kennel cough a dewormer and we weigh them as well treat them with a topical flea and tick preventative. After they become our property then we also heart worm test dogs over six months, they get spayed or neutered, they get their rabies vaccination if they're old enough. We actually have an extremely strict protocol with puppies because they are extremely vulnerable and same thing with kittens so we actually have one dedicated staff member that's in charge of puppies. That person's not allowed to interact with any adult dogs. We don't allow the public to come in and play with our puppies because we don't know where they've been. Parvo is a virus that puppies can get that is often times fatal to them if it's not fatal then it's pretty brutal. To get them through it we do treat puppies with parvo at our animal shelter. We have a pretty good protocol for treating it but to be extra safe we don't allow people to handle our puppies until they leave the facility or until they have three parvo distemper boosters onboard. Parvo is a hardy virus, you can track it on your shoes, you can walk through it, you just don't know until it's too late and once they start showing symptoms, a lot of times you can't test for it ahead of time. You can't test until they're showing symptoms. Council Member Bunch: So that's pretty lengthy process there as well, but before that puppy or young dog is available to be adopted, how many days does that take? Justine Lentz: I would say the minimum obviously five days usually it probably averages more in the seven to 10 range. Would never turn around and adopt out a puppy that I had less than 72 hours because anything can pop up whether it's worms that maybe didn't get eliminated the first round. You know parvo does have a longer incubation period to so I mean that's always the possibility that's not going to break insulators that we try to be as cautious as we can. Council Member Bunch: The last time I was in the shelter, quite a while back. I know there were some procedure where you, you know course everybody wants to play with the puppies you know because they're so cute, but I believe, I had to walk through some kind of substance to clean my shoes off. I couldn't just take one kitten out and put it back and get another one, I had to wash my hands and be really careful that way. 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 24 of 28 Justine Lentz: Our veterinarian, Dr. Henley, has protocols for everything and of course we train our volunteers as well. Because anytime you're dealing with them like I heard right like a large population of animals, you just have to be extra safe to keep everybody helping as much as possible. Council Member Turk: I'm wondering if there's a way that more time can be allowed. Sounds like we're one day away from certification for this business with the Fire Marshall. I'm wondering if that can be held up for a couple of weeks to allow, maybe Justine and the owners of Petland, to maybe discuss if there any is any room to cooperate or collaborate. If there's any room for that, so I don't know what other Council Members feel or if that's even an option. Council Member Scroggin: I feel like this can't be about Petland. It needs to be about is this something we want for all or not and that's what the decision needs to be about. Unfortunately, it seems like some people think it's about Petland. It needs to be, do we want this type of business specifically riveted there or not. So I really worry. So hopefully it's something that we do, independent of whatever Petland is doing. Council Member Kinion, spoke and echoed what Council Member Scroggin stated. He went on to provide the history he has had with the Human Society and explained supply and demand when it comes to obtaining a puppy. He also provided an example of when there was a pet store in Fayetteville that sold puppies and kittens. He that the store closed and the conditions that the pets were in were not good. Council Member Bunch, spoke and echoed agreement with Council Member Scroggin and Kinion. She went on to explain the reason she co -sponsored this ordinance was due to the amount of concern she has about Petland but stated that she wanted to take Petland out of the equation altogether. She explained her own experience with purchasing purebred dogs and adopting from the animal shelter. Council Member Harvey: I think a lot of the emails that I received was about being sure that the animals were being humanly treated and if there's a way to track how the animals come through, where they're coming from, whether they're sold at Petland or something like that is that something that we're open to or we're just saying, where it's just easier, we can't we really don't have the resources to go and inspect and track that and that's what we're concerned about right. I guess for people that are wanting us to protect animals, the answer is to reduce the number of places where the hands are exchange and I think that's what's happening that's the question that the people of Fayetteville are asking us like you're our City Council, how can you help us protect our animals and y'all are doing it sounds like an incredible job and we also have constituents saying we we've unfortunately have these stories and so like we're having these dilemmas, because we absolutely want business. Your business sounds really good you're not you're the exception and so how do we balance that. We want people to be able to get the amazing dogs, they have, and you've had a great experience and that's anxieties something everybody's probably experiencing right now maybe a labradoodles the answer from Petland I don't know but we really don't have any way to track that I guess the issue, so I don't know if this ordinance can include a tracking you know, like if we just said hey for every animal that is sold in Fayetteville is there a way to track the animals? 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 25 of 28 Council Member Bunch: I don't know about that. I always try to take everything with a grain of salt and you know you hear horror stories and they're designed to be horrible stories there to really make a point so I kind of pull back from the worst case scenario and think, maybe it's not quite as bad as that but I don't know what we can do about that. I don't think there's any way we can. Council Member Scroggin: I would love to table this and look at it at another point. I agree with you that that we need a mechanism. I know it's at the state level but think about we allow entity to sell alcohol, but if they do it wrong, the state goes you don't get to sell alcohol anymore. So, we need to look at this little bit more and come up with something so if they do it fine, then they get to keep doing it. If somebody else comes in, with some derivation of the name pet and they're not doing it right than we can say hey we know you're not doing it right you're going to have to fix it and temporarily lose that right, just like alcohol places if they keep selling it to minors, they don't get to sell to anybody for a while and if they keep doing that, then they either never get to sell or get to go to jail so I think we need to review this and write something that that works independent of their name and more what they're actually doing on the ground. Council Member Kinion, spoke and echoed his comments that he had made earlier in the evening. He went on to explain that the City of Fayetteville cannot afford an agency or to be an agency to go out and enforce some of the ideas that had been brought up. Council Member Hertzberg, spoke and explained that the reason she had brought this forward to protect the health and safety of animals. Council Member Hertzberg moved to suspend the rules and go to the second reading. Council Member Bunch seconded the motion. Upon roll call the motion passed unanimously. City Attorney Kit Williams read the ordinance. Council Member Turk: Can I just comment that I think we need more information, I am so sorry that we are under the gun with one day to go but I'm feeling like this is being really rushed. I guess you guys know that I like to do a lot of research, I feel like this issue was way more complex than I realized and so you know I'll support moving this a little bit forward, but I would really like to not make the final vote tonight, if there is any way for us to delay the fire department from certifying this business or whatever the right term is so I will just put that out there. Council Member Harvey: I am okay to hold it as well. Council Member Bunch: I would like to hear Kit's comment on what was just said and I don't know that we can even do that, I don't think you can do that. Mayor Jordan: You can withdraw your motions. Kit Williams: You could do that. If you suspend the rules go third reading, it's ready to be voted on, it can be table then but I don't understand how that would be different and actually I think we have other Council Members that want to talk about this, so I that's all I want to say. 113 West Mountain Fayetteville. AR 72701 (479) 575-8323 www,fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 26 of 28 Council Member Kinion: I can't speak for everyone, but, from my point of view I do know a lot about this and I do you have a lot of compassion and so I would go ahead and vote and you all have to do whatever you have to do, but I think this is something that is valuable for my values so just wanted to let that be known. Council Member Bunch: I don't know how long it's been since that particular pet store was in existence, i mean we've had two big stores Pet Smart and Petco in Fayetteville for many years, but they have not sold animals like the store that Mark was describing. I do know that was years ago. It was a grime place. It was suspicious there on the animals they had. That is in the back of my mind. If we table this or try to work around this one particular business we open ourselves up to other businesses that are not as qualified as Petland probably is. That is a concern to me. We have had that in Fayetteville before. These pet stores sell puppies because puppies are irresistible. Council Member Kinion: I think that it sounds like they were forcing people to get a pet that comes from a shelter or rescue. I think that Emily said it from her point of view, she likes her French bulldogs and she got French bulldogs but she still understands the demand for animals from high volume animal breeders, and so I think that's a very valuable point of view, because I know her dogs, and they are cute and they're purebred that she's still out there, trying to do the right thing and reduce the demand. It's the demand for high volume animal breeders, that is in the industry so anyway, thank you Emily for your point of view, I think that was valid. Council Member Wiederkehr: I have not researched this, I am not overly competent on the issue of pets at this point in my life, I do know the code, however, and I do know that this body does not have the ability to impact an inspection from a department, whether it's the Building Department or the Fire Department. They're acting on a ministerial permit under state law that says, if you meet the requirements, you get your permit you get your inspections and the outcome of that is determined by the code. I would not like us to be distracted with talk about an inspection because that's irrelevant for our body. I appreciated Sloan and Teresa expressing concern that they wish we had a little more time to research, this in, and that is my sentiment not being overly qualified in this. I do think, however, that the Council has spoken with some significant wisdom, saying that the issue isn't the sale of animals, the issue isn't the puppies, the issue is the breed animals themselves and that's beyond our ability to regulate. I have eminent respect for the Chamber of Commerce but at the same time we regulate the sale of alcohol illegal product on Sundays in Washington county and I wish we could change that Mr. Mayor but that's beyond this Council's per view as well. I met this quandary of saying, while I don't want to get distracted that there's an inspection that's not our purview I don't want to get distracted with the sale of puppies that's not what we're talking about we're talking about the care and condition of breed animals and whether we have an ability to impact that the business entity, has the ability to sell more mature animals, such as you and I are mayor, or they have the ability to refer people to Springdale to their other facility to say I've got just the animal you're looking for you didn't find what we had available through our local immediate access, and so I don't think that we're curtailing their ability to be a profitable business either. So, I had no idea that this would unfold, the way that it did I thought it was a relatively straight forward item. Council Member Hertzberg moved to suspend the rules and go to the third and final reading. Council Member Bunch seconded the motion. Upon roll call the motion passed 6-2. Council 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 27 of 28 Member Hertzberg, Harvey, Jones, Kinion, Wiederkehr, and Bunch voted yes. Council Member Scroggin and Turk voted no. City Attorney Kit Williams read the ordinance. Council Member Wiederkehr: I think the emergency part makes it feel like it personalizes it to the business as opposed to the topic in general, and that would just be the only other comment that I would have to make. I like the general approach to it beyond that. Kit.Williams: Well, the emergency clause will not be voted on first only the ordinance itself, and then there will be a second, though, on the emergency clause. Council Member Kinion: I do like your point of view there. I get it. Council Member Turk: I just want to say that I just feel this issue is so complex and it's being really rushed, and I wish I had a little bit more time to do some research so that that's my point of view. Mayor Jordan: I think, for what it's worth we have done these before. Kit brings out a really good point. I was on the Council when we did the sidewalk, you know no sale on sidewalks, I agree with you, Mark, it was in some pet stores in this town, I'm not saying that this pet store is like that, but I have seen some pretty rough pet stores. Now I think Mark brings out a really good point, if I had to what vote for this, because it is part of my values as well and I have a dog that I have gotten at the animal shelter and I become, quite in fact I've gotten two, animals are like family to me so it's just part of my grain and I believe that this type of ordinance needs to be passed not because this business but because it is the right thing to do. Mayor Jordan asked shall the ordinance pass. Upon roll call the ordinance passed unanimously. Council Member Scroggin moved add an emergency clause. Council Member Bunch seconded the motion. Upon roll call the motion failed 4-4. Council Member Hertzberg, Harvey, Jones, and Bunch voted yes. Council Member Kinion, Wiederkehr, Scroggin, and Turk voted no. Mayor Jordan: So that puts it on board for 30 days, right? Kit Williams: that's right. Ordinance 6587 as Recorded in the office of the City Clerk Announcements: None City Council A enda Session Presentations: 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov City Council Meeting Minutes July 19, 2022 Page 28 of 28 Agenda Session Presentation - Economic Vitality Contract Services Semi -Annual Update, Devin Howland City Council Tour: Ad'o nnient: 9:19 PM .��RK t nEvt, : "= 4f�w aj /]A CRY_ r `-ti-' ioneld Jorda Iavor Kara Paxton, City Cler Treasur r N GO 113 West Mountain Fayetteville, AR 72701 (479) 575-8323 www.fayetteville-ar.gov