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Home My WebLink About07-13-99495 Board of Directors Room City Hall - 500 W. Markham Little Rock, Arkansas July 13, 1999 - 4:15 P.M. The Board of Directors of the City of Little Rock, Arkansas, reconvened from the July 6, 1999 regular meeting, with Vice Mayor B. J. (Brenda) Wyrick presiding in the absence of Mayor Jim Dailey. City Clerk Robbie Hancock called the roll with the following Directors present: Directors Pugh, Lichty, Cazort, Stewart, Kumpuris, Kelly and Adcock - total 7; Absent - Directors Hinton and Keck and Mayor Dailey - total 3. With a quorum present, Vice Mayor Wyrick declared the Board of Directors in session and announced the purpose of the reconvened meeting was to conduct a public hearing on the issuance of Airport Revenue Bonds, and other matters. (Director Hinton enrolled at 4:18 o'clock P.M.) Vice Mayor Wyrick noted that the Agenda Modifications listed two Resolutions authorizing Friendship Cities Agreements with Newcastle, England, and La Petite Pierre, France. Director Cazort moved to add the two Resolutions to the Agenda. The motion was seconded by Director Adcock and unanimously adopted. (See Resolutions No. 10, 598 and 10, 599 below) Consideration was then given to Resolution No. 10,598, entitled: A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO A FRIENDSHIP CITIES AGREEMENT BETWEEN THE CITY OF NEWCASTLE, ENGLAND AND THE CITY OF LITTLE ROCK, ARKANSAS, UNITED STATES OF AMERICA. Following the reading of the Resolution, Director Adcock moved for its adoption. The motion was seconded by Director Pugh, and the Resolution was unanimously adopted by the Board Members present. (Note: The Agreement will be signed in conjunction with the Sister Cities International Conference in Little Rock July 21 -24, 1999.) The next presentation was Resolution No. 10,599, described as: A RESOLUTION AUTHORIZING THE MAYOR TO ENTER INTO A FRIENDSHIP CITIES AGREEMENT BETWEEN THE CITY OF LA PETITE PIERRE, ALSACE REGION, FRANCE AND THE CITY OF LITTLE ROCK, ARKANSAS, UNITED STATES OF AMERICA. Following the reading of the Resolution, Director Adcock moved for its adoption. The motion was seconded by Director Pugh, and the Resolution was unanimously adopted by the Board Members present. (Note: The Agreement will be signed in conjunction with the Sister Cities International Conference in Little Rock July 21 -24, 1999.) A public hearing had been scheduled for this time and place by Resolution No. 10,580, adopted June 29, 1999, on the question of the issuance of City of Little Rock Airport Revenue Bonds, Series 1999. Notice thereof was duly published in the Arkansas Democrat Gazette. Vice Mayor Wyrick declared the public hearing open at 4:20 o'clock P.M. Airport Manager Debra Ledwell made a presentation of the proposed capital improvements project at the Little Rock National Airport (a three level parking deck, parking administration building, expanded baggage claim area, relocated toll plaza, rental car surface lot and rental car offices, relocated Airport Drive, etc.). Mrs. Susan Fleming, Stephens, Inc. financial advisor for the bond issue, explained that the proposed Resolution authorizes the underwriters and bond counsel to proceed with matters 1 496 Minutes - Reconvened Meeting July 13, 1999 preliminary to the issuance of the bonds. A $28,080,000 bond issue will be offered in two series. The bulk of the bonds will be offered as tax exempt obligations, secured by the general revenues of the Airport in the amount of $24,950,000 at a net interest cost of 5.3 %. The rental car facilities are not eligible for tax exempt financing, but can enjoy taxable municipal bond financing. There will be $3.13 million in taxable bonds at an interest rate of 6.5 %. Mrs. Ledwell and Mrs. Fleming responded to questions from the Board of Directors. Others responding to questions were Mr. Mark Stodola, attorney for the Airport Commission; Mr. Bill Flowers, Deputy Airport Manager; and Airport Commissioners Gary Smith, Dr. Carl Johnson, and Gene Fortsen. Responding to a question by Director Kumpuris, Mrs. Ledwell said the plans do provide for rail transport capacity in the future. In response to Director Adcock's question regarding taxicab service at the Airport, Mrs. Ledwell said. a new taxicab operator facility is included in the project. Responding to questions by Director Cazort, Mrs. Ledwell stated the project will add 900 new spaces. A maximum of 350 spaces will be out of service at one time during the construction; however, the Airport employee parking area will be expanded to accommodate displaced passengers. Director Adcock asked if there is anything about this project that prohibits the City from assessing a fee on rental cars. Mr. Mark Stodola, attorney for the Airport Commission, said the Commission already has agreements with the car rental companies that require that they pay a fee to the Airport based on the percentage of their receipts. Director Adcock asked, "What if this Board decides to tax the car rental companies? Is there anything in this proposal that would keep us from taxing car rentals ?" Mr. Stodola replied there is nothing in this proposal, but that has been typically a relationship between the Airport Commission and the car rental agencies' use of the Airport properties in terms of what they pay to be on the Airport premises. Those issues are currently under contract, and through the course of the financing of this project, we have renegotiated those contracts in principal that would provide for an increase in percentage, so that it takes into account the additional costs to the capital construction that are attributable to the car rental companies themselves. Director Adcock said that in some cities the city taxes the rental units at the Airport. "As we are looking for revenue, this is one area I was looking at and I was wondering if this prohibits us in any way." Mr. Stodola responded that this bond issue would not in any way affect that in terms of the local tax that might be placed on the car rental companies. Director Hinton wanted to make sure that minority contractors will be a part of this project. Director Lichty noted that the original estimate was $20 million and we are now at $28 million. He wanted to know what caused the 40% increase. Mrs. Ledwell said the fact is that this is an estimate. Mr. Bill Flowers, Deputy Airport Manager, said the consultants have advised the reason for the bids in excess of the estimate are the robust economy and the complexity of the project and the restrictions placed on the contractor. Responding to Director Stewart's question regarding an increase in parking fees, Mrs. Ledwell stated there would be some increase in parking fees in conjunction with different time frames, but in some cases there won't be. There will also be some reduction in fees for short term parking. Mrs. Ledwell explained the various means of keeping the community informed of what is happening at the Airport during construction. Vice Mayor Wyrick closed the public hearing at 5:15 o'clock P.M. Since the Agenda listed the public hearing only, Director Adcock moved to add the proposed Resolution to the Agenda. The motion was seconded by Director Kelly and unanimously adopted. Whereupon, Resolution No. 10,600 was presented, with the title being: A RESOLUTION AUTHORIZING THE MAYOR AND CITY CLERK, IN COOPERATION WITH THE UNDERWRITERS AND BOND COUNSEL, TO PROCEED WITH MATTERS PRELIMINARY TO THE ISSUANCE OF NOT TO EXCEED $33,000,000 PRINCIPAL AMOUNT OF AIRPORT REVENUE BONDS; APPROVING THE PREPARATION AND DELIVERY OF A PRELIMINARY OFFICIAL STATEMENT; AND SETTING FORTH OTHER MATTERS PERTAINING TO THE AIRPORT REVENUE BONDS. Following the reading of the Resolution, Director Adcock moved for its adoption. The motion was seconded by Director Pugh, and the Resolution was unanimously adopted by the Board Members present. 2 Minutes - Reconvened Meeting July 13, 1999 Item 2 on the Agenda was a proposed Resolution described as: "A RESOLUTION AUTHORIZING THE USE OF EMINENT DOMAIN TO ACQUIRE RIGHT OF WAY FOR STREET IMPROVEMENT PROJECT ON FAIR PARK BOULEVARD FROM ASHER AVENUE TO 30TH STREET." As noted on the Agenda Modifications, the Public Works Department and the property owners had reached an agreement. Therefore, the proposed Resolution was withdrawn. (See Minutes of July 20, 1999.) There being no further business to be presented the reconvened meeting was adjourned at 5:20 o'clock P.M. to meet again in regular session on Tuesday, July 20, 1999, at 6:00 o'clock P.M. ATTEST: City Clerk Robbie Hancock 3 APPROVED: Vices �'ayor B. J. (Brenda) Wyrick 497 x