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HomeMy WebLinkAbout10-10-00:1. Minutes Board of Directors Room City Hall — 500 W. Markham Little Rock, Arkansas October 10, 2000 4:00 P.M. The Board of Directors of the City of Little Rock, Arkansas, met in a reconvened session with Mayor Dailey presiding. City Clerk Nancy Wood called the roll with the following Directors present: Directors Pugh, Hinton, Lichty, Cazort, Keck, Stewart, Kelly, Kumpuris, Adcock. With a quorum present, Mayor Dailey declared the Board of Directors in session and the proceedings of the meeting are recorded as follows. With a motion by Director Keck, seconded by Director Lichty, and a unanimous voice vote by board members present Item M -1 was added to the reconvened meeting agenda. Item M -1 ORDINANCE NO. 18,370 - Dispensing with competitive bidding and authorizing the City Manager to enter into a contract with Cranford Johnson Robinson Woods, Inc.; declaring an emergency; and for other purposes. 1. RESOLUTION NO. 10,908 — Affirming the goal of consolidating the water utilities of the cities of North Little Rock and Little Rock; directing the Mayor to initiate a process for consolidation; setting the effective date of the merger and the date for the submission of the plan of consolidation; commending the university of Arkansas at Little Rock and its Water Study Task Force; and for other purposes. Director Lichty stated that almost a year ago this board room was the center of some spirited debate and conversation about the North Little Rock Water situation visa a vie the Little Rock situation. He commented that what a difference a few months, a UALR Study, the will expressed by two Mayors on either side of the river as well as the respective water commissions and water departments can make in an issue like this. He stated he could not emphasize strongly enough, what he feels to be an immense sense of cooperation and a will to want to try to move this issue along, that he has perceived on both side of the river. Just last night the City Council of North Little Rock went on record as having voted unanimously for support of the resolution which basically affirms the recommendations made in the UALR Report and in his judgment advances this project to the next stage, which is to try to come together and have a document presented to each of the boards by the first of the year which would be the official merger document. He said there would be plenty of time to get questions answered but to capture the spirit of cooperation that exists right now; he urged the board to approve the resolution unanimously. He said he believed it would send a powerful signal as the city proceeds toward the road to regionalism. Mr. Joel Anderson, the Project Director, presented an overview a visual presentation of the UALR Water Study. He introduced the Task Force: Mr. Gary Chamberlain, Mr. Jeffery B. Connelly, Mr. Michael R. Hemphill, Mr. Roby Robertson, Mr. Ashvin Vibhaker. Mr. Anderson in a brief overview of the study, stated there were two core issues; (1) A need for regional water initiative, and (2) Little Rock and North Little Rock must put an end to a strained relationship. He briefly spoke of water supply capacity, the consumption usage in a designated period of time, gave a projection of the water supply demand now and in the future, new water supply resources, what the benefits of a regional water supply would provide to each city, the costs of new water supplies, governance criteria, and interim steps and guidelines for the cities to follow, some suggested timelines for the merger. Director Adcock sated that she thought it was understood that lake De Gary would be the next source of water supply, and that money was already being spent in making sure that it available to the city. Mr. Anderson responded that it was correct that the Water Commission is spending about $178,000 a year to preserve that option. He said he did not think the consensus of the water professionals and others who have looked at that issue in recent years, is that that is the best option, but at the same time, that is going to have to be looked at in the round, when the time comes for making concrete decisions, and Greers Ferry and Lake Ouachita will be in the running. Some combinations of all sources, including the river are all possible sources. Director Adcock asked why another rate study was needed. Mr. Anderson answered there were two reasons, one is rates for a very different service area. These were for two separate entities, and this would be for one service area. The earlier • 10 studies were both controverter, there wasn't confidence in all directions of either one of the studies. Director Adcock said it was her understanding that the North Little Rock System is not up to the standards of the Little Rock System, and would Little Rock money be used to bring the North Little Rock System up to standard. Mr. Anderson said they had a recommendation was a second study that was recommended to be conducted would be an engineering study of the conditions of the two distribution systems to determine what the existing improvement needs are an whichever has the greater requirements would be reflected in roes for that city during the transition of levelizing rates. Director Adcock asked if the monies in Little Rock's reserve fund would be used for Little Rock only improvements. Mr. Anderson said he thought that could be worked out, in his personal perspective, he said in the reserve funds of the two cities they both in _ terms of uncommitted funds are down pretty low. He said one clean way would be by agreement that the Little Rock dollars are going to be spent on this side of the river and the North Little Rock dollars on that side of the river. Mr. Anderson said the task force chased most of the issues likely to come up when working out a merger to a point. Director Kumpuris stated in the back of the report it talked about a period of time when the rate that are being paid by Little Rock ratepayers and the North Little Rock ratepayers will not be equal for a seven to ten year period of time. Director Kumpuris said his understanding was that's the period of time when all these issues would be taken into consideration. He went on to ask Mr. Anderson to elaborate on the issue of this project being revenue neutral to the cities and asked how the merger does not injure this city government. Mr. Anderson said they came to understand that both cities receive revenue, directly or indirectly from their two water utilities and that has some effect on the basic model they recommended. He said all the variables would have to be taken in to consideration and figure a way to make it revenue neutral. Director Kumpuris said that Little Rock has always used water as an economic development tool, and asked Mr. Anderson who he perceived the city do that if the water system is merged. Mr. Anderson said he thought it would continue to happen and would in fact be even more effective when there is a commission and a CEO of the water utility that is truly looking at the two -city region. In their recommendation, the commissioners are going to become commissioners in essentially the same way has they have in the past, which is a way of saying the City Board is going to have to be comfortable with people that are chosen, and they are going to be able to function in way that consistent with the large view interest of the cities. Director Keck wanted to make certain business as usual takes place to a certain degree as the merger of the two utilities begins. He said there are currently major prospects looking to locate here in the City of Little Rock, and their demand for water service is going to create to potentially large customers for the water utility, and wanted assurance that day to day business will still take place. Mr. Anderson said he was confident that the leaders and executives of the two utilities would assure that. Director Keck asked about unserved areas, and wanted to make sure as the utilities come together, that a policy is developed on how the utilities will work with those unserved areas. Director Keck said he was hopeful that this was the first step toward greater regionalism, and thought water was something that could really combine the municipalities throughout this county and possibly crossing county lines in any number of directions. Director Hinton said he was planning to support the merger but wanted to know why other cities were not involved. Mr. Anderson said basically there were two reasons, one was Little Rock and North Little Rock that requested the study, and there was no mandate or request for the other cites to be included. He said they did visit with people in Benton, Lonoke, Jacksonville, and Conway, Cabot and Maumelle and other nearby municipalities, to get a feel for the regional situation. The other reason was that a regional solution or plan is a much bigger undertaking, and they had spent tons of time interviewing board members, water commissioners, and community leaders in all the areas they visited, and you would have to multiply that two or the times to get a decent planning exercise for the region, so those were the restraints and the considerations. Director Hinton asked if any plans were — discussed to merge the sewer systems. Mr. Anderson said no, those were not seriously discussed. Vice Mayor Wyrick asked about rate increases, saying that North Little Rock rates are higher than Little Rock rates, and in order to equalize or levelize the rates, that would mean Little Rock rates would increase, and possibly North Little Rock rates going down, and asked Mr. Anderson if that was how he saw it happening. Mr. Anderson explained that he thought the thing that would avoid conflict in the area is that people go into it with a commitment up front saying a number of things are going to be accomplished over a ten year period, and with that frame of mind felt all details could be 2 810 worked out. He went on to say that Little Rock rates would not go down, and may have to rise, but it would take place over a seven to ten year period. The citizen would still get low rates compared to other cities, and they would have a solidified rate base permanently, and that the best guarantee of low rates indefinitely. Director Wyrick if he was comfortable with the plan and the time line. Mr. Anderson said he saw no problem. Director Pugh asked if anyone would lose his or her job. Mr. Anderson said it would most likely be done through attrition. Mr. Carney, City Manager, thanked Mr. Anderson for the work put in on this project and the work so far has been excellent. Mr. Carney said there were three pieces remaining. The voting on the ordinance and resolution sets the wheels in motion, part two is the dialog that happens after the vote tonight, including several issues, the revenue neutral issue, the impact on the city governments and on the ratepayers of each community, the third element is when the package comes back to this board and the North Little Rock City Council in final form, the merger documents, the other ordinances, the proposed legislation need to be just right, and if there is a final action to approve by the bodies, then that would conclude the local effort, and along the way discussion with citizenry in how this evolves, and then hand it off to the state legislature for their action. Mr. Carney said the steps that follow tonight are the most significant, the issues outlined have been chased to a degree but not the conclusions, and those issues somewhat unique to Little Rock, having a great relationship with our water utilities, related to economic development projects, and the new arrangement in maintain of our fire protection system, and the areas that overlap are vast in number, and some have not been talked about. Mr. Carney said the two cities both share a Class 2 ISO fire rating, and about one third of that rating is based on the quality of service in the water utility area. Mr. Anderson, in conclusion, said he appreciated the thanks given the Task Force in preparing the report, but wanted to add that a report is just words on paper until someone takes it an does something with it, and that has clearly been happening. Mr. Carl Scribner, former City Director and Commissioner, spoke briefly on the selection process of the water commissioners for the merged system, saying it has to be at least a four to three ratio, that and has strived for a merger or agreement of the two systems for years. The resolution was read. Director Keck made a motion to adopt the resolution, Director Lichty seconded the motion, and with a unanimous voice vote of board members present, the resolution was adopted. 2. ORDINANCE NO. 18,368 — Amending Little Rock, Ark., Ordinance No., 18,171 -A (January 4, 2000); fixing the effective dates for a schedule of rates of the Little Rock Municipal Water Works; establishing the methodology for any necessary increase in such rates during the year 2001; declaring an emergency; and for other purposes. The ordinance was read the first time. The Ordinance was read the first time. The rules were suspended to provide for the second and third readings of the Ordinance by unanimous vote of the Board members present. By unanimous voice vote of board members present, the ordinance and emergency clause was adopted. Director Lichty said he thought this was something historic in his judgment, and the city board should be thanked for their part in it. Director Stewart thanked Mr. Jim Harvey, Chief Executive Officer of little Rock Municipal Waterworks for the assistance he had provided to her and others, and hoped with the merger the this quality of the department and management would not diminish. Director Adcock thanked Mr. Harvey and the water company for assisting herself and Director Wyrick in the unwatered areas of Little Rock. Director Pugh asked where the process is regarding the parking district downtown. Mr. Carpenter, City Attorney answered that meetings were being scheduled to discuss the final details, that two kinds of parking districts was being discussed, and final details should be worked out at that time. 3. ORDINANCE NO. 18,369 — Amending the Little Rock, Arkansas Ordinance ( "LRO ") No. 18,359 (September 26, 2000) to provide that utility easements shall not be used to calculate required land use buffers on developments abutting single family and duplex used or zoned property; declaring an emergency; and for other purposes. The Ordinance was read the first time. The rules were suspended to provide for the second and third readings of the Ordinance by unanimous vote of the Board members present. By unanimous voice vote of members present, the ordinance was adopted. M -1 ORDINANCE NO. 18,370 - Dispensing with competitive bidding and authorizing the City Manager to enter into a contract with Cranford Johnson Robinson Woods, Inc.; declaring an emergency; and for other purposes. The Ordinance was read the first time. The rules were suspended to provide for the second and third readings of the Ordinance by unanimous vote of the Board members present, by unanimous voice vote the ordinance and emergency clause was adopted. A motion was made by Director Adcock to adjourn the meeting, a second was made by Director Keck, and by unanimous voice vote, and the meeting was adjourned at 6:20 PM. ATTEST: CITY CLEAK NANCY WOOD 4 APPROVED: � JAYOR M DAILEY 811