CITY OF EUREKA SPRINGS

CITY COUNCIL MEETING MINUTES

AUGUST 27, 1996

Mayor Barbara OHarris was absent. Alderwoman Seratt made the motion that Alderman Jeftrey act as Mayor Pro Tern. Alderwoman Watson seconded. All were in favor, 5/0/0. Alderman Jeffrey called the regularly scheduled meeting to order at 9 a. m. on Tuesday, August 27, 1996, in the Western District Courthouse.

PRESENT:

Aldermen David Jeffrey, Chris Riker, and Bill Rubley; Alderwomen Jan

Watson, Kim Dickens, and Sheila Seratt.

ALSO PRESENT:

Elizabeth Huff, Les Huff, David Mc Neal, Bill Wilson, Jack Moyer, Joe

Gunnels, K. K. Kendrick, Richard Smith, Steve Beachum, Jay Miner, Don

Young and Clerk Lee.

PLEDGE OF ALLEGIANCE:

Mr. Young led in the Pledge of Allegiance.

APPROVAL OF THE AGENDA:

Alderwoman Seratt made the motion to approve the agenda. Alderwoman

Watson seconded. All were in favor, 6/0/0.

APPROVAL OF THE MINUTES:

Alderman Rubley made the motion to approve the minutes. Alderwoman Seratt seconded. Alderman Riker found a typo on the first page at the bottom. Alderman Rubley made the motion to approve the minutes as amended. Alderman Seratt seconded. All were in favor, 6/0/0.

OLD BUSINESS:

1. Ordinance #1716, Re-zoning of Block 7, Lots 1 & 5, Pines Subdivision, Leslie and Elizabeth Huff, (2nd reading):

Alderwoman Seratt made the motion to place Ordinance #1716 on its second reading by title only. Alderwoman Watson seconded. By roll the vote was 6/0/0.

Mr. Young read the ordinance by title only.

Alderman Rubley made the motion to approve. Alderwoman Watson seconded the motion.

In discussion, Alderwoman Dickens said that she had spoken with Mrs. Huff at length, and that she also had done a little research, and it was her understanding that Mrs. Huff still had to get signatures of 51% of the people who live in the subdivision. She asked, why the Council was voting on it, before that was done. Mr. Miner said that the Council can pass this and the rest of the steps that she has to take are up to her. She has gotten the support of the Planning Commission, and she is asking for the support of the Council. He said the Covenants will still take care of themselves. Mr. Rubley said that he assumned that at some time the City is going to adopt a master plan and a land use plan. When that is done, there could be restrictions on the plan that we adopt. He said that he felt that if the ordinance was passed it would only mean that the Council believes that the commercial zoning is the best use of the land. What happens beyond that is up to the other parties.

Mrs. Huff spoke about the restrictive covenants, and cited #12 and #13, in which Joyce Harvey said that the covenants would be binding for twenty years, and successive years after, unless an instrument has been signed and filed by the majority of the covenant holders to change something in the covenants. Most subdivisions form a homeowners association and pay dues and when things go wrong they have a method of redress to follow. Officially she moved out of the Pines Subdivision and filed a petition with 84% of the people in the subdivision in 1992. No one has ever wanted to buy the property for residential use and the property has been for sale for a long time.

CITY OF EUREKA SPRINGS

CITY COUNCIL MEETING MINUTES

AUGUST 27, 1996

Mr. Bud Clark spoke in favor of the re-zoning. Mr. Roy Rothell spoke in favor. Mr. and Mrs. Evans spoke in favor of the re-zoning. These people all live around and close to the lots owned by the Huffs. Mr. and Mrs. Evans said that they moved from their property which is next door to the Huffs. They said that daytime traffic is quite heavy most of the time, but it was the night traffic that drove them away. They said it has gotten really noisy. Tyson runs chicken trucks to Springdale all night long.

By roll call, the vote was Alderwoman Seratt, no, and Alderman Jeffrey, abstained for conflict of interest, and the rest voted yes, 4/1/1.

Alderman Rubley made the motion to suspend the rules and place Ordinance #1716 on its third in final reading by title only. Alderman Riker seconded. By roll call, the vote was 5/1/0, to read, with Alderwomari Seratt voting no.

Mr. Young read the ordinance by title only.

Alderwoman Watson made the motion to approve. Alderman Riker seconded. The roll call vote was 4/1/1, with Alderwoman Seratt voting no, and Alderman Jeffrey abstaining. Ordinance #1716 passed on its third and final reading.

NEW BUSINESS:

1. Ordinance #1719, Amending Ordinance #1707, Establishing a time limit and for loading zones n front of Hotels. (First reading).

Mr. Miner had not written the ordinance yet. Alderwoman Watson made the motion to postpone. Alderwoman Seratt seconded. Mr. Miner said that time limits were already set in Ordinance #1707, and he did not see the necessity of another ordinance. No action was taken.

2. Group Tour Franchise, Joe Gunnels; also Item 7, Policy on Franchise

Payments:

Mr. Miner said that the policy is stated in the ordinance, that there will be only four franchise holders in the City of Eureka Springs. It is on a first come, first serve basis. The City Clerk said that the Council voted on any other franchise, and she assumed that their vote was also needed for this one.

Alderman Rubley made the motion to approve Mr. Gunnels application for a Group Tour Franchise. Alderwoman Watson seconded. All were in favor!

6/0/0.

3. Carroll/Boone Water District Agreement with the Grassy Knob Volunteer Fire Association, Alex Haynes: Alderwoman Seratt made the motion to authorize the Mayor to sign the agreement. Alderwoman Watson seconded. All were in favor, 6/0/0.

4. Proposed Parking Garage/Lot at 1st St. near Grand Central Hotel, Bill Wilson, and Richard Smith:

5. Ordinance #1720, Re-zone Lots 1,2,3,4,5, and part of Lot 6 of Block

179, Riley and Armstrong Survey from R-1 Victorian to C-i Victorian, Bill Wilson and Richard Smith, First Reading:

Ordinance #1720 has not been written as of yet. The Planning Commission has given their approval on the project, and a public hearing was held. Mr. Wilson said that he and Mr. Smith would like a consensus from the Council of how they feel about the project before they spent $1500 for an artist’s rendering. He said if the Council is really opposed to the building of this, then there would be no use to even spend the money for the plan.

He said they want to either buy the property owned by the City which borders theirs, or trade it for two restrooms that will be included in the plans for the parking garage. Mr. Wilson stressed their willingness to make the project attractive, since he and Mr. Smith live here too. They are not interested in building an ugly project. He also said that an ordinance probably couldn’t be drawn up before next council meeting because their attorney is tied up with a trial right now.

CITY OF EUREKA SPRINGS

CITY COUNCIL MEETING MINUTES

AUGUST 27, 1996

Mr. Wilson said they can’t access their property without the 14 ft. wide strip that the City owns. Also, there is an 8 ft. by 54 ft. alley between lots 4 and 5 that would have to be vacated in order for them to do the project. In addition to that, they would need permission to access across Basin Spring Street, which adjoins the property, and has never been developed. The vehicles will go up one way and out the other way. Mayor Pro Tern Jeffrey asked if all of this will be included in the ordinance, and was assured that it would.

Alderman Rubley made the motion that the Council take a 10-15 minute break, since the press was already there, to walk down First Street and look at the property in question, and get a first hand idea of what Mr. Smith and Mr. Wilson want to do. Alderman Riker seconded. Everyone was in favor of this idea, except Alderwoman Seratt, who had already seen the property. The meeting was recessed at 9:40.

Everyone went to view the site, and check out the idea first hand. The garage would be one parking space deep on the first level, and two parking spaces deep on the second level. The large trees that border the property at the back would not be touched. Planters and planting areas would be built to make the area attractive and the building would be faced with material in keeping with the town. The parking area would not interfere with the view from the residences behind it.

The Meeting was reconvened at 9:57 a.m.

Alderwoman Seratt asked what would happen if they hit solid rock. Mr. Wilson said he is sure that they will hit some. He said there is an excavator in Berryville, who can remove it. He said there would be no blasting of any kind. Mr. Pinkley even has several good methods of rock removal without it. Mr. Wilson said that if it got too costly they would like to build just 42 spaces across the bottom of the property. They are sure there is lots of rock there but they won’t be sure how much until excavation is in progress. They would not just dump the project.

Mayor Pro Tern Jeffrey asked if the Council has any resistance to trading the City property for restrooms. Nobody seemed opposed.

Mr. Wilson said that he and Mr. Smith had looked at doing this for about two years. It is something that has been needed for a long time. They believe in Eureka Springs. He will try to have the Architect’s rendering by the September 3rd agenda-setting meeting.

6. 1% Sales tax Request, Parks and Recreation, Mr. Beachum, and

8. Ordinance #1721, 1% Sales Tax, Ms. Watson:

Mr. Beachum was not present to discuss the Parks & Recreation’s 1% sales tax at the beginning of the discussion. The language of the ordinance is calling for a special election because we are asking for an election. It will be on the ballot for the November Election. Ordinance #1722 will be to place this on the ballot.

Alderwoman Seratt made the motion to place Ordinance #1721 on its first reading in its entirety. Alderwoman Watson seconded. The vote, by voice vote, was 6/0/0.

Mr. Young read the ordinance in its entirety.

~Alderwoman Watson made the motion to approve. Alderwoman Dickens seconded. Under discussion, on page 2, personable property needed to be changed to personal property. Also, the ordinance should have a sunset clause because it is only for four years.

Alderman Rubley said that he questioned lumping all four together. Alderwoman Watson said that she felt that it benefits the four major areas where the City has to give them money. She said that the City is constantly depleting reserves to do the things that need to be done. This would benefit all four; Transit, Parks and Recreation, Auditorium, and the Parking Authority, and everyone would help pay for what is needed, not just the people who live here.

CITY OF EUREKA SPRINGS

CITY COUNCIL MEETING MINUTES

AUGUST 27, 1996

Alderwoman Dickens said that all of the people on these commissions need to get busy and work to make people understand what they want to use the money for. She said that they need visual aides, so that people can see where the money would go.

Mayor Pro Tern Jeffrey said that he would be willing to read the ordinance a second time but not the third today. Alderman Rubley agreed.

The ordinance was passed on the first reading, 6/0/0.

Alderwoman Watson made the motion to suspend the rules and place Ordinance #1721 on its second reading by title only. Alderwoman Seratt seconded. The vote was 5/1/0, with Alderman Rubley casting the negative vote.

Mr. Young read the ordinance by title only.

Alderwoman Watson made the motion to approve. Alderwoman Seratt seconded. The vote was 5/1/0, with Alderman Rubley casting the negative vote. The ordinance was passed on its second reading.

Ordinance #1722, Which calls for an election to place the one cent sales tax on the ballot in November was then brought to the Council for consideration. Alderwoman Seratt made the motion to place Ordinance #1722 on its first reading by its entirety. Alderwoman seconded. All were in favor to read, 6/0/0.

Mr. Young read the ordinance in its entirety.

Alderwoman Seratt made the motion to approve. Alderwoman Watson seconded.

Alderman Rubley asked who prepared the ordinances and Mr. Miner said Shep Russell. After some discussion, the Council said they should be discussing this ordinance at an agenda setting meeting. Alderman Riker made the motion to postpone the vote on Ordinance #1722 until the next Council meeting which is Tuesday, September 10th, and to discuss at the September 3rd Agenda-Setting Meeting. Alderman Watson seconded. All were in favor to postpone, 6/0/0.

6. One % Sales Tax Request, Parks and Recreation, Mr. Beachum:

Mr. Beachum said that the Parks and Recreation had voted to and were going to go ahead with their plan to ask for a one cent sales tax, which if it had been in effect would have brought them $326,000 last year. He said that their budget for the year last year was $40,000. The idea is to ask that a 1% tax be levied on restaurants and lodging. The Municipal League had told them that they need to ask for 1% instead of the 1/2 % they were originally going to ask for because that is what the State Statute requires. Shep Russell, the tax Council, had faxed the ordinances that the council used, but there was some question as to whether the one he did for the Parks and Recreation could be used for their 1% request. Mr. Beachum said he sees quite a difference between taxes levied on restaurants and lodging and taxes levied on general sales. Also, there is some question whether Lake Leatherwood is considered to be in the City limits, rather than a city property. Mr. Beachum said that the Parks Commission is constantly being asked for services that they can’t perform, because of their lack of funds.

Alderwoman Dickens asked if the commission has a Master Plan. Mr. Beachum said that the commission has worked with the University of Arkansas for the last year and have a General Master Plan. Alderwoman Watson asked who would collect the money. Mr. Beachum said that the commission would prefer that the City would collect the money, and be payed a percentage for that collection, and the City would turn over the money to the commission. The commission would have control how the money was spent within the guidelines of the statute itself. There are limitations on what the commission could do, however, they could, use the money for maintenance, construction, development, and programming. It could not be used for a Director’s salary.

Alderman Watson voiced her concern that it would defeat the purpose of what the City is trying to do. She said the whole idea of the 1% tax was to take some of the pressure off of the City when these departments need money from the City. Mr. Beauchamp responded that Parks and

CITY OF EUREKA SPRINGS

CITY COUNCIL MEETING MINUTES

AUGUST 27, 1996

Recreation Commission has usually received the least amount of money of any of the Commissions. Mr. Beachum also said that their tax would be the same as the Statute that set up the C.A.P.C. tax, and it would not have a sunset clause. Both taxes could be rolled back if the citizens wanted to vote the roll back. He said that if the Parks Commission built a center or. a building, and then the tax money stopped, it would leave the commission without the means to maintain the building, and that is why there is no sunset clause intended. They will check with the state and continue to work with Mr. Miner.

Police Department: Request to hire Shelly Jacobs under the COPS grant:

Alderman Rubley asked how much the grant was, which was approximately $15,000. He then asked if she was being hired for $3000 more than that and the answer was yes. He said for housekeeping purposes, this should be taken care of in the budget, since it was an unbudgeted expense. Mr. Young said it would come out of the General Fund and $3000 would be added to the budget.

Alderman Rubley made the motion to hire Shelly Jacobs under the COPS Grant Program, and that she will be paid $18,000 effective September 9th,1996. Alderwoman Dickens seconded. All were in favor, 6/0/0. Alderman Rubley made the motion to amend the police salary budget to include the $3000. Then the Council realized that $3000 is an annual figure. Mr. Rubley withdrew his motion. Mr. Young will check into what needs to be done.

Alderwoman Seratt gave her opinion on the way that Paula Stitz firing was handled. Alderwoman Watson followed suit.

City Attorney Jay Miner had been looking up statutes. He said that the gross receipts tax statutes that the Parks Commission wants to gain their sales tax under says that if that 1% sales tax is passed, it comes into a fund. It does not go to the Parks Commission. The disbursements will be made by the Mayor upon the approval of the City Council.

Alderwoman Dickens made the motion to adjourn. Alderwoman Watson seconded. All were in favor, 6/0/0. The meeting was adjourned at 10:50 a.m.