March 20, 1975~~t f
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MINUTES OF A REGULAR MEETING OF THE COUNCIL OF THE CITY OF WEST MEMPHIS,
ARKANSAS, HAD AND HELD ON MARCH 20, 1975•
The City Council of the City of West Memphis, Arkansas, met in a regular
session at its regular meeting place in West Memphis, Arkansas, at 1:30
p.m. on the 20th day of March, 1975•
Rev. Tommie Hinson offered prayer. The following were present:
Mayor Joyce Ferguson, presiding, and Aldermen: R. T. Bentley, R. S. Cosgrove,
-- Thomas Dickerson, D. M. Grimsley, W. L. Harris, J. E. Hightower, A. 0. Holt,
Pritchard Horton, C. D. Hutcherson, and J. C. King; and City Attorney R. L. Smith.
Absent: None.
The following proceedings were had to-wit:
Alderman Holt introduced Mr. Aria Monroe III, Insurance Commissioner,
State of .Arkansas. -
Minutes of Council Meetings of February 6, 20th, 26th were read, motion was
made by Alderman Cosgrove, seconded by Alderman Holt that reading of minutes
be continued until next Council Meeting. Upon vote, the voting was as follows:
Aye: Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Hightower,
Holt, Horton, Hutcherson, and King.
No : None .
Alderman King reported the Committee appointed to investigate purchasing a
pick-up truck for the City Garage recommended truck be purchased, and moved
the Mayor be authorized to advertise for bids. The motion was seconded by
Alderman Harris. Upon vote, the voting was as follows:
Aye: Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Hightower,
Holt, Horton, Hutcherson, and King.
No : None .
Alderman King, seconded by Alderman Holt moved that a City Maintenance Committee
be appointed to check into purchasing of jacks and safety equipment for the City
Garage . Upon vote, the voting was as follows
Aye: Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Hightower,
Holt, Horton, Hutcherson, and King.
No: None.
Mayor Ferguson appointed Alderman King, Chairman of the Committee, other members
to be appointed at a later date.
Alderman Hightower reported on meeting with Superintendent of Schools
Bill M. Kessinger concerning the parking at Wander Elementary School, and
West Memphis High School East Campus.
Mayor Ferguson announced the appointment of the following Committees:
Budget Committee: Alderman Bentley, Chairman, and Aldermen Dickerson, Holt,
and Horton.
Street Committee: Alderman Holt, Chairman, and Aldermen Harris and Grimsley,
Administrative Assistant Gallagher, and Dr. Gilbert Jay.
Proof of Publication from the Evening Times for WorIcnen's Compensation Insurance,
Comprehensive General Liability Insurance, Workmen's Compensation and Comprehensive
General Liability, and Comprehensive Automobile Liability Insurance Bid-notice
published on February 28th and March ?th was presented. The following bids were
received:
Crittend®n Insurance Agency, Inc:
Workmen's Compensation insurance - manual rates with guaranteed cost and a
participating plan wherein you would receive premium discount if the losses are
kept at a minimum.
Comprehensive General Liability insurance, excluding automobiles, 55~ off manual
rates.
Comprehensive Automobile Liability insurance, for a period of one year manual rakes.
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Alderman Hutcherson, secondedby_ Alderman Bentley moved that turn bids over to the
Insurance-Oommittee-fo~ study and awarding of bid. Upon vote, the voting was as
follows:
lye: Aldermen; Bentley, Cosgrove, Dickerson, Grimsley, Harris, Hightower, Holt,
Horton, Hutcherson, and King.
No: None.
Mayor Ferguson announed the next order of business would be hearing on vacating
an unnamed street in accordance with Notice published in the Evening Times on
March 10th and 17th. Attorney Ralph Sloan appeared on behalf of Petitioners, no
one appeared to object to vacating the street.
Alderman Holt introduced an ordinance entitled "An Ordinance Vacating The Unnamed
Street Bounded On The West By Lots 36 And 3? And On The fast By Lots 35 And !~1 Of
Bonds Survey Of Irregular Lots, West Memphis, Arkansas, As Shown By Plat Of Record
In Plat Book 1 At Page 106 And Shown As Lewis Street On The Plat Of Record In Plat
Book 1 At Page 96t1, and City Attorney Smith read the ordinance i.n full.
Alderman Hutcherson, seconded by Alderman Grimsley moved that the first reading
of the ordinance be approved. Upon roll call vote, the voting was as follows:
Aye: Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Hightower, Holt,
Horton, Hutcherson, and King.
No; None.
After explanation by City Attorney Smith of the procedure for vetoe of an ordinance,
Mayor Ferguson advised her reasons for objecting to the abolishing of the Utility
Commission, and her letter of March 8, 1975 was read as follows:
CITY OF WEST MEMPHIS
West Memphis, Arkansas 72301
March 8, 1975
Gentlemen:
The purpose of this letter is to advise each of you that
under the authority vested in me as Mayor by Ark. Stats. Arno. 19-
101lt, I have this date vetoed Ordinance No. 827 of the City of West
Memphis which was adopted on March 6, 19?5, which Ordinance abolished
the West Memphis Utility Commission. The original of this letter
will be filed in the office of the City Clerk of the City of West
Memphis and laid before the next regular meeting of the City Council
of the City of West Memphis as required by law.
It is my sincere feeling and belief that said Ordinance
No. 827 is contrary to the public interest of the City of West
Memphis and not in accordance with the general welfare of the citizens
of West Memphis or the practical and efficient management of the
affairs of our City. I can see no way that the Mayors office and
the City Council can hope to run the daily affairs of each and
every committee, commission, board or agency of the City while con-
tinuing to effectively legislate on general city policy and procedure,
and while trying to respond to the daily wishes and desires of the
people of the City which we must do. Mueh more, I think that in this
particular instance, the City could not undertake to add to its present
obligations, the day to day operation of the largest Board or Com-
mission in the City. It clearly seems that the experience of the
members of the West Memphis Utility Commission is invaluable and
something for which we have no substitute.
We must also remember that the West Memphis Utility cLomuiiss~.un
is presently fighting a rate increase by Arkansas Power and Light
Company before the Federal Power Commission in Washington along with
several other Arkansas cities, and I would not want to feel that
hasty action on our part would do anything to jeopardize our position
in that matter, nor the .position of any other Arkansas City protesting
that rate increase,
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March 8 , 19 75
Page -2-
There is also the fact that the c~cc~_sion to abolish the
West rlemphis Utility Commission was made in one meeting of the City
Council on the emergency clause and without all of the Council
~nemb ers being present to vote, Certainly any decision of this magni-
f~de and importance should be considered only .after ample time has
been afforded for all members of the Council to study the matter
in great depth and every member of the Council given time to discuss
the issue with his constituents and then cast hip vote on the issue,
Anything less would not be representative of all the citizens of
our City on such an important question that would affect all of us.
I am convinced that the peop7_e of West Memphis and the best
interests of our City call upon all of us to~direct our best efforts
toward constructive and not destructive actions, The results of the
efforts of 22 years of hard work and dedication should not be
instantly dismissed by abolishing the very Commission that performs
the work and dedicates the service. The solution does not lie in
the actions that may easily result in allowing our utility system
to become involved in politics and divisiveness which could end with
the doss of the system and its sale to Arkansas Power and Light Co,
Another reason of extreme importance that must be takFn
into eonsidEration is the fact that the City of West Memphis has over
tf~e years issued a considerable amount of Bonds for financing various
improvements to the City which we all benefit from. and enjoy, We
can look with pride and satisfaction at these accomplish*nents and we
want to be progressive enough to strive to continue to improve: these
things together, In order to do a large portion of these things
money was raised for the City by sale of these bonds and I will use
for example Bond Ordinance No, 526 of kTest Alemphis which was passed
in 1967 raising .$2,971,650.00 for the City, These Bonds do~not pay
out until 1989 and there are covenants and promises of the. City in
that Ordinance to the people who bought those Bonds and made the
money available to the City along with the Federal Government grants
which clearly require certain obligations of the City according to
the language contained therein, Twill quote certain provisions
of the Ordinance which appear very significant as follows:
Ordinance ~~526, Section 13 (h},-Page 21 says in part, "The
bonds of this issue shall be specifically-secured by a pledge of all
the revenues required to be passed into the Bond Fund, Said pledge
iz~ favor of the bonds is hereb irrevocabl made accordin to the
terms o t is Or inarce and the Cit an -its o icers and em o ees
S a execute er orn an cart out t e terms t ereo in strict
con oruiit wit t e rovisions o this Ordinance,
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Aiar ch 8 , 19 7 5
Page -3-
Section 24, Page 27 provides in part "The detailed treatment
iven all as cots of the S s tem S stem ~'.evenues and the tinarxcin
t is Ordinance has een rom ted b and is consistent. wit}~, the
~.nter-re ated nature o the e ectric waterworks and sewer taxi ides
in t e Cit and their o erasion as ore s stem and the ictates o
mar eta i ity requirements o S stem Bonds on the most avora e basis,"
Section 25 (b) , Page 28 provides in part - "If the City
defaults in any Bond Fun3 requirement or in the erformance of anv
of the other covenants and conditions set orth in this Ordinance
t e Trustee rna an u on written. re u.est o t e ho ers a not ess
t.an ten ercent 1 o in rinci a amount o t e bonds o f is
issue t en outstandin s a l ro er suit come t e er oz-mance
o~ t o uties o t e o icia s o t1e Cit under t o aws o Ar ansas."
Section 25 (d), Page 29, provides in part "That all rights
cf action under this Ordinance or under any of the bonds secured
hereby, enforceable by the Trustee, may be enforced by it without the
possession of any of the bonds or coL~.pons appertaining thereto,
and a~such suit action or roceedzn institute~_._by the Trustee
shall be brow ht in its name for the uenefit of all the holders of
such or~ds atad cou ons su ' ect to the r. ovis ions o this Ordinance , "
Section 29, Page 34, provides in part - "That.-the provisions
o.f this ~Jrdn-once shall constitute a bindin cor~tYact between the
et and the holder and re ~.stered o~,mers of the outstandin bonds
and cou ons issued hereunder and the Cis will at all times.~strictl
ad~herP to the terms and rovi~ions ereo and ull disc ar e a
o its_ O'6~`li~atons hereunder,
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Section 35 , Page 38, provides in part "Th~~.t~ the reser_L~
e~.:~stin Jest Mem his Utilit Con~ission shall continue in o ice
an s a cont~,nue to ave c gar e o and s a er orm t e ri is ,
ut~.es an o i ations o the Cit un er this Or finance wit re erence
to t e Accom is menu o the im rovements the o erasion an ~ain-
tenance o the S stem and the collection and handlin o S stem
evenues an s a ave t e exercise with re erence to t e S stem
a authors and owers rante b the Cit Council an by a licable
_aws o t e State o Ax ansas,
The foregoing provisions of that Ordinance clearly say that
it is to b e strictly construed, that we have a binding contract
with the Bondholders, that the terms and conditions of the Ordinance
are irrevocable, and that the West Memphis Utility Commission sh~ all
continue to operate the West Memphis Utility SyTstem, I do not want
to find the City in an embarrassing position of a lawsuit by Bondholders
to determine whether or not we have broken our word with them to
strictly abide by the terms of this Ordinance, particularly in view
of the fact that there still remains in excess of $2,000,000,00
unpaid on those bonds. I would also point out that at the time of
this writing I have been contacted by at least one of the Members
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March 8, 1975
Page -4-
of the Council who voted in favor of the Ordinance to abolish the
Com,.nission suggesting that I strongly consider vetoing for some
of the reasons I have given,
For all of t~le~e reusvns I have respectfully vetoed Ordinance
Ivo. 827 in the interest of the City of Jest Memphis ,
Very truly yours,
,'~
J~?1YCE~j~'ER U~OI~1, M or
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~~ After discussion with Mr. Walter Armstrong of UMIC, Inc., pertaining to what
effect the abolishment of the Commission might have upon outstanding utility
revenue bonds, letters from Morris Fair, President of UMIC, Inc., dated
March $th and 20th,:letter from Mr. James A. Buttry of Smith, Williams, Fri day,
Eldredge & Clark., Attorneys At Law, and Memorandum of City Attorney Robert Smith
`dated March 20, 19?5; motion was made by Alderman Bentley, seconded by
Alderman King that override the Mayors vetoe of Ordinance No. 827.
Qualification of Aldermen to operate the Utility Department, savings and unification,
supervision of the Department, obligation of the~Aldermen to the citizens, politics,
and resignation of the Commissioners were .considered during discussion of the
motion. Upon .roll call vote, the voting was as follows:
Aye: Aldermen: Bentley, Cosgrove, Nickerson, Grimsley, Harris, Holt,
Hutcherson, and King.
No: Aldermen: Hightower and Horton.
The motion carried.
Alderman Bentley seconded by Alderman Hutcherson moved for a five minute recess.
Upon vote, the voting was ss follows
Aye: Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Holt,.
Hightower, Horton, Hutcherson, and King.
No : None .
RECESS
Mayor Ferguson called the meeting to order. •
Mr. Cy Bond presented Preliminary Plat of Missouri Improvement Company,
West Memphis Industrial Park lying in the S~, S~ Section 26 and.the .
T~, N~ Section 35, T-6-N, R-B-E. The Council was informed the Planning
Commission dad recommended approval. After discussion with Mr. Bond~and
Mr~. Dozi+~eu~s~ of Guarantor Loan & Real Estate Compar~y, Alderman Bentley seconded
by Alderman Hutcherson moved the Preliminary Plat of Missouri ..Improvement
Company West Memphis Industrial Park be approved. Upon vote,~the voting was
as follows : ~ ~ ~ .
Aye: .Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Holt,
~Hightower,:Horton,. Hutcherson, and King. ~ .
No : None . . .
Final ~ Plat of Fifth Addition To Richland Subdivision hying. in the SE~ of
Section 11, T-6-N, R-B-E was presented by Mr. Cy fond. After discussion of
plans for, utilities, recommendation ofQPlanning Commission on restrictions
and approval of Preliminary P1at,.Alderman Bentley, seconded by Alderman Grimsley
moved the Preliminary Plat of Richland Fifth Addition be. approved. Upon vote,
the voting was as follows:
Aye: Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Holt,
Hightower, Horton, Hutcherson, and King.
No: None.
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Alderman Bentley, seconded by Alderman Grimsley moved Final Plat of
Fifth Addition To Richland Subdivision be approved. Upon vote, the
voting was as follows:
Aye: Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Hightower,
Holt, Horton, Hutcherson, and King.
No: None.
Final Plat of Section 3of Holiday Gardens Dying In The NE~ Of Section ?,
The NWT Of The N1~ of Section 8, T-6-N, R-9-E was presented by Mr. Cy Bond.
After consideration and recommendation of the Planning Commission,
Alderman Dickerson, seconded by Alderman Grimsley moved Final Plat of
Section 3 Holiday Gardens be approved subject to approval of City Engineer
and Engineer for the Utility Department. Upon vote, the voting was as
follows:
Aye: Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Hightower,
Holt, Horton, Hutcherson, and King.
No: None.
Mr. Bob Spivey of Spivey Ambulance Service reviewed operation~~~of the ambulance
service, and discussed with the Council equipment available, response to
calls, and future service.
Mr. Tom Coleman, Executive Director for Urban Renewal Agency, presented
Resolution for consideration of the Council. After discussion with
Mr. Coleman and Engineer Cy Bond, motion was made by Alderman Bentley
seconded by Alderman Horton that adopt Resolution. After further
discussion, Alderman Cosgrove, seconded by Alderman Bentley called for the
question. Upon roll call vote, the voting was as follows:
Aye: Aldermen: Bentley, Cosgrove, ]~ckerson, Grimsley, Harris, Holt,
Horton, Hutcherson, and King.
No: Alderman: Hightower.
The motion carried.
The Resolution was read by City Attorney Smith.
Alderman Cosgrove, seconded by Alderman Grimsley moved the Resolution be
adopted. Upon roll call vote, the voting was as follows:
A,ye: Aldermen: Bentley, Cosgrove, Dickerson, Grimsley, Harris, Holt,
Horton, Hutcherson, and King.
No: Alderman: Rightower.
The :notion carried.
The Resolution read as follows:
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RESOLUTION NO.~~
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WHEREAS, on November 22, 1974, Woodstock~Construction Company,
Inc., a Tennessee Corporation, entered into a contract for street
:improvements, water and sidewalk on Jackson Avenue and Fifteenth
Street with The Urban Renewal Agency of the City of West Memphis,
Arkansas; and
WHEREAS, on or about September 10, 1974, Bond Consulting Engineers
,.
and The Urban Renewal Agency of the City ~of West Memphis, Arkansas,
entered into a contract for engineering services in connection with
said project and furnished completed plans and specifications upon
which the Woodstock - Urban Renewal Contract was based; and
WHEREAS, under the Community Development concept The Urban Renewal
Agency of the City of West Memphis, Arkansas, will no longer be re-
sponsible for contracting such work after July 1, 1975, and the City
Council will deal directly with contractors. and engineers on such
work; and
WHEREAS, it is the desire of the City Council of the City of
West Memphis, Arkansas, and Bond Consulting Engineers to enter into
a contract whereby Bond Consulting Engineers will render certain
t~-chanical and professional services, in connection with the under-
takings of the City by providing plans and specifications for site
improvements on Jackson Avenue between Fifteenth Street and Ditch
No. li at a fee recognized by The Department of Housing and Urban
Development and approved by the Arkansas Society of Professional
Engineers; and
WHEREAS, it is desired by the City Council of the City of West
Memphis, Arkansas, and The Urban Renewal Agency that the contract of
November 22, 1974, with Woodstock Construction Company, Inc. be
assigned to the City of West Memphis, Arkansas, effective July 1,
1975, and extended to cover completion of work on JacksonsAvenue
between Fifteenth Street and Ditch No. 11 on a unit price basis as
provided in said contract; and
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WHEREAS, said contractor is on the site and capable of be-
ginning the work in the most expeditious manner and continue it
on a price most favorable to the City of West Memphis Arkansas.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the
City of West Memphis, Arkansas, that Bond Consulting Engineers be
employed to prepare plans and specifications and supervise the
construction of the Jackson Street Project from Fifteenth Street
to Ditch No. ll; that the City of West Memphis, Arkansas accept
assignment of a contract dated November 22, 1974, between Woodstock
Construction~Company, Inc. and The Urban Renewal Agency of the City
of West Memphis, Arkansas, to the City of West Memphis, Arkansas,
for completion of the Jackson Avenue Project between Fifteen~h
Street and Ditch No. 11 at the unit price provided in said contract
and execute an addendum to the November 22, 1974, agreement between
The Urban Renewal Agency of The City of West Memphis, Arkansas, and
Woodstock Construction Company, Inc. so providing, to be effective
upon approval of the lst year Community Development Program applica-
tion for The City of West Memphis, Arkansas, by The Department of
Housing-and Urban Development.
Cordination of the work on Jackson Street was requested in order to lessen '
traffic congestion..
A Resolution pertaining to the Council Agenda was read by the City Attorney.
• Alderman Dickerson,: seconded by Alderman Grimsley moved to adopt ~y~,~ solution.
After consideration, Alderman~King, seconded by Alderman Grimsley/~to~table until
next meeting: Upon vote, the voting was asfollows: ~~~
Aye: Ald®rmen: Bentley,~Cosgrove, Dicloerson, Grimsley, Harris, Hightower.,
+ Holt, Horton, Hutcherson, and King.
No : None . ~ ..
Alderman Bentley advised he had. withdrawn Amendment to Ordinance No. J~03,
thereupon Alderman Grimsley, seconded by Alderman Holt moved that another
ordinance prepared Amending Orc~.nance ~To. x.03 be considered. Upon roll call .
. vote, the voting was asfollows
Aye: Aldermen: Bentley, Cosgrove, D3..ekerson,~Grimsley, Harris, Hightower, ~ .
Holt., Horton,~Hutcherson, and King. ~ - ,
No : None . ~ .~~
Mr. Dennis Coulee, licensed~electrici.an, brought to the Council's attention
appointment to the Electric Examining Board two electrical contractors.
After discussion of appointments, electrical standards, discrimination, and
ordinance sponsored by the electrical contractors, Alderman Grimsley introduced
an~:~ ordinance amending Ordinance No . ~ x.03, and moved the ordinance be read, the
motion was seconded by Alderman Horton. .
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L.
Vice-Mayor Dickerson announced Electric Inspector William Egbert had suhmi.tted
letter of resignation, and recommended the appointment of Building Inspector
Avery as Acting Electric Inspector. After consideration, Alderman Hutcherson,
seconded by Alderman Bentley moved to approve the appointment. Upon vote, the
voting was as follows:
Aye: Aldermen: Grimsley, Hightower, Holt, Horton, Hutcherson, King, and
Bentley.
No : None .
The Vice-Mayor informed the Council Mayor Ferguson had appointed three additional
Street Committee members City Engineer Brawley, Mr. C. H. Bond, Jr. and
Mr. Bob Lehr. Alderman Grimsley brought to the Council's attention he had resigned
from the Committee.
Alderman Bentley introduced Mrs. John Ray, 203 N. Bond Street, acting spokesman
for a delegation of the Police Department School Crossing Guards, who inquired
as to a policy change as to sick leave and a raise. The matter of policy change
was referred to Chief of Police Harper and the increase in salary to the Budget
Committee.
Alderman Horton requested report on action being taken on out-of-town trucks
using the City's streets constantly that receive no revenue from. Chief Harper
advised had instructed policemen to stop vehicles and inform them to contact
the City Clerk's office for proper license, also requested ruling as to placing
of license or sticker as had to stop to ascertain when inside the vehicle.
City Engineer Brawley reminded the Council of hearing on the water problem to
be held in the Courtroom at 7:30 p.m. on April 8th.
Alderman King inquired as to oil in ditches, and was informed by City Engineer
Brawley and City Attorney Smith they were working on the problem.
Alderman Hutcherson requested a check be made on blind street corners.
There being no further business, the meeting adjourned.
ATTE - ~ ~?
CITY C
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~~ICE-HAYOR
APPRAVED: