Board of Directors

MINUTES BOARD OF DIRECTORS MEETING JUNE 2, 2003, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, June 2, 2003, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Mr. Steve Trusty, and Pledge of Allegiance to the Flag was led by Mayor Bush. Mayor Bush called the meeting to order at 7:00 p.m. 1 Roll Call Roll call was as follows: Present: Directors Peggy Maruthur, Elaine Jones, Burt Newell, Carroll Weatherford, Bill Edwards, Bob Wheeler, and Mike Bush, total 7. 2 Approval of Agenda A motion was made by Director Weatherford, duly seconded by Director Jones, that the agenda be approved. Upon discussion, City Manager Kent Myers advised that Item No. 16 (Proposed Ordinance No. O-03-54 Accepting Certain Streets as Public Streets and Naming Said Streets [Powerhouse Road and Tailrace Road]) should be deleted from the agenda. Mayor Bush then called for a vote on the motion to approve the agenda, as amended; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of May 19, 2003 Board Meeting A motion was made by Director Edwards, duly seconded by Director Maruthur, that the minutes of the May 19, 2003 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests No guests were present for recognition. CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (May 21, 2003). 6 Proposed Resolution No. R-03-132 Approving Certain Bid Awards (a) Generator - Utilities [awarded to Edwards Electric in the amount of $15,962.40]; (b) Road Bores - Utilities [annual supply contract awarded to R. L. Wyles Construction]; (c) Aggregates - Utilities [annual supply contract awarded to Spa City and BB&B Construction]; (d) Sulphur Dioxide - Utilities [annual supply contract awarded to Harcros]; (e) Seals and Bearings - Utilities [annual supply contract awarded to Fluid Sealing Solutions]; and (f) Personal Computers - Fire Department [awarded to Gateway in the amount of $18,122]. 7 Proposed Resolution No. R-03-133 Approving a Certain Street Name (Summer Court). 8 Proposed Resolution No. R-03-134 Authorizing the Filing of a Grant Application with the State Aeronautics Department for Reimbursement of Funds to Repair Runway 13/31 at the Airport. 9 Proposed Resolution No. R-03-135 Approving a Cost-Sharing Agreement between the City of Hot Springs, Arkansas, and Centerpoint Energy/Arkla Related to the Construction of the Utility Line Replacements on Central Avenue. A motion was made by Director Wheeler, duly seconded by Director Maruthur, that the Consent Agenda be approved; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Board of Directors Meeting 2 June 2, 2003 at 7:00 P.M.  NEW BUSINESS 10 Proposed Resolution No. R-03-136 A resolution entitled, “A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE LEASE ADDENDUM NO. 1 WITH ROCKABOKA, LTD. (REDUCING LEASEHOLD PROPERTY AT THE AIRPORT),” was taken from the agenda and read by title only. A motion was made by Director Wheeler, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Airport Director George Downie advised that according to a legal opinion from the City Attorney’s Office, this is a termination of a portion of the lease agreement; therefore, Mr. Allison Still, president of Rockaboka, should also go by the 90-day termination clause. If he wishes to give up a portion of his lease, then he should notify the City 90 days in advance, which he has done. Mr. Downie stated it will not become effective until August 1, 2003, which change will be made in the Lease Addendum. City Manager Kent Myers pointed out that the motion would include approving Lease Addendum No. 1 with the 90-day clause added and changing the effective date to August 1, 2003. In response to Director Weatherford, Mr. Downie advised that Mr. Still is giving up .63 acres of the southeast corner quadrant of the leasehold, which has an access from the service road leading into the northeast corner of the Airport. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 11 Proposed Resolution No. R-03-137 Board of Directors Meeting 3 June 2, 2003 at 7:00 P.M.  A resolution entitled, “A RESOLUTION AWARDING A CONTRACT TO JOHNSTON ENGINEERING, INC. FOR THE CONSTRUCTION OF COMPOST FACILITY IMPROVEMENTS,” was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Wheeler, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, advised that the compost facility improvements include the roof structure, the aeration system for the new aerated static pile method that will be used, and also the bio-filter that will take care of the odor problems at this facility. Johnston Engineering, from Russellville, was the low bid in the amount of $359,000. He reported that the project engineer, Mr. Clyde Burnett with Carter and Burgess Engineering, has reviewed the contractor’s references and recommends awarding the contract to the low bidder. Once the contract has been approved, the engineer will conduct a pre- construction meeting with the contractor and give them notice to proceed. He stated that the funds are budgeted in the 2003 Capital Improvements for compost facility; and at this time, there is a total of $617,207 remaining in that account. Director Weatherford pointed out that this company is approximately $100,000 under the next lowest bidder. Mr. Cochran replied that the engineer, Mr. Clyde Burnett, contacted Mr. Johnston and reviewed the bid he had submitted line item by line item. According to Mr. Burnett, he has included all items the City has requested. With that and his references checking out, staff did not have a choice but to award the bid to the lowest bidder. Director Weatherford asked if there is a possibility he will be returning to the City requesting additional funds, and Mr. Cochran advised there is no information that would give the City justification to deny the contractor the bid. Director Maruthur asked what would guarantee the City’s position in the agreement if the smell continues, and Mr. Cochran advised there is no agreement with the contractor to remove the odors. He added that the contractor is constructing what the engineer has designed; and the method that will be used (aerated static pile method, along with the bio- filter) is the best and most cost-effective method found for the removal of odors. Director Maruthur commented if the bidder meets the specifications after the fact, then it is not his problem. Mr. Cochran replied that is an issue the City will need to take up with the design engineer, not the contractor. Also, in response to Director Maruthur, Mr. Cochran advised that he has bid this project with the City’s specifications for $359,000. Therefore, once Mr. Johnston signs the contract, he is obligated to construct it to the City’s standards and the Board of Directors Meeting 4 June 2, 2003 at 7:00 P.M. way the engineer designed it for that amount of money. He added that he cannot return at a later date requesting more money to finish what he bid. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 12 Proposed Resolution No. R-03-138 A resolution entitled, “A RESOLUTION AWARDING A CONTRACT TO NRS ENGINEERING FOR THE WATER AND WASTEWATER MASTER PLAN,” was taken from the agenda and read by title only. A motion was made by Director Maruthur, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Deputy City Manager Lance Hudnell pointed out that the resolution needed to be amended by adding “water and wastewater master plan” in the title of the resolution and in the body of the resolution A motion was made by Director Newell, duly seconded by Director Wheeler, to delete the word “sewer” and replace with “water and wastewater”; and upon voice vote, the motion unanimously carried. Mr. Don Cochran, Director of Utilities, advised that on February 21, the Utilities Engineering Selection Committee conducted interviews for the water and wastewater master plan with NRS Engineering, Garver Engineering, McClelland Engineering, Crist Engineers, and Carter and Burgess Engineers. These companies were selected through the Request for Proposals process, and NRS Engineering had the highest score. The project will include various tasks that will be involved with the master plan (20-year growth projections for the utilities service area, hydraulic analysis of the existing water and sewer systems, forecasting revenue projections, evaluation of the Lakeside Water Treatment Facility and its role in meeting future water demands, feasibility of pipe line interconnections with neighboring water systems, and recommendations for improving the City’s ISO rating). He said this project will be a two-phased approach, extending over a two-year period. He added that the contractor’s projection is that it will take him 12 months to complete this phase starting in June. The total Board of Directors Meeting 5 June 2, 2003 at 7:00 P.M. cost of the project is $144,750; and the Utilities Department has budgeted $100,000 this year for this project. City Manager Kent Myers added this the first sewer master plan for the City. He noted this is an important study due to the growth of the service area. Mayor Bush then called for a vote on the motion to adopt, as amended; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted, as amended. 13 Proposed Resolution No. R-03-139 A resolution entitled, “A RESOLUTION APPROVING AN APPLICATION FOR A TEMPORARY EMERGENCY DWELLING UNIT AT 209 TENNESSEE STREET PURSUANT TO ORDINANCE NO. 4948,” was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Edwards, that the resolution be adopted as read. Upon discussion, Mr. Jerry Raetz, Planning and Development Director, advised that the Steve Polston family had a fire at their residence located at 209 Tennessee Street. They are requesting emergency, temporary relief from the Board to locate a motor home at this location for a period not to exceed six months until their plans can be formalized as to how to reconstruct or place a manufactured home at their present home site. Mr. Steve Polston appeared before the Board stating he has 32-foot motor home to place at this location until he has approval to place a manufactured home or build a home. Director Edwards asked if he had the motor home at this location, and Mr. Polston said that he has moved it to a park at the present time. City Manager Kent Myers questioned if he had a photo or description of the motor home, and Mr. Polston replied that it is a 1975 model but is in good condition and sleeps six people. City Manager Kent Myers asked if there has been any notification of the neighbors, and Mr. Raetz advised there is no notification procedure required. Board of Directors Meeting 6 June 2, 2003 at 7:00 P.M.  Director Jones asked if he could place a manufactured home across the street, and Mr. Raetz explained that directly across the street is a manufactured home overlay district. He advised this is one of the steps the Polston family is looking to pursue, which would be to extend that manufactured home overlay district across the street to include their property. Presently, there are two other manufactured homes on their side of the block and should be very little opposition to that request, if any at all. Director Jones asked if notice has to be given for a change in the overlay district, and Mr. Raetz advised that the City will notify everyone within 200 feet when he comes to that application. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 14 Proposed Ordinance No. O-03-52 An ordinance entitled, “AN ORDINANCE CALLING A SPECIAL ELECTION IN THE CITY OF HOT SPRINGS, ARKANSAS, ON THE QUESTION OF ISSUING INDUSTRIAL DEVELOPMENT REVENUE BONDS FOR THE PURPOSE OF FINANCING THE COST OF CERTAIN INDUSTRIAL FACILITIES; PRESCRIBING OTHER MATTERS PERTAINING THERETO; AND DECLARING AN EMERGENCY,” was taken from the agenda for consideration. A motion was made by Director Wheeler, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Jones, duly seconded by Director Wheeler, that the ordinance be passed as read. Upon discussion, Director Jones commented that the City will not be responsible for any funding. Mr. Jay Chesshir, President of the Garland County Economic Development Corporation, stressed that the City has no obligation; and there are no tax dollars involved in this project. He advised this is an expansion project that has been in the works for about two years, and Magic Springs is proposing a suspended looping roller coaster for the 2004 season. Board of Directors Meeting 7 June 2, 2003 at 7:00 P.M. He commented this roller coaster, in other locations, typically represents an additional 50,000 to 100,000 people coming to the facility. He said it is a world-class roller coaster that will provide approximately $6 million of annual economic revenue to the City as far as its impact. He then gave a description of the roller coaster. He emphasized that the company will be responsible for all payments, and the citizens will be voting to allow them the opportunity to utilize this bond financing for this project. City Manager Kent Myers advised that a revised ordinance from the bond attorney was received on Friday afternoon. He then reviewed the wording changes. In Section 2, he noted that the word “permanent” has been added so that the financing will not be used for any refinancing of the existing bond issue. The words “bond guaranty fees” have been added to allow the bond guaranty fees to be paid out of the proceeds of the bonds. Mr. Chesshir added that this bond issue is guaranteed by the Arkansas Department of Economic Development and the Arkansas Development Finance Authority. City Manager Kent Myers also noted that the following sentence has been added: “such permanent financing will include the repayment of interim financing in the principal amount of $1 million, plus accrued interest, for certain improvements now in operation.” Mr. Chesshir reported that this refers to the financing Magic Springs has utilized to put in the new amphitheater, which is the newest attraction for 2003. This interim financing will become permanent with the bond issue and that is where the $1 million has already been spent and will be permanently financed through the bond issue. City Manager Kent Myers expressed appreciation to Mr. Steve Arrison, Ms. Sandy Nomey, Governor Mike Huckabee, and Mr. Jay Chesshir for their work on this project. Director Weatherford pointed out that Magic Springs is paying for the costs for this special election. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. City Attorney David White then read the emergency clause; and upon motion of Director Weatherford, duly seconded by Director Wheeler, that the emergency clause be passed; and upon voice vote, the motion unanimously carried. Whereupon the emergency clause was declared passed. 15 Proposed Ordinance No. O-03-53 Board of Directors Meeting 8 June 2, 2003 at 7:00 P.M.  An ordinance entitled, “AN ORDINANCE AMENDING ORDINANCE NO. 4531 (PURCHASING ORDINANCE) BY ADDING CONSULTANTS (SYSTEM VULNERABILITY AND EMERGENCY DEVELOPMENT) TO PROFESSIONAL SERVICES; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Wheeler, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Wheeler, duly seconded by Director Weatherford, that the ordinance be passed as read. Upon discussion, City Manager Kent Myers explained that under the provision of homeland security, the City is required to do an assessment of its water and sewer systems. Cities across the country are following the same requirements and are hiring consultants to provide the vulnerability study. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 16 Proposed Ordinance No. O-03-54 (Deleted from Agenda) Accepting Certain Streets as Public Streets and Naming Said Streets (Powerhouse Road and Tailrace Road); and for Other Purposes. 17 Proposed Ordinance No. O-03-55 An ordinance entitled, “AN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PROCUREMENT OF MATERIALS AND REPAIR OF STOKES CREEK SEWER LIFT STATION; CERTIFYING EMERGENCY ACTIONS BY THE CITY MANAGER; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the first time by title only; and upon Board of Directors Meeting 9 June 2, 2003 at 7:00 P.M. voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Wheeler, duly seconded by Director Weatherford, that the ordinance be passed as read Upon discussion, Mr. Don Cochran, Director of Utilities, advised that on May 17, 2003, Stokes Creek Lift Station was struck by lightning, resulting in damage to two pumps. With Stokes Creek being a major lift station, the staff had to make emergency repairs and asked the City Manager to allow the staff to make these emergency purchases (approximately $22,000). The money will come from the lift stations operations budget. He stated the work has already been done and the money spent. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. City Attorney David White then read the emergency clause. A motion was made by Director Weatherford, duly seconded by Director Wheeler, that the emergency clause be passed; and upon voice vote, the motion unanimously carried. Whereupon the emergency clause was declared passed. 18 Proposed Ordinance No. O-03-56 An ordinance entitled, “AN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE RELOCATION AND INSTALLATION OF SECURITY FENCING AT THE AIRPORT AND FOR THE PROCUREMENT OF RENTAL EQUIPMENT (LARGE COMPACTOR); CERTIFYING EMERGENCY ACTIONS BY THE CITY MANAGER; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Wheeler, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Edwards, duly seconded by Director Maruthur, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. City Attorney David White then read the emergency clause. A motion was made by Director Jones, duly seconded by Director Edwards, that the emergency clause be Board of Directors Meeting 10 June 2, 2003 at 7:00 P.M. passed; and upon voice vote, the motion unanimously carried. Whereupon the emergency clause was declared passed. OTHER BUSINESS 19 Board of Directors Items Director Jones announced that on Saturday, June 7, at 1 p.m., the Pleasant Street Neighborhood will have a meeting and requested that all of the residents and church members attend. On Monday, June 23, District 2 will have its bus tour. Anyone who has an item to be discussed, may give her a call. Director Maruthur reported that the account at Regions Bank (Account No. 81-45-23- 0306) for Paul Anthony Nagey is still open, and he needs extensive rehabilitation and will need a prosthesis. She also distributed information from an LEPC meeting, which is from the Department of Emergency Management, regarding an all-hazard preparedness for government, business and industry and notes there is no imminent terrorism threat to Arkansas. She expressed appreciation to the Utilities Department for its excellent work in the waterline replacements downtown. She said she has received many calls regarding the work and the assistance given to people traveling in the downtown area. She stated that the employees have been courteous, and businesses and individuals have contacted her acknowledging the professionalism of the employees. Director Edwards commented that people holding garage sales are now placing their signs on sticks and boxes but do not remove them. He stated those individuals will be cited if they do not remove them up in a timely manner. Director Maruthur recognized Janet Heath, Deputy City Clerk, who began working June 1, 1967. Director Wheeler announced that the Miss Arkansas Pageant will be held on June 15 through June 21 at the Hot Springs Civic and Convention Center. Anyone interested in tickets may contact the Chamber of Commerce. 20 City Manager’s Report City Manager Kent Myers gave the following report: Board of Directors Meeting 11 June 2, 2003 at 7:00 P.M.  1. Two weeks from tonight, the Board will be considering 15 condemnations and also a conditional use permit appeal on Park Avenue. At the first meeting in July, there will be the utility specifications and the final consideration of the Bath Street crossing. 2. On Thursday, there will be a groundbreaking on a project that has been a partnership between the State, City and GCEDC, which is the first project at the Office and Technology Park located off the MLK Expressway by McLeod Street. This is a project developed several years ago; however, there has not been any development activity during the last several years; and GCEDC has agreed to finance a spec building. A breakfast meeting will be at 7:30 a.m. and then be onsite at 9 a.m. Mayor Bush requested that City Attorney David White explain emergency clauses. City Attorney David White advised that it is found in Amendment 7 to the Constitution, which requires three separate readings on three distinct days; but the Board suspends the rules as allowed by Arkansas law and reads by title only. The effect of the emergency clause is to put an ordinance into effect immediately. He advised that the three ordinances passed tonight, with the emergency clauses, are in effect at the present time. At the last session, the Arkansas Municipal League cleared up some confusion as to when ordinances become effective. He stated there is now a statutory amendment, which provides that it is the date provided for in the local ordinance for the referendum, which in the City’s case is 30 days. As a general rule, the ordinances that the Board passes do not go into effect for 30 days, which allows people sufficient time to garner a petition and hold an election on it if they want to have a referendum. With an emergency clause, it goes into effect immediately; but the people still have 30 days to repeal it if they so desire. City Manager Kent Myers commented that staff tries to take a conservative approach regarding emergency ordinances; and, normally, there are not any ordinances that have emergency clauses. However, at times it becomes impossible to conduct City business without declaring an emergency to put it in place immediately. City Manager Kent Myers announced that the Music Festival started today and will continue for the next two weeks. The Youth Center will be the location for one of the major musical productions. 21 ADJOURNMENT Board of Directors Meeting 12 June 2, 2003 at 7:00 P.M.  There being no further business to come before the Board, the meeting adjourned at 7:50 p.m., to meet again on Monday, June 16, 2003, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor L NOTE: After adjournment, an unidentified individual appeared before the Board and distributed information regarding regional transit trading partnerships. No action was taken by the Board. Board of Directors Meeting 13 June 2, 2003 at 7:00 P.M.