Board of Directors

MINUTES BOARD OF DIRECTORS MEETING JULY 21, 2003, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, July 21, 2003, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Dr. Walker Loyd, 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 Wheeler, duly seconded by Director Edwards, that the agenda be approved. Upon discussion, Director Maruthur requested that Item No. 18 (Special Public Safety Report dated July 9, 2003, Regarding Construction of a Traffic Island at Mountain Valley and Circle Drive) be moved to the first item under New Business. 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 July 7, 2003 Board Meeting A motion was made by Director Weatherford, duly seconded by Director Maruthur, that the minutes of the July 7, 2003 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Director Maruthur recognized Mr. Leonard Crisp, an inventor, who resides on Circle Drive. Ms. Margaret Crisp said that her husband is a retired, aeronautical engineer having worked with Aerospace for many years and has been an inventor for 54 years. He retired to Australia and developed a different taxation systems, which was presented at the World Trade Center on October 1, 1999; and this is being considered by the Australian government. Mr. Leonard Crisp advised that he is proposing an elevated, scenic highway, which would solve some of the problems in the northern park of the City. He spoke of community elements that they do not have in north Hot Springs, such as schools, parks, and other conveniences. He added there are no developments in north Hot Springs, and his property is devaluing everyday. He suggested getting a referendum to pay for the elevated highway, which would be less costly than cutting through the side of hills. He pointed out that this road would go over all of the intersections with no traffic lights. 5 Acknowledgment of Financial Statements for April 2003 Mayor Bush announced that the Financial Statements for April 2003 are available in the City Treasurer=s Office for review by the Board and the public. CONSENT AGENDA The Consent Agenda consisted of the following: 6 Public Safety Report (July 9, 2003). 7 Proposed Resolution No. R-03-174 Approving Certain Bid Awards (a) Lime - Utilities [annual supply contract awarded to Arkansas Lime]; (b) Janitorial - Airport, Parks, Police, Public Works, Sanitation, and 349 Malvern [annual supply contract awarded to O J=s Two, Service Master, Dow, and Elliott]; (c) Compost Grinding - Utilities [annual supply contract awarded to Saline Crushing]; (d) Long Distance Phone Service - All Departments [annual supply contract awarded to SBC]; (e) HVAC Noncomprehensive - All Departments [annual supply contract awarded to S&H Air Conditioning and Heating]; and (f) Utility Pumps - Board of Directors Meeting 2 July 21, 2003, at 7:00 P.M.  Utilities [awarded to BT Environmental, Inc. in the amount of $7,130; Instrument and Supply, Inc. in the amount of $26,482; and Jack Tyler in the amount of $5,128]. 8 Proposed Resolution No. R-03-175 Accepting a Grant from the Arkansas State Aeronautics Commission for Reimbursement of Costs Associated with the Runway 13/31 Painting Project at the Hot Springs Municipal Airport. 9 Proposed Resolution No. R-03-176 Accepting a Grant from the Arkansas State Aeronautics Commission for Reimbursement of Costs Associated with the Preparation of the Grant Application for the Air 21 Grant at the Hot Springs Municipal Airport. 10 Proposed Resolution No. R-03-177 Accepting a Grant from the Arkansas Forestry Commission for an Urban Forestry Technician. 11 Proposed Resolution No. R-03-178 Authorizing the Filing of a Grant Application with the Department of Justice Pursuant to the Local Law Enforcement Block Grant Program. 12 Proposed Resolution No. R-03-179 Awarding a Contract to NABCO M&E Contractors, Inc. for Installation of Ductwork at the Arkansas School for Mathematics and Sciences; and Appropriating Funds Related Thereto. 13 Proposed Resolution No. R-03-180 Fixing a Date for a Hearing on a Petition to Vacate, Abandon and Close a Portion of Abbott=s Drive. A motion was made by Director Jones, duly seconded by Director Maruthur, that the Consent Agenda be approved; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Board of Directors Meeting 3 July 21, 2003, at 7:00 P.M.  NEW BUSINESS 18 Special Public Safety Report Regarding Construction of a Traffic Island at Mountain Valley and Circle Drive (July 9, 2003) A motion was made by Director Wheeler, duly seconded by Director Jones, that the Special Public Safety Report regarding construction of a traffic island at Mountain Valley and Circle Drive be approved. Upon discussion, Ms. Suzanne Tucker spoke in support of the traffic island. She stated that in 1999, a group of residents on Circle Drive and Conway formed a POA; and three of them donated approximately $2,000. She said all residents were invited to join the POA ($5 yearly fee), and approximately 75 percent of the residents are members. She mentioned that in June 2002, there was a general meeting at her home; and she personally placed invitations in everyone=s mailbox. She reported that at that time, Director Maruthur provided a diagram of a proposed traffic island at the intersection of Mountain Valley and Circle Drive, and the street is 58 feet wide. She reported they purchased an aluminum light pole, and the island will be low lying with ivy. She asked that the Board approve this request. Director Edwards questioned who was invited to the meeting, and Ms. Tucker advised that she placed invitations in everyone=s mailbox on Circle Drive and Conway. She added that approximately 80 percent of the residents attended (5 residences on Conway and 17 or 18 residences on Circle Drive). She said the proposal was submitted, and it was approved unanimously by those present. Director Edwards reported that several residents who called him stated they were not aware of the meeting. Ms. Tucker reiterated that she placed an invitation in every mailbox on those streets. Mr. John Burford, 132 Circle Drive, presented a call list of Circle Drive and Conway Terrace residents. He requested that these be destroyed since they have names and addresses listed. He stated a petition is attached which requests that the Board deny this request to install the traffic island. He mentioned there are 22 residences, and at least one person in 18 homes signed this petition opposing the traffic island. He noted that the residents at 134 Circle Drive did not sign because they are out of town and are his neighbors, but both of them oppose this island. Also, Fred and Louise Dierks were out of town, but he faxed the petition to them; and they signed it. He pointed out that this petition has been signed by 29 residents of Circle Drive and Conway Terrace out of 49 who are on the call list, which is approximately 70 percent of the residents on those two streets. Regarding the meeting that Ms. Tucker addressed, he said he did not receive an invitation to this meeting; and Board of Directors Meeting 4 July 21, 2003, at 7:00 P.M. there are at least two other families in the neighborhood who did not receive an invitation. He stated since he did not attend the meeting, the rest of the information is what he is hearing from seven people he talked with who did attend. Of the people who were invited, he understood there were about 18 who attended. When the vote was taken, he understood that either five or six people voted for this. Therefore, basically five or six people voted for 40 people. He pointed out before the island is constructed, it is 44 feet from corner to corner on Circle Drive; and a fire truck coming off Mountain Valley has 44 feet to turn up Circle Drive and get to his house. However, if this island is constructed, they have 14 feet. Director Edwards asked if he witnessed the residents sign the petition, and Mr. Burford said that he personally took this petition to every house and watched every person sign. Ms. Carol Strange, 126 Circle Drive, president of the POA of Circle Drive, stated that the petition did not come to her house. She mentioned that last June, there was a POA meeting at Dr. Tucker=s home, and there are some residents of Circle Drive and Conway Terrace who are not members of the POA. She has a list of people who attended that meeting, and there were at least 30 people in attendance. They discussed an entryway to their street to beautify the area and have the funds to do it. She stated if a fire truck needed to drive up on the entryway, it could since there will be only some ivy and an antique light post, which they have already purchased. She said it was unanimous decision at the meeting to proceed. Also, it was her understanding that the Fire and Police Departments have agreed and looked at the area and reported it is safe. Director Edwards questioned the charges for upkeep, and Ms. Strange advised there will only be a little greenery; also, they already have the light post. She added there are residents on Circle Drive who will take care of whatever they have on it. Director Newell emphasized that 70 percent of the people do not want it. Ms. Strange said she was not aware of that and expressed concern regarding what they were told in the petition. Director Newell questioned if she wanted the Board to support it when 70 percent of the neighbors do not want it. Ms. Strange replied that she does not know what they were told and could have possibly been told that a fire truck could not get around it. However, it was her understanding that is not true. She added that she is not sure 70 percent of the neighbors do not want it. Director Weatherford pointed out that the petition was self-explanatory what they were signing. Board of Directors Meeting 5 July 21, 2003, at 7:00 P.M.  Director Maruthur advised this request was considered by Public Safety and passed unanimously at a POA meeting. She said to her knowledge everyone received a notice; and there were several renderings of the original island, which first went into Circle Drive. She stated that the latest one covers a span of 57 feet; and the regulation standards for streets require 24 feet, which is 12 feet for each lane. The entry to Circle Drive measured 57 feet at the very opening, which is 282 feet each. Subtracting the eight feet, that would be a graduated pod green space or spot, which will have a curb that can be driven over with a car and will not create any obstruction. She noted that the diameter of the light is 82 inches. She explained that the green space came about because of some public safety concerns and provides a clear division between the incoming and outgoing traffic, which requires a left turn. She mentioned with the installation of this light, the utility pole, which obstructs or limits the visibility to make a left-hand turn, will be eliminated. Also, the light that the POA purchased is a double light and will address the concerns of residents in the neighborhood, which was discussed at the POA meeting. She explained this was delayed in order to satisfy all safety concerns. Also, she had the Fire Department do a run and asked that Fire Chief Arval Sanders give a report. Fire Chief Arval Sanders reported that as far as the area is concerned, the response of the Fire Department would possibly be delayed a second to whatever it takes to turn the corner. He advised they have areas they get into that are just as close, such as the condos on the lake where they have a gated entrance or something similar. Director Edwards asked if a few more feet would be to their advantage, and Fire Chief Arval Sanders responded that he could not argue with that. Director Maruthur pointed out that the only obstruction would be 82 inches, and they can go over the curb and the ivy; but it does not obstruct anything. She reported that she worked with the Fire Chief in 1993 over another response issue. She said she has never compromised safety, and this is a safety issue. She mentioned the problem coming out of Circle Drive, and they had to put a double line on the entry of Circle Drive for safety reasons. She stated she does not feel it would be in the best interest to disclose all of the safety features that will be provided for the neighborhood. She pointed out there is also another entry onto Circle Drive. Police Chief Gary Ashcraft stated that their vehicles are much smaller than the fire trucks, and a 14-foot lane would not slow them down anymore than it would normally to turn this almost 90- degree turn. He said it would not affect them enough to say they would be affected in any manner. Director Weatherford questioned the concerns of the neighborhood, and Director Maruthur said there have been some safety concerns. Director Weatherford asked what the concerns are, and Director Maruthur replied that it is a monitoring visibility. She said this has been discussed with the Board of Directors Meeting 6 July 21, 2003, at 7:00 P.M. Fire Chief, Police Chief, and the POA; and Public Safety recommended passage. She spoke to Mr. Burford on the phone; and his concern was regarding the stone or rock, which was the original plan for this. It was an extensive island that protruded into Circle Drive, but it does not exist. She said this is a pod of ivy with an 82 inch light pole, which will serve the neighborhood. Also, it will create an entrance and provide division between the oncoming and outgoing traffic and many other things. She said some of the issues that Mr. Burford shared with her did not exist. She pointed out this was a unanimous vote, and it was not done immediately to make sure all safety concerns were addressed. She stressed they will not have a compromised safety issue as far as fire protection. Director Newell pointed out that despite the fact it was apparently unanimous when it was taken, it is obvious that it is not now. He suggested tabling this for two weeks and give the neighbors an opportunity to meet. He added that he would like to support it, but he has a concern if 70 percent do not want it. He stressed that the neighborhood should decide on it, and he has a problem voting for or against it. Director Maruthur said she was told by one neighbor that another neighbor supported it and actually offered to take care of this island. She stated she saw their name on the petition and believes some people got scared when they were told this would slow down response time. She stressed that she does not want to table this issue and wants the Board to vote on it. Mayor Bush then called for a vote on the motion to approve the request for the traffic island; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, and Wheeler, total 3. Voting Ano@: Directors Newell, Weatherford, Edwards, and Bush, total 4; motion failed. 14 Presentation on Hot Springs Regional Park Parks Director Jean Wallace gave a power point presentation on the Hot Springs Regional Park and expressed appreciation to Kirby Williams Communications and Mr. Michael Patterson. She noted there are approximately 482 acres of land for sale off Shady Grove Road and is located near Garvan Woodland Gardens, Carpenter Dam Park, Entergy Park, and the proposed Pro Bass Hall of Fame. The property is contiguous to the City limits; and if the City builds the park, it can immediately be annexed into the City. The City has spoken with Entergy about the possibility of cutting a new access road from Highway 128 over into the property, which would help the traffic flow pattern. Regarding the pastureland, she said the Humphrey Dairy itself is not for sale. If the City buys and develops the land, the family has indicated a desire to carry on with the dairy by leasing other pasture lands. There are over 280 acres of pasture land, 1-3/4 miles of lake frontage, and plus or minus 250 acres of rolling, wooded hills on the property in addition to approximately 55 acres of river bluffs. Board of Directors Meeting 7 July 21, 2003, at 7:00 P.M. According to the conceptual plan, for the first couple of phases of development, there will be 42 miles of hiking and biking trails, one mile of lakeside boardwalk trail, five lighted soccer fields, eight lighted game fields, multi-use practice game fields would have no lights and would be in the pastureland area; and in this multi-use practice field area, there will be 11 soccer fields (regulation size), a series of micro-soccer fields (about 25 or 30), 7 softball fields, 33 picnic sites, 7 pavilions, 4 playgrounds, and 3 concession areas to include restrooms, gardens, fishing, a courtesy dock, wildlife observation, and room for future development areas. She gave background information on the planning of this park, which began 15 years ago with the Vision in Action Task Force identifying the need for a stand-alone Parks and Recreation Department and a Comprehensive Master Plan for the City, and then a Parks and Recreation Master Plan stand-alone. A needs assessment was conducted by the University of Arkansas Recreation Program; and in 2000, a Parks Recreation Open Space Master Plan was developed. She commented on a summary of the following priority items: (1) hiking and biking trails; (2) neighborhood parks; (3) soccer fields; (4) softball fields; (5) sports park, and (6) completion of the Hot Springs Greenway. Five of the top six priorities from this needs plan could be addressed by the building of Hot Springs Regional Park. She pointed out the benefits of parks and recreation to the community. She also spoke of the positive, economic impact of the ball and soccer tournaments held in the City. She presented a drawing of the conceptual plan and set out the time line to vote in the Special Election on August 26. If this passes, in October 2003, the sales and use tax becomes effective and starts to accumulate. In early 2004, she anticipates closing on the property; and then early to mid-2004, construction planning begins. Early to mid-2005, construction begins; and early to mid-2006, Phase I should open, which will be many of the fields. The proposal before the Board is a temporary sales tax proposal (3/8 of one percent) for seven years. The sales tax revenue based on 2002 sales tax receipts will be $23,288,614. The cost for acquisition is $3.3 million; development $13.9 million; for operations and maintenance over five years, the short-term operations and maintenance will be from the tax proceeds, but the long-term operations and maintenance will come from Park revenue, which is $1.1 million; existing parks improvements at $5 million, which will be capital improvements to the existing parks to bring them up to the quality standard for a total of $13.3 million. On a $10-purchase, an individual would be paying an additional .0375 cents on the $10, which would be 4 cents on the $10. It is capped at a $2,500 purchase and would be an additional $9.38 on a $2,500 purchase. She stated that most of the parks were built in the 1970s and have not had any capital improvements since that time. She explained that the special election needs to be held at this time because the property was under option for one year. When that option ran out, the family extended the option for six months without any extra money; and it has been off the market for 18 months. The contract that was negotiated on July 7, which was the date the City=s option was to expire, had a time line on it of August 31 that the City needs to be able to have the funding if it is going to buy the park. She advised that at the present time, there have been several endorsements - Hot Springs Parks and Recreation Advisory Committee, Hot Springs Friends of the Parks, Chamber of Commerce City/County Government Committee, and the Hot Springs Boys= and Girls= Club. Board of Directors Meeting 8 July 21, 2003, at 7:00 P.M. 15 Proposed Resolution No. R-03-181 A resolution entitled, AA RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A REAL ESTATE CONTRACT WITH HUMPHREY=S DAIRY FARM, INC.,@ was taken from the agenda and read by title only. A motion was made by Director Wheeler, duly seconded by Director Weatherford, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers explained that the agreement has a total purchase price of $3.3 million. Originally the asking price was $4.5 million. The City had an appraisal done by Mr. Ralph Biles, which established a value of $3.1 million. In that appraisal report, Mr. Biles did not establish any value for the timber on the property. The Humphrey Family felt that the timber had some significant value; therefore, they hired a timber appraisal firm and established a value of approximately $400,000. Through negotiations, they agreed to accept one-half of that timber value. By adding $200,000 to the $3.1 million in the original appraisal is how an agreement was reached on the $3.3 million purchase price. The property would close around the first quarter of next year. In order to close, the City would need to get some short-term financing (3-5 years) because the tax will not be generated and will not have the $3.3 million by that time. This project, including the purchase and development of the Humphrey Dairy, does not involve any long-term debt on behalf of the City. Director Edwards pointed out that no action will be taken tonight except to set a date for this issue to be placed on the ballot to be voted on by the electors. City Manager Kent Myers added that the real estate contract stipulates that a public vote will be necessary; and if that vote passes, then the City can close on the property. Mr. Lance Albaugh commented that he is not opposed to this issue going to an election and is not against parks. However, due to the economy, this is not a good time to submit this issue. He pointed out that the legislature is considering what action to take regarding Arkansas state schools. They are also discussing raising the sales tax. Also, another concern is if the economy worsens, the City will receive less revenue. When the seven years ends, he questioned if the City will be able to remove the tax and still be able to support the project. If this passes, he urged the Board to annex this area into the City. Mr. A.M. Crawford, 212 Cypress, urged the Board to vote against this issue. He stated that he is on a fixed income; and it will cost him over the next seven years. He commented there are many people on fixed incomes who cannot afford to pay taxes on something that most of them will not use. Board of Directors Meeting 9 July 21, 2003, at 7:00 P.M.  He said the City needs more things than a park. He stated that District 2 does not have sewer in some areas or water pipes large enough to install fire plugs; there are streets without curbs and gutters and storm drains; and there is a large flood plain problem that needs to be corrected. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 16 Proposed Ordinance No. O-03-63 An ordinance entitled, AAN ORDINANCE PROVIDING FOR THE LEVY OF A 3/8 OF ONE PERCENT (3/8%) SALES AND USE TAX WITHIN THE CITY OF HOT SPRINGS, ARKANSAS; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO,@ was taken from the agenda for consideration. A motion was made by Director Wheeler, duly seconded by Director Weatherford, 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 AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Wheeler, that the ordinance be passed as read. Upon discussion, City Manager Kent Myers read two sentences from the ordinance, which states that the sales and use tax shall expire on December 31, 2010; and the ordinance shall not take effect until an election is held on the question of levying the sales and use tax and a majority of the electors voting on the question shall have approved the levy of the sales and use tax. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 17 Proposed Ordinance No. O-03-64 An ordinance entitled, AAN ORDINANCE CALLING A SPECIAL ELECTION IN THE CITY OF HOT SPRINGS, ARKANSAS, ON THE QUESTION OF LEVYING 3/8THS OF ONE PERCENT SALES AND USE TAX WITHIN THE CITY OF HOT SPRINGS, ARKANSAS; DEFINING THE TERM ASINGLE TRANSACTION@; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO,@ was taken from the agenda for consideration. Board of Directors Meeting 10 July 21, 2003, at 7:00 P.M.  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 AShall the ordinance be passed as read?@ and upon motion of Director Edwards, duly seconded by Director Weatherford, that the ordinance be passed as read. Upon discussion, Mr. Kirby Williams, Chairman of the Parks and Recreation Advisory Committee, commented that in seven years, there will be over $6 million of improvements completed to all of the City parks. This will provide the City with an unprecedented quality of life improvement and a new economic development engine that is significant as Magic Springs or the Civic Center. City Manager Kent Myers commended Parks and Recreation Director Jean Wallace on her presentation. Also, if the Board approves this ordinance, City staff is available for any presentations. Staff=s goal between now and August 26 is to inform the public as much as possible about this issue. A list of frequently asked questions has been compiled, and anyone interested may contact his office or Parks and Recreation. He said there will also be some tours of the property. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. Mayor Bush announced that a request has been made to deviate from the agenda and consider agenda Item No. 23. A motion was made by Director Maruthur, duly seconded by Director Wheeler, to consider Item No. 23; and upon voice vote, the motion unanimously carried. 23 Proposed Ordinance No. O-03-62 An ordinance entitled, AAN ORDINANCE ADOPTING A WATER AND WASTEWATER ENGINEERING AND CONSTRUCTION STANDARDS AND SPECIFICATIONS CODE FOR THE CITY OF HOT SPRINGS, ARKANSAS; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Weatherford, 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 Board of Directors Meeting 11 July 21, 2003, at 7:00 P.M. the question AShall 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, Director Edwards questioned if all of the questions have been answered that by those in engineering and construction. Mr. Don Cochran, Director of Utilities, advised that to the best of his knowledge, the City has worked very closely with Mr. Ray Owen, Jr. City staff addressed all of their concerns and questions and believe those have been addressed to their satisfaction. The only outstanding issue is the size of the manhole opening, but he did not believe it is a strong issue for them at this time. He said staff recommends adopting the Code. He stated that the creation of the standards and specifications provides for a more cost-effective operation by limiting inventory stock of repair or replacement materials, as well as providing the Utilities Department with quality control measures for new construction. The practice of utilizing standards and specifications increases the life cycle of the utility infrastructure and will decrease over a period of time the need for repairs, maintenance, and eventually capital improvement programs. The long-range benefit is that by reducing the operations cost, it will allow the Utility Department to hold down or avoid raising water rates in the future. This document addresses the pipes, valves, and construction materials that are maintained by the City. He stressed that this only addresses the materials that the City=s Water and Sewer Department maintain, not what the plumbers would install in a household. The development of the water and wastewater engineering standards has been a collected effort from the Utility management staff, including the superintendents over water, lift stations, and sewer collections. He recognized the efforts of Mr. Steve Mallett, Utilities Engineering Manager, and Ms. Doris Elder, Utilities secretary, who spent many hours in compiling this document and addressing the issues that were brought forward and making changes as his department went through this process. There have been several public meetings with local engineers, contractors, and developers, making some changes and modifications to this document. To the best of his knowledge, the City has answered and satisfied every issue or concern they have brought to his attention. Included in the Board packet are letters from the Arkansas Health Department, the Arkansas Department of Environmental Quality, and the Hot Springs Fire Department voicing their support of this manual. He added this document has been shared with other cities, and other cities in Arkansas are looking at using this manual as a guideline. Mr. Ray Owen, Jr., 110 Leigh Circle, stated that the engineers, developers, plumbing contractors, and suppliers, whom he represents, have looked at this very closely. There was a work session held with the Board, and there are some issues they wish could have been different; but it appears to be in acceptable form. Part of it will have to be determined upon how it works in the field. He commented that a document of this magnitude will probably need to have some corrections made as they begin working with this. They would anticipate those corrections and changes to be brought before the Board at the appropriate time. He commended the staff for working with him and his Board of Directors Meeting 12 July 21, 2003, at 7:00 P.M. clients. He said there is some concern about the size of the manholes; and there are 12,000 manholes now that have a smaller ring and entryway than is proposed under the new one and understands that safety is a concern. Director Edwards expressed appreciation to Mr. Owen, his clients, and City staff in preparing this document. Mr. Ted Berhenn, 264 Lake Harbor, said he was before the Board several weeks ago regarding a controversy over the depth of a water meter and was informed that the Health Code did not apply. However, tonight it indicates that the Health Department does apply to it. He stated that he had no objection overall to the ordinance. Regarding the enforcement, several months a new sewer line was installed behind a piece of property he owns; and he questioned the engineering logic of putting in a six-inch line, which is what was specified. Also, he took exception to the requirements for compaction and pointed out the percentage set out by the Arkansas State Highway and Transportation Department. He also spoke in opposition to sections of the Code concerning backfill, screen size, meters, use of torque wrenches, and specifications regarding concrete mix. There being no further discussion, Mayor Bush called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 19 Request from Ms. Patricia Frese Regarding the El Rancho Motel Ms. Patricia Frese, representing eight businesses and nine homeowners in the area of Central, Hobson, Belding and Oakcliff, spoke of drug dealers, prostitution, and gangs in the neighborhood. She asked that the City assist in closing the El Rancho Motel, which is the center for the drug action and other activities that occur in that area. Also, she said there are problems with roaches and rats from the alley from their exposed garbage. She requested the City assist in getting the motel closed. City Manager Kent Myers said he mentioned to Ms. Frese when she contacted him several weeks ago, that the City is currently looking at a new nuisance abatement program modeled after the City of North Little Rock, which will have representatives in town next week to meet with City staff, Board Members, and other interested citizens. They have created a very effective means to handle businesses that become a public nuisance. He advised that the Police Chief has been meeting with the City Attorney staff reviewing ways the City can more effectively deal with this type of business. He stated that in terms of the number of police calls, there are certain businesses that generate more calls than the El Rancho Motel. Board of Directors Meeting 13 July 21, 2003, at 7:00 P.M. 20 Proposed Resolution No. R-03-182 A resolution entitled, AA RESOLUTION ACKNOWLEDGING THE REVIEW OF THE 2002 COMPREHENSIVE ANNUAL FINANCIAL (AUDIT) REPORT,@ 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. Gary Welch, with Jordan, Woosley, Crone and Keaton, reviewed the 2002 Comprehensive Annual Financial (audit) Report. He stated that the City received the Certificate of Financial Reporting Excellence for the ninth consecutive year. He said there are four basic sections in the report (introductory, financial, statistical, and single audit section). He stated their primary purposes as auditors is to perform the annual audit and express an opinion on the financial statements and how they are presented. If any Director or city official wants a specific item clarified, they may contact the firm. He then read their opinion on the financial statements and then reviewed the City=s Statement of Net Assets. The total assets of the City are $263 million less liabilities of $76 million or $187 million. He clarified that this includes capital equipment and improvements. He explained the Statement of Activities, which included the total primary government expenses or costs of providing the government activities and business-type activities noting that the City had an excess revenue in 2002 of $8.7 million. In General Fund, the City budgeted to spend General Fund reserves of $965,000. The budget to actual did not spend that much; therefore, the Reserve maintained the higher level; and the City had a favorable budget comparison to $432,000. The Water Fund also had a favorable budget to actual comparison of $391,000. The City budgeted an excess revenue of $427,000 and experienced an excess revenue of $818,000. Regarding the Sewer Fund, there was a budget gain of $125,000. Under Sanitation, this was actually budgeted to have excess expenditures over revenue of $754,000; but expenses came under budget with a better result by $200,000. For two consecutive years, the City has received in excess of $6 million in federal grant funds. In 2002, most of that grant revenue was for the downtown parking facility; and in 2001, most of the revenue was for the ice storm recovery. He highlighted the two years (2001 and 2002) and stated that the revenues had a moderate increase of $1.9 million on $56 million, and the expenses had a similar increase of $1.6 million on $47 million in total, citywide expenditures. In both years, the City was able to increase the net assets in excess of $8 million. The best example of increasing the net assets is the parking facility because that is adding assets to the City while receiving money from a separate source. Regarding the budget activities for 2002, the City received $830,000 less overall citywide. The spending controls more than overcame that so the budget deficit on the final budget of $1.3 million, which was primarily in the General Fund and Sanitation Fund, actually came out with a positive. Regarding the balance sheet, overall net assets increased $8.7 million; however, that is not Board of Directors Meeting 14 July 21, 2003, at 7:00 P.M. all cash. In General Fund, Unreserved Fund Balance, even though the City budgeted it to drop more than $488,000, it dropped $488,000 to $3.8 million. He expressed appreciation to City management and Finance Department for their assistance. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 21 Proposed Resolution No. R-03-172 A resolution entitled, AA RESOLUTION APPROVING THE REIMBURSEMENT TO SECOND BAPTIST CHURCH FOR RELOCATION AND UPSIZING OF A SEWER LIFT STATION (HIGHWAY 70 EAST),@ 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, Mr. Don Cochran, Director of Utilities, reported that the Utilities Department has received a request for reimbursement from Mr. Russell Kennedy, representing Second Baptist Church on Highway 70 East. The reimbursement is related to the relocation of a sewer line and upsizing the modifications of the new sewer lift station, which was constructed by the church. Staff recommends the reimbursement of $22,952.33, which was negotiated with the church through a meeting with the Utility staff, City Manager and Mr. Kennedy. He added that modifications were needed and requested by the City to accommodate existing sewer customers in that area. At the time of construction, no arrangements were made between the City and Second Baptist Church to reimburse the church for those expenses; and the church is now requesting that reimbursement. He said he agreed that the City asked for these modifications and agreed on the price. The money is budgeted in the Lift Station Capital Improvement Program for 2003. Director Edwards questioned if originally the church installed its own system. Mr. Cochran explained that the church was extending the sewer line, and a new lift station had to be installed to accommodate their church. During the construction, it was decided through the City, that to accommodate Hubbard Farms that was already a sewer customer in that area, the City would eliminate the pump station for Hubbard Farms and tie them into the lift station the church was installing. However, to accommodate Hubbard Farms, the City had to ask the church to make modifications to its lift stations. Board of Directors Meeting 15 July 21, 2003, at 7:00 P.M.  Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Newell, Weatherford, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 22 Proposed Resolution No. R-03-183 A resolution entitled, AA RESOLUTION AUTHORIZING A CONTRACT WITH MARCO CONSTRUCTION FOR THE CONSTRUCTION OF TRANSIT VEHICLE STORAGE AND OPERATIONS BUILDING,@ 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, Deputy City Manager Lance Hudnell showed a drawing of the transit vehicle storage and operations building. Mr. Gary Ryles, with B&F Engineering, stated they have analyzed the bids received and recommend awarding the contract to Marco Construction. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Newell, Weatherford, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 24 Proposed Ordinance No. O-03-65 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING AND AUTHORIZING AN AGREEMENT WITH INFOWORKS FOR CERTAIN COMPUTER HARDWARE UPGRADES AND RELATED MAINTENANCE; 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 AShall the ordinance be passed as read?@ and upon motion of Director Wheeler, duly seconded by Director Maruthur, that the ordinance be passed as read. In reply to Director Edwards, Police Chief Gary Ashcraft advised this is the main computer that covers the Police Department and the Fire Department only. It is seven years old and is not compatible with the new software that is to be installed on the computer. He explained that the Board of Directors Meeting 16 July 21, 2003, at 7:00 P.M. reason for waiving competitive bidding is due to the fact that InfoWorks will keep the present service contract, and their bid has come in lower. He added it is covered in their budget for this year. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 25 Board of Directors Items Director Jones announced that on Saturday, at 4 p.m., July 26, at Immanuel Christian Fellowship Church, 1536 East Grand, P.H.O.E.B.E. Uzuric Project will gather photographs and document the African-American Experience in Jones Town, which is called Tweedle Town. On Saturday, July 26, at 6 p.m., Immanuel Christian Fellowship Church, Mr. Marcus Phillips and Mr. Junius Stevenson will be present for a video taped question and answer session; and starting at 4 p.m. with AHistory is in Our Hands@; a 5:30 p.m. reception will be sponsored by the Spa Chapter Business and Professional Women and will end at 6 p.m. with a command performance. She said that the P.H.O.E.B.E. Uzuric Project and its board hope this event will educate, enlighten, and engage the community in the preservation, protection and promotion of the African-American Experience in Hot Springs. This was submitted by Ms. Cheryl Batts, Executive Director. Regarding Ms. Sheila Beavers, she is scheduled to have surgery in Little Rock on Friday and asked for prayers for her and her family. Director Edwards commended the brushhog crew for its work throughout the City. Director Maruthur reminded the Board and the public of the fund that has been set up at Regions Bank for Paul Anthony Nagey (Account No. 81-45-23-0306), who is in need of major rehabilitation and some prosthesis. If there are any questions, she may be contacted at 624-1965. 26 City Manager=s Report City Manager Kent Myers gave the following report: Board of Directors Meeting 17 July 21, 2003, at 7:00 P.M.  1. There will be a District 3 tour on Monday, July 28, at 12 noon, hosted by Director Burt Newell. If any residents of that area have any concerns or problem areas in District 3, they may contact his office. 2. There will be a tour of the new County Courts Building immediately prior to the agenda meeting next Tuesday, July 29, at 3 p.m., which will be occupied within the next 30 days. 3. There will be a presentation by the City of North Little Rock on its nuisance abatement program scheduled for Thursday, July 31, at noon, Transportation Depot. This is primarily intended for City staff and Board Members; but the public is welcome to attend. 4. He reported that Mr. Mike McKinnon, Public Information Assistant, has submitted his resignation and accepted an invitation to the University of Leeds, England Institute for Communications Studies. He will be joining their Master=s Program in International Communications and will be leaving the City on Friday, September 5. 27 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 9:10 p.m., to meet again on Monday, August 4, 2003, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 18 July 21, 2003, at 7:00 P.M.