Board of Directors

MINUTES BOARD OF DIRECTORS MEETING MARCH 1, 2004, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, March 1, 2004, at 7:00 p.m., Hot Springs Civic and Convention Center, Wheeler Room, with Mayor Mike Bush presiding. The invocation was given by Ms. Sonya Chittum, and Pledge of Allegiance to the Flag was led by Mayor Bush.  CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (February 19, 2004). 6 Proposed Resolution No. R-04-44 Approving Certain Bid Awards (Vehicles - Fire Department awarded to Landers Ford in the amount of $22,270 for pickup and $25,161 for SUV). Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 6. Absent and not voting: Director Brunner-Maruthur; motion unanimously carried. City Manager Kent Myers announced there has been a request to move Item No. 16 (Proposed Ordinance No. O-04-14 An Ordinance to Rezone to C-3, Office/Neighborhood Commercial to Include a Parcel of Real Property, Located at 523 Orange Street, Zoned R- 4, Medium/High Density Residential) to the first item under New Business. There were no objections from the Board. NEW BUSINESS 16 Proposed Ordinance No. O-04-14 basketball court needs to be resurfaced. He mentioned that the water fountain is in the restroom and should be located outside. Also, there is only one electric plug for the entire park. He said that he has talked with Parks and Recreation regarding this issue, but no action has been taken. He commented that the playground equipment has been there for 20 or 30 years, and there are only three pieces of equipment for all of the children in the area. Also, the lights have been out for 20 years. He pointed out that the other parks are more up-to-date than Wade Street Park. He requested that the Board take Wade Street Park under consideration and upgrade the park. Director Edwards stated that in regard to the lights, at one time there was Apay-as- you-play@ tennis at night and an arrangement with Entergy. He said that he has a swing set to give to the park if he could get some help in moving it, and Mr. Smith said that he would be able to help.  Ms. Sara Smith said she supplies the park with playground equipment from her daycare, as well as other people in their community. She stated they do this every year and take it out of their budget. She commented the City needs to upgrade the park for the children who live in the area. She stated that the only light they have is the three lights from the daycare. Director Edwards mentioned that about three years ago. he looked at their lighting situation; and two lights were installed near the daycare center. Director Jones pointed out that the employees did not receive a raise this year; but in the midyear budget, she will make an effort to find the money for some of the upgrades. She suggested that they form an association, which is the first step and get all of the residents who are willing to attend the meeting and pay dues. When they come to the be allowed for time pays for people who are financially challenged. Over three years, there have been over $7,000 in promissory notes signed by residents to get their animals out of the animal shelter custody. Approximately 90 percent of the people do not make their payments, and some are two or three years old. It now becomes a problem for the Finance Department to try to turn over to collection. Director Jones questioned if the City could drop the $7,000; and Mr. Bugg replied that is left to the Board=s discretion. City Manager Kent Myers explained that the City has a contract with a collection agency and turn many of these accounts over for collection. Mr. Bugg replied that quite a few of the two-year old ones have been turned over to the collection agency but does not know what the success rate has been. He added a meeting was held with the collection agency earlier this year, and the City has a large amount of outstanding old debt owed to it. Bill=s property at 1530 Albert Pike. In 1992, there was a rezoning of this area; and the north 100 feet of this property was left in such a manner that the north 50 feet was left residential (R-4); and the next 50 feet was zoned to C-TR, Commercial Transitional. The applicant is presently making an application concerning this 100 feet to leave a 30-foot wide strip of R-4 property at the north edge of the property and a 30-foot wide strip of C-TR and to extend the C-2 (the remaining 40 feet toward the north). There are several conditions placed upon the C-TR, which is a type of zoning that can be regulated exactly how it will be utilized and how it is going to be defined. This area will be defined with an eight-foot privacy fence on the three sides that abut R-4 property; there will be a planting of Russian Olives and Red Top Photenias on the north edge of this in the R-4 area. The C- TR area will be blacktopped or hard surfaced paved. It will be striped with a line delineating the C-2 to the C-TR. The C-TR can be utilized for employee parking only. There will be a $5,000 performance bond filed with the City within 24 hours of the passage line, the less he or his renter can see. As far as his property line, he is 100 percent for it and believes it will do nothing but enhance it. He said he has never had a renter complain about the noise at night. He commented that when he is in his yard, he has heard more noise from 270 West with the diesel trucks and motorcycles. He added that he believes this rezoning is good for his property and for the community. Mr. Philip Kastner, 130 Knollwood Lodge Road, stated he attended the last meeting of the Planning Commission; and there were questions regarding Mr. Elliott not complying. He commented if Mr. Elliott says he is going to build a fence and plant shrubs and help the community buffer it better than it presently is, he believes he will. Director Edwards asked if Mr. Elliott had put in a buffer zone, and Mr. Kastner replied that he has. He added there is a large amount of tall cane in the back left corner investigated at the time of the complaint. The complaint was lodged that the C-TR area, which was zoned in1992, was once again supposed to be used for employee parking only. The complaint did state it was being used for general business purposes. Mr. Elliott just referred to the fact that in the rezoning ordinance in 1992, it did not mention there had to be a fence there and was not necessary to mention that in that particular ordinance because it specifically stated in the Zoning Code, in effect in 1992, there would to be a six- foot barrier in a C-TR zone and a residential zone. Mr. Raetz advised that his office did write him a notice of complaint. Ms. Martha Blackwell, 120 North Mission, said this has been ongoing for 12 years; and Mr. Elliott has never complied with the original rezoning issues. She said there was only the small portion of the vegetation planted. In one place, there is no bamboo at all on Mr. Elliott=s property. There was 62 feet where he had some vegetation but did not have what Mr. Elliott hired them to do. She said she did not know when it was cut, but it has been cut in the last week. Director Weatherford asked who told her that Mr. Elliott cut it; and Ms. Blackwell said when vegetation has been cut off these properties before, she has seen the workers who have told her that Mr. Elliott hired them to do it. Director Edwards asked if she and Mr. Elliott have discussed this problem and come to an agreement; and Ms. Blackwell said that when they have talked, it has most often been when there was a complaint that he was cutting vegetation off the fences and that he had his boats, trailers, etc. in the R-4 area but had never installed a fence. The last exchange she had with him was because he was cutting all of the vegetation off this property by Wayne Erickson=s residence. during the nights taking the boats. She said if he were 50 feet away and had an eight-foot fence and shrubs, then there would be no problem. Director Weatherford questioned the information distributed by Ms. Sifford indicating that commercial enterprise has proceeded to expand without showing up on the permit schedule. Ms. Sifford said that in reviewing the material that Ms. Blackwell had, there was a list of permits; but there did not appear an entry for the construction of a boat shed or boat storage facility that faces Albert Pike. Mr. Jerry Raetz advised that the structure was permitted. Ms. Blackwell commented there are questions as to the date that he constructed the last, large boat building. She said she was sure it was after the landscape ordinance was gives them a place to park, which will be paved, thereby eliminating any dust problem. He pointed out that is not a requirement of the current situation but is added as a result of this application. He noted that the following items have been added: (1) eight-foot fence; and (2) hard paving and striping; and there is a limitation of using for employee parking only in that second, 30-foot area. He said there seems to be some concern about whether or not Mr. Elliott and his family will comply with the requirements that are set forth in the ordinance. He advised that Mr. Elliott had previously agreed to post a $5,000 bond; but if the Board wants further assurance, he will post a $10,000 bond. The bond will be posted to assure that he will do the things that are set forth and the conditions that have been approved by the Planning Commission. Mayor Bush asked if these conditions will be met within the 60-day time limit that the Planning Commission placed on this, and Mr. Owen replied they would be met within that people who could have been here on March 15 but could not have been present tonight. Ms. Blackwell said she was not aware of anyone, but they were told that Mr. Owen probably could not be here tonight; therefore, it would be on March 15. Director Newell said that he wanted to be sure if she feels the people who wanted to speak in opposition were fairly heard, and Ms. Blackwell said she believed the ones who live closest to it and are most affected have been fairly heard. Director Newell said in view of that, he would not request that the Board delay action on this ordinance. City Manager Kent Myers stated the only question Ms. Blackwell brought to his attention is the possibility of changing the time for the Board Meeting because of the elderly people in that neighborhood, and she had requested the Board meet earlier. He explained that it is established by ordinance when the Board meets; however, citizens can provide written comments or petition to voice their comments. He said if it were postponed motion of Director Jones, duly seconded by Director Wheeler, that the ordinance be passed as read. Upon discussion, Mr. Jerry Raetz explained this is an application to rezone a parcel of property directly north of the intersection of Higdon Ferry Road and Emory Street to C- TR, Commercial/Transitional. This request is to use a residential structure at this location for a music store, specializing in vintage guitars. The Planning Commission voted approval by a 4-2 vote with a recommendation that the owner and applicant will meet the standards of the Planning Department concerning off-street parking and also with the Public Works Department and the Arkansas State Highway and Transportation Department regarding the ingress and egress, as well as consider the proposed highway widening of Higdon Ferry Road.  Mr. Don Cochran, Utilities Director, reported that as a result of Public Health Security and Bio-terrorism Preparedness and Response Act of 2002, the City was required to complete a vulnerability assessment survey of the City=s water system by December 2003. On September 2, 2003, the Board approved a contract with Affiliated Engineers to perform this vulnerability assessment; and the document is now in Washington, DC with the EPA. In addition to this survey, the City is required to update its emergency response plan within the next six months so in the near future, he will be submitting the amendment to Affiliated Engineers= contract to assist with that task. He introduced Mr. John Mowry, with Affiliated Engineers, to summarize the document. Mr. John Mowry stated that the Act required every water utility that served over 3,300 people to complete a vulnerability assessment. The process is to identify vulnerabilities within utility and describe ways to minimize the risks associated with those that kind of attack: (1) detect the attack, which means a person must realize the attack is underway; (2) after detection, have some kind of physical barrier or system that stops the person from carrying out the attack; and (3) response, which is the time it takes for someone to stop the attack, which in most cases is law enforcement. The final step was to evaluate those systems and give considerations for major improvements. The first issue that became obvious was the need to increase the capability of detection at all of the facilities. At the present time, the City has a personnel policy where there is one person at a treatment plant at night. Also, they discussed an insider=s threat. The next point that came up was security of certain pieces of hardware, which was not a concern before. The recommendations are the need to increase personnel at the manned sites, which are primarily the water plants. Also, the need to increase security monitoring at these unmanned sites, such as water storage tanks, pumping stations. This can be done by improving alarms on doors and windows, as well as working with law enforcement officials he report on the status of the City reopening that. Mr. Cochran replied that he would get a response in writing on what can and cannot be done. Mr. Mowry said that he has not looked at that very thoroughly; but there will have to be some major modifications, which may include major funding. He added this report is informational only but is to make the City aware of the deficiencies in the system and try to overcome those deficiencies as time and money allow. OTHER BUSINESS 19 Board of Directors Items increase over the last four years in terms of consumption. He added that the sewer rate is based upon water consumption; (3) sprinkler meters have greatly increased in the last several years, and the City does not charge any sewer on the sprinkler meters. The customers absorb all of the costs for installation; but once they are installed, they are a water-only account. There was a 42 percent increase on those type of accounts over the last five years; (4) the City has invested a large amount of money in the sewer system over the last several years - $10.4 million in capital improvements during the last five years and $2.8 million last year. Some of these improvements include the composting operation and other capital improvements; (5) during last year, there were some unplanned expenses, such as emergencies and change orders, which were submitted to the Board for approval. There was a $265,000 Change Order on a lift station where the contractor started doing the work and uncovered different material that had collapsed in that sewer line. Total Change Orders for last year were approximately $340,000; and (6) due to growth in the Sanitation Fund for the Magic Springs Bonds. He emphasized those are the only areas where the City has moved money out for special purposes on a permanent basis, but the Magic Springs money will be repaid. Currently, the General Fund has loaned the Sewer Fund $491,000; and the Water Fund has loaned the Sewer Fund $467,000. In regard to improving the situation with the Sewer Fund and Sanitation Fund, the Sanitation Fund was probably in a similar state as the Sewer Fund about two years ago; and management and staff made cuts in capital. By midyear, the General Fund should no longer cash flow the Sanitation Fund; but in order to do that, there had to be cuts. The City had to postpone the capital needs for the Sanitation Fund, and Mr. Cochran has already done that in the Sewer Fund in the last 30 days.  City Manager Kent Myers stated that the City verified 2,000 customers who are part of the water system and are not part of the sewer system. Mr. Cochran said he believes that measures have been put into place where the City will not get into that situation again by issuing the construction meters. Director Weatherford said he requested this report because he is aware there are several projects that have been considered, and the Board has to understand that the City is very tight in the Sewer Fund; and there is no money for these projects this year. City Manager Kent Myers pointed out there are other areas that have been cut back, and one of the positions cut this year was the brushhog position in the Street Fund. He added the Board may receive complaints this year on areas that are not brushhoged on a regular basis. covers those contracts; but once those are done, he will not be starting any new capital this year. He will also be cutting back on the capital in the Utility Administration Fund because the Sewer Fund and Water Fund pay one-half of that. Their goal is to finish the work they started for this year and to get out of debt. City Manager Kent Myers pointed out that in his State of the City Report he gave in January 2003, he indicated that the fund would be drawn down as a result of the capital projects. The largest capital project last year was the composting improvements, which could have been delayed; but it was felt from staff=s standpoint and the Board=s direction that was a critical project that needed to be done in 2003. 2. City Manager Kent Myers mentioned that the volunteers who assisted with the Hanamaki delegation were Mr. Brian Sink and Mr. Kurt Schatzl, as well as the Embassy