Board of Directors

MINUTES BOARD OF DIRECTORS MEETING APRIL 5, 2004, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, April 5, 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. Gwen Wright, 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 Brunner-Maruthur, Elaine Jones, Burt Newell, Carroll Weatherford, Bill Edwards, and Mike Bush, total 6. Absent: Director Bob Wheeler. (Note: Director Wheeler entered the Board Chambers at 7:50 p.m.). 2. Approval of Agenda A motion was made by Director Edwards, duly seconded by Director Jones, that the agenda be approved. Upon discussion, Director Brunner-Maruthur reported that she contacted Mr. Doug Arnold’s office regarding Item No. 8 (Proposed Resolution No. R-04-73 Revising the 2004 General Fund Budget by Appropriating Funds for Building Improvements [Board Chambers]) and stressed that the Board has some input on the materials and colors for the Board Chambers. She also requested that Item No. 14 (Proposed Resolution No. R-04-79 Authorizing the Mayor to Execute Amendment No. 2 to the Contract with NRS Engineering for Engineering Services Related to a Wastewater Impact Fee Study) be removed from the Consent Agenda for separate discussion. 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 March 15, 2004 Board Meeting A motion was made by Director Newell, duly seconded by Director Edwards, that the minutes of the March 15, 2004 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4. Recognition of Guests City Manager Kent Myers recognized Ms. Dorethea Yates, incoming Finance Director, who will begin April 19. 5. Acknowledgment of Financial Statements for February 2004 Mayor Bush announced that the Financial Statements for February 2004 are on file 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 (March 24, 2004). 7. Proposed Resolution No. R-04-72 Approving Certain Bid Awards (a) HVAC - Various Departments [annu- al supply contract awarded to Powers of Arkansas]; (b) Vehicle - Street Department [state contract award - ed to Landers GMC in the amount of $21,008]; and (c) Paving - Public Works [annual supply contract awarded to Martin Marietta]. 8. Proposed Resolution No. R-04-73 Revising the 2004 General Fund Budget by Appropriating Funds for Building Improvements (Board Chambers). 9. Proposed Resolution No. R-04-74 Revising the 2004 Police Fund Budget by Appropriating Funds for Salaries. 10. Proposed Resolution No. R-04-75 Revising the 2004 Fire Fund Budget by Appropriating Funds for Fire Equipment and Property Improvements. 11. Proposed Resolution No. R-04-76 Accepting a Community Development Block Grant from the U. S. Department of Housing and Urban Development (HUD) for Various Community Development Projects. 12. Proposed Resolution No. R-04-77 Authorizing the Acceptance of a Grant from the Arkansas Forestry Commission for Urban Forestry Conference Expenses. 13. Proposed Resolution No. R-04-78 Authorizing the Mayor to Execute Addendum No. 1 to the Carpenter Dam Lease Agreement with Entergy Arkansas, Inc. to Include Sunnybrook Landing Area. 14. Proposed Resolution No. R-04-79 Authorizing the Mayor to Execute Amendment No. 2 to the Contract with NRS Engineering for Engineering Services Related to a Wastewater Impact Fee Study. (Removed from Consent Agenda for Separate Consideration) 15. Proposed Resolution No. R-04-80 Authorizing the Mayor to Execute Amendment No. 1 to the Contract with Affiliated Engineering for Water Treatment Facilities Emergency Response Plan Update. 16. Proposed Resolution No. R-04-81 Approving the Reimbursement to Jack Mountain Water Improvement District for Upsizing of a Water Main (Arkansas Highway 290). 17. Proposed Resolution No. R-04-82 Approving the Extension of Hot Springs Municipal Sewer Service to 812 Prospect at 116 Curve Street. 18. Proposed Resolution No. R-04-83 Awarding a Contract for Installation of a Crosswalk (Highway 7 and Bath Street) to Concrete Professionals. 19. Proposed Resolution No. R-04-84 Accepting a Cash Grant from the Hot Springs Area Community Foundation for the Development of a Parks and Recreation Resource Guide. 20. Proposed Resolution No. R-04-85 Authorizing the Filing of a Grant Application with the Federal Emergency Management Agencies 2004 Fire Act Grant Program. A motion was made by Director Edwards, duly seconded by Director Weatherford, that the Consent Agenda be approved, as amended. Upon discussion, City Manager Kent Myers requested that an addition to the Public Safety Report be added to the Consent Agenda to close Church Street for an event on April 13 through April 17 (Outdoors All-American Fishing Championship Weigh-In). Mayor Bush then called for a vote on the motion to approve the Consent Agenda, as amended, to include the addition to the Public Safety Report and removal of Item No. 14 (Proposed Resolution No. R-04-79 Authorizing the Mayor to Execute Amendment No. 2 to the Contract with NRS Engineering for Engineering Services Related to a Wastewater Impact Fee Study) for separate consideration; and upon roll call, the following voted “aye”: Directors Brunner-Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 6. Absent and not voting: Director Wheeler; motion unanimously carried. NEW BUSINESS 14. Proposed Resolution No. R-04-79 A resolution entitled, “A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE AMENDMENT NO. 2 TO THE CONTRACT WITH NRS ENGINEERING FOR ENGINEERING SERVICES RELATED TO A WASTEWATER IMPACT FEE STUDY,” 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, Director Brunner-Maruthur stated that at the March Board Work Session, the Board was given four or five options regarding addressing the needs of the City and possible rate increases to comply with the standards set forth by the federal government. She said this resolution is for an impact fee of a one-time charge on any new building; and during the work session, she had mentioned an option. She pointed out that the paper received from NRS did not show there would not be an impact fee, but the other paper received by the Board showed there was no impact fee, which are two conflicting papers She stat- ed that the residents who are going to build in the County should pay more than those who are supporting them in the City because the City is ultimately responsible for what happens. She commented that she wanted to encourage growth and would like to see the City get the break and the residents in the County have a higher rate, which is Option 1. She added that Option 1 is the fairest because this will be continu - ing revenue. Therefore, she wants to vote for Option No. 1, which means she does not want to do the impact fee study and is based on the two papers not being the same. City Manager Kent Myers clarified that the Board is not voting on any options tonight and the item on the agenda is only for the impact fee study. He said that after the work session, he and Mr. Cochran were under the impression the Directors wanted to proceed with the study because they wanted all of the information before a decision was made. Director Brunner-Maruthur stated she is not in favor of the study since she is not going to support an impact fee for the City or County. Director Weatherford said he had requested at the agenda meeting for staff to determine if the $17,500 was the amount they had quoted at the work session. Mr. Don Cochran, Director of Utilities, stated that it is on an hourly fee schedule; therefore, it is a “not-to-exceed” amount. He added that an impact fee allows the City to accommodate growth; and by collecting that impact fee, the City can use that money to expand the capacity of the system to allow more growth. If money is not available to expand the system, then it has to come from the other ratepayers so everyone pays, and the impact fee passes that cost onto the new- comers. Director Brunner-Maruthur commented that the City is responsible for the system; and if there is a disaster or breakdown, it is the City that absorbs all of the cost. She added because of that fact, the Directors had discussed that the burden should be on those who are depending on the infrastructure supported by the taxpayers of the City. Therefore, she believed Option 1 would be the best because it give the City tax - payers the break. She stated the City would be as fair with the County because no one would have an impact fee, and this would encourage building in the City and County.  Mr. Cochran stated since the work session, he has met with his staff; and they have narrowed down their capital improvement plan for the next five years spreading those costs out to eight or ten years. He plans to meet with City Manager Kent Myers and the rate consultant before the next Board Meeting and return in the near future with some options. City Manager Kent Myers added that the Sewer Fund has improved over the last 30 days, and the rates that will be presented at the next meeting will not be as high as seen on the report. He advised that he received a report today from Mr. Cochran that the Sewer Fund has paid back the Water Fund about one- half of it. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Jones, Newell, Weatherford, Edwards, and Bush, total 5. Voting Ano@: Director Brunner- Maruthur. Absent and not voting: Director Wheeler; motion carried. Whereupon the resolution was declared adopted. 21. Special Public Safety Report (Four-Way Stops on Rector Street) A motion was made by Director Newell, duly seconded by Director Brunner-Maruthur, to consider the spe- cial public safety report for four-way stops on Rector Street. Upon discussion, Director Newell stated a petition was initiated by Mr. Sherrod Thompson signed by resi - dents and concerned citizens in the area requesting two, additional four-way stops. He said that staff does not recommend this based on traffic counts, but the majority of the neighborhood affected believes it would be a good idea. He asked for the Board=s support. Mr. Sherrod Thompson said he circulated a petition on Third to Summer on Rector. He noted that he received a signature from the Chief of Police and pastor from Gospel Light Baptist Church. He mentioned that Gospel Light is going to build a Bible College there, and the dormitories will be located on Rector, which will be by 2005. Director Edwards announced that he has received four telephone calls from people who use that street everyday stating they would be inconvenienced having to stop every block to go from Third Street to Summer. Mr. Thompson pointed out they are trying to stop cut-thru traffic and heavy trucks. Director Edwards noted that heavy trucks should not travel on those streets unless they are making deliveries. Mr. Thompson replied there is a wrecker service on Malvern Avenue that will run three or four trucks a day down Rector Avenue on their way to Albert Pike. Deputy City Manager Lance Hudnell advised that the Board adopted the Manual on Uniform Traffic Control Devices (MUTCD), which is a traffic control device in the sense of traffic flow and traffic volume. He stressed the City has to have some standard for determining how to make these decisions, and the MUTCD sets out those standards. He advised that four-way stops are primarily a precursor to a stop light, and these particular streets do not come close to the traffic volumes necessary for four-way stops. He added that a four-way stop is not to be used to deter cut-thru traffic. Police Chief Gary Ashcraft said he signed this petition, noting the Police Department is not against a four- way stop if that is what the Board decides. He added the Department will be there to enforce it if it is passed.  Director Newell withdraw his motion to consider the request and Director Maruthur withdrew her second. A motion was then made by Director Newell, duly seconded by Director Maruthur, to approve stop signs at Fourth and Rector and Fifth and Rector; and upon roll call, the following voted “aye”: Directors Jones, Newell, and Bush, total 3. Voting “no”: Directors Weatherford, Edwards, and Brunner-Maruthur, total 3. Absent and not voting: Director Wheeler; motion failed. 22. Proposed Resolution No. R-04-86 A resolution entitled, “A RESOLUTION WAIVING SEWER GRINDER PUMP CONNECTION FEES FOR RED OAK SEWER IMPROVEMENT DISTRICT,” was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Brunner-Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, advised that staff is recommending denial of the request to waive sewer grinder pump connection fees to the Red Oak Sewer Improvement District. He stat- ed that these fees consist of $500 each for 330 residents, which would be a loss of sewer revenue in the amount of $165,000. The City has received a request from Attorney J. E. Sanders, on behalf of the Red Oak Sewer Improvement District, to waive these fees. The City=s ordinance sets out that any new cus - tomer attaching to the system via grinder pump station or a gravity system serviced by a grinder pump sta - tion shall pay an additional tie-on charge of $500, which has been in the City=s ordinance since July 1995. To his knowledge, the City has no written policy or ordinance on file related to these fees specifically for sewer improvement districts. He researched the claim that connection fees were waived for two other sewer improvement districts since 1995, which was the Highway 70 West Sewer Improvement District and the White Oak Sewer Improvement District. Information he gathered from Mr. Milton Raabe, former utili - ties engineering manager, NRS Engineering, and Affiliated Engineering told him that unlike the Red Oak Sewer System, which has 330 grinder pumps, these two sewer districts were mostly gravity systems with a limited number of grinder pumps. According to Mr. Craig Stevens, Sewer Collection Operations Manager, the Highway 70 system had approximately 60 grinder pumps; and the White Oak Sewer System had approximately 91 grinder pumps. He said that he met with Mr. Raabe; and at that time, he had waived the $500 connection fees in exchange for utility easements. He added that these sewer improvement districts are established for the benefit of the residents of the area it services, and they do not benefit the City. By accepting these sewer systems, the City accepts all responsibility for operations and maintenance from the day they are connected. The City also accepts all liability and risk associated with the system, as well as the federal and state environmental accountability. The Utilities Department=s position is that, although it may have been the past practice of previous Utilities administration to waive the grinder pump connection fees, it was done without Board approval. He stated that recently, there have been four residents tie onto the system; and they were charged the $500 fee. He advised that staff=s recommendation is to deny waiv- ing these fees. Attorney J. E. Sanders stated he has researched county records to determine if the City has ever, since the institution of this ordinance in 1995, actually collected a sewer grinder pump fee from a district. He stated that up until this district, there has never been a collection of a fee; and while it is on the books as a City ordinance, the City has not, through its administrative policy, enforced this ordinance. In his research, he did not find where there was ever a written waiver sought by the City or brought to the Board; however, he found some occurrences where the City did honor not collecting monies. He noted an agreement was entered into with East Kaufman Road Sewer Association on October 31, 1995, signed by Milton Raabe, where there was no charge for a grinder pump. Also, there was an agreement with White Oak regarding the amount that would be charged; and there was no reference to the $500 collection for a grinder pump. A part of that agreement makes no reference to a grinder pump; and it makes a part of the total agreement that the district will be reimbursed for connections onto the sewer system. Also, only a reasonable payment of a fee is required; and upon proof being submitted to the City of that reasonable payment, the City is going to allow the person to connect onto the sewer system. He said they are not asking the City to honor that in the future. He stated that the Red Oak District has 23 pumps in its inventory to transfer clean title to the City or to use in the future as part of its ability to defray costs of grinder pumps breaking down. He said if the City were to charge just for the pumps, they do not have 333 pumps but have 210 pumps. There are 21 pumps in reserve and have set up an infrastructure system for the additional tie-on of 40 more pumps that they are not asking the City to defray or waive the cost in the future. They are only asking the City to deal with their situation as it is at the present time. If 40 more people tie on in the future, they would want the City to go ahead and charge from a point in time forward in accordance with the ordinance. However at this point, they have 155 single pumps and 53 pumps that serve two units and three pumps that serve four units. By taking 500 and multiplying it by the number they have, this is approximately $105,000. In his letter, he explained that the cost of the pumps they have already paid for and have in storage are approaching $54,000. Director Edwards questioned if he discussed this with Mr. Cochran regarding the cost on grinder pumps, and Mr. Sanders advised that he did not. He added when they formed this district and all the way through the financing of it, Mr. Milton Raabe was the Utilities Director. City Manager Kent Myers advised that staff met with Mr. Owen and Mr. Malone last April and advised them of staff’s position. They were informed if they wanted a waiver on these fees, they would have to appeal to the Board since staff did not have the authority to waive the fees. He noted that Mr. Sanders was not in attendance at that meeting. Director Brunner-Maruthur asked if he received a commitment from Mr. Raabe that this would be waived, and Mr. Sanders replied that he did not get a commitment in writing. Also, he cannot find anything in writ - ing other than what he told the Board about the agreement regarding the Kaufman Road sewer and the agreement regarding White Oak. The White Oak agreement was for a period of time and was dated in 2000, which is relatively close to when they were trying to put their district together. Director Brunner-Maruthur said that his dealings were with Mr. Raabe, and he did not give them a commit- ment either. Mr. Ray Owen, Jr. stated that he is not the attorney for Red Oak Sewer but has been the attorney for sev- eral of the other districts that Mr. Sanders mentioned. One was the Highway 70 West Sewer Improvement District, which was established after this ordinance was adopted. The District was established on February 6, 1997; and the construction took place in 1998. There were no extra fees charged for the grinder pumps that were in that district. White Oak Water and Sewer was formed on January 12, 1998, and was built beginning in late 1999 and early 2000. There was an agreement approved by the Board of Directors on January 17, 2000; and that agreement specifically stated there will be a $75 connection fee for the con - nections but did not provide for the $500 grinder pump connection. Around that same time, petitions were beginning to circulate in the Red Oak Sewer area to form the Red Oak Sewer System. Based upon what was then a de facto policy of the City, there were no provisions made for the payment of the $500 fee for grinder pump customers. It was about the time construction bids were let, and financing had already been arranged when the meeting took place with Mr. Cochran and Mr. Myers regarding this change in city poli- cy. He said he did not recall talking to Mr. Sanders afterwards and was the assessor for this district. However, he thought that the engineer, Mr. Malone, would have that conversation. He stated that he believed it was appropriate that the City continue to follow the policy it had started particularly with the rep- resentations that were made to the people who signed up for this district. He commented they have not made provisions to provide for this payment and is a difficult time for the customers who are ready to turn over to the City about $1 million in infrastructure that has been built, which is around the area where Garvan Gardens is located. Director Brunner-Maruthur said if this was executed by the previous engineer and the Board did not know, then it could not object. However, it was the City’s policy and was approved. She stated that she assumed the policies of the City were being carried out, but this does not come before the Board unless there is an appeal. Therefore, the City never did approve the actions that were taken. She commented that the five residents who hooked on did so thinking they were supposed to, and now it is a hardship for the rest of them. She mentioned the Board previously had an elderly person appear before the Board, and provisions were made for her to make payments because she was unable to pay for the pump. She said that she assumed the policies of the City were being acknowledged by the administrator of utilities. She added that she understands about the easement and the trade-off, but the Board was not aware of this. She stated if it had been brought before the Board after the Board passed this policy, she would have objected and voted against it, or the City should not have the policy. City Attorney David White questioned if the fee in the ordinance that went into effect in 1995 had never been collected against anyone or never been collected as to improvement districts. Mr. Owen replied that it is his understanding it has been collected against individuals, and the difference can be distinguished between individuals and against districts. He explained that an individual will grant an easement across the individual=s property to put the grinder pump in the back yard and bring it up to the street, which is where it stops. The individual pays for the grinder pump and gives it to the City. The districts pay for the grinder pump and also other infrastructure. He pointed out that about $500,000 worth of infrastructure in Red Oak Sewer is not grinder pumps but is the other part of it. He mentioned there are also long distances of vari - ous easements where easements had to be acquired, as well as a tremendous amount of revenue-gener- ating customers who come online at one time. City Attorney David White asked what this fee represented, and Mr. Owen explained it was originally his understanding that it was a one-time, up-front payment for perpetual maintenance on that grinder pump. Director Brunner-Maruthur asked if the ordinance delineated between a district and an individual, and City Manager Kent Myers commented that any new customer attaching to the system via grinder pump station or gravity sewer system serviced by a grinder pump station shall pay an additional tie-on charge of $500. Director Weatherford stated that in April 2003, Mr. Owen was told at a meeting this would have to be approved by the Board. He questioned why there was a delay in providing the information to Mr. Sanders and why he waited a year to appear before the Board. Mr. Owen responded that he did not know the rea- son for the delay. He added there was a conversation at that time, and construction has started since then. He stressed that he is the assessor on this particular project, not the attorney; and it would not be his responsibility to present it to the Board. Director Weatherford asked if the pumps met the City’s specifications, and Mr. Cochran advised that they do. He added the system was put in according to the City’s specifications. He mentioned when a new sub- division comes on, they are charged just as an individual is. Director Weatherford pointed out that according to the ordinance, the City charges a $500 fee for each con- nection and questioned if the Board has waived that to any individual. Mr. Cochran replied that it has not been done to his knowledge. Director Weatherford questioned what would prevent citizens in the future from forming their own sewer improvement district and then wanting the City to waive that; and Mr. Cochran said anybody could ask the Board to waive anything they want, which is the Board’s decision. Director Weatherford said he believes the City needs to go by policy. Mr. Cochran commented that has been his position when this first came up a year ago in his meeting with Mr. Owen and that he did not have the authority to waive those fees. City Manager Kent Myers stated that regarding the meeting held a year ago and subsequent conversations with Mr. Malone, advising him of the City’s policy, staff was recently disappointed to receive copies of cor- respondence where he sent a letter to Kathy Winkley last month stating the fees now being imposed by the City were not in effect during the design and development phases of the project. He reported that Mr. Malone knew they were in effect because the City advised him of that on numerous occasions. He stated this information has been misleading to the residents in that area. City Attorney David White questioned how the City arrived at the figure of $500; and Mr. Steve Mallett, util- ities engineer, advised that the $500 fee was the actual replacement cost of a pump in 1995. Director Edwards questioned how long a grinder pump lasts, and Mr. Cochran advised that the new pumps tend to last longer than some of the older ones. He stated his department is in the middle of a grinder pump change-out program where they have standardized on one type of pump that seems to have lasted longer in the field. They have had good success with the pumps they are now using, which have a two-year war- ranty. He added some of these pumps have been out there for ten years and continue running without a problem, but some of the other type pumps used in the past may not last three or five years. Mr. Parker Dozier, Chairman of the Red Oak Water and Sewer Improvement District, said that they were misled; and no one was aware there would be any connection or maintenance fees. He stated they had voluntarily supplied over 20 grinder pumps, and he will lobby strongly that the City not get those grinder pumps. He mentioned that the residents and people inside the district are building over a $1 million district and will be turning it over to the City. Director Wheeler commented that the Board is responsible for taking care of the City, and Mr. Dozier said they are not asking for anything free. He commented that in the discussions they had with Mr. Raabe, there would not be any fees other than connection fees and not a maintenance fee. He advised that the district itself and the directors of the district, within the contract, said they would buy a ten percent override of pumps and give them to the City. Director Weatherford asked who misled them, and Mr. Dozier said they were never told of any connection fees; and these questions were specifically asked. He stated that the only thing he recalls was that Mr. Raabe said there would be a standard connection fee of $75 in a meeting in Mr. Sanders’ office. Director Weatherford questioned what kind of a deal did he cut with Mr. Raabe; and Mr. Dozier replied that if they cut a deal, they would give a ten percent override in pumps, which was the original agreement. City Manager Kent Myers asked if, as chairman of the Red Oak District, he was advised a year ago of the meeting with Mr. Owen and Mr. Malone; and Mr. Dozier advised that he was not. City Manager Kent Myers questioned if additional people who signed onto the district in the last year ever advised of the City ordi - nance, and Mr. Dozier replied that he did not believe they were advised of anything. Director Wheeler said he received approximately 20 phone calls and explained this to those residents. Mr. Dozier advised he had received calls from people inquiring about the $500 fee; and he called Mr. Owen, who said he was not aware of it; but Mr. Sanders said that he would look into it. Director Weatherford said he made the statement that he called Mr. Owen, who was not aware of it. He  was at the meeting where he was told this would have to be approved. Mr. Dozier told him that it has never been done before. Director Edwards stated it is not right for the City residents to subsidize those in the county. Director Brunner-Maruthur commented she was misled into thinking that the City ordinance was being adhered to. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “no”: Directors Brunner-Maruthur, Newell, Weatherford, Edwards, Wheeler, Jones, and Bush, total 7; motion unanimously failed. Whereupon the resolution was declared failed. 23. Proposed Resolution No. R-04-87 A resolution entitled, “A RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER SERVICE AND INSTALLATION OF FIRE HYDRANTS ON ALABAMA STREET,” was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Brunner-Maruthur, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Brunner-Maruthur, Newell, Weatherford, Edwards, Wheeler, Jones, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 24. Proposed Resolution No. R-04-88 A resolution entitled, “A RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER SERVICE TO 1291 CARPENTER DAM ROAD,” was taken from the agenda and read by title only. A motion was made by Director Wheeler, duly seconded by Director Brunner-Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, stated that staff recommends approving the reso - lution in accordance with the current City policy, which would require the property owner to pay all costs of construction. Mr. Dan Sampson has requested that the City extend the water main to his property at 1291 Carpenter Dam Road, which is in the City limits. He said it is staff’s understanding that Mr. Sampson cur- rently has a water service line that crosses his neighbor’s property and is in need of replacement. However, his neighbor will not allow him to go on the property to make the repairs. Therefore, he is wanting to extend the line down to his property and is asking the City for assistance to extend that line, which is approximately $4,484. Staff has no problem extending the line but is recommending that the property owner pay for it. Mr. Ray Owen stated that Mr. Sampson’s property is in the city limits, and he had a water line which is no longer usable. He is requesting the City to extend the line along the road right-of-way and asked that he be treated as the same as the Quast’s were two months ago. Mr. Owen advised that Mr. Sampson is will- ing to pay for his half of the line, which could ultimately benefit the City in the sense that it could be extend- ed on up to serve the new park in that area. City Manager Kent Myers asked that Mr. Cochran explain the difference between this request and the request by the Quast’s. Mr. Cochran explained there was no water line that supplied the Quast property; and also with the Quast situation, it was staff”s recommendation that the City not pay for that water line. However, the Board chose to pay for one-half. He added there was no water main that provided service to the Quast property, which is the main difference. Mr. Sampson had water service that crossed his neigh - bor”s property, and it is in bad shape and is in need of repair. However, his neighbor will not allow him to come onto the property and make the repairs.  Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Brunner-Maruthur, Newell, Weatherford, Edwards, Wheeler, Jones, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 25. Proposed Resolution No. R-04-89 A resolution entitled, “A RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL SEWER SERVICE TO 315 IDLEWOOD,” 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. Don Cochran explained that a request was received to extend sewer service to 315 Idlewood. Mr. Bazal Winstead is the property owner; and staff recommends extending the sewer service but following city policy, which will require the property owner to pay for all the costs associated with the extension. On behalf of Mr. Winstead, Mr. Milton Raabe brought this to the City’s attention. After Mr. Winstead purchased his home at 315 Idlewood, he began having problems with the septic tank. He advised that Mr. Winstead is requesting the City assist him with the cost of construction, either by having the city crews perform the work, or Mr. Winstead will have a contractor perform the work and ask the City for reim - bursement. The estimated cost of this construction is $3,300. Mr. Winstead informed the Board there was some confusion when he purchased the property as to where the sewer line ended. When he purchased it, the realtor indicated if he looked at his two lots, it came up to his driveway. Then there was some confusion as to whether or not the line might run down an easement that goes down the back of his property. Mr. Raabe indicated that the line shown on the plat that runs per- pendicular from the street actually runs at a 45-degree angle from the nearest manhole and would come up to his property line. The next day after that discussion, the City crew came out to dig up the line because there was an obstruction in it; and it did run at a 45-degree angle about 20 feet and stopped. He stated the sewer stops at the intersection of Robinwood Terrace and Idlewood approximately 150 feet from his prop- erty line. He mentioned Mr. Elton Cooley owns the land to the east and north of him, and one individual owns the entire block in front of him; also, there is one lot to his west. He said he is an island on a septic tank with everyone else around him on the sewer and would like assistance from the City. Director Brunner-Maruthur commented that she has been concerned with situations such as this and wants citizens to stay and build in the City. She stressed that when there are problems with septic tanks and res- idents want to get on the sewer, the City should work with them. Mr. Winstead said he has received a bill and was charged for the sewer, but he did not have to pay it. Deputy City Manager Lance Hudnell explained the resolution is written to approve the extension but at the homeowner’s expense. A motion was made by Director Wheeler, duly seconded by Director Jones, that the resolution be amend- ed by the City paying for the entire cost of the extension; and upon roll call, the following voted “aye”: Directors Brunner-Maruthur, Jones, Weatherford, Wheeler, and Bush, total 5. Voting “no”: Directors Newell and Edwards, total 2; motion carried. Mayor Bush then called for a vote on the motion to adopt the resolution, as amended; and upon roll call, the following voted “aye”: Directors Brunner-Maruthur, Jones, Weatherford, and Wheeler, total 4. Voting “no”: Directors Edwards, Newell, and Bush, total 3; motion carried. Whereupon the resolution was declared adopted, as amended. 26. Proposed Ordinance No. O-04-21 An ordinance entitled, 'AN ORDINANCE AMENDING ORDINANCE NO. 4549, AS AMENDED (UNIFORM MUNICIPAL UTILITY BILLING PROCEDURE) BY REVISING DELINQUENT ACCOUNT TIMING AND ADDING A PROVISION REGARDING OBSTRUCTION OF WATER METERS; AND FOR OTHER PUR - POSES,' was taken from the agenda for consideration. A motion was made by Director Jones, duly seconded by Director Wheeler, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously car - ried. 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 Brunner-Maruthur, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Brunner- Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 27. Proposed Ordinance No. O-04-22 An ordinance entitled, “AN ORDINANCE AMENDING ORDINANCE NO. 4007, AS AMENDED, BY REDUCING THE TIME PERIOD FOR STREET ENTERTAINER PERMITS; AND FOR OTHER PURPOS- ES,” was taken from the agenda for consideration. A motion was made by Director Brunner-Maruthur, duly seconded by Director Wheeler, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unan- imously 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 Jones, that the ordinance be passed as read. Upon discussion, Deputy City Manager Lance Hudnell explained when the CBID No. 2 was first formed, the Board of Commissioners at that time considered some requests from the merchants with regard as to whether or not the City wanted to have street entertainment on the street. There was a lot of discussion at that time, and the current ordinance was drafted which allowed some seven or eights spots by permit only; and no fees to be charged. This past summer, some of the merchants considered there to be problems with regard to street entertainers. The CBID Commission has requested that the Board consider for this summer limiting those permits to a two-week period. Currently, it is for a year period and is a $50 a year fee. This ordinance would change it to a two-week period with a $20 fee, but the remainder of the ordi - nance would remain the same. Director Brunner-Maruthur questioned if they can re-up on it since the Board is considering limiting this to a two-week period, and Deputy City Manager Lance explained that it is for one, two-week period, per cal - endar year. Mr. Zachary Smith, resident on Quapaw Avenue, stated that he is a street entertainer, and street entertain- ers create a vibrant street environment that encourages people to return. He mentioned that this ordinance reduces the amount of time a street performer can perform. Also, he said this ordinance will limit the further development of Hot Springs as a town where people can come and be known as having a good time on the street with an open environment that is positive for arts, including performing arts of all kinds. Director Brunner-Maruthur asked if he was aware who paid for the improvements on the street where he wants to perform, and Mr. Smith said that he assumed the improvements were paid for by a variety of rev- enue sources, including taxes from the businesses.  Director Brunner-Maruthur pointed out it is the body that paid for it that wants to limit it. She said that she enjoys street performers but does not believe he realizes the body that voted to limit this are the people who paid for it. Deputy City Manager Lance Hudnell explained that the infrastructure downtown was paid for primarily by the property owners through taxing themselves, and they continued to provide a maintenance fund that they taxed themselves to pay for it. Director Wheeler pointed out that the City thrives on tourism; and without tourism, downtown and the busi- nesses can be detrimentally affected. He pointed out that many of the conventioneers enjoy street enter - tainers. Director Weatherford questioned why the City is changing this ordinance, and City Manager Kent Myers advised that it is a recommendation of the CBID No. 2 Board of Commissioners. Director Weatherford pointed out that Mr. Mark Spitzer, a member of the CBID Commission, does not recommend changing it because there were two questionable entertainers. He added that he did not see changing the ordinance because of a problem they had with a couple of entertainers. Director Jones mentioned that Parks and Recreation Director Jean Wallace recommended using Adair Park and control it and regulate it, and City Manager Kent Myers replied that the City has always tried to get as much entertainment down at Adair Park as possible. Director Jones suggested that this ordinance be tabled and more study given. A motion was made by Director Jones, duly seconded by Director Brunner-Maruthur, that the ordinance be tabled. Upon discussion, Director Newell objected to tabling the ordinance and urged the Board to take some action tonight. At this time, Director Jones withdrew her motion to table and Director Brunner-Maruthur her second. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Director Wheeler. Voting “no”: Directors Brunner-Maruthur, Jones, Newell, Weatherford, Edwards, and Bush, total 6. motion failed. Whereupon the ordinance was declared failed. 28. Proposed Ordinance No. O-04-23 An ordinance entitled, “AN ORDINANCE WAIVING THE REQUIREMENT OF COMPETITIVE BIDDING FOR THE DISTRICT COURT COLLECTION SERVICES; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Newell, that the rules be sus - pended and the ordinance be read for the first time by title only; and upon voice vote, the motion unani - mously 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 Jones, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Brunner- Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 29. Proposed Ordinance No. O-04-24 An ordinance entitled, “AN ORDINANCE ACCEPTING CERTAIN STREETS IN THE MAPLEWOOD ESTATES SUBDIVISION AS PUBLIC STREETS (MAPLELEAF CIRCLE, SILVERLEAF, AND COPPER- LEAF COURT); AND FOR OTHER PURPOSES,” was taken from the agenda for consideration.  A motion was made by Director Wheeler, duly seconded by Director Weatherford, that the rules be sus - pended and the ordinance be read for the first time by title only; and upon voice vote, the motion unani - mously 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 Jones, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Brunner- Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 30. Presentation of the 2003 Audited Sewer Financial Statements Ms. Laury Fiorello, Acting Finance Director, presented the 2003 audited sewer financial statements explain- ing that the assets of the Sewer Department exceeded its liabilities on December 31, 2003 by $49,522,980. Last year, $2.2 million was used to acquire new capital for the fund that was used out of the net assets from the previous year. The net assets were decreased by $2.2 million for those capital purchases, which is for continuing that service to the sewer utility customers. Some of the assets purchased last year was the land ($100,000) for the new sewer treatment plant. $414,000 was spent to replace and repair the collec - tion lines that are already established to reduce the inflow and infiltration of ground water into the treatment plant. Also, there was an aggressive grinder pump replacement program ($820,000). Overall, about 96 percent of the net assets for the fund is totally invested in capital assets. Because of the bond obligations on the fund, they require the retention of three percent of the net assets each year as a reserve; and this year, it totaled $1.6 million. A small loss was incurred last year, which totaled $293,900. Events that con - tributed to that were a very wet summer last year which affected sewer revenues. Support was also increased to the Utility Administration Fund by $137,000. There was additional supplies expense for the installation of the grinder pumps by $464,000. Regarding the debt obligations at year-end, there are $11.9 million in bond obligations that still have to be paid off in the future; but that overall debt was reduced from the prior year to this year by $1.268 million. OTHER BUSINESS 31. Board of Directors Items Director Edwards reminded the public that the Police Department will cite individuals for the placement of yard sale signs on utility poles. Director Brunner-Maruthur reported there will be a Park Avenue Community Association meeting on Tuesday, April 13, at 7:00 p.m., Tower of Strength Ministries on Park Avenue. They will be distributing brochures on the SAFE Team, which includes City Attorney Paul Suskie from Little Rock, and Officer Andrew Miles from the Little Rock Police Department. She announced there is a new identification pro - gram for street lights that are out. To report those lights, citizens may call1-800-368-3749 (ENTERGY) and provide the street ID No., which is an orange, metal tag that is on every street light in the City. She said when citizens dial the number, they should select the No. 3 option. Director Jones announced that on Saturday afternoon, April 24, the Downtown Merchants will have a Boston Butt Cook-Off at the Exchange Street Parking Plaza. The cost will be $3.00. 32. City Manager’s Report City Manager Kent Myers gave the following report: 1. Last week, the City received its January sales tax, which was up 10.38 percent over January 2003. In putting together the budget for this year, it was estimated to be a two to three percent increase in sales  tax. During mid-year budget review, there should be some additional funds for the Board to consider and look at possibly restoring some of the cuts that were made. 2. There is progress being made on the Board Chambers renovation and encouraged the Board to stop by for a tour. As Director Brunner-Maruthur mentioned, if the Directors want to get involved in the color selection or looking at the plans, Mr. Doug Arnold, architect, has those available. 3. There was a positive meeting last Thursday night with the Transportation Advisory Committee reviewing better utilization of the parking deck. There are several recommendations that will be presented to the Board over the next couple of months. One is an annual parking permit for some of the merchants. There was discussion on returning the police substation next year and including restrooms. 4. Over the last year, some improvements have been added to city facilities including completion of the new bus barn, composting facility and other city facilities. In late April or early May, there will be a Board tour of some of the new facilities on Shady Grove Road at the Public Works Complex and then on Davidson Drive. 33. ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 9:00 p.m., to meet again on Monday, April 19, 2004, at 7:00 p.m.