Board of Directors

MINUTES BOARD OF DIRECTORS MEETING OCTOBER 18, 2004, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, October 18, 2004, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Mr. Junius Stevenson, 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, Bob Wheeler, and Mike Bush. 2 Approval of Agenda A motion was made by Director Wheeler, duly seconded by Director Edwards, that the agenda be approved. Upon discussion, Deputy City Manager Lance Hudnell stated that a motion is needed to add Ms. Goff=s appeal of the assessment, which was received in the due time, to the agenda. A motion was made by Director Edwards and seconded by Director Wheeler to add this item to the agenda as Item 17(c); and upon voice vote, the motion unanimously carried. 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 October 4, 2004 Board Meeting A motion was made by Director Jones, duly seconded by Director Brunner-Maruthur, that the minutes of the October 4, 2004 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests City Manager Kent Myers recognize the Mr. Tim Echols, Employee of the Quarter for the third quarter of 2004. The committee, consisting of Director Brunner-Maruthur, Human Resources Director Minnie Lenox and City Manager Kent Myers, selected Mr. Echols with the Sanitation Department for 20 years as the Employee of the Quarter. During this time, Mr. Echols has proven to be a dedicated, hard-working professional. His work ethic is impressive, and he consistently goes above and beyond to provide quality service to the City and its citizens. He is also a master painter. In addition, he is able to provide a variety of other tasks, often utilized to provide after-hours service to customers who need a dumpster service or roll-off delivered; he is also very handy in other maintenance duties and performs a variety of tasks that would otherwise have to call professionals. He provides locksmith services, installs fleet radios and performs building maintenance, is a good carpenter and is capable of wiring phone lines and can reroute computer lines for offices, etc. Mayor Bush presented a plaque to Mr. Echols, and City Manager Kent Myers stated that gifts would be presented to Mr. Echols later this week. CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (October 6, 2004). 6 Proposed Resolution No. R-04-255 Approving Certain Bid Awards (a) Cold Milling- Public Works [annual supply contract awarded to Dustrol, Inc./CF Stocks Excavating, Inc.]; (b) Towing/Flat Changing-Fleet/Various Departments [annual supply contract awarded to Combs & Burks]; and (c) Water Meters (Regular) - Utilities [annual supply contract awarded to National Water Works/Metron Farnier. 7 Proposed Resolution No. R-04-256 Accepting a Grant from the Arkansas State Aeronautics Commission for Reimbursement of Costs Related to Roof Repairs to the Airport Terminal Building. 8 Proposed Resolution No. R-04-257 Accepting a Grant from the Arkansas State  Aeronautics Commission for the Engineering of Taxiway AD@ Extension at the Hot Springs Municipal Airport. 9 Proposed Resolution No. R-04-258 Extending an Agreement with All States Sanitation to Provide for the Collection of Solid Waste Within the Corporate Limits of the City. 10 Proposed Resolution No. R-04-259 Approving the Extension of Hot Springs Municipal Water and Wastewater to 2517 Spring Street. 11 Proposed Resolution No. R-04-260 Approving the Extension of Hot Springs Wastewater Service to the Fountain Lake Shopping Center on Highway No. 7 North. 12 Proposed Resolution No. R-04-261 Authorizing the Filing of a Grant Application with the Federal Emergency Management Agencies 2005 Fire Prevention and Safety Grant Program. 13 Proposed Resolution No. R-04-262 Adopting Policies and Procedures for the Community Development Block Grant Housing Rehabilitation Program. (Removed from Consent Agenda for Separate Consideration) 14 Proposed Resolution No. R-04-263 Appointing Cynthia Rephan and Frances Atkinson to the Hot Springs/Garland County Beautification Commission. 15 Proposed Resolution No. R-04-264 Authorizing a Free Halloween Bus for Hot Springs Intracity Transit. A motion was made by Director Wheeler, duly seconded by Director Edwards, that the Consent Agenda be approved. Upon discussion, Director Brunner-Maruthur requested that Item 13 (Proposed Resolution No. R-04-262 Adopting Policies and Procedures for the Community Board of Directors Meeting 3 October 18, 2004 at 7:00 P.M. Development Block Grant Housing Rehabilitation Program) be removed from the Consent Agenda for separate consideration. Mayor Bush then called for a vote on the motion to approve the Consent Agenda, as amended; and upon roll call, the following voted Aaye@: Directors Brunner-Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, and Bush, total 7; motion unanimously carried. UNFINISHED BUSINESS 16 Proposed Ordinance No. O-04-57 An ordinance entitled AAN ORDINANCE VACATING A PORTION OF AN UNOPENED EXTENSION OF MANGUM STREET (FORMERLY TERRY STREET AND PLATED AS VESTAL) LOCATED IN ROSELAND ADDITION@ was taken from the agenda for consideration. A motion was made by Director Edwards, duly seconded by Director Brunner-Maruthur, that the rules be suspended; and the ordinance be read by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read by title only; and upon motion of Director Edwards, duly seconded by Director Brunner-Maruthur, that the ordinance be passed as read; and upon voice vote, the motion unanimously carried. Whereupon the ordinance was declared passed. NEW BUSINESS At this time, Director Edwards requested that the individuals running for City Director be recognized: Mr. Tom Wilkins, Mr. Gary Threadgill and Mr. Steve Smith. 17 Appeal of CBID No. 3 Assessments Mayor Bush recognized Mr. Gene Silvey, who stated he had purchased property at 120 Ouachita six months ago and supports the development of the CBID No. 3 project. His business is located at 714 Central (World Cargo). Mr. Silvey expressed concern on how his assessment was derived. He said he understands the assessment is based on frontage and present value of the buildings. In looking at the assessments, he mentioned there are two parking lots, one owned by the City and one owned by Board of Directors Meeting 4 October 18, 2004 at 7:00 P.M. Regions Bank, that do not seem to have any assessed value. There are disparities with other assessments up and down the block, and it seems that Landmark owns a building at Bridge Street and Central, their assessment being $48,076 for a seven-story building and his assessment is $54,359. A vacant lot next to him that has no building is assessed at $29,214. After discussion with Mr. Ray Owen, his approximate assessment would be $2,700 a year, which is more than his taxes. Looking at the final plan for the district, he questioned why the trash bins are $500 each, the tree wells are $700 each, and benches are $900 each when one can be purchased for $450. Mr. Silvey asked why there was no government money behind this project and no government money was sought for CBID No. 3. He commented that he is located at the end of the district at Market Street where the district ends and is concerned that he will be the last one on the block to reap the benefits from the CBID No. 3 plan. He asked for an explanation of why the property owners are paying these amounts of money. Mr. Owen Ray Owen, Jr. advised there is a second owner to that property who may want to complete her portion of the appeal before he makes his comments. Ms. Deanna Rund expressed her concern with her assessment. Other concerns were the total plan for the CBID, such as reducing Central Avenue down to one lane from the 700 block on up and then taking the additional lanes on each side to use as parking. She questioned how emergency vehicles will reach their destinations, as well as response by the Police Department, when there are parked cars and only one lane of traffic. She and her husband are also concerned that the parking plans will pose a problem for them to load and unload furniture for their furniture business since their building at 714 Central has no back access or loading zone available. She also expressed concern with construction on Central Avenue, adding that tourists become frustrated with the traffic jams. With the buses, trolleys, duck tours, freight trucks, and lumber trucks traveling through the main street, she hoped that this would be considered. She emphasized that they support the preservation and development of historic downtown Hot Springs and would hope to have a better answer to how the assessments are being made. Mr. John Girolamo, Landmark Holding at 721 and 723 Central, and Lucky=s at 711 Central, also owner and operator of Angel=s Restaurant at 600 Central, stated that he supports this project, but one of the problems he has seen is that there has been no communication from the commissioners to the individual property owners. He said that at the meetings, each person is allowed to speak for three minutes, which is not sufficient time to convey their feelings. He stated the assessments were mailed on Board of Directors Meeting 5 October 18, 2004 at 7:00 P.M. October 8, which gave property owners a small amount of time to respond because of the holiday weekend. He said the assessment was not clear, and the notice in the paper stated they would have to go to the Deputy City Manager=s office to review the assessments. He pointed out there is a formula for frontage, plus the assessed value, which no one has explained. He commented that he read the State Code for an improvement district and found that once the Board has voted on the assessed value, it cannot change how property owners are assessed from assessed value plus frontage, in essence, giving someone a stronger voting power than they are actually being charged. He asked Director Maruthur for an explanation. Director Maruthur explained that she represents the people who live in the district, and she has only one vote. She commented that for more than two years, she attended meetings where Mr. Girolamo had input and many questions. She asked if Mr. Girolamo was the owner of Landmark Holdings, and Mr. Girolamo replied that he is an officer of the corporation. Director Maruthur said she was present when the formula was explained to him and the other property owners, adding that she was not in charge of the financial determination. Mr. Girolamo stated if the City wants people to have a reasonable understanding before they appeal, it must be understandable. Mr. Owen pointed out this portion of the meeting is to address their appeals to the Board and that should be the only item for the Board to consider at this time. He said there were several public meetings where the property owners were involved, and opportunities were there for comment or input. Anyone who attended those meetings knew that Mr. David French's and Mr. Rico Harris's architectural firm was the architect for the district, and the plans were available for review and have been approved by the Board. The plans are out for bids which will be opened on October 29. The plan was to look at each of the properties and try to reach an equitable assessment. The value and front footage of the property was taken into consideration in arriving at the assessments by a panel of three assessors. The assessments were filed on a timely basis, notices were sent out on a timely basis as required by law, state statute was followed, and certified letters were sent to all property owners using the address of record in the Tax Assessor=s Office. Also, all three parties appealing tonight said they do not have a problem with something being done in the CBID No. 3. Mr. Owen addressed the property at 120 Ouachita, which was purchased by Mr. Silvey and Ms. Rund earlier in the year, and the Tax Assessor=s Office showed the value to be $200,050. It was the former Windows to the World building, and the assessment the committee arrived at was $54,359, which would bring the total Board of Directors Meeting 6 October 18, 2004 at 7:00 P.M. improved value to $255,000. If the project comes in as estimated, then the annual levy would be a little less than 4 percent - 3.8 percent or $2,000 a year, and the payout would be in 12 years or less. Therefore, a $50,000 assessment would result in a payout of $24,000 over 12 years. City Manager Kent Myers asked Mr. Silvey if the agent did not inform him that the improvement district was in process and there would be a possible assessment within the next year. Mr. Silvey replied that he understood that the improvement district was going on, but he was not appealing that the assessment was too high B just questioning the differences of the assessments. City Manager Kent Myers questioned if the same formula was used in assessing all the properties within the district, and Mr. Owen replied that it was. He added that at this point, the Board should either affirm the assessment as filed and deny the appeal, or the Board should take into consideration a replacement number. Mayor Bush then called for a motion to deny the appeal on the first parcel as presented. A motion was made by Director Edwards, duly seconded by Director Newell, to deny the first appeal; upon roll call, the following voted Aaye@: Directors Jones, Newell, Weatherford, Edwards, Wheeler, Brunner-Maruthur and Bush; motion unanimously carried. Mayor Bush then recognized Mr. Russell Marquette, who stated that he owns the parking lot at Chapel Street and Central Avenue. He said that the assessed value of his lot was changed from $13,700 to $38,254. He explained there are only 19 spaces in the lot which are leased out at $50 a month, less than $4,000 a year. He added that whether or not the project goes in, it will not change what he can lease the parking spaces for. Director Maruthur stated that with the development of the Goddard Hotel, she believes that he can recoup more than the value of his property, adding that the CBID No. 3 wants to encourage the residential use of this area. She mentioned there is going to be a need for more leased parking. Mr. Marquette reiterated that he has only 19 spaces and can only make less than $300 a month. He stated that less than half of them are leased, and the surrounding lots are empty. A motion was made by Director Newell, duly seconded by Director Jones, to Board of Directors Meeting 7 October 18, 2004 at 7:00 P.M. deny Mr. Marquette=s appeal; and upon roll call, the following voted Aaye@: Directors Newell, Weatherford, Edwards, Wheeler, Bush, Brunner-Maruthur and Jones; motion unanimously carried. Mayor Bush recognized Mr. Tom Wilkins, representing Ms. Helen Goff, stating that he has been a tenant of Ms. Goff for 17 years. He told Mr. Owen that he needed to go Aback to the drawing board@ one more time and better explain to the property owners what they are going to pay for the project before it goes on. He said they are not against it but do not understand it. He added there needs to be a better plan, not only for putting the district in, but for maintaining it once it is in. He added that was the downfall of the rest of the improvement district down there. He stated it is beautiful in many respects, but there is a lot of turnover and escalating rents and taxes. Mayor Bush asked for a motion to deny Ms. Goff=s appeal. A motion was made by Director Weatherford, duly seconded by Director Edwards, to deny the appeal; and upon roll call, the following voted Aaye@: Directors Weatherford, Edwards, Wheeler, Brunner-Maruthur, Jones, Newell and Bush, total 7; motion unanimously carried. 18 Proposed Ordinance No. O-04-58 An ordinance entitled, AAN ORDINANCE ASSESSING THE VALUE OF THE BENEFITS TO BE RECEIVED BY THE OWNERS OF EACH OF THE SEVERAL LOTS, BLOCKS AND OTHER REAL PROPERTY WITHIN CENTRAL BUSINESS IMPROVEMENT DISTRICT NO. 3 AND PROVIDING FOR THE COLLECTION OF THE BENEFITS IN ANNUAL INSTALLMENTS,@ was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read by title only, and upon motion of Director Edwards, duly seconded by Director Weatherford, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Edwards, Wheeler, Brunner-Maruthur, Jones, Newell, Weatherford and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. Mayor Bush recognized Ms. Deshan Scavo, property owner at 718 Central, who said that her assessment was received late because it was sent to an old address and was concerned that notification was not received in a timely manner by the property Board of Directors Meeting 8 October 18, 2004 at 7:00 P.M. owners. She noted that she was in favor of improving the district, but there were issues that the property owners need to discuss. Her main concern was that there was no property owners= meeting before the Board presented the final plans to the City. She stated that she had attended every meeting that she was informed about, but there has not been a meeting for property owners in months, which she questioned. She stated after learning in the newspaper what had happened at the last meeting and after receiving her certified letter considerably late, she learned that her property was being re-assessed for the second time in fifteen months. In the last week, many of the property owners have been comparing notes and discussing what the realities were. The current position is that there is a lot of confusion and unhappiness among the property owners. The very people who have carried this financial burden for years are the least informed. The property owners deserve to have time to figure this out. She questioned the parking meters and the assessments that she felt were wrong and needed to be sorted out before this goes on. Also, she said there needs to be more discussion and understanding about the property owner=s financial obligations, the time frame, and the options. She added that she would like to have a better idea of the accounting of the people who are working on the project and where the money is going. She would like the property owners to be able to evaluate the final budget. Mr. Owen stated that he talked to Ms. Scavo=s father, Mr. Phil Scavo, and reviewed everything in detail, answered his questions as best he could, and assumed that he shared all that with Ms. Scavo. He said that there were no meetings for many months because they were waiting to see if there were enough people who were in favor of the roundabout. He advised that the last meeting, except for the roundabout and the elevated walkway at Bridge, there have been no major changes for the CBID from its inception. The whole idea was to do the same type of thing that was done in the upper end of town. As far as the notices are concerned, The Sentinel-Record has been informed every time there has been a meeting, and they have complied with FOIA requirements. City Manager Kent Myers stated there were three comments regarding the City that he would like to respond to. One is the question about the City=s involvement in the CBID No. 3 project. He commented the City=s involvement would be the same as the involvement with the CBID No. 2 in that the City will be in charge of the demolition work and repair of basements. The cost estimate is approximately $40,000. In terms of parking on Central Avenue, the Board agreed to try parking on a six-month trial basis. The consultant, Mr. Ernie Peters, assessed the traffic conditions and determined they could allow parking on Central Avenue without a major congestion problem. With that Board of Directors Meeting 9 October 18, 2004 at 7:00 P.M. recommendation, the Board agreed to try that for six months and then make a decision whether or not to allow that parking to continue. A comment was made regarding parking meters in those parking spaces. He explained that decision has not been made yet. After the CBID is completed, the Board will have to make a decision whether or not meters are added into that area. If meters are added, the City will assume all the costs in installing those meters. 19 Proposed Ordinance No. O-04-59 An ordinance entitled AREZONING TO C-TR, COMMERCIAL TRANSITIONAL, TO INCLUDE A PARCEL OF PROPERTY OF PROPERTY LOCATED AT 121 WRIGHTS LANE.@ was taken from the agenda for consideration. A motion was made by Director Edwards, 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 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 Brunner-Maruthur, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Edwards, Wheeler, Brunner-Maruthur, Jones, Newell, Weatherford, Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 20 Proposed Ordinance No. O-04-60 An ordinance entitled AREZONING TO C-4, REGIONAL COMMERCIAL/OPEN DISPLAY, TO INCLUDE A PARCEL OF PROPERTY LOCATED AT 526 AIRPORT ROAD.@ was taken from the agenda for consideration. A motion was made by Director Edwards, duly seconded by Director Brunner-Maruthur to that the ordinance be passed. Upon discussion, Director Edwards asked for an explanation of Aopen display@; and Planning and Development Director Jerry Raetz explained that the open display of merchandise is a wide open commercial zone, which allows for automobile vehicle sales, boat sales, manufactured home sales, large display areas for outdoor merchandise. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the Board of Directors Meeting 10 October 18, 2004 at 7:00 P.M. following voted Aaye@: Directors Wheeler, Brunner-Maruthur, Jones, Newell, Weatherford, Edwards and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 21 Proposed Resolution No. R-04-265 A resolution entitled AAPPROVING A CART PILOT PROGRAM@ was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Wheeler that the resolution be adopted. Upon discussion, Mayor Bush recognized Mr. Bill Burrough, Director of Sanitation, who explained that most homes will need a 96-gallon container to accommodate the amount of waste that a home would generate in a week. . Smaller carts will be offered to the senior population.. For this program, they are asking to put out 20 containers to try this type of collection, starting December 1 and run for three months and survey those homes for their feedback. Director Brunner-Maruthur requested that more information regarding this program be provided to pass along to citizens. Mr. Burrough stated that any citizen with questions regarding this program may call the Sanitation Department at 321-6911. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Brunner-Maruthur, Jones, Newell, Weatherford, Edwards, Wheeler, Bush, total 7. Whereupon the resolution was declared passed. 22 Proposed Resolution No. R-04-266 A resolution entitled AADOPTING A COMMUNITY DEVELOPMENT BLOCK GRANT CITIZEN PARTICIPATION GUIDE AND PROVIDING FOR A CITIZEN ADVISORY COMMITTEE@ was taken from the agenda for consideration. A motion was made by Director Wheeler, duly seconded by Director Brunner-Maruthur to adopt. Upon discussion, Mr. Myers recognized Mr. Nelson Self, CDBG Coordinator, who explained that under the HUD Community Development Block Grant Program, there is a Board of Directors Meeting 11 October 18, 2004 at 7:00 P.M. requirement that a formal community participation process plan be adopted. Part of that plan is to establish an advisory committee, for which there are two major purposes: (1) they are members of the general public who advise the Board of Directors on matters that pertain to community involvement; and (2) they serve as a clearinghouse to insure there is open and free participation from the community in terms of the development of the program. Mr. Self pointed out that the Community Participation Guide builds upon what Planning Director Jerry Raetz put together last year in the City=s Consolidated Plan, which is a three-year plan. Director Jones asked Mr. Self if there was a certain number of people who could serve on the advisory committee, and Mr. Self replied that it was at the discretion of the Board. City Manager Kent Myers stated that it would be a nine-member committee diversified to the maximum extent possible with no more than two representatives of the six-board districts, which will meet on a quarterly basis. Director Jones emphasized that three representatives were needed from the Pleasant Street Association. Director Maruthur stated they also need three representatives from the Park Avenue Association. City Manager Kent Myers asked Mr. Self if there was a problem with changing the requirements from two to three representatives. Director Newell argued that all districts should have the same number of representatives. Director Maruthur explained that when there are volunteer committees, some representatives cannot attend a meeting and then there is no representation. Director Newell disagreed in that someone from District 4 should not have input on what goes on in District 2 because it is a city-wide program. Mayor Bush suggested that the representation should be increased to three per district. City Manager Kent Myers asked for clarification that the committee should be increased from nine members to eighteen. Mr. Jerry Raetz, Planning and Development Director, said that he did not think it wise to expand the committee to eighteen; and he would like to have no more than two representatives with a membership of nine. He added that the representation will change as the program changes. Assistant City Attorney Brian Albright stated that if the Board allowed a mandatory one member from each district, there would be representation from every district and the other three could be Afloaters.@ Director Weatherford agreed with Mr. Raetz to leave it as it is. Director Maruthur Board of Directors Meeting 12 October 18, 2004 at 7:00 P.M. reminded everyone of the issue that was brought before the Board a couple of years ago, where most of the commissioners on the Planning Commission were from District 6. The Board decided to change that, and the argument was that it is difficult to get people to volunteer. There are certain commissions and committees that people like to volunteer for, and there needs to be something that guarantees the people who are stakeholders in the allocation of these funds have representation. She indicated there should be three representatives from whatever district is being funded at the time and two from the other districts. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Newell, Weatherford, Edwards, Wheeler, and Bush, total 5. Voting Ano@: Directors Jones and Maruthur, total 2; motion carried. Whereupon the resolution was declared adopted. 13 Proposed Resolution No. R-04-262 A resolution entitled AADOPTING POLICIES AND PROCEDURES FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT HOUSING REHABILITATION PROGRAM@ was taken from the agenda for consideration. A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Director Maruthur stated that she would like to see the allocation amount reduced to serve more residents in the community. Mr. Jerry Raetz, Planning and Development Director, stressed that the primary goal of the program was to do as many homes as possible with the funds so as to create the greatest impact and to help the neighborhoods feel as though something was happening to promote the upgrading of homes in the area. Director Maruthur pointed out that the allocation is capped at $40,000 per home, and that will soon be absorbed and the impact would be reduced. She added because of the small amount of the grant dollars available, the maximum amount of money to be spent on individual projects should be limited until more grants can be made available. Director Newell explained that the recommended $40,000 figure was based on staff=s recommendation, based on experience from the HOME program, that the average project is going to run about $33,000. If they are running over (up to $40,000), Board of Directors Meeting 13 October 18, 2004 at 7:00 P.M. the City wants to be able to do that. If it goes below $25,000, the City is possibly going to be putting good money on top of bad money. Director Maruthur asked that the limit be capped at $28,000 per house. Mr. Bart Jones explained $40,000 is staff's recommendation, but the Board can change that. City Manager Kent Myers added that if that amount were changed, at every other Board meeting, the Directors will be looking at houses that are over $28,000 and have extended discussions on those houses. He stated they are trying to be fair and write in a large enough gap to be able to help as many people and make viable products. A motion was made by Director Maruthur to cap the limit at $28,000 per house and to have some discretion if more funds are needed to make an impact in a particular street. There being no second to the motion, the motion failed for lack of a second. Mayor Bush then called for a vote on the motion to adopt the resolution, and upon roll call, the following voted Aaye:@ Directors Newell, Weatherford, Edwards, Wheeler, Jones and Bush, total 6. Voting Ano:@ Director Maruthur; motion carried. Whereupon the resolution was declared adopted. 23 Proposed Resolution No. R-04-267 A resolution entitled AAUTHORIZING CONTINUED EMPLOYMENT BY HOT SPRINGS POLICE OFFICERS WHO HAVE CONCLUDED PARTICIPATION IN THE ARKANSAS POLICE OFFICERS= DEFERRED OPTION PLAN (D.R.O.P.)@ was taken from the agenda for consideration. A motion was made by Director Wheeler, duly seconded by Director Edwards, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers explained this is an item the Board discussed at a recent work session. Human Resources Director Minnie Lenox found out they would have to pay some social security costs and, as a result of that, the cost impact for 2005 will be increased by $18,000. Director Jones asked for clarification regarding the recommendation from the DROP program committee. Police Chief Gary Ashcraft explained that the recommendation of the committee was to put a three-year cap and continue Board of Directors Meeting 14 October 18, 2004 at 7:00 P.M. employment after the drop of the three-year cap. Director Newell stated this is a very serious issue, noting there are five different factions, ten to fifteen veteran officers, who are directly affected by this, four of whom will be faced with mandatory retirement in 2005 if this resolution is not passed. Then two more the year following, etc. Also, there are younger officers in line for immediate advancement who would probably fill the slots of those who would have to retire if this resolution is not passed. He stated it is the younger officers who are not in line for immediate advancement that he is concerned with. He said that he has heard from most people is a disillusionment, an expectation that the majority of the department had that was based on the DROP Program when it came into existence when the election was made by the veteran officers ten years ago to participate. There was an expectation among the rank and file that there would be some openings caused by forced mandatory retirement. So there is a set of unfulfilled expectations among the rank and file, the majority of the officers. He pointed out this has created a problem of morale; and he was prepared to vote against the resolution, not as a vote against the veteran officers, but a vote to fulfill the expectations of the majority of the force and to improve officer morale and, ultimately, to improve public safety for the citizens. Director Edwards asked for comments from the FOP. Director Newell stated that he was told that the FOP had decided not to take a stance. Mayor Bush recognized Detective Sherry Speer, who stated she has been with the Police Department for nine years; and Director Newell was right in his assessment of this situation. She added this is an issue that has divided the department as far as the younger officers on the new retirement system and the officers on the DROP program. She pointed out that one of the biggest contentions that the officers have heard from people who support this resolution is that they are not being loyal to their fellow officers. Speaking for herself and other officers who are present, she said that there is no question about their loyalty and administration, support and faith in the present administration in their leadership, the ability to train them, and to take over their positions in the future. She stated that one of the comments she has heard is that the people on the younger retirement system and the younger officers in line for promotion are not qualified to run the department, which is a direct reflection on the administration and the upward chain of supervision. If that is the case, then they did not do their job of training them, which she did not believe was true. She advised that the majority of officers who are against this resolution are not in line for promotion, including herself. The majority of them are people who are serving their time to serve the city as long and as well as they can. Board of Directors Meeting 15 October 18, 2004 at 7:00 P.M.  Officer Brad Haywood stated that no one was asked specifically if anyone was for or against the recommendation by the committee that was formed. No votes were taken throughout the department, and he questioned the recommendation when no officer was asked if they were for or against it. Chief Ashcraft explained that the committee was not challenged to take a vote of the department but was challenged to talk to the officers about this subject and was asked to report back to him what would be acceptable to everybody. Director Maruthur stated that the Board approved a pay schedule based on the DROP program and what they are to vote on tonight is a vote of confidence on whether the individuals who are in the senior positions are going to continue to be there or not. She commented that the officers involved in the DROP program want to continue. Director Newell disagreed with Director Maruthur that this was a vote of confidence. He said if it were, it would be easy for him because he has utmost confidence in Police Chief Gary Ashcraft, Captain Kenneth Schlidgen, Joe Williams and Captain Gary Miller. He said these are the four who will be affected next year. He stressed this vote is about the morale of the department and the public safety of the community. Director Jones asked Chief Ashcraft why it was so hard to move people up with the four seniors in the department. Chief Ashcraft replied that it would require another position. He added that the Board allows him 97 officers, a certain amount of captains, lieutenants, etc. If he asked the Board for more, that would create a rank in those positions. Deputy City Manager Lance Hudnell explained that everyone supports providing better salary increases for everybody up and down the line. Chief Ashcraft added that he will be frugal with the budget; and if he thinks they need another position, he will document it and come to the Board. Deputy City Manager Lance Mr. Hudnell added that new supervisory positions are created because there is a need for additional supervision, not because there is a need for an additional promotional opportunities. Director Edwards stated his concern is about the morale of the younger people. Chief Ashcraft agreed that he is also very concerned about morale of the 17 officers this would affect. He pointed out that the new pension plan allows them to retire to up to 85 percent of their salary; the old pension plan allowed up to 50 percent. He added that Board of Directors Meeting 16 October 18, 2004 at 7:00 P.M. many efforts have been made to make the LOPFI plan better and have succeeded. This is merely a permissive option that the Board has a right to vote on, to accept or not accept State Law. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye:@ Directors Weatherford, Edwards, Wheeler, Maruthur, Jones and Bush, total 6. Voting Ano:@ Director Newell; motion carried. Whereupon the resolution was declared adopted. 24 Board of Directors= Items for Discussion and Announcements Director Edwards complimented the police officers who work the night shift and have been helpful in reporting the street lights that were out. Director Maruthur reminded everyone that the 15th annual Garland County Leadership Prayer Breakfast will be held at the Hot Springs Civic and Convention Center on November 8, at 6:20 a.m. Tickets are available by contacting Deputy City Manager Lance Hudnell at 321-6815. Also if street lights are out, citizens may call 1-800-ENTERGY with the ID tag on the light along with the name of the street. Director Jones announced that the Health Fair will be held on Friday at the Youth Center, and the film on Friday night at the theater. 25 City Manager=s Report City Manager Kent Myers reported that tomorrow, at 8:00 a.m., the Downtown Merchants= Association will meet for an updated report from the Corps of Engineers on the downtown flood study at the Downtown Hotel. Also, on Thursday evening from 4 p.m. to 7 p.m., at Lakeside High School, the Arkansas State Highway and Transportation Department will be hosting a public involvement meeting to consider the improvements to Carpenter Dam Road, including the Shady Grove intersection. He announced that the top Board priority for 2005 was the improvements to the Math and Science School. The engineering firm, Pettit and Pettit, anticipates having their engineering report by the first of the month. Finance Director Dorethea Yates met with the Finance Director of the City of Little Rock; and they have identified some financing options they use on projects of this type. The City will also be looking at any grant opportunities available. Board of Directors Meeting 17 October 18, 2004 at 7:00 P.M. 25 (a) Presentation of CDBG Program Update by Mr. Nelson Self (b) Presentation of Financial Reports Mayor Bush requested that these two items be deferred until the next meeting. 26 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 9:30 p.m., to meet again on Monday, November 1, 2004, at 7:00 p.m. ATTEST:________________________ APPROVED:________________ _________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 18 October 18, 2004 at 7:00 P.M.