Board of Directors

MINUTES BOARD OF DIRECTORS MEETING DECEMBER 6, 2004, AT 7:00 P.M. The regular meeting of the Board of Directors was held on M onday, December 6, 2004, at 7:00 p.m., Board Chambers, City Hall, with M ayor M ike Bush presiding. The invocation was given by M s. Terry Jernigan, and Pledge of Allegiance to the Flag was led by M ayor Bush. M ayor Bush called the meeting to order at 7:00 p.m. 1 Roll Call Roll call was as follows: Present: Directors Elaine Jones, Burt Newell, Carroll Weatherford, Bill Edwards, and M ike Bush, total 5. Absent: Director Peggy Brunner-M aruthur and Director Bob Wheeler, total 2. 2 Approval of Agenda A motion was made by Director Edwards, duly seconded by Director Jones, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of November 15, 2004 Board Meeting A motion was made by Director Edwards, duly seconded by Director Weatherford, that the minutes of the November 15, 2004 Board M eeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests M ayor Bush recognized students of the Grace Academy, who are members of the robotics team, and chose to investigate city parks for their project and the use of wheelchairs in the parks.  M ayor Bush advised that Director Wheeler has some health problems and probably will not be attendingthe remainder of the Board M eetings. Possibly at the next meeting, Director Wheeler’s daughter may submit a statement on his health. CONS ENT AGENDA The Consent Agenda consisted of the following: 5 Public S afety Report (November 17, 2004). 6 Proposed Resolution No. R-04-286 Approving Certain Bid Awards - City Pit for Public Works/Utilities (annual supply contract awarded to John F. Jenkins as primary and Spa City Gravel as alternate). 7 ProposedResolution No. R-04-287 Extending an Agreement with Jordan, Woosley, Crone and Keaton for Audit Services for the City. 8 Proposed Resolution No. R-04-288 Extending an Agreement with Regions Bank for the Provision of Certain Banking Services for the City. 9 Proposed Resolution No. R-04-289 Extending an Agreement with FleetCor Technologies, Inc. to Provide Fleet Fueling and Fuel M anagement Services for the City. 10 Propos ed Resolution No. R-04-290 Extending a Letter of Engagement with M organ Keegan for the Provision of Investment Banker Services. 11 Proposed Resolution No. R-04-291 Approving the Extension of Hot Springs M unicipal Water and Fire Service to Champion Baptist College Dormitory on Rector Street. 12 Proposed Resolution No. R-04-292 Approving the Extension of Hot Springs M unicipal Water and Wastewater Service to High M eadow Subdivision. Board of Directors 2 December 6, 2004 at 7:00 P.M . 13 Proposed Resolution No. R-04-293 Approving the Extension of Hot Springs M unicipal Water and Wastewater Service to Shady Ridge Subdivision. 14 Proposed Resolution No. R-04-294 Approving the Extension of Hot Springs M unicipal Water and Wastewater Service to Ridgewood Subdivision. 15 Proposed Resolution No. R-04-295 Approving the Extension of Hot Springs M unicipal Water and Wastewater Service to Rachel Wood Subdivision. (Removed from the Consent Agenda for S eparate Consideration) 16 Propos e d Resolution No. R-04-296 Approving Change Order No. 5 with Diamond Construction for Central Avenue Water Line Improvements. 17 ProposedResolution No. R-04-297 Approving an Application of a Loan with the Arkansas Soil and Water Conservation Commission, State Revolving Loan Fund, for the Southwest Wastewater Treatment Plant and Various Wastewater System Improvements and Repealing Resolution No. 5586. 18 Proposed Resolution No. R-04-298 Approving a Disadvantaged Business Enterprise Program for Hot Springs Intracity Transit. 19 Propos e d Resolution No. R-04-299 Accepting a Grant from Weyerhaeuser Company Foundation for the Hot Springs Creek Greenway. 20 Proposed Resolution No. R-04-300 Approving an Agreement with AVFUEL Corporation for Aviation Fuel at the Airport. 21 Proposed Resolution No. R-04-301 Approving a Contract with Guardian Life Insurance Company of America for Employee Group Life and AD&D Insurance. Board of Directors 3 December 6, 2004 at 7:00 P.M . 22 Propos e d Resolution No. R-04-302 Approving a Contract with Delta Dental Plan of Arkansas, Inc. for Employee Group Dental Insurance. (Removed from Consent Agenda for S eparate Consideration) A mot ion was made by Director Newell, duly seconded by Director Edwards, that the Consent Agenda be approved, as amended. Upon discussion, City M anager Kent M yers recommended that Item No. 15 (Proposed Resolution No. R-04-295 Approving the Extension of Hot Springs M unicipal Water and Wastewater Service to Rachel Wood Subdivision) be tabled until the next meeting. Also, Item No. 22 (Proposed Resolution No. R-04-302 Approving a Contract with Delta Dental Plan of Arkansas, Inc. for Employee Group Dental Insurance) be removed from the Consent Agenda and considered under New Business. M ay or Bus h then called for a vote on the motion to approve the Consent Agenda, as amended; and upon roll call, the following voted “aye”: Directors Jones, Newell, Weatherford, Edwards, and Bush, total 5. Absent and not voting: Directors Brunner-M aruthur and Wheeler, total 2; motion unanimously carried. NEW BUS INES S 23 Proposed Resolution No. R-04-303 A resolution entitled, “A RESOLUTION APPROVING A CONDITIONAL USE PERM IT TO COM M UNITY COUNSELING SERVICES FOR A GROUP LIVING FACILITY AT 1622 CENTRAL AVENUE (FOUNTAIN M OTEL),” was taken from the agenda and read by title only (Appeal). A motion was made by Director Jones, duly seconded by Director Weatherford, that the resolution be adopted as read. Upon discussion, M r. Jerry Raetz, Planning and Development Director, explained that the application for the group living facility was considered by the Planning Commission in September for the first hearing. During that public hearing, several neighbors voiced concerns; and the agent, who was a real estate agent for the applicant, was unable to clearly answer the questions raised by the neighbors. The Planning Commission tabled it in September, and the applicant met with the neighbors to discuss the plans in more detail. The second hearing was held in October, and Board of Directors 4 December 6, 2004 at 7:00 P.M . Community Counseling Services was represented by an employee who answered the questions to the satisfaction of the majority of the Planning Commissioners. One of the neighbors spoke in favor of the proposal at that time, and the Planning Commission voted 5 to 1 to approve the conditional use permit for a group living facility at 1622 Central Avenue. M s . K erry Lockwood-Owen spoke in opposition noting that she and her husband are property owners at 209 Hobson. She commended Community Counseling Services for its work but spoke in opposition as a legal guardian and representative of her brother, who has been mentally ill for over 20 years. She pointed out how the location on Central Avenue would affect visitors observing this in such an area that has deteriorated. She commented that even though they state it is not for violent people, those who are mentally ill have no control over that. She noted this area is also known for large drug activity; and in order to mask their mental illness, many of these people have drugand alcohol addictions. She emphasized this is a bad neighborhood to encourage that sort of behavior for those who are trying to attempt some kind of semblance of normal or healthy living. She pointed out that two doors down is a liquor store, and there is drug dealing in the area. She asked that the Board consider another location. M r. D avid Campbell, a member of the Planning Commission, said when this was first considered by the Commission, he did not believe this was the appropriate location. However, after furt her dis cussion and an explanation given on how and what they were going to do, then he believed this might be an anchor to start cleaning up that neighborhood. M r. Ray Owen, Jr. commented that he owned a building at the intersection of Hobson and Central and pointed out that the neighborhood is improving through the efforts of M r. Glenn Gallas and other residents. He spoke of improvements in the area, such as the administrative office for Hot Springs School District, remodeling of a paint company, and rebuilding on the old Shoney’s site. He noted there is a criminal element in the neighborhood, and the police are doing a good job trying to keep it under control; but drugs are readily available in that neighborhood. He said he is concerned about the well-being of the people who will be residents of the proposed facility being exposed to the open availability of drugs. He mentioned that no one will want to purchase property nearby to build or renovate if there is a facility with a large security fence around it. He asked that the Board deny this conditional use. M r. Jack Bennie stated he has a business at the end of the block and said it is inappropriate to have this facility down the street from him. He added that a fence will not deter the alcohol or drugs; and this facility will be in the midst of it. Also, he had a conversation with M r. M artin, who said this facility will be for mentally impaired people and group living to acclimate them to live on their own. He also asked M r. M artin if there will be any criminal element there, and M r. M artin said Board of Directors 5 December 6, 2004 at 7:00 P.M . there would be. Also, there will be people who did not have to serve any jail time because of a mental defense, which concerns him. M r. Gary Lax stated he has an office at 211 Hobson and distributed to the Board a list of service calls from the Police Department to three businesses (Capri M otel, Fountain M otel and El Rancho M otel) that are close to the proposed site. Within that six-month period, there have been 127 service calls from the Police Department, which concerned him. He noted that M r. M artin provides an excellent service to those who need it. However, the people he services are the most vulnerable to the criminal element; and there is no way, unless it is a maximum security facility, that they will be able to avoid drugs, alcohol or prostitution. He emphasized this does not seem to be an appropriate location for the proposed facility. Director Edwards expressed concern about the decrease in property values in the area. M r. Chris Polychron, one of the owners of M cAdams Realty, stated they have two buildings in that area (208 and 214 Hobson). In regard to the effect on property values, he said if there is a chain link fence next to a property they are trying to sell, it has an adverse effect. Therefore, in his opinion, the property values would decrease if there is a chain link fence. M r. Monty Everhart, property owner at 1601 Central, stated that in regard to property values, he purchased his property from the bankruptcy court four or five years ago; and that property doubled in value during that time to the present. He noted that the previous predecessors have worked hard to improve the image of the City. He said that he supports Community Counseling but exposing that facility to 30,000 cars on Central Avenue and subjecting those people to the element does not have a positive effect. M r. Bob Hanson, a member of the Planning Commission, said he is speaking as a citizen; and many children walk to Jones School to catch a bus. Also, there is a Children’s Center in this vicinity, as well as several day care centers and people walking down the streets; but they are afraid to be in that area. He noted there is an abatement law, and the Directors need to give the Police Department, City Attorney and Prosecutor the tools to close these houses or businesses of nuisance. He said the people he talked with in that neighborhood did not support it. M r. Don M artin noted there are thousands of people who come to Hot Springs who are chronically mental ill and are still here; but they are not seen. He advised that Community Counseling Center treats between 4,000 to 5,000 people a year; and about 1,700 of those people have chronic, long-term mental illnesses. He advised that the people who are criminally mentally ill come under Act 911; and since that Act was enacted about six years ago, there have been only five people who were under that Act and have two at the present time. He stated when they are Board of Directors 6 December 6, 2004 at 7:00 P.M . released from the hospital, they are released to the custody of the court; and there is control over them. He added that the people they treat are not under any commitment and are free to come and go. Some of them work part-time and full-time, and many have cars and bank accounts. He said the Counseling Center makes sure they are registered and all vote. He advised this will not be a medical facility, but there will be a nurse there when needed. Also, there will be a full-time manager and two assistant managers; and the case managers will be in and out of their apartments on a regular basis. He stated there has been discussion about fences, but that is not to keep the residents in but to keep neighbors out. He noted there is barbed wire now on the north side and on the west side of the p roperty. He said this is a permanent residence for these people. He advised there is also the possibility they may be able to open an entrance out on Watt Street. M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: M ayor Bush. Voting “no:” Directors Newell, Weatherford, Edwards, and Jones, total 4. A bs ent and not voting Directors Brunner-M aruthur and Wheeler, total 2; motion failed. Whereupon the resolution was declared failed. 24 Proposed Resolution No. R-04-304 A resolution entitled, “A RESOLUTION APPROVING A REQUEST FROM JOHN AND BRENDA JOHNSON AT 110 GRAYSON FOR REIM BURSEM ENT OF WASTEWATER IM PACT FEES,” was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Newell, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, advised that staff received a request from John and Brenda Johnson of 110 Grayson Street for reimbursement of their $500 wastewater imp act fee. Staff’s recommendation is to deny their request. He stated the Johnson’s did experience some financial burden related to repairs to their septic tank and then having to make connection to the City’s sewer system and pay a plumber. According to the impact fee ordinance related to the waiver, the Board can waive impact fees in order to promote economic development and a provision for affordable housing. However, this does not seem to meet that criteria. M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “no”: Directors Jones, Newell, Weatherford, Edwards, and Bush, total 5. Absent and not voting: Directors Brunner-M aruthur and Wheeler, total 2; motion unanimously failed. Whereupon the resolution was declared failed. Board of Directors 7 December 6, 2004 at 7:00 P.M . 25 Proposed Ordinance No. O-04-64 An ordinance entitled, “AN ORDINANCE TO REZONE TO C-3, OFFICE/NEIGHBORHOOD COM M ERCIAL, TO INCLUDE A PARCEL OF REAL PROPERTY LOCATED AT 936 GOLF LINKS ROAD, ZONED R-2 , SUBURBAN RESIDENTIAL” was taken from the agenda for consideration. A motion was made by Director Edwards, duly seconded by Director Weatherford, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Edwards, duly seconded by Director Jones, that the ordinance be passed as read. Upon discussion, M r. Jerry Raetz, Director of Planning and Development, stated this is a parcel of property at 936 Golf Links Road and is approximately 100 feet by 300 feet in depth. This is an extension of the C-3 zone to include this property, and the owner wishes to develop a personal fitness center at this location. The Planning Commission unanimously recommended the rezoning. M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Jones, Newell, Weatherford, Edwards, and Bush, total 5. Absent and not voting: Directors Brunner-M aruthur and Wheeler, total 2; motion unanimously carried. Whereupon the ordinance was declared passed. 26 Proposed Ordinance No. O-04-65 An ordinance entitled, “AN ORDINANCE TO REZONE TO C-3, OFFICE/NEIGHBORHOOD COM M ERCIAL, TO INCLUDE A PARCEL OF REAL PROPERTY LOCATED AT 113 NICKELS STREET ZONED R-4, M EDIUM /HIGH DENSITY RESIDENTIAL,” was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Mr. Ray Owen, Jr. advised that Peters Paint wants to expand their building to the north. M r. Brooks Clem has talked with the neighbors, and everyone seems to support it. Board of Directors 8 December 6, 2004 at 7:00 P.M .  M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Jones, Newell, Weatherford, Edwards, and Bush, total 5. Absent and not voting: Directors Brunner-M aruthur and Wheeler, total 2; motion unanimously carried. Whereupon the ordinance was declared passed. 27 Proposed Ordinance No. O-04-66 An ordinance entitled, “AN ORDINANCE TO REZONE TO C-2, GENERAL BUSINESS, TO INCLUDE A PARCEL OF REAL PROPERTY LOCATED AT 133 GREENWOOD STREET ZONED C-TR, COM M ERCIAL TRANSITIONAL ,” was taken from the agenda and read by title only. A motion was made by Director Edwards, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Edwards, duly seconded by Director Jones, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Jones, Newell, Weatherford, Edwards, and Bush, total 5. Absent and not voting: Directors Brunner-M aruthur and Wheeler, total 2; motion unanimously carried. Whereupon the ordinance was declared passed. 28 Proposed Ordinance No. O-04-67 An ord Board of Directors 9 December 6, 2004 at 7:00 P.M .  M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following vot ed “ ay e”: Directors Jones, Newell, Edwards, and Bush, total 4. Voting “no”: Director Weatherford. Absent and not voting: Directors Brunner-M aruthur and Wheeler, total 2; motion failed.. Whereupon the ordinance was declared failed. Note: According to the Zoning Code, it takes a 2/3 majority vote of the Board to pass a rezoning. Therefore Proposed Ordinance No. O-04-67 failed to pass. 29 Proposed Ordinance No. O-04-68 An ordinance entitled, “AN ORDINANCE LEVYING A SUPPLEM ENTAL ANNUAL ASSESSMENT FOR THE CENTRAL BUSINESS IM PROVEM ENT DISTRICT NO. 2 IN THE CITYOF HOT SPRINGS, ARKANSAS, FOR 2005,” was taken from the agenda for consideration. A motion was made by Director Edwards, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Jones, duly s econded by Director Edwards, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Jones, Newell, Weatherford, Edwards, and Bush, total 5. Absent and not voting: Directors Brunner-M aruthur and Wheeler, total 2; motion unanimously carried. Whereupon the ordinance was declared passed. 30 Proposed Resolution No. R-04-305 A resolution entitled, “A RESOLUTION APPROVING A CONTRACT FOR THIRD- PARTYADMINISTRATOR FOR THE CITY’S SELF-FUNDED EM PLOYEE GROUP HEALTH INSURANCE PROGRAM ,” was taken from the agenda and read by title only. A mot ion was made by Director Edwards, duly seconded by Director Newell, that the resolution be adopted as read. Upon discussion, M s. M innie Lenox, Human Resources Director, explained this is awarding a contract for self-insured TPA services to Healthscope Benefit and JM R Health and Life. The City solicited RFP’s for group medical insurance and received proposals from various agencies, TPA’s agents and brokers. After considering the proposals, the selection committee selected those TPA’s that use the employer’s health coalition and rated them. They narrowed it down to two TPA’s and four agents and brokers. After presentations from the TPA’s and the brokers, the committee, Board of Directors 10 December 6, 2004 at 7:00 P.M . through the rating process, selected Healthscope Benefits as the TPA and Kathy Otwell with JM R for life and health as the agent/broker. City M anager Kent M yers introduced Kathy Otwell with JM R. M s. Otwell recognized representatives from Healthscope (M s. B.J. Himes and M r. Jim Johnson). M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Jones, Newell, Weatherford, Edwards, and Bush, total 5. Absent and not voting: Directors Brunner-M aruthur and Wheeler, total 2; motion unanimously carried. Whereupon the resolution was declared passed. 22 Proposed Resolution No. R-04-302 A resolution entitled, “A RESOLUTION EXTENDING A CONTRACT WITH DELTA DENTAL PLAN OF ARKANSAS,” was taken from the agenda and read by title only. A mot ion w as made by Director Jones, duly seconded by Director Edwards, that the resolution be adopted as read. Upon discussion, M s. M innie Lenox, Human Resources Director, advised that after the RFP’s had been received and rated, the committee discovered that the option the committee selected and voted on was not the exact plan the City presently has. This plan would have changed the benefits for the employees, such as the endodontics and oral surgery would have been moved from basic services, which is paid at 80 percent to major services, which is paid at 50 percent. The deductible would have been changed from $75 times three to $75 per person. Therefore, in the best interest of the employees, the committee went back with Delta Dental; and they agreed to not raise the rates if the City kept the plan as it was. She noted this is actually a renewal of the contract. M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Jones, Newell, Weatherford, Edwards, and Bush, total 5. Absent and not voting: Directors Brunner-M aruthur and Wheeler, total 2; motion unanimously carried. Whereupon the resolution was declared passed. City M anager Kent M yers said he had previously mentioned on Item No. 15 (Proposed Resolution No. R-04-295 Approving the Extension of Hot Springs M unicipal Water and Wastewater Service to Rachel Wood Subdivision) that the City had not received an annexation petition. He noted that he was not aware the developer had changed the name of the subdivision from Rose G arden to Rachel Wood when he asked that the resolution be tabled. However, an annexation Board of Directors 11 December 6, 2004 at 7:00 P.M . p et it ion has been received for Rachel Wood Subdivision and is contiguous to the City limits. Therefore, he asked that this be considered by the Board. A motion was made by Director Weatherford, duly seconded by Director Jones, that the resolution be added back to the agenda; and upon voice vote, the motion unanimously carried. 15 Proposed Resolution No. R-04-295 A res olution entitled, “A RESOLUTION APPROVING THE EXTENSION OF HOT SP RIN GS M UNICIPAL WATER AND WASTEWATER SERVICE TO RACHEL WOOD SUBDIVISION,” was taken from the agenda and read by title only. A motion was made by Director Weatherford, duly seconded by Director Edwards, that the res olut ion be adopted as read; and upon roll call, the following voted “aye”: Directors Jones, N ew ell, Weatherford, Edwards, and Bush, total 5. Absent and not voting: Directors Brunner- M arut hur and Wheeler, total 2; motion unanimously carried. Whereupon the resolution was declared passed. OTHER BUS INES S 30 Board of Directors Items D irect or J ones expressed appreciation for the City allowing her to attend a workshop conducted by the National League of Cities in Indianapolis, Indiana, this past week. M ost of the workshops were on neighborhood revitalization, affordable housing, and vacant lots. She will pass on her information to the Planning Department. She noted that the City’s Planning Department is ahead of some of the larger cities. 31 City Manager’s Report City M anager Kent M yers gave the following report: 1. Over the last two weeks, progress has been made on CBID No. 3; and the project is ready to go out to bid and considered by the Board next month. Board of Directors 12 December 6, 2004 at 7:00 P.M .  2. T here are problems filling some advisory committee vacancies (Board of Zoning Adjustment, Occupation Tax Advisory Board, the Transportation Advisory Committee, and the Historic District). He urged assistance from the Directors in filling the vacancies. 32 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:05 pm., to meet again on M onday, December 20, 2004, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk M ike Bush, M ayor Board of Directors 13 December 6, 2004 at 7:00 P.M .