Board of Directors

MINUTES BOARD OF DIRECTORS MEETING MARCH 21, 2005, AT 7:00 P.M. The regular meeting of the Board of Directors was held on M onday, M arch 21, 2005, at 7:00 p.m., Board Chambers, City Hall, with M ayor M ike Bush presiding. The invocation was given by M r. Harris Kimbell, 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 Peggy M aruthur, Elaine Jones, Carroll Weatherford, Bill Edwards, Tom Daniel, and M ike Bush, total 6. Absent: Director Steve Smith. 2 Approval of Agenda A motion was made by Director Edwards, duly seconded by Director Daniel, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of March 7, 2005 Board Meeting A motion was made by Director Weatherford, duly seconded by Director Jones, that the minut es of the M arch 7, 2005 Board M eeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests No guests were present for recognition. CONS ENT AGENDA The Consent Agenda consisted of the following: 5 Public S afety Report (M arch 9, 2005). 6 Bu dge t Transfers - (a) Clinton Plaza Elevator Inspection [$5,710]; (b) Parks Security [$1,800]; and (c) Board Laptop Computers [$10,500]. 7 ProposedResolution No. R-05-83 Approving Certain Bid Awards (a) Herbicide Services - Various Departments [annual supply contract awarded to G. C. Brown]; and (b) Paving - Public Works [annual supply contract awarded to M artin M arietta]. 8 Propos e d Resolution No. R-05-84 Approving Change Order No. 4 with Coakley Construction for Utility Relocations on Higdon Ferry Road and Dr. M artin Luther King, Jr. Interchange. 9 Proposed Resolution No. R-05-85 Approving the Extension of Hot Springs M unicipal Water and Wastewater Service on Garrison Between Files Road and Central Avenue. 10 Proposed Resolution No. R-05-86 Approving the Extension of Hot Springs M unicipal Water and Wastewater Service for the Garden Home Development off M cDonald Loop (Removed from Consent Agenda for separate consideration). 11 Proposed Resolution No. R-05-87 Appointing David Campbell to the Planning Commission. 12 Proposed Resolution No. R-05-88 Authorizing the Filing of a Grant Application with the Federal Emergency M anagement Agency 2005 Fire Act Grant Program. 13 ProposedResolution No. R-05-89 Authorizing the M ayor to Execute Contract Addendum No. 4 with Grimes Consulting Engineers (Taxiway “D” Improvement Project). 14 Proposed Resolution No. R-05-90 Awarding a Contract for Wade Street Park Lighting to Gigerich Electrical, Inc. (Removed from Consent Agenda for separate consideration). Board of Directors M eeting 2 M arch 21, 2005 at 7:00 P.M . 15 Proposed Resolution No. R-05-91 Awarding a Contract to Catlett Engineering, Inc. for Engineering Services in Developing M S4 Documents in Regard to a Stormwater Ordinance. 16 Proposed Resolution No. R-05-92 Authorizing the Filing of a Grant Application with the Department of Justice Pursuant to the Local Law Enforcement Block Grant Program. 17 Proposed Resolution No. R-05-93 Approving Addendum No. 1 to the Agreement for Auditing Services with Jordan, Woosley, Crone and Keaton, Ltd. 18 Proposed Resolution No. R-05-94 Acknowledging the Donation of Certain Fine Art by Tom Payne Studio. 19 Proposed Resolution No. R-05-95 Authorizing the M ayor to Execute a Lease Agreement Between the City of Hot Springs, Arkansas, and Hot Springs Intracity Transit (Transportation Depot). 20 Proposed Resolution No. R-05-96 Approving a Certain Street Name (Linden Park Lane). 21 ProposedResolution No. R-05-97 Adopting Revisions to the 2005 Budget by Authorizing the Addition of a Part-Time Employee in the Traffic Services Department. 22 Proposed Resolution No. R-05-98 Requesting the Transfer of Federal-Aid Enhancement M onies from the Hot Springs Highway 7/Bath Street Crosswalk Project to Pedestrian Improvements Within the Central Business Improvement District No. 3. 23 ProposedResolution No. R-05-99 Authorizing Revisions to the 2005 Budget (Water Bond Projects). 24 ProposedResolution No. R-05-100 Awarding a Contract to Atoka, Inc. for HVAC System Engineering Services (Arkansas School for M athematics, Sciences and the Arts HVAC and Building Repairs). Board of Directors M eeting 3 M arch 21, 2005 at 7:00 P.M .  A motion was made by Director Edwards, duly seconded by Director Jones, that the Consent Agenda be approved. Upon discussion, Director M aruthur requested that Item No. 14 (Proposed Resolution No. R-05-90 A warding a Contract for Wade Street Park Lighting to Gigerich Electrical, Inc.) be removed from the Consent Agenda for separate consideration. Director Weatherford requested that Item No. 10 (Proposed Resolution No. R-05-86 Approving the Extension of Hot Springs M unicipal Water and Wastewater Service for the Garden Home Development off M cDonald Loop) be removed from the Consent Agenda for separate consideration. 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 M aruthur, Jones, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Smith; motion unanimously carried. NEW BUS INES S 10 Proposed Resolution No. R-05-86 A resolution entitled, “A RESOLUTION APPROVING THE EXTENSION OF WATER A N D WASTEWATER SERVICE FOR THE GARDEN HOM E DEVELOPM ENT OFF M cDONALD LOOP,” was taken from the agenda and read by title only. A motion was made by Director Edwards, duly seconded by Director M aruthur, that the resolution be adopted as read. Upon discussion, Director Weatherford commented this piece of property is in line of site across the lake, and the Board previously discussed this issue in another location. He added that the Board is going to accept a piece of property tonight into the City and is taking it in because of line of site (Garvan Woodland Gardens). He commented that he would like to see it annexed into the City if it is in line of site. A motion was made by Director Weatherford, duly seconded by Director Edwards, that the resolution be tabled until the next meeting; and upon voice vote, the motion unanimously carried. 14 Proposed Resolution No. R-05-90 Board of Directors M eeting 4 M arch 21, 2005 at 7:00 P.M .  A res olution entitled, “A RESOLUTION AWARDING A CONTRACT FOR WADE STREET PARK LIGHTING TO GIGERICH ELECTRICAL, INC.,” was taken from the agenda and read by title only. A mot ion was made by Director Jones, duly seconded by Director M aruthur, that the resolution be adopted as read. Upon discussion, M r. Jerry Raetz, Planning and Development Director, explained this is a part of the community development block grant project. Gigerich Electrical was the low bidder and is to provide six new poles with lighting at the Wade Street Park. D irect or M aruthur questioned when he held the neighborhood summit, and M r. Raetz advised that it was in the fall of 2003. Director M aruthur noted she wanted this item considered separately because it was presented at the summit that the funds from the CDBG would be used for rehabilitation for owner/occupied housing in the City. She said she is not opposed to the lights and would prefer that Parks and Recreation pay for it, but she just wanted to make sure that everyone knew this project was coming out of CDBG. M r. Raetz replied this was also part of the consolidated plan that was submitted to HUD, and this is an eligible neighborhood for any public or private improvements. D irector M aruthur mentioned that citizens are calling to see if they are eligible, and she wanted to make sure they understood how the City is spending the monies that are allocated. Director Weatherford pointed out that it is not only for housing but for sidewalks also. M r. Raetz noted there are some public works projects for sidewalk improvements in certain parts of the town besides the single, family owner/occupied housing rehab project; and the housing rehab project is taking 70 percent of the budget. The remainder of the budget is being divided among community projects. D irector M aruthur said it was her understanding that during the first phase, some rock retaining walls and sidewalks were to be done in the Park Avenue area and questioned why those were not done. M r. Raetz explained there have been some budget amendments, and those particular projects were delayed until 2006 to allow for investment in a couple of other projects. He added there have been some budget shifts to allow for other types of low to moderate income housing. M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors M aruthur, Jones, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Smith; motion unanimously carried. Whereupon the resolution was declared adopted. Board of Directors M eeting 5 M arch 21, 2005 at 7:00 P.M .  PUBLIC HEARING 25 Public Hearing on Issuance of Industrial Development Revenue Bonds (Magic S prings) T his being the time and date set for a public hearing on the issuance of Industrial D evelopment Revenue Bonds for the purpose of financing certain industrial facilities (M agic Springs), M ayor Bush declared the public hearing open. There being no comments, the public hearing was declared closed. 26 Proposed Ordinance No. O-05-28 A n ordinance entitled, “AN ORDINANCE AUTHORIZING THE ISSUANCE OF INDUSTRIAL DEVELOPM ENT REVENUE BONDS FOR THE PURPOSE OF FINANCING CERTAIN INDUSTRIAL FACILITIES; AUTHORIZING A TRUST INDENTURE SECURING T H E BONDS; AUTHORIZING A LOAN AGREEM ENT BETWEEN THE CITY OF HOT SP RIN G S, ARKANSAS, AND M AGIC SPRINGS DEVELOPM ENT CO., L.L.C.; AUTHORIZING THE SALE OF THE BONDS AND THE EXECUTION OF A BOND PURCHASE AGREEM ENT IN CONNECTION THEREWITH; AUTHORIZING AND PRESCRIBING OTHER M ATTERS PERTAINING THERETO; AND DECLARING AN Board of Directors M eeting 6 M arch 21, 2005 at 7:00 P.M .  A resolution entitled, “A RESOLUTION ADOPTING A POLICY FOR THE EXTENSION OF WATER AND WASTEWATER SERVICES,” was taken from the agenda and read by title only. A mot ion w as made by Director Edwards, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, City M anager Kent M yers stated that following a recent Board Work Ses s ion, the Board concluded that it wanted to consider two amendments to the water and wastewater policy. The first is in regard to annexation. When a property owner approaches the City wantingwater and wastewater services, currently the language in the policy states that the extension of utilities may not be approved unless the property is annexed into the City. The Board suggested changing the wording to “shall not” be approved without annexation into the City. He commented t hat w it h t hat provision, any annexation would have to come to the Board for consideration. Therefore, the Board would still have the opportunity to vote for or against each annexation. The second is regarding extension requests. He said there are areas in the County that are five or six miles from the City limits; and rather than having those developers appear before the Board requesting the extension of water and wastewater services, the Board and staff felt they should be able to deal with those on an administrative basis. He noted those are clearly areas the City does not want to annex, and the developer will pay all costs for the extension of the utilities. The Board agreed t hat staff could handle those issues and would report on a monthly basis to the Board anything that happened in the County that was approved for extension of water and wastewater services. He added this relates only to contiguous property, so if a property owner is a mile or two from the city limits, these changes would not impact those. M r. Kenneth Orrell, resident in the Highway 70 West area, stated that previously the M ayor said it was apparent that the wishes of the residents in the Highway 70 West area are to be left alone; and the Board voted at that time to do so. He noted that the City is now wanting to require anyone who ties onto a city utility to annex into the City. M ayor Bush pointed out this refers to property that is contiguous to the City and not property two or three miles out Highway 70 West. M r. Orrell requested that the Board table this resolution until there can be more input from residents in the Highway 70 West area. City Manager Kent Myers advised that the 70 West area he is referring to is between the City and M ajestic Lodge Road, and those areas are already covered by water and wastewater services. He stressed this would have no bearing on those areas. He stated the incorporation area is five miles Board of Directors M eeting 7 M arch 21, 2005 at 7:00 P.M . from the city limits as required by state law so that would not be impacted, and the other area is already served by water and wastewater. Therefore, this has no impact on it. M r. Orrell said he has yet to find anyone in that area, even if it joins them, who wants to be tied onto it. City Manager Kent M yers pointed out there have been about eight property owners who have appeared before the Board in the last six months petitioning for annexation. M r. Ray Owen, Jr., 110 Leigh Circle, stated he does not have any problem with what staff has proposed in regard to staff negotiating and discussing with people who are noncontiguous with the City. He noted that changing “may” to “shall” gives up a right the City already has. He said the Board has the opportunity to review these one at a time as they come before the Board at the present time; and the Board can always approve or deny. He commented this is an opportunity for the Board to take a look and allow input from staff as to whether or not they think the City should annexthe property and whether the Board could not require annexation but allow the people to have water or wastewater. M ayor Bush questioned why not make it “shall” instead of “may” if they are contiguous. Board of Directors M eeting 8 M arch 21, 2005 at 7:00 P.M . the policy says “the City M anager and Utility Director have the authority to approve, deny, or modify requests for utility extensions from developers contingent upon the developer paying all the costs associated with installing the utility extension.” She said she did not believe that is needed, and the Board M eetings are televised so the City and County can watch government in action. Therefore, she supported all of the requests being considered by the Board. She noted the residents in the Highway 70 West area are not the only people who are not in favor of annexation. She said she believes the forced annexation, that has been history, has not gone away nor have the fears. She stressed that she supports each case coming before the Board. As far as the developers, she stated she does not feel comfortable making the developers annex into the City to get the water. She pointed out there are many people who do not understand the word “contiguous,” and this needs to be explained. M ayor Bush pointed out these are certain rules and regulations regarding the request for utility extensions, and he does not believe the Board has to hear everyone of the requests. He stated if they are five miles out, the City M anager and Utility Director can approve them; and if they want to appeal, then they can appear before the Board. Director Maruthur said even if it comes before the Board and is a quick vote, the public gets to hear who is receiving the services. City M anager Kent M yers explained that the purpose of this resolution was to help developers, and they would not have to appear before the Board. Therefore, they could speed up their development process by several weeks. He stressed that water and wastewater have to be designed to City standards and have to be constructed and paid for by the developer. He added it has to be a certain distance from the city limits that it is not conducive for annexation to the City. He advised that staff will continue to report these to the Board as part of the public record, and that is required by the changes. He pointed out that it is not meant to be any major change to the regulations, and it was not presented in that way. Director Jones noted it states if the developer is not pleased with it, they still come before the Board. City M anager Kent M yers commented there will probably be less than five percent of the cases. A mot ion was made by Director M aruthur, duly seconded by Director Jones, that the res olution be tabled until the next Board M eeting so those who have concerns will have an opportunity to voice those concerns; and upon roll call, the following voted “aye”: Directors Daniel, M aruthur, Jones, and Weatherford, total 4. Voting “no”: Directors Edwards and M ayor Bush, total 2. Absent and not voting: Director Smith; motion carried to table. Board of Directors M eeting 9 M arch 21, 2005 at 7:00 P.M . 28 Proposed Resolution No. R-05-102 A res olution entitled, “A RESOLUTION AWARDING A CONTRACT TO NRS CO N SU LTING ENGINEERS FOR ENGINEERING SERVICES RELATED TO THE SOUTHWEST WASTEWATER TREATM ENT PLANT AND RELATED FACILITIES, THE HIGHWAY 7 NORTH GRAVITY SEWER LINE REHABILITATION PROJECT AND THE HIGHWAY 7 SOUTH BRIDGE FORCE M AIN RELINING PROJECT,” was taken from the agenda and read by title only. A mot ion was made by Director Jones, duly seconded by Director M aruthur, that the resolution be adopted as read. Upon discussion, M r. Vernon Williams, Utilities Engineer, explained the City has an existing contract with NRS Engineering, which has been working on the design of the wastewater treatment plant for several years. Director Weatherford commented this is an ongoing, outside engineering service; but the City seems to be doing a lot of outside engineering services which concerns him that these are not being done in-house. He noted there is an area in his district that has a bad leak in M ontague Gardens, but nothing has been done. Also, there is another area on M alvern and Lowery that has been torn up for four to six weeks, and no action has been taken. M r. Williams commented that in regard to M ontague Gardens, he is in the process of des igning the relocation for that. As far as work on Lowery and M alvern, there is a pressure reducing valve vault that needs to be raised to grade for the Highway Department. That has bas ically been designed, and the City is in final negotiations with the Highway Department on exactly how they want the vault repaired. He stated it is in a lane of traffic, and they are concerned about the methods used to replace that vault. Therefore, the City needs to minimize the amount of time that it has to close a lane of traffic. City M anager Kent M yers commented that the City is contracting out a lot of water and w as tewater services. He added the primary reason is due to the large amount of water and wastewater work going on in the City, and this is going to be a major financing through the state. Director Edwards noted that the City did a good job on Fifth Street near Grand Avenue and would like to see it do more, if possible. Board of Directors M eeting 10 M arch 21, 2005 at 7:00 P.M .  M r. Larry Stone, with NRS Engineering, stated that the majority of the work in this contract is construction phase contract services. In regard to the Highway 7 North gravity sewer line, he is working with the Utilities Department in doing this; and the Utilities Department is doing a lot of the field work. He pointed out that the NRS fees on this are around two percent. The Utilities Department is doing the bulk of the field work, and NRS is putting it together and getting it to the State for approval. He stressed this is a joint effort to get this done and in a timely manner. M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors M aruthur, Jones, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Smith; motion unanimously carried. Whereupon the resolution was declared adopted. 29 Proposed Resolution No. R-05-103 A resolution entitled, “A RESOLUTION APPROVING AN AGREEM ENT BETWEEN T H E CITY OF HOT SPRINGS, ARKANSAS, AND WITH CENTRAL BUSINESS IMPROVEMENT DISTRICT NO. 3 FOR CERTAIN ADM INISTRATIVE SERVICES,” was taken from the agenda and read by title only. A motion was made by Director Weatherford, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, M r. Ray Owen, Jr., 110 Leigh Circle, advised that the Central Business Imp rovement District Board met today and approved this agreement and asked that the Board approve it tonight. M ayor Bush said that he understands the only cost to the City will be staff time. M r. Owen commented that the City has a good understanding on what is being ordered and will be doing the ordering based on authorizations from the CBID. He stated everything will be goingthrough the City, and the City will be reimbursed by the CBID on a regular basis as it expends funds. M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors M aruthur, Jones, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Smith; motion unanimously carried. Whereupon the resolution was declared adopted. Board of Directors M eeting 11 M arch 21, 2005 at 7:00 P.M . 30 Proposed Ordinance No. O-05-29 A n ordinance entitled, “AN ORDINANCE ACCEPTING THE ANNEXATION OF CERTAIN TERRITORY (LAKESIDE VALLEY SUBDIVISION) TO THE CITY OF HOT SPRINGS, ARKANSAS, AND M AKING SAM E A PART OF THE CITY OF HOT SPRINGS AND ASSIGNING SAM E TO DISTRICT,” 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 Weatherford, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors M aruthur, Jones, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Smith; motion unanimously carried. Whereupon the ordinance was declared passed. 31 Proposed Ordinance No. O-05-30 A n ordinance entitled, “AN ORDINANCE AM ENDING ORDINANCE NO. 5307 (ACCEPTING THE ANNEXATION OF CERTAIN TERRITORY TO THE CITY OF HOT SPRINGS, ARKANSAS) BY DELETING TRACT ONE THEREFROM ,” was taken from the agenda for consideration. (Garvan Woodland Gardens). A motion was made by Director Edwards, duly seconded by Director Daniel, 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 Daniel, duly seconded by Director Jones, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors M aruthur, Jones, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Smith; motion unanimously carried. Whereupon the ordinance was declared passed. 31A Proposed Ordinance No. O-05-31 An ordinance entitled, “AN ORDINANCE REZONING TO C-TR, COM M ERCIAL TRANSITIONAL, TO INCLUDE A PARCEL OF REAL PROPERTY LOCATED AT 330 SIXTH Board of Directors M eeting 12 M arch 21, 2005 at 7:00 P.M . STREET, ZONED R-4, M EDIUM DENSITY HIGH DENSITY RESIDENTIAL,” was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Edwards, duly s econded by Director M aruthur, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors M aruthur, Jones, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Smith; motion unanimously carried. Whereupon the ordinance was declared passed. 31B Proposed Ordinance No. O-05-32 An ordinance entitled, “AN ORDINANCE ESTABLISHING A CURFEW FOR PERSONS UNDER 18 YEARS OF AGE; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Daniel, 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 M aruthur, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Police Chief Gary Ashcraft explained this amends an ordinance that was established in 1904. In that ordinance, there was no closing time for the curfew; and courts have decided there has to be a closing time so this takes care of that. It also increases the age to anyone under 18. Director Daniel asked what percentage of juveniles does he have a problem with who are under 18; and Chief Ashcraft advised that in talking with several school officials, 16 and 17 year olds are the ones they will have the most problems with. He noted that under 16, usually there is not a large problem because they do not drive. Director Daniel commented that the problems downtown in the summer seems that the 16 to 17 year olds have younger people with them. He pointed out that at times there are 12 and 14 year olds in the downtown area, and they were there because they had a 16 year old with them. Board of Directors M eeting 13 M arch 21, 2005 at 7:00 P.M .  City Manager Kent M yers said there may be concerns from parents on how this may impact a child traveling to work at midnight or if they need to send a child to the store. He stated the curfew is 11:30 p.m., and anyone 18 years or younger would be impacted from the 8:30 p.m. requirement unless this person is accompanied by a parent or guardian having legal custody of the minor person or is in the performance of an errand or duty directed by such person or whose employment makes it necessary to be upon the alleys or other public places during the nighttime, provided this exception shall not apply when a person under such age shall be playing or unnecessarily loitering in or upon such streets, alleys, or public places. He mentioned if their child has to work until midnight, they would have the right to be out. Director Weatherford commented that according to the ordinance, the parent is also held responsible. Police Chief Ashcraft noted that under the current ordinance, the parent can be held responsible and can be cited for the action of the child. M ayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors M aruthur, Jones, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Smith; motion unanimously carried. Whereupon the ordinance was declared passed. 31C Consider Hot S prings Intracity Transit Trolley S ystem Operations for 2005 Deputy City M anager Lance Hudnell stated there have been a series of public forums – one before the Transportation Advisory Committee, one hosted by the Downtown M erchants Association, and a third public hearing tonight to fulfill FTA requirements. There are five options outlined, which are the results of those hearings and hearing from various people who are involved. Bas ed on t he option the Board chooses, staff will come back at the next meeting with actual appropriation of funds should the Board choose an option that so requires. He then submitted the following options: Option 1. Operate the trolleys as currently budgeted, which is one trolley on the red route, and is on a one-hour headway meaning that every hour it goes to M agic Springs or every hour it is by the Transportation Depot or every hour it is by the Tower. That currently is in the budget; therefore, there would be no additional cost. However, there are federal funds to purchase a new trolley. The match for that was not included in the budget and should the Board choose to proceed with the purchase of that, there would be an additional $50,220. The company that makes the Optima trolleys currently has an extra production model ready to deliver. Board of Directors M eeting 14 M arch 21, 2005 at 7:00 P.M .  Option 2. This is a recommendation of the Transportation Advisory Committee. Their recommendation was to go back to the 2003 levels, which were two trolleys on the red route, and makes the headway 30 minutes. It also adds a $1.00 fare which has to be half price or $.50 for elderly and disabled in accordance with federal regulations. That would require for the remainder of this year an additional $20,695 in city dollars. There are also federal dollars that are in addition to this, but they are provided for. Option 3. Approve the Downtown Association of Hot Springs recommendations. There was a public hearing; and under Director Daniel’s leadership, they appointed a subcommittee which studied this further and refined these recommendations. It is basically to create a two-tier system. M r. Rick Brown, Transit Advisor, stated that the concerns seemed to be with the downtown, and the service was too infrequent. He was asked to come up with a 15-minute headway route. In addition, they are also wanting to maintain the route they ran last year to M agic Springs and up on the Mountain. If they do that, those routes will intersect once an hour. That will also help maintain the 15-minute headway if there was traffic congestion. They can do this with two vehicles instead of three or four and get what they feel is needed and wanted in the downtown area. He noted that the recommendation of staff is Option 3. Director Edwards pointed out that the trip up the mountain is rough on the trolleys and asked if they are going to maintain that the whole year or just part of the summer. M r. Brown advised that it will be during the trolley season (from M emorial Day to Labor Day). Deputy City M anager Lance Hudnell stated this will retain the 2004 level service for the Tower and M agic Springs, but it would add a 15-minute service for downtown; hence the two tiers. It will cost the City an additional $18,195. He noted that the Downtown M erchants Association has pledged that since this is major benefit to them, they will help raise $2,500 that the City will put in the budget to be designated for marketing efforts. He noted one of the issues that came out of this w as t o improve the marketing efforts; and the Advertising and Promotion Commission, the downtown merchants, and others have pledged to assist with that. Director M aruthur suggested a review time to see whatever the Board votes on has worked and how it can be improved. D ep ut y City M anager Lance Hudnell advised that would be part of the normal budget process this fall as staff brings the new budget back to the Board. Board of Directors M eeting 15 M arch 21, 2005 at 7:00 P.M .  City Manager Kent Myers stated there are three trolleys, and two will be running on the route as Option 3 suggests. He asked how the trolleys would be rotated, and M r. Brown explained that a trolley is pulled out of service for its maintenance program and replaced with another trolley. However, he tries to rotate them as they do the buses to try to even out the usage on each vehicle so that no vehicle receives too much wear and tear, That is done through a rotation program. Deputy City Manager Lance Hudnell stated if a new trolley were purchased, the match would be $68,415 as opposed to the $18,195. Option 4. This would be to discontinue service and dispose of the trolleys or transfer them to another department for charter work only. That would be a savings of $70,000. Option 5. This would be some combination of the other options. Deputy City M anager Lance Hudnell pointed out that out of the public hearing this afternoon, Hot Springs Elderhostels was there to ask that the City continue the trolleys, and there are letters of support for that. Also, there was a letter from the National Park Service. On the segment that goes to the Tower, they would like to add a step-on ranger on the trolley to give information on the National Park. Deputy City Manager Lance Hudnell stated that is a deviation from prior policy of the Board regarding how much the trolley drivers can discuss. He pointed out there is an initiated entertainment program to consist of musicians at key trolley stops and/or on the trolley, production of an audio tape describing the downtown area (possibly with some paid advertisements interspersed throughout the tape), and step-on interpretive programs on the M ountain Tower segment. He noted that is part of Option 3. Regarding the musician part, there would be assistance by the Advertising and Promotion Commission, so they would actually engage and employ those parties. City Manager Kent M yers expressed appreciation for the spirit of cooperation involving the City, the Advertising and Promotion Commission, CBID No. 2 and the Downtown M erchants Association. Deputy City M anager Lance Hudnell pointed out there was a great deal of discussion with regard to the fares at the subcommittee level from the downtown merchants, and it was the consensus of that group that the City not charge a fare in 2005 and reevaluate that for 2006. M ayor Bush asked if in Option 3, a new trolley would be purchased; and M r. Brown advised that is left to the discretion of the Board. He noted there are three trolleys; and under this option, they run two trolleys which gives a spare as a back-up trolley. Deputy City M anager Lance Hudnell explained that under the Capital Improvement Plan, it was scheduled to replace one trolley for each of the next three years but delayed that until there Board of Directors M eeting 16 M arch 21, 2005 at 7:00 P.M . was some decision regarding the continuance of the trolley service. He said they feel comfortable with continuing it one more year without replacing a trolley but not two more years. M ayor Bush asked if they lease the trolley out for private parties; and M r. Brown advised that they did, provided it is in the City and with the approval of the other charter operators. Director Edwards pointed out that with the increase in the price of gasoline, this will have an impact on the trips they make. A motion was made by Director Edwards, duly seconded by Director M aruthur, that Option 3 be approved; and upon roll call, the following voted “aye”: Directors M aruthur, Jones, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Smith; motion unanimously carried to approve Option No. 3. There was no motion to purchase a new trolley. OTHER BUS INES S 32 Board of Directors Items D irect or Edw ards commended the Police Department for its work at the race track in providing pedestrian safety; also, for the outstanding job by Sergeant Johnny M ann. He stated the Police Chief will present the new officers to the Board at future meetings. Director Daniel announced the NCA Women’s Division 2 basketball tournament will be starting this week in Hot Springs. 33 City Manager’s Report City M anager Kent M yers gave the following report: 1. There was a group that represented the City last week in a meeting in Washington, D.C. with Senator Pryor, Senator Lincoln, and Congressman Ross. It was a successful trip, and there will be a written report available later this week covering the specific issues discussed. One of the main issues discussed was the possible reduction of Community Development Block Grant funds. Director Jones expressed her concerns because of the impact to the target areas in District 1 and District 2. 2. A public hearing was held earlier today on cable television services. There was only one person in attendance who asked questions regarding cable television but no real complaints. In Board of Directors M eeting 17 M arch 21, 2005 at 7:00 P.M . t alking with M r. Harvey Oxner, General M anager of Resort Television Cable, he wanted to encourage citizens to communicate any complaints to the City M anager’s Office between now and April 1. These will be forwarded to Resort Cable. 3. O n the Consent Agenda, the Board reappointed David Campbell to the Planning Commission. The Board acknowledged the donation of certain art to the City by Tom Payne Studio, and this art is on display in the City Clerk’s Office. The Board approved a resolution using federal aid enhancement monies for pedestrian crosswalks on Central Avenue that are part of CBID No. 3. The Board approved Atoka Engineer to design the heating and air conditioning improvements at the Arkansas School of M athematics, Sciences and the Arts. That w Board of Directors M eeting 18 M arch 21, 2005 at 7:00 P.M .