Board of Directors

MINUTES BOARD OF DIRECTORS MEETING OCTOBER 17, 2005, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, October 17, 2005, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Ms. Monette Allen, 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 Maruthur, Elaine Jones, Steve Smith, Carroll Weatherford, Bill Edwards, Tom Daniel, and Mike Bush, total 7. 2 Approval of Agenda A motion was made by Director Edwards, duly seconded by Director Maruthur, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of October 3, 2005 Board Meeting A motion was made by Director Daniel, duly seconded by Director Smith, that the minutes of the October 3, 2005 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Mayor Bush recognized members of the Mayor’s Youth Council and mentioned the projects of the Council. One of their goals this year is to send representatives to the National League of Cities Conference in Washington, DC and have had fundraisers to accomplish this. He recognized Sara Bryan - Vice President and representing the President, Laura Marchese; Katie Elbe, Secretary; Haleigh Parks; Erin Ridgeway, fundraising chairperson; Jesseca Chambel; Jeanne Parrett; Candice Suffield; Jennifer Schul; DalanaBlack; Amanda Hillistead; and Josh Madison. The members then presented the Directors with t-shirts. Director Maruthur introduced Ms. Drew Terry, a member of the Garland County Prayer Breakfast Committee, who announced that the Prayer Breakfast starts at 6:20 a.m., tomorrow, Hot Springs Civic and Convention Center, Halls C and D; and Governor Huckabee will be the guest speaker. CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (October 5, 2005). 6 Proposed Resolution No. R-05-300 Approving Certain Bid Awards (a) Airport Sign - Airport [awarded to Seiz Sign in the amount of $25,805]; (b) Pipe, Couplings, Saddles - Utilities [awarded to Consolidated Pipe in the amount of $11,852.44]; (c) TI Processor- Utilities [awarded to Instrument & Supply in the amount of $10,843.60]; (d) Cameras/Equipment and Material - Public Works [awarded to Security Design Service in the amount of $11,107.05]; (e) Pumps - Utilities [awarded to Jack Tyler Engineering for a Flygt Pump in the amount of $39,945 and two Cornell pumps in the amount of $19,630]; (f) HVAC - Airport [awarded to GTS in the amount of $21,000]; (g) Perimeter Road Project - Airport [awarded to Hot Springs Excavating in amount of $89,450]; (h) Truck Bodies - Utilities [one awarded to Dealer Truck Equipment in the amount of $11,377 and four awarded to Keasler Body in the amount of $11,379]; and (I) Aggregates - Sewer Rock and Screened Fine [annual supply contract awarded to Daveco Construction]. 7 Proposed Resolution No. R-05-301 Authorizing the Filing of a Grant Application with the State Aeronautical Commission for an Airport Entrance Sign. 8 Proposed Resolution No. R-05-302 Authorizing the Mayor to Execute a Lease Agreement Between the City and Trevor Stores, Inc. for Office Space Located in the Terminal Building at the Airport. Board of Directors Meeting 2 October 17, 2005 at 7:00 P.M. 9 Proposed Resolution No. R-05-303 Amending Resolution No. 5770 (Approving Certain Revisions to Municipal Airport Property Management Policy) by Adopting a New Appendix “K” [Airport Property Rates]. 10 Proposed Resolution No. R-05-304 Approving the Payment of 100 Percent of the Monthly Retirement Benefits for Those Members of the Fire Department Who Participate in the Extended Deferred Retirement Option Plan as Authorized by Act 1251 of 2005. 11 Proposed Resolution No. R-05-305 Authorizing the Filing of a Grant Application with the Arkansas State Department of Parks and Tourism and Committing Resources of the City (Entergy Park and Hill Wheatley Park); and Repealing Resolution No. 5982. 12 Proposed Resolution No. R-05-306 Accepting a Grant from N.R.P.A. for Major League Baseball Pitch, Hit and Run Grant Program. 13 Proposed Resolution No. R-05-307 Levying Zero Mills of Ad Valorem Taxes for the General Fund. 14 Proposed Resolution No. R-05-308 Levying Zero Mills of Ad Valorem Taxes for the Firemen’s Pensions. 15 Proposed Resolution No. R-05-309 Levying Zero Mills of Ad Valorem Taxes for the Policemen’s Pensions. 16 Proposed Resolution No. R-05-310 Adopting a Substance Abuse Policy for Intracity Transit Employees and Repealing Previous Editions. 17 Proposed Resolution No. R-05-311 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Blue Herron Bay Subdivision. 18 Proposed Resolution No. R-05-312 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Wildwood Gardens Subdivision. Board of Directors Meeting 3 October 17, 2005 at 7:00 P.M. 19 Proposed Resolution No. R-05-313 Authorizing Revisions to the 2005 Budget. 20 Proposed Resolution No. R-05-314 Approving Change Order Nos. 1 and 2 with BB&B Construction for Carpenter Dam (Highway 128) Utility Relocation Project. A motion was made by Director Smith, duly seconded by Director Jones, that the Consent Agenda be approved; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. PUBLIC HEARING 21a Consider Public Hearing on Annexing Certain Lands That are Completely Surrounded by the Incorporated Limits of the City (Pretti Point, Davidson Drive, and Eastgate II). This being the time and date set for a public hearing on annexing certain lands that are completely surrounded by the incorporated limits of the City, Mayor Bush declared the public hearing open. City Manager Kent Myers announced that the City is required to hold this public hearing for the three annexations that the Board discussed at its work session. There being no further comments, Mayor Bush declared the public hearing closed. 21b Consider Public Hearing on Request to Vacate an Unnamed Alley Located in Block 11, South Hot Springs Addition. This being the time and date set for a public hearing on a request to vacate an unnamed alley located in Block 11, South Hot Springs Addition, Mayor Bush declared the public hearing open. Mr. Michael Ott, 137 Greenway Avenue, executive director of Gospel Light and all of its subsidiary ministries, including Champion Baptist College, stated he is representing Champion Baptist College; and they request closing the alley that runs parallel to Ward Street and also Garland Street and between Third Street and Fourth Street. He announced that the Planning Commission has approved a rezoning of this block in anticipation of building a boy’s dormitory for Champion Baptist College. He distributed a hand-out noting the proposed dormitory with the main part of the dormitory running parallel with Fourth Street. They are proposing to close all the way from the one- Board of Directors Meeting 4 October 17, 2005 at 7:00 P.M. way (Third Street to Fourth Street) an alley or a portion of it. If the Board decides to allow them to close just a portion, they have made access available to anyone coming from this direction through their parking lot. Ms. Susan Taylor said she owns the buildings at the corner of the alley and Third Street. She stated at one time there were three buildings, but now there are two. She said she plans to renovate the buildings and would not want this alley closed because there are side entrances to the building, and deliveries would be imperative. She noted that Gospel Light Church has made arrangements to acquire the buildings from her; and on that basis, she is withdrawing her objection to closing the alley. She requested that the Board table this issue for 30 days because if for any reason this were not consummated, it would not be in her best interest commercially for the alley to be closed. She commented that delivery trucks, etc. would be able to pull into the alley, but she would not want them to back into one-way, oncoming traffic at Third Street. There being no further comments, Mayor Bush declared the public hearing closed. NEW BUSINESS 22 Proposed Ordinance No. O-05-93 (Option 1) An ordinance entitled, “AN ORDINANCE VACATING A CERTAIN UNNAMED ALLEY LOCATED IN BLOCK 11, SOUTH HOT SPRINGS ADDITION,” was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Maruthur, 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 Smith, duly seconded by Director Maruthur, that the ordinance be passed as read. Upon discussion, Deputy City Manager Lance Hudnell explained there are two options based on the outcome of the public hearing. Option 1 is to close the entire alley, and Option 2 is to close part of the alley. Mayor Bush then called for a vote on the motion to adopt the ordinance, which is Option 1 (close the entire alley); and upon roll call, the following voted “aye”: Director Smith and Mayor Bush, total 2. Voting “no”: Directors Maruthur, Jones, Weatherford, Edwards, and Daniel, total 5; motion failed. Whereupon the ordinance was declared failed. Board of Directors Meeting 5 October 17, 2005 at 7:00 P.M.  Proposed Ordinance No. O-05-93 (Option 2) An ordinance entitled, “AN ORDINANCE VACATING A PORTION OF A CERTAIN UNNAMED ALLEY LOCATED IN BLOCK 11, SOUTH HOT SPRINGS ADDITION,” was taken from the agenda for consideration. (Partial closing of alley) A motion was made by Director Jones, duly seconded by Director Maruthur, 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 seconded by Director Maruthur, that the ordinance be passed as read. Upon discussion, Director Daniel pointed out if Ms. Taylor’s sale goes through to Gospel Light, then Gospel Light has the right to come back and petition to close the remaining portion of the alley at a later time. Mayor Bush then called for a vote on the motion to adopt the ordinance, which is Option 2 (close portion of alley); and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 23 Consider Presentation of Condemnation Resolutions City Attorney asked if notification had been given on these properties, and Mr. Jones advised that none of the owners have been notified on these properties since they are all attorney ad litem files, which means when the City cannot get proof of notice to the owner, the City goes through another legal process. Mr. Bart Jones, Rehab Administrator, gave a slide presentation on the following condemnation resolutions. 23a Proposed Resolution No. R-05-315 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN PROPERTY AT 116 MAGNOLIA,” was taken from the agenda for consideration. There being no one to speak in opposition to the condemnation of the property, a motion was made by Director Edwards, duly seconded by Director Jones, that the resolution be adopted as read; Board of Directors Meeting 6 October 17, 2005 at 7:00 P.M. and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 23b Proposed Resolution No. R-05-316 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN PROPERTY AT 118 MAGNOLIA,” was taken from the agenda for consideration. There being no one to speak in opposition to the condemnation, a motion was made by Director Maruthur, duly seconded by Director Edwards, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 23c Proposed Resolution No. R-05-317 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN PROPERTY AT 256 CEDAR,” was taken from the agenda for consideration. There being no one to speak in opposition to the condemnation, a motion was made by Director Daniel, duly seconded by Director Edwards, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 23d Proposed Resolution No. R-05-318 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN PROPERTY AT 311 WALNUT,” was taken from the agenda for consideration. There being no one to speak in opposition to the condemnation, a motion was made by Director Maruthur, duly seconded by Director Edwards, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. Board of Directors Meeting 7 October 17, 2005 at 7:00 P.M. 23e Proposed Resolution No. R-05-319 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN PROPERTY AT 415 WALNUT,” was taken from the agenda for consideration. There being no on to speak in opposition to the condemnation, a motion was made by Director Jones, duly seconded by Director Edwards, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 23f Proposed Resolution No. R-05-320 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN PROPERTY AT 418 PALMETTO,” was taken from the agenda for consideration. There being no one to speak in opposition to the condemnation, a motion was made by Director Edwards, duly seconded by Director Maruthur, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. In response to Mayor Bush, Mr. Jones explained the next step in the condemnation process. Director Maruthur questioned how long the buildings on Magnolia have been in this condition, and Mr. Jones replied it has been 2 to 2-1/2 years. He added they were occupied prior to that. Director Maruthur questioned the house on Cedar, and Mr. Jones replied that the last time it was occupied was about three years ago. He mentioned the structure on Walnut was probably longer than that. 24 Proposed Resolution No. R-05-321 Board of Directors Meeting 8 October 17, 2005 at 7:00 P.M.  A resolution entitled, “A RESOLUTION APPROVING THE DESTRUCTION OF CERTAIN CITY RECORDS,” was taken from the agenda and read by title only. (Animal Control Records). A motion was made by Director Daniel, duly seconded by Director Edwards, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 25 Proposed Ordinance No. O-05-94 An ordinance entitled, “AN ORDINANCE REZONING TO R-2, SUBURBAN RESIDENTIAL, TO INCLUDE A PARCEL OF REAL PROPERTY LOCATED SOUTH OF THE 100 BLOCK OF GRANDPOINT DRIVE,” was taken from the agenda for consideration. 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 Maruthur, duly seconded by Director Edwards, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 26 Consider Presentation by Thermal Pool Committee Mr. Loren Impson, 71 Holistic Hollow, Mt. Ida, Arkansas, stated this proposal includes working with the land in the vicinity of the Transportation Center, which is close to where the Farmer’s Market has proposed their building. He said that the committee is not to point of being ready to present drawings but would like to get a commitment from the City that they could use this property and begin the process of raising funds. Mayor Bush asked if he thought that was the best location in the City. Mr. Impsen replied there are many places in the City that would be suitable, but it seems to easy to get the water to that location; also, it is already owned by the City. Director Maruthur commented she serves that committee, but a date has not been set for the committee that will be naming the gardens and asked if he has anyone who has signed up for this Board of Directors Meeting 9 October 17, 2005 at 7:00 P.M. committee. Mr. Impson stated that would be part of the marketing committee, but a date has not been set. City Manager Kent Myers said the only concern that surfaced today was the future access of the Farmer’s Market would come off Orange Street, which would be impacting their access off Orange Street and would require close coordination between the Thermal Pool Committee and the Farmer’s Market Board. Director Daniel stated his idea of a thermal pool and a garden encompasses more area than what he is proposing. He added if they plan on expansion, they would need more land, which would not be available. Mr. Impson said the City has some across the creek, and there is also privately owned land across the creek. He stated they have not talked to those owners to see if they are interested, but there are avenues for expansion, which would lead them toward other bathhouses on Malvern; and they could end up on Malvern Avenue at sometime. Director Daniel questioned how much water the National Park Service has allocated, and Mr. Impson advised they did not allocate any water to them. He mentioned the National Park Service said they could have the available water. He stated when he was in the tunnel underneath looking at the water, there was a stream of about eight inches in diameter coming out in gushers. He said he has talked to Mr. Bob Kempkes and Mr. Anthony Taylor regarding the amount of water they are going to use in the Quapaw, and there would still be water available for them. Director Maruthur questioned the amount of acreage, and Mr. Impson said he has not measured it and does not know the amount of acreage. Director Maruthur said she thought it was approximately one acre, and Mr. Impson stated it has not been surveyed. City Manager Kent Myers explained that they just looked at the site, but the total acreage for the Transportation Plaza is approximately seven acres. He would estimate this would be approximately 1-1/2 acres. Director Edwards questioned the parking, and Mr. Impson stated there is already a parking lot to the north toward the Transportation Depot where there is existing parking. Director Weatherford pointed out that the Farmer’s Market has some proposed parking, and the parking that Mr. Impson plans on using would be used up by the Farmer’s Market, especially in the morning. Board of Directors Meeting 10 October 17, 2005 at 7:00 P.M.  There being no further discussion, Mayor Bush called for the next order of business. 27 Consider Presentation on 2006 Budget Requests from Outside Agencies City Manager Kent Myers introduced local agencies for their 2006 Funding Requests. 1. GCEDC Funding Mr. David Byerly, 413 Pauline, executive director of Garland County Economic Development Corporation (GCEDC), noted that the accomplishments and activities by GCEDC ;and results from those efforts were previously submitted to the Board. He requested that the City continue the contractual agreement with GCEDC. 2. Retirement/Relocation Mr. Byerly introduced Ms. Millie Patrick, retirement/relocation program director, who presented a booklet showing the successes for the year, as well as samples of their advertising. She highlighted their accomplishments and stated that the program depends on the funds received from the City to further advertising. She stated without these funds, their advertising would be cut 20 percent. Therefore, they are requesting that the City fund $12,500 and $2,500 for business development. Director Maruthur asked how many people have they directed toward the older neighborhoods, and Ms. Patrick replied she does not have those numbers. Director Maruthur requested for next year’s funding that she present the numbers for the people who have decided to move into the older neighborhoods in the relocation program. 3. Volunteer Center Ms. Rosalind Hudson, 111 Brookstone, Director of the Volunteer Center, stated they have sent in their application to become Volunteer Center of the Year and will know within the next ten days whether Hot Springs is the Volunteer Center of the Year. She spoke of the volunteer work and donations to the evacuees of Hurricane Katrina and Rita and volunteering at Summit Arena, as well as other times during the year. She also reported on other organizations which are supported by the Volunteer Center. She stated that in the past, they have requested $12,000 but are requesting $9,000 for 2006. Board of Directors Meeting 11 October 17, 2005 at 7:00 P.M.  4. Beautification Commission Mr. Ron Boshears, with the Beautification Commission, also introduced Mr. Rick Garner, program coordinator. Mr. Boshears gave a history of the commission and presented their mission statement, as well as their goals and accomplishments. He stated their budget request is the same amount as last year ($32,500). 5. Hot Springs Boys’ and Girls’ Club Mr. Mike Dugan, 100 Deanwood Terrace, representing the Hot Springs Boys’ and Girls’ Club, said his presentation is for the City’s baseball program. He reported they have doubled the amount of teams since 1998 that are playing in the spring and summertime baseball program. He reported that they never turn away a child who wants to become a member and also will pay for their equipment. Mayor Bush questioned his total budget, and Mr. Dugan replied that it is $280,000. He added they received $52,000 from United Way, $30,000 to $40,000 from the City to run baseball; and they bring in about $30,000 from fees. He said 2/3 of their budget has to be raised from the community every year. He stated this is the only time they come to the City asking for funding, which is to keep the baseball program and is very expensive to operate. They are asking the City for about 50 percent of the cost to run that program every summer. Director Maruthur asked how long this program has been in place, and Mr. Dugan advised that they have been playing baseball at the current facilities since 1948. Although there has been a baseball field at that facility since 1918, they have been on those fields since 1948. Director Maruthur questioned how long the City has been partnering with the Hot Springs Boys’ and Girls’ Club, and Mr. Dugan said that he came before the Board about six years ago. At that time, their fields were in bad shape; and he asked for $52,000, which was granted. Those funds were used on the fields. There were no more presentations from the outside agencies. 28 Consider Ordinance No. O-05-95 Board of Directors Meeting 12 October 17, 2005 at 7:00 P.M.  An ordinance entitled, “AN ORDINANCE PERMITTING DIRECTOR STEVE SMITH TO CONDUCT BUSINESS WITH THE CITY OF HOT SPRINGS; PRESCRIBING THE EXTENT OF THIS AUTHORITY; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read in full for the first time; and upon voice vote, the motion carried, with Director Smith being out of the Board Chambers. The ordinance was then read for the first time in its entirety; 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, Director Maruthur questioned unless the Board approved this ordinance, it would not be legal, and City Attorney David White replied that is correct. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Jones, Weatherford, Edwards, Daniel, and Bush, total 5. Voting “no”: Director Maruthur. Director Smith was out of the Board Chambers and did not cast a vote; motion carried. Whereupon the ordinance was declared passed. 29 Proposed Resolution No. R-05-322 A resolution entitled, “A RESOLUTION APPROVING A COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) “FY 2006 ANNUAL ACTION PLAN” APPLICATION IN THE AMOUNT OF $436,000 TO THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FOR VARIOUS COMPREHENSIVE REVITALIZATION PROJECTS,” was taken from the agenda and read by title only. A motion was made by Director Edwards, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers explained that every year the City is required to submit to the Department of Housing and Urban Development (HUD) by November 15 a plan that outlines the projects for funding allocation from Community Development Block Grants. This year, the City received 15 new applications and one continuation application. Staff has recommended approval of nine of these applicants. The total funding being submitted to HUD is $436,000. Staff needs direction from the Board and preliminary approval of the projects the Board would like to include in the application. Staff would bring back the completed plan for approval at the first Board of Directors Meeting 13 October 17, 2005 at 7:00 P.M. meeting in November. He suggested going through the list of staff recommendations and the Board deciding whether or not they should be included in the final application. Director Weatherford questioned the point system for ranking these projects, and Mr. Self explained that he, Planning and Development Director Jerry Raetz, and Housing Administrator Bart Jones rated these projects; and the cumulative scores led from highest to lowest as far as points. Mr. Nelson Self, CDBG Coordinator, explained the following projects: 1. Housing Rehab Program. There are two established target areas - the Park Avenue and Pleasant Street areas and are for owner-occupied homes for households that meet the HUD income limits. This calls for funding of $63,000, which would be in addition to the $510,000 that has already been allocated to-date. Director Maruthur questioned if he could break down what is going to be done in the Park Avenue area for the $63,000; and Mr. Self replied that at this time, they are running almost 50-50 in terms of funding that has been spent or obligated by contract in the Park Avenue and Pleasant Street areas. Of the $510,000, $375,000 of that has been spent or is obligated. Director Maruthur commended Mr. Self in his work and stated when this program was first presented to the community in 2003, it was presented as an owner-occupied housing improvement program. She said she received the consolidated three-year plan earlier this week, and there has been a slight change. She noted the initial commitment to District No. 1 came out of the neighborhood consultant and their recommendations for District 1 and District 2, even though there were two different consultants. She asked him to explain what was not done but yet committed when this was first approved for District No. 1. Mr. Self said he was not employed with the City when the application was prepared and approved. He added the only project that has not been undertaken and completed in Park Avenue target area is Bower Street sidewalks and curbing, but everything else is well underway. Director Maruthur stated that the recommendation was the restoration of stone or rock walls and sidewalks and some infrastructure, and it was deferred on the first implementation of the program. She asked if this was going to be fully implemented. Mr. Self replied that it is not included in the staff’s recommendations, but the Board is the final determining factor. Board of Directors Meeting 14 October 17, 2005 at 7:00 P.M.  Director Maruthur noted there is a group of people present from the Park Avenue Community Association, and they were presented with a precise program. She said the first implementation deferred some projects being done, and she wanted to get a commitment that it will be done. It was the consensus to leave Item No. 1 on the list ($63,000). 2. Continuation of Streetscape Improvements for the Pleasant Street Area. Mr. Self advised that when the CBID No. 3 project is completed next month, the 100 block of Pleasant Street will undergo the streetscape improvements, which include new sidewalks, curbing, gutters, street trees and the installation of conduit below the sidewalks so at a later date ornamental historic preservation acceptable street lights may be installed, as well as signage. This proposes a continuation of that project. The first year is the 100 block of Pleasant Street, which is the block behind the Convention Center and includes the Webb Community Center and Harris Funeral Home. The second phase would continue that activity in the 300 block of Pleasant Street. The objective is that over a five-year period, the entire Pleasant Street corridor and one block of Garden Street would undergo a transformation through the streetscape improvements. It was the consensus of the Board to leave Item No. 2 on the list ($40,000). 3. Revitalization of Historic Hot Springs High School (also known as Clinton Cultural Campus Project). Mr. Self stated that on November 15, 2004, the first year of funding was committed to this activity. On January 17, 2005, the 2004 Annual Action Plan was amended and approved by the Board and that called for a continuation of this activity, which is approximately $5.2 million. He said questions have been asked why there is reimbursement of architectural fees. He explained when using federal funds, if more than $2,000 is spent on a project, that triggers Davis Bacon, which means considerably higher construction costs and higher staff administrative costs. Hill and Cox are the general contractors and enables them to stretch their construction budget. That is the rationale why the funds are used to offset architectural fees rather than providing direct financial assistance toward construction costs. It lowers administrative costs and lowers construction costs. Mayor Bush asked if there are any affordable units there at the present time, and Mr. Self stated that once it is finished, they are looking at 32 units; approximately 28 or 29 of those will be affordable. He noted there are none there at the present time, but the project is underway. Director Daniel commented this is for architectural fees and said that it was not included in the Board packet. Mr. Self explained this has been before the Board on two prior occasions. City Manager Kent Myers added that it was included in the two previous years this application was Board of Directors Meeting 15 October 17, 2005 at 7:00 P.M. before the Board. Director Daniel said it is for continuation of the rehabilitation of owner-occupied and single family residence, and he thought it was for construction work; but now it is for architectural design. He mentioned that it seems the architectural design would have been done sometime ago. Mr. Self stated that the construction is still underway and like any project of that magnitude, it is a large reinvestment; and French Harris Architects is still performing work on this project. He explained they have run into a lot of unforeseen areas when taking on a project like this. He commented it may be reimbursing architectural fees, but it is filling a gap that otherwise might render a project like this unfeasible. Director Daniel questioned how far they are on this project noting that $50,000 is a considerable amount of money at this time in the project. Mr. Steve Hitt, CEO of ARC Arkansas, 2100 South Arch Street, Little Rock, Arkansas, and Ms. Cynthia Stone, Chief Operating Officer of ARC Arkansas, 138 South Lakeland Point, Hot Springs, were recognized. Ms. Stone advised that in a project such as this, the architectural fee is a percentage of the overall cost. With Hot Springs High School, they have encountered a large amount of costs they did not anticipate and have had to raise additional dollars. She stated it is approximately $400,000 to $500,000 more than they anticipated, which raises the architectural fees. Also, the architect is the construction administrator for the project and is present for every construction meeting every week. Director Daniel asked if they have federal funding, and Ms. Stone advised that they have affordable housing tax credits, as well as historic tax credits. She reported they have applied for federal home loan bank funds and have home funds, which are similar to HUD dollars so they are federal dollars. Director Daniel questioned how they received their return if they did not already have some federal funds, and Ms. Stone explained when restoring an historic building, there are certain guidelines with the historic tax credits that require them to do certain things to maintain the historic integrity of the building. She stated in that building, there are 32 apartments; but there is a large common area that has to be restored as well. The auditorium will also be part of the restoration project so they can restore that auditorium as an auditorium to be used by not only the ARC but the citizens of Hot Springs. Director Maruthur commented that in 2003, there was a neighborhood summit, which encompassed the entire City; and all of the neighborhood organizations were invited to hear a presentation about a program called “the Community Development Block Grant.” She said it was Board of Directors Meeting 16 October 17, 2005 at 7:00 P.M. presented for low-to-moderate income families in need. She pointed out there will be discussion on many worthy programs but stressed there are people in need of repairs to live in existing homes. She questioned the status of the number of applications from single, family owners of occupied dwellings. Mr. Self replied that from the two established target areas (Pleasant Street and Park Avenue), there are almost 70. He mentioned that it was not until January 2005, that they received clearance to start spending the 2004 money and did not receive the 2005 money until the end of March. He has already completed, has underway, or out to bid 19 houses. He noted these are not easy, straightforward rehab projects. Director Maruthur pointed out that it was her understanding that the CDBG was for those who were already in need and did not have the means to repair their structures. Also, this would be a stimulus to bring people back into the older communities. She said she has spoken to a number of people who have moved back into three neighborhoods (District 1, 2 and 3) and are excited about this because they did not feel secure investing in some of these affordable homes until they found out that the CDBG money was going to be allocated in these areas; also, their neighbors were going to have the ability to get their homes repaired. She stated she has hesitation to approve anything that does not go to needy families who are in single family, owner-occupied dwellings. Mr. Self commented that he is making every effort to get as much work out to bid and under construction. He added there is a waiting list from Park Avenue and Pleasant Street. Director Jones stated that she cannot see putting money into a building when it is raining in someone’s home. She commented that $25,000 to $40,000 can be spent on a home. It was the consensus of the Board to set this item aside. 4. Construction of Eight (8) to Ten (10) Units of Elderly and Handicapped Rental Housing at the Intersection of Garden and Mound Streets. Mr. Self explained this is a $700,000 to $750,000 investment, and the owner of the property is Petrella Bonner Pollefeyt. He added it has been a vacant parcel for sometime. Director Jones said that Petrella plans to come up with a lot of the money and has already had the land surveyed. Also, she has had the testing done on the soil. It was the consensus of the Board to leave this item on the list ($15,000). Board of Directors Meeting 17 October 17, 2005 at 7:00 P.M.  5. Revitalization of the National Baptist Hotel. Mr. Self stated a request was submitted for a project that would involve between 42 and 49 units of elderly housing financed through the tax credits program. The $50,000 is in support of that project. The request was that those funds would be used to reimburse architectural fees. Director Weatherford pointed out that the Board appropriated $4,500 for engineering services on the National Baptist Hotel to start consideration of demolishing it at the first of the year. Director Jones said as much as the National Baptist Hotel is needed and operational, Mr. Dean Baxter, owner, has to get started before she can see $50,000 going into it. She questioned if they have a permit. Mr. Self stated he was informed today by Mr. Raetz that they had picked up the permit. Mr. Bart Jones said it was his understanding they did get the permit, but it does not mean that any work has been done. He pointed out that one of the larger criteria they use for grading these is the match dollars. If $50,000 is put into it and the project is worth $6 million, then that is a lot of return on the $50,000. He stressed these are only priorities, and staff is not telling the Board this is what needs to be funded. City Manager Kent Myers mentioned that staff recommendations were developed prior to the Board deciding it wanted to spend the money on hiring a consultant. Also, when this application was originally submitted, he specifically told the architect if construction and activity were not underway at that building by the time it came to the Board, it was very likely the Board would not approve it. Director Jones said that she called Mr. Dean Baxter, owner, and asked if he could get a unit up and running if he wanted this kind of money. She said he assured her there would be a unit ready to go by now, but there has been no activity. Director Weatherford stated that he talked with the contractor who has pulled the permit last Thursday. In the conversation, he said they could have it finished by December 31; but in the same conversation, he also said the firm from Malvern that was going to do the asbestos abatement would have to be in there first before he could do anything. It was the consensus of the Board to set this item aside. 6. Assistance for Construction of 18 to 20 New Habitat for Humanity Single-Family, Owner-Occupied Homes in Wheatley Village. Mr. Self said this is a continuation of a successful Board of Directors Meeting 18 October 17, 2005 at 7:00 P.M. partnership that the City has with Garland County Habitat for Humanity. At the present time in District 5, the City has made an investment in assisting Habitat for Humanity with infrastructure improvements. This particular activity is a continuation of that activity. and they are proposing to build 18 to 20 homes on property that has been donated by the Wheatley Family, which is in close proximity to Weyerhaeuser off Whittington Avenue in District 1. They are requesting $50,000 in 2006 and $50,000 in 2007 to help cover the cost of infrastructure improvements for these 18 to 20 homes. It was the consensus of the Board to leave this item on the list ($50,000). 7. Garland Towers Elderly Housing Complex on Oriole Street. Mr. Self explained that this is a project involving the Garland Towers elderly housing complex at 126 Oriole Street. This is a $5.9 million project that would involve substantial rehabilitation of this complex. Upon completion, there will be 70 units of affordable, elderly rental housing units. Director Maruthur questioned if the application for Reverend Michael and Betty Smith is being recommended for approval in the amount of $25,000, which is for elderly and handicapped housing; and Mr. Nelson said that it was not in this one. He explained they are proposing to build 25 units of housing in the 600 and 800 blocks of Park Avenue. Director Maruthur commented when this program was first in its inception, the reason they had target areas was so they would have high visibility from the CDBG for the neighborhood to show that money was being invested in the older neighborhoods. She said in lieu of the $50,000 for these units, she would like to apply them to the units for Reverend Michael and Betty Smith that would be on the ground level and would be between the two targeted areas in District 1, which would be Bower Street. She said that she would like to recommend that this project for the $25,000 be applied to the 600 to the 800 blocks of Park Avenue instead. Mayor Bush pointed out that the Board is discussing $50,000 for rehab and needs to either leave it in or set it aside before considering something else. Director Weatherford said that the Board needs to either vote in favor or in opposition to the item and come back and see what is remaining. It was the consensus of the Board to set this item aside. 8. Reimbursement of Pre-development Expenses Associated with the Construction of the Downtown Farmer’s Market Facility. Mr. Self stated this is for the reimbursement of the pre- Board of Directors Meeting 19 October 17, 2005 at 7:00 P.M. development expenses associated with the construction of the downtown farmer’s market facility in the amount of $22,000. Director Weatherford said this is the only project that does not relate to housing and also when they appeared before, he specifically asked if they are going to be back before the Board asking for any money, to which they replied they were not. Director Maruthur questioned who was on the Board of this project; and Ms. Cynthia Keheley, 136 Pecan, representing Friends of Farmer’s Market and the Hot Springs Development Foundation, stated that the officers are president Dick Antoine; vice president Melvin Daniel; secretary Marvin Veasey, a local farmer; treasurer Kent Myers; at-large members are Willard Ray, a local farmer; Anthony Graves, a local farmer; Donna France, downtown business merchant; Carl McChesney, civil engineer; and Terry Payne, City’s Public Information Officer. She said they had checked on this and were told it would be acceptable for them to apply for CDBG. She stated they are not requesting any funds from the City’s budget. Director Maruthur commended the Farmer’s Market and said she supports it. However, she stated she has a problem with the City Manager being the treasurer and requesting for CDBG money. City Manager Kent Myers explained that he is treasurer because this is on city property, and he thought any project on city property, the City should be involved in some control in oversight of any project. He explained that by being on the board and handling the money, the City would be assured that all of the money was handled properly; but at that time, there was no discussion of CDBG; and he had no idea it would be before the Board. Ms. Keheley stated that their financial operations are handled through the Hot Springs Development Foundation and the financial secretary for Hot Springs Development Foundation at the Chamber of Commerce. She stated that the purpose of their applying is because of the targeting of this low-income area. She added that they have the WIC funds of $13,000 which was spent last year for women and children and for food only in vouchers at the Farmer’s Market. Director Maruthur stated she supports this when it was previously mentioned and would like to do anything she could to help, but her understanding is that Community Development Block Grant is for housing. She said when Ms. Keheley previously appeared before the Board on this, she had said there would be nothing from the City. She pointed out this is not directly from the City, but this would be taking away from city housing that would be spent on people without the ability to repair their homes. For that reason, she cannot support this in lieu of helping people with leaks in their homes. Director Maruthur said that Ms. Keheley has her commitment to helping her in any other way. Board of Directors Meeting 20 October 17, 2005 at 7:00 P.M.  It was the consensus of the Board to set this item aside. 9. Establishing of a One-Stop Home Ownership Center. Mr. Self explained that the one- stop home ownership center would be housed in the Webb Community Center and the purpose is to hold monthly home buyer education classes to work with first-time buyers and to work with people so they can make informed decisions in purchasing homes. This would be one-on-one counseling whereby people who need assistance can get counseling from a certified home buyer, education counselor, and educator. The other part of this would be sponsorships of activities. For example this past May, there was an affordable home ownership fair at the Webb Community Center; and there were five financial institutions that participated, as well as realtors. This is a program that would benefit the entire City. Director Jones commented that when the representative from HUD was in town, she commended Mr. Self for suggesting the type of schooling on home ownership. Director Jones stated that in District 2, as well as the entire City, there needs to be schooling on home ownership; and Shirley Greathouse from District 2, who won a scholarship, was sent to school to do this. She said that she believes this is a good place to house this project since the Webb Community Center started with the CDBG. It was the consensus of the Board to leave this item on the list ($10,000). 10. To Provide Funding for Two Full-Time Staff Persons. Mr. Self stated this is to provide funding for him and Randy Ross, Housing Rehab Specialist. This will be for salaries, fringe benefits, and office expenses. It was the consensus of the Board to leave this item on the list ($86,000). Mayor Bush stated there was $172,000 that was not approved by the Board and asked the Board’s wishes in allocating that. It was the consensus of the Board for Mr. Self and his staff to come back to the Board with allocations for the $172,000. Director Maruthur stated there was an application in District No. 1 for the elderly and handicapped housing that she would like to see considered. Also, since District 1 was deferred the first year it was to be the target area. She noted there is a very small triangle to be done in flagstone consistent with the original commitment for the CDBG, but she did not hear back from Mr. Self. Board of Directors Meeting 21 October 17, 2005 at 7:00 P.M.  Mr. Self stated that a project such as this would be incorporated in a sidewalk project if that were a project the Board approved. Mayor Bush stated if any of the Directors want to discuss projects with Mr. Self, he suggested they contact him later. Mr. Nelson announced that the deadline for having this on the next Board agenda will be two weeks from today. Mr. Casey Jones, Chairman of the Park Avenue Community Association, stated this program was presented to help the needy people and hoped the Board would enter a directive to the staff to follow those promises. Mr. Ralph Porter, 126 Maiden Street, representing P.H.O.E.B.E. and Uzuri Project, stated this project is not a construction or streetscape type project but is more the human service type project. He said they look at comprehensive community development from a holistic point of view and requested $2,000 when they submitted their proposal. However, they were not approved. The project would cost them $27,000, which would be $17,000 of in-kind from P.H.O.E.B.E. He said their goal in this project is to involve youth and leadership training that would create a positive relationship among the senior citizens of the African community to let them know the importance of what the community has done to the overall improvement of Hot Springs. He stated that P.H.O.E.B.E. views comprehensive community development revitalization as a holistic point of view, which is important in improving property and infrastructure and creating economic development opportunities. Director Maruthur expressed appreciation to those from the Park Avenue Community Association for attending. OTHER BUSINESS 30 Board of Directors Items Director Edwards announced that the Prayer Breakfast will be held tomorrow at 6:20 a.m. at the Hot Springs Civic and Convention Center. EXECUTIVE SESSION Board of Directors Meeting 22 October 17, 2005 at 7:00 P.M.  A motion was made by Director Smith, duly seconded by Director Weatherford, that the Board adjourn into executive session; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Daniel, and Bush, total 6. Voting “no”: Director Edwards; motion carried. The Board adjourned into executive session at 9:15 p.m. RECONVENE TO OPEN SESSION The Board reconvened into open session at 9:45 p.m. Mayor Bush announced that no action was taken as a result of the executive session. 31 City Manager’s Report City Manager Kent Myers gave the following report: 1. Martin Marietta started the street paving project on Central Avenue today and will continue over the next several weeks. 2. The MLK Expressway dedication is scheduled for October 25, at 10:30 a.m., at the expressway interchange. Following that, there will be a luncheon at Magic Springs. 3. He encouraged the Board between now and the end of the year to use the paperless agendas. Director Maruthur stated that in some of the materials the Board has received, there is a reference that the grading and paving was going to begin soon from the gorge and work their way up Central to Spring. She said she is receiving complaints regarding the CBID No. 3 extension into the street and the permanency of it (the concrete). She stated that she plans to request this be removed at the next agenda meeting, which is a direct response from the all of the citizens of the City. Also, she has been presented with several petitions. Mayor Bush asked if she wants to declare the CBID void; and Director Maruthur stated that the problem is the concrete extensions into the street. She added the Board approved it as temporary with the parking, but it is permanent the way it is structured. She pointed out when they do the grading and paving, if they have to go back, it is going to be patched. Director Weatherford commented that the Board approved that as a six-month trial period; and in the beginning, it was discussed as temporary but is becoming very permanent. He noted the Board of Directors Meeting 23 October 17, 2005 at 7:00 P.M. State of Arkansas is spending a lot of money to pave that area, which is needed. He pointed out there will be areas where they have made planters; and a manhole that would have to be lowered, which would require digging a large hole. He pointed out that the Board has shortened the trial period to 90 days; and he has concerns with taking out a new pavement, which would leave a bump. He said that he wishes the Board would reconsider where it has narrowed it down. Director Daniel said that several years ago there was a beautiful street on Quapaw and Prospect; but within 60 days, there were cuts made by the telephone company because forethought was not put into utility work prior to it. He expressed concern with the paving of a new street and then having to tear it out. Director Edwards said the coordinating committee was formed in 1974, and he thought it was still in force that they still work together. City Manager Kent Myers advised it is still in force; and when they complete the paving, the City will be cutting it for the street walk. He stated paved stone for the street walk will be installed, and they will receive calls on that. According to Public Works Director Steve Mallett, crosswalks cannot be installed prior to the paving. Director Daniel pointed out that can be justified but concrete barriers are different. 32 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 9:45 p.m., to meet again on Monday, November 7, 2005, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 24 October 17, 2005 at 7:00 P.M.