Board of Directors

MINUTES BOARD OF DIRECTORS MEETING NOVEMBER 7, 2005, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, November 7, 2005, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Mr. Les Warren, 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, and Mike Bush, total 6. Absent: Director Tom Daniel. 2 Approval of Agenda A motion was made by Director Smith, duly seconded by Director Maruthur, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of October 17, 2005 Board Meeting A motion was made by Director Edwards, duly seconded by Director Jones, that the minutes of the October 17, 2005 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Mayor Bush recognized guests from the Sister City, Hanamaki, Japan, who are in the City to share the art of Japanese calligraphy. They have held classes at a Gallery Walk and at the Hot Springs Mall this weekend and are visiting the local schools. He said the City wants to thank approximately 4,000 Hanamaki citizens who donated more than $3,500 to help meet the needs of students who have been displaced by the recent hurricanes and are now attending area schools. Mayor Bush presented the group from Hanamaki letters of greetings for the Honorable Mayor Watanabe and Mr. Odashima, chairman of the Hanamaki International Association and presented a gift to the group on behalf of the Board of Directors. A citizen of Hanamaki addressed the Board stating that the three of them have given demonstrations at the Gallery Walk, the community college and high schools, and expressed appreciation for the warm reception they have received and for the hospitality shown by their host families. CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (October 19, 2005). 6 Proposed Resolution No. R-05-324 Approving Certain Bid Awards (a) Thirty-two Refuse Containers- Sanitation [awarded to Ameri-Kan in the amount of $32,872]; and (b) Towing Service - Police [annual supply contract awarded to Combs and Burks]. 7 Proposed Resolution No. R-05-325 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Willow Heights Garden Homes. 8 Proposed Resolution No. R-05-326 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to the 1100 Block of Airport Road (Condominium Project). 9 Proposed Resolution No. R-05-327 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to the Central Crossing Commercial Subdivision. 10 Proposed Resolution No. R-05-328 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to 1340 Highway 70 West Condominium Project. 11 Proposed Resolution No. R-05-329 Declaring the Arkansas Department of Environmental Quality as the Designated Management Agency for the City’s Wastewater Service Area. Board of Directors Meeting 2 November 7, 2005 at 7:00 P.M. 12 Proposed Resolution No. R-05-330 Appointing Sandy Scott and Blake Hogue to the Hot Springs/Garland County Beautification Commission. 13 Proposed Resolution No. R-05-331 Extending an Agreement with Benches Etc. Inc. for the Placement of Public Benches Bearing Advertising Within the City. 14 Proposed Resolution No. R-05-332 Extending an Agreement with Jordan, Woosley, Crone and Keaton, Ltd., for Audit Services for the City. 15 Proposed Resolution No. R-05-333 Extending an Agreement with Regions Bank for the Provision of Certain Banking Services. 16 Proposed Resolution No. R-05-334 Extending an Agreement with FleetCor Technologies, Inc. to Provide Fleet Fueling and Fuel Management Services for the City. 17 Proposed Resolution No. R-05-335 Extending an Agreement with First Transit for the Operation and Management of Hot Springs Intracity Transit. 18 Proposed Resolution No. R-05-336 Authorizing the Mayor to Execute a Lease Agreement Between the City and Mattie Moon (Transportation Depot). 19 Proposed Resolution No. R-05-337 Designating a Promissory Note of the City in Principal Amount of $830,000 to Finance Roll-Out Waste Containers and Related Equipment for the Sanitation Department. A motion was made by Director Edwards, duly seconded by Director Maruthur, that the Consent Agenda be approved. Upon discussion, Director Weatherford pointed out that the address has not changed on Item No. 8 (Proposed Resolution No. R-05-326 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to 1100 Airport Road [Condominium Project]). He questioned if the correct address is 1100 Airport Road, and Mr. Don Cochran, Director of Utilities, replied that was the address submitted on the set of plans. Therefore, he does not have another address. Director Board of Directors Meeting 3 November 7, 2005 at 7:00 P.M. Weatherford commented that the project they are clearing is in the 1100 block of Airport Road, but it is not 1100 Airport Road. Mr. Milton Raabe, engineer on this project, advised that it is 1131 Airport Road. He added it was originally submitted as the 1100 block of Airport Road because they did not have an address, but it will be 1131 Airport Road. City Manager Kent Myers suggested that it be changed to the 1100 block of Airport Road. Director Weatherford said he had no objections, and the address can be changed at a later date when the number is assigned. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. UNFINISHED BUSINESS 20 Proposed Ordinance No. O-05-86 An ordinance entitled, “AN ORDINANCE ANNEXING CERTAIN LANDS THAT ARE COMPLETELY SURROUNDED BY THE INCORPORATED LIMITS OF THE CITY OF HOT SPRINGS, ARKANSAS; AND FOR OTHER PURPOSES (PRETTI POINT),” was taken from the agenda for consideration. (Second Reading and Adoption) A motion was made by Director Weatherford, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the second time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the second 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 Jones, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. 21 Proposed Ordinance No. O-05-87 Board of Directors Meeting 4 November 7, 2005 at 7:00 P.M.  An ordinance entitled, “AN ORDINANCE ANNEXING CERTAIN LANDS THAT ARE COMPLETELY SURROUNDED BY THE INCORPORATED LIMITS OF THE CITY OF HOT SPRINGS, ARKANSAS; AND FOR OTHER PURPOSES (DAVIDSON DRIVE),” was taken from the agenda for consideration. (Second Reading and Adoption) A motion was made by Director Edwards, duly seconded by Director Weatherford, that the rules be suspended and the ordinance be read for the second time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the second 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 Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. 22 Proposed Ordinance No. O-05-88 An ordinance entitled, “AN ORDINANCE ANNEXING CERTAIN LANDS THAT ARE COMPLETELY SURROUNDED BY THE INCORPORATED LIMITS OF THE CITY OF HOT SPRINGS, ARKANSAS; AND FOR OTHER PURPOSES (EASTGATE II),” was taken from the agenda for consideration. (Second Reading and Adoption) A motion was made by Director Edwards, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the second time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the second 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 Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. NEW BUSINESS Board of Directors Meeting 5 November 7, 2005 at 7:00 P.M. 23 Proposed Resolution No. R-05-338 A resolution entitled, “A RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER AND WASTEWATER SERVICE TO EAGLE ROCK 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 resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, stated this is located approximately in the 3500 block of Spring Street; and the developer is Market Place Development Corporation. The subdivision will consist of 45 residential lots and is located approximately two miles from the City. The developer will be responsible for all costs associated with the construction of the utility lines, and they are required to install these lines according to the City’s specifications. With the development being two miles from the city limits, annexation does not appear to be feasible. He stated there was a question regarding how many homes this line extension would serve in the future and noted this line will be fed through the existing utilities going through the Crossgate Church property, which is an eight-inch water main. The new line will be a six-inch water line going to this development and should serve 800 to 1000 homes should it ever expand. Mayor Bush asked what this means to the City going through the Crossgate property. Mr. Cochran advised that along with the approval of this resolution, the City is asking that the City would accept the lines that go through the church property; and they have provided the City with those easements. By approving this development, the City will accept the responsibility of those lines that go through the church property. At the present time, the City is responsible to the water and sewer main up to the church property but not within the grounds of the complex. If the Board agrees that it wants to serve this development, he would recommend taking responsibility of those lines as well. Director Smith asked if there is sufficient capacity and pressure to handle this, and Mr. Cochran replied there is a 12-inch line on Highway 70 East going up to the church property. Inside the complex, there is an eight-inch water main with the church being the only customer on that water main; and this would be a six-inch water main that ties to the eight-inch main. He stated it should be plenty of capacity for these homes and many homes beyond that. It will allow future development to connect between the line that is to the west on Spring Street and could eventually loop into this system and would help the future development in that area as well. Board of Directors Meeting 6 November 7, 2005 at 7:00 P.M.  City Manager Kent Myers stated that Crossgate has a mater plan showing a number of additional school and church facilities, which are multi-story structures. He asked if the demand on those facilities was considered in this analysis; and Mr. Milton Raabe, engineer on the project, advised that it was. Therefore, he does not foresee a capacity problem. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the resolution was declared adopted. 24 Proposed Resolution No. R-05-339 A resolution entitled, “A RESOLUTION APPOINTING MEMBERS TO THE ARTS ADVISORY COMMITTEE,” was taken from the agenda and read by title only. A motion was made by Director Edwards, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers stated this committee is currently chaired by Ms. Carole Katchen; and when the committee was originally established, Director Burt Newell was serving on the committee. However, he is no longer on the Board of Directors. He stated there is a blank in the resolution for a Board Member, which will need to be submitted. At this time, Director Smith expressed a desire to serve on this committee. A motion was made by Director Jones, duly seconded by Director Weatherford, to appoint Director Steve Smith to the Arts Advisory Committee; and upon voice vote, the motion unanimously carried. Mayor Bush then called for a vote on the motion to adopt the resolution; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the resolution was declared adopted. 25 Proposed Resolution No. R-05-340 Board of Directors Meeting 7 November 7, 2005 at 7:00 P.M.  A resolution entitled, “A RESOLUTION APPROVING THE DESTRUCTION OF CERTAIN CITY RECORDS (POLICE DEPARTMENT),” was taken from the agenda and read by title only. A motion was made by Director Edwards, duly seconded by Director Weatherford, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Jones, Smith, Weatherford, Edwards, and Bush, total 5. Voting “no”: Director Maruthur. Absent and not voting: Director Daniel, motion carried. Whereupon the resolution was declared adopted. 26 Proposed Ordinance No. O-05-96 An ordinance entitled, “AN ORDINANCE ACCEPTING THE ANNEXATION OF CERTAIN TERRITORY TO THE CITY OF HOT SPRINGS, ARKANSAS; MAKING SAME A PART OF THE CITY OF HOT SPRINGS; AND ASSIGNING SAME TO A DISTRICT (WOODLAND ESTATES),” 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 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 Weatherford, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. 27 Proposed Ordinance No. O-05-97 An ordinance entitled, “AN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE REPAIR TO HEAVY EQUIPMENT CRANE (UNIT 8637) FOR THE UTILITIES DEPARTMENT,” was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read 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. Board of Directors Meeting 8 November 7, 2005 at 7:00 P.M.  Upon discussion, Mr. Don Cochran, Director of Utilities, stated this is a sole-source purchase for parts and labor for the repairs of a heavy equipment crane to T-Rex Utilities. The crane was purchased by the Utilities Department from the U. S. Government surplus inventory and is in need of several maintenance items. These repairs are necessary to operate the equipment safely, and there is only one vendor that can be used. The estimated cost of repairs and labor is $14,500. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. 28 Proposed Ordinance No. O-05-98 An ordinance entitled, “AN ORDINANCE ADOPTING A HOT SPRINGS VACANT STRUCTURE CODE; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Smith, 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 Maruthur, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Mr. Bart Jones, Rehab Administrator, explained this code addresses vacant residential and commercial properties. It states the structures have to be impervious to the elements, and it also addresses how they will be maintained once they are made impervious, such as if the windows are boarded up, the boards have to be painted the same color as the outside facade. If there is a vacant structure, it needs to be maintained at a certain standard where it will not adversely affect the neighborhood. He added this was presented to the Building Codes Advisory Committee, which recommended adoption. Ms. Malinda Herr-Chambliss, P.O. Box 2840, Hot Springs, stated she is not for or against the ordinance since she has not read it in its entirety but asked that the Board consider other newcomers to Hot Springs with a vision to bring another international focus on Hot Springs, which would highlight not only the arts but the health and education. She noted there are imperfections in the projects that may or may not be ongoing but need to consider what the long-range effect would have on the economic impact of Hot Springs. Board of Directors Meeting 9 November 7, 2005 at 7:00 P.M.  Director Maruthur questioned with which part of the ordinance did she have a problem, and she responded that she has not seen the entire ordinance and is present tonight as a fact-finding for herself. She added that she is not present in any controversial type of position. City Manager Kent Myers asked for an explanation on how this ordinance might impact the Goddard Hotel or any other large building. Mr. Mike Scott, Chief Building Official, explained that any project such as the Goddard and other similar projects around town, the City requests that they get building permits and then have open building permits. If they are going to do construction, the City would like to have the building secured. If there is work on the front of the building, then the back needs to be secured so it is not open to the public. He commented if an individual has an open building permit and is going to work on the building, Code Compliance encourages that. He stated this code does not prevent them from doing that. Mr. Bart Jones showed slides of examples of how these structures can look if they are secured correctly. He added the structures are much safer, last longer, and are impervious to the elements. Director Jones asked how long the boards can remain, and Mr. Jones advised that it depends on the structure. He commented if the structure has a roof, as is required and is not leaking and the boards are maintained, he would like to see windows in the structure; but the ordinance says the windows cannot have cracks and holes. He pointed out the City Attorney has said it is not against the law to have a vacant structure. Director Maruthur commented that the ordinance states that all of the exterior surfaces are supposed to be exterior not interior surfaces placed on the outside; and this has not been enforced. Mr. Jones replied that the City does want permanent exterior products on the outside of buildings. Mr. Carl Worix, 116 Grove Street, stated that he has rental units in a historical district and questioned if he would be eligible for funding to repair his property. Director Jones replied that the CDBG funds are for owner-occupied homes that need repairs in the district. Board of Directors Meeting 10 November 7, 2005 at 7:00 P.M.  City Manager Kent Myers added that the City currently does not have funding for rental housing; however, the City is compiling other funding programs that will be announced early next year. Dr. Mary Mason, owner of the former Benini building in the Historic District, and also 824 Central, formerly known as the Goddard, said that she has wonderful plans for the Goddard, both physically and functionally, involving the health and arts. She stated that she has adhered to code, environmental, and health and protective issues since the beginning. She said it is the intention that this building set an example as a lead green project building, which extends the time it takes to complete necessary forms and procedures. She will be in Atlanta this week for the annual AIA green project meeting; and while she is there, she will also interview a few more architects and other firms that specialize in this type of environmental concern. She stated this type of environmental construction contributes in the long-run to the preservation of historic buildings. Mr. Dennis Magee, 318 Bower Street, said he has not read the entire ordinance and requested that the Board not vote on it tonight and postpone it until the particulars are published. He stated there are numerous buildings that will fall under this code in the downtown area. He mentioned that those involved in buildings, especially with concern for the historic preservation of those buildings, have many questions about what the impact to them would be. He said he would like to have time to read the ordinance and attend the next Board Meeting, believes the Code Compliance Department rules are very sufficient. Director Maruthur questioned when he read about this ordinance, and Mr. Magee said that it was in Sunday’s newspaper. Director Maruthur asked if he contacted anyone for a copy of the ordinance, and Mr. Magee replied that he has been busy and unable to contact anyone. Director Maruthur pointed out that there is nothing in the ordinance that should prohibit anyone from doing any improvements. Mr. Magee stated that in construction, at times a building has to be temporarily secured such as using nonexterior material to cover a hole. Also, if a building is vacant and no repairs are made, then it needs to be secured. He noted there is a code in place for that. He stressed that he would like to read the Vacant Structure Code, and then he can form an opinion. Mr. Les Sadler, 250 Park Avenue, said he owns several rental houses in Hot Springs and a building on Park Avenue, which he is in the process of renovating and putting in a business. He stated he was concerned if Code Compliance was going to require more money to be spent on his part. Mr. Jones advised if the building is secure, then this Code would not affect his building. Board of Directors Meeting 11 November 7, 2005 at 7:00 P.M.  Mr. John Girolamo stated he is involved in a number of projects in the downtown area, and his first concern is who authored this ordinance. He said the main problem is this ordinance would allow Code Compliance to enter buildings without a warrant, thereby leaving it to the discretion of the Code Compliance Department to enter any building. He said this does not only impact the property owners because sometimes property may appear vacant, but it impacts renters at the discretion of someone who will determine what they see from the outside. He noted that his concern is that many of the decisions made in the historic district and downtown have been made by outside. He questioned the hidden cost of this ordinance noting there are many costs. Director Maruthur asked Mr. Girolamo his home address, and he replied that it is 211 Fountain Street; and he is the owner of the Park Hotel. She also questioned if he was a resident of the City and if he had any document showing that he is registered. She noted that he has been appearing before the Board under the name of a corporation, and Mr. Girolamo responded that it is a matter of record. He added that he is a corporate entity within the City and has a residence in Hot Springs, a residence in New York City, and a residence in Miami Beach. Director Maruthur stated that she found the peeling of his materials that is next to the Belle Arti Restaurant unacceptable. Mr. Girolamo asked if she entered the building and what her description was, and Director Maruthur stated that it was concrete. Mr. Girolamo commented that Director Maruthur has stated to other people that it was “stunning and beautiful.” Director Maruthur mentioned that he has been attending the Board Meetings for eight years, and she has voted not to condemn his buildings. Mr. Girolamo pointed out this is not about condemning buildings. Director Maruthur said she is concerned about downtown and buildings that have trees growing from their roofs. Mr. Girolamo questioned how this relates to this ordinance, and Director Maruthur asked if he has shared this ordinance with anyone. Mr. Girolamo said he has shared it with his attorneys. Director Maruthur said that people tonight have said they are not aware of what is included in this ordinance, and Mr. Girolamo replied that many people are not aware of this. He added that he is aware of it because he makes the point to make sure it is done. He said some people do not have the privilege of reading it on Sunday morning and having to respond on Monday night. He commented this ordinance is a violation of people’s rights. Mr. Jerry McCrory, 114 Jennison Square, said he would like to speak for all of the people in the City who are living next to a building that is run down; but based on the reaction from the downtown people who are putting money into the City, he would suggest that the ordinance be explained or written to target the buildings. He mentioned that his mother and father live next to a house like that, which is a fire trap, and cannot walk inside without falling through the floor. City Manager Kent Myers explained that currently the City has an ordinance where it is able to condemn a building if it is structurally inadequate. Once it is condemned, then the City has the Board of Directors Meeting 12 November 7, 2005 at 7:00 P.M. ability to solicit bids to demolish and remove the structure, which is about 20 or 25 on an annual basis. He stated the Board has expressed an interest in dealing with other buildings that may not be falling in but are creating an eyesore in the neighborhood because they are not secure to the elements. Also, they are creating health and safety problems. Therefore, this is another tool that would be available to the Code Compliance officers to address those problems. He advised the example that has recently been mentioned is the Mountainaire Hotel in District 1, which is concrete construction. He stated if there were ever a tornado or calamity in the City, the Mountainaire would be a safe place to go. However, the appearance is bad and is a detriment to the neighborhood; but it is not condemnable because it is built of solid concrete. He commented this ordinance would provide the City a tool to use against the hotel to force the owner to clean it up and make it safe and secure. Mr. Girolamo said that he mentioned a building that a company he is in business with owns. He stated he has had Mr. Bart Jones sign exactly what was outstanding on that building, and the grass was too high. He commented there is no understanding of what a historic structure is, but every brochure mentions Historic Hot Springs. He emphasized the City does not have the right to violate property owners. City Manager Kent Myers advised this has been through a complete, legal review process by the City Attorney’s Office; and it is legal and enforceable. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. 29 Proposed Ordinance No. O-05-99 An ordinance entitled, “AN ORDINANCE CONTROLLING THE STORAGE, COLLECTION, TRANSPORTATION, TREATMENT, PROCESSING AND DISPOSAL OF ALL SOLID WASTE GENERATED WITHIN THE CITY OF HOT SPRINGS, ARKANSAS; REPEALING CERTAIN ORDINANCES; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Jones, duly seconded by Director Smith, 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 Board of Directors Meeting 13 November 7, 2005 at 7:00 P.M. question “Shall the ordinance be passed as read?” and upon motion of Director Weatherford, duly seconded by Director Maruthur, that the ordinance be passed as read. Upon discussion, Mr. Bill Burrough, Sanitation Director, explained this ordinance has three goals: (1) rewrite some of the definitions to be more consistent with other city departments, as well as ADEQ; (2) incorporate the change to the semi-automated service for the residential collection and small business collection using the roll-out waste containers; and (3) incremental rate increases over the next few years. He stated since 2002, the Sanitation Department, on a net basis, has lost between $400,000 and $550,000 a year, which is a result in an escalation in expenses without the escalation in revenues. The Sanitation Department has absorbed many significant increases over the past several years but has not passed those on at the rate they needed to be. He said they are looking at a five-year plan on how they could incrementally raise rates that would bring the Sanitation Department whole. They have not purchased any capital equipment over the past three years because of that situation. Their capital operational equipment is to the point where they have to start replacing some capital, such as the trucks they use for collection. In looking at this plan, they looked at the five-year plan on how they could take care of those capital needs and keep the rate increases to a minimum and do it incrementally. Going to the semi-automated system also brings in efficiencies that they presently do not have that will not only help provide a better service for the residents but lower the cost of doing the service. He advised this ordinance is a combination of incremental rate increases and lowering the expense that it takes to collect the waste. Some of the major service changes that the citizens and small business owners will see is going from twice-a- week collection to a once-a-week collection using the 96-gallon roll-out waste containers. There will be some 48-gallon containers available for the senior community. At the present time, the criteria is 65 years and older and live alone. He stated they may be able to open that up once they go through the initial phase of the containers they have. Another significant change will be servicing on the street versus alleyways. At the present time, there are several alleyways they do not plan on running under the new service that will be curbside collection. He said there may be some terrain issues and significant problems they run into where they may still have to service an alley, but primarily they will not be running the alleys. They do provide a free collection for yard waste and are there every other week, the same as for the recycling schedules. However, they have gotten into the issue of subsidizing some very large firms that are doing yard waste collection and are trying to get away from that. Regarding the yard waste, the only change will be limiting those to 50 bags per collection; and if it is over 50 bags, they will ask whoever is providing that service for the resident or the resident themselves to direct all of that to the compost. Concerning the rates, at the present time, it is $10 per month for residential collection and $13.15 for a small business. Those rates will be changing to 96-gallon containers at $12, and 48-gallon containers at $10. Over the course of this five-year period, actually four years with the rate increases, it is increasing to $12 in January 2006, which is $24 a year increase. If it is the 48-gallon containers that the senior community is eligible for, there will not be any increase over the five years. It will go up another Board of Directors Meeting 14 November 7, 2005 at 7:00 P.M. $1 in 2007; another $1 in 2008; and another $1 in 2009, which at the end of 2009, it will be $15 a month for the 96-gallon containers. In 2009 at $15 per month, Hot Springs will be lower than any city he has been able to find with comparable size that has the same working parameters as Hot Springs and will be cheaper in 2009 than today. Mayor Bush asked if this same rate will apply for citizens who have a 48-gallon container; and Mr. Burrough replied if they are eligible for the 48-gallon container, they will still pay $10 as they do at the present time. The City will not be going up on that rate throughout this program because that is for the senior community on a fixed income, who live alone and do not generate much waste. Mayor Bush questioned if there will be a method for senior citizens who cannot carry it to the curb, and Mr. Burrough advised that they currently have a program in place where they are able to take care of anyone who is disabled and will continue to do that under this system. Mr. Burrough stated that a portion of this is a five percent increase on the commercial dumpsters and is not throughout the five-year plan nor the four-year plan. That is a five percent increase in 2006 and a five percent increase in 2007. He said looking at this in 2005 in the projections, it appears this will be well maintained throughout the course of 2010. If the Sanitation Department continues to see escalation in prices of fuel or steel, they may have to look at it again in 2007 or 2008. At the present time, based on their current expenses and revenues, he believes this will hold true over the next four or five years barring any more catastrophes that may escalate the expenses. He added they will be getting information to the residents and media. Also, when they deliver the containers, they will deliver them before January 1. He asked that the residents not use those containers until January 1 since all of the equipment may not be retrofitted to be able to accommodate them; but after January 1, he urged citizens to use them There will be a guide in each container informing the residents how to take care of them; how to set it out for service; and if they want to get rid of their old waste containers at that time, leave them out with the new containers and the Sanitation Department will collect those during that time. He said that he can be reached at 321- 6911 and is asking residents to call the Sanitation Department now so they can answer their questions today versus January. Director Edwards questioned what will happen to the personnel that is presently working, and Mr. Burrough said their intent is to bring any of the employees who are currently on the contract crews onto the City’s staff. Many of those who meet the requirements and pre-employment criteria to be employed by the City already know the routes and are doing a good job. He stated they have budgeted for the employees for 2006, and he has met with the contractor and the employees and is trying to meet with them every couple of weeks to make their transition as easy as possible. He advised they will be retaining the contractor for a few months during the initial transition. He Board of Directors Meeting 15 November 7, 2005 at 7:00 P.M. said Mr. George Cochran has done a great service for the City for 35 years, and he will be working with the City for the first three months doing some route audits. Director Smith commended Mr. Burrough and his staff for holding the hazardous materials clean-up event two or three weeks ago, which was very well organized. Mr. Burrough stated that Garland County Environmental Services was a large part of that, as well as the Solid Waste District that funded that collection and hope it is something they can continue to do at least once a year. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 30 Board of Directors Items Director Jones expressed condolences to Director Tom Daniel whose sister passed away today. She acknowledged that Mr. Elmer Beard was in attendance. She urged everyone to vote tomorrow; and if people live in District 2 and vote at Webb Community Center, she would appreciate their voting. For those who are not registered, she can register them for next year. Director Edwards expressed appreciation to the Police Department for enforcing the yard sale ordinance and making citizens aware of the law regarding utility poles and removing their signs. Director Maruthur expressed appreciation to the ladies of the Hanamaki delegation that was introduced tonight. She mentioned there is a ginkgo tree in the Board Chambers and stated the City is close to starting a ginkgo tree program. She said there are about 96 that will be available and will be awarded to different organizations to be planted in the City. Their life expectancy is about 3,000 years and is the oldest tree in history. Director Smith encouraged everyone to vote tomorrow. Also, Friday is Veteran’s Day; and he asked that everyone remember what the veterans represent, noting without the veterans, citizens probably would not be voting tomorrow. 31 City Manager’s Report City Manager Kent Myers gave the following report: Board of Directors Meeting 16 November 7, 2005 at 7:00 P.M.  1. On the Consent Agenda, two members were appointed to the Hot Springs/Garland County Beautification Commission (Sandy Scott and Blake Hogue). 2. The Legislature periodically has some extra money in their General Improvement Fund to award to local groups and organizations for needed local projects. During the last session of the Legislature, the City’s delegation worked together to obtain money for a number of worthwhile groups, activities and projects. The City was awarded a general improvement grant of $50,000 for the Greenway project. On Monday, November 14, at 11 p.m., on the Greenway behind the Old Country Store, the legislative delegation will present that money to the City. He will be sending a reminder to the Board if there is an interest in attending. Representatives Rick Saunders and Bob Mathis will be at that presentation. 3. The ivory billed woodpecker was actually discovered by a local resident, Mr. Gene Sparling. He has indicated a willingness to make a public presentation on the woodpecker and has been on a number of national programs. On Friday, December 2, at the Hot Springs Civic and Convention Center, he and representatives from the Nature Conversancy will be making a presentation with photographs, videos, slides and visual displays on the ivory billed woodpecker. Invitations will be sent to Board Members, and there will be a reception following that presentation. 4. Staff is in the middle of budget discussions, and there has been one round of budget meetings with each department. Tomorrow, there will be a second round as they make additional cuts to get the budget balanced. The first budget work session is scheduled on November 21, at 5 p.m., prior to the regular Board Meeting. 5. Mayor Bush was wished a Happy Birthday, which is tomorrow, and presented with a cake. 32 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:25 p.m., to meet again on Monday, November 21, 2005, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Board of Directors Meeting 17 November 7, 2005 at 7:00 P.M.  Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 18 November 7, 2005 at 7:00 P.M.