Board of Directors

MINUTES BOARD OF DIRECTORS MEETING JANUARY 23, 2006, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, January 23, 2006, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Chaplain Ed Losey, Garland County Jail Ministry, 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 Elaine Jones, Steve Smith, Carroll Weatherford, Bill Edwards, Tom Daniel, and Mike Bush, total 6. Absent: Director Peggy Maruthur. (Note: Director Maruthur entered the Board Chambers at 7:45 p.m.). 2 Approval of Agenda A motion was made by Director Daniel, duly seconded by Director Edwards, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of January 9, 2006 Board Meeting A motion was made by Director Smith, duly seconded by Director Jones, that the minutes of the January 9, 2006 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Director Edwards recognized Mr. Tommy Brown, a long-time resident of the City.  CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (January 11, 2006). 6 Budget Transfers - Garland County Juvenile Court ($17,541) and Vehicle for City Attorney ($14,900). (Removed from Consent Agenda for separate consideration). 7 Proposed Resolution No. R-06-16 Approving Certain Bid Awards (a) Fire Hydrants - Utilities [annual supply contract awarded to National WaterWorks]; (b) Computers/Software - Various Departments [awarded to Dell/Gateway in the amount of $25,104.36 and Software House in the amount of $24,404]; (c) Waterline Relocation - Central/MLK Expressway [reject and rebid]; (d) Vehicles - Utilities [awarded to North Point Ford in the amount of $18,135; Little Rock Dodge in the amount of $14,490; Landers in the amount of $40,896; and Bale in the amount of $49,318.04;]; and (e) Vehicle - City Attorney [awarded to Little Rock Dodge in the amount of $14,886]. 8 Proposed Resolution No. R-06-17 Approving the Extension of Hot Springs Municipal Water Service to Lakeside Gardens Condominiums. 9 Proposed Resolution No. R-06-18 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to 1920 East Grand. 10 Proposed Resolution No. R-06-19 Approving the Extension of Hot Springs Municipal Water and Wastewater Service in the 1600 Block of McClendon Road. 11 Proposed Resolution No. R-06-20 Approving the Extension of Hot Springs Municipal Water Service to 2205 Albert Pike. 12 Proposed Resolution No. R-06-21 Awarding a Contract to BB&B Construction for Relocation of a Water Line at Central Avenue and Dr. Martin Luther King, Jr. Expressway. Board of Directors Meeting 2 January 23, 2006 at 7:00 P.M. 13 Proposed Resolution No. R-06-22 Adopting Fire Burn Permit Fee Pursuant to the Arkansas Fire Prevention Code (Ordinance No. 5162). 14 Proposed Resolution No. R-06-23 Revising the 2006 Budget by Appropriating Funds for Certain Prior Year Expenditures. 15 Proposed Resolution No. R-06-24 Authorizing the Mayor and City Manager to Execute a Memorandum of Understanding with the Arkansas Game and Fish Commission for Construction of a Boat Ramp at Sunnybrook Landing. 16 Proposed Resolution No. R-06-25 Approving Addendum No. 1 to an Agreement for Certain Real Estate Acquisition Services with Right of Way USA, Inc. Related to the Higdon Ferry Road Improvement Project. 17 Proposed Resolution No. R-06-26 Approving Addendum No. 1 to an Agreement for Certain Real Estate Appraisal Services with Frank Manzer & Associates Related to the Higdon Ferry Road Improvement Project. 18 Proposed Resolution No. R-06-27 Setting a Date for a Public Hearing to Vacate and Close All of State Street and a Portion of an Unnamed Alley Located in Evergreen Subdivision. 19 Proposed Resolution No. R-06-28 Setting a Date for a Public Hearing to Vacate and Close a Portion of an Unnamed Alley in Evergreen Subdivision. 20 Proposed Resolution No. R-06-29 Approving Certain Street Names (Dellmere Boulevard, Dellmere Drive, Dellmere Cove, Glenmere Court, Glenmere Place, and Crescenda Trail). 21 Proposed Resolution No. R-06-30 Appointing Dianne Morrison to the Parks and Recreation Advisory Committee. 22 Proposed Resolution No. R-06-31 Appointing Ben O’Neal III to the Board of Zoning Adjustment. Board of Directors Meeting 3 January 23, 2006 at 7:00 P.M. 23 Proposed Resolution No. R-06-32 Appointing James Clopton to the Planning Commission. 24 Proposed Resolution No. R-06-33 Awarding a Contract to Arkoma for Playground Structure and Installation at Linden Park. 25 Proposed Resolution No. R-06-34 Awarding a Contract to DCJ Construction for CDBG Infrastructure Improvements (Pleasant Street, Hobson and Oakcliff). 26 Proposed Resolution No. R-06-35 Authorizing the Mayor to Execute a Lease Agreement Between Carco Carriage Corporation, d.b.a. Hertz Rent-A-Car, for Space in the Terminal Building and Maintenance Building at the Airport. 27 Proposed Resolution No. R-06-36 Accepting a Grant from the State Aeronautics Commission for Reimbursement of Funds for the Replacement of the HVAC System in the Terminal Building at the Airport. 28 Proposed Resolution No. R-06-37 Approving Reimbursement to the City Manager for Funds Paid to the Arkansas Public Employees Retirement System by the City Manager on Behalf of the City. A motion was made by Director Daniel, duly seconded by Director Weatherford, that the Consent Agenda be approved. Upon discussion, Director Edwards requested that Item No. 6 Budget Transfer be removed from the Consent Agenda for separate consideration. Mayor Bush then called for a vote on the motion to approve the Consent Agenda, with the deletion of Item No. 6 (Budget Transfer); and upon roll call, the following voted “aye”: Directors Jones, Smith, Edwards, and Bush, total 4. Voting “no”: Directors Weatherford and Daniel, total 2. Absent and not voting: Directors Maruthur; motion carried. Board of Directors Meeting 4 January 23, 2006 at 7:00 P.M. 6 Budget Transfers - Garland County Juvenile Court ($17,541) and Vehicle for City Attorney ($14,900) A motion was made by Director Jones, duly seconded by Director Weatherford, to approve the budget transfers. In reply to Director Edwards, City Manager Kent Myers explained this budget transfer is to appropriate 2006 funds from the Board Reserve account. He stated the current balance in the Board Reserve Fund is $110,000; and the Board previously approved adjustments of $23,825. He noted that the Board has already agreed to support the Crisis Intervention Officer at Juvenile Court in the amount of $17,541 and the purchase of a vehicle for the City Attorney in the amount of $14,900. The total of that would leave $53,734 in the Board Reserve Fund for this year. Director Edwards questioned how those funds can be replaced, and City Manager Kent Myers advised that it does not need to be replaced. He stated that $53,734 will be the balance of that fund for the remainder of this year, and the Board controls that and can only be spent under authorization from the majority of the Board. Mayor Bush then called for a vote on the motion to approve the budget transfers; and upon roll call, the following voted “aye”: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Maruthur; motion unanimously carried. UNFINISHED BUSINESS 29 Proposed Resolution No. R-05-382 A resolution entitled, “A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE LEASE ADDENDUM NO. 3 WITH REEBAIRE AIRCRAFT (HANGAR A-3),” was taken from the agenda and read by title only. (Tabled December 19, 2005) A motion was made by Director Jones, duly seconded by Director Smith, that the resolution be adopted as read. Upon discussion, Mr. George Downie, Airport Director, reported this resolution was tabled pending Reebaire’s paying their rent on Hangar A-3, which they did and are current on all of their other hangars, except Hangar A-14, which there was a deferral at the December 19, 2005 Board Meeting. Board of Directors Meeting 5 January 23, 2006 at 7:00 P.M.  Director Smith asked if they said what they were going to do when it was tabled, and Mr. Downie advised that they did. Also, the Board requested an opinion from the FAA, which was a positive reply. Director Edwards questioned if the City knows it will receive the money, and Mr. Downie advised that this lease addendum stipulates there will be a meeting in June to review the finances again and establish a payback schedule. He added that at the present time, they are paying their fueling invoices, small hangar invoices, and rent fees. They are paying rent on Hangar A-5 and are current on all of the other hangars. In reply to Director Edwards, Mr. Downie stated that the Airport does not have a C.O.D. with them; and it was made clear to them in the meetings and discussions that they were to pay all of the other rents and fees in a timely manner. Mr. Danny Threlkeld, 200 Craig Street, Mena, Arkansas, attorney for Reebaire, said things are going better for Reebaire; and since Reebaire has been in the City, it has paid to the City over $1.4 million in rent in addition to other fees. He urged the Board to adopt the resolution. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Maruthur; motion unanimously carried. Whereupon the resolution was declared adopted. 30 Proposed Resolution No. R-05-383 A resolution entitled, “A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE LEASE ADDENDUM NO. 3 WITH REEBAIRE AIRCRAFT (HANGAR A-14),” was taken from the agenda and read by title only. (Tabled December 19, 2005) A motion was made by Director Daniel, duly seconded by Director Smith, that the resolution be adopted as read. Upon discussion, Mr. George Downie, Airport Director, advised that Reebaire’s customers filed bankruptcy and asked for a deferment of rent on Hangar A-14. They have made a statement that they will start paying rent on March 1, which is $19,000 a month. Mayor Bush questioned their arrears on this hangar, and Mr. Downie advised that it is $139,900. He noted with Hangar A-3, it will be $236,191.27. Mayor Bush asked when they will Board of Directors Meeting 6 January 23, 2006 at 7:00 P.M. begin to pay back the arrears, and Mr. Downie advised that there will be a meeting in June to review their books. At that time, the City will negotiate a repayment schedule. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Maruthur; motion unanimously carried. Whereupon the resolution was declared adopted. NEW BUSINESS 31 Proposed Ordinance No. O-96-5 An ordinance entitled, “AN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING TO ALLOW MANUFACTURED HOME OVERLAY DISTRICT IN R-4, MEDIUM/HIGH DENSITY RESIDENTIAL, IN THE 300 BLOCK OF GAINES STREET,” was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Daniel, duly seconded by Director Jones, that the ordinance be passed as read. Upon discussion, Mr. William Allen, 5169 Malvern Road, was recognized stating that he has requested the manufactured home overlay; and if this is approved, he will obtain any required permits and comply with all codes and ordinances. Deputy City Manager Lance Hudnell advised this was considered by the Planning Commission and unanimously approved at their last meeting. He stated Mr. Allen did an excellent job of going through this block and receiving permission from all of the property owners, with the exception of one, which is owned by an out-of-state person who purchases tax-delinquent properties but was unable to receive a response from that individual. This is an area that the Planning Commission is looking at, not only this block, but possibly of their own initiative expanding the manufactured home overlay district in this area. Director Jones said she believes it will improve the appearance of that section of town if it is done correctly. Board of Directors Meeting 7 January 23, 2006 at 7:00 P.M.  Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Maruthur; motion unanimously carried. Whereupon the ordinance was declared passed. 31A Proposed Ordinance No. O-06-6 An ordinance entitled, “AN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING LAKESHORE DRIVE FROM R-2, SUBURBAN RESIDENTIAL, TO C-3, OFFICE/NEIGHBORHOOD COMMERCIAL DISTRICT,” was taken from the agenda for consideration. A motion was made by Director Edwards, duly seconded by Director Weatherford, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Edwards, duly seconded by Director Weatherford, that the ordinance be passed as read. Upon discussion, Mayor Bush announced that a letter has been received from Attorney Burt Newell requesting that this item be tabled until the next Board Meeting. A motion was made by Director Jones, duly seconded by Director Edwards, that the ordinance be tabled until the next meeting; and upon roll call, the following voted “aye”: Director Jones and Mayor Bush, total 2. Voting “no”: Directors Smith, Weatherford, Edwards, and Daniel, total 4. Absent and not voting: Director Maruthur; motion failed. Ms. Barbara Anable, 120 Sanson Place, asked that an amendment be made to the ordinance, which would limit the zoning change to the property seeking the change and not be applied to all the properties on Lakeshore Drive. She stated homeowners along Lakeshore Drive in the residential areas would be opposed to changing from R-2 to C-3. She mentioned that neither she nor many of her neighbors were given any notification of this change. If the amendment is not possible, she requested that the ordinance be tabled until notification is given to more people as this change would affect residents four miles away from the areas being considered. City Attorney Brian Albright clarified that the ordinance refers to Lots 4 through 11 of Spargo Subdivision. Board of Directors Meeting 8 January 23, 2006 at 7:00 P.M.  Mr. Burt Newell said he requested this ordinance be tabled because he was contacted this past week by the residents of Trojan Terrace asking that he assist them in objecting to this zoning change. Since that time, he has not had an opportunity to review the packet that was presented to the Planning Commission. He stated that approximately two years ago, this same proposal was presented for these lots; and the Board voted against it. He said he did not believe the circumstances have changed in any way that would alter the consideration. He requested that the Board follow its own precedent that was set two years ago when it denied this request. Director Daniel asked if he thought, knowing with the knowledge what was going to be built across the street, that individuals would still want to build residential on Lakeshore Drive with the shopping center. Mr. Newell commented the question is not what someone would want to build there, but what the residents relied on when they bought their lots in this area over the last 10 to 30 years. He pointed out they have a Bill of Assurance that says it is going to be residential. He said this Board was always hesitant to alter a residential zone just because of what may happen in an adjacent zone. He noted this has always been the fairgrounds and has never been a quiet area. He said he did not believe the fact that there is going to be a shopping center would change anyone’s desire to build a home there anymore than they would it being the fairgrounds. Deputy City Manager Lance Hudnell advised that the Planning Commission voted unanimously to approve the rezoning and considered comments from the neighborhood. He explained that the primary reasons for the Planning Commission’s decision are that they believe the character of this area and the topography will lend itself to commercial land use in the future as opposed to residential land use. He mentioned that the area being rezoned is a lower area, and the residential neighborhood is on the hill. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Smith, Weatherford, and Edwards, total 3. Voting “no”: Directors Daniel, Jones, and Mayor Bush, total 3. Absent and not voting: Director Maruthur; motion failed. Whereupon the ordinance was declared failed. Mr. Thomas Brown, 219 Euclid, was recognized and spoke on unrelated items, such as expressing appreciation to the Board for the way the trash is handled in Hollywood Park but objecting to the traffic problems in the downtown area. 31B Proposed Ordinance No. O-06-7 An ordinance entitled, “AN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING 1350 HIGDON FERRY ROAD FROM Board of Directors Meeting 9 January 23, 2006 at 7:00 P.M. R-2, SUBURBAN RESIDENTIAL, TO C-4, REGIONAL COMMERCIAL/OPEN DISPLAY,” was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be passed as read?” and upon motion of Director Jones, duly seconded by Director Smith, that the ordinance be passed as read. Upon discussion, Mr. Randy Fortner, 202 Dino, representing St. Joseph’s Mercy Health Center, stated that St. Joseph’s Mercy Health Center is in favor of the rezoning; and there are concerns regarding ingress and egress as provided by the developers. There are also concerns with the existing development plans regarding traffic flow on Higdon Ferry Road particularly in regard to the emergency room entrance at St. Joseph’s Mercy Health Center and the potential for the number of lights that could create another Central Avenue situation. Mr. Michael Mora, 712 Main Street, Houston, Texas, construction manager with SDI Realty, was recognized and introduced Mr. Lance Mills and Mr. Todd Butler with Ozark Civil Engineering from Bentonville, Arkansas, as well as Mr. Ernie Peters and Mr. Greg Simmons with Peters and Associates, traffic engineers, from Little Rock, Arkansas. Mr. Mora stated the development is prepared for more than 350,000 square feet of retail and restaurant dining and will provide employment and business opportunities for the citizens, as well as increasing the tax base for the City. In order for this site to work successfully, he said the main traffic signal needs to be located at the St. Joseph’s Mercy Health Center entrance and drive A for that site plan. He mentioned that is further substantiated by the independent traffic study that Mr. Peters and his firm put together. He advised that SDI Realty met with the hospital at the job site on January 12 to discuss the site plan, but they could not reach an agreement as to where the traffic signal would be located. Their original site plan was rejected by the hospital. They met on site with a hospital representative, Mr. Larry Burroughs, and came to an agreement that SDI would install a double “T” traffic signal – one at the ER entrance and one serving their development. Mr. Burroughs indicated that a traffic signal was needed at the ER entrance as a convenience for the doctors. They came away from that meeting with a double “T,” and the hospital supported the rezoning process at that date. Subsequently with Mr. Peters’ meeting with the hospital, they have again rejected that double “T” and indicated that the traffic signal needs to be located at the emergency entrance drive. Mayor Bush questioned that on Mercy Lane, where they propose the traffic signal, if this is the main entrance now to the fairgrounds; and Mr. Mora advised that their signal would be across Mercy Lane. Mr. Peters also informed Mr. Mora that the Arkansas State Highway and Transportation Department did not well receive the double traffic “T”; however, the double traffic Board of Directors Meeting 10 January 23, 2006 at 7:00 P.M. “T” is being currently implemented at the Pleasant Ridge Shopping Center in Little Rock. He advised that in Mr. Peters’ meeting with the Arkansas State Highway and Transportation Department, they have indicated that aligning McAuley Court and Werner is not a high priority; but SDI wants to work with the City to align that situation and make it correct. However, if that is not wanting to be done, it adds for further development of the site. Director Daniel said that he is opposed to installing traffic signals and does not need to create another problem with traffic signals on Higdon Ferry Road. He expressed concern with Lakeshore Drive and Panama pointing out that when motorists come from the west side of town, they will soon understand they can get off at the McLeod exit on MLK, come down McLeod to Panama up to the fire station where there is a traffic signal, and come in the other side off Lakeshore Drive and/or off Panama. He said his problem is that before any of this is done, there needs to be turn lanes on Panama and Lakeshore Drive to ease that traffic because all of the cars are not going to come in off Higdon Ferry Road; and it will not handle it even if it is four-laned. He said to install traffic signals to tie up their emergency entrance and exit is a waste of taxpayers’ money and time. He asked if they own any of the property at the northeast corner of that property that would border Lakeshore Drive and Higdon Ferry Road. Mr. Mora replied that currently there are plans for that site, but they do not own any property in the triangle. Director Daniel said last Friday night, the Police Department had to take officers off Central Avenue from the race track traffic and stop traffic on Higdon Ferry Road at the race track to get cars through MLK and also put officers at the south end of Higdon Ferry Road to get them back. Mr. Mora said that is why he employed Mr. Peters to study that in detail, and he has some counts and numbers for Panama and Lakeshore. Mr. Ernie Peters, with Peters and Associates Engineers from Little Rock, said they have conducted a traffic study for the site, which included some detailed traffic counts for the existing conditions and projecting volumes to the site. The traffic counts included counting the intersection of Lakeshore and Panama, and they assumed that some percentage of the traffic travels to the site via the route that Director Daniel described. He stated it may at some future date prove to be a more convenient cut-thru than what it is now. If that is the case, this developer has been advised by the City staff that dedication of additional right-of-way along Panama may be necessary; and they are prepared to do that. Based on the projected conditions they have analyzed, the intersection operates at an “A” or “B” level service for all the movements at the Panama and Lakeshore intersection. In the short-term, they do not expect there to be a problem. However, the dedication of right-of-way would permit additional lanes to be constructed at some future date should that be necessary. He added that Mr. Mora has referenced the traffic signal recommendations that they made, and they studied this in detail taking into account not just the volumes that are on the street now but also the projected volumes that the Arkansas State Highway and Transportation Department has made for the interchange ramps. The result of the recommendations is to signalize a single point of entry as the main access point into this development, at a point that is about 750 feet away from the Board of Directors Meeting 11 January 23, 2006 at 7:00 P.M. Werner/McAuley signalized intersection where the Arkansas State Highway and Transportation Department recently installed the traffic signal. Therefore, it would be 725 feet to the north of there. It would align with Mercy Lane so that the hospital would have the benefit of the traffic signal at that location, also. They have talked on several occasions with the hospital, which has communicated to him that they would prefer to have a traffic signal in this area at their ER drive at the north end of the hospital, which is also the very north end of this site. However, that does not work for the site because it is so far to the north of the site that it would not provide safe, convenient access into the site. He said it may benefit the hospital at that location, but it would not well suit the development. He advised that they have explored the possibility of the two traffic signals, but that did not meet with a lot of favor from the hospital, the City or the State. He commented that he did not believe signalizing two locations along this route is a viable option. He added it has associated with it certain risks of coordination that sometimes does not occur when there are closely spaced intersections. The Mercy Lane and the ER signal locations are only 315 feet apart, which is very close to space signals. Director Weatherford asked if they did a traffic study at the ER entrance, and Mr. Peters advised that they did one study and submitted it to the City. The developer then amended his site plan by reducing the amount of square footage and added another drive on Panama and McAuley Court, which resulted in smaller volumes distributed to the available access drives. He stated at the intersection of Higdon Ferry Road and the ER drive, all movements are “A” or “B” out on Higdon Ferry; the movements from the hospital site (from the ER drive) is a “D” level of service, which is with the full development of the site. He mentioned there is an “E” level of service coming out of the site, which is not desirable. The developer has indicated a willingness to limit the movements at that northerly drive that is opposite the ER, which would reduce the congestion and should ease the situation for access in and out of the ER. That would also cause that projected “E” level of service out of the site of that location and force those movements to come down to the traffic signal where they could be accommodated. Director Weatherford questioned when they changed that and asked if they did another study, and Mr. Peters replied that their first study was dated December 28; the revised study is dated January 9. Director Weatherford asked if anyone has that study, and Mr. Peters advised that they have not distributed it at this time. Director Weatherford questioned why he would not distribute that study so they would be aware of what is happening. He commented that he lives in that neighborhood, and there has to be a red light at the ER entrance. Director Maruthur pointed out there is a major medical facility, which serves the community, and there is a shopping center that is going to be built. However, the City cannot modify the medical facility to accommodate a shopping center. She stressed that the ER entrance/exit needs to be protected through the traffic, and it needs signalization. She pointed out Board of Directors Meeting 12 January 23, 2006 at 7:00 P.M. there are two exits or entrances on Lakeshore and Panama; and there is no reason there cannot be signalization on Higdon Ferry Road and have a three-lane on McAuley Court, which would include one for Panama. She said that she was told by former City Attorney David White, if the Board passes a rezoning, it cannot place conditions on it. However, if this is referred back to the Planning Commission and it becomes a Planned Development, the needed modifications for the hospital could be made in order to protect the ER entrance. She noted there are adequate places to enter and leave the center. She stated, however, there is a major problem at McAuley Court noting there are doctor’s offices; and when driving down Higdon Ferry Road, many motorists have turned down the Dr. Martin Luther King, Jr. Expressway because there is an ordinance that does not allow off-site signage. She suggested that there be a variance and get off-site signage in order to have a turn for Panama, the shopping center, and the medical offices. She pointed out the only way this can be achieved would be to refer this back to the Planning Commission for a Planned Development. She expressed concern if the Board rezones, the City cannot go by any promises that anyone makes with this rezoning. She emphasized it is more important to protect the emergency entrance/exit and the bottleneck it is going to create if there are two signalizations that are not properly planned out. She stated the only way that can be done is by holding a public hearing and referred back to the Planning Commission. She noted that the traffic study she has is dated December 28. Deputy City Manager Lance Hudnell commented that no one has seen the study of January 9 except in draft form. He added there are two steps to this process, and this is Step 1, which is to determine if this parcel of property should be considered for commercial use, which was considered at the Planning Commission meeting. The Commission did not get into the details of the traffic study at that time pending what happened tonight. If it is rezoned and because it is a multi-building site, it has to come back to the Planning Commission for review of a complete development plan. At that time, the Planning Commission would then discuss the traffic studies, and the City would ask them to update the traffic study. The Planning Commission’s role was to determine if this is a proper site and proper land use for a commercial establishment. He explained that the development plan would not necessarily come back to the Board of Directors if it is zoned commercial but would be considered at the Planning Commission level. If the Board desires for it to come to the Board of Director’s level, then it would need to be a Planned Development. He stated the purpose of a Planned Development being that every element of it when it is zoned PD, the actual site plan becomes part of the zoning. The alternatives for the Board are to approve or deny the rezoning. If the Board approves this rezoning as presented tonight, then it will come back to the Planning Commission for review of the development plan where they would discuss the traffic study. If that is not the Board’s desire, then the Board can refer it back to the Planning Commission for consideration of a PD. He explained that the Board is considering whether this parcel of property should be considered for a land use of commercial, and the Planning Commission has approved the land use part but has not approved the traffic study nor the development plan. He added they were deferring considering those until the Board Meeting tonight. Board of Directors Meeting 13 January 23, 2006 at 7:00 P.M.  City Manager Kent Myers stated that tabling action tonight would allow staff to address the concerns of the Board and St. Joseph’s Mercy Health Center in terms of a revised traffic plan, then bring this rezoning back to the Board with all of the concerns addressed in terms of traffic and signals. He stated it appears there are some concerns that cannot be resolved tonight so possibly the Board may want table it and allow staff to meet with a representative from the hospital and the Directors and consider it at a Board Meeting in February. Director Daniel questioned if the ordinance could be amended tonight, and City Attorney Brian Albright advised that if the Board wants to table it so that the Board is not approving the C-4, it needs to go back to the Planning Commission. He explained if the Board approves the use to a C-4, whether it is with the understanding of the traffic program or not, any other oversight from this point forward will be lost and that will be the purview of the Planning Commission. If the Board wants to continue to have oversight of this, then it needs to be remanded back to the Planning Commission and ask them to consider a PD. Mayor Bush said, in his opinion, the Board should rezone the property to commercial. A motion was made by Director Maruthur, duly seconded by Director Daniel, that the ordinance be tabled and referred back to the Planning Commission with the consideration for this to be considered as a Planned Development so that the Medical Center ER is protected and also that there can be some modifications made at McAuley Court; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. 31C Request from Mr. Jerry Pogue Regarding Continuation of City Health Insurance for Retirees Mr. Jerry Pogue stated that when he took his early retirement, he had used one sick day during his six years with the City, leaving 480 sick hours. He said that he considered he and his wife healthy; however, with the system today, individuals have to be perfect in order to obtain insurance between the ages of 62 and 65. He stated that the statistics show if people do not have insurance, better than one-half of the bankruptcies last year were due to people going without insurance. He noted that the state statute allows the City to make an exception and continue the insurance . He said that it will cost him over $13,000 a year at the present rate to stay on the City’s system and requested the Board’s consideration. A motion was made by Director Jones, duly seconded by Director Maruthur, that the request be approved. Board of Directors Meeting 14 January 23, 2006 at 7:00 P.M.  Upon discussion, Ms. Minnie Lenox, Human Resources Director, advised that Mr. Pogue, retired from the City after five years of employment; and if the Board approves this request, it will affect approximately 372 employees who presently have five or more years of service with the City. This will allow them also to keep the City’s insurance for life and not just until they are eligible for Medicare because the current state statute does not place a limit on how long an employee may remain on the insurance. She said it would be financially impossible for the City to maintain affordable health care coverage for current City employees. She added that she has information available on the Arkansas Comprehensive Health Insurance Pool (CHIP) that the retiree may take advantage of. She received a comment from City Attorney Brian Albright, who said that he reviewed A.C.A. §24-12-129 and A.C.A. §24-12-130. A.C.A. §24-12-129 does not place a cap on the age that a former employee may remain on insurance at his or her cost. Consequently, the provisions of A.C.A. §24-12-130 cannot place a cap on age. In the event that the City amends its policy to allow younger or less tenured employees to continue on insurance, the continuation could be for the rest of their life. She stated it would have a major, negative impact on the health insurance fund. Therefore, she requested that the Board deny the request for the extended continuation of COBRA coverage under the City’s health insurance plan. Director Jones said that when she started receiving insurance at her work from COBRA, it was understood and in writing that after 18 months, she was no longer eligible for COBRA insurance. She asked if that was stated anywhere, and Ms. Lenox replied that it was. She added it was sent out to employees once they terminate employment with the City, which is a federal law in COBRA. City Attorney Brian Albright added that in addition to what is stated in the employee handbook with regard to COBRA, State law also requires and the City complies that any employee over the age of 55 and has more than 20 years of service and is vested in the APERS program is qualified to continue coverage under the City’s insurance policy. He stated that is at the employee’s cost much like COBRA, but the State statute requires the City to go beyond what COBRA allows for when employees meet that criteria. He pointed out that the request before the Board tonight is for an employee who has five years of service. Mayor Bush then called for a vote on the motion to approve the request; and upon roll call, the following voted “no”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously failed. Board of Directors Meeting 15 January 23, 2006 at 7:00 P.M. 31D Proposed Resolution No. R-06-38 A resolution entitled, “A RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER AND WASTEWATER SERVICE TO 108 GINGER BLUE POINT,” 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, Mr. Don Cochran, Utilities Director, advised that staff recommends approving the extension of water and wastewater service to 108 Ginger Blue Point for property owner T. J. Lee. Mr. Lee has applied for his water meter and wastewater permits for this address, and there are existing utilities on Lakeland Point that can serve his lot. Mr. Lee’s lot is located in line of sight of the City limits. As a result of that, his request for water and wastewater service may result in annexation if the Board so desires. Mr. Jack Pascual, representing T. J. Lee Corporation, said they do not wish to be annexed into the City limits. Director Edwards questioned why he did not want to be annexed, and Mr. Pascual stated he lives in the city limits and builds in the city limits, but these particular people he is building for do not wish to be in the city limits. Mayor Bush pointed out that the resolution reads if the City provides water and wastewater, they will be annexed into the City and asked if it would be to the City’s advantage to annex them. Mr. Cochran said as far as water and wastewater, there would be no impact. However, as far as sanitation, police, and fire services, there is only one lot that the City will have to provide services to. Director Maruthur pointed out there is an isolated area and asked if they are building according to City code, and Mr. Pascual advised that they are. She questioned if the resolution requires annexation, and City Manager Kent Myers stated that the resolution stipulates that the City will provide water and wastewater service, contingent upon annexation. Director Maruthur made a motion to amend the resolution that the City extend the water and wastewater without requiring annexation since it is across the lake from another area that was brought into the City, There being no second, the motion died for lack of a second. Board of Directors Meeting 16 January 23, 2006 at 7:00 P.M.  Mayor Bush then called for a vote on the motion to adopt the resolution; and upon roll call, the following voted “aye”: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Voting “no”: Director Maruthur; motion carried. Whereupon the resolution was declared adopted. 31E Proposed Resolution No. R-06-39 A resolution entitled, “A RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER SERVICE TO CAMINO DEL RAY,” was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Smith, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Utilities Director, said that staff recommends approving extending a six-inch water line to provide fire service to the Garrett Excavation property on Camino Del Ray. This is property is used to store heavy equipment and fuel tanks, and they wanted fire protection for their facility. He stated this piece of property is contiguous with the city limits. Deputy City Manager Lance Hudnell pointed out that the area they want to extend water to is part of a much larger parcel that borders the City on the north and west. This is immediately behind Cornerstone, and annexation is part of this resolution. 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, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 31F Proposed Resolution No. R-06-40 A resolution entitled, “A RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER AND WASTEWATER SERVICE TO 134 SOUTH LAKELAND POINT,” 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 pointed out that the resolution in the Board packet did not include the wording “contingent upon annexation.” Board of Directors Meeting 17 January 23, 2006 at 7:00 P.M.  A motion was made by Director Smith, duly seconded by Director Weatherford, that the resolution be amended to include “contingent upon annexation,” and upon voice vote, the motion unanimously carried to amend the resolution. Mayor Bush then called for a vote on the motion to adopt the resolution, as amended; and roll call, the following voted “aye”: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Voting “no”: Director Maruthur; motion carried. Whereupon the resolution was declared adopted, as amended. 31G Proposed Resolution No. R-06-41 A resolution entitled, “A RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER AND WASTEWATER SERVICE TO 244 BAYOU POINT,” was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Smith, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers pointed out that the resolution in the Board packet did not include the wording “contingent upon annexation.” A motion was made by Director Weatherford, duly seconded by Director Edwards, that the resolution be amended to include “contingent upon annexation”; and upon voice vote, the motion unanimously carried to amend the resolution. Director Maruthur questioned if this is going to be annexed because of line of sight, and Deputy City Manager Lance Hudnell replied that it is to the north. Director Maruthur commented that she does not favor line of sight. In reply to Director Smith regarding the credit for the wastewater fees, Mr. Cochran advised that if they installed one of these condo units that has the same size water meter as the mobile home, then there would be no wastewater impact fee so they get unit-per-unit on their wastewater impact fees. They had 16 mobile homes, and they are having 20 condo units. Therefore, they will have to pay for four units. Mayor Bush then called for a vote on the motion to adopt the resolution, as amended; and roll call, the following voted “aye”: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Board of Directors Meeting 18 January 23, 2006 at 7:00 P.M. Bush, total 6. Voting “no”: Director Maruthur; motion carried. Whereupon the resolution was declared adopted, as amended. 31H Proposed Resolution No. R-06-42 A resolution entitled, “A RESOLUTION APPROVING THE SALE AND TRANSFER OF CERTAIN CHARTER AND SIGHTSEEING OPERATING PERMITS AND LICENSES FROM OUTDOOR ADVENTURE TOURS TO NATIONAL PARK ADVENTURE TOURS,” 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, Mr. George Linington, 205 McMahan Drive, said that he represents the National Park Adventure Tours, with his associates Dave and Betty Rosen. He requested that the Board approve the transfer of the permits from Outdoor Adventure Tours to National Park Adventure Tours. Director Smith asked if he attended the Transportation Advisory Committee meeting on this matter, and Mr. Linnington advised that he did. Director Smith questioned if they provided any financial documents, and Mr. Linnington replied that they did not. Director Smith asked if he understood that was part of the package, and Mr. Linnington said that he did not. He added that he understood he was to submit a business plan to show how they were going to operate. Director Smith asked if he submitted a plan, and Mr. Linnington said that he submitted a plan to Deputy City Manager Lance Hudnell regarding the procedures they were going to follow when they received their permits. However, he did not in regard to purchasing two buses and a van and renting a space downtown as a ticket office. He said the situation was that it would not be possible to proceed and purchase buses and van and lease a building unless he had permits. Director Smith pointed out that part of the approval process is to demonstrate the financial wherewithal to make this venture happen and apparently that did not happen. Mr. Linnington said that it did not as he stated it. Deputy City Manager Lance Hudnell commented that the items submitted to the Transportation Advisory Committee are included in the Board packets. He added they did not submit full financials, and he is not certain under the ordinance that they are required to submit those documents. In the past, he said the Transportation Advisory Committee sometimes has required that, but other times it has not. He commented they did have a discussion with regard to where they did their banking. Board of Directors Meeting 19 January 23, 2006 at 7:00 P.M.  Director Smith stated that as a veteran of that committee in previous years, he does not recall a transfer ever going through without any financials submitted. Mr. David Rosen, Little Rock, Arkansas, said that his involvement in the project is a result of his friendship of Mr. Linnington, who had worked for Cindy Anderson, Outdoor Adventure Tours. Regarding the financial aspect, he stated there was never any indication that any proof of financial viability was required; and he did not see that in any of the documentation. Director Daniel stated that on the application it says that the address of the principal place of business or dispatch office is 350 Central Avenue and questioned where it is located. Mr. Rosen explained that 350 Central is not the address. For the past several years, it has been listed as 300 Long Island Drive, which has been the operations center for a number of years. Director Smith pointed out that is the residence of the current owner of the business. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Edwards, Maruthur, and Mayor Bush, total 3. Voting “no”: Directors Weatherford, Daniel, Jones, and Smith, total 4; motion failed. Whereupon the resolution was declared failed. 31I Proposed Ordinance No. O-06-8 An ordinance entitled, “AN ORDINANCE REVISING THE PUBLIC DOCUMENT FEE SCHEDULE AS ADOPTED BY ORDINANCE NO. 5057 BY INCREASING THE FEE FOR FIRE INCIDENT REPORTS,” 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 Edwards, duly seconded by Director Jones, that the ordinance be passed as read. Upon discussion, Fire Chief Ed Davis advised this concerns Fire Department procedures for retrieval of documents, historical run reports, and also current run reports that are issued to insurance companies and private investigators. In the retrieval of run reports, especially those that are occurring before 2003, it has to be done by hand; and they have to go back into the archives and actually pull them. Sometimes this can take as long as 45 minutes to be able to find a certain fire. He said they would like to be able to recoup some of these costs, which is the reason for requesting Board of Directors Meeting 20 January 23, 2006 at 7:00 P.M. the increase the Fire Department charges for a copy of the run reports from $1 to $10; they do about 150 to 200 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, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 31J Proposed Ordinance No. O-06-9 An ordinance entitled, “AN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PROCUREMENT OF DATA CONVERSION FOR THE POLICE DEPARTMENT; AND FOR OTHER PURPOSES,” 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 Edwards, duly seconded by Director Maruthur, 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. OTHER BUSINESS 32 Board of Directors Items Director Edwards expressed appreciation for allowing some of the Directors to attend the Arkansas Municipal League in Little Rock. Director Smith reported on a fire in a chimney in District 3 on Saturday night. He expressed appreciation to the Fire Department for its promptness. He mentioned if people are burning real wood, there is a build-up of creosote in the chimneys and urged citizens to get them cleaned out. He stated that was basically the problem of the chimney fire on Saturday night. Also, there was not a smoke detector in the home, and the Fire Department has smoke detectors available. Director Jones expressed appreciation to everyone who participated in the Dr. Martin Luther King, Jr. weekend and stated the parade was the largest ever held. Also, there was a good speaker for the breakfast. Board of Directors Meeting 21 January 23, 2006 at 7:00 P.M.  Director Maruthur announced there is a new ambulance provider, LifeNet from Texarkana, and the City no longer has National Park Medical Center and St. Joseph’s. She stated it might save lives if there were house numbers on the homes or apartments, which is required by the local ordinance. She asked that all of the Directors start making notes of the homes and businesses that do not have proper numbers and to report anyone who does not have house or business numbers to the Code Compliance Department. She stated the numbers need to be no less than three inches. 33 City Manager’s Report City Manager Kent Myers gave the following report: 1. Regarding items on the Consent Agenda, the Board appointed Dianne Morrison to the Parks and Recreation Advisory Committee; Ben O’Neal III was appointed to the Board of Zoning Adjustment; and James Clopton was appointed to the Planning Commission. Another item on the Consent Agenda was a Memorandum of Understanding with the Game and Fish Commission for the boat ramp at Sunnybrook Landing. The Game and Fish Commission is doing a complete replacement of the boat ramp at that location. In addition, they are completely changing the road serving that boat ramp to make it safer and more convenient for the public. Also, there are other projects in that area to better serve the public: (1) a courtesy dock is being built at Entergy Park on Lake Hamilton; (2) there is a pavilion being constructed at Entergy Park overlooking Lake Hamilton; and (3) there is a dock being built at the pond at Entergy Park. All of the projects should be completed within the next 60 to 90 days. The Board approved new agreements covering right-of- way acquisition and appraisal services on Higdon Ferry Road. Federal funding has been received for Higdon Ferry Road and can move ahead on acquiring the property on Higdon Ferry Road between Central Avenue and the expressway. He commended Mr. Nelson Self, CDBG Coordinator, and Housing Rehab Specialist, Mr. Randy Ross, in their work on securing CDBG funding for the playground equipment at Linden Park and a landscaping project along Pleasant Street. 2. Applications were closed today for Planning and Development Director, but there was not an outstanding response to the ads. It appears there may be two or three applicants to be interviewed where normally there are four or five. There should be an interview schedule announced by the end of this week. 3. Last Friday night, he joined a number of other organizations in the community at a dinner sponsored by the American Red Cross organization, which was held at Hot Springs High School. A number of awards were presented to local agencies that were involved in the Katrina relief efforts. He accepted a certificate on behalf of the City for the services that the City provided and will get the certificate framed and displayed in the Board Conference Room. Board of Directors Meeting 22 January 23, 2006 at 7:00 P.M. 34 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:40 p.m., to meet again on Monday, February 6, 2006, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 23 January 23, 2006 at 7:00 P.M.