Board of Directors

MINUTES BOARD OF DIRECTORS MEETING APRIL 17, 2006, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, April 17, 2006, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Ms. Barbara Cooper, and Pledge of Allegiance to the Flag was led by Mayor Bush. Mayor Bush called the meeting to order at 7:00 p.m. 1 Roll Call Roll call was as follows: Present: Directors Peggy Maruthur, Elaine Jones, Steve Smith, Carroll Weatherford, Bill Edwards, Tom Daniel, and Mike Bush, total 7. 2 Approval of Agenda A motion was made by Director Edwards, duly seconded by Director Smith, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of April 3, 2006 Board Meeting A motion was made by Director Daniel, duly seconded by Director Maruthur, that the minutes of the April 3, 2006 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Police Chief Gary Ashcraft stated that the Junior Cops Baseball Team is unable to be present due to a ball game but plan to be present at the next meeting. CONSENT AGENDA  The Consent Agenda consisted of the following: 5 Public Safety Report (April 6, 2006). 6 Proposed Resolution No. R-06-128 Approving Certain Bid Awards (a) Paving - Public Works [annual supply contract awarded to Martin Marietta]; (b) Street Sweeper - Public Works/Street [awarded to River City Hydraulics in the amount of $118,587]; (c) Aluminum Sulfate - Utilities [annual supply contract awarded to Bay Chemical]; and (d) Eight (8) Police Units - Police [awarded to North Point Ford in the amount of $165,024]. 7 Proposed Resolution No. R-06-129 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Phase I of the Wheatley Village Subdivision. 8 Proposed Resolution No. R-06-130 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Motel Lane on Highway 7 South. 9 Proposed Resolution No. R-06-131 Approving Change Order No. 1 with Henderson Specialties for Repairs to the Lake Ricks Water Intake Structure. 10 Proposed Resolution No. R-06-132 Authorizing the Issuance of a Regions Bank Credit Card to Teresa Payne for Official City Travel to Hanamaki, Japan. (Removed from the Consent Agenda for Separate Consideration). 11 Proposed Resolution No. R-06-133 Awarding a Contract for Engineering Services to B&F Engineering, Inc., for the Design of a 30-Inch Raw Water Line from the Ouachita Water Treatment Facility to Lake Ricks. 12 Proposed Resolution No. R-06-134 Awarding a Contract for Engineering Services to Garver Engineering for the Design of the Lake Ouachita Water Intake Structure and Pipe Line. Board of Directors Meeting 2 April 17, 2006 at 7:00 P.M. 13 Proposed Resolution No. R-06-135 Authorizing a Master Lease Agreement with Regions Bank for Lease Purchase Financing Services. 14 Proposed Resolution No. R-06-136 Authorizing the Filing of a Grant Application with the Arkansas Historic Preservation Program for Training and Travel Expenses for the Historic District Commission and Staff. 15 Proposed Resolution No. R-06-137 Appointing Louis Kleinman to the Planning Commission. A motion was made by Director Daniel, duly seconded by Director Jones, that the Consent Agenda be approved. Upon discussion, Director Maruthur requested that Item No. 10 (Proposed Resolution No. R-06-132 Authorizing the Issuance of a Regions Bank Credit Card to Teresa Payne for Official City Travel to Hanamaki, Japan) be removed from the Consent Agenda for separate consideration. Mayor Bush then called for a vote on the motion to approve the Consent Agenda, as amended; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Voting Ano@: Director Weatherford; motion carried. PUBLIC HEARING 16 Public Hearing on a Petition to Vacate an Unnamed Alley Located in Gaines Addition This being the time and date set for a public hearing on a petition to vacate an unnamed alley located in Gaines Addition, Mayor Bush declared the public hearing. There being no comments, Mayor Bush declared the public hearing closed. Board of Directors Meeting 3 April 17, 2006 at 7:00 P.M.  NEW BUSINESS 17 Proposed Ordinance No. O-06-23 An ordinance entitled, AAN ORDINANCE VACATING A PORTION OF A CERTAIN UNNAMED ALLEY LOCATED IN GAINES ADDITION,@ was taken from the agenda for consideration. A motion was made by Director Smith, 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 AShall the ordinance be passed as read?@ and upon motion of Director Jones, duly seconded by Director Maruthur, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 10 Proposed Resolution No. R-06-132 A resolution entitled, AA RESOLUTION AUTHORIZING THE ISSUANCE OF A REGIONS BANK CREDIT CARD TO TERESA PAYNE FOR OFFICIAL CITY TRAVEL TO HANAMAKI, JAPAN,@ 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, Finance Director Dorethea Yates stated that later this month Teresa Payne and several Directors will be visiting Hanamaki, Japan; and one of the hotel reservations was made with the City=s debit card. She explained there was concern that once the they arrived and did not have an actual card to present in one of their names, there might be a problem. Also a credit card would help in the case of any unforeseen circumstances that might arise. Director Maruthur clarified that only one card will be issued, and there is no medical liability the City will be responsible for regarding the Board Members. Board of Directors Meeting 4 April 17, 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 Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 18 Proposed Ordinance No. O-06-24 An ordinance entitled, AAN ORDINANCE ACCEPTING A CERTAIN STREET AS A PUBLIC STREET (SECTION LINE TRAIL); NAMING A CERTAIN STREET (SECTION LINE WAY); AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Maruthur, 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 AShall the ordinance be passed as read?@ and upon motion of Director Daniel, duly seconded by Director Weatherford, that the ordinance be passed as read. In reply to Director Edwards, Public Works Director Steve Mallett explained the location of the street. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 19 Proposed Resolution No. R-06-138 A resolution entitled, AA RESOLUTION AWARDING A CONTRACT TO KIRBY SPECIALTIES, INC. FOR CONSTRUCTION OF THE SOUTHWEST WASTEWATER TREATMENT FACILITY,@ 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, Director of Utilities, explained this new Southwest Wastewater Treatment Plant will be located on Winkler Road and will provide service to wastewater customers west of Lake Hamilton in the Highway 70 West area. Board of Directors Meeting 5 April 17, 2006 at 7:00 P.M. Bids were received on February 28, 2006, and this project is funded through the State Revolving Loan Program and administered by the Arkansas Natural Resources Commission. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 20 Proposed Resolution No. R-06-139 A resolution entitled, AA RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER AND WASTEWATER SERVICE TO LAKE POINTE CONDOMINIUMS,@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Edwards, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, advised that the developer for Lake Pointe Condominiums is SJT Properties, LLC.; and the development consists of 14 residential units. The developer will be responsible for the installation of the utilities to the City standards and for the cost of installation. He noted this development is located within the City limits. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 21 Presentation of Condemnation Resolutions Mr. Bart Jones, Housing Administrator, gave a slide presentation on the proposed condemnation resolutions. 21a Proposed Resolution No. R-06-140 Board of Directors Meeting 6 April 17, 2006 at 7:00 P.M.  A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (609 SOUTH),@ was taken from the agenda and read by title only. City Attorney Brian Albright asked if anyone was present to speak against the resolution. There being no opposition, a motion was made by Director Edwards, duly seconded by Director Smith, that the resolution be adopted as read; and upon voice vote, the motion unanimously carried. Whereupon the resolution was declared adopted. 21b Proposed Resolution No. R-06-141 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (605 SOUTH),@ was taken from the agenda and read by title only. City Attorney Brian Albright asked if anyone was present to speak against the resolution. There being no opposition, a motion was made by Director Weatherford, duly seconded by Director Smith, that the resolution be adopted as read; and upon voice vote, the motion unanimously carried. Whereupon the resolution was declared adopted. 21c Proposed Resolution No. R-06-142 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (531 EAST GRAND),@ was taken from the agenda and read by title only. City Attorney Brian Albright asked if anyone was present to speak against the resolution. There being no opposition, a motion was made by Director Weatherford, duly seconded by Director Jones, that the resolution be adopted as read; and upon voice vote, the motion unanimously carried. Whereupon the resolution was declared adopted. 21d Proposed Resolution No. R-06-143 Board of Directors Meeting 7 April 17, 2006 at 7:00 P.M.  A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (529 EAST GRAND),@ was taken from the agenda and read by title only. City Attorney Brian Albright asked if anyone was present to speak against the resolution. There being no opposition, a motion was made by Director Weatherford, duly seconded by Director Jones, that the resolution be adopted as read; and upon voice vote, the motion unanimously carried. Whereupon the resolution was declared adopted. 21e Proposed Resolution No. R-06-144 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (426 EAST GRAND),@ was taken from the agenda and read by title only. City Attorney Brian Albright asked if anyone was present to speak against the resolution. There being no opposition, a motion was made by Director Daniel, duly seconded by Director Weatherford, that the resolution be adopted as read; and upon voice vote, the motion unanimously carried. Whereupon the resolution was declared adopted. 21f Proposed Resolution No. R-06-145 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (452 EAST GRAND),@ was taken from the agenda and read by title only. City Attorney Brian Albright asked if anyone was present to speak against the resolution. There being no opposition, a motion was made by Director Daniel, duly seconded by Director Weatherford, that the resolution be adopted as read; and upon voice vote, the motion unanimously carried. Whereupon the resolution was declared adopted. 21g Proposed Resolution No. R-06-146 Board of Directors Meeting 8 April 17, 2006 at 7:00 P.M.  A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (118 EUREKA),@ was taken from the agenda and read by title only. City Attorney Brian Albright asked if anyone was present to speak against the resolution. There being no opposition, a motion was made by Director Weatherford, duly seconded by Director Jones, that the resolution be adopted as read; and upon voice vote, the motion unanimously carried. Whereupon the resolution was declared adopted. 21h Proposed Resolution No. R-06-147 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (408 PROSPECT),@ was taken from the agenda and read by title only. City Attorney Brian Albright asked if anyone was present to speak against the resolution. There being no opposition, a motion was made by Director Weatherford, duly seconded by Director Smith, that the resolution be adopted as read; and upon voice vote, the motion unanimously carried. Whereupon the resolution was declared adopted. 22 Proposed Resolution No. R-06-148 A resolution entitled, AA RESOLUTION APPROVING AN APPLICATION FROM CECIL MARTIN, D.B.A. THE DUCKS OF HOT SPRINGS, FOR A SIGHTSEEING SERVICE OPERATING PERMIT,@ 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. Upon discussion, Mr. Cecil Martin, 379 Chappel Hill Road, stated he is requesting a sightseeing service at 326 Central with three permits. Director Edwards questioned the location of the three ducks, and Mr. Martin advised that he will keep one in the lot and rotate them as the present company does. Board of Directors Meeting 9 April 17, 2006 at 7:00 P.M.  Director Smith asked how many of his vehicles are Coast Guard-approved; and Mr. Martin replied that at the present time, there is one. Another one is in the process, and the other one shortly thereafter. Director Smith questioned how long the process takes to get Coast Guard approval, and Mr. Martin stated that it depends on the vehicle. He added there is one currently ready and will be a matter of getting with the Coast Guard and having it approved. Director Smith questioned the cost of insurance; and Mr. Martin stated it is $10,000 a year, per duck. Mr. Michael Sanders, 228 South Rogers Road, advised that he is speaking on behalf of National Park Duck Tours and Ducks in the Parks, who are in opposition to this request. Noting the last tragic duck accident, he said that passenger safety should be the number one concern of the Board in deciding whether to grant this application. He said it is his client=s understanding that the Ducks of Hot Springs intends to hire Mr. Jack Myers and Mr. Scott Bayles as employee drivers for the company, but Mr. Martin is not Coast Guard-authorized to drive one of the vehicles. He commented The Ducks of Hot Springs intends to lease two of these ducks from Mr. Jack Myers. His clients have received a letter from Mr. Barry Cole, operations manager for Chattanooga Ducks LLC, in Chattanooga, Tennessee, who is Mr. Myers= former employer; and distributed a copy of the letter to the Board. He pointed out in his letter, Mr. Cole relates a number of serious issues regarding Mr. Myers= management of duck maintenance for Chattanooga Ducks, including wiring problems on the ducks; welding work being performed by inexperienced, part-time employees; a number of flooding incidents; there were a number of trips that had to be canceled due to high-water alarms; and when Mr. Cole took over as operations manager, he found incomplete paperwork on the ducks, incomplete state registrations and inconsistencies in the financial reports. He noted that Mr. Myers withdrew his own application for a permit to operate a duck business approximately four years ago after admitting he had three previous flooding incidents that almost resulted in sinking of the duck. Regarding Mr. Bayles, the Ducks of Hot Springs has represented to the Transportation Advisory Committee that he has over 11 years= experience as a captain; but according to the Arkansas Employment Security Division, they have informed National Park Duck Tours that Mr. Bayles was likely collecting unemployment benefits during 2003 and 2004 when he was allegedly working for Myrtle Beach Duck Tours in South Carolina. Also, the state of South Carolina has no record of Mr. Bayles= employment with Myrtle Beach Duck Tours. As a result of his client=s inquiries, the states of Arkansas and South Carolina have launched an investigation into those matters. He pointed out that the Myrtle Beach Duck rides operated at a net loss of almost $4,000 in 2003; had income that was slightly over $24,000 in 2004; and was out of business in 2005. The Ducks of Hot Springs is projecting 2006 net sales of $250,000; operating expenses Board of Directors Meeting 10 April 17, 2006 at 7:00 P.M. of $182,000; and operating income of $68,000. He stated that his clients can assure the Board that these operating income figures are unrealistic given that these projections make no allowance for vehicle maintenance and repairs. His clients are concerned that under these conditions, granting the Ducks of Hot Springs an application may result in a situation in which duck tour safety in Hot Springs is once again compromised and set up a situation for another tragic duck accident. He commented another serious accident has the potential to destroy one of Hot Springs= most popular tourist attractions and in the process destroy his client=s businesses. He said National Park Duck Tours and Ducks in the Park have been providing safe duck tours at reasonable prices for the past several years and will continue to do so in the future. Director Maruthur commented that she is concerned with public safety and noted there are many activities downtown, and she would not want to place any of the citizens or tourists at risk. She emphasized that she cannot justify placing three more amphibious vehicles downtown. Director Daniel pointed out at one time there were thirteen licensed ducks downtown, but now there are six. He said it is his understanding that they rotate just like the other duck companies, which have six vehicles downtown. However, there are never two on the street at one time. He mentioned it has passed through the Transportation Advisory Committee; and the Coast Guard inspects the ducks and will not let one go out that is unsafe. He asked if there was a legal reason the Board should not vote for this tonight, and City Attorney Brian Albright advised that he cannot think of any legal reason why the application would be denied. He added the issues that have been addressed and set forth in the ordinance, such as public safety, are a concern the Board can take into account. However, the City has nothing to do with the inspection or the maintenance of the vehicles. City Manager Kent Myers commented there is an assumption Mr. Martin will get Coast Guard approval but asked if that provision could be added to the resolution so there is no doubt before any city permit will be issued, he will follow all Coast Guard regulations. City Attorney Brian Albright advised that could be added to the resolution. Director Maruthur said she is aware that the ducks rotate; however, she cannot justify to the citizens placing three more ducks on a bottleneck. She pointed out there is no provision in the resolution that says three cannot be running at the same time. She mentioned the street has been closed off to the parking deck, and it is free parking. However, the Board is now going to consider placing more vehicles on street; and she cannot support this. Board of Directors Meeting 11 April 17, 2006 at 7:00 P.M.  Director Daniel pointed out that the ducks are not going to be sitting on the street causing a bottleneck downtown. Director Maruthur replied that people are trying to figure out how to get into the parking deck, and there are now directional signs hoping they will use the parking facility. She said there is hopes of bringing more people downtown and getting full occupancy. She added if the bathhouses and stores become occupied, placing three more large, sightseeing vehicles downtown will not be good, common sense. She stressed this is just her opinion. Director Daniel asked where she thinks these three large vehicles will be located, and Director Maruthur replied they are supposed to be in the parking lot. However, they have to leave the parking lot and go down the street; and at the present time, there is a problem with vehicles going down the street. She stressed that she is referring to traffic and public safety. Director Daniel commented that traffic concerns should have been addressed in CBID No. 3 when parking was placed on the street. City Attorney Brian Albright advised that operation in CBID No. 2 requires that there not be any more than two sightseeing vehicles at any given time. When calculating that, the geographical boundaries of the district and the parking lots have to be used. He stated if Mr. Martin has one staged at his parking lot, he can have only one on the street within the district. Director Maruthur said with the ambulances, fire department, police department and another large vehicle, this would only be adding to an existing problem. A motion was made by Director Jones, duly seconded by Director Daniel, that the resolution be amended as follows: AThat the applicant shall provide proof of U. S. Coast Guard certification of all vehicles prior to licensing by the City of Hot Springs,@ and upon voice vote, the motion unanimously carried. Mayor Bush then called for a vote on the motion to adopt the resolution, as amended; and upon roll call, the following voted Aaye@: Directors Jones, Weatherford, Edwards, Daniel, and Bush, total 5. Voting Ano@: Directors Smith and Maruthur, total 2; motion carried. Whereupon the resolution was declared adopted, as amended. 23 Proposed Ordinance No. O-06-25 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING CERTAIN PROPERTY Board of Directors Meeting 12 April 17, 2006 at 7:00 P.M. LOCATED AT MALVERN AVENUE AND CARPENTER DAM ROAD, FROM R-2, SUBURBAN RESIDENTIAL, TO C-3, OFFICE/NEIGHBORHOOD COMMERCIAL DISTRICT AND TO C-TR, COMMERCIAL TRANSITIONAL,@ was taken from the agenda for consideration. (Appeal) A motion was made by Director Smith, 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 AShall 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, Deputy City Manager Lance Hudnell/Acting Planning Director, reported this was considered by the Planning Commission and was denied by a 3-3 vote. The petitioners have appealed to the Board to consider the rezoning, and the only change between the time of the presentation to the Planning Commission and tonight=s meeting is the elimination of a small parcel along Malvern Avenue originally known as Tract 3. He noted there have also been some modifications to the site plan. He emphasized that tonight=s meeting is to determine the rezoning, not approval of the site plan. He explained if the rezoning is approved, the site plan will have to return to the Planning Commission and undergo Article II of the Subdivision Code (a development plan, as well as the Malvern Overlay District). Some of the requirements of the Malvern Overlay District include special screening, lighting, additional sign regulations, building consistency, landscaping treatment, additional requirements with regard to parking, greenspace, and curb cut distances. There are several more requirements in the Malvern Overlay District than there are in other commercial districts and/or residential districts within the City. Director Maruthur asked if the Board decides to rezone, if conditions can be placed on changing the zone; and Deputy City Manager Lance Hudnell advised that the Board cannot do conditional zoning. City Attorney Brian Albright advised that this stage is for whether or not it is rezoned. If it is rezoned, it will go back to the Planning Commission; and the Planning Commission will then apply, along with staff, all of the requirements under the Subdivision Article II Code, as well as the Malvern Overlay District. Deputy City Manager Lance Hudnell noted that the current owner is the Hillcrest Children=s Home. Board of Directors Meeting 13 April 17, 2006 at 7:00 P.M.  Mr. Herbert Gray, 218 Forest Heights Trail, pointed out that this rezoning will change the residents= neighborhood as indicated by the 100 signatures on the petition. He pointed out they are not against progress nor people making money, but the residents do not see anything attractive about townhouses or half-empty strip malls, especially when these involve increased traffic in the area that cannot handle more at this time. He commented this area is located in the Malvern Avenue Overlay District, a district that was set up and designed by the Planning Commission to protect neighborhoods. He said the residents urge the Board to reject this rezoning proposal. Mr. Ed Snider, 2400 Crawford Street, Arkadelphia, Arkansas, stated he and Mr. Ron Lusby, who resides at 160 Red Oak Drive, appeared before the Planning Commission and are complying with several of their requests. He reported they have revised their proposal, and initially they had asked for two cuts on Malvern Avenue and two cuts on Carpenter Dam Road. The Malvern Overlay District states that a cut cannot be placed inside of 200 feet. He stated their new proposal is that one of those cuts will be 300 feet from the existing corner, and the second one will be 275 feet from the existing corner. The 275 feet is on Carpenter Dam Road, and the 300 feet is on Malvern Avenue. Another concession they are making is to donate to the City 50 feet of right-of-way off Malvern Avenue, along with 50 feet of depth and 50 feet off Carpenter Dam, along with 50 feet of depth for the purpose of building a turning lane from Carpenter Dam to Malvern Avenue. In their long-range plan, there was always a plan for the 50 feet to be taken by the Highway Department; and Mr. Cummins, the engineer, has told him that in 2009, that will become five lanes. Also, there will be a $10,000 contribution to the City for the purpose of assisting in the construction cost. In addition to the donation of the property and the $10,000 cash, they will design their shopping center parking lot so that it will discourage cut-thru traffic, to include, if necessary, speed bumps. They will agree that egress on the Malvern Avenue will be right-turn only and will contact the Highway Department to share their plans. He stated they will show them their timetable in hopes that the Highway Department will expedite its plans to make Carpenter Dam five lanes. He advised that their designer has drawn out a new plot plan, and this new design has one cut on Malvern and one cut on Carpenter Dam. He said they are going to build a earthen berm between the shopping center and the units; and they plan to fully comply with the Malvern Overlay District. They have reduced from 13 to 6 commercial available spaces for the purpose of making better use of the property and to fulfill the desires of the Planning Commission in order to reduce the congestion. They had a neighbor=s meeting, sponsored by the Hillcrest Children=s Home, last June. At first, they were not interested and decided to begin a new ministry for unwed mothers. The money they are being paid for this property will allow them to build the ministry on the 43 acres they own behind their Board of Directors Meeting 14 April 17, 2006 at 7:00 P.M. existing development. There is a letter in the Board packet from Mr. Bob Michels, administrator of Hillcrest Children=s Home, who has stated they are ready to move forward as soon as possible and think it will be in the City=s best interest to comply with their request as the City has identified in its Master Plan. City Manager Kent Myers noted there has been a change since the Planning Commission meeting. He pointed out there is a gate coming off Piper into the residential area so that will be a gated area which will be accessible only to the property owners from that residential area. There is also a gated area off Malvern Avenue, which will eliminate the cross traffic and taking a short-cut. He added there will not be any traffic access from the commercial area to Piper. Mr. Snider added there will be no access to Piper from the commercial area, and any access to the residential area will be controlled by a gate. Director Maruthur asked if Mr. Snider was an architect, and Mr. Snider stated that he is a retired bank president and an investor in this project. Director Maruthur questioned why there are over 100 people opposed to this, pointing out there are all of the basic services for this area. Mr. Snider said he believes it primarily relates to the existing traffic congestion. He stated that he believes there will be five or six commercial businesses there, including a bank, a pharmacy and a restaurant. Also, he believes the housing development will have 45 or 55 residents depending on the mix, but they are two and three- bedroom units. There are 98 parking places in the commercial section, and he said they will comply with the zoning requirements relating to the parking, etc. Also, they will landscape it. The property to the south of this 4.03 acres belongs to the Hillcrest Children=s Home, and they have said they will be glad for them to landscape that to tie it in. Director Maruthur questioned the number of town homes, and Mr. Snider replied there are 20; and 45 people would live in 20 town homes; also, there are 80 parking spaces for the 20 units. Each unit will have a two-car garage and two parking spaces in addition to the two-car garage. Director Maruthur pointed out this would easily bring in 150 people. Mr. Snider said they are trying to do the best they can with the land that is there. He pointed out they do not think all of it needs to be commercial; and for good business sense, they should separate the two. They are going to build an earthen berm behind the shopping center adjacent to the backside of the housing unit and are going to put a metal fence above it. There will be a pass-through gate for people who want to walk from the housing area onto the shopping center, but there will not be any automobile or bicycle traffic. It will be a pedestrian walkway and will be landscaped They want to plan Board of Directors Meeting 15 April 17, 2006 at 7:00 P.M. the ingress and egress with a gate off Carpenter Dam Road and a similar gate off Piper. The only way to get into that gate is by a code or a card. He said that he personally plans to move into one of the units. Mr. Dick Smedley, 119 Forest Heights Trail, spoke of the water run-off from the park parking lot, Carpenter Dam Road widening, and Arkansas State Police Headquarters (Troop K) parking lot. Also, the northern part of Wildwood Circle already floods and a large sub-development was approved at the end of Wildwood Circle. They are going to take care of their problem because they built a large concrete ditch around their subdivision. Moving on downstream is a professional building in front of the Lakeside School and a commercial development and retail outlet, which is being built on the hidden creek. He asked that the Board not allow eastern Malvern to have flooding problems like there is downtown. Ms. Debbie Wemette, 118 Forest Heights Trail, said she is opposed to the strip mall plan at the corner of Carpenter Dam and Malvern Avenue and the additional apartments or dwellings pointing out that the community will be negatively affected due to the change of zoning, a longer commute for the residents, more accidents due to increased traffic, traffic jams for exiting and entering this development and the mental toll on citizens due to high cost of gas as they sit in traffic. She said that she lives 2/10 of a mile from this intersection and has lived here for four weeks. Her family chose their home off Malvern because it has all of the charms of the country but all the amenities of the city. She and her family requested that the Board uphold the decision to deny this development. She encouraged the Board to bring this economic development downtown where the buildings appear blighted. Director Maruthur stated that she received letters today from people who do not live in the area but are connected in architecture and landscaping. She noted that it is beautifully laid out, but she has to respect the will of the people and will not support this. She commented that she did not understand why they are opposed to it except for the traffic. However, she has to respect the fact that they are opposed to it. Director Daniel said he met with Mr. Snider and staff today, and they made some concessions. In the Master Plan, this property all the way down Carpenter Dam Road to Shady Grove Road will be commercial someday. He said that the problem he has now is that the City is experiencing a growth, which is good. However, many times the Board makes decisions based on issues that are not sound judgment; and sound judgment tells him that if there is an overloaded traffic intersection, even though motorists are going to make complete right turns out of the shopping center onto Malvern and right turns off of Carpenter Dam, he questioned how they will get back down Carpenter Dam Road to Board of Directors Meeting 16 April 17, 2006 at 7:00 P.M. where they live if they are doing business at the drug store, the bank, or the restaurant. He checked the number of accidents at that intersection in the last 10 or 11 months, and there were 16 accidents in almost a year. As far as traffic going across the parking lot, which is on the opposite corner of Simmons Bank parking lot, that is where many of the accidents happen because motorists are cutting across to avoid the traffic. He stressed that a right-hand turn lane on Malvern Road going toward Malvern is needed, as well as the five lanes on Carpenter Dam Road. He stated that he cannot, in good conscience, vote for this rezoning. Director Edwards said he has received letters, plus many telephone calls; and most of the people in that area are not opposed to progress but are opposed to a change in their neighborhood. Director Smith stated this area has been somewhat under siege the last couple of years with development. He mentioned this is an attractive project, but he is of the opinion it is time that the neighborhoods prevail. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Ano@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously failed. Whereupon the ordinance was declared failed. 24 Proposed Ordinance No. O-06-26 An ordinance entitled, AAN ORDINANCE AMENDING THE CONDITIONAL USE PERMIT APPLICATION NOTICE REQUIREMENTS IN THE CITY OF HOT SPRINGS ZONING CODE (ORDINANCE NO. 5158), AS AMENDED; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Jones, duly seconded by Director Daniel, that the ordinance be passed as read. Upon discussion, Deputy City Manager/Acting Planning Director Lance Hudnell, explained this is to reverse an action taken by the Board some months ago until such time as the City can get its software in place to allow staff to do more extended conditional use notices. An addition was made to the ordinance from the prior ordinance and that is if the Board of Directors Meeting 17 April 17, 2006 at 7:00 P.M. adjoining property owner happens to be the same owner, then they would go one more parcel. Director Maruthur said there was a 300-foot notification for a conditional use and that was put into place because many people were omitted; and by the time the appeal came, a lot of new information came out. She questioned when the new software will arrive, and Deputy City Manager Hudnell replied that it will be around this time next year or earlier. Director Maruthur stated this is a financial decision because of postage and asked if there is any creative way for larger signs to be installed for the conditional use so that the people who are not being notified, but are being affected, will know about what is happening in their neighborhood. Deputy City Manager Lance Hudnell explained this is not a financial issue because of the postage but relates to the volume of the number of owners to locate. He added that staff has to create a paper map now, send that paper map over to the County, and have the County pull all of the owners based on a hand-drawn circle on that map. By the time the County researches those owners and returns the list to the City, it is almost past the deadline for getting the notices out. Regarding the signs, the City uses the same signs on the rezoning notices as well as the conditional use notices, which is the 200 feet. He stated the City is going to do the process that it is doing with regard to the software; and when that is in place, if the Board decides to go back at that time, it will not cause near the problem it does now because it will take a few minutes as opposed to several hours. He said the reason staff did not do that is because it is part of the Zoning Code. Director Maruthur stated this is being changed not because the 300 feet is not working but because it is labor intensive staff time and postage. Deputy City Manager Lance Hudnell commented it is not necessarily the postage, but the 300 feet brings in many more owners. Director Maruthur said she has been told by the Planning Commissioners this costs a lot of money, and Deputy City Manager Lance Hudnell replied that it does cost, but that is a budgetary item. Director Maruthur said she would like to have a resolution that reflects staff is going to bring this back, and there is no problem with the 300-foot notification when something changes for a conditional use because a conditional use goes with the property. She stated conditional use sounds temporary, but it actually goes to the real estate and one person can leave and sell it; and it will be permanent. Deputy City Manager Lance Hudnell commented it depends if they meet the conditions for which that use was done. Director Maruthur said she would like to see a stipulation in the resolution that the City will revert back to the previous notification level. City Attorney Brian Albright suggested addressing that with the application fee schedule, which is the next item on the agenda. Board of Directors Meeting 18 April 17, 2006 at 7:00 P.M.  Director Smith pointed out that the City has an annual supply contract with a title company and asked if that would help in a case like this. Deputy City Manager Lance Hudnell said if the Board wanted to go to that expense, it could get the title company to do it. He added this is on a per-case basis and is $75 or $125 a case, and that is to run limited title searches but not to research ownership. Therefore, he did not know what their cost for that would be. Director Smith questioned how many situations like this would happen in a year, and Deputy City Manager Lance Hudnell commented that it is about ten conditional uses a Planning Commission meeting, which is about 120 a year. He stressed the cost today is for a limited title search, which does not involve other properties and only involves a parcel. Director Smith stated that he thinks it would be worth having a conversation with the title company and see what they would charge to help out on this scenario. He said that he shares Director Maruthur=s concern noting there is some abuse potential, and he agrees with the notification problem. He commented more people need to be notified what is happening in their neighborhood; and if this is rolled back and it stays there, he believes the City is opening itself up for problems down the line. He suggested exploring that with the title company. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 25 Proposed Resolution No. R-06-149 A resolution entitled, AA RESOLUTION ADOPTING A NEW LAND USE PLANNING AND ZONING APPLICATION FEE SCHEDULE AND REPEALING RESOLUTION NO. 6092,@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Edwards, that the resolution be adopted as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. At this time, a motion was made by Director Maruthur, duly seconded by Director Weatherford, that the resolution be amended as follows: AThat staff is hereby directed to present a Zoning Code amendment requiring that notification for Conditional Uses be made to all property owners within 200 feet of the subject property. Said amendment to be presented for consideration by the Planning Commission and Board of Directors no later than March 31, 2007.@ Board of Directors Meeting 19 April 17, 2006 at 7:00 P.M.  City Manager Kent Myers questioned if this automatically reverts back at that time; and Deputy City Manager Lance Hudnell explained that since it is an ordinance, it will have to come back as a new ordinance amendment. Director Maruthur stated that she has no problem with that. In response to Mayor Bush, Deputy City Manager Lance Hudnell explained this will not automatically amend the ordinance because this is a resolution; and a resolution cannot amend an ordinance. Since the ordinance previously adopted tonight is part of the Zoning Code, the Zoning Code has to go through public hearings before it can be changed. A public hearing was held at the last Planning Commission; therefore, this time next year, a public hearing will be held by the Planning Commission and bring it back to the Board because it has specific state law requirements with regard to the Zoning Code. Mayor Bush then called for a vote on the amendment; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Note: Proposed Resolution No. R-06-149 was adopted, as amended. 26 Proposed Resolution No. R-06-150 A resolution entitled, AA RESOLUTION AWARDING A CONTRACT FOR ENGINEERING SERVICES TO BENHAM COMPANY FOR THE DESIGN AND BID PREPARATION FOR AN EMERGENCY GENERATOR FOR THE OUACHITA WATER TREATMENT FACILITY,@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Weatherford, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, explained through the Request for Qualifications process, the Utilities Department selected the Benham Company for the design and bid preparation for an emergency generator for the Ouachita Water Treatment Facility. The main purpose of this generator is to provide emergency power during storm events when the power is out for a long period of time. The engineer will be compensated on an hourly fee schedule with a not-to-exceed amount of $64,800, and this project has been budgeted in the Ouachita Water Treatment Plant Capital Improvement Budget for this year. Board of Directors Meeting 20 April 17, 2006 at 7:00 P.M.  Director Maruthur pointed out that during the ice storm of 2000, shortly thereafter there was an outage; and many people were not able for a short period of time to get water; and this generator will take care of that outage. Mr. Cochran advised this will power the whole treatment plant and will put it back on line. The engineering services are related to designing the electrical system that will retrofit the generator to the existing electrical system at the Treatment Plant. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 27 Proposed Ordinance No. O-06-27 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PROCUREMENT OF ROLL-OUT WASTE CONTAINERS FOR THE SANITATION DEPARTMENT; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Smith, duly seconded by Director Daniel, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Mr. Bill Burrough, Sanitation Director, advised they are 95 percent complete with the roll-out of the new waste containers. They have completed the roll-out for all of the single-family residences and are now looking at multi-family dwellings, apartments, condominiums, and some small businesses that are also serviced by this system. They are about five percent short on the carts and need one additional load, which is 720 more carts to complete the roll-out of the small containers to the small businesses, as well as apartments and condos. It will also give the City a surplus for growth through the remainder of the year. He added that the price is about $2.50 more per cart from the time the initial containers were purchased. They are $52.50 per cart. Director Smith asked if he has factored in replacement containers if they should get broken or damaged, and Mr. Burrough advised this will provide enough surplus Board of Directors Meeting 21 April 17, 2006 at 7:00 P.M. should any of those things happen. The City is about 3-1/2 months into the system, and about six carts have been damaged; but those are covered by warranty. Director Maruthur commented there are several rental properties that have one meter and several tenants, and this will cover those fees because the landlords will be paying for these additional carts. Therefore, the City will receive additional revenue. Mr. Burrough stated that in the prior system, there was no way to document how much volume of waste was coming out versus their meters. He found a substantial number of facilities that may have had one water meter but had 15 apartments tying onto that meter. With this, the City is able to provide the adequate number of containers they need and make sure the City is charging the adequate fees for those services. It is additional revenues for those that have additional service. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 28 Proposed Ordinance No. O-06-28 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE EMERGENCY REPAIR OF A 30-INCH FORCE MAIN AT GRAND POINTE DRIVE AND CARPENTER DAM ROAD; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Smith, 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 AShall the ordinance be passed as read?@ and upon motion of Director Jones, duly seconded by Director Maruthur, that the ordinance be passed as read. Upon discussion, Mr. Don Cochran, Director of Utilities, stated this awards a contract to S&S Plumbing for the emergency repair of a 30-inch force main. During the construction of the Carpenter Dam utility relocation project and rerouting this existing force main, a by-pass valve was shut off, which resulted in the existing force main erupting due to corrosion of the pipe from sewer gases. Staff had originally considered doing a Change Order to the contract, which was around 30 percent of their original contract; and staff thought that was a little high and went out and received bids. There Board of Directors Meeting 22 April 17, 2006 at 7:00 P.M. were four bidders that responded; and S&S Plumbing was the lowest, responsible bidder with $297,464.55, with a construction time of 41 days. There are funds for this project in the Wastewater Collections Capital Improvement Budget for this year. Director Smith commented said that he liked the language used (lowest, responsible bidder) and believes it sends a good signal to those who want to do business with the City. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 29 Proposed Ordinance No. O-06-29 An ordinance entitled, AAN ORDINANCE ACCEPTING THE ANNEXATION OF CERTAIN PROPERTY (279 FONTANA ROAD) TO THE CITY OF HOT SPRINGS, ARKANSAS; MAKING SAME A PART OF THE CITY OF HOT SPRINGS; AND ASSIGNING SAME TO DISTRICT,@ was taken from the agenda for consideration. A motion was made by Director Edwards, 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 AShall the ordinance be passed as read?@ and upon motion of Director Daniel, duly seconded by Director Maruthur, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 30 Board of Directors Items Director Smith announced on Saturday, April 29, at 10 a.m., Quapaw Community Center, they will be the host facility for International Tai Chi Day and encouraged all who participate in Tai Chi to take part in the event. Also, there will be classes provided. Board of Directors Meeting 23 April 17, 2006 at 7:00 P.M.  Director Daniel stated that on Saturday, April 22, will be the 3rd Annual Boston Big Butt Barbeque Cook-Off at the Exchange Street Parking Plaza. It will start at 4 p.m., and cooking will start that morning. It is a fundraiser for the Downtown Merchants to help with the Christmas lighting at the Parking Plaza and Arlington Lawn as well as other lights downtown. The cost for tickets is $3.00, and Director Elaine Jones will be one of the judges. Director Maruthur reported there are mosquito larva blocks available at the County Judge=s Office and the Arkansas Department of Health, and there is also a sheet for guidelines for conserving water. Anybody who wants the directions, may call 321-6810 or 321-6811. If street lights are out, citizens may call 1-800-ENTERGY. For problems with obstructions at intersections, citizens may call 321-6861. Director Edwards commented that the patrolmen who are out at night are reporting the street light outage that they see. Director Weatherford congratulated hometown friends Bob and Bonnie Holthus for winning the Arkansas Derby with a horse they are training, Lawyer Run, and wished them good luck in the Triple Crown. 31 City Manager=s Report City Manager Kent Myers gave the following report: 1. The Board approved several items the Consent Agenda: bid for a new street sweeper (replacing one that is 20 to 30 years old) in the amount of $118,587; and appointment of Louis Kleinman to the Planning Commission. 2. There will be a joint work session of the Board and Planning Commission tomorrow at 6 p.m. Prior to that, dinner will be served between 5 p.m. and 6 p.m. 3. Several Board Members have inquired if the property at Higdon Ferry for the shopping center has closed. He said it is his understanding in talking with the chairman of the Fair Board earlier today, they were meeting this afternoon with the attorney and the shopping center developer trying to work through some final issues. 4. Deputy City Manager Lance Hudnell stated there was concern by the Board with regard to the notices on the Conditional Use Permits, and he will be glad to take them to GIS for a demo of the new notification system. Board of Directors Meeting 24 April 17, 2006 at 7:00 P.M.  5. Regarding the annexation hearing on Ginger Blue Point, Deputy City Manager Lance Hudnell reported it was one of the water extension annexations the Board approved sometime ago for a single-family new home off Lakeland Drive. It is across the lake from Garvan Woodland Gardens, so the Board required annexation as a part of the water extension approval. The County Judge today tabled that action at his hearing; and it is his contention at this time, it is probably an improper annexation. However, at the City=s request, he tabled it for a week to give the City a chance to respond to his concerns. He had a legal opinion from the counsel for the Arkansas Association of Counties, and that information has been given to City Attorney Brian Albright so he will have an opportunity to respond to the County Judge. His basic concerns related to while it was across the lake, there were other things in that court case that allowed for across-a-body-of-water type annexations that had to do with the other amenities of the City and the proximity to the City; otherwise, that it creates a neighborhood. There were several issues in that court case that he felt were not met, although across the water was met. Director Edwards questioned since gasoline is $3 a gallon, if that had any bearing on taking City vehicles home. City Manager Kent Myers stated it was anticipated that gas will be at the level it is; and during the budget process this year, staff projected about where they are at the present time. If gas prices continue to rise, the City will have to take some action to reduce expenses in other areas. Staff is closely monitoring those costs, and Fleet Service Director Greg Speas provides a detailed report of all the departments on a monthly basis. All of the departments are taking a conservative posture as far as out-of-town trips and other ways to reduce idle time in the vehicles. Even with that, it is still probably less than a ten percent reduction in consumption. If gas is over $3 per gallon at some point this year, then the City will have to make some cuts in some areas. He noted that many of the smaller vehicles have been coming before the Board for approval and will continue to look at other areas. In the newspaper in the next couple of days, there will be an article about Mr. Hans Purkott, in Director Maruthur=s area, who has developed a new spark plug that has been tried in the City vehicles and has reduced fuel consumption over ten percent. Based upon that success, the City is going to continue to use those types of spark plugs. 32 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:45 p.m., to meet again on Monday, May 1, 2006, at 7:00 p.m. Board of Directors Meeting 25 April 17, 2006 at 7:00 P.M. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 26 April 17, 2006 at 7:00 P.M.