Board of Directors

MINUTES BOARD OF DIRECTORS MEETING MAY 1, 2006, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, May 1, 2006, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Mr. Dick Gladden, 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, Bill Edwards, Tom Daniel, and Mike Bush, total 6. Absent: Director Carroll Weatherford. 2 Approval of Agenda A motion was made by Director Smith, duly seconded by Director Edwards, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of April 17, 2006 Board Meeting A motion was made by Director Edwards, duly seconded by Director Jones, that the minutes of the April 17, 2006 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests City Manager Kent Myers introduced Ms. Josie Fernandez, superintendent of the National Park Service, who stated there is a new development outside the park boundaries and the City limits. She advised a property owner off Bratton Road, near the cemetery on Highway 70 East of the park, reported to the National Park Service there is a thermal water in his well, which about 5.5 miles from Bathhouse Row and 4 miles east of the park boundary. She reported they have been working with the U. S. Geological Survey, the Arkansas Department of Transportation, Arkansas Department of Environmental Quality, and the Federal Highways Department since the area in question is the location of the proposed highway to be constructed. The preliminary tests indicate there is a thermal water component present in the well, but the cause is unknown. She commented they need to do a more in-depth reconnaissance of the area and are working with all of those agencies to make sure whatever is done in the future with this new information is something that does not adversely affect the hot springs and Hot Springs National Park. Director Edwards recognized Ms. Jean Baker. Mayor Bush expressed appreciation to the Board for the opportunity to visit Hanamaki, Japan, last week, which has recently merged with three other communities around them. Directors Jones and Weatherford accompanied him and expressed appreciation to Public Information Officer Terry Payne, who did an outstanding job in taking care of all of the details. Director Jones mentioned that the highlight of the trip was attending a school in a rural area that had only 18 students, 2 teachers, an assistant principal and a principal. She spoke of their showmanship in archery, which is No. 1 in Japan. She narrated a presentation of photos taken during the trip. Director Jones stressed that Hot Springs needs to do more for the delegation from Hanamaki when they visit Hot Springs. She stated Hot Springs= delegation paid for one hotel, and the rest of them were paid by the hotel owners, as well as most of the food. Mayor Bush reported that Mayor Watanabi, mayor for the last 10 years but is now retired, held a reception for the group that lasted three hours. CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (April 20, 2006). 6 Proposed Resolution No. R-06-151 Approving Certain Bid Awards (a) Water Meters, auto- [annual supply contract awarded to Hughes Supply]; (b) Pavilion - RCI Construction - Parks [awarded to RCI Construction in the amount of $56,950]; Board of Directors Meeting 2 May 1, 2006 at 7:00 P.M.  (c) Pump - Utilities [awarded to J. R. Stewart in the amount of $32,612]; (d) Knuckleboom Truck - Sanitation [awarded to Glover Truck in the amount of $100,928]; (e) Refuse Containers (64) - Sanitation [awarded to Wastequip/May Fab in the amount of $63,380]; (f) Trailers (2) - Sanitation [awarded to GE Stetco in the amount of $136,300]; and (g) Greenway Trail - Parks (reject and rebid). 7 Proposed Resolution No. R-06-152 Awarding a Contract for Engineering Services to Grimes Consulting Engineers to Provide Engineering Services for Phase I of Hangar Construction Project at the Airport. 8 Proposed Resolution No. R-06-153 Adopting General Fuel Pricing Policies for the Sale of Aviation Fuels at Hot Springs Memorial Airport; and Repealing Resolution No. 5555. 9 Proposed Resolution No. R-06-154 Authorizing the Mayor to Execute a Service Agreement Between the City and Flight Options to Provide Contract Fuel at the Airport. 10 Proposed Resolution No. R-06-155 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Wisteria Subdivision Located on Humphrey=s Road. (Removed from Consent Agenda for separate consideration). 11 Proposed Resolution No. R-06-156 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Gabriel Subdivision Located in the 400 Block of South Moore Road. (Removed from Consent Agenda for separate consideration). 12 Proposed Resolution No. R-06-157 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Bayshore Cove Condos. (Removed from Consent Agenda for separate consideration). Board of Directors Meeting 3 May 1, 2006 at 7:00 P.M. 13 Proposed Resolution No. R-06-158 Approving the Extension of Hot Springs Municipal Water Service to 498 Lantern Terrace. (Removed from Consent Agenda for separate consideration). 14 Proposed Resolution No. R-06-159 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Shore Acres at Larue. (Removed from Consent Agenda for separate consideration). 15 Proposed Resolution No. R-06-160 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to the Arkansas Department of Health and Human Services Building Located on Airport Road and Family Park Road. 16 Proposed Resolution No. R-06-161 Authorizing the Mayor to Execute Amendment No. 2 to the Contract with McLaughlin Engineers, Inc. for Engineering Services Related to the Music Mountain Pump Station Improvements. 17 Proposed Resolution No. R-06-162 Authorizing the Filing of a Grant Application with the Federal Emergency Management Agency 2006 Fire Act Grant Program. 18 Proposed Resolution No. R-06-163 Creating a Local Redevelopment Authority Pursuant to the Base Closure Community Redevelopment and Homeless Assistance Act of 1994. 19 Proposed Resolution No. R-06-164 Granting a Limited Use Easement to Dorothy B. Gettings (1020 East Grand Avenue). 20 Proposed Resolution No. R-06-165 Accepting a Grant from the Federal Transit Administration, United States Department of Transportation, for Federal Transportation Operating Assistance as Authorized by 49 U.S.C. Chapter 53, Title 23, United States Code, and Other Federal Statutes Administered by the Federal Transit Administration. A motion was made by Director Daniel, duly seconded by Director Smith, that the Consent Agenda be approved. Board of Directors Meeting 4 May 1, 2006 at 7:00 P.M.  Upon discussion, Director Maruthur requested that Item Nos. 10 through 14 (water and wastewater extensions) 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. Absent and not voting: Director Weatherford; motion unanimously carried. NEW BUSINESS 21 Presentation of Condemnation Resolutions Mr. Bart Jones, Housing Administrator, gave a presentation on the proposed condemnation resolutions. 21a Proposed Resolution No. R-06-166 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (115 PLEASANT VALLEY),@ was taken from the agenda and read by title only. A motion was made by Director Maruthur, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Mr. Dane Ecker, 115 Pleasant Valley, was recognized stating that he has cleaned out the house completely and is going to make repairs. He said the house has been in his family for over 50 years, and the young people next door demolished the house inside and out. Mr. Bart Jones advised that the house has been in its current condition for about three years. Mr. Ecker was living in the structure, and it does not have utilities or water. He has received permits in the past but has not followed through. He stated the ordinance allows him 30 days if it is condemned. Board of Directors Meeting 5 May 1, 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, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 21b Proposed Resolution No. R-06-167 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (312 CHARTER OAK),@ was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. City Attorney Brian Albright asked if anyone was present to speak in opposition to the resolution. There being no opposition, Mayor Bush called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 21c Proposed Resolution No. R-06-168 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (261 CEDAR),@ 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. City Attorney Brian Albright asked if anyone was present to speak in opposition to the resolution. There being no opposition, Mayor Bush called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 21d Proposed Resolution No. R-06-169 Board of Directors Meeting 6 May 1, 2006 at 7:00 P.M.  A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (217 WOOD),@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the resolution be adopted as read. City Attorney Brian Albright asked if anyone was present to speak in opposition to the resolution. There being no opposition, Mayor Bush called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 21e Proposed Resolution No. R-06-170 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (225 WOOD -REAR STRUCTURE),@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, City Attorney Brian Albright asked if this is just a mobile home at the rear of the property, and Mr. Jones advised that it is. He added it is on the same parcel as the front structure. Mr. Albright questioned if the City is condemning only the personal property, and Mr. Jones replied that is correct. City Attorney Brian Albright asked if anyone was present to speak in opposition to the resolution. There being no opposition, Mayor Bush called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 21f Proposed Resolution No. R-06-171 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (728 PARK),@ was taken from the agenda and read by title only. Board of Directors Meeting 7 May 1, 2006 at 7:00 P.M.  A motion was made by Director Daniel, duly seconded by Director Maruthur, that the resolution be adopted as read. City Attorney Brian Albright asked if anyone was present to speak in opposition to the resolution. There being no opposition, Mayor Bush called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 21g Proposed Resolution No. R-06-172 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (253 GLADE),@ was taken from the agenda and read by title only. A motion was made by Director Maruthur, duly seconded by Director Daniel, that the resolution be adopted as read. City Attorney Brian Albright asked if anyone was present to speak in opposition to the resolution. There being no opposition, Mayor Bush called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 21h Proposed Resolution No. R-06-173 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (206 OAKCLIFF),@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the resolution be adopted as read. City Attorney Brian Albright asked if anyone was present to speak in opposition to the resolution. There being no opposition, Mayor Bush called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. Board of Directors Meeting 8 May 1, 2006 at 7:00 P.M. 21i Proposed Resolution No. R-06-174 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (2522 MALVERN),@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the resolution be adopted as read. City Attorney Brian Albright asked if anyone was present to speak in opposition to the resolution. There being no opposition, Mayor Bush called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 10 Proposed Resolution No. R-06-155 A resolution entitled, AA RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER AND WASTEWATER SERVICE TO WISTERIA SUBDIVISION,@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran advised that this project will consist of 15 residential lots; and the developer is responsible for installing the utilities to the City standards and responsible for the cost of construction. This development is located one-half mile outside the city limits; therefore, it is not contiguous; and as a result, it does not appear that annexation would be feasible. Director Smith asked if there has been any conversation with the developer regarding annexation, and Mr. Cochran advised there has not been. He said if the Board wishes to remove this item from the agenda, staff would have to talk to the other property owners between this development and the city limits to be able to make annexation work. Director Maruthur stated that she wanted to discuss these four extensions in general for a purpose pointing out this one is 2 mile from the city and has 15 proposed Board of Directors Meeting 9 May 1, 2006 at 7:00 P.M. residential developments. The next one is three miles outside the city limits with 12 residential lots. She noted that Item No. 12 (water and wastewater extension to Bayhore Cove Condos) has 204 condos but does not say how far out it is. The next one is five miles outside the city limits but does not indicate how many are in the development. She questioned the total number of miles the City is going to be extending services since the rates were raised. Mr. Don Cochran advised that currently the Utilities System, particularly the Water System, extends out Highway 270 to the County line. On Highway 70 West, it goes out just past Lake Hamilton School; Highway 7 South is to the County line; and out Highway 70 East, it is just past the Crossgate Church; going up Highway 7 North, it is up to the city limits at Belvedere. He stated the water system covers approximately 220 square miles. Director Maruthur questioned from what the Board is voting on tonight, how many miles of extensions would there be because once the extensions are approved, the City is responsible for any repairs. Mr. Cochran replied that the developer pays for the cost of all the extensions, and the City gets a year=s warranty from the contractor. After that point if anything happens to the line, then it is the City=s responsibility to maintain it. Director Maruthur questioned the total number of miles the Board is considering extending tonight. She stated that she is concerned because the City is overextended and is in the process of building a new facility. She pointed out there is concern about having water available during the summer, and the City increased the rates several years ago. Mr. Cochran said that on water, it was almost five years ago; and the City is into the third year on the sewer increase. Director Maruthur pointed out there are still many residents who are unserved; and at a future agenda meeting, she is going to propose that every time the Board approves extensions outside the City, that some money be applied from the City to the people within the City that are underserved or not served at all. She emphasized it does not seem right for the City to be supporting outside of the city limits. Mr. Cochran stated when the rates were set for water and wastewater, the City developed those rates and did a cost of service study. He added the City charges the customer exactly what it costs to maintain the water and wastewater system, including capital projects, which is a break-even type of operation. As more customers are added, the City will do another cost of service study to make sure the rates will accommodate the growth being discussed tonight and providing service to the existing customers. Board of Directors Meeting 10 May 1, 2006 at 7:00 P.M.  City Manager Kent Myers explained that the City has money in the water and wastewater budget to serve unserved areas in the city limits. If any resident in the City does not have city water or wastewater, they should contact Mr. Cochran; and the City will see what it can do to get them service. He explained that problem is many people who are on septic tanks now do not want city sewer because they do not want to start paying that monthly bill. Mr. Cochran stated that staff will bring those requests to the Board, and the Board will approve those on a case-by-case basis. He added that he provided a detailed report to the City Manager on the status of the water supply issue. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 11 Proposed Resolution No. R-06-156 A resolution entitled, AA RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER AND WASTEWATER SERVICE TO GABRIEL SUBDIVISION LOCATED IN THE 400 BLOCK OF SOUTH MOORE ROAD,@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, stated that this development will consist of 12 residential lots and will be served by a six-inch water main; and they will add an additional fire hydrant to provide fire protection. This development is approximately three miles outside the city limits; and as a result, annexation does not appear to be feasible. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 12 Proposed Resolution No. R-06-157 Board of Directors Meeting 11 May 1, 2006 at 7:00 P.M.  A resolution entitled, AA RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER AND WASTEWATER SERVICE TO BAYSHORE COVE CONDOS,@ was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Edwards, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran advised that this condominium development is located on Grand Pointe Drive and Bayshore Cove and will be 204 residential units on a 13-acre site. The developer will be responsible for the construction of the utilities, and this is located outside the City on the lake. It is across the bay from the existing city limits, but it does not appear to be in direct line of sight. Therefore, annexation is not an issue. Director Smith questioned how large the line is, and Mr. Cochran advised that it is a six-inch water main and should accommodate those condos without a problem. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 13 Proposed Resolution No. R-06-158 A resolution entitled, AA RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER SERVICE TO 498 LANTERN TERRACE,@ 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 stated this will be extending a two-inch water main because the existing water main it will tie to is only a two-inch and could not go any larger than that. The property owner will pay the cost of line extension and is five miles outside the city limits. He said from what was presented to staff, it does not appear there will be any other homes connected to this pipe. Director Maruthur asked if the City was providing a two-inch line five miles outside the city for one home, and Mr. Cochran stated the property owner is paying for it. He Board of Directors Meeting 12 May 1, 2006 at 7:00 P.M. noted it will become city property after it has been installed and after the warranty period has expired. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Edwards, Daniel, and Bush, total 5. Voting Ano@: Director Maruthur. Absent and not voting: Director Weatherford; motion carried. Whereupon the resolution was declared adopted. 14 Proposed Resolution No. R-06-159 A resolution entitled, AA RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER AND WASTEWATER SERVICE TO SHORE ACRES AT LARUE,@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Smith, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, stated this development will consist of three duplexes and is located just off Thornton Ferry Road and is outside the city limits. The property owner will be responsible for extending the lines at their cost and to City standards. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 22 Proposed Resolution No. R-06-175 A resolution entitled, AA RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR A CIVIC CLUB (SPA CITY WOMEN=S CLUB) LOCATED IN AN R-4 IN A RESIDENTIAL ZONING DISTRICT,@ was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. Board of Directors Meeting 13 May 1, 2006 at 7:00 P.M.  Upon discussion, Ms. Juanita Williams, 490 Crescent, was recognized stating that the original application was misleading and was not intended for retail in that area. She stated this is to be used for a club house by a nonprofit organization, and a number of organizations will be using it. She added they plan to hold meetings with small groups and give scholarships to youth. She stated there was concern with parking in the area but has been advised by the City what action they need to take. She mentioned there is a church across the street, and a letter has been received from the pastor and members of that church stating they were welcome to use their area if they needed more parking, which would be on a rare occasion. She advised there was no negative feedback from the neighborhood, and everyone was in agreement with what they are doing. Director Jones stated she has attended many of the scholarship banquets this club has given to young people in the community and is aware of the work that has been done in the community by this club. She urged the Directors to vote for this resolution. Deputy City Manager/Acting Planning Director Lance Hudnell advised this item was considered by the Planning Commission at their last meeting, and a civic club or a church can be a conditional use in any zone including a residential zone. He stated when this was presented to the Planning Commission, it was understood there would be some minor retail sales in the sense of a thrift shop or a gift shop-type arrangement in the structure. There were also concerns regarding the amount of parking that would be available, particularly given the fact of the intersection of the several streets; and the Planning Commission voted to deny this. Since that time, Ms. Williams has clarified it, and there are four conditions stated in the resolution: (1) that the structure shall not be used for retail sales of any kind or nature; (2) that parking for not less than ten vehicles shall be provided on the premises or on the adjacent property located at 490 Crescent Street, which is also her home; (3) club meetings would be quarterly with not more than four meetings per year with a maximum attendance of ten members at any given meeting; and (4) signage would be limited to a single wall sign not to exceed four square feet. Those four items have been clarified since the Planning Commission meeting. It is the Board=s discretion to either approve, deny, modify or refer back to the Planning Commission at it sees fit. In answer to Mayor Bush, Deputy City Manager/Acting Planning Director Lance Hudnell advised the Planning Commission denied the request. However, at that time, it did not have these four conditions; and the Planning Commission denied it because of the retail sales and the concern regarding parking and traffic circulation. Since then, it has been limited to ten people at any time, etc. Board of Directors Meeting 14 May 1, 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, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 23 Proposed Resolution No. R-06-176 A resolution entitled, AA RESOLUTION AMENDING RESOLUTION NO. 3194 ESTABLISHING A WATER AND SEWER LINE EXTENSION POLICY,@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Deputy City Manager Lance Hudnell explained this is the result of the joint work session with the Planning Commission and the Board of Directors. It accomplishes two primary issues: (1) it makes clear that residential projects consisting of less than 20 dwelling units or single-family lots meaning a subdivision of 20 or less lots or a residential project with 20 or less units can be approved by the City Manager or the Utilities Director and then reported to the Board on a monthly basis. That would not preclude them from bringing one if they found an extension they thought the Board might be concerned with; (2) it makes clear that all projects would require Planning Commission approval and would be considered by the Planning Commission first. Currently, a condo project or subdivision might come to the Utilities Department first and then to the Board for a water extension and later to the Planning Commission. This will make it clear that they go to the Planning Commission first and then to the Board of Directors. He stated sometimes the developers or others get the impression because they have been to the Board of Directors for water and sewer extension and been approved, they have been approved for all phases and aspects of their projects. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 24 Proposed Resolution No. R-06-177 Board of Directors Meeting 15 May 1, 2006 at 7:00 P.M.  A resolution entitled, AA RESOLUTION CREATING A COMMUNITY DEVELOPMENT ADVISORY COMMITTEE FOR THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) PROGRAM; AMENDING THE COMMUNITY DEVELOPMENT BLOCK GRANT CITIZEN PARTICIPATION GUIDE; AND FOR OTHER PURPOSES,@ was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers explained that this committee was designated in the original community development block grant program; however, the City has never officially established the committee. This committee will be helpful in working through the application process and will handle any complaints that may arise regarding the way the City is administering the program. The committee is proposed to consist of seven members with four of the members being from the two target areas (Districts 1 and 2) and the remaining three being from the City at-large appointed by the Board. If the Board approves this tonight, the City will be soliciting applications. Any interested citizen may contact Margaret Parris in his office. Director Smith said that he hopes District 3 will be a targeted area in the near future and expressed concern with the make-up with four of the seven members in only two districts out of the six districts. He said that he would like to see it more balanced. City Manager Kent Myers replied if the Board decides to go that route, the first step in the other two districts has been the development of a neighborhood plan. District No. 1 and District No. 2 developed a neighborhood plan. Therefore, he would suggest if he and the other Directors are interested in it to include a neighborhood plan for District 3 in next year=s budget, which will allow the Board to define the priorities for that area before designating it as a target area. He mentioned the cost of a neighborhood plan is about $15,000, which can be paid out of CDBG money or the regular City budget. He added that would be the first step in getting that area designated as a target area. Director Maruthur said they have yet to fulfill what they have targeted in District No. 1, and that needs to be completed. She stated the whole purpose of having two representatives from the existing targeted areas is so the City can get these completed and then move onto the other districts with a plan, but this is for the whole City. City Manager Kent Myers stated the Board retains control of all final decisions with regard to the CDBG funding, and this is an advisory committee, which will make Board of Directors Meeting 16 May 1, 2006 at 7:00 P.M. recommendations regarding additional target areas or funding. However, the Board will make the final decision. Director Smith commented when it gets to the point where District 3 is a player in this, he does not see any reason in having Districts 1 and 2 have four members. He wanted to be clear that the City move forward to another district. Mayor Bush questioned how long this advisory committee would be in place, and City Attorney Brian Albright advised until the Board changes it. Deputy City Manager Lance Hudnell added there is an overall policy which governs all advisory committee. It would be in accordance with that which are four-year terms for the individuals who are appointed, but the Board can change the make-up of it anytime it desires. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the resolution was declared adopted. 25 Proposed Ordinance No. O-06-30 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING 1655 MALVERN AVENUE FROM R-2, SUBURBAN RESIDENTIAL, TO PD, PLANNED DEVELOPMENT DISTRICT,@ was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Smith, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Daniel, duly seconded by Director Jones, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the ordinance was declared passed. 26 Proposed Ordinance No. O-06-31 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING THE NORTHEAST Board of Directors Meeting 17 May 1, 2006 at 7:00 P.M. CORNER OF CARPENTER DAM AND SHADY GROVE ROADS FROM PD, PLANNED DEVELOPMENT DISTRICT, TO C-3, OFFICE/NEIGHBORHOOD COMMERCIAL DISTRICT,@ was taken from the agenda for consideration. A motion was made by Director Smith, 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 AShall 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. Gary Threadgill, Chairman of the Planning Commission, 111 Mason, said when the applicant requested this property be changed from a PD to a C-4, the Planning Commission gave approval to send it to the Board for rezoning. At that time, the applicant had a house that had been moved in on the property, which is PD at the present time. He said that house is an illegal use in a PD, and the Commission asked the applicant to remove the house. At this time, the house is still on the property; and he requested that the Board table it until the applicant removes the house from the property and then proceed and consider rezoning. Mr. John Hood, applicant, 111 Parkview, was recognized stating he talked to the mover yesterday; but he cannot get it down Grand Point because the street is blocked. He said he will move it as soon as the street is opened. City Manager Kent Myers stated he talked to Mr. Don Cochran, Director of Utilities; and due to a 30-inch water line failing, it will be about two more weeks before Grand Point will be opened. A motion was made by Director Maruthur, duly seconded by Director Edwards, that the ordinance be tabled. Upon discussion, Director Daniel asked if the 30-inch water main was an emergency project, and City Manager Kent Myers advised that it was. Director Daniel pointed out that the mover or Mr. Hood had no control over it; therefore, the City caused the emergency. Mr. Hood said the mover contacted the Code Compliance Department and informed them it would be moved as soon as he could get up the street. Board of Directors Meeting 18 May 1, 2006 at 7:00 P.M.  Director Daniel said that he did not see a reason to table it since the problem was caused by the City. Director Smith stated he agreed with Director Daniel, and Mr. Hood is on the record as knowing he has to move it as soon as possible. Director Maruthur asked if this is the property where all of the people showed up in opposition, and Mr. Hood replied that it was Carpenter Dam Road and Malvern. At this time, Director Maruthur withdrew her motion to table and Director Edwards his second. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, and Daniel, total 5. Voting Ano@: Mayor Bush. Absent and not voting: Director Weatherford; motion carried. Whereupon the ordinance was declared passed. 27 Proposed Ordinance No. O-06-32 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE BY REZONING 1700 MALVERN AVENUE FROM PD, PLANNED DEVELOPMENT DISTRICT, TO R-4, MEDIUM/HIGH DENSITY RESIDENTIAL, TO C-3, OFFICE/NEIGHBORHOOD COMMERCIAL DISTRICT,@ 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 AShall the ordinance be passed as read?@ and upon motion of Director Daniel, duly seconded by Director Edwards, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the ordinance was declared passed. 28 Proposed Ordinance No. O-06-33 Board of Directors Meeting 19 May 1, 2006 at 7:00 P.M.  An ordinance entitled, AAN ORDINANCE APPROVING A SHORT-TERM FINANCING AGREEMENT WITH REGIONS BANK FOR THE LEASE PURCHASE OF CERTAIN FIRE DEPARTMENT RESCUE TOOLS; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Maruthur, 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 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, Edwards, Daniel, and Bush, total 6. Absent and not voting: Director Weatherford; motion unanimously carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 29 Board of Directors Items Director Jones stressed that more funds are needed in the Sister City Program. She stated that according to Ms. Terry Payne, Public Information Officer, ten applications have been received for the Sister City Coordinator, and Mr. Ichiro Fudai, Assistant Manager, Friendship Exchange Division, Policy Planning Department, has suggested that this person be knowledgeable in the cultural activities in Japan. Director Edwards commented he would be more interested in additional funding for the Sister City Program when the City rehabilitates some of the homes where people have holes in their roofs. Director Jones pointed out that is not the same funds. Director Smith stated that the Intracity Transit buses are running from 6 a.m. to 6 p.m. on weekdays and from 10 a.m. to 6 p.m. on Saturdays. The fares are $1.25 for regular; and for senior and disabled, it is $.50. He reported that the latest figures from AAA show when gasolines reaches $3 a gallon, it costs $.64 per mile to operate a medium-sized sedan. He stressed the City has an excellent bus system and more people should consider riding the buses by calling 321-2020. He expressed appreciation to Entergy for promptly replacing a street light that was out at the Quapw Center. Board of Directors Meeting 20 May 1, 2006 at 7:00 P.M.  Director Daniel stated this Saturday morning is the first annual Stueart Pennington Running of the Tubs; and at the present time, there are 17 entries. It will begin a 9 a.m. in front of the Arlington Hotel and go south on Central Avenue down to the Exchange Street Parking Plaza entrance. Anyone is welcome to volunteer, and there will be a Downtown Merchants= Meeting tomorrow at 8 a.m., Transportation Plaza. Director Maruthur said she would like to see City offices conserve with the use of heat and air conditioning in an effort to conserve energy. She reported if there is an obstruction of motorists= view at intersections, they may call 321-6861. If street lights are out, citizens may call 1-800-968-8243 or 1-800-ENTERGY. 30 City Manager=s Report City Manager Kent Myers gave the following report: 1. On the Consent Agenda, the Board approved a contract with Grimes Consulting Engineering to provide engineering services for Phase I of the next hangar construction project. This will result in new leasing and fuel sales revenues; established the creation of a local redevelopment authority pursuant to federal law and involves surplus property on Reserve Street, which currently houses the Army Reserve Center that will be relocating in the next two years to another site in the Hot Springs area. Over the next 12 to 18 months, staff will be preparing a plan to present to the Board providing recommendations on the use of that building. The City has also enlisted the services of Mr. Dave Byerly, with the Chamber of Commerce, to explore possible economic development purposes for the building, which is 35,000 square feet. 2. He expressed appreciation to the Board for the opportunity to attend the American Planning Association Conference last week. The main purpose for attending the Conference was to create some additional interest in the Planning and Development Director position. He interviewed seven individuals and talked to 12 others who had not submitted a resume but thought they might be interested in submitting a resume prior to the May 15 deadline. At the present time, 31 applications have been received for the position. Based upon the individuals he met at the APA Conference, the Board and Planning Commission will be impressed on the caliber of the applicants. Board of Directors Meeting 21 May 1, 2006 at 7:00 P.M.  3. He thanked all of the Board Members, city employees and citizens for submitting comments for the Strategic Plan. The compiled information will be submitted to Board within the next several weeks. A Board work session is planned in June to review the citizen comments and start defining the Board=s visions and goals for the Strategic Plan. 4. The Spring Fling will be held on May 20 and 21. Roll-off containers will be provided in the six districts, and exact locations will be in the newspaper and on the local radio. This is available to city residents only. 5. The next regular Board Meeting is scheduled for May 15, but there are two other events scheduled for that evening (annual tourism awards dinner sponsored by the A&P Commission and the Hot Springs High School Graduation). Since there are five Mondays in May, a suggestion was made to postpone the second meeting to May 22. A motion was made by Director Daniel, duly seconded by Director Jones, to change the Board Meeting date from May 15 to May 22; and upon voice vote, the motion unanimously carried. 31 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:10 p.m., to meet again on Monday, May 22, 2006, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 22 May 1, 2006 at 7:00 P.M.