Board of Directors

MINUTES BOARD OF DIRECTORS MEETING MAY 22, 2006, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, May 22, 2006, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Ms. Gwen Wright, 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 Daniel, duly seconded by Director Smith, that the agenda be approved. Upon discussion, City Manager Kent Myers advised that Mr. Dale Fitzhugh, property owner, has requested that Item No. 21 (Proposed Resolution No. R-06-192 Authorizing the Purchase of an Easement from Charles and Charlotte Fitzhugh, 145 Winkler Road, for the Southwest Wastewater Treatment Plant) be deleted from the agenda. Director Maruthur asked when that item will be on the agenda, and Mr. Don Cochran, Director of Utilities, advised that this will not be considered since the property owner has decided not to sell that easement. Mayor Bush then called for a vote on the motion to approve the agenda, as amended; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of May 1, 2006 Board Meeting A motion was made by Director Daniel, duly seconded by Director Maruthur, that the minutes of the May 1, 2006 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Mayor Bush presented a retirement plaque to Mr. Ron Arnold, having been employed with the City for 30 years. Sanitation Director Bill Burrough stated that Mr. Arnold started with the C.E.T.A. program for three years in planning and development and then with the Sanitation Department for 27 years. He mentioned that Mr. Arnold retired a week ago and due to the Spring Fling, he delayed his retirement for a week in order to help during the time until a replacement was hired. Mr. Arnold expressed appreciation to former Personnel Director Debbie Maxwell for hiring him. CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (May 10, 2006). 6 Budget Transfer ($8,000) - District Court (Receipt Printers and Software Updates). 7 Proposed Resolution No. R-06-178 Approving Certain Bid Awards (a) Generator- Utilities [awarded to Huntco in the amount of $34,171]; and (b) Sulphur Dioxide - Utilities [annual supply contract awarded to Allied Universal Corp.]. 8 Proposed Resolution No. RB06-179 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Shadow Peak Homes Subdivision. Board of Directors Meeting 2 May 22, 2006 at 7:00 P.M. 9 Proposed Resolution No. R-06-180 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Serendipity Trail. 10 Proposed Resolution No. R-06-181 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Grand Point View Condominiums. 11 Proposed Resolution No. R-06-182 Approving Change Order No. 1 with Kirby Specialists for Construction of an Eight-Inch Water Main for the New Southwest Wastewater Treatment Facility. 12 Proposed Resolution No. R-06-183 Authorizing the Mayor to Execute a Transfer Agreement Between the City and the United States of America, for the Transfer of the Localizer Facility at the Airport to the Federal Aviation Administration. 13 Proposed Resolution No. R-06-184 Authorizing the Filing of a Grant Application with the State Aeronautics Commission for Phase I of Hangar Construction at the Airport. 14 Proposed Resolution No. R-06-185 Authorizing the Filing of a Grant Application with the State Aeronautics Commission for Phase II of Hangar Construction at the Airport. 15 Proposed Resolution No. R-06-186 Authorizing the Filing of a Grant Application with the State Aeronautics Commission for Phase III of Hangar Construction at the Airport. 16 Proposed Resolution No. R-06-187 Authorizing the Filing of a Grant Application to the USDA Agricultural Marketing Service Farmers= Market Promotion Program for the Historic Downtown Farmers= Market. 17 Proposed Resolution No. R-06-188 Accepting a Grant from Weyerhaeuser Company Foundation for Art in the Park and Appropriating Funds. Board of Directors Meeting 3 May 22, 2006 at 7:00 P.M. 18 Proposed Resolution No. R-06-189 Approving Change Order No. 1 to the Contract with ATOKA, Inc. for Additional Services at the Arkansas School for Mathematics, Sciences and the Arts (ASMSA). 19 Proposed Resolution No. R-06-190 Awarding a Contract for Certain Infrastructure Improvements for the Wheatley Village Project to John F. Jenkins and Company, Inc. 20 Proposed Resolution No. R-06-191 Approving Addendum No. 1 to a Sub-grantee Agreement with Garland County Habitat for Humanity for Various Infrastructure Improvements at Randy Cox Village and the Wheatley Village. 21 Proposed Resolution No. R-06-192 Authorizing the Purchase of an Easement from Charles and Charlotte Fitzhugh, 145 Winkler Road, for the Southwest Wastewater Treatment Plant. (Removed from agenda) 22 Proposed Resolution No. R-06-193 Accepting an Affordable Housing Program Grant from the Federal Home Loan Bank of Dallas. 23 Proposed Resolution No. R-06-194 Authorizing the Mayor to Execute a Lease Agreement Between the City and Hot Springs Area Metropolitan Planning Organization (Transportation Depot). 24 Proposed Resolution No. R-06-195 Acknowledging the Review of the 2005 Wastewater System Audit Report. A motion was made by Director Edwards, duly seconded by Director Jones, that the Consent Agenda be approved with the deletion of Item No. 21 (Proposed Resolution No. R-06-192 Authorizing the Purchase of an Easement from Charles and Charlotte Fitzhugh, 145 Winkler Road, for the Southwest Wastewater Treatment Plant). Upon discussion, Director Maruthur stated that in regard to Item No. 22, the City received $100,000 in affordable housing program grant money, and Hot Springs was the only city to receive this. She said she was would be bringing more details, along with the Board of Directors Meeting 4 May 22, 2006 at 7:00 P.M. person who wrote it, at the next meeting and more information so that those in need can apply. Director Edwards questioned the disbursement of the $100,000; and Director Jones stated that it is for the elderly and disabled B low to moderate-income residents. City Manager Kent Myers commented that the City received approval of $100,000 affordable housing grant program, and this will go a long way to help supplement the City=s Community Development Block Grant Program. He stated it is limited to $5,000 per house, and the City will be able to serve approximately 20 residents in the Hot Springs area focusing on low-income residents. This grant was written by the Bank of the Ozarks, which has a strong emphasis on community development, and was written by a person out of their Little Rock office who worked closely with Mr. Nelson Self, the City=s CDBG Coordinator. Director Maruthur pointed out that the criteria is very interesting, and she believes there are many teachers who fall into this category, as well as many professionals that qualify for these funds. She pointed out it further stretches the City=s ability to utilize CDBG funds. Mayor Bush then called for a vote on the motion to approve the Consent Agenda; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. NEW BUSINESS 25 Claim from Steve and Kama Sales Regarding Damage to Property at 103 Glover Street Resulting from Wastewater Back-Up A motion was made by Director Edwards, duly seconded by Director Jones, that the claim be approved. Upon discussion, Mr. Don Cochran, Director of Utilities, reported that on March 9, a wastewater back-up occurred at 103 Glover Street, which was the result of a grease blockage in the wastewater line. The Utilities Department cleared the blockage and immediately called a cleaning contractor to clean the home. They also contracted with a heating and air contractor to clean the heating and air duct work and the heating and air unit. The City received a claim from Steve and Kama Sales in the amount of $4,410. Of that claim, the Utilities Department could verify damages of $800, which they approved to pay Mr. and Ms. Sales for personal items. Mr. Sales has now resubmitted his claim, which Board of Directors Meeting 5 May 22, 2006 at 7:00 P.M. now totals $5,556.69. To-date the City=s expenses, including the cleaning of the home, the heating and air unit, and personal items, total $2,983.50. He stated in addition to this claim, the City will probably receive a claim from the property owner=s (Mr. Charles Green) insurance company, and a letter was received from Nationwide Insurance stating that they intend on filing a claim with the City for $13,332.90. He said tonight the Board is considering the resubmitted claim from the Sales in the amount of $5,556.69. Mr. Steve Sales distributed photos to the Board of the damages to the house pointing out that in regard to the clean-up, there was still sludge in the heating unit, which has been replaced. Also, it was two inches deep downstairs, ruining their furniture, as well as clothes and toys. City Manager Kent Myers asked if he had an itemization of the claim ($5,556.69), and Mr. Sales replied that it was submitted to Mr. Cochran. Director Daniel asked if there were any photos available after the clean-up, and Mr. Sales replied there was not. He added the insurance company had another person take a moisture reading, which was over 50 percent; but the renovators did not take a moisture reading. City Attorney Brian Albright asked how much of the $5,556.69 includes the replacement of the heating unit, and Mr. Sales replied that it was not included. City Attorney Brian Albright asked if that was part of Mr. Green=s claim he made with the insurance company, and Mr. Sales stated that was correct. Director Maruthur asked how Utilities Department arrived at the $800 for personal items that were damaged, and Mr. Don Cochran, Director of Utilities, advised that he referred that to Mr. Craig Stevens, wastewater operations manager, who was the supervisor on-site. He personally inspected the house and identified the items that he personally saw had damage. He noted the other items he did not believe were damaged or could have been cleaned. He said according to Mr. Stevens, the renovators had thoroughly cleaned the home, as well as the heating and air unit. He noted the City has an annual supply contract with GTS Heating and Air Conditioning, and they thoroughly cleaned the heating and air unit. He stated that he was told by GTS that there was no damage to the heating and air unit. Ms. Kama Sales stated that the floors, furniture and toys were ruined; and as far as the grease trap problem, they removed five, five-gallon buckets of rock out of the manhole in front of their home. She said the call was reported by four of their neighbors Board of Directors Meeting 6 May 22, 2006 at 7:00 P.M. between 7:30 a.m. and 8:00 a.m. when it was overflowing in their street. Also, the home down the road from them flooded two weeks before their home was flooded. Director Maruthur stated that the City immediately paid the Sales $3,000, and Ms. Sales replied that all they have received is an $800 check. She said that was paid to the renovators. She noted that the heating and air conditioning unit was not cleaned but was replaced. She stated that they now have installed a backflow. Director Daniel pointed out there seems to be some controversy as to whether or not the $2,983.50 that the City spent actually was in vain. He questioned if the City sends someone to inspect after the clean-up, and Mr. Cochran advised that the City did. He said that Mr. Craig Stevens, wastewater manager, inspected the home after it was cleaned by the renovators and brought him pictures of before and after the clean-up. Director Smith questioned the amount paid by Nationwide Insurance, and Mr. Cochran replied that a letter has been received from the insurance company requesting a claim form so they can file a claim with the City for $13,332; and the insurers deductible was $250. Mr. Charles Green, 109 Somerset Court, said he observed what was taken out of the manhole, which was white gravel used to put around the line; but it was not grease that was removed. He reported the city employee who checked the house did not go into the basement. Also, the renovators did not touch the return air, and the whole unit was full of sludge but has now been changed. He said the City will probably get a claim from Nationwide Insurance in excess of $18,000. Director Smith questioned how he arrived at $18,000, and Mr. Green advised that the bid from the contractor was $16,300. Also, there was $2,300 bill on changing out the central heat and air unit. Director Smith asked what was included in the $16,300, and Mr. Green stated replacing all of the hardwood floors in the house and all of the custom trim. City Attorney Brian Albright pointed out that Mr. Green=s claim is not before the Board tonight, only the claim from Mr. and Ms. Sales. He advised that Mr. Green=s claim was paid by his insurance company, and the insurance company has the right to subrogate against the City if that is what they choose to do. Director Smith stated that the City has already paid $2,900 and now they are asking for an additional $5,556.69, and City Attorney Brian Albright commented it is his understanding that the $5,556.69 is only for their personal property, not the renovators or any of the structural issues concerning the home. Board of Directors Meeting 7 May 22, 2006 at 7:00 P.M.  Director Weatherford mentioned the City has already paid them $800. Ms. Sales said she still has an $800 check and was advised to return it to Finance Director Dorethea Yates. Mayor Bush then called for a vote on the motion to approve the claim submitted by Steve and Cama Sales in the amount of $5,556.69; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Edwards, Daniel, and Bush, total 5. Voting Ano@: Directors Maruthur and Weatherford, total 2; motion carried. 26 Proposed Resolution No. R-06-196 A resolution entitled, AA RESOLUTION APPROVING A CONDITIONAL USE PERMIT TO CONSTRUCT A ROOF MOUNTED SIGN AT 526 AIRPORT ROAD (CLAYTON HOMES),@ was taken from the agenda and read by title only. (Appeal) A motion was made by Director Edwards, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Mr. Gary Garrett, 6 Excelso Lane, manager of Clayton Homes on Airport Road, stated that in April, he requested placing a roof sign on top of their building; and they also have a marquee sign at that location. However, they were asking for an additional sign for advertising that met the City requirements. He stated that at the Planning Commission meeting, the main objection was the roof mount itself. He said if the roof is the issue, then he would request an additional sign to be placed at another location on his property. Deputy City Manager Lance Hudnell advised that would be permissible under the Sign Code and would not be an issue for the Board to consider at this time. He commented the extra sign is allowable because he has sufficient frontage. He explained that Clayton Homes appeared before the Planning Commission requesting a roof sign, which is a conditional use under the Sign Code. Roof signs are permissible if there is no other viable alternative due to the terrain, sight distance or amount of footage on the property. The Planning Commission can approve a roof sign in lieu of a wall sign or a freestanding sign. At this particular location, it was staff=s recommendation and the Planning Commission=s consideration because of the amount of property Mr. Garrett has, he could add another freestanding sign. Therefore, it was the Planning Commission=s determination that it did not meet the criteria for a roof sign; and Mr. Garrett appealed that Board of Directors Meeting 8 May 22, 2006 at 7:00 P.M. decision to the Board. He stated should Mr. Garrett wish to have a different type of sign, that can go back through the process. He said another freestanding sign would not require a conditional use permit from the Planning Commission, and what is before the Board is the roof sign. 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, Daniel, and Bush, total 6. Voting Aaye@: Director Edwards; motion failed. Whereupon the resolution was declared failed. 27 Proposed Ordinance No. O-06-34 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING 302 MILLCREEK FROM R-2, SUBURBAN RESIDENTIAL, TO C-4, REGIONAL/COMMERCIAL OPEN DISPLAY DISTRICT,@ was taken from the agenda for consideration. A motion was made by Director Edwards, 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 Weatherford, duly seconded by Director Smith, that the ordinance be passed as read. Upon discussion, Attorney Q. Byrum Hurst, Jr. requested that the Board consider the character of this property and its best use in the future. He noted this property is located 440 yards from Magic Springs, and residents can hear the roller coaster as long as it operates every night until at least 10 p.m., as well as concerts. He stressed this area of Hot Springs is changing. Immediately next to this property at the corner of Spring and Millcreek, it is zoned C-4 and abuts up to this property. He stated this property needs to be commercial; and in looking at the land use and regardless of how it may have been used in the past, it is logical that this should be rezoned to be C-4. He said the plan that was given to the Planning Commission was that it be used as an auto body business. He commented that most of the residents in this area have some commercial activity that is visible driving down the street. He advised that he represents the owner of the property, Mr. Vasile Pirvu; and Mr. Ioan Feier is also present, who has used the property in the past and was accused of violating the zoning. He pointed out there are laws on the books that prevent property from being a nuisance, and almost every piece of property in this area Board of Directors Meeting 9 May 22, 2006 at 7:00 P.M. has logging trucks. He mentioned this area has peacefully coexisted; but as this goes along with the introduction and successfulness of Magic Springs on one end of it and with the other end next door being C-4, it is logical that it should be rezoned. He added that Mr. Pirvu lives in Ohio and in Hot Springs also; and the property has now been cleaned. He stated there are no longer any automobiles on the property, and that is how they intend to operate this body shop business. He advised they have no adversity to constructing a fencing or anything that may help to satisfy any neighbor=s needs. He noted that the value for these properties will be more commercial than residential. Director Maruthur asked if he was aware that 37 residents attended the Planning Commission meeting on March 9, and Mr. Hurst said he was not but knew there was a large opposition. He mentioned that he did not represent Mr. Pirvu before the Planning Commission but understood that the neighbors were present. He said that he believes they were there primarily because of the problem in the manner that they perceived the property was being operated. Director Maruthur asked if he was aware that not one resident approved of this rezoning, and Mr. Hurst said that he did not have any doubts about that. Director Maruthur pointed out that he has done a lot of work for neighborhoods and mentioned a lawsuit that he did with redistricting so that votes would not be broken up and his fight for school consolidation so people could live wherever they wanted and attend whatever school they desired. She mentioned he also organized a neighborhood meeting in 1999 in order for a POA to be formed so neighborhood values could be protected, and he fought for his home place. She stressed that this is about people=s homes places. She asked if he was aware that on March 9, the Planning Commission voted unanimously to deny this; and the staff recommendation was to deny it also because it is not consistent with the City=s Comprehensive Plan. Mr. Hurst said he was aware of that and the situation, and he has great empathy for the property owners; but for them to live in the shadow of a great commercial development and then this individual=s property next door being C-4, it does not make any logic to continue saying this should be residential property. Director Maruthur asked that he read Item Nos. 3, 5 and 7 from the Supreme Court of Arkansas. Mr. Hurst read quotations from McMann versus City of Little Rock, which is an opinion delivered April 12, 1982, from the Arkansas Supreme Court. It says in regard to zoning, AThe fact that residential property adjoins business property does not Board of Directors Meeting 10 May 22, 2006 at 7:00 P.M. automatically entitle ones property to rezoning, but it is only one factor to be considered.@ No. 5 says AThe feeling of the residents in the neighborhood with reference to the approval or disapproval of the request for rezoning as a legitimate factor is a legitimate factor to be considered.@ Item No. 7 states ARezoning not justified by the mere fact that the property owner seeking the rezoning would benefit economically if the rezoning were allowed or that the land would be put to its most remunerative use.@ Mr. Hurst commented that it is not automatic and in looking at this independently and with some wisdom, this particular piece of property should be rezoned even though the neighbors do not like it. Director Maruthur stressed that the people in this area do not want this rezoned, and the Planning Commission did not approve it to be rezoned. Mr. Calvin Wilcox said that he lives directly across the street from this residence, and this has been going on for more than two years. He reported that originally the gentleman parked a flatbed wrecker on Millcreek Road with two vehicles on it and another vehicle off to the side, but no one complained; and it remained there for eight months. He said that he complained to Code Compliance, and he moved it to the back of his lot. He mentioned that Mr. Hurst pointed out that Magic Springs is down the street, but he did not believe that a junk yard within 400 yards of Magic Springs is any enhancement to Magic Springs. He said that Mr. Hurst addressed the fact that the corner lot at Spring and Millcreek is zoned differently, but the individual who owns that lot adamantly opposes changing this. He mentioned that the owner of this property has violated every law and misused the code and court system. He said they were annexed into the City and are depending on the City to protect them in this matter. Mr. Ioan Feier, 1102 Rector, said that in past years. he repaired cars and was fined for that. Regarding the truck being in the high grass, he said he broke a lot of equipment keeping that grass cut back. Also, he has a picture of neighbors operating metal building siding work. Ms. Kathy Sheppard, 205 Rosemead, said her property is directly behind this property. She noted that she met the owner of this property when he and his wife first bought it, and they made it look very attractive. However, since he has moved, it has not been mowed; and she is against this rezoning because it will lower her property values. Also, she did not believe it is relevant to Magic Springs. Ms. Wendy Hamilton, 208 Rosemead, said that in regard to the noise that Mr. Hurst alluded to, she can barely hear the concerts and urged the Board to vote against the rezoning because she does not want a decrease in her property value. Board of Directors Meeting 11 May 22, 2006 at 7:00 P.M.  Director Maruthur read from the minutes of March 9 Planning Commission in which Acting Planning Director Lance Hudnell stated the recommendation from staff was a denial because it did not meet the proper land use for this neighborhood, and the recommendation was for this to remain residential. She asked that Mr. Bart Jones address the Board. Mr. Bart Jones, Housing Administrator, reported he has a citation and history on the property. He reported that the City issued 15 citations with 57 separate counts and that was with Mr. Feier, who was operating the property. He stated that is the most the City has ever issued at one location, and staff=s recommendation was not to approve the rezoning. Director Smith asked if that was over a two-year time frame, and Mr. Jones advised that it was from December to the present. Director Weatherford questioned the use of the C-4 property on the corner, and Mr. Wilcox advised that it is at the corner of Spring and Millcreek and is vacant. He added the individual who owns this property is adamantly opposed to the rezoning because it abuts his property. City Manager Kent Myers advised that Mr. Bill Heaton, a resident in this area telephoned today expressing his opposition. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Weatherford and Edwards, total 2. Voting Ano@: Directors Maruthur, Jones, Smith, Daniel, and Bush, total 5; motion failed. Whereupon the ordinance was declared failed. 28 Proposed Ordinance No. O-06-35 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING CERTAIN PARCELS OF LAND IN EASTGATE II SUBDIVISION FROM R-1, RURAL RESIDENTIAL, TO R-2, SUBURBAN RESIDENTIAL,@ was taken from the agenda for consideration. A motion was made by Director Edwards, 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 Board of Directors Meeting 12 May 22, 2006 at 7:00 P.M. upon motion of Director Edwards, duly seconded by Director Smith, that the ordinance be passed as read. Upon discussion, Acting Planning Director/Deputy City Manager Lance Hudnell advised this is a zoning of property that was annexed into the City; and this is an island situation where the backyards and several properties in Eastgate II are zoned as the surrounding property. 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-06-36 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY ZONING CERTAIN PARCELS OF LAND ALONG DAVIDSON DRIVE R-1, RURAL RESIDENTIAL,@ was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question 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. Upon discussion, Acting Planning Director/Deputy City Manager Lance Hudnell advised that this is zoning an annexation. Properties come in as R-1, and this is confirming the zoning as R-1. 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. 30 Proposed Ordinance No. O-06-37 Board of Directors Meeting 13 May 22, 2006 at 7:00 P.M.  An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF HOT SPRINGS, ARKANSAS, BY REZONING LOT 5 IN WRIGHT=S SUBDIVISION NO. 2 FROM R-3, LOW DENSITY RESIDENTIAL, TO C-3, OFFICE/NEIGHBORHOOD COMMERCIAL DISTRICT,@ was taken from the agenda for consideration. (205 Nash Street) 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 Edwards, duly seconded by Director Jones, that the ordinance be passed as read. Upon discussion, Mr. Dick Belanger, CEO of Combined Healthcare, 204 Nash, stated this was the last piece of property they had purchased; and they are looking for access to the back side of the Franklin property. Their only plans are for a driveway and perhaps some parking. 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. Voting Ano@: Director Weatherford; motion carried. Whereupon the ordinance was declared passed. 31 Proposed Ordinance No. O-06-38 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING 854 THIRD STREET FROM R-3, LOW DENSITY RESIDENTIAL, TO C-TR, COMMERCIAL TRANSITIONAL,@ was taken from agenda for consideration. A motion was made by Director Edwards, 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 Edwards, duly seconded by Director Maruthur, that the ordinance be passed as read. Upon discussion, Mr. Jerry Waye, 750 Bayshore Lane, distributed photos of the area, and said he agreed to tear it down to get it rezoned and construct a new storage facility. He commented the way it was zoned, it was for one single, family unit. Board of Directors Meeting 14 May 22, 2006 at 7:00 P.M.  Director Weatherford commented this is placing a commercial in the middle of a residential area. Mr. Waye advised that he talked to the Planning Department, and it was going to be changed to C-TR, Commercial Transitional, which he said would qualify for the mini storage. Director Weatherford stressed that it is still commercial in the middle of a residential area. He noted that the Board just failed a previous issue because it was just outside commercial. He noted that everything on that side of the street is residential, and the commercial is across the street. Planning Director/Deputy City Manager Lance Hudnell added that the difference is this one is not C-4, which is open display/regional commercial district but is C-TR, Commercial Transitional, which is a zone that is meant to transition from commercial areas to residential areas. He explained that the Board is not necessarily approving the storage units, and there is no guarantee the storage units may or may not be approved by the Planning Commission. He mentioned that will have to come back as a conditional use application. Director Smith said this is in his district (District 3), and there is residential next door. He stated that he would want him to be sensitive to that residential area in terms of conditions that will be placed on it through Planning. If there are storage units in there, he said he would not be in favor of cars going in there in the middle of the night and trucks unloading. He stressed that he would be opposed to any activity such as that. Director Daniel asked if the Board can request that they place a buffer in a C-TR zone; and City Manager Kent Myers replied that they could. Mr. Waye advised that he already plans to construct a privacy fence. Director Weatherford questioned other uses for a C-TR, and Acting Planning Director/Deputy City Manager Lance Hudnell advised that it can be used for the following: adult daycare centers, airport landing field, alcohol package sales, animal hospital, appliance repair store, arcade, beauty shop, bars or lounges, concrete, mortar or plaster patching, bathhouse, bed and breakfast, bowling alley, business machine sales, financial institutions, florist shops, funeral home and related facilities, grocery store, and hospitals. Director Weatherford pointed out they could return for any of those uses, but it does not come back to the Board; and if the Planning Commission approves it, it is okay. Board of Directors Meeting 15 May 22, 2006 at 7:00 P.M.  Director Daniel asked if there would be an appeal process; and Acting Planning Director/Deputy City Manager Lance Hudnell advised that not unless one of the affected parties appealed it, either the neighborhood or the applicant. City Manager Kent Myers advised that the City notified everyone within 300 feet of the property, and there was no one in attendance in opposition to the zoning change. 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. Voting Ano@: Director Weatherford; motion carried. Whereupon the ordinance was declared passed. 31A Proposed Ordinance No. O-06-39 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING LOT 8, BLOCK 142 OF HOT SPRINGS RESERVATION FROM R-3, LOW DENSITY RESIDENTIAL, TO C-1, CENTRAL BUSINESS DISTRICT,@ was taken from the agenda for consideration. (100 Block of Arbor Street) 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 Edwards, that the ordinance be passed as read. Upon discussion, Ms. Sherry Rardin, 105 Westhill, from the Velda Rose, said that the taxes have been paid commercially on this building since the early 1980's. It was used for a laundry for the Velda Rose in the 1980's; therefore, it has been commercial; and they could use some new business in this area. Ms. Shea Childs, 112 Edgewood, said that she has requested this zoning change to C-1 because she would like to renovate it and put in an art space. She stated that she and her husband produce the Valley of the Vapors Independent Music Festival and plan to host it for five days every March, as well as other visual and performing arts. They also plan to have a small retail space where they could have local artists sell their wares and rent out the top floor. Board of Directors Meeting 16 May 22, 2006 at 7:00 P.M.  Mr. Shawn Chapman, 303 Ramble, said this is less than a mile from his home and something needs to be done with that property. He commented that he teaches at ASMSA and has worked with the Valley of the Vapors trying to get the students and the youth involved. He said this will give children a place to write songs and learn about the arts, and he supports it. 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 Bush, total 5. Directors Weatherford and Daniel were out of the Board Chambers and did not cast a vote; motion carried. Whereupon the ordinance was declared passed. 31B Proposed Ordinance No. O-06-40 An ordinance entitled, AAN ORDINANCE AUTHORIZING THE REIMBURSEMENT OF EXPENSES AND MILEAGE INCURRED BY THE PLANNING COMMISSION MEMBERS IN THE PERFORMANCE OF THEIR DUTIES; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Edwards, 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 Edwards, duly seconded by Director Jones, that the ordinance be passed as read. Upon discussion, Mr. Gary Threadgill, 111 Mason, Chairman of the Planning Commission, said they are requesting to be reimbursed for their mileage expense. He mentioned that Arkansas Code Annotated '14-56-410 allows ,with Board of Directors= approval, to grant them reimbursement for their fuel or any expenditures. City Manager Kent Myers explained that reimbursement for fuel would be based on mileage according to IRS rates, which is 44.5 cents per mile. Director Weatherford questioned if he was not aware when he applied for the Planning Commission that the commissioners would not be paid, and Mr. Threadgill said that he did. However, he also noted in the Arkansas Code that they could be reimbursed for any expenditures. He pointed out that according to Section 410, they are to be compensated for any expenses they incur doing the job. He stated that they have driven Board of Directors Meeting 17 May 22, 2006 at 7:00 P.M. as far as 100 miles and stressed that he is referring to reimbursement for their fuel expenses. Director Maruthur questioned if this was covering his fuel expenses traveling to and from the meetings or to the different sites. Mr. Threadgill replied that at the present time, they are rewriting and re-doing codes requiring extra meetings. They are requesting to be reimbursed for the meetings they have to attend to re-do ordinances, etc., plus the mileage driving and checking all of the items on the agenda each month, which have been around 27 items, and driving 75 to 100 miles per month. City Manager Kent Myers noted that recently there have been numerous code enforcement complaints from Planning Commission members and questioned if this would include code enforcement complaints or just specific items on the Planning Commission agenda. Mr. Threadgill replied that it relates to only the items on the agenda and the meetings they have pertaining to the agenda. He said that he asked Deputy City Manager Lance Hudnell to draft a form they could fill out and present to the Finance Department each month. Deputy City Manager Lance Hudnell advised that the Finance Department requires a calendar listing of days, 1 through 31, the miles driven each day, and then totaled and submitted each month with a statement certifying this was done in the performance of their duties. Mr. David Campbell, a member of the Planning Commission, said that he keeps a record of the meetings he has attended, agenda meetings, the times the commissioners look at the projects, and any workshops they attend. He said that for the first five months, he has driven 351 miles in the performance of his duties on the Planning Commission. Mayor Bush questioned how it will affect the other boards and commissions if the Board approves this tonight; and Mr. Gary Threadgill advised that according to the Arkansas Code, the Planning Commission is the only commission that is authorized to receive compensation for its work. City Attorney Brian Albright added that Arkansas Code Annotated '14-56-409 authorizes the Board to set a compensation for attendance of meetings; however, what is being asked tonight is not compensation for attending meetings but rather is intended to be a reimbursement for their actual expenses. He said that he would assume all of the other advisory boards and commissions could request for reimbursement of their actual out-of-pocket expenses. Board of Directors Meeting 18 May 22, 2006 at 7:00 P.M.  Mayor Bush asked if there is an estimate on what this will cost the City for a year, and Mr. Threadgill said that when he gave the $50 basis, he estimated $4,200 a year to pay all seven members. City Manager Kent Myers pointed out there is a monthly report from the Planning Department that is generated by Acting Planning Director Lance Hudnell, and this could be added to the Planning Department=s report and report the mileage the City reimburses to each commissioner so the Board would see that on a monthly basis. He noted if the Board is not comfortable with the policy, it can be changed at a later date. Mayor Bush asked the effective date of this ordinance, and City Attorney Brian Albright advised that if it is permanent and continuing in nature, it is 30 days. Director Daniel mentioned that state statute says they can be compensated for attending meetings, and City Attorney Brian Albright read from the statutes which states: Athe members of the municipal planning commissions established pursuant to the provisions of this subchapter shall be entitled to receive such compensation, if any, for attendance at commission meetings as may be authorized by an ordinance duly adopted by the governing body of the city.@ He said that is for the Planning Commission for attendance of their meetings. Director Daniel asked if the City could pay them a fee for attendance of meetings rather than mileage, and City Attorney Brian Albright advised that the Board can compensate them for attendance of the meetings, rather than mileage. Director Daniel pointed out that according to the state statute, the Planning Commission is the only commission or board entitled to compensation for attending; and City Attorney Brian Albright stated that was correct. City Attorney Brian Albright then read Arkansas Code Annotated '14-56-410, which states Aa municipality is authorized to appropriate funds to the Planning Commission to be used in carrying out its functions.@ Director Edwards stated that would be part of the job of being elected, but the other is reimbursing them for the mileage they have to drive to check out items on the Planning Commission agenda. Board of Directors Meeting 19 May 22, 2006 at 7:00 P.M.  City Manager Kent Myers stated if the Board wants to pay them for attending meetings, they need to vote down the ordinance tonight and bring a revised ordinance back for consideration. City Attorney Brian Albright said that is correct, and the ordinance on the table is for reimbursement of necessary expenses and mileage incurred in the performance of their duties. This is not a compensation or stipend for the attendance of meetings. A motion was made by Director Smith, duly seconded by Director Daniel, to amend the ordinance and also add a trial period to monitor this. City Attorney Brian Albright asked that the motion be clarified, such as if this is for a certain amount of money. If so, would it be per meeting or per month? He noted that occasionally there are special meetings, workshops, etc. Deputy City Manager Lance Hudnell stated that it would be better if staff could research it further. At this time, Director Smith withdrew his motion and Director Daniel his second. Mr. Campbell pointed out that the compensation will be fine but believes that the mileage would actually be cheaper. Mayor Bush noted that a set fee could be budgeted and an amount would be known. At this time, Mayor Bush called for a vote on the original 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. 31C Proposed Ordinance No. O-06-41 An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 5075 (HOT SPRINGS MANUFACTURED HOME ORDINANCE); DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES, @ 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 Board of Directors Meeting 20 May 22, 2006 at 7:00 P.M. 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 Smith, duly seconded by Director Jones, 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. The emergency clause was then read; and upon motion of Director Smith, duly seconded by Director Edwards, that the emergency clause be passed; and upon voice vote, the motion unanimously carried. Whereupon the emergency clause was declared passed. 31D Proposed Ordinance No. O-06-42 An ordinance entitled, AAN ORDINANCE AMENDING THE HOT SPRINGS SIGN CODE (ORDINANCE NO. 5086) BY ADDING AN EXCEPTION FOR SIGNS ON PUBLIC TRANSIT VEHICLES AND CERTAIN VEHICLES FOR HIRE; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Smith, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Smith, duly seconded by Director Maruthur, that the ordinance be passed as read. Upon discussion, Director Daniel commented this was discussed a few weeks ago; and he mentioned to staff that the Sign Code should be reviewed on this matter. He said it appears that through the years, there have been some spot changes; and the small people have not been taken into consideration, especially in any type of portable advertising. However, the City is now going to allow portable advertising on commercial vehicles, etc. He pointed out there is portable advertising on bus benches from which the City collects a fee. He suggested that this ordinance be tabled and discussed at a Board Work Session. Mayor Bush questioned who made this request, and Deputy City Manager Lance Hudnell advised that Mr. David Johnson made a request to the Transportation Advisory Committee to consider this for advertising on taxicabs only. He stated it would also apply to other sightseeing vehicles, and it has come to the City=s attention that they already have third-party advertising on them. From the Transportation Advisory Committee, it went to the Planning Commission and then to the Board. Board of Directors Meeting 21 May 22, 2006 at 7:00 P.M.  A motion was made by Director Daniel, duly seconded by Director Smith, that the ordinance be tabled to a Board Work Session; and upon roll call, the following voted Aaye@: Directors Smith, Weatherford, Edwards, Daniel, and Bush, total 5. Directors Maruthur and Jones were out of the Board Chambers and did not cast a vote, total 2; motion carried. 31E Proposed Ordinance No. O-06-43 An ordinance entitled, AAN ORDINANCE ACCEPTING CERTAIN STREETS WITHIN THE SHALE CREEK SUBDIVISION,@ 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 roll call, the following voted Aaye@: Directors Daniel, Smith, and Bush, total 3. Voting Ano@: Directors Edwards and Weatherford, total 2. Directors Jones and Maruthur were out of the Board Chambers and did not cast a vote, total 2. There being five votes necessary to suspend the rules and read by title only, the motion failed. Therefore, the ordinance will be carried over to June 5 for its first reading. 31F Proposed Ordinance No. O-06-44 An ordinance entitled, AAN ORDINANCE APPROVING A SHORT-TERM FINANCING AGREEMENT WITH REGIONS BANK FOR THE LEASE PURCHASE OF TRANSFER TRACTORS FOR THE SANITATION DEPARTMENT; AWARDING BID TO TIMBERLINE INTERNATIONAL; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Edwards, duly seconded by Director Weatherford, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Edwards, duly seconded by Director Jones, that the ordinance be passed as read. Board of Directors Meeting 22 May 22, 2006 at 7:00 P.M.  Upon discussion, Mr. Bill Burrough, Sanitation Director, explained that they need this equipment for continuity of waste flow from the transfer station to the landfill. This is for two tractors that replace two pieces of equipment that are both 16 years old and is included in the Sanitation Budget. 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. 31G Proposed Ordinance No. O-06-45 An ordinance entitled, AAN ORDINANCE APPROVING A SHORT-TERM FINANCING AGREEMENT WITH REGIONS BANK FOR THE LEASE PURCHASE OF TWO FRONT-LOAD COMMERCIAL COLLECTION VEHICLES FOR THE SANITATION DEPARTMENT; AWARDING A BID TO RIVER CITY HYDRAULICS; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read 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 Jones, that the ordinance be passed as read. Upon discussion, Mr. Bill Burrough, Sanitation Director, stated this is in accordance with the 2006 budget and is replacing two pieces of equipment that they use for commercial dumpsters. One of these units is ten years old, and the second is six years old. Also, one of collection vehicles had $40,000 worth of repairs in the past 12 months. 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. Board of Directors Meeting 23 May 22, 2006 at 7:00 P.M. 31H Proposed Resolution No. R-06-197 A resolution entitled, AA RESOLUTION ADOPTING A POLICY AND FEE SCHEDULE FOR AFTER-HOURS CONSTRUCTION CODE INSPECTIONS,@ was taken from the agenda and read by title only. A motion was made by Director Weatherford, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Deputy City Manager Lance Hudnell pointed out this is the Board=s discretion as how to structure it. Director Smith asked if there is a market for Saturday inspections at 6 a.m., and Director Weatherford commented that specific time was stated because it is starting at 6 a.m. the rest of the week. He stated the $100 fee is before and after and is not during regular working hours. Also, the time set out gives the builder or developer an opportunity to get an inspection at 6 a.m. during summer time or winter time. They can get it on weekends, which they cannot now and cannot get it on a Saturday if they are trying to get something done for Monday. 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. OTHER BUSINESS 32 Board of Directors Items Director Edwards stated that he does not have a key to any of parking meters and pays for his own cell phone. Director Weatherford commended Sanitation Director Bill Burrough and his department for last weekend=s spring clean-up. Director Maruthur asked which district had the most cubic yards in the dumpsters, and Sanitation Director Bill Burrough said that he did not have that figure at this time; but Board of Directors Meeting 24 May 22, 2006 at 7:00 P.M. they had 107 hauls, which is a little over 3,000 cubic yards. He said he would have that information for her at the next meeting. Director Maruthur encouraged everyone to vote tomorrow. Director Smith commended the Sanitation Department and Sanitation Director Bill Burrough for the clean-up. He encouraged everyone to vote tomorrow, noting that the polls are open from 7:30 a.m. to 7:30 p.m. Director Jones said there was a letter of commendation in the newspaper from a woman who saw Sanitation Director Bill Burrough working around 5 a.m. or 6 a.m. picking up trash with his crew. She reported there was a Homebuyers= Fair held at the Transportation Depot with the realtors, bankers, and some of the City staff. She commented Mr. Nelson Self, CDBG Coordinator, for getting this together. Also, Ms. Shirley Greathouse is the homebuyer chairman at the present time. Bank of the Ozarks announced that the City had received a $100,000 grant for the elderly and disabled who live in their homes. She stated this will help only Districts 1 and 2 at the present time where the CDBG funds are designated. Deputy City Manager Lance Hudnell added that this $100,000 actually has to be spent on the same units as the CDBG money is being spent on, not just the target areas. He said it will stretch the CDBG money by allowing another house that is on the list to be done. Director Edwards asked when another district will be eligible for these funds, and Deputy City Manager Lance Hudnell advised that will be up to the public hearing process this fall in which the Board will be involved. 33 City Manager=s Report City Manager Kent Myers gave the following report: 1. Mr. Steve Mallett, Public Works Director, received verbal approval today from the Arkansas State Highway and Transportation Department to make the traffic changes in CBID No. 3, which the Board approved a month ago. The City would like to have all of the traffic improvements in place prior to the Memorial Day Weekend, and he encouraged the Board to check out the area over Memorial Day Weekend and see how the traffic is flowing during peak tourism season. Board of Directors Meeting 25 May 22, 2006 at 7:00 P.M.  2. He, Deputy City Manager Lance Hudnell, and Human Resources Director Minnie Lenox have completed the telephone screening of the Planning and Development Director applicants. Four finalists have been selected, and they will be interviewed in June, subject to background checks. 3. On the Consent Agenda, the Board approved the following: (1) the City received a grant from Weyerhaeuser for Art in the Park; (2) approved a contract for infrastructure improvements for Wheatley Village, which is a Habitat project off Whittington. The CDBG money will be used for water and wastewater improvements to improve that subdivision; and (3) the Board accepted the 2005 wastewater audit report, which is available for review in the Finance Department. Director Maruthur announced there was a recent meeting of the MPO Policy Board, and there are some completion dates for Higdon Ferry, Section Line and Central Avenue. City Manager Kent Myers advised that an update was received from Mr. Tim Baber, District Engineer with the Arkansas State Highway and Transportation Department; and they have expedited the project of widening Highway 70 West to Lake Hamilton School. That project is now scheduled to be completed this year versus next year. They are anticipating the Expressway improvements at Higdon Ferry and Central will be completed this fall. Higdon Ferry right-of-way acquisition has started for Higdon Ferry widening, Phase I. Hopefully, construction will start on that sometime in 2007. 34 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:50 p.m., to meet again on Monday, June 5, 2006, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 26 May 22, 2006 at 7:00 P.M.