Board of Directors

MINUTES BOARD OF DIRECTORS MEETING AUGUST 7, 2006, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, August 7, 2006, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Ms. Paula Childs, 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 Weatherford, duly seconded by Director Daniel, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of July 10, 2006 Board Meeting A motion was made by Director Edwards, duly seconded by Director Maruthur, that the minutes of the July 10, 2006 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Mayor Bush announced that he had six bypasses about eight weeks ago and expressed appreciation for the flowers, cards, e-mails, letters and prayers he received during this time.  CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (July 26, 2006). 6 Proposed Resolution No. R-06-237 Approving Certain Bid Awards (a) Uniform Service - Fleet Service, Intracity Transit, Parks, Sanitation, Traffic, and Utilities [annual supply contract awarded to UniFirst and Cintas]; (b) Firefighting Equipment - Fire [awarded to Pro-Fire and Casco]; (c) Top Soil - Public Works [annual supply contract awarded to John Jenkins and Company]; and (d) Lime - Utilities [annual supply contract awarded to Arkansas Lime]. 7 Proposed Resolution No. RB06-238 Approving Change Order No. Six to the Contract with BB&B Construction for the Carpenter Dam (Highway 128) Utility Relocation Project. 8 Proposed Resolution No. R-06-239 Supporting the Reallocation Request for Mid-Arkansas Water Alliance. 9 Proposed Resolution No. R-06-240 Adopting Certain Operational Regulations for the City of Hot Springs Compost Facility. (Removed from Consent Agenda for Separate Consideration) 10 Proposed Resolution No. R-06-241 Endorsing Sustainable Energy Principles. 11 Proposed Resolution No. R-06-242 Accepting a Grant from the United States Department of Transportation and the Arkansas State Highway and Transportation Department for Public Transportation Grant Assistance Provided Under 49 USC '5303 - Metropolitan Planning Program (Fiscal Year 2007). 12 Proposed Resolution No. R-06-243 Awarding a Contract for Engineering Services to B&F Engineering, Inc. for Engineering Design Services for Valley Street Creekwalk - Hot Springs Creek Greenway. Board of Directors Meeting 2 August 7, 2006 at 7:00 p.m. 13 Proposed Resolution No. R-06-244 Accepting and Appropriating Reimbursement of Funds for Art in the Park Advertising Expenses. 14 Proposed Resolution No. R-06-245 Accepting a Grant Amendment from the Arkansas Historic Preservation Program Increasing the Grant Amount in Order to Procure the National Preservation Institute to Host a Training Seminar in Hot Springs. 15 Proposed Resolution No. R-06-246 Authorizing Disbursement of HUD Community Development Block Grant (CDBG) Program Funds to Woodman Senior Living LP for Reimbursement of Architectural Fees and Amending the FY 2004 Community Development Block Grant (CDBG) Program Annual Action Plan. 16 Proposed Resolution No. R-06-247 Appointing Marcia Dobbs-Smith, Ed Tallach and Long Hua Xu to the Historic District Commission. 17 Proposed Resolution No. R-06-248 Revising the Structure and Purpose of the EMS Medical Advisory Board and Defining the Responsibilities of Such Board and for Other Purposes. 18 Proposed Resolution No. R-06-249 Approving a Certain Street Name (Spencer Chase Court). A motion was made by Director Jones, duly seconded by Director Smith, that the Consent Agenda be approved. Upon discussion, Director Maruthur requested that Item No. 9 (Proposed Resolution No. R-06-240 Adopting Certain Operational Regulations for the City of Hot Springs Compost Facility) 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, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Board of Directors Meeting 3 August 7, 2006 at 7:00 p.m.  UNFINISHED BUSINESS 19 Proposed Ordinance No. O-06-50 An ordinance entitled, AAN ORDINANCE AMENDING THE ZONING CODE OF THE CITY OF HOT SPRINGS, ARKANSAS, BY REZONING 187 PORT-AU-PRINCE FROM R-L, LAKE AREA RESIDENTIAL, TO PD, PLANNED DEVELOPMENT DISTRICT,@ was taken from the agenda for consideration. (Second Reading) (First reading - June 19, 2006) A motion was made by Director Edwards, duly seconded by Director Smith, that the rules be suspended and the ordinance be read for the second time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the second time by title only; and upon the question 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. Upon discussion, Mr. Ray Owen, Jr., attorney, 110 Leigh Circle, stated that in 2005, his client bought property on Lake Hamilton located at the dead end of Port-Au-Prince. For many years, eight small houses were on the property including seven rental units, and the property was a fishing village, including a bait shop and marina for many years. When his client bought the property, the houses had not been occupied for over a year and were unsafe and unsightly. After the purchase, the City sent a 28-page letter to his client requiring numerous repairs and rehabilitation to bring the old cottages into compliance with the unsafe building ordinance. He said the owner determined it was not feasible to rehabilitate the structures and removed them. After contracting to purchase the property, Lakeshore Oaks filed an application to rezone the property to construct four duplex units as eight condominiums; however, that request was denied by the Board. In January 2006, the owner petitioned the Planning Commission to reconsider the PD based on seven condominiums on the property. Staff recommended denying the request unless a more substantial change was made, such as further reducing unit density and encouraged the owner to consider a single-family subdivision. The Planning Commission followed staff recommendation and denied the January request for reconsideration. In March, the owner filed another request for reconsideration to change the zoning from R-L to PD; and following the previous staff recommendation, proposed six separate, freestanding town homes in a single-family subdivision for six lots. The staff concurred that was a substantial change, and the Planning Commission agreed in April. The present Board of Directors Meeting 4 August 7, 2006 at 7:00 p.m. application for rezoning the property as a Planned Development was then filed. The Hot Springs Zoning Code requires that a PD meet at least one of five criteria. This present application meets three of those criteria, and the proposed plan has been approved by all pertinent City departments. Under the plan, Port-Au-Prince will no longer have a dead-end without a turnaround but will end in a cul-de-sac, which will be dedicated to the City. The cul-de-sac was designed after input from the Fire and Sanitation Departments and other City agencies. Prior use of this property was for eight individual residences, but the proposed use of the property will be for six individual residences, some of which will likely be used as vacation homes; thus resulting in a decreased traffic flow. He pointed out a further benefit of this plan is that it will generate substantial new tax revenue for the Hot Springs schools. The Planning staff recommended approval of this new plan for six, separate freestanding individual residences and six lots, and the new cul-de-sac. The Planning Commission agreed voting to rezone the property to a Planned Development at its June meeting. He requested that the Board follow the recommendations of the City staff and the Planning Commission and approve this Planned Development. He commented that the approval of this rezoning will enhance the neighborhood while maintaining its residential quality. Also, utility and transportation systems will be improved; and the Hot Springs schools will benefit. Mr. Owen then distributed the 28-page letter that he previously referenced. Director Maruthur questioned the three criteria that they meet in the PD, and Mr. Owen advised that the Planned Development will (1) allow the development of an infill parcel in the developed portion of the City that could not be made productive under normal zoning regulations. He noted this parcel could easily be considered an infill parcel in a developed neighborhood because the previous use of the property was a preexisting, nonconforming use; i.e., bait shop and eight rental cottages. Once the dilapidated buildings were removed in the summer of 2005, it left a vacant parcel lending itself for infill development; (2) will allow the development of a very high quality in innovative urban design and will allow development of this property inside the City to be compatible and competitive with lakefront development outside the City. This Planned Development allows the improvement of the end of Port-Au-Prince, which heretofore has been underdeveloped; and (3) will aid in the elimination of slums and blight within the City and its planned area boundary. Several of the structures that previously existed, if not rehabilitated or razed, would have been included in a list of buildings needing to be condemned for safety reasons; and this Planned Development has eliminated those concerns. Board of Directors Meeting 5 August 7, 2006 at 7:00 p.m.  Director Maruthur questioned why this could not remain in an R-L, and Mr. Owen explained if it were to be R-L, there could be three, single-family dwellings on the property. He added there is only 70 feet of frontage on Port-Au-Prince where it ends, and there would have to be a cul-de-sac on the property, which would cut into the property and go below the 40,000 square feet and would only allow the three individual, single-family lots. Director Jones questioned if the plan before the Board is a complete plan, and Mr. Owen advised that it is. Ms. Kathy Mowery, 1061 Burchwood Bay Road, stated that in looking at the plans submitted, it appears that the applicant is taking the original duplexes and separating them. She said in her opinion, he does not meet any of the criteria that was outlined. She commented that the applicant claims it is going to provide high quality or innovative urban design, but she has not seen a blueprint in the packet or a building sketch they submitted to back up their claim; and the only thing submitted was a site plan with no building sizes included. She noted there were only lot sizes. She pointed out it says it would aid in the elimination of slum and blight in the City but noted this is not a slum or blight but is a vacant site. She stated the other criteria is that it has to be a menace to the public, health, safety and welfare in its present condition and use but is not any of those things. She stressed it is a vacant site. Ms. Mowery mentioned there is a 30 percent requirement of open space reservation. It has been submitted as common area with no open space reservation, and this does not meet any of those requirements. She said the applicant submitted a package of POA Covenants, which states these covenants and restrictions may be amended, canceled or supplemented by a written instrument, signed by seventy-five percent (75%) of the owners. It also states that the signing grantors reserve the right to change or cancel any or all of these restrictions if in their judgment the development or lack of development of adjacent properties makes that course necessary or advisable. She stated in looking at the site sizes, the average for these six sites is 6,186 square feet. Taking the 48 improved lots, she noted these are 71 percent smaller than the overall neighborhood average. The City=s Comprehensive Plan states that the shoreline area should be protected from intensive development, and the map shows that the future use be an R-3, Low Density. That guideline requires 7,000 square feet per site but does not even meet those guidelines. The City=s definition of spot zoning states in part that land may not merely be so zoned in the interest of an individual or small group but must be in the general interest of the public, which is not the case in this instance. The only one to benefit would be Salter Construction. In Section 16-2-47 of the Code, it states that the PD may not be used simply as a method of avoiding zoning regulations. Also, it Board of Directors Meeting 6 August 7, 2006 at 7:00 p.m. states the PD will provide public benefits that would not be achievable through the normal zoning. Mr. Gene Salter, 2915 St. Charles, Conway, Arkansas, who also has a residence at 410 Halteria in Hot Springs, said he has attempted through the Planning Department and Utilities Department to establish the design on this property as best fitting as they could. In reference to the smaller size of the lots, they are dedicating a turnaround cul-de-sac at the end of the street out of the property that they purchased. He said that is part of the elimination of the square footage in trying to improve Port-Au-Prince and its affect on the surrounding neighbors. He asked that Mr. Owen address several items that have been mentioned. Mr. Ray Owen, Jr. stated in regard to the comment on the restrictions in the Bill of Assurance, that could be changed, noting those are typical provisions to be able to change Bills of Assurance. However, to get away from the Planned Development that was already approved by the City, those changes cannot be made because once it is approved by the City as a Planned Development, that is the plan that is followed. He stressed regardless what the developer wants to do, it cannot be changed. He noted there are some neighbors who are in favor of this and some who are opposed. He distributed the Board a sketch. Director Maruthur stated Ms. Mowery had said there has been no mention of the building sizes and open spaces; and Mr. Owen stated in regard to open spaces, there is a substantial portion of the property that is being dedicated to the City for the turnaround; and part of the Planned Development was to provide a cul-de-sac. As far as the actual plans, other than the footprint, he said it is his understanding they are talking about how to do that at this time as far as the exact sizes are concerned. He commented they are supposed to be very high-end units and residences. Director Weatherford said it was his understanding this should have already been approved, and Mr. Owen replied that the footprint is approved by the Planning Commission He added that the size is the footprint whether it is one story or 12 stories. Director Weatherford pointed out that one story is what it says, but now it is 12 stories, possibly two stories. He stressed that this has not been decided. He stated they want it as a PD but they are going to change it as they get ready to build it and return to the Planning Commission. He added that everyone is under the impression this is one story, and the footprint has been set; but everything else can change. Board of Directors Meeting 7 August 7, 2006 at 7:00 p.m.  Mr. Owen replied that is typical with regard to a Planned Development. Director Weatherford stressed that the City does not want any more PD=s on the lake, and there is only one on the lake. He commented that the Comprehensive Plan says the City wants to do away with multi-unit growth on the lake, but inside the City, it does not say that. Mr. Owen pointed out there is a Planned Development located on Malvern, and they did not specify when they did the Planned Development whether they would be one or two story buildings. He noted it does not say specifically that a Planned Development is treated differently on the lake than a Planned Development at any other location. Director Weatherford commented that is why the City been discussing the elimination of Planned Developments, at least on the lake, not necessarily in the City. Mr. Owen stated the City still has a Planned Development; and if a Planned Development is approved, it stands on its own. He commented this Planned Development is a reasonable plan. Director Weatherford stressed that all they have brought is a footprint and not any other information. He pointed out there is no elevation what they will look like, how large they will be or how many stories. Ms. Kathy Mowery stated open space reservation is land not used by buildings, accessory structures, and yards but required by the zoning district in which the site is located and shall be maintained as open space for the purpose of providing parks, recreational facilities, ways for pedestrian movement and circulation, and conserving visually pleasing elements of the environment. She commented that does not appear to be a cul-de-sac. Ms. Barbara Anable, 120 Sanson at Lakeshore, stated that she supports the retention of the R-L zoning pointing out that the property was sold as R-L; and the zoning requirements to build should have been known at the time of purchase. She said the acreage size is still 1.06 acres and rather than permitting a rezoning of the property, the applicant should meet the known code requirements for building on a 1.06-acre lot. She mentioned this a community of older, single family homes and is the neighborhood standard that needs to be enforced. Ms. Glenda Cummins, 113 Saxony Court, said she is a realtor with Trademark Real Estate, Inc. and supports this project, commenting it will enhance and cause the value of the other surrounding properties to increase in value. Board of Directors Meeting 8 August 7, 2006 at 7:00 p.m.  Mr. Paul Mowery, 170 Joel Road, stated that rezoning such a small parcel of land from Lake Residential to Planned Development, if allowed, would open the door for contractors and developers to set their own rules on developing the shoreline of Lake Hamilton inside the city limits as they are running out of extremely probable properties on the county side. He said it is his understanding that once a parcel is approved in Planned Development, it can be changed outside the normal parameters if needed for the project to be completed. He said this move would generate revenue for the community and local government but questioned if it is worth losing the relaxing ambience of Lake Hamilton. Mr. Joe Goslee said he is building at 180 Port-Au-Prince Road and supports this development. He stated that he understood Mr. Owen distributed a sheet showing where each individual resides who supports this. He commented that it looks as if the majority of the people who would be directly affected support this proposal. He questioned how it would affect the residents who live on Sanson and Waverly. He mentioned that in condominiums, there is a resident below or above, and these are townhouses similar to Paradise Point. Director Maruthur asked if he plans on residing or selling the home he is building at 180 Port-Au-Prince Road, and Mr. Goslee said that he plans on residing there. Mr. Ron Looper, 182 Port-Au-Prince, said he has the property immediately adjacent to this proposed development, and this project will improve the economy of the City and the neighborhood. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Smith, Edwards, Daniel, and Bush, total 5. Voting Ano@: Directors Jones and Weatherford, total 2; motion carried. Whereupon the ordinance was declared passed. 20 Proposed Ordinance No. O-06-61 An ordinance entitled, AAN ORDINANCE PROHIBITING SMOKING AND THE USE OF TOBACCO PRODUCTS IN MUNICIPAL BUILDINGS AND FACILITIES,@ was taken from the agenda for consideration. (Second Reading) (First Reading - July 10, 2006) A motion was made by Director Weatherford, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the second time by title only; Board of Directors Meeting 9 August 7, 2006 at 7:00 p.m. 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 Maruthur, that the ordinance be passed as read. Upon discussion, Director Daniel stated that the State of Arkansas recently passed a smoking ban in the State; and his problem is the 25 feet from any public entrance. He pointed out visitors will be aware of the State law but not familiar with the distance of 25 feet from any public entrance at City facilities. He noted that the conventioneers will know the State law and yet they are going to come to Hot Springs and there is a different law. He questioned who is going to enforce it and how will they enforce it. City Manager Kent Myers advised that vehicles are covered by State law, and the City is already enforcing the 25 feet in front of city building doors. He added that is an administrative policy that the City is already enforcing as a result of complaints received three or four months ago, and this would formalize that 25 feet the City is already handling on an administrative basis. Director Daniel asked if he considered this necessary, and City Manager Kent Myers replied that city employees have relocated their smoking away from the entrances and exits of City Hall. However, he cannot speak to visitors. Director Daniel commented that the Civic Center will be the biggest problem since there are visitors and groups that have had smoking areas outside, but now they will have to go 25 feet away with a 10 or 15-minute break. He said they have been coming to Hot Springs for years, and now the City is going to change the rule on them, which is his concern. Director Jones asked if it is from the main door or any door of the building that is an entrance and exit, and City Attorney Brian Albright advised that it is from any public entrance according to the proposed ordinance. He explained that public entrance shall mean the entrance or doorway to any municipal building facility or enclosed area which is designated for use by the general public. Director Maruthur stated that people who come here year after year will see the signs, and she did not see any problem. A motion was made by Director Daniel, duly seconded by Director Smith, that the ordinance be amended by deleting the following: Aprovided, further, that such use shall Board of Directors Meeting 10 August 7, 2006 at 7:00 p.m. also be prohibited within twenty-five (25) feet of any public entrance to any municipal buildings, facilities or enclosed area.@ Upon discussion, Director Smith questioned where individuals will smoke; and City Manager Kent Myers said it is a matter of an administrative policy for City employees but would not pertain to the general public. Director Weatherford questioned if this was not having two rules; and if there is an ordinance that there is no regulation, how would this enforced. City Attorney Brian Albright stated that the ordinance handles both employees and other visitors or citizens. Within the employee handbook, the City can promulgate whatever rules it needs with regard to employees. He stated if the City Manager wants to issue an administrative directive that employees are not to smoke within 25 feet of the entrance, that is what the employee abides by but would not be binding on any private citizen. He pointed out under State law, there is a provision that prohibits the infiltration of smoke into areas that are protected; and if someone is standing in the doorway, that is infiltrating a protected area anyway. Therefore, they need to move away from the doorway; and in this case, it also involves chewing tobacco, and they would need to discard both of those before entering the building. City Manager Kent Myers pointed out that some local entities have adopted a stricter policy than the City, for example the two hospitals (St. Joseph and National Park) do not allow their employees to smoke anywhere on the hospital grounds. In a former State law, it also applies to the public that dealt with medical facilities. Mayor Bush then called for a vote on the motion to amend the ordinance; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Voting Ano@: Director Maruthur; motion carried. Mayor Bush then called for a vote on the motion to adopt the ordinance, as amended; 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, as amended. NEW BUSINESS 9 Proposed Resolution No. R-06-240 Board of Directors Meeting 11 August 7, 2006 at 7:00 p.m.  A resolution entitled, AA RESOLUTION ADOPTING CERTAIN OPERATIONAL REGULATIONS FOR THE CITY OF HOT SPRINGS COMPOST FACILITY,@ was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Smith, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Utilities Director, reported that staff is recommending that the Board approve the modifications for the compost facility operations by limiting the disposal of brush, yard waste and tree trimmings at the facility to Hot Springs citizens only and prohibiting the disposal of this material from commercial haulers, landscapers and tree trimmers. This past year, the facility received 43,000 cubic yards of brush, yard waste and tree trimmings from homeowners, commercial haulers, landscapers and commercial tree trimmers at no cost for disposal of these services. In addition to receiving that material, the City has to grind that material to be used in the compost process and has spent over $140,000 for the grinding of that material. He commented the City is currently receiving more of this material than it can actually process in a year=s time. As a result of being overstocked, there have been several fires over the past few months. In reply to Director Edwards, Mr. Cochran advised there is a fire hydrant at the facility now. Director Maruthur said she has received several calls regarding this resolution and recommended that it be further reviewed. She mentioned that people will be carded, will need to have a water bill and a picture ID. Mr. Cochran advised they will be required to have some proof of their residency in Hot Springs. Director Maruthur expressed concern with people who live in the County and own homes in the City, but they will not be able to bring items to the compost area because they live in the County. Also, she suggested revisiting the commercial haulers. Mr. Cochran said he is referring to the commercial landscapers and tree trimmers. As far as people who may own rental property in the City, he stated they are still receiving yard waste and tree trimmings that the Sanitation Department picks up. He explained if there is a rental home, they can still set tree trimmings or bags of leaves in front of their home, and the Sanitation Department can still pick them up. Director Maruthur questioned if that is limited to a certain amount of pickups a year, and Mr. Cochran advised that they come by on a regular basis. He added if they have a Board of Directors Meeting 12 August 7, 2006 at 7:00 p.m. special need and have more material, then they are charged for that service; but they come by on a monthly basis. Director Maruthur questioned commercial haulers who are not really defined in the resolution; and City Manager Kent Myers advised that when this was discussed at the work session, those businesses have business licenses, from which staff gathers that information. He stated approximately 20 of them have already been notified. Director Maruthur said she received several phone calls and was unable to answer some of the concerns and believes it should be specifically defined. Mr. Cochran commented that the commercial haulers still have the opportunity to go to the county landfill and dispose of material there, and Director Maruthur pointed out that would cost money. Mr. Cochran advised that it costs the City money, and the City is not charging the commercial haulers. Therefore, the City is paying for it and subsidizing the commercial haulers. Director Maruthur said the Board has not discussed this at length; and many of the Board Members were surprised that it was open on Sundays. She questioned why the size of the vehicle could not be limited, which would eliminate the people who are clearing off the land and then bringing compost back. She recommended that this be discussed at another work session. Mr. Cochran said if the City continues the current operation and continues to be overstocked, it will have to load that material in a truck, haul it off to another facility, and pay for the disposal. He pointed out this places a burden on the Fire Department having to come to the site and distinguish fires because of spontaneous combustion. He stated that either the City limits what it is taking out there, or the City=s expenses are going to increase as a result of taking this material elsewhere. Director Maruthur pointed out her concern is how it is limited and recommended that this resolution be tabled and discussed at the next work session. Mayor Bush pointed out that Mr. Cochran and his staff are aware of what is happening at the compost facility. A motion was made by Director Maruthur that the resolution be tabled until the next work session to make sure commercial haulers are defined. She said there are a few businesses that use the compost area, such as Oaklawn. Board of Directors Meeting 13 August 7, 2006 at 7:00 p.m.  Upon discussion, Mr. Cochran explained that Oaklawn would not be a commercial landscaper or tree trimmer. He noted the material they bring out (horse track straw) is not ground. Director Maruthur stated she would like to see it defined in the resolution so that everything is done correctly. Director Smith asked if the commercial haulers are the single, largest amount of business that is putting them over capacity, and Mr. Cochran advised that it is a large amount of it because they bring it in by the trailer loads, as well as large trees they have cut down. Director Smith asked if he felt comfortable that he can identify commercial haulers the way it is written, and Mr. Cochran replied that he can. Director Smith read the following e-mail he received: AI own property in the City and try to clean the debris and trash. I pay City solid waste fees, sewer fees, and water fees both in and out of the City, yet I will be discriminated because my driver=s license is in the County.@ Director Smith said that this individual is referring to rental property that he owns in the City and asked how he would respond to that situation. Mr. Cochran replied that the Sanitation operation picks up that debris, whether it is bags of leaves or they have done some tree trimming and cut it to certain lengths and pile it in the front yard. He said the Sanitation Department comes by once a month and picks it up at no charge to the customer. Director Edwards commented that he has visited the site several times recently, and the operation is going well. Mayor Bush called for a second to Director Maruthur=s motion to table until the next work session. There being no second, the motion died for lack of a second. Mayor Bush then called for a vote on the motion to adopt the resolution; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Voting Ano@: Director Maruthur; motion carried. Whereupon the resolution was declared adopted. 21 Special Public Safety Report Regarding Removal of Two Sightseeing Parking Spaces on Exchange Street and Install Four 20 Foot Spaces in the Same Location Board of Directors Meeting 14 August 7, 2006 at 7:00 p.m.  A motion was made by Director Jones, duly seconded by Director Daniel, that the removal of two sightseeing parking spaces on Exchange Street and installation of four 20' spaces in the same location, be approved. Upon discussion, Mr. Don Roberts, #70 Stonegate Shores Drive, stated that a petition was signed by many of the downtown merchants to keep the sightseeing vehicle parking spaces at the present location for the ducks staging area to unload or unload on Exchange Street. He said there were comments regarding a safety issue, noting the width of Central Avenue where the duck parks is 117 inches from the edge of the parking space to the white line; but Exchange Street is 153 inches, which is three feet wider between the parking space and the edge. Also, there is a speed bump by the parking deck, which is effective in slowing the traffic. He mentioned there is minimal traffic on Exchange Street but a large amount on Central, and unloading on Exchange Street seems to be a safer place and lessens the traffic on Central by removing the sightseeing vehicles from the congestion that is caused by the Abottleneck@ from Prospect to Ouachita. He commented if they can only load or unload on Central Avenue, they are going to be shuffling ducks through that district more than they are now because of the two-duck rule. He was told this was recommended by the Police Department, and he spoke with Police Chief Gary Ashcraft, who said he can deal with as it is presently and recently he spoke with Lt. Bill Cooley, who said he has no problem with it. However, he wanted a clarification. He pointed out there have not been any accidents on Exchange Street with a vehicle hitting a duck or a pedestrian being hit; but on Central Avenue, motorists are constantly knocking off mirrors. He said he had three mirrors knocked off his ducks this year and had two mirrors knocked off his personal vehicle. Also, he has witnessed vehicles being sideswiped on Central Avenue. Mr. Roberts distributed a copy of a petition from everyone who signed downtown and copies of pictures showing Director Daniel advertising for a gentleman and a copy of his flier. He stated it is his understanding if there is a relative involved, a Director should abstain from voting on an issue that is before the Board. He then distributed pictures of violations. Mr. Stacy Roberts, 12 Stonegate Court, stated that Director Daniel=s relative, Scott Bales is part owner of the Ducks of Hot Springs; and when he received his permit, there was a stipulation through Transportation Advisory Committee that he would not get a parking space but would use his parking lot. He said the Board voted to give Mr. Bales a parking space, but it took him years to get this approved; and he had to have signatures from every merchant on each side. He said he spoke with Lt. Cooley today, who stated he had no problem with them loading and unloading on Exchange Street. He stated this Board of Directors Meeting 15 August 7, 2006 at 7:00 p.m. is going to move the ducks out of downtown, and the downtown merchants do not want that. He commented that patrons have been sitting at Central and Grand for 30 minutes in high temperatures because they cannot have but two ducks in the district. He stated Director Daniel has a relationship with one of their competitors and spoke of a $4 duck ride sign. Also, there were two other stores that hung those $4 duck rides -- at the new convenience store and at Granny=s Kitchen for two hours; but the owner took it down immediately. He stated the downtown merchants want the ducks downtown, and this will move people out of downtown. However, next year will be different. He said that he is printing brochures and doing a combo ticket for $12 where people can do all three of his attractions. He asked that the two spaces on Exchange be allowed to load and unload with no stipulations and no ticket sales. Director Jones said when she attended RibFest at the Exchange Street Parking Plaza, there was no way to get a duck through thousands of people. Mr. Roberts stated when there are special events, they cannot use Exchange Street. Director Maruthur asked if he was requesting to use Exchange Street for special events, and Mr. Roberts said that he was not. She asked what downtown merchants did not sign the petition, and Mr. Roberts replied that Director Daniel=s businesses, which he did not go into, and the Toy Chest, which was not open at the time he was there. Director Maruthur asked if Director Daniel was related to the other duck operator, and Director Daniel replied that he was not. Mr. Roberts commented that Director Daniel=s stepdaughter is married to Scott Bales= brother, who is part owner of the duck. Director Daniel stressed that he is not related to the duck owner. He stated his stepdaughter is married Brian Bales, and his brother works for the company; but he is not aware that he is an owner in it. Also, he does not consider himself related to anyone in the duck company. As far as a sign in his window, at the same time they asked him to put a sign in his window, the Roberts family was going up and down the street putting blue and yellow signs all over Central Avenue and in windows and their ducks. He noted that the property on the corner of Prospect and Central belongs to Director Maruthur, and there is a blue sign in the window that says $4. Regarding code violations and pictures taken in front of his store, he said this was taken before everything was taken off the sidewalks; but they do not have any recent pictures because there has not been any recent sidewalk sales. He pointed out the people who do business with Mr. Roberts are tourists and are upset that they got conned when trying to buy a $4 duck ticket and are told there is no $4 Board of Directors Meeting 16 August 7, 2006 at 7:00 p.m. duck ticket unless they buy a package deal. He mentioned that Mr. Roberts said everyone who signed this petition were business owners downtown. However, there are several names of employees who do not own businesses and also names of people who said they had signed the petition to get their duck company put on Central Avenue in front of the Nut Cellar with the understanding they would load and unload there. He said to his knowledge, they say they have not been loading or unloading up there this year and are doing it on the other end and using behind the building on Exchange Street. He mentioned these people have said they are ruining their business and question what they can do to get the ducks off the street. He said he does not want the ducks off the street; but if the street is that narrow to continue getting mirrors knocked off and not safe to load and unload, then they need to go to the Transportation Plaza, which was designed originally for that. Also, he understood they were entitled to have two ducks in the district, and he would assume the two ducks in the district mean the ducks had to be running. He asked Mr. Don Roberts if the duck in the parking lot that Mr. Wheatley owns next to the Candlelight Galleria, is considered one of his two ducks, and Mr. Roberts said that it was. He added that it is not his but is owned by Ducks in the Park. Mr. Stacy Roberts said that is his duck, licensed by the State of Arkansas, inspected by the City of Hot Springs, and is in full compliance with all requirements that the City has as a rescue vessel. Director Daniel asked if it is approved by the Coast Guard, and Mr. Roberts stated that it is approved by the City as an operational vehicle and as a rescue vehicle. Director Daniel asked if it is not exactly what would be off-premise advertising or billboard, and Mr. Roberts replied that duck is permitted (Ducks in the Park), which the Board approved a month ago. He said there have been different inspectors come down, stating that he and Director Weatherford have questioned its running. With Lt. Cooley present, they had to move the duck. He stated the duck has seats, moves, is insured, and inspected by the Police Department staff. He said he does not have a requirement on his since he has multiple ducks for it to be Coast Guard-approved. At this point, it is not but soon will be Coast Guard-approved. Director Daniel stated that it did not have the seats in it and was not licensed and was not insured before when he put seats in, got it tagged and brought it back. Mr. Roberts said when he got his permits, he had everything running, inspectible, and has seats. He added it was Mr. Bridges= duck and was permitted through the Coast Guard years ago. however, someone cut the prop off. He said he did not know where the prop Board of Directors Meeting 17 August 7, 2006 at 7:00 p.m. is but from what he understands, it is still running in Hot Springs. He commented that the props are not on one of his ducks. Director Maruthur said she was not aware of what was in the window of a business that rents from her, and that is whoever rents the store. She stated she does not have a problem with the two ducks being parked on Exchange Street but is concerned with a business that could be jeopardized because they have to spend 30 or 45 minutes in traffic with tourists due to the Abottleneck.@ Also, she expressed concern with emergency vehicles. She said that she had suggested the use of the Transportation Plaza sometime ago but did not receive a second. She commented that she drives down Exchange Street everyday to avoid the Abottleneck@; and most of the time, she is not aware the ducks are there. She said her concern is to keep the businesses in business; and if there is no problem, she questioned why the Board was considering this issue. Director Weatherford questioned the use of the two parking spaces on Exchange, and Director Smith replied that it was for a staging area for the ducks and other transportation vehicles. Director Weatherford asked if loading and unloading was part of that, and Director Smith replied that it probably was not. Director Weatherford asked if staging area means loading and unloading or is it parking a vehicle waiting for it to get in line. City Attorney Brian Albright said he has not reviewed the ordinance but doubts if there is a definition of staging. Deputy City Manager Lance Hudnell advised this was a recommendation that came some years ago, and what was actually adopted by the Board just states to establish new sightseeing or mini bus van parking space permit required. He added there was discussion on the street about whether they would load or unload. He commented that he recalls the City should not allow loading there but possibly unloading because it was going to be close to the new parking deck and people may be parked in the parking deck and would be ridiculous to make them walk around the block to come back to where they were. As it was adopted. it did not specify either one. If that was the Board=s desire, it might be in order at this time, if it was the desire to leave them there, to specify that they not be allowed to load or unload or to now specify that they be allowed to unload but not load. Director Maruthur said that she passes by this area everyday and does not have a problem with it, and she does not want to see a business hurt and will vote against it. Board of Directors Meeting 18 August 7, 2006 at 7:00 p.m.  Mr. Don Roberts spoke in reference to comments by Deputy City Manager Lance Hudnell stating that on the day of the meeting by the parking deck, he, Cindy Anderson, and Deputy City Manager Lance Hudnell discussed the loading and unloading. It was his and Cindy Anderson=s understanding that at that point, they could load or unload there; and they had done this when they were in the angle parking, as well as straight parking in the old parking lot. Director Jones asked when they unload, if the tourists have to walk back to where their cars are parked; and Mr. Roberts said they do. However, some of them go to the stores downtown. He added that most of their people are coming from the parking deck. Director Weatherford made a motion, duly seconded by Director Daniel, to amend the Special Public Safety Report as follows: Aleave the two parking spaces but no loading and unloading.@ Upon discussion, Director Maruthur pointed out they are going to have to drive around and increase the congestion trying to get people to load. Director Weatherford said they are not supposed to be loading there anyway. Director Maruthur pointed out there does not seem to be a problem there; and the businesses that are in this area are not complaining about it. She questioned why the Board is doing this if there is no problem on Exchange. Director Daniel said in his opinion there is a problem on Exchange pointing out they have two parking spaces on Central Avenue. He stated there are signatures on the petition that he recognizes and knows they did not really understand the situation because they thought maybe the ducks were going to be off the street. He added there were people who signed the petition who have two separate businesses there and told him and others they felt they had been mislead and had signed a petition to get them to have a place to park up in front of the Nut Cellar. However, they are not being able to unload up there. He stated that many of these merchants are Amom@ and Apop@ operations, and when the people get off the ducks, a large percentage go to the parking deck and leave; they do not go downtown and shop. He commented it is taking customers off the street rather than putting them on the street. He questioned if they cannot load and unload in the 400 block of Central, then why have the two ducks on the street since they have parking lots. He said the Roberts Family has a parking lot by the Medical Arts Building; and they can stage there, load and unload, and also have a parking lot next to the Candlelight Galleria. He commented if there is a problem with them on the Board of Directors Meeting 19 August 7, 2006 at 7:00 p.m. street, then take them off the street and leave them parked back behind and let them use their parking lots. Director Maruthur stressed they have expressed that it is going to hurt their business if they cannot load and unload on Exchange Street. Therefore, she is going to vote against changing what is in place. Director Daniel said that it hurts his business when he cannot set items out on the sidewalk. He stated he has a large alcove, but many businesses do not have one; and the City forbids them from setting or hanging items out in front of their stores. Director Weatherford pointed out that Director Maruthur had said taking the two spaces on Exchange would hurt their business but had suggested that they move to the Transportation Depot and questioned if that would not hurt their business. Director Maruthur replied that she made a recommendation years ago and thought the City purchased the Transportation Depot for a transportation hub, but what she is hearing tonight is a business that is going to get hurt because there is traffic flow problem on Central Avenue. She said if the Board approves removing these two spaces on Exchange, they are going to be negatively impacted by this change, and she is opposed to it. Director Daniel commented that the Abottleneck@ is not the problem because they are going to still sit the same amount of time in traffic regardless of where they park their duck. Mayor Bush then called for a vote on the motion to amend; and upon roll call, the following voted Aaye@: Directors Jones, Weatherford, Daniel, and Bush, total 4. Voting Ano@: Directors Maruthur, Edwards, and Smith total 3; motion carried. Mayor Bush then called for a vote on the motion to approve the Special Public Safety Report, as amended; and upon roll call the following voted Aaye@: Directors Jones, Weatherford, Daniel, and Bush, total 4. Voting Ano@: Directors Maruthur, Edwards, and Smith total 3; motion carried. 22 Claim from Ms. Violet Shirley Regarding Damages from Vehicle Resulting from Pot Hole on Spring Street in the Amount of $479 Board of Directors Meeting 20 August 7, 2006 at 7:00 p.m.  A motion was made by Director Jones, duly seconded by Director Maruthur, that the claim of Ms. Violet Shirley, in the amount of $479, be approved. Upon discussion, Ms. Violet Shirley, 104 China Berry Circle, said her claim is for $479 and explained she was driving on Spring Street and has an inclination to drive to the right of the road but not off the road. She said the letter sent to her by the City denying her claim said the pothole was off the edge of the road. She reported that she took her car to Stroope Tire; and when they took off the wheels, the metal wheels were bent so badly they could not be repaired. Also, there were large bumps over the front and back tires, and she had to get new wheels and tires. She distributed pictures to the Board of the potholes since they had been filled in. Public Works Director Steve Mallett advised that it has not been the City=s policy in the past to pay claims based on damage done to a vehicle by hitting a pothole. He commented it was off the side of the road, and the City filled it in. He advised it has been there three months since Ms. Shirley hit it, but no one else has reported any damage. He said that he is not arguing that it did cause damage to Ms. Jones= vehicle. Mayor Bush then called for a vote on the motion to approve the claim; and upon roll call, the following voted Aaye@: Directors Edwards and Maruthur, total 2. Voting Ano@: Directors Jones, Smith, Weatherford, Daniel and Bush, total 5; motion failed to approve the claim. 23 Proposed Resolution No. R-06-250 A resolution entitled, AA RESOLUTION APPROVING A CONDITIONAL USE PERMIT FOR HOME OCCUPATION AT 606 TRIVISTA LEFT (VOLLAND PRODUCTIONS),@ 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, Mr. Volland, 606 Trivista Left, stated that he recently had a No Contact Order against Mr. Capshaw, the appellant. He said that he starts the trucks seven or eight times a day; and since he has had the truck (about five months), he has taken it out three times. He noted that he starts it; but if it sets for more then three weeks, he will start it and let it run for five minutes. He stated Mr. Capshaw=s other complaint was the smoke going into his house from starting the truck. He explained where the truck is parked, it is approximately two feet above Mr. Capshaw=s roof line across the street, up Board of Directors Meeting 21 August 7, 2006 at 7:00 p.m. an embankment, and then across a tennis court on the other side of the tennis court. He explained he took out a Restraining Order on Mr. Capshaw, and then he appealed this. City Manager Kent Myers advised that Mr. Volland was approved for the home occupation permit; and Mr. Billy Capshaw, a neighbor, appealed it. He noted that Mr. Capshaw, the appellant, was not present. City Attorney Brian Albright asked if Mr. Capshaw was not present due to the No Contact Order, and Director Smith pointed out that Mr. Volland has a Temporary Restraining Order against Mr. Capshaw, which may be the reason he is not present. Director Jones asked if Mr. Volland has appeared before the Planning Commission on this issue, and Deputy City Manager Lance Hudnell replied that he has; and it has been approved. He noted Mr. Capshaw did not get notified due to an error in the County records with regard to parcel numbers. He was not aware of this until after it occurred, and that is why he appealed to have a forum before the Board. Mr. Volland mentioned that he did know about it because he had talked with him regarding this issue prior to filing the Restraining Order. City Manager Kent Myers commented that the City was never notified by Mr. Capshaw that he would not be here tonight. 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. 24 Proposed Resolution No. R-06-251 A resolution entitled, AA RESOLUTION ACKNOWLEDGING THE REVIEW OF THE 2005 COMPREHENSIVE ANNUAL FINANCIAL (AUDIT) REPORT,@ 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. Finance Director Dorethea Yates announced that Mr. Gary Welch and his staff, with Jordan, Woosley, Crone and Keaton, are present to make a presentation of the City=s Board of Directors Meeting 22 August 7, 2006 at 7:00 p.m. 2005 audit financial results, which are presented in the form of a 149-page Comprehensive Annual Financial Report (CAFR). She recognized Ms. Laury Fiorello, Finance Department, who played a key role in the preparation of CAFR. Mr. Gary Welch, with Jordan, Woosley, Crone and Keaton, recognized member of his staff, Phyllis Trent, CPA, and Christina Ellis. He presented an overview of the 2005 Comprehensive Annual Financial Report stating the most important contribution is their Statement of Opinion and results of the audit. This states they conducted an audit of all of the funds of the City, and these financial statements are accurate and fairly presented in all material respects and that the financial report is prepared in conformity with generally accepted accounting principles. He reported that the net assets of the City increased $21 million in 2005, and the infrastructure accounted for $18 million of that increase in total net assets. The City reduced its debt in 2005 by $8 million, which comes primarily from regular principal reduction and the calling of the Civic Center Bonds in the amount of $32 million. The total assets have grown to $275 million. The total liabilities dropped from $61 million to $53 million, and the net assets grew primarily because of the infrastructure from $200 million to $222 million. The emphasis in all city reporting has gone to the expense side or how much does it cost to run the city. The $62 million is the total governmental and total business type. The business type is the water and wastewater, sanitation, airport and parking. Everything else falls into the governmental activities, and the governmental activities lost $332,000. The recording of the infrastructure also requires the depreciation of the infrastructure. Unlike in 2004, another $3.2 million worth of depreciation was recorded in the governmental General Fund and the related special revenue fund. The business type activities had a $3.4 million net revenue, and overall the City had a positive $3.1 million net revenue. In the governmental side, the general Police and Fire funds had a positive budget result of the net of all governmental activities ($536,000). It is primarily from the spending in the General and the Police Funds where they spent less than they anticipated. The budget of the funds mentioned previously had primarily all positive results which was a combination of more revenue being produced than anticipated and less expenses being incurred than anticipated by the budget. The one large negative is the Airport. Their budget is driven principally by the federal grant activity and construction, such as runways; and if they do not complete those projects as they anticipated at the beginning of the year, they did not collect that heavy revenue for that activity. Regarding the federal and state monies that the City received, $4.1 million is the total receipts for the year; and this came for Entergy Park, the development grants, the Airport and other projects. Regarding the financial highlights and two-year comparisons, governmental revenues increased over $3 million. The expenses increased $6 million, but that is where the City gets the infrastructure additional 2005 depreciation. In the activities of the business type, revenues increased Board of Directors Meeting 23 August 7, 2006 at 7:00 p.m. $4.7 million; expenses increased $3.6 million; and overall $1 million increase in net revenue. The governmental assets increased up to $275 million; total assets and liabilities decreased. The General Fund is a good measure of the ready assets or the short-term liability coverage that is available in the General Fund unrestricted. It grew a little over $3.3 million. and that is a coverage of five months of general expenditures and 2.2 months of general expenditures and transfers. That is similar to 2004. Director Smith questioned the Airport Fund pointing out that Mr. Welch had made the statement that a large amount of the grant money had not been utilized in 2005, and Mr. Welch replied that was correct. He explained it was budgeted in 2005 but did not get realized as far as the construction and grant receipts. There be no further questions, 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. 25 Proposed Resolution No. R-06-252 A resolution entitled, AA RESOLUTION AUTHORIZING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER SERVICE TO ARKANSAS STATE POLICE TROOP K HEADQUARTERS ON PIPER LANE AND INSTALLATION OF TWO FIRE HYDRANTS,@ 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, Mr. Don Cochran, Utilities Director, advised that a request has been received from Mr. Rico Harris, with French Harris Architects, to extend an eight-inch water main and install two fire hydrants for their clients, Arkansas State Police Headquarters, Troop K. Staff recommends approving the extension of the water line contingent upon the developer paying for the cost of the extension, which is stipulated in the resolution. Mr. Harris has requested that the City fund installing this water line. 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. Board of Directors Meeting 24 August 7, 2006 at 7:00 p.m. 26 Proposed Resolution No. R-06-253 A resolution entitled, AA RESOLUTION APPROVING AN APPLICATION FOR A TEMPORARY EMERGENCY DWELLING UNIT AT 103 ASHLAND STREET,@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Edwards, that the resolution be adopted as read. Upon discussion, Mr. Rance Rynders, 103 Ashland, said he had a fire in January 2005 and is now getting back to work but not full-time and needs an extension. Mayor Bush asked much time he needed, and Mr. Rynders said he needed five years. Mayor Bush asked the time for his extension, and Deputy City Manager Lance Hudnell advised that the ordinance allows for a six-month application. They can then apply for an additional extension after that. He noted that Mr. Rynders= extension expired sometime ago, and it came to staff=s attention that this facility still existed. City Attorney Brian Albright advised that the resolution stipulates that the extension is until February 7, 2007. Director Edwards asked if Mr. Rynders is presently working on it, and Mr. Rynders replied that right now he is gathering building materials and has the old property torn down. Director Edwards asked when he plans to start, and Mr. Rynders stated when he has the money. Director Smith asked that Mr. Bart Jones, Rehab Administrator, give his opinion. Mr. Jones, stated that Mr. Rynders moved a temporary structure in there about 12 years ago, and it should have come out six months after it went in. He pointed out the ordinance was originally written for people who have a burn out, etc. and can move a structure in there and live in that structure while they are building a house. At the present time, the Code Compliance does not have a permit pulled for this location, and there is no construction activity. He added that the City has received several complaints from the neighbors. Director Maruthur said she received a call from some of the neighbors, and there are some neighbors present; but they do not want to speak. However, they told her this condition has been going on for years; and this is unacceptable. Board of Directors Meeting 25 August 7, 2006 at 7:00 p.m.  Mayor Bush questioned what would happen if the Board denies the resolution, and Mr. Jones advised that the City will notify Mr. Rynders in writing and give him a reasonable amount of time, such as 30 days. He pointed out he can move into a park. City Attorney Brian Albright asked if Mr. Jones could still enforce the Premise Code should the resolution pass and the extension be granted, and Mr. Jones replied that he could. Mr. Rynders mentioned he has made improvements to the property, and it looks pleasing from the road. Director Maruthur stressed it is terrible when driving by it. She said he is asking for an emergency dwelling, but he has been living like this for years. Therefore, she requested that the Board not grant this temporary dwelling. Director Edwards asked if City staff would be able to see a great deal of difference if they go to his property in six months, and Mr. Rynders said they would. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Edwards and Weatherford, total 2. Voting Ano@: Directors Maruthur, Jones, Smith, Daniel, and Bush, total 5; motion failed. Whereupon the resolution was declared failed. 27 Proposed Resolution No. R-06-254 A resolution entitled, AA RESOLUTION AUTHORIZING REVISIONS TO THE 2006 BUDGET,@ was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Smith, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers stated that at the Board Work session last week, the Board discussed a number of adjustments that staff had recommended and were intended to bring the budget more in line with actual revenues and expenses to-date. Several corrections are needed following that meeting to the Sanitation Fund, which will result in an increase in the fund balance for the Sanitation Fund. In addition to the budget adjustments, the Board agreed to add several additional expenses to the mid-year budget, which are listed on the attached report from the Finance Department. This report includes both the impact to the current 2006 budget, as well as the impact expected to next year=s budget. He reported the CDBG position is not on this list because there is sufficient Board of Directors Meeting 26 August 7, 2006 at 7:00 p.m. funding in the CDBG grant to cover that position if the Board wants to proceed with that position. The total cost impact to the 2006 budget, as a result of the changes recommended by the Board, will be $214,955. The total increase in expenses next year with these amendments will be $338,222, and the primary reason for that is the positions being added tonight will have to be covered for 12 months next year. The impact to the other funds is shown including the allocation of the $45,500 for the Finance Office remodeling and have to apply that to all the different funds and are proposing to apply that over three years with a total of $14,500 per year. For the adjustments made to the budget, these additional costs can be absorbed and should still retain a General Fund balance of about $3 million by the end of this year. However, staff is most concerned with is the development of the 2007 budget, which as these changes stand, will require some difficult decisions from the Board regarding new taxes and fees, salary increases, and employee staffing. Mayor Bush asked if Finance Director Dorethea Yates anticipated any problems meeting the $338,222 increase for 2007, and she replied that she has concerns that the development of the 2007 budget will be a major challenge. She added that the main revenues for the General Fund are sales taxes; and if the City budgets a five percent sales tax increase, that would generate an extra $500,000 for use in the development of the 2007 budget. There are a number of issues, such as the City will not be receiving as much funding for the Intracity Transit, and there are issues in the Fire Fund. Director Maruthur questioned the CDBG Administrative Assistant, pointing out since the Board Work Session, there is an employee who will be leaving which means the City has to fill another position in the CDBG Department. She commented the inspector who was there was working in excess of 40 hours per week and will be leaving; therefore, the Board needs to find some funds for the new person and increase the salary. Also, she wanted to make sure there is an administrative assistant who can help CDBG Administrator Nelson Self. She stressed that she wants to make sure this is in the budget. Deputy City Manager Lance Hudnell explained there is $6,300 in reserve in the current CDBG=s allocation. He stated this was going to be allocated to the administrative assistant position for the rest of this year and then worked into the budget in the Board=s program of projects for next year. With regard to the vacant position, he advised it is already in the budget; therefore, that position will be filled at its current classification. Should there be a desire to reclassify that, then there is a procedure through the Job Audit Committee that establishes the salaries for each of the positions. If there is a desire to do that, City Manager Kent Myers requests in August for the various department heads to submit their requests for reclassifications. Should that be a desire of Mr. Self or the new Board of Directors Meeting 27 August 7, 2006 at 7:00 p.m. Planning Director to seek reclassification of that position, it would go through that reclassification process and be considered along with all the other requests for reclassification. Director Maruthur said that is why she is making this request at this time because there was a job audit and apparently that was missed. Deputy City Manager Lance Hudnell replied that it was considered the same as other positions. At that time, it was considered to be the same level as some other positions, and those positions were considered in that process. He said should it be desired to be reviewed again, that can happen through the process that the City Manager will open up in August. Director Maruthur commented there is a large turnover because of the number of hours that these people have to work. Deputy City Manager Lance Hudnell explained that this position was not working overtime because of that but was working overtime because of an outside job. City Manager Kent Myers said when he first heard the employee was leaving, he set up a meeting with him to persuade him to stay. However, during the course of the meeting, he never brought up the issue of working more than 40 hours per week. If he did, he would qualify for overtime but never filed for overtime expenses. Also, he did not indicate that salary was the primary reason for leaving. He had his own business, and the obligation of that business had increased to where he needed to devote full-time attention to that outside job, which was his primary reason for leaving. Director Maruthur stated that she spoke to him at 4 p.m. today. She noted that Mr. Nelson Self has received an award from HUD and wanted to receive some input from him. She said for some reason, he is not being included in many things related to CDBG. She questioned if there was an administrative assistant to help with the paperwork, if that would free up some of his time to find new monies and do his job with less hours, thereby providing the City with more resources and expanding the program to provide CDBG funding and other sources of funding for the redevelopment of the older neighborhoods in all of the districts. Mr. Self replied that he would. He commented there are several development opportunities that are above and beyond CDBG and will be huge for the Park Avenue neighborhood and Pleasant Street and hopefully other districts. Director Maruthur said that he is being asked to do more because there are many applicants, and there is an opportunity to expand his staff support so he can provide more monies for the City. She said that she wanted it documented this is true along with the award he received from HUD. Board of Directors Meeting 28 August 7, 2006 at 7:00 p.m.  Mr. Self commented it will offer more time to work on other program, such as the HOME Program, the Affordable Housing Program through the Federal Home Loan Bank system, and to work with City Manager Kent Myers and Deputy City Manager Lance Hudnell on some of the elderly housing and disabled housing opportunities. In reply to Director Maruthur, Mr. Self stated that he received an award through the Arkansas Community Development Association, and the City of Hot Springs and Pine Bluff were given an award by the Field Office Director of HUD as having an exemplary program. Director Smith asked if the money is already in the budget for the full-time position where the employee is leaving, and Deputy City Manager Lance Hudnell replied that it is in the CDBG budget. Director Smith asked if the Administrative Assistant in included in the grant funded program, and Deputy City Manager Lance Hudnell advised that currently there is $6,300 of unobligated money in the current CDBG budget. The administrative funds are 80-20, and twenty percent can be spent for administration. In that 20 percent, there is currently $6,300 that is being held in reserve; and this will be applied to the new clerical position which will free up Mr. Nelson to make better use of his time. In the 2007 budget, it will be to the Board=s discretion to decide whether to fund that for a whole year. He said the Board may have to supplement some of it out of General Fund in 2007, but can handle it for this year with that $6,300, which is about ten weeks= worth out of this year. City Manager Kent Myers pointed out that the more that is spent on staff, the less there is for housing rehabilitation and other activities. He pointed out by spending the $6,300 tonight, that is $6,300 less for housing rehab and other activities. He explained that he is not arguing against the position but wants to make the Board aware that could decrease some of the CDBG activities. Director Jones asked if it would be better to use the $6,300, whereby Mr. Self would have more time in securing additional funds, and Mr. Nelson said it would free him up at certain times. Director Maruthur said that she wanted to be sure the $6,300 is not going to negatively impact Mr. Self=s ability in performing his duties because he is doing an outstanding job. She reported that she receives positive letters regarding Mr. Self and the CDBG program and wants to make sure there is enough money available. Deputy City Manager Lance Hudnell said he understands that Director Maruthur is wanting to be sure the $6,300 is not needed for some other purpose, and Director Board of Directors Meeting 29 August 7, 2006 at 7:00 p.m. Maruthur said that is what she is asking and wanted to know if it can be taken from Board Reserve. Deputy City Manager Lance Hudnell explained that the Board can take this out of Board Reserve, but that is not necessary. He added there is $6,300 in reserve in the CDBG Fund that can be used for this purpose. He said in reviewing the budget with Mr. Self, they do not believe the money is needed for any other purpose for the rest of the year. However, 2007 may be a challenge. If the Board wants to take it out of General Fund, it can; but it is not necessary because there is money in the CDBG Fund to cover a salary for a secretary at a 6A level for ten weeks in 2006. Director Weatherford pointed out that the Board is not voting on anything to do with CDBG tonight unless it wants to take it out of General Fund, which is not necessary. Director Maruthur mentioned that she has a page from Finance Director Dorethea Yates regarding an additional employee (administrative assistant) for Mr. Self. Director Weatherford commented that it is not included, and Director Maruthur responded that it needs to be there. Deputy City Manager Lance Hudnell explained that it does not need to be included because it is not coming out of this General Fund or any other budget but out of a grant fund. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Voting Ano@: Director Maruthur; motion carried Whereupon the resolution was declared adopted. 28 Proposed Ordinance No. O-06-63 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PURCHASE OF CERTAIN REAL PROPERTY (BEVERLY HILLS SUBDIVISION) FOR BEVERLY HILLS WASTEWATER LIFT STATION IMPROVEMENTS,@ 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 Board of Directors Meeting 30 August 7, 2006 at 7:00 p.m. upon motion of Director Daniel, duly seconded by Director Weatherford, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Director Jones was out of the Board Chambers and did not cast a vote; motion carried. Whereupon the ordinance was declared passed. 29 Proposed Ordinance No. O-06-64 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE EXCHANGE OF CERTAIN REAL PROPERTY LOCATED ON SOUTH ROGERS ROAD (BILLY AND MARTHA JONES) FOR SOUTH ROGERS ROAD WASTEWATER PUMP STATION; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Smith, 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 Weatherford, duly seconded by Director Smith, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Director Jones was out of the Board Chambers and did not cast a vote; motion carried. Whereupon the ordinance was declared passed. 30 Proposed Ordinance No. O-06-65 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PROCUREMENT OF A 600 HP PUMP MOTOR FOR OUACHITA WATER TREATMENT PLANT; CERTIFYING EMERGENCY ACTIONS BY THE CITY MANAGER; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Daniel, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the Board of Directors Meeting 31 August 7, 2006 at 7:00 p.m. first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Director Jones was out of the Board Chambers and did not cast a vote; motion carried. Whereupon the ordinance was declared passed. 31 Proposed Ordinance No. O-06-66 An ordinance entitled, AAN ORDINANCE NAMING AND ACCEPTING CERTAIN ALLEYS AS PUBLIC ALLEYS; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Daniel, 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 Weatherford, duly seconded by Director Smith, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Director Jones was out of the Board Chambers and did not cast a vote; motion carried. Whereupon the ordinance was declared passed. 32 Proposed Ordinance No. O-06-67 An ordinance entitled, AAN ORDINANCE DECLARING THE PROVISIONS OF THE SHIELDED OUTDOOR LIGHTING ACT (A.C.A. '8-14-101) TO BE COST-PROHIBITIVE AND EXEMPTING THE CITY THEREFROM,@ was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Daniel, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Maruthur, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. Board of Directors Meeting 32 August 7, 2006 at 7:00 p.m. 33 Out-of-State Travel to Hanamaki, Japan, for Directors Smith, Weatherford, and Daniel; and NLC Conference in Reno, Nevada, for Directors Jones, Smith, Weatherford, and Daniel A motion was made by Director Daniel, duly seconded by Director Weatherford, that the out-of-state travel to Hanamaki, Japan, and Reno, Nevada, be approved. Upon discussion, Director Daniel said that he will have to withdraw his name since he will not be able to go to Hanamaki, Japan. Director Edwards questioned if these are two different times during the year, and Director Daniel stated that Hanamaki is in September, and Reno is in December. Director Edwards asked if the Directors can still go to Hanamaki if they were there several months ago, and City Manager Kent Myers advised that is left to the Board=s discretion. He pointed out the Board Travel Policy sets out any Board Members traveling out of state are required to come before the Board and vote to consider either approval or disapproval. Director Maruthur stated that because of the job audit, the City had to bring up salaries; and there are budgetary problems. She said the City is trying to add more people to critically needed positions, and she believes the Board should consider a moratorium on board travel unless it is necessary. Also, there is a problem with employees gathering vacation time and now they will not be able to carry it over without a memo. She said some employees have expressed concern to her. City Manager Kent Myers explained there is a city policy where employees can carry over 160 hours, which has been in place for at least ten years. Director Jones commented that Human Resources Director Minnie Lenox has 400 vacation hours, and Public Information Officer Terry Payne has 300 vacation hours. She asked if they can take all of their vacation time except for 160 hours, and City Manager Kent Myers stated they have to clear out their vacation time by the end of the year, or they will lose it. He noted they have been aware of that for the last five or six months. Director Maruthur stressed that in the future, the Board needs to take a look at the Board travel because the City is filling critical positions. Mayor Bush said that he agreed; and if it gets to a point in 2006 or 2007 where the City is running short, he stated that out-of-state travel is one of the first items that need to be reviewed. Board of Directors Meeting 33 August 7, 2006 at 7:00 p.m.  Director Jones pointed out that the National League of Cities is a very important part of the Board of Directors, and the Directors attend workshops; and that is where she learned about CDBG funds. Mayor Bush then called for a vote on the motion to approve the out-of-state travel; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. OTHER BUSINESS 34 Board of Directors Items Director Jones announced that on Saturday, August 12, at Chattanooga Park, from 12 to 4 there will be the ABack to School Bash@, and the River of Life Church will have theirs from 9 a.m. to 2 p.m. She noted there are many children who will need school supplies, and she has been asked to be part of this activity. Director Maruthur stated there was a mid-year budget meeting on July 31, 2006. At that budget meeting, the Directors did by consensus, since they do not vote at the work session, approved the administrative assistant and also asked Finance Director Dorethea Yates how much was approved for the Kimery Park Master Plan, which was $22,500. Director Maruthur questioned the $214,955, and Mayor Bush stated that in 2006, the Board budgeted $250,000, which was for capital improvements to Kimery Park. Director Maruthur said that it was suggested at that meeting that the City consider purchasing 33 additional acres for recreation. 35 City Manager=s Report City Manager Kent Myers gave the following report: 1. On the Consent Agenda, the Board approved retaining B&F Engineering to provide the engineering design for the next section of the Greenway. This will extend from Grand Avenue to Belding Street (Valley Street Creek Walk). There are various groups trying to raise money for the construction of that section of the Greenway and, hopefully, the funds will be raised on the construction over the next several months. Board of Directors Meeting 34 August 7, 2006 at 7:00 p.m.  2. The Board approved a change in the CDBG allocation for the National Baptist Hotel. Previously, funds had been budgeted to replace the electrical lines out front but discovered that was not an eligible activity through HUD. Therefore, that money was reprogrammed for architectural services on that same building. 3. There were reappointments to the Historic District Commission - Marcia Dobbs-Smith, Ed Tallach and Long Hua Xu. 4. On Tuesday, August 15, there will be an agenda meeting, followed by interviews with Planning Commission applicants and then discussion on the Strategic Plan. 5. This has been an outstanding year for the Farmer=s Market and a lot of credit goes to Ms. Terry Payne, Cynthia Keheley and the farmers. 6. The Business Expo, sponsored by the Chamber of Commerce, will be held on Thursday, August 10, from 10 a.m. to 5 p.m., at the Hot Springs Civic and Convention Center; and the City will have two booths at the Expo. 7. Tomorrow at 8 a.m., there will be a tour of the National Baptist Hotel, conducted by Chief Building Official Mike Scott. 8. Next Monday, there will be a joint meeting of CBID No. 2 and No. 3 starting at 5:15 p.m. 9. At the next Board Meeting on August 21, the new Planning Director, Kathy Sellman, will be present and will begin work on August 24. 33 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 10 p.m., to meet again on Monday, August 21, 2006, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Board of Directors Meeting 35 August 7, 2006 at 7:00 p.m.  Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 36 August 7, 2006 at 7:00 p.m.