Board of Directors

MINUTES BOARD OF DIRECTORS MEETING SEPTEMBER 5, 2006, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Tuesday, September 5, 2006, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Ms. Mary Loye, 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, Bill Edwards, Tom Daniel, and Mike Bush, total 5. Absent: Directors Steve Smith and Carroll Weatherford, total 2. 2 Approval of Agenda A motion was made by Director Daniel, duly seconded by Director Edwards, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of August 21, 2006 Board Meeting A motion was made by Director Edwards, duly seconded by Director Maruthur, that the minutes of the August 21, 2006 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests No guests were present for recognition. CONSENT AGENDA  The Consent Agenda consisted of the following: 5 Public Safety Report (August 23, 2006). 6 Proposed Resolution No. R-06-276 Accepting Certain Bid Awards (a) Property Clearing - Code [annual supply contract awarded to Tru-Cut Lawn Service]; (b) Chlorination - Utilities [reject and rebid]; (c) Pickup - Utilities [awarded to Landers Ford in the amount of $13,938]; and (d) Sale - Five Surplus Sanitation Vehicles - Sanitation [accept sealed bid proposal from Dixie Surplus in the amount of $92,768]. 7 Proposed Resolution No. RB06-277 Awarding a Contract for Engineering Services to McLaughlin Engineering for the Design of the Music Mountain Pump Station and Pipe Line Improvements. 8 Proposed Resolution No. R-06-278 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Autumn Ridge Garden Homes Subdivision. 9 Proposed Resolution No. R-06-279 Approving the Extension of Hot Springs Municipal Water Service to 440 Catherine Park Road (Diamondhead Commercial Center). 10 Proposed Resolution No. R-06-280 Accepting the Donation of Skate Ramps from Mr. Vince Irwin for the Parks and Recreation Department. 11 Proposed Resolution No. R-06-281 Awarding a Contract to Spa Construction Company for Tennis Court Resurfacing at Kimery Park. 12 Proposed Resolution No. R-06-282 Approving a Request from Elite Sporting Events for the Use of the Kimery Park Softball Complex. Board of Directors Meeting 2 September 5, 2006 at 7:00 P.M. 13 Proposed Resolution No. R-06-283 Awarding a Contract to Matrix Imaging Solutions for Utility Bill Printing and Mailing Services. 14 Proposed Resolution No. R-06-284 Adopting a Revised Community Development Block Grant Community Participation Guide and Repealing the Previous Edition. 15 Proposed Resolution No. R-06-285 Amending the Policies and Procedures for the Community Development Block Grant Housing Rehabilitation Program. 16 Proposed Resolution No. R-06-286 Approving Change Order No. 2 to the Contract with Heller Construction Company for Highway 7 North Wastewater Line Rehabilitation Project. A motion was made by Director Daniel, duly seconded by Director Jones, that the Consent Agenda be approved. Upon discussion, City Manager Kent Myers advised a revised Public Safety Report has been distributed, which includes a request to close Exchange Street in front of the Exchange Parking Facility on Saturday from 5:30 p.m. to 8:00 p.m. for an event scheduled in the parking facility for the Martin Luther King, Jr. Commission. 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, Edwards, Daniel, and Bush, total 5. Absent and not voting: Directors Smith and Weatherford, total 2; motion unanimously carried. NEW BUSINESS 17 Proposed Resolution No. R-06-287 A resolution entitled, AA RESOLUTION APPROVING AN OPTION TO PURCHASE WITH WILLIAM R. AUSTIN FOR THE MUNICIPAL UTILITY BUILDING PROPERTY LOCATED AT 349 MALVERN AVENUE,@ was taken from the agenda and read by title only. Board of Directors Meeting 3 September 5, 2006 at 7:00 P.M.  A motion was made by Director Daniel, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers explained this is approving an option agreement with Mr. Austin of the Austin Hotel for the acquisition of the Finance Building located at 349 Malvern Avenue. About a month ago, Mr. Austin approached him with an interest in the building; and the City had previously done an appraisal on the building which was estimated at $550,000. He reported Mr. Austin has some investors who are interested, and he would like to get an option on that building. In discussion with the Board, several Directors suggested if the City proceeds, that it require a payment of $25,000. However, if Mr. Austin decides not to exercise that option, the City would retain that money. If he decides to exercise the option, he would acquire the building at the appraised price; and the $25,000 would be credited to the purchase price. Another provision in the agreement is that the staff in the building would have over a year to relocate. Director Edwards questioned what would happen if the Board passes this option and the City has an opportunity later for a better price. City Manager Kent Myers pointed out that Mr. Austin has a 90-day option to do his feasibility and market study on the building. If he decides to exercise it, the City would sell it to him for the appraised value. He noted even though the value is estimated at $550,000, it would be difficult to get that amount from anyone other than an adjacent property owner. Director Edwards questioned the amount it would take to repair the building, and City Manager Kent Myers stated that the City is not spending any money on the building based upon this option agreement. Director Maruthur expressed concerns with this issue pointing out there are 24 employees who would have to be relocated; and it is her understanding that when the move is made, the City is going to try to put everyone under one roof for a cost of $43,500. She stated all of the concerns, including a completely new customer service center, would be done in the existing building with a drive-in. She said the last time this was discussed, she thought the Board would be getting some more information. However, this is doing AB@ without completing AA@ first, which is finding a location. She added that she realized in part of the contract, the City would have the right to remain in the building until December 2007. However, if the City is unable for the right price to find a comparable place or a better place for the Finance and Utilities or other departments to relocate, this would not be a good move for the taxpayers. She pointed out there is a drive-in and plans for remodeling customer service, having security cameras and doing the windows for $43,500. She mentioned that property values in this area are increasing and sees no Board of Directors Meeting 4 September 5, 2006 at 7:00 P.M. reason to leave there. She stated the City could exercise an option to do this after it finds a place for one of the most important departments in the City to relocate. She stressed for that reason, she is not going to support this and believes the property is going to be worth the same because she is sure that Mr. Austin is not interested in the building but in the location. She mentioned that the property value is going to increase, and the neighborhood is improving. She said that she did not see anything wrong with the building except the repairs that need to be made. She noted a year does not guarantee that the City is going to find somewhere for the citizens to enjoy as much as they are this building. She stressed she cannot support this, and this is in principle because the City really needs to upgrade many of its departments and put them under one roof. A motion was made by Director Daniel, duly seconded by Director Jones, to table the resolution for two weeks to give staff time to research it; and Mayor Bush asked that everyone in favor to raise their hand, with three Directors (Directors Jones, Daniel and Mayor Bush) out of five Directors voting to table it, which motion failed. (Refer to motion later in discussion) City Manager Kent Myers said that he supported Director Daniel=s motion to table. However, if Director Maruthur is concerned that those departments do not have a place to relocate, he can bring back a listing of the properties the City had previously looked at that are available for lease and also the buildings that are available for sale in this two or three-block area. He said if the Board supports Director Daniel=s motion to table, he can bring that back at the next meeting and that would at least minimize any concerns regarding a place to relocate because there are many options in this area. Director Maruthur stated that should have been disclosed a long time ago, and the only commitment is $43,500 to repair a functioning building. City Manager Kent Myers stated when someone makes an offer on a building, he is obligated to bring it to the Board for consideration; and he does not believe the City will ever get an offer this high on the building. In terms of a place to relocate the current staff, he said there are some options he can bring back at the next meeting. Director Jones asked if the buildings would be available by December 2007 that were discussed at the Board Work Session. City Manager Kent Myers stated since the budget work session was not televised, the two key buildings discussed in the work session were the AP&L Building and the Regions Bank Building on the corner. The City has also been approached by Bank of Board of Directors Meeting 5 September 5, 2006 at 7:00 P.M. America downtown, which may be for sale or lease in the near future, as well as the owner of the DHS Building. In regard to the previous motion to table, City Attorney Brian Albright stated that according to the Code of Ordinances, Section 2-1-6.1, regarding motions and procedures of the Board to table an issue is a majority of quorum, which is four Directors; and there is a quorum present in the number of five. He noted three Directors voted earlier to table; therefore, this matter could be tabled according to the rules adopted by the Board. At this time, Director Maruthur left the Board Chambers. Mayor Bush called for those in favor of tabling the resolution to raise their hands, and there were three Directors (Directors Jones, Daniel and Mayor Bush) who voted to table the resolution for two weeks, which motion duly carried. Director Maruthur was out of the Board Chambers and did not cast a vote. The resolution was tabled until the next Board Meeting. 18 Proposed Ordinance No. O-06-74 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PURCHASE OF A SEWER TELEVISION CAMERA, ASSOCIATED COMPUTER AND SOFTWARE; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Edwards, duly seconded by Director Jones, 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 Maruthur, Jones, Edwards, Daniel, and Bush, total 5. Absent and not voting: Directors Smith and Weatherford, total 2; motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Daniel, duly seconded by Director Jones, that the ordinance be passed as read. Upon discussion, Mr. Don Cochran, Director of Utilities, stated the purchase of this equipment is from Baker Equipment Company, which is the exclusive factory representative for RST sewer television equipment; and the total price of the computer and associated computer and software is $24,290. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Edwards, Daniel, and Bush, total 5. Board of Directors Meeting 6 September 5, 2006 at 7:00 P.M. Absent and not voting: Directors Smith and Weatherford, total 2; motion unanimously carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 19 Board of Directors Items Director Jones reported that she filled in for Mayor Bush last Saturday with a welcome in Arlington Park, and Faith Christian Ministries held a youth explosion for the children. Director Maruthur commented that tonight was a good example of waiting for the other votes to get here so the Board could do what it wanted. She said she did not think this is responsible spending and that is why she did not participate in it. She reported that the Park Avenue Community Association had a successful pool party two weeks ago and had a large turnout. She expressed appreciation to everyone who helped with the event. 20 City Manager=s Report City Manager Kent Myers gave the following report: 1. On the Consent Agenda, the Board accepted the donation of skate ramps from Mr. Vince Irwin. These are currently being installed at the skate park at a value of about $20,000. Mr. Irwin previously owned a skate park in the County and went out of business and donated these skate ramps to the Parks and Recreation Department; the Board approved resurfacing four of the tennis courts at Kimery Park; and the Board approved the contract with Matrix Imaging Solutions for utility bill printing and mailing services. This will allow utility billings to be converted from the postcard to an insert billing on a monthly basis. 2. A flier has been distributed to the Board inviting the Directors to a welcome reception for Kathy Sellman, new Planning and Development Director. This will be held September 12 at the Transportation Depot, sponsored by the Arkansas Society of Professional Engineers, a local chapter of Professional Engineers; and they are providing the food and soft drinks for the reception. Board of Directors Meeting 7 September 5, 2006 at 7:00 P.M. 21 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 7:25 p.m., to meet again on Monday, September 18, 2006, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 8 September 5, 2006 at 7:00 P.M.