Board of Directors

MINUTES BOARD OF DIRECTORS MEETING NOVEMBER 6, 2006, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, November 6, 2006, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Mr. Bill Carter, 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, and Mike Bush, total 6. Absent: Director Tom Daniel. 2 Approval of Agenda A motion was made by Director Edwards, duly seconded by Director Jones, that the agenda be approved. Upon discussion, a motion was made by Director Smith, duly seconded by Director Weatherford, that Item No. 16 (Proposed Resolution No. R-06-334 Approving a Community Development Block Grant [CDBG] AFY2007 Annual Action Plan@ and Authorizing Submission of a Grant Application to the U. S. Department of Housing and Urban Development [HUD] for Various Projects as Specified in the Action Plan) and Item No. 20 (Proposed Resolution No. R-06-345 Approving a Community Development Block Grant [CDBG] AFY 2007 - 2009 Consolidated Plan) be placed at the end of the agenda. Due to the inclement weather and illness of some of the residents who are in attendance to speak to Items 16 and 20, Director Maruthur asked that those items remain as they were approved at the agenda meeting.  Mayor Bush then called for a vote on the motion to move Item No. 16 and Item No. 20 to the end of the agenda; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Weatherford, Edwards, and Bush, total 5. Voting Ano@: Director Maruthur. Absent and not voting: Director Daniel; motion carried. 3 Approval of Minutes of October 16, 2006 Board Meeting A motion was made by Director Edwards, duly seconded by Director Weatherford, that the minutes of the October 16, 2006 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Mayor Bush recognized the Mayor=s Youth Council and the following were introduced: Haleigh Parks, co-president, who stated that the Mayor=s Youth Council is a service organization that focuses on local government and also does many service projects with the community; Justin Buck, co-president, who mentioned that some of the member of the Council will be going with the Board to Washington, DC and are currently raising funds for that trip; Jennifer Schul, vice president, said they are currently doing a fund-raiser for the Jackson House and a food drive. There are drop-off points at Parks and Recreation, Rainbow Realty and Curves; Jeanne Parrett, treasurer; Jesseca Shamel, secretary and junior at Lakeside; Maggie Owens, second vice president, sophomore at Lakeside; Susan Downard, junior at New Beginnings Christian Academy; Josh Madison, senior at Hot Springs High; Marc Stanley, senior at Lakeside; Andrew Willett, senior at Lake Hamilton; Matthew Cox, senior at Lakeside; Julie Anderson, sophomore at Lake Hamilton; Caitlin Angel, sophomore at Lake Hamilton; Emma Henson, sophomore at Lake Hamilton; Jordan Anderson, junior at Lakeside; Megan Johnson, junior at Lakeside; Austin Moss, junior at Lakeside; Hunter Dunn, Lake Hamilton; Jackson Wells, sophomore at Lakeside; and Jeremiah Maglero, junior at Hot Springs High. City Manager Kent Myers presented an award to Andrew Patterson, who is a sophomore at Lakeside High School and contributed the design of the City=s Stormwater Engineering logo. He is the son of Abe and Cindy Maylon and his logo was chosen by the engineering division of the City from over 65 other entries. The logo will be used for all of the City=s stormwater activities and operations in the future. Board of Directors Meeting 2 November 6, 2006 at 7:00 p.m.  CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (October 25, 2006). 6 Proposed Resolution No. R-06-335 Approving Certain Bid Awards (a) Filters for Vehicles and Equipment - Fleet Service [annual supply contract awarded to Vehicle Maintenance Programing, Quality Petroleum, and O=Reilly Auto Parts]; (b) Vehicle Tow/Flat Change - Fleet Service [annual supply contract awarded to Combs and Burks]; and (c) Security Gates - Utilities [awarded to United Fence at 320 Davidson Drive in the amount of $9,311 and for Adams Street (2) in the amount of $13,870]. 7 Proposed Resolution No. RB06-336 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Milestone Properties Subdivision. 8 Proposed Resolution No. R-06-337 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Fox Run Subdivision. 9 Proposed Resolution No. R-06-338 Approving Change Order No. 3 with Heller Construction Company for Highway 7 North Wastewater Line Rehabilitation Project. 10 Proposed Resolution No. R-06-339 Awarding a Contract to Heller Construction for the 2006 Wastewater Line Improvements on Chestnut Street, Wilmot Street and Various Streets in Village South Subdivision. 11 Proposed Resolution No. R-06-340 Authorizing the Mayor to Execute a Lease Agreement Between the City and Pro Turbine for Hangar A-2 at the Airport. Board of Directors Meeting 3 November 6, 2006 at 7:00 p.m. 12 Proposed Resolution No. R-06-341 Appointing Donna Leach, Gene Larson and Rebeccah Tromater to the Hot Springs/Garland County Beautification Commission. 13 Proposed Resolution No. R-06-342 Amending Resolution No. 5098 (Adopting a Manual of General Orders as Official Rules and Regulations Governing the Officers and Employees of the Hot Springs Police Department). 14 Proposed Resolution No. R-06-343 Accepting a Donation from the Hot Springs/Garland County Beautification Commission for Construction of a Kiosk at Entergy Park; and Appropriating Said Donation. 15 Proposed Resolution No. R-06-344 Amending the Street Naming and Property Numbering Guide by Adopting the U. S. Postal Service Standard Suffix Abbreviations. A motion was made by Director Smith, duly seconded by Director Weatherford, that the Consent Agenda be approved. Upon discussion, Director Maruthur pointed out that in regard to Item No. 7 (Proposed Resolution No. RB06-336 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Milestone Properties Subdivision and Item No. 8 (Proposed Resolution No. R-06-337 Approving the Extension of Hot Springs Municipal Water and Wastewater Service to Fox Run Subdivision), one is three miles outside the City and one is five miles out of the City; but the Board is going to extend water and wastewater service. Mayor Bush then called for a vote on the motion to approve the Consent Agenda; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Weatherford, Edwards, and Bush, total 5. Voting Ano@: Director Maruthur. Absent and not voting: Director Daniel; motion carried. OLD BUSINESS 16 Proposed Resolution No. R-06-334 (A Resolution Approving a Community Development Block Grant (CDBG) AFY 2007 Annual Action Plan@ and Authorizing Board of Directors Meeting 4 November 6, 2006 at 7:00 p.m. Submission of a Grant Application to the U. S. Department of Housing and Urban Development (HUD) for Various Projects as Specified in the Action Plan.@(Moved to End of Agenda) PUBLIC HEARING 17 Consider Public Hearing on Issuance of a Sewer Revenue Bond, Series 2006, for the Purpose of Financing a Portion of the Cost of Betterments and Improvements to the Sewer System of the City This being the time and date set for a public hearing on the issuance of a sewer revenue bond, Series 2006, Mayor Bush declared the public hearing open. Mr. Don Cochran, Director of Utilities, explained that the City has acquired some funding through the Arkansas Natural Resources Commission Revolving Loan Program for the financing of the new Southwest Wastewater Treatment Plant, force main and sewer line improvements. The loan that was received in December 2005 was in the amount of $9 million. However, due to the rising cost of construction services and construction materials, post Hurricane Katrina and other events, the construction costs have increased during the project necessitating returning to the State and asking for another $2.3 million, which will bring the total loan amount to $11.3 million. Director Maruthur questioned why the sewer system needs improvement, and Mr. Cochran advised that the money was borrowed for approximately three different projects: (1) Southwest Wastewater Treatment Plant, which will be a 850,000-gallon a day wastewater plant southwest of Lake Hamilton. All of the wastewater that is generated in that area (west of Lake Hamilton) will be turned around and diverted to the new wastewater facility, eliminating the City from having to pump it across the lake and to the existing plant on Davidson Drive. If this new plant were not constructed, then the City would eventually have to upsize all of the pipes and pump stations between west of Lake Hamilton and the existing plant, which would be cost-prohibitive; (2) the pipe that will deliver the wastewater to the plant and the two pump stations; (3) Highway 7 North wastewater line rehab where the City is rehabing an existing sewer line that Board of Directors Meeting 5 November 6, 2006 at 7:00 p.m. runs along Highway 7 North from Belvedere to and through the Gulpha Gorge. He said there has been a history of problems with that wastewater line and have had numerous overflows that have to be reported to the State. By upsizing this pipe and putting in a new pipe in its place, this will eliminate those kind of problems in the future. Director Maruthur pointed out that on Highway 7 North, the pipebursting is replacing something that was in disrepair; and due to the extension of services so far out of the City, the City had a need to keep in compliance with PC&E, EPA or ADEQ. Director Edwards questioned the increase in size of the pipe, and Mr. Cochran advised that the pipe on Highway 7 North was an existing 8-inch clay tile pipe and will be upsized to a 12-inch main, which can handle any additional growth from the Belvedere development or the new residential development on the north side of Highway 7 North across from Belvedere. Director Edwards asked if this will be 12 inches through the Gorge, and Mr. Cochran said that it will. He added that at some point along Gulpha Gorge, the pipe has already been replaced years ago so it does not go all the way to Highway 70 East. Mr. Barry Manzey thanked the Board for its apology at the meeting in February. He stated there will be a new southwest wastewater treatment plant, and the sewer line that is going to Davidson Drive will be diverted; and all the wastewater, which will be on the west side of the lake, will be going to that new plant. He questioned if the residents of the entire county on the west side could pay for that themselves and no longer be part of the City=s wastewater sewer treatment charge since they are being overcharged. Mr. Cochran replied that it is possible they could do that. He added they would have to purchase all of the wastewater lines and pumping stations that belonged to the City that are currently in place, or they would have to disconnect themselves from all of that infrastructure and put in their own infrastructure. In addition to that, they would have to form some kind of public entity to be able to get the funding, get a construction permit, and build a new wastewater facility. He stated it may be very unlikely that the Arkansas Department of Environmental Quality would allow a second treatment plant to be built in the same area after they have already given the City a permit to put one there. Director Maruthur questioned the apology to which he was referring, and Mr. Manzey said that he appeared before the Board on February 25 concerning the compost charges; and after reviewing the meeting on disc, he personally felt that the Board of Directors Meeting 6 November 6, 2006 at 7:00 p.m. arrogancy and disrespect toward him was not in order from the Board. Therefore, he is taking the opportunity to accept the Board=s apology although one was not made. There being no further comments, Mayor Bush declared the public hearing closed. NEW BUSINESS 18 Proposed Ordinance No. O-06-96 An ordinance entitled, AAN ORDINANCE AUTHORIZING THE ISSUANCE OF A SEWER REVENUE BOND, SERIES 2006, FOR THE PURPOSE OF FINANCING A PORTION OF THE COST OF BETTERMENTS AND IMPROVEMENTS TO THE SEWER SYSTEM OF THE CITY OF HOT SPRINGS, ARKANSAS; PROVIDING FOR THE PAYMENT OF THE PRINCIPAL AND INTEREST ON THE BOND; AND PRESCRIBING OTHER MATTERS RELATED THERETO,@ was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Director Maruthur asked that the City Attorney give an opinion on this vote. City Attorney Brian Albright stated that he would limit any opinion on whether or not this is a legal transaction. However, he can say that it is a legal transaction; and bond counsel has approved this format with regard to the financing. He said it is within the purview of the Board to provide this kind of service and to expand the system that is already in place. Beyond whether or not it is legal, he would not hasten to opine on anything related to her vote. 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, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. Board of Directors Meeting 7 November 6, 2006 at 7:00 p.m. 19 Proposed Presentation by Outside Funding Organizations City Manager Kent Myers stated that in the current budget, the City funds six contract for services (Garland County Economic Development Corporation - $100,000; Chamber of Commerce Business Development Services - $2,500; Chamber of Commerce Retirement Relocation Services - $12,500; Volunteer Center of Hot Springs and Garland County - $9,000; Hot Springs Boys= and Girls= Club - $30,000; and Hot Springs/Garland County Beautification Commission - $32,500. He mentioned that staff is in the process of preparing the budget for next year; and at this time, it will include funding at the current levels for these agencies. The only exception would be the Volunteer Center, which is recommending that it not be funded during the coming year; and the County will not be funding that operation during the coming year. He stated if there are any changes, that usually occurs during the budget meetings. Ms. Millie Patrick, Director of the Retirement Relocation, stated this program has been in existence over 20 years. In the past years, they have responded to 57,853 inquiries from individuals considering moving to Hot Springs. Through information gained from title companies, they are able to track moving to the areas. She reported these are home purchases only, and these are individuals moving in from outside the area. In the past 52 years, they have tracked 1,319 relocations and recorded home sales in the amount of over $3 million. These same individuals, besides purchasing homes, also need medical services, automobiles, food, clothing, etc. and also pay taxes. She asked for the Board=s continued support of this program. Director Maruthur asked if she could give a breakdown of how many people she has relocated to the City limits or how many are in the County. Ms. Patrick responded that she does not have that information. She explained what she gets from the form has a person=s age, where they came from, and what they paid for their house. She said they do not know their addresses or their names since that is right of privacy. Director Maruthur suggested that possibly this information could be obtained in the future, without names or addresses, through a survey if they live in the City or County. Mr. Dave Byerly, Executive Director of the Garland County Economic Development Corporation, stated that the contract for the Chamber of Commerce, in the amount of $2,500, allows them to bring business development and business information to perspective individuals relocating to the community, as well as Board of Directors Meeting 8 November 6, 2006 at 7:00 p.m. businesses, and has been a successful program. He stated the City=s funding accounts for approximately 1/3 of the organization=s operation budget, and the County=s is around 1/3, with private investment making up the difference. Mr. Adam Roberts, director of the Hot Springs/Garland County Beautification Commission, said they are reaching their joint constituency through programs, such as Trash Bash, Arbor Day, Spring Fling, the annual litter index, cigarette litter; and in 2006, they have involved over 800 volunteers and presented educational programs to almost 4,000 students and adults within the City and County. He reported the Certified Keep America Beautiful annual report has stated that they generated a cost benefit to the City of $4.10 for every dollar invested in them. He stated the cigarette litter prevention campaign produced four-state television spots, significant local press, and a paragraph in USA Today highlighting Hot Springs as a strong and positively committed environmental partner. They have just received a small grant in the amount of $8,500 from Entergy, which will be used toward Trash Bash, Spring Fling and their adopt-a-various programs, which he hopes will be expanded to include the new adopt-a-street program throughout the City. Ms. Tammy Adams, executive director of the Hot Springs Boys= and Girls= Club, stated that a good portion of the 728 kids who played baseball this past spring, have come from within the City. The City=s funding has allowed those 728 kids to play baseball in an area where they may not have had a chance to play otherwise. The total youth membership for 2005 was 1,276 kids. They expressed appreciation to the Board for its support. Director Maruthur asked how much goes to administrative costs, and Ms. Adams said they keep their administrative costs under 20 percent as dictated by the United Way funding they receive, as well as the Boys and Girls Club of America funding, of which they are an affiliated chapter. There being no further presentations, Mayor Bush called for the next item of business. 20 Proposed Resolution No. R-06-345 Approving a Community Development Block Grant (CDBG) AFY 2007 - 2009 Consolidated Plan (Moved to End of Agenda) 21 Proposed Resolution No. R-06-346 Board of Directors Meeting 9 November 6, 2006 at 7:00 p.m.  A resolution entitled, AA RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER SERVICE TO MUSIC MOUNTAIN ROAD,@ was taken from the agenda and read by title only. A motion was made by Director Weatherford, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, reported that on June 21, 2004, the Board approved the water main extension on Music Mountain Road to the Pentecostal Church located at 446 Music Mountain Road. At that time, one of the conditions of the extension would be that the property owners would pay for the cost of construction and installation of the water main. He stated that apparently the water main was not installed, and the property owners were unable to fund the project. Several of the property owners on Music Mountain Road are now requesting that the City extend the water main at the City=s cost, and there are 11 residents who signed the letter requesting for this main extension. He stated this area of Music Mountain Road is not within the City limits; but in their letter, they stated if they ever became contiguous to the City, they would consider annexation. The cost of extending the line would be approximately $46,000, which would be 2,000 feet of six-inch main and associated fire hydrants. City Attorney Brian Albright asked if the Board had previously approved the extension of this without paying for it, and Mr. Cochran said that it had. Mr. Peret stated that he was the first Romanian, who moved here 15 years ago. He said that he has about 200 members in the Romanian Church and built a church on Music Mountain Road. They have a 160-foot well, but this summer there was no water into the well. He said they could not afford $20,000 to extend the line from its present location to the church. He noted that the neighbors are willing to pay their share since they cannot be without water. He said the water from the well is back due to the recent rain, but they do not drink water from the well. Director Smith said that he made the statement that the property owners may now be interested in funding this project, and Mr. Peret said that is what they said. He added only one neighbor said she did not want city water because she has very good well water, but there are five members from the church who are willing to split the money with the church ($20,000). However, they still do not have enough money to pay for this extension. Board of Directors Meeting 10 November 6, 2006 at 7:00 p.m.  Mr. Cochran advised they have already hired an engineer; and the plans were designed in 2004, which were approved by the City; but they did not have the funding at that time. He add if they can gather their resources together and hire a contractor to put it in, then that is what they could do. City Manager Kent Myers stated that the resolution is written whereby the City will participate in the extension cost in the estimated amount of $46,000. Director Maruthur pointed out that it is stated in the Board packet that this area of Music Mountain Road is not in the City limits, but the property owners have said they would consider annexation if the area ever became contiguous to the City. Director Maruthur then made a motion, duly seconded by Director Jones, to amend the resolution by the City paying for half of the cost. Upon discussion, Director Edwards commented this will be setting a precedent. Mayor Bush then called for a vote on the motion to amend the resolution; and upon roll call, the following voted Aaye@: Directors Maruthur and Jones, total 2. Voting Ano@: Directors Edwards, Weatherford, Smith, and Bush, total 4. Absent and not voting: Director Daniel; motion failed. Mayor Bush then called for a vote on the motion to adopt the resolution; and upon roll call, the following voted Ano@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously failed. Whereupon the resolution was declared failed. 22 Discussion Regarding Adjustment to Compost Fees Mr. Don Cochran, Director of Utilities, advised that staff received a request for the Board to reconsider compost loading fees for County residents. Currently for loading fees, the charges are $15 per cubic yard. If someone wants to load compost on their own, it is free to everyone; but for the City to load the compost, the loading fees for City residents are $6 per cubic yard up to three yards and then $15 thereafter. For outside City residents, it is $15 per cubic yard. He noted that the operating hours are Monday through Friday, 7:00 a.m. to 6:30 p.m., Saturdays and Sundays, 10:00 a.m. to 4:00 p.m. The loading days are Tuesdays, Wednesdays and Thursdays, 8:00 a.m. to 5:00 p.m. He stated that staff=s recommendation is to charge everyone the same fee, whether they are inside or outside the City, which would be $6 per cubic yard up to three yards and $15 a cubic yard thereafter. Board of Directors Meeting 11 November 6, 2006 at 7:00 p.m.  Director Smith stated this is basically his proposal, and he is trying to accomplish establishing some equity between the County and City residents. He said that he believes it is a little extreme what the City is asking the County residents to pay. City Manager Kent Myers commented this would be a positive gesture on behalf of the City, and the new policy is generating only about $5,000 a year for the City. Therefore, he would recommend rescinding the previous policy and charge everyone the same rate. Mr. Cochran explained the way the ordinance is written, it is left to the discretion of the City Manager and the Utilities Director to set the fees. Staff is requesting that the Board give them direction to amend the fees. A motion was made by Director Smith, duly seconded by Director Jones, that the City Manager and Utilities Director be given direction to equalize the compost fees between the City and County; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. 23 Proposed Resolution No. R-06-347 A resolution entitled, AA RESOLUTION PROHIBITING THE DISPOSAL OF CERTAIN WASTE ITEMS BY COMMERCIAL OPERATIONS AT THE CITY=S COMPOST FACILITY,@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran advised that a few months ago, staff had made a recommendation to the Board to limit disposal of yard waste and tree trimmings at the City=s compost facility to inside city customers only, which was effective October 1, 2006. Since that time, numerous calls and complaints have been received from outside-city customers. In addition to limiting it to just inside-city customers, the City also restricted that no commercial haulers could dispose of any material, which would mean landscapers and tree trimmers. He explained that staff is requesting that the Board reconsider allowing outside-city residents to dispose of their yard waste and tree trimmings but continue prohibiting the commercial haulers and landscapers from disposing of brush, yard waste, and tree trimmings at the compost facility. Board of Directors Meeting 12 November 6, 2006 at 7:00 p.m.  Mayor Bush questioned why this was prohibited in the beginning; and Mr. Cochran advised that this past summer, there was a large stockpile of this material. He added a company was hired with a tub grinder or wood chipper to grind up all of this material and then stockpile it. He explained that the material is used as bulking material to mix with the sludge from the wastewater treatment facility, and those two materials combined create the compost. From the overstocked pile of wood chips, there were numerous fires that were caused by spontaneous combustion; and these fires resulted in the Fire Department coming out and extinguishing the fire. Numerous complaints were received about the smoke and odor from those incidents, as well as a violation from ADEQ from water running off from the firefighting effort. He stated that staff thought it was in the best interest of the City to limit those materials to where it was more manageable for the operation. Director Edwards stated that many of the apartment complexes have one master water meter, and some of those people hire a contractor to rake the leaves and trim the trees on their property. Mr. Cochran commented that the person they are hiring is a commercial landscaper or tree trimmer; and whoever is hiring them to do that job is hiring them to haul it off and dispose of it. If they take it to the County=s landfill, then they are going to pay for disposing of the material. If they bring it to the City=s landfill, then they get that done for free. Therefore, they are charging their client for disposal which is giving the commercial haulers a free ride. Director Edwards asked if it would be different if this person is doing a particular clean-up and is not a commercial hauler, and Mr. Cochran said that it would. In response to Director Smith, City Attorney Brian Albright explained the resolution, pointing out that a Ayes@ vote under Section 1 would prohibit the debris being brought there by commercial haulers, landscapers, tree trimmers; but it would also repeal Resolution No. 6328, which prohibited outside-county residents from bringing their clippings into the compost facility. This would allow individuals outside the City to be treated the same as individuals inside the City; but commercial haulers, inside and outside, would be prohibited. 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, and Board of Directors Meeting 13 November 6, 2006 at 7:00 p.m. Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the resolution was declared adopted. 24 Proposed Resolution No. R-06-348 A resolution entitled, AA RESOLUTION APPROVING THE APPLICATION OF DON ROBERTS, D.B.A. NATIONAL PARK DUCK TOURS, FOR TWO ADDITIONAL SIGHTSEEING LICENSES (VEHICLES),@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Mr. Don Roberts, 418 Central Avenue, stated that the Coast Guard has decided because Americans are becoming too overweight, they are going to change their benchmark from 140 pounds to 185 pounds. He said that he is required to do stability testing, which has a significant reduction on the number of people he can carry. He mentioned since he was maxed out many times last summer, the only way to compensate is to add another vehicle to his fleet. Rather than ask for another one in the future, he said that he is requesting two additional vehicles (one to compensate for what they are going to reduce their numbers by and two to allow for expansion in the future). Director Weatherford asked if he will be running more tours out of his locations, and Mr. Roberts stated he will have more vehicles with the ability to operate; but he will be able to carry fewer people on each one. He added there will still be only two in the district from each company, and this will not add anymore to the downtown area. City Attorney Brian Albright stated that he had indicated there can only be two in the CBID District but will have more downtown. Mr. Roberts said he will have more available to come downtown; and at the present time, there are two parking places on Exchange Street where he can park. He added he will have one on the street, but he has another location where he can park them outside the CBID and bring them in as necessary. City Attorney Brian Albright asked if that will be in the downtown area, and Mr. Roberts said that it will not be. 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, and Board of Directors Meeting 14 November 6, 2006 at 7:00 p.m. Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the resolution was declared adopted. 25 Proposed Ordinance No. O-06-97 An ordinance entitled, AAN ORDINANCE ACCEPTING THE ANNEXATION OF CERTAIN TERRITORY TO THE CITY OF HOT SPRINGS, ARKANSAS; AND MAKING SAME A PART OF THE CITY OF HOT SPRINGS; AND ASSIGNING SAME TO DISTRICT,@ was taken from the agenda for consideration. (Twin Points Road and Higdon Ferry Road) A motion was made by Director Weatherford, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. City Attorney Brian Albright pointed out that there are only five members present in the Board Chambers and it was unanimous vote to approve suspension of the rules, which is enough under 2/3 majority. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Director Maruthur questioned if this is a voluntary annexation; and City Attorney Brian Albright advised this is a voluntary annexation due to it being contiguous to the city limits. Director Maruthur asked if they had to be annexed because they are contiguous, and City Attorney Brian Albright advised that they volunteered. Director Maruthur questioned if the City would be giving them water and sewer if they had not volunteered. City Attorney Brian Albright said that the Board would still have had some discretion on whether or not to extend water. At this point, he said he did not want to opine about sewer since there is a pending lawsuit concerning such matters. Director Maruthur stressed that she is not opposed to this but wants to make sure she is on solid, legal ground. City Attorney Brian Albright advised that the legal aspect of it has already taken place, and they have already petitioned the County Court. The notice has been run; the time period has run; the public hearing has been held; and the County Judge has entered the Order granting the annexation. He explained this is more or less a formality on behalf of the Board to accept it and then to assign it to a district for zoning Board of Directors Meeting 15 November 6, 2006 at 7:00 p.m. purposes and Board representation. The case law says if the Board takes no action, it is still part of the City. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. 26 Proposed Ordinance No. O-06-98 An ordinance entitled, AAN ORDINANCE VACATING A PORTION OF CERTAIN STREET RIGHTS-OF-WAYS LOCATED ADJACENT TO THE HOT SPRINGS NATIONAL PARK (RESERVE AND FOUNTAIN STREETS),@ was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Director Smith asked who was responsible for the sidewalk, trees, lights and parking meters; and Deputy City Manager Lance Hudnell advised that the National Park Service will take care of the sidewalks; the City will be responsible for the trees, lights, and parking meters. Director Smith questioned who would maintain the sidewalk if one of the City=s trees should tear up the sidewalk from the roots, etc., and City Attorney Brian Albright advised that the sidewalk maintenance would be the responsibility of the National Park. 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, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. Board of Directors Meeting 16 November 6, 2006 at 7:00 p.m. 27 Proposed Ordinance No. O-06-99 An ordinance entitled, AAN ORDINANCE AUTHORIZING THE ISSUANCE OF A LEASE PURCHASE AGREEMENT TO PROVIDE SHORT-TERM FINANCING UNDER AMENDMENT 78 TO THE ARKANSAS CONSTITUTION THE ACQUISITION AND INSTALLATION OF TANGIBLE, PERSONAL PROPERTY; AND PRESCRIBING OTHER MATTERS PERTAINING THERETO,@ was taken from the agenda for consideration. (Marquee Sign for Advertising and Promotion Commission) A motion was made by Director Jones, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. 28 Proposed Resolution No. R-06-349 A resolution entitled, AA RESOLUTION DESIGNATING THE VOTING DELEGATE AND ALTERNATES FOR THE NATIONAL LEAGUE OF CITIES ANNUAL BUSINESS MEETING,@ was taken from the agenda and read by title only. A motion was made by Director Weatherford, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Director Maruthur commented that Directors Weatherford, Smith and Jones will be attending. She pointed out that according to the Board Action Form, there is no fiscal impact and questioned who was paying for this. City Manager Kent Myers advised that the Board had previously approved the travel for these Board Members; and in that approval process, staff informed the Board what the fiscal impact would be. He explained that the City has to have one official voting delegate in case any legislation comes up for a vote, and the National League of Cities needs an individual designated to vote in that case. He noted that the travel has already been approved and was approximately $6,000. Board of Directors Meeting 17 November 6, 2006 at 7:00 p.m.  Director Maruthur questioned how many are required to attend, and City Manager Kent Myers advised that nobody is required to attend. 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, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the resolution was declared adopted. 16 Proposed Resolution No. R-06-334 A resolution entitled, AA RESOLUTION APPROVING A COMMUNITY DEVELOPMENT BLOCK GRANT (FY 2007 ANNUAL ACTION PLAN); AND AUTHORIZING SUBMISSION OF A GRANT APPLICATION TO THE U. S. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT (HUD) FOR VARIOUS PROJECTS AS SPECIFIED IN THE ACTION PLAN,@ was taken from the agenda and read by title only. A motion was made by Director Edwards, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Ms. Kathy Sellman, Planning and Development Director, advised that in July 2006, the Board approved a resolution naming seven citizens to the Community Development Advisory Committee; and this was according to a previous resolution (Resolution No. 6267) in accordance with the adopted Community Development Block Grant Citizen Participation Guidelines. The purpose of the committee was to assist the Board in developing an Annual Action Plan and selecting projects and programs for inclusion in the Action Plan for the Board=s consideration and approval for funding. At the October 16, 2006 Board Meeting, the Board remanded the Committee=s draft resolution back for additional analysis and explanation for each of the funding recommendations. The Community Development Advisory Committee met on October 24, 26 and 27, 2006, to fulfill the Board=s direction. The 2007 Action Plan implements the priorities established in the fiscal year 2007-2009 Consolidated Plan to be considered tonight. The Action Plan and Consolidated Plan must be submitted to HUD this year for their consideration by November 15. Director Smith said he needed to make it clear since the Quapaw Community Center has regrettably been declared ineligible for this program, he will be participating in the full discussion of the CDBG funding. Board of Directors Meeting 18 November 6, 2006 at 7:00 p.m.  Director Weatherford mentioned he made it clear in the agenda meeting that he did not think the money should go for sidewalks, gutters, curbing and street trees in either the 600 block of Park Avenue or the 300 block of Pleasant Street. At this time, he made a motion, duly seconded by Director Smith, that the Board allocate $40,000 to Habitat for Humanity; $296,000 to single-family, owner-occupied housing rehabilitation; and $84,000 to program administration. Upon discussion, Director Maruthur said in reviewing the Board packet, there is an appeal for the Quapaw Community Center for their parking lot to be paved, etc. She added that she noticed in the newspaper that Director Weatherford had stated a concern about that funding, which she could not understand from the agenda meeting when the Community Development Advisory Committee (CDAC) had made everything very clear. She questioned if there is an appeal. City Attorney Brian Albright asked if Director Smith was making an unequivocal withdrawal of any application for consideration on behalf of Quapaw Community Center; and Director Smith replied that he was. Director Maruthur said she also wanted the letter from HUD to be in the record. She asked if Director Weatherford was concerned about the infrastructure, and Director Weatherford said that he was concerned there was not enough money that goes into the single-family housing. He added that administration cost and other is about 37 percent, and the rest of it is 63 percent that goes into single-family housing. He stressed that the City does not spend the money where it was meant to be and should not be on curbs, gutters and streets. Director Maruthur pointed out that on October 16, she gave a presentation. Most of it was strictly from the first document that was submitted to HUD, and in there it stated there would be two target areas for rehabilitation to low-to-moderate income neighborhoods. That is why Pleasant Street and Park Avenue received the rehabilitation. Along with that rehabilitation, the document mentions infrastructure. She noted that Habitat for Humanity was left out, and she had stated at the last meeting that she would not have done that. Theirs is for infrastructure, not for housing. She said that she believes the City needs to stay the course, and all of the members on CDAC had spent many hours on this. She pointed out that the administrator of the program, Mr. Nelson Self, is not present tonight; but Ms. Sellman has worked very hard on this; and City Manager Kent Myers has witnessed about all of it. She mentioned he made a recommendation to the Board at the agenda meeting reminding the Board how hard everyone has worked on this. She noted that individuals submitted proposals, and there Board of Directors Meeting 19 November 6, 2006 at 7:00 p.m. was a very specific recommendation from CDAC to help the target areas. She commented that Director Weatherford is recommending the infrastructure for Habitat for Humanity but to exclude the infrastructure for Pleasant Street and Park Avenue. She explained she wanted this item first on the agenda because Mr. Orville Poole was not feeling well; and he is the one who walked up and down Park Avenue. She mentioned there are people in wheelchairs who cannot use the sidewalk in the 600 block, and there is a facility that is going up for the elderly and handicapped in the 600 block of Park Avenue. She noted this goes along with the document that was submitted to HUD, and the City was approved because it has low-to-moderate income, older neighborhoods. She pointed out it states clearly in the document that is to help the blighted areas, the older areas that do not have POA, and they do not have Bill of Assurances. She stressed these are poor people. She commented that Park Avenue Community Association is not going to get one penny -- only the people who applied and are poor. She stated it is easy to take away from the poor and apparently easy to take away from those who are ill. She said her concern is that the City finish what it has started and help the poor by getting their electrical and plumbing. Director Weatherford said that this is helping the poor, and he is putting more money back in there for housing and pointed out that it is not for sidewalks. He stressed building sidewalks will not help the residents get a roof over their head or help in getting electrical or plumbing. Director Maruthur asked if he read the document, and Director Weatherford said that he did. Director Maruthur said when a development is done, it is in the City=s subdivision regulations that there have to be sidewalks, curbs and gutters. She noted that he has been a proponent for extending the City through annexation so the City can preserve the integrity of those new areas because the City is going to grow and go beyond the lake. She stated the Board has held work sessions and discussions on this matter, but now because one program is not being funded, everything else that CDAC has done is to go out the window without them having a word. At this time, she recognized Mr. Orville Poole. Mr. Orville Poole stated that the agreed with Director Weatherford that all of the money should go into single-family housing; but if all of the funds are going to be put into single-family housing, then Habitat for Humanity should be taken out. He emphasized that he does not mean that as a criticism. He noted that the Board designated Park Avenue as a target area, but none of the funds have been used in the Park Avenue area. He stated that the Pleasant Street area has been granted two different grants for the past two years and a considerable amount of money has been Board of Directors Meeting 20 November 6, 2006 at 7:00 p.m. spent in that area. He said the Park Avenue area decided to forego in order to let the Pleasant Street area have the money because it not only improved their neighborhood but the neighborhood behind the Hot Springs Civic and Convention Center. He pointed out it is now turn for the Park Avenue area. He commented that infrastructure is infrastructure whether it is for Habitat for Humanity, but the Park Avenue area is infrastructure also, as well as the Pleasant Street area. Mr. Ralph Robinson, 105 Westbrook, said that he would defer his time to Mr. Poole. Mr. John Goodman said he was present to answer any questions. Mayor Bush then called for a vote on the motion to amend the attachment to the resolution previously made by Director Weatherford ($40,000 for Habitat for Humanity, $84,000 for administration, and $296,000 for single-family, owner-occupied housing rehabilitation); and upon roll call, the following voted Aaye@: Directors Smith, Weatherford, Edwards, and Bush, total 4. Voting Ano:@ Director Jones. Not ready: Director Maruthur. Absent and not voting: Director Daniel; motion carried. City Attorney Brian Albright advised that the amendment to the attachment to the resolution passed. Director Maruthur questioned if all of the other items are being removed, and Director Weatherford said that was correct. Director Maruthur asked if Quapaw Community Center had been included, would he still have voted the same way; and Director Weatherford said that he would. Mayor Bush then called for a vote on the motion to approve the resolution, as amended; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the resolution was declared adopted, as amended. Director Weatherford said it has been said two or three times about target areas and this going to District 1 and District 2. He stated as he understands it, this can be in any district and does not have to be in District 1 and District 2. He questioned if any district can apply. Board of Directors Meeting 21 November 6, 2006 at 7:00 p.m.  Ms. Sellman advised there are two target areas that have been identified. They are mapped in the 2004 - 2006 Consolidated Plan and in the proposed 2007 - 2009 Plan. Those are areas that meet all of the requirements as far as demographic and physical characteristics. Director Weatherford asked if other districts can apply for this money if they qualify for it, and Ms. Sellman said there is a requirement that 70 percent of the funds must directly benefit low and moderate income population. If somebody could demonstrate that those requirements are met, then their request could be considered for funding. Director Weatherford asked if she counts that as administration, and Ms. Sellman advised that takes out the administrative money. Director Weatherford commented that only 63 percent of this money is going to housing, 18 percent goes to administration, and 19 percent is going to others, such as National Baptist, Clinton Cultural, Wade Street Park lighting, Pleasant Street Webb Community. He asked if those are considered low-to-moderate income. Ms. Sellman replied they are if they are located in the target area and serve that population. Director Weatherford asked if people could apply for that money if they are in another district that qualifies as low-to-moderate income, and Ms. Sellman advised that the applicant and activity must qualify under the Community Development Block Grant guidelines. Director Maruthur said she wanted to clarify for Director Weatherford that she was in on the process from the beginning. She stated the first application to HUD was to target and make a visual impact in a concentrated area so that the Pleasant Street area and Park Avenue area were selected for a visual impact as a catalyst to give hope to those who were living in low-to-moderate income housing because there has been an exodus from the City. She commented that was what the summit was about; and then in the document, there is an emphasis on the elderly. It is a low-to-moderate income tract area, and Districts 1 and 2 are to complete the program. She added in the document it identified very specific things in the Pleasant Street area that needed to be done because it is historic, and they have certain needs they have to meet. In the Park Avenue area, there are 100-year old retaining walls that are made out of stone, and that was identified. She said this was not done by the residents but by the city government Planning and Zoning Director, and this is what was presented to HUD. She pointed out that District 1 and District 2 are only trying to complete what was begun, and it has stimulated reinvestment in both of the areas. It was stated very clearly that after this development began, it should be expanded to some other neighborhoods within these two districts and then move to other districts. She mentioned this is a City plan and not only for District 1 and District 2. When this was first presented, she said she had Board of Directors Meeting 22 November 6, 2006 at 7:00 p.m. concerns about that, and the whole idea was to reinvest in the neighborhoods, which is why they were identified as low-to- moderate income where there have been burned-down buildings, become rental property, go into disrepair, and people move out, which is in that document. She stated it has been very frustrating because the infrastructure is important. She noted when anyone does new construction as Habitat is doing, it is very important to have sidewalks and curbs. That is why District 1 and District 2 have been getting a lot of people excited, and there has been some reinvestment. She added there is also the issue of ADA; and if there is an area where people cannot negotiate in wheelchairs, there is a real problem. In the older neighborhoods, there are no protections, and there is not going to be new development. She said she voted for it because she did not have a choice. She stated that voting Anot ready@ is a term that she got from a book and did not mean that she was not ready to vote. It meant everything was not complete. She said she has a problem with getting this money from the government and then all of these other people coming in, and they have been solicited. She commented there are several organizations and entities that have been told to apply for CDBG funding, and that is not fair to them because they apply and get rejected. She noted they think they are being personally rejected, but they are not. She said this is the first program to her knowledge that has really made an impact to the older neighborhoods, and Districts 3, 4, 5 and 6 are going to be part of this. If this program succeeds, the City will have other resources to partner with and expand; and the entire city is going to get revitalized. She stated that she and Director Jones have been vigilant in trying to get what they are supposed to do done, and no one is trying to keep it from the other districts. She added they are trying to make a difference in the older neighborhoods because those people do not have the money. She noted that the money goes to the homeowners and to the sidewalks. If a house is rehabilitated but there are broken sidewalks and it looks like a blighted area, it helps a little; but that is not what the package was. She mentioned that was not what was presented to the Board, at the neighborhood summit, to the Pleasant Street area, or the Park Avenue Community area. She stated someone had to fill out the applications, and this is the first time the Park Avenue area had to fill out something or the name Park Avenue Community Association. would not have been in there. She said that she hoped next year the Board can come together on this and continue and give everybody in the City hope. Director Jones mentioned that Mr. Nelson Self received an award through HUD for doing such a great job and asked if this will put the City in a conflict now with HUD. She said she knows the Board has the authority to change the committee=s recommendations but questioned how that is going to make the City look. Ms. Sellman replied that housing rehabilitation is the No. 1 priority, and she believes the Board of Directors Meeting 23 November 6, 2006 at 7:00 p.m. Board is being very true to the adopted Consolidated Plan that it has had for the past three years. She stated that is proposed as the Board=s No. 1 priority also in the Consolidated Plan for the upcoming three years, and she could not imagine this would jeopardize that. City Manager Kent Myers stated there are also other housing funds that are available outside the target areas. He advised that the City received an update on the HOME funding program Friday afternoon, which is administered by the West Central Planning District. The City assists them in providing individuals who qualify for HOME funding and also assists them in some of the inspections. On Friday, they sent him a listing of the houses they are considering on spending HOME funds. He read a letter from Ms. Danielle White, from West Central Planning District, stating that they are currently accepting the second round of bids that will open on November 4. Initially, there were 12 homes in the first application, but some were disqualified or dropped out. There are now eight rehab projects and one reconstruction project they are considering. They anticipate the eight rehab projects to be very close to the $25,000 maximum, and they are reconstructing one home around $85,000. Once they get the completed bids, the application will be sent to ADFA, and ADFA will have up to 60 days before the funding will be supplied and construction can begin. He stated there is one item staff will need Board direction. He said the West Central Planning District needs subordination agreements for two of the houses no later than November 17, or they will be disqualified due to having the second lien. The houses that are on the list for funding are (1) Doris Russell, 307 Walnut Street; (2) Stella Kidd, 125 Fox Street; (3) Tarbert Reed, 107 Neptune Street; (4) Ida Thompson, 321 Palmetto; and (5) Cornelius Bledsoe, 159 Chestnut. The reconstruction project is for Florence Polk, 300 Jackson Street; (2) Bobbie Ingram, 201 Lincoln; (3) Shirley Greathouse, 335 Grove; and Terrence and Danielle Holstine, 111 Harrell. That HOME funding will continue to be available throughout the City, but staff needs Board direction tonight with regard to the subordination agreement. Deputy City Manager Lance Hudnell explained there are two houses on the list that have already had CDBG funds allotted to them and are near completion of their activities, but it is permissible to layer the funds. For example, if the CDBG funds were not sufficient to meet the particular needs, then it is permissible to use HOME funds on that. Two of these are proposed for that, but there is a mortgage and promissory note because of the CDBG funds. He explained there is a mortgage and promissory note entered into with the homeowner whereby if they did not comply with the CDBG program, they would have to repay those funds at least in accordance with the mortgage and promissory note. He stated if it is under a certain dollar amount, it is a Board of Directors Meeting 24 November 6, 2006 at 7:00 p.m. five-year note; if it is over a certain dollar amount, it is a ten-year note. Every year that they comply with the program requirements, 1/10 of the mortgage is forgiven. After ten years, there is no longer a mortgage. The HOME funds are different in that it is a large grant that goes to the State, and then the State administers that through ADFA (Arkansas Development Finance Authority). They can impose additional rules in addition to what HUD has. They require the bidding and have the home already to go before they ever allocate the funds as opposed to CDBG, which gives them the funds and then they go through all of that. The major issue is they will not permit these two homes to be in part of the program unless the City subordinates its mortgage to theirs. In both of these cases, they already have an existing mortgage so they would then have an ADFA mortgage and the CDBG mortgage. The City=s mortgage would be in third place. He explained it is an agreement that would require the Mayor=s signature and would need to be approved by the Board. This had to be submitted by November 17; therefore, the subordination agreements would have to be presented to the Board on November 16. In the meantime, they will be doing the bids, which will open on November 14, and they are doing walk-thru=s, etc. this week. West Central Planning District has said if the City had any problems with either of these, they would like to know before they went to this two week=s worth of work. He noted if the City does not do this, it is too late to do any substitutes; therefore, those funds allocated to those two projects would be lost for this year. Director Weatherford questioned the two homes that are on this list receiving $25,000; and Deputy City Manager Lance Hudnell advised that the amount spent on one was $24,990; and the other one was $39,500. City Manager Kent Myers pointed out that was CDBG, and Director Weatherford asked how much they are receiving from the HOME funds. Deputy City Manager Lance Hudnell replied they will know on November 14 since that is when the bids open. Director Smith asked if there are two homes that have already received CDBG funding and are now getting ADFA funding, and Deputy City Manager Lance Hudnell replied that they have. Director Smith commented there appears to be Adouble-dipping@, and there are others who have not received any funding. He questioned who received the $85,000 structure, and Deputy City Manager Lance Hudnell stated that under the HOME Program funds, there are two categories: (1) rehabilitation, which is limited to $25,000; and (2) reconstruct, which is limited to $85,000. He added there are some homes that are in such bad condition that they cannot be rehabilitated but have to be reconstructed, and the HOME Program allows for that. Board of Directors Meeting 25 November 6, 2006 at 7:00 p.m.  Director Weatherford pointed out if the owner of the house on Harrell Street that is eligible receives $25,000, he already has received $40,000. He said that house should have been torn down if it is going to cost $65,000 to remodel it. City Manager Kent Myers explained the only action by the Board is whether or not the Board should approve the subordination agreement that subordinates its loan. He said the Board would not want to do that if it is opposed to stacking them. Deputy City Manager Lance Hudnell pointed out it is permissible but is not required. Director Weatherford said he was against it. Director Maruthur said years ago when the HOME Program was up and running, there were a few homes under the HOME Program that were constructed from the ground. Deputy City Manager Lance Hudnell explained that is the meaning of reconstruct. Director Maruthur commented that the money from the HOME Program could have been applied to repairs, but it was much easier to do the reconstruct and made it easier on the paperwork. Director Weatherford said he understood that, but this is spending $40,000 on many of these houses, and he would much rather see it go to re-roof a house or a front porch, etc.; but this is totally remodeling houses. Director Maruthur asked if the Board remembers the cap, which was changed to $40,000 and the Board agreed. City Manager Kent Myers stated that the Board will have a chance in December to reconsider that cap. He reiterated that all staff is looking for tonight is direction from the Board on whether it wants to subordinate itself to the two houses that have already been approved for CDBG funding. He questioned if the Board has any input on the reconstruction, and Deputy City Manager Lance Hudnell said that it really does not. He added if the Board wants to give instructions not to do any reconstructions, that can be done. However, if these are pulled out now, there is not time to replace them with anything. He added it is a decision as to whether the Board wants to go with these and give instructions not to do any more of these, or whether it wants these two pulled out. In which case, the City will lose whatever funding was there because it is to late to replace them with another project. City Attorney Brian Albright advised that the Board cannot take any action tonight, but staff is inclined to authorize the Mayor to sign one of these subordination agreements. However, it appears that the Board does not want to authorize that. He explained that would ultimately release that money, and ADFA could use that for some other eligible candidate in a different program. Board of Directors Meeting 26 November 6, 2006 at 7:00 p.m.  Deputy City Manager Lance Hudnell commented that it will probably go to a different city. Director Maruthur said she would like to see the City finish and not lose the money but put a cap on how much is going to be done. She commented that she recommended that years ago. Director Jones stated that a cap cannot be placed on ADFA. Deputy City Manager Lance Hudnell explained that they already have a cap, which is between $25,000 and $85,000. City Manager Kent Myers said with that cap, the City would spend up to $50,000 on the house on Grove Street (total federal money) and up to $64,000 on the house on Harrell. He questioned if the Board wants to authorize that much federal money assuming the bids come in up to that. Director Weatherford responded that he did not. Director Smith stated that he was opposed to it. He added that he has driven by these houses, and this is just throwing money out in the street. He stressed that he did not want the Mayor to obligate himself in a subordination agreement. City Manager Kent Myers asked Director Edwards if he wants to authorize another expenditure of federal funds at 335 Grove Street and 111 Harrell Street, and Director Edwards said that he would not approve it. Director Maruthur said that she was not aware of this and would appreciate getting this information. City Manager Kent Myers replied that it was not received until Friday afternoon. She questioned if these people knew they could get this money and finish the home, and City Manager Kent Myers advised that they applied for the money. Director Maruthur said her recommendation would be to finish this; but then after that, put a cap on it. She added that she thinks it is wrong and insensitive to return the money that these people have applied for, and that is not what this program is about. She added that is not going to go to any other district but is going to go to these people who have applied; therefore, rejecting it means nothing. Mayor Bush said there appears to be two or three for it and asked if it will be brought to the next meeting. Deputy City Manager Lance Hudnell stated that they were wanting to get a sense of whether to bring the subordination agreement back. Board of Directors Meeting 27 November 6, 2006 at 7:00 p.m.  Director Weatherford stated at that meeting, he would like to see a picture on the screen of these two houses. Director Jones asked if these are owner/occupied houses, and Deputy City Manager Lance Hudnell said they are. Director Maruthur stated that she does not consider this Adouble-dipping@ and what she was talking about earlier is if CDBG really takes off and the City starts seeing a visual impact, it will have other resources that will partner. She stressed there should be a cap in the future, but she is going to support whoever has applied, and they are waiting for the money. She noted that she wants to see more partnerships, more funds, more banks and more help to all of these neighborhoods. Deputy City Manager Lance Hudnell said that staff will have the subordination agreement, pictures and bids for these two houses at the next meeting. 20 Proposed Resolution No. R-06-345 A resolution entitled, AA RESOLUTION APPROVING A COMMUNITY DEVELOPMENT BLOCK GRANT FOR FISCAL YEAR 2007 - 2009 CONSOLIDATED PLAN,@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Ms. Kathy Sellman, Planning and Development Director, advised this is a recommendation from the Community Development Advisory Committee. They met on October 26 to review and approve this proposed FY 2007-2009 Consolidated Plan. The deadline for submittal to HUD is November 15. This resolution would accept their recommendation to adopt the Plan for the next three years, establishing the City=s priorities for funding eligible activities through the Community Development Block Grant. The Plan, as proposed, would be amended to reflect the amendment that the Board made to the Annual Action Plan. Mayor Bush then called for a vote on the motion to adopt the resolution; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, and Bush, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the resolution was declared adopted. Board of Directors Meeting 28 November 6, 2006 at 7:00 p.m.  OTHER BUSINESS 29 Board of Directors Items Director Edwards announced that Hot Springs has recently been awarded the 2006 Arkansas Volunteer Community of the Year Award for Excellence in Volunteerism by the State of Arkansas Division of Volunteerism. On behalf of the Board, he thanked the Volunteer Center and Ms. Rosalind Hudson for submitting the application for this award. He said that he would like to attend the award acceptance ceremony in Little Rock next year. Director Jones stated that Mr. Elmer Beard, representing the NAACP and Pleasant Street, gave an announcement to her from the Pleasant Street and Webb Community Center and thanked the Board for the funding provided for the improvement in their neighborhood, the John L. Webb Community. Director Smith thanked those who served on the Community Development Advisory Committee, pointing out they met for three or four months and were subjected to a lot of criticism. He said he would not want their experience to cloud any other individuals who are considering serving on advisory boards or committees. He also encouraged citizens to vote tomorrow. Director Maruthur reported that in the Thumbs Up/Thumbs Down column in the newspaper, there was a lady complaining about the lack of numbers on commercial businesses and neighborhood homes. She said it is her understanding since the implementation of 911, this is a requirement by ordinance. If residents have a problem, they may call the City Manager at 321-6810, one of the Directors, or Code Compliance. She noted at the present time, there is no one who goes out and reports all of these. She encouraged all of the Board Members if they come across homes or businesses without numbers, to report them. Also, if street lights are out, citizens may call 1-800-ENTERGY. If anyone sees a code violation on the weekend, such as signs on telephone poles, problems with dogs, etc., they may call 617-0916. There is a program called AAround the Corner,@ and motorists are encouraged to call 321-6861 if they have trouble seeing around a corner because of vegetation that has not been cut. She reported that the holly bushes at Orange and Ouachita need to be cut. She expressed appreciation to all of the members of CDAC and suggested that the Board be careful with some of the selection process and get everything straight when the Board starts these commissions or committees because she found out a lot of information after Board of Directors Meeting 29 November 6, 2006 at 7:00 p.m. the fact. She said she would have mentioned it prior to the voting had she known. She stated that any committee that will meet three times in one week and take the criticism they took, really deserves a lot of credit; and she agreed with Director Smith that it should not discourage anyone from applying again. Director Edwards reported that limbs are scraping the City bus traveling on Woodall Circle and need to be trimmed. 30 City Manager=s Report City Manager Kent Myers gave the following report: 1. There is a problem throughout the community with lack of street numbers on commercial establishments. The Fire Department has offered to take an assertive approach to that over the next couple of months and will be forming a team to go into the commercial areas and inform the businesses of the requirement. 2. There will be a delegation in town this week from Hanamaki, Japan. He thanked all the Board Members and local businesses that are getting involved in welcoming that delegation. There will be a number of community events, receptions, etc. This is one of a large number of delegations that will be visiting Hot Springs over the next year. He received word today from Madeline Bull, Sister City Coordinator, that there will be a television crew following the delegations around for the next year from Fountain Lake East Lab. They have taken this on as a project and are going to record an actual movie on the Hanamaki experience. 3. The Farmer=s Market has completed its season, and he expressed appreciation to Ms. Terry Payne, Public Information Officer; Ms. Cynthia Keheley; all of the Farmer=s Market volunteers, and the Board Members who showed up on the last day of the market. He thanked Directors Smith, Maruthur and Jones who provided some of the entertainment. He also thanked all of the farmers and the participants in the Farmer=s Market. 4. On November 20, 12 noon, the City will be hosting a luncheon with the Legislative Delegation at the Embassy Suites to prepare for the upcoming session of the General Assembly that starts in January. At 5 p.m., prior to the Board Meeting, the Board will have the first budget meeting. Board of Directors Meeting 30 November 6, 2006 at 7:00 p.m.  5. On the Consent Agenda, the Board approved several appointees to the Beautification Commission (Donna Leach, Gene Larson, and Rebeccah Tromater); there was a donation of $5,000 from the Beautification Commission for the construction of an information kiosk at Entergy Park. Director Maruthur announced the members who served on the Community Development Advisory Committee: Velda Holmes, Casey Jones, Stevie Spargo, Cheryl Batts, Jay Binns, Terry Holstine, and Charles Smith. Mayor Bush encouraged citizens to vote tomorrow. 31 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 9:15 p.m., to meet again on Monday, November 20, 2006, at 7:00 p.m. ATTEST:______________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 31 November 6, 2006 at 7:00 p.m.