Board of Directors

MINUTES BOARD OF DIRECTORS MEETING DECEMBER 4, 2006, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, December 4, 2006, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Ms. Rhonda Counts, and Pledge of Allegiance to the Flag was led by Mayor Bush. Mayor Bush called the meeting to order at 7:00 p.m. 1 Roll Call Roll call was as follows: Present: Directors Peggy Maruthur, Elaine Jones, Steve Smith, Carroll Weatherford, Bill Edwards, Tom Daniel, and Mike Bush, total 7. 2 Approval of Agenda A motion was made by Director Daniel, duly seconded by Director Edwards, that the agenda be approved. Upon discussion, Mayor Bush stated that a request has been made to move Item No. 29 (An Ordinance Permitting Quapaw Community Center to Conduct Business with the City of Hot Springs; Prescribing the Extent of This Authority; and for Other Purposes) to the first item under New Business. City Manager Kent Myers advised that Item No. 26 (Proposed Resolution No. R-06-387 Approving the Extension of Hot Springs Municipal Water Service to Building AA@ of the Lakeside Garden Condominiums Located at 5201 Albert Pike Road) needs to be removed from the agenda since the property owner has requested that action on that item be delayed. Mayor Bush then called for a vote on the motion to approve the agenda, as amended; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of November 20, 2006 Board Meeting A motion was made by Director Edwards, duly seconded by Director Jones, that the minutes of the November 20, 2006 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Director Edwards expressed appreciation to the Hot Springs Women of Prayer for their support during the year. CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (November 22, 2006). 6 Budget Transfer - $11,000 (Software Upgrades - District Court). 7 Proposed Resolution No. R-06-369 Approving Certain Bid Awards (a) Vehicle - Parks [awarded to Landers Ford in the amount of $11,454]; and (b) Property Demolition - Code [reject and rebid]. 8 Proposed Resolution No. R-06-370 Revising the 2006 Airport Fund by Appropriating Funds for the Purchase of Aviation Fuel. 9 Proposed Resolution No. R-06-371 Extending an Agreement with AVFUEL Corporation for the Provision of Aviation Fuels at the Hot Springs Municipal Airport. 10 Proposed Resolution No. R-06-372 Awarding a Contract to Corgill Construction, Inc. for the Manhole Rehabilitation Project. Board of Directors Meeting 2 December 4, 2006 at 7:00 P.M. 11 Proposed Resolution No. R-06-373 Awarding a Contract to Environmental Process Systems for the Ouachita Water Treatment Plant Chlorination System. 12 Proposed Resolution No. R-06-374 Awarding a Contract to Circle P Welding, Inc. For Construction of Highway 7 South I MGD Water Storage Tank and Associated Water Line. 13 Proposed Resolution No. R-06-375 Extending an Agreement with IMWell Health (Formerly Wellcorp, LLC) for Wellness and Disease Management Services. 14 Proposed Resolution No. R-06-376 Extending an Agreement with Delta Dental Plan of Arkansas, Inc. for Group Dental Insurance. 15 Proposed Resolution No. R-06-377 Extending an Agreement with Guardian Life Insurance Company of America for Employee Group Life and AD&D Insurance. 16 Proposed Resolution No. R-06-378 Extending an Agreement with Choicepoint Services, Inc. for the Provision of Drug and Alcohol Testing Services. 17 Proposed Resolution No. R-06-379 Extending a Contract with National Park Community College for Employee Development Training. 18 Proposed Resolution No. R-06-380 Authorizing the Filing of a Grant Application with the Federal Transit Administration, United States Department of Transportation, for Federal Transportation Assistance Authorized by 49 U.S.C. Chapter 53, Title 23 United States Code, and Other Federal Statutes Administered by the Federal Transit Administration. 19 Proposed Resolution No. R-06-381 Revising the 2006 General Fund Budget by Appropriating Funds for the Purchase of a Replacement Vehicle Pursuant to an Insurance Settlement. Board of Directors Meeting 3 December 4, 2006 at 7:00 P.M. 20 Proposed Resolution No. R-06-382 Accepting a Grant from the Arkansas Department of Economic Development (ADED) for Stanley Associates. 21 Proposed Resolution No. R-06-383 Authorizing the Mayor to Execute Addendum No. 1 to Lease Agreement No. 25 with the City of Hot Springs Community Development Block Grant Program. 22 Proposed Resolution No. R-06-384 Extending a Franchise Agreement for the Operation of a Specialty Transit Service (Hot Springs Carriage Company). 23 Proposed Resolution No. R-06-385 Adopting a New Land Use Planning and Zoning Application Fee Schedule; and Repealing Section One of Resolution No. 6239. (Removed from the agenda and referred to staff) 24 Proposed Resolution No. R-06-386 Adopting a Cafeteria Plan Under Section 125 of the Internal Revenue Code of 1986, as Amended. A motion was made by Director Jones, duly seconded by Director Edwards, that the Consent Agenda be approved. Upon discussion, Director Weatherford made a motion, duly seconded by Director Smith, that Item No. 7b (bid award for property demolition) be rejected and rebid; and upon voice vote, the motion unanimously carried. He noted there was a problem where some of the bidders had insurance but did not include that in their bid packet. Director Maruthur requested that Item No. 23 (Proposed Resolution No. R-06-385 Adopting a New Land Use Planning and Zoning Application Fee Schedule; and Repealing Section One of Resolution No. 6239) be removed from the Consent Agenda and considered for separate consideration. Director Daniel made a motion, duly seconded by Director Maruthur, that this item be removed from the agenda and referred back to staff. Upon discussion, Director Maruthur said she would like to see the public included on this item since she had received several telephone calls today. Mayor Bush then called for a vote on the motion to remove this item from the agenda and referred back to staff; and upon voice vote, the motion unanimously carried. Board of Directors Meeting 4 December 4, 2006 at 7:00 P.M.  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. NEW BUSINESS 29 Proposed Ordinance No. O-06-105 An ordinance entitled, AAN ORDINANCE PERMITTING QUAPAW COMMUNITY CENTER TO CONDUCT BUSINESS WITH THE CITY OF HOT SPRINGS; PRESCRIBING THE EXTENT OF THIS AUTHORITY; 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 Daniel, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Ms. Jean Wallace, Parks and Recreation Director, stated this ordinance asks for permission for Parks and Recreation to do business with the Quapaw Community Center to continue an existing indoor soccer program. She stated she has researched several gym locations throughout the area and has chosen the Quapaw Community Center because it is central to the area. Also, the Quapaw Community Center has no other programs occurring at this time, whereby other gyms have ongoing basketball programs. Also, it will cost less money to adapt the smaller gym to their program needs. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Weatherford, Edwards, Daniel, and Bush, total 5. Voting Ano@: Director Jones. Abstaining: Director Smith; motion carried. Whereupon the ordinance was declared passed. 25 Request from Taylor/Kempkes Architects Regarding Wastewater Rate for Discharge of Air Conditioning Condensation Water into the City=s Wastewater System for the Baptist Hotel Renovation Board of Directors Meeting 5 December 4, 2006 at 7:00 P.M.  Mr. Don Cochran, Director of Utilities, advised that a request has been received from Taylor/Kempkes Architects, representing the developer of the National Baptist Hotel renovation, that they be allowed to send the air conditioning condensation water for the 49 apartments and have it discharged into the sanitary sewer plumbing, which would then go to the City=s wastewater system. He mentioned the City=s Sewer Use Ordinance does not allow this and states that no person shall discharge uncontaminated cooling water into the sanitary sewer system. Also, the City does not have a wastewater rate established for collecting and treating these waters. He explained the condensation water would not be metered; therefore, there is no way to calculate how much water would go into the system. He said he has contacted some heating and air conditioning contractors who gave him an estimate; and for the 49 apartments, it would be on the average of 9,000 gallons per month. He stated if the City established a rate using its current rates for that amount of water, it would be approximately $416.28 per year or $34.69 per month. He explained this would require that the Board either waive or amend the Sewer Use Ordinance to allow this, and then staff would return with a recommended wastewater rate. He advised that staff has recommended to the architects two options: (1) either route the air conditioning units into the roof drainage, which would then be discharged to the City=s stormwater system; or (2) install some condensation traps, which is a device where the condensation water could be piped and the device would evaporate the condensation water. He reported the architects have reviewed that and have some concerns that these devices would not handle all of the flow. In his last communication with the architects, they had asked if the City would still consider accepting some of the overflow water into the City=s sewer system should they install these devices. He emphasized that the City would have to have some type of method to bill them for that and would have to amend the Sewer Use Ordinance to allow that to happen. Director Daniel questioned staff=s recommendation, and Mr. Cochran said his recommendation is that they would pipe their condensation water to either their roof drainage or some other method that would take it outside of the building and then be discharged into the stormwater system. He pointed out this is what the City requires from other developers or anyone who is building or remodeling a structure. Mayor Bush questioned why they object to doing that, and Mr. Cochran replied that he believes it has to do with the up-front costs to reroute that plumbing. Mr. Dean Baxter, 660 Hull Avenue, Lewisburg, Tennessee, and 231 Garden, Hot Springs, one of the owners of the National Baptist Hotel, clarified this is not a cost issue. He pointed out this is a historical building; and they are constrained in what they are Board of Directors Meeting 6 December 4, 2006 at 7:00 P.M. able to do because they had to work with the existing room layouts. He stated they had to preserve many of the existing interior features, such as the windows, door trims, etc. Consequently, they have chase areas but are very limited and do not run where the roof drains are, which are on the outside perimeter of the building. He mentioned they have to be finished by the end of this month. He stated what they are requesting was also done by the Clinton Cultural Center, which drains into the City sewer and is the information he received from his architects. Mayor Bush asked if the Clinton Cultural Center drains into the City sewer system; and Mr. Cochran said if they did that, it was done without the City=s permission. Mr. Baxter stated he is ready to purchase the devices that burn off the condensate and is willing to pay for the 9,000 gallons a month output for the year. He pointed out this only deals with air conditioning, but that would only be 9,000 gallons a month during the peak months. However, this time of the year, there would be no output. Mr. Cochran explained that was an annual average and was actually 14,500 gallons during the peak summer months. Therefore, the 9,000 gallons a month was the average for the whole year. Mr. Baxter said they can install meters where the building flows out, which he would be willing to do. He added that it might be better for everyone if they went with an estimate instead of that because they have about four different outlets and would have to have four meters. He advised that a meter is approximately $2,500 and also someone has to read all of them. He said if they cannot find a way to get into the stormwater drain, he does not know how to do it. Mayor Bush asked if there is any other way to measure it other than with a meter. He stressed if it cannot be measured, then he will not support it. Mr. Cochran replied that the estimate he gave Mr. Baxter was an estimate he received from GTS Air Conditioning that does work for the City. Without it being metered, he said there is no way to tell what is going into the sewer system. Director Jones questioned where GTS received the estimate, and Mr. Cochran replied that it was from one of their technicians. He explained that he told the technician the size of the unit, and this was the estimate he gave him. Director Jones stressed that she does not want to see the building not opened because of this. Board of Directors Meeting 7 December 4, 2006 at 7:00 P.M.  Mr. Baxter said that he could get Coleman engineering staff, which is the company that manufactures these units, to give their estimate of what they would produce; and he would pay 12 times that. He added that he can do the meters, but that is problematic on the terms of its cost; and the fact that someone has to read them. Mr. Cochran said in regard to the condensation traps, he called only one company; and they had two different sizes; but there may be larger sizes that he is not aware of. The largest size from the company in Hot Springs would not handle 14,000 gallons per month but would handle most of it. Mayor Bush questioned the cost of the condensation trap, and Mr. Cochran advised that it is $125 for the large unit and $42 for the small unit. Mr. Baxter said he would be glad to buy the large unit, but the problem with that is on a peak month, it probably will not handle the flow. He stated he questioned the possibility of two units if the large unit will not handle it. The problem is that one size and the way they are made really does not work since they cannot be staggered. They have to vent into the plumbing vents because they burn off the steam. He said he would be glad to do that, but his concern is there has to be a mechanism if more goes in than it will handle, it has to go somewhere. Mayor Bush commented since he owns the building, he needs to figure that out. He stressed if it cannot be measured, he cannot support it. Director Daniel asked how long ago he has known this would have to be done, and Mr. Baxter said he has not personally been aware that it was a problem until before the last Board Meeting. He stated that the architect was working with City Manager Kent Myers and Mr. Cochran. City Manager Kent Myers advised that about a month ago, this was brought to the City=s attention; and it was suggested they look into the condensation units. About a week ago, Mr. Baxter said the condensation units were not available. At that time, Mr. Cochran went through the yellow pages, and the first company he called said they had them available. He said that he informed Mr. Baxter where he could purchase them. Director Daniel questioned what would happen in five years if the corporation sells this property and if the City would be able to collect its money. Mr. Baxter Board of Directors Meeting 8 December 4, 2006 at 7:00 P.M. advised that they will prepare a contract with the City that would give the City the right to cut off their water if they did not pay it. City Attorney Brian Albright advised that the problem is that in 2004, the City undertook a large project in trying to set new wastewater treatment rates; and there is a very sophisticated ordinance in place to handle that. He pointed out there is no provision under the City=s ordinance for variances with regard to rates. He said that Mr. Baxter can either evaporate it, which keeps it out of the City=s system and keeps the City from having to treat it, or he gets it into the stormwater drain. Director Daniel asked who would pay for the meters, and Mr. Cochran advised that Mr. Baxter would have to pay for the meters; but at the present time, the City does not have any sewer that is metered. He explained that on metering sewer, which is mostly on large diameter pressure pipes, there is a meter that straps around the outside of the pipe and measures the velocity of the water going through it and takes into consideration the size of the pipe, etc. and that is how the volume is calculated going through the pipe. He said the City would have to come up with some type of meter, and there are four different pipes coming out of the building. He noted it would have to be determined what meter would be able to measure those flows in a smaller diameter pipe, and then either put all of their billing on what comes out of there and forget about what their consumption is on their water meter, or there would have to be two different rates. He stated the City would have to measure what goes in from the water side to what comes out on the sewer side, and the difference between the two is what would be assumed to be the condensation. Director Daniel questioned Mr. Bob Kempkes, architect, when he first became aware of this. He added if there is no way to determine what is going through it, into it, and what it is, it is difficult to support. Mr. Bob Kempkes, 310 Bafanridge, architect, said there is a unique situation in the configuration of the building since it goes out into three different wings. He noted this is in many of historic buildings in town, and there was the same situation at Garland Towers. He pointed out that the City needs to find some type of exception for historic buildings. He stated Garland Towers was able to go to roof drains because they were internal, but many in the National Baptist are external and in the middle of a wall and cannot lower the ceiling; therefore, they cannot get to them. He advised this was first discussed with Mr. Mike Scott, Chief Building Official, whom he met at the building when they first had their mechanical contractor on site and looked at different ways to run the condensation lines. They all agreed the easiest way was to put them in the Board of Directors Meeting 9 December 4, 2006 at 7:00 P.M. sanitary sewer. Mr. Scott asked that he meet with Mr. Cochran, and they looked at different options. He noted there is one storm sewer in that entire block, which is difficult to get to. Mr. Cochran suggested condensate traps, but Mr. Kempkes said he did not believe it would work because they are used in refrigeration systems that do not produce the amounts of condensate they are discussing. He said the largest one Mr. Cochran mentioned will burn off about 14 ounces of condensate an hour, but they are looking at producing around 128 ounces an hour. He advised there are larger systems available, which are typically used to take condensation out of steam water piping. He added it is a good idea but is not feasible for them. He added that it is not going to be this building, but there will be other buildings as time goes along, such as some of the buildings downtown. He said there should be an exception such as is in the Building Code for certified historic structures. Director Weatherford asked if he sprinkled that building, and Mr. Kempkes advised that he did. Director Weatherford questioned if he knew about that code, then why would he not know about this code where he is not allowed to dump it into the sanitary sewer, and Mr. Kempkes said that he did not know about it. He added that most places encourage putting it into the sanitary sewer, and Director Weatherford stressed that Hot Springs does not because that is part of the City=s code. He said that he is not only asking the Board to come up with a rate but asking it to change the City=s code. City Attorney Brian Albright asked if they could channel this water to water the landscaping, and Mr. Kempkes said they could. Also, it could be pumped to a large pit and pump it out. Director Daniel questioned the possibility of a holding tank, and Mr. Kempkes said holding tanks could be used also. He added their problem is not the fact of what they could use the water for, but the problem is they only have limited amounts of vertical chase space because of the configuration of the apartment units. Director Edwards asked if this will prevent them from opening, and Mr. Kempkes replied that it will delay them a substantial amount of time. City Manager Kent Myers asked if their engineer would be willing to certify a certain amount of condensation, which is an option the Board might consider. Mr. Kempkes said that is an issue he and Mr. Cochran discussed and came to an agreement on the amount of wastewater, and that was Mr. Cochran=s recommendation Board of Directors Meeting 10 December 4, 2006 at 7:00 P.M. to the Board. He stated that he believes the formula Mr. Cochran used was accurate and may be excessive. He noted that gallons is the amount they agreed on. City Manager Kent Myers stated that would be $34.69 per month if the Board wants to go that direction. Mayor Bush asked if the City is going to measure this, or if Mr. Cochran is just estimating. Mr. Cochran replied this is an estimate he arrived at when talking to an air conditioning technician, giving him the size of the unit for each apartment. He said the technician gave him what type of flow there would be on the peak summer months. Mr. Kempkes told him he would estimate those air conditioners would run May through September or October, and that is where they arrived at the 9,000 gallons per month. In addition to that, he took into consideration, as with the other sewer customers, a base rate; and he used what he thought would be the equivalent of this much flow as a base rate for a one-inch meter, which is $13.33 a month. He noted that takes care of the first 1,000 gallons, and that base rate is for a debt service the City has to dedicate to paying off loans with the Soil and Water Conservation and those type of agencies. For every 1,000 gallons after that, they would be charged $2.67. That is where he arrived at $34.69 per month or $416.28 per years. In addition to that, they have discussed the wastewater impact fee. If the City allowed them to have this wastewater connection, they would have to be charged a wastewater impact fee for the one-inch meter, which would be approximately $750 (one-time cost). Director Weatherford stressed that the City=s code says they cannot hook to the sanitary sewer and questioned if the Board can approve it. City Attorney Brian Albright advised that the Board would need to amend the ordinance before allowing them do it. He said if the Board were to agree on this issue in principle, then this would be presented at the next Board Meeting. Director Weatherford asked what would happen if that does not pass, and City Attorney Brian Albright advised that they would not be able to connect. Director Weatherford said he does not have a problem amending the ordinance at the next meeting and then setting a rate, but he is not in favor of setting any rate first. He pointed out it has to be written for historic buildings and cannot be written for someone constructing a large building and suddenly realizing they forgot something and want to run it into the sanitary sewer. Board of Directors Meeting 11 December 4, 2006 at 7:00 P.M.  City Attorney Brian Albright pointed out there is no motion on the floor, and if the Board wants to consider this at the next meeting, along with a proposed ordinance change, then the Board could do it at one time. A motion was made by Director Jones, duly seconded by Director Daniel, to table this issue for two weeks and instruct staff to bring back an ordinance; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Director Weatherford said when this ordinance is considered by the Board in two weeks, he wants to know what Mr. Cochran thinks this would add if the City continues doing this to its system for these type of historic buildings. Mr. Cochran advised that would be hard to determine because it depends on how the architect chooses to heat and cool these buildings. In this situation, they have 49 apartments and 49 separate air conditioning units; whereas, some other architect may decide to cool the building with one large air conditioning unit or two. In that case, there would not be this type of problem. Director Weatherford pointed out there is that same type of project now with the Majestic Hotel, which is going to be the same as the Clinton Cultural Center; and those will probably be individually heated and cooled. Mayor Bush said there will have to be more discussion on the revised ordinance, which will be presented in two weeks, not only for this particular building but for those in the future. Mr. Cochran said he will need a definition on what the Board would consider a historical building, and City Manager Kent Myers pointed out that staff can use a state or federal designation on that. 26 Proposed Resolution No. R-06-387 Approving the Extension of Hot Springs Municipal Water Service to Building AA@ of the Lakeside Garden Condominiums Located at 5201 Albert Pike Road. (Removed from Agenda) 27 Proposed Ordinance No. O-06-103 An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 4328 BY REVISING THE SIZE AND TYPE OF LETTERING FOR ADDRESS NUMBERS PLACED ON STRUCTURES WITHIN THE CITY OF HOT SPRINGS,@ was taken from the agenda for consideration. Board of Directors Meeting 12 December 4, 2006 at 7:00 P.M.  A motion was made by Director Daniel, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Jones, duly seconded by Director Maruthur, that the ordinance be passed as read. Upon discussion, Director Maruthur requested that the City Manager give the type and size of the lettering; and City Manager Kent Myers advised that the street address numbers would be arabic numerals only, not less than four inches in height, with a minimum stroke width of 2 inch. Director Edwards questioned if the Fire Department informs businesses of the proper lettering when making inspections, and Fire Chief Ed Davis advised that when the engine companies make inspections on all commercial occupancies in the City, during the first company inspection, they will note that the address is not visible. They will leave a piece of paper that will give the addressee the information regarding the numbering, and they will be given 30 days to remedy the problem. At that time, the Fire Marshall will return; and if they still have not taken any action, they will be given another 30 days. After the 60 days= time period and the person has refused to put the lettering up, they will be cited at that time and will have to appear before the Municipal Judge, who will then order them to install the lettering. Director Maruthur asked if this is for commercial and residential, and Fire Chief Ed Davis said that it is. He added they are going to start this year on commercial and finish it this year and then spread out into some of the other areas. City Manager Kent Myers advised that the City will do a complete public information campaign over the next 30 days, and the first step is to get the ordinances to where they are consistent. The next 30 days, the City will work with the newspaper and media. Director Weatherford said he thought that was one of the reasons in converting to the new billing system and the notice could be placed in the envelope. City Manager Kent Myers replied that the City can use the envelopes for public information campaign. Board of Directors Meeting 13 December 4, 2006 at 7:00 P.M.  Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 28 Proposed Ordinance No. O-06-104 An ordinance entitled, AAN ORDINANCE ACCEPTING THE ANNEXATION OF CERTAIN TERRITORY TO THE CITY OF HOT SPRINGS, ARKANSAS; MAKING SAME A PART OF THE CITY OF HOT SPRINGS; AND ASSIGNING SAME TO DISTRICT,@ was taken from the agenda for consideration. (Bayou Point) A motion was made by Director Weatherford, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Daniel, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Mr. Bob Driggers, #3 Stonegate Heights, spoke in opposition to the annexation of any additional property by the City at this time. He noted from attending a budget meeting this past week, he understands the City is somewhat financially strapped and very concerned that it may not be able to provide all of the services for newly annexed territory; but it is important to give people a reason to want to be a part of the City. He said at the present time, there are many people who do not eat at the restaurants in Hot Springs because of the high tax on the food. He noted there was an article in the newspaper regarding raising the property tax next year, and there was also an article yesterday about fees for applications increasing. He stated the traffic in Hot Springs is getting considerably worse, and the Board is helping to make this a problem rather than doing proper planning to solve it. He stated anyone who comes into the City needs to be aware that the public does not get an opportunity to provide input to the Board because that type of input is often censored and is quite often completely denied. He said that if he had a business like the gentlemen who appeared before the Board tonight, he would think twice about annexing into the City with some of the outrageous requirements that the City is requiring. He noted recently the City is requiring grease traps, for example on pizza restaurants that do not use grease. He also stated that it would be easier to provide people with house numbers rather than taking them to court. Board of Directors Meeting 14 December 4, 2006 at 7:00 P.M.  City Manager Kent Myers pointed out this is a voluntary annexation, and the property owners approached the City and want to be annexed. He stressed there has been no pressure from the City to annex. Deputy City Manager Lance Hudnell added these are two elderly property owners who own three parcels of property at the end of Bayou Point, and they approached the City asking what they need to do to annex into the City. He explained the procedure to them, and they submitted a petition and went through the proper hearings, etc. In reply to Director Edwards, City Manager Kent Myers advised that it is contiguous to the City, and the City is already providing services next door. Therefore, there is no major obligation for the City to extend the services another 100 feet. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 29 Proposed Ordinance No. O-06-105 (Considered as First Item Under New Business) 30 Proposed Ordinance No. O-06-106 An ordinance entitled, AAN ORDINANCE REGULATING TRANSIENT MERCHANTS WITHIN THE CORPORATE LIMITS OF HOT SPRINGS, ARKANSAS,@ 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 voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Jones, duly seconded by Director Weatherford, that the ordinance be passed as read. Upon discussion, Director Maruthur said the ordinance prohibits transient merchants, but there are several who are on Central Avenue. She stated some of them are taco stands, and the City is requiring them to move 200 feet from the highway. Board of Directors Meeting 15 December 4, 2006 at 7:00 P.M.  She noted at the meeting when the Board adopted this, it was stated this was for health reasons. City Attorney Brian Albright advised that it is connected to the health code issues, but there is an exception for seasonal food operation which is not defined as the transient merchant. He explained the seasonal food operation is found under Paragraph Ag,@ which states that any establishment operating on a seasonal basis shall not exceed 150-day period of time per calendar year so they are able to do this as long as they are not there more than 150 days. Director Maruthur said it was stated this is for health reasons, but the City is taking them 200 feet from the highway; and they are still going to be able to operate if they go 200 feet. She commented no one is really protected, and the people who want or need to eat there will still be able to do it. She stressed that she does not agree with this because it will affect the Alittle people,@ and she does not believe it is affecting any of the on-site businesses. She emphasized that she cannot support it. Director Weatherford asked if she objected to the girl who sold sunglasses on Central Avenue several years ago, which was a small business; and Director Maruthur said it has been some time since that happened, and the Board is not talking about anything that deviates from the ordinance. She said when this was first brought up, some of the directors stated it was not fair for people to rent a building, which is required for a business owner to operate within the City, and that is reasonable; but these places primarily serve people who do not have the money to go to other places. Director Weatherford pointed out that the girl with sunglasses was selling the fake Oakley sunglasses where people could not afford to buy the real ones. Director Maruthur commented that it was not an approved use. She stressed that she cannot support changing the ordinance to keep them out for safety reasons. She stated if the Board just does not want them and says that, she has no problem with it. However, it has been presented as if it were going to put an on-site restaurant out of business or hurt their business. She said she has called several places, and they thought it was amusing. She said it is going to hurt the people who are making whatever kind of living they can selling tacos, etc. , and they are renting these places from property owners. She noted the impact is going to be to the property owner who gets some revenue, plus the people who depend on these for food. She stressed that she cannot support it because it is under safety and welfare. Board of Directors Meeting 16 December 4, 2006 at 7:00 P.M.  Director Daniel questioned the total impact of the ordinance as far as the people who come under the 150 days. Deputy City Manager Lance Hudnell explained when the Board originally passed the transient merchant ordinance a number of years ago, at that time in the state code there were some regulations regarding what is a seasonal food operation and what is a food vendor, etc. Although it was the intent of the Board at that time to not allow food vendors, etc., except for the snow-cone type operations, which are the seasonal ones, along the major corridors on a temporary basis. The City was relying on the State Health Department to enforce their regulations but has since become aware that they do not enforce that regulation because of the lack of manpower, etc. so basically this ordinance puts that state language into the City=s ordinance so it can be enforced. At the time the transient merchant ordinance was adopted, the intent was to not have transient merchants on the thoroughfares in the City except for the snow-cone type operations and that is what is defined as a seasonal food operation. It means an establishment operating on a seasonal basis not to exceed 150 calendar days per year, limited to the serving of dispensed drinks, coffee, snow cones, shaved ice and other similar ice-based products. The other things were to be regulated by the State in that they had to move every 14 days, but that did not occur. Therefore, some of these that are supposed to move every 14 days are not moving at all and became more or less permanent under a temporary situation. Now, there are regulations in this that prohibit them. Director Daniel mentioned there are people who are seasonal serving food (one is the crawfish on Higdon) and asked if they fall under the 150 days, and Deputy City Manager Lance Hudnell explained they would be a mobile, retail food establishment selling food so they would not. He added the only ones that qualify for the 150 days are those that deal with drinks, not food preparation. Director Daniel stated if they have been in operation for four or five years and at one time they were checked out through the Health Department and have been serving crawfish, but now if they are not 200 feet off the street, they cannot operate. However, they are only operating 150 days out of the year anyway. Deputy City Manager Lance Hudnell explained that the 150 days does not apply to them either way. He advised there are two licenses they can get from the State Health Department; one license is for a seasonal food operation, which is only for the dispensing of drinks, coffee, snow cones, etc.; and they can operate for 150 days. The other license for a temporary food-type establishment from the State Health Department is a mobile food unit, which has to be an approved trailer or approved concession stand that has hot water, and they have to move every 14 days back to their commissary. He said this assumes they have some other place they go and make their preparations. He stated Board of Directors Meeting 17 December 4, 2006 at 7:00 P.M. it was the intent of the Board many years ago to allow the snow cones but not allow the mobile food vendors. However, the City did not put those regulations in its ordinance because they were in the state law, but these other people came into operation during the last few years. He pointed out the State does not have time to be sure they move, etc., and the City put those regulations back in its ordinance; therefore, it prohibits them. Director Daniel commented that Flossie=s Funnel Cakes is operating in Hill Wheatley Plaza now and will be there for several months. He stated they sell hot dogs, but then they will not be able to operate. Deputy City Manager Lance Hudnell explained there is an exemption for concessions on a short-term basis with special events. He added this ordinance does not deal with special events, the county fair, convention center but deals strictly with people who are setting up a temporary business as a permanent business. He noted that the Board can either allow them or not allow them. Director Daniel stressed that the City needs to regulate them. Director Edwards asked if this affects the stand on Central Avenue next to the service station, and City Manager Kent Myers said that it did. Director Edwards mentioned that the people at the service station do not want them to move. Also, the workers at the race track are glad they are there because it gives them a place to eat. City Manager Kent Myers advised this is an ordinance brought at the Board=s request, noting that six month ago there was a Board work session; and there were three concerns raised by the Board about these operations: (1) they were taking business away from established businesses that had permanent structures; (2) they were in violation of Health Department regulations; and (3) the Board did not think they were esthetically pleasing. He stated if the Board does not want to go this route, then it can vote down the ordinance and go back to allowing the Health Department to enforce their regulations. Director Maruthur said that Director Weatherford had asked her about the girl who sold the sunglasses. She mentioned that years ago, there were problems with transients opening up different businesses. One was a portable zoo, and people were starting to park trucks, open the back of the trucks and lining up around Central Avenue. She stated the sunglasses business could not be an exception because she was doing the same thing they were doing; therefore, the City could not make an exception. Deputy City Manager Lance Hudnell reminded the Board that this is the same ordinance that it passed a month ago. The only exception was at the time staff failed to Board of Directors Meeting 18 December 4, 2006 at 7:00 P.M. include what the Board had requested which was the 200-foot buffer in the definition that was in the marked-up copy. However, it was not in the actual copy passed by the Board, but this is the exact same thing the Board intended to pass a month ago and did in fact pass a month ago. Director Weatherford said the Board would not be voting on this again if he had not called and asked Deputy City Manager Lance Hudnell a question, and he then realized that the 200 feet was omitted from the ordinance. Deputy City Manager Lance Hudnell pointed out if the Board defeats this ordinance, they will not be legal. It will be within one parcel deep as opposed to two parcels deep because the Board has already passed this ordinance. City Attorney Brian Albright stated that the new regulations will not go into effect until April 1, 2007. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Weatherford, Daniel, and Bush, total 5. Voting Ano@: Directors Edwards and Maruthur, total 2; motion carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 31 Board of Directors Items Director Jones announced that the MLK Breakfast is in the planning stages; and on January 13, there will be a business expo which will be part of the Martin Luther King celebration. R.E.G.A.R.D. will have its regular potluck that night at 6 p.m. at Webb Center. Director Weatherford expressed appreciation to the Traffic Services employees for their assistance at the parking deck for the chili cook-off in replacing the lights, putting up the stars, and staying with them all day making sure they had power. Director Edwards thanked the Police Department for enforcing the ordinance on garage sale signs. Director Maruthur reported if street lights are out, citizens may call 1-800-ENTERGY or Public Works at 321-6860. There is a metal tag on a pole (SL Board of Directors Meeting 19 December 4, 2006 at 7:00 P.M. plus four digits), and they need to give the street name and the tag number. If there are any problems with Code violations, there is a weekend telephone no. (617-0916). If there is an obstruction blocking motorists= vision to see around a corner, they may call 321-6861. 32 City Manager=s Report City Manager Kent Myers gave the following report: 1. The Christmas Parade Committee met today and decided there will be a Christmas Parade on Thursday, December 7, at 6:30 p.m., and expressed appreciation to Mr. Jerry Jones for televising it. 2. Mr. Fidel Degado, a representative from the United States Department of Agriculture in Washington D.C. and an architect, is in Hot Springs for the next two days. He travels around the country working with Farmer=s Market groups and is looking at the site at the Transportation Plaza. He will present some drawings and recommendations for a location to build a future Farmers= Market, some funding ideas, and other information. His visit will be concluded tomorrow at 10 a.m. with a public presentation. If the Board is available tomorrow morning, he will make a presentation in the Board Chambers. EXECUTIVE SESSION A motion was made by Director Jones, duly seconded by Director Edwards, that the Board adjourn into executive session to consider the annual evaluation of City Attorney Brian Albright and City Manager Kent Myers; and upon voice vote, the motion unanimously carried. The Board adjourned into executive session at 8:15 p.m. 33 Consider the Annual Evaluation of the City Attorney. 34 Consider the Annual Evaluation of the City Manager. RECONVENE TO OPEN SESSION Board of Directors Meeting 20 December 4, 2006 at 7:00 P.M.  The Board reconvened into open session at 9:00 p.m. 35 Consider Any Action Required as a Result of the Executive Session. Mayor Bush announced that as a result of the executive session, City Manager Kent Myers and City Attorney Brian Albright are to receive a 2.5 percent salary increase, effective January 1, 2007. 36 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 9:10 p.m., to meet again on Monday, December 18, 2006, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 21 December 4, 2006 at 7:00 P.M.