Board of Directors

MINUTES BOARD OF DIRECTORS MEETING DECEMBER 18, 2006, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, December 18, 2006, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Mr. Dan Lewin, 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 Jones, duly seconded by Director Edwards, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of December 4, 2006 Board Meeting A motion was made by Director Edwards, duly seconded by Director Weatherford, that the minutes of the December 4, 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 cards and prayers throughout the year. 5 Acknowledgment of Financial Statements for April 2005 through October 2006 Mayor Bush announced that the Financial Statements for April 2005 through October 2006 are on file in the Finance Department and City Treasurer=s Office. CONSENT AGENDA The Consent Agenda consisted of the following: 6 Public Safety Report (December 6, 2006). 7 Board Meeting Schedule (January thru June 2007). 8 Proposed Resolution No. R-06-388 Approving Certain Bid Award (a) Manhole Frames/Covers - Public Works [annual supply contract awarded to Deeter Foundry]; (b) Petroleum Products - Fleet [annual supply contract awarded to Wacaster Oil and Quality Petroleum]; (c) Fernco Pipe Couplings - Utilities [annual supply contract awarded to Arkansas Water Products]; (d) Meter Boxes - Utilities [annual supply contract awarded to Consolidated Pipe]; and (e) Asbestos Service - Code Compliance [annual supply contract awarded to A.C.E.S. Inc.]. 9 Proposed Resolution No. RB06-389 Extending an Agreement with Family Medicine Clinic for Physical Exams for Uniformed Police and Fire Employees and Applicants of the City of Hot Springs, Arkansas. 10 Proposed Resolution No. R-06-390 Extending a Contract for Healthscope Benefits/Cornerstone Benefits (Formerly JMR Life and Health) as Third-Party Administrator/Agent for the City of Hot Springs Self-Funded Employee Group Health Insurance Program. 11 Proposed Resolution No. R-06-391 Approving an Agreement with First Transit, Inc., for the Transit Consulting Services. Board of Directors Meeting 2 December 18, 2006 at 7:00 P.M. 12 Proposed Resolution No. R-06-392 Approving a Street Name Change from Communications Court to Aviation Court. 13 Proposed Resolution No. R-06-393 Authorizing the Mayor to Execute a Lease Agreement Between the City and Airborne Flying Service for Hangar A-1 at the Airport. A motion was made by Director Jones, duly seconded by Director Edwards, that the Consent Agenda be approved; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. NEW BUSINESS 14 Claim from Ms. Betty Baerg for Damages from Wastewater Backup at 212 Glover Mr. Don Cochran, Director of Utilities, advised this is a resubmittal of a claim from the Baerg=s as a result of a wastewater backup from the City=s line to their property at 212 Glover; and they are requesting additional reimbursement for damages in the amount of $4,237.95. The wastewater backup occurred on February 18, 2006; and the City responded by cleaning out the sewer main. The City paid for cleaning the house in the amount of $5,289.15, along with cleaning the heating and air system, which was $750, and replacing laminated flooring in the amount of $2,304. He stated the total expenses paid by the City at this time are $8,343.15. In April 2006, the Baerg=s submitted a request for additional expenses, totaling $4,645, which was denied because the timeframe exceeded the six-month window; therefore, they are returning after six months and resubmitting their claim ($4,237.95), which is for additional cleaning to the house, mold removal, and painting some of the bathrooms. Staff=s position is that although their damage was the result of the sewer main backing up, the damage would not have been as severe or as extensive if they would have had a proper clean-out on their plumbing outside of the house, which is required by the City code; or if their tenant had called the City in a timely manner, then Utilities Department could have cleaned the main sooner; and the damage would not have been as severe. Director Maruthur asked if there was an overflow valve, and Mr. Cochran advised there was no clean-out on the outside of the house. He added if there had been, the Board of Directors Meeting 3 December 18, 2006 at 7:00 P.M. plumber could have unscrewed the cap and relieved it at that time; but it went into the house. Director Edwards asked if he advised the owners about the overflow valve when this first started, and Mr. Cochran advised that he did. He noted this is the third time it has been to the Board. Ms. Betty Baerg, 129 Green Ridge Lane, said this is a request for reimbursement for repairs that occurred after the sewer backed up into their house at 212 Glover on February 18, 2006. She said the City had responded to the need and invested considerable time and material in cleaning up the house and repairing damage, as well as providing a place to stay for the renters, and acknowledging the City=s responsibility. She reported when the City employees were preparing to close up the repair in the bathroom and walk-in closet without removing sewage-drenched insulation under the raised floor and in the lower part of the walls, she requested action be taken regarding the insulation because of the health hazard. She advised at that point, the City employees determined they would cease their clean-up and repair because they had already exceeded the amount allowed that particular department without obtaining further approval from the Board of Directors, which was also indicated by the letter she received from City Attorney Brian Albright, dated March 2, 2006. She said when she requested the funds to complete the repairs from the Board of Directors in April 2006, they were not prepared to do this without further information; and she was told she would have to wait the six-month regulatory period before returning. She stated she proceeded to complete those repairs to restore the house to its condition prior to having been flooded by the city sewer. Subsequent mold testing, following removal of contaminated insulation, was up to standard. She said she is requesting $4,221 for the remaining clean-up and repair incurred on this house as a result of the sewer back-up. She reported that she received three quotes, and chose the one that was the least. She pointed out that her house was flooded from a sewer pipe 13 inches in diameter coming up into the house; and in talking with several plumbers, the clean-out, which she did not know they were to have, would not have taken care of it. Director Edwards asked if there is anyone in the house at the present time, and Ms. Baerg said there was since it is rented. Director Maruthur questioned if there was an insurance claim, and Ms. Baerg replied there was not. She noted that she checked with her insurance company, and they informed her they were not responsible for the sewer coming up into the house from the City. Board of Directors Meeting 4 December 18, 2006 at 7:00 P.M.  Mr. Lynn Baerg, 129 Green Ridge Lane, stated he stopped the repairs and asked as they were about to close up that area of the house for them not to do so without first removing the contaminated sewage. When that request was made, the City decided to stop the continuation of the repair. He asked how much further in the repair process was the City prepared to go leaving the sewage contaminated insulation in the house at that time. Mr. Cochran stated there was another $1,500 left to spend on installing the laminated flooring. When they got into a storage room that was next to one of the bathrooms, the Baerg=s requested the City employees remove the sheetrock that had gotten wet, which was about a foot off the floor. When the City crews took that out, they discovered the insulation had gotten wet; and the Baerg=s requested they pull up that flooring. He noted he had already spent about $8,000 and was not comfortable with going any further without coming back to the Board and getting approval. Mr. Baerg said this is an older house, and the arrangement of the sewage line was within code at the time the house was built. He asked if that was a factor to be considered, and Mayor Bush said that would be left to the discretion of the Board. Director Maruthur said in regard to whether this house is up to code or not and the age of the home, there have been many discussions about the clean-out valves on television; and she did not believe that is related to the age of the home. A motion was made by Director Jones, duly seconded by Director Maruthur, to approve the claim in the amount of $4,237.95; and upon roll call, the following voted Aaye@: Director Jones. Voting Ano@: Directors Maruthur, Smith, Weatherford, Edwards, Daniel, and Bush, total 6; motion failed. 15 Proposed Resolution No. R-06-287 A resolution entitled, AA RESOLUTION APPROVING THE EXTENSION OF HOT SPRINGS MUNICIPAL WATER SERVICE FOR TWELVE UNITS OF THE LAKESIDE GARDEN CONDOMINIUMS LOCATED AT 5201 ALBERT PIKE ROAD,@ was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Don Cochran, Director of Utilities, advised that on January 23, 2006, the Board approved water service extension to Lakeside Garden Board of Directors Meeting 5 December 18, 2006 at 7:00 P.M. Condominiums with the condition that only one water meter would be set for construction purposes only until the development received the proper operating permits from state regulatory agencies from the development=s wastewater treatment facility. The development is to have its own wastewater plant on-site. At this time, they have not received an operating permit; but it is his understanding they have received approval from the State Health Department to use the wastewater plant as a holding tank until July 1, 2007. If at that time the developer has not received an operating permit for the wastewater treatment facility, then the developer is to have plans and specifications submitted to the Health Department to construct a lift station and a force main designed to deliver the wastewater back to the City=s wastewater system. The Health Department, with their approval, has said they would allow 12 units to be able to discharge into this holding tank. The developer first submitted a request to the Board for three water meters because they have three condos they are asking to close on, but now they have amended that and have asked for 12 units, which is the number of units in Building AA.@ The Board has three alternatives: (1) leave Resolution 6106 of the original resolution as is, which says the City will not set water meters until they have approval for their wastewater plant; (2) approve the three water meters for the three condos they are trying to close on now; or (3) proceed and grant them 12 water meters for Building AA,@ which is the number of units they have at that location. He noted this development is very near a popular swimming area on Lake Hamilton, known as the Sand Bar; and if the wastewater plant is permitted, it will discharge as treated wastewater near this location. This may result in some considerable opposition from residents in that area or people who use that area for swimming. Director Daniel said when talking about discharging into the lake, the Health Department will not allow that and will make sure the system is safe. Mr. Cochran advised that as far as discharging into the lake, that is regulated by the Arkansas Department of Environmental Quality; and it would have to meet all of their requirements before they would be allowed to discharge into the lake. It would then have to be routinely monitored thereafter on a monthly basis. Director Daniel asked if it could cause a health risk to the swimming area, and Mr. Cochran advised that it could only if the plants malfunctions or ever becomes overwhelmed. Director Maruthur commented if this was permitted, ADEQ has given them until June 1, 2007; and Mr. Cochran advised that the Health Department has given them until June 1, 2007 to use it as a holding tank. Director Maruthur said when she spoke to the City Attorney, he was concerned if they did not comply by June 1, the City would have Board of Directors Meeting 6 December 18, 2006 at 7:00 P.M. to turn off the water. Mr. Cochran stated if they do not comply by June 1 and they submit their plans and specifications to the Health Department to build the lift station and pipeline, then it would be another six months before that could be completed. He added if they do not get an operating permit for their treatment plant, it could be 12 months of hauling wastewater and pumping before a lift station and pipeline are put into place. Director Maruthur commented that the remedy for that would be to cut off the water, and Mr. Cochran replied if they do not do either one, then the City would be placed in a position where it would have to cut off the water because there would be no place for the wastewater to go. Director Maruthur pointed out if the City were to agree with this and they did not comply with the Health Department, the City could be placed in a position where it would appear the City was doing the wrong thing, and Mr. Cochran replied that is very possible. Director Maruthur asked if there could be a clause added that would require that the developer sell the condominiums contingent upon the requirements of the Health Department and have them sign it; and if they do not comply, the City will turn off the water because it is what the City would have to do. City Attorney Brian Albright advised that the developer has attempted to handle that type of a contingency through the master deed and bylaws of the Horizontal Property Regime at that development by requiring any owner of any property to join with them in any petitions that may have to be signed in order to hook up to a sanitary wastewater system. However, they would be required to do that; but the issue becomes whether or not there is truly something to hook up to. At that point, the City would be dealing with possibly owners of condominiums that are different than that of the developer; and the City could not engage in a contract with the developer that would be binding on a property owner. If the Health Department is saying it is not a sanitary system and must be shut down, the City would need to follow suit and shut down the water service as well. Director Maruthur asked what he would recommend, and City Attorney Brian Albright said that he would not let this hinder the Board=s allowing some connections. He stated the number of connections the Board is inclined to grant would be an issue for the Board=s judgment. Board of Directors Meeting 7 December 18, 2006 at 7:00 P.M.  Mr. Don Cochran stated when a customer is signed up on a water meter, there is a service agreement for that individual person who is living at that address and will not be with the developer. Therefore, if the City has to disconnect their water because they have no place for the wastewater to go, then the City has an issue with that individual customer; and the developer is outside of that agreement. Director Maruthur pointed that these units have not yet been sold, Mr. Cochran replied that three have been sold. Mr. Jim Alford, 106 Waters Edge Cove, engineer, stated that no units have been sold; but they are ready for sale pending the Board=s action. He noted there are two buildings rather than one building. He stated there is a letter from the Arkansas Department of Pollution Control and Ecology which grants this same permission to use the sewage treatment plant as a holding basin until such time as the NPDES permit is issued. On the basis of Resolution 6106 of January 2006, they have complied with this by securing the permission of the two state agencies that have ultimate jurisdiction over this matter but regrets that it has taken this long. He reported they had about a five-month dead time with ADEQ in which they were unable to get action from them. Otherwise, they would have already had the permit issued. He apologized that they had to withdraw their request two weeks ago because they did not have the final negotiations with the Health Department in time to put the agreement before the Board. He said they believe they now have the agreement of the Health Department and ADEQ to operate this plant as a holding basin until the final NPDES permit is issued. With regard to that permit, it has been advertised. The comment period would expire shortly after the first of the year, and there will likely be comments. However, the decision as to whether or not this permit will finally be issued is entirely in the hands of ADEQ. Once that permit is issued, then the Health Department=s action reverts strictly to whether or not it can be operated in a sanitary manner to meet the health laws and conditions of the State. He said the development would at that point begin to discharge directly and so long as they meet ADEQ=s operating criteria, then they would continue. The conditions that have been imposed on the plant say they will have to inspect the plant daily and sample it twice a month. There are ample safety guards built in to those approvals to assure that the plant is operated and to assure that the City will not be placed in a position to have to deal with the individual customers. Director Smith asked that he clarify the five-month Adead time@ with ADEQ, and Mr. Alford explained they had Health Department approval for this entire process in March 2006 but did not get the construction permit until September 2006. As they dealt with ADEQ, they said they will get to it, but it took them a while. Board of Directors Meeting 8 December 18, 2006 at 7:00 P.M.  Director Weatherford pointed out that according to Resolution No. 6106, adopted January 23, 2006, it says Aprovided, however, that permanent water service, other than a construction meter, shall not be provided to said condominium project unless and until approval and all applicable permits for a wastewater treatment system have been obtained from ADEQ,@ and questioned if they had that. Mr. Alford said it is their opinion that these two agreements with the Health Department and ADEQ constitute necessary approval. City Attorney Brian Albright asked how many total units are in the project, and Mr. Alford said the total build-out right now is estimated at 58 units. City Attorney Brian Albright asked how many connections did he think that Resolution No. 6106 provided for, and Mr. Alford replied that he thought it was 58. City Attorney Brian Albright said his only problem with his analysis that they have fulfilled that is that the letter from the Department of Health says no more than 12. He pointed out this is just temporary, and Mr. Alford replied that it is. City Attorney Brian Albright mentioned that it is referred to as a temporary waiver, not any kind of a permit. City Manager Kent Myers added that it says permanent water service and questioned how they can get permanent water service if they just have a temporary wastewater solution. He added that ADEQ has given them a temporary permit for six months, which does not mean they have permanent water service but have it for only six months. Mr. Alford commented that it says if they do not have the permanent permit in six months, that they will build a connection to the City=s system in the next six months. City Manager Kent Myers pointed out that is not permanent. Mr. Alford noted that the connection to the City would be permanent, and City Manager Kent Myers said it would not be permanent if they have not met that June or December deadline. Director Weatherford questioned who says the City will extend them sewer service. He added it has to come back to the Board for approval. Mr. Alford said that is not in the resolution on the table tonight. He quoted from a letter from Mr. Ray Jones, with K&S Development, stating Asince we are under a potential deadline to make a connection to the regional sewer system in the event we are unable to secure the NPDES permit that is now being advertised, please consider and authorize such connection at some future date depending on conditions imposed by the Health Department.@ He said if they were able to secure the water meters, they would also be asking for permission at some point in the future should the NPDES permit not be issued to connect to the City. He commented they ultimately would connect to the City Board of Directors Meeting 9 December 18, 2006 at 7:00 P.M.  with the City=s permission. He mentioned the time frame is the only thing at the present time they do not know. City Attorney Brian Albright asked how many buildings they have under construction at the present time, and Mr. Alford said it is two buildings. He added Building AA@ is finished and ready for occupancy, and Building AB@ is about 85 percent finished. Director Daniel said he realizes they have three contracts, and he would like to amend the resolution. Director Weatherford pointed out that he does not have any sold. Mr. Alford added there are contracts pending for closure. City Attorney Brian Albright advised that he has talked to the title company, and there are three that are ready to close pending the outcome of this action. There are six per building, and Building AA@ has six units and is the one that has the three that are under contract. A motion was made by Director Daniel, duly seconded by Director Jones, to amend the resolution by allowing only three. Upon discussion, Director Maruthur commented that based upon comments by the City Manager and City Attorney, even with the papers they have and with no plans for the O.P., she believes it is just opening the door. Director Weatherford pointed out they have been working on some type of waste disposal for 11 months, and they should be able to do that within 11 months if they were serious about it. He stated they have not done it, and he cannot see the City extending water to them after they have not taken care of this in 11 months. Mayor Bush then called for a vote on the amendment; and upon roll call, the following voted Aaye@: Directors Jones, Edwards, and Daniel, total 3. Voting Ano@: Directors Smith, Weatherford, Maruthur, and Bush, total 4; motion failed. Ms. Katrina Heath, 411 Lakeland Drive, representative of K&S Development, said they are petitioning this act today as a temporary measure only in order to support those who are relying on them to come through. She stated one particular individual retired from her job, moved everything she has, and is now waiting for her water to be turned on to move into her home at Lakeside Gardens. She pointed out they have had unexpected delays beginning with the previous Director of Planning=s position not requiring approval for their condominium plans, which changed after they had already begun their development in January 2006. She urged the Board to determine the Board of Directors Meeting 10 December 18, 2006 at 7:00 P.M. necessary approvals are in place in accordance with Resolution No. 6106, the conditions, and authorize the setting of 12 domestic water meters for existing units only. She noted the respective State agencies have imposed and will monitor any conditions and limitations; and not only are they willing to comply with these conditions as the developer, but they bound the condominium owners of this project to comply with this in their master deed. City Manager Kent Myers said that today he received two e-mail messages from citizens requesting that he read their comments into the record. Ms. Karen Galia, 214 Oakridge, asked that the Board consider the consequences of passing the above item on tonight=s meeting agenda stating that she feels the construction of the wastewater treatment plant does not have enough hard facts and planning in place to support letting this treatment facility operate on a temporary, as well as on a limited occupancy time frame. Also, she believes the developer should have more planning in place and would like to see the developer hook into the City=s services and pipe the sewage away from the lake. Also, Mr. Tim McCue, 124 Oakridge, who has lived at this address for 20 years on Lake Hamilton across the lake from 5201 Albert Pike Road where they are building the condos, stated the 29-year old sewage plant the developer wants an operating permit for is of great concern to all the surrounding community residents that live, fish and swim right there. He questioned what legal action the community needs to take to stop the City from granting the operation of a 29-year old sewage treatment plant that could possibly damage the community=s beautiful environment. Their community would like the City to consider not granting this permit and require the developer to spend the additional finances in tying to the main sewage system that exists to potentially prevent an environmental accident waiting to happen if the City decides to grant the operational sewage treatment facility permit. If the City grants the first operational permit for a sewage treatment plant of this nature in this area, he questioned how many others will follow. He noted there is also a tremendous amount of other land being cleared in this area with many other developers looking for an excuse to make a case based on the first operational permit for a sewage treatment plant of this nature being granted. Mayor Bush recommended that citizens attend the Board Meetings in person and does not think that e-mails should be read at the Board Meetings because individuals cannot be questioned. Director Jones said that she does not want to see the Board turn people away from the City because of some water. Board of Directors Meeting 11 December 18, 2006 at 7:00 P.M.  Director Weatherford pointed out that the Board approved water for this development 11 months ago, and there were some restrictions for them to be able to get water when it was time. However, they have not met those restrictions. Director Jones commented that the City is penalizing the people who are wanting to move in there, and Director Weatherford pointed out it is only because those people sold them those units knowing they did not have water. Director Weatherford asked when they moved the treatment plant, and Mr. Alford replied that it was in August; but they were waiting on a construction permit. He pointed out ADEQ issues three permits: (1) a notice to build; (2) construction permit; and (3) operating permit. He said in the number of years this NPDES has been operating under EPA, there has never been a permit denied for operation after the construction permit was issued. He said they have a construction permit and have every reason to believe they will be issued an operating permit. Director Maruthur said she agreed with Mr. Alford; however, in this case, the City is risking the welfare of the lake and is looking at the liability or the action that the City would have to take to shut off the water to these people who would live in the units that they would sell. Mayor Bush then called for a vote on the motion to adopt the resolution; and upon roll call, the following voted Aaye@: Directors Edwards, Daniel, Jones, and Bush, total 4. Voting Ano@: Directors Smith, Weatherford, and Maruthur, total 3; motion carried. Whereupon the resolution was declared adopted. 16 Proposed Ordinance No. O-06-107 An ordinance entitled, AAN ORDINANCE GRANTING A FRANCHISE FOR THE OPERATION OF FOOD SERVICE VENDING CART IN HILL WHEATLEY PLAZA TO JEANNE MASOT, D.B.A. HOT DOGS WILL TRAVEL,@ was taken from the agenda for consideration. A motion was made by Director Jones, 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 Jones, duly seconded by Director Edwards, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Board of Directors Meeting 12 December 18, 2006 at 7:00 P.M. Maruthur and Jones, total 2. Voting Ano@: Directors Weatherford, Edwards, Daniel, Smith, and Bush, total 5; motion failed. Whereupon the ordinance was declared failed. 17 Proposed Ordinance No. O-06-108 An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 3109 BY PERMITTING THE DISCHARGE OF CERTAIN DRAIN WATER FROM HISTORIC BUILDINGS INTO THE SANITARY SEWER SYSTEM,@ was taken from the agenda for consideration. A motion was made by Director Jones, 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 Jones, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Mr. Don Cochran, Director of Utilities, explained that staff received a request from Taylor/Kempkes Architects requesting that the developer for the National Baptist Hotel renovation be allowed to discharge air conditioning condensation water into the City=s wastewater system through their sanitary sewer plumbing in the building. The City=s Sewer Use Ordinance did not allow this; and when they brought this to the Board at the previous meeting, staff was given direction to amend the ordinance to allow uncontaminated cooling water to be discharged into a sanitary sewer for historical buildings. Mr. Ray Owen, Jr., 110 Leigh Circle, said he supports this ordinance and is working with the Woodman Building, LLC to get this built. He stated this is an excellent way to handle this matter and requested that the Board consider adopting this ordinance. 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. 18 Proposed Ordinance No. O-06-109 Board of Directors Meeting 13 December 18, 2006 at 7:00 P.M.  An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 5200 BY APPROVING CERTAIN DELETIONS FROM THE UTILITY WATER AND WASTEWATER CONSTRUCTION STANDARDS AND SPECIFICATIONS MANUAL,@ was taken from the agenda for consideration. A motion was made by Director Smith, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Edwards, duly seconded by Director Weatherford, that the ordinance be passed as read. Upon discussion, Mr. Don Cochran, Utilities Director, advised that on August 21, 2006, staff recommended that the Board approve some additions to the Utility Constructions Standards and Specifications Manual. One of the amendments required a sewer backflow prevention device be installed on all new sewer services coming from residences or businesses. Staff has recently received a letter from the State Plumbing Inspector, Ed Cornell, requesting that the City remove this requirement. He said it appears, according to Mr. Cornell, this conflicts with the State Plumbing Code in that the State Plumbing Code requires that there are no obstructions in the sanitary sewer lateral, and he defines a backflow device as being an obstruction. Director Maruthur asked that he describe the backflow device, and Mr. Cochran explained this is a flat valve which allows the water to flow out; but if the sewer backs up in the City=s sewer line, it cannot back up into the home. According to the State Plumbing Inspector, these are required in situations where the customer=s floor of their residence is lower than the receiving sewer so they do have the possibility that can happen, but that is the only place he recommends they be installed, which was already in the City=s ordinance. Director Maruthur questioned if the Board has the ability to vote to require them even though the State Plumbing Inspector is recommending these devices are not required, and Mr. Cochran replied that the City can make its Plumbing Code or standards stronger than what the State Code is. Director Maruthur asked if this would have helped the Baerg=s, and Mr. Cochran advised that it would have prevented that back-up from happening in their home if they had one of these in place. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, Board of Directors Meeting 14 December 18, 2006 at 7:00 P.M. total 6. Voting Ano@: Director Maruthur; motion carried. Whereupon the ordinance was declared passed. 19 Proposed Ordinance No. O-06-110 An ordinance entitled, AAN ORDINANCE LEVYING A SUPPLEMENTAL ANNUAL ASSESSMENT FOR CENTRAL BUSINESS IMPROVEMENT DISTRICT NO. 2 OF THE CITY OF HOT SPRINGS, ARKANSAS, FOR 2007,@ 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 Daniel, 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, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 20 Proposed Ordinance No. O-06-111 An ordinance entitled, AAN ORDINANCE LEVYING A SUPPLEMENTAL ANNUAL ASSESSMENT FOR CENTRAL BUSINESS IMPROVEMENT DISTRICT NO. 3 OF THE CITY OF HOT SPRINGS, ARKANSAS, FOR 2007,@ was taken from the agenda for consideration. A motion was made by Director Daniel, 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 Jones, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 21 Proposed Ordinance No. O-06-112 Board of Directors Meeting 15 December 18, 2006 at 7:00 P.M.  An ordinance entitled, AAN ORDINANCE NAMING AND ACCEPTING A CERTAIN ALLEY (CRAIGHEAD ALY) AS A PUBLIC ALLEY; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Edwards, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon 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, Mr. Steve Mallett, Public Works Director, explained there is an existing alley behind Craighead Laundry Services used primarily by Craighead Laundry. It is a public, dedicated right-of-way but is not accepted or named by the City, and staff would like to accept this alley in the event someone develops on the corner property and would like to use that as ingress and egress into the property. He noted this would allow the City to add signage or enforce no parking if someone were blocking the alley. Director Maruthur said she has always seen it as Aly, but the recommendation mentions Alley and questioned which is correct. Mr. Mallett advised that the proper way it is placed on the maps is Aly. City Attorney Brian Albright asked if it is going to be considered by the Public Safety Committee to determine whether it will be a two-way or one-way alley. Mr. Mallett stated if there is any change in direction or need signage, it will be discussed by the Public Safety Committee. Director Edwards stated when coming out of the parking lot, motorists should have a choice of which way to turn; and in his opinion, it poses no hazard for anyone. Director Daniel said it is a two-way alley now; and if motorists come out of the south end, they have no choice but to turn right. Mr. Mallett said he is not saying it would be changed, but this would give the City the option to do that if they requested it. Mayor Bush asked who has been maintaining the alley, and Mr. Mallett said it has been a dedicated right-of-way, and the Craighead Laundry is the only one who uses and maintains it. Board of Directors Meeting 16 December 18, 2006 at 7:00 P.M.  Director Smith said he is certain it is one-way coming off Spring Street going down the alley (the north half). Director Daniel asked if it was posted one-way, and was advised that it was. He said that he sees cars come through there in the mornings and turn left to go out on Spring Street. Director Edwards noted that it is not posted coming out of the parking lot. Director Smith said he is sure if motorists are coming down Spring, they are going to make a right on a one-way alley and then coming into the parking lots. He requested that Mr. Mallett check on that. 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. 22 Proposed Ordinance No. O-06-113 An ordinance entitled, AAN ORDINANCE ADOPTING A BUDGET FOR THE CITY OF HOT SPRINGS, ARKANSAS, FOR THE YEAR 2007; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Edwards, duly seconded by Director Weatherford, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Edwards, duly seconded by Director Weatherford, that the ordinance be passed as read. Upon discussion, Director Maruthur stated that as the Board was facing the budget process, she has memos stating the City is in trouble; and the City Manager and Finance Director did some work on it and found $140,000 by doing a lease. She said there was another work session, and the Board began to use up that money. She commented in the meantime, the City was struggling to get the job audit funded and the salary increases for the employees. She stressed that she does not agree with all of the budget; and since the Board votes on this as a block, she cannot vote for the budget because she would like to have seen more for the City employees and see things fiscally more conservative than $31,000 left. She stated after the Board changed a Board of Directors Meeting 17 December 18, 2006 at 7:00 P.M. major item by going to a lease, there was $140,000. However, after the Board reallocated all of the money that it was going to try to save so it would not be so tight, there is now $31,000, which was placed in Board Reserve. She stated she did not agree with that just on the principle because if something were to arise, the City would be Aspread too thin.@ She noted there was a memo stating the City is going to have a real problem. Also, the Board has basically put almost everything back in the budget because of the lease agreements, and that money is going to be used. She asked if this included the Planning and Zoning Land Use Application Fee Schedule, and City Manager Kent Myers advised that it does, as well as the parking meter fees downtown and special permit fees for special permits. Director Maruthur pointed out there is a 300 percent increase for administrative appeals; 400 percent for board and zoning adjustment; conditional use permits have increased from $75 to $475. City Manager Kent Myers clarified that ordinance has not been adopted for those fees, and which will be on the agenda next month. He stated the Board recommended that there be a public meeting, which will be held as part of the Planning Commission meeting. He added that the fees are in the ordinance; and those fees are changed however the Board deems appropriate. However, that ordinance has not been adopted as a result of the Board approving this budget. Director Maruthur commented the City does not know what the sales tax is going to produce, and there are a lot of variables. She stated she did not know if the Board was basing the budget on these large increases, but there are items the Board is allocating money to that she believes it should hold onto. She pointed out the public does not see their work sessions and what is going to be on the record is what the Board votes on as a block. She mentioned there are other parts of the budget she agrees with; but since it is all one vote, she will have to vote against it. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Voting Ano@: Director Maruthur; motion carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 23 Board of Directors Items Director Smith expressed appreciation to the Hot Springs Women of Prayer for their cards. Board of Directors Meeting 18 December 18, 2006 at 7:00 P.M.  Director Maruthur announced that the Managing Editor of The Sentinel-Record, Mr. Floyd Emerson, will be retiring after around 51 years. She stated that a reception was held tonight for Utilities Director Don Cochran, who has resigned and is moving to another state. She also sent well wishes to CDBG Administrator Nelson Self, who will no longer be working for the City. Director Weatherford thanked the Hot Springs Women of Prayer for their cards and extended appreciation to Mr. Don Cochran and wished him success in his new job. He reported that he, Director Jones, and Director Smith attended the National League of Cities Conference in Reno, Nevada. He attended several seminars on low-income housing and a meeting on stormwater. He and Director Jones attended a seminar on small-town tourism, and he was asked to return next year and facilitate the meeting in New Orleans, Louisiana. He commended Reno=s transit system, which was very prompt in getting them to their meetings. He brought back information on several items that Hot Springs is currently involved in and will pass it on to the various city departments. 24 City Manager=s Report City Manager Kent Myers gave the following report: 1. Today he received a check in the amount of $6,800 from Oaklawn Park for the first payment on games of skill. He noted that was one of the revenue items where the City was conservative in its projection. He stated if the first check is any indication, then the City will exceed the $100,000 budgeted for Oaklawn revenue for next year. 2. The final plans were received on Friday from the shopping center developer. They plan on being included on the January Planning Commission agenda. Even though it is still in litigation with regard to moving the Garland County Fairgrounds, they want to proceed with getting City approval so when the litigation is resolved, they can start construction as soon as possible. 3. On the Consent Agenda, the Board approved the meeting schedule for the next six months. There will not be meeting on the first Monday of January and has been rescheduled for January 8 and second meeting will be on January 22. There will be a work session with the Planning Commission in the middle of January. Board of Directors Meeting 19 December 18, 2006 at 7:00 P.M.  4. A reception was held for Utilities Director Don Cochran prior to tonight=s meeting. For the next six weeks, there will be some possible reorganization for the Utilities Department; and in the meantime, Mr. Steve Mallett will serve as Utilities Director, as well as Public Works Director. 5. The CDBG offices have moved to the Transportation Depot. 6. Telephone interviews were completed for the Police Chief position this afternoon and the list finalized. The dates for interviews are as follows: January 17 - Interim Police Chief Bobby Southard; January 18 - Police Chief Shawn O=Reilly of Surfside, Florida; January 19 - Former Assistant Police Chief Tom Hoskins of Midwest City, Oklahoma; January 23 - Police Chief David Leonardo of Peoria, Arizona; January 25 - Captain Willie McCoy; January 26 - Lieutenant James Montgomery; and on January 29 - Captain Gary Miller. There will be a public process involved where the general public will be able to meet all seven finalists. Director Maruthur said since the resignation of CDBG Administrator Nelson Self, she has been receiving calls and questioned the time frame; and City Manager Kent Myers replied that January 5 is the deadline to apply for the position, and individuals may contact the Human Resources Department; also, it is online. Director Maruthur stated there are about 39 people who have applied for housing rehabilitation and questioned who they should contact regarding the status of housing rehabilitation. City Manager Kent Myers advised they can contact Planning Director Kathy Sellman or the acting CDBG Director. He added there will be a report on the status of the CDBG Program at the next work session. 25 EXECUTIVE SESSION At this time, a motion was made by Director Weatherford, duly seconded by Director Daniel, that the Board adjourn into executive session; and upon voice vote, the motion unanimously carried. The Board adjourned into executive session at 8:15 p.m. 26 RECONVENE TO OPEN SESSION The Board reconvened into open session at 8:40 p.m. Board of Directors Meeting 20 December 18, 2006 at 7:00 P.M.  Director Maruthur was not present when the Board reconvened. Mayor Bush announced that the Board discussed personnel matters, but no action was taken. 27 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:43 p.m., to meet again on Monday, January 8, 2007, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 21 December 18, 2006 at 7:00 P.M.