Board of Directors

MINUTES BOARD OF DIRECTORS MEETING FEBRUARY 5, 2007, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, February 5, 2007, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Ms. Gwen Wright, 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 Jones, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of January 22, 2007 Board Meeting A motion was made by Director Jones, duly seconded by Director Maruthur, that the minutes of the January 22, 2007 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Director Edwards recognized the Hot Springs Women of Prayer for their support. CONSENT AGENDA  The Consent Agenda consisted of the following: 5 Public Safety Report (January 24, 2007). 6 Proposed Resolution No. R-07-22 Accepting Certain Bid Awards (a) Vehicle - two compact pickups - Planning/Code [awarded to Landers Ford in the amount of $22,908]; (b) Vehicle - 3/4 ton pickup - Fire [awarded to North Point Ford in the amount of $22,259]; and Pump/Pump Parts - Utilities [awarded to Jack Tyler Engineering in the amount of $31,387.80]. 7 Proposed Resolution No. RB07-23 Authorizing the Filing of a Grant Application with the Federal Emergency Management Agency for 2007 Fire Prevention and Safety Grant. 8 Proposed Resolution No. R-07-24 Amending Resolution No. 6015, as Amended by Resolution No. 5570 (Approving Certain Revisions to Municipal Airport Property Management Policy) by Adopting a New Appendix AK@ (Airport Property Rates). 9 Proposed Resolution No. R-07-25 Revising the 2007 Budget by Appropriating Funds for Certain Prior Year Expenditures. 10 Proposed Resolution No. R-07-26 Authorizing Revisions to the 2006 Budget. 11 Proposed Resolution No. R-07-27 Waiving the Facility Use Fees for the Senior Olympics to be Held at Kimery Park in June 2007 and Other Associated Events at Various City Park Locations in September 2007. 12 Proposed Resolution No. R-07-28 Authorizing Execution of an Easement Between the City of Hot Springs, Arkansas, and Southwestern Bell Telephone, L.P., d.b.a. AT&T Arkansas, Across Certain City-Owned Property in the Hot Springs Office and Technology Park. Board of Directors Meeting 2 February 5, 2007 at 7:00 P.M.  A motion was made by Director Daniel, duly seconded by Director Smith, 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 13 Budget Transfer for 175 Anniversary for the Hot Springs National Park th ($2,500) A motion was made by Director Maruthur, duly seconded by Director Jones, that the budget transfer in the amount of $2,500 for the 175th anniversary for the Hot Springs National Park be approved. Upon discussion, Public Information Officer Terry Payne explained this is a request to transfer $2,500 from the Board of Directors Reserve in order for the City to sponsor a banquet on April 20, at the Arlington Hotel, which will be part of the 175th anniversary celebration of the Hot Springs National Park Service. She added that the Hot Springs Advertising and Promotion Commission and City are participating in this celebration, and the proposal is that the City sponsor the funds for meals for 100 special guests for this dinner. The special guests for this event will be approximately a 25-member delegation from the Sister City, Hanamaki, Japan. The City=s special guests will also include National Park Service officials, Congressional officials, City officials and other special guests, up to 200 additional guests, will be expected to be invited to the event, but they will pay for their expenses. Mayor Bush asked if the National Park Service has an adequate budget to take care of this anniversary; and Ms. Payne advised that the Sister City Coordinator, Ms. Madeline Bull, and City Manager Kent Myers have been attending the meetings. She stated they have a budget for the celebration but have been asking for assistance. Mayor Bush then called for a vote on the motion to approve the budget transfer, in the amount of $2,500, for the 175th anniversary for the National Park ; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Board of Directors Meeting 3 February 5, 2007 at 7:00 P.M. 14 Budget Transfer for Notebook Computers for the Planning Commission Members ($5,000) A motion was made by Director Jones, duly seconded by Director Maruthur, that the budget transfer in the amount of $5,000 for notebook computers for the Planning Commission members be approved. Upon discussion, Ms. Kathy Sellman, Planning and Development Director, stated this is a request to transfer $5,000 for the purchase of notebook computers for the Planning Commission members to study the information provided to them prior to each hearing. She mentioned they have cut the budget for printing, and this expense is less than the amount of money that was cut from the budget for printing and copying. She explained this would allow for oversized documents that they are now reducing in the Planning Commissioners= packets to be read on their laptop computers with far more specificity than they are able to be interpreted today. Director Maruthur stated at the agenda meeting she questioned how many of the Commissioners presently have computers, and Ms. Sellman advised that all of the Commissioners have access to a computer, either at home or their place of business, but not necessarily a computer that is equipped to do this type of work. Mayor Bush then called for a vote on the motion to approve the budget transfer for notebook computers for the Planning Commission Members in the amount of $5,000; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Edwards, Daniel, and Bush, total 5. Voting Ano@: Directors Smith and Weatherford, total 2; motion carried. 15 Special Public Safety Report Allowing Sightseeing Vehicles to Load and Unload at Their Designated Locations on Exchange Street A motion was made by Director Smith, duly seconded by Director Maruthur, to approve the Public Safety Report allowing sightseeing vehicles to load and unload at their designated locations on Exchange Street. Upon discussion, Mr. Don Roberts, #70 Stonegate Shores Drive, owner of National Park Duck Tours, stated on Exchange Street he has three more feet to unload than on Central; and there is less traffic on Exchange Street. He mentioned he has Board of Directors Meeting 4 February 5, 2007 at 7:00 P.M. done this for over 16 years without an incident and requested that the Board approve his request. Ms. Terry Miller, 121 Exchange Street, said she owns a business at this address (Abelard Inn Bed and Breakfast) and opposes this because these parking spaces were in place before she owned the building; and they block her guests from being able to load and unload in front of the business she owns and resides. She commented other businesses that need to load and unload should be given consideration. Director Maruthur asked if there would be any other location where there could be loading and unloading so as not to block Ms. Miller=s business at 121 Exchange. Director Smith stated there are two loading zones at the end before the turn and can be used by anyone. Director Edwards questioned how long it takes to load and unload, and Mr. Roberts replied that any of the licensed sightseeing companies can use them; but they are basically there as a staging area for an extra vehicle because that is the only place they have a place to keep them downtown. He stated they rarely load there but do unload there in the summer when it is congested downtown. He said it takes only a few minutes to unload, but then they leave the vehicle there until they pull it around and down depending on the location where they are loading. Director Maruthur asked if there was another location rather than the bed and breakfast where they could unload, and Mr. Roberts said that he was not aware of any where they could safely get in and out because when they are trying to parallel park between the vehicles and they come up to the edge of Ms. Miller=s property, that was established when the parking deck was opened. He noted it used to be across the street at the parking lot, and there were six or eight spaces; but now it is down to two and is shared between all of the sightseeing companies. Director Maruthur asked if there was any location at any surface near the parking deck, and Mr. Roberts said there would not be at the parking deck because the street narrows down at the parking deck unless they cut across from Mr. Wheatley=s lot and cut into that sidewalk and give ample room to get through there. Director Maruthur questioned if that could be done thereby not obstructing the business, and Mr. Roberts said that would have to be a decision by the City. Board of Directors Meeting 5 February 5, 2007 at 7:00 P.M.  A motion was made by Director Maruthur, duly seconded by Director Smith, to table this item and determine what the cost would be to make another parking space to accommodate both businesses. Upon discussion, Director Daniel pointed out these ducks park on the street at the present time and have loaded and unloaded on Central Avenue for over 30 years. He pointed out he was not aware of another business where the City tries to find a location to park their vehicles all day. He mentioned that Mr. Roberts owns one parking lot and leases another one. He noted for 30 years, they have parked on Central Avenue and loaded and unloaded, and it evidently was not a safety problem. Director Maruthur commented that was before the parking deck was constructed; and at one time, the City was going to make Exchange Street similar to a mall. Director Daniel pointed out at one time those parking spaces were dedicated to motor homes. He said when visitors come into town in motor homes, they noticed the free parking and followed the signs and pulled up to the parking deck but could not park, but they could not park on Exchange Street either because they are reserved for tour vehicles. He stressed there is no place outside of Hill Wheatley Plaza; and when there are special events, that is taking away the tourists altogether who are in motor homes. He stressed that private enterprise needs to find its own location. Director Maruthur said she was concerned about a World War II vehicle blocking iron gates to a bed and breakfast. Mayor Bush then called for a vote on the motion to table the Special Public Safety Report for two meetings; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, and Edwards, total 5. Voting Ano@: Directors Daniel and Bush, total 2; motion carried. 16 Proposed Resolution No. R-07-29 A resolution entitled, AA RESOLUTION AUTHORIZING THE ISSUANCE OF A TEMPORARY CERTIFICATE OF OCCUPANCY FOR A PORTION OF THE WOODMAN BUILDING SENIOR LIVING PROJECT LOCATED AT 501 MALVERN AVENUE,@ was taken from the agenda and read by title only. (Appeal) A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. Board of Directors Meeting 6 February 5, 2007 at 7:00 P.M.  Upon discussion, Ms. Kathy Sellman, Planning and Development Director, advised this is an appeal of the January 17 finding by the Construction Trades Advisory Board meeting as the appeals board set forth in the International Building Code. Their finding was that the true intent of the Code had been correctly interpreted, and the provisions of the Code apply as determined by the Building Official when he denied a Temporary Certificate of Occupancy on December 31, 2006, around midnight. She stated the Appeals Board had no authority to waive the requirements of the Code in making that determination. The Code further provides that recommendations of any advisory committee shall not be final, and all decisions of such committees are recommendations of an advisory nature for final consideration by the Board of Directors. She informed the Board that Mr. Dean Baxter obtained a building permit on July 5, 2006, which was based upon submitted and approved plans for renovation at 501 Malvern (National Baptist Hotel). On the building permit, there is a statement that states a Certificate of Occupancy shall not be issued until all required gas, electrical, mechanical, plumbing and fire protection systems have been inspected for compliance with the technical codes and with other applicable laws and ordinances and released by the Building Official. On the permit, there is a place for each applicant or owner to sign acknowledging that this is the requirement. Mr. Baxter requested a Temporary Certificate of Occupancy on December 31, 2006, which is for the lobby and wing known as the concrete portion of the second and third floors; and they requested a final inspection on December 31, 2006, at approximately midnight. The Building Official observed substantial noncompliance with the fire protection system, the fire alarm system, and the means of egress. The Building Official also observed construction that did not conform to the approved building plans and determined that the Temporary Certificate of Occupancy requirements were not met as of December 31, 2006. As recently as last week, no final inspection has been requested or performed at this address. She said staff is recommending that the Board uphold the Building Official=s determination that as of December 31, 2006, 501 Malvern Avenue (National Baptist Hotel) did not meet the adopted code requirements sufficiently to enable issuance of a Temporary Certificate of Occupancy. Mayor Bush asked that Fire Chief Ed Davis address the fire safety issue, and Fire Chief Ed Davis advised that the Fire Department=s stance on this issue would be much softer if on December 31, 2006, there would have been footings and a slab poured or metal work being done to erect two exterior staircases on the backside of this building; but none of that was being done. He stated there were some conversations with Mr. Jackson and also with his architect, who wanted to use the existing fire escapes. He noted in this situation on a change of occupancy, the Building Official and the Fire Department felt that would be unsuitable. He pointed out the Building Code Board of Directors Meeting 7 February 5, 2007 at 7:00 P.M. allows him the ability, when there is a change of occupancy in a building, to have that building come up to the full requirement for the occupancy change. If this building were being constructed as a new building today, they would not be able to use those fire escapes and would have to use the exterior fire tower or install some type of interior means of egress. At the present time, there is one fire escape that is noncompliant, even if it could be used; and one of the means of egress is completely lacking any type of stairwell. He noted this building will primarily house elderly people, and a good practice would be to have means of egress (stairs) as depicted on the original set of plans that were submitted and approved. Director Edwards said he would like to see it finished but would not jeopardize a life to do that. Fire Chief Ed Davis commented that the Fire Department supports this restoration; and in the past, people have asked him to write letters in support of condemnation of this building. However, he has resisted because of its historic nature; and whatever decision the Board makes, he will abide by that decision. Director Maruthur questioned if a Certificate of Occupancy would be issued if a fire escape were to be built or purchased, and Fire Chief Ed Davis said he would for an external staircase but fire escapes are different. He stated they are composed of very narrow stairwells on exposed, small metal platforms; and there is a substantial area behind this building where external stairwells could easily be placed. He explained he is not saying they have to put in the enclosed external stairwells that are on the original set of plans. He wants them to be able to meet their financial goals, and the Fire Department has no problem with them putting in an external metal set of stairs. He said he wants this to be done as cost-effectively as possible and still allow the occupants of the building to be able to exit the building safely. He stated fire escapes, especially for the older population, are very difficult to navigate. He mentioned when the Fire Department saw the original set of plans and there were external staircases, the Fire Department could easily give its approval and did so. He said to have at the late stage of this project someone come back and say they want to use the fire escapes is rather problematic. He advised that the sprinkler and fire alarm systems at the building are 100 percent and have been installed well and have been passed. Director Maruthur questioned if all he was requesting is the construction of an external stairwell, and Fire Chief Ed Davis said he is requesting two external stairwells and will then issue a Certificate of Occupancy. Board of Directors Meeting 8 February 5, 2007 at 7:00 P.M.  Mr. Mike Scott, Chief Building Official, advised that Fire Chief Ed Davis referred to the two external stairwells, which is one of the requirements; but he also has other ones (electrical final, plumbing final, heat and air final, and mechanical systems). He said that he was at the building on December 31, 2006; and the owner asked for a Certificate of Occupancy. He stated that he took his code books and applied the code; and at that time, the components were not in place for him to issue a Certificate of Occupancy. He said if the owner gets everything done next week and the City does the inspections and they pass all the inspections, he will be glad to issue them a Certificate of Occupancy. Director Edwards asked if the main problem was the fire escape, and Mr. Scott replied at this time, that is the biggest item; the other items are small, punch-list items. Director Weatherford questioned the first time they discussed fire escapes because he has a copy of every inspection report by the Fire Department or Code Compliance; and there is not anything on fire escapes. He added all they have ever talked about is sprinkler or fire alarms, but now they are talking about fire escapes. Mr. Mike Scott, Chief Building Official, advised that on the original set of drawings, there were no fire escapes. Director Weatherford pointed out as many inspections as he made, he must have noticed there were not any fire escapes. Mr. Scott stated if he is asking that the stairs were not built according to the project, he is not a superintendent but is the building inspector; and he does the inspection as they ask him. Director Weatherford said the Fire Department was there six times, and Mayor Bush pointed out that the Fire Department does not have to tell them what to do. Director Weatherford said they do not, but that is the reason he is failing it. He pointed out they were there six times, and two of those times were this year. Fire Chief Ed Davis said his department has not set any type of schedule for anyone to meet and has set no schedule on when any part of this project has to be done. He added the construction projects are carried out on a time line by the superintendent, and the Fire Department does not have the power to say they must have this completed in a certain amount of time. Director Weatherford pointed out he is not saying that, but the Fire Department or the Building Official has never mentioned a fire escape; therefore, it is failed. He pointed out this has been turned down several times because of inspections from Code Compliance. Board of Directors Meeting 9 February 5, 2007 at 7:00 P.M.  Fire Chief Ed Davis said the first time he heard about them wanting to use the fire escapes was in late December, and no one sent over a change order indicating they wanted to change this. He stated the Fire Department was going under the assumption they had planned on following the plans as they were submitted and approved. The Fire Department based all of their fire defenses on the fact that those two exterior stairwells were going to be put in place, and the Fire Department based that on the original set of plans that depicted them. Director Weatherford said he has not seen the original plans; but if they were not there on December 25 or December 20, he knew they were not going to be there on December 31. Fire Chief Ed Davis said that they wanted to treat people as fairly as possible. Director Smith questioned when the original plans were submitted and if there were fire escapes on the original plans, and Mr. Mike Scott advised that the City gave them a building permit on July 5. At that time, their plans were submitted a couple of weeks before that; and the fire escapes were not on those plans. He added they were enclosed fire stairwells added onto the exterior of the building with standpipes in them. Director Smith commented that none of the final inspections have been called for, and Mr. Scott advised that he checked today; and the City=s Plumbing Inspector asked the plumbing contractor if he was ready for a final and was advised he was not. Director Daniel said his main concern is if legally the City can assure itself, the people of Hot Springs, and the people who would move into that building that if the Board were to approve a Temporary Certificate of Occupancy, nobody would be moved in there until everything was complete. Also, he questioned if there is anything the City can legally do, bond-wise, to ensure the City that those things will be done before anybody moves into that building. Mayor Bush said his opinion is that until they do everything that code requires, they are not going to receive a Certificate of Occupancy. Mr. Mike Scott said he could not give them one by the Building Code, and Ms. Kathy Sellman added that she concurred with that. Director Daniel asked if there is anything the City can do to make them, and City Attorney Brian Albright advised that the City can require that they post a bond in some amount sufficient to give the Board comfort they are not going to move in; and if they did, it would violate the bond and the City could execute on the bond. Board of Directors Meeting 10 February 5, 2007 at 7:00 P.M.  Director Daniel suggested a $500,000 bond that they would definitely not try to move somebody in without doing that. City Attorney Brian Albright pointed out no one can be stopped from doing something they are determined to do. All that they can do is grant assurances that they have some bond sufficient to take action that may need to be taken in order to ensure that the conditions are met. Director Weatherford asked if they are referring to a Certificate of Occupancy or a Temporary Certificate of Occupancy. City Manager Kent Myers advised that the resolution refers to a Temporary Certificate of Occupancy. Director Weatherford pointed out that the City has issued a Temporary Certificate of Occupancy on this building previously, and it is different. Mr. Ray Owen, Jr., 110 Leigh Circle, representing the developers of the Woodman Building, also known as the National Baptist Hotel, advised this building is being developed in phases into residential apartments. He stated this property was vacant and derelict for more than 20 years; and after several attempts, the current developers began to rehabilitate the building. He reported that a crucial part of the financing of this development was the tax credits that rehabilitation of this historic building would generate; but due to problems beyond the control of the developers, construction fell behind. He mentioned in order to qualify for the tax credits in the amount of approximately $3 million, Temporary Certificates of Occupancy for at least 20 of the 49 apartments need to be issued as of December 31, 2006. These Temporary Certificates of Occupancy cannot say that they cannot actually move in, but they can work out an arrangement whereby they can forfeit some money if there is a problem and be willing to put up $50,000, which would be forfeited immediately if there was noncompliance because they are aware of the impending deadline; and the Chief Building Inspector agreed to work on New Year=s Eve. He advised that the developers had an inordinate number of construction workers on site during that holiday weekend, and the Building Inspector accompanied one of the developers in making the rounds of the building. As soon as the Building Inspector pointed out a deficiency, the developer assigned one or more construction workers to begin correcting it. At or about midnight, December 31, 2006, the developer was under the impression that the building was complete enough for the issuance of Temporary Certificates of Occupancy. Later there was issued a punch list of what appears to be construction deficiencies which the developer believes has now been corrected. During the fall of 2006, the developers were working with the Fire Marshall and the Chief Building Inspector regarding the fire issues. It was the understanding of the developer that the existing fire escapes could be used if they agreed to install a standpipe in the building. After the first of the year, Board of Directors Meeting 11 February 5, 2007 at 7:00 P.M. the Fire Chief, who had not previously been regularly involved with this project, said the existing fire escapes could not be used; but external steps could be. Questions were also raised about whether the sprinkler system and the alarm were operable, and they are now operable. The electrical contractor stated to the architect the fire alarm system was operable as of December 31, 2006. The developer said that during the inspection by the Chief Building Inspector on New Year=s Eve, there was no mention of the fire escapes not meeting code. The only comment made was that there was debris across the path at the base of the fire escape. In the best interest of the community, he asked that the Board cause the issuance of Temporary Certificates of Occupancy for a period of 120 days from December 31, 2006, for the 24 units requested in the appeal. He spoke with the architect, and he has been getting prices and working for sometime now on the fire steps, which are to be ordered later this week and would be installed within the next 30 days. The standpipe has already been installed, which would take care of the entire package. He asked that the Board consider taking the action to issue the Temporary Certificates of Occupancy for the 120-day period beginning on December 31, 2006. When they expire, if the permanent Certificates of Occupancy have not been issued, then they would forfeit the $50,000 and the verbal assurance that no one would be moved in until the permanent Certificates of Occupancy are issued. Director Maruthur said she wanted to go on record that she has never voted for the building to be condemned. She stated that a Certificate of Occupancy is a Certificate of Occupancy whether it is temporary or a regular Certificate of Occupancy. She noted that according to the City Attorney, there is nothing they can do to keep people from violating a verbal commitment and that is what this would be. She said Mr. Owen is saying they would not allow anybody to go in there, but they could if the City were to issue a Temporary Certificate of Occupancy. She stated he pointed out that the Fire Chief, Planning Director, Fire Marshall and Chief Building Inspector are saying that it is not consistent with the City=s code of ordinances that pertains to this. She questioned if he was asking the Board not to adhere to its ordinances that are designed to protect. She stressed that is her concern, but she wants to see the building completed. Mr. Ray Owen, Jr. replied that he is asking the Board to do what he thinks is best for the community. He advised that he has had conversations with the City Attorney with regard to mechanisms they could put in place that would be a forfeiture of a substantial sum of money if there were violations of verbal agreements. Director Maruthur asked if they could not get the external stairwell built and then the City could issue the Certificate of Occupancy with whatever date is necessary. Mr. Board of Directors Meeting 12 February 5, 2007 at 7:00 P.M. Owen replied that the tax credits are sold basically to a syndicator, and the syndicator may be in the process of pulling that money now as a result of the fact that these have not yet been issued. He said they know the money is going to be pulled if they are not issued fairly soon. Director Maruthur asked if they could not take the Board=s verbal commitment to issue the Temporary Certificate of Occupancy if it were to make that verbal commitment should they do the external stairwell so that the Board guarantees if anybody should occupy the structure, the Board would not only be legally on firm ground in complying with its ordinances but would be looking out for anyone if they did go into the building and occupy the structure. City Attorney Brian Albright explained that the IRS is not going to accept the City=s verbal assurance in order to approve the issuance of tax credits on the project. He added the only way they can cash in on the tax credits would be if there were a Temporary Certificate of Occupancy issued in their favor. Director Maruthur asked if the City could not do that after the stairwell was constructed; and City Attorney Brian Albright said if this proposition is voted down tonight, then work that was done after that, in order to obtain a Certificate of Occupancy, would not be of any use to the applicant because the time period would have expired. He pointed out this appeal is only good as of the end of the year. They have appealed the fact that they were not given one on December 31, 2006; and if the appeal were granted, it would relate back to that date. If it is voted down, any subsequent work would not be of any assistance to the applicant. Director Maruthur asked if they could not re-appeal, and City Attorney Brian Albright advised that they could not because there would be a break in time and would be starting over. Director Weatherford pointed out that the City issued a Temporary Certificate of Occupancy a year ago on this building with no restrictions. He said there was no time line, and it only nullified itself when they started working on it again. Therefore, if they had never worked on it, they could move someone into that one unit at that time. He pointed out the Board is doing the same thing now as it did a year ago, which is issuing a Temporary Certificate of Occupancy. Director Maruthur questioned on which floor this was located, and Director Weatherford said it was on the second floor. He added that he was a big opponent to this, but he spent three trips down to the facility; and there has been a large amount of Board of Directors Meeting 13 February 5, 2007 at 7:00 P.M. work done. He stated he thought this building was going to be completely finished December 31, 2006, but it still will not be done; and the top floor is not even part of the package. He stressed it is not a completed building, but the Board is giving another Temporary Certificate of Occupancy for rooms inside a building. Director Smith questioned how long it would take to build the fire escapes and how much money would be required. Mr. Robert Kempkes, architect, said there are three different companies; and the range is between $30,000 and $50,000 for the two fire stairs. He added there is about a three-week fabrication time and about one-week installation time. Mayor Bush questioned why they have not had this completed, and Mr. Kempkes explained there was some delay as they discussed different code issues with the Fire Department. It came up later, and they discussed with the Fire Department what alternatives they might accept. For instance, they talked about the additional standpipe and one fire escape being allowed to remain as it is in the code. He noted that is a debatable code issue. He explained they have been negotiating with them and discussing what is going to give them the safest entry into the building and what is going to give the residents the safest exit from the building. He said they came the conclusion last week. Fire Chief Ed Davis commented this is an integrity issue, and they had a set of plans in front of them that indicated two fire towers, not two fire escapes, on the exterior of the building. The Fire Marshall, Nate Schanlaber, was involved in the process of doing most of the plan review and the inspections. As far as the use of any type of fire escapes, he said he never heard of that until December and never gave his approval for that. He explained that the Fire Marshall is his designee and works through his authority. Mr. Nate Schanlaber, Fire Marshall, said it was his understanding there was a change from the enclosed stairwells to exterior stairwells, and that is when he came into the conversation with the architect and discussed an additional standpipe. He stated his initial problem was not only egress but the Fire Department=s capability to gain access to the standpipes (fire protection systems for that). He mentioned he had no problem with exterior stairwells in lieu of the enclosed stairwells, but they prefer enclosed. However, by the code, they could do exterior stairwells. His main issue was the Fire Department=s access and ability to gain access to that. He said it was his understanding if they added a standpipe in the center stairwell, the exterior stairwell Board of Directors Meeting 14 February 5, 2007 at 7:00 P.M. should be okay. He stressed it was always his understanding there was an exterior stair case. Director Maruthur commented that the Board wants the building completed and wants the people who are doing it to get their credit. She asked if the Board were to table the appeal, if that would not be breaking the continuity so that they could still complete the work and then the Board could hear the appeal and they could get their stairwell. City Attorney Brian Albright stated a tabling of the appeal could still relate back; and if the Board votes it down, it is over. Director Maruthur pointed out they need their tax credit, and the Board wants the building completed and wants to adhere to the City ordinances. Also, the Fire Chief, Fire Marshall, Building Inspector and Planning Director want to do the right thing to see the building completed. At this time Director Maruthur made a motion to table it and they build the stairwell, which would be the legal way to do it. Upon discussion of the motion, Mr. Ray Owen, Jr. stated the problem with tabling it effectively Akills@ the tax credits because they have already stretched the time as much as they can. He added their syndicators are going to pull those credits right now, and the resolution needs to either be adopted or not adopted tonight. He added they can post a $50,000 bond to assure the construction of the fire stairs, and the standpipe has already been built and is in place. Director Maruthur said she did not understand why the investors would pull the tax credits when the Board would be willing to hear the appeal and issue the Certificate of Occupancy according to what the City=s rules and regulations are. Director Daniel commented that $50,000 seems a small amount of money for $3 million and did not think he could support it. He stressed that he wants to see the building operational. He pointed out that the City hired these people who are professionals to make decisions (Fire Department, Planning Commission), and they have said there are things that need to be done. He said he believes it should $500,000. Board of Directors Meeting 15 February 5, 2007 at 7:00 P.M.  Director Jones pointed out that she and Director Maruthur were always for the older, historic buildings and want to see every building that is historic and old kept in tact. She urged the Board to take Mr. Owen=s proposition and issue the Temporary Certificate of Occupancy. She said she has worked hard for the last eight years on this building and would like for the Board to vote with her on this. Mayor Bush questioned the amount of the cash bond, and Mr. Owen advised that the most they can come up with is $50,000. Mr. Dean Baxter, one of the owners, stated in regard to the bond, they have a construction loan on this project; and with the construction loan, they have to finish the project including some of these things of which he was unaware. He pointed out they took the project over from a contractor who left the job that was to have finished October 16, and he is proud of what they accomplished after that. He stressed it was not just negligence on his part that it was not finished. He explained they had a fixed date contract for the project to be finished by October 16, 2006; but the contractor walked off the job. He mentioned he has issues with him, but if he goes after him, he will never collect what he would lose from losing these credits. He explained that at this point, all they are working off of is their personal money, which he and Mr. Brown already have over 3/4 of a million dollars of their own cash in the project and the construction loan. He said when they get the tax credits, it is not instant; but if they are able to get the tax credits, that money goes into the project. He stressed that $50,000 is a large amount because he does not have any more cash. He said he would not mind bonding it, but he cannot say he can do that. He stated the $50,000 out of his pocket is more assurance to him than signing some paper with a bonding company if he can do that. He emphasized that he is not moving anyone in the building until the Fire Department is satisfied, and the Certificate of Occupancy is a requirement. He stated if a Certificate of Occupancy says he cannot move in, then that negates the Certificate of Occupancy from their requirements. He mentioned that he does not want the liability himself if someone has said it is unsafe and then something would happen. He pointed out a Temporary Certificate of Occupancy can be revoked at any time; and if he were to start moving in people, the City could pull that Certificate of Occupancy Also, the City could disconnect the water and could disconnect the water immediately. Director Daniel said he thought they were discussing a $50,000 bond and asked if he was going to give the City in an escrow account $50,000 in cash, and Mr. Baxter said that he was. Board of Directors Meeting 16 February 5, 2007 at 7:00 P.M.  City Attorney Brian Albright explained that the resolution as stated would direct the Mayor to issue a Temporary Certificate of Occupancy for 120 days beginning December 31, 2006, for Units No. 201 through 213 and 301 through 313 of the Woodman Building at 501 Malvern Avenue. He pointed out the resolution currently does not provide for any cash bond being posted. A motion was made by Director Jones, duly seconded by Director Edwards, that the resolution be amended as follows: Aprovided, a cash performance bond, in the amount of $50,000, shall be posted in favor of the City of Hot Springs for the duration of the Temporary Certificate of Occupancy.@ Upon discussion, Director Smith stated the resolution refers to Unit Nos. 201 through 213 and 301 through 313 and questioned if that is the second and third floor; and Director Jones said it was. Director Weatherford pointed out that it does not include the lobby because there are no apartments on the first floor. He stated the fourth floor on the concrete side is the auditorium, which is gutted. He commented it is incomplete and will not be complete because that is not part of their Phase I. Director Maruthur said she had made a motion to table this to help with the appeal process. She asked Mayor Bush if he was going to sign the Temporary Certificate of Occupancy if this is approved; and Mayor Bush said if the Board authorizes it, he will. Mayor Bush asked when the City has to have the cash, and City Manager Kent Myers advised it has to be before he signs it. Director Smith questioned what would happen if 120 days from now the work is not done, and City Attorney Brian Albright advised that it can be revoked. Director Smith said that he wanted that to be clear and the $50,000 comes to the City and asked if Mr. Baxter understood that. Mr. Baxter replied he did. City Manager Kent Myers pointed out that the 120 days starts January 1, 2007; and there are 90 days left. Mayor Bush then called for a vote on the following amendment: Aprovided, a cash performance bond, in the amount of $50,000, shall be posted in favor of the City of Hot Springs for the duration of the Temporary Certificate of Occupancy@; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Board of Directors Meeting 17 February 5, 2007 at 7:00 P.M.  Mayor Bush then called for a vote on the motion to adopt the resolution, as amended; and upon roll call, the following voted Aaye@: Directors Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Voting Ano@: Director Maruthur; motion carried. Whereupon the resolution was declared adopted, as amended. 17 Presentation of Condemnation Resolutions Mr. Bart Jones, Rehab Administrator, gave a slide presentation on the condemnation resolutions. 17a Proposed Resolution No. R-07-30 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN PROPERTY PURSUANT TO ORDINANCE NO. 4623 (1202 SPRING STREET),@ 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, City Attorney Brian Albright asked if anyone was present to speak in opposition to the condemnation. Mr. Leo Castleberry, 538 Walnut Valley Road, stated this property has been approved for a storage building. He said it is a sturdy building, and he is using it only for storage until he gets enough money to repair it. City Manager Kent Myers pointed out if the building continues as is, there is no way the City can restrict its use to storage purposes only. If the Board denies this, then Mr. Castleberry can occupy the building. He added that staff feels this building is a detriment to the neighborhood. He mentioned there are some major safety problems with the building, and just because he is saying he is using it for storage, that use could change tomorrow. He could have someone who wants to move into it; and as long as that building is there, he could occupy it for living purposes. Mr. Castleberry said nobody could move in it because there are no utilities. Board of Directors Meeting 18 February 5, 2007 at 7:00 P.M.  Director Daniel noted that the gas meter and power are pulled, and there is no way he can get service back. Mr. Jones replied he could not without bringing it up to code. Mayor Bush then called for a vote on the motion to adopt the resolution; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Daniel, and Bush, total 6. Voting Ano@: Director Edwards; motion carried. Whereupon the resolution was declared adopted. 17b Proposed Resolution No. R-07-31 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN PROPERTY PURSUANT TO ORDINANCE NO. 4623 (1212 SPRING STREET - REAR STRUCTURE),@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones advised this is next door on the adjacent lot and is the rear structure on this lot; and the front structure is addressed as 1212 Spring. He reported this is where the tire store was located when the City cleaned up all the tires, and this structure is dilapidated. He added it is structurally unsound and has no utilities. Staff=s recommendation is to proceed with condemnation. Mr. Leo Castleberry stated this property is already in the process of being torn down, and the property has been sold to Mr. Ray Cantrell, who said he did not get a notice to be present. However, he reminded him that the meeting was tonight; however, he had to leave early. City Attorney Brian Albright advised that the City had this property in the abatement case on the tires, and there is an unrecorded Contract for Sale. City Manager Kent Myers pointed out if the Board approves this condemnation, the City would have to request bids for demolition and actually get the work done, which would take at least 30 days. In the meantime, Mr. Castleberry can proceed and demolish the building; and if he does that before the bids come back to the Board, then it is a moot point. If the Board passes this resolution to go ahead and remove the Board of Directors Meeting 19 February 5, 2007 at 7:00 P.M. building in the next 30 days, then the City would not destroy the property and would not file a lien on the property. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 17c Proposed Resolution No. R-07-32 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN PROPERTY PURSUANT TO ORDINANCE NO. 4623 (895 VALLEY),@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones stated this is a large commercial structure directly across the street from the Sanitation Department. He said the City has been dealing with this building for over eight years. At different times, it has been open and is unsecured. He pointed out behind it is a known hobo camp, and there is a transient problem. They are continually breaking into it, and dumping is also taking place. He said the City would like to either see it condemned and torn down or the owner bring it into compliance. Staff is recommending condemnation. Mr. Sky Tapp, 523 Orange Street, attorney representing Mr. Marvin Rogers, who owns this property, said Mr. Rogers is willing to do what is reasonable to get this matter resolved and does not believe it comes close to condemnation. He mentioned there have been some tire issues, but those tires have been removed. He stated that berms will be placed near the property, which make it safe to prevent the vagrants from entering. Director Jones asked what this building would be used for after it is redone, and Mr. Tapp said that Mr. Rogers is a homebuilder and is housing building construction materials. Board of Directors Meeting 20 February 5, 2007 at 7:00 P.M.  City Manager Kent Myers advised that this is a building across from the office of the Sanitation Director, and he has regular problems as far as people hanging out and causing problems. Mr. Tapp said they are hopeful that the berms will resolve those issues. Director Jones asked if this building can be enclosed, and Mr. Tapp replied that it is not required that it be enclosed; but they are willing to block access. He pointed out the building has been there for many years and housed construction materials for at least 30 years. He stated a little repair and maintenance should make this building reasonable to prevent any vagrants from entering the building. Director Daniel questioned the last time this building was used for anything, and Mr. Tapp stated that it has been used consistently and has housed construction materials for the last two years. He noted this is a 10,000-square foot, concrete building that is being considered for condemnation. He added they are going to repair the holes where vagrants have chipped out the sides of the wall to get inside. He said if a berm is placed on each of those locations, it should prevent any vagrants from entering. Director Maruthur asked if this has been consistently used, and Mr. Tapp said that it has. He added that the vagrants are not there the majority of the time but might be there when Mr. Rogers is out of town. He stated that it does not make any sense to condemn this; but if the City wants them to make repairs, that is reasonable. However, to condemn this property because there are vagrants who have entered and busted out a wall is not consistent with the City=s laws. Mr. Bart Jones advised that the City has a Vacant Structure Code, which allows Mr. Rogers to pull a permit and secure the structure up to the Vacant Code standards and to keep it secure. He would have 30 days to do that, and the City could extend that another 30 days, giving him 60 days total. He pointed out that the problem is every time he secures this, they break back in. If the securing does not work, staff will bring it back in 60 days. He pointed out it has been an ongoing problem regardless of whether materials were stored in there or not. Mr. Tapp said once they get the walls repaired, then the vagrants should not be able to get in at all. He pointed out that they acknowledge there have been problems with it when Mr. Rogers was not in town, but he is back in Hot Springs and is going to get it cleaned up and get it resolved. Board of Directors Meeting 21 February 5, 2007 at 7:00 P.M.  Director Maruthur said it is no problem if the City condemns it because it gives them 30 days to do whatever they need to do. Mr. Jones stated that is correct; and according to the ordinance, Code Compliance cannot do anything for 30 days and will have to come back to the Board to spend the money. Director Daniel asked Police Chief Bobby Southard if there has been a problem with vagrants, and Police Chief Bobby Southard said that he started with the Police Department 18 years ago; and he was running vagrants out at that time. He explained they were coming in and starting fires; also, charcoal was stored in the building. He commented it is not as bad right now as it has been in the past, but it is still a problem running vagrants out. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 18 Proposed Resolution No. R-07-33 A resolution entitled, AA RESOLUTION APPROVING AN APPLICATION FOR A TEMPORARY EMERGENCY DWELLING UNIT AT 230 WHITTINGTON AVENUE PURSUANT TO ORDINANCE NO. 4948,@ was taken from the agenda and read by title only. A motion was made by Director Smith, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Ms. Kathy Sellman, Planning and Development Director, advised this is a request by the property owners, Thaddeus and Kelly Singer, at 230 Whittington Avenue. They are restoring a structure built in 1850 and have all of the required permits. She reported that tools and building materials are stored on the site, and they are seeking the extraordinary circumstances approval. They would like to occupy a camper to secure the building site until the Carriage House is approved for occupancy or August 5, 2007, whichever occurs first. Board of Directors Meeting 22 February 5, 2007 at 7:00 P.M.  Director Smith said he has driven by this property twice in the last few days, and these applicants are making a substantial investment. He noted it is a welcome addition to that area. Director Maruthur pointed out this is a Victorian home next to the Math and Science School administrative building, and the Singers are doing wonderful things with it. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 19 Proposed Resolution No. R-07-34 A resolution entitled, AA RESOLUTION ADOPTING A NEW LAND USE PLANNING AND ZONING APPLICATION FEE SCHEDULE; AND REPEALING SECTION ONE OF RESOLUTION NO. 6239,@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Edwards, that the resolution be adopted as read. Upon discussion, Ms. Kathy Sellman, Planning and Development Director, advised this is a request to consider planning application fees and is an effort to more fully recover the cost of land use application review. This fee proposal includes no change to construction permit fees, such as building, plumbing, mechanical and electrical. Most of the proposed planning application fees are higher, but there are a couple of exceptions. The historic district fees have been reduced in the proposal. The administrative appeal to Board of Adjustment fee has been proposed for an increase, but the new proposal also provides that should the Board of Adjustments find in favor of the appellant that the fee would be refunded to the appellant. She advised that a new fee for final plat review is proposed. The Planning Commission held a public hearing on January 11 for the sole purpose of gathering testimony on the fees, and there were four people who testified. She stated a verbatim transcript of the Planning Commission minutes were provided to the Board. One proposal is included in this so that these fees would not negatively impact housing affordability. The 501C-3 organizations, whose mission is to provide affordable housing, could request full or partial fee waivers for their affordable housing developments. A survey of fees in other Board of Directors Meeting 23 February 5, 2007 at 7:00 P.M. communities has been conducted and is included in the board packet, and there is a complete table estimating the cost of the conditional use permits. In terms of fiscal impact, some increase in fees was anticipated in putting together the department=s revenue estimate for 2007, and there would be an estimated shortfall should these fees not be approved at the level they are being proposed. Director Maruthur stated she is not in favor of the increases, and it appears that the City is accepting a lot of revenue from people who might want to build even in the city limits. She noted that even though there is very specific land use application fee schedule, it says in the resolution the following: Ain addition to the above fees, if, because of the detailed nature of a proposal or the number of hearings that are required, the City=s review cost exceeds the application fee, the applicant shall be responsible for paying the actual cost in full. Such cost may include technical or legal review by qualified experts.@ She commented that the first part is objective, and the other part basically cancels the first part because this would be subjective. She pointed out this clause would change everything; and if they deviate from something, they have no idea how much this is going to cost because there is no specific scale. She said that she was concerned about people who are not really investing and building within the city limits. She stressed that she believes these fees are too high and would like to see it revisited. Mayor Bush said that he disagreed, and his personal opinion is that the City is trying to recover costs. He added if the City wants the public to pay for this (the taxpayers), then that is what is happening. Director Maruthur asked if the City=s rates were so out of line all of these years, and City Manager Kent Myers advised they were. Director Maruthur mentioned the same thing happened with the water and the sewer. City Manager Kent Myers pointed out every year the staffing costs increase, as well as the equipment costs, fuel costs and in other areas of the City. He stated this is catching up to cover those costs, and the revenue from these fees is already in the 2007 budget. He added they were proposed in November or December. Director Maruthur pointed out that in Benton, it is $15 to $25 for zoning, but Hot Springs is going to charge $350. For Board of Zoning Adjustment in Benton, they charge $15; but the City is going to charge $200. Board of Directors Meeting 24 February 5, 2007 at 7:00 P.M.  Director Edwards commented that he believes some of the charges are a little excessive. Director Weatherford pointed out an instance in January where an individual building on Marion Anderson had almost 200 lots in the subdivision. He stated when this individual comes in, the preliminary plat and development plan review (all subdivision types) go from $175 plus $5 per lot to $350 plus $5 per lot, which is a $1,350 charge. With the final, it will be $175 plus $5 per lot so that is another $1,175, which is $2,525. He questioned if it costs that much to look at a set of plans, and Ms. Sellman replied that it can. City Manager Kent Myers said in looking at the total value of that project, that is a minuscule amount of money for a project of that size. Director Weatherford said that was in the County; but if were in the City, it would be more; also, if it had to be rezoned, there is a rezoning fee of $350, which would be $3,000 to look at the plans and get it rezoned. Ms. Sellman said the alternative is the public will pay for that cost, which is a philosophical choice the Board can make. Director Edwards asked if the cost of building has increased that much that it would take more of staff=s time to read a lengthy plan, and Ms. Sellman advised that the detail involved in a subdivision increases with the number of units that are involved. She commented to add $5 per lot is not close to covering the cost. She pointed out it is costly to take these steps to protect the city. Director Daniel mentioned the figure that Director Weatherford quoted ($3,000), which is for a subdivision of 200 lots, and Ms. Sellman said that was correct. Director Smith questioned the last time the City adjusted these costs, and Deputy City Manager Lance Hudnell said it may have been once. He added several years ago, the City did not charge as far as review fees, and the Planning budget absorbed of those expenses. Then the City adopted a fee four or five years ago and adjusted some of the fees once or twice since then. Director Smith pointed out the City is trying to get to break even with its costs, but the City is not making money. Ms. Sellman commented this would take the City from recovering 35 percent of its cost to 40 percent. Director Maruthur said there are many people who move into the County because they do not want to deal with the fees they incur from having to build in the City. She questioned the incentive to live in the City and said she was referring to building in Board of Directors Meeting 25 February 5, 2007 at 7:00 P.M. the existing city, not moving out to the county and then petitioning to annex into the city after everything has been done. City Manager Kent Myers replied that it is called safe, quality development. He pointed out safe construction is inspected by city staff and quality development; and that is what individuals are paying for with the city services. He pointed out if people build in the County, they are not getting development review or code inspections. He said the City is guaranteeing people who move into Hot Springs a safe building that they are going to occupy and guaranteeing them a subdivision that meets drainage and street requirements, which they are not getting in the County. Director Maruthur said that she agreed with that but did not feel the City should charge, pointing out it is a philosophical issue. Mayor Bush said that it is, but he disagrees with Director Maruthur and is on record saying that. He emphasized that the City should try to recover at least 40 percent of its costs on these fees and did not think the public should pay for all of this. 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 Maruthur and Edwards, total 2; motion carried. Whereupon the resolution was declared adopted. 20 Proposed Ordinance No. O-07-12 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PROCUREMENT OF CERTAIN PRINTING AND MAILING SERVICES FROM MATRIX IMAGING SOLUTIONS, INC.; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Jones, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Jones, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Public Information Officer Terry Payne stated staff is recommending waiving the requirements of competitive bidding so that a company that manages the utility bill mailing can also manage the insertion of the citywide newsletter. Board of Directors Meeting 26 February 5, 2007 at 7:00 P.M.  The 2007 City budget includes an amount of $24,000 per year for printing, folding and inserting a four-page citywide newsletter into the mailing of the city utility bill. Prior to this year, the Public Information Department had independently mailed the citywide newsletter. The compromise is that her department is reducing the newsletter from eight pages to four pages because she realized when the utility billing was going to be changed to the current format including an envelope, there was the opportunity to save in postage costs. The current situation allows for the insertion of a four-page citywide newsletter with no postage costs which will save the City approximately $32,000 annually in postage costs. She recommend that the citywide newsletter be reduced to two, four pages and be inserted quarterly in the City=s utility bill. Director Daniel questioned the cost for the Matrix Imaging, and Ms. Payne replied that it is $24,000 per year for four issues. She explained that the City is saving $32,000 annually because the cost previous to this year was $56,000 per year to print, mail and fold the citywide newsletter independently. Instead of $56,000 being allotted in the city budget for four issues being mailed to every city resident, they are allotting $24,000 per year for the printing, folding and insertion. The City is saving $32,000 annually in postage by inserting it in the City=s utility bill envelope. The maximum amount that can be inserted into the envelope without increasing the existing postage cost is two pages (front and back), thereby a four-page newsletter. Director Daniel expressed concern that at the present time, he is still receiving two bills for one household and is now going to get two newsletters, one in each envelope. Ms. Payne said she understands that will soon be resolved. Director Daniel questioned who was paid the $56,000; and Ms. Payne said prior to that, they went through the City=s competitive bidding process and a printer handled the whole process, including the mailing of the newsletter. Director Maruthur pointed out that the City was spending $56,000 a year to send out a newsletter, and at the agenda meeting she had asked if they switched to a lighter gauge, would it help reduce the cost. Ms. Payne said she checked on that, but it would not allow them to add even an additional page and keep the postage the same. She added there is a difference in weight, but it would not allow them to put one more page into the City=s utility bill without incurring additional postage. At the present time, they are trying to make the insertion without any additional cost, and the cost is already budgeted for the mailing of the utility bill. Board of Directors Meeting 27 February 5, 2007 at 7:00 P.M.  Mayor Bush then called for a vote on the motion to approve; 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-07-13 An ordinance entitled, AAN ORDINANCE ACCEPTING AN EXTENSION OF BRIDGEVEW CIRCLE AS A PUBLIC STREET AND AMENDING THE DESCRIPTION OF BRIDGEVIEW CIRCLE; AND FOR OTHER PURPOSES,@was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Deputy City Manager Lance Hudnell explained in 1990, staff went through all of the streets in the City; and the Board accepted them by master ordinance. At that time, Bridgeview Circle was accepted and was described from Halteria in a circle; and City crews were instructed not to work on anything that did not meet that description. He stated the way this subdivision was originally platted, it has a small spur on it, which was not included in that original description. Prior to 1990, the City maintained the spur; but after 1990, the City ceased to maintain it because it was not included in the original description of acceptance. He stated this is correcting that on the request of the three residents who have driveways off this spur. Staff is asking that the Board amend the description to include the spur. He said this is a dedicated right-of-way and is not part of anybody=s property. At this time, the Street Department will patch the potholes and make some repairs. 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. Board of Directors Meeting 28 February 5, 2007 at 7:00 P.M. 22 Proposed Ordinance No. O-07-14 An ordinance entitled, AAN ORDINANCE ACCEPTING A PUBLIC RIGHT-OF-WAY (ADAMS STREET0 FOR PERPETUAL MAINTENANCE; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. 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 Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 23 Proposed Ordinance No. O-07-15 An ordinance entitled, AAN ORDINANCE CREATING A BOARD OF ADJUSTMENTS AND APPEALS FOR VARIOUS DEVELOPMENT CODES AND REGULATIONS,@ was taken from the agenda for consideration. A motion was made by Director Jones, duly seconded by Director Smith, 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 Maruthur, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 24 Proposed Ordinance No. O-07-16 An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 4730 (HOT SPRINGS LANDSCAPE CODE) BY ESTABLISHING THE BOARD OF ADJUSTMENTS AND APPEALS AS THE APPEALS BOARD FOR VARIANCES AND Board of Directors Meeting 29 February 5, 2007 at 7:00 P.M. APPEALS; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Edwards, duly seconded by Director Maruthur, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 25 Proposed Ordinance No. O-07-17 An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 3887 (FLOOD DAMAGE PREVENTION ORDINANCE) ESTABLISHING THE BOARD OF ADJUSTMENTS AND APPEALS AS THE APPEALS BOARD FOR VARIANCE AND APPEAL PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Smith, duly seconded by Director Weatherford, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Edwards, duly seconded by Director Smith, 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. 26 Proposed Ordinance No. O-07-18 An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 4835 (HOT SPRINGS STREET SPECIFICATIONS ORDINANCE) BY ESTABLISHING THE BOARD OF ADJUSTMENTS AND APPEALS AS THE APPEALS BOARD FOR VARIANCES AND APPEALS; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Weatherford, duly seconded by Director Edwards, that the rules be suspended and the ordinance be read for the first time by title only; and Board of Directors Meeting 30 February 5, 2007 at 7:00 P.M. upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Smith, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 27 Proposed Ordinance No. O-07-19 An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 4834 (HOT SPRINGS DRAINAGE SPECIFICATION ORDINANCE) BY ESTABLISHING THE BOARD OF ADJUSTMENTS AND APPEALS AT THE APPEALS BOARD FOR VARIANCES AND APPEALS; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. 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 Weatherford, duly seconded by Director Edwards, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 28 Proposed Ordinance No. O-07-20 An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 5096 (HOT SPRINGS EXCAVATING AND GRADING CODE) BY ESTABLISHING THE BOARD OF ADJUSTMENTS AND APPEALS BOARD FOR VARIANCES AND APPEALS; 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 Weatherford, that the ordinance be passed as read; and upon roll call, the following voted Aaye@: Directors Board of Directors Meeting 31 February 5, 2007 at 7:00 P.M. Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared passed. 29 Approval of Board Travel for Director Elaine Jones to Attend the National League of Cities Conference in Washington, DC, March 2007 A motion was made by Director Weatherford, duly seconded by Director Daniel, to approve the Board Travel for Director Elaine Jones to attend the National league of Cities Conference in Washington, DC in March 2007; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. 30 Proposed Resolution No. R-07-35 A resolution entitled, AA RESOLUTION APPOINTING DIRECTORS TO THE HOT SPRINGS ADVERTISING AND PROMOTION COMMISSION,@ was taken from the agenda and read by title only. Mayor Bush said it is his understanding there are four Directors who have indicated a desire to serve on the Advertising and Promotion Commission: Directors Maruthur, Jones, Smith and Weatherford. He stated a ballot has been distributed and asked that the Directors vote for two Directors and return the ballots to City Attorney Brian Albright. The names of the two Directors with the highest votes will be inserted into the resolution and will serve for four-year terms. City Attorney Brian Albright announced that the two Directors receiving the highest number of votes were Directors Jones and Weatherford, whose names will be inserted into the resolution. A motion was made by Director Daniel, duly seconded by Director Edwards, that the resolution be approved with the names of Directors Jones and Weatherford inserted. Upon discussion, Director Jones commended Directors Maruthur and Smith for indicating a desire to serve on the Commission. Mayor Bush then called for a vote on the motion to adopt the resolution with Directors Jones and Weatherford inserted; and upon roll call, the following voted Aaye@: Board of Directors Meeting 32 February 5, 2007 at 7:00 P.M. Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. OTHER BUSINESS 31 Board of Directors Items Director Edwards commended Ms. Gail Ezelle for her work with the senior citizens and also the sanitation employees for being at work in the early morning hours. Director Smith expressed appreciation to those who participated in the Police Chief selection process (Civil Service Commission, members of the community, the interview committee, the department heads, and City Directors). Director Maruthur congratulated the new Police Chief, Bobby Southard. Regarding her interest in serving on the Advertising and Promotion Commission, she said that she received several phone calls yesterday and today to apply. She noted that she did not vote for herself but voted for the Directors who asked that she vote for them. 32 City Manager=s Report City Manager Kent Myers gave the following report: 1. With the hiring of the new Police Chief last week, there will be a goal-setting process for Police Chief Bobby Southard; and if the Directors have anything specific they would like to include in his performance goals, they need to contact him this week. He will also contact the Civil Service Commission for their input. Next week, he and Chief Southard will review the goals and objectives (short-term goals for the 90 days and then annual goals that should be accomplished over the next year). 2. There was a successful startup today of Operation Clean Sweep (neighborhood improvement program). There were several senior citizens in that area who were unable to clean up their property, and the City has already assigned alternative service workers to assist them in getting their items to the curb. That effort will continue next week, and there will be a coordinated clean-up effort in this neighborhood next week. The following week, code enforcement efforts will begin. Board of Directors Meeting 33 February 5, 2007 at 7:00 P.M.  3. One of the items the Board tabled from the recent work session was a discussion on sign regulations. There is a need for a Board Work Session next month or so and also need to update the Board on the recommendations as far as the Utility Department administrative staffing. There is also a new special events policy that needs to be discussed at the work session. The next regular Board Meeting is on February 19; and if there are no objections, those three items will be scheduled for a work session at 5:00 p.m. on February 19. 4. Immediately following tonight=s meeting, he will be giving the State of the City Report and distributed a copy of the report to the Directors. This will also be available on the City=s website. Director Weatherford pointed out February 19 is a Monday that the races are open. Mayor Bush suggested moving the next Board Meeting to Tuesday, February 20. A motion was made by Director Jones, duly seconded by Director Weatherford, to change the next Board Meeting to Tuesday, February 20, at 7:00 p.m.; and upon voice vote, the motion carried. Director Maruthur was out of the Board Chambers at this time. City Manager Kent Myers announced that the Board Work session will be held on Tuesday, February 20, at 5 p.m. 33 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 9:15 p.m., to meet again on Tuesday, February 20, 2007, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 34 February 5, 2007 at 7:00 P.M.