Board of Directors

MINUTES BOARD OF DIRECTORS MEETING MARCH 19, 2007, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, March 19, 2007, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Mr. Lee Roy Johnson, 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 Edwards, duly seconded by Director Daniel, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of March 5, 2007 Board Meeting A motion was made by Director Edwards, duly seconded by Director Maruthur, that the minutes of the March 5, 2007 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests No guests were present for recognition. CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (March 7, 2007). 6 Proposed Resolution No. R-07-60 Approving Certain Bid Awards (a) Fire Hydrants - Utilities [annual supply contract awarded to HD Supply Waterworks]; (b) Mowing - Parks, Public Works, Finance and Intracity [annual supply contract awarded to Adarose, Long Beach Lawn, Elite, Elliott, and Spa Landscape]; (c) Container Delivery Truck - Sanitation [awarded to Glover Truck in the amount of $88,929]; (d) Four Patrol Units [awarded to Cavenaugh in the amount of $81,250, and Fleet Safety Equipment [awarded to Fleet Safety Equipment in the amount of $2,600]; (e) Brass Fittings - Utilities [annual supply contract awarded to Arkansas Water Products]; (f) Cementitious Material - Utilities [annual supply contract awarded to Quadex, Inc.]; and (g) Paratransit Van - Intracity [purchased from State Contract in the amount of $63,125 {City=s share $12,625}]. A motion was made by Director Jones, duly seconded by Director Daniel, 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 7 Proposed Resolution No. R-07-61 A resolution entitled, AA RESOLUTION APPROVING AN OPTION AGREEMENT FOR THE PURCHASE OF CERTAIN REAL PROPERTY FROM L.I.P.S.. LLC (DHS PROPERTY LOCATED AT 115 MARKET STREET) FOR A MUNICIPAL BUILDING,@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Weatherford, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers stated it is recommended that the Board approve an Option Agreement for a 3.7 acre tract located at 115 Market Street, which was formerly occupied by the Department of Human Services (DHS). Several months ago, the City was approached by the owners of the property at 115 Market regarding the availability of the property for purchase. The Market Street property is conveniently located near Central Avenue adjacent to the Transportation Depot and the Board of Directors Meeting 2 March 19, 2007 at 7:00 P.M. Central Fire Station and has direct access off three roadways (Market, Olive and Broadway). Also, there are water and wastewater services that surround the property. He commented the property appears to be an excellent site for a new municipal building that could house all administrative offices, which are now in four different locations, including the City Attorney=s Office. He mentioned that in the past several months, he has worked with City Attorney Brian Albright and Finance Director Dorethea Yates to look at the site and gather information on the acquisition of the property but also the future development of a municipal building. He advised if the Board approves the Option Agreement, the next step would be to meet with the City=s financial advisor, Mr. Paul Young, who will have a financing plan at the next Board Meeting. He stated in the past several years, staff has discussed the need for a new municipal building in terms of Finance offices, Parks and City Hall and the benefit of housing all of the administrative offices in one location. He said the timing seems appropriate to consider this because several factors are working in the City=s favor (1) DHS has moved out, and the property is available and is in a good location; (2) there are additional surplus funds available because the City will be paying off the Civic Center Bonds this summer, which will create some additional money with which to work; and (3) there is also some new revenue coming in that will continue to grow from the Oaklawn games of skill and is anticipating that will increase this year and in the next several years. He noted that construction costs are escalating significantly and will continue to do so over the next several years. Therefore, if the City waits three to five years from now, it will be very difficult to finance. He reported there was a recent appraisal on the property (3.7 acres and occupied by a 103,866- square foot building), and the property has been offered to the City for $1 million as is, or if the City requires the property owner to remove the building, it would cost $1.3 million. He stated it is recommended that the property owner do that. He pointed out the building is not worth renovating, and the City would rather have the site clear so the City can develop as it deems fit. He stated the City can purchase the property during the option period for $1.3 million. He noted that a recent appraisal the City had done exceeds that, and the Board approved that appraisal several weeks ago. He reported he had an opportunity to visit with Mr. Clyde Covington today, and that property has a lot of history associated with it. He added that in the 1800s, it was a site for a sanitarium; and if the City purchases the property and develops it, consideration may be given to a historical monument to reflect the history of that property. In terms of construction, the current owner of the property had retained Mr. Doug Arnold to develop some schematics for the building. He stressed that Mr. Arnold has not been retained by the City, but he agreed to provide some construction cost estimates. He advised at the present time, staff is suggesting that the building be about 42,000 square feet. Currently, City Hall, the building behind it, the Finance offices and the City Attorney=s office total about 29,000 square feet. He Board of Directors Meeting 3 March 19, 2007 at 7:00 P.M. pointed out it will provide a more efficient operation having all of the offices in one location. Regarding the construction costs, they are estimated to be $150 per square foot ($6.3 million) and other costs, including architects and engineering, total construction cost is estimated to be $7.6 million. He advised that the City=s financial advisor, Mr. Paul Young, will be at the next meeting to discuss financing. He previously mentioned that the City will be paying off the 2 cent sales tax, and Finance Director Dorethea Yates anticipates the City will have enough money in the next couple of months to pay that tax off and will likely expire on June 1. During the last couple of months of that payment, those taxes will generate a little excess money, which can be applied to the project. He added that it is anticipated there will be sufficient monies to pay off the current Civic Center Bonds around the first week in April. The Mayor would then send a letter to notify the bank that sufficient funds are available, and the current 2 cent sales tax would go off the books on June 1. During the period of April and May, the City would generate some extra money that could be applied to this project. He stated that the City is anticipating new revenue from games of skill at Oaklawn, and the City was conservative in budgeting this year. It is anticipated that will grow significantly over the next three to five years. Also, it is understood that the City will generate additional state turnback money, and the Legislature is currently considering that. He noted that the Governor supports it, and the City anticipates at least $50,000 to $100,000 a year in additional state turnback money starting this year. He reported that Mr. Young will discuss the various financing options with the Board, but the financial proposal he will be presenting will be to dedicate the City=s franchise fees that it currently receives from electrical, cable television and gas, and will be the pledge to finance the bonds for the project; and these revenues would be replaced by revenues from Oaklawn and turnback funds. He advised that the option staff is recommending for Board consideration would be to finance the project for 22 years, annual debt service of about $490,000. Regarding the impact to the General Fund, the City will save over $12,000 a year in rent for the City Attorney=s office and will also have to pay the Water Fund for a portion of the lease for the municipal building , which will be a savings. He stated when the City gets ready to occupy the new municipal building, it can charge out some of the costs for the space to the enterprise funds, anticipating allocating around $119,000 to other city funds. The net impact to the General Fund would be about $355,000 a year. Board of Directors Meeting 4 March 19, 2007 at 7:00 P.M.  City Attorney Brian Albright advised that the cost of the option to purchase will be $50,000, which gives the City the exclusive right to close on this property on or before September 17, 2007. At the time of closing, he stated the City will be credited for the $50,000 paid toward the purchase price; and the agreement is that the property owner will raze any structures that are currently on the premises and render the property to the City free of any debris within 120 days of the closing. He stated the managing member of the LLC, which owns this property, has already executed this agreement. Director Edwards mentioned including Higdon Ferry Road in the additional funds, and City Manager Kent Myers explained this was discussed but there was not a clear reading from the bond counsel that the current sales tax from the bonds could not be delayed any further. He explained that was taken off June 1, thereby creating a limited amount of money available for this. He further stated when this was discussed with Director Edwards, they were looking at $3 million to $4 million that might be available in surplus money, and the City might be able to extend the current sales tax to August or September. However, City Attorney Brian Albright received a new reading in working with the bond counsel that the tax will go off June 1. He explained that the City does not have as much money as was originally thought when they met with Director Edwards regarding the Higdon Ferry Road project. He pointed out that the Board can dedicate this money to anything it wants, but the City has about $2 million that Finance Director Dorethea Yates is anticipating once the bonds are paid off to apply to this project. Director Edwards commented that it is one of the areas where the Board needs to dedicate part of that money. City Manager Kent Myers said he would have Mr. Young be prepared to present that option for the Board to consider, which was in the amount of $500,000. Director Edwards stressed that he did not want to leave that out. Mr. Wayne Roberts, 515 Jerome, pointed out nothing has been mentioned about whether the City was going to sell the three buildings, lease them, or take the money and reduce the $10.8 million debt. He commented that the Board is sending a bad message to the public when it is discussing how to finance this project; but in previous meetings, there has been discussion on how tight the budget was. Now, the Board is discussing spending $50,000. He said that he did not have a problem with that and considers it a good idea but urged the Board not to send the message one day that the City has no money and then the next day, it is going to spend money. He stated if the City is going go into a debt of $10.8 million, he hopes the City will bring it to a vote of the public. Board of Directors Meeting 5 March 19, 2007 at 7:00 P.M.  City Manager Kent Myers said there has been discussion with several people on the sale of the building, but there is nothing guaranteed. Therefore, he did not put that in his proposal. He added that the City has talked to the Advertising and Promotion Commission about possibly acquiring this building and the building behind, but they have not voted on it. He said the City has also talked to the Austin Hotel about buying the Utilities Building, but they have not made a decision. He pointed out that he did not want to offer that as a guaranteed funding source at this time. Mr. Roberts noted he was thinking about letting the public know it was on the agenda to sell the buildings and not keeping three more buildings after the City has built this one. Mr. Bob Driggers, #3 Stonegate, said he is not speaking against the need for a municipal building; but the public should have a voice in whether one is needed and should have some justification beyond what he has seen so far. He stated the primary funding source that was referenced is the leftover tax money once the Civic Center bond obligations are satisfied. He noted in reading Article 16 of the Arkansas Constitution, no tax shall be levied except in pursuance of law and every tax imposing a tax shall state distinctly the object of the same. Also, no monies arising from a tax levied for any purpose shall be used for any other purpose. He stated this is not related to the Civic Center; and in looking at Amendment 62, it says a special tax shall never be extended for any other purpose nor connected for any greater length of time than necessary to retire such bonded indebtedness; in other words, a surplus should not exist, a least not from that tax. The ballot language says it will be used solely to retire the bonds and obligations of the City and those specifics that are required by law on the refunding question for the Civic Center Project, Series 1996, and the second item that was put to a vote on May 28 to finance all or a portion. He pointed out it is very specific because it references equipping, extensions, betterments, improvements to the Hot Springs Civic and Convention Center including particularly without limitation an expansion for meetings, conventions, exhibitions, entertainment, sports events, and related uses, parking, drainage, street and utility improvements and land acquisition therefor. He said it makes no reference to anything not related to the Civic Center. Also, he mentioned there is an Attorney Generals Opinion from State Representative Terry Smith where they wanted to use some similar type tax money for maintenance, books, etc. at the Garland County Library; but in 1995, Attorney General Winston Bryant=s opinion was Ano.@ A request was made from State Representative Allen Maxwell in August 2006 regarding the legality of extending a one percent (1%) tax prior to the expiration of the existing tax deadline, and the Attorney General stated that was not correct. He then posed the following questions: AAre you aware that the $2.1 Board of Directors Meeting 6 March 19, 2007 at 7:00 P.M. million in surplus funds that was referenced in The Sentinel- Record collected over and above the amount required to retire the bonds can be used for no other non-Civic Center related purpose?@; (2) AIf sufficient monies have been collected to retire the Civic Center Bonds, why is the sales tax still in place and still being collected?@; and (3) A In view of the fact that the City used the Little Rock firm of Friday, Eldredge and Clark as the bond counsel when it issued the bonds, why don=t you also use them now?@ City Manager Kent Myers advised that the City is using them. Mr. Driggers asked if the City should not use a qualified bond counsel or bond attorney to provide the answers to these questions. Mayor Bush asked why he did not think the City would be, and Mr. Driggers said he did not see anything where the City had a bond counsel involved but would hope that the City would use a bond counsel, and Mayor Bush advised that the City is using one. Mr. Driggers asked when the public will have a vote on these items. However, there was no response to the question. Director Maruthur said she e-mailed the City Attorney to get the ballot and information, which she received today. She stated the City used Friday, Eldredge & Clark when it did the Civic Center Bonds in 2001 and was wondering why there was nothing in writing this time. She noted that she then called Finance Director Dorethea Yates, who explained that the City is traditionally two months behind in collecting the revenue and that the bonds will be paid off at the end of March. Also, the City would have enough money accumulated; and there are only two times when the bonds can be called, which were January and July 1 and would be paid off. She said that City Attorney Brian Albright e-mailed her a copy of the ballot for the Civic Center and the certification of the election, but it does not say Civic Center Bonds and for other uses. She questioned since the City has surplus funds, which are out of a bond issue that was dedicated specifically and solely for the Civic Center, if those surplus funds can be used for any other use. She mentioned that she wanted something in writing before she voted on this tonight. City Attorney Brian Albright said the bond counsel is not present because the Board is not discussing bonds tonight but the Option Agreement. He stated the City has been in contact with Mr. Ryan Bowman and Mr. Shep Russell, with the Friday, Eldredge & Clark, who are the City=s bond counsel. They have said it is permissible and is the language that is in the ordinance itself that put the issue on the ballot. It states that all monies held by the trustee pursuant to this ordinance which are not required for payment of the bonds are to be paid over and delivered to or for at the direction of the City. It goes on to state that the City may use it for any lawful purpose. Board of Directors Meeting 7 March 19, 2007 at 7:00 P.M.  He noted it is never known when something is going to terminate, and it takes time to get the certification into the State; and the State actually collects the tax for the City. Director Maruthur said that she was wanting something in writing from an expert in bonds, and City Attorney Brian Albright said the Board will have that before any bond issue is discussed and before any decision is made about what to do with the excess funds that are left over after this bond is terminated. He stressed that the City will not move forward without an opinion from bond counsel. Director Maruthur questioned who L.I.P.S. is, and City Attorney Brian Albright said it is a limited liability company that is registered with the State of Arkansas. He noted the registered agent is Mr. Chris Polychron, who is also the managing member. Mr. Chris Polychron, 118 Covey Rise Trail, said that L.I.P.S. is owned by Gary Lax, Marvin Itzkowitz of Little Rock, Chris Polychron, and Tom Schueck of Little Rock. Director Maruthur asked if he was one of the owners of the property, and Mr. Polychron said that they are 25 percent owners each; and he has been the managing member of the limited liability corporation. Director Maruthur asked if he receives a commission and also a part of the sale, and Mr. Polychron said that he did. Director Maruthur said if this option is approved tonight, she would like to make sure that the architectural services would be put out to bid. The architectural services come to a cost of $430,000. City Manager Kent Myers advised by state law, the City is required to put that out for proposals; but the City has not retained any architectural firm to-date. He received a phone call from Mr. David French today, who is interested, as well as other local architects and some from Little Rock. Director Maruthur said that she e-mailed the City Attorney yesterday, and she is only looking for clarification, noting that the Board is discussing millions of dollars. Director Weatherford pointed out the Board is only discussing $50,000 because the Board wants to put an option on a piece of property to buy the piece of property for $1.3 million but is not discussing the building at this time. Director Maruthur questioned if the City has the option to buy it, does that mean the City has to buy it; and City Attorney Brian Albright replied that it does not. He added an option to purchase is giving the City the exclusive right to exercise an option to purchase for a set price. He stated it takes it off of the market so that someone else cannot come in and buy the property when the City is still interested it, getting with bond counsel, and making sure that it is Board of Directors Meeting 8 March 19, 2007 at 7:00 P.M. utilizing the proceeds that are available to the City as good stewards of the community in a legal fashion. Director Maruthur asked if the City has the first right of refusal, and City Attorney Brian Albright advised that it does. Director Maruthur mentioned people have been sending things since it has been in the newspaper; and she has had things placed on her doorstep, has had several phone calls, and the Board answers to the taxpayers. She pointed out they have been referring to enterprise funds and does not know if the general public understands what the enterprise funds are and if they agree with the use of the enterprise funds in this project. She said she would feel more comfortable with having those present who are going to say the surplus money from this Civic Center Bond issue that was approved by the voters can be applied to this. When she first met regarding this issue, her first concern was about the building; and as soon as it was clarified that the building was not a part of it, she was glad to hear it. Now, the City is looking at $300,000 to remove the building. Mr. Polychron replied that the City is asking him to remove the building, and it may cost more than $300,000. Director Maruthur pointed out if it were put out to bid, it may cost less. She said she thought the Board would have some type of opinion about the use of the surplus funds, which was her concern. Mayor Bush said the City has a $50,000 option to put a hold on that property for the City=s purposes. Director Maruthur asked if it was refundable, and City Attorney Brian Albright advised that it was not. Mayor Bush added that the price of the property will be reduced by that amount if the City purchases the property. Director Maruthur said quite often when the Board approves things such as this, it will come back later and point out that the City has a certain amount in it and will build on 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. Abstaining: Director Maruthur; motion carried. Whereupon the resolution was declared adopted. Board of Directors Meeting 9 March 19, 2007 at 7:00 P.M. 8 Proposed Resolution No. R-07-62 A resolution entitled, AA RESOLUTION APPROVING A REVISED SITE PLAN FOR A TRIPLEX LOCATED AT 173 PINEHILL ROAD,@ was taken from the agenda and read by title only. (Appeal) A motion was made by Director Jones, duly seconded by Director Weatherford, that the resolution be adopted as read. Upon discussion, Ms. Kathy Sellman, Planning and Development Director, reported that the applicant, Mr. Wayne Kelso, appeared before the Planning Commission seeking an after-the-fact Article II approval to construct additional triplex dwellings at Pinehill Triplex on about 1/3 of an acre at 173 Pinehill Road in the unincorporated county area of the City=s planning jurisdiction. He had begun construction on a new triplex close to an existing dwelling, and it was determined by the Building Official and others on a site visit that a retrofit to the structures, to provide a one-hour fire rating, would be required before the project could continue. This was made a condition of approval, and Mr. Kelso provided a retrofit plan for both structures. He appeared before the Planning Commission on March 8 with updated information regarding his development, including his approved Fire Code compliance retrofit plan. The Planning Commission directed the applicant to complete compliance with all the efficiencies on the site before returning back to them to seek approval of the site plan. She stated such infrastructure improvements as the Planning Commission was requesting as a condition before he could return to them typically are made conditions of approval by the Planning Commission. She said the recommendation is to approve the appeal, and he is familiar with these conditions and accepts them. Director Smith commented that these structures are less than three feet apart, which is very close; and Ms. Sellman replied it is close; but that is why the extraordinary retrofit is a requirement of approval. Director Maruthur questioned the designation of the district involved, which is ETJ, and Ms. Sellman replied that it is extraterritorial jurisdiction of the City. Mr. Wayne Kelso, 4760 Central Avenue (office), requested that the Board approve the improved site plan. 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 10 March 19, 2007 at 7:00 P.M. total 6. Voting Ano@: Director Maruthur; motion carried. Whereupon the resolution was declared adopted. 9 Proposed Resolution No. R-07-63 A resolution entitled, AA RESOLUTION AWARDING A CONTRACT FOR CONSULTING SERVICES FOR THE REGIONAL TRANSPORTATION MASTER PLAN TO TRAFFIC ENGINEERING CONSULTANTS, INC.,@ was taken from the agenda and read by title only. A motion was made by Director Maruthur, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Ms. Dianne Morrison, MPO Study Director, stated there were five consultants who submitted RFP=s; and one had to be disqualified because they did not send in the proper forms that the Arkansas State Highway and Transportation Department requires. One decided they did not have time to devote to the project. Therefore, there were two consulting firms rated by the selection committee, which chose Traffic Engineering Consultants, Inc. to do the transportation contract. She stated the Transportation Master Plan is a plan to combine all of the transportation plans that the City and County have, such as the City=s Master Street Plan, Master Trails Plan, Long-Range Transportation Plan through the MPO; and County=s Master Street Plan. Also, it includes coordinating traffic signals and what streets might need to be extended or added. She explained that most of this will be 20 years in the future. and there will also be a list of things that are priorities to be done within the next 10 years. She said the contract is for $153,480 and is split into two phases. The first phase will be paid entirely by the MPO in the amount of $69,000. Once it is approved by the City, this will then go to the County for its approval. She noted the MPO Board approved this at their March 15 meeting. The first phase will be from May to October, and Phase 2 will be from November 2007 to April 2008; and that phase is $84,480. She pointed out the Board is voting just on Phase 1, which is already paid. She explained there is a clause in the contract that says before any work can begin on Phase 2, they have to come to the MPO Board; and she will have to return to the Board again to determine if there is any money available from the City and County to assist in paying for Phase 2. City Manager Kent Myers explained that one of the things the traffic consultant will be doing is studying traffic signalization in Hot Springs and Garland County with respect to optimization of existing signals and standards specifications for new signals. They will also create a signal coordination plan for both current and future connections Board of Directors Meeting 11 March 19, 2007 at 7:00 P.M. and make recommendations with regard to the benefits of implementing an emergency vehicle priority system so that the vehicles can get through major intersections. Also, they will be identifying current and future arterials, collectors that will be needed to accommodate growth for the future. He stated the City=s goal in this project is to try to develop a plan the City can implement. About a year ago, the consultant made a presentation to the Board; and after a year of negotiating and getting the funding set in place, the City is ready to move forward on the project. He mentioned this contract requires three public hearings, and the first public hearing will be held in the next several months. Before the consultant gets started, there will be a public hearing, which will be advertised to give the public an opportunity to meet with the consultant and present their ideas and concerns so they can take that into account during the study. Ms. Morrison stressed it is important that the public attend because they listen to the public. Director Maruthur stated that she and Mayor Bush are on the MPO Board (Metropolitan Planning Organization) , and they interviewed the applicants. She pointed out the consultant is going to help the traffic flow, especially on Central, MLK and Higdon Ferry; and this group made it very clear that even if they have an idea, if the public or Board of Directors or any entity has another idea or view, that their proposal is not fixed so that is why it is important to attend these meetings. They said in their signalization adjustment, when there are different events, especially off MLK and Higdon Ferry, they can adjust the lights and even when there is a left or right turn for that specific event. She stated all of the people who are complaining about the traffic have an opportunity to voice their comments and attend the meetings. Mr. Bob Driggers, #3 Stonegate, thanked the Board for selecting this consultant and stated he looked them up; and they are well qualified and have a good reputation. He commented this is a positive step, and he hopes the Board will comply with their recommendations once they are adopted. Director Maruthur pointed out that TEC was the only one in their presentation that strictly works for transportation and is strictly dedicated to traffic, where the other companies were diversified. 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, Board of Directors Meeting 12 March 19, 2007 at 7:00 P.M. and Bush, total 7. motion unanimously carried. Whereupon the resolution was declared adopted. 10 Proposed Ordinance No. O-07-35 An ordinance entitled, AAN ORDINANCE ADOPTING REGULATIONS GOVERNING THE EXTENSION AND CONNECTION OF MUNICIPAL WATER AND WASTEWATER SERVICES,@ was taken from the agenda for consideration. A motion was made by Director Smith, duly seconded by Director Maruthur, that the ordinance be tabled for 30 days; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried to table for 30 days. 11 Proposed Ordinance No. O-07-36 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PURCHASE OF ODOR CONTROL EQUIPMENT; AND FOR OTHER PURPOSES,@ 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 Maruthur, that the ordinance be passed as read. Upon discussion, Mr. Steve Mallet, Utilities Director/Public Works Director, reported there have been efforts to install odor control units on various wastewater pump stations; and over the past two years, the City has purchased certain units from Process Solutions, Inc. and has found that those odor control units work much better than any others. This ordinance waives competitive bidding and provides for the purchase of three odor control units from Process Solutions in the amount of $120,000. 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 13 March 19, 2007 at 7:00 P.M. 12 Proposed Ordinance No. O-07-37 An ordinance entitled, AAN ORDINANCE ESTABLISHING AND REGULATING A CITY MARKETPLACE,@ 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 Maruthur, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Ms. Terry Payne, Public Information Officer, explained that the Farmers= Market, which has been operating on City-owned property in the Transportation Plaza over the last 12 years, has grown considerably; and Deputy City Manager Lance Hudnell recognized the fact that there is not an ordinance in place that establishes the market. Now that the Farmers= Market has grown to the point where it needs to formalize the process, this ordinance establishes and regulates a city marketplace. 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. 13 Proposed Ordinance No. O-07-38 An ordinance entitled, AAN ORDINANCE AMENDING THE BUSINESS LICENSE AND OCCUPATION TAX CODE (ORDINANCE NO. 3836, AS AMENDED) BY REVISING THE REVIEW AND APPEAL PROCEDURES; 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?@ Board of Directors Meeting 14 March 19, 2007 at 7:00 P.M. and upon motion of Director Jones, duly seconded by Director Edwards, that the ordinance be passed as read. Upon discussion, Deputy City Manager Lance Hudnell advised this replaces the current Board of Review with the Board of Directors, commenting the Board of Review has had very little activity over the years and has become difficult to find citizens to staff this Board of Review. 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. 14 Proposed Ordinance No. O-07-39 An ordinance entitled, AAN ORDINANCE AMENDING ORDINANCE NO. 5510 (TRANSIENT MERCHANT ORDINANCE) BY CHANGING THE EFFECTIVE DATE,@ was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Daniel, duly seconded by Director Maruthur, that the ordinance be passed as read. Upon discussion, Director Maruthur stated this ordinance changes the effective date of the transient merchant ordinance to June 1; and for those who received a notification, she assumes they will be receiving another notification. 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 15 March 19, 2007 at 7:00 P.M.  OTHER BUSINESS 15 Board of Directors Items Director Edwards announced that in the past, the City has required that garage sale signs not to be nailed to power poles, but during the weekend, he noticed that garage sale signs have been posted on trees within the median in the 800 block of Grand Avenue. City Manager Kent Myers advised that is not allowed and will be referred to the Police Department and Parks Department. Director Maruthur asked if that refers to private property since many people have been nailing for rent or sale signs on trees. City Attorney Brian Albright stated there is no problem with trees; but if it is on a telephone pole, that is in the right-of-way and property of Entergy and cannot be placed at those locations. He added if someone is putting a sign on a tree that is on their property, that tree is their property; and they can place a sign for a garage sale or for rent sign. However, if someone has a home business, there are regulations that handle that. Regarding the signs on the median on Grand Avenue, he stated people cannot place signs at that location. Director Maruthur questioned if the City could restrict it to tying a sign on instead of putting a nail in the tree that will kill the tree, and Mayor Bush pointed out that is on their private property; and the City cannot do that. Director Jones reported on her trip to the National League of Cities in Washington, DC., stating one of the main topics of interest to her was the affordable housing. She said there is a need for homes for teachers, firemen and policemen; but the cities do not have the finances to get that kind of money. At one workshop she attended, the president of the National Housing Conference from Washington, DC discussed how to get the money for these teachers, firemen and policemen. She reported that the highlight of the trip was the Mayor=s Youth Council. She also attended Leadership in the Communities for different directors in different areas of the city. She noted that everyone cannot be a director in District 1, and everyone cannot be a director in District 2 because everyone has different needs and different wants. She stated that the Directors need to learn how to ask for what they want in their own district that they represent, and some are able to serve in more than one capacity. She said she also attended the National Black Caucus meeting of which she is a member, as well a workshop that had a solution for the housing market and how to get grants from the federal government. She pointed out that they still have to go through their legislators in order to get help with these funds. Director Maruthur reported that the fourth annual, first ever, shortest St. Patrick=s Day Parade held on Saturday was a success; and Mario Lopez was the grand marshal. Board of Directors Meeting 16 March 19, 2007 at 7:00 P.M.  She stated that 17 years ago was the big flood downtown. Also, she wished Happy Birthday to Marcus Phillips, who is 92 years old today and was a city employee and did the mapping before the City was computerized. He is residing at the Crown Trace Villa where they have made a library for him. He is still the City=s Trail Master and knows more about Hot Springs and its history than anyone she has ever met. She explained why she abstained on her vote on the Option Agreement, pointing out all she wanted was some information in the form of a written opinion by a bond expert. She stressed that she is not opposed to the purchase of the land for a new City Hall, but the Board should be responsible to the taxpayers and make sure everything is lined up before spending $10,000, $20,000 or $50,000. She said she did not want it misconstrued that she was opposed to it. She stated that the Board should do things based on sufficient, written information when it comes to the taxpayers= money. Mayor Bush said that he agreed, but he supports and voted for the Option. 16 City Manager=s Report City Manager Kent Myers gave the following report: 1. Regarding the National League of Cities Conference, he said they received a consistent message from all of the speakers at the workshops and conference that due to the fact that the government is spending so much money on the war, there is a very limited amount of money available for local programs. He reported that Senator Blanche Lincoln agreed to meet with the Hot Springs delegation and is very familiar with Hot Springs and its specific needs. She knew what the Police and Fire Departments needed, as well as the Farmers= Market and what it needed. All of Hot Springs= delegation, Senator Pryor, Senator Lincoln and Congressman Ross, gave a very positive reception. Also, the Mayor=s Youth Council was very well received; and the other delegates looked to Hot Springs as a role model as far as involving the youth in this conference and in city government. Four members of the Youth Council attended, and only three communities in Arkansas were represented, and Hot Springs was the most active of any group. 2. A Board work session needs to be held in mid to late April. There are five Mondays in April, and his office will poll the Board. Mayor Bush said that was discussed at the agenda meeting and decided on late April. Board of Directors Meeting 17 March 19, 2007 at 7:00 P.M.  Director Maruthur asked that City Manager Kent Myers report on a telephone call he made as a result of the visit to Washington, DC regarding the grocery store and developing in a neighborhood. City Manager Kent Myers reported that he and Director Jones attended a meeting, and there was a speaker from one of the suburbs of Washington, DC talking about the importance of having a grocery store as an economic generator in terms of neighborhood redevelopment. He stated this was a neighborhood that did not have any commercial development. That city had some acreage it was willing to donate for a grocery store to come into that neighborhood and used that grocery store to rebuild that entire neighborhood. He pointed out that the Piggly Wiggly grocery store was important to the Park Avenue area; and since it closed, he believes the neighborhood has suffered. He mentioned there is a website on how to bring grocery stores into older neighborhoods, and he has already received a phone call from one of the property owners in the area who is interested in working with a grocery store to bring them into the Park Avenue area. The City staff will be working on that and try to get some more information. He said that neighborhood needs a grocery store, and it could not only draw from the Park Avenue/Whittington Avenue area; but there is not a grocery store between downtown and Hot Springs Village and could possibly generate from the Fountain Lake area. He said the property owner had contacted him about donating or selling at a reasonable price some acreage for a grocery store. Director Maruthur said that she has been talking about this ever since Piggly Wiggly closed. She stated she attended a meeting at St. Mary=s, and that was the No. 1 priority that was identified for some funds that were left over from St. Mary=s. Also, this was addressed at PACA and many other meetings and organizations that she has attended. She stated the idea of the City donating some property would be a good idea. However, City Manager Kent Myers advised that legally the City cannot donate any property. He explained this is what happened in a neighborhood in Washington DC, but Arkansas law is different than other states. He said the City can work to create some other incentives, but legally it cannot donate property for a private entity. 17 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:15 p.m., to meet again on Monday, April 2, 2007, at 7:00 p.m. Board of Directors Meeting 18 March 19, 2007 at 7:00 P.M. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 19 March 19, 2007 at 7:00 P.M.