Board of Directors

MINUTES BOARD OF DIRECTORS MEETING MAY 19, 2008, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Monday, May 19, 2008, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Reverend Don Robinson, 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 Weatherford, that the agenda be approved. Upon discussion, Mayor Bush announced that Item No. 18 (Claim from Mr. Brad Wilkins Regarding Broken Water Line in Front of Residence at 204 Fairoaks Place) and Item No. 19 (Claim from Bobby and Blair Hannon Regarding Broken Water Line in Front of Residence at 202 Fairoaks Place) have been withdrawn. Mayor Bush then called for a vote on the motion to approve the agenda, as amended; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of May 5, 2008 Board Meeting A motion was made by Director Maruthur, duly seconded by Director Edwards, that the minutes of the May 5, 2008 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests  Director Maruthur announced that Reverend Don Robinson, who gave the invocation, is the individual who inspired her and the Mayor to sing AIn the Bleak Midwinter,@ at the December 17, 2007 Board Meeting. 5 Acknowledgment of Financial Statements for March 2008 Mayor Bush announced that the Financial Statements for March 2008 are on file in the Finance Department for review by the Board and the public. CONSENT AGENDA The Consent Agenda consisted of the following: 6 Public Safety Report (May 7, 2008). 7 Proposed Resolution No. R-08-103 Approving Certain Bid Awards (a) Video Surveillance System - Intracity Transit (reject and rebid); (b) Commercial Dumpster Side Pocket Installation - Sanitation [awarded to Tri-Lakes Ornamental Ironworksin the amount of $75,000]; (c) Concrete/Cement - All Departments [annual supply contract awarded to Smity Ready Mix and C. J. Horner Company; (d) Reinforced Concrete Pipe - Public Works [annual supply contract awarded to Hanson Pipe]; and (e) Plumbing Service - All Departments [annual supply contract awarded to Sheets Plumbing]. 8 Proposed Resolution No. RB08-104 Approving Change Order No. 1 to the Contract with Rick McGinty Company to Relocate Certain Navigational Aid Equipment Owned by the FAA. 9 Proposed Resolution No. R-08-105 Awarding a Contract for Engineering Services for Runway 13/31 Rehabilitation, Phase II, to Delta Airport Consultants, Inc. Board of Directors Meeting 2 May 19, 2008 at 7:00 P.M. 10 Proposed Resolution No. R-08-106 Authorizing the Mayor to Execute a Lease Agreement with Essential Food Group, LLC for Certain Real Property Located at 325 Broadway. 11 Proposed Resolution No. R-08-107 Adopting Certain Guidelines for Established Entertainment Districts Within the City. 12 Proposed Resolution No. R-08-108 Adopting Compliance Options Regarding Communications Services. 13 Proposed Resolution No. R-08-109 Authorizing the Filing of a Grant Application with the Arkansas State Highway and Transportation Department for Discretionary Capital Assistance from the Federal Transit Administration (2009 Replacement Transit Mini-Bus). 14 Proposed Resolution No. R-08-110 Accepting a Grant from the Federal Transit Administration, United States Department of Transportation, for Federal Transportation Operating Assistance as Authorized by 49 U.S.C. Chapter 53, Title 23, United States Code; and Other Federal Statutes Administered by the Federal Transit Administration. 15 Proposed Resolution No. R-08-111 Confirming the Reappointment of Vina Cook to the Hot Springs Housing Authority. 16 Proposed Resolution No. R-08-112 Authorizing the Submission of an Application for HOME Program Funding to the Arkansas Development Finance Authority to Expand Affordable Housing Activities. 17 Proposed Resolution No. R-08-113 Accepting Certain Stormwater Drainage Systems for Perpetual Maintenance; and for Other Purposes. A motion was made by Director Jones, duly seconded by Director Maruthur, that the Consent Agenda be approved; and upon roll call, the following voted Aaye@: Board of Directors Meeting 3 May 19, 2008 at 7:00 P.M. Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried. NEW BUSINESS 18 Claim from Mr. Brad Wilkins Regarding Broken Water Line in Front of Residence at 204 Fairoaks Place. (Withdrawn from Agenda) 19 Claim from Bobby and Blair Hannon Regarding Broken Water Line in Front of Residence at 202 Fairoaks Place. (Withdrawn from Agenda) 20 Proposed Resolution No. R-08-114 A resolution entitled, AA RESOLUTION AWARDING A CONTRACT TO YOU SEE US, INC. FOR CERTAIN ADVERTISING RIGHTS ON HOT SPRINGS INTRACITY TRANSIT BUSES,@ was taken from the agenda and read by title only. A motion was made by Director Edwards, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, Mr. Bob Reddish, Intracity Transit Resident Advisor, stated that in order to obtain more revenue for the Intracity Transit System, bids were sent out for advertising rights on the transit buses, which includes wrapping the buses, interior and exterior advertisements. The City received a bid from You See Us, Inc. to do the advertising at 15 percent advertising revenue for the first year to come to Intracity Transit and increasing in following optional terms to 20 percent, 25 percent, and capping at 40 percent. Mayor Bush questioned the length of the contract, and Mr. Reddish advised that it is a one-year contract with four option years. Director Daniel expressed concern that this company, which is buying out the rest benches, has not been able to find buyers to wrap the buses. Mr. Reddish replied that about a year ago, the City sent out an RFP for a company to wrap the buses, and Supertints from Jonesboro, Arkansas, received the bid. However, they never had a presence in Hot Springs to attempt to produce; therefore, the City had to terminate that contract. He pointed out it was not because they could not find anyone to pay for on-board bus advertising, but they never tried to find anyone to pay for it. Board of Directors Meeting 4 May 19, 2008 at 7:00 P.M.  Director Daniel said he understood because the price of wrapping the bus is so expensive, more people want to advertise in the bus or put a sign on the outside of the bus rather than pay for the expense of wrapping the bus. Mr. Reddish replied that it is more expensive to wrap a bus, and hopefully some businesses will wish to wrap on the buses. However, this includes three-prong advertising attack (bus wraps, posters on the outside, and posters on the inside of the buses). Mr. Bryan Duke, 8 Doral Drive, Little Rock, Arkansas, an owner of You See Us and Benches Etc., said they have had the bench contract for the last year and have chosen to sell that to Creative Outdoors. For the bus wraps, he said they do not intend to place placard advertising but want to sell as many wraps as they can. He advised the wraps are approximately $10,000, and the rental revenue is from $700 to $800 per month. He commented their goal is to wrap all 12 of the buses and not put blanket advertising similar to what their benches would be on the sides of the buses. Deputy City Manager Lance Hudnell explained what was heard from the other company was that they were having trouble finding anyone to wrap the buses; therefore, staff was making assumptions. He said the other company never had anybody in Hot Springs and had stated that the times they came into town and tried to sell, they were having trouble. He pointed out that the City is uncertain about how productive this may or may not be and will not know until there is someone in town trying to sell it. Director Daniel asked if they would place placard signs on the outside of the buses if they are unsuccessful at selling any wraps. Mr. Duke replied the way the contract is now, they have that right if they are unable to sell any wraps; however, it is not economically advantageous. Director Weatherford pointed out the City has fought that kind of advertising on vehicles for the last four or five years but now is discussing the same thing again. He said it was his understanding that it was a wrap and did not think the City was going to start placing placards on the buses but has a feeling that is what will happen. Mayor Bush asked if the Board has to approve the placards if the wraps do not work, and City Attorney Brian Albright advised that the Board does not. Mr. Duke pointed out there is one contract for inside and outside. Board of Directors Meeting 5 May 19, 2008 at 7:00 P.M.  Director Daniel said his problem goes back to the small business person, and the City does not allow them to do off-premise advertising but does allow it if it is revenue for the City. He stated he was thinking of the image of telling one thing; but when a person applies for a sign permit, the City is telling that person how big it can be and what it can say. Director Maruthur asked if Director Daniel was having a problem with the fact that the City does not allow off-site advertising, but this would allow advertising; and Director Daniel said that was correct. Director Maruthur questioned if he had any problem with the wrap, which is advertising; and Director Daniel replied that he did not state he did not have a problem with the wrap but wanted know if the wrap was not going to be done, could they also do the other. He said he did not say whether he was going to vote for or against it if it was a wrap. Director Maruthur questioned the difference whether they have a wrap or not and said she would prefer the wrap. Director Daniel replied the only thing he wanted to bring out is if they were not going to be wrapped, they would be entitled to place placard signs on them. Director Smith mentioned that bus exterior ad panels are written in the contract and questioned what percentage that would be, and Mr. Duke replied that it would be their position that they just sell all wraps. He added they have been doing the benches but never have done buses before which is the reason they came up with a percentage of revenue since they could not guarantee an amount of money to the City because they do not know how many wraps they could sell. He said it is not worthwhile for them to place $200 worth of outside placard advertising on 12 buses. He advised that their employee, who works full-time at it, will solely be going after the wraps. Director Smith questioned if the bus exterior ad panels were eliminated, could they live with the contract; and Mr. Duke replied that they could. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Edwards, Daniel, and Bush, total 6. Voting Ano@: Director Weatherford; motion carried. Whereupon the resolution was declared adopted. 21 Proposed Resolution No. R-08-115 Board of Directors Meeting 6 May 19, 2008 at 7:00 P.M.  A resolution entitled, AA RESOLUTION AUTHORIZING THE ASSIGNMENT OF AN AGREEMENT WITH BENCHES ETC. INC. TO CREATIVE OUTDOOR ADVERTISING OF AMERICA, INC. AND APPROVING ADDENDUM NO. 1 TO SAID AGREEMENT,@ was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Bryan Duke stated he is present to answer any questions, as well as Mr. Marc Oosterholt, from Creative Outdoor Advertising of America, Inc. He said they have had the contract and the former owner has had the contract with the City for approximately 20 years. He commented that the advertising on the benches is a way for the small, local advertisers to sell space in an off-premises yet regulated manner. He mentioned they were approached several months ago by Creative Outdoor Advertising of America, Inc. with an offer to purchase. He advised they have the Little Rock and Fort Smith markets in Arkansas and approximately 6,000 bench faces across the United States, having been in business 25 years. He stated they are based out of Ontario and Naples, Florida, and requested the Board=s consent to assign their contract to Creative Outdoor Advertising of America, Inc. for the remainder of the term. Director Daniel questioned how many blanks do they have at the present time, and Mr. Duke advised there are six. He added they have been running from six to ten over the last six months. Director Daniel asked how many benches do they have inside the city limits, and Mr. Duke replied there are 138. Director Daniel asked if the City has any opportunity to set the rates, and Deputy City Manager Lance Hudnell advised that the City does not in this contract. However, in the previous one that the Board just passed, the rates have to be approved by the Board. He added this is a previous, existing contract for this term and does not include that clause. Director Daniel asked what is the understanding with the State of Arkansas, and Mr. Duke advised they have been working with them under a statute that has been around for 40 years. He explained it is a prohibition for the State Highway Department to have commercial advertising on their highway right-of-way; and because of the public purpose of the benches and at the bus stops and public rest benches, nothing has ever come of it. He said it came to light last year, and his law firm has been dealing with Mr. Dan Flowers, Director of the Arkansas State Highway and Transportation Department; and there are nine cities that have transit systems. He advised they are joining together with Mr. Flowers= consent to draft legislation to have an exclusion to that policy for these benches because they serve a public benefit to the cities. He stated they Board of Directors Meeting 7 May 19, 2008 at 7:00 P.M. generate revenues for the transit departments, plus they pay for the benches and bus shelters; and they have had an understanding from the Arkansas State Highway and Transportation Department that they are going to have a status quo for the present time while they try to draft legislation that would be acceptable to his company, the highway department, and the cities. He noted that he is getting all of the industry together and then will turn to the transit systems and the Mayors and City Councils of the different municipalities where there are transit systems. Director Daniel pointed out that the City uses a different terminology; and since these are for the transit system, he is calling them bus benches, and Mr. Duke replied that they are bus and public rest benches. Director Daniel commented that the majority of the City=s benches are on streets where buses do not run. Mr. Duke stated there are four individuals who own the company; and they may ultimately have to scale back and only put advertising benches at bus stop locations, which Creative Advertising is accepting and had plans to do possibly in the future anyway. He added that may be the outcome of what they are doing with the Arkansas State Highway and Transportation Department. He noted they may accept the plan where if it is approved by the City under a master plan, then it is looked at by the Arkansas State Highway and Transportation Department, and there may be benches at other locations other than at the bus stops and other approved locations. He stated they could reduce the benches from 138 to a number less than that. Mayor Bush questioned why Director Daniel would want to reduce them if the City has 138 benches and all but six are filled; and Director Daniel commented he does not have a problem with that. He stressed that he is not against the benches and the quantity of benches. He mentioned a bench can be placed at a corner with an arrow pointing up indicating a certain business or company. He pointed out he could not have a sign there if it were not for that bench. He questioned the monthly rate on the benches, and Mr. Duke replied they are from $54 to $80, depending upon the location. Director Daniel commented if it is $960 a year, and that person cannot pay $960 a year, then he is left out but still the sign is pointing to a business that is not on the street; and that person has outsmarted the Sign Code. He said he is not against the revenue and wants to have them and people to be able to rest on them. Mayor Bush said he agreed with the benches and considers them playing a public role. Board of Directors Meeting 8 May 19, 2008 at 7:00 P.M.  Deputy City Manager Lance Hudnell pointed out from the Sign Code standpoint, by having the benches under a franchise of the City, then the City can control the look of the bench, the size of the bench, and the size of the sign; whereas if the City allowed off-site advertising, it could control the size of it. However, it gets much more problematic when the City has a total control situation. He pointed out if the City does not like where a place where a bench is located, the City calls them and tells them to move it. He stated if the City gets into off-site advertising with regard to the merchant directly, then once it has been permitted, the City cannot tell them to move it. He noted it allows the City to have more regulation of those because the City has a franchise agreement under a contract as opposed to a permit. Director Smith questioned the amount of time left in the original contract, and Mr. Duke advised that it is the remainder of this year and all of next year. Deputy City Manager Lance Hudnell added that it is rebid at that point; and the Board can then craft the bid packet any way it so chooses. He added the Board approves it each year; but at the end of the five-year term, it is rebid completely; and new proposals are received. Mr. Marc Oosterholt, 1340 Commerce Lane, Jupiter, Florida, said they are in 70 different municipalities; and two are in Arkansas (Fort Smith and Little Rock). He explained they run their program very strictly and typically leave them only at bus stops unless the City wanted them not to be at bus stops. He pointed out their main client is small, local businesses; and they try do everything on a monthly basis so their clients do not have to pay the entire amount up-front; thereby making it very cost-effective for local businesses. 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. 22 Presentation of Condemnation Resolutions Mr. Bart Jones, Rehab Administrator, gave a slide presentation and explained the conditions on the following condemnation resolutions. 22a Proposed Resolution No. R-08-116 Board of Directors Meeting 9 May 19, 2008 at 7:00 P.M.  A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (127 GROVE),@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, City Attorney Brian Albright questioned if notice was obtained of the property owner, and Mr. Jones advised that he did. He added this was a drug house that was shut down by the Drug Task Force. City Attorney Brian Albright asked if anyone was present to speak in opposition to the condemnation, and there being no one to speak in opposition, 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. 22b Proposed Resolution No. R-08-117 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (427 WALNUT),@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, City Attorney Brian Albright questioned if notice was obtained of the property owner, and Mr. Jones advised that he did. City Attorney Brian Albright asked if anyone was present to speak in opposition to the condemnation, and there being no one to speak in opposition, 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. 22c Proposed Resolution No. R-08-118 Board of Directors Meeting 10 May 19, 2008 at 7:00 P.M.  A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (206 HOWE),@ was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Jones advised that notice was obtained of the property owner. City Attorney Brian Albright asked if anyone was present to speak in opposition to the condemnation, and there being no one to speak in opposition, 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. 22d Proposed Resolution No. R-08-119 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (221 NEWTON),@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, City Attorney Brian Albright questioned if notice was obtained of the property owner, and Mr. Jones advised that he did. City Attorney Brian Albright asked if anyone was present to speak in opposition to the condemnation, and there being no one to speak in opposition, 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. 22e Proposed Resolution No. R-08-120 Board of Directors Meeting 11 May 19, 2008 at 7:00 P.M.  A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (120 MOORE),@ 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, Mr. Bart Jones advised this house is open and has been on and off for the last two years. He stated there was a transient living there on a regular basis and was actually a prostitute. Mr. Edward Ross, owner of the property, stated he has cleared out everything in the house and secured all of the windows and doors and mowed the lawn. He said there is still some more work to be done, but the building is secured; and he is planning to get it up to code. Director Maruthur questioned how long he has been the property owner, and Mr. Ross stated that he lived in the house since 1989; and it was heir property. He then moved out and was not aware anything was going on until he was informed about a prostitute living there. He said when he left the property, it was secure, and he has some things that need to be removed and plans to do that this week or next week. Director Maruthur mentioned in the papers that he received, he would have time to rehabilitate the home if it is condemned. Mr. Ross said that he has not received the papers, and he is in and out of town. He stated when an employee of the City came to the house to inform him about it, apparently the papers were mailed to him; but he did not have the papers and was not aware until he was informed verbally. He said he then immediately started working on the house. Mayor Bush asked how long it would take him to bring it up to code, and Mr. Ross said that he would estimate it would take him a month since he has to get the water and electricity turned on. Mr. Bart Jones advised that Mr. Ross has 30 days after tonight to either raze or remove the structure or repair it, and staff is recommending proceeding with the condemnation based on that. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, Board of Directors Meeting 12 May 19, 2008 at 7:00 P.M. and Bush, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 22f Proposed Resolution No. R-08-121 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (206 KANSAS),@ was taken from the agenda and read by title only. A motion was made by Director Edwards, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, City Attorney Brian Albright questioned if notice was obtained of the property owner, and Mr. Jones advised that he did. City Attorney Brian Albright asked if anyone was present to speak in opposition to the condemnation, and there being no one to speak in opposition, 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. 22g Proposed Resolution No. R-08-122 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (116 TOM ELLSWORTH),@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones reported this structure is periodically open, and the owners will go by and secure it occasionally. However, he has not in the past had any success in getting them to repair it. He noted they have contacted him and City Attorney Brian Albright today stating they are going to get a permit. He said staff would recommend proceeding with the condemnation; and if they get permit, the City will work with them. Board of Directors Meeting 13 May 19, 2008 at 7:00 P.M.  City Attorney Brian Albright advised that he received a letter today from Mr. Morse Gist, attorney representing Ms. Katy Lockridge, the owner of the property. He advised that Mr. Gist was asking initially that it be pulled, and he explained to him that the property owner would have at least 30 days to pull a permit to rehab. He said that he understood that and asked that the City proceed forward. Also, that would be his recommendation to proceed with the condemnation; and the property owner could get a permit within the next 30 days. 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. 22h Proposed Resolution No. R-08-123 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (363 CEDAR),@ was taken from the agenda and read by title only. A motion was made by Director Edwards, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Jones stated notice was obtained of the property owner. City Attorney Brian Albright asked if anyone was present to speak in opposition to the condemnation, and there being no one to speak in opposition, 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. 22i Proposed Resolution No. R-08-124 A resolution entitled, AA RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623 (306 PLEASANT),@ 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. Board of Directors Meeting 14 May 19, 2008 at 7:00 P.M.  Upon discussion, Mr. Bart Jones stated the next door neighbor secured the structure. He mentioned the City had to cut it every year, three or four times a year for the last five years. He added the foundation system is starting to deteriorate, and there is some leakage in the roof. However, he cannot get anyone to make any repairs. He said that staff is hoping that based on this condemnation, the owner will show up and try to get something done with it. Director Jones pointed out that it is in the Historic District; and Mr. Jones explained if the Board condemns it, the City could not tear it down without the Historic District approving it. Therefore, he would have to take it to the Historic District. City Attorney Brian Albright questioned the owner, and Mr. Jones replied that it is a lady in Little Rock. However, he did not have her name with him; but he does have proof. City Attorney Brian Albright asked if anyone was present to speak in opposition to the condemnation, and there being no one to speak in opposition, 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. 23 Proposed Ordinance No. O-08-39 An ordinance entitled, AAN ORDINANCE WAIVING REQUIREMENTS OF COMPETITIVE BIDDING FOR AN ENTERPRISE SOFTWARE LICENSE AGREEMENT WITH ENVIRONMENTAL SYSTEMS RESEARCH INSTITUTE, INC. (ESRI); AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Smith, 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. Board of Directors Meeting 15 May 19, 2008 at 7:00 P.M. 24 Out-of-State Travel to Hanamaki, Japan for Director Carroll Weatherford A motion was made by Director Jones, duly seconded by Director Edwards, that the out-of-state travel to Hanamaki, Japan, for Director Carroll Weatherford, be approved. Upon discussion, Ms. Terry Payne, Public Information Officer, advised that June 1 is the deadline by which anyone who wishes to travel to Hanamaki, Japan, in the fall of this year must submit a $500 deposit. She reported to-date, four citizens have indicated an interest in going to Hanamaki; and typically, the trip centers around the annual Hanamaki Festival, which will occur from September 12 to 14, 2008. She stated the Sister City Coordinator will lead a Hot Springs delegation if citizens commit to the trip by the deadline, and also Director Carroll Weatherford has stated an interest in going. She advised it is the 15th anniversary year for the Sister City relationship, which is significant to the Japanese, although no specific plans have been made to celebrate this anniversary. However, it is possible between now and that time, they may create a ceremony to mark this occasion. She pointed out a cap of $3,000 has been set for transportation costs for any Board Member to go on this trip, and it is noted that travel costs will probably increase between now and the booking date. She added the actual cost may be less than $3,000, but the City has set a cap for travel at $3,000; and meals and incidental costs are estimated at $500. Therefore, this agenda item involves Board consideration of Director Weatherford=s travel to Hanamaki, Japan, in September for an amount not to exceed $3,500. Mr. Blake Robertson, 209 Trojan Terrace, stated there are many people in District 4 and people in general who are very upset with City Directors and City staff going on a vacation on City dollars to Hanamaki, Japan. He noted with the state budget and city budget so tight, city governments watching the spending and driving of cars, it is a shame for a Director to be spending several thousand dollars of the taxpayers= money to go on vacation. Mr. Bob Driggers, #3 Stonegate, pointed out these are difficult times for people with gasoline prices close to $4 a gallon; and he saw a news article last week where the City Manager said the City needs to cut back on travel for city vehicles. Also, several families are canceling vacations and have canceled tripes to visit relatives. He stated Director Weatherford has already been to Hanamaki three times in the last couple of years, plus Reno, Nevada; New Orleans, Louisiana; and Washington DC and encouraged the Board to vote against this. He questioned how Director Weatherford could justify this and if this is a celebration that truly requires his attendance. He said Board of Directors Meeting 16 May 19, 2008 at 7:00 P.M. he has a copy of the Hanamaki website and sees no event or festivities or any news about it. Director Weatherford responded to Mr. Driggers stating this is a program that the City became involved in 15 years ago and is not something he started. He pointed out someone usually goes to Hanamaki, Japan, for this trip to represent the City; and he gave everyone on the Board an opportunity to sign up if they wanted to go. However, he was the only one who was willing to go and take the ten days out of his time and do it. He stressed this is a program that the City needs to either be in or out; and at the present time, the City is in it and that is why he is going. Mr. Driggers questioned how many times he has been, and Director Weatherford stated that he has been three times. Director Maruthur made a motion to amend the motion to approve the travel to Hanamaki, Japan, for Director Weatherford, contingent upon a fund-raising effort to help Director Weatherford attend. Upon discussion, Director Maruthur added this is money the City could use right now and has nothing to do with the Sister City Program. She added that she believes it is an excellent program, and there are good people in place. She said that she believes between now and September 12, an effort could be made to raise $3,000 to send Director Weatherford to Hanamaki, Japan, so the taxpayers will not have to pay. She mentioned she would be willing to help with that fund-raiser. City Attorney Brian Albright asked for clarification on Director Maruthur=s motion and questioned whom she would suggest to be involved in the fund-raiser, whether it is the citizens, the Board, employees, or Director Weatherford. Director Maruthur responded that Director Weatherford has participated in several cook-offs. She added it is the principle of it, and $3,000 in one way may not seem like very much money when looking at the City=s overall budget. City Attorney Brian Albright said he was not questioning her principles on it but trying for the Board to know what they are voting on. He asked if she is suggesting that the citizens participate in a fund-raiser, employees, the Board, or Director Weatherford. Director Maruthur stated since the Board is going to vote on allocating no more than $3,500, she believes the Board should make the effort to come up with some type of idea between now and September 12. City Attorney Brian Albright pointed out that the deposit is needed by June 1. He asked if she was willing to commit the deposit of $500, Board of Directors Meeting 17 May 19, 2008 at 7:00 P.M. and Director Maruthur said the Board should get to work if it wants to spend $3,500. She added that she believes it should be the Board=s responsibility and pointed out the Board is elected to make policy and not fund travel. In light of the economic situation, she mentioned a memo from the City Manager regarding fuel cost increases and updated financial information, which is all related to the economy. City Attorney Brian Albright asked if she wants to amend the motion to provide that the $500 deposit would be tendered by the City, and the balance would be raised through some form of a fund-raiser to be devised by the Board between now and the deadline. Director Maruthur said she would like to see a sponsorship for the $500, and the Board have some type of event to raise the money. She added she did not believe the taxpayers should be paying the bill in light of the economic situation. City Attorney Brian Albright questioned how the Board is supposed to dictate to someone to be a sponsor. Director Maruthur replied that Director Weatherford is the director who wants to go. City Attorney Brian Albright asked if she is saying he needs to come up with a plan to pay for it himself, and Director Maruthur said he should for the sponsorship of the $500; and the Board should put something together to raise the rest of the money. City Attorney Brian Albright asked if the motion to amend is for Director Weatherford to pay the $500 deposit and the balance will be raised by the Board through some fund-raising effort that is devised between now and the deadline. Director Maruthur replied that Director Weatherford should find a sponsor, and the sponsor could be him or anyone he knows, or an organization. She said he could probably raise the $500 and contribute also. Mayor Bush asked if this would mean anytime a Board Member wants to go out of town, the money will have to be raised for that purpose. Director Maruthur replied she was not saying that and explained that when the Board participates in the Municipal League, the cost is not $3,500 a person. Mayor Bush commented it is several hundred dollars and asked if she was capping it at $3,000 and anything over that. Director Maruthur pointed out that is a structured meeting to help the Directors network with people who are doing what the City Board is doing. She added this is something that the City still supports, and she is in favor of the Sister City Program. However, in light of the economic situation, it would not be right to allocate this money. Board of Directors Meeting 18 May 19, 2008 at 7:00 P.M.  Director Jones questioned if this was not in the budget when the Board accepted and voted on the budget. Director Maruthur responded that things have changed since the Board voted on the budget. Director Daniel said he was not on the Board when the Sister City Program was initiated and has not gone to Japan and does not know that he will. He pointed out the City has a Sister City Coordinator and questioned why the City joined this program and hired a coordinator. He asked the salary of the coordinator; and Ms. Terry Payne, Public Information Officer, advised that the Sister City Coordinator is a contract employee who works approximately 20 hours a week at $12 an hour. Director Daniel said it was his understanding the City needed the coordinator to get other people to go and have representation from the Board. He noted that he elects not to go and has no ill feelings toward anyone who wants to go. He stated if the City is not going to be involved, then it does not need a coordinator and should get out of the program. Director Maruthur commented that getting out of the program is not even a question, and the City has an excellent coordinator; also, there are people paying to go. She said she would like to go; and when she can afford to pay for the ticket, she will. She stressed that she wants to participate in this program and believes the Board can come up with some kind of activity that could generate $3,500. Mayor Bush questioned if her amendment says that if the Board cannot come up with the $3,500, then Director Weatherford would not go; and Director Maruthur replied that is correct. Mayor Bush stated that he appreciates Director Weatherford agreeing to go to Hanamaki. He said that he has also been able to travel to Hanamaki, and they respect the fact that a member of this Board is willing to take ten days out of their schedule and go to their country. He expressed appreciation to Director Weatherford for saying he will go. Director Jones said she is glad someone wants to go. She added that Director Maruthur was on the Board when the program started; and when they come to Hot Springs, they bring at least 30 people. She mentioned that they spend money in Hot Springs; and if the City cannot send a Director, then the City does not need to be in the program. Director Maruthur noted that the City does what it can afford and believes the Board can afford to have an event and raise the money to send Director Weatherford. Board of Directors Meeting 19 May 19, 2008 at 7:00 P.M. She stressed that she supports the program 100 percent and commended Ms. Terry Payne on an excellent job. Director Jones commented that she is sure if the Sister City knew this, they would send the $3,000; and Director Maruthur pointed out that their budget and the City=s budget are two different budgets. She mentioned the reason the City is in this program is for a cultural exchange, and their budget and culture are different. She stated the Directors have to answer to the people who have put them in this position and has nothing to do with supporting the program. Mayor Bush asked if she did not want to send a Director on the City=s money to Hanamaki, and Director Maruthur said she did not want to allocate $3,500 for a ticket when the Board can make an effort to raise that money. She said that she would help with a fund-raiser. An amendment to the motion was made by Director Maruthur to send Director Weatherford to Hanamaki, Japan, contingent upon the $3,500 being raised from outside sources and get together and come up with an event for Director Weatherford to go to Hanamaki. There being no second, the motion died due to a lack of a second. Mayor Bush then called for a vote on the motion to approve out-of-state travel to Hanamaki, Japan, for Director Carroll Weatherford, in an amount not to exceed $3,500; and upon roll call, the following voted Aaye@: Directors Jones, Weatherford, Edwards, Daniel, and Bush, total 5. Voting Ano@: Directors Maruthur and Smith, total 2; motion carried. OTHER BUSINESS 25 Board of Directors Items Director Edwards reported that citizens are now advertising their yard sales on large cardboard signs. He said these are lasting longer and have endured several hard rains. Director Smith announced that this past Sunday, he enjoyed being at the Ebenezer Missionary Baptist Church, on Lacy, pastored by Reverend Billy Wilson. Later that afternoon, the Quapaw-Prospect group held their block party, which was very well attended and thanked the Quapaw-Prospect Association for hosting that event. Board of Directors Meeting 20 May 19, 2008 at 7:00 P.M.  Director Maruthur thanked Reverend Don Robinson, Pullman Heights Methodist Church, for giving the invocation. She mentioned that today is the date the City experienced the flood of 1990. She added that the Governor declared the recent flood on April 4 a disaster, and people can make a claim with FEMA and should contact Deputy City Manager Lance Hudnell (321-6815) for further information. She then read a poem entitled, AFood for Thought,@ written by Mr. Joe Tarver, who is in his 20's, and was at the Waffle House when he wrote it, and many people were impressed by it. She said she thought it was very telling about what people do and how people feel when they are eating out and how people are watching what other people do. She added Mr. Tarver is a biology and psychology major and is very talented. She expressed appreciation to him for sharing his poem, which most people will not do. 26 City Manager=s Report Deputy City Manager Lance Hudnell gave the following report: 1. On the Consent Agenda, Ms. Vina Cook was reappointed to the Housing Authority. The Board approved an application for HOME funds which will augment the City=s CDBG program; and the Entertainment District guidelines were approved. 2. He thanked the various businesses who helped with the City Employee Picnic. He stated that City funds cannot be used for events such as that, and the City has to rely on the business community to assist; and many merchants provided door prizes and funding. Every city employee in attendance received a door prize, which was due to the generosity of the business community. 3. He expressed appreciation to Mr. Adam Roberts and City Manager Kent Myers for the green initiatives that they have been undertaking recently and was a culmination of Earth Day yesterday. Three of the City staff members participated in a city panel, and there were 1200 participants in Earth Day. EXECUTIVE SESSION A motion was made by Director Weatherford, duly seconded by Director Daniel, that the Board adjourn into executive session; and upon voice vote, the motion unanimously carried. At this time, Mr. Don Thomason, reporter for The Sentinel-Record, stated that the Arkansas Information Act requires that a specific purpose be stated for going into Board of Directors Meeting 21 May 19, 2008 at 7:00 P.M. executive session, and requested that the Board do so at this time. Director Weatherford replied that it concerns a personnel matter. Mr. Thomason advised that it has to be specific as to whether or not it is for promotion, demotion, discipline, resignation of any public officer or employee, or whether the Board is considering employment or appointments. City Attorney Brian Albright stated that it is for consideration of all of the above. The Board then adjourned into executive session at 8:10 p.m. RECONVENE TO OPEN SESSION The Board reconvened to open session at 8:20 p.m. Mayor Bush announced that no action was taken in the executive session. 27 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:22 p.m., to meet again on Monday, June 2, 2008, at 7:00 p.m. ATTEST:_____________________ APPROVED:________________ _______ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 22 May 19, 2008 at 7:00 P.M.