Board of Directors

MINUTES BOARD OF DIRECTORS MEETING JULY 15, 2008, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Tuesday, July 15, 2008, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Mr. Bill Vining, 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, Tom Daniel, and Mike Bush, total 6. 2 Approval of Agenda A motion was made by Director Maruthur, duly seconded by Director Daniel, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of June 30, 2008, and July 1, 2008 Board Meetings A motion was made by Director Jones, duly seconded by Director Weatherford, that the minutes of the June 30, 2008, and July 1, 2008 Board Meetings be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests At this time, Mayor Bush presented a years of service plaque in memory of Firefighter Lieutenant Gene Yarbrough. Mayor Bush stated that he knew Lt. Yarbrough personally, and he was an exceptional person. He then read the plaque which was in memory of Lt. Gene Yarbrough for 19 years of dedicated service to the City of Hot Springs Fire Department, October 30, 1989, to June 24, 2008. The plaque was accepted by Firefighter Randy Greathouse.  CONSENT AGENDA The Consent Agenda consisted of the following: 5 Public Safety Report (July 5, 2008). 6 Proposed Resolution No. R-08-162 Approving Certain Bid Awards - - Aluminum Sulfate-Utility Administration (Rebid). 7 Proposed Resolution No. RB08-163 Awarding a Contract to Apollo Video Technology for the Provision of a Transit Digital Video Surveillance System. 8 Proposed Resolution No. R-08-164 Awarding a Contract to BM Webb Construction for Replacement of Roof on Old Chapel Building at the Arkansas School for Mathematics, Sciences and The Arts (ASMSA). 9 Proposed Resolution No. R-08-165 Awarding a Contract to Brown Engineers, LLC for Certain Engineering Services on an As-Needed Basis for Various Utility Improvement Projects. 10 Proposed Resolution No. R-08-166 Approving the Extension of Hot Springs Municipal Wastewater Service to Stratcor Corporation on Malvern Highway. 11 Proposed Resolution No. R-08-167 Approving the Extension of Hot Springs Municipal Wastewater Service to Coakley Company at Mid-America Boulevard. 12 Proposed Resolution No. R-08-168 Approving a Contract to J-QUAD Planning Group for the Preparation of an Analysis of Impediments to Fair Housing. A motion was made by Director Smith, duly seconded by Director Maruthur, that the Consent Agenda be approved; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Daniel, and Bush, total 6; motion unanimously carried. Board of Directors Meeting 2 July 15, 2008, at 7:00 P.M.  NEW BUSINESS 13 Proposed Resolution No. R-08-169 A resolution entitled, AA RESOLUTION APPOINTING LOYD R. (RICK) RAMICK TO POSITION FIVE (DISTRICT FIVE) ON THE HOT SPRINGS BOARD OF DIRECTORS,@ 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, Mayor Bush congratulated Mr. Ramick on his appointment and advised that he will be notified to take his Oath of Office. He also congratulated the applicants who applied for this position (Mr. Tim Dean, Mr. Wayne Roberts, Mr. Ben O=Neal III, Mr. Kenneth Schildgen, Ms. Stephanie AStevie@ Spargo, and Mr. William Wisely), who were very well qualified. Mayor Bush then called for vote on the motion to adopt; and upon roll call, the following voted Aaye@: Directors Maruthur, Jones, Smith, Weatherford, Daniel, and Bush, total 6; motion unanimously carried. Whereupon the resolution was declared adopted. (Note: Prior to the meeting, interviews were held at 5 p.m. with Mr. Tim Dean, Mr. Ben O=Neal III, Mr. Rick Ramick, and Mr. Wayne Roberts. The Board then voted by ballot, and Mr. Ramick received the majority of the votes. The Board had selected these final applicants at a Special Board Meeting on June 30, 2008). 14 Proposed Resolution No. R-08-170 A resolution entitled, AA RESOLUTION WAIVING CONSTRUCTION PERMIT FEES FOR THE VETERAN=S MEMORIAL COMMITTEE OF GARLAND COUNTY, ARKANSAS,@ was taken from the agenda and read by title only. A motion was made by Director Daniel, duly seconded by Director Smith, that the resolution be adopted as read. Upon discussion, City Manager Kent Myers introduced Mr. Morris Cash, chairman of the Veteran=s Memorial Committee of Garland County, who stated this memorial will be a tourist attraction. He said they are going to spend $300,000 to build Board of Directors Meeting 3 July 15, 2008, at 7:00 P.M. it and will continue getting donations for bricks and granite pavers. He then introduced members of the committee: Ms. Laura Wood, vice-chairman; Mr. Don Wood; and Mr. Gary Burgess. 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, Daniel, and Bush, total 6; motion unanimously carried. Whereupon the resolution was declared adopted. 15 Proposed Resolution No. R-08-171 A resolution entitled, AA RESOLUTION WAIVING THE INFRASTRUCTURE BONDING REQUIREMENTS FOR SHAW VILLAGE SUBDIVISION BEING CONSTRUCTED BY GARLAND COUNTY HABITAT FOR HUMANITY,@ was taken from the agenda and read by title only. A motion was made by Director Maruthur, duly seconded by Director Daniel, that the resolution be adopted as read. Upon discussion, Mr. John Selig, 467 Peninsula Drive, stated that Habitat for Humanity is beginning its fourth large-scale subdivision; and there are over 70 homes already constructed. He stated this new subdivision will support about 18 new homes; and in every case, they have had to build infrastructure. He said they have conformed in every way to the city codes. He advised that Shaw Village Subdivision is off Walnut Street and was donated by Chester Shaw Family; but Habitat for Humanity is having to put in sewer, water, streets, and storm drainage. He commented the City is now requiring that developers put up a surety bond to make sure the infrastructure is built, and this is the first time Habitat for Humanity been required to do that. He advised they have talked to the bankers on their board, who said they cannot qualify for surety bond primarily because a bond or a Letter of Credit requires collateral to be put up in order to make sure they go through with that bond. If not, then the bank has the collateral to come forward and finalize it. He pointed out that Habitat for Humanity is asking for a waiver of that bond, which would be approximately $400,000. He mentioned they receive funds from the CDBG, grant money from the City, from churches, organizations, individuals, and from equity from those 70 houses. However, they do not have assets like a normal developer would that they can put up for a surety bond. He said they are about 50 percent completed with the sewer, water, and the roads but cannot put up the bond; therefore, they are asking for a waiver of that bond. Board of Directors Meeting 4 July 15, 2008, at 7:00 P.M.  Director Daniel questioned if there was any problem with the City waiving the bond, and City Attorney Brian Albright advised there was not. He explained this provision for providing for a bond is to ensure that the infrastructure is done according to city specifications and that it is completed. He pointed out that the money to be utilized to do the infrastructure is coming from the CDBG program, which is the City program; and he believes the Board should have some comfort level in knowing that. Director Maruthur stressed there is no fiscal impact to the City if the Board votes for this. Director Jones mentioned that she took Congressman Mike Ross on a tour, and he was very impressed with the homes, which were in her district. She said she wanted him to be aware when she was going to Washington, DC asking for funds where some of those funds were designated. 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, Daniel, and Bush, total 6; motion unanimously carried. Whereupon the resolution was declared adopted. 16 Proposed Ordinance No. O-08-47 An ordinance entitled, AAN ORDINANCE APPROVING THE 2008 INTERLOCAL AGREEMENT WITH GARLAND COUNTY FOR DETENTION SERVICES,@ 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 Daniel that the ordinance be passed as read. Upon discussion, City Manager Kent Myers noted that City Attorney Brian Albright worked closely with County Attorney Ralph Ohm in preparing this agreement and has gone through two or three drafts; and the Quorum Court approved it last night. He stated that the original agreement for detention services dates back to April 1988, when the City and County joined together for the City=s funding participation in the county jail. Since that time, three addendums have been approved to the agreement in 1989, 1991 and 1998. He advised that the latest revision, which is in place at the Board of Directors Meeting 5 July 15, 2008, at 7:00 P.M. current time, sets the per diem rate of $36 per day, which the City reimburses the County on a monthly basis. He stated the reason a new agreement is needed and the reason it is before the Board tonight is based upon the proposed cost-sharing agreement and the elimination of the per diem rate that is being proposed as a result of the new bond issue. He explained the purpose of the agreement is to establish a formal binding relationship between the City and County for housing the prisoners at the Garland County Detention Facility. The proposal involves, in terms of Garland County, agreeing to finance the bonds for the design and construction of a new 774-bed jail and also issuing bonds for 15 years for a new County public safety communications system. The balance from the County=s portion of sales tax will be used for other public safety purposes. He advised that in terms of the City, it agreed to issue bonds for 15 years to fund a new city public safety communications system. During jail construction, which is anticipated to be about two years, the City agrees to use additional funds that it will incur during the two-year period for construction of new fire stations and other public safety needs. Once the jail is constructed, the City will be a partner in the facility with a balance of City funds used for jail operation and maintenance, including the amortization of construction. He stated that the City and County, after the bonds are paid off, will share equally in the operating costs for the jail; and any excess funds will be used only for public safety purposes. He pointed out the term of the agreement is 20 years, which matches the bond issue for the construction of the jail. He said if the agreement passes tonight, it will only be effective if the August 12 election issue is approved. Director Maruthur commented since everyone does not watch the Board Meetings and this is important information, she would hope the newspaper would cover those points so the public would be informed. Ms. Diane Silverman stated last night the Quorum Court said it would request the Attorney General=s Opinion on whether an Interlocal Agreement is or is not mandatory; and today, she found an earlier Attorney General=s Opinion on the sales tax apportionment and the interlocal agreement issue. She said under Arkansas Code Annotated '26-74-414 and subchapter 409, the law plainly reads that a municipality which already collects a sales tax is not eligible to receive an apportionment of a county sales tax. Under that same Chapter 409, Section C, which covers the disposition of funds in '26-74-409, she said it reads as follows: Athe treasurer of state shall determine which cities or towns within the county do not levy a local sales tax and remit to those cities or towns a percentage of the tax based upon the population of the city or town versus the population of the county.@ Therefore, she said it is not mandatory for the County to apportion funds from the sales tax to the City of Hot Springs; and if the City Board of Directors Meeting 6 July 15, 2008, at 7:00 P.M. donates a part of the proposed sales tax, it will be doing it as a gift, not because it is mandatory. In this case, she stated if the County donates 40 percent of it, that would be like a $90 million gift through a device called an interlocal agreement. While all this information may not change anything, she said she believes it is important for people to know that the information about this tax is written in the newspaper and believes it came from the bond counsel which the Quorum Court and City relied on. She commented that information was not correct and has given a false impression that the County could not levy a sales tax increase without a mandatory apportionment with the City of Hot Springs. City Attorney Brian Albright advised that Ms. Silverman has pointed out to the Board a provision under Arkansas Code Annotated '26-74-409, which refers to a sales and use tax levied by counties that have not already issued a tax. He added Garland County has already issued a 2 cent tax, and this would be another 2 cent tax. He noted the ordinance passed by the Quorum Court on June 18 setting the election for August 12 has been called pursuant to Title 26, Chapter 24, Subchapter 2 of the Code, not Subchapter 4. Therefore the provision that Ms. Silverman is citing has no application to the issue that is before the Board. Ms. Silverman commented that all of those sections, whether 2, 3 or 4, all have to be read together; and the disposition of funds is the same. She said she has the Attorney General=s Opinion, and Mr. Shep Russell, bond counsel, insisted that '26-74-414 is the statute under which it is written. She mentioned if he quoted the wrong statute, she was not aware of it. City Attorney Brian Albright replied that apparently he did because he is looking at the County=s ordinance that was passed, and Ms. Silverman stated that reference is being made to 201, 301, or 401, which are all the same; and the opinions are the same. She pointed out it has nothing to do with whether the County already has a sales tax but has to do with whether the City already has a sales tax, which it does. Mr. Bob Driggers read a statement pointing out that he is not for or against a new jail; however, he supports a new jail, which is needed badly. However, the way the City and County are going about it is severely flawed, especially the fact that this is a tax without a sunset clause. He commented the Garland County jail has been in place for 20 years, and the overcrowding crisis has now developed but did not develop overnight. He added it developed because the leadership did not plan, lead or work on resolving the problem before it became a crisis. He stated by looking at the resolution that the leaders have proposed, it appears obvious that the leaders are attempting to pass a Board of Directors Meeting 7 July 15, 2008, at 7:00 P.M. huge tax increase that can be funneled back into the General Funds. He pointed out this is being sold as a jail construction tax when that is only a small fraction of the expenditure in the early years; and after that, it is a permanent, unallocated tax with no jail construction to pay for it. After two years of backroom negotiations with no request for public input, he said the leaders have put forward a massive pork-filled $200+ million tax that never ends. He commented he is confident the voters will vote against this measure and wait for the County to propose a jail construction only tax, or they will sign onto a grassroots initiative to fund the jail-only ordinance. He noted for every cent that the price of gas rises, dozens, if not hundreds, of Garland County citizens will have to make tough choices between gas, food, medicine, or additional taxes. He mentioned in1992 in good economic times, County residents voted by a 9 to 1 margin to double the County=s tax revenue, in large part for public safety improvements. In 1998, in good economic times, the City voters, not the City leadership, wanted more spending on public safety in the City; and they did so through a signature-driven initiative. He said when the voters approved the tax, it really was intended to be totally for public safety and a tax that could not be funneled back into the City=s General Fund. The initiative contained the language: Athis tax is to supplement, not supplant the City=s spending on public safety.@ He pointed out it went on to state that the City may not reduce their funding of public safety from the General Fund while the tax is being collected. He stated the City found a way through cost allocation to divert the tax into the General Fund. He requested that the Board amend the language of the proposed interlocal agreement to assure the voters, as was done by the grassroots initiative in 1998, that the money being requested is to increase spending on public safety and that it is not going to be deceptively used to replace the City and County funding of public safety. He then made the following amendment to be placed at the end of Section IV of the Interlocal Agreement: AThe funds herein dedicated to public safety spending are to supplement and not replace current City and County funding that currently comes from the local government=s general funds. The City and County shall not use these tax revenues to lower their current general fund appropriations to public safety during the period that this tax is collected.@ He commented if the Board refuses to add this assurance to the agreement, he believes the public can only interpret this to mean that the City intends to funnel the funds away from public safety, and this is designed to be a public safety tax. Director Maruthur questioned if there was any problem with what the Board was doing, and City Attorney Brian Albright advised that the agreement, in more than six places, says this will only be used for public safety needs. He mentioned in 1999, there was an ordinance that was referred to the people and was voted on and is in effect today which says that the fire and police budgets from the City=s General Fund Board of Directors Meeting 8 July 15, 2008, at 7:00 P.M. shall be no less than the current level. He explained whatever the City is doing now is what it was doing in 1999 and cannot go any lower than that. He added the City has to continue to fund both of those budgets at the level that was in effect February 1, 1999; and any public safety sales tax in addition to that is going to be used for those funds. He said he did not have a problem with the language Mr. Driggers is talking about inserting. However, the problem is that the Quorum Court approved the agreement as written last night; and if the Board were to change the agreement, that would require having to return to the Quorum Court. 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, Daniel, and Bush, total 6; motion unanimously carried. Whereupon the ordinance was declared passed. 17 Proposed Ordinance No. O-08-48 An ordinance entitled, AAN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PROCUREMENT OF CERTAIN ELECTRONIC BILL PAY AND PRESENTMENT (EBPP) SERVICES FROM MATRIX IMAGING SOLUTIONS, INC.; AND FOR OTHER PURPOSES,@ was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question AShall the ordinance be passed as read?@ and upon motion of Director Weatherford, duly seconded by Director Jones, that the ordinance be passed as read. Upon discussion, Ms. Dorethea Yates, Finance Director, explained the City serves about 32,000 customers and currently accepts those payments by mail or in person. She stated the strategic plan for the Finance Department includes looking at a number of different ways to make payment easier for the customers, and one of those is electronic bill payment and presentment. She stated the implementation of that will provide a better platform to serve the customers in the future and allow them to conduct their business with the City based on modern technology. She pointed out many of the customers live outside the City and are not here in person to do business. She said she has provided the Board with demographics from a study by the postal service to look at the number of people who use the internet now, the ages of those type of people, and the data on how many people are now paying bills by internet. She said the trend is Board of Directors Meeting 9 July 15, 2008, at 7:00 P.M. upward for people paying their bills over the internet; and the younger people are the heavier users of the internet, so as that group of society ages, it will become more important that the City provide services to them in this manner. She explained the website will be hosted and will be a link off the City=s website, and the customer can enroll on this website; they can print and view their statements; and can elect to receive their statements by e-mail rather than by mail. She noted they can also pay their bill online using their credit card, electronic check, or a debit card. Also, they can schedule those payments automatically to come out of their checking account or their credit card every month; and they can contact their department with a request via e-mail. Also, they can add multiple accounts to their profile. She stated the payment information will be uploaded daily to the Finance Department; and the website will also have a list of frequently asked questions. She explained that currently, the City uses a third-party matrix imaging solution to print and mail the utility statements and already take those statements and produce a PDF file of them. She mentioned in order to put statements out on the internet, there has to be a PDF copy. She added since the third-party already provides it and provides electronic bill payment service, the best option is to waive competitive bidding and go with the party the City is using at the present time. She advised in a couple of years, that contract will expire; and the City may want to look at one package. However, at the present time, it appears that the best economic decision would be to use Matrix Imaging Solutions for this electronic bill payment service. She mentioned there will be some cost savings on postage, and the cost is $13,500 for initial purchase of this service, which is a one-time fee; and the training and set up is $2,000. After that, the City will have the annual cost related to volume, and this is included in the budget this year. Director Maruthur pointed out there are people who are not comfortable because of ID theft and other things related to paying on the internet who are not going to be using this service. However, there will be local areas dedicated for payment -- City Hall and Regions Bank. She noted there has been discussion of alternative methods that can be used in convenience stores and service stations. She said she is going to support this, but she has some concerns that some people will be left out and wants to assure citizens that the City is still going to have traditional methods of payment. Ms. Yates replied there will be drop boxes available; and also at Director Daniel=s request, she has requested information from several companies that are doing business at the convenience stores and get more information on how to enroll in that. Also, she would like to set up a computer in their lobby so if someone does not understand how to use this and would like to use it when they come in, the Finance Department can offer training on it. Board of Directors Meeting 10 July 15, 2008, at 7:00 P.M.  Director Smith asked if there was much additional staff training required with this program, and Ms. Yates advised that she did not envision much training. She added she saw the demo, and it is fairly easy. 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, Daniel, and Bush, total 6; motion unanimously carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 18 Board of Directors Items Director Maruthur announced that Mineral Street between Mountain Valley and State Street will be closed to thru traffic from 7 a.m. to 5 p.m., between July 14 and 18; and motorists are asked to seek alternative routes and use caution when traveling in this area; also, detour signs will be posted. She stated this street closing is in regard to some major infrastructure improvements in the area, and one of them is a water main replacement, which is overdue. She added the water main will be the correct size, and there will be a new system they can depend on since it has not been cost-effective. She expressed appreciation to the Board for supporting these infrastructure improvements and apologized for the inconvenience. Director Jones reported that on July 17, P.H.O.E.B.E. will have a storyteller at Webb Center; and on July 21, at the Webb Center, the history of Pleasant Street and the surrounding areas will be told. Also, there will be City staff available; and it starts at 6:30 p.m. Director Smith advised that the CodeRED System is now available, and residents may access it under the City=s website. He added there is a link that will put them in the CodeREd for registration purposes, or they may contact the Engineering Department at 321-6860. He encouraged everyone to sign up on this program. He thanked all of the residents of District 3 who have participated and are participating in the Operation Clean Sweep, which is about one-half way through the process. He commended the Code Compliance Department for its participation. Director Weatherford announced that on Saturday, July 26, at 3 p.m., the 5th Annual Rib Cook-Off will be held at the Exchange Street Parking Facility; and the cost Board of Directors Meeting 11 July 15, 2008, at 7:00 P.M. will be $5 for a rib dinner. This is sponsored by the Downtown Merchants= Association and is to benefit the downtown Christmas lighting. 19 City Manager=s Report City Manager Kent Myers gave the following report: 1. On the Consent Agenda, the Board approved a bid award for a new video surveillance system for Intracity Transit. This will be installed in all of the buses and will be able to show inside and outside of the buses. The total cost is $69,600; and the federal government is paying 80 percent of the cost, with the City paying $13,900. The second bid award was the ASMSA roof construction of the Old Chapel Building in the amount of $93,000 to BM Webb Construction. 2. In the next several weeks, the City will start a new ride sharing program, which is being coordinated by Ms. Dianne Morrison, MPO Study Director. This is intended to get people to share rides around the community, particularly those that commute from Hot Springs to Little Rock. This will be formally announced next week, and citizens may sign up through the MPO office. 3. Regarding the flood warning system, this will be the first system in Arkansas to use satellite data transmissions from multiple USGS rain gauges around the City. The new system will be dedicated on Tuesday, July 22, at 9 a.m. 4. The phone book recycling program has started, and there are a number of drop-off locations around the City, as well as the site on Valley Street where people can leave all of the recycling. 5. The Finance Department has won the distinguished budget presentation award. Hot Springs is one of only six communities in Arkansas that has earned this distinction. Special recognition was given in this award to Finance Director Dorethea Yates and her secretary, Angela Byrd, who puts the budget together. He congratulated the entire department on this award. 6. On July 29, at 5 p.m., there will be a work session. The work session will begin with a discussion of the agenda for the August 5 Board Meeting. The Planning Commission will then meet with the Board for a couple of items. Director Weatherford stated that he and Director Maruthur worked on the Building Study Committee, and the recommendations were approved by the Board in Board of Directors Meeting 12 July 15, 2008, at 7:00 P.M. the earlier part of the year. He asked that City Manager Kent Myers give a report at the work session. City Manager Kent Myers replied that he will add that to the agenda. Director Maruthur said a timeframe is needed, and it includes the vegetation transfer from the Utilities Building. 20 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 7:45 p.m., to meet again on Tuesday, August 5, 2008, at 7:00 p.m. ATTEST: _____________________ APPROVED:________________________ Lance Hudnell, City Clerk Steve Smith, Assistant Mayor Board of Directors Meeting 13 July 15, 2008, at 7:00 P.M.