Board of Directors

MINUTES BOARD OF DIRECTORS MEETING JANUARY 19, 2010, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Tuesday, January 19, 2010, at 7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding. The invocation was given by Ms. Gwin Horton, 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, Cynthia Keheley, Rick Ramick, Tom Daniel, and Mike Bush, total 6. Absent: Director Pat McCabe. 2 Approval of Agenda A motion was made by Director Daniel, duly seconded by Director Ramick, that the agenda be approved. Upon discussion, City Attorney Brian Albright advised that Item No. 18 (Proposed Resolution No. R-10-16 Approving a Variance Request for a Freestanding Sign at 1301 Albert Pike) [Appeal] needs to be removed from the agenda at the request of the applicant. Director Maruthur requested that Item No. 16 (Proposed Resolution No. R-10-14 Authorizing Support for the Arkansas School for Mathematics, Sciences and The Arts; and Repealing Resolution No. 7280) to be moved up to Item 13 since there is large group of people present tonight on that item. Director Daniel pointed out that the Board had moved Item 18 up to Item 14 at the agenda meeting since the Public Safety Task Force was set at Item No. 13. He suggested moving it to Item No. 15. Director Maruthur suggested moving it to Item No. 14; and Director Daniel commented that the Board moved Item No. 14, which was previously Item No. 17 or 18 up to Item No. 14 because of the large group of people that would be present. Director Maruthur pointed out there are some people who would like to address something else. Director Daniel replied that he understood that, but the Board has already moved this once. A motion was made by Director Maruthur to move Item No. 16 (Proposed Resolution No. R-10-14 Authorizing Support for the Arkansas School for Mathematics, Sciences and The Arts; and Repealing Resolution No. 7280) to Item No. 14. There being no second, the motion died for lack of a second. Mayor Bush then called for a vote on the motion to approve the agenda, with the removal of Item No. 18; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Ramick, Daniel, and Bush, total 6. Absent and not voting: Director McCabe; motion unanimously carried. Whereupon the agenda was approved, as amended. 3 Approval of Minutes of January 5, 2010 Board Meeting A motion was made by Director Jones, duly seconded by Director Maruthur, that the minutes of the January 5, 2010 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Mr. Elmer Beard was recognized and expressed appreciation to those who supported the Pleasant Street Neighborhood Association this past November during their variety sale. He stated they are going to have another sale on February 6 and is depending on the City for its support of the Pleasant Street Neighborhood for the benefit of the Convention Center, City Hall, and this entire area which is related directly and connected to the Pleasant Street Neighborhood Association. 5 Board of Directors Announcements Director Daniel announced there are several legislators present tonight and introduced Representative Rick Saunders, Representative Gene Shelby, Representative Bill Sample, Senator Terry Smith, and Senator Steve Faris. He also stated there is a large group of District 6 residents present. Board of Directors Meeting 2 January 19, 2010 at 7:00 P.M.  CONSENT AGENDA The Consent Agenda consisted of the following: 6 Public Safety Report (December 29, 2009). 7 Proposed Resolution No. R-10-8 Approving Certain Bid Awards (a) Janitorial Supplies - Fleet Service [annual supply contract awarded to Amsan, Sigma Supply, Applied Industrial, All American Poly, Delco, Brown Janitorial, Kerr Paper, and Myers]; (b) Tires, Tubes and Related Services - Fleet Service [annual supply contract awarded to GCR Tire and Stroope Tire and Retread Shop]; and (c) Tires, Tubes and Related Services - Intracity Transit [annual supply contract awarded to Retread Shop and Stroope Tire]. 8 Proposed Resolution No. R–10-9 Certifying Local Government Endorsement of Business to Participate in the Tax Back Program (As Authorized by Section 15-4-2706[d] of the Consolidated Incentive Act of 2003 [Flossie’s Foods]). 9 Proposed Resolution No. R-10-10 Certifying Local Government Endorsement of Business to Participate in the Tax Back Program (As Authorized by Section 15-4-2706[d] of the Consolidated Incentive Act of 2003 [Smith Abrasives, Inc.]). 10 Proposed Resolution No. R-10-11 Approving a Certain Street Name (Bluebell Court) in Wildwood Gardens Subdivision. 11 Proposed Resolution No. R-10-12 Fixing a Time and Date for a Hearing on a Petition to Vacate, Abandon and Close a Portion of Reserve Avenue Located in Block 36 of Hot Springs Reservation. 12 Proposed Resolution No. R-10-13 Authorizing the Filing of a Grant Application with the State of Arkansas for a 2010 General Improvement Fund Grant (Pedestrian Bridge - Valley Street Creekwalk). Board of Directors Meeting 3 January 19, 2010 at 7:00 P.M.  A motion was made by Director Daniel, duly seconded by Director Keheley, that the Consent Agenda be approved; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Ramick, Daniel, and Bush, total 6. Absent and not voting: Director McCabe; motion unanimously carried. NEW BUSINESS 13 Consider Public Safety Task Force Interim Report Mr. Burt Newell, 216 Quail Creek, chairman of the Public Safety Task Force, said that he has submitted a written report, which is the first interim report to the Board and City Manager Lance Hudnell and to the press. He stated there are six committees and hope to give a final report by the April 6 Board Meeting. He commented that financing will be the most difficult issue. There were no questions regarding the report submitted by Mr. Newell. Director Maruthur noted that her name was misspelled, and Mr. Newell replied that it will be corrected. 14 Consider Special Public Safety Report Regarding Reinstatement of Four-Way Stop Sign at Quail Creek and Ravenwood Intersection Mr. Steve Mallett, Deputy City Manager for Public Works and Utilities, advised this is a request to reinstate a four-way stop sign at Quail Creek and Ravenwood intersection by Mr. Stacy Hudgens, 130 Ravenwood Place. He explained there was a previous request made by a petition containing 32 signatures to remove the stop signs on Quail Creek at Ravenwood. The Public Safety Committee considered the request, and the Board approved the request as submitted. Upon subsequent posting of the removal of the stop signs, the City received 110 phone calls in opposition to removal of the signs and was asked to reconsider, which the Public Safety Committee did at its meeting on December 29, 2009. At that meeting, the Police Department made some comments and recommended retention of the stop signs due to the number of incidents, speeding, and traffic accidents on Quail Creek prior to the installation of the stop signs. He reported the City states there were many more citations given at that time and believes that the signs will help alleviate some of the speeding problems. He noted the current traffic characteristics of the intersection do not warrant the multi-way stop based on the Board of Directors Meeting 4 January 19, 2010 at 7:00 P.M. January 19, 2010 at 7:00 P.M. volume study. He stated there are criteria within the Manual on Uniform Traffic Control Devices that state with the accident information provided by the Police Department, there appears to be a potential to revert back to an environment that could lead to accidents. Therefore, it is not advisable to remove the multi-way stop. He advised the committee recommendation would be to overturn the Board’s decision to have the stop signs removed and basically leave as is. He pointed out there are two alternatives: (1) install center line and bike lane pavement markings on Quail Creek and retain existing stop sign configuration; or (2) install a traffic circle at that intersection that would allow removal of all the stop signs. He added both of those would require funding that the City currently does not have. Mayor Bush then recognized Ms. Darby Logan, 103 Ravenwood, who said that she represents her neighbors and has lived at this address for about seven years. She noted the stop sign has been there for at least seven years and has never caused a problem or been an issue. Since she has teen-age drivers, she said she would like to see the signs remain since this is a very busy intersection; and there are elderly people in the neighborhood who are accustomed to the signs being there. She stressed this is a matter of safety and urged the Board to consider leaving the signs there. Mr. Brad Hudgens, 144 Ravenwood, pointed out that stop signs are there for safety and mentioned there are walkers, runners, and people with strollers in the neighborhood; also, motorists speed down this extra wide boulevard. He mentioned that several years ago, a petition was submitted to install a speed bump, which was in addition to a four-way stop because of the excessive speed. He commented that the inconvenience of having to stop at a stop sign for few people living past it with 32 signatures that were solicited, he does not think outweighs the 110 people who called in requesting the stop sign remain. He stated there are more people who live to the north and south of Quail Creek than who live beyond that stop sign, and those people mostly would like it to stay. He asked that the Board consider retaining the stop signs. Mayor Bush asked what he thought about speed bumps, and Mr. Hudgens replied that he does not mind speed bumps by themselves; but there were people who did not like them. He added they were concerned about their tearing up their vehicles. He said that he likes the idea of rumble strips; but according to Officer Johnny Mann, the stop signs work best. Mr. Dragan Vicentic, 119 Winding Ridge, stated that residents think a stop sign is needed at an intersection because of an accident or to slow traffic. He said it is important to keep in mind that accidents are a random event, and traffic studies and experience show that using stop signs to control speeding do not work. He added that Board of Directors Meeting 5 January 19, 2010 at 7:00 P.M. unneeded stop signs are frequently ignored; and drivers on the major street either roll through or run through the stop sign because in their experience, there is little cross traffic. He stated that nearly half the motorists fail to make the required stops at many four-way stops thus making the intersection even more dangerous. He reported the U. S. Department of Transportation, Federal Highway Administration, through its Manual on Uniform Traffic Control Devices (MUTCD) outlines standards for a four-way stop, which include the volume of vehicles average 500 vehicles per hour for any eight hours of an average day. He added the Quail Creek four-way does not see 500 cars in a whole day; and the City conducted a traffic study the week of August 24, 2009, and found that the volume does not warrant the four-way stop. He noted the Quail Creek four-way affects only the residents east of the stop sign, and there are approximately 60 households in this criteria. He said he collected over 75 signatures on a petition in support of removing the illegitimate stop signs, but Ravenwood and Whispering Hills residents are not affected. He commented they have to come to a complete stop whether the Quail Creek signs are there or not, and these residents have 1,000 feet of unobstructed view in both east and west directions. He said even the literature they put out supporting non-removal of the signs clearly states turning onto Quail Creek from Ravenwood or Whispering Hills will become difficult. He mentioned the 107 calls that were logged voicing their opposition to the removal included five duplicate entries, four people who do not reside in the subdivision, and several people who signed the petition to remove the stop signs in the first place. He said he has talked to many of the residents who called in, and the general consensus is that speeding is the issue; and they are not necessarily opposed to the sign removal but seeing the stop signs is the only way to slow traffic. He stated the committee, in its assessments of the area, has brought up the width of the street as the major contributor to the speeding problem; but Quail Creek is supposed to be on a register incorporating use of a bike lane. However, the striping of the bike lane has never taken place. He said he believes that the striping for the bike lane is an excellent idea, not only for bicycles but to narrow the street width and for the people walking in an area without dedicated sidewalks. He pointed out that the Board of Directors, through the recommendations of the MUTCD, standard engineering practices, and a study to determine the applicability, has determined to remove the stop signs and should sustain its original decision to remove the stop signs and work toward an effort to address the real issues of speeding. Mr. Mike Melancon, 205 Quail Creek Road, said he is south of the intersection being discussed and believes it is strictly a safety issue. He mentioned that he has three children and urged the Board to leave the stop sign as is. Mr. Richard Midkiff, 107 Wedgewood Terrace, stated he has six children and was Board of Directors Meeting 6 January 19, 2010 at 7:00 P.M. instrumental in getting the signatures. He also made some phone calls on behalf of having the stop signs removed. Regarding the residents he spoke with about the stop signs remaining, he said it was not so much an issue of keeping the stop sign as it was wanting motorists to slow down. Mr. Phil Head, 104 Ravenwood Place, mentioned he has a view of the area on top of a hill; and there are always motorists running the stop sign. He stressed it is a very dangerous place and urged the Board to keep the stop signs. Mr. Bill Ahlbrandt, 115 Ravenwood, stated that one of the statements made by Mr. Vicentic was not totally correct, which was they are unaffected by this stop sign removal. He mentioned they go through that intersection a number of times everyday. He noted they have to watch as it is since motorists run the stop sign all the time, and now they are not even going to slow down. He pointed out they are going to run the risk of accidents because they have trouble stopping as it is. He said he would like the speed to be controlled, but he realized the Police Department does not have the resources to monitor their neighborhood on a regular basis. He mentioned they have children riding bicycles in this area. Mayor Bush asked his opinion about speed bumps, and Mr. Ahlbrandt stated that he did not believe they work. Mr. Mike Hunter, 136 Ravenwood Place, said he has children; and one is getting ready to drive. He said that he does not understand Mr. Vicentic’s concern because he does not obey the stop sign anyway. He also expressed concern that his children ride their bikes through that neighborhood, and at their age do not know what a stop sign is. He stated as an adult, knowing what it is, at least it would give his child the right-of-way should he make a bad choice. Mr. Jim Logan, 103 Ravenwood, stated that it was a public safety issue. City Manager Lance Hudnell explained that a “yes” vote is to leave the four-way stop; and a “no” vote would retain the former action, which would remove the stop sign. A motion was made by Director Maruthur, duly seconded by Director Jones, to keep the stop signs there; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Ramick, Daniel, and Bush, total 6. Absent and not voting: Director McCabe; motion unanimously carried. Therefore, the stop signs will be retained. Board of Directors Meeting 7 January 19, 2010 at 7:00 P.M. 15 Consider Annual Report from the Hot Springs Boys and Girls Club Mr. Mike Dugan, 100 Deanwood Terrace, representing the Hot Springs Boys and Girls Club, introduced the new executive director of the Club, Mr. Patrick Ramsay. Mr. Ramsay mentioned that he had submitted the 2009 expense report, which was included in the Board packet, and thanked the Board for its support. City Manager Lance Hudnell pointed out this is a fulfillment of the Boys’ and Girls’ Club contract with the City. 16 Proposed Resolution No. R-10-14 A resolution entitled, “A RESOLUTION AUTHORIZING SUPPORT FOR THE ARKANSAS SCHOOL FOR MATHEMATICS, SCIENCES AND THE ARTS; AND REPEALING RESOLUTION NO. 7280,” 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. Steve Mallett, Deputy City Manager for Public Works and Utilities, reported that a memorandum is included in the Board packet regarding the proposed plans for the new facilities for the Arkansas School for Mathematics, Sciences and The Arts. He said the school is currently proposing to begin construction of Phase I of the long-term development Master Plan; and this Plan, if fully implemented, would allow the relocation of the students to the new dormitory, as well as provide new classrooms and student support facilities. However, at this time, funding is not sufficient to construct all of these facilities within this construction proposal. He stated the current level of funding will allow for complete construction of a dormitory facility and the shell for the Student Life Building. In order to fully complete and equip the Student Life Building, as well as provide new classroom facilities, an estimated $10 million in additional funding will be needed at this point. He stated that currently, there seems to be two realistic scenarios, each having a different impact on to what extent the school can relocate students and abandon existing facilities. Mr. Mallett pointed out the first scenario assumes no additional funding is Board of Directors Meeting 8 January 19, 2010 at 7:00 P.M. received, and the school moves forward with the construction of the two dormitories and the shell of the Student Life Building. He said with a construction schedule of 18 months, completion could happen as early as the summer of 2011. At that time, the school could relocate the students from the existing dormitories, which is the old main hospital building. However, under this scenario, the school will have to continue to occupy the Pine Street wing for classroom and other student support functions. The Pine Street wing is currently powered, heated and cooled from the power plant located at the other end of the old main hospital building, and the hospital building houses the connecting facilities between the two. He advised it has been agreed that the old main hospital building would have to remain intact until the time that both buildings could be considered for demolition, and that time would depend on the school’s ability to acquire additional funding for the remaining needed facilities. At the time these facilities were constructed and relocation of students, the City would then be given notice of vacation; and the six-month timeframe would begin that by this resolution would require the City to begin the demolition process. While this scenario is not the best for the school, he stated it does provide the City with some additional time to proceed through the demolition process, primarily any asbestos handling or lead-based paint abatement. He pointed out the more time given a contractor to abate hazardous materials, the less cost would be borne by the City. He added this scenario also delays the full demolition cost until such time that the remaining facilities are constructed. He noted the City would not want to take down a building that connects buildings that are still alive, and the administration of the school has confirmed and agreed to that. Mr. Mallett advised that the second scenario assumes that the school is able to quickly acquire $10 million and can proceed with the full scope of Phase I, which includes completion of the Student Life Building and construction of a classroom facility or possibly remodeling the Cedar Street wing, which is connected to the old main building because that building will remain and is a much newer building. However, the cost for either one of those is basically the same. He stated if all of this construction is completed in 18 months, the school could issue a notice of vacation in the summer of 2011, which would trigger the six-month commitment in early 2012. Given this estimated timeframe, he said the resolution includes language that would set January 1, 2012, as the earliest date demolition would be required to begin. He added it sets this requirement to begin at 60 days from notice of vacation or January 1, 2012, whichever is later. In this scenario, the City would need to be prepared to meet January 1, 2012 deadline however unlikely it may be. Mr. Mallett said with both scenarios, once demolition begins, as stated in the resolution, the City will diligently pursue completion of all demolition work within 18 Board of Directors Meeting 9 January 19, 2010 at 7:00 P.M. months of date of commencement. Also, with both scenarios, both the old hospital building and Pine Street wing would have to be taken down, not necessarily together; but both would have to be taken down within that timeframe. He pointed out while this does provide a little savings with regard to not having to protect and re-face portions of these buildings, which the City thought it was going to have to do before because the City would have to clip off the hospital building and keep everything else around it intact. He noted the City will now be taking both of them down at the same time which would lessen the cost slightly. Mr. Mallett commented that staff has met with the demolition contractors, local engineers and architects, as well as other interested parties, to develop estimates for this work. He mentioned there are still many variables that affect the timing and, therefore, the cost of this work. Based on the information presented in this report, staff is providing a worst case estimate assuming the City is required to take down the buildings in 2012 timeframe, and asbestos and lead-based paint are found to be in large amounts. He reported it is estimated $1,250,000 for asbestos and paint abatement as a worst-case cost; $750,000 for demolition of main hospital building; and $500,000 for demolition of Pine Street wing, for a total estimated cost of $2,500,000. He said there are many factors that he feels could substantially bring that cost down. The cost, especially for abatement, can and most likely will decrease with additional time for completion and a full Phase I environmental study that will accurately identify the level of asbestos and lead-based paint, which allows the City to get more competitive bidding. He said these costs also do not include any offset dollars for salvage value that may be realized through the project. He noted the factors mentioned earlier may dictate that the City does not have much time available for such process, and the City may have to go in there and get the large items. However, the piping and other things may just have to come down with the building. Mr. Mallett advised that the staff recommends the following: (1) proceed with a Phase I environmental study as soon as possible to determine the amount of asbestos and lead-based paint which will allow the City to develop more accurate estimates and receive more competitive bids. The cost for that is approximately $50,000; (2) continue to seek grant funding for demolition services and/or request congressional assistance; (3) formalize and continue to meet with the advisory group to develop demolition plan; (4) work with a citizen committee to develop a funding plan; (5) continue to work with the school administration regarding the schedule and scope of the development as this will be critical in determining the trigger for the City’s commitment; (6) continue to investigate the possibilities related to salvage options; and (7) seek additional opinions from other contractors with regard to the current estimates. Board of Directors Meeting 10 January 19, 2010 at 7:00 P.M.  Director Ramick questioned when the hospital was built and was advised that it was in 1926, which was the earliest construction; and several of the wings were built in phases thereafter. Director Ramick asked if the City would still own the building if the school moved out, and Mr. Mallett advised that it would. Director Ramick pointed out that eventually the City is going to be responsible for the demolition anyway. Mr. Mallett replied that the City would have an empty building and would have to be either substantially remodeled or demolished. Director Maruthur pointed out in the resolution, Section 1, the City would be getting out of existing, ongoing fiscal obligations, which the public needs to know. She mentioned that the items in No. 3 are variables and could very well be in the City’s favor as time goes on since things have a way of changing. Mr. George Pritchett, 125 Carl Drive, said he believes everyone in Hot Springs wants to retain the school in Hot Springs; and the economic impact is very positive. He stated that he appeared before the Board several weeks ago and asked where is the money going to come from. He noted in round numbers, the City’s budget for 2010 is $80 million. He stated by taking out the Enterprise Funds, it gets down to $20 million for the General Fund; taking out public safety, and it is about $8 million. He said $1.25 million in any year would impact that $8 million by about 16 percent. He pointed out the budget for 2010 was difficult, and there is no money in a five-year plan for this program. He stressed that he is not against this program but wants to know where the money is going to come from. He said that he has not heard of any private funding; and assuming the projections for the 2010-2014 period are accurate, this money is coming from about $8 million after taking out the street paving program, reducing the public safety programs, and eliminating Sister City. He commented the only thing that was not reduced was economic development and the Boys and Girls Club. He pointed out if the City is unsuccessful in finding private funding or more money for this program, it will be embarrassing to the City, the Board, and future Boards if the bill comes due and there is no money to fund it. Mayor Bush commented whenever the City gets to that point, he is going to ask the City Manager and his staff to come forward with recommendations on how the City is going to pay for it. He stated that he believes the citizens will respond, whether it is private or public. He pointed out the City has a $22 million investment, and all the Board has to do is obligate the City to take care of that building. Mr. Pritchett stated there have been frequent discussions about solving this and Board of Directors Meeting 11 January 19, 2010 at 7:00 P.M. other problems with an ad valorem tax. However, he does not think the citizens will give a favorable response at the ballot if the Board asks for money for this, public safety, or anything under these current economic times. He said he recognizes the University of Arkansas and the Governor need an answer and need it now to move forward. However, he believes it is fiscally irresponsible of the Board to commit this money. He suggested that the Board ask them to give the City time to find the funding so it can be certain that funding will be available when the time comes. Dr. Janet Hugo, 401 Lakeland Drive, director of the Arkansas School for Mathematics, Sciences and The Arts, said she appreciates Mr. Pritchett’s support. However, she does not think he is clear about the fact that the school has been given $6 million in stimulus money from the Governor that needs to be obligated in this year. She stressed that they cannot afford to wait another year, five, or ten years for that one reason but not for only that reason. She explained they are in a situation where the school is continuing to lose students. She stated they have to close down dormitory rooms and are running into a considerable amount of problems with regard to the facilities where they are trying to house students. She emphasized it is not a healthy environment for the students; however, the school’s maintenance supervisor and facilities manager is able to keep on top of things on a daily basis. She said they have quite a few problems with this facility, and the students deserve a decent place to live. She pointed out the City obligated itself to the school in 1991 when it put in a proposal to have this school located in Hot Springs, and it was Senator Canada who told the Senate at the time that the State would never have to worry again if the school came to Hot Springs. With regard to the time line, Dr. Hugo said she would like to make a correction to a statement made by Mr. Mallett. She stated they do not have the approval from the Board of Trustees, and that will happen on January 29. She added they have been waiting for this resolution to be passed before they are going to give her final approval to move forward. At that point, they will begin design work, which will take until at least September. They are then projecting 22 to 24 months of construction, and the earliest they see this project completed will be the spring semester of 2012. She said as Mr. Mallett stated, at this point, they are $7 million short of being able to complete the Student Life Complex, which means they have to retain many of their services in the old hospital building along with Pine Street. She noted their cafeteria cannot move if they do not have the money to finish that facility. Also, their library cannot move, nor can their computer science and engineering, nor any of their arts that are located in that building. She said it puts them in a situation where they may be looking at five years down the road before they ever totally vacate that facility. If they are able to complete the Board of Directors Meeting 12 January 19, 2010 at 7:00 P.M. Student Life Building, it would still mean that they have to move services into Pine Street; or if they are to ever renovate Cedar Street, they will do that. However, they need the old hospital to stand because all of the systems come from that. She mentioned they are not talking two years for the City to put this money together but more like three to six years. She stated she believes the City gives the support to the school; and the community needs to understand if this does not happen, she does not get to say what happens to the school. She reported that the conversations have happened multiple times with the Board of Trustees and the University of Arkansas that if this does not happen and students are not given a decent place to live, they will look at moving the school. She mentioned she has fought to keep this school in Hot Springs; and it is a part of this community, as well as financially a part. She advised that the conversations will start again, but she will not have the decision to make; and it will be out of her hands. She commented they will begin to talk about who wants this school in the state, and it will be some other city that will take it. Mayor Bush stressed that the City is not going to let the school go. Dr. Hugo said she appreciates the fact that they are asking the City to take on an obligation and have no way of knowing how it is going to be funded. She stated that she has 100 percent total faith that the Board will do the right thing and come up with the money. Senator Terry Smith, 101 Hal Court, stated if the City does not do this, the Board of Trustees is going to find a home for the school; and the City is going to be stuck with a 1927 building. He said that he agreed with Dr. Hugo and believes it is going to be more than three years before they are able to get the other $7 million. He noted that he would appreciate a good vote on this issue tonight. Representative Rick Saunders, 114 Burchwood Bay Cove, commented this is an opportunity and wonderful program; and there is not another program like it in the state. Also, this is a state program. He said with the chances that may or may not be taken with regard to funding to keep this school, then he thinks more power to the citizens of the City. He asked the Board for a positive vote and said the City can count on him for a good vote with regard to this project. Mr. John Selig, 467 Peninsula, mentioned that in July 1992, Hot Springs was chosen as the site for the school; and the City won that competition over seven other cities. He said the City Board, the legislative delegation, and the citizens of Hot Springs made a commitment to remodel the former St. Joseph’s Hospital; and they Board of Directors Meeting 13 January 19, 2010 at 7:00 P.M. made that commitment not knowing where the funds were going to come from. He mentioned that his wife, Helen, who was not Mayor at the time, was very instrumental in helping other citizens raise the initial funds for the school. He noted that two years later, September 1994, the building was officially turned over to the State of Arkansas; and the City is being asked to make another commitment to keep the school. He commented since 1994, the Math and Science School has brought millions of dollars to the community; and it is also recognized as the “crown jewel” of 11th and 12th grade education in Arkansas. He stated that today, the Governor, the legislative committee, and the University of Arkansas have proposed a $20 million investment in a new facility, which would be Phase I of the Master Plan. He pointed out the City has been asked to commit to demolishing the old hospital when the new dormitories are built. He said the City made a commitment 18 years ago to get the school and needs to make another commitment today to keep it. Dr. Gene Shelby, 137 Circle Drive, stressed the importance of this project pointing out that the Math and Science School is probably one of the largest employers in his district. He said it has been a great team effort from Congressman Mike Ross, Governor Mike Beebe, the University of Arkansas system, and the Hot Springs Chamber of Commerce to put this package together. He said to move it forward, they need an affirmative vote from the Board. Mr. Charles Silea, 210 Violet Street, said as an English professor, he knows how important this is and also as an economic development director in a suburb of Cleveland, Ohio, and compared this situation to a decision to keep the Cleveland Browns by asking the citizens to allow them to spend $15.5 million to build them a facility. He noted that team is now the biggest employer in the city. He stressed this school is very important to the community. He mentioned there was a question posed earlier regarding the source of the money. He stated the money is coming from retention, and the jobs that are saved, the income that is divided from all of the visitors who come here, the students who graduate and return later as teachers, business people, and politicians. He said this school provides an unending resource of bright, young people who are going to be committed to the community and urged the Board to support this resolution. Dr. Blake Robertson, 209 Trojan Terrace, stated one of his jobs is director of an adult education center in Hot Springs County. He spoke of one of his GED students and graduate who came from Jones Mill where many of the houses do not have walls or roofs, and this student lived in a house with two or three different families. He mentioned that she came to a program at Jones Mill in the local Methodist Church and graduated with her GED. She then came to the Math and Science School and received Board of Directors Meeting 14 January 19, 2010 at 7:00 P.M. a scholarship to the school. He pointed out that this student has done extremely well because of the Math and Science School. He said that he has heard that the University of Arkansas Board has some money and wants to give it to the City if it tears the building down. He noted at the present time, that building is costing the City around $200,000 to $250,000 a year for the maintenance. He said that he would suggest taking a little play from the Board’s actions earlier and that is the building of a City Hall where the Board obligated some franchise fees to collateralize a bond to have that building torn down. Senator Steve Faris said this school is the most unique facility of its kind in the state, and there is no better place than in the most unique city in Arkansas where this school can be. He pointed out they are a team in the legislature and brought resources from the legislature. He stressed that the Governor believes in the City, as well as the legislators and the federal government. He asked for a positive vote from the Board. Mr. Chris Reimers, 111 Squawvalley Trail, stated that last night he attended the Park Avenue Community Association meeting where this issue was discussed; and the members of the association voted 100 percent to support this resolution. He said that he has been told that state funding, along with federal stimulus monies, will amount to an estimated $20 million in this project. He said he believes this is one project that will pay for itself. He mentioned that he was against spending federal and local funds the City does not have. However, he believes that this will pay for itself. He pointed out this school is going to be built somewhere in Arkansas, and there are many economic reasons for keeping this school. He expressed appreciation to Mr. Mallett for using local workers. Director Maruthur advised that she has been contacted by several people from the Whittington Valley Association who are in favor of this. She pointed out this facility has federal support through the stimulus package and support from the Governor, as well as the legislators, federal and state, who have really worked hard. She then mentioned the following breakdown so the public would understand the impact the school has. At the present time, there are 200 students but used to have 240 students. However, because of the deteriorating conditions, those had to be reduced. The new facility will house 250 students; there is a faculty of 60 employees; 95 percent do live here; there are 118 full-time state employees; 25 food service employees; 6 employees through a local janitorial company; and 17 employees provide security. The Powers Company provides contractual maintenance which keeps the building operational, and there are 6 employees in that. She pointed out these employees pay property taxes, along with other financial obligations that come with living in the community. Once a week a bus takes students to Wal-Mart, which is revenue. According to the impact study Board of Directors Meeting 15 January 19, 2010 at 7:00 P.M. that was done in 2006, the economic impact of this school was $7 million. The students frequent businesses downtown, and some businesses give them discounts. On Thursdays, a group from the faculty go to the Brau Haus, which is an impact to a restaurant. Students go to Subway in Spencer’s Corner. She stated according to Dr. Janet Hugo, the students frequent the movie theaters. When the parents come to Hot Springs to shop, eat and spend money, these people are coming from all over Arkansas. She pointed out some of these people might not be visiting Hot Springs; but because their children attend this school, they are getting to know Hot Springs. She mentioned that the food service shops at Kroger for their specialty items. She advised that the ASMSA will again host a teacher’s conference that will bring 400 teachers to Hot Springs; and the conference is January 28, 29 and 30. They will stay at the local hotels, and there is a smaller conference that will be hosted by the ASMSA this summer. She commented the school contributes to utility bills and all those fees that go along with them. She noted some of the local companies that are used by the ASMSA are H&H Electric, Huntco, City Plumbing, and Tommy’s Appliance; and the school gets its appliances from Tommy’s. Other chains that are frequented by ASMSA are Sutherland’s, Lowe’s, Office Depot, and Wal-Mart. They all pay sales tax that the City desperately needs in these hard economic times. She pointed out if the City should lose this educational and cultural gem, it would lose something that would be gone forever. She stressed that the City must honor its obligation that it made and enjoy the financial benefits that the City will have in perpetuity. She added this building would still need to be torn down, and the City would have to pay for security. She pointed out that is a big price tag. She stated this is a win-win situation, and the community is behind this school; and she wants the Board of Governors to know that and the Governor. Mayor Bush commented that Hot Springs is not going to lose this school. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Ramick, Daniel, and Bush, total 6. Absent and not voting: Director McCabe; motion unanimously carried. Whereupon the resolution was declared adopted. 17 Proposed Resolution No. R-10-15 A resolution entitled, “A RESOLUTION APPROVING A LOT SPLIT AND INCIDENTAL PLAT ON LONG ISLAND DRIVE,” was taken from the agenda and read by title only. (Appeal) A motion was made by Director Ramick, duly seconded by Director Daniel, that Board of Directors Meeting 16 January 19, 2010 at 7:00 P.M. the resolution be adopted as read. Upon discussion, Ms. Kathy Sellman, Planning and Development Director, explained this is an appeal of the Planning Commission decision and Planning Commission findings. She said the recommendation to the Board is to deny the resolution. She noted the resolution grants lot split and boundary line adjustment approval to establish three residential lots on two lots of record on 1.62 acres, along with three variances because without the variances, the applicant cannot meet the applicable Hot Springs Code sections. The land is located beyond the city limits but within the City’s adopted planning area boundary. She advised this request fails to comply with three regulatory provisions of the Subdivision Ordinance; and these provisions include minimum lot depth, lot width requirements, minimum side yard setback requirements, and minimum lot width to depth ratio for lots located in the planning area. She stated the 1.62 acres has approximately 160 feet of lake frontage, and the subject properties are two existing lots of record (211 and 213 Long Island Drive). She commented the lot to be divided is 213 Long Island Drive, which is irregular in shape and has approximately 70 feet of street frontage and a structure located on the rear of the lot near Lake Hamilton. She said in order to accommodate the proposed lot split and lot line reconfiguration, there are three waiver of variance requests; and the Subdivision Ordinance does provide for waivers saying that where the applicant alleges that extraordinary hardships or practical difficulties may result from strict compliance with these regulations, that a variance is a possibility. The Code does note, however, in subsection 4, that pecuniary hardships standing alone shall not constitute grounds for the granting of a waiver or variance. She mentioned the variances are (1) a side-yard setback variance or waiver from the required 12-foot side-yard to five feet on one side and that is on the proposed Tract 3; (2) a minimum lot width requirement variance from the required 60 foot, and that would result in approximately 40 feet along the lake front, 20 feet along the road, and approximately 50 feet near the building site, which is on Tract 3; and (3) the final waiver request is to exceed the minimum three times deeper than width lot configuration requirement to be approximately eight times as long as the average width on Tract 3. She advised the Planning Commission concurred with the staff’s report findings, which is the proposed lot split subdivision request does not comply with various sections of the Subdivision Ordinance as illustrated in the discussion section of the staff report. Should the waiver request be granted, it would turn one conforming lot into two nonconforming lots, as well as create a side-yard setback of seven feet encroaching on that Lot 3. She stated these three waiver requests appear to result from hardships that are self-imposed by the applicant, and all three are inconsistent with the Purpose Statement of Section 16(2)(a) in the Hot Springs Code, which is the Subdivision Ordinance. After considering this request at the December 10 meeting, the Planning Commission has found that the Board of Directors Meeting 17 January 19, 2010 at 7:00 P.M. proposed lot split subdivision application failed to demonstrate with certainty why waivers of three code requirements on the proposed lots met the specifications and intent of the Code and found that any hardship was self-imposed by the proposed division of 213 Long Island Drive. Therefore, the Planning Commission vote was a unanimous vote to deny. Mr. Ralph Cross, 112 Canary Court, said that he and Mr. Anthony are trying to accomplish a lot split at 211 Long Island Drive and not 213 Long Island Drive. He pointed out that Mr. Anthony and his family have owned that property on Long Island Drive for over 55 years and have been very proactive in the development of Hot Springs. He mentioned they developed Anthony Island, the Avanelle Motel, the Velda Rose, the Anthony Motel, and countless donations to different projects, such as Garvan Gardens. He said is asking that the City allow his daughter to have a piece of his property and move next door to him. He stated in 2000, his son moved back from North Carolina; and he gave him a piece of the property on Long Island Drive. He said if they would have had the foresight to do it all at that time, this would be a non-factor because that was done in 2000; and the City took over jurisdiction in 2006. He mentioned the three exceptions they are asking for is the length and width. He noted that Mr. Anthony was kind enough to give the property, so they made the lot as small as they could to get a house on it. He stated the side lot setback is 12 feet, and they are asking for a five-foot exception. However, there is a fence that has been there for 50 years; and that is another four feet past the property line, which would be the assumed property line. Therefore, it is actually nine feet from what would be the assumed property line. The other thing is the requirement for 60 feet on Long Island Drive. At the present time, there is about 70 feet total; and they are proposing to make a joint entry with one curb cut and bring the driveways in together and then separate it into each home. He noted at the present time, there is an existing eight-foot alleyway down to Mr. Anthony’s house, and they propose to clean that up, make it a 12-foot wide entrance, and then separate it as they go. He mentioned they would like for the Board to consider what Mr. Anthony and his family have done for the City and let his daughter live next door. Director Daniel questioned where the extra five feet comes in, and Mr. Cross advised that the legal description for the property line is actually four feet from an existing fence that has been there for 50 years that could be claimed by adverse possession, if necessary. He said they are asking for the four feet from the fence, plus five feet, so it would be nine feet from what is assumed by both neighbors. He added that neither neighbor has complained about it. Director Maruthur questioned the Horizontal Property Regime concept, and Ms. Board of Directors Meeting 18 January 19, 2010 at 7:00 P.M. Sellman replied since this is a family wanting to be close to one another to construct a second home on the same lot under site plan review by the City and organized similar to a condominium, that could be done without waiver of any of the code requirements. Director Ramick asked when Mr. Cross was notified of the possibility of HPR (Horizontal Property Regime), and Ms. Sellman replied that would have appeared in the Planning Commission’s staff report and typically that goes out the week before the Planning Commission meeting. Director Ramick commented he was planning this all along, and then all of a sudden he was told he could form a HPR and has a week to prepare for it. Ms. Sellman advised that would not have been expected of him to have that ready for the Planning Commission meeting. She said he could have had additional time at his request to vary the application to that alternative. Director Daniel pointed out that she brought that to the Board’s attention at the agenda meeting, and Ms. Sellman replied that she did. Director Daniel asked if it was sent out before, and Ms. Sellman replied that it was not. She added it was information available to him prior to the Planning Commission meeting in December. Director Daniel commented that he already had it when the Board had the agenda meeting last week when she explained about the Horizontal Property Regime. Ms. Sellman advised if he had it in December, he had it last week. Attorney Travis Morrissey, 518 Ouachita, said the only issue from a legal standpoint that the HPR presents in this particular situation is normally it would still be called Property Owners’ Association where each particular unit in that Regime has a legal entity separate and apart which would be pledged and mortgaged. He said a difficulty in this one is that not all of the parties have mortgages on theirs, and the Crosses are going to take out some kind of construction loan. He noted if there is a third party, unrelated, there are worries about common area, maintenance, and those sort of issues. He commented that an HPR, particularly appropriate under those circumstances, and the Anthony’s property being free and clear, it is not as simple as it seems just to have one drawn up and does not solve everything. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Ramick, Daniel, and Bush, total 6. Absent and not voting: Director McCabe; motion unanimously carried. Whereupon the resolution was declared adopted. 18 Proposed Resolution No. R-10-16 Approving a Variance Request for a Board of Directors Meeting 19 January 19, 2010 at 7:00 P.M.  Freestanding Sign at 1301 Albert Pike (Appeal) (Removed from Agenda at Request of Applicant) 19 Proposed Resolution No. R-10-17 A resolution entitled, “A RESOLUTION ADOPTING THE 2009-2014 STORMWATER MANAGEMENT PROGRAM,” was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Keheley, that the resolution be adopted as read. Upon discussion, Mr. Denny McPhate, Public Works Operations Director, advised this program is required to meet new ADEQ permit requirements and is a requirement of ADEQ every five years to obtain and maintain regulated MS4 general permit, which is an authorization to discharge stormwater to receiving waters. He stated this modifies the Stormwater Management Program initiated in 2004 for the general stormwater permit that was effective at that time. Thereby, the City would be meeting all new ADEQ and EPA regulations as required under the City’s MS4 Permit. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Ramick, Daniel, and Bush, total 6. Absent and not voting: Director McCabe; motion unanimously carried. Whereupon the resolution was declared adopted. 20 Proposed Ordinance No. O-10-9 An ordinance entitled, “AN ORDINANCE ACCEPTING ANNELISE PLACE, RACHELWOOD COURT, AND HANK PLACE AS PUBLIC STREETS; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Ramick, 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 “Shall the ordinance be passed as read?” and upon motion of Director Ramick, duly seconded by Director Maruthur, that the ordinance be passed as read. Board of Directors Meeting 20 January 19, 2010 at 7:00 P.M.  Upon discussion, Mr. Denny McPhate, Public Works Operations Director, stated the acceptance of these streets is a request from the developer of Rachelwood Subdivision. He said they have been inspected by the Engineering division of the City, and they do meet City specifications. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Ramick, Daniel, and Bush, total 6. Absent and not voting: Director McCabe; motion unanimously carried. Whereupon the ordinance was declared passed. 21 Proposed Ordinance No. O-10-10 An ordinance entitled, “AN ORDINANCE ESTABLISHING CERTAIN POSITIONS WITHIN THE CITY MANAGER FORM OF GOVERNMENT; REPEALING ORDINANCE NO. 3875; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Ramick, 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 “Shall the ordinance be passed as read?” and upon motion of Director Daniel, duly seconded by Director Jones, that the ordinance be passed as read. Upon discussion, Mr. Chris Reimers, 111 Squawvalley Trail, asked what positions are going to be established. City Attorney Brian Albright advised that in 1986, when the City formed the city manager form of government, there were positions established by ordinance. He stated State law authorizes the City to establish these positions that normally would be elected in a mayor-council form of government. He mentioned the ordinance that was passed in 1986 was very specific with the way those would be joined together and operate. He stated that Lance Hudnell is the City Manager and has been acting as the City Clerk since that time and is not logical for the City Manager to be the City Clerk as well. He pointed out this is just a reorganization and now satisfying the state statute whereby the City Manager will appoint those positions as those positions become vacant. Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Ramick, Daniel, and Bush, total 6. Absent and not voting: Director McCabe; motion unanimously carried. Board of Directors Meeting 21 January 19, 2010 at 7:00 P.M. Whereupon the ordinance was declared passed. 22 Proposed Ordinance No. O-10-11 An ordinance entitled, “AN ORDINANCE AMENDING ORDINANCE NO. 4047 FOR MUNICIPAL WARRANTS; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Ramick, 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 “Shall the ordinance be passed as read?” and upon motion of Director Jones, duly seconded by Director Daniel, that the ordinance be passed as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Ramick, Daniel, and Bush, total 6. Absent and not voting: Director McCabe; motion unanimously carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 23 Board of Directors Items for Discussion Director Jones announced that the MLK Breakfast was held on Dr. Martin Luther King, Jr. weekend, and Mayor Bush gave a wonderful welcome and appreciated everyone who attended. She thanked the Hot Springs Civic and Convention Center and Mr. Steve Arrison and his staff. She stated there was a parade on Monday, and the weekend ended with R.E.G.A.R.D. having a potluck supper at Webb Center. 24 City Manager’s Report City Manager Lance Hudnell gave the following report: 1. The first leg of the City Net Project, which was a part of the new Cable TV Franchise, has been completed and expressed appreciation to Peggy Beggs and Patrick Dobbs, with the IS Department, for making the final end connections, as well as Resort Television Cable Company for providing that under the new Franchise Agreement. He said it will save some dollars on the phone bills because this will replace some existing data lines that can now be cancelled. Board of Directors Meeting 22 January 19, 2010 at 7:00 P.M.  2. He expressed appreciation to Ms. Angie Fenley, Payroll Manager, Human Resources Department, for her time in entering approximately 400 furlough election forms. 3. Mr. Wade Kinnu, Backflow Inspector, has received his residential inspection certificate and said he appreciate employees going above and beyond to receive additional training. 4. He distributed a notebook regarding the City’s Health Insurance Plan, which will be considered for adoption at the next Board Meeting. 5. A Board and Planning Commission work session is scheduled immediately following the next agenda meeting, and packets for that will be available on Thursday. 6. The 2010 Census is upcoming and is important to the City and County and other organizations. He encouraged people to return their forms when they receive them. 7. Notes of appreciation were received from Mr. Brian Gehrki and Ms. Cheryl Batts regarding the Planning work session that was held. They are serving on the citizens committee, and he expressed appreciation to the entire committee that took two days out of their schedule to participate in the Comprehensive Plan. Director Maruthur has suggested that she would like to have two District meetings in different parts of her district as staff gets the draft policy together for citizen comment. He said he would assume that other Board Members would like to do the same and will be working with them in a month or six weeks whenever the first draft is completed. After that time, the City can begin receiving additional comments from citizens. He expressed appreciation to Director Maruthur for making the suggestion regarding the district meetings. 25 ADJOURNMENT There being no further business to come before the Board, the meeting adjourned at 8:40 p.m., to meet again on Tuesday, February 2, 2010, at 7:00 p.m. Board of Directors Meeting 23 January 19, 2010 at 7:00 P.M. ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor Board of Directors Meeting 24 January 19, 2010 at 7:00 P.M.