Board of Directors

MINUTES BOARD OF DIRECTORS MEETING MARCH 15, 2011, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Tuesday, March 15, 2011, at 7:00 p.m., Board Chambers, City Hall, with Mayor Ruth Carney presiding. The invocation was given by Mr. Bryan Sligh, and Pledge of Allegiance to the Flag was led by Mayor Carney. Mayor Carney 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, Pat McCabe, Karen Garcia, and Ruth Carney, total 6. Absent: Director Tom Daniel. 2 Approval of Agenda A motion was made by Director Keheley, duly seconded by Director McCabe, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of March 1, 2011 Board Meeting A motion was made by Director Jones, duly seconded by Director McCabe, that the minutes of the March 1, 2011 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Ms. Jean Wallace, Parks and Recreation Director, stated there are members of the Friends of the Parks present, who have been supporters of the Hot Springs Creek Greenway Trail and many times presented checks for grant matches. She then recognized Mr. Ned Skoog, president of Friends of the Parks, who introduced the following members: Dr. John Simpson, Mr. Clem Lambeth, and Mr. Ken Freeman. Mr. Skoog then presented a check to the City in the amount of $10,000 to help begin construction of the Valley Street Creekwalk, Phase II, of the Hot Springs Creek Greenway. He said they appreciate the cooperative effort of the City, federal grant funds, and many other organizations, businesses and individuals; and particularly notable for this section are the Sanders Family, Spa Pacers, and others. Director McCabe introduced Mr. Charles Laggan, vice president of Arkansas Midland Railroad, and asked that he speak about the service he provides to local industry. Mr. Charles Laggan advised that Arkansas Midland Railroad is one of about 550 small railroads in the United States and one of about 22 in the State of Arkansas. He said there are three large carriers, and Arkansas Midland is one of 22 small carriers. He noted that Arkansas Midland began in 1992, and they bought four lines from Union Pacific. He said these were all candidates for abandonment and were in poor condition and were about 15,000 carloads of business. He stated the biggest line they had of those four was the branch in Hot Springs that went up to Mountain Pine and served Weyerhaeuser. Their parent company, Pinsley Railroad, is about a 73-year old entity, family-owned business. He said they started in 1992 with about 30 employees and handled mostly lumber, wood chips, building products; also, they handled some aluminum, agricultural products, chemicals and stone. He noted they invested heavily in the lines since 1992 and upgraded them for long-term dependable service. They worked with their existing industries, new industries, and brought some new industries to the communities that they service. He advised they lost some of their industries, such as Weyerhaeuser, and had a large Quincy soybean facility in the Helena branch that was acquired by ADM. In 1993, they started a distribution facility in Jones Mill, where their offices are located. In 1999, they added a railcar repair facility at Jones Mill; and in 2000, they leased additional trackage from Union Pacific in North Little Rock. In 2004, they assisted Union Pacific and some industries that were distressed on the branch that has now become the Warren branch, which goes from Warren to Dermott; and they were without a rail service. In 2005, they acquired another line from Union Pacific known as the Cypressbend branch, which goes out to Arkansas City from McGehee. In 2008, they helped Jacksonville, which has some industries that wanted more service than Union Pacific could supply. In 2010, they acquired two additional lines from one of their customers, Potlatch Lumber Company, which had two small railroads they did not want to operate any longer and asked if Arkansas Midland wanted to take those over, which they did in 2010. Later in 2010, they assisted some industries in Gurdon to resume service that was about ready to cease. Arkansas Midland now operates nine branches in various parts of the state and has two railroad Board of Directors Meeting 2 March 15, 2011 at 7:00 P.M. distribution facilities (one in Jones Mill and one in North Little Rock). They now employ 77 people and handle over 45,000 carloads and serve over 50 industries in Arkansas. These industries provide jobs to over 4,500 people in Arkansas, and they depend on the railroads for moving their products economically. They operate a fleet of 17 locomotives and provide a connection for their industry to the national rail network. There are about 140,000 miles of railroads in the country, and Arkansas Midland preserves access for them to national and international markets, as well as access to suppliers that they would not otherwise have interest or have the ability to reach. He commented they are an active partner on economic development, and their local staff interacts with state, county and regional, city economic development people, commercial realtors, and developers. He stated that Ms. Maria Haley, executive director of Arkansas Economic Development Commission, joined them at Arkansas Midland’s semi-annual advisory board last fall. He said the ADM maintains a listing of valuable development sites, and Arkansas Midland tends to be a catalyst between the industry, state agencies, local agencies, and industrial developers. He reported a study was done by the U. S. Department of Transportation, the Federal Highway Administration, talking about the future; and there will be greater use of rail needed as highways become more constrained. He mentioned that USDOT projects additional congestion on the highways and project the need for additional rail service in the future. He stated trains are an environmentally friendly mode and can move one ton of freight over 400 miles on a single gallon of fuel; greenhouse gas emissions are reduced by about 75 percent compared to transportation by truck. He pointed out the nine lines they operate in Arkansas, including the one in Hot Springs alone, kept about 190,000 trucks off the roads last year. He stated the single, largest train they handle is a 125-car train and carries the equipment of 650 truckloads. He advised if all the freight that moved through Arkansas last year on railroads were switched to trucks, that would have added an additional nine million trucks to the highways in Arkansas last year. Mayor Carney asked that Mr. Mallett share how the City is cooperating with them as far as the City’s lines, and Mr. Steve Mallett advised that the City has several locations where the water and wastewater lines run alongside Arkansas Midland Railroad property. He said they have been a good corporate partner and worked with the City on that. He noted the City is also looking at them moving forward in a different type of agreement such as a blanket-type agreement, which would improve the process. He expressed appreciation to Mr. Laggan and his staff for the work they do in working with the City on a daily basis. Director Keheley question his location in Hot Springs, and Mr. Laggan stated that their office is located at the Industrial Park in Jones Mill. Board of Directors Meeting 3 March 15, 2011 at 7:00 P.M.  Director Jones recognized Mr. Elmer Beard, with the NAACP. Mr. Elmer Beard said they are located in the Webb Community Center at 127 Pleasant Street. He noted there is a park in Hot Springs named after a previous president of the NAACP and is known as the Kenneth Adair Park. He noted that he served on the City Council with Mr. Adair, and that was not voluntarily done. He mentioned they had to demonstrate in the Board Chambers for that to take place; therefore, there is a history of protesting civil rights that they are proud of. He said they hope to get to the point they can forget it and pretend it is not a part of their past. However, they have not reached that yet. He pointed out they realize that there is just a mild “sickness of oneness” among many institutions in Hot Springs beginning with the City of Hot Springs. He commented they call that “sickness of oneness” where there is one department head with no members, and that department head happens to be African-American. He noted it goes throughout the City of Hot Springs and throughout many areas of the City and County government and with businesses where African-Americans are spending their dollars just looks like everyone else’s dollars. He said he brought this out because he believes this is an area of improvement that could be made. In doing so, they would not like to be assigned the responsibility of finding that person to dilute that “oneness” that is in so many positions. He stated it is not just Hot Springs, the state and the nation, but since this is where he has his base politically, where he became an alderman, where he served for the length of term that he was committed to serve and saw many changes take place, he happens to mention the City of Hot Springs. He added the City has been a great supporter of The National Association for the Advancement of Colored People through the years. He advised that 40 years ago, the City began electing aldermen by ward; but prior to that in 1954, following Brown versus the Board of Education of Topeka, Kansas, there were two African-Americans who ran for public office; and one of them had the name of a white man. He stated there was some confusion, and the black man won. In 1954, six years before 1960, which was the ten years prior to his coming on the City Council as Alderman, the City had an African-American alderman; and he was accepted. He pointed there is a history of advancement; a history of being first; and a history of doing those things that need to be done. He explained that he wanted to point that out and show his appreciation for the history of Hot Springs city government and what it has done in the past. He said that he will return to address the Board at a future date and will have numbers, the percentages of African-Americans, male, female, black, white, Jew, Gentile, etc. Also, he will have some reports on other establishments in the community and hopes to eliminate this “sickness of oneness” that is present. Board of Directors Meeting 4 March 15, 2011 at 7:00 P.M.  Mayor Carney announced that two of her sons are present tonight, and her older son is from California doing some production work at Hot Springs District Court. 5 Board of Directors Announcements Director Maruthur announced on Monday, March 21, the Park Avenue Community Association will hold its meeting at the Tower of Strength Ministries, 315 Park Avenue; and this is the recognition of Art Month and invited everyone to attend. She said if anyone plays an instrument or has some paintings to display, or poetry to read, they would be welcome. She stated that the Nuisance Abatement Officer and Deputy City Attorney Trent Daniel will be present. Also, on April 2, from 7 a.m. to 5 p.m., at 761 Park Avenue, between the Tower Motel and El Taqueria de Amigo, the Association will have a rummage and bake sale. If there are any questions regarding the rummage sale, the contact person is Cindy at 760-8812 or 249-3265. If anyone would like to join the Park Avenue Community Association, the Association will be glad to accept them as a member. The dues for an individual are $5; family membership is $10; and an annual business membership is $15. Director Jones announced that the Shortest St. Patrick’s Day Parade will be on Thursday, March 17. Director McCabe mentioned that last Friday morning on the news, the devastation in Japan was reported created by an earthquake and tsunami. He said shortly after 6 a.m., he and his wife, Ellen, received calls from concerned friends and family members regarding the safety of their son, Ryan, who is a Second Lieutenant in the Marines stationed in Okinawa, Japan, which was about 1,000 miles away from that location. He noted there are other people from Hot Springs in Okinawa with the Marines and asked that everyone keep them in their thoughts and prayers. He said that he talked to his son on Saturday evening, and his responsibilities were to ready some communication equipment should members of the Third Marines from Okinawa have to go to northern Japan. He noted as of Saturday, his son said that was not required. He reported this morning, it was announced on the news that 2,000 Marines from Okinawa were headed to Japan. He said his son was not part of the original plan to go, so he may not go; however, communication is always the best when there is a disaster situation; and he has not been able to talk with him since. He asked that everyone keep all of the citizens of Japan in their thoughts and prayers, as well as the Marines and Navy, and often times those individuals are seen as military warriors versus humanitarians, but it is truly a humanitarian effort on their part. Board of Directors Meeting 5 March 15, 2011 at 7:00 P.M.  Mayor Carney announced that a fund has been set up at Simmons Bank, and those funds will be sent to Hanamaki, Japan, to help with the disaster relief for the other areas. Mayor Carney announced on March 22, at 4 p.m.,the Board will review the 2030 Comprehensive Plan and also an executive session will be called to discuss the committees, boards, and commissions. Director Keheley noted there had been discussion regarding the possibility of interview for the regulatory commissions and questioned if that will take place at that time, and Mayor Carney advised that it will not. Director Garcia mentioned that Mr. Steve Mallett provided the Board with more detailed information regarding Item No. 7c (bid award on compost grinding) on the Consent Agenda after the packets were distributed, and he will make that available to anyone who wants that information. She expressed appreciation to him for providing that information. Director Maruthur read a paper she wrote on August 24, 2010, in response to all the fracking that has been occurring, and is entitled, “Blessed,” which is in light of has happened this Friday in Japan. She added that she submitted an e-mail to the City Attorney and asked if he sent it to everyone. City Attorney Brian Albright advised that he did not forward it but would as soon as the meeting is over tonight. CONSENT AGENDA The Consent Agenda consisted of the following: 6 Public Safety Committee Report (March 1, 2011). 7 Proposed Resolution No. R-11-36 Approving Certain Bid Awards (a) Mowing Grounds Maintenance - Parks, Animal Service and Public Works [annual supply contract]; (b) Transfer Station Compactor #4 Rebuild - Sanitation; (c) Compost Grinding (Final Extension)-Utility Administration [annual supply contract]. 8 Proposed Resolution No. R–11-37 Authorizing the Filing of a Grant Application with the Arkansas Historic Preservation Program for Training and Travel Expenses for the Historic District Commissioners and Staff; and to Retain a Consultant to Perform a National Register of Historic Places Nomination. Board of Directors Meeting 6 March 15, 2011 at 7:00 P.M.  A motion was made by Director Jones, duly seconded by Director Garcia, that the Consent Agenda be approved; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, and Carney, total 6. Absent and not voting: Director Daniel; motion unanimously carried. NEW BUSINESS 9 Proposed Ordinance No. O-11-5 An ordinance entitled, “AN ORDINANCE AWARDING A CONTRACT TO MID-ARK ROOFING, INC. AND WAIVING REQUIREMENTS OF COMPETITIVE BIDDING FOR ROOF REPLACEMENT AT THE HOT SPRINGS WASTEWATER TREATMENT PLANT (CHLORINE BUILDING); CERTIFYING EMERGENCY ACTIONS BY THE CITY MANAGER; DECLARING AN EMERGENCY; AND FOR OTHER PURPOSES,” was taken from the agenda and read by title only. A motion was made by Director Keheley, 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 Keheley, duly seconded by Director Jones, that the ordinance be passed as read. Upon discussion, Mr. Steve Mallett, Deputy City Manager for Public Works and Utilities, explained this ordinance is waiving requirements of competitive bidding for emergency roof repair at the regional wastewater treatment plant. During a storm on February 24, 2010, a roof at the Chlorine Building became damaged to the point that it needed to be repaired immediately because that is the chlorine room and is how the water that leaves the plant is disinfected. He stated in accordance with Ordinance No. 4532, the City Manager declared the item as an emergency and authorized the contract with Mid-Ark Roofing in the amount of $26,143. Upon beginning the work, it was discovered that it was constructed with papered insulation, which is not common roofing. Therefore, it caused an increase in the repair estimated at $13,609, which was given to the adjuster; and the adjuster negotiated the amount with the contractor. He advised the City’s responsibility in the matter is $5,000, which is the deductible; and anything over that is between the adjuster and the roofer. He stated they reached an agreement, and the City Manager issued a Certificate declaring an emergency and allowing the contractor to proceed with the work. Board of Directors Meeting 7 March 15, 2011 at 7:00 P.M.  Mayor Carney then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, and Carney, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. 10 Proposed Ordinance No. O-11-6 An ordinance entitled, “AN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PURCHASE OF CERTAIN REAL PROPERTY AND TEMPORARY CONSTRUCTION EASEMENTS RELATED TO THE HIGDON FERRY WIDENING PROJECT, PHASE II, HIGHWAY 270 TO PRINTERS PLACE (AHTD JOB #061113); AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Jones, duly seconded by Director McCabe, 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 Garcia, that the ordinance be passed as read. Upon discussion, Mr. Steve Mallett, Deputy City Manager for Public Works and Utilities, stated this is to waive requirements of competitive bidding for the purchase of real property and temporary construction easements for Higdon Ferry widening, Phase II, which is a stretch of roadway between where it stops just south of Lakeshore Drive to Printers Place. He said there are 15 different parcels that are involved along that section which results in 11 real properties and 13 temporary construction easements which have been appraised and approved by the Arkansas State Highway and Transportation Department. He stated the total amount for these properties and easements is $921,293; and once authorized, the City will proceed with closing on the 11 real properties and will ask for check requisitions for the 13 temporary construction easements as there is no change of property on those. He said it is planned to have all of that done by the end of March. He advised that Property No. 70, which is the property where the Big Chill is located, has been returned to the Arkansas State Highway and Transportation Department for what was considered to be a friendly condemnation. He explained it was just a disagreement sometimes they do to establish a good value for the property, and he believes the City is still continuing with negotiations and may be able to avoid that. He mentioned that the City agreed to move Board of Directors Meeting 8 March 15, 2011 at 7:00 P.M. some daffodils off the hillside that will be taken into some property and relocated to points on the adjacent property, and the City will pay the 20 percent share of this cost. He added there is funding in the 2011 budget and also some remaining funding outside of that the City will carry forward for future phases. However, the City’s 20 percent share will be close to $185,000, which does not include closing costs, does not include utility relocation costs, or the fees the City paid the acquisition agent. He advised the City has budgeted this year $282,000 for all of those costs and believes it will be well within that so there will be some money to carry over to future projects. The City will be reimbursed at 80 percent of those amounts, with earmarked funding that was set aside for the City in 2006. Director Maruthur questioned the fund the remainder of the money is coming from besides the earmarked money, and Mr. Mallett advised there was an account set aside for Higdon Ferry and is dedicated for that purpose, which is in the Public Works Department. He added it is a separate fund that exists for the sole purpose of funding the project, and some of that money came from excess sales tax for the Convention Center, plus other funding that was set aside through General Fund budget before that. He added there is about $310,000 left in that account and is dedicated to that project. He stated that is the money that will be used for the City’s 20 percent match. Mayor Carney questioned if this included from Printers Place; and Mr. Mallett advised going north, it will stop at Printers Place and will provide all the property necessary for them to proceed forward with the construction. He added the City will have to identify additional funding over and above what it had to be able to go any farther. Director Garcia expressed appreciation to Mr. Mallett for all of the information and detail he provided on this and asked if he expected there to be any problems in completing this by the end of March. Mr. Mallett advised that he is not aware of anything; and if someone asks to forego the condemnation in favor of $2,000 or $3,000; and the Highway Department approves that, then staff may come back to the Board after a special called meeting between now and the end of the year so it can be done by March 31. He said he believes there are only two properties that have not agreed and signed the paperwork and both of those are in the process of doing so. He stated he is not aware of anything other than that one piece of property that staff may come back next Tuesday after agenda meeting to address that one item. City Attorney Brian Albright advised that under the worst-case scenario, the City would file an eminent domain action in Circuit Court and tender the money with the Board of Directors Meeting 9 March 15, 2011 at 7:00 P.M. Court in order to be able to take immediate possession so that the road work can move forward. He stated this is a hard deadline for the Arkansas State Highway and Transportation Department, and the City does not want to miss that opportunity. However, it is not expected. Mayor Carney then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, and Carney, total 6. Absent and not voting: Director Daniel; motion unanimously carried. Whereupon the ordinance was declared passed. OTHER BUSINESS 11 Board of Directors Items for Discussion Director Jones asked that the City put out a plea for its Sister City because they are helping the town next to Hanamaki, Japan. She spoke of how the group from Hot Springs was graciously treated in 2000, and urged the City and everyone to help them. Director Garcia said that she had some calls from citizens who wanted to thank the Public Safety Committee for addressing some issues on Willowbend Circle and also on Files Road. Also, she expressed appreciation to Steve Arrison, Mike Dugan, and everyone involved today in the Babe Ruth event. She pointed out there is some remarkable history in Hot Springs, and they had from St. Patrick’s Day in 1918, “Change Baseball Forever.” She mentioned the national expert in this baseball history and his wife visited Hot Springs this week and were here for this event where it measured at 573 feet and landed in the second alligator pond at the Alligator Farm. She recognized the efforts that City staff is addressing to assess and look at improvements in the contract and procurement procedures, and everyone may not know what activities have gone on behind the scenes since the Board took action on terminating the Jacobs Engineering contract. She thanked the various departments and staff who are working diligently in addressing the issues and noted that everyone is accepting accountability to move forward. 12 City Manager’s Report Deputy City Manager Steve Mallett gave the following report: Board of Directors Meeting 10 March 15, 2011 at 7:00 P.M.  1. He announced that City Manager Lance Hudnell and Director Daniel are in Washington DC attending the National League of Cities Conference, and he spoke with him today and plan to spend all day tomorrow on Capitol Hill meeting with the City’s legislative delegation. 2. Regarding the Sister City Fundraising events for Japan relief, Hanamaki did sustain damage from the earthquake; but they are accepting evacuees from the harder hit coastal area of Iwate Prefecture. There are children in the Hot Springs area schools with Sister City School ties to Hanamaki, and they are being asked to contribute pocket change at school this week to help those who are suffering from the aftermath of the recent earthquake and tsunami similar to the one that the Hanamaki children conducted to help families who evacuated to Hot Springs after Hurricane Katrina. He thanked Mr.Tom McArthur and staff at ABC Barber College, located at 103 Brenda Street, who are donating the entire proceeds of all haircuts for men, women and children on Wednesday, March 30. The college only charges $6 for haircuts, but Mr. McArthur said if a customer pays more than that, it will all go to the Japan relief fund. The Hot Springs National Park Sister City Foundation has established a donation account for the Japan relief fund, and donations may be brought to any of the local branches of Simmons Bank. The proceeds will be used to help those in need throughout the affected region. 3. There was a groundbreaking ceremony today for the Valley Street Creekwalk, Phase II, of the Hot Springs Creek Greenway Trail. The new phase will stretch from Belding Street north along the donated Sanders Family Trust property to the Sanitation Complex property line at Runyon. This phase is an extension to the Friendship Trail portion of the Greenway to the planned crosswalk at Belding Street. 4. This Thursday will be the First Ever 8th Annual World’s Shortest St. Patrick’s Day Parade and will include many activities beginning with the Blarney Stone Kissing Contest at 4:30 p.m.; the official measuring ceremony at 6:00 p.m.; the parade at 6:30 p.m.; and John Corbett Band will be performing after the parade. All events are free of charge and more information is available on the official parade website at www.shortestpats.com 16 ADJOURNMENT There being no further business to come before the Board, a motion was made by Director Keheley, duly seconded by Director Jones, that the meeting be adjourned. Board of Directors Meeting 11 March 15, 2011 at 7:00 P.M. The meeting adjourned at 7:50 p.m., to meet again on Tuesday, April 5, 2011, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Spicer, City Clerk Ruth Carney, Mayor Board of Directors Meeting 12 March 15, 2011 at 7:00 P.M.