Board of Directors

MINUTES BOARD OF DIRECTORS MEETING APRIL 19, 2011 AT 7:00 P.M. The regular meeting of the Board of Directors was held on Tuesday, April 19, 2011, at 7:00 p.m., Board Chambers, City Hall, with Mayor Ruth Carney presiding. The invocation was given by Ms. Betty Lee Hill, 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, Tom Daniel, and Ruth Carney, total 7. 2 Approval of Agenda A motion was made by Director Keheley, duly seconded by Director Maruthur, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of April 5, 2011 Board Meeting A motion was made by Director Garcia, duly seconded by Director Jones, that the minutes of the April 5, 2011 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests Mayor Carney recognized Mr. Todd Woerpel, who expressed appreciation to the Board, previous city officials, and many current employees for their insight and development of the cityhs.net website, in particular the GIS mapping section of the website. He pointed out the public can access everything from a utility or a topography map to the location of the district they live in within the City. He commended Ms. Terry Payne, Public Information Director; Mr. Jeff Winter, Information Systems Director; Mr. Jeff Fields, Public Information Assistant; Ms. Mary Donaldson, GIS Technician; Mr. Steve Wince, Database Administrator; Mr. Patrick Dobbs, Assistant PC Technician; Ms. Peggy Beggs, PC Technician; and Ms. Dawn Bradford, Net/PC Technician, for their diligence and hard work. Director Maruthur thanked him for his presentation and said that credit is due to the person who started it all, Mr. Marcus Phillips, who did all the mapping and locating of everything by hand. and if it were not for his hard work, they would not have had a starting point. At this time, Mayor Carney recognized Mr. Mike Yeager, who was in charge of the homeless count that was done this year. Mr. Yeager said that he is president of SWAP, the local continuing care for the homeless, and introduced the vice president, Jamaal Hollinshed. He stated HUD started the continuance of care in the mid 1990's, and one purpose was to bring the players together that are dealing with homelessness and get them working together. He said the other was to get a point-in- time count every year that would be used to help decide how much money comes from HUD down to the local community. This January, they had 30 volunteers - people from SWAP, Project Hope, and thanked Captain McCormick for his advice on safety and where the camps were located. He also thanked Sonia Luzader, detective with the City, and the Street Crimes Unit, who were instrumental in assisting. In the County, he said there was a total of 1,045 homeless and also includes going out that to the camps, Jackson House, Samaritan Ministries, Potters Clay, and Quapaw House. He mentioned just on the streets and in the shelters in town, they came up with 136 adults, and 6 children; and Hot Springs School District has 212 children and 296 adults that meet the definition of homeless. He reported they have been asked by HUD to work on a ten-year plan, and Mayor Carney wants the City to take the lead and appoint a task force made up of city, county and private sector concerns to deal with the homeless issue. In response to Director McCabe, Mr. Yeager read the definition of homelessness as defined by Congress. Mayor Carney introduced Ms. Josie Fernandez, superintendent of Hot Springs National Park, who shared the events of National Park Week. She distributed a flier of the activities listed and said she is glad to be present on the eve of the 179 anniversary of the Act of Congress that set aside Hot Board of Directors Meeting 2 April 19, 2011 at 7:00 P.M. Springs Reservation as the first land protected by the federal government for future generations. She then spoke of the various activities that will be happening on Saturday and Sunday. Regarding those who are interested in walking, she has prepared a journal to chronicle how much walking they are doing on the trails. Also, they have prepared a special program for young people, a junior ranger program, and also invite them to go on hikes on the mountains and walk the trails. Mayor Carney then read a proclamation declaring the Week of May 1 through May 7, 2011, as Public Service Recognition Week and encouraged all to join in recognizing the accomplishments and contributions of government employees at all levels and presented it to Mr. Winston Wolf. Mayor Carney then read a proclamation proclaiming May 1, 2011, as Commemoration, Hope and Peace Day in Hot Springs. She then presented the Proclamation and presented it to Ms. Joann Reagler. Mayor Carney recognized a Boy Scout in attendance and students from National Park Community College, who are in Jason Lawrence’s Local and State Government Class. 5 Board of Directors Announcements Director Keheley announced that the Garland County Criminal Justice Jail Study Committee will sponsor a public town hall meeting on Monday, May 25, at 5 p.m., the Malco Theater. The public is invited to learn about the suggested site locations, the financing options, all of the plans, and give their input. Director Garcia announced that on the April 26, the Henderson State University alumni Reddie Rally will be held at the Hot Springs Country Club at 6 p.m. Also, on the April 28, the Business and Professional Women are sponsoring “Women Mean Business” luncheon and style show. All proceeds are designated to Safe Haven, shelter for women and children. On May 1, there is a free event at Garvan Gardens Anthony Chapel - “Commemoration Hope and Peace a Coming Together” that is sponsored by the Holocaust Education Committee and the Congregation House of Israel. th Director Maruthur announced that yesterday was the 25 anniversary of the Park Avenue Community Association, which was started by women; and the president and vice president are Board of Directors Meeting 3 April 19, 2011 at 7:00 P.M. women. She said she wanted to acknowledge all the ongoing work to save the integrity of the older neighborhood and the original part of Hot Springs. Director Jones congratulated Mr. & Mrs. Steve Arrison on the birth of their new grandchild. 6 Acknowledgment of Financial Statement Notices for January and February 2011 Mayor Carney announced that the Financial Statement Notices for January and February 2011 are on file at 517 Airport Road in the Finance Department for review by the Board and the public. CONSENT AGENDA The Consent Agenda consisted of the following: 7 Public Safety Committee Report (April 5, 2011). 8 Proposed Resolution No. R-11-58 Approving Certain Bid Awards (a) Transfer Trailer - Sanitation Department - awarded to Warren Manufacturing in the amount of $59,270; and (b) Transfer Tractor - Sanitation Department - awarded to Truck Center of Arkansas in the amount of $95,234. 9 Proposed Resolution No. R–11-59 Approving an Application from Levato Holdings, LLC, d.b.a. Wheelchair Transport Services, for a Taxicab Permit. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the Consent Agenda be approved; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. PUBLIC HEARING 10 Consider Public Hearing on Hot Springs 2030 Comprehensive Plan Update. Board of Directors Meeting 4 April 19, 2011 at 7:00 P.M.  Mayor Carney declared the public hearing open on the Hot Springs 2030 Comprehensive Plan Update. Ms. Kathy Sellman, Planning and Development Director, stated this public hearing is to hear comments about Hot Springs 2030, an update to the 1997 Comprehensive Plan. Arkansas Code assigns responsibility for long-range planning to a municipality’s Planning Commission. The Board of Directors then considers and adopts the Plan. Planning has multiple purposes, not the least of which is to ensure that the community has an active part in deciding how the city looks, functions and serves the needs of its residents as the future brings change. Planning provides the community a process to voice its preferences, identifying what is most important to it about its city and developing strategies to ensure that future decisions on land use, transportation, public investment and overall city management respect what the community values. Planning influences zoning, city budgets and individual actions on land use proposals. The long-range and comprehensive perspectives incorporated into a city’s plan underpin the specific development regulations cities adopt. Those regulations, including zoning, subdivision standards, public works design standards, and the processes through which projects are reviewed and the criteria by which they are evaluated, are based on the direction and message communicated in the plan. Planning Commission especially wishes to emphasize that certain key findings emerged through its many public outreach efforts. Those are reflected in the Goal and Policy Matrix of the Plan. Continuing city leadership will be required to implement Hot Springs 2030, and public participation in Hot Springs 2030 began in October 2009. Citizen meetings were held in several locations, a variety of venues, a variety of times of the day and days of the week. There was a citizen group that was appointed that grew to include every interested member of the public whether they were city or county residents. The City publicized meetings through news releases, paid newspaper advertisements, city newsletters, city website postings, facebook, on-screen advertisement, presentations and announcements, and other public meetings, displays and attendance of public events and city Channel 15. The Planning Commission advertised and considered testimony at a public hearing held on August 19, 2010, in fulfillment of an Arkansas statutory requirement. By unanimous vote, the Planning Commission recommends that the Board of Directors adopt Hot Springs 2030. Testimony at the official public hearing demonstrated repeated citizen interest in bike paths, sidewalks, curb and gutter, downtown revitalization, leadership, increase city/county cooperation, demand for expanded recycling opportunities, and healthy communities that include walkability and access to fresh foods. The draft Hot Springs 2030 was published on-line in late June 2010. As of today, approximately 400 copies on CD have been distributed to the public. Public participation at Hot Springs 2030 events and Planning Commission work sessions provided opportunities for questions, suggestions, discussion, and information gathering. The Planning Commission specifically requested Board of Directors Meeting 5 April 19, 2011 at 7:00 P.M. that this briefing be done to the Board for the purpose of emphasizing its key findings following the August 19 public hearing. Their findings are as follows: Hot Springs Planning Commission has taken steps to update the City of Hot Springs Comprehensive Plan 1997-2020, which was adopted September 1997, pursuant to and in accordance with Arkansas Codes Annotated. The draft update is called Hot Springs 2030. The Planning Commission advertised and conducted a formal public hearing on August 19, 2010, which was a culmination of an extensive public involvement strategy. The proposed Hot Springs 2030 will include the Metropolitan Planning Organization’s Long-Range Transportation Plan 2035 as adopted by that agency. The 1997 Future Land Use Plan Map is unchanged. The 1997 Comprehensive Plan is an appendix to Hot Springs 2030 and remains in effect, changed only insofar as Hot Springs 2030 specifically amends its goals, policies and priorities. She emphasized the themes of downtown, parks and open lands, trails and sidewalks, healthy and revitalized neighborhoods, improved city/county coordination and leadership, and environmental stewardship, including more opportunities to grow food and to recycle, are key topics heard again and again. The Planning Commission, therefore, turns this plan over to the Board of Directors in order to conduct a public hearing to accept comments about Hot Springs 2030. City Manager Lance Hudnell pointed out this is not an action item for the Board tonight but is to hear comments with regard to the public hearing on the Plan. Assuming that the comments do not make significant changes in the Plan, it will be presented at the next Board Meeting for adoption. Ms. Michelle Sestili, 575 Wildcat Road, said she participated in the citizen group involved in the original discussion of the 2030 Comprehensive Plan and attended the Planning Commission public hearings and has read the CD. She stated she understands the Plan and is in full support of the adoption of the Plan by the Board at the next meeting. She noted the updates to the goals, policies, and priorities as they relate to land use, transportation, and capital facilities are of interest to her even as a county resident. She stated the economic development of the City, resource protection and sustainability, which is addressed in the Plan through the goals and policies, as well as the social development in connection that is emphasized throughout all of the goals and policies, particularly recreational facilities, sidewalks, tails, bike paths, neighborhood parks, speaks to the prevention of crime through environmental design. She said these efforts have been proven to reduce crime by 17 to 76 percent when implemented in urban planning. She urged the Board will take the plan seriously and look at it as more than just a few sidewalks and bike paths but as a way to connect socially to improve the neighborhoods throughout the next decade. Board of Directors Meeting 6 April 19, 2011 at 7:00 P.M.  Ms. Courtney Butler, 120 Wildwood Circle, commented that 1/3 of the population is not able to drive in the City and United States. She stated that the public transportation runs about 8 a.m. to 5 p.m., and many people who need to use the bus cannot make it to work unless they work a 9 to 5 job, which many will not work those hours. She said she works at the Community College and the YMCA and went for a 3-day session on complete streets; and the City needs more sidewalks and crosswalks; also, there are no grocery stores within walking distance for these people who live on Park Avenue. She pointed out many of those people are in wheelchairs on broken sidewalks. She said she would like to see downtown revitalized and to help those who are in need and to bring tax revenue to the City and bring it back to what it used to be. Ms. Gina Boshears, 620 Central, #3B, said that next month she will be moving downtown and has invested in property downtown. She stated that she is in full support of the 2030 Comprehensive Plan, and everything in this Plan speaks to her needs for improvement in the City. Mr. Neal Thomas, 125 Oak Street, said he is most attracted to this plan because of the emphasis on bike lanes. He stated he would like to see a system of bike lanes down the major arteries in town that connect with bike routes and secondary routes hopefully all the way out to the college. Ms. Terri Moon, 423 Linwood, spoke in support of the Plan and encouraged the Board to adopt it. She said she believes it would make Hot Springs a more progressive city and supports people who are disabled and for them to have more access as well. She stated that she supports recycling improvement in that area and mentioned that the Farmers Market is a great resource. Mr. Wallace Marroy, 111 Thornbury Court, spoke against the Plan. He stated that he is a hiker and backpacker and spends a lot of time on trails in this area and throughout the United States. After reading this plan, he said he is not sure what it is addressing other than the fact that it is following the old MPO template. If there was something different than the standard MPO template, he stated he probably would feel a little more positive about it. However, he thinks the federal government is overreaching already. He noted the Plan stated that it is not enforceable, has no impact, and is not going to affect the old plan that is in place. He questioned why even consider it. He commented if this plan goes forwards, there will be people asking for money to promote it and to sustain it. He said if the City wants to make a plan for 2030 and says it will look at it again in 2025 to see if it has the money to think about these things, then he could support that. Board of Directors Meeting 7 April 19, 2011 at 7:00 P.M.  At this time, Mayor Carney declared the public hearing closed on the 2030 Comprehensive Plan Update. UNFINISHED BUSINESS 11 Proposed Resolution No. R-11-54 A resolution entitled, “A RESOLUTION APPOINTING DR. BLAKE ROBERTSON TO THE CIVIL SERVICE COMMISSION,” was taken from the agenda and read by title only. (Tabled April 5, 2011) A motion was made by Director Maruthur that the resolution be adopted as read. There being no second to the motion, the motion died for lack of a second. At this time, Mayor Carney read the following letter that she had written to Dr. Blake Robertson: “Mr. Robertson, I want to take this opportunity to extend to you a public apology for my part in allowing the personal attack on you and your character in a public televised City Board Meeting. Our Board met in a closed executive session the previous week for the purpose of discussing the applicants for various commissions and committees. That was the proper time in closed session to discuss any issue dealing with any applicant. The embarrassment and humiliation you experienced was unacceptable and completely out of order. My concern now as a result of this is that qualified citizens will hesitate or refuse to apply for volunteer positions with their being treated as you were in our previous meeting. I sincerely apologize for allowing the situation to get out of control. Our City Code of Ethics was definitely violated, which states: ‘Show respect and courtesy to all those who work in government and to the public which city government seeks to serve.’ I assure you as long as I am Mayor, Mr. Robertson and any other person who would ever apply for a commission, no one in the future will be subjected to this kind of disrespect. Please accept my apology.” At this time, a member of the audience requested that Dr. Robertson be allowed to defend himself. Mayor Carney asked that Dr. Robertson appear before the Board and said that he has a right for some defense because he has been humiliated in public and wants to give him time to respond. Board of Directors Meeting 8 April 19, 2011 at 7:00 P.M.  Dr. Blake Robertson, 209 Trojan Terrace, said he was disappointed by the personal attacks by Director Tom Daniel, Director Elaine Jones, and Director Pat McCabe at the April 5, 2011 Board Meeting. He stated he understood that his nomination to the Civil Service Commission had been approved by a majority vote 4-2 in a previous meeting on March 29; and that vote was supposed to be on the Consent Agenda; however, it was not. He said Director McCabe’s reason for wanting the appointees to be recognized individually was disingenuous and lame as his objection to his being a reserve Malvern police officer serving on the Civil Service Commission. He mentioned he received his police certification not to patrol the streets of Malvern but to afford protection to the students at Ouachita Technical College where he works. He advised this is a state agency and with a carrying permit, he could not carry a gun on an educational campus; therefore, he went through the training and was certified. He said that perhaps Director McCabe harbors a bias against him because he opposed him in the City Director’s race. He stressed that the charges against him by Director Daniel and Director Jones are a different and far more serious matter. He commented that Director Daniel and Director Jones are entitled to their opinions, but they are not entitled to misstate facts or to slander his personal integrity or his professional reputation. He stated that he strongly objected to the statement by Director Daniel when he said that he committed false witness against him in certain matters before the State Ethics Commission. Also, he objected to the statement by Director Jones in which she said that he told a lie in another state matter. He said that he is a private citizen; and when he observes actions by government officials that he thinks are unethical, then he has the right to report it to the State Ethics Commission; and it is his responsibility as a citizen. He mentioned at the bottom of each ethics complaint form, it says that he swears or affirms under penalty of perjury that the facts set forth in this complaint are true and correct to the best of his knowledge, information, and belief; and he holds these oaths very sacred. Mr. Stacey Roberts, 12 Stonegate Court, said that he does not know Dr. Robertson; but what he observed at the last Board Meeting was an embarrassment and is embarrassing for him to do business with the City. He stated that he is looking to go outside Hot Springs because he has been ridiculed here and embarrassed by the City Directors and has the tape to prove it. He said he believes the Board should open this up and take a vote. Mr. Brian White, 360 Lakeland Drive, stated that he is not representing any group but just an irritated citizen. He said he thought Director McCabe’s concerns were legitimate at the last Board Meeting, but criticized Director Jones and Director Daniel on their comments. Board of Directors Meeting 9 April 19, 2011 at 7:00 P.M.  There being no further comments, Mayor Carney called for the next order of business. 12 Proposed Resolution No. R-11-60 A resolution entitled, “A RESOLUTION TRANSFERRING TWO POLICE VEHICLES IN THE CITY OF FOUNTAIN LAKE,” was taken from the agenda and read by title only. A motion was made by Director McCabe, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Jack Fields, mayor of Fountain Lake, stated that he is requesting two of the City’s used police vehicles to help patrol the streets of Fountain Lake. He said that he had previously asked if the City would consider donating them, but he and Fleet Services Director Greg Speas worked out a price of $1,000 per car. Mayor Carney said they had discussed there had to be quite a bit of work to put the equipment back in them that was taken out, and Mr. Fields said that was correct, and the City stripped them down to put into its cars that are in service. Director Maruthur asked how much he is willing to pay for the two vehicles, and Mr. Fields replied that he is willing to pay $500 each or whatever the City sees fit. He would agree to $1,000 each. Director Maruthur questioned where the $2,000 would go, and City Manager Lance Hudnell advised that it goes to the Public Safety Police Fund. Director McCabe questioned how many more years will he be able to use these cars, and Mr. Fields commented that the town is not very large; and one of the cars had 131,000 miles on it and another around 125,000. He said they should be able to get four or five years out of them. 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, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 13 Proposed Resolution No. R-11-61 Board of Directors Meeting 10 April 19, 2011 at 7:00 P.M.  A resolution entitled, “A RESOLUTION APPOINTING RICHARD McGREW, CHAUNCEY TAYLOR, AND JOHN MORY TO THE PLANNING COMMISSION,” was taken from the agenda and read by title only. A motion was made by Director Maruthur, duly seconded by Director McCabe, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 14 Proposed Resolution No. R-11-62 A resolution entitled, “A RESOLUTION APPOINTING DAVID “LARRY” WILLIAMS TO THE ANIMAL SERVICES ADVISORY COMMITTEE, was taken from the agenda and read by title only. A motion was made by Director Keheley, duly seconded by Director Jones, that the resolution be adopted as read; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. Presentation of Condemnation Resolutions 15a Proposed Resolution No. R-11-63 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623,” was taken from the agenda and read by title only. (109 Darby Alley) A motion was made by Director Jones, duly seconded by Director McCabe, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones, Administrator for Neighborhood Services Division, explained the structure is open and has damage to the roof. He does have proper notice to the owner, and staff recommends condemnation. Board of Directors Meeting 11 April 19, 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, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 15b Proposed Resolution No. R-11-64 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623,” was taken from the agenda and read by title only. (110 Fairmont) A motion was made by Director Jones, duly seconded by Director Keheley, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones, Administrator for Neighborhood Services Division, explained the structure has been vacant for several years and has structural damage to the back and damage to the roof. The owner, Mr. Richard Jackson, has come in and purchased a permit and is doing some work on it. He advised that he has been dealing with this for about two or three years; and if the Board passes the resolution, Mr. Jackson has 30 days to get a substantial amount of work done. If he does not, then the City can proceed with demolition. At this time, it is staff’s recommendation to proceed with the condemnation. City Attorney Brian Albright explained this will put Neighborhood Services in a position to move forward to the next step should he fail to fulfill his permit. He stated at the close of the 30 days, Mr. Jones and his staff would go out for bids for demolition costs and typically another 30 days ensues after that, so it is not as though if the Board approves this tonight that the house will be demolished tomorrow and will be 30 to 60 days at least. Mr. Jones commented that his department will use good judgment on that; and if the owner is putting his work into it and it looks like it is a viable project, the City is not going to come in tear it down. Board of Directors Meeting 12 April 19, 2011 at 7:00 P.M.  Director Garcia asked if the owner was aware this was on the agenda tonight, and Mr. Jones advised that he was. He added they have met with him personally several times on site and in the office. City Attorney Brian Albright asked if there was anyone present to speak in opposition to the condemnation. There being no one to speak in opposition, Mayor Carney called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 15c Proposed Resolution No. R-11-65 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623,” was taken from the agenda and read by title only. (114 Gaines) A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones, Administrator for Neighborhood Services Division, explained the roof system is in bad shape, and foundation is close to the ground resulting in rot to the foundation system. Staff’s recommendation is to proceed with the condemnation, and he does have proper notice to the owner, who is present to speak to this condemnation. Mr. Eddie Marshall, Sr. said he has property at 114 Gaines and lives at 320 East Maurice. He stated he has an opportunity to get some funds, but will not have any financing until another week or two to start on it. He stated he was trying to keep the house for his children. Mr. Jones advised that he spoke to Mr. Marshall on several occasions, and the new roofing will not solve all the problems with the house since it has major foundation problems. He mentioned it has been vacant for a while and will need wiring, plumbing, and a lot of work. He stated if Mr. Marshall is able to get a lot of work done on it, he will work with him; but if not, the City would like to be in a position to do something with it. Board of Directors Meeting 13 April 19, 2011 at 7:00 P.M.  Director McCabe asked if there was current utility service to the home, and Mr. Jones reported they are not on. Director McCabe questioned if Entergy were asked to restore utilities, would they be able to do that or would the house have to be rewired. Mr. Jones advised that the service is out of date and would have to have a service update. He said he assumed it would have to be rewired. Director Maruthur questioned how long this has been going on and have there been notices before. Mr. Jones advised he has dealt with Mr. Marshall for over ten years on various things on this property. He commented the City has sent him vacant structure notices for the last three to five years. Mayor Carney asked if he tried to sell the property, and Mr. Marshall said that he had; but it does not sell. Director Garcia asked if he had a listing of all the items that are needed to be done to this property, and Mr. Marshall replied he had a person who looked at it and gave him a figure. If he can get the funds, he said he can start in May. Director Daniel pointed out he would have 30 days to get started, and Mr. Jones replied that he would have a minimal of 30 days. He said he would work with Mr. Marshall to save the structure if he can follow through with the process. Director Maruthur asked if the City proceeds with the condemnation as recommended by staff, would that allow Mr. Marshall to begin. Mr. Jones replied he has that option regardless of what the Board does tonight. He added he has the option at any time to pull a permit and start work. He explained if the Board passes the resolution, and he does not follow through, it puts the City in a position where it can tear it down. There being no further discussion, Mayor Carney called for a vote on the motion to adopt the resolution; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 15d Proposed Resolution No. R-11-66 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623,” was taken from the agenda and read by title only. (107 Liberty) Board of Directors Meeting 14 April 19, 2011 at 7:00 P.M.  A motion was made by Director McCabe, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones, Administrator for Neighborhood Services Division, advised there have been windows broken out over time; and the back of the house has structural problems. He said he has spoken to the owners, who are in California; and their intention is to repair it and save the structure. However, if they do not, he would like to be in a position to demolish it. City Attorney Brian Albright noted that Mr. Jones spoke to owners and asked if he perfected service on them as well. Mr. Jones advised that he did and has a signed green card; and he e-mailed with them almost everyday. Director Garcia asked if the owners were aware this was going to be on the agenda tonight, and Mr. Jones replied that they were. He explained when he says proper notice, the owners have been notified; and this is their opportunity to come and speak to the Board. City Attorney Brian Albright asked if there was anyone present to speak in opposition to the condemnation. There being no one to speak in opposition, Mayor Carney called for a vote on the motion to adopt the resolution; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 15e Proposed Resolution No. R-11-67 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623,” was taken from the agenda and read by title only. (726 Mt. Valley) A motion was made by Director Maruthur, duly seconded by Director Garcia, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones, Administrator for Neighborhood Services Division, advised this structure has been vacant for approximately seven years; and there is major structural damage. He said the owner at one time did go in and somewhat secure the building, Board of Directors Meeting 15 April 19, 2011 at 7:00 P.M. but transients take the boards off. Also, the roof has been leaking; the floor joists are rotten; and it needs a lot of work. Therefore, staff recommends proceeding with condemnation. He advised that proper notice has been received to his attorney. City Attorney Brian Albright asked if there was anyone present to speak in opposition to the condemnation. There being no one to speak in opposition, Mayor Carney called for a vote on the motion to adopt the resolution; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 15f Proposed Resolution No. R-11-68 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623,” was taken from the agenda and read by title only. (244 Palmetto) A motion was made by Director Maruthur, duly seconded by Director Daniel, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones, Administrator for Neighborhood Services Division, advised the back is collapsing; and the roof has been leaking. Also, he has received proper notice. He stated that he anticipated the City will demolish this because he does not believe anyone is going to repair it. City Attorney Brian Albright asked if there was anyone present to speak in opposition to the condemnation. There being no one to speak in opposition, Mayor Carney called for a vote on the motion to adopt the resolution; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 15g Proposed Resolution No. R-11-69 Board of Directors Meeting 16 April 19, 2011 at 7:00 P.M.  A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623,” was taken from the agenda and read by title only. (318 Pleasant Valley) A motion was made by Director Maruthur, duly seconded by Director Keheley, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones, Administrator for Neighborhood Services Division, advised this has been vacant for several years and has rotted away a little; and the lot runs between Pleasant Valley and Ridgeway. He stated the owner has passed away, and there are three children who have been given proper notice. He said they are in the process of attempting to sell this, and they may have a new buyer. However, he would still recommend that the City proceed with condemnation because if the deal falls through, the City can still do something with it. City Attorney Brian Albright asked if there was anyone present to speak in opposition to the condemnation. There being no one to speak in opposition, Mayor Carney called for a vote on the motion to adopt the resolution; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 15h Proposed Resolution No. R-11-70 A resolution entitled, “A RESOLUTION CONDEMNING CERTAIN REAL PROPERTY PURSUANT TO ORDINANCE NO. 4623,” was taken from the agenda and read by title only. (244 Wahoo) A motion was made by Director McCabe, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, Mr. Bart Jones, Administrator for Neighborhood Services Division, advised the gentleman who lived there passed away several years ago; and the City has proper notice to his sister and one other relative. He stated they both are out of state and understand that the City is going to tear it down. He added people are going in and out of the structure, and it needs to be demolished. Board of Directors Meeting 17 April 19, 2011 at 7:00 P.M.  City Attorney Brian Albright asked if there was anyone present to speak in opposition to the condemnation. There being no one to speak in opposition, Mayor Carney called for a vote on the motion to adopt the resolution; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Whereupon the resolution was declared adopted. 16 Proposed Resolution No. R-11-39 A resolution entitled, “A RESOLUTION APPROVING THE 2011 ANNUAL PAVING PROGRAM AND THE CITY’S PARTICIPATION IN ARKANSAS HIGHWAY AND TRANSPORTATION DEPARTMENT’S BRIDGE REPLACEMENT PROGRAM; AND FOR OTHER PURPOSES,” 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, stated this resolution considers approval of a list of streets for paving in the 2011 street paving and bridge replacement program. He noted this proposed paving program covers three miles of street work, which includes two miles of paving and one mile of milling, which is removing the old pavements on nine city streets. He pointed out a list of alternate streets is also attached in the event a street on the paving program is unavailable to be paved due to unforeseen circumstances. He added that streets on the alternate list will only be used when needed to complete the paving program. As proposed, the total cost of the street paving program will not exceed $400,000. He explained the proposed plan also includes two bridges from a list of structurally deficient bridges as determined by the Arkansas State Highway and Transportation Department. These bridges are eligible for funding at an 80-20 match through the Arkansas State Highway and Transportation Department’s bridge program. He stated it is proposed the remaining $100,000 in the 2011 paving budget be dedicated to bridge replacement through the AHTD program. The City’s 20 percent share of these two bridges is estimated at $114,000; however, only five percent of the total project cost, estimated at around $28,500, is required in 2011 for the Arkansas State Highway and Transportation Department to begin engineering and cost estimate analysis of the two bridges. The remaining budget is proposed to be reserved for additional engineering costs, if required; utility relocations, if needed; and/or right-of-way acquisitions and eventually the construction of the bridges themselves. On April 12, city staff made a presentation regarding the method used for ranking and prioritizing city streets for Board of Directors Meeting 18 April 19, 2011 at 7:00 P.M. paving. As requested at this presentation, staff also included in the Board packet a listing of the streets proposed in this year’s paving program, as well as the top 35 streets that are not included in the proposal. This listing also provides information regarding any utility work that may be anticipated on these streets which staff recommends performing prior to paving when possible. He said the total amount for paving and bridge replacement in the 2011 Street Department budget is $500,000; and staff is proposing not to exceed that amount. The alternatives are to defer paving these streets and bridges, bridge replacement, and repair as necessary or choose possibly different streets from the attached listings. Director Garcia made a motion, duly seconded by Director Maruthur, to amend the resolution to reallocate $70,000 back into the street paving from the bridge replacement allocation for 2011 as the 2011 cost for bridge replacement is estimated at $28,500. She stated the balance of $85,500 for bridge construction is to be included in the 2012 budget along with any design work for the next bridge, if any additional bridge replacement is included in the 2012 budget. Director Garcia said since $500,000 has been budgeted for street paving and bridge replacement, the design work for the bridges can be performed in 2011. However, the construction portion will not occur until 2012. She stated since the City is so far behind on its street paving program already and since it cannot use this portion of the funds for bridges in 2011, the money can be put to use now for the streets. She said it appears the bridge replacement projects will be performed in a cycle of design in one year and construction the following year. Therefore, she respectfully requested consideration of this reallocation of spending. Upon discussion of the amendment, Director McCabe said from a budgetary standpoint each year, sometime in January, the City does budget transfers from one budget year to the next on projects that were not finished. He stated the funds are allocated in one year, and the project is not completed. Therefore, it is pushed into the next year. He asked if this would cause the City any problems for 2012 in moving forward on a similar style bridge repair program. Finance Director Dorethea Yates advised the only problem it would cause is if the Highway Department asked if the City had allocated this money to the project and if the City has this much money allocated to it. She said if the City changed that, it would not have that amount allocated in this year’s budget. Director McCabe asked if she meant the Arkansas State Highway and Transportation Department is expecting the City to allocate it in the current year in which the City has agreed to do the project. Ms. Yates replied that she has not seen the specific paperwork to know if they are asking if that money is allocated or not. Mr. Mallett stated he did not believe they require that, and they have not given any indication they would require the City to put that away and reserve it for that specific cause. However, they did say if the City got to the point where the design was finished, they went to bidding, and the City did not have the funding available at that time, then the City would forfeit all costs up to then. He added they Board of Directors Meeting 19 April 19, 2011 at 7:00 P.M. would bill the City for 100 percent of the cost up to that point; therefore, it would not be an 80-20 match. However, it would be the full amount of what was done at that time. Director McCabe asked if it would be the full amount of their efforts, and Mr. Mallett advised that it would. He added it is $28,500. Director McCabe said that is 20 percent; therefore it would be $140,000. Director Garcia commented that is 5 percent. Mr. Mallett noted the $28,500 gets them started on design, and they would bill the City for the design. Director McCabe asked if it covered 100 percent of the design cost, and Mr. Mallett replied that is to show the City’s commitment to the project. He added they are not going to fund the City 80 percent on the design so that commits the City to the project. He said providing the Board approves the remainder of the money at the time the bridges are available, then he believes it is a moot point. However, if they do not, then that is forfeited. Director McCabe said that he is still unclear and asked if they get the work done, but is not saying they will, the City does not have the money in 2011 to commence work. Mr. Mallett replied the City would, as approved, and would have $100,000. Director McCabe said in regard to the motion, if they were able to come back in October and say here is the design and get started, and asks the City if it has the funds to get started and the City is going to say “no.” Mr. Mallett advised the City would not, but they have indicated to the City that it would not be in 2011. However, the City was wanting to reserve that money so that in 2012, it was sitting there available. He stated if the Board is comfortable and confident that it would come back in 2012 and re-budget the money to cover what was taken out this year, then he did not think it would be an issue. Director McCabe said he believes part of the problem is the City is committing funds in 2012, and it does not know what the situation in the lay of the land is going to be in 2012. Mr. Mallett said if the City eliminated the paving program altogether because of budgetary constraints, then it would likely forfeit that money. Director McCabe commented that is a fiscally dangerous procedure to follow. Director Garcia said as a fiscally conservative person and a CPA, she would never recommend anything that would be reckless and has full confidence that the City would move forward. Mayor Carney questioned if the budget for roads is $2.5 million, and City Manager Lance Hudnell explained that is for the Street Fund. Mayor Carney asked if that is per year, and Mr. Mallett advised that in 2010, that was the annual budget for all operations, paving, etc. At this time, Director Maruthur called for the question. Mayor Carney then called for a vote on the amendment; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Garcia, Daniel, and Carney, total 6. Voting “no:” Director McCabe; motion carried. Board of Directors Meeting 20 April 19, 2011 at 7:00 P.M.  City Attorney Brian Albright advised that the amendment passed, and the Board needs to continue discussion on the resolution as amended, transferring $70,000 from the bridge to paving. City Manager Lance Hudnell explained there is now $470,000 allocated for paving. Mayor Carney mentioned there is now $2.5 million in the Street Fund, and there is now $570,000 for paving. She questioned how the Board came to that conclusion when almost all of the city streets are in need of repair. Mr. Mallett advised when staff proposes the budget, they discussed different amounts, and $500,000 was the minimum the Board wanted to do in 2011, which was included in the budget. Hopefully, that can be added to at a later date, but that was the amount included so that is the amount the City has to work with. City Manager Lance Hudnell explained that is for personnel, supplies, capital equipment, fuel, hot mix asphalt for patching, which is not included in the $500,000. He added that is the total Street Fund that covers all of those items. Mr. Mark Toth, Montclair Lane in the Whittington Valley, said he is president of the neighborhood association; and they are requesting to add to the paving program the short block of Woodfin between Whittington Avenue and Sabie Street, which is approximately 50 to 60 feet. He noted they are not asking the City to take any streets off or put it ahead of any others. He commented the repaving will improve public safety for drivers and pedestrians. Also, the road is in poor condition and is so narrow that two cars cannot pass. He added it is used by many people and is used by both cars and pedestrians. He stated while it may be safe for vehicles because of having four tires on the road, it is not very safe for people walking. He commented people have to walk in the street because there is no sidewalk, and they have to watch for oncoming traffic. Also, they have to navigate a blind corner because there is a sharp corner, and then they have to watch where they put their feet. He pointed out that children from Habitat’s Wheatley Village walk over this deteriorating road twice daily going to and from the bus stop, and it is the primary access road for residents of Habitat Village, which has 15 homes. He added the alternative route is ½ mile out of their way. He reported that the cost is minimal, and the City is estimating $1,600. He noted this stretch of road has not been repaved in 26 years. He urged the Board to add Woodfin to the paving program. He reported that he and Mr. Mallett had a conversation, and it was noted in the plans that there was an issue on a water main. However, that is no longer a concern. Mr. Mallett explained about 3/4 of the way down the road is Sabie Street, and it shows water and sewer replacement and expected to tie in at Woodfin. He advised after revisiting that, the water distribution manager went out there and Board of Directors Meeting 21 April 19, 2011 at 7:00 P.M. said that he can tie that into the new main that goes up to Wheatley Village that would keep the City from having to go all the way down to tie into Woodfin, which would disrupt any new paving. He said the concern of water conflict from Woodfin but not Sabie can be removed. He advised the City had originally intended to pave all of Sabie and that little stretch of Woodfin together in next year’s paving, and now there is $70,000 for additional paving and seems reasonable that it would be added to this year’s program. Director Maruthur said since this is going to cost $1,600 and is not going to affect any of the other paving that the City has scheduled, she would recommend that the City pave this. City Manager Lance Hudnell suggested making a motion to add it to the primary list. Mr. Mallett pointed out that still leaves $68,000 worth of primary paving that is not identified so he did not know if the Board wants to do that based on direction from the Board or just move whatever alternates up to the primary list as staff sees fit. Mayor Carney questioned if there is a utility problem on Broadway, and Mr. Mallett advised there is and also a utility problem with Patterson and others. He added they are top priority for the utilities; and if the Board wanted to reserve that money and not identify any streets and if some of those came available at that time, the Board could look at them then. Regarding the utilities, Mayor Carney questioned if they gave any estimate of when they will do whatever is needed on Patterson or Broadway, and Mr. Mallett replied that they did not. He added they just said they would put it on the top of their list and request that they get those done as soon as they can in 2011. Director McCabe pointed out on the alternate list, there is $407,000 worth of alternate streets. He suggested that the Board approve what it has today and ask Mr. Mallett to come back next meeting with how he ranked the balance. He noted the alternates total $407,000; and the Board is talking about $71,000, which includes $1,600 for Woodfin. Mayor Carney pointed out those alternates were 20 down from the worst roads. Director Maruthur made a motion, duly seconded by Director Jones, to add Woodfin Street to the paving program. She noted this is a public safety issue that has been brought to the Board’s attention; and for $1,600, the City is going to solve a public safety issue. Upon discussion of the motion, Director Garcia said she agreed that it is a safety hazard and she goes by there everyday. She added there is a large number of children who walk that, and it is needed for their safety. Board of Directors Meeting 22 April 19, 2011 at 7:00 P.M.  Mayor Carney then called for a vote on the motion to amend the resolution by adding Woodfin Street to the paving list; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. City Manager Lance Hudnell said the Board needs to vote on the primary motion which includes $470,000 and streets on the primary list plus Woodfin at Sabie. Mayor Carney then recognized Mr. David Tyler, 750 Whittington, who said there is also the issue of motorized wheelchairs. He mentioned a couple who lives in Wheatley Village goes to church on Saturday and Sunday, and they also fill their water jugs across the street. He stated he believes if that were improved, they would venture out more often. Mayor Carney questioned if the street would be widened with the paving since it is so narrow, and Mr. Mallett advised it is shown to be 24 foot width so that is two, 12-foot lanes. Regardless of what it is now, he stated that is what it will be paved to. Director Keheley made a motion, duly seconded by Director Jones, to direct the Public Works Department to go back to the list with the additional funds that are left after this street is taken care of and come back with a revised list for 2011 and the priorities. Upon discussion, Mr. Mallett said he assumes the Board is going to approve the list as it is now and staff will complete that. Then as they near the time they get completed, come back at that time because Patterson and some of the other streets may be ready to approve at that time. He asked if she is talking about doing that at the next Board Meeting. Director Keheley replied she would like the list so the Board will know what is on the list now because if they wait until the end of the year, the weather will be bad. She said she would like to see the list now so the City can look forward. Mr. Mallett pointed out that streets such as Patterson and Broadway would not be on that list because staff does not know for sure if they would be ready by summer. He is recommending delaying a month or so, and those are two streets he has heard the most comments from the Board and the public. Mayor Carney then called for a vote on the motion to amend by letting Mr. Mallett investigate and bring back a revised list on the extra money; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Mayor Carney reported that Mr. Freet, 409 Shady Hills, would like to address the Board. She said that she has pictures of the street, and City Manager Lance Hudnell has checked this out and there is no pavement on this street. Mr. Freet stated someone from the City had said Board of Directors Meeting 23 April 19, 2011 at 7:00 P.M. they were going to pave Shady Hills, but put reclaimed asphalt about ½" thick just to the driveway. Mayor Carney noted this is a severe situation and asked if the City could investigate that and put it on the list. City Manager Lance Hudnell replied that it needs to have an engineering study and bring it back for Board’s acceptance since it has not been accepted for city maintenance. He noted it is in District 6 between Davidson Drive and Shady Grove. Director Daniel asked if he is sure it has never been accepted, and City Manager Lance Hudnell explained on the City’s list, it showed up as being accepted. However, after investigation by staff, it was determined that the accepting ordinance authority was an annexation ordinance, which is not the proper authority. He explained the procedure is that once there is an annexation, which in this case happened in 2005, the Engineering Department does a study and comes back to the Board with the results of that study. However, staff could not find any evidence of that happening and needs to bring an engineering report indicating what the cost would be to bring the street up to standard, and then the Board determines whether it wants to accept it for maintenance or not, then a separate action to put it on the paving program. Mr. Freet commented that he was told by two different people from the City that this was a street. City Manager Lance Hudnell replied that in a subsequent investigation, staff determined that it was erroneously put on the list, but the City is on top of it. City Manager Lance Hudnell said at this time, the Board needs to accept the approval or denial of the 2011 paving program which has been amended and includes all of the streets on the primary list, plus Woodfin at Sabie, with direction to staff to come back in a month or so after staff has determined the status of utilities on a few of the other streets with a revised list of the remaining approximately $68,000. He advised that is the motion the Board is now voting on. Mayor Carney then called for a vote on the motion as above-stated; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. 17 Proposed Ordinance No. O-11-8 An ordinance entitled, “AN ORDINANCE ESTABLISHING ALCOHOLIC BEVERAGE PERMIT FEES, TAXES, PENALTIES, AND PROCEDURES; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion Board of Directors Meeting 24 April 19, 2011 at 7:00 P.M. unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be adopted as read?” and upon motion of Director Maruthur, duly seconded by Director Daniel, that the ordinance be adopted as read. Upon discussion, City Manager Lance Hudnell explained there are four reasons for this ordinance: (1) this ordinance was to catch up with some amendments to the alcohol permitting process that occurred by the State in 2009, so it includes those technical corrections that the City needed to make in its ordinance; (2) it includes two new classifications that were also created in 2009 that was not in the City’s ordinance, and there are a couple of businesses in town that meet that criteria; (3) it includes a penalty clause that the City has not heretofore had as recommended by Director Garcia and found it to be useful to do before the new permits went out; and (4) should the Board desire to follow the City’s past practices of matching a ½ of what the state permit is, now would be the time to do that before the billings go out for the 2011/2012 permits. However, should the Board not wish to do increasing a ½ of what the state does, then staff respectfully requests that the Board table this, assuming that the first three items are acceptable, and allow staff to make those changes should the Board desire to proceed in that direction. Director Maruthur made a motion, duly seconded by Director Garcia, to separate the penalty part Section 1(f) and Section 2(c), from the other part of this ordinance and voted on separately. Upon discussion of the motion, Director Garcia recommended voting separately on those sections mentioned by Director Maruthur. She noted the recovery from the recession is still very fragile and questioned if this is the best time to be increasing taxes on this item when there has not been a complete review of the City’s revenues and expenses. She pointed out as she understood from the 2030 Plan, the City should be doing whatever it can to provide incentives for businesses in the downtown area, and she is concerned that raising taxes would send the wrong message at this time. She mentioned that she supports the addition of the delinquent fee for late payment but as a measure of fairness and not as a revenue generator. She respectfully requested that the Board separate these two items and vote on the delinquent fees at this time as the amendment stated. City Attorney Brian Albright said for clarification, he would take that as an amendment to approve it as Director Maruthur has stated it and not any other portion of the proposed ordinance. Director Maruthur said that was correct. Board of Directors Meeting 25 April 19, 2011 at 7:00 P.M.  Director Keheley commented the Board considered this last year at budget time and had an option to increase the revenue. At that time, the Board decided not to pursue it; but it was brought up a week ago. She said she feels it has been resurrected without any real thought and time to study. She added with the recession, the economy, and the high gas prices, it is difficult times for the residents and hotels. She stated she will support the back revenue that is due and that is past due and the amendment. At this time, Director Daniel called for the question. Mayor Carney then called for a vote on the amendment; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. City Attorney Brian Albright explained there is now an amended proposed ordinance that will only deal with the penalty provisions on late payments of the supplemental tax on mixed drinks. A motion was made by Director McCabe, duly seconded by Director Maruthur, to amend to recognize the new classifications that were provided for in the original ordinance Section 4 (Small Restaurant Permit - Spirituous Only) so the smaller entities like the Winery and Purple Cow can be appropriately recognized. Upon discussion, City Attorney Brian Albright advised that Section 4 is Small Restaurant Permits (Spirituous Only). He explained this was passed by the State in 2009 and deals with restaurants that only sell up to 560 liters of hard liquor. He stated it actually can be of benefit to the restaurants because if they want to sell liquor now, they have to fall under the full mixed drink permit, which is much higher. He noted the other areas that were added as classifications are under Section 5 ( Combination Restaurant Retail Beer and Wine). Up to this point, he stated there has only been a permit for light wine, and light wine is classified as less than 5 percent per volume. He stated wine is classified as 5 percent up to 21 percent. The third area that was added is Section 8 (Small Farm Winery - Retail) and deals with locations that serve small farm wines. Director Jones asked if they will have to pay more or will it stay at the $350, and City Attorney Brian Albright advised that currently there is no permit classification for those types of businesses within the city. If the Board were to approve those three classifications, he explained it would allow the City to collect the same permit fee that the State of Arkansas is already authorized to collect and would not raise fees on any of the established fees. He commented it would add three Board of Directors Meeting 26 April 19, 2011 at 7:00 P.M. new categories that some businesses might fall in and might catch some businesses that the City could already assess the fee for if they were still in operation, or it might allow some businesses to covert to this particular type. Director Maruthur asked if this would be helping the “mom and pop” establishments, and City Attorney Brian Albright advised that potentially it would, particularly under Section 4 if they had a beer and wine permit and wanted to sell a little bit of mixed drinks. He noted if their quantity did not exceed 560 liters per year, then they could qualify for that particular permit which is $300 instead of the restaurant mixed drink, which is currently at a $750 level. Director Garcia asked if Director McCabe’s motion included the rates that are in the ordinance that was presented. Director McCabe explained that all his motion included was increasing the categories. Director Garcia questioned if the Board is just establishing those categories that are in Sections 4, 5 and 8. City Manager Lance Hudnell explained that the rate is not included because there is not a rate for those categories, and the City does not have the categories. Director McCabe said since the City does not have a current fee, the $350 is less than the current one under the category that exists today. City Attorney Brian Albright explained that Section 4 does not exist at all today so the $300 fee for small restaurants (spirituous only) is a new category that currently is not assessed a rate. Director McCabe commented that the other option is a higher option for the current permit holder. City Attorney Brian Albright said that is correct and if they want to serve mixed drinks and this avenue were not available to them, then they would have to pay the mixed drink rate under the current fee for restaurants have a seating capacity of 100 or more ($1,000). Director McCabe pointed out they would save $650 with this amendment with this new category. Director Garcia pointed out her recommendation for Section 4 was $200 instead of $300; Section 5c $250 instead of $350; and Section 8b was $200. City Attorney Brian Albright pointed out that there is an “a” and “b” under Section 8 and asked if she wanted that $100 and $200, and Director Garcia said that she did. She stated that she has asked Director McCabe what amount his motion included, and he said his motion did not include an amount. City Attorney Brian Albright explained that was because it currently does not exist. At this time, a motion was made by Director McCabe, duly seconded by Director Keheley, to table the ordinance until the next meeting. He said from the conversation, it sounds the consensus is that the Board does not want to increase the rates; wants to create a couple of new categories; and have the penalty clause. Board of Directors Meeting 27 April 19, 2011 at 7:00 P.M.  City Attorney Brian Albright asked if Director McCabe was rescinding his previous motion to amend because he had previously made a motion to amend to add the categories, and Director McCabe said that he is rescinding his previous motion to add the categories. At this time, Mayor Carney recognized Mr. Ray Owen, 110 Leigh Circle, law office 209 Hobson, representing Patty Roddenberry, owner of Rod’s Pizza Cellar. He stated there are a number of things that need to be done, and he is not sure if he likes the portion that is going to apply to his client or not. However, he has not had a chance to look at it. At this time, Director Daniel called for the question. Mayor Carney then called for a vote on the motion to table the ordinance until the next meeting; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 7; motion unanimously carried. Director Keheley asked if citizens who have stayed could be given an opportunity to be heard. Mayor Carney then recognized Mr. Ray Owen. Mr. Ray Owen said he wanted to have time to look at this ordinance and be able to study it and see what the impact is going to be on his client. Mr. Bob Martorano, general manager of the Arlington Hotel, 239 Central, said they support the permit penalties; and he is also treasurer of the Garland County Hotel Association. He added that they also support the classifications, but the taxes and fees are a little exorbitant in this economy. He pointed out that mixed drinks are taxed at 32 percent at the present time. Mr. John Giarolamo gave a breakdown for a restauranteur for a $6 drink pointing out at the end of the day would make $.38. He stated just because the State decided to raise its tax on mixed drinks, there is no reason for the City to do it. Ms. Gina Parks, owner of the Big Chill at 910 Higdon Ferry, and resides at 1257 Twin Points Road, stated that Mr. Giarolamo was correct in his breakdown. She said if the City continually picks away at her profits, she will have to close. She stated she employs seven people and also employs musicians. She mentioned that her business paid $11,451 on the 10 percent mixed drink tax Board of Directors Meeting 28 April 19, 2011 at 7:00 P.M. last year; and in the past six years, she has collected for the City $62,955. She requested that the Board not increase the taxes. Mr. Brian Smith, 171 Santa Fe, vice chairman of the Governmental Affairs with the Hot Springs Chamber, stated in their opinion, there should be a penalty for those who are paying late. He said they are requesting that the City not raise the existing fees that it has at the present time. Mr. George Pritchett, 210 Carl Drive, urged the Board not to increase the tax. He mentioned that the Advertising and Promotion collects three percent in restaurants and bars to promote Hot Springs. He noted if there is an increase, this will have a negative impact on the restaurants and bars. He encouraged the Board to promote tourism. Director Maruthur said that she received a phone call from Carla Nardi, whose husband is Tony Nardi; and she would like to go back into the restaurant business. At the present time, she teaches culinary arts at the National Park Community College. Ms. Nardi told her she did some research, and that taxes here are the highest in the entire country. She said she would like to open a restaurant, but she refuses to because she could not afford it. There being no further discussion, Mayor Carney called for the next order of business. OTHER BUSINESS 18 Board of Directors Items for Discussion Director Garcia thanked Mr. Denny McPhate, Public Works Operations Director, for addressing a citizen’s concern that came about on Hermlee, which he promptly addressed. Director Jones expressed appreciation to Mr. Kevin Glover, who helped a resident with her garbage pickup and was very pleasant to her and very impressed with the way he treated her. 19 City Manager’s Report Board of Directors Meeting 29 April 19, 2011 at 7:00 P.M.  City Manager Lance Hudnell gave the following report: 1. On Thursday, April 28, in Horner Hall, there is a One Hearts Songs of Love and Life for people of Japan fund-raiser. 2. Spring Fling will be held on Saturday and Sunday, April 30 and May 1. 3. Next Tuesday, April 26, there will be an agenda meeting from 3 p.m. to 4 p.m. in the Board Chambers and then adjourn to the Fire Station for a work session starting at approximately 4:30 p.m. This will be open to the public. 20 ADJOURNMENT There being no further business to come before the Board, a motion was made by Director Jones, duly seconded by Director Maruthur, that the meeting be adjourned; and upon voice vote, the motion unanimously carried. The meeting adjourned at 9:35 p.m., to meet again on Tuesday, May 3, 2011, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Spicer, City Clerk Ruth Carney, Mayor Board of Directors Meeting 30 April 19, 2011 at 7:00 P.M.