Board of Directors

MINUTES BOARD OF DIRECTORS MEETING MAY 17, 2011, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Tuesday, May 17, 2011, at 7:00 p.m., Board Chambers, City Hall, with Mayor Ruth Carney presiding. The invocation was given by Ms. Drew Terry, and Pledge of Allegiance to the Flag was led by Mayor Carney. Mayor Carney called the meeting to order at 7:00 p.m. At this time, Director Maruthur said that she spoke to a friend today, who asked that she say the Pledge of Allegiance in Latin. At this time, Director Maruthur said the Pledge of Allegiance in Latin. 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 City Manager Lance Hudnell pointed out that a replacement Public Safety Report has been distributed, which includes Item No. 58. 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 May 3, 2011 Board Meeting  A motion was made by Director Maruthur, duly seconded by Director Jones, that the minutes of the May 3, 2011 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests No guests were present for recognition. 5 Board of Directors Announcements Director Garcia announced that on May 26, at the Garland County Library, 2 p.m. to 5 p.m., there will be a workshop from the Arkansas Women’s Business Center with toolkit series on “Let’s Do Business, Funding, Marketing and Online Selling.” For more information, call 318-9046. On June 2, at 4:30 p.m., Forest Lakes Clubhouse, there will be a community meeting for District 5 with Police Chief David Flory. CONSENT AGENDA The Consent Agenda consisted of the following: 6 Public Safety Committee Report (May 5, 2011). 7 Proposed Resolution No. R-11-77 Approving Certain Bid Awards (a) Tree Service Contract Extension - Public Works [annual supply contract awarded to West Tree Service - not to exceed $10,000]; (b) Carbon - Utility Administration [annual supply contract awarded to Southwest Chemical in an amount not to exceed $15,000]; and (c) Hydrated Lime - Utility Administration [annual supply contract awarded to Arkansas Lime in an amount not to exceed $90,000]. 8 Proposed Resolution No. R–11-78 Awarding a Contract for Engineering Services for Terminal Ramp Expansion and Rehabilitation, Phase II, to Delta Airport Consultants, Inc. 9 Proposed Resolution No. R-11-79 Filing Grant Applications with the Federal Aviation Administration (FAA) and the State Aeronautics Department for the Expansion and Rehabilitation of the Terminal Apron Project at the Airport, Phase II; and Accepting Grant Offers. 10 Proposed Resolution No. R-11-80 Authorizing the Filing of a Grant Application with the Arkansas State Highway and Transportation Department Pursuant to the Arkansas Safe Routes to School Program. 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 11 Consider Public Hearing on the Higdon Ferry Road Widening Project, Phase III. At this time, Mayor Carney declared the public hearing open on the Higdon Ferry Road Widening Project, Phase III. City Manager Lance Hudnell gave a Powerpoint presentation on the project. He stated that the Higdon Ferry Road Project began by Resolution No. 4207 in June 1999, and includes the portion of Higdon Ferry Road from Highway 7 (Central Avenue) on the south end all the way back to its terminus with Highway 7 (Central Avenue) on the north end with a reconfiguration to line up with Golf Links Road. The City received in 2005 an earmark through SAFE-TEA LU (federal appropriations that required 80-20 percent match by the City and County because at that time, part of the project was in the County). The right-of-way of that project has gone on through 2005, 2006, 2007, 2008, and 2009. He noted that the City is now to Phase III, which covers Phases I and II, with Phase II terminating at Printers Place. The right-of-way and utility cost, which is the City’s portion of the project, is estimated to be around $5.7 million. Funding available between the City funds and the remaining SAFE-TEA LU earmark is $1.9 million, meaning that additional funds would be needed of $3.8 million should the Board choose to do all of the project (property acquisition, right-of-way acquisition, and utility relocation). Construction funds by the Highway Department are in place as Board of Directors Meeting 3 May 17, 2011 at 7:00 P.M. well as the current STIP (State Transportation Improvement Program). The City right-of-way funding decision needs to be made by the end of this month. The right-of-way acquisition would not occur until the fall of 2012 and into the spring of 2013. Utility work would need to take place in the spring of 2013 and into the fall of 2013 with construction bid award of October 2013 and road construction to begin in 2014. There has been discussion about two primary funding options (1) full funding, which is $3.8 million and would require some type of financing in that the City does not have $3.8 million in surplus funds to devote to the project; and (2) another option is to fund to Crawford Drive, which is basically the end of the widening project before it turns into new construction and that would require an additional $340,000 to $350,000 in matching funds to completely match out the SAFE-TEA-LU funds that are currently in place from the 2005 through 2009 earmark. One method of doing that would be approximately $170,000 in 2011 setting that aside from the Fund Balance and another $170,000 in 2012. The Board discussed this at its recent work session, and it was the desire of the Board to hear additional public input with regard to how this matched up against other projects as to what is the most important projects facing the City. Staff is preparing some additional financial projections and will have those by the end of the month. He explained that the purpose of this public hearing is to receive input from the public with regard to how citizens feel about the importance of this project in concert with other projects facing the City. He noted that the Board will not necessarily be making a decision, and there is not an action item on the agenda tonight. He added the Board will have to determine at a special meeting before the end of the month if it cannot get the Highway Department to allow the City to go to June 7 in order to make a final decision. Mr. David Byerly, 413 Pauline, representing the Greater Hot Springs Chamber of Commerce, reported he submitted a written position to the City last week. He stated that the Higdon Ferry Road project has been a team effort by the City, County, Chamber of Commerce, and community leaders to improve that road. He stressed it has been very critical for this project to go forward, and their position is for the Board to find a way to finish Higdon Ferry Road, which is an important accomplishment for this project. He pointed out the wrong thing to do would be to leave that major highway for the community 200 yards short. Mayor Carney asked if they would be willing to do fund-raisers for this project, and Mr. Byerly replied that in their position paper, they said they would be happy to do whatever was appropriate to try to help get to this goal. He added they have been very active in trying to help raise funds at the federal and state level for this project all along. Board of Directors Meeting 4 May 17, 2011 at 7:00 P.M.  Director Garcia asked if the membership of the Chamber of Commerce was surveyed for taking this position, and Mr. Byerly advised there was not an official survey taken of the membership; but he could say overwhelmingly the position of the members they are talking to on a daily basis is under the assumption that road can be finished. Director Garcia questioned with the chart of the unfunded major capital projects, if Higdon Ferry, Phase III completion, ranked as the most important. Mr. Byerly replied that Higdon Ferry continues to be one of the top ten priorities for the Chamber of Commerce in transportation needs and has been long before he came in 2005. Director Garcia asked if he was able to quantify the benefits. Mr. Byerly stated he believes if the commercial corridor is opened, the benefits to the community really run the gamut of enterprise. He pointed out it was mentioned in their letter that the biggest limitation they may have in the community is the ability to move goods and people through the community. He commented on the traffic congestion in 2005 and the demands at that time from Higdon Ferry to create a relief corridor and another commercial corridor that works down through that high-growth area. He stated it was always known that the last 200 yards were the most expensive, and they have already seen business construction along Higdon Ferry and have major employers along Higdon Ferry; and to stop short of that tempers any economic potential that Higdon Ferry could have. Director Garcia asked if they have any specific recommendation for funding, and Mr. Byerly replied he has heard the discussion of bonding issues using existing franchise tax revenue over a 20-year period, which seems to be fairly palatable to all and not very painful from the standpoint of an annual payment. However, that is the charge of the Board. He stressed he believes the travesty would be to stop and not finish that project. Mr. Bob Driggers, #3 Stonegate, pointed out that some in the public just found out today that the deadline is the end of this month to get this done. He said he hoped some the Board will point out where the public can find this documentation, including the letter from the State Highway Commission, dated May 14, 1999, telling the City it needed to get some money together and get the right-of-way together. He advised that he received an e-mail before coming to the meeting tonight and read the letter which was by e-mail. He said the City is presenting two options (1) borrow against the franchise fee and repay over a 10 to 20-year period, or (2) do nothing and lose millions in federal funding. He noted that Higdon Ferry is a worthwhile project and hopefully it can continue. He stated that additionally, the City has tens of millions in other debts (road paving, stormwater class action suit, Math & Science School demolition, and pension funds). He questioned where the money went that the City should have planned for ahead of time and had for this. He noted the population has dropped, but the City now has over 100 more employees than 10 years ago when the population was higher. He said some of the money went to Hanamaki, Japan, and some went to GCEDC. He stated that $3 million went to a water plant “fiasco,” which should not have happened. He pointed Board of Directors Meeting 5 May 17, 2011 at 7:00 P.M. out if the City gets a bond, it will want new taxes to make the payments; and the voters will not support it. He stated if the Board passes a millage and puts it on property taxes, there will be referendums to call for an election. He mentioned the Board asked the people for a sales tax and eliminated the property tax millage and asked that the Board honor that. He stressed that either way, the voters will vote against the tax proposals until the current staff and Board Members who have been responsible for the mismanagement of these funds over the last years have resigned or been voted out. He pointed out the staff and officials who placed the City in this position must resign or the form of government change so that the public will have confidence in a group of leaders who will look out for the public’s best interest. Mr. George Pritchett, 210 Carl Drive, said he agreed with Mr. Byerly and Mr. Driggers that the City needs this. He pointed out that budget sessions were held last November, but there was no discussion on this item. He stated there has not been a serious cost reduction program in the City in the last three years. In November 2009, he said he talked to the Board regarding cutting employees by ten percent and at that time, there were 620 plus employees; in 2010, there were 620 plus employees; and in 2011, there are still 620 plus employees. He stressed that he did not want to see any tax or fee increases. He pointed out the City plans to demolish the Math and Science School in 2017. From 2015, there is almost $6 million in most years. He questioned where the funds are going to come from. He noted there is also discussion regarding fire stations. He mentioned in another six months, the City is wanting to give employees bonuses and raises but want to get it from the public. He stated the citizens can either follow the recommendation of the existing city management, which is the group that caused the problems through mismanagement; or the public must make it clear that any increases in taxes and fees, bond issues, etc. will result in recall petitions, initiatives, or referendums to recall Directors and to change the form of government. He stated that no amount of sales tax revenue increase will ever provide enough money to solve the problems unless severe cuts are made in General Fund accounts. At this time, Director Maruthur read the following prepared statement in regard to Phase III: “I have tried to be a voice on the Board that demonstrates fiscal responsibility. I feel it is a privilege to serve people. The Higdon Ferry, Phase III, mess that city management has allowed to become a mess even exceeds the water treatment mess. I hope Lance has a silver bullet for providing funding that created this mess, but I am doubtful he has a program that doesn’t require a tax or fee increases. I don’t think the public is going to support any increases. They are more likely to demand that heads roll for getting us into this position. Asking the people to pay additional taxes and fees at this time is the worst possible thing that our management and our City Board can do. These are very difficult Board of Directors Meeting 6 May 17, 2011 at 7:00 P.M. economic times. The fact that we are in this position falls in the lap of management. Losing the federal funding will be disastrous to the City and is probably a greater mess than the wasted lower Lake Hamilton water intake site. That was about $2.8 million. The site was turned down repeatedly and yet we proceeded while our management somehow wiggled their way out of this one as they did our other mess. No business would still be employing people that got us into this mess. How long is the City Board going to look the other way? Looking back at the performance and budgeting process -- by the way, I voted against the budget for specific reasons; and I presented a budget that would have worked in light of what keeps happening – all these variables that we can see coming but nobody planned for. Looking back at the performance in budgeting in recent years and priorities followed by city management and past City Boards, in my personal opinion, is that system is broken and if the actions of these bodies are driven by something other than what is best for the citizens of Hot Springs. Special interest groups, outside agencies are benevolent, but they appear to have gone too far and have far too much influence on both the city management and the City Board. Grants are wonderful, but grants that require that we continue to fund activities after grant monies have been depleted are detrimental to the City. It is unforgivable that our city assets have been allowed to deteriorate while the monies have gone to entities other than what is needed to provide essential services just to keep this City running. Ignoring the Higdon Ferry, Phase III, money needed in the past budget year was not, in my opinion, very responsible. I did not vote for the budget. City management and the City Board must stop thinking revenues are going to increase significantly in the near future. We can’t even project what the weather is going to be, and that’s not a joke. The headline in the newspaper the other day was due to weather, jail gets placed on the back burner. Years ago that wouldn’t have made any sense. We all understood what that meant. Anything less than six percent increase will not make a difference when you factor in annual inflation, retirement funding increases, very, very, very unstable fuel costs. This will keep a lot of vehicles from clogging up our streets because all the people I have spoken to have said that they now make a direct run from their job or while they are doing their errands, and they map out everything–every single person I have spoken to. Can we afford increases in anything on the expense side until there is an increase in revenue – a natural increase in revenue? We seen to be operating in a circle. City management is in charge, and the City Board doesn’t do anything to change the job management is doing. Denial in this case is certainly not going to work at this stage and under these economic conditions. Only when you change how you are doing things will you effect a different result. Why does it appear that the City Board is afraid to say ‘no’ when they will be forced to say ‘no’ a whole bunch of times if our economic conditions get any worse. We, the City Board, are beginning to give the appearance of being nothing more than rubber-stamps. People have had enough. I like this form of government. I was surprised to hear a couple of people talking about changing the form of government. I am not Board of Directors Meeting 7 May 17, 2011 at 7:00 P.M. in favor of it. It is who occupies the seats that makes the difference. We are representatives of the people. Other cities have repealed the city manager form of government for the very reasons that we are experiencing. They feel like they have lost touch with the needs of the people. Unless major changes are made soon, perhaps an initiative will begin. We have priorities that are not being funded properly. The thought is the City is going to grow their way out of these problems and is based on the “if” comes. If the money comes, then we will be okay. What if the money doesn’t come? What if the weather gets bad? What if we have another weather event? What if the price of gas is so bad that we really won’t be using the highways very much and that is Higdon Ferry/Central. It not fiscally responsible to place the future of Hot Springs at any higher risk for making our payroll. Our federal government has taken the country to the brink of bankruptcy. I spoke to the city manager about the front of two periodicals the city receives - one had a pillar with bankruptcy and the other one was ominous. Over-saddling all the critical financial problems, city management has been given a temporary reprieve with all the diversions that have surrounded the media attention regarding our Mayor. The almost $3 million water treatment mess has not gone away. $3 million problem with Higdon Ferry, Phase III, brings our attention back to the City Manager and City Board. I don’t think the public will accept all is forgiven. The time will tell and so will the voters. We need a jail. We can’t keep robbing Peter to pay Paul because Peter is broke. That is how I feel about Phase III. It is a want. I would love to have it, but it is not a need. We have to take care of our city business first.” Director Garcia stated she has a letter from the Arkansas State Highway and Transportation Department dated May 12, that said an estimated $2 million in highway funding would have to be diverted if the City did not have its portion of the funding to complete to Golf Links. City Manager Lance Hudnell advised that is correct; and in order to have their funds spent by 2014, they have to re-program sometime this summer. Director Garcia noted in a prior work session, he gave the Board the options if the City had franchise fee-secured revenue bonds and the interest payment in it was just over $1.9 million, the net loss between the $2 million; and the $1.9 million is under $100,000 difference. City Manager Lance Hudnell said he made it very clear to the Board that the City would have to figure out how to remove that much from the bond payment out of the existing budget because the existing franchise fees support the existing O&M budget. Therefore, it would be a difficult task for the Board to deal with. Director Garcia said her point was the City would not lose $2 million because it would cost $1.9 million and so it is less than $100,000 difference. She pointed out if there were bonds, the City would have to pay $1.9 million over the time of the bonds in interest. Therefore, the City is paying $1.9 million to get $2 million from the Arkansas State Highway and Transportation Department. Board of Directors Meeting 8 May 17, 2011 at 7:00 P.M.  Director Keheley questioned under either option, if the City becomes liable for the maintenance of the road north of the improvements. City Manager Lance Hudnell advised as such time as Higdon Ferry is reconfigured to Golf Links, then the section that is no longer needed in their system for state highway, the State would remove that from the highway system, which means that it would then become a City street; and the City would be responsible for all the maintenance and care. Director Keheley asked if the estimates for acquiring the right-of-way are firm figures or would they be subject to increase by condemnations or damage awards. City Manager Lance Hudnell advised they are subject to moving up or down based on the final appraisals and/or condemnations and/or awards. Mayor Carney pointed out that it has been stated in work sessions that Utilities money cannot be spent on this; but since some of this is Utilities, she questioned how much of that can the City use out of the Utilities. City Manager Lance Hudnell advised that the City can do its utility relocations using Utility Funds but cannot use to do Arkla or Entergy. He noted that the power lines, cable tv lines, gas lines, and water and sewer lines have to be moved. Mayor Carney questioned how much money is available out of Utilities that could be used, and City Manager Lance Hudnell advised that the City could only use that part for its utilities and believes that was figured in. He added on Phase III, most of the amount being discussed would be for property acquisitions, particularly on the last 200 yards because there are not any major power lines going across. He noted there are still some unknowns with regard to exactly what the acquisition costs would be, whether there are any condemnations involved, etc. He pointed out that thanks to the work of previous administrations, previous Boards, this administration, the Chamber of Commerce, and many others, $5.9 million has been raised toward this project. He added in 1999, when all this work started, it was actually around $6.5 million that was requested; but through federal budget cuts, the $5.9 million was reduced and so that is what has left the City short at the end. There being no further comments, Mayor Carney declared the public hearing closed. NEW BUSINESS 12 Proposed Ordinance No. O-11-10 Board of Directors Meeting 9 May 17, 2011 at 7:00 P.M.  An ordinance entitled, “AN ORDINANCE WAIVING THE REQUIREMENTS OF COMPETITIVE BIDDING FOR THE PURCHASE OF CERTAIN REAL PROPERTY RELATED TO THE HIGDON FERRY WIDENING PROJECT - PHASE II - HIGHWAY 270 TO PRINTERS PLACE (AHTD JOB #061113),” was taken from the agenda for consideration. A motion was made by Director Daniel, duly seconded by Director Jones, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be adopted as read?” and upon motion of Director Jones, duly seconded by Director Maruthur, that the ordinance be adopted as read. Upon discussion, Mr. Steve Mallett, Deputy City Manager for Public Works and Utilities, stated on March 15, 2011, the Board approved Ordinance No. 5816 waiving competitive bidding for the purchase of property and temporary construction easements related to Phase II of the Higdon Ferry widening project which was the current phase to Printers Place. The ordinance authorized payment for 24 properties and/or easements, including this listing (Tract 39), which is a small parcel of about .02 acres owned by the Griffin-Leggett Funeral Home. He advised this is the only remaining property that has not been secured or returned to Arkansas State Highway and Transportation Department for condemnation. He stated the City made the offer as authorized in the ordinance of $5,054 in accordance with the appraisal. The owner has made a counteroffer of $6,000. The City’s options, at this point, are to continue to accept their counteroffer, hold to the original offer price, make a counteroffer, or proceed with condemnation on such a small parcel. He advised the City consulted with the Arkansas State Highway and Transportation Department, and they recommended paying the amount of the counteroffer to settle the issue due to the small amount as compared to the cost that would be incurred by any of the other options. He said that the City supports the recommendation of the Arkansas State Highway and Transportation Department to authorize staff to pay up to $6,000 and to offer the property owner a counteroffer of up to $6,000, not including closing costs, which will be applied at the closing. 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 ordinance was declared adopted. 13 Proposed Resolution No. R-11-81 Board of Directors Meeting 10 May 17, 2011 at 7:00 P.M.  A resolution entitled, “A RESOLUTION ACCEPTING THE RECOMMENDATION OF THE LOCAL REDEVELOPMENT AUTHORITY’S REUSE PLAN AND HOMELESS APPLICATION CONCERNING 2005 BRAC PROCESS,” was taken from the agenda and read by title only. A motion was made by Director Jones, duly seconded by Director Maruthur, that the resolution be adopted as read. Upon discussion, City Clerk Lance Spicer explained that the resolution is to endorse the Reuse Plan that was submitted by the Local Redevelopment Agency, which consisted of City Manager Lance Hudnell; Mr. Dave Byerly, president of GCEDC/Chamber of Commerce; and also former City Manager Kent Myers. He stated this process began in 2006, and there were two public hearings held and also a public meeting. Prior to both meetings, there was public notice given in The Sentinel-Record, and applications were received from interested applicants. He stated the Redevelopment Agency took the applications; and at one of their public hearings, they made a recommendation to accept the application of the former Arkansas Rehab Center, which is now the Arkansas Career Training Institute (ACTI). He recognized representatives from ACTI (Mr. Jonathan Bibb, interim administrator; and Mr. Tony Honig, assistant administrator). City Manager Lance Hudnell pointed out that during this interim time, the Arkansas Career Institute has also had to make applications through the U. S. Department of Education and through the Arkansas Department of Education to get approval of this process. He explained this is a very convoluted process the Department of Army has to go through and involves the U. S. Department of Education, the U. S. Department of Housing and Urban Development, the Department of Army, and the City’s own local recommendation. Director Keheley asked what the building and property will be used for; and Mr. Jonathan Bibb, interim administrator of ACTI, advised the building will be used to expand some of their existing programs, especially in the automotive section. He said they are also considering some of the other programs to expand in the occupations that are high-skilled, high-wage, and high-demand. Also, as they began to see how the economy of Arkansas changed, they are looking at updating their programs of study; and it will be used for vocational training. Board of Directors Meeting 11 May 17, 2011 at 7:00 P.M.  City Manager Lance Hudnell pointed out there are eight eligible activities, and that is one of the eligible activities. Director Keheley said one of the eligible activities was for the homeless and asked if anyone had looked into Safe Haven (women’s and children’s shelter) that is planned for Hot Springs. Mr. Bibb replied with the plan they submitted, it is totally for vocational rehabilitation training; and they have not looked into Safe Haven. 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. OTHER BUSINESS 14 Board of Directors Items for Discussion Director Maruthur announced that yesterday, a meeting of the Park Avenue Community Association was held with approximately 42 present. She stated that Police Chief David Flory addressed the meeting, and the group was excited about the prospect of what the Chief is doing. Director Garcia requested that the Board schedule a work session to discuss priorities on the City’s unfunded capital projects so the Board can work on a clear direction to city management of what the Board sees as the top priorities on the City’s projects. Director Keheley asked if that would include Higdon Ferry since that is time-sensitive. Director Garcia stated that she understood there will be a special called meeting on that if the Arkansas State Highway and Transportation Department does not extend it to the June 7 meeting. City Manager Lance Hudnell replied that is correct. He mentioned that the last work session was on that topic, and the Board did not conclude that work so Director Garcia is asking that the Board move on with concluding the work that it began at the previous work session. Upon discussion of dates for the work session, Director McCabe pointed out that there are two separate issues. He said the decision on Higdon Ferry is what he understands as a stand-alone issue; and for all the other issues, the Board can develop an appropriate work session for those items. Board of Directors Meeting 12 May 17, 2011 at 7:00 P.M.  Mayor Carney pointed out there were a lot of issues the Board did not discuss and suggested May 24 for a work session to conclude the items. Director Maruthur commented that the Board does not seem very productive after an agenda meeting and would have no objection to May 24. It was the consensus of the Board to hold a work session on May 24, at 4 p.m., at the Central Fire Station. 15 City Manager’s Report City Manager Lance Hudnell gave the following report: 1. He reported on his March trip to Washington DC. Regarding the earmarks, it became clear that earmarks are no longer an issue for the federal government and will not be forthcoming for some years. It means that the money is being moved to the federal agencies; and the federal agencies will be in charge of it, which means there will be more of a block grant program. The concern that he and Director Daniel heard is that smaller cities and smaller states, such as Arkansas and Hot Springs, will not fair as well under the block grant because the City does not have the ability to have lobbyists at the various federal agencies. He stated that all of Arkansas’ Congressional delegation pledged that they will work as lobbyists to try and get issues through the federal agencies. They heard a presentation by Mr. Ron Simms, secretary of HUD. He quoted from Mr. Simms that “it is time for us to be the next greatest generation.” He said that was very appropriate because it is time to begin to move on some of these issues and to deal with things in that type of manner considering there is a need for the next greatest generation. He mentioned that First Lady Michelle Obama was one of the speakers who dealt with the “Let’s Move” initiative which is in regard to a healthier lifestyle. He attended a session and has materials to get to the City Attorney regarding the update of federal court cases. There have been several issues at the Supreme Court that impact cities across the country particularly in the area of employment. He reported there are additional stormwater regulations, and one of the things the City struggles with is the stormwater being an unfunded mandate; and people do not like the fact that the City has to do the stormwater regulations. However, it is a mandate punishable to the City if the City does not do them. He added EPA is considering additional stormwater regulations where they actually go back on existing property. Regarding Board of Directors Meeting 13 May 17, 2011 at 7:00 P.M. National League of Cities Programs, Finance Director Dorethea Yates and her staff have investigated the credit card rebate. The NLC has its own credit card rebate program; however, after investigating that, the City is getting a similar deal through its current provider; and the deal the City is getting is equally as good as it could get through the National League of Cities. A program that the City has not investigated that may be of benefit to the citizens is a utility line warranty program. This is a program offered through the National League of Cities where citizens can pay a small monthly fee; and then it protects them for the things the cities do not do when part of the utility system is on private property, such as when there is a break in a yard or behind the meter on water and wastewater side. The City is investigating that to see if it would be of benefit to the citizens. This is a program the NLC has done nationally, and they have a network of plumbers across the country that they deal with and/or will work with local people to create that. He reported the last day of the conference began with breakfast with Congressman Ross, who hosts it every year for all of the delegates from Arkansas and does a briefing. At lunch, the Municipal League hosts a lunch for all of the representatives from Arkansas. In the afternoon, they had three, one-on-one meetings with both of the senators and with Congressman Ross. He thanked Senator Boozeman, who brought his entire staff and Congressman Ross and Senator Pryor, who also brought their staff. The Chamber of Commerce and GCEDC and others do a similar-type program; and it helps when everyone works together to try to secure funding for Hot Springs, Garland County, and the State. 2. Mr. Witherspoon, on Beech Street, called to compliment the residential Sanitation crew, Rick Mutter; Rick Mutter, Jr.; and Michael Lambert for courteous service in going above and beyond making sure his trash was collected. 3. Mr. Keith Lowell, Bayshore Condominiums, complimented Utility employees who worked on the leak in their area and worked nonstop to get the leak repaired. This crew was led by Philip Howell, along with Keith Kimery and Gary Hodges. 4. One of the awards at the employee banquet that he wanted to highlight was a utility employee Mike Foshee, who used his personal discretionary time to assist an elderly citizen who did not have the money to make necessary repairs to a water leak under his house. He took it on himself, on his own time and his own money to assist this elderly citizen, along with some friends. 5. A compliment was received regarding the Police Department who contacted a neighbor to take his animals inside until he could get home. Board of Directors Meeting 14 May 17, 2011 at 7:00 P.M.  6. There is an offer of free tickets from Seaport Airlines as a promotion they are doing, and people can access that information through the Airport’s page on the City’s website, www.cityhs.net. 7. City compost is now available. 8. Memorial Day Holiday for the City is Monday, May 30. 9. Spring Fling totals were 201 tons. 10. He will check with the Arkansas State Highway and Transportation Department to see if the City can defer the Higdon Ferry issue until June 7. If not, there will be a special called meeting on May 31 to consider that issue. 11. City Clerk Lance Spicer prepared a timeline for appointment procedure with regard to upcoming nominations for boards, commissions, and committees. Mayor Carney announced that the current openings are on the Animal Services Advisory Committee (two positions); Central Business Improvement District No. 2 (one position); Civil Service Commission (one position); Construction Trades Advisory Committee (five positions); Parks and Recreation Advisory Committee (one position); Transportation Advisory Committee (one position); and Urban Forestry Advisory Committee (one position). City Manager Lance Hudnell added that the deadline is Friday, May 20. 16 ADJOURNMENT There being no further business to come before the Board, a motion was made by Director Garcia, duly seconded by Director Keheley, that the meeting be adjourned; and upon voice vote, the motion unanimously carried. The meeting adjourned at 8:10 p.m., to meet again on Tuesday, June 7, 2011, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Spicer, City Clerk Ruth Carney, Mayor Board of Directors Meeting 15 May 17, 2011 at 7:00 P.M. Board of Directors Meeting 16 May 17, 2011 at 7:00 P.M.