Board of Directors

MINUTES BOARD OF DIRECTORS MEETING JUNE 7, 2011, AT 7:00 P.M. The regular meeting of the Board of Directors was held on Tuesday, June 7, 2011, at 7:00 p.m., Board Chambers, City Hall, with Mayor Ruth Carney presiding. The invocation was given by Mr. Les Warren, 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 Daniel, duly seconded by Director Maruthur, that the agenda be approved; and upon voice vote, the motion unanimously carried. 3 Approval of Minutes of May 17, 2011 Board Meeting A motion was made by Director Jones, duly seconded by Director Maruthur, that the minutes of the May 17, 2011 Board Meeting be approved; and upon voice vote, the motion unanimously carried. 4 Recognition of Guests  At this time, there was a presentation of the Tree City Flag; and Mayor Carney announced that Hot Springs won the Tree City USA award for the 11th consecutive year by the nonprofit Arbor Day Foundation as a Tree City USA community for its commitment to urban forestry. She said she attended Arbor Day at Entergy Park and recognized Ms. Linda Palmer, who is an artist and her selections as Arkansas Urban Forestry Council Volunteer of the Year. She mentioned Hot Springs has also been selected for the Tree City USA Growth Award for the 6th year. City Manager Lance Hudnell introduced Mr. Richard Penn, newly employed Utilities Director. Mr. Penn expressed appreciation to work for the City and said in the first 2 ½ weeks, he has become acquainted with the advancements and improvements the City has made and hopes to be part of great improvements in many years to come. Mayor Carney recognized two representatives from the U. S. Army, Sergeant Waller and Sergeant Midkiff. She expressed appreciation to them and all the military for their service to the United States of America. Sergeant Midkiff stated that last December, they had their army Christmas function; and Mayor-elect Carney came and showed her support. On behalf of the United States Army, they presented her with a letter of appreciation. Sergeant Waller then read the letter of appreciation signed by Captain Carl Brennan,Company Commander. 5 Board of Directors Announcements Director Keheley announced the future service of Seaport Airlines service to Dallas and will begin on July 17, round-trip, twice-a-day to Dallas and once a day to Memphis, six days a week. She stated this is a $52,600,000 operation at the Airport; and this service is first-class, free parking, no hassle, and no screening, and will serve all citizens from the entire region. Director Maruthur announced the passing of Mr. Trice Ellis on May 31, and Mr. Franz Viertbauer on June 3. Mr Ellis served on the Board of Directors and Mr. Viertbauer managed the Majestic Hotel and later the Arlington Hotel and was a great patron of the arts of Garvan Gardens and the Music Festival. 6 Acknowledgment of Financial Statements Notice for April 2011 2  Mayor Carney announced that the Financial Statements for April 2011 are on file 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 (May 17, 2011). 8 Proposed Resolution No. R-11-82 Approving Certain Bid Awards (a) Stator Rewind - Utility Administration [annual supply contract awarded to Lynn’s Electric Motor in an amount not to exceed $100,000]; (b) Float Switches - Utility Administration [annual supply contract awarded to Instrument and Supply in an amount not to exceed $20,000]; (c) Seals and Bearings - Utility Administration [annual supply contract awarded to Fleck Bearing for Bearings and Triplex for Seals in an amount not to exceed $30,000]; (d) Residential Rear Load Collection Truck - Sanitation Department [awarded to Truck Center of Arkansas in the amount of $145,932]; (e) Commercial Front Load Collection Truck - Sanitation Department [awarded to Tri State Truck Center in the amount of $228,423]; (f) Cold Mix Asphalt - Public Works [annual supply contract awarded to Redstone Construction in an amount not to exceed $15,000]; (g) Hot Mix Asphalt (picked up) - Public Works [annual supply contract awarded to Martin Marietta in an amount not to exceed $15,000]; and (h) Pump Repair Parts-Utility Administration [awarded to Jack Tyler Engineering in the amount of $23,708.41]. 9 Proposed Resolution No. R–11-83 Authorizing the Filing of a Grant Application with the U. S. Department of Justice Pursuant to the Bureau of Justice Assistance, Bulletproof Vest Partnership Program. 3  A motion was made by Director Jones, 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. UNFINISHED BUSINESS 10 Proposed Resolution No. R-11-76 A resolution entitled, “A RESOLUTION AMENDING THE HOT SPRINGS BOARD OF DIRECTORS PROCEDURAL GUIDELINES,” was taken from the agenda and read by title only. A motion was made by Director Maruthur, duly second by Director Keheley, that the resolution be adopted as read. Upon discussion, City Attorney Brian Albright advised that he drafted this resolution at the request of the Directors with input from Mr. Mark Hays, with the Arkansas Municipal League, who attended one of the Board work sessions. He stated the resolution adds some additional procedural guidelines to the existing guidelines contained within Title 2 of the Municipal Code. Mayor Carney recognized Mr. Bob Driggers, #3 Stonegate, who urged the Board to place the public commentary section at the beginning of the meeting and not at the end. He stated quite often, the Board needs to know before the business meeting begins what is on the public’s mind, and there can be a situation where some Board Members, once their business is concluded, would leave the meeting. At this time, Mayor Carney asked that the resolution be read in its entirety. City Attorney Brian Albright then read the resolution. Ms. Janice Jones, 113 Carney, was recognized and said she was not clear on whether the Board will adjourn officially before the public is allowed to continue to address the Board Members. Also, if the Board adjourns officially and people are still requesting to speak, she noted there is nothing that requires the Directors to remain and listen to what the public has to say. City Attorney Brian Albright explained that the public commentary would be after the adjournment of the meeting; and the purpose of the public commentary, as discussed in work sessions, is for non-agenda items. He pointed out if it is an item that warranted being on the agenda, it would have been placed on the agenda; and the Board would have had an opportunity to have information in 4 the board packet. He explained there would be individuals who would know about it; it would be published; and everyone concerned about that particular item would be able to attend the meeting and speak on it, not just one person. He stated to take up time within the business meeting of the Board for items that will be referred to some committee or a commission or staff member can have the effect of “bogging down” the business meeting of the City. He noted the idea would be that individuals could come and speak on any topic of City business they want; and if it was an issue that could be answered or addressed during that public commentary session, that could be done. If it was not something that could be addressed, it could be referred to the proper committee or staff member; or the City Manager could be directed by the Board to place it on the next agenda. He pointed out the purpose in having agenda meetings is so everyone knows what is going to be considered on the upcoming business so it can be included in the packet, have background information, and everyone interested in that particular topic has notice of it and an opportunity to be heard. Mr. George Pritchett, 210 Carl Drive, asked that the Directors show a greater amount of respect to each other and commented it is embarrassing to him to see the behavior of the Board and hoped the Dr. Blake Robertson fiasco is never repeated at anytime. He urged the Directors to solve issues among themselves before bringing them to the public. He said that City Attorney Brian Albright made a good point in the fact that many of these things can be solved, but many of them cannot. He noted that the Board does not take input from the public at the budget meetings or at the agenda meetings. Also, input from the public is not taken until after it is on the agenda; and he encouraged the Board to do something different in that respect. He added that a procedure needs to be established so the public can bring items after there has been a review. He stated having this handled after the meeting, after the television is turned off, after the press has left, and when some of the Directors could leave if they chose to do so, is not right. Director Maruthur commented if an individual attends the meeting and was unable to reach his/her Director or get here in time to sign up for an agenda item, she would like to make sure the individual who has information that could be pertinent to their vote be allowed to speak. She added that means if an individual comes to a Board Meeting, they would be heard by the Board; but there would be no action allowed because the Board is only allowing for a 15-minute period. She pointed out if the Board passes the resolution as written, it is getting more exclusive to the people who elected the Directors and depend on them to make the decisions. She stressed they deserve to be heard. A motion was made by Director Maruthur, duly seconded by Director Keheley, to amend Paragraph R - Public Commentary (non-agenda items) to include that it would be before adjournment 5 and not after adjournment and a parenthetical that no action may be taken as a result of discussion during that time period; also, if someone shows up late for an agenda item, that they would still be allowed to speak. Upon further discussion, Mayor Carney suggested that the 15-minute time limit be removed because it will be different every time. Director Maruthur said she would like to see a limit on the time, and 20 minutes would be fine. She noted it would have to be 21 minutes if it is three. Director McCabe pointed out Director Maruthur has asked that an item be placed in Section R that deals with items that are on the agenda where a person had come in late. He noted Mayor Carney has always asked if there is anyone else who would like to speak to an item but did not have a chance to sign up. He added that is a good practice, and the Board can continue doing that. However, if it is to be placed in the resolution, Section “R” is not the place to do it because that deals with non-agenda items; and he believes that is why it should be separated. Also, he believes the public commentary section should be after the adjournment because it is not an action of the Board. He said he has no problem with the meeting of 15 or 20 minutes following adjournment. Director Maruthur said she wanted it to be a separate letter and did not want to co-mingle with the person not signing up in time. Director McCabe asked if she would allow an amendment to her amendment to break out that, and Director Maruthur said that she would. City Attorney Brian Albright asked if she wanted to have a separate, delineated guideline that would allow someone that came in late to be able to speak on an agenda item, and Director Maruthur said that was a correct. She added that she would like it changed from 15 minutes to 21 minutes. Director McCabe pointed out that letter “L” deals with citizens and guests, and it could be placed after the first sentence that those individuals who were unable to sign-up would be afforded an opportunity to speak on the particular agenda item at the appropriate time. City Attorney Brian Albright noted that the other part under paragraph “R” would be before adjournment and not after. Director Maruthur added that she would like the following be included: “ no action may be taken,” and it would be 21 minutes and no action. 6  Director Keheley asked for clarification on “no action may be taken.” Director Maruthur explained if someone should come to the meeting and request anything, the Board would be prohibited from taking any action. Director Keheley pointed out they would be referred to either the proper personnel of the City, the proper committee, or to the next agenda request. Mayor Carney commented that would also solve the problem with the termination of the Board Meeting. She stated it could be in the Board Meeting, but no action taken so the Board would not have to adjourn the meeting and that would be a part of the Board Meeting for 21 minutes. Director Keheley said she has one concern and commented if it is during the business meeting, action would be taken by the Board. If it is after adjournment, then it would follow Director Maruthur’s amendment and be referred to the proper person and no action taken. Director Maruthur asked if that would supercede if it were specified that no action may be taken. City Attorney Brian Albright replied that would be a rule that has been put in place by the policy of the Board, such as the rules concerning amendments to motions, which have not been followed tonight. He said he will do his best to remind the Board that no action can be taken during a public commentary portion of the meeting if that is what the Board passes. However, he stressed that he does not vote. Director Keheley said she preferred that it be broken out since she is for part of the motion and not for another part. Director Daniel stated he thought the Board was going to vote to approve or disapprove the resolution tonight, but amendments are being made. He stressed that the Board needs to either send it back to staff or vote on it as written. He pointed out that the City Attorney has rewritten it three times. Director Maruthur stated at the agenda meeting this past week, the Directors were told the reason they were having agenda meeting is so they would have the opportunity to discuss items at the Board Meeting. She pointed out she is making a change because she received several phone calls regarding the public having the opportunity to speak before the Board prior to adjournment. She said she believes it would be appropriate to know at the end of the meeting if there is anyone from the public who has something on their mind, that they would be allowed to speak. City Manager Lance Hudnell pointed out that what Director Daniel was speaking to was the Board has discussed this at a work session, not at an agenda meeting. 7  At this time, City Attorney Brian Albright said that Director Maruthur has made a motion, which was seconded by Director Keheley, that a sentence be included in Paragraph “L” after the first sentence and before the second sentence that would read: “should a guest or citizen arrive after the sign-up sheet has been retrieved but prior to an agenda item being called, such citizen or guest shall be afforded the opportunity to address the agenda item.” In regard to Paragraph “R,” Public Commentary, it would be before adjournment and not after adjournment, that would be in parenthetical “that no action may be taken during this public commentary section and time limitation would be 21 minutes.” Mayor Carney said she has received several calls and e-mails, and the biggest concern was before adjournment or after adjournment. Director Garcia said she is in favor of formalizing the common practice to recognize anyone who arrives after the sign-up sheet is retrieved and prior to an agenda item that they be given the opportunity to speak on that specific item. Also, she is in favor of increasing the time. She stated she did have a concern if it is no action to be taken, she would not want to unnecessarily hold staff or people who were not here for the public commentary portion. She added that she is in favor of allowing and providing opportunity to the citizens. Mayor Carney then called for a vote on the motion to amend; and upon roll call, the following voted “aye”: Directors Maruthur and Mayor Carney, total 2. Voting “no”: Directors Jones, Keheley, McCabe, Garcia, and Daniel, total 5; motion failed to amend. A motion was made by Director Garcia, duly seconded by Director Jones, to add a sentence to Paragraph “L”: “Should a guest or citizen arrive after the sign-up sheet has been retrieved but prior to an agenda item being called, such citizen or guest shall be afforded the opportunity to address the agenda item.” In regard to Paragraph “R,” it would be “after adjournment,” with a 21-minute time limit. Upon discussion, Director Maruthur questioned if this prohibited the public from speaking before the Board adjourns, and City Attorney Brian Albright advised for non-agenda items, that would be correct. 8  Mayor Carney asked that City Manager Lance Hudnell explain the responsibility of the staff that is present. City Manager Lance Hudnell advised that staff members attend the Board Meetings in order to be of assistance to the Board in explaining items that are on the agenda. He added it is the Board’s decision whether it does or does not want staff members staying for the public comment period. He said he assumed there would not be any problem with dismissing the staff, but he would stay to refer any items that would go back to staff. Mayor Carney then called for a vote on the amendment; and upon roll call, the following voted “aye”: Directors Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 6. Voting “no”: Director Maruthur; motion carried. Mayor Carney then called for a vote on the motion to adopt the resolution, as amended, Upon discussion, Director Maruthur pointed out this would prevent anyone from speaking before the adjournment of the meeting. Mayor Carney added it would be only on non-agenda items. She noted if they are signed up for an agenda item, they will be speaking during the Board Meeting. Director Garcia commented for additional clarification, this is adding additional commentary time to the citizens that the Board currently does not have in its rules and is providing additional opportunity for citizens to speak before the Board. Director Maruthur commented if citizens want to speak to the Board, they can always call. She stated that she never felt that staff should be required to stay. Mayor Carney said hopefully those who come are interested enough to stay to hear what the citizens have to say that are not on the agenda and hopes citizens feel this is something the Board has added. She noted this can always be re-done and can always do another amendment. City Attorney Brian pointed out if the Board is still in a business meeting, the potential exists for a Board Member to make a motion to approve whatever is being requested, and that being made without the benefit of any background information. Mayor Carney then called for a vote on the motion to adopt the resolution, as amended; and upon roll call, the following voted “aye”: Directors Jones, Keheley, McCabe, Garcia, Daniel, and 9 Carney, total 6. Voting “present”: Director Maruthur; motion carried. Whereupon the resolution was declared adopted, as amended. NEW BUSINESS 11 Request from Mr. Robert Freeman to Extend Operating Hours of Animal Services Center During Weekdays and Open Every Saturday Mr. Robert Freeman, 201 Brentwood, stated the Animal Services office is now closed on Saturday’s; and some years ago, the facility was open on Saturdays. He said he has visited Humane Societies in various parts of the and parts of the United States and has never heard of a kennel that was closed on Saturdays. By closing on Saturdays, he noted this eliminates a major part of the week in which parents and their children can go there to adopt an animal. He urged the Board to consider re-juggling these hours for the benefit of the public and these animals. Director Maruthur expressed appreciation to Mr. Freeman for presenting what he has shown is really needed. Ms. Susan Williams, 173 Rosey Lane, said she has started a small dog rescue in the County and thanked Mr. Bugg and his staff for helping her on numerous occasions. She stated the problem is that families do activities on Saturdays, and they can go and adopt a pet together. Also, the hours exclude any working families or individuals who want to visit the dog pound. She commented if they adopted out one dog a week, that would save 48 dogs a year. She suggested that employees work every other Saturday and close on Mondays. Ms. Janice Jones, 113 Carney, commended Mr. Dan Bugg and his staff and spoke of the professional and courteous manner of the personnel. She then paraphrased the Animal Services Statement of Purpose. She said the idea presented by Mr. Freeman and Ms. Williams of closing on Monday and rotating a Saturday shift is an excellent idea which would solve the problem for people who do not have the time and children who are in school who cannot get to the facility until Saturday. Director Maruthur pointed out that in 2010, Mr. Bugg created modules and were basically packages because there is a joint city/county effort in taking care of the animals, and the County was in need of more services. She stated Mr. Bugg came up with the idea of buying modules; and 10 because of that, the City now receives an extra $72,000 a year. However, people do not know that the $72,000 a year does not go to Animal Services but goes to the General Fund. She said that many people think when they leave money to Animal Services in their estates, that it goes to Animal Services. She added it does not unless it is earmarked. City Manager Lance Hudnell advised if someone leaves something to Animal Services, it goes to Animal Services. He said the City has a donation fund, and the Animal Services Advisory Committee advises the Board on how to appropriate those funds. He stated every year at budget time, money is taken out of Donation Funds for specific expenditures that the Board authorizes by virtue of the budget for Animal Services. Director Maruthur asked that Mr. Dan Bugg, Animal Services Officer, address this issue. Mr. Bugg advised that he cannot hire personnel with donation funds. He added the fencing around the shelter and Dog Park were paid for by donation funds. Director Maruthur questioned where the funds go if they are not earmarked, and Mr. Bugg advised that it goes to the Donations Fund. He further explained it goes into a trust account at Regions Bank; and each year at budget time, he has to ask for a certain amount of money to be put on a budget line so he can use it for a project. Otherwise, it stays in the bank. Mr. Bugg advised that they used to be open on Saturdays; and when he came to the facility in January 1999, they were not opened on Saturdays at that time but were by April. He said he had to shuffle people around and had to pay overtime to get people to work on Saturdays and was able to provide Saturday services for a limited amount of time until they lost a position in a budget cut in 2003. Director Keheley asked if there is any combination of hours where he could take some of the staffing from the regular work week and shift it to a partial Saturday operation with the present staff and budget. Also, she heard that the modules and the County money ($72,000) does not go to the operation. Mr. Bugg advised that it goes to the General Fund, and he gets General Fund funding to operate the department. City Manager Lance Hudnell explained that his department costs more than $72,000 to operate. In regard to the partial shifting, Mr. Bugg advised they did that before and had many people working overtime. He explained that people need to get away from this job and five days a week is enough to deal with some of the problems. He said not being open on Mondays is fine; but he still has to clean the shelter and have officers respond to calls on the streets. He stated the Police Department will call the Sheriff’s Department under contract, and the City’s agreement with the County requires service on Mondays. He added he would really be able to reduce just a couple of people on Mondays; and if he did not have the public coming in, he could take one officer, and he/she has all day to clean the kennel. He advised at the present time, when they open at 12 noon, 11 it takes three officers all morning to get it ready to open to the public at noon. He added shifting them down only wins him a couple of employees, but basically it is overtime. Director Garcia asked if the Animal Services Advisory Committee has reviewed this, and Mr. Bugg advised that it has not this particular request. Director Garcia made a motion, duly seconded by Director Jones, that this be reviewed by the Animal Services Advisory Committee to make a recommendation to the Board to optimize the services to the community and to also make any review necessary for any needed budget adjustment. Upon discussion, City Manager Lance Hudnell said that would be a proper thing to do; and the Board has the mid-year budget review coming up and could probably have something ready then. Mayor Carney suggested using Teen Challenge boys, who are very dependable, to work in the kennels and also sending it to the Animal Services Committee to get some options on contract labor. Director Daniel said that he agreed with the Mayor and believes there are several agencies that could be used on a rotation basis. He commended Mr. Freeman for bringing this to the Board’s attention. He stated that he believe it needs to be open on Saturdays. Mr. Bugg advised there is some liability being back with the animals; and currently, the pit bull intake has gone up to 60 percent of his current shelter intake. He mentioned he has to have people back there who know what they are doing. Director Maruthur said she has no objection to referring this to the Animal Services Advisory Committee, but the City has to take action and needs more personnel. Mayor Carney then called for a vote on the motion to refer this request to the Animal Services Advisory Committee; and upon voice vote, the motion unanimously carried. 12 Proposed Resolution No. R-11-84 A resolution entitled, “A RESOLUTION EXPRESSING THE WILLINGNESS OF THE CITY OF HOT SPRINGS, ARKANSAS, TO BE RESPONSIBLE FOR RIGHT-OF-WAY 12 ACQUISITION AND UTILITY RELOCATION FOR HIGHWAY 88 (HIGDON FERRY ROAD) WIDENING PROJECT,” was taken from the agenda and read by title only. A motion was made by Director Garcia, duly seconded by Director Jones, that the resolution be adopted as read. Upon discussion, City Manager Lance Hudnell said in order for the Highway Department to proceed with their program of current projects, it is time for the City to make a commitment in regard to Phase III of the Higdon Ferry Road widening project. He stated the current construction project ends at Printers Place, and the City has approximately $1.9 million in earmarked funds to continue this project for its share (property acquisition and utility relocation) of the project. The Highway Department has funding in place to take the project all the way to Golf Links, which is how it is currently designed. He said the City’s funding earmark is being matched by 20 percent local funds. He advised the City does not have those funds in place, but the Highway Department wants the City to make a commitment. Two options have been discussed over the last several weeks, and Option A would be to fully fund, which would be to pledge now to do a bond issue or some other type of funding for the entire $3.8 million that is needed in order to continue to Golf Links, or Option B would be to match with approximately $350,000 out of surplus funds, which is to make full use of the City’s earmark funds and get to Crawford Drive. He stated the Highway Department would then have to reprogram any unused construction funds that they currently have programed that would normally go for the last leg across the private property. The work between now and the summer of 2014 would be to come up with funding for the last leg and then re-approach the Highway Department to put that last leg into their program of projects for the 2016 to 2019 timeframe. In regard to the resolution, as written, the Board needs to choose between Option A or Option B; and Option B is included in the resolution. He explained that Option B is to commit $350,000 from surplus funds to continue the project to Crawford Drive and would assume that the Board would desire that staff work with community leaders on funding for 2014 or Option A to commit now to full funding for the project in which case the City would have to issue a bond issue later next year in order to fully fund the project and would have to do the bond issue out of current revenues from the General Fund. At this time, Director Garcia read a prepared statement indicating the importance of this project and its importance to her. She mentioned she is the Director for District 5, in which Higdon Ferry Road is located. She expressed gratitude for the traffic light at Twin Points Road and Higdon 13 Ferry Road and how much it has increased traffic safety in that area and the traffic flow. She said a couple of months ago, she found out about the current situation with the City’s unfunded portion of the Higdon Ferry project that began 12 years ago and began to perform due diligence on this project in obtaining information regarding this project, as well as the City’s other unfunded general projects and seeking input from citizens regarding how the Higdon Ferry project is important to them and how it ranks among all of the current unfunded projects. Her process to seek input has included two public meetings in District 5, speaking to civic organizations, speaking to businesses and individuals directly impacted in this phase and in the community, and utilizing survey forms for ranking priorities, as well as direct conversations seeking direct input. She said she is interested in economic development for all of Hot Springs and especially in District 5. She also takes very seriously her stewardship responsibilities and her commitment to fiscal decisions that are transparent and her belief that the Directors, as elected officials, are accountable for their decisions. She noted the question before the Board tonight, regarding the Higdon Ferry project, is how far will the Board approve the project to be taken (to Crawford Drive or all the way to Golf Links) and how the City will pay for it. As recommended by the City Manager, she said the funding is mostly available for the completion to Crawford Drive with the approval of the addition that would be needed from the current fund balance. The focus of the funding question then becomes specifically the deficit needed for the section between Crawford Drive and Golf Links (that section does not currently exist). The unfunded costs for this section are estimated to be $3.8 million for the City’s portion that the City does not currently have in its funds to pay for this. She stated it has been suggested from some businesses in that area that the cost may be above that current estimated amount. She has permission from Mr. Jim Manning, one of the owners of Colton’s Restaurant that will be directly impacted from Crawford Drive to Golf Links to share his concern. He stated he is interested in improving traffic patterns on Higdon Ferry; but at this time, he did not see the additional benefit to extend beyond Crawford Drive. It is believed to have a negative economic impact on their business and property, and it has not been adequately explained on the economic benefit to be generated for this section between Golf Links and Crawford Drive. Another feedback from the manager was concern about the job loss that potentially could occur. With the completion of Higdon Ferry to Crawford Drive, Central City would be surrounded by four or five lanes on the Higdon Ferry side as it already is on Central. Other enhancements to Crawford Drive should further enhance additional development in this area. She said she is supportive of revitalization and rehabilitation development, as well as new development. It is estimated that having these Higdon Ferry improvements, at least to Crawford Drive, would likewise benefit this area and the Central City shopping area. She is not aware of further space to develop between Crawford and Golf Links with the additional lanes put in there and the businesses that will be removed. She has not been able to ascertain the additional economic impact to the Central City area 14 with extending Higdon Ferry from Crawford to Golf Links. However, it appears there is a “big bang for the buck” to at least complete Higdon Ferry to Crawford Drive currently. In addition to this project being unfunded, she mentioned the City must also consider all its current unfunded projects that are General Fund projects. She stated these are from the City Manager’s chart of unfunded projects presented to the Board. She said there are charts in the Board Chambers that have the complete list the City Manager provided to the Board in work sessions. She noted that the projects were divided into general projects. She then read the list of unfunded projects, which included City Hall, Finance Software, Citywide phone system, the Comprehensive Plan, Parking Deck Improvements, City Facility Plan, Belding Street extension, Parks and Trails, and Shady Grove railroad trestle replacement, for a total of $8.7 million in unfunded projects. She noted there is also unfunded $4 million for the police communications equipment. Also, there are various fire safety, fire station and fire equipment requests, and request on the unfunded pension liability for Fire and Police to begin paying that liability down more. In this project list of public safety, it is $18.9 million. For the past few years after significant budget cuts, where capital replacement and basic needs that were identified by the City Manager of $750,000, police car replacement - $500,000, the City got behind on its street paving and the cost-of-living adjustments and the Fiber Optic network cost - another $2.5 million. In considering Higdon Ferry and what can be done at this time, the Board must not look only at Higdon Ferry but other priorities that may be for all of the unfunded projects. According to surveys, citizen feedback reflects that Higdon Ferry is a very important project; and the majority of responses want to see it completed. However, when it came to priorities of funding, the unfunded projects, public safety was identified to her as the top priority. She mentioned the feedback she has received identified the police communications equipment as No. 1 and projects in the fire station and equipment areas came in No. 2. In order for the Board to commit to the completion of the Higdon Ferry project from Crawford Drive to Golf Links, it appears from the information she has, the City would have to currently borrow money to make the debt payment. From information received from the City Manager, it could impact current departments and employees; and other public service projects may have to be delayed. She advised the interest payments would be approximately $2 million and believes this is an important project, but with the decision of funding commitment that is required for completion tonight, it is at the 11th hour, whereas the City does not have the funding available currently to complete the Higdon Ferry project from Crawford Drive to Golf Links. She noted there is still a weak economy that is slowly recovering from the recession and expects the City to continue to improve, and where weighing all the costs of potential job losses impacted and the costs and benefits of all the unfunded projects at this time, she does not conclude with the information she has that the completion of the Higdon Ferry project from Crawford Drive to Golf Links is the highest priority at this time as the City reviews all unfunded projects and what is in the best interest and what 15 feedback has been received from business owners and citizens. She respectfully requested the Board to vote for the completion of Higdon Ferry to Crawford Drive and to postpone, not terminate, further work until the appropriate level of funding is identified and available with a targeted date required for the next Highway Department’s cycle. She said it is her understanding from the City Manager that the City has significant support to be able to include this project between Crawford Drive and Golf Links as so desired by the Board in the next cycle of the Highway Department projects. She further recommended if this is important to the Board to complete this project, that staff look at how they can set aside money and save toward the appropriate funds needed for unfunded projects. She said if this is important to the businesses in this area, that the City ask them to partner and consider their willingness to participate in other options if there are special taxes in improvement districts or other options to achieve additional funding to further improve infrastructure in these needed completions of this project. She wants to seek further economic development and projects to have a positive impact to Hot Springs and does not want to take action that would block or impede the City’s economic development. With the information she has, the funds currently available, and the decision time-line of tonight, she said she does not believe the City can significantly enhance this that is on Higdon Ferry that is favorable to development in this area. She noted the City can enhance this with the completion to Crawford Drive. She respectfully asked that everyone work together and seek options together, seek innovation and for citizens, the Board, the businesses, and any entities also interested in economic development and these projects, to make a concerted effort to pull together for the good of Hot Springs and work together to reach the best solutions. She noted that she believes working together as a team that everyone achieves more. Director Maruthur expressed concern about the word “terminate the project.” City Manager Lance Hudnell pointed out that is in the Board Action Request Form and not in the resolution. Director Maruthur pointed out that she does not want that on the Board Action Request Form. She noted that Director Garcia left off the Math and Science School, which is a large investment in the community. She stated that she has concerns about a light at Emory and Crawford with school dismissing; and whatever the Board decides to do, she said a reconfiguration is needed to allow for smooth traffic flow. Mr. George Pritchett, 210 Carl Drive, said he is agreement with Director Garcia’s statement. During the current economic times and with the predictions, he read today from a conservative group they are predicting a two percent growth over the next 10 years, each year, in the City that only stays up just with what the retirement costs increase. He said this will be the best decision the Board can make. 16  City Manager Lance Hudnell said he received an e-mail from Ms. Karen White, who was against the project in the sense of the problems with the intersection at Emory and Higdon Ferry and school traffic. Director Maruthur stated she was not willing to commit funds that the City does not have. She noted the Math and Science School was not included, and that is one of the unfunded projects. Director Garcia responded that she had a slide on it. Director Keheley said everyone feels it would be a benefit to the City to have Option A. but the City is forced with the decision regarding priorities and funding capability. She stated the Board has to exercise the best judgment it can in the interest for all of the citizens. She expressed concern about the numbers because consideration was not given to the possible amount of damages to the properties. She said the City has not looked into the awards that would be made on eminent domain proceedings, and these costs will elevate. She mentioned she will be voting for Option B. Director Daniel questioned how people will get off Crawford Drive back onto Higdon southbound if the City is going to put that extra traffic coming off Higdon. City Manager Lance Hudnell explained if the Board goes with Option B, it is his understanding that the Highway Department would work with the City on a redesign if it needed to do a redesign at Crawford based on the new plan. He advised that the preliminary indications would be they would have two lanes of Crawford that would turn south onto Higdon Ferry. Director Daniel questioned where the City is going to get the right-of-way from either side to enlarge the width of Crawford Drive, and City Manager Lance Hudnell advised they are only dealing with Crawford Drive at its intersection with Higdon, and that would be part of the Option B acquisition. Director Daniel pointed out that Director Garcia said that Colton’s was not in favor of it, and the liquor store would not be in favor of it because they do not have any space to give up. Also, there are two sides of the street there and have a little room at the service station and perhaps the Pizza place. City Manager Lance Hudnell pointed out that the City is only talking about Crawford Drive at Higdon, not improving Crawford Drive all the way to Central. Director Daniel said this would be putting more people to use that artery because they are going to be on a four-lane coming into that artery. He said the City is talking about an immediate plan; and if they do this, how is the City going to immediately take care of the traffic. City Manager Lance Hudnell advised that would be redesigned by the Highway Department to meet the traffic flows based on the way the City wants to go. 17  Mayor Carney stated that she and Mr. Mallett attended a conference, and there are people who will check out the safety and redesign before the City ever does anything. Director Daniel said he has been talking to the Highway Department for six days about some things at the south end, and they want to get it completely done. He asked them where they are going to put this traffic, and they said they do not have that drawn out. City Manager Lance Hudnell commented there is no question that the design would be better all the way to Golf Links, then it just becomes a funding priority for the Board; and then his recommendation would be that the City at least gets to Golf Links. He advised that the City loses its $1.9 million in earmark if it stops at Printers Place, and it makes even less sense to stop at Printers Place than it does at Crawford. Director McCabe said he was not in favor of Option B, and this has been a long-time project for the City; and one that needs to be completed. He stated he believes the City can fund this with a revenue bond. He mentioned the debt service on it is approximately $280,000 a year; and the City can pay for that with its projected increase in the one-cent sales tax. He mentioned that in 2014, he does not believe the City will be in any better position to find funding than it is now. Also, the Highway Department may be in worse shape as they are now. He pointed out that the City does have the Highway Department’s commitment to pave the road all the way to Golf Links and has to come up with $3.8 million to $4 million to complete the project. He commented the City can do that with a revenue bond and can do that through the increase in the one-cent sales tax projections. The sentence that he refers everyone to is in the May 12 letter from the Arkansas State Highway and Transportation Department: “then at the such time in the future that the City would be able to dedicate funding for the right-of-way acquisition and utility adjustments on this section (section from Crawford to Golf Links), we would consider the improvement for the next statewide transportation improvement program.” He pointed out if the City does not do this project now, there will never be a better time to do it. He added there are many other capital improvement projects, and everyone of those capital improvement projects is going to require some debt financing. Director McCabe made a motion, duly seconded by Director Jones, to amend the resolution, as follows: “the City of Hot Springs hereby commits to complete no later than August 2013, all the necessary right-of-way and utility relocation for required improvements along that portion of Highway 88 (Higdon Ferry Road) from the terminus of AHTD Job No. 061113 (Printers Place) north to Highway 7 (Central Avenue) at Golf Links Road as designed by the Arkansas State Highway and Transportation Department (AHTD).” 18  Upon discussion, Director Maruthur commented if the Board were to pass this, she believes it would kill the ability to get anything passed for the jail. She pointed out with the price of gas, there is less traffic on Central and Higdon. She added it is risky to make a left turn from Crawford onto Emory, and this needs to be addressed. She stated doing a bond issue on this would kill the jail, and she will not support that. Mayor Carney then called for a vote to adopt the amendment; and upon roll call, the following voted “aye”: Directors McCabe, Jones, and Daniel, total 3. Voting “no”: Directors Keheley, Maruthur, Garcia, and Carney, total 4; motion failed. City Attorney said the Board needs to vote on the resolution, which includes Option B and that is how the resolution was originally presented to the Board and was the first motion and second on the floor. Mayor Carney then called for a vote on the motion to adopt the resolution; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Garcia, Daniel, and Carney, total 6. Voting “no”: Director McCabe; motion carried. Whereupon the resolution was declared adopted (Option B). 13 Proposed Resolution No. R-11-85 A resolution entitled, “A RESOLUTION AWARDING A CONTRACT TO BROWN ENGINEERS, LLC. FOR DESIGN, BIDDING AND CONSTRUCTION SERVICES FOR INSTALLATION OF 80 SCADA REMOTE TELEMETRY UNITS (RTU),”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, explained this is for the installation of 80 SCADA remote telemetry units at 80 wastewater pump stations in the amount of $138,375.58. He explained this is a large part of the work required to meet the January 2018 deadline related to the Consent Administrative Order regarding wet weather overflows with the Arkansas Department of Environmental Quality and EPA. He said the rating and 19 ranking process has been completed for engineering firm selection in accordance with state law and recommends Brown Engineers for this project. Also, this project is funded by the 2009 Wastewater Bond issue. Director Keheley questioned if the City Attorney has approved the contract, and City Attorney Brian Albright advised that he has reviewed it. 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. 14 Proposed Resolution No. R-11-86 A resolution entitled, “A RESOLUTION ESTABLISHING CERTAIN PRINCIPLES RELATIVE TO THE CITY’S FUTURE POTABLE WATER FACILITIES,” 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, City Manager Lance Hudnell explained the primary purpose of this resolution is to give staff some orders with regard to the future of the water treatment facilities and major projects along that line. Mr. Bob Driggers, #3 Stonegate, said this is a great resolution; but the only problem is that it is two years late. He then posed three questions: (1) how much of and when do we expect to recover the $3 million of the public’s money wasted on Jacobs Engineering?; (2) what past and future disciplinary actions have been or will be taken concerning those responsible for that $3 million waste? and (3) when will Jacobs be totally fired from doing any work for the City of Hot Springs? City Manager Lance Hudnell advised that the $2.8 million spent was for services rendered under the contract and authorized by the Board of Directors and cannot be recovered because it is for services rendered by the engineering firm. With regard to disciplinary action, part of that is these principles; and the Board has visited with him regarding some of that; but those actions were also 20 taken under the authority and the direction of a future Board. He said he cannot address that because it involves Board Members. He advised that Jacobs Engineering has been terminated with regard to this project, and it is a large engineering firm and has many different segments. He stated he assumed if the City so rated and there was some future project, it would be up to the Board as to whether they awarded the contract in the future to Jacobs Engineering. He advised there is another project or two that another division of Jacobs is working on for the City, and it will take those projects to conclusion. Mr. Dan Lewin, 135 Magnolia, stated the City has wasted $3 million on a project that failed before it got started. He said the first thing that needs to be done is to get rid of the City Manager and Utilities Director because they told the Board what was going on and the Board approved the contract. He said he does not like having to pay extra sales tax to fund a project that had funds for at one time. He pointed out the City is not growing so it does not have to have more water. Director Maruthur said she would like to see a change on bullet no. 6, which says “all major decisions and project milestones developed pursuant to these principles shall be reviewed and approved by the Board of Directors, and any deviation therefrom shall be directed by the Board.” She said she objected to the wording, and it should state either the project manager or department head and definitely the City Manager who should be notifying the Board should there be a work order change that is significant or a problem or red flag or denial. She noted she does not think it is the Board’s job to micromanage the City and does not think the Board should be reviewing the contracts. City Attorney Brian Albright said that he did not interpret that to say the Board is supposed to review contracts but is saying that the City Manager or project manager will bring the major decisions and project milestones to the Board for its consideration to be reviewed and approved. Director Maruthur stated that is says principles shall be reviewed and approved by the Board of Directors. City Attorney Brian Albright explained that all major decisions developed pursuant to the principles would be brought to the Board, not the principles. Director McCabe said he understands that during the course of a project, there may be items that come up which were not contemplated and might have a cost associated with those. If those were to present themselves prior to the City proceeding in a new direction to address this problem area or this new discovery that was unanticipated, that item would come back to the Board and be 21 reviewed and approved. He said he did not consider that micromanaging and believes it is a good provision. Director Maruthur stated she would like to see the resolution worded as Director McCabe stated. She added the City had reports from the Arkansas Department of Health, and they were not brought to the Board’s attention; and the Board was unaware of what actually was going on. City Attorney Brian Albright pointed out what Director McCabe gave was an example of what a major decision would be. Director Maruthur stated that it should be revised to state that the City Manager shall review or notify the Board of Directors of any deviations. She stressed that she does not like the wording. City Attorney Brian Albright said the City Manager shall notify the Board of any major decisions or changes relative to a project. City Manager Lance Hudnell stressed at a work session, there were five slides in the Powerpoint presentation that dealt with Health Department letters. Also, there was a work session prior to all of this where the letters of the Health Department were specifically dealt with in a Powerpoint presentation before the Board; and there were five specific slides that related to those letters. He mentioned that was brought to the Board’s attention. Director Maruthur replied they were told there was not a problem, and this was something that was going to be worked out. City Manager Lance Hudnell explained the intent was that all of these principles are outlining the actions that the City is going to take. He stated his intent was that the City would create a set of milestones with regard to this project as it moves forward and that it would present those milestones to the Board in a project format as the City moves forward. He said if there were any deviations to that work plan, then staff would bring those deviations back to the Board. Director McCabe said he thinks this is worded very well and pointed out that any deviation that is going to bring a new cost or different approach, will come back to the Board. After discussion on the wording of bullet No. 6, a motion was made by Director Maruthur, duly seconded by Director Keheley, to amend it by adding “city manager or project director,” and “problems.” 22  Director Keheley questioned bullet no. 3 regarding seeking new sources of raw water, priorities shall be given to Lake Ouachita. She said that is only eight million gallons a day, and there presently is no definite timeframe for any response from the Corps of Engineers; and it is a very low priority it seems for them to address the City’s need. She stated she would like for the City to proceed as soon as possible and take some steps to get an answer and proceed with the expanding of the Ouachita Plant. She pointed out in the resolution in March, the Board directed staff to take immediate steps and proceed with expanding and improving the Ouachita Plant. Mr. Steve Mallett, Deputy City Manager for Public Works and Utilities, advised that the study they have to do to be able to give the City an answer through the Mid-Arkansas Water Alliance and individually through the City’s own request for allocation is not budgeted in 2011 or 2012; and it may be 2013 before they can consider that again. He advised that will be an 18-month study and looking at 2015 before the City may get an answer. Director Keheley asked if he was waiting until 2015, and Mr. Mallett advised that he was not. He added that the MAWA Board Meeting will be held in Hot Springs on June 15, and representatives from the Corps of Engineers will also be here; and it may lead to a visit to Vicksburg to talk to the Colonel about some other ways to assist in funding that study. He advised if it is a budgeting issue, the MAWA and the City of Hot Springs could consider help fund that so this can be done in a timely manner. Director Garcia stated the resolution passed in March that terminated the Jacobs Engineering contract on south Lake Hamilton included some additional actions, and it is her understanding that the City does have some current activities regarding the accounting and auditing of the contract that is in process. She noted that the City does not have the results of those yet so there are activities occurring. City Manager Lance Hudnell advised with regard to the close-out of the former contract, the City has received the final bill, which has been audited; and the external auditor hopefully this week is going to complete the audit on the whole amount which the City received the additional back-up documentation from Jacobs. Director Garcia pointed out the City cannot use funds available in the Water in the General Fund and could not utilize the money in the Water and Utilities to fund the deficit for the Higdon Ferry widening project. City Manager Lance Hudnell said to be technically correct, he does not know of any city that has ever done it. He advised there is a little provision in state law that says if the City can show a surplus in those funds, then it goes through a big procedure; and it can. He pointed out if that were 23 done, then the City would be indicating that its rates are too high. However, he does not recommend that. City Attorney Brian Albright advised there is an amendment on the floor from Director Maruthur (bullet no. 6), duly seconded by Director Keheley, that the City Manager shall present all major decisions and project milestones or problems developed pursuant to these principles and shall be reviewed and approved by the Board of Directors, and any deviation therefrom shall be as directed by the Board. Director McCabe commented that City Manager Lance Hudnell is an executive, and the term “problem” is problematic for him because executives deal with problems every day and questioned at what point does a problem become significant to where he has to report to the Board. Also, the word “problem” gives him no direction; and he is set up for failure. Mayor Carney pointed out in a conference she attended, they said most of the things that are called problems are just decisions that need to be made so probably there are not that many problems but are just decisions that need to be made. Mayor Carney then called for a vote on the amendment; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Keheley, Garcia, and Carney, total 5. Voting “no”: Directors McCabe and Daniel, total 2; motion carried. Mayor Carney then called for a vote on the motion to approve the resolution, as amended; 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, as amended. 15 Proposed Resolution No. R-11-87 A resolution entitled, “A RESOLUTION AWARDING A CONTRACT TO ON-LINE CONSTRUCTION FOR WASTEWATER PUMP STATIONS - PROJECT 10B; AND FOR OTHER PURPOSES,” 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. 24  Upon discussion, Mr. Steve Mallett, Deputy City Manager for Public Works and Utilities, advised that this resolution awards a contract for wastewater lift station upgrade, Project 10B, to low bidder, On-Line Construction, in the amount of $261,044. He stated that on April 2010, Project 10A, was awarded which included mechanical and electrical improvements for the first 27 pump stations in the wastewater system, and this work is nearing completion. Project 10B includes primarily piping replacements of six of the major pump stations, and this effort is part of the overall I&I project development to ensure compliance with EPA mandate as it relates to litigation of overflows in the Administrative Oder. This project is funded through the existing wastewater bonds. On-Line Construction is a locally based company and based on past experience and a favorable bid price that the City received, he recommends awarding the contract to On-Line Construction. There were five bids ranging from the low bid from On-Line Construction to a high bid of $321,900. The engineer’s estimate from Garver Engineers was $310,600. Director Keheley asked if the City Attorney has approved and reviewed the contract, and City Attorney Brian Albright advised that he had. 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. 16 Proposed Ordinance No. O-11-11 An ordinance entitled, “AN ORDINANCE ACCEPTING AND NAMING OVERSITE STREET AS A PUBLIC STREET; 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 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 Daniel, duly seconded by Director Jones, that the ordinance be adopted as read. 25  Upon discussion, Mr. Denny McPhate, Public Works Operations Director, stated the recommendation is to accept the street right-of-way Deed of Dedication and also approving the naming of Oversite Street and to accept Oversite Street for city maintenance of the street and right-of-way with conditions. Mr. John Selig, on behalf of Oversite, LLC, is requesting that the City accept a Deed of Dedication for street right-of-way and naming and accepting Oversite Street for City maintenance. He reported the City’s Engineering Division has conducted an inspection, and this street meets city specifications with the exception of the requirement of five-foot sidewalks that are required on both sides of the street and that there be right-of-way dedication of 50 feet for commercial street acceptance. He stated there are existing property owners located on the north and south sides of the existing street that will not facilitate more than a 40-foot right-of-way dedication. There are seven 5" diameter trees and phone and cable junction boxes that would interfere with sidewalk installation on the south side of the street. There are three 5" diameter trees located on the north side of the street that would interfere with sidewalk installation. Staff’s recommendation is to accept the Deed of Dedication, the naming of the street and acceptance of street and right-of-way maintenance with a condition that the owner install a five-foot sidewalk along the north edge of the street the entire length, including ADA ramps. This would include the passing of a final construction inspection by the City’s Engineering Department. The sidewalk installation on the north side of the street will require removal of three trees but will save the seven trees on the south side of the street and also require utility junction box relocations on the south side of the street. He stated the ordinance is written with the conditions that this ordinance shall be effective from and after the completion of the following conditions; provided, further, that should said conditions not be completed by June 30, 2015, this ordinance shall be null and void: (a) installation by Oversite, LLC or its assignee, of a five-foot wide sidewalk along the entire length of the north right-of-way line of Oversite Street, the same being 302.16 feet and including ADA ramps, said sidewalk to be built in accordance with applicable City codes governing installation and construction of sidewalks; and (b) filing of a duly approved final plat, including the dedication and extension of Oversite Street west to Files Road as depicted in Attachment B hereof (preliminary plat for Oversite Commercial Subdivision), as said plat may hereafter be amended by the Planning Commission. Mr. Selig has made application to the Planning Commission at its next meeting to be heard on the extension of this street. Director Keheley asked if the Fire Department and all of their vehicles turn can around in the driveway. Mr. McPhate replied that they can, and he asked the Fire Marshall to take a look at it and his response was they were satisfied with the layout. Director Keheley asked if the adjacent property owners have given an easement, and Mr. McPhate replied that they did not have to have an easement 26 just to turn the truck around. Director Keheley asked if the survey has been approved and is by a registered surveyor, and Mr. McPhate replied that it has. City Manager Lance Hudnell clarified that this ordinance does not become effective until the street goes on through so that is why there would be no need for the cul-de-sac. He said the conditions will not change from what they are today because the City will not accept it until the other plat is done and filed and the street is going to go on through. Director McCabe said one of his initial concerns was the street as configured now was not built to conform to existing standards for streets in width and construction, but it is the proper width so when going out to the next section, a widening of that next section of road will not be seen.. Mr. McPhate replied that is correct, and it is 25 - four foot of pavement from gutter line to gutter line and two feet from the gutter line to the back of curb so there is 28 feet from back of curb, back of curb, which is city standard. Director McCabe pointed out that the City is making a requirement to meet a sidewalk standard, and the only other variance was 40 foot of right-of-way versus 50 feet. He stated the utilities are already in, and the City can work with that. 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. 17 Arkridge Road Utility Relocation Funding City Manager Lance Hudnell explained this is a report to the Board regarding Arkridge Road utility relocation funding Mr. Steve Mallett, Deputy City Manager for Public Works and Utilities, stated in 2010, the former County Judge Larry Williams was successful in receiving state-aid funds from the Arkansas Highway Department to improve Arkridge Road, which is a county road that leads from Highway 128 to Garvan Gardens. The City was aware of the project and received construction plans for the roadway project; however, the plan only contained a plan view of the project and did not include a detailed profile of the project that would show cut and fill. He said it did identify utilities that required relocation, and the City committed to those, which was included in the budget for 2011. City staff attended two separate pre-construction meetings sponsored by the Arkansas Highway and 27 Transportation Department on January 21, 2011, and February 23, 2011, and again committed to relocating items as noted on the plans. That basically involved some services, a couple of fire hydrants, and a few places where it was known there would be some drainage issues. The project has been started by the contractor, and the City has been on site and performed a portion of the required utility relocations but has now been told that due to undercuts that will be required for the roadway and/or cross drains, there will likely be additional relocations necessary, some of which could involve up to 2,600 feet of water and wastewater main relocation. The estimated cost for these improvements is around $80,000 ($40,000 for water and $40,000 for wastewater). Staff feels this is a worst-case scenario and cannot be certain as to the exact scope of work that will be required to facilitate the project; and without detailed roadway plans, it is merely an educated guess. As the contractor gets to a point, they will pothole the City’s line. If the line is too shallow, then they will ask the City to lower it. If the City gets too many of those in a row, it will likely be relocating the entire line. He advised until they actually go out and physically start the work, the City will not know. He said they would like City staff to be available onsite and ready at their call to respond accordingly as they find certain situations. He noted there is funding in the water and wastewater capital line items for projects like this, but this specific one of this potential size was not included. He advised the City does not have to appropriate any money from a budget that is not there, and there is money budgeted. He wanted to make the Board aware and direct staff as to whether or not to include this project as part of the funding. He said there is over $1 million in the Water Capital Fund and in excess of $40,000 for the Wastewater Fund; therefore, funding is not an issue. However, the City does not want to redirect funds that are already obligated in the budget to this project with getting that direction from the Board. He said this is provided as an option, but there are other options and basically not committing to any additional funding at all and just holding to what the City originally committed to. As an option, he believes that would jeopardize the project. He commented that the City has not formally requested from the Quorum Court for any funding from the County; however, the judge has relayed that they have spent in excess of $400,000 to-date and that should cover their portion of the effort. He stated the City can also attempt to perform this work with in-house labor as it continues to do, but that would substantially delay the project and probably take the City off important projects. If the Board decides to move forward with responding to this project as required, staff would request using in-house contract labor to do that. The City would hire them on an as-needed basis on a labor and material and equipment rate that has been established. He advised this will be the route that staff would go if the Board directs staff to move forward with this project under those circumstances. 28  Director Garcia questioned the total cost of this construction project, and City Manager Lance Hudnell replied that it is around $520,035.97 and scheduled completion date is November 18, 2011. Director Garcia questioned if the Highway Department typically takes projects without detailed plans, and Mr. Mallett replied that they do not; and there has been quite a bit of discussion on that. He advised they let that responsibility lie with the County, and the County was trying to minimize the cost; and the project plans they received were from Traffic and Roadway Engineers, but they were only plan view; and it was obvious to tell from the top where the City needed to move its surface structures. He advised no consideration was given at that point to where they would actually be digging. Director Keheley pointed out in the Board Action Request Form, he stated the estimated cost for these improvements is estimated at around $80,000 ($40,000 for water and $40,000 for wastewater). She said there is a sentence that states “while we feel the estimate is the worst-case scenario, we cannot be certain as to the exact scope of work that will be required and without detailed roadway plans, it is merely an educated guess.” She asked if this would not be approving a blank check because this could go more than $80,000. Mr. Mallett replied that is why he would recommend setting a cap. City Manager Lance Hudnell added it is capped by the amount the City has in the budget, but staff would feel very comfortable if she would put in her motion $100,000. Director Keheley asked if the Board could not get detailed engineering plans and can the County not have any good final plans so the City would the amount. Mr. Mallett advised that is not their intention to do so at this time. He stated they have already let a contract based on this so the City has a contractor who went out and looked at it from the plans they had knowing what they would have to do to build that road and that is how they built it. He mentioned they knew how far they were going to cut regardless of what the plans may or may not show. Director Keheley asked if there were no engineering plans, and Mr. Mallett replied all staff had was a sketchy plan view based on the plans that were given by the Highway Department. City Manager Lance Hudnell added the City is being directed by the Highway Department. He stressed that the City is not writing a blank check. Mayor Carney said she talked with County Judge Rick Davis, and they have already overspent what they expected. City Manager Lance Hudnell stated if the Board wants staff to proceed with the project beyond what it had previously told, the Board needs to pass a motion to proceed in an amount not to exceed $100,000. 29  A motion was made by Director Maruthur, duly seconded by Director Daniel, to proceed in an amount not to exceed $100,000. Upon discussion, Director Garcia questioned last year when the City agreed to this project, in that agreement if there was a dollar amount included; and Mr. Mallett advised there was not. He added there were only the minor reallocations that he was aware of, and it was an item he knew staff could perform in-house. City Manager Lance Hudnell pointed out at budget time, this is one of the projects staff discussed regarding the funds would be used for at that minimal amount. However, it is not the minimal amount; and that is why staff is bringing it back to the Board. Mayor Carney then called for a vote on the motion to proceed in an amount not to exceed $100,000; and upon roll call, the following voted “aye”: Directors Maruthur, Jones, McCabe, Garcia, Daniel, and Carney, total 6. Voting “no”: Director Keheley; motion carried. 18 Proposed Ordinance No. O-11-12 An ordinance entitled, “AN ORDINANCE ADOPTING THE ARKANSAS MECHANICAL CODE; 2010 EDITION; REPEALING CERTAIN ORDINANCES (ORDINANCE NO. 5328) AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Jones, duly seconded by Director Garcia, 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; Ms. Kathy Sellman, Planning and Development Director, advised that on January 13, 2011, the Construction Trades Advisory Committee unanimously voted to recommend that the Board adopt the 2010 Mechanical Code, as amended. She stated the State adopts new codes to stay current with changing technology and construction materials. When the State adopts, the Chief Building Official reviews the changes to assure they are consistent with the adopted Hot Springs Codes. Working without permits and calling for inspections before work is code compliant are two ongoing problems. She said the City’s 2010 ordinance increases penalties for working without permits and changes from 30 a double fee to a triple fee, and it changes the fee for reinspections of noncompliant work from $30 to $40. She recommended approving the ordinance adopting the 2010 Arkansas Mechanical Code consistent with the State of Arkansas Codes, as amended. 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. 19 Proposed Ordinance No. O-11-13 An ordinance entitled, “AN ORDINANCE REPEALING NO. 5753 AND AMENDING ORDINANCE NO. 5715 TO INCLUDE AN EXEMPTION FOR CERTAIN LAND DIVISION PLATS; 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 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 Daniel, that the ordinance be adopted as read. Ms. Kathy Sellman, Planning and Development Director, advised that the Planning Commission advertised and considered testimony at a public hearing held April 14, 2011, as well as at a hearing on June 10, 2010. At the April 14 meeting, several dozen people attended the hearing; however, there was no testimony for or against. By unanimous vote, the Planning Commission recommends that the Board approve the ordinance amendment. In addition to that, there was a meeting with title company representatives on Friday, June 4, to explain the proposal and to answer questions regarding the proposal. The proposed ordinance does not impose additional approval and recording requirements, but it establishes where the line is when administering subdivision increment requirements. He noted this proposed ordinance applies citywide in all districts and within the planning area, and it applies to recorded but unimproved land divisions established by the public record before June 1, 2011. Specifically, a difference there is to add a new definition for Lots of Record. She then read the definition. She noted that an easement shall not constitute a Lot of Record. 31  City Attorney Brian Albright noted that a substitute ordinance was distributed to the Directors, regarding the definition under Section 3, as a result of the meeting with representatives from the title company, which included Mr. Guy McDill from Lenders Title; Mr. Les Warren from Hot Springs Title; and Mr. Johathan Martin representing Garland County Title. Language was added regarding recorded or unrecorded deeds of contract (Contract for Deed is a traditional way of doing owner/financing of buying and selling of property.) At their request, this additional definition was added to cover the unrecorded and recorded contracts for deed. Ms. Sellman announced that this language addition is still consistent with Planning Commission’s intention regarding this amendment. She noted that the Planning Commission recommends that the Board approve an ordinance repealing Ordinance No. 5753 amending the subdivision code to establish a definite point in time and would be June 1, 2011, for Lots of Record. Mayor Carney then called for a vote on the motion to adopt; and upon roll call, the following voted “aye”: Directors Jones, Keheley, McCabe, Garcia, Daniel, and Carney, total 6. Voting “no”: Director Maruthur; motion carried. Whereupon the ordinance was declared adopted. 20 Proposed Ordinance No. O-11-14 An ordinance entitled, “AN ORDINANCE WAIVING REQUIREMENTS OF COMPETITIVE BIDDING FOR WATER PIPELINE LOCATING SERVICES WITH ARKANSAS UTILITY PROTECTION SERVICES, INC.; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director Jones, duly seconded by Director Maruthur, that the rules be suspended and the ordinance be read for the first time by title only; and upon voice vote, the motion unanimously carried. The ordinance was then read for the first time by title only; and upon the question “Shall the ordinance be adopted as read?” Mr. Steve Mallett, Deputy City Manager for Public Works and Utilities, pointed out that this ordinance and the next ordinance are companion ordinances (one is for water and the other one is an identical one for wastewater). He advised that the City requests waiving competitive bidding for work related to field locating of water pipelines and wastewater pipe lines and award a contract for pipeline locating to Arkansas Utility Protection Services (ARKUPS). He advised the City is required 32 by state law to locate all the water and wastewater pipelines upon notification of any planned excavation near these facilities, which is part of the Arkansas One-Call law. He stated historically, the City has done this work in-house with city staff. All other local utilities (Entergy, Centerpoint, Resort, AT&T, etc.) have elected to utilize ARKUPS to locate the underground utilities as the price they offered is less than what it would take to perform internally. The pricing advantage is that ARKUPS is already on-site locating other utilities and can add additional locates without adding additional transportation and limited personnel costs. Through the City’s GIS and a lot of work in rectifying the City’s maps, the City now feels that it can provide them a reasonably accurate map they can utilize in the field. They will be able to locate a large majority of the City’s pipelines but will also continue to rely on help from the City on the difficult ones they cannot locate. He said they will only guarantee and be responsible for those lines that have been confirmed locations by using their tracing equipment. He commented they offered on the water $12.53 per water locate, and staff does not believe the City can come close to covering this cost in-house and can get a good service from them. He pointed out they are the only agency that provides this service in this area, which is the primary reason for waiving competitive bidding. He stated they perform this type of work statewide and have a good working relationship with all the other utilities. Staff recommends that the Board approve these contracts. Also, the Board approved in the 2011 Utility Administration budget $120,000 to cover the water and wastewater services. Director McCabe questioned the difference in the pricing for locate on water versus wastewater. Mr. Mallett advised that it is cheaper for the wastewater locate because most of that if it is gravity, the manholes can be visually seen and knows there is a straight line between the two. Whereas, with water, a hydrant and a valve may be seen; but it is unknown what that may do underground; therefore, it takes a little longer to locate water versus wastewater. He said it is $12.05 for wastewater and $12.53 for water regardless if they are inside or outside the city limits. Mayor Carney then called for a vote on the motion to adopt; and upon motion of Director Jones, duly seconded by Director Keheley, that the ordinance 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 ordinance was declared adopted. 21 Proposed Ordinance No. O-11-15 33  An ordinance entitled, “AN ORDINANCE WAIVING REQUIREMENTS OF COMPETITIVE BIDDING FOR WASTEWATER PIPELINE LOCATING SERVICES WITH ARKANSAS UTILITY PROTECTION SERVICES, INC.; AND FOR OTHER PURPOSES,” was taken from the agenda for consideration. A motion was made by Director McCabe, duly seconded by Director Daniel, 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 Keheley, duly seconded by Director Maruthur, that the ordinance 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 ordinance was declared adopted. OTHER BUSINESS 22 Board of Directors Items for Discussion Mayor Carney gave a report on the meeting concerning the various Mayors of Garland County in connection with the upcoming appointments to the Garland County Equalization Board. She said Garland County currently has a five-member Equalization Board, and the Mayors decided to appoint Mr. Clint Bailey to the Equalization Board; however, should the County Judge choose to extend the Equalization Board to seven members, then the Mayors would also like to appoint Mr. B. J. Smith, who is already a member, to said Board. There was a discussion as to the increase in the County population from 70,000 to 90,000. Therefore, they can probably have two, which will be left to the County Judge to decide. Director McCabe pointed out that a gentleman tonight said there should be a time limit on Directors, and the Directors need to recognize that there is a time limit of five minutes per item on Directors, which is in the Board’s rules. He said if he is talking longer than five minutes, the Mayor needs to call him down, but it needs to be universal. Director Daniel announced that his oldest grandson was drafted into pro baseball today and went to the Detroit Tigers. 34 23 City Manager’s Report City Manager Lance Hudnell gave the following report: 1. Wednesday, June 15, is the Arkansas Municipal League Conference. Hot Springs will be hosting the City breakfast. Any Directors who can assist need to be at Exhibit Hall “A” on Thursday morning, at 7:15 a.m. The City’s gift to the delegates this year is a Mountain Tower pass. 2. He recognized Ms. Tonya Cochran, Sanitation employee, who received the Human Relations Award of Excellence; and for several years, she has participated in the City Employee Picnic and done an excellent job in spearheading that event. 3. Seaport Airlines will be going to Dallas, Texas. The City will have to review proposals for essential air service in the near future and makes a recommendation to FAA. There is another airline that is also bidding on this service, but the City is pleased with Seaport. If the Directors have any feedback, they may contact him or Airport Director George Downie. 4. Mountain Xpress is underway for citizens who may have family in town and would like to tour downtown and/or the Mountain Tower. It runs every 30 minutes and is on the City’s website as far as the route. 5. Hollywood Park will be temporarily closed for clean-up from the storm damage. 6. At the next agenda meeting, there will be an executive session to review the applicants for appointments to boards and commissions, and the applications have previously been distributed to the Board. He noted there are two new applicants and two are repeats, so the Board could just interview the two new ones if it desires. Mayor Carney questioned if the Board needs to re-interview the two that were previously interviewed. Director McCabe said he thinks the Board needs to be consistent and interview everyone. 35  Mayor Carney said it should be their option and ask them if they want to be interviewed again. City Manager Lance Hudnell stated it is left to the applicants, not the Board, if they want to come for another interview. 7. E-Day Festival was a great success last Sunday; and there will be some excerpts airing on the “Talk Business,” Robbie Brock show at 10 p.m. Sunday, June 12. 8. He distributed a memo regarding Board Minutes and would like some feedback with regard to future Board Minutes due to a transition. Mr. Hayes, counsel with the Arkansas Municipal League, recently made a brief presentation on this issue. 9. The auditor is almost finished with the Jacobs Engineering audit from the standpoint of looking at the detail they submitted and hopefully that will be done this week. 10. Regarding the announcement made by Mayor Carney about the Garland County Equalization Board, everything that is done is in accordance with state law, which dictates the procedure. 24 ADJOURNMENT There being no further business to come before the Board, a motion was made by Director Garcia, duly seconded by Director Daniel, that the meeting be adjourned; and upon voice vote, the motion unanimously carried. The meeting adjourned at 10:20 p.m., to meet again on Tuesday, June 21, 2011, at 7:00 p.m. ATTEST: _____________________ APPROVED:__________________ Lance Spicer, City Clerk Ruth Carney, Mayor 36