MINUTES
BOARD OF DIRECTORS MEETING
SEPTEMBER 6, 2005, AT 7:00 P.M.
The regular meeting of the Board of Directors was held on Tuesday, September 6, 2005, at
7:00 p.m., Board Chambers, City Hall, with Mayor Mike Bush presiding.
The invocation was given by Ms. Kay Adams, and Pledge of Allegiance to the Flag was led
by Mayor Bush.
Mayor Bush called the meeting to order at 7:00 p.m.
1
Roll Call
Roll call was as follows: Present: Directors Peggy Maruthur, Elaine Jones, Steve Smith,
Carroll Weatherford, Bill Edwards, Tom Daniel, and Mike Bush, total 7.
2
Approval of Agenda
A motion was made by Director Edwards, duly seconded by Director Maruthur, that the
agenda be approved.
Upon discussion, City Manager Kent Myers requested that Item No. 23 (Proposed Ordinance
No. O-05-75 Calling a Special Election in the City on the Question of Whether or Not Wagering on
Electronic Games of Skill May be Conducted by Oaklawn Jockey Club on the Grounds of Its Race
Track Park Site in the City) be moved to the first item under New Business and add Proposed
Ordinance No. O-05-77 (An Ordinance Waiving Certain Fees, Procedures, and Regulations Related
to Disaster Relief Efforts as a Result of Hurricane Katrina) to the agenda as Item No. 27.
A motion was made by Director Jones, duly seconded by Director Daniel, that the agenda
be approved, as amended; and upon roll call, the following voted “aye”: Directors Maruthur, Jones,
Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried.
3
Approval of Minutes of August 15, 2005 Board Meeting
A motion was made by Director Edwards, duly seconded by Director Daniel, that the minutes
of the August 15, 2005 Board Meeting be approved; and upon voice vote, the motion unanimously
carried.
4
Recognition of Guests
Director Edwards recognized his sister, Ms. Margaret Bennett, who has worked for Oaklawn
Park for over 30 years.
Mayor Bush recognized the residents of the community for the support everyone has shown
for the victims of Hurricane Katrina. On behalf of the City, he welcomed the evacuees who have
arrived from Louisiana, Mississippi and Alabama, noting that the City wants to do everything
possible to make sure their needs are addressed. He asked that they advise him or any other City
official if they can assist them during their stay in Hot Springs.
Director Maruthur announced that on Sunday, September 11, at 6 p.m., Magic Springs, there
will be a fund-raiser for the victims of Hurricane Katrina called “Hurricaide.” There is no admission
price, and the donation is $10 for a wrist rubber band, which has been donated by Alliance Rubber
Company. The only items that will be accepted are financial, and there will be live entertainment.
They are working on entertainment from Branson, Missouri, and other areas, plus there will be local
entertainers. For more information, individuals may call Regions Bank or Magic Springs, and 100
percent of the money raised will go toward the victims of the hurricane.
CONSENT AGENDA
The Consent Agenda consisted of the following:
5
Public Safety Report (August 24, 2005).
6
Proposed Resolution No. R-05-262 Approving Certain Bid Awards (a) Tapping Machine Utilities [awarded to Hughes Supply in the amount of $13,386.91]; (b) Blended
Polyphosphates - Utilities [annual supply contract awarded to CalciQuest]; (c) Pipe
Adaptors- Public Works [annual supply contract awarded to Hughes Supply]; (d) Property
Cutting/Clearing - Code [annual supply contract awarded to Aces, Inc.]; (e) Trailer Rebuild Utilities [awarded to Hibilt in the amount of $13,510]; (f) Asphalt Cold Mix - Public Works
[annual supply contract awarded to Rogers Group as primary and Jay-Pac as secondary]; (g)
Board of Directors Meeting
2
September 6, 2005 at 7:00 P.M.
Janitorial Service - Various Departments [annual supply contract awarded to OJ’s,
Servicemaster, Dow and Elliottt]; (h) Uniform Service - Various Departments [annual supply
contract awarded to Cintas]; and (i) Wireless System - Parks [awarded to FiveComm, LLC,
Change Order in the amount of $2,775].
7
Proposed Resolution No. R-05-263 Appropriating Certain Revenue from Arkansas Rural
Risk Association for the Purchase of Fire Protection and Rescue Equipment for the Hot
Springs Fire Department.
8
Proposed Resolution No. R-05-264 Authorizing the Mayor to Execute Amendment No. 1
to the Contract with McLaughlin Engineering for Engineering Services Related to the Music
Mountain Water Pump Station Project.
9
Proposed Resolution No. R-05-265 Approving the Extension of Hot Springs Municipal
Water and Wastewater Service for Lookout Bay Condos, 223-225 Lookout.
10
Proposed Resolution No. R-05-266 Accepting a Grant from the Federal Aviation
Administration (FAA) for Rehabilitation of Runway 5/23 at the Airport.
11
Proposed Resolution No. R-05-267 Authorizing the Mayor to Execute a Transfer
Agreement Between the United States of America (Federal Aviation Administration) for
Certain Improvements at the Airport.
12
Proposed Resolution No. R-05-268 Authorizing the Mayor to Execute Lease Addendum
No. 1 with the U. S. General Services Administration for Office Space Located in the
Terminal Building at the Airport.
13
Proposed Resolution No. R-05-269 Authoring the Filing of a Grant Application with the
Arkansas State Department of Parks and Tourism and Committing Resources of the City of
Hot Springs, Arkansas (Entergy Park and Hill Wheatley Park); and Repealing Resolution
No. 5952.
Board of Directors Meeting
3
September 6, 2005 at 7:00 P.M.
14
Proposed Resolution No. R-05-270 Authorizing the Mayor and City Manager to Execute
a Memorandum of Understanding with the Arkansas Game and Fish Commission for Two
Fishing Piers at Entergy Park.
15
Proposed Resolution No. R-05-271 Accepting a Grant from the United States Department
of Transportation and the Arkansas State Highway and Transportation Department for Public
Transportation Grant Assistance Provided Under USC §5303 - Metropolitan Planning
Program (Fiscal Year 2006).
16
Proposed Resolution No. R-05-272 Awarding a Contract to National Park Community
College for Employee Development Training.
17
Proposed Resolution No. R-05-273 Authorizing Filing and Accepting a Grant with the U.S.
Department of Justice Pursuant to the Bureau of Justice Assistance, Bulletproof Vest
Partnership Program.
A motion was made by Director Daniel, duly seconded by Director Maruthur, that the
Consent Agenda be approved.
Upon discussion, City Manager Kent Myers stated that a citizen has signed to address the
Public Safety Report; therefore, that item needs to be removed from the Consent Agenda for separate
consideration.
A motion was made by Director Edwards, duly seconded by Director Maruthur, that the
Consent Agenda be approved, as amended; and upon roll call, the following voted “aye”: Directors
Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously
carried.
NEW BUSINESS
23
Proposed Ordinance No. O-05-75
An ordinance entitled, “AN ORDINANCE CALLING A SPECIAL ELECTION IN THE
CITY OF HOT SPRINGS, ARKANSAS, ON THE QUESTION OF WHETHER OR NOT
WAGERING ON ELECTRONIC GAMES OF SKILL MAY BE CONDUCTED BY OAKLAWN
JOCKEY CLUB, INC. ON THE GROUNDS OF ITS RACE TRACK PARK SITE IN HOT
Board of Directors Meeting
4
September 6, 2005 at 7:00 P.M.
SPRINGS, ARKANSAS, AS AUTHORIZED BY ACT 1151 OF THE 2005 REGULAR SESSION
OF THE ARKANSAS GENERAL ASSEMBLY; AND PRESCRIBING OTHER MATTERS
PERTAINING THERETO,” was taken from the agenda for consideration.
A motion was made by Director Edwards, duly seconded by Director Jones, that the rules
be suspended and the ordinance be read by title only; and upon voice vote, the motion unanimously
carried. The ordinance was then read by title only; and upon the question “Shall the ordinance be
passed as read?” and upon motion of Director Weatherford, duly seconded by Director Maruthur,
that the ordinance be passed as read.
Upon discussion, Mayor Bush explained this ordinance only sets an election date so the
citizens of the community may vote on this issue.
Assistant City Attorney Brian Albright advised that the Board has a policy of limiting the
speakers to three minutes; however, state statute requires that the franchise holder present evidence
of the economic impact of this election. For that purpose and the reason that the statute requires it,
he requested that the Board waive the three-minute limit on the franchise holder’s presentation.
Mr. Don Schnipper, attorney with the firm of Wood, Smith, Schnipper and Clay, representing
Oaklawn Jockey Club, Inc., stated that on March 22, 2005, Act 1151 (The Local Option Horse
Racing and Greyhound Racing Electronic Games of Skill Act) of the 2005 Arkansas General
Assembly became law. However, it did not contain an emergency clause and, therefore, did not
become effective until August 12, 2005. He advised that the Act allows the Board to schedule a
special election on the issue of authorizing additional electronic games of skill to be conducted by
Oaklawn Jockey Club at its race track site. The Board’s action follows the filing by Oaklawn of the
request for the Board to schedule this election. He said the only issue Oaklawn is requesting is that
the Board set the election. He explained that under Act 1151, there is a requirement that the
franchise holder present to the Board evidence of anticipated benefits to economic development, job
creation, tourism and agri business, which may result directly or indirectly from such authorization.
With their filing, there is a proposed ordinance and three letters from the following: (1) the Arkansas
Horsemen’s Benevolent and Protective Association; (2) the Arkansas Thoroughbred Breeders’
Horsemen’s Association; and (3) Dr. Lee Cyphers, a local veterinarian who works on the back
stretch during the live meet and works the farms around Garland County during the remainder of
the year. Mr. Schnipper stated that it is his opinion and those at Oaklawn that these letters are ample
evidence of the benefits this proposal would have on the agri business in the area.
Mr. Eric Jackson, General Manager of Oaklawn, explained they are calling this the Hot
Springs Oaklawn Community Benefits Plan. He spoke of the negative effect the opening of casinos
in Mississippi and Louisiana had on Oaklawn Park about 12 years ago. In 1989, 1990,1991 and
Board of Directors Meeting
5
September 6, 2005 at 7:00 P.M.
1992, business was growing; but the casinos opened; and for the next eight or nine years, they lost
approximately 1/3 of their business at Oaklawn Park and laid off about 300 people. Hotels,
restaurants and shops also had lay-offs. In 2001, Oaklawn introduced an electronic game of skill
known as instant racing; and the effects were immediate and helped them build up their purses
which helped attract better horses, and better horses attract better racing fans. Within the last few
years, over one-half of the states with race tracks are allowing their tracks to offer some other form
of wagering similar to the electronic games of skill that they are presenting tonight. He said if
Oaklawn is going to stay competitive, they are going to have to find a way to supplement their
purses. Every time someone makes a parimutuel wager at Oaklawn Park, a certain percentage of
that wager goes into the purse fund. This is established by negotiation with the Horsemen’s
organization, and the percentage is basically the same across the country. He stated if they had other
forms of wagering, they would have to collectively negotiate what percentage would go into the
purse fund from that as well. Louisiana, Oklahoma, Florida, New York, and over one-half of the
racing states have the same percentage that Oaklawn does from parimutuel wagering; but they are
now getting a percentage for their purse fund from other forms of wagering. He commented the
Constitution of the State of Arkansas will not allow them to have casino gambling, but this is not
a casino gambling proposal they are submitting tonight. He added this proposal is to allow Oaklawn
to have additional electronic games of skill to go with the electronic games of skill they already
have. If they have additional electronic games of skill, they believe it will improve their business
and other businesses in Hot Springs. He stated they took this to the Legislature, and the Legislature
reached three conclusions: (1) Oaklawn has to be able to meet their competition to stay in business,
which is what they are trying to accomplish by this measure tonight; (2) this is not an expansion of
wagering; Oaklawn already has electronic games of skill at the race track; and (3) this will give them
additional electronic games of skill and will be a significant expansion of benefits. He advised that
the Legislature questioned what would happen if they do not do this, and Mr. Jackson advised that
starting in 2006, because that is when other racing states will start impacting them, Oaklawn will
either go back to what they had in the 1990s; or they should see an upturn in their business, in
employment, in tax revenues and visitors to Hot Springs. The Arkansas Senate voted in favor of
this, as well as the Arkansas House; and Governor Huckabee allowed it to become law and take it
to the citizens in Hot Springs.
Mr. Jackson stated that total, additional employment will be approximately 1,000 jobs. Of
those 1,000 jobs, 250 to 400 will be at Oaklawn with full benefits. Total additional wages will be
approximately $25 million to $35 million coming into the community. Visitor spending will be
approximately $80 million. Construction impacts from new construction on housing to commercial
will be approximately $36 million. He noted that Oaklawn has been in existence for 102 years; but
during that time, there has never been a direct tax on wagering at Oaklawn Park. If this measure
passes, there will be a direct tax on wagering at Oaklawn Park. The two companies they engaged
(one from Boston and one from Chicago) said that the total new tax revenues to the County will be
Board of Directors Meeting
6
September 6, 2005 at 7:00 P.M.
approximately $700,000. The total new tax revenues to the City will be $2 million to $2½ million.
Although the Advertising and Promotion Commission does not receive a direct tax, when there are
additional visitors in Hot Springs, the Advertising and Promotion Commission will get its share; and
the additional revenue for the Commission will be approximately $1 million. Last year Oaklawn’s
purse distribution was $13 million, which was not at the upper echelons of racing but allowed them
to stay competitive during the time of the year they race. If this measures passes, an additional $8
million will go into their purse fund. A large amount of that will be spent in Garland County and Hot
Springs on the farms and all of the people who are in the care and maintenance of the thoroughbred
– total purses $21 million – and they cannot overlook the significant impact in Garland County.
In anticipation that this legislation will go to the people and the people will approve it, they are
bringing back the Arkansas Breeders’ Sales, which they have not had in a number of years. There
are two studies that say if this passes, they will generate an additional 1,000 jobs in the community.
Mr. Jackson explained if this measure passes, Oaklawn is going to set up a private foundation
(the Oaklawn Foundation for the Future of Hot Springs). They have asked the Chamber of
Commerce to join them in appointing the trustees to this independent Foundation, but Oaklawn will
not have a seat on this Foundation. Their wish is that one-half of the funds in the Foundation be
used to benefit education in Garland County, and that one-half of the funds in the Foundation be
used to benefit programs that help senior citizens in the community. Oaklawn’s only role will be
as a funding organization. They are working on a formula; and in general terms, the formula is
however much the entire direct tax is to the City and however much the entire direct tax is to the
County, Oaklawn will match that $.50 on the dollar and put those funds directly into the Foundation.
He said if this passes in November, the State of Arkansas has to do RFP’s, and rules and regulations,
which will take time. From instant racing, it took about three years from the time they introduced
instant racing until the time it started impacting the racing operation. He reported that Oaklawn has
agreed to seed this Foundation with $1 million, and there are additional restrictions on this initial
$1 million. Instead of one-half of this going generically for education, it will go specifically for
scholarships for Garland County students. The other one-half will go to work with the University
of Arkansas Medical Center, Dr. David Lipschitz, who has agreed in principle to use the other onehalf of this seed to bring a center on aging to Garland County. This Foundation will be a recruiting
tool for Hot Springs, for economic development, and for retirement and relocation.
Mr. Jackson added they already have an electronic games of skill so they are not going to
expand beyond that but going to add to what they already have. The benefits include preserving
jobs and enhancing racing at Oaklawn Park, creating new jobs and generating significant tax
revenues for the City and to benefitting the seniors and students. He noted there are many
organizations that have endorsed this proposal. He acknowledged Mr. Chris Polychron and Ms.
Kerry Owen, who are the co-chairs of this endeavor. Mr. Dan Messersmith, chairman of the
Chamber of Commerce; Mr. Dave Byerly, executive director of the Chamber of Commerce; Mr.
Board of Directors Meeting
7
September 6, 2005 at 7:00 P.M.
David Bartlett, president of GCEDC; Mr, Steve Arrison, executive director of the Advertising and
Promotion Commission; and Mr. Leon Milsap, horse owner and community leader, are behind this
effort and expressed appreciation to them.
Mr. Jackson reported that he received a phone call approximately three weeks ago from Mr.
Ed Hart at Magic Springs, who asked about the economic projections and said he was not sure the
kind of people that Oaklawn attracts match up with his visitors. He noted Oaklawn’s patrons are
older, have higher levels of disposable income, have a propensity to travel, and more inclined to be
female than male. He was not sure that matched the demographics of a theme park, and Mr. Hart
said that it was critical mass. By increasing the critical mass of tourists coming to Hot Springs,
Magic Springs will get its share. Therefore, Magic Springs endorses Oaklawn and will run ads on
their behalf. He stated there have been 200 community leaders step forward and say Oaklawn can
use their name.
Director Maruthur stated that the proposal sounds good and noticed he had two groups that
are targeted (seniors and scholarships for the young people). She commented that it appears if this
passes, it will have a positive impact on an influx of people and job security. She asked if there are
any provisions for infrastructure that would be needed to support an influx of people; and Mr.
Jackson replied that with this particular provision, the State and City will have additional tax funds;
also, Oaklawn should have additional revenues. He said that he believes they would be in an
excellent position to try to solve some of these infrastructure problems. He added that he would like
to reach out to the Board, if the Board is willing and this passes, to sit down and make that happen.
Mr. Don Schnipper stressed that the costs of this election are solely the costs of Oaklawn
Park, and the City invests no funds as far as this election is concerned. He requested that the Board
adopt the ordinance setting Tuesday, November 8, 2005, for the special election on the issue
authorized by Act 1151 of 2005 Arkansas General Assembly.
Mr. Gabe Allen, representing the Family Council Action Committee, distributed a report
entitled, “Highlights of the National Gambling Impact Study Commission.” He commented this is
an independent study commissioned by Congress and signed by President Clinton. He stated the
National Gambling Impact Study Commission made a short list of recommendations after a two-year
study. One of the things they specifically spoke to was race tracks propping up their profits with the
addition of casino-style gambling, and they said the Commission recommends that states should
refuse to allow the introduction of casino-style gambling into parimutuel facilities for the primary
purpose of saving a parimutuel facility that the market has determined no longer serves the
community or for the purpose of competing with other forms of gambling. He said this study was
commissioned before the proposal that is before the Board tonight, but they made a very strong
recommendation that this is not the thing to do. The reason they did is because the results they have
Board of Directors Meeting
8
September 6, 2005 at 7:00 P.M.
heard tonight are not borne out in fact. He stated that being a resident of the County, he does
shopping, etc. inside the city limits and has visited with many of the business owners who own
businesses in the City but live in the County who will not get a voice in this election. He pointed
out there are more people who do not have a choice than do have a choice. He noted that the
breeders and agri business, most of which are in the county, are not being allowed to vote on this
issue. He said the problem with this kind of project is that the revenues are immediate, but the
problems are not. Another recommendation by this commission is there is not a net gain in jobs or
per capita income in these type of situations. They did not specifically estimate the social costs but
said there are significant social costs. Their recommendation is that there is not a net benefit to the
community economically. He mentioned this is a bi-partisan commission appointed by Congress.
He stated that the people will be voting on a casino; and whether they are called games of skill, they
are gambling devices lined up side by side.
Mayor Bush stressed that the only issue the Board is voting on is to set an election date so
the citizens of Hot Springs can vote on this issue.
Mr. Allen said he did not disagree, but the Board is deciding whether or not to allow the
voters to vote on allowing a casino.
Ms. Martha Adcock, residing in Little Rock, and an attorney for the Family Council Action
Committee, pointed out they have looked at this; and there is enough sufficient concern. She
advised there is a doctrine called an unconstitutional delegation of legislative authority and believes
the Legislature “overstepped their bounds” in this area. She said this can be looked at in two
different ways: (1) in the Bill itself which says that the governing body of the city, town or county,
as the case may be, shall by ordinance submit the question to the electors if requested by the
franchise holder; and (2) the franchise holder is “driving the train here” and is not the Board voting
on whether or not it wants to have an election.
Mayor Bush asked if she is saying the Legislature was out of order in passing this Bill, and
Ms. Adcock replied that she is. She added there is an unconstitutional delegation of legislative
authority because they gave that authority to call the special election to the franchise holder. She
said the second point would be is there are many people who are impacted by this in terms of the
County; and this is not going to be a countywide election. She mentioned there are cases which are
not specifically dealing with racing, but they look at the issue of an unconstitutional delegation of
legislative authority. She advised that the Supreme Court has looked at it and has said what is looked
at is who had the right to vote. She stated if the people who were impacted do not have the right to
vote, then it is an unconstitutional delegation of legislative authority.
Board of Directors Meeting
9
September 6, 2005 at 7:00 P.M.
Assistant City Attorney Brian Albright asked if that was not an issue she should take up with
the courts, and Ms. Adcock said that it is. She added she understands that it can be done there, but
many times these issues come out later; and city boards would say if they had known that, they
would have stopped it. She said she does not want the Board to make a vote and then come back
later and say that they were not informed.
City Manager Kent Myers stated this legislation was passed five or six month ago and
questioned if the organization has initiated any litigation against the State for taking an
unconstitutional action, and Ms. Adcock replied that they have not since there has not been anything
done so far. Therefore, they were waiting to see if anyone was going to act on it.
Ms. Misty Beobay, from New Orleans, Louisiana, expressed appreciation to the City for its
hospitality, noting there were 16 members of her family who had to evacuate from New Orleans due
to the hurricane. Regarding the issue on the floor, she said that casino gambling did not give them
any extra income that was promised to the education and build up Louisiana and New Orleans but
brought them below their poverty level. She stated if there is going to be a vote, then it should be
opened to everyone. She pointed out that Hot Springs has a wonderful family community and
bringing casinos into it will not keep a family.
Mr. Jay Romain, from a suburb outside New Orleans, said he is directly and indirectly
affected by anything that New Orleans does. He stated when the issue of casinos came about, it was
promised that the education system would be helped, and money would be funded into the education
system to bring it up. He mentioned they were at the bottom of the states and are still at the bottom,
and schools were closed last year because funding was not available. Also, teachers did not receive
pay raises that were promised. He stated that the fire department has legal action against the City
at the present time for back pay that was promised to the fire department.
Mr. Randy Emoff, from New Orleans, said he supported the Board setting the election. He
mentioned that he is a property owner in Hot Springs Village and believes the people outside the
direct area of Hot Springs should be brought into the election process. He encouraged the Board to
do a study on the impact of the types of games they want to bring in because they are very addictive
in their behavior. Before the Board proceeds too far with this, he would balance the discussions with
some of those issues and studies that have been done.
Director Jones pointed out that the citizens of Hot Springs are not allowed to go to Hot
Springs Village and vote on any issue they consider.
Mr. Ken Carney, pastor of First Church of the Nazarene, said that he does not believe the
City needs this election; and if it is held, then it should be the entire county. He noted it has already
Board of Directors Meeting
10
September 6, 2005 at 7:00 P.M.
been voted down in the State. He commented this is a fallacy that they are saying this is the Hot
Springs Oaklawn Community Benefit Plan. He added this is a faulty business plan, and he has
documentation that it is a faulty business plan. He pointed out that this is looking to money to do
for a community what only morals, character, integrity, and ethics can do. He stated that money is
not the answer for this community. He spoke of how the race track impacted a member of his
church, and a member in his church lost over $40,000 two years in a row and lost their home. He
stressed if this is going to be voted on by the people, the entire County should be included, not just
the City. He quoted from U.S.World Report analysis which found that crime rates in casino
communities were 84 percent higher than other communities. It also states that all of the
communities that have casinos have experienced from 39 percent to 58 percent increase in crime
rates. He reported that the number of police calls in Black Hawk, Colorado, went from 25 a year
before casinos to between 15,000 and 20,000 annually. By their own admission, he said there would
have to be $1 billion wagered and $100 million lost in order for any local government to receive
anything.
Mr. Jeff Purnell, Chairman of the Hot Springs Advertising and Promotion Commission,
stated just over a week ago at their annual retreat in Little Rock, Mr. Jackson explained the benefits
for the seniors, education, and agri business in this community. He reported that today, the
Advertising and Promotion Commission voted and unanimously endorsed Oaklawn’s proposal.
There being no further discussion, Mayor Bush called for a vote on the motion to adopt; and
upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards,
Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declared
passed.
5
Public Safety Report
A motion was made by Director Daniel, duly seconded by Director Maruthur, that the Public
Safety Report be approved.
Upon discussion, City Manager Kent Myers announced that Mr. Perry Lomax has signed to
speak to Item 109 in the report (site distance problem at Sixth and Hobson). The Public Safety
Committee recommended to refer this to the Police Department to monitor illegal parking.
Mr. Perry Lomax said he has observed several times near accidents at Sixth Street and
Hobson. He noted that the yellow line needs to be backed up about three car lengths for safety. He
mentioned that when he has attempted to cross Hobson, he cannot see beyond the cars that are
parked there because they are too far forward. He said it is not a speeding problem but a blocking
Board of Directors Meeting
11
September 6, 2005 at 7:00 P.M.
of the view, and the yellow line is extended too far east. He commented it is not a matter of police
observance in the area but is a matter of the view being blocked in front of Gary Thorson’s Furniture
Company. He requested that the Public Safety Committee take another look at it.
Police Chief Gary Ashcraft commented they have studied this area in the past, and there is
no parking at this time that allows enough room for a cautious driver to see. He noted there are stop
signs on Sixth Street; and if drivers stop and look, they can see. At times, there may be a truck that
is unloading parked in that area; and that is up to the Police Department to move that truck. At this
time, he does not feel it is necessary to add any more “no parking” since parking is at a premium in
that area now.
Director Smith said it is a challenge to get across Sixth and Hobson, and he wants to make
sure the Board is as sensitive as possible to that corner.
Police Chief Gary Ashcraft said that the Police Department can take care of that.
Director Edwards said he travels this area four times a day; and many times automobiles are
parked over the yellow line, making it almost impossible to see. He noted the safest way is to go
through the parking lot to the right and far enough down the street to where motorists can see
clearly.
Police Chief Gary Ashcraft said if there are cars parked in that area, then it is a problem; but
it is up to the Police Department to make sure there are not cars parked in the “no parking” zones.
He stressed that the Police Department will address that problem.
Director Maruthur pointed out what appears to be the problem is where the parking begins
on Hobson itself. She added if there are large SUV’s or large pickup trucks, motorists cannot see
around them. She suggested signs restricting the size of the vehicles.
Police Chief Gary Ashcraft said that will have to go back to the Public Safety Committee and
if approved, then the Police Department will enforce that also.
Director Maruthur requested that this item be referred back to the Public Safety Committee
and consider restricting the size of the vehicles.
A motion was made by Director Smith, duly seconded by Director Weatherford, that this
item be referred back to the Public Safety Committee; and upon voice vote, the motion unanimously
carried.
Board of Directors Meeting
12
September 6, 2005 at 7:00 P.M.
Mayor Bush then called for a vote on the motion to approve the Public Safety Committee,
with the deletion of Item No. 109; and upon roll call, the following voted “aye”: Directors Maruthur,
Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried.
18
Proposed Resolution No. R-05-274
A resolution entitled, “A RESOLUTION AUTHORIZING THE PURCHASE OF A SEWER
FLUSHER/VACUUM TRUCK FROM SCRUGGS EQUIPMENT COMPANY,” was taken from
the agenda and read by title only.
A motion was made by Director Daniel, duly seconded by Director Edwards, that the
resolution be adopted as read.
Upon discussion, Mr. Don Cochran, Director of Utilities, stated that staff recommends
approving the bid and purchase of a combination sewer flusher and vacuum truck from Scruggs
Equipment Company. This equipment is used with cleaning sewer collection lines, manholes, sewer
lift stations, wet wells, and is an important part in the maintenance of the sewer collection system.
The price of the equipment is $168,940 and is budgeted in the Wastewater Collections Capital
Fund.
Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following
voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;
motion unanimously carried. Whereupon the resolution was declared adopted.
19
Proposed Resolution No. R-05-275
A resolution entitled, “A RESOLUTION AWARDING A CONTRACT TO HUGHES
SUPPLY, INC. FOR AN AUTOMATIC RADIO METER READING SYSTEM AND RADIO
READ WATER METERS,” was taken from the agenda and read by title only.
A motion was made by Director Weatherford, duly seconded by Director Edwards, that the
resolution be adopted as read.
Upon discussion, Mr. Don Cochran, Director of Utilities, advised that staff recommends
approving the purchase of the automatic radio meter reading system and radio read water meters
from Hughes Supply. This is to expand the automatic radio read system that is already in place in
the Royal Water System. The City is planning on putting this in the Red Oak area and then
expanding it to the Highway 7 South area. This equipment allows meter readers to read water
Board of Directors Meeting
13
September 6, 2005 at 7:00 P.M.
meters via computer as they drive by the homes. The computer will pick up the reading where the
meter readers do not have to read the meters on foot and read them manually. This is budgeted in
the Utilities Meter Shop budget in an amount not to exceed $200,000.
Director Edwards questioned reading the meters from the vehicle if they have to punch in
the meter number, and Mr. Cochran advised that the meter is already set up with all of the meter
numbers they will pick up while driving down the road. The meter has a built-in radio transmitter
so as they get within two or three blocks of that meter, the radio transmitter will send the reading
to the computer; and it will pick it up automatically as they are driving down the road.
Director Daniel asked if it is electronic or battery operated, and Mr. Cochran advised that
the meter will have a built-in battery, which has a two-year life span. Then the computer either
works on battery or plugs into the cigarette lighter.
Director Daniel questioned the cost-effectiveness, and Mr. Cochran replied that he does not
have a cost analysis worked out. However, as the system grows, this is more cost-effective to read
meters in the rural areas where between water meters, there may be 1500 feet in some situations in
the Royal Water district and may be one-half mile between water meters. It is much more costeffective to read these as they are driving down the road via radio than having a man drive down
the road, get out of the vehicle, read the meter, get back in the vehicle, drive down and locate the
next meter.
Director Daniel asked what is the cost of the batteries for the meters, and Mr. Cochran said
that he will have to report back to him on that.
Director Smith asked if there are any cities close by that are using a similar system and how
effective has it been, and Mr. Cochran replied that these types of systems are going in all over the
country. He stated he can get that information for him, but there are other cities in Arkansas that
are doing it. He added that they already have a radio read system in the Royal Water District with
1500 radio read meters now so this is expanding what they already have.
Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following
voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;
motion unanimously carried. Whereupon the resolution was declared adopted.
City Manager Kent Myers noted there were several questions raised on this issue, and staff
will follow up with answers to the questions on the batteries and also the question on the systems
used by other cities. He will forward that information to the Board this week.
Board of Directors Meeting
14
September 6, 2005 at 7:00 P.M.
20
Proposed Resolution No. R-05-276
A resolution entitled, “A RESOLUTION APPROVING THE PROVISION OF CELLULAR
TELEPHONE AND BROADBAND INTERNET SERVICES FOR CITY DIRECTORS,” was taken
from the agenda and read by title only.
A motion was made by Director Jones, duly seconded by Director Edwards, that the
resolution be adopted as read.
Upon discussion, City Manager Kent Myers advised that recently staff was approached by
one of the Directors who is considering a cellular phone to provide better contact with the city
departments. He stated these cell phones would be purchased by the City for Board Members as
requested. Since that request came in, Deputy City Manager Lance Hudnell suggested that the City
consider providing internet access to the Board for official city internet usage. If the Board
Members have internet access, staff could e-mail the agenda packet for all of the Board Meetings
and would not have to get them delivered twice a month.
Mayor Bush stated that he requested the cell phone at the request of Assistant City Attorney
Brian Albright since it is difficult to contact him many times.
Director Edwards asked if the Directors can have the City pay for it or go on like they are
doing now, and City Manager Kent Myers advised that the City has service available with Alltel.
If the Directors want to access that service and add to another phone under a system, then they will
have the ability to do that if this passes tonight. If the Directors have a cell phone, they can continue
to use that; but if they want to come onto the City’s program, they would be entitled to that.
Mayor Bush stated that once the Director’s monthly bill comes out, if it is personal, the
Directors pay for it. If it is City business, then the City picks it up.
Director Edwards commented it will be more confusing than it would be worth in trying to
separate the calls.
Mayor Bush pointed out that one of the advantages of doing this is that their numbers will
be posted on the wesbsite.
Director Maruthur asked if this is going to provide for wireless, and Deputy City Manager
Lance Hudnell advised this is just a typical broadband service similar to what is received through
cable television company.
Board of Directors Meeting
15
September 6, 2005 at 7:00 P.M.
Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following
voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;
motion unanimously carried. Whereupon the resolution was declared adopted.
21
Proposed Resolution No. R-05-277
A resolution entitled, “A RESOLUTION AUTHORIZING THE CITY MANAGER TO
ISSUE A REQUEST FOR PROPOSALS FOR THE OPERATION OF AN ADULT SOFTBALL
LEAGUE PROGRAM AT KIMERY PARK,” was taken from the agenda and read by title only.
A motion was made by Director Jones, duly seconded by Director Smith, that the resolution
be adopted as read.
Upon discussion, Ms. Jean Wallace, Director of Parks and Recreation, stated this would be
a similar situation as with the Hot Springs Boys’ and Girls’ Club for the youth baseball program.
Recently, the Parks and Recreation Department was approached by the Quapaw Community Center,
a nonprofit organization, that is interested in submitting a proposal to operate the adult softball
leagues. If the Board is interested, then City staff needs to put together a formal Request for
Proposals to send out to the community for any interested group or agency. If it is approved tonight,
staff will prepare an RFP for the operation of the adult softball league, maintenance of the softball
fields, operation of the concession stand and would also request in the RFP that any new operator
would not adversely affect the youth softball program. The Parks and Recreation Advisory
Committee recommended approval of the issuance of these RFP’s as long as any proposal would
benefit the City, save the City money, preserve the City’s youth softball program, improve the field
conditions, and also result in capital improvements at Kimery Park.
City Manager Kent Myers stated if this is approved, it will be back before the Board because
once the City solicits proposals, staff will bring back the proposals with staff recommendations in
four to six weeks.
Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following
voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;
motion unanimously carried. Whereupon the resolution was declared adopted.
22
Proposed Ordinance O-05-74
An ordinance entitled, “AN ORDINANCE WAIVING THE REQUIREMENT OF
COMPETITIVE BIDDING FOR THE PROCUREMENT OF TWO WASTEWATER PUMPS FOR
Board of Directors Meeting
16
September 6, 2005 at 7:00 P.M.
MAZARN NO. 6 WASTEWATER LIFT STATION; CERTIFYING EMERGENCY ACTIONS BY
THE CITY MANAGER; AND FOR OTHER PURPOSES,” was taken from the agenda for
consideration.
A motion was made by Director Daniel, duly seconded by Director Edwards, that the rules
be suspended and the ordinance be read for the first time by title only; and upon voice vote, the
motion unanimously carried. The ordinance was then read for the first time by title only; and upon
the question “Shall the ordinance be passed as read?” and upon motion of Director Edwards, duly
seconded by Director Maruthur, that the ordinance be passed as read.
Upon discussion, Mr. Don Cochran, Director of Utilities, advised that approximately two
weeks ago, two pumps failed at the Mazarn No. 6 wastewater lift station. The replacement pumps
needed to be compatible with the original equipment; and for that reason, they had to contact BT
Environmental, which is the representative of that type of pump. He explained it was an emergency
situation, and they have already purchased the pumps; and the repairs have been made. The cost of
the two pumps combined was $13,000.04 and is budgeted in their maintenance program.
Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following
voted “aye”: Directors Maruthur, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. Director
Jones was out of the Board Chambers and did not cast a vote; motion carried. Whereupon the
ordinance was declared passed.
23
Proposed Ordinance No. O-05-75 Calling the Special Election on Electronic Games of
Skill. This item was discussed earlier in the meeting.
24
Proposed Ordinance No. O-05-76
An ordinance entitled, “AN ORDINANCE ADOPTING STORMWATER MANAGEMENT
REGULATIONS; ESTABLISHING PENALTIES FOR VIOLATION; AND FOR OTHER
PURPOSES,” was taken from the agenda for consideration.
A motion was made by Director Edwards, 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 passed as read?” and upon motion of Director Weatherford,
duly seconded by Director Edwards, that the ordinance be passed as read.
Board of Directors Meeting
17
September 6, 2005 at 7:00 P.M.
Upon discussion, Mr. Steve Mallett, Public Works Director, explained this will regulate
stormwater runoff. As mandated by EPA in the stormwater, Phase II, final rule of 1999, the City
was given a list of items it needed to implement, and this was one of them. The City has already
developed a BMP (Best Management Practice) in its own stormwater program, and this was the next
on the list. The City’s engineering staff; Mr. Denny McPhate, Engineering Supervisor; and Mr.
Walt Catlett, with Catlett Engineering, were instrumental in developing this based on similar
ordinances in other towns in Arkansas. Through this ordinance, the Board will approve, by
reference, a stormwater management manual that addresses all of the design criteria for new
construction in the City. The City held an official public hearing on August 5. Several local
developers and engineers were in attendance, and no negative or positive comments were received.
Notices were published in the newspaper and made available to anyone who wanted copies of the
stormwater manual and the stormwater ordinance. EPA mandated this program and handed down
the administration and enforcement to the Arkansas Department of Environmental Quality.
Director Smith questioned the dollar impact and how many years are involved, and Mr.
Mallett replied that it is permanent as far as years. There have been estimates from $100,000 to
$200,000 a year. The amount that Mr. McPhate mentioned to him is $180,000, which includes
staffing and enforcement. With the fee ordinance, that is not sufficient to cover the cost of the
program and will probably come to the Board next year with a request to add an additional
enforcement officer.
Director Weatherford asked what other cities have this in place, and Mr. Mo Shafii, permit
section, Chief of NPDS, advised that it is Rogers, Springdale, Conway, Maumelle, Jonesboro, and
Pine Bluff. He emphasized this is one of the requirements of this permit and has to be done, and all
of the cities have to be in compliance by 2009.
Director Weatherford questioned who enforces this in other cities, and Mr. Shafii replied that
in some cities it is the engineering, code, or zoning. He explained that when some cities do an
inspection for the footing, if they see any problem, they stop the project.
Director Weatherford asked if he has been called in on any major violations, and Mr. Shafii
said that he had. He added that a major violation is if the construction site does not control the
pollutant (erosion control). By rule of the ADEQ, they have authority to fine every violation
$10,000 a day.
Director Weatherford questioned when it becomes effective if it is passed tonight, and Mr.
Mallett advised that it will be 60 days from the date it is passed.
Board of Directors Meeting
18
September 6, 2005 at 7:00 P.M.
Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following
voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;
motion unanimously carried. Whereupon the ordinance was declared passed.
25
Proposed Resolution No. R-05-278
A resolution entitled, “A RESOLUTION ADOPTING A PERMIT FEE SCHEDULE
PURSUANT TO ORDINANCE NO. 5378 (STORMWATER MANAGEMENT),” was taken from
the agenda and read by title only.
A motion was made by Director Edwards, duly seconded by Director Jones, that the
resolution be adopted as read.
Upon discussion, Mr. Steve Mallett, Public Works Director, advised this is the fee schedule
developed by Mr. Walt Catlett of Catlett Engineering; and these numbers are based off similar city
ordinances, such as Rogers and Little Rock. These are minimal numbers the City will start with and
will adjust them if the City needs to over the coming years. He stressed this is not sufficient to cover
the cost of the program but will offset some of the inspection and enforcement costs.
Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following
voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;
motion unanimously carried. Whereupon the resolution was declared adopted.
26
Proposed Resolution No. R-05-279
A resolution entitled, “A RESOLUTION AUTHORIZING THE PROCUREMENT AND
INSTALLATION OF A VIDEO CAMERA SECURITY SYSTEM AND FIBER OPTIC
NETWORK IN THE DOWNTOWN AREA AND APPROPRIATING FUNDS THEREFOR,” was
taken from the agenda and read by title only.
A motion was made by Director Jones, duly seconded by Director Weatherford, that the
resolution be adopted as read.
Upon discussion, Mr. Steve Mallett, Public Works Director, advised that staff has been
requested to review the cost and steps to implement security cameras in the downtown area,
including Exchange Street Parking Plaza. There currently are some cameras in the parking facility,
Board of Directors Meeting
19
September 6, 2005 at 7:00 P.M.
but they are substandard. There would be two cameras in the parking deck and six along Central
Avenue, for a total of eight security cameras. The six along Central Avenue would be located on
signal poles thereby providing a good view from the fountain at Whittington Avenue south to
around Market Street and the Broadway Entertainment District, and the police will be able to
monitor vandalism on the streets. He stated there will be a fiber optic system installed for video
reasons. The City will be able to monitor it at any points along the system, but the proposal takes
the fiber optic cable all the way down to and through the Finance Department on Malvern Avenue
and to the Police Department. Therefore, there are some secondary benefits to this with regard to
Information Systems. The Traffic Department will be able to use the video detection equipment and
be able to monitor that at Traffic Services. The cost for doing this is $30,000, which includes
getting the fiber and conduit from the Traffic Services shop on Cedar Street all the way down to the
Police Department. The City will realize a savings of about $6,000 to $8,000 a year on the cost it
pays right now for the frame relay that it uses from one department to another that is hooked to City
Hall at the present time. The City should see a payout in that department alone in about three years.
Police Chief Gary Ashcraft commented this will give the Police Department one more tool
to view criminal activity in the area. He stated they are not going to monitor traffic with it and write
people tickets because the law will not allow that, but there has been some vandalism at the parking
deck; and this will help the Police Department monitor that and be able to identify the people who
are doing it.
City Manager Kent Myers added this was precipitated by the ongoing criminal activity, but
the City is also continuing to invest money downtown. The Christmas light display will be
expanded this year, and there have been problems with vandalism on the Christmas light display in
the past. After the first of the year, there will be a major sculpture exhibit in Exchange Street
Parking Plaza; and these will be sculptures on loan to the City from throughout the country. Based
upon past experience with the existing sculpture by Long Hua Hu, the City wants to make sure this
investment is protected. The City has worked with Mr. Lee Hadlock, who is an expert on video
cameras, and staff is proposing state-of-the-art equipment that will aid the Police Department in
identifying any criminal problems in the downtown area. This will be recorded on both tape and
will be able to be viewed directly by the desk sergeant at the Police Department; so if there is
criminal activity, they can immediately dispatch one of the police officers. He stressed this is a very
important crime enforcement tool for the downtown area.
Mr. Bob Nagey, 117 Hillcrest, retired telecommunications engineer from NASA, said that
he is not against this; but Hot Springs is a small, compact city; and there is an opportunity to have
wireless internet downtown on this system. He mentioned that people come here from larger
markets, and this would be an incentive for people to stay an extra night. For extremely low cost,
he said this can be separated into a private component and a public component.
Board of Directors Meeting
20
September 6, 2005 at 7:00 P.M.
Mr. Tom Burnham, 310 South Patterson, information technology consultant, stated that fiber
optic provides a large amount of band width. The video that will be going over the fiber optic would
not be using a quarter of its total band width, which leaves a large amount of band width available
for providing wireless access service by the City to the visitors. This kind of proposal can be done
securely by implementing a private network over the same fiber optics, which would isolate the
security camera portion of the data stream and the wireless portion of the data stream available to
the public. He commented it would be nice to have on the City’s website and would help produce
some revenue by visitors staying in town.
Mr. John Cooksey, 428 Ramble Street, said he produces instructional video tapes for the
videography field, and his customers are all over the country. He noted that in USA Today,
Albuquerque, New Mexico, has received some publicity; and it is costing them more than it is going
to cost Hot Springs, but he believes Hot Springs deserves that kind of publicity. He said this can be
explored at a later date, but he is asking the Board to have some kind of commitment so this does
not get delayed for two or three years.
Director Daniel said he agrees with what the gentlemen have stated, but he does not want
to delay the vote to get the cameras installed. He asked if there is a problem once that is in, adding
wireless internet service and was advised there is not much of a problem. Director Daniel stated
that he believes the Board should add that in.
City Manager Kent Myers advised that City staff is already studying this; and he, Deputy
City Manager Lance Hudnell, and Mr. Jeff Winter, Public Information Systems Director, have had
a number of discussions over the last several months. He commented the speakers are correct in that
cities across the country are adding wireless internet throughout their communities, and it is a very
expensive proposition but very worthwhile. He advised that some cities have gone to the voters
asking them to approve it through a bond issue, and the City needs to be looking at this possibility.
He added that staff can present the numbers back to the Board; and it can be done in steps, stages,
or citywide at one time. Also, the City can provide the wireless internet; or it can go out for
proposals; and the private sector can provide it.
Director Daniel stressed that he does not want to delay the action of installing the cameras.
City Manager Kent Myers stated that the action the Board is taking tonight will help
facilitate this in the future if the City wants to go that route. He added that Hill Wheatley Plaza
already has wireless internet. He stated that in order to take this citywide, it is expensive and is an
issue the Board will need to review, and staff can start providing the Board information. He
mentioned that possibly the City can start funding it in the 2006 budget and over a period of several
years, have it citywide. He noted there are various pros and cons the Board needs to consider. The
Board of Directors Meeting
21
September 6, 2005 at 7:00 P.M.
first thing the Board needs to decide is whether or not the City needs to be in the business or the
private sector needs to provide this service.
Director Maruthur said she has been receiving calls about this proposal and would like to
make a commitment that within the next couple of meetings, this item be placed on the agenda.
City Manager Kent Myers commented this would be an appropriate item for the next Board
Work Session because it will take 30 to 45 minutes discussion to go through all of the details.
Director Maruthur said she would like to discuss this before the next work session. She
pointed out this is something that could help internet cafes, downtown, and the City. She stated the
Board could make a commitment to listen to what these individuals have to say, who will not benefit
from this, have to say.
City Manager Kent Myers said he agreed, but believes it will be better in a work session
environment; however, that is left to the discretion of the Board.
Director Maruthur stated she will bring this up at the next agenda meeting; and if the Board
is going to promote Hot Springs, wireless is the way to do it. She reported that she has been
inundated with telephone calls about the wireless and the fiber optic. She stated that individuals
make a conscious decision to stay at hotels that are wireless.
Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the following
voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;
motion unanimously carried. Whereupon the resolution was declared adopted.
27
Proposed Ordinance No. O-05-77
An ordinance entitled, “AN ORDINANCE WAIVING CERTAIN FEES, PROCEDURES,
AND REGULATIONS RELATED TO DISASTER RELIEF EFFORTS AS A RESULT OF
HURRICANE KATRINA; 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 passed as read?” and upon motion of Director Daniel, duly
seconded by Director Jones, that the ordinance be passed as read; and upon roll call, the following
Board of Directors Meeting
22
September 6, 2005 at 7:00 P.M.
voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;
motion unanimously carried. Whereupon the ordinance was declared passed.
28
Report on Island Annexations
Deputy City Manager Lance Hudnell reported that at a past Board Work Session, the Board
asked that staff investigate areas known as islands for annexation. In Arkansas law, it allows
annexations of areas, by ordinance, that are completely surrounded by that same city limits. There
are five areas in the City of Hot Springs that qualify. The first one is on the north side, one in the
Eastgate area, one in the Davidson Drive area, one in the Fontana Road area, and one in the Pretti
Point area. At the Board’s instructions, staff developed a list of owners in all five of those areas.
There were around 32 owners, and staff mailed an informal letter to those owners asking them to
attend a public forum to discuss the potential annexation of their area should the Board consider it.
There were several owners who appeared from the north area of town who were opposed to the
annexation. This also includes portions of the National Park, and the National Park was basically
neutral or in support of it if all of the National Park could be included, which cannot be done
because it only involves a part of the National Park that would be in this island. The residents in the
area of Eastgate had no problem with it because it was basically their backyards and does create an
enforcement problem. An area in Davidson Drive was neutral; however, in the Fontana Road area,
the residents were opposed to annexation at this time. The Pretti Point area is owned by two
different property owners. It is a condo complex that sometime ago was in condominium ownership
but now is in a timeshare-type situation. There are two different companies that own it, but they are
the same company with two different company names on the deed. The Pretti Point area was left
out because at that time it was a voluntary annexation, and there were a number of owners involved.
Therefore, the people petitioning did not want to find all of those owners and get their signatures on
the petition. That is not the case now since the ownership has changed to a timeshare situation.
Staff is recommending that the City proceed with three of the annexations (Davidson Drive, Eastgate
and Pretti Point). If the Board decides to proceed on the three annexations, the City will have to
mail a registered letter to the property owners in those areas. The Board has to hold a formal public
hearing and then annex them by simple passage of an ordinance.
A motion was made by Director Daniel, duly seconded by Director Maruthur, that staff
proceed with the annexation of the three island annexations (Davidson Drive, Eastgate area, and
Pretti Point area); and upon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith,
Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimously carried.
OTHER BUSINESS
Board of Directors Meeting
23
September 6, 2005 at 7:00 P.M.
28
Board of Directors Items
Director Jones announced that on Saturday, August 27, she welcomed 300 children from
around the state. The UZURI King Team held a conference at the Convention Center, and Senator
Tracey Steele, Representative Terry Smith, and Representative Bob Mathis were present. She
expressed appreciation to Gordon Mahoney, Cynthia Brown and Steve Arrison with the Civic Center
for the kindness shown toward everyone present. She welcomed the survivors of Hurricane Katrina
to Hot Springs. On Saturday, September 10, at 8 a.m., the Alzheimer’s Benefit will be held at
Garvan Gardens.
Director Edwards stated on Saturday afternoon, a picnic was held for former Director Bob
Wheeler at DeGray Lodge, and he and City Manager Kent Myers attended.
Director Maruthur announced that on Sunday, September 11, at 6 p.m., an event will be held
at Magic Springs, called Hurricaide; and 100 percent of the money collected will go to the victims
of Hurricane Katrina. There is no admission, but they will be selling wrist rubber bands that were
donated by Alliance Rubber Company. The only items they are going to accept are monetary. They
are also working on live entertainment and are trying to bring in some entertainers from Branson,
Missouri, and former inductees into the Walk of Fame. Individuals may call Regions Bank or Magic
Springs.
Director Smith stated that on September 15, 16 and 17, the Quapaw Community Center will
hold its annual rummage sale. This is a fund-raiser for the Center, and any clothing or items
remaining will be donated to the hurricane relief effort.
Director Daniel reported that over a week ago, Mr. Stueart Pennington suffered a massive
heart attack. His family has been in business in Hot Springs since the early 1900's in the food
business and then in the clothing business (Oaklawn Sportswear). He asked that everyone keep him
and the family in their thoughts and prayers.
29
City Manager’s Report
City Manager Kent Myers gave the following report:
1. As a follow-up to the action taken by the Board calling for the Oaklawn election, State law
requires all City residents to be registered to vote 30 days prior to the election and will have until
October 8 to register in order to participate in that election.
Board of Directors Meeting
24
September 6, 2005 at 7:00 P.M.
2. The City had a great response in assisting victims of Hurricane Katrina and recognized
the City departments involved in that effort. He has received numerous compliments on the Animal
Control Services. Mr. Dan Bugg immediately began assisting the victims with their animals and
established some holding pens at the animal shelter. Over the last week, he has assisted a number
of visitors to the community with their special needs involving their pets. In addition, the City has
provided assistance with transit services through Intracity Transit. The City has provided security,
and the Fire Department has also been involved.
3. On the Consent Agenda, the Board approved a resolution authorizing a Memorandum of
Understanding with the Arkansas Game and Fish Commission for the construction of two new
fishing piers at Entergy Park. The plans are to construct the piers during the drawn-down this
winter. Within the next six months, the piers will be constructed by the State. Also, on the Consent
Agenda, a contract was awarded to National Park Community College for employee training. This
is a partnership between the City and the College. Ms. Sally Carder is the new president of the
College, and he has discussed with her other cooperative ventures they want to explore over the next
several years and will bring to the Board for consideration. They have been discussing the possibility
of funding a grant position in the future that would be shared by the College, the City, the County,
and some other cooperative efforts. This contract replaces a full-time employee; and in the past,
the City has had a full-time training coordinator. By going through a contract with the College, the
City will be able to save some money and still offer some training services.
3. The Federal Highway Bill has passed Congress and has been signed into law by the
President. Mr. Dan Flowers, with the Arkansas State Highway and Transportation Department, will
be in town this week to begin meeting and discussing Higdon Ferry Road. The City staff met today
with the Chairman of the Transportation Committee, Senator Terry Smith, and Mayor Bush. The
federal funding comes over the next five years, but the City does not want to wait four or five years
to get Higdon Ferry Road going. Staff will meet with Mr. Flowers this week to explore ways to get
that project under construction within the next two years.
4. There will be a work session between the Board and the Planning Commission on
Saturday, October 1, 9 a.m., at the Embassy Suites, to discuss code enforcement, conditional use
permits, etc.
5. The dedication of the new surgical clinic at the animal shelter will be held on Saturday,
September 17, from 12 noon to 2 p.m. at the Animal Shelter. This has been funded by the donations,
and they have received some sizeable donations over the last several years. Therefore, no tax money
has been paid to open the surgical center.
Board of Directors Meeting
25
September 6, 2005 at 7:00 P.M.
6. Over the last several years since 9-1-1, there has been a National Day of Peace; and there
will be a local recognition of Day of Peace on Tuesday, September 20, from 6 p.m. to 7:30 p.m. at
the Transportation Depot.
7. A request was received last week from FEMA for some of the City’s firefighters to assist
with the aftermath of Hurricane Katrina. The City is deploying four of its firefighters - Fire
Marshall Nate Schanlaber, Lieutenant Tim Grimes, Driver Kenny Byrd, and Firefighter Cole Moore.
They will be going to Atlanta, Georgia, tomorrow and will be processed there and receive their
assignments and go directly from Atlanta to assist with the recovery efforts. Their services will be
paid by FEMA. He expressed appreciation to those who will be helping.
Mayor Bush asked how long they will be there, and Fire Chief Ed Davis stated they will be
there for 30 days.
30
ADJOURNMENT
There being no further business to come before the Board, the meeting adjourned at 9:15
p.m., to meet again on Monday, September 19, 2005, at 7:00 p.m.
ATTEST: _____________________
Lance Hudnell, City Clerk
Board of Directors Meeting
APPROVED:__________________
Mike Bush, Mayor
26
September 6, 2005 at 7:00 P.M.