MINUTES BOARD OF DIRECTORS MEETING SEPTEMBER … · BOARD OF DIRECTORS MEETING SEPTEMBER 6, 2005, ... Park for over 30 years. Mayor Bush recognized the residents of the community

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, at7:00 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 ledby 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 theagenda be approved.

Upon discussion, City Manager Kent Myers requested that Item No. 23 (Proposed OrdinanceNo. O-05-75 Calling a Special Election in the City on the Question of Whether or Not Wagering onElectronic Games of Skill May be Conducted by Oaklawn Jockey Club on the Grounds of Its RaceTrack Park Site in the City) be moved to the first item under New Business and add ProposedOrdinance No. O-05-77 (An Ordinance Waiving Certain Fees, Procedures, and Regulations Relatedto 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 agendabe 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

Board of Directors Meeting September 6, 2005 at 7:00 P.M.2

A motion was made by Director Edwards, duly seconded by Director Daniel, that the minutesof the August 15, 2005 Board Meeting be approved; and upon voice vote, the motion unanimouslycarried.

4 Recognition of Guests

Director Edwards recognized his sister, Ms. Margaret Bennett, who has worked for OaklawnPark for over 30 years.

Mayor Bush recognized the residents of the community for the support everyone has shownfor the victims of Hurricane Katrina. On behalf of the City, he welcomed the evacuees who havearrived from Louisiana, Mississippi and Alabama, noting that the City wants to do everythingpossible to make sure their needs are addressed. He asked that they advise him or any other Cityofficial 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, therewill be a fund-raiser for the victims of Hurricane Katrina called “Hurricaide.” There is no admissionprice, and the donation is $10 for a wrist rubber band, which has been donated by Alliance RubberCompany. 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 localentertainers. For more information, individuals may call Regions Bank or Magic Springs, and 100percent 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) BlendedPolyphosphates - Utilities [annual supply contract awarded to CalciQuest]; (c) PipeAdaptors- Public Works [annual supply contract awarded to Hughes Supply]; (d) PropertyCutting/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)


Janitorial Service - Various Departments [annual supply contract awarded to OJ’s,Servicemaster, Dow and Elliottt]; (h) Uniform Service - Various Departments [annual supplycontract 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 RuralRisk Association for the Purchase of Fire Protection and Rescue Equipment for the HotSprings Fire Department.

8 Proposed Resolution No. R-05-264 Authorizing the Mayor to Execute Amendment No. 1to the Contract with McLaughlin Engineering for Engineering Services Related to the MusicMountain Water Pump Station Project.

9 Proposed Resolution No. R-05-265 Approving the Extension of Hot Springs MunicipalWater and Wastewater Service for Lookout Bay Condos, 223-225 Lookout.

10 Proposed Resolution No. R-05-266 Accepting a Grant from the Federal AviationAdministration (FAA) for Rehabilitation of Runway 5/23 at the Airport.

11 Proposed Resolution No. R-05-267 Authorizing the Mayor to Execute a TransferAgreement Between the United States of America (Federal Aviation Administration) forCertain Improvements at the Airport.

12 Proposed Resolution No. R-05-268 Authorizing the Mayor to Execute Lease AddendumNo. 1 with the U. S. General Services Administration for Office Space Located in theTerminal Building at the Airport.

13 Proposed Resolution No. R-05-269 Authoring the Filing of a Grant Application with theArkansas State Department of Parks and Tourism and Committing Resources of the City ofHot Springs, Arkansas (Entergy Park and Hill Wheatley Park); and Repealing ResolutionNo. 5952.


14 Proposed Resolution No. R-05-270 Authorizing the Mayor and City Manager to Executea Memorandum of Understanding with the Arkansas Game and Fish Commission for TwoFishing Piers at Entergy Park.

15 Proposed Resolution No. R-05-271 Accepting a Grant from the United States Departmentof Transportation and the Arkansas State Highway and Transportation Department for PublicTransportation Grant Assistance Provided Under USC §5303 - Metropolitan PlanningProgram (Fiscal Year 2006).

16 Proposed Resolution No. R-05-272 Awarding a Contract to National Park CommunityCollege 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 VestPartnership Program.

A motion was made by Director Daniel, duly seconded by Director Maruthur, that theConsent Agenda be approved.

Upon discussion, City Manager Kent Myers stated that a citizen has signed to address thePublic Safety Report; therefore, that item needs to be removed from the Consent Agenda for separateconsideration.

A motion was made by Director Edwards, duly seconded by Director Maruthur, that theConsent Agenda be approved, as amended; and upon roll call, the following voted “aye”: DirectorsMaruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7; motion unanimouslycarried.

NEW BUSINESS

23 Proposed Ordinance No. O-05-75

An ordinance entitled, “AN ORDINANCE CALLING A SPECIAL ELECTION IN THECITY OF HOT SPRINGS, ARKANSAS, ON THE QUESTION OF WHETHER OR NOTWAGERING ON ELECTRONIC GAMES OF SKILL MAY BE CONDUCTED BY OAKLAWNJOCKEY CLUB, INC. ON THE GROUNDS OF ITS RACE TRACK PARK SITE IN HOT


SPRINGS, ARKANSAS, AS AUTHORIZED BY ACT 1151 OF THE 2005 REGULAR SESSIONOF THE ARKANSAS GENERAL ASSEMBLY; AND PRESCRIBING OTHER MATTERSPERTAINING THERETO,” was taken from the agenda for consideration.

A motion was made by Director Edwards, duly seconded by Director Jones, that the rulesbe suspended and the ordinance be read by title only; and upon voice vote, the motion unanimouslycarried. The ordinance was then read by title only; and upon the question “Shall the ordinance bepassed 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 thecitizens of the community may vote on this issue.

Assistant City Attorney Brian Albright advised that the Board has a policy of limiting thespeakers to three minutes; however, state statute requires that the franchise holder present evidenceof 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, representingOaklawn Jockey Club, Inc., stated that on March 22, 2005, Act 1151 (The Local Option HorseRacing and Greyhound Racing Electronic Games of Skill Act) of the 2005 Arkansas GeneralAssembly became law. However, it did not contain an emergency clause and, therefore, did notbecome effective until August 12, 2005. He advised that the Act allows the Board to schedule aspecial election on the issue of authorizing additional electronic games of skill to be conducted byOaklawn Jockey Club at its race track site. The Board’s action follows the filing by Oaklawn of therequest for the Board to schedule this election. He said the only issue Oaklawn is requesting is thatthe Board set the election. He explained that under Act 1151, there is a requirement that thefranchise holder present to the Board evidence of anticipated benefits to economic development, jobcreation, 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 ArkansasHorsemen’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 backstretch during the live meet and works the farms around Garland County during the remainder ofthe year. Mr. Schnipper stated that it is his opinion and those at Oaklawn that these letters are ampleevidence 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 HotSprings Oaklawn Community Benefits Plan. He spoke of the negative effect the opening of casinosin Mississippi and Louisiana had on Oaklawn Park about 12 years ago. In 1989, 1990,1991 and


1992, business was growing; but the casinos opened; and for the next eight or nine years, they lostapproximately 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 skillknown as instant racing; and the effects were immediate and helped them build up their purseswhich helped attract better horses, and better horses attract better racing fans. Within the last fewyears, over one-half of the states with race tracks are allowing their tracks to offer some other formof wagering similar to the electronic games of skill that they are presenting tonight. He said ifOaklawn is going to stay competitive, they are going to have to find a way to supplement theirpurses. Every time someone makes a parimutuel wager at Oaklawn Park, a certain percentage ofthat wager goes into the purse fund. This is established by negotiation with the Horsemen’sorganization, and the percentage is basically the same across the country. He stated if they had otherforms of wagering, they would have to collectively negotiate what percentage would go into thepurse fund from that as well. Louisiana, Oklahoma, Florida, New York, and over one-half of theracing states have the same percentage that Oaklawn does from parimutuel wagering; but they arenow getting a percentage for their purse fund from other forms of wagering. He commented theConstitution of the State of Arkansas will not allow them to have casino gambling, but this is nota casino gambling proposal they are submitting tonight. He added this proposal is to allow Oaklawnto have additional electronic games of skill to go with the electronic games of skill they alreadyhave. If they have additional electronic games of skill, they believe it will improve their businessand other businesses in Hot Springs. He stated they took this to the Legislature, and the Legislaturereached 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 ofwagering; Oaklawn already has electronic games of skill at the race track; and (3) this will give themadditional electronic games of skill and will be a significant expansion of benefits. He advised thatthe Legislature questioned what would happen if they do not do this, and Mr. Jackson advised thatstarting in 2006, because that is when other racing states will start impacting them, Oaklawn willeither go back to what they had in the 1990s; or they should see an upturn in their business, inemployment, in tax revenues and visitors to Hot Springs. The Arkansas Senate voted in favor ofthis, as well as the Arkansas House; and Governor Huckabee allowed it to become law and take itto the citizens in Hot Springs.

Mr. Jackson stated that total, additional employment will be approximately 1,000 jobs. Ofthose 1,000 jobs, 250 to 400 will be at Oaklawn with full benefits. Total additional wages will beapproximately $25 million to $35 million coming into the community. Visitor spending will beapproximately $80 million. Construction impacts from new construction on housing to commercialwill be approximately $36 million. He noted that Oaklawn has been in existence for 102 years; butduring that time, there has never been a direct tax on wagering at Oaklawn Park. If this measurepasses, 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


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 areadditional visitors in Hot Springs, the Advertising and Promotion Commission will get its share; andthe additional revenue for the Commission will be approximately $1 million. Last year Oaklawn’spurse distribution was $13 million, which was not at the upper echelons of racing but allowed themto stay competitive during the time of the year they race. If this measures passes, an additional $8million will go into their purse fund. A large amount of that will be spent in Garland County and HotSprings 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 arebringing back the Arkansas Breeders’ Sales, which they have not had in a number of years. Thereare 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 ofCommerce to join them in appointing the trustees to this independent Foundation, but Oaklawn willnot have a seat on this Foundation. Their wish is that one-half of the funds in the Foundation beused to benefit education in Garland County, and that one-half of the funds in the Foundation beused to benefit programs that help senior citizens in the community. Oaklawn’s only role will beas a funding organization. They are working on a formula; and in general terms, the formula ishowever much the entire direct tax is to the City and however much the entire direct tax is to theCounty, 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 introducedinstant racing until the time it started impacting the racing operation. He reported that Oaklawn hasagreed 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 forscholarships for Garland County students. The other one-half will go to work with the Universityof Arkansas Medical Center, Dr. David Lipschitz, who has agreed in principle to use the other one-half of this seed to bring a center on aging to Garland County. This Foundation will be a recruitingtool 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 toexpand beyond that but going to add to what they already have. The benefits include preservingjobs and enhancing racing at Oaklawn Park, creating new jobs and generating significant taxrevenues for the City and to benefitting the seniors and students. He noted there are manyorganizations 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 theChamber of Commerce; Mr. Dave Byerly, executive director of the Chamber of Commerce; Mr.


David Bartlett, president of GCEDC; Mr, Steve Arrison, executive director of the Advertising andPromotion Commission; and Mr. Leon Milsap, horse owner and community leader, are behind thiseffort 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 thekind of people that Oaklawn attracts match up with his visitors. He noted Oaklawn’s patrons areolder, have higher levels of disposable income, have a propensity to travel, and more inclined to befemale than male. He was not sure that matched the demographics of a theme park, and Mr. Hartsaid 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 ontheir behalf. He stated there have been 200 community leaders step forward and say Oaklawn canuse their name.

Director Maruthur stated that the proposal sounds good and noticed he had two groups thatare targeted (seniors and scholarships for the young people). She commented that it appears if thispasses, it will have a positive impact on an influx of people and job security. She asked if there areany 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 anexcellent position to try to solve some of these infrastructure problems. He added that he would liketo 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 OaklawnPark, and the City invests no funds as far as this election is concerned. He requested that the Boardadopt the ordinance setting Tuesday, November 8, 2005, for the special election on the issueauthorized by Act 1151 of 2005 Arkansas General Assembly.

Mr. Gabe Allen, representing the Family Council Action Committee, distributed a reportentitled, “Highlights of the National Gambling Impact Study Commission.” He commented this isan independent study commissioned by Congress and signed by President Clinton. He stated theNational Gambling Impact Study Commission made a short list of recommendations after a two-yearstudy. One of the things they specifically spoke to was race tracks propping up their profits with theaddition of casino-style gambling, and they said the Commission recommends that states shouldrefuse to allow the introduction of casino-style gambling into parimutuel facilities for the primarypurpose of saving a parimutuel facility that the market has determined no longer serves thecommunity or for the purpose of competing with other forms of gambling. He said this study wascommissioned before the proposal that is before the Board tonight, but they made a very strongrecommendation that this is not the thing to do. The reason they did is because the results they have


heard tonight are not borne out in fact. He stated that being a resident of the County, he doesshopping, etc. inside the city limits and has visited with many of the business owners who ownbusinesses in the City but live in the County who will not get a voice in this election. He pointedout there are more people who do not have a choice than do have a choice. He noted that thebreeders and agri business, most of which are in the county, are not being allowed to vote on thisissue. He said the problem with this kind of project is that the revenues are immediate, but theproblems are not. Another recommendation by this commission is there is not a net gain in jobs orper capita income in these type of situations. They did not specifically estimate the social costs butsaid there are significant social costs. Their recommendation is that there is not a net benefit to thecommunity 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, theyare 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 sothe 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 thevoters to vote on allowing a casino.

Ms. Martha Adcock, residing in Little Rock, and an attorney for the Family Council ActionCommittee, pointed out they have looked at this; and there is enough sufficient concern. Sheadvised there is a doctrine called an unconstitutional delegation of legislative authority and believesthe Legislature “overstepped their bounds” in this area. She said this can be looked at in twodifferent 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 thefranchise holder; and (2) the franchise holder is “driving the train here” and is not the Board votingon 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, andMs. Adcock replied that she is. She added there is an unconstitutional delegation of legislativeauthority because they gave that authority to call the special election to the franchise holder. Shesaid the second point would be is there are many people who are impacted by this in terms of theCounty; and this is not going to be a countywide election. She mentioned there are cases which arenot specifically dealing with racing, but they look at the issue of an unconstitutional delegation oflegislative authority. She advised that the Supreme Court has looked at it and has said what is lookedat is who had the right to vote. She stated if the people who were impacted do not have the right tovote, then it is an unconstitutional delegation of legislative authority.


Assistant City Attorney Brian Albright asked if that was not an issue she should take up withthe courts, and Ms. Adcock said that it is. She added she understands that it can be done there, butmany times these issues come out later; and city boards would say if they had known that, theywould have stopped it. She said she does not want the Board to make a vote and then come backlater and say that they were not informed.

City Manager Kent Myers stated this legislation was passed five or six month ago andquestioned if the organization has initiated any litigation against the State for taking anunconstitutional action, and Ms. Adcock replied that they have not since there has not been anythingdone 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 itshospitality, noting there were 16 members of her family who had to evacuate from New Orleans dueto the hurricane. Regarding the issue on the floor, she said that casino gambling did not give themany extra income that was promised to the education and build up Louisiana and New Orleans butbrought them below their poverty level. She stated if there is going to be a vote, then it should beopened to everyone. She pointed out that Hot Springs has a wonderful family community andbringing casinos into it will not keep a family.

Mr. Jay Romain, from a suburb outside New Orleans, said he is directly and indirectlyaffected by anything that New Orleans does. He stated when the issue of casinos came about, it waspromised that the education system would be helped, and money would be funded into the educationsystem 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 receivepay raises that were promised. He stated that the fire department has legal action against the Cityat 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. Hementioned that he is a property owner in Hot Springs Village and believes the people outside thedirect area of Hot Springs should be brought into the election process. He encouraged the Board todo a study on the impact of the types of games they want to bring in because they are very addictivein their behavior. Before the Board proceeds too far with this, he would balance the discussions withsome 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 HotSprings Village and vote on any issue they consider.

Mr. Ken Carney, pastor of First Church of the Nazarene, said that he does not believe theCity needs this election; and if it is held, then it should be the entire county. He noted it has already


been voted down in the State. He commented this is a fallacy that they are saying this is the HotSprings Oaklawn Community Benefit Plan. He added this is a faulty business plan, and he hasdocumentation that it is a faulty business plan. He pointed out that this is looking to money to dofor a community what only morals, character, integrity, and ethics can do. He stated that money isnot the answer for this community. He spoke of how the race track impacted a member of hischurch, and a member in his church lost over $40,000 two years in a row and lost their home. Hestressed if this is going to be voted on by the people, the entire County should be included, not justthe City. He quoted from U.S.World Report analysis which found that crime rates in casinocommunities were 84 percent higher than other communities. It also states that all of thecommunities that have casinos have experienced from 39 percent to 58 percent increase in crimerates. He reported that the number of police calls in Black Hawk, Colorado, went from 25 a yearbefore casinos to between 15,000 and 20,000 annually. By their own admission, he said there wouldhave to be $1 billion wagered and $100 million lost in order for any local government to receiveanything.

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 benefitsfor the seniors, education, and agri business in this community. He reported that today, theAdvertising 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; andupon roll call, the following voted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards,Daniel, and Bush, total 7; motion unanimously carried. Whereupon the ordinance was declaredpassed.

5 Public Safety Report

A motion was made by Director Daniel, duly seconded by Director Maruthur, that the PublicSafety Report be approved.

Upon discussion, City Manager Kent Myers announced that Mr. Perry Lomax has signed tospeak to Item 109 in the report (site distance problem at Sixth and Hobson). The Public SafetyCommittee 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 andHobson. He noted that the yellow line needs to be backed up about three car lengths for safety. Hementioned that when he has attempted to cross Hobson, he cannot see beyond the cars that areparked there because they are too far forward. He said it is not a speeding problem but a blocking


of the view, and the yellow line is extended too far east. He commented it is not a matter of policeobservance in the area but is a matter of the view being blocked in front of Gary Thorson’s FurnitureCompany. 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 isno parking at this time that allows enough room for a cautious driver to see. He noted there are stopsigns on Sixth Street; and if drivers stop and look, they can see. At times, there may be a truck thatis unloading parked in that area; and that is up to the Police Department to move that truck. At thistime, he does not feel it is necessary to add any more “no parking” since parking is at a premium inthat area now.

Director Smith said it is a challenge to get across Sixth and Hobson, and he wants to makesure 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 areparked over the yellow line, making it almost impossible to see. He noted the safest way is to gothrough the parking lot to the right and far enough down the street to where motorists can seeclearly.

Police Chief Gary Ashcraft said if there are cars parked in that area, then it is a problem; butit 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 beginson Hobson itself. She added if there are large SUV’s or large pickup trucks, motorists cannot seearound 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 andif approved, then the Police Department will enforce that also.

Director Maruthur requested that this item be referred back to the Public Safety Committeeand consider restricting the size of the vehicles.

A motion was made by Director Smith, duly seconded by Director Weatherford, that thisitem be referred back to the Public Safety Committee; and upon voice vote, the motion unanimouslycarried.


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 SEWERFLUSHER/VACUUM TRUCK FROM SCRUGGS EQUIPMENT COMPANY,” was taken fromthe agenda and read by title only.

A motion was made by Director Daniel, duly seconded by Director Edwards, that theresolution be adopted as read.

Upon discussion, Mr. Don Cochran, Director of Utilities, stated that staff recommendsapproving the bid and purchase of a combination sewer flusher and vacuum truck from ScruggsEquipment Company. This equipment is used with cleaning sewer collection lines, manholes, sewerlift 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 CapitalFund.

Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the followingvoted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;motion unanimously carried. Whereupon the resolution was declared adopted.


A resolution entitled, “A RESOLUTION AWARDING A CONTRACT TO HUGHESSUPPLY, INC. FOR AN AUTOMATIC RADIO METER READING SYSTEM AND RADIOREAD 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 theresolution be adopted as read.

Upon discussion, Mr. Don Cochran, Director of Utilities, advised that staff recommendsapproving the purchase of the automatic radio meter reading system and radio read water metersfrom Hughes Supply. This is to expand the automatic radio read system that is already in place inthe Royal Water System. The City is planning on putting this in the Red Oak area and thenexpanding it to the Highway 7 South area. This equipment allows meter readers to read water


meters via computer as they drive by the homes. The computer will pick up the reading where themeter readers do not have to read the meters on foot and read them manually. This is budgeted inthe 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 inthe meter number, and Mr. Cochran advised that the meter is already set up with all of the meternumbers they will pick up while driving down the road. The meter has a built-in radio transmitterso as they get within two or three blocks of that meter, the radio transmitter will send the readingto 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 thatthe meter will have a built-in battery, which has a two-year life span. Then the computer eitherworks on battery or plugs into the cigarette lighter.

Director Daniel questioned the cost-effectiveness, and Mr. Cochran replied that he does nothave a cost analysis worked out. However, as the system grows, this is more cost-effective to readmeters in the rural areas where between water meters, there may be 1500 feet in some situations inthe Royal Water district and may be one-half mile between water meters. It is much more cost-effective to read these as they are driving down the road via radio than having a man drive downthe road, get out of the vehicle, read the meter, get back in the vehicle, drive down and locate thenext meter.

Director Daniel asked what is the cost of the batteries for the meters, and Mr. Cochran saidthat 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 howeffective has it been, and Mr. Cochran replied that these types of systems are going in all over thecountry. He stated he can get that information for him, but there are other cities in Arkansas thatare doing it. He added that they already have a radio read system in the Royal Water District with1500 radio read meters now so this is expanding what they already have.


City Manager Kent Myers noted there were several questions raised on this issue, and staffwill follow up with answers to the questions on the batteries and also the question on the systemsused by other cities. He will forward that information to the Board this week.



A resolution entitled, “A RESOLUTION APPROVING THE PROVISION OF CELLULARTELEPHONE AND BROADBAND INTERNET SERVICES FOR CITY DIRECTORS,” was takenfrom the agenda and read by title only.

A motion was made by Director Jones, duly seconded by Director Edwards, that theresolution be adopted as read.

Upon discussion, City Manager Kent Myers advised that recently staff was approached byone of the Directors who is considering a cellular phone to provide better contact with the citydepartments. He stated these cell phones would be purchased by the City for Board Members asrequested. Since that request came in, Deputy City Manager Lance Hudnell suggested that the Cityconsider providing internet access to the Board for official city internet usage. If the BoardMembers have internet access, staff could e-mail the agenda packet for all of the Board Meetingsand 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 AttorneyBrian 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 aredoing 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 willhave the ability to do that if this passes tonight. If the Directors have a cell phone, they can continueto 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, theDirectors 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 toseparate the calls.

Mayor Bush pointed out that one of the advantages of doing this is that their numbers willbe posted on the wesbsite.

Director Maruthur asked if this is going to provide for wireless, and Deputy City ManagerLance Hudnell advised this is just a typical broadband service similar to what is received throughcable television company.




A resolution entitled, “A RESOLUTION AUTHORIZING THE CITY MANAGER TOISSUE A REQUEST FOR PROPOSALS FOR THE OPERATION OF AN ADULT SOFTBALLLEAGUE 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 resolutionbe adopted as read.

Upon discussion, Ms. Jean Wallace, Director of Parks and Recreation, stated this would bea 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 softballleagues. If the Board is interested, then City staff needs to put together a formal Request forProposals 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 softballfields, operation of the concession stand and would also request in the RFP that any new operatorwould not adversely affect the youth softball program. The Parks and Recreation AdvisoryCommittee recommended approval of the issuance of these RFP’s as long as any proposal wouldbenefit the City, save the City money, preserve the City’s youth softball program, improve the fieldconditions, 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 becauseonce the City solicits proposals, staff will bring back the proposals with staff recommendations infour to six weeks.


22 Proposed Ordinance O-05-74

An ordinance entitled, “AN ORDINANCE WAIVING THE REQUIREMENT OFCOMPETITIVE BIDDING FOR THE PROCUREMENT OF TWO WASTEWATER PUMPS FOR


MAZARN NO. 6 WASTEWATER LIFT STATION; CERTIFYING EMERGENCY ACTIONS BYTHE CITY MANAGER; AND FOR OTHER PURPOSES,” was taken from the agenda forconsideration.

A motion was made by Director Daniel, duly seconded by Director Edwards, that the rulesbe suspended and the ordinance be read for the first time by title only; and upon voice vote, themotion unanimously carried. The ordinance was then read for the first time by title only; and uponthe question “Shall the ordinance be passed as read?” and upon motion of Director Edwards, dulyseconded by Director Maruthur, that the ordinance be passed as read.

Upon discussion, Mr. Don Cochran, Director of Utilities, advised that approximately twoweeks ago, two pumps failed at the Mazarn No. 6 wastewater lift station. The replacement pumpsneeded to be compatible with the original equipment; and for that reason, they had to contact BTEnvironmental, which is the representative of that type of pump. He explained it was an emergencysituation, and they have already purchased the pumps; and the repairs have been made. The cost ofthe 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 followingvoted “aye”: Directors Maruthur, Smith, Weatherford, Edwards, Daniel, and Bush, total 6. DirectorJones was out of the Board Chambers and did not cast a vote; motion carried. Whereupon theordinance was declared passed.

23 Proposed Ordinance No. O-05-75 Calling the Special Election on Electronic Games ofSkill. This item was discussed earlier in the meeting.


An ordinance entitled, “AN ORDINANCE ADOPTING STORMWATER MANAGEMENTREGULATIONS; ESTABLISHING PENALTIES FOR VIOLATION; AND FOR OTHERPURPOSES,” was taken from the agenda for consideration.

A motion was made by Director Edwards, duly seconded by Director Maruthur, that the rulesbe suspended and the ordinance be read for the first time by title only; and upon voice vote, themotion unanimously carried. The ordinance was then read for the first time by title only; and uponthe 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.


Upon discussion, Mr. Steve Mallett, Public Works Director, explained this will regulatestormwater runoff. As mandated by EPA in the stormwater, Phase II, final rule of 1999, the Citywas given a list of items it needed to implement, and this was one of them. The City has alreadydeveloped a BMP (Best Management Practice) in its own stormwater program, and this was the nexton 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 similarordinances in other towns in Arkansas. Through this ordinance, the Board will approve, byreference, a stormwater management manual that addresses all of the design criteria for newconstruction in the City. The City held an official public hearing on August 5. Several localdevelopers 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 thestormwater manual and the stormwater ordinance. EPA mandated this program and handed downthe 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 includesstaffing and enforcement. With the fee ordinance, that is not sufficient to cover the cost of theprogram and will probably come to the Board next year with a request to add an additionalenforcement officer.

Director Weatherford asked what other cities have this in place, and Mr. Mo Shafii, permitsection, Chief of NPDS, advised that it is Rogers, Springdale, Conway, Maumelle, Jonesboro, andPine Bluff. He emphasized this is one of the requirements of this permit and has to be done, and allof the cities have to be in compliance by 2009.

Director Weatherford questioned who enforces this in other cities, and Mr. Shafii replied thatin some cities it is the engineering, code, or zoning. He explained that when some cities do aninspection 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. Shafiisaid that he had. He added that a major violation is if the construction site does not control thepollutant (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.


Mayor Bush then called for a vote on the motion to adopt; and upon roll call, the followingvoted “aye”: Directors Maruthur, Jones, Smith, Weatherford, Edwards, Daniel, and Bush, total 7;motion unanimously carried. Whereupon the ordinance was declared passed.


A resolution entitled, “A RESOLUTION ADOPTING A PERMIT FEE SCHEDULEPURSUANT TO ORDINANCE NO. 5378 (STORMWATER MANAGEMENT),” was taken fromthe agenda and read by title only.

A motion was made by Director Edwards, duly seconded by Director Jones, that theresolution be adopted as read.

Upon discussion, Mr. Steve Mallett, Public Works Director, advised this is the fee scheduledeveloped by Mr. Walt Catlett of Catlett Engineering; and these numbers are based off similar cityordinances, such as Rogers and Little Rock. These are minimal numbers the City will start with andwill adjust them if the City needs to over the coming years. He stressed this is not sufficient to coverthe cost of the program but will offset some of the inspection and enforcement costs.



A resolution entitled, “A RESOLUTION AUTHORIZING THE PROCUREMENT ANDINSTALLATION OF A VIDEO CAMERA SECURITY SYSTEM AND FIBER OPTICNETWORK IN THE DOWNTOWN AREA AND APPROPRIATING FUNDS THEREFOR,” wastaken from the agenda and read by title only.

A motion was made by Director Jones, duly seconded by Director Weatherford, that theresolution be adopted as read.

Upon discussion, Mr. Steve Mallett, Public Works Director, advised that staff has beenrequested 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,


but they are substandard. There would be two cameras in the parking deck and six along CentralAvenue, for a total of eight security cameras. The six along Central Avenue would be located onsignal poles thereby providing a good view from the fountain at Whittington Avenue south toaround Market Street and the Broadway Entertainment District, and the police will be able tomonitor vandalism on the streets. He stated there will be a fiber optic system installed for videoreasons. The City will be able to monitor it at any points along the system, but the proposal takesthe fiber optic cable all the way down to and through the Finance Department on Malvern Avenueand to the Police Department. Therefore, there are some secondary benefits to this with regard toInformation Systems. The Traffic Department will be able to use the video detection equipment andbe able to monitor that at Traffic Services. The cost for doing this is $30,000, which includesgetting the fiber and conduit from the Traffic Services shop on Cedar Street all the way down to thePolice Department. The City will realize a savings of about $6,000 to $8,000 a year on the cost itpays right now for the frame relay that it uses from one department to another that is hooked to CityHall 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 toolto view criminal activity in the area. He stated they are not going to monitor traffic with it and writepeople tickets because the law will not allow that, but there has been some vandalism at the parkingdeck; and this will help the Police Department monitor that and be able to identify the people whoare doing it.

City Manager Kent Myers added this was precipitated by the ongoing criminal activity, butthe City is also continuing to invest money downtown. The Christmas light display will beexpanded this year, and there have been problems with vandalism on the Christmas light display inthe past. After the first of the year, there will be a major sculpture exhibit in Exchange StreetParking Plaza; and these will be sculptures on loan to the City from throughout the country. Basedupon past experience with the existing sculpture by Long Hua Hu, the City wants to make sure thisinvestment is protected. The City has worked with Mr. Lee Hadlock, who is an expert on videocameras, and staff is proposing state-of-the-art equipment that will aid the Police Department inidentifying any criminal problems in the downtown area. This will be recorded on both tape andwill be able to be viewed directly by the desk sergeant at the Police Department; so if there iscriminal activity, they can immediately dispatch one of the police officers. He stressed this is a veryimportant crime enforcement tool for the downtown area.

Mr. Bob Nagey, 117 Hillcrest, retired telecommunications engineer from NASA, said thathe is not against this; but Hot Springs is a small, compact city; and there is an opportunity to havewireless internet downtown on this system. He mentioned that people come here from largermarkets, 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.


Mr. Tom Burnham, 310 South Patterson, information technology consultant, stated that fiberoptic provides a large amount of band width. The video that will be going over the fiber optic wouldnot be using a quarter of its total band width, which leaves a large amount of band width availablefor providing wireless access service by the City to the visitors. This kind of proposal can be donesecurely by implementing a private network over the same fiber optics, which would isolate thesecurity camera portion of the data stream and the wireless portion of the data stream available tothe public. He commented it would be nice to have on the City’s website and would help producesome revenue by visitors staying in town.

Mr. John Cooksey, 428 Ramble Street, said he produces instructional video tapes for thevideography 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 goingto cost Hot Springs, but he believes Hot Springs deserves that kind of publicity. He said this can beexplored at a later date, but he is asking the Board to have some kind of commitment so this doesnot get delayed for two or three years.

Director Daniel said he agrees with what the gentlemen have stated, but he does not wantto delay the vote to get the cameras installed. He asked if there is a problem once that is in, addingwireless internet service and was advised there is not much of a problem. Director Daniel statedthat he believes the Board should add that in.

City Manager Kent Myers advised that City staff is already studying this; and he, DeputyCity Manager Lance Hudnell, and Mr. Jeff Winter, Public Information Systems Director, have hada number of discussions over the last several months. He commented the speakers are correct in thatcities across the country are adding wireless internet throughout their communities, and it is a veryexpensive proposition but very worthwhile. He advised that some cities have gone to the votersasking 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 forproposals; 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 helpfacilitate this in the future if the City wants to go that route. He added that Hill Wheatley Plazaalready has wireless internet. He stated that in order to take this citywide, it is expensive and is anissue the Board will need to review, and staff can start providing the Board information. Hementioned that possibly the City can start funding it in the 2006 budget and over a period of severalyears, have it citywide. He noted there are various pros and cons the Board needs to consider. The


first thing the Board needs to decide is whether or not the City needs to be in the business or theprivate sector needs to provide this service.

Director Maruthur said she has been receiving calls about this proposal and would like tomake 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 BoardWork 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. Shepointed out this is something that could help internet cafes, downtown, and the City. She stated theBoard could make a commitment to listen to what these individuals have to say, who will not benefitfrom this, have to say.

City Manager Kent Myers said he agreed, but believes it will be better in a work sessionenvironment; 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 Boardis going to promote Hot Springs, wireless is the way to do it. She reported that she has beeninundated with telephone calls about the wireless and the fiber optic. She stated that individualsmake a conscious decision to stay at hotels that are wireless.



An ordinance entitled, “AN ORDINANCE WAIVING CERTAIN FEES, PROCEDURES,AND REGULATIONS RELATED TO DISASTER RELIEF EFFORTS AS A RESULT OFHURRICANE KATRINA; AND FOR OTHER PURPOSES,” was taken from the agenda forconsideration.

A motion was made by Director Jones, duly seconded by Director Maruthur, that the rulesbe suspended and the ordinance be read for the first time by title only; and upon voice vote, themotion unanimously carried. The ordinance was then read for the first time by title only; and uponthe question “Shall the ordinance be passed as read?” and upon motion of Director Daniel, dulyseconded by Director Jones, that the ordinance be passed as read; 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.

28 Report on Island Annexations

Deputy City Manager Lance Hudnell reported that at a past Board Work Session, the Boardasked that staff investigate areas known as islands for annexation. In Arkansas law, it allowsannexations of areas, by ordinance, that are completely surrounded by that same city limits. Thereare five areas in the City of Hot Springs that qualify. The first one is on the north side, one in theEastgate area, one in the Davidson Drive area, one in the Fontana Road area, and one in the PrettiPoint 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 toattend 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 theannexation. This also includes portions of the National Park, and the National Park was basicallyneutral or in support of it if all of the National Park could be included, which cannot be donebecause it only involves a part of the National Park that would be in this island. The residents in thearea of Eastgate had no problem with it because it was basically their backyards and does create anenforcement 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 twodifferent property owners. It is a condo complex that sometime ago was in condominium ownershipbut now is in a timeshare-type situation. There are two different companies that own it, but they arethe same company with two different company names on the deed. The Pretti Point area was leftout 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 onthe 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, Eastgateand Pretti Point). If the Board decides to proceed on the three annexations, the City will have tomail a registered letter to the property owners in those areas. The Board has to hold a formal publichearing and then annex them by simple passage of an ordinance.

A motion was made by Director Daniel, duly seconded by Director Maruthur, that staffproceed with the annexation of the three island annexations (Davidson Drive, Eastgate area, andPretti 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


28 Board of Directors Items

Director Jones announced that on Saturday, August 27, she welcomed 300 children fromaround the state. The UZURI King Team held a conference at the Convention Center, and SenatorTracey Steele, Representative Terry Smith, and Representative Bob Mathis were present. Sheexpressed appreciation to Gordon Mahoney, Cynthia Brown and Steve Arrison with the Civic Centerfor the kindness shown toward everyone present. She welcomed the survivors of Hurricane Katrinato Hot Springs. On Saturday, September 10, at 8 a.m., the Alzheimer’s Benefit will be held atGarvan Gardens.

Director Edwards stated on Saturday afternoon, a picnic was held for former Director BobWheeler 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 heldat Magic Springs, called Hurricaide; and 100 percent of the money collected will go to the victimsof Hurricane Katrina. There is no admission, but they will be selling wrist rubber bands that weredonated by Alliance Rubber Company. The only items they are going to accept are monetary. Theyare 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 MagicSprings.

Director Smith stated that on September 15, 16 and 17, the Quapaw Community Center willhold its annual rummage sale. This is a fund-raiser for the Center, and any clothing or itemsremaining will be donated to the hurricane relief effort.

Director Daniel reported that over a week ago, Mr. Stueart Pennington suffered a massiveheart attack. His family has been in business in Hot Springs since the early 1900's in the foodbusiness and then in the clothing business (Oaklawn Sportswear). He asked that everyone keep himand 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 lawrequires all City residents to be registered to vote 30 days prior to the election and will have untilOctober 8 to register in order to participate in that election.


2. The City had a great response in assisting victims of Hurricane Katrina and recognizedthe City departments involved in that effort. He has received numerous compliments on the AnimalControl Services. Mr. Dan Bugg immediately began assisting the victims with their animals andestablished some holding pens at the animal shelter. Over the last week, he has assisted a numberof visitors to the community with their special needs involving their pets. In addition, the City hasprovided 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 ofUnderstanding with the Arkansas Game and Fish Commission for the construction of two newfishing piers at Entergy Park. The plans are to construct the piers during the drawn-down thiswinter. Within the next six months, the piers will be constructed by the State. Also, on the ConsentAgenda, a contract was awarded to National Park Community College for employee training. Thisis a partnership between the City and the College. Ms. Sally Carder is the new president of theCollege, and he has discussed with her other cooperative ventures they want to explore over the nextseveral years and will bring to the Board for consideration. They have been discussing the possibilityof 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, theCity 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 thePresident. Mr. Dan Flowers, with the Arkansas State Highway and Transportation Department, willbe in town this week to begin meeting and discussing Higdon Ferry Road. The City staff met todaywith the Chairman of the Transportation Committee, Senator Terry Smith, and Mayor Bush. Thefederal funding comes over the next five years, but the City does not want to wait four or five yearsto get Higdon Ferry Road going. Staff will meet with Mr. Flowers this week to explore ways to getthat project under construction within the next two years.

4. There will be a work session between the Board and the Planning Commission onSaturday, October 1, 9 a.m., at the Embassy Suites, to discuss code enforcement, conditional usepermits, 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 moneyhas been paid to open the surgical center.


6. Over the last several years since 9-1-1, there has been a National Day of Peace; and therewill be a local recognition of Day of Peace on Tuesday, September 20, from 6 p.m. to 7:30 p.m. atthe Transportation Depot.

7. A request was received last week from FEMA for some of the City’s firefighters to assistwith the aftermath of Hurricane Katrina. The City is deploying four of its firefighters - FireMarshall 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 theirassignments and go directly from Atlanta to assist with the recovery efforts. Their services will bepaid 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 bethere for 30 days.

30 ADJOURNMENT

There being no further business to come before the Board, the meeting adjourned at 9:15p.m., to meet again on Monday, September 19, 2005, at 7:00 p.m.

ATTEST: _____________________ APPROVED:__________________ Lance Hudnell, City Clerk Mike Bush, Mayor

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MINUTES BOARD OF DIRECTORS MEETING SEPTEMBER … · BOARD OF DIRECTORS MEETING SEPTEMBER 6, 2005, ... Park for over 30 years. Mayor Bush recognized the residents of the community