CITY COUNCIL
REGULAR
MEETING
The regular meeting of the City
Council was called to order at
PRESENT: Mayor Kathy Harrison,
Aldermen Robert “Butch” Berry, Karen Lindblad, Gayle Money, Bill Ott and Earl
“Bud” Umland; Finance Director Diane Murphy, City Attorney Tim Weaver, Chief of
Emergency Services David Stoppel, Building Official Randy Mills, Arkansas
Community of Excellence (ACE) Coordinator Glenna Booth, City Advertising and
Promotion Commission (CAPC) Executive Director LeRoy Gorrell and City Clerk
Mary Jean Sell. Alderman Penny Carroll
was absent.
PLEDGE OF ALLEGIANCE TO THE
FLAG:
Mayor Harrison led the Pledge of
Allegiance to the Flag.
APPROVAL OF AGENDA:
Ms. Lindblad moved to approve the
agenda. Ms. Money seconded.
Ms. Money asked to add a discussion
of the drafting of an ordinance to change ambulance fees as New Business #7.
Mr. Berry moved to place New
Business #5, discussion of Ordinance 1948, to New Business #1 because of the
large number of persons attending the meeting wanting to participate in the
discussion. Ms. Money seconded All voted aye. Motion passed 5/0/0
To approve the agenda as amended,
all voted aye. Motion passed 5/0/0
Ms. Money moved to postpone the
reading of the March 10 minutes. Ms. Lindblad seconded. All voted aye. Motion
passed 5/0/0
COMMISSION, COMMITTEE, AND
AUTHORITY REPORTS AND VACANCIES
Planning Commission – Position 5 –
Expires 1/1/07
Cemetery Commission – Position 3 –
Expires 2/15/06 – Ken Fugate
Mr. Ott moved to approve Mr. Fugate’s reappointment to the Cemetery
Commission. Ms. Money seconded. All voted aye. Motion passed 5/0/0
DEPARTMENT HEAD COMMENTS
CAPC, Hospital, Fire/EMS, Finance and Building, ACE
CAPC Executive LeRoy Gorrell reported Eureka Springs had
a large representation at the recent 30th annual Governor’s
Conference on Tourism in Fayetteville. He said Eureka merchants had donated
items worth more than $10,000 to
City Council 3/22/04 1
the
annual scholarship benefit auction. The Greater Eureka Springs Chamber of Commerce
won a Henry Award in the Grand Old Classic Festival category for the Antique
Car Festival. The Eureka Co-op won a second place for advancement of tourism.
He
was able to purchase $31,000 worth of advertising for the city during the
auction for $6,100. Eureka Springs will now be part of a shared database with
the State of Arkansas.
Gorrell reported the number of FAM
(Familiarization) Tours to Eureka up from three to 32 in the past three years.
Hospital
Administrator David Cox submitted a written report, the first in several
months.
Chief
of Emergency Services David Stoppel reported there will be a First
Responders conference Saturday, March 26, at the Inn of the Ozarks Convention
Center.
Building
Official Randy Mills reported 36 permits had been issued through his office
by the end of February and through this date in March 44 have been issued. He
has sent out 16 violation notices. Of the 160 identified grease traps within
the city, 94 are now in compliance with city codes. He has received a certification
in code enforcement since attending a seminar in Little Rock. He will attend a
conference in May on the International Building Code (IBC) and Code Managing.
He has 160 open building permits, many of which need to be closed with a final
inspection, but he has not been notified that projects are completed.
A new procedure for tree cuts has
been instituted requiring property owners to get tags for trees to be cut. The
tags alert Mr. Mills of which trees need to be inspected for approval for
cutting.
ACE
Coordinator Glenna Booth gave a brief report on the continuing projects of
the nine ACE teams. She recently attended an economic development meeting in
Harrison and will be going to an ACE meeting in Little Rock. She will also be
going to Little Rock for a Certified Local Government (CLG) Conference for
information on the Department of Interior guidelines for preserving historic
properties and managing historic districts.
Hospital
Commission – Mayor Harrison announced Hospital Commission Chairman Diane
McClelland has resigned after approximately 20 years of service on the
commission.
COMMITTEE REPORTS:
Vision – Ott, Lindblad, Harrison and Richie The Vision Committee has not met. Members
agreed to meet at 3 p.m. Tuesday, March 30, at City Hall.
Festival
– Umland, Buchanan, Farthing and Harrison
Ordinances amending the Municipal Code have been prepared and will be
presented for discussion during the new business portion of this meeting.
Salary
& Personnel – Money, Murphy, Spencer and Harrison Ms. Money
City
Council 3/22/04 2
reported work has begun to review the job
descriptions of city employees. She plans to have meetings with department
heads to make sure they are accurate and consistent before they are approved.
Board
of Appeals – Berry, Mills Mr.
Berry reported they are drafting a preliminary ordinance establishing the board
and hope to have it ready for the April 12 meeting.
Mr. Ott moved to suspend the rules
and put a discussion of the Lucky 13 Starlight Cinema Festival as new business
#2. Mr. Umland seconded. All voted aye. Motion passed 5/0/0
Ms. Money moved to have a
five-minute break at 6:55 p.m. before starting the Public Forum. Mr. Umland
seconded. All voted aye. Motion passed 5/0/0
The meeting resumed at 7:07 p.m.
Mr. Ott moved to suspend the rules
and table discussion of Ordinance 1948, an ordinance amending Article II
Section 102-31 of the Municipal Code amending the definition of “gift shops,”
to give the CAPC a chance to review the proposed amendment and bring it back to
the council. Ms. Money seconded. All voted aye. Motion passed 5/0/0
PUBLIC FORUM
The public forum is held during the
last meeting of each quarter of the year to give residents opportunity to speak
to the city council regarding any matter.
Patricia
Helwig – does not want a new tourism tax imposed because it will discourage
new businesses and will make Eureka Springs have the most exorbitant tax rate
in the nation.
James
DeVito – The collection of the CAPC tax and the expansion of the
collectors’ list are two separate issues. He wants to give the new CAPC
director a chance to be effective. He asks that the Tourism Advisory Commission
be reinstated.
Virginia
Lindblad – A large part of local business comes from local and regional
shoppers who come to Eureka just to shop. These people are a solid economic
base for the community. If the CAPC tax is applied to many of the shops where
they make purchases, they will stop shopping here because they are not buying
souvenir items. The tax should only apply to souvenir items. The books in her
shop are not souvenir items and not classed by her industry as souvenir books.
She should not have to pay the CAPC tax.
Linda
McBride – She wants the council to address the deer population in town as a
public safety issue and to develop some way to deal with them.
Steve
Shell – Asks the council to keep an open mind on the selling of alcoholic
beverages in the City Auditorium. The concession area is not big enough and
patrons have no place to go to drink their beverages once they are purchased.
The theater area is all that is open to them. He would like to see the theater
area remain open so patrons can take beverages inside.
Shelly
Brown – She has purchased her business license for her antique business
City Council 3/22/04 3
and her bed and breakfast. She has noticed that the license is actually issued for a gift shop. She does not have gift items, only antiques. No other town shop collects the CAPC tax on antiques and “it just isn’t done.”
Kaye
Miller – She has one gift shop and two retail shops and has collected the
CAPC tax for 12 years in the gift shop and nine years in the retail shop. She
sells serious items and does not understand why she is required to collect the
CAPC tax. If the question of “who is to collect the tax” is in limbo, do
merchants continue to collect if everyone isn’t collecting. The situation is
very unfair.
Tom
West – He has three suggestions about the CAPC tax: (1) collect it across
the board using it for only advertising and promotion; (2) show results of the
advertising and promotion in some way other than retail sales; (3) print the
expenditures for advertising and promotion once a month in local newspapers so
the people will know where the money is being spent.
Michael
Johnson – He believes the CAPC ordinance refers to tourist-purchased items.
He does not believe he should have to pay the 2 percent tax since he is a local
resident. The CAPC needs to refocus on the business of tourism. There needs to
be more accountability and not exorbitant salaries for CAPC staff members. He
has made and investment in the town and he wants the town to make an investment
in him.
Joe
Zickmund – On March 15, seven letters were sent to local business owners
revoking their business licenses, including Aldermen Bud Umland and Karen
Lindblad. He believes they should recuse themselves from involvement in
changing or voting for the amendment to the Municipal Code regarding the CAPC
tax. He suggests repealing the CAPC tax and levying it only on restaurants and
lodging facilities. Petitions have been filed with the clerk asking for a
change in the city’s form of government.
Rogene
Paskins – The CAPC ordinance needs to conform with the state’s definitions
of who can be taxed, if the CAPC really wants to be fair to everyone. The CAPC
should come back to the council when it knows who can legally collect the tax
and when it can demonstrate how the money is being used effectively.
Nancy
Wines – She opened her business five years ago and was told to collect the
CAPC tax. She sells apparel and home furnishings. She had more questions about
the tax rates from customers last year than ever before. The CAPC and council
need to wake up and find ways to encourage business, not discourage it. Perhaps
the CAPC tax should be rolled back to 1 percent.
Sara
Armellini – submitted a written statement read aloud by Steve Roberson. She
believes the CAPC tax is unfair because all businesses to not collect it. It
causes confusion for customers because the sales tax rates are different from
store to store. This is not out of the business “pocket,” it to everyone’s
benefit to collect the CAPC tax.
Steve
Roberson, chairman of the CAPC – said he represented 124 merchants who
collect the CAPC tax. He said the commission never looked at expanding the
collectors just to collect more money, but because of complaints from other
merchants who do collect the tax. If so many people are so concerned about how
the money is being spent, why do they never come to the meetings? Eureka
Springs is the only city in Arkansas that depends solely on tourism for its tax
base. There is not a business in town that can prove it does not rely on
tourists for a large part of its business. Many local businesses do give
discounts to locals. There are 349 businesses collecting the tax
City Council 3/22/04 4
for the promotion of the entire city, why should a handful be exempt?
Diana
Clark – She appreciates the CAPC being willing to take another look at its
proposal. She is a licensed attorney and also owns a shop. There is a lot of
confusion about what is relevant to the levying ordinance. Sales and use tax is
her specialty. She suggests a 1 percent tax collected across the board. “What
is fair” doesn’t have anything to do with this ordinance. Since 2 percent CAPC
sales tax is the maximum, perhaps the categories could be reduced.
Michelle
McDonald – Several of the festivals didn’t go well last year. They need to
be spruced up. We need to support our town. She wants everyone to be community
minded. Perhaps some people should be paid to dress in costumes and serve as
ambassadors for the town to help bring more people to town.
Stan
du Bois – As a resident, I pay the 2 percent CAPC tax because I support
local businesses 12 months a year. Seventy-five percent of my business is from
local and regional shoppers. My business does not thrive on tourism, but we do
benefit from it. It is unfair to those of us who are working hard to grow our
businesses to continue to tax everything we touch. You have put us in a
compromising position.
LeRoy Gorrell – Lodging and restaurants have been collecting the CAPC tax 32 years. I remember business missing. Eighteen years ago, gift shops started collecting the tax. All businesses collecting the tax want to make sure it is done in a fair and equitable method. We want to continue the simple concept of advertising and promoting Eureka Springs on a regional level. This has been the goal of the CAPC since its inception – for the CAPC to advertise the whole town and to let businesses concentrate on the niches that benefit them.
Terry
McClung – He owns a furniture store. He is glad the CAPC is going to look
at the ordinance again. I do not intend to collect the tax.
Mildred Krebbs, David Blankenship
and Bob Brigham signed up to speak but declined when their names were called.
The public forum ended at 8 p.m.
Mayor Harrison announced a break before the council meeting resumed.
The council meeting resumed at 8:22
p.m.
OLD BUSINESS:
1. Discussion of the Save America’s Treasures
Auditorium grant (Butch
Berry)
Mr. Berry read a statement asking about the scope of
work, bidding procedures, hiring procedures for consultants and contractors,
bidding or not bidding for purchases of equipment, etc. He is concerned about
the lack of communication with the council about the project and its progress.
He has submitted questions to Mayor Harrison about the project and feels the
answers he received were vague or his questions were ignored. He is concerned
about life and safety issues still existing in the building.
Mayor Harrison said the scope of work came out of
the two master plans adopted by various auditorium committees. Some projects
were added as needs came to light. Backstage Connections, Inc. of Branson, MO,
was hired a professional consultants and construction managers. They hired subcontractors to do the
electrical wiring, painting, floor refinishing, chair repair and upholstery,
plumbing, carpentry, etc.
City
Council 3/22/04 5
Mr. Ott said he hoped the mayor and
council could learn from this experience. When council members request specific
questions for specific information, he hopes they can be answered. Not
answering questions makes operations seem clandestine.
Ms. Money asked the mayor to keep
the council informed about projects so these kinds of issues can be avoided in
the future.
2.
Discussion regarding Ordinance #1944, an ordinance amending the 2003 budget. (2nd
reading)
Ms. Money moved to suspend the rules
and place Ordinance 1944 on its second reading by title only. Ms. Lindblad
seconded. By roll call, four voted aye. Ms. Lindblad voted no. Motion passed
4/1/0
Mayor Harrison read the title of the
ordinance aloud.
Mr. Ott moved to approve Ordinance
1944 on its second reading by title only. Ms. Money seconded. All voted aye.
Motion passed 5/0/0
3.
Discussion regarding Ordinance #1946, an ordinance on fill and excavation. (3rd
reading)
Ms. Money moved to suspend the rules
and place Ordinance 1946 on its third reading by title only. Mr. Ott seconded.
By roll call, all voted aye. Motion passed. 5/0/0
Mayor Harrison read the title of the
ordinance aloud.
Ms. Money moved to approve Ordinance
1946 on its third reading by title only. Mr. Berry seconded. All voted aye.
Motion passed 5/0/0.
4.
Discussion of Ordinance #1941, an ordinance to amend Chapters 114-4(c) (6) and
70-4 of the Eureka Springs Municipal Code, regarding manufactured homes. (1st
reading)
Ms. Money moved to discuss Ordinance
1941. Mr. Berry seconded.
Mr. Weaver said there are two
versions of the ordinance: one with R-3 residential and agricultural zones
listed as suitable for manufactures homes and the other as only R-3 zones
suitable. The Planning Commission has recommended approving the ordinance with
only R-3 zones. Mr. Weaver recommends the ordinance with both areas. Currently,
the only R-3 zones in the city are full. Approving an ordinance allowing
manufactured homes in an area that does not exist puts the city in jeopardy.
The Planning Commission wants to
identify other areas suitable for R-3 zoning but it will take several months to
get the areas designated, to go through the public hearing and ordinance
approval processes. It was the intention of the Arkansas Legislature to have
these areas designated for manufactured homes by Oct. 1, 2003.
Mr. Weaver said putting manufactured
homes in agriculture zones makes the city open to legal challenges.
Planning Commission Chairman Dan
Bennett said there were no imminent requests to locate manufactured homes
within the city that he was aware of. He said it has been a goal of the
planning commission since 1996 to find more areas for R-3 areas.
Mr. Ott moved to place Ordinance
1941, with R-3 and agriculture zones, on its first reading. Ms. Money seconded.
Three voted in favor, Mr. Berry and Ms. Lindblad voted against. Mayor Harrison
voted yes to read the ordinance. Motion passed 4/2/0
City Council 3/22/04 6
Mayor Harrison read the ordinance
aloud.
Mr. Ott moved to approve Ordinance
1941 on its first reading. Ms. Money seconded. Three voted aye, Mr. Berry and
Ms. Lindblad voted no. Mayor Harrison voted aye to approve the ordinance on its
first reading. Motion passed 4/2/0
Ms. Money moved to have the
discussion of animal-drawn vehicle franchises moved to #3 under New Business.
Mr. Ott seconded. All voted aye. Motion passed 5/0/0
5.
Continued discussion of policies concerning alcohol in the Auditorium.
CAPC Director Gorrell distributed a
letter to the council setting out a policy for sale of alcohol in the
auditorium by non-profit organizations.
Ms. Money said she does not want to
see alcoholic beverages in the theater portion of the building. The city
council two years ago had addressed the issue and set the policy.
Mr. Weaver suggested the council
might want to amend the city’s ordinance regarding open containers, sales and
consumption of alcohol in a public place to allow the sale of alcohol for the
Willie Nelson concert March 26, 2004.
Ms.
Money moved to have Mr. Weaver draft such an ordinance and have it ready to be
read by the end of this meeting. Mr. Ott seconded. All voted aye. Motion passed
5/0/0. **
Mr. Ott moved to have a vote of
support for the policy set forth in Mr. Gorrell’s letter. Mr. Berry seconded.
All voted aye. Motion passed 5/0/0.
6.
Discussion of Lucky 13 Starlight Cinema Festival
Mr. Ott moved to recognize the
festival as an official city festival. Mr. Umland seconded.
Charlotte Buchanan and Janet
Farthing said the plans to show movies on the side of the Basin Spring Bath
House building on Saturday nights during the summer have been changed to
showing films on Sunday nights. The outdoor market in the adjacent parking lot
will be held from 8 a.m. to 4 p.m. on Sundays, starting June 13, and continuing
through mid-October. Movies will start on Sunday evening, June 13, and continue
through Sept. 19. There will be entertainments starting about 7 p.m. and the
movies will start at dusk.
Mr. Ott called the question on the
discussion. Mr. Umland seconded. All voted aye to call the question. Motion
passed 5/0/0
On the motion to recognize the
cinema festival as a summer event, all voted aye. Motion passed 5/0/0
7.
Discussion of animal-drawn vehicle franchises.
Ms. Murphy said there was a question
as to whether or not the city ordinance regarding these franchises requires the
business owners to purchase a franchise license and a business license or only
one.
Ms. Money said the new ordinance
regarding these franchises requires the vote on approving the franchises be
taken during a regular council meeting.
Mayor Harrison said applications
from all three existing franchise operators for
City Council 3/22/04 7
2004
have not yet been completed.
Mr. Ott asked that the application
forms be brought to the council table for review.
Mayor Harrison tabled the discussion
until the paperwork could be found and brought to the table. ****
**Mr. Ott moved to place Ordinance
#1954, waiving the offense of open container for the March 26, 2004, Willie
Nelson Concert with regard to alcohol sales and consumption in the City Auditorium,
with an emergency clause, on its first reading. Mr. Berry seconded. All voted
aye. Motion passed 5/0/0
Mr. Weaver read the ordinance aloud.
Ms. Money moved to approve Ordinance
1954 on its first reading. Mr. Ott seconded. All voted aye. Motion passed 5/0/0
Ms. Money moved to suspend the rules
and place Ordinance 1954 on its second reading by title only. Ms. Lindblad
seconded. By roll call, all voted aye. Motion passed 5/0/0
Mr. Weaver read the title aloud.
Ms. Money moved to approve Ordinance
1954 on its second reading by title only. Mr. Ott seconded. All voted aye.
Motion passed 5/0/0
Ms. Money moved to suspend the rules
and place Ordinance 1954 on its third reading by title only. Mr. Ott seconded.
By roll call, all voted aye. Motion passed 5/0/0
Mr. Weaver read the title aloud.
Ms. Money moved to approve Ordinance
1954 on its third reading by title only. Mr. Ott seconded. All voted aye.
Motion passed 5/0/0
Ms. Money moved to read the
emergency clause. Mr. Ott seconded. All voted aye. Motion passed 5/0/0
Mr. Weaver read the emergency clause
aloud.
NEW BUSINESS:
1.
Resolution #499 authorizing the city to apply for the Arkansas Rural Community
Grant Program.
Mr. Ott moved to approve Resolution
#499. Ms. Lindblad seconded. All voted aye. Motion passed 5/0/0
Mayor Harrison read the resolution
aloud. The resolution is to apply for a grant for the Parks and Recreation
Commission to apply for a grant for a grant to build the Skate Park to be built
in Harmon Park and appropriating $25,000 from capital funds to the project.
2. Discussion of purchases by Eureka Kids with capital
monies.
There was no one present to discuss this item. Ms.
Money moved to postpone until next meeting. Ms. Lindblad seconded.
3. Discussion regarding Ordinance #1947, an ordinance regarding permitted events during city festivals and repealing sections of city code prohibiting sales, banners and signs.
City Council 3/22/04 8
Mayor Harrison announced Mr. Weaver had determined
it was better to amend each section of the code with a separate ordinance. The
ordinances presented to accomplish this are Ordinances 1951, 1952, 1953.
Ms. Money moved to place Ordinance 1951, an ordinance amending section 86-4 of the Municipal
Code regarding prohibited signs, on its first reading. Mr. Umland seconded. Four voted aye, Ms.
Lindblad opposed. Motion passed 4/1/0
Mr. Ott read the ordinance aloud.
Ms. Money moved to approve Ordinance 1951 on its
first reading. Mr. Ott seconded.
Ms. Lindblad opposed approving the
ordinance since she had not received it until just before the meeting. She
moved to table the approval. Motion failed for lack of a second.
On the motion to approve, four voted
aye, Ms. Lindblad voted no. Motion passed 4/1/0
Mr. Ott moved to place Ordinance 1952, an ordinance amending
section 18-276 of the Municipal Code regarding the performance and sale of art
on public property, on its first reading. Mr. Umland seconded. All voted aye.
Motion passed 5/0/0.
Mr. Ott read the ordinance aloud.
Ms. Money moved to approve Ordinance
1952 on its first reading. Mr. Umland seconded. Four voted aye, Ms. Lindblad
opposed. Motion passed 4/1/0
Ms. Money moved to place Ordinance 1953, an ordinance amending
section 18-251 of the Municipal Code regarding peddlers. Mr. Umland seconded.
Four voted aye, Ms. Lindblad opposed. Motion passed 4/1/0
Mr. Ott read the ordinance aloud.
Ms. Money moved to approve Ordinance
1953 on its first reading. Mr. Umland seconded. Four voted aye, Ms. Lindblad
opposed. Motion passed 4/1/0
Mr. Ott moved to amend Ordinance
1953 line 2 section 4 regarding open air stands by permit from two (2) of three
(3) of the following: the Mayor, CAPC or Special Events Director. Ms. Money
seconded. Four voted aye, Ms. Lindblad opposed.
On the motion to accept Ordinance 1953
as amended, four voted aye, Ms. Lindblad opposed. Motion passed 4/1/0.
****Ms. Sell reported the
applications for 2004 animal drawn vehicle franchises could not be found.
Ms. Money moved to set a special
meeting to consider applications for animal drawn vehicle franchises for 2004
for 5 p.m. Monday, March 29, in the jury room of the Western District Carroll
County Court House. Mr. Ott seconded. All voted aye. Motion passed 5/0/0
4.
Discussion of Ordinance #1950, an ordinance regarding city regaining
jurisdiction of green space/alley connecting Owen and Mountain streets.
Mr. Ott moved to place Ordinance
1950 on its first reading. Ms. Money seconded. All voted aye. Motion passed
5/0/0
City
Council 3/22/04 9
Mayor Harrison read the ordinance aloud. The ordinance brings Dunlap Street back under the jurisdiction of the city, not the Parks and Recreation Commission.
Mr. Ott moved to approve Ordinance
1950 on its first reading. Mr. Umland seconded. All voted aye. Motion passed
5/0/0
5.
Discussion of proposed fee changes for the ambulance services.
Ms. Money moved to send the proposal
to the city attorney for review and to bring an ordinance to the next city
council meeting. Mr. Ott seconded. All voted aye. Motion passed 5/0/0
COUNCIL COMMENTS:
Mr. Ott said he and Mr. Berry would
form an ad hoc committee to address the deer problems in the city. Ms. Money
volunteered to assist.
MAYOR’S COMMENTS:
Mayor Harrison thanked all of those
who had spoken during the public forum.
ADJOURNMENT:
Ms. Money moved to adjourn at 11
p.m. Mr. Berry seconded. All voted aye. Motion passed 5/0/0
This is the signature page for the
City Council minutes of the March 22, 2004, regular meeting.
___________________________________
Mayor
Kathy Harrison
_________________________________
City Clerk Mary Jean Sell
City Council 3/22/04 10