Board of Directors - Regular Meeting

Good evening. I'd like to welcome everyone to our Tuesday, June 9th City of Little Rock Board of Directors agenda meeting. I want to welcome those that are here in attendance as well as those watching the streaming online. We'll start off with a presentation from the Little Rock Zoo. Ms. Susan Altrui.

Thank you, Mayor and Directors. It gives me great pleasure to introduce to you a new art installation at the Little Rock Zoo. It is Capybara sculptures. They are, yes, Capy, Director, we are so excited to have the Capybara sculptures, but we're really excited about these because they are interactive, they are mobile, we've brought them here for you to see in person, and they are very, very exciting to have at the zoo. We have 22 of them. They are all over the zoo. They will be mobile. You'll start seeing them around Little Rock as well. They are made of reclaimed plastic, so they are sustainable. And they have been sculpted by the internationally acclaimed group Cracking Art Collective. If you've been to Bentonville and you've been to the 21C Hotel, you might recognize this group because they've done the green penguins there. And they have done animal sculptures all over the world. So we're really honored that we have the exclusive capybara sculpture here in Little Rock at the Little Rock Zoo. This is in celebration of the zoo's new habitat that we are building with the bond project that is underway right now. It's the return of the capybaras to the zoo. And if you know anything about capybaras right now, they are having a moment. Just ask a child, ask a grandkid. Capybaras are incredibly popular right now, Director Phillips. They are very popular and having a moment. So we're really excited about capybaras because of that. You can see from the picture there that children love the capybaras. They're loving these sculptures and really excited about them. A little bit about Cracking Art. They are an art group that is based in Milan, Italy. They are known for these whimsical animal sculptures. And they commissioned this just for the Little Rock Zoo. And we did this with funds from donors from the Arkansas Zoological Foundation. So this was all done with private funds. And it has a conservation focus. As I mentioned before, this was made with recycled plastic materials. And the Cracking Art Collective has a conservation mission, which falls right in line with the conservation mission of the Little Rock Zoo and our purpose. There's some other examples of cracking art projects that are around the globe. You can see some other examples of their whimsical sculptures that they have produced. And there are capybara sculptures that are still available for sponsorship. There's a QR code there for anyone who might be interested in sponsorship. We have a couple of parents already who have adopted these whimsical creatures, so they're still available for adoption. And we do have donor recognition at the exhibit available. And wanted to point out that we have had a 12-year-old who has taken it upon himself to raise funds to be a Capybara parent. And Jackson has already raised $2,400 towards the sponsorship of a Capybara, which we think is just incredible that a child has taken it upon himself out of the love of Capybaras to do this for the Little Rock Zoo. and to bring these donations. He loves capybaras that much. So if you want to support Jackson and his efforts to raise funds for the Little Rock Zoo and for capybaras, there is a QR code made available there. And we want to thank you. Thank everyone for their support of the Little Rock Zoo and hope that you come out and see our capybaras. And we thank you for your support.

Susan, thank you so much for your leadership and all that you and your team are doing. We're grateful. Let's give her a round of applause.

Thank you, Mayor.

Sorry, we have one question. Not sorry, but.

Director Peck mentioned that this was named after her or the other board members.

They are available for an adoption of a small fee if you would like one named after you, Director. Absolutely. Any other questions?

No, thank you.

All right. We're going to quickly remove these off the table so you can continue with your meeting.

Thank you so much. As they remove, are there any questions on The modifications and or the consent agenda. We have four modifications. Director Lewis.

Yes, if I could get. We need to speak about items. Three and four, please. I'm so excited about these projects.

Good evening. So item three is the Boyd Street project from 43rd to 44th. It's a targeted community development project. It's the last of the four projects in the John Barrow neighborhood. And it's a street and drainage project.

I just wanted you to give details so we could have the public be aware of what's about to take place. Sure. And then for four?

Item number four is a small drainage project on Belden Avenue, and this is basically to alleviate some drainage issues in that area. It's a smaller part of that project. There's another project south of there, which is also part of the targeted community development money. This is not one of those.

But it's still enhancements, though. Yes, ma'am. We are thankful.

Manish, how long did it take to get to this process? I know it takes a lot when you go through engineering and bidding.

So each one of these projects takes several months to design. And once we have the project designed, we have to advertise it for a certain amount of time, minimum three weeks. And then we have to get it on the board agenda to get it approved. So from the time it's designed, it takes at least three to four months by the time contracts are signed for construction.

So a total of about a year?

About a year, yes. Thank you.

Thank you.

Thank you. Director Adcock. Nick Nicholas.

So at this point, the board's approved authorizing the agreement with the new and found team. what we're doing is if we then proceed with as it's currently structured, which will update the board as we're going through the process, but this begins, this allows us to begin, um, potentially reimbursing ourselves from future bond proceeds if we do do the construction and the design work for this project. Um, but at this point it really would be figuring out the true cost of the project through design and that work. That's really what would be initiated.

What is the cost of the project?

So the current estimated project costs is, um, About $25 million.

Thank you.

Yep.

Director Webb, then Director Miller, and I'll come back to Nick.

Thank you, Mayor Scott. On M3, could we get a little bit more of an explanation than is in the resolution and the board communication? Sure.

either Nick or yeah we'll start go with Nick. So this would be this is tied to the right study that was approved by the board and the right increases for the solid waste utility in December that the board approved effective February 1st as part of that rate study included the acquisition of 17 million dollars in vehicles and equipment over the next two years And so what this resolution does is expresses our intent. It is, there's supposed to be some companion items with it for the purchase of actual vehicles on the agenda. And so because we would be using tax exempt money, we need to have that stated intent of our intent to reimburse ourselves. The rate study was designed to be financing of the vehicles so that we can purchase more upfront and pay it out over the useful life. since we wouldn't have all those resources up front to purchase the vehicles, because we're talking the two that I've seen so far are about $9 million worth of vehicles and equipment.

And with how many vehicles does this much money buy the ballpark?

So the $17 million, it's going to It's a variety of different vehicles that they use in waste disposal. So it's going to be your rear and side loader vehicles, plus your knuckle booms, your landfill equipment, which all have various price tags.

A good way, as maybe Grant comes, but Director Webb, if you remember last year, We spent about close to $2 million and got about five vehicles and that was a variation from that standpoint. It could be 17 and it could be closer to 20 or 21, just depends on the exact vehicle. Again, prices today are different from prices yesterday, but I would say at least 15.

It's going to depend.

You have a better number for me, Grant? We like better numbers.

So the first wave will be 18 side loaders, six rear loaders, and five knuckle boom. And then shortly after that, we'll get five more side loaders and a couple roll-off trucks as well. And then on top of that will be a lot of our heavy equipment for the landfill.

Okay, thank you. That's good information.

Yep. No, just again, I just want to share kudos to the city attorney's office and Nick going back to the River Market Hall process as well as our bond, our finance counsel, bond counsel and finance advisor for this process. I know it's been a long time coming. Clearly, we've stated that we're going to close, but we get a chance to get some more money to pay back what we've committed to over a period of time, and it to directors, uh, comparison and, um, Phillips. This plays a role in downtown master plan. And I know director Phillips made it. So the river market would be back in the park, uh, funding for this. So just want to make sure, say thank you to both director Phillips and director computers, director Miller.

Thanks mayor. And Nick, you're on number five, so I wanted to stay with that. You estimated that the cost to the city could be up to $25 million. This resolution talks about going up to $20 million. Where's the $5 million gap?

Yeah, so the total project cost is estimated to be $25. The city's portion, as it currently stands, is $20. And the developer would kick in the $5 million for tenant improvements and things like that at the

And make sure we clarify the city's portions, LRCVB and the city of Little Rock. Correct. Okay. So that's the 20.

And then this $5 million. That's from the developer. The developer. Tenant improvements.

And can somebody give me a Reader's Digest overview of this comprehensive development agreement? What is that? I hadn't seen that. And I don't know if I want to see it. But I'd love to know what's in it since the MOU makes reference to it and we're getting ready to execute it, right? Or it has been executed already.

So we'll let Nick start and then we'll go to Director Comperish.

Okay. So the development agreement, I wish she was here. Tom worked on a lot of the fine details about the development agreement along with Director Comperish. with New and Found. So basically it lays out the process for the redevelopment. And so there's numerous outs throughout the process, but the first thing we have to do is we have to begin the process of designing and developing the full scope of the project. And so that would be the first phase that they would be doing. The contract hasn't been fully executed as of this point. That is why this resolution is on the agenda, because that needs to occur before the contract is fully executed. And so they're going to start with the design to figure out the full scope, the full cost of the project. Once we have the full cost of the project, if it comes back and they say it's $50 million, just as an example, we would bring that before the board. The board could say, no, there's no way I want to do that. And we could say, either we want to have them value engineer it down to what's unacceptable that the board is acceptable with, or we can say, we appreciate this. We're going to walk away. If we do that, then we can't do anything to redevelop the site for two years, I believe, is the number of years I think we put in there, because they would have done the design and they would have, with their design scope that they've done, we, of course, would have to pay them for the scope of work that they've completed through that point. If it comes back, the board says go ahead, then we would proceed through construction and development of the site based on that proposed scope and working with the developer to get the site open, operating, and running. I think the timeline is about two years, give or take, to get it all complete. How much do we owe them right now for the scope of work they've done so far? Right now, we don't owe them for anything because we haven't signed that agreement.

Okay. We're nothing.

Director Capers, you can take the remainder portion.

Nick did a great job. There are several layers we go through. Actually, it's the city manager, if we get to one point, that can sign off on the next layer. But the first layer is getting the design and get a cost estimate. The city manager says, after talking to the mayor, that we're okay. Then we go to the next phase. But we're going step by step so that we don't get into this too deep and then can't get out. So the first thing they're going to do in St. Louis is get the cost and give us how much money it's going to cost. If it looks okay, the mayor and the city manager will say, proceed and we'll proceed. Their $5 million, if I understand it correctly, comes in towards the end. But they've committed $5 million to this.

Their $5 million comes in first? Last. Last.

They're going to be doing it. But once you start it, it doesn't mean it comes first or last. It comes in because what they can pay for and what we can pay for differ. We can pay for hard costs that they can't pay for and vice versa. So the way that y'all got it figured out, if I understand all that, is that what we pay for, legally we can pay for, and what they pay for, they'll pay for a booth, they'll pay for the building of the booth, the refrigerator, all those sort of things that go along with it that you need in there. We're paying for the building and the expansion and closing in the pavilions and those sort of things. And Tom and his legal staff, as the mayor said, has done a great job of differentiating what we can put money into and what they can put money into.

So at this point, may I guess, counsel, What do we have to sign off on? Do we sign different phases? Once we sign this, it's the dominoes falling. We have to come back to us on something.

We've already, we're really at a, it's a multi phase project for a public private partnership. And so initially to get the ball rolling, uh, this board voted a few weeks ago, a few months ago, and that's when I guess maybe late last year or January, And that's where we were able to give the official notice that we will be shutting down operations at the end of this year, fall or December. This process allows us, as we receive dollars from our financial advisor and Stevens and Ms. Leanne is here as well, we can start putting those dollars back into the project. But also the project may be, as we all know, construction projects are never what they exactly seem to be when they tell us. And so if it's more, we have additional access to these funds and also real-time able to make transfers. Again, all this subject to the city board will come back before you as well. Then there are other goals that have to be hit that Chief Weber and I will review to move forward as we continue to move forward with this project. So the ball has already started. This is just, I don't want to call it ancillary, but it's a complement to the process.

It is, if you don't mind me. Yes, sir. It is saying we're committed, but we're not committed to $25 million. We're committed to a smaller amount. And when we get to that point, that's when those two say, it looks like we're good. The numbers look good. What we want to do is good. Let's move ahead. I mean, it is designed well by the people in St. Louis and here that none of us are committed to the whole thing. from day one. We're committed to taking a baby step to make sure everything works. And if everything works, then these two sign off of it and we go. But it doesn't have to come back to us. We're done.

Leanne, you want to add anything? You're good. All right. And Joseph, if you've got any questions, just ask the detailed questions of Nick, and he'll explain it to you.

Let me ask a question on number seven. Yes, sir. How unusual is it for us to decide a contract with a coin flip? I mean, is that something that happens?

It happens maybe... Twice a year. Twice a year. So since I've been here, it's happened twice. How long have you been here?

Two years. Okay. So the person or the company that got the contract, that has had the contract before?

That is correct. Well, they've done work for parks before. They also were awarded a prior contract for other sites as part of a different bid most recently.

So people that lost the contract, About coin flip, have they done business with the city before?

Yeah, they do.

The median mowings for Polk Works, Polk Lawn Care. I mean, because it just could make people unsure about the process that involves a coin flip. And so tell me who witnesses this coin flip? Where does it take place? I'm trying to imagine in my mind how this would happen.

Before you get to tell how it gets to a coin flip.

Both bids came in the same.

Make sure you share that to the public.

I've read the thing, but I'm just trying to.

To the public, they came with the exact price. That's the reason why. There's not an arbitrary coin flip.

Exact same price per unit of measure for the mowing. in this case. And so we end up with a coin flip. So the city's process has been historically that if there is a tie, we do a coin flip. That used to be written into the state procurement rules. They have since removed that.

But that's been our- Excuse me, I missed that part.

I'm sorry. The state procurement rules used to also be a coin flip as well. And so we basically followed those rules. In the last legislative session, they removed that. But our practice has always been to follow what the state had done. So we maintain our cornflip for a tiebreaker event. And so for a tiebreaker event, if there are two or more tied, if it's two tied, then we do the cornflip. If it's more than two that have the same bid, then it's a drawing of straws to select the winner.

Let's stop explaining this. Again, for the public, we were following the state. I want to be very clear.

So ultimately, as far as your question goes, the procurement team along with the parks team were witnesses to the coin flip. The procurement team worked with the parks team to designate who was heads, who was tails. They did the coin flip and so it was observed by three or four people to ensure How it came out was what everybody saw and agreed on.

Now you say that the state doesn't use the coin flip anymore. What did they do?

They amended, I'd have to go look at it, because they amended that whole section of state law in the last legislative session.

Okay. Well, I mean, that's how you get back on that. It just seems a little uncomfortable, certainly if I was the company and I lost based on a coin flip, but If that's the rules, that's the rules. I was just curious about that. That's all.

Yeah, that's been our standard practice. And it's happened twice since you've been here. It's happened twice since I've been here.

Okay, thank you. And Nick, I know the state did do this a few months ago as far as make that change because we've always followed the state. If they have a new rule, let's figure out what that rule is. We're working with Lynette's team on documenting our processes and putting it into our policies. All right. Thank you. Thank you. I just want to be clear. We're not doing anything different than the state has done, at least for the last three or four months. Let me ask. One second. Director Miller, you yield.

Absolutely. I was moving on.

I just want to make sure that we're clear. What is Zone 3? What area is that? You're making it very dramatic.

I'm not trying to. Good evening, board. I think Director Adcock asked me this last time for the last zone, so I can just name off the parks real quick, if that's helpful. It's Richland Park, Granite Heights, Benny Craig, Tom Park, Wakefield Park, Hanger Hill, Cheatham Park, Otter Creek Park, Morehart Park, Pinedale Cove, MacArthur Park, and Pettaway. And before you get into more detailed questions, I will say we have started doing, so Parks manages 6,500 acres. We mow about 2,000 acres. We contract out about 500 acres. And so what we do is we actually look at areas that are high use and we can contract that out and have that on a weekly turn. Then we have our staff who are operating large tractors that would mow larger areas, and maybe we might not get to that two-week turn, but it depends on the use of that space. I can go into more detail, but that's... That's all I need. You read my mind, so thank you.

Thank you. Director Couch. That's all I have, Mayor. Thank you, Director Phillips. Director Miller?

I was moving on to number nine. I didn't know if we were ready. We're ready. Okay. I was just curious about this one. Are these contracts that we do for these health services, are they just one-year contracts? They're not, I mean, it appears to be year-to-year. Chief, you probably know as the chief.

It is annually.

So we don't do these things multi-year. Why do we do them year to year? It seems like you do one and give them an option.

Some years it's according to if there are some changes in the MOU with the firefighters. And so there might be additional testing that may go into some of these processes. Got you. Thank you.

Any questions on the planning and zoning items, 11 through 20?

Here on 11.

Yes, sir.

When they do a public hearing, it's not a public hearing like what we do up here, is it? Or that's the reclamation authority holds their own public hearing. That happened right here at the board level. When like you open up the public hearing, that's not us doing it. Is that reclamation authority doing their own thing? We do it here. We do it right here. OK, so the public can get notice that they can come here for the public hearing. Yes. Yeah. You know, we're getting a lot of stuff about public input or lack of transparency and all that. I want to make sure, of course, this is our notice to the public. Do we do anything else to try to notify the public that we're getting ready to have a public hearing on this? Or is this it?

The same process we do with any other public hearing. I can get you those details on what that process is.

Yeah, I'm just more sensitive to... you know, the public calling for more notice. But, of course, this is just the notice that they get. This is the notice they get.

Yes, sir.

And I'll just go from there and try to get people to make sure they know about this. Yes, sir. All right. Thank you. Thank you.

Any more quick, Director Miller?

13 and 21, are they the same? Are they related?

Yes, sir. Number 13 is related.

I got an old agenda that's been updated. It's not? Okay.

What number? It's the land use. It's LU-260901, which is number 13. That goes to number 20, or number, excuse me.

They all get moved down one.

Yeah. 11 to 12. That goes to number 21. Z10295. Which goes with which now?

On here. If it was 11 on here, it's now 12.

Okay.

Okay.

No, I'm fine. I just look at what's on the line.

Yes, it's a land use amendment related to the resign.

Director Peck.

Thank you, Brad. Let's see. The numbers have changed, but it's sort of the same thing. I think I know what it is. Is it the athletic purchasing that property? Well, in the paper copy, it's 11 and 19. Okay, so 12 and 19. Look at it on here. Okay. Thank you, Lance. Yes, it's number 12.

Yes, so the R2 to AF, that is for the athletic club. They're just bringing that piece into, it's already zoned all AF anyway. So they're bringing that in, just making it all uniform.

And so is that the same for the other one? And I guess it would be 20. I can't see it. 19 on the paper, but 20.

Yes, number 20. Z10293. Yeah. Same thing.

Same thing.

Okay.

Thank you.

Board members, any more questions? Board members, any more questions? Any comments? Any comments? Any comments? Meeting adjourned.