Current City Board of Directors Packet

Transcription

Board of Directors
Meeting No. 19
City of Hot Springs, Arkansas
Tuesday, October 18, 2016
Invocation-Reverend Gregory Nettles
Pledge of Allegiance led by Mayor Ruth Carney
Call to Order
Order of
Business
Board Chambers, City Hall
Subject
1.
Roll Call of Board of Directors
2.
Consider Approval of the Agenda
3.
Consider Approval of Minutes
 Regular Meeting held on September 6, 2016
4.
Recognition of Guests:
 Proclamation: Pro Bono Week – Clayton Smith with Arkansas Legal Services
 Hot Springs Metro Partnership Quarterly Performance Report
Jim Fram
5.
Consider City Manager’s Report
6.
Board of Directors Announcements Regarding Upcoming Events
CONSENT AGENDA SECTION
Items placed in this section are a matter of routine business which shall not involve discussion by the
Board and/or the public. The Consent Agenda will be voted on in mass. However, if any two Directors
so desire, individual items may be discussed and/or voted on as a separate matter of business.
7.
8.
9.
10.
11.
12.
13.
Consider Resolution No. R-16-141 A Resolution Approving The City Of Hot Springs, Arkansas Financial
Statements For August 2016.
Consider Resolution No. R-16-142 A Resolution Adopting Revisions To The 2016 Budget By Authorizing
Amendments To The Solid Waste Fund.
Consider Resolution No. R-16-143 A Resolution Adopting Revisions To The 2016 Budget By Authorizing
Amendments To The District Court Fund.
Consider Resolution No. R-16-144 A Resolution Approving A Lease Between The City of Hot Springs and
Vmax Aviation For Use Of Hanger A5.
Consider Resolution No. R-16-145 A Resolution Approving The Purchase Of A Fire Department Kenworth
T370 Chassis Through The National Joint Power Alliance.
Consider Resolution No. R-16-146 A Resolution Approving The Purchase Of A Wastewater
Pumper/Vacuum Truck From Skymark Refuelers, LLC.
Consider Resolution No. R-16-147 A Resolution Approving A Contract With QualChoice As Third Party
Administrator For The City Of Hot Springs Self-Funded Employee Group Health Insurance Program.
NEW BUSINESS
14.
15.
Consider Ordinance No. O-16-53 An Ordinance Repealing Ordinance No. 5931; Adopting New Municipal
Utilities Extension and Connection Regulations; And For Other Purposes.
Consider Resolution No. R-16-148 A Resolution Approving An Appeal For A Water Extension and
Connection Request At 2531 Grand Avenue Pursuant To Ordinance No. 5931.
1
BOARD COMMENTARY (NO ACTION)
16.
Board of Directors Comments.
17.
Adjournment
PUBLIC COMMENTARY
2
Board of Directors
Regular Meeting Minutes
Tuesday, September 6, 2016
Invocation by Pastor Tim Hale
Pledge of Allegiance to the Flag led by Mayor Ruth Carney
Call to Order
Board Chambers, City Hall
Meeting called to Order by Mayor Ruth Carney at 7:00 p.m.
1.
Roll Call by City Clerk Lance Spicer
Present - Suzanne Davidson-District 1, Elaine Jones-District 2, Becca Clark-District 3, Larry WilliamsDistrict 4, Rick Ramick-District 5, Randy Fale-District 6, and Mayor Ruth Carney. Also present City
Manager David Frasher and City Attorney Brian Albright.
2.
Consider Approval of the Agenda
Motion to Amend the Agenda
Director Elaine Jones made a motion to adopt a revision, An Ordinance To Impose An Absolute Ban On
The Solicitation Of Any Item Within Streets Or From Median Located Within Streets, Or Whatever The
Classification, Within The City Of Hot Springs, Arkansas; To Declare An Emergency; And for Other
Purposes, Pursuant To Ordinance 16-51, duly seconded by Director Becca Clark that the Agenda be
amended. Upon voice vote, the motion carried 7-0;
Motion to Approve the Agenda as Amended
Director Randy Fale made a motion, duly seconded by Director Rick Ramick to approve the agenda as
amended. Upon voice vote, the motion unanimously carried 7-0.
3.
Consider Minutes of the Board of Directors Meeting:

Special Meeting held on August 9, 2016
Motion to Approve the Minutes as Presented.
Director Randy Fale made a motion, duly seconded by Director Larry William, to approve the minutes
as presented. Upon voice vote, the motion carried 7-0.
4.
Recognition of Guests
Mayor Carney welcomed all in attendance and acknowledged the following:



5.
Hot Springs Arts Advisory Committee Chairperson, Dale Blackwelder made a presentation on
the committee’s activities through 2016.
Friends of the Parks Chairperson, Ned Skoog presented the Mayor with a check.
Mayor Ruth Carney presented Proclamation to The Women’s Chamber of Commerce of Hot
Springs, Arkansas.
City Manager’s Report
3
City Manager David Frasher reported on the following items:










6.
Meeting update on an agreement reached between the City and the County concerning a
compatible Radio System.
West Central Arkansas Planning and Development Board Meeting.
A brief update on the Majestic Hotel Demolition project.
Hot Springs Open Bike Rally.
14th Annual Arkansas Alzheimer's Walk.
Trail of Tears Commemorative Motorcycle Ride.
ASMSA student’s sent thanks to Jean Wallace for a presentation.
Officer Savage of the Hot Springs Police Department assisted a patient having some difficulties.
Steve Arrison at The Hot Springs Convention Center sent his thanks to The Hot Springs Police
Department for a successful active shooter training drill.
Reinstating training program at the City in order to minimize risk in workplace.
Board of Directors Announcements
 Director Davis reported The Park Avenue Community Association will have their monthly meeting
on September 19th at Pullman Heights Baptist Church at 6:00 pm.
 Director Davis reported that The Hot Springs Area Cultural Alliance is looking for new committee
members, artists, volunteers, and potential board members.
 Mayor Ruth reported the 27th Annual Leadership Prayer Breakfast will be October 4th in Horner
Hall at 6:20 am.
CONSENT AGENDA
Motion to Approve the Consent Agenda
A motion was made by Director Becca Clark duly seconded by Director Rick Ramick that the Consent Agenda
be approved.
Roll Call Mayor Carney called for a vote on the Motion to Approve the Consent Agenda; and upon roll call, the
following voted “aye” Directors Davidson, Ramick, Jones, Clark, Williams, Fale and Mayor Carney, total 7.
Voting “no” none, total 0; motion carried 7-0.
7.
8.
Consider Resolution No. R-16-132 A Resolution Approving The City Of Hot Springs Financial Statements
For July 2016.
Consider Resolution No. R-16-133 A Resolution Approving Certain Amendments To The 2016 Budget.
9.
PUBLIC HEARING
Consider a Public Hearing On Ordinance Annexation Of The Lakeside Road Enclave.
Discussion:
Staff: City Attorney Brian Albright and City Clerk Lance Spicer.
Directors: Mayor Carney
This being the time and date set for a public hearing on Ordinance Annexation Of The Lakeside Road
4
Enclave, Mayor Carney declared the public hearing open.
Public Comment:
Speaking FOR the Item: Carolyn Wray.
There being no further comments, Mayor Carney declared the public hearing closed.
NEW BUSINESS
10.
Consider Resolution No. R-16-134
A Resolution entitled, “A Resolution Authorizing Additional Vehicle Licenses And Service Hours And
Approving Amendment Number Two To The Franchise Agreement With JJ’s Pedicab Company,” was
taken from the agenda and read by title only (City Attorney).
Motion to Adopt as Read: Thereafter, a motion to adopt as read was made by Director Elaine Jones,
duly seconded by Director Becca Clark.
Discussion: Richard Grandon, Intracity Transit Resident Advisor spoke to the item.
Speakers: Jason Bennett, Owner of JJ’s Pedicab Company spoke to the item.
Motion to Amend: Randy Fale made a motion to allow unlimited time operation for JJ’s Pedicab
Company, dully seconded by Larry Williams, upon voice vote the amendment unanimously carried, 70.
Roll Call: Mayor Carney called for a vote on the Motion to adopt; and upon roll call, the following
voted “aye Directors Davidson, Jones, Clark, Williams, Ramick, Fale and Mayor Carney, total 7. Voting
“no”, none, total 0; motion passed 7-0
Whereupon the Resolution was declared Adopted
11.
Consider Resolution No. R-16-135
A Resolution entitled, “A Resolution Approving An Application From Thacker Organization LLC., d/b/a
The Belle Of Hot Springs For Charter, Taxi And Sightseeing Permits With Three Trolley Licenses
Pursuant To The Hot Springs Transportation Code,” was taken from the agenda and read by title only
(City Attorney).
Motion to Adopt as Read: Thereafter, a motion to adopt as read was made by Director Larry Williams,
duly seconded by Director Rick Ramick.
Discussion: Richard Grandon, Intracity Transit Resident Advisor spoke to the item.
Speakers: Richard Thacker, Owner of The Belle of Hot Springs spoke to the item.
5
voted “aye Directors Davidson, Jones, Clark, Williams, Ramick, Fale and Mayor Carney, total 7. Voting
“no”, none, total 0; motion passed 7-0
Whereupon the Resolution was declared Adopted.
12.
Consider Ordinance No. O-16-49
Motion to Suspend Rules and Read by Title Only: A motion was made by Director Elaine Jones, duly
seconded by Director Becca Clark, that the rules be suspended and the Ordinance be read once by title
only; and upon voice vote, the motion unanimously carried 7-0.
An Ordinance entitled, “An Ordinance Amending The Code Of City Of Hot Springs, Arkansas By
Repealing Title 16, Article 6, Political Signs, In Its Entirety; To Declare An Emergency; And For Other
Purposes,” was taken from the agenda and read by title only (City Attorney).
duly seconded by Director Suzanne Davidson.
Discussion: Kathy Sellman, Director of Planning and Development spoke to the item. Speaking
AGAINST the Item: Renee Westfall.
Speakers: Directors Randy Fale, Larry Williams, Rick Ramick, Mayor Carney
Staff: City Attorney Brian Albright
voted “aye” Directors Davidson, Jones, Clark, Williams, Ramick, Fale and Mayor Carney, total 7. Voting
“no”, total 0; motion passed 7-0
Whereupon the Ordinance was declared adopted.
Motion to Adopt the Emergency Clause: City Attorney Brian Albright then read the Emergency Clause
located in Section 2. Upon completion Director Rick Ramick made a motion, duly seconded by Director
Suzanne Davidson to approve the Emergency Clause. Upon roll call, the following voted “aye”
Directors Davidson, Jones, Clark, Williams, Ramick, Fale and Mayor Carney, total 7. Voting “no”, none,
total 0; motion carried 7-0.
13.
Motion to Suspend Rules and Read by Title Only: A motion was made by Director Becca Clark, duly
seconded by Director Elaine Jones, that the rules be suspended and the Ordinance be read once by
title only; and upon voice vote, the motion unanimously carried 7-0.
An Ordinance entitled, “An Ordinance Approving C-3 Neighborhood/Office Commercial District Zoning
On 1.55 Acres At Approximately 2500 Malvern Avenue; And For Other Purposes,” was taken from the
agenda and read by title only (City Attorney).
Motion to Adopt as Read: Thereafter, a motion to adopt as read was made by Director Randy Fale,
duly seconded by Director Elaine Jones.
Discussion: Kathy Sellman, Director of Planning and Development spoke to the item. Tim Winston
spoke to the item.
6
Speakers: Directors Rick Ramick, Randy Fale
Staff:
14.
Motion to Suspend Rules and Read by Title Only: A motion was made by Director Randy Fale, duly
seconded by Director Becca Clark, that the rules be suspended and the Ordinance be read once by title
only; and upon voice vote, the motion unanimously carried 7-0.
An Ordinance entitled, “An Ordinance To Impose An Absolute Ban On The Solicitation Of Any Item
Within Streets Or From Medians Located Within Streets, Or Whatever The Classification, Within The
City Of Hot Springs, Arkansas; To Declare An Emergency; And For Other Purposes,” was taken from the
Agenda and red by title only.
duly seconded by Director Rick Ramick.
Discussion: Jason Stachey, Police Chief spoke to the item. Speaking FOR the Item: Michael Rodgers,
Stephen Ezell, and Chenyn Allen. Speaking AGAINST the Item: George Pritchet.
Speakers: Directors Rick Ramick, Randy Fale, Larry Williams, Mayor Carney
Staff: City Attorney Brian Albright
Motion to Adopt the Emergency Clause: City Attorney Brian Albright then read the Emergency Clause
located in Section 2. Upon completion Director Randy Fale made a motion, duly seconded by Director
Suzanne Davidson to approve the Emergency Clause. Upon roll call, the following voted “aye”
Directors Davidson, Jones, Clark, Ramick, Fale and Mayor Carney, total 6. Voting “no”, none, total 0;
Abstaining, Director Williams, total 1; motion carried 6-1.
BOARD COMMENTARY
15.
Board of Directors’ Items for Discussion
 Director Fale suggested that the Police Department partner with human service agencies for
the families impacted by the passage of the Ban On The Solicitation of Items From Public
Rights-of-Way.
7
16.
ADJOURNMENT
There being no further business to come before the Board, a motion was made by Director Elaine
Jones, duly seconded by Director Rick Ramick, that the meeting be adjourned; and upon voice vote,
the motion unanimously carried 7-0. The Meeting adjourned at 8:37 p.m. to meet again on Tuesday,
September 20, 2016, at 7:00 p.m.
DATE:
ATTEST:
Lance Spicer, City Clerk
APPROVED:
8
RUTH CARNEY, MAYOR
CITY OF HOT SPRINGS
AGENDA ITEM # 7
BOARD ACTION REQUEST
DISTRICT:
1
2
Date Submitted:
September 23, 2016
Date Action Requested:
October 4, 2016
3
R-16-141
4
5
6
Type of Action Requested:
 Resolution
 Ordinance
 Formal Action/Motion
 Other
 City Wide
 Other
SUBJECT: Approval of
financial statements for August
2016
RECOMMENDATION: Staff recommends approval of the August, 2016 financial statements.
DISCUSSION: Monthly financial statements are issued to keep constituents apprised of the financial
condition of the City of Hot Springs. The review and approval of these statements provides valuable
oversight. The statements are provided as an attachment to this board action request.
FISCAL IMPACT: There is no fiscal impact.
ALTERNATIVES: If these statements are found to be in error, they should not be approved.
Prepared by:
Approved by:
Dorethea Yates, Finance Director
David Frasher, City Manager
9
RESOLUTION NO. R-16-141
A RESOLUTION APPROVING THE CITY OF HOT SPRINGS FINANCIAL STATEMENTS FOR AUGUST, 2016.
NOW, THEREFORE, BE IT RESOLVED by the Board of Directors of the City of Hot Springs,
Arkansas:
That the City of Hot Springs Financial Statements for August, 2016 are hereby approved and are
on file for public inspection at the Bill Edwards Financial Center, 517 Airport Road, Hot Springs, AR.
PASSED:_____________________________
APPROVED:
ATTEST:_____________________________
LANCE SPICER, CITY CLERK
10
RUTH CARNEY, MAYOR
City of Hot Springs
Monthly Financial Report
August, 2016
Unaudited
11
August, 2016 Finance Director Commentary GENERAL FUND YTD General Fund net income has increased substantially over 2015 YTD. This is due to the good sales tax numbers and also the changes made in administrative fee policy for the enterprise funds. General fund expenses are running a little higher than 2015, but they were budgeted higher in 2016. Overall, this fund is looking good. EMPLOYEE WELLNESS FUND. The YTD loss for this fund is $315,370. Expenses for 2016 are up around $218,000, compared to 2015 YTD. While we would like to see a lower number, we did increase the funding to this account, so we are not as much in the red this year as we were at this time last year. In addition, the number of high cost claimants is down from 2016. If you look at the report on page 19,we have had black numbers for the past four months, so if that can continue, we may be close to break even for this year. All other funds are performing as expected this year. Dorethea Yates 9/26/2016 12
CityofHotSprings
BalanceSheet
August,2016
GeneralFund
Cash
Investments ‐ Non Current
Receivables
Due from other funds
Prepaid items
Payables ‐ Current
Accrued liabilities/expenses
Deferred Revenue
Payables ‐ Non Current
Payables ‐ Other
Fund Balance ‐ Unreserved
2016 YTD increase (decrease)
DistrictCourt
5,214,128.59
‐
2,343,392.42
617,056.01
41,995.72
(14,970.61)
(173,353.70)
(133,702.57)
‐
(8,899.29)
(5,780,806.94)
2,104,839.63
Cash
Receivables
Due to other funds
Police
Cash
Receivables
Prepaid Expenses
Due to other funds
Deferred Revenue
Fire
40,578.71
726,740.49
21,495.73
‐
(1,863.79)
‐
(304,791.02)
(44,868.70)
(372,787.46)
64,503.96
Street
Cash
Receivables
Prepaid Insurance
Due to Other Funds
Deferred Revenue
164,689.58
‐
29,247.81
(25,295.64)
‐
(137,765.60)
(21,929.80)
(399,936.72)
(390,990.37)
Cash
Receivables
Prepaid Expenses
Deferred Revenue
Interest Payable
200,501.45
‐
465,401.36
‐
‐
(255,941.30)
(203,388.27)
‐
(128,165.08)
78,408.16
IntracityTransit
1,009,518.20
‐
189,803.71
‐
16.21
(29,599.80)
(55,000.00)
(186,090.42)
(558,376.27)
370,271.63
1
13
Cash
Receivables
‐
139,032.25
‐
Due to other funds
(119,223.15)
(19,809.10)
‐
0.00
CityofHotSprings
BalanceSheet
August,2016
Parking
Cash
Receivables
Property Plant Equipment
Accumulated Depreciation
Compensated Absences
Fund Bal or Net Assets
Stormwater
32,547.61
‐
53.00
6,438,950.18
(2,062,633.91)
(786.63)
(324.20)
‐
(4,503,144.70)
(95,338.65)
Airport
Cash
Receivables
Restricted debt service funds
Inventories
Due to other funds
Bonds, Notes, Leases LT
Bonds, Notes, Leases ST
Interest Payable
Cash
Receivables
Deferred Revenue
512,062.31
‐
95,756.20
2,253,059.76
(356,091.89)
‐
(3,038.70)
(11,962.97)
‐
(2,332,613.96)
157,170.75
SolidWaste
157,978.39
104,551.93
910,062.66
63,309.03
2,436,069.52
52,509.92
37,057,901.15
(16,845,538.39)
(23,472.32)
(2,617,675.09)
(22,203.30)
(257,470.27)
(165,552.44)
(158,553.74)
(6,905.58)
(20,559,556.62)
125,454.85
2
14
Cash
Receivables
Deferred Revenue
1,581,107.70
817,953.10
774,752.49
1,494,821.96
12,874,140.30
(7,563,382.72)
(55,827.35)
(90,604.90)
‐
(448,368.26)
(10,149.20)
(8,457,070.79)
917,372.33
CityofHotSprings
BalanceSheet
August,2016
Water
Cash
Receivables
Cash ‐ Restricted
Inventories
Prepaid Insurance
Due to other funds
Def Charges on Bonds
Deferred Revenue
Interest Payable
Other Non Current Liabilities
Wastewater
5,439,066.77
4,045,134.65
1,463,547.98
6.55
1,249,474.98
10,224,610.58
11,010.28
31,217.88
113,290,536.14
(41,965,583.28)
(68,396.44)
‐
(63,173.80)
(24,202,306.41)
(1,062,940.27)
(422,723.62)
22,426.96
(53,584.00)
(247,494.26)
(830,748.28)
(65,940,692.31)
919,390.10
3
15
Cash
Receivables
Cash ‐ Restricted
Inventories
Prepaid Items
Due to other funds
Deferred Revenue
Interest Payable
Other Non Current Liabilities
2,485,141.28
2,463,340.50
1,859,739.13
203,437.88
4,606,163.89
22,829,634.47
‐
214,949.75
177,997,338.55
(83,329,797.82)
(1,714.77)
(6,075.00)
(83,810.10)
(71,625,217.05)
(2,335,732.01)
(506,052.22)
(11,418.00)
(828,683.30)
(378,049.00)
(52,726,080.80)
827,115.38
CityofHotSprings
BalanceSheet
August,2016
EmployeeWellness
Cash
Receivables
Due to other funds
UtlilityAdministration
34,548.64
‐
29,376.26
(417,767.00)
(28,446.19)
‐
66,917.52
(315,370.77)
Fleet
Cash
Receivables
Inventories
Due to other funds
Deferred Revenue
30,629.59
‐
‐
109,892.81
1,100,799.77
(768,704.85)
‐
(19,000.00)
(21,425.60)
(103,422.91)
(23,758.15)
(305,834.64)
(823.98)
4
16
Cash
Receivables
Prepaid items
Inventories
Due to other funds
Payables ‐ Non Current
16,120.08
2,309.00
‐
‐
671,533.31
3,097,510.04
(2,058,820.28)
(788.14)
(425,359.20)
(61,436.30)
(292,819.92)
(435.98)
(926,226.80)
21,585.81
CityofHotSpringsMonthlySummaryIncomeStatement
Fund
General Fund
District Court
Police
Fire
Street
Transit
Parking
Stormwater
Airport
Solid Waste
Water
Wastewater
Employee Wellness
Fleet
Utility Administration
FortheEightMonthsEndingAugust,2016
2015
YTD
Budget
YTD
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
Revenue
Expense
Net
14,981,160.53
13,625,273.31
1,355,887.22
670,885.70
656,249.13
14,636.57
7,840,653.81
7,850,959.84
(10,306.03)
5,522,360.76
5,523,741.36
(1,380.60)
2,095,383.02
1,909,531.81
185,851.21
839,824.41
839,824.41
‐
60,692.06
160,972.91
(100,280.85)
460,017.42
351,846.89
108,170.53
2,240,940.95
2,168,994.22
71,946.73
4,826,862.49
4,166,286.95
660,575.54
7,502,898.82
7,188,098.62
314,800.20
10,746,166.16
10,161,741.65
584,424.51
2,220,287.62
3,151,022.84
(930,735.22)
573,315.02
573,615.69
(300.67)
2,996,410.58
2,895,927.97
100,482.61
175
21,228,009.00
22,907,607.00
(1,679,598.00)
1,126,316.00
1,107,716.00
18,600.00
12,152,462.00
12,152,462.00
‐
9,337,338.00
9,337,338.00
‐
3,950,680.00
4,397,052.00
(446,372.00)
1,461,730.00
1,461,730.00
‐
88,400.00
249,719.00
(161,319.00)
682,000.00
668,413.00
13,587.00
4,820,188.00
4,406,653.00
413,535.00
7,069,600.00
6,958,026.00
111,574.00
12,428,100.00
11,872,984.00
555,116.00
16,036,000.00
15,602,749.00
433,251.00
3,259,000.00
3,259,000.00
‐
947,699.00
947,699.00
‐
5,068,017.00
5,747,408.00
(679,391.00)
2016
15,907,612.92
13,802,773.29
2,104,839.63
609,505.98
1,000,496.35
(390,990.37)
7,880,046.61
7,815,542.65
64,503.96
5,946,562.39
5,868,154.23
78,408.16
1,984,210.89
1,613,939.26
370,271.63
795,855.60
795,855.60
‐
59,583.57
154,922.22
(95,338.65)
501,800.80
344,630.05
157,170.75
2,240,636.64
2,115,181.79
125,454.85
5,363,767.13
4,446,394.80
917,372.33
8,011,963.20
7,092,573.10
919,390.10
10,764,626.59
9,937,511.21
827,115.38
3,053,916.87
3,369,287.64
(315,370.77)
579,788.53
580,612.51
(823.98)
3,273,076.83
3,251,491.02
21,585.81
Budget
22,584,169.00
23,720,589.74
(1,136,420.74)
1,048,454.00
1,048,454.00
‐
12,126,311.75
12,126,311.75
‐
9,417,840.04
9,417,840.04
‐
3,577,021.00
3,820,850.61
(243,829.61)
1,440,485.00
1,440,485.00
‐
87,200.00
243,984.96
(156,784.96)
687,000.00
764,713.53
(77,713.53)
2,453,639.00
3,649,655.00
(1,196,016.00)
7,204,897.00
7,258,245.00
(53,348.00)
11,942,100.00
11,682,614.50
259,485.50
15,634,800.00
16,323,771.80
(688,971.80)
4,194,211.00
4,194,211.00
‐
971,006.00
971,006.00
‐
5,730,907.00
5,730,907.47
(0.47)
GeneralFundSummary
2015
YTD
2016
Budget
YTD
Budget
%of
Budget
Revenue
$ 14,981,160.53 $ 21,228,009.00 $ 15,907,612.92 $ 22,584,169.00
70.44%
Expense
Board of Directors
City Manager
City Attorney
Human Resources
Finance
City Clerk
Public Information
Information Services
Planning and Development
Parks and Recreation
Public Works
Engineering
Traffic
Animal Services
Special Appropriations
24,491.95
223,848.37
246,214.93
236,255.57
590,615.38
150,666.53
92,470.52
431,349.49
756,254.13
1,099,134.72
493,684.86
128,987.10
413,082.54
469,098.12
8,269,119.10
56,480.00
295,465.00
375,763.00
377,297.00
938,187.00
248,144.00
157,540.00
788,666.00
1,270,170.00
1,794,537.00
941,722.00
198,942.00
679,322.00
735,471.00
14,049,901.00
23,052.00
277,803.91
252,017.65
208,191.12
636,971.80
154,566.94
103,213.16
471,122.16
758,651.80
1,140,272.75
506,714.06
132,990.93
380,226.52
439,138.97
8,317,839.52
78,252.20
373,823.00
378,642.00
392,110.00
1,024,272.00
237,193.00
166,915.00
707,354.00
1,229,108.00
1,928,311.76
911,760.33
203,189.00
635,916.50
690,929.16
14,762,813.79
29.46%
74.31%
66.56%
53.10%
62.19%
65.17%
61.84%
66.60%
61.72%
59.13%
55.58%
65.45%
59.79%
63.56%
56.34%
13,625,273.31
22,907,607.00
13,802,773.29 23,720,589.74
58.19%
Total Expense
Net Increase (decrease)
Composition of Expenses
Personnel Costs
Services
Supplies
Capital
Intergovernmental
Debt Service
Transfers out
Reserves
Total Expense
$ 1,355,887.22 $ (1,679,598.00) $ 2,104,839.63 $ (1,136,420.74)
$ 3,682,514.69 $ 5,702,315.00 $ 3,825,157.05 $ 5,683,661.00
963,187.17 1,811,150.00 1,129,185.47 2,035,841.55
369,102.47 683,247.00 342,461.15 644,796.00
364,006.40 596,681.00 295,990.59 548,977.40
82,454.55 98,600.00 49,815.53 137,460.00
153,346.44 257,854.00 215,162.27 321,380.00
8,004,562.91 13,589,810.00 7,945,001.23 14,157,723.79
‐
155,000.00 ‐
190,750.00
$ 13,619,174.63 $ 22,894,657.00 $ 13,802,773.29 $ 23,720,589.74
6
18
YTD Actual as a % of Total Exp
27.71%
8.18%
2.48%
2.14%
0.36%
1.56%
57.56%
CityofHotSpringsMonthlyIncomeStatement
2015
2016
+(‐)Comp
YTD
Budget
YTD
Budget
8,188,141.75
1,799,105.75
934,879.36
726,822.09
535,462.36
632,555.20
381,905.28
743,184.63
401,405.40
351,796.14
65,560.50
189,705.68
23,788.42
6,847.97
‐
14,981,160.53
386.64
19,992.98
4,112.33
‐
24,491.95
209,135.98
13,426.51
1,285.88
‐
223,848.37
215,319.22
22,970.52
7,925.19
246,214.93
192,690.91
33,378.21
8,186.45
2,000.00
236,255.57
460,989.50
118,262.42
11,363.46
‐
590,615.38
119,350.13
27,763.32
3,553.08
150,666.53
77,876.77
14,190.35
403.40
92,470.52
12,192,792.00
2,600,000.00
1,397,848.00
715,000.00
605,000.00
1,006,745.00
632,400.00
945,000.00
435,200.00
461,400.00
105,000.00
94,624.00
25,000.00
12,000.00
‐
21,228,009.00
580.00
24,300.00
11,600.00
20,000.00
56,480.00
263,377.00
17,438.00
4,650.00
10,000.00
295,465.00
314,847.00
43,616.00
17,300.00
375,763.00
298,810.00
61,087.00
17,400.00
‐
377,297.00
706,867.00
205,270.00
26,050.00
‐
938,187.00
181,719.00
53,325.00
13,100.00
248,144.00
125,773.00
22,317.00
9,450.00
157,540.00
8,706,057.04
1,859,521.00
1,403,914.64
738,736.48
557,592.72
687,596.37
469,868.67
811,950.04
212,608.22
286,581.21
45,737.60
96,436.49
23,015.67
7,996.77
‐
15,907,612.92
600.00
19,535.00
2,917.00
‐
23,052.00
262,686.22
13,039.75
2,077.94
‐
277,803.91
221,947.49
22,439.74
7,630.42
252,017.65
176,125.38
25,158.54
6,907.20
‐
208,191.12
476,374.08
153,056.96
7,540.76
‐
636,971.80
121,615.36
31,169.90
1,781.68
154,566.94
85,831.91
13,182.52
4,198.73
103,213.16
12,576,047.00
2,555,000.00
2,104,877.00
720,000.00
690,000.00
1,020,245.00
632,400.00
1,160,000.00
418,200.00
371,000.00
190,000.00
109,400.00
25,000.00
12,000.00
‐
22,584,169.00
580.00
48,172.20
9,500.00
20,000.00
78,252.20
335,885.00
20,938.00
7,000.00
10,000.00
373,823.00
321,467.00
39,675.00
17,500.00
378,642.00
304,310.00
69,200.00
18,600.00
‐
392,110.00
722,293.00
278,979.00
23,000.00
‐
1,024,272.00
172,184.00
58,559.00
6,450.00
237,193.00
131,309.00
22,371.00
13,235.00
166,915.00
to2015
GeneralFund
Rev
General Sales Tax
Franchise Fees
Chg for Serv ‐ In
Occupation License
Alcohol Related Rev
Intergov Rev
Fines
Oaklawn
Fees and Permits
Other Financing Src
Recreation Fees
Other Misc Revenue
Interest Revenues
Charges for Services
Donations
Revenue Total
Exp Board of Directors
111 Total
City Manager
113 Total
City Attorney
115 Total
Human Resources
117 Total
Finance
119 Total
City Clerk
123 Total
Public Information
125 Total
Personnel Costs
Services
Supplies
Reserves
Personnel Costs
Services
Supplies
Reserves
Personnel Costs
Services
Supplies
Personnel Costs
Services
Supplies
Capital Assets
Personnel Costs
Services
Supplies
Capital Assets
Personnel Costs
Services
Supplies
Personnel Costs
Services
Supplies
7
19
5.95%
3.25%
33.41%
1.61%
3.97%
8.00%
18.72%
8.47%
‐88.80%
‐22.76%
‐43.34%
‐96.72%
‐3.36%
14.37%
n/a
5.82%
35.56%
‐2.34%
‐40.98%
n/a
‐6.25%
20.39%
‐2.97%
38.12%
n/a
19.42%
2.99%
‐2.37%
‐3.86%
2.30%
‐9.41%
‐32.67%
‐18.52%
n/a
‐13.48%
3.23%
22.73%
‐50.69%
n/a
7.28%
1.86%
10.93%
‐99.42%
2.52%
9.27%
‐7.65%
90.39%
10.41%
2015
2016
+(‐)Comp
YTD
Budget
YTD
198 Total
Total General Fund Expense
324,215.47
97,968.20
9,165.82
‐
431,349.49
628,540.50
88,982.67
16,103.96
22,627.00
756,254.13
516,144.16
154,250.79
111,545.48
99,547.11
9,244.80
890,732.34
91,403.11
58,723.15
19,774.51
38,501.61
208,402.38
253,860.56
144,246.56
46,677.74
48,900.00
493,684.86
97,676.69
5,512.73
4,098.68
21,699.00
128,987.10
218,447.97
75,458.94
52,017.61
67,158.02
413,082.54
276,477.08
50,059.82
55,288.56
87,272.66
469,098.12
‐
38,000.00
82,454.55
153,346.44
7,995,318.11
‐
‐
8,269,119.10
13,625,273.31
624,255.00
133,311.00
31,100.00
‐
788,666.00
1,031,627.00
174,143.00
41,400.00
23,000.00
1,270,170.00
787,963.00
266,083.00
184,808.00
136,960.00
106,863.00
1,482,677.00
145,242.00
93,883.00
31,735.00
41,000.00
311,860.00
386,653.00
244,444.00
78,325.00
232,300.00
941,722.00
147,751.00
13,241.00
12,950.00
25,000.00
198,942.00
339,330.00
164,892.00
107,600.00
67,500.00
679,322.00
447,521.00
108,300.00
83,729.00
95,921.00
735,471.00
(100,000.00)
185,500.00
98,600.00
257,854.00
13,482,947.00
‐
125,000.00
14,049,901.00
22,907,607.00
337,616.94
93,398.21
16,755.01
23,352.00
471,122.16
654,940.30
54,878.93
10,036.37
38,796.20
758,651.80
533,628.33
188,662.73
127,960.16
61,618.63
15,618.60
927,488.45
94,104.96
60,872.65
20,892.48
36,914.21
212,784.30
234,266.42
152,822.52
44,051.95
75,573.17
506,714.06
100,624.69
5,875.17
3,171.07
23,320.00
132,990.93
225,632.13
79,628.62
47,288.50
27,677.27
380,226.52
299,162.84
91,985.14
39,251.88
8,739.11
439,138.97
‐
123,479.09
49,815.53
215,162.27
7,929,382.63
‐
‐
8,317,839.52
13,802,773.29
Net increase (decrease)
1,355,887.22
(1,679,598.00) 2,104,839.63 (1,136,420.74)
Information Services
127 Total
Planning and Development
145 Total
Parks
151 Total
Recreation
153 Total
PW Administration
170 Total
Engineering
171 Total
Traffic
175 Total
Animal Services
177 Total
Spec GF Approprtns
Personnel Costs
Services
Supplies
Capital Assets
Personnel Costs
Services
Supplies
Capital Assets
Personnel Costs
Services
Supplies
Capital Assets
Transfers Out
Personnel Costs
Services
Supplies
Capital Assets
Personnel Costs
Services
Supplies
Capital Assets
Personnel Costs
Services
Supplies
Capital Assets
Personnel Costs
Services
Supplies
Capital Assets
Personnel Costs
Services
Supplies
Capital Assets
Personnel Costs
Services
Intergovernmental
Debt Service
Transfers Out
Capital Assets
Reserves
8
20
Budget
to2015
521,944.00
3.97%
130,560.00
‐4.89%
30,850.00
45.30%
24,000.00
100.00%
707,354.00
8.44%
996,383.00
4.03%
150,575.00
‐62.14%
36,150.00
‐60.46%
46,000.00
41.68%
1,229,108.00
0.32%
813,892.00
3.28%
302,466.76
18.24%
183,491.00
12.83%
177,944.00
‐61.55%
113,000.00
40.81%
1,590,793.76
3.96%
148,075.00
2.87%
92,168.00
3.53%
47,275.00
5.35%
50,000.00
‐4.30%
337,518.00
2.06%
361,039.00
‐8.36%
311,346.09
5.61%
64,250.00
‐5.96%
175,125.24
35.29%
911,760.33
2.57%
151,173.00
2.93%
14,466.00
6.17%
‐29.25%
12,550.00
25,000.00
6.95%
203,189.00
3.01%
349,261.00
3.18%
150,930.50
5.24%
93,725.00
‐10.00%
42,000.00
635,916.50
‐8.64%
453,866.00
7.58%
146,935.00
45.58%
81,220.00
‐40.86%
8,908.16
‐898.64%
690,929.16
‐6.82%
(100,000.00) n/a
198,500.00
69.23%
137,460.00
‐65.52%
321,380.00
28.73%
14,044,723.79
‐0.83%
‐
160,750.00
14,762,813.79
0.59%
23,720,589.74
1.29%
2015
YTD
2016
Budget
YTD
+(‐)Comp
Budget
to2015
DistrictCourt
Rev Revenue Total
Exp District Ct Operations
203 Total
Dist Ct Non‐Shared Exp
Expense Total
Transfers In
Intergov Rev
Fines
Other Misc Revenue
Interest Revenues
Personnel Costs
Services
Supplies
Transfers Out
Services
294,943.43 542,958.00 318,101.03 542,442.00
251,859.75 477,358.00 276,117.23 473,212.00
57,248.70 85,000.00 7,849.20 11,800.00
65,996.55 20,000.00 5,743.72 20,000.00
837.27 1,000.00 1,694.80 1,000.00
670,885.70 1,126,316.00 609,505.98 1,048,454.00
472,932.96 819,056.00 477,339.80 802,466.00
95,413.25 152,160.00 80,931.62 164,428.00
9,219.89 15,500.00 7,555.96 17,560.00
35,599.35 55,400.00 392,685.17 ‐
613,165.45 1,042,116.00 958,512.55 984,454.00
43,083.68 65,600.00 41,983.80 64,000.00
656,249.13 1,107,716.00 1,000,496.35 1,048,454.00
14,636.57
18,600.00
7.28%
8.79%
‐629.36%
‐1049.02%
50.60%
‐10.07%
0.92%
‐17.89%
‐22.02%
90.93%
36.03%
‐2.62%
34.41%
(390,990.37) ‐
Police
Rev Expense Total
3,928,131.45 6,469,321.00 3,767,647.64 6,453,473.75
‐4.26%
2,456,442.02 3,657,828.00 2,611,817.11 3,772,814.00
5.95%
537,651.16 752,113.00 562,041.80 786,924.00
4.34%
536,062.78 709,000.00 476,582.23 480,000.00
‐12.48%
280,935.76 350,000.00 304,537.13 460,000.00
7.75%
39,601.77 95,000.00 40,844.76 80,000.00
3.04%
‐
‐
‐
‐
n/a
‐
‐
‐
‐
n/a
10,766.98 33,000.00 58,358.66 28,000.00
81.55%
50,947.90 86,000.00 58,102.24 65,000.00
12.31%
113.99 200.00 115.04 100.00
0.91%
‐
‐
‐
‐
n/a
7,840,653.81 12,152,462.00 7,880,046.61 12,126,311.75
0.50%
6,144,748.92 9,402,309.00 6,225,153.51 9,683,167.00
1.29%
388,819.99 680,435.00 376,436.67 597,625.00
‐3.29%
332,011.43 673,110.00 255,310.26 632,325.67
‐30.04%
13,000.00 13,000.00 30,000.00 30,000.00
56.67%
626,459.58 790,633.00 482,032.23 487,177.08
‐29.96%
332,984.98 536,975.00 423,681.61 640,017.00
21.41%
12,934.94 56,000.00 22,928.37 56,000.00
43.59%
7,850,959.84 12,152,462.00 7,815,542.65 12,126,311.75
‐0.45%
(10,306.03) ‐
Revenue Total
Exp Police
Transfers In
General Sales Tx
Intergov Rev
Other Financing Src
Oaklawn
Fines
Donations
Other Misc Revenue
Fees and Permits
Interest Revenues
Chg in FB/Net Assets
Personnel Costs
Services
Supplies
Intergovernmental
Capital Assets
Debt Service
Transfers Out
9
21
64,503.96 ‐
2015
YTD
2016
Budget
YTD
+(‐)Comp
Budget
to2015
Fire
Rev Expense Total
2,955,144.96 5,337,786.00 3,245,333.36 5,611,831.04
8.94%
1,637,628.36 2,438,552.00 1,741,211.41 2,515,209.00
5.95%
50,421.32 668,000.00 30,070.51 229,000.00
‐67.68%
570,727.25 513,000.00 596,299.38 570,000.00
4.29%
280,935.76 350,000.00 304,537.13 460,000.00
7.75%
16,257.52 23,200.00 19,161.90 23,000.00
15.16%
11,245.59 6,800.00 9,948.70 8,800.00
‐13.04%
‐
‐
‐
‐
n/a
‐
‐
‐
‐
n/a
5,522,360.76 9,337,338.00 5,946,562.39 9,417,840.04
7.13%
4,808,565.79 7,298,970.00 5,091,315.94 7,564,962.00
5.55%
249,863.48 744,922.00 288,027.30 801,275.39
13.25%
174,194.40 352,000.00 125,078.50 377,155.00
‐39.27%
60,217.46 668,000.00 66,712.51 240,924.65
9.74%
230,900.23 273,446.00 297,019.98 433,523.00
22.26%
5,523,741.36 9,337,338.00 5,868,154.23 9,417,840.04
5.87%
(1,380.60) ‐
Revenue Total
Exp Fire
Transfers In
General Sales Tax
Other Financing Src
Intergov Rev
Oaklawn
Other Misc Revenue
Fees and Permits
Donations
Personnel Costs
Services
Supplies
Capital Assets
Debt Service
78,408.16 ‐
Street
Rev Expense Total
1,448,161.40 2,640,000.00 1,547,063.11
591,938.04 1,096,317.00 382,000.00
7,454.77 158,000.00 5,709.58
18,940.00 30,000.00 17,500.00
3,228.00 ‐
4,595.00
25,660.81 26,363.00 27,343.20
2,095,383.02 3,950,680.00 1,984,210.89
704,229.53 1,140,949.00 739,909.33
793,269.62 2,207,680.00 450,232.68
202,029.24 367,227.00 186,968.03
111,491.06 525,076.00 110,750.54
98,512.36 156,120.00 126,078.68
1,909,531.81 4,397,052.00 1,613,939.26
185,851.21
Revenue Total
Exp Street
Intergov Rev
Transfers In
Other Financing Src
Fees and Permits
Interest Revenues
Other Misc Revenue
Personnel Costs
Services
Supplies
Capital Assets
Debt Service
2,340,000.00
1,003,721.00
191,800.00
25,000.00
2,000.00
14,500.00
3,577,021.00
1,137,215.00
1,671,605.77
375,523.84
440,800.00
195,706.00
3,820,850.61
(446,372.00) 370,271.63 (243,829.61)
10
22
6.39%
‐54.96%
‐30.57%
‐8.23%
29.75%
6.15%
‐5.60%
4.82%
‐76.19%
‐8.06%
‐0.67%
21.86%
‐18.31%
2015
YTD
2016
Budget
YTD
+(‐)Comp
Budget
to2015
IntracityTransit
Rev Transfers In
Intergov Rev
Operating Rev ‐ Oth
Other Misc Revenue
Revenue Total
Exp IT Section 18 Operating Personnel Costs
Services
Supplies
Capital Assets
Expense Total
224,446.86 370,065.00 211,147.97 369,094.00
514,051.00 938,365.00 479,667.00 922,091.00
86,785.56 130,000.00 90,171.30 127,000.00
9,027.62 15,000.00 7,935.70 14,000.00
5,513.37 8,300.00 6,933.63 8,300.00
839,824.41 1,461,730.00 795,855.60 1,440,485.00
434,643.97 701,612.00 427,034.52 717,606.00
260,828.11 460,268.00 243,005.75 448,079.00
144,352.33 299,850.00 120,544.84 269,529.00
‐
‐
5,270.49 5,271.00
839,824.41 1,461,730.00 795,855.60 1,440,485.00
‐
‐
Expense Total
60,524.45
‐
184.00
(16.39)
60,692.06
‐
9,798.16
49,585.22
3,589.53
‐
‐
98,000.00
160,972.91
86,200.00 58,884.18
2,000.00 ‐
200.00 172.00
‐
527.39
88,400.00 59,583.57
‐
‐
15,202.00 9,224.50
75,567.00 41,790.35
11,950.00 5,907.37
‐
‐
‐
‐
147,000.00 98,000.00
249,719.00 154,922.22
(100,280.85) (161,319.00) (95,338.65) (156,784.96)
‐
‐6.30%
‐7.17%
3.75%
‐13.76%
20.48%
‐5.52%
‐1.78%
‐7.33%
‐19.75%
100.00%
‐5.52%
‐
Parking
Rev Revenue Total
Exp Parking Non‐operating
Parking op
Fees and Permits
Interest Revenues
Other Misc Revenue
Cap Assets (contra)
Personnel Costs
Services
Supplies
Capital Assets
Transfers out
Depreciation
11
23
87,200.00
‐2.79%
‐
n/a
‐
‐6.98%
‐
103.11%
87,200.00
‐1.86%
‐
n/a
15,306.00
‐6.22%
68,700.00
‐18.65%
12,978.96
39.24%
‐
n/a
‐
147,000.00
0.00%
243,984.96
‐3.91%
2015
2016
+(‐)Comp
YTD
Budget
YTD
Budget
Services
Cap Assets (contra)
Depreciation
Reserves
Stormwater & Drainage Personnel Costs
Services
Supplies
Capital Assets
Expense Total
441,884.50
7,672.35
6,872.57
‐
3,588.00
460,017.42
‐
(76,449.22)
30,000.00
‐
98,124.33
201,763.02
21,959.54
76,449.22
351,846.89
657,000.00
12,000.00
9,000.00
‐
4,000.00
682,000.00
‐
(561,000.00)
45,000.00
50,000.00
150,373.00
384,390.00
38,650.00
561,000.00
668,413.00
473,015.09
7,673.71
7,925.00
10,000.00
3,187.00
501,800.80
‐
(168,887.81)
32,000.00
‐
86,694.84
205,173.32
20,761.89
168,887.81
344,630.05
108,170.53
13,587.00
157,170.75 (77,713.53)
636 Total
Expense Total
971,968.76
790,599.48
‐
13,803.42
4,776.70
446,416.33
6,376.26
7,000.00
2,240,940.95
(521,193.93)
‐
27,460.19
439,037.68
259,249.04
752,914.03
7,000.00
‐
683,333.28
1,647,800.29
‐
521,193.93
521,193.93
2,168,994.22
2,303,100.00
1,334,350.00
‐
24,000.00
5,800.00
928,035.00
22,250.00
202,653.00
4,820,188.00
(1,755,603.00)
3,500.00
32,375.00
665,484.00
536,576.00
1,868,675.00
226,043.00
146,000.00
1,025,000.00
2,748,050.00
49,000.00
1,609,603.00
1,658,603.00
4,406,653.00
809,159.32
806,976.67
‐
20,882.96
1,437.59
488,895.09
9,934.77
103,350.24
2,240,636.64
(697,357.72)
‐
21,105.98
449,307.85
231,163.12
567,311.24
103,350.24
123,855.00
733,333.36
1,532,069.07
9,610.00
573,502.72
583,112.72
2,115,181.79
71,946.73
413,535.00
125,454.85 (1,196,016.00)
to2015
Stormwater
Rev Op Rev ‐ Utility Chgs
Fees and Permits
Misc Income
Interest Revenues
Revenue Total
Exp Stormwater Admin
662,000.00
6.58%
12,000.00
0.02%
8,000.00
13.28%
1,000.00
100.00%
4,000.00
‐12.58%
687,000.00
8.33%
11,000.00 n/a
(372,428.12) n/a
141,000.00
6.25%
50,000.00
154,087.00
‐13.18%
367,926.53
1.66%
40,700.00
‐5.77%
372,428.12
54.73%
764,713.53
‐2.09%
Airport
Rev Chg for Merchandise
Fees and Permits
General Sales Tax
Interest Revenues
Intergov Rev
Other Misc Revenue
Transfers In
Revenue Total
Exp Non operating
Airport Operations
Subtotal
Airport Fed/State Proj
Cap Assets (contra)
Services
Debt Service
Personnel Costs
Services
Supplies
Transfers Out
Capital Assets
Depreciation
Services
Capital Assets
12
24
1,536,700.00
‐20.12%
841,339.00
2.03%
‐
n/a
34,000.00
33.90%
5,400.00
‐232.27%
‐
8.69%
36,200.00
36%
‐
93%
2,453,639.00
‐0.01%
(849,698.50) n/a
‐
31,532.00
‐30.11%
740,288.00
2.29%
443,600.00
‐12.15%
1,111,425.00
‐32.72%
213,200.00
93%
168,555.00
100.00%
1,100,000.00
6.82%
2,958,901.50
‐7.55%
9,610.00
100%
681,143.50
9.12%
690,753.50
3,649,655.00
‐2.54%
2015
2016
+(‐)Comp
YTD
Budget
YTD
Budget
684 Total
Expense Total
4,476,692.65
86,895.37
200,689.22
12,404.53
46,451.46
2,640.41
1,088.85
4,826,862.49
85,546.39
(584,319.39)
‐
‐
(498,773.00)
735,978.19
946,680.93
213,759.67
134,693.84
124,373.28
2,155,485.91
270,405.26
88,276.52
96,495.10
283,682.55
146,666.72
885,526.15
552,083.69
32,945.36
51,030.21
‐
153,333.36
789,392.62
521,284.91
30,371.77
50,988.95
165,943.00
66,066.64
834,655.27
4,166,286.95
6,873,700.00
97,000.00
67,400.00
‐
20,000.00
10,000.00
1,500.00
7,069,600.00
50,000.00
(1,483,808.00)
50,000.00
‐
(1,383,808.00)
1,274,132.00
1,569,223.00
414,000.00
442,198.00
186,560.00
3,886,113.00
426,871.00
147,439.00
237,200.00
555,667.00
220,000.00
1,587,177.00
826,046.00
82,810.00
141,700.00
170,000.00
230,000.00
1,450,556.00
766,658.00
81,383.00
152,500.00
315,943.00
101,504.00
1,417,988.00
6,958,026.00
4,904,004.77
78,848.89
331,100.34
‐
44,621.56
3,546.24
1,645.33
5,363,767.13
2.10
(1,116,946.26)
‐
‐
(1,116,944.16)
754,824.79
1,105,016.28
275,926.76
366,503.70
130,000.00
2,632,271.53
281,763.97
74,924.95
110,080.16
514,694.38
162,666.72
1,144,130.18
581,999.18
63,769.49
54,885.20
228,872.18
133,333.36
1,062,859.41
547,039.75
41,499.79
69,462.38
6,876.00
59,199.92
724,077.84
4,446,394.80
6,964,997.00
107,000.00
91,400.00
‐
30,000.00
10,000.00
1,500.00
7,204,897.00
50,000.00
(1,727,182.74)
86,000.00
‐
(1,591,182.74)
1,311,034.00
1,833,804.00
402,325.00
422,638.74
195,000.00
4,164,801.74
440,415.00
148,438.00
209,750.00
599,000.00
244,000.00
1,641,603.00
852,498.00
68,322.00
125,850.00
429,606.00
200,000.00
1,676,276.00
794,269.00
75,015.00
132,725.00
275,938.00
88,800.00
1,366,747.00
7,258,245.00
660,575.54
111,574.00
917,372.33 (53,348.00)
to2015
SolidWaste
Other Misc Revenue
Intergovernmental
Interest Revenues
Chg for Merchandise
Fees and Permits
Revenue Total
Exp Non Operating
680 Total
Administration
681 Total
Commercial
682 Total
Residential
683 Total
Special Services
Services
Cap Assets (contra)
Reserves
Debt Service
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
13
25
8.71%
‐10.20%
39.39%
n/a
‐4.10%
25.54%
33.82%
10.01%
##########
n/a
n/a
n/a
2.50%
14.33%
22.53%
63.25%
4.33%
18.11%
4.03%
‐17.82%
12.34%
44.88%
9.84%
22.60%
5.14%
48.34%
7.02%
100.00%
‐15.00%
25.73%
4.71%
26.81%
26.59%
‐2313.37%
‐11.60%
‐15.27%
6.30%
2015
2016
+(‐)Comp
YTD
Budget
YTD
Budget
7,105,503.25
219,121.32
102,266.16
11,732,000.00
296,100.00
363,000.00
11,500,000.00
316,100.00
82,000.00
to2015
Water
Other Misc Revenue
Intergovernmental
Contributed Capital
Interest Revenues
652 Total
Expense Total
20,875.00
55,133.09
7,502,898.82
1,785,264.83
(1,468,201.58)
‐
317,311.50
634,374.75
494,708.86
1,060,634.02
293,200.98
386,281.65
656,666.56
2,891,492.07
848,399.35
324,628.97
207,283.55
1,081,919.93
1,200,000.00
3,662,231.80
7,188,098.62
‐
37,000.00
12,428,100.00
2,884,094.00
(5,754,216.00)
300,000.00
469,100.00
(2,101,022.00)
786,508.00
1,642,083.00
580,900.00
1,285,430.00
985,000.00
5,279,921.00
1,263,572.00
815,125.00
346,602.00
4,468,786.00
1,800,000.00
8,694,085.00
11,872,984.00
7,483,867.27
249,684.49
91,294.99
‐
37,227.10
149,889.35
8,011,963.20
1,817,821.88
(833,682.45)
‐
435,495.50
1,419,634.93
512,058.19
783,698.40
251,945.87
46,278.18
656,666.64
2,250,647.28
866,788.55
373,993.96
194,104.11
787,404.27
1,200,000.00
3,422,290.89
7,092,573.10
314,800.20
555,116.00
919,390.10 259,485.50
Revenue Total
Exp Water Non‐Operating 650 Total
Water Production
651 Total
Water Distribution
Services
Cap Assets (contra)
Reserves
Debt Service
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
14
26
5.06%
12.24%
‐12.02%
n/a
‐
43.93%
44,000.00
63.22%
11,942,100.00
6.35%
3,207,766.00
1.79%
(3,672,822.94) n/a
73,403.00
454,281.00
27.14%
62,627.06
55.31%
803,405.00
3.39%
1,334,240.50
‐35.34%
578,100.00
‐16.37%
341,003.15
‐734.69%
985,000.00
0.00%
4,041,748.65
‐28.47%
1,281,040.00
2.12%
815,429.00
13.20%
349,950.00
‐6.79%
3,331,819.79
‐37%
1,800,000.00
0.00%
7,578,238.79
‐7.01%
11,682,614.50
‐1.35%
65.76%
2015
2016
+(‐)Comp
YTD
Budget
YTD
Budget
660 Total
Wastewater Treatment Personnel Costs
Services
Supplies
Capital Assets
Depreciation
661 Total
Wastewater Collection Personnel Costs
Services
Supplies
Capital Assets
Depreciation
662 Total
Wastewater Lift Statn
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
663 Total
Expense Total
9,803,917.30
300,000.00
216,990.44
302,832.98
4,134.84
118,290.60
10,746,166.16
1,371,001.85
(541,160.63)
‐
2,144,417.50
2,974,258.72
712,096.68
630,520.14
300,707.27
217,528.61
1,193,333.36
3,054,186.06
499,363.62
156,805.06
97,808.22
26,542.66
693,333.36
1,473,852.92
674,104.83
643,629.94
360,103.36
297,089.37
684,516.45
2,659,443.95
10,161,741.65
15,255,000.00
300,000.00
275,400.00
160,000.00
‐
45,600.00
16,036,000.00
2,064,343.00
(2,568,505.00)
‐
2,921,091.00
2,416,929.00
1,071,832.00
1,120,218.00
597,280.00
812,242.00
1,790,000.00
5,391,572.00
767,309.00
302,203.00
201,970.00
1,340,811.00
1,040,000.00
3,652,293.00
1,101,186.00
968,960.00
631,357.00
415,452.00
1,025,000.00
4,141,955.00
15,602,749.00
10,140,943.08
‐
219,544.27
366,905.87
‐
37,233.37
10,764,626.59
1,256,187.86
(766,288.71)
‐
2,106,666.46
2,596,565.61
741,418.19
695,411.68
334,511.10
540,069.89
1,176,666.64
3,488,077.50
515,905.55
117,389.16
65,450.75
89,248.23
693,333.36
1,481,327.05
622,799.22
631,203.73
297,234.23
136,970.59
683,333.28
2,371,541.05
9,937,511.21
584,424.51
433,251.00
827,115.38 (688,971.80)
to2015
Wastewater
Rev Revenue Total
Exp Wastewater Non‐op Op Rev ‐ Utility Chgs
Transfers In
Interest Revenues
Intergovernmental
Other Misc Revenue
Services
Cap Assets (contra)
Reserves
Debt Service
15,125,000.00
3.32%
‐
n/a
297,000.00
1.16%
195,000.00
17.46%
‐
n/a
17,800.00
‐217.70%
15,634,800.00
0.17%
2,333,376.00
‐9.14%
(2,056,260.75) n/a
‐
3,009,303.00
‐1.79%
3,286,418.25
‐14.55%
1,149,225.00
3.95%
1,411,318.79
9.33%
555,570.72
10.11%
1,187,957.75
59.72%
1,765,000.00
‐1.42%
6,069,072.26
12.44%
790,479.00
3.21%
353,663.15
‐33.58%
178,750.00
‐49.44%
450,395.00
70.26%
1,040,000.00
0.00%
2,813,287.15
0.50%
1,113,084.00
‐8.24%
952,736.00
‐1.97%
646,266.14
‐21.15%
‐116.90%
417,908.00
1,025,000.00
‐0.17%
4,154,994.14
‐12.14%
16,323,771.80
‐2.26%
EmployeeWellness
Rev Total Revenue
Exp Human Resources
Employees Health Ins
Expense Total
Interest Revenues
Other Misc Revenue
Supplies
Services
2,204,823.24 3,233,000.00 2,801,765.97
652.00 ‐
‐
14,812.38 26,000.00 252,150.90
2,220,287.62 3,259,000.00 3,053,916.87
54.64
54.64 ‐
3,150,968.20 3,259,000.00 3,369,233.00
3,151,022.84 3,259,000.00 3,369,287.64
(930,735.22) ‐
15
27
4,194,211.00
21.31%
‐
n/a
‐
94.13%
4,194,211.00
27.30%
‐
0.00%
4,194,211.00
6.48%
4,194,211.00
6.48%
(315,370.77) ‐
2015
2016
+(‐)Comp
YTD
Budget
YTD
Budget
612 Total
Expense Total
572,772.74
‐
542.28
573,315.02
(31,714.86)
(31,714.86)
489,348.98
45,187.13
10,887.13
31,714.86
13,333.36
590,471.46
6,546.59
312.50
8,000.00
14,859.09
573,615.69
946,899.00
‐
800.00
947,699.00
(38,673.00)
(38,673.00)
795,761.00
69,188.00
32,850.00
38,673.00
20,000.00
956,472.00
9,400.00
8,500.00
12,000.00
29,900.00
947,699.00
577,781.47
‐
2,007.06
579,788.53
‐
‐
498,270.32
44,314.08
13,015.75
‐
13,333.36
568,933.51
4,879.00
‐
6,800.00
11,679.00
580,612.51
970,506.00
‐
500.00
971,006.00
(15,000.00)
(15,000.00)
794,923.00
103,083.00
24,900.00
15,000.00
20,000.00
957,906.00
9,400.00
8,500.00
10,200.00
28,100.00
971,006.00
(300.67) ‐
to2015
Fleet
Rev Chg for Serv ‐ Int
Chg for Merchandise
Other Misc Revenue
Total Revenue
Exp Non Operating
610 Total
Fleet Service
611 Total
Vehicle Wash System
Cap Assets (contra)
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
Services
Supplies
Depreciation
16
28
(823.98) ‐
0.87%
n/a
72.98%
1.12%
n/a
n/a
1.79%
‐1.97%
16.35%
n/a
0.00%
‐3.79%
‐34.18%
n/a
‐17.65%
‐27.23%
1.21%
2015
YTD
2016
Budget
YTD
+(‐)Comp
Budget
to2015
UtilityAdmin
Rev Transfers In
Intergovernmental
Other Misc Revenue
Interest Revenues
622 Total
Expense Total
2,815,716.31
27,570.00
138,311.35
‐
14,812.92
‐
2,996,410.58
50,319.67
335.97
50,655.64
(188,125.31)
(188,125.31)
509,091.59
873,484.62
18,394.91
122,850.03
86,666.64
1,610,487.79
938,183.88
313,761.66
92,355.67
65,275.28
13,333.36
1,422,909.85
2,895,927.97
4,759,437.00 3,048,266.89
55,000.00 27,078.00
248,580.00 162,995.62
‐
‐
5,000.00 34,736.32
‐
‐
5,068,017.00 3,273,076.83
87,827.00 57,718.12
238.00 385.47
88,065.00 58,103.59
‐
(121,585.82)
‐
(121,585.82)
727,056.00 431,051.15
1,516,946.00 1,166,106.73
53,700.00 23,243.23
479,891.00 55,624.00
130,000.00 100,000.00
2,907,593.00 1,776,025.11
1,500,563.00 961,965.40
627,777.00 427,903.38
403,910.00 68,450.90
199,500.00 65,961.82
20,000.00 14,666.64
2,751,750.00 1,538,948.14
5,747,408.00 3,251,491.02
100,482.61
(679,391.00) 21,585.81 (0.47)
Revenue Total
Exp Information Services
127 Total
Utility Adm Non Op
620 Total
621 Total
Other Services
Personnel Costs
Services
Cap Assets (contra)
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
Personnel Costs
Services
Supplies
Capital Assets
Depreciation
17
29
5,412,068.00
45,000.00
268,839.00
‐
5,000.00
‐
5,730,907.00
89,808.00
240.00
90,048.00
(181,106.85)
(181,106.85)
711,293.00
1,998,130.54
46,200.00
109,106.85
150,000.00
3,014,730.39
1,535,994.00
835,691.93
311,550.00
72,000.00
52,000.00
2,807,235.93
5,730,907.47
7.63%
‐1.82%
15.14%
n/a
57.36%
n/a
8.45%
12.82%
12.84%
12.82%
n/a
n/a
‐18.10%
25.09%
20.86%
‐120.9%
13.33%
9.32%
2.47%
26.67%
‐34.92%
1.04%
9.09%
7.54%
10.94%
City of Hot Springs
Daily Cash Report
August, 2016
Fund #
001
216
217
218
219
221
222
223
224
225
229
230
232
314
322
332
346
372
382
383
390
412
440
441
446
530
625
629
630
635
640
645
646
649
650
655
721
751
761
763
764
Name of Fund
General Fund
Probation Fee Fund
Garland Cty District Ct
District Ct Automation Fd
Recycling Center
Police Fund
Fire Fund
Fire‐State Turnback
Jail Tax Fund
Criminal Justice
Street
Street ‐ Highway Tax
CBID #3 Maintenance
HS Creek Archway
Higdon Ferry Widening Prj
Urban & Comm Forestry Grn
Historic Preservation
Selective Traff Enf Prog
Intracity Transit
Intracity Trans Cap Fund
CDBG Grant
Major Capital Projects
Water Con Fd Series 2014
Water Con Fd Series 2015
WWTR Con Fd Series 2013
Series 2009 Debt Serv Fnd
Parking
Stmwater/Drainage Imp Fd
Airport
Solid Waste
Water
Wastewater
Waste Wtr Impact Fee Trst
Employees Wellness Fund
Fleet Service
District Court Agency Fd
Recyc Center Distribution
Red Oak Trst (ROSIDSGPCF)
Royal Water District
Shady Heights Imp Fund
30
2015
4,500,462.64
‐
311,251.67
282,814.48
‐
213,371.63
621,435.74
38,453.81
435,877.20
‐
151,605.92
603,841.68
‐
‐
48,608.39
1,738.98
15,252.20
‐
‐
26,416.47
‐
‐
2,413,614.27
‐
3,475,347.03
10,316.74
33,826.56
655,510.63
738,281.27
2,304,569.91
3,858,680.28
1,339,622.58
96,567.95
1,783.52
20,515.09
78,561.02
224,951.72
6,478.05
8,308.77
70,727.66
253,097.00
18
2016
5,214,128.59
356,432.83
164,689.58
230,657.61
‐
40,578.71
200,501.45
43,775.27
428,836.01
‐
187,491.53
822,026.67
‐
‐
72,513.39
1,923.18
8,878.49
‐
‐
‐
‐
‐
50,140.40
999,619.72
2,201,382.62
91,286.08
32,547.61
512,062.31
157,978.39
1,581,107.70
5,439,066.77
2,485,141.28
181,250.54
34,548.64
30,629.59
16,120.08
556,725.69
2,367.10
8,308.77
72,467.09
42,397.67
City of Hot Springs - Employee Wellness Fund Report
2016
Revenue
Premiums Received
Cobra Premiums
Dependent Premiums
Interest Earned
Stop/Loss Ins Claim Refund
Miscellaneous Revenue
Rebates
Net Increase/Dec in FV
Total Revenue
January
330,350
2,002
20,603
352,955
February
324,455
7,086
21,409
10,421
363,371
March
324,455
636
21,057
346,148
April
324,455
7,173
21,016
17
352,661
May
324,455
4,363
20,971
39,900
6
389,696
June
324,455
3,155
20,930
30,760
379,300
July
324,455
3,709
20,476
147,882
496,521
August
324,455
5,210
20,435
23,166
373,266
Expenses
Reinsurance Premium
Claims Expense
Prescription Costs
Subrogation Costs
Wellness Program
Dental Expenses
Life Insurance Premium
Health Fair Expenses
Employee Assistance Plan
Employee Awards Plan
ACA Federal Tax
Administrative Fees
Administrative Fees -Broker
Administrative Fees - Dental
General Office Supplies
Total Expenses
24,906
164,048
67,364
2,877
29,510
20,269
3,693
2,921
27,104
20,523
7,250
1,543
372,008
30,882
276,821
46,214
1,031
17,248
21,226
3,796
19,604
7,250
1,535
425,606
27,624
372,997
113,177
2,762
17,076
19,968
3,804
19,464
7,250
1,532
55
585,708
27,037
302,114
73,254
(1,611)
17,241
17,818
3,811
2,921
21,218
7,250
1,527
472,579
26,994
192,846
67,134
468
22,530
21,771
3,800
19,969
7,250
1,529
364,291
27,186
195,293
78,554
7,172
21,974
14,317
3,798
20,074
7,250
1,529
377,147
27,057
212,795
82,433
1,030
24,096
15,133
3,792
2,921
21,319
7,250
1,537
399,363
26,951
193,856
83,745
(12,023)
21,520
25,773
3,790
20,194
7,250
1,529
372,586
Net Gain (Loss)
(19,053)
(62,235)
(239,560)
(119,919)
25,405
2,153
97,158
680
Cash Balance per General Ledger
378,821
320,449
88,873
34,394
6,309
786
34,549
Current Due to Other Funds
Actual Cash Balance
378,821
320,449
54
-
(30,000)
(30,000)
-
(27,000)
-
88,873
(29,946)
4,394
6,309
(26,214)
34,549
19
31
September
-
October
-
November
-
December
-
YTD
2,601,535
33,334
166,897
241,707
10,444
3,053,917
-
-
-
-
218,638
1,910,769
611,876
1,706
171,193
156,274
30,284
8,764
27,104
162,364
58,000
12,262
55
3,369,288
-
-
-
-
(315,371)
-
-
-
-
-
City of Hot Springs - Employee Wellness Fund Report
YTD Comparison
Revenue
Premiums Received
Cobra Premiums
Dependent Premiums
Interest Earned
Stop/Loss Ins Claim Refund
Miscellaneous Revenue
Rebates
Net Increase/Dec in FV
Total Revenue
Expenses
Reinsurance Premium
Claims Expense
Prescription Costs
Subrogation Costs
Wellness Program
Dental Expenses
Life Insurance Premium
Health Fair Expenses
Employee Assistance Plan
Employee Awards Plan
ACA Federal Tax
Administrative Fees
Administrative Fees - Broker
Administrative Fees - Dental
General Office Supplies
Total Expenses
Net Gain (Loss)
Current Cash Balance
Current Due to Other Funds
2010
2011
2012
2013
2014
2015
3,000,719
83,880
9,545
185,306
265
33,404
(344)
3,312,775
3,159,415
61,414
10,113
19,727
42,340
1,051
3,294,059
3,122,161
53,362
9,976
17,642
317
27,332
3,230,790
3,070,266
64,332
3,437
259,713
25,295
(2,314)
3,420,729
3,826,177
37,270
254,301
520
41,703
2,464
26,042
4,188,478
4,804,018
56,735
239,006
652
590,861
(20)
14,794
5,706,047
319,237
1,911,914
585,710
10,661
207,312
207,589
336,295
1,630,907
623,899
35,298
163,434
184,001
295,370
1,583,037
695,922
17,144
176,845
187,516
338,042
1,875,183
709,900
31,631
210,768
204,747
315,543
2,498,340
860,385
10,047
192,226
203,398
1,959
11,818
222,920
1,864
11,661
235,615
7,404
8,607
217,645
5,900
9,066
8,363
197,331
3,262
11,666
222,757
43
3,479,163
172
3,223,147
200
3,189,690
54
3,590,986
55
4,317,680
295,562
3,800,782
769,275
54,074
224,618
192,462
47,622
763
11,856
39,711
234,921
14,500
18,273
55
5,704,473
(166,388)
70,912
41,100
(170,258)
(129,202)
440,701
530,558
546,012
165,745
43,001
20
32
1,574
2
(42,234)
2016
(through 8/31)
2,601,535
33,334
166,897
241,707
10,444
3,053,917
218,638
1,910,769
611,876
1,706
171,193
156,274
30,284
8,764
27,104
162,364
58,000
12,262
55
3,369,288
(315,371)
34,549
-
CITY OF HOT SPRINGS
AGENDA ITEM # 8
DISTRICT:
1
2
Date Submitted:
September 23, 2016
October 18, 2016
3
R-16-142
4
5
6
 Resolution
 Ordinance
 Other
 City Wide
 Other
SUBJECT: Amendment to the
2016 budget
RECOMMENDATION: Staff recommends amending the 2016 City budget for additional revenue and
expense in the Solid Waste Fund.
DISCUSSION: The City of Hot Springs Solid Waste Department is utilizing a contract with Suburban
Sanitation to provide residential waste collection in areas that were annexed. This was not a known at
the time of the passage of the 2016 budget, so the revenue and expense for this were not included. The
2016 revenue from these additional residences is estimated to be $80,000. The collection expense that
will be paid to Suburban Sanitation is estimated to be $50,000. The following budget adjustment is
needed to accommodate these transactions:
Residential Collection Fees (635.4391)
$80,000
Residential Solid Waste Contractual Services (635.9.683.616.5250) $50,000
Increase
Increase
FISCAL IMPACT: The anticipated fiscal impact of this contract is to increase net income by $30,000 less
any other expenses associated with the servicing of the annexed areas.
ALTERNATIVES: There is no other feasible alternative.
Prepared by:
Approved by:
Dorethea Yates, Finance Director/Treasurer
33
A RESOLUTION APPROVING CERTAIN AMENDMENTS TO THE 2016 BUDGET FOR THE CITY OF HOT
SPRINGS, ARKANSAS BY AUTHORIZING AMENDMENTS TO THE SOLID WASTE FUND; AND FOR OTHER
PURPOSES.
WHEREAS, Resolution No. 8827 approved the 2016 Budget and it is desired to amend said
budget.
Arkansas:
That the 2016 Budget, as approved by Resolution No. 8827, as amended, is hereby further
amended by the budget adjustments listed below. Provided further, the Finance Director is hereby
directed to make necessary adjustments to accomplish the intent of this resolution.
Residential Collection Fees (635.4391)
$80,000
Increase
$50,000
Increase
Residential Solid Waste
Contractual Services (635.9.683.616.5250)
PASSED:_____________________________
APPROVED:
ATTEST:_____________________________
34
RUTH CARNEY, MAYOR
CITY OF HOT SPRINGS
AGENDA ITEM #9
R-16-143
DISTRICT:
1
Date Submitted:
9/19/16
10/18/2016
2
3
4
5
X Resolution
 Ordinance
 Formal Action/Motion
 Other
6
√ City Wide
Subject:
Budget Transfer
RECOMMENDATION: Transfer $8,000 from the Probation Fee Fund balance into the Probation
Fee Fund line item: 216.1.203.5395 (First Aid/Medical Supplies).
DISCUSSION: This transfer will cover cost of drug test and alcohol test for defendants who are
ordered into probation by the Judge. These funds are collected by the court and are from fees
collected by the court for probation fees.
FISCAL IMPACT: There is no impact in regards to the General Fund.
ALTERNATIVES: Ask for $8000 from the General Fund.
Prepared by:
Approved by:
__________________________
Mark Allen, District Court Administrator
__________________________
Version 06/05--All previous versions obsolete
Barf.doc
35
A RESOLUTION APPROVING CERTAIN AMENDMENTS TO THE 2016 BUDGET FOR THE CITY OF HOT
SPRINGS, ARKANSAS BY AUTHORIZING AMENDMENTS TO THE DISTRICT COURT FUND; AND FOR OTHER
PURPOSES.
WHEREAS, Resolution No. 8827 approved the 2016 Budget and it is desired to amend said
budget.
Arkansas:
That the 2016 Budget, as approved by Resolution No. 8827, as amended, is hereby further
amended by the budget adjustments listed below. Provided further, the Finance Director is hereby
directed to make necessary adjustments to accomplish the intent of this resolution.
District Court Probation Fees
$8,000
Decrease
$8,000
Increase
(216.4552.300)
First Aid/Medical Supplies
(216.1.203.5395)
PASSED:_____________________________
APPROVED:
ATTEST:_____________________________
36
RUTH CARNEY, MAYOR
CITY OF HOT SPRINGS
AGENDA ITEM #10
Airport Advisory Committee
DISTRICT:
1
Date Submitted:
October 6, 2016
October 18, 2016
2
3
R-16-144
√4
5
6
 City Wide  Other
SUBJECT: : Resolution to
approve a lease between the
City of Hot Springs and Vmax
Aviaiton LLC for Hangar A-5
RECOMMENDATION: Airport Management Staff recommends approving a resolution approving a lease
between the City of Hot Springs and Vmax Aviation LLC for Hangar A-5
The Airport Advisory Committee has recommended approval of a lease
agreement with Vmax Aviation LLC for the lease of Hangar A-5, a hangar located at 525 Airport
Rd., Hot Springs AR. on Airport property.
DISCUSSION:
Vmax Aviation LLC is a company managed by Jay Lejeune a mechanic that has been on the field
for the past 10 years. He has been doing most his work out of town but wants a shop here to
bring in aircraft to Hot Springs. The A-5 hangar has been vacated since April 2016 the airport
has a waiting list for these types of hangars. The airport contacted each individual on the list
and gave them the opportunity to lease A-5. Mr. Lejeune was the 4th person on the list. The
others were either not ready to commit or they wanted a different hangar. Vmax Aviation LLC is
a Wyoming based company that is in good standing with the Office of the Secretary of State.
Hangar A-18 is a 6,350 sf.
The Lease is our Standard form lease with all the articles as approved by the Board of Directors.
Vmax Aviation LLC will be responsible for all utilities. The rate for this hangar is $3.74 per sf.
FISCAL IMPACT:
Annual Hangar Revenue of $23,744.00 (to the nearest dollar)
Annual Ground Revenue of $1,354.00
Total Annual Revenue of $25,098.00
ALTERNATIVES:
Prepared by:
Approved by:
__________________________
Glen Barentine, Airport Director
__________________________
37
A RESOLUTION AUTHORIZING THE MAYOR TO EXECUTE A LEASE AGREEMENT BETWEEN THE CITY OF
HOT SPRINGS, ARKANSAS, AND VMAX AVIATION, LLC., FOR HANGAR A-5 AT THE AIRPORT.
Arkansas:
That the Mayor is hereby authorized to execute a Lease Agreement between the City of Hot
Springs, Arkansas, and Vmax Aviation LLC., for Hanger A-5 located at the Airport, as further described in
aforementioned Lease Agreement.
PASSED:_____________________________
APPROVED:
ATTEST:_____________________________
38
RUTH CARNEY, MAYOR
LEASE AGREEMENT
THIS LEASE made and entered into by and between the City of Hot Springs, a first class
political subdivision general purpose government of the State of Arkansas, whose address is
Municipal Building, 133 Convention Blvd. Hot Springs, Arkansas, 71902 (hereinafter referred to
as "Landlord") and Vmax Aviation, LLC. (hereinafter referred to as "Tenant") of Hangar A-5,
525 Airport Rd., Hot Springs, Garland County, Arkansas 71913.
(1a) PREMISES: The Landlord hereby leases and demises unto Tenant and the
Tenant hereby leases from the Landlord, in as is condition, the use and occupancy of Hangar A5, 525 Airport Rd., a building situated on airport property in the City of Hot Springs, Garland
County, Arkansas, which is hereinafter referred to as the "Building." Said Building is shown for
identification purposes on the plat attached as Lease Exhibit A. The total square footage of the
Building is 6,350 square feet.
(1b) GROUNDS: The Landlord hereby also grants the right of use by the Tenant to
outside areas described as the grounds surrounding the above described Building, in as is
condition, hereinafter referred to as the "Grounds." Tenant shall have exclusive use of these
Grounds for any purpose consistent with the provisions of this Lease and not in conflict with the
operation of the general airport facility. The Tenant shall be responsible for all maintenance to
these Grounds, including, but not limited to, the following examples: mowing, landscaping,
storm drainage repair, and paving repair to parking lot and/or ramps. Tenant agrees to make no
improvements, alterations, or erect any structure on said Grounds without prior written
permission from the Landlord for such specific use. Said Grounds is shown for identification
purposes on the plat attached as Lease Exhibit B. The total square footage of the Grounds is
16,378 sf or .376 acres.
(2)
TERM:
The term of this Lease shall be for a period of Five (5) years
commencing on the 1st day of November, 2016, ending on the 31th day of October, 2021.
Tenant shall have the option to renegotiate this Lease for an additional two (2) five (5) year
periods.
(3)
RENT:
(3a) The Tenant accepts the Building in ‘as is’ condition and shall pay to the Landlord
as rent, $23,748.00 per annum for the above described premises. The rent shall be due and
payable in monthly installments of $1,979.00.00. The first installment being due on the 1st day
of November, 2016, and each successive installment being due and payable on the 1st day of
each and every succeeding calendar month of said term. All rents due to the Landlord and any
other monies due to the Landlord under the terms of this Lease shall be payable at Hot Springs
Airport, 525 Airport Road, Hot Springs, Arkansas, 71913, or such other place as the Landlord
may, from time to time, designate in writing. Rental payments are to be paid with Legal Tender
(cash) or a Negotiable Instrument (check). Credit Cards will not be accepted for payment of
Rental Fees.
Res/OR___________
1
39
A ten percent (10%) late charge will be assessed for any lease payment not paid within thirty
(30) days of the due date.
Tenant hereby covenants and agrees that upon anniversary of each five (5) year period,
the lease payment may be adjusted to reflect the cumulative effect between current year dollars
and the value of dollars at the time of renewal as defined by the U. S. Department of Labor,
Bureau of Labor Statistics, Consumer Price Index - cost of living factor adjusted for regional
area equivalence.
As promptly as practicable after the end of each five year increments of the Lease, the
first being November 1, 2021, the Building annual rental payment shall be reviewed and may be
increased or decreased based upon the U. S. Department of Labor, Bureau of Labor Statistics,
Consumer Price Index - cost of living factor adjusted for regional area equivalence. The
percentage indicated by this standard shall represent the maximum adjustment to the annual
rental. The increase or decrease will be determined by the following equation: based upon the U.
S. Department of Labor, Bureau of Labor Statistics, Consumer Price Index - South Urban, Size
D, (non-metropolitan less than 50,000 population, for the month of August. The CURRENT CPI
index number less CPI for previous period or beginning of Lease equals an Index point change.
The Index Point change is then changed to a percentage by taking the Index point difference,
divided by the previous Index number then the equivalent is multiplied by 100 to get the percent.
The percent change is then multiplied by the current monthly rental payment to obtain the
increase or decrease in the rent.
The landlord shall, within a reasonable time after obtaining the appropriate data necessary for
computing such increase, give the Tenant notice of any increase so determined, and the
Landlord’s computation thereof shall be conclusive and binding.
(3b) GROUNDS RENT:
The Tenant accepts the grounds in as is condition and shall
pay the Landlord a base rate for ground rental of $300.00 per acre per month or any portion
thereof.
(3c) TOTAL RENTAL: The total rental shall be the calculated annual building
rental and the calculated annual grounds rental, divided by 12 and due and payable in equal
monthly installments at the first of the month. The annual building rental shall be $23,748.00.
The annual ground lease shall be $1356.00. The resulting monthly payment is $2,092.00.
(4) RENEWAL:
This Lease shall be renewable under the terms described in
paragraph 2. Should Tenant desire to exercise his option for renewal, notification should be
received by the Landlord not later than 90 days prior to the end of the current lease period.
Should Tenant be allowed to remain in possession after termination of this Lease, either by virtue
of the expiration of the term or by reason of the breach of any of its provisions by the Tenant or
should Landlord accept any rent after such termination, then neither the remaining in possession
nor the acceptance of the rent shall be deemed a renewal of this Lease, or a tenancy from termto-term, but the status of the Tenant shall be deemed that of a Tenant at will, and the Tenant will
vacate the premises upon being given thirty (30) day notice to so do by the Landlord.
Res/OR___________
2
40
(5a) USE OF PREMISES: Tenant shall not at any time leave the demised premises
vacant, but shall in good faith continuously throughout the term of this Lease conduct and carry
on in the entire demised premises the type of business for which the demised premises are
leased. Tenant shall only operate an Aircraft Maintenance Center Operations. Any change in
status of operation will require notification to the Landlord in writing, requesting permission
from the Landlord to make any change.
(5b) Tenant shall not, without Landlord's prior written consent, keep anything within
the premises or use the premises for any purpose which invalidates any insurance policy carried
on the demised premises or other properties comprising the Municipal Airport. All property
kept, stored or maintained within the premises by Tenant shall be at Tenant's sole risk.
(5c) The Tenant shall have the reasonable right to install items of equipment and make
non-structural changes within the leased premises. Upon termination of the Lease, the Tenant
shall have the right of removal of those improvements which have not become a part of the
structure.
(5d) Tenant shall take good care of the demised premises and keep the same free from
waste at all times. Tenant shall include the address and identity of its business activities in the
demised premises in all advertisements made by Tenant in which the address and identity of any
similar local business activity of Tenant is mentioned. Tenant shall procure at its sole expense
any permits and licenses required for the transaction of business in the demised premises and
otherwise comply with all applicable laws, ordinances and governmental regulations.
(5e) The use of leased premises for the sale of aviation fuel is specifically prohibited.
Any such action shall be grounds for immediate lease termination and eviction.
(6)
MAINTENANCE AND REPAIR: Subject to Landlord's duty to repair, in the
event of destruction of all or part of the premises, Tenant is solely responsible for all
maintenance and repairs to the leased premises. Tenant is responsible for all pest control.
The Tenant shall keep the demised premises in good, clean and habitable condition, free
of pests and any waste that may create habitat for pests. At the expiration of this Lease, Tenant
shall surrender the demised premises in good clean condition, excepting reasonable wear and
tear.
The Tenant shall be responsible for any repairs to the Landlord's holdings which may be
required as a direct result of actions by the Tenant or his employees.
The Tenant shall be responsible for all maintenance and repair to the grounds, parking
lot, outside lighting, structure, roof, fire suppression system, heat and air-conditioning systems.
(7)
ALTERATIONS AND REPAIRS: The Landlord hereby grants to the Tenant
the right to make reasonable alterations to the building and land described above. This grant of
authority shall not include the basic structure of the building. Prior to the beginning of any
construction, the Tenant shall provide to the Landlord for review, plans and specifications for the
construction on its premises. Further, all such improvements, whether significant to the main
Res/OR___________
3
41
structure and thereby requiring prior written approval; or within the authority granted to the
Tenant shall be done wholly at the expense of the Tenant. All such improvements and
alterations to the building, which are fixed and made a permanent part of the structure, shall be
considered as improvements to the Landlord's property. Landlord retains title to the real
property and any improvements upon the real property which shall during the term of the Lease
become affixed. Therefore, the Tenant shall not mortgage, assign or otherwise attempt to
encumber the Landlord's property or any properties which become affixed to the Landlord's
property and Tenant will hold Landlord harmless from any liens which might arise as a result of
construction or improvements or alterations performed by Tenant.
All construction work done by Tenant within the demised premises shall be performed in
a good and workmanlike manner, in compliance with all governmental regulations.
(8)
SIGNS AND STORE FRONTS:
Tenant shall not, without Landlord's prior
written consent, make any changes to the premises' front or install any exterior lighting,
decorations or paintings or erect or install any signs, window or door lettering, placards,
decorations or advertising media of any type which can be viewed from the exterior of the
demised premises. All signs consented to by the Landlord shall be kept in good condition and in
proper operating order at all times. Any proposed signage must conform to existing local
ordinances. Any approved sign installed by the Tenant for the Tenant's sole benefit, shall be
installed, operated and maintained at the sole expense of the Tenant. Should the Landlord decide
to install a common use sign, the installation and operation of such a sign shall be at the expense
of the Landlord, with only the installation of the Tenant's portion being the Tenant's
responsibility.
(9)
UTILITIES: The Tenant agrees to be solely responsible for all utility charges, ie,
electric, water/sewer, sanitation and gas. If the Tenant requires any alterations of existing utility
services beyond those currently provided to the structure, the cost of those changes shall be
borne solely by the Tenant.
(10) INDEMNITY AND PUBLIC LIABILITY INSURANCE: Landlord shall not be
liable to Tenant or to Tenant's employees, agents, visitors, or students or to any other person
whomsoever, for any injury to person or damage to property on or about the demised premises
caused by the negligence or misconduct of Tenant, its employees, subtenants, licensees or
concessionaires, or of any other person entering the premises under express or implied invitation
of Tenant, or arising out of the use of the premises by Tenant and the conduct of its business
therein, or arising out of any breach or default by Tenant in the performance of its obligations
hereunder; and Tenant hereby agrees to indemnify Landlord and hold it harmless from any loss,
expense or claims arising out of such damage or injury.
Tenant shall procure and maintain throughout the term of this Lease a policy or policies
of insurance, at its sole cost and expense, insuring both Landlord and Tenant against all claims,
demands or actions arising out of or in connection with Tenant's use or occupancy of the
demised premises, or by the condition of the demised premises, the limits of such policy or
Res/OR___________
4
42
policies to be in an amount not less than $300,000 written by Arkansas Admitted insurance
companies.
Tenant shall obtain a written obligation on the part of each insurance company to notify
Landlord at least thirty (30) days prior to cancellation of such insurance. Such policies or duly
executed certificates of insurance shall be promptly delivered to Landlord and renewals thereof
as required shall be delivered to Landlord at least thirty (30) days prior to the expiration of the
respective policy terms. If Tenant should fail to comply with the foregoing requirements relating
to insurance, Landlord may obtain such insurance and Tenant shall pay to Landlord on demand
as additional rent hereinafter the premium cost thereof plus interest at the maximum contractual
rate (but in no event to exceed five percent (5%) above Federal discount rate, per annum) from
the day of payment by Landlord until repaid by Tenant.
(11) NON-LIABILITY FOR CERTAIN DAMAGES: Landlord and Landlord's agents
and employees shall not be liable to Tenant for any injury to person or damage to property
caused by the demised premises or other portions of the airport becoming out of repair or by
defect or failure of equipment, pipes or wiring, or broken glass, or by the backing up of drains, or
by gas, water, flood, steam, electricity or oil leaking, escaping or flowing into the demised
premises, or by fire, nor shall Landlord be liable to Tenant for any loss or damage that may be
occasioned by or through the acts or omissions of other Tenants of the Airport or any other
persons whomsoever, excepting only duly authorized employees and agents of the Landlord.
Nothing contained herein shall be construed to mean that Landlord is disclaiming any implied
warranties of habitability or otherwise as currently imposed by Arkansas law concerning new
construction and limited by the applicable Statute of Limitations.
(12) DESTRUCTION OR DAMAGE TO PREMISES: If the leased premises shall be
destroyed by any cause whatsoever, or substantially destroyed, the following conditions shall
apply:
(a)
The Landlord shall repair partially destroyed structural loss or damage and may
re-enter and repossess the premises or any part thereof for such purpose; the Landlord shall
proceed with reasonable dispatch, unavoidable delays excepted, to restore the premises, and this
Lease shall continue in full force and effect except that, as the sole and exclusive remedy of the
Tenant, there shall be a proportionate abatement of the rent payable by the Tenant during the
time the premises are unsuitable for occupancy in whole or in part. However, if the cause of the
damage is determined to be a direct result of actions or omissions by the Tenant; sub-tenant or
any employee of the Tenant or sub-tenant, then the Tenant is responsible for refunding the
Landlord any and all expense associated with the repairs, including but not limited to Insurance
deductible; loss of rent; utility expense and other contractor’s expense associated with the repair.
(b)
Subject to the provisions of Section 16 hereof, insurance proceeds payable with
respect to damage to the premises shall be applied to repair the premises and the rent shall be
abated proportionately as to that portion which is rendered unusable, provided the damage is not
the direct result of actions by the Tenant or his employees. In this case the rent shall not be
abated.
Res/OR___________
5
43
(c)
The Landlord's liability for repair costs will be limited to the proceeds of covered
insurance, which will be assigned to repair efforts as described in paragraph (b), subject to
Section 16 hereof.
(d)
If, after full performance of Landlord's duties under this Section, the premises
have not been fully repaired, Tenant may, at its option, complete such repairs at its expense; in
such event, rent shall be abated proportionately as to that portion of the premises which is
rendered unusable. If Tenant does not elect to complete such repairs, Tenant may, at its option:
terminate this Lease; or accept the premises with partial repairs for the remainder of the lease
term with a proportionate reduction in rent.
(13) ENVIRONMENTAL ISSUES:
Landlord covenants, represents and warrants
that, after diligent inquiry, to the best of Landlord's knowledge and information, the premises are
free from any flammable explosives, radioactive materials, hazardous wastes, toxic substances,
or related materials (hereinafter "Hazardous Materials"), and that the premises are in full
compliance with the Comprehensive Environmental Response, Compensation and Liability Act
of 1980, as amended (42 U.S.C. ss 9601 et seg.); the Hazardous Materials Transportation Act (49
U.S.C. ss 1801, et seg.); the resource Conservation and Recovery Act (42 U.S.C. ss 6091, et
seg.); and all other federal, state and local statutes, ordinances and regulations governing,
defining or regulating the manner and method of storage, transportation or disposition of
Hazardous Materials. Landlord shall be responsible for compliance or mitigation efforts to
remedy hazards, as defined by the acts above, which occurred prior to the initial term of this
Lease, are on the property and grounds, and/or not a result of Tenant's actions.
Tenant shall indemnify and hold harmless the City from any such liability with respect to
acts or omissions of Tenant and its sub-lessees.
(14) CONDEMNATION: If the leased premises be subjected to any eminent domain
proceedings, the Lease shall terminate if all of the leased premises are taken or if the portion
taken is so extensive that the residue is unsuitable for Tenant's purposes. If the residue is
suitable for Tenant's purposes, then Tenant's rentals shall be reduced in the proportion which the
space taken bears to the space originally leased. In such condemnation proceedings, Tenant may
claim compensation from the condemner for the taking of any reasonable installations which by
the terms of this Lease Tenant would be permitted to remove at the expiration of this Lease, but
Tenant shall be entitled to no additional award, it being agreed that all damages allocable to full
fee simple ownership of the entire leased premises including fixtures attached thereto shall in any
event be payable to Landlord.
(15) SUBLEASES AND ASSIGNMENTS:
Tenant shall not assign this Lease or
sublet all or any part of the premises without the written consent of the Landlord. In the event
Tenant should elect to assign or sublet any part or all of the premises that consent of the
Landlord shall be required. If consent is given, the Tenant shall remain liable for payment of
rent and performance of all other terms hereof. If the premises are assigned or sublet without
such written consent, the Landlord may re-enter the premises, either by force or otherwise,
without being liable to prosecution or any claim therefore and re-let the premises; and this Lease,
Res/OR___________
6
44
by such unauthorized act, shall terminate if the Landlord shall so determine and elect, or if re-let
at a lesser rental, the Tenant shall pay the difference between such rental and the rental herein
specified. In the event of an assignment or sublease without consent, acceptance of rent by the
Landlord from the assignee or sub-lessee shall not be construed as a waiver only for the period
for which the rent is accepted. Such assignee or sub-lessee shall, at the option of the Landlord,
be regarded as a Tenant from month-to-month.
(16) TAXES AND INSURANCE: Tenant shall be liable for all taxes levied against
personal property described as premises and trade fixtures placed by Tenant in the demised
premises.
Landlord shall pay or cause to be paid all general real estate taxes, general and special
assessments and governmental charges levied against the above described grounds and premises
for each real estate tax year. The Tenant shall maintain and carry fire and extended coverage
insurance on his own personal property equipment and etc. located within the leased premises in
an amount sufficient to satisfy the Tenant. No claim shall be made against the Landlord for any
reimbursements not covered by the Tenant's insurance, should such an event occur.
In the event that any subsequent Real Estate Tax assessment should result in a tax increase, the
rental rate will be increased accordingly with a ninety (90) day written notice to the Tenant.
(17) DEFAULT:
(a)
Upon the occurrence of an Event of Default (as defined below) which is not cured
within ten (10) days written notice to Tenants, all subsequent unpaid installments of rent shall
immediately become due and payable, and this Lease, at the option of the Landlord, thereupon
shall be terminated. The Landlord shall also have any or all of the following additional rights:
(1)
To enter the leased premises as the agent of the Tenant, either by force or
otherwise, without being liable to any prosecution.
(2)
To re-let the premises on terms acceptable to the Landlord and to apply
the rent, less expenses, to the Tenant's obligation.
(3)
To collect from the Tenant, on demand, any deficiency in the rent which
may arise by reason of the breach of the Lease.
(4)
To immediately void the terms and conditions of this Lease and to enter
and take possession of the grounds and premises.
(5) Assert a lien on any possessions left after termination of the Lease Agreement.
(6)
To pursue any other remedies available at law in equity.
(b)
As used herein, the term "Event of Default" shall mean the Tenant's failure to pay
the rent on the due date set forth herein or to comply with any other term or provision of this
Lease; the Tenant's filing of any Petition in Bankruptcy; the bankruptcy adjudication of the
Tenant under the laws of the United States; an assignment by the Tenant of any act of insolvency
of the Tenant's becoming insolvent; any transfer by the Tenant of property which might tend to
defeat the collection of the rent due or to become due under this Lease; or the Tenant's leaving
the premises vacant for more than thirty (30) days.
(c)
No provision of this Lease shall be deemed to have been waived by the Landlord
unless such waiver be in writing signed by the Landlord. The failure of the Landlord to insist
Res/OR___________
7
45
upon a strict performance of any of the terms, conditions and covenants herein shall not be
deemed a waiver of any rights and remedies of the Landlord nor shall it be deemed a waiver of
any subsequent breach or default in any of the terms, covenants and conditions contained herein.
(18) TENANT TERMINATION OF LEASE: Should Tenant, for whatever reason,
desire to terminate this Lease, he shall be allowed to do so, without penalty, by notification as
described in this document of his intention to terminate the Lease and vacate the premises by
giving the Landlord a three (3) month advance notification of said intention.
(19) TRANSITION PROVISIONS:
The action of execution of this lease
document shall not void any of the existing leases between the Tenant and the Landlord.
(20) LAWFUL PURPOSES: Tenant covenants and agrees that he will not conduct nor
permit to be conducted any unlawful business upon the premises; that he will comply with all
laws, ordinances and regulations, federal, state or local, governing the use of the premises and
any expense of such compliance shall be borne solely by the Tenant.
(21) LIEN ON TENANT'S PROPERTY: The Tenant agrees that the Landlord shall
have lien upon all of the furnishings and fixtures belonging to the Tenant to secure the payment
of all rentals and the performance of the conditions of this Lease. Landlord's lien shall be
subordinate to any recorded purchase money mortgages.
(22) NOTICES:
(a)
Wherever any notice is required or permitted hereinafter, such notice shall be in
writing. Any notice or document required or permitted to be delivered hereunder shall be
deemed to be delivered whether actually received or not when deposited in the United States
mail, postage prepaid, certified mail, return receipt requested, addressed to the parties hereto at
the respective addresses set out in the introductory clause to this lease agreement, or at such
other addresses as they have theretofore specified by written notice.
(b)
If and when included within the term "Landlord" as used in this instrument, there
are more than one person, firm or corporation, all shall jointly arrange among themselves for
their joint execution of such notice specifying some individual at some specific address for the
receipt of notices and payments to the Landlord; if and when included within the term "Tenant"
as used in this instrument, there are more than one person, firm or corporation, all shall jointly
arrange among themselves for their joint execution of such a notice specifying some individual at
some specific address for the receipt of notices and payments to Tenant. All parties included
within the terms "Landlord" and "Tenant," respectively, shall be bound by notices and payments
given in accordance with the provisions of this Article to the same effect as if each had received
such notice or payment.
(23) ENTIRE AGREEMENT:
This Lease contains the entire agreement between
the parties, and no agreement shall be effective to change, modify or terminate this Lease in
whole or in part unless such agreement is in writing and duly signed by the party against whom
Res/OR___________
8
46
enforcement of such change, modification or termination is sought. In this regard, it is
specifically understood and agreed that Tenant shall not for any reason withhold or reduce its
required payments of rentals and other charges provided in this Lease, until full agreement
between Landlord and Tenant has been reached in writing.
(24) PARTIES BOUND: The terms, provisions and covenants contained in this Lease
shall apply to, insure to the benefit of and be binding upon the parties hereto and their respective
heirs, successors in interest and legal representatives except as otherwise herein expressly
provided.
(25) SEVERABILITY:
In the event any provision of an Exhibit or any other
attached page shall be inconsistent with a provision in the body of this Lease, the provision as set
forth in the Exhibit shall be deemed control.
(26) TITLE AND QUIET ENJOYMENT: Landlord covenants and warrants that it is
the owner in fee simple absolute of the leased premises and may lease said premises as herein
provided. Upon payment by Tenant of the rents herein provided and upon the observance and
performance of all the covenants, terms and conditions upon Tenant's part to be observed and
performed, Tenant shall peaceably and quietly hold and enjoy the demised premises for the term
hereby demised without hindrance or interruption by Landlord or any other person or persons
lawfully or equitably claiming by, through or under Landlord, subject to the terms and conditions
of this Lease.
(27) CORPORATION STATUS: The parties acknowledge and agree that the Vmax
Aviation, LCC, is a Wyoming corporation, and all acts herein shall be authorized by proper
resolution of the manager (s) thereof. Notwithstanding the foregoing, the individual member (s)
of the corporation have agreed to guaranty the terms hereof.
(28) LANDLORD'S REPRESENTATION: Landlord represents and warrants that it is
duly authorized by law to enter into this lease agreement and to perform all duties undertaken by
it herein, and that its agents executing this Lease are fully authorized by law and by appropriate
resolutions to bind Landlord.
This Lease consists of twenty-eight (28) articles and nine (9) typewritten pages, including
acknowledgments, together with exhibits. In the event any provision of an Exhibit or other
attached page shall be inconsistent with a provision in the body of this Lease, the provision as set
forth in the Exhibit shall be deemed to control.
(The following page is the signature page.)
Res/OR___________
9
47
IN WITNESS WHEREOF, the parties have hereunto set their hands and
seals on this 18th day of October, 2016.
CITY OF HOT SPRINGS, LANDLORD
By:__________________________
Ruth Carney, Mayor
ATTEST:
____________________________
Lance Spicer, City Clerk
Vmax Aviation LLC, TENANT
By:
_____________________________
Authorized Member/Manager/Officer
ATTEST:
___________________________
_____________________________
Individually
Res/OR___________
10
48
CITY OF HOT SPRINGS
AGENDA ITEM #11
R-16-145
DISTRICT:
1
Date Submitted:
9/29/16
10/18/16
2
3
4
5
6
X Resolution
 Ordinance
 Other
X City Wide
 Other
SUBJECT:
Purchase of Kenworth T370
Chassis
RECOMMENDATION:
Purchase a Kenworth T370 chassis through the National Fleet Auto Group for $83,310.
DISCUSSION:
The purchase of the proposed Kenworth chassis will facilitate the reuse and repurposing of our current
service/rescue truck body. The body of the service/rescue will be removed and reinstalled on the newly
purchased chassis. When completed the apparatus will be used to support the fire departments Haz
Mat/WMD team. Recycling the former rescue body will allow the city to add a badly needed response
vehicle to the Haz Mat program at a fraction of the cost associated with the procurement of a new Haz
Mat vehicle.
FISCAL IMPACT:
The funds for this purchase of this chassis were provided in the 2016 budget. Therefore no new
appropriations will be required for acquisition. The cost of the chassis is $83,310.
ALTERNATIVES:
Reject the proposal and seek an alternate means to support Haz Mat Operations.
Prepared by:
Approved by:
Edward Davis, Fire Chief
49
A RESOLUTION APPROVING THE PURCHASE OF A KENWORTH T370 CHASSIS FOR HOT SPRINGS FIRE
DEPARTMENT FROM THE NATIONAL FLEET AUTO GROUP PURSUANT TO THE STATE OF ARKANSAS
COOPERATIVE PURCHASING PROGRAM AND THE INTERGOVERNMENTAL ASSOCIATION WITH THE
NATIONAL JOINT POWERS ALLILANCE (NJPA).
WHEREAS, Ordinance No. 3980 and Ordinance No. 5387 authorize the city to participate in the
State of Arkansas Cooperative Purchasing Program; and that
WHEREAS, certain needed equipment is available under said purchasing program
Arkansas;
That being in the best interest of the city, the procurement of a Kenworth T370 Chassis from
National Fleet Auto Group, is hereby authorized pursuant to the State of Arkansas Cooperative
Purchasing Program and the intergovernmental association with the NJPA, and the Purchasing Agent is
hereby authorized to issue a Purchase Order for said equipment.
PASSED:
ATTEST:
APPROVED:_________________________
RUTH CARNEY, MAYOR
50
National Auto Fleet Group
A Division
of
Chevrolet
of Watsonville
490 Auto Center Drive. Watsonville.
CA 95076
(855) 289-6572·
(855) BUY-NJPA·
(831) 480-8497
FI eet@NationaIAutoFleetGroup.com
Fax
8/26/2016
Mr. Greg Speas
Quote ID: 3818
City of Hot Springs
133 Convention Blvd.
Hot Springs, AR 71901
Dear Mr. Speas,
National Auto Fleet Group is pleased to quote the following vehic1e(s) for your consideration.
One (1) NewlUnused (2017 Kenworth T370 Chassis wi updated Changes) Delivered to your
department yard by Mr. Stollings with Kenworth each for:
Sub Total
Tax (0.0%)
One Unit (1)
$
83,310.00
$
00.00
Total
$
83,310.00
This vehicle(s) is available under the National Joint Powers Alliance Bid Number 102811.
Please reference this Bid Number on all Purchase Orders.
Thank you in advance for your consideration. Should you have any questions, please do not
hesitate to call.
Sincerely,
Jesse Cooper
National Fleet Manager
Jcooper(al,Nationalautofleetgroup.com
Office (855) 289-6572
Fax (831) 480-8497
'HniRdo,.,
51
@TOYOTA
Woridwide EquTpmenr--S32S-----------------------CliY·-oTi::j"C;i"S'pMng-s, Arkansas
Craig Stollings Municipal
18285 Lee Highway
Abingdon, Virginia United States 24210
Hot Springs, Arkansas United States 71901
Phone:
(276) 628-8103
Phone:
(501) 321-6931
Fax:
(276) 628-5863
Fax:
Email:
craig.stollings@thetruckpeople.comContact
Email: gspeas@cityhs.net
Greg Spe~~
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Fuel Tanks
Printed:
Effective Date:
Prepared by:
8/261201610:40:32 AM
Ju11,2016
tD: craigstollings
Incomplete
Model Number:
Quote/DTPO/CO:
Version Number:
T300 Series Conventional.
Q71832060
3810
Page 1 of 1
52
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18285 Lee Highway
Phone:
(276) 628-8103
Phone:
(501) 321-6931
Fax:
(276) 628-5863
Fax:
Email:
.
Pr~pared.!or:
Greg Speas
Top Speed
Configuration: T300 Series Conventional.
Quote/DTPO/CO Number: Q04232131
Aerodynamic Aids: None
Engine:
Transmission:
Rear Axle:
Rear Tire:
0129531
2012195
3042160
4277413
!FULL TRUCK
GCW: 36200
PACCAR PX-9 330EV 13 330@2000 320@2200 1000@1400
Transmission: Allison 3000EVS 6-speed
Single Meritor R23-160 rear axle rated at 23K. 5.38 Ratio
Rear tires: Bridgestone M843 11R22.5 16PR.
Operating Conditions: 0.7% Rolling Resistance,
Top Speed At Grade (0%)
Top Speed At Grade (0%)
77.19 MPH @ 2200 RPM:
Engine Fan: Off
~~PH@2~
Gear: 6 (0.65)
Gear: 6 (0.65)
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_.______ Dimensional a~d performance data f~':..lI!1.P.':'.b,.~i~.~!~.?e!~~~!..f!1ay
vary from that displayed in PRP.~~I::~.!.~~:.
_
Printed:
8126/201610:42:25 AM
ModelNumber:
Complete
Effective Date:
Prepared by:
Quote/DTPO/CO:
Ju11,2016
ID: craigstollings
Version Number:
Q04232131
38.10
Page 1 of 1
53
wo .•j.dWide..E.quipme.ni ..-S325 -----~'""-------~---
City-of
,:fot-Sprin-gs-:A'rkansas
18285 Lee Highway
Phone:
(276) 628-8103
Phone:
(501) 321-6931
Fax:
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Fax:
Email:
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Horizontal Dimensions
Printed:
Effective Date:
Prepared by:
8/26/201610:42:44 AM
Ju11,2016
10: craigstollings
Complete
Model Number:
Quote/DTPO/CO:
Version Number:
Q04232131
38,10
Page 1 of 1
54
Worldwide Equipment 8325
18285 Lee Highway
Phone:
(276) 628-8103
Phone:
(501) 321-6931
Fax:
(276) 628-5863
Fax:
Email:
.
.....
.
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Prepared f«:).!::_ ~_'!~L~e!~~. ._.
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Vehicle Summary
Chassis
Unit
FULL TRUCK
T370 EVS Rescue Truck
Model:
Type:
Description:
Application
EMT/rescue service.
Vehicles used responding
to
EMT/rescue
Intended Serv.:
Commodity:
Body
Service body
18.0
12.0
4000
Type:
Length (ft):
Height (ft):
Max Laden Weight (Ibs):
Trailer
o
No. of Trailer Axles:
Type:
Length (ft):
Height (ttl:
Kingpin Inset (in):
Corner Radius (in):
0.0
0.0
o
o
13200
23000
36200
Fr Axle Load (Ibs)
Rr Axle Load (Ibs)
G.C.W (Ibs):
Road Conditions:
79
Class A (Highway)
16
05
00
Class B (Hwy/Mtn)
Class C (Off-Hwy)
Class D (Off-Road)
Maximum Grade:
Wheelbase (in):
Overhang (in):
Fr Axle to BOC (in):
Cab to Axle (in):
Cab to EOF (in)
Overall Comb. Length
(in)
6
204
63
68
136
199
308
Special Req.
U.S Domestic Registry, 50-State
Restrictions
Length (ft):
Width (in):
Height (ttl:
120
102
13.5
Date:
Approved by:
Note: All sales are F.O.B. designated plant of manufacture.
. R
fiNANCIAL
Printed:
Effective Date:
Prepared by:
Ask your dealer for a quote today, or visit our website @ www.QaccarfinanciaLcom.
PACCAR Financial offers innovative finance, lease and insurance programs
customized to meet your needs.
8/26/201610:38:32 AM
Ju11.2016
10: craigstollings
Complete
69313-1 OEC1-0896
Model Number:
Quote/DTPO/CO:
Version Number:
Q71832060
38.10
Page 1 of 8
55
·······.·~···_.···._···_···
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Worldwide Equipment 8325
18285Lee Highway
Phone:
(276)628-8103
Phone:
(501) 321-6931
Fax:
(276)628-5863
Fax:
Email:
craig.stollings@thetruckpeople.comContact Email: gspeas@cityhs.net
________ ._.. ..
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Model
Description
.__ . .
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9,764
Electric Door locks LH/RH; Ignition & doors keyed alike; Single electric
horn; Single-piece windshield; Electric windshield wipers, 2-speed plus
intermittent; Electric windshield washers; Steering wheel 18in. 4-spoke;
Glovebox door with locking latch; Dash-mounted cruise control with
switches;Turn signal switch with column-mounted dimmer; Standard dash
panels include gray wI burl wood accents; Slate Gray interior primary
color; Dark Slate Gray seat color; Floormat; Inside sunvisor, LH/RH; Door
courtesy lights; Under-dash center console with 1 cup holder. 1 ashtray &
1 lighter.
.-:--=-----:-:-
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T370 Class 7: medium-duty Conventional.
0
CARB Idle Emissions Reduction Feature for PX-7
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and PX-9
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CARB Exempt Application Emergency Vehicle Only.
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emergencies & rescue operations. Typically configured for rapid
response, & carry medical & other rescue equipment. Road usage:
minimum 5% Class B and maximum 5% Class D.
....--.-------
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._---
..
Engine & Equipment
555
PACCARPX-9 330EV13 330@2000320@22001000@1400
Emergency Vehide includes turbo exhaust brake, no code is used.
Diagnostic Plug for data link. Oil Cooler. Aluminum Flywheel Housing.
N09200 N205 120..Standard Maximum Speed Limit [LSL]
N09220 N207 O Expiration Distance
N09240 P09 120 Hard Maximum Speed Limit
N09260 P14 75 Maximum Accelerator Pedal Vehicle Speed
N09280 P16 O_ Accelerator Lower Droop
N09300 P19 75 Maximum Cruise Speed
N09320 C143 O Cruise Control Lower Droop
N09360 N203 252 .Reserve Speed Function Reset Distance
N09380 N202 O .. Maximum Cycle Distance
N09400 N206 10 Maximum Active Distance
N09420 N201 0 Reserve Speed Limit Offset
---_
_
_
_-_-_-----_
_." _
_-------------
-----
..-----.------ ..
,.
_-------_
-
Unpublished options may require review/approval.
Dimensional and performance data for unpubtl~!!!~ __
<?.ptlonsmay va~.!!'.~~.~hat displayed in PROSPE,CT_O_R_.
__
Printed:
Effective Date:
Prepared by:
8/26/201610:38:32 AM
Ju11.2016
ID: craigstollings
Complete
69313-10ECI-0896
Model Number:
Quote/DTPO/CO:
Version Number:
_-_
.
T300 SeriesConventional.
Q71832060
38.10
Page 20f8
56
IlltJ#:"ll.],li:1
----Weight
Description
--~~-----·"-----·"rif69445--P1T·--N-6~.-:I~ngfne-protection'S1iutdowr;--"-N09460 P06 NO...Gear Down Protection
N09480 P26 1400.Max PTO Speed
N09500 P02 NO...Cruise Control Auto Resume
N09520 P04 NO.. Auto Engine Brake in Cruise
N09540 N209 O.... Expiration Distance
N09560 P520 YES..Enable Idle Shutdown Park Brake Set
N09580 P32 5....Timer Setting
N09600 P233 YES..Enable Impending Shutdown Warning
N09620 P234 60 ...Timer For Impending Shutdown Warning
N09640 P516 35 .Engine Load Threshold
N09680 P33 NO...ldle Shutdown Manual Overrule
N09720 P230 YES ..Enable Hot Ambient Automatic Overrule
N09740 P46 40 Low Ambient Temperature Threshold
N09760 P56 60 lntermediate Ambient Temperature Threshold
N09780 P47 80 High Ambient Temperature Threshold
o
Prospector Version
Replaces 36.0
.,., ••_ •••••••••••
y,••,_,_-._
•••••
_, ••
···--···-·····--~··-'-·-···-···E·ffeciive-·VS'[···S-ett'iNA
n'g~
o
Engine Idle Shutdown Timer Disabled
------------.-----:===:-c:-=-".-:-:---:::---:-~--::-:_c:_--
Eff EIST NA Expiration Miles
0
---------".-""--
,,..,, - - ---
,,----.,,--------"'
0
Use only with MX and Cummins engines
··--··---·-···-·-··---·----·---"Aircompressor: Cummins--18~7'
CFM FOR CumminsAN D--,,---------------------- ·..·-···..·0
PACCAR PX engines.
-. ·-----------·-----·--··-·A"fr-Cleaner:--O-.y=ty·pe-flrewaifmounlecfw/ffiter
restriction indicator.
__
. ..,_.._--_ .._--------_._----:--- .------::------------~-,,-Fan Hub: Horton 2-5peed for ISL9, ISL-G,
PX-8 or PX-9
--_ _--------_._-----------_._------------------_
..--------_
o
_ _
Cooling module: 1000 square inches
__._--------_._--
."
o
T170fT270fT370fT470. Includes metal surge tank on T170fT270fT370.
--.-----.-.-.--------.
__
._ .•.
•
•
._.
.• ,~_~.
,••_
.•_.__ ••~. __
.•
•
.
_ ••__ .. ,_
_._
u._
._ •••• __ •__ '.
•••
•__ ._. "_._._
.
15
Horizontal series DPF/SCR for PX-8, PX-9 with
horizontal tailpipe below RH rail.
"Heat
o
Block heater, PACCAR 1750 watt 120V for P')(":'6'---
2
····----·-·--·..-'-·------:F:7le-e---=t-g-u-ar-d:-F=i""'lt-e-:rlW::-:;-:-a-Cte-r-s-e-p-a-r-at:-o-r-::F::::S1
oo"a-f2V
wIWIF (water in fuel) sensor.
1000 watt for PX-8 and PX-9 or ISL9 engines.
_,._._-_ .._.._-_._----- .._-_----_.-_---_ and
_._-_PX-7,
.._---------' ..----.-~..-.-- -.---,.- --.--.-----.----- _-_ ..__ .._--_ .."._ ..__ ..__
_ .._
,
,._
Retarder Jacobs for PX-8/9 ISL wI
57
3-way switch.. Replaces the standard turbo brake for PX-8 engines.
.----.----.--..- ..- ···----------Aiternator:--P-ACCAR···160-amp·;-·-bru-sh-·iype···-······---·····-········...........
- ..-..._--.......... --Satterles:·3·PACCAR·GP31"ihreadecfposi(7·OO·j··21·OO--------- ...
CCA dual purpose.
12-VOLT LIGHT SYSTEM W/CIRCUIT PROTECTION
Starter: PACCAR 12 volt electrical system, WI
o
•
_, •• "., ••• ,"
"",,
•• .. •
"M
" ..
57
--------------------··,-·-····-------------0
centralized power distribution incorporating plug-in style relays. Circuit
protection for serviceability, 12-volt light system w/circuit protection circuits
number & color coded.
Printed:
Effective Date:
Prepared by:
8/26/2016 10:38:32 AM
Complete
Jul 1. 2016
ID: craigstollings
69313-10ECI-0896
Model Number:
Quote/DTPO/CO:
Version Number:
Q71832060
38.10
Page 3 of8
57
. Battery
..............- -
Description
disconnect switches 2, mounted on
battery box.
..._._. __ ._"._--_.""
-_ _
.. ..
, " ,"
,
..
,
-
-.. ..--.-- -- -.- - Weight
--.-..--'''2
__._----------------
,
Transmission & Clutch
Transmission: Allison 3000EVS 6-speed
291
w/PTO drive gear. 5th Gen controls. Includes heat exchanger & oil level
sensor. Emergency Vehicle Series for vocational applications. Transynd
transmission fluid is standard on all Allison 1000, 2000, 3000 & 4000
series transmissions.
..-.--,.--··-·-·--·------··--..--·----··-··-..----·-·-y7
Driveline: 2 standard-duty; 1 centerbearing.
*Std duty is 1710 series.
..-...---...-----.-... - -- .··-··-·-6n·e--boite(rce-nterbearfng.c. rossmembe ..r~···..·- -_.....--..-..-" ..-.-.- .-. -.--.. ---- ....-.......
---f1
This option upgrades an.existing crossmember. The cost does not include
the centerbearing and bracket. Crossmember location will be in
accordance with Kenworth engineering standards, using the major
components specified on the DTPO.
•.,~.,_••..••..••__ ••_.__ ••••• _ •••••" ...'"'"'M'" ,".~."_
••_.",.•
._••.__
._•.••.
__ ••." __ .""_ ..".'_"" ,M.•.. __"
_._
• '_'_" __ •..._, _'H'·'
••__·_·,,·_
"
o
Torque converter included w/Aliison
Transmission.
J1939 Park Brake Auto Neutral
o
Rear transmission support springs for
o
transmission PTO applications are required to ensure that engine flywheel
housings are not overloaded when transmission PTa's are installed.
Front Axle & Equipment
Meritor MFS13 13.2K 3.5in. drop standard track.
inciuded wi
39
front hubpackage:------ ..----···-·..·..··..·..·,-..-·..--··..··-·····--·--··_----0
-..-- ..--------FronTb·ra-kes
_NV'"
Front dustshield: for drum brakes:
,
6
all front axles.
Air Brake: 14,600 lb. package includes
__."--~"
..~_.~·M·_N.M·
__
o
~
Bendix 16-1/2 x5 brakes, cast drums, aluminum to-bolt hub pilot LMS
hubs, hubcaps, oil seals & automatic slack adjusters. For use wI 22·1/2in.
wheels.
··-·-Front"S"i;ringS:Taperleaf13.2K wI shock
absorbe·rs
80
for use on 2010+ chassis only,
---..-,·-------.,S::c:j:-n-gl'e
power
steerjng-giar:·13:2f~rforarrbrakes:-----"
......
,---, ........
-.- ...
o
Rear Axle & Equipment
Single Meritor R23-160 rear axle rated at 23K.
184
o
Rear Axle Ratio - 5.38.
Single rear brakes included w/rear hub package.
.- -·---··- ··-------26K-ii"r-b'ike-package·Tn ..Cludes-1S::1i2-idTn: .. , .. .
--
--.---...........
0
0
brakes, cast drums, iron 10-bolt hub pilot hubs, slack adjusters and oil
seals for use w/22.5 in, wheels,
._----
Printed
Effective Date:
Prepared by:
Spring 'Brake: 3030 high output single.
-_.,_-, ".,-_ _-_
-
8/26/201610:38:32 AM
Jul1,2016
ID: craigstollings
Complete
69313-10ECI-0896
-----_
-""-"--0
".,_
Model Number:
Quote/DTPO/CO:
Version Number:
..
Q71832060
38.10
Page 4 of8
58
.----------------Dusts-hields
__________
.__
~_ __._
..-
fordrum
.
Description
-brakes:
Weight
aITrearaxies~w".""..----------
._..__ .
~
._
11
···_·_·_··_·_
..····_
.._··.~_"·._·
·...·_··.·,,.....
_··w.....---~
,
._._.", .._ ••,_~
".__
Bendix 4S14Manti-lock brake system.
0
Meritor driver controlled differential lock for
o
single rear axle,
..··-·-·,,---------Rear
suspensio";"singleReyco' 79KS-muitileaf 26K
119
with helper spring. Medium duty. Unladen Height: 10.8 in. Laden Height:
8.1 in. Not rear air disc brake compatible.
r-Reyco----- ..·..-----..----·..---·-·----41
·,-........
·---··
..--·--------Solted"rea·rsuspensfoncrossmembers·fo
..
79KB. Replaces T3 standard,
Tires & Wheels
4
FR BRIDGESTONER283A ECOPIA 11R22.516PR
Rear tires: Bridgestone M843 11R22.516PR.
88
42.5 in. diameter, all position. Onloff highway. 42,5 in. 25132 tread depth.
19.9 in. SLR. Code is priced per pair of tires.
o
Rear Tire Quantity: 4
Front wheel: Accuride 504B722.5xB.25steel
o
Steel Armor[TMj powder coat, hub pilot mount. 74001b.maximum rating. 5..
hand hole. Air disc brake compatible.
o
Rear wheel: Accuride 50487 22.5xB.25steel
Steel Armor[TMj powder coat. hub pilot mount. 74001b.maximum rating. 5·
hand hole. Air disc brake compatible. Code is priced per pair of wheels.
o
Powder coat white steel wheel. Use in conjunction
with front, dual front, rear. spare or lift axle wheel code(s). All wheels on
chassis must have same finish color.
o
Rear Wheel/Rim Quantity: 4
Frame & Equipment
368
Frame Rails: 10-3/4 x 3-112x 3/Bin. Steel 2B5in.
to 336 in. Truck frame weight is 3.48 lo.-ln. per pair of rails. Section
modulus is17.80. RBM is 2,132,000 in-lbs per rail. Frame rail availability
may be restricted based upon application, axlelsuspension capacity. fifth
wheel setting, or componentldimensional specifications. The results of the
engineering review may result in a change to the requested frame rail. If a
change is required Kenworth Application Engineering will advise the
dealer of the appropriate material specification for a substitute rail.
Bumper: Aerodynamic, Painted. Requires a "'._
. "._.."
'"w_
__
_w.. _
_
bumper setting code.
......
·-·-..40j~·in:Bumper ..setti·ng:·Requ'i"resa·
..b·limpe·r-code:w~-·------------··-····----·-·------·-....·--·----Removabie-Fron"t·ToviH00-1(5:-2.-·-·
..-········
.-~......~,_..~._.~..
-..--
-~
·····Frontmudfiaps:
..· ..· ..·..··__
·..-..·······
.
._..__. ,.._ _.._.._..__
._._ ..
.
._ _ _'_".n_p. __•.• _..__.~•._ _._.__._.
---- -~__
_
__ _._._
-..--
,.__ _ _.__,
AA'._~_~__.
Battery box: Steel parallel under wI aluminum
plate
wI aluminum.••__step ,..__
brackets.
. diamond
..·__.w_..
·~.. cover
~~_~_~wI step
AA_~ __A.A'_._•.__ •.• _.
.~ __ ,~...
. _, , _ _.._ _._
Battery box location: LH Side.
Bolted crossmem-bers with 12mm fra-me..fas-te-n-e-rs-.-----~~
_
..
---0
..-O
- -...
0
~
·_·__~·
·_--.-..~.- ..-.------
0
_.._._._,_, ,
_
..
0
..--'-- ..-----··'·····M··=2'2
For center and rear frame.
Printed:
Effective Date:
Prepared by:
8/26/201610:38:32 AM
Jul1,2016
ID: craigstollings
Complete
Model Number:
QuotelDTPO/CO
Version Number:
Q71832060
38.10
Page 5 of8
69313-1 OEC1-0896
59
Bolted
__________
~~igh!
17
Description
Crossmember.
Rear Cab Support
Replaces T3 standard.
"~'~"'-'~""""'-'--~"-~---'----::S:--quare
e~n(i:oj..frame- w,-o'"c-ro'ssme-';;-ber;non-towing.
Fuel Tanks & Equip
Fuel Tank: 56 US gallon 24.5in. aluminum
-45
under
replace.
·-----·--···-"·····-····-··--·-··smaiTroUnc..jj-EF-·tank~-1-1gallons
of
--
__
,
.,.._ _, _ ··
--··-------6
useable volume. The DEF tank will be located on the side you specified. If
you have specific configuration or body builder concerns, please utilize the
Custom Frame Layout option. Standard capacity is calculated by fuel
capacity of the vehicle and will accommodate two diesel fill-ups for every
DEF fill-up. For 1:1 DEF fuel fill ratio, add 7889204.
Standard
is on the RH.
o
o
56 gal fuel tank RH u-nder cab
o
fill
DEF to fuel
DEF tank location
Location:
ratio: 2:1 or greater.
Cab & Equipment
0
Cab: Curved Glass Conventional.
Cab Includes aluminum & fiberglass fully hucked cab w/ all aluminum
bulkhead doors & continuous stainless steel piano-style door hinges.
Single electric horn standard, Incandescent exterior lights include
diagnosable bulb detection and warning. Trailer cable on tractors includes
integrity detection. Standard features include multiplex wiring for interior
lights, automated pre-trip inspection, short and open check diagnostics.
Warning alarm will sound when lights are left on.
-·- ..·-·-..--··-·----..----....Cab-ifoor·bearing·blOckS·;top&bottom:·'·-··-····
..·..·-·..·.·.·-·..·--'_..··_-·..·-····
...·..- ..·-·..·····---·
..··--....··--·0
Sloped aerodynamic
hood includes
grill & separate bumper.
..
-----.----.----~;;-;""";"'~--;-=:~;--.---;-;--;;--:-'--=--=-:::~-=---::=----------------;:;
Cab heater: W/integral
defrosters
btu cab heater. No sleeper heater/AC.
T66D include filter media,
& AIC 45,000
telescoping
0
Includes 5 mode rotary control.
........,.~--:--
.
Adjustable
o
tilt steering
10
column.
standar(f2'sets~ofkeys.
~~--------------·-~-o
,.,...'~,
5 sets of keys. Rep"iaces
.W"_~_.•••~,~,~•.., ,.,._' __ •.
---------·-
~__ •__
•__
.~~?_._._ ~ ~__.'~.._
Four Spare Switches:
,..."...._'r'~.__
~~.
_,.
.•~•• _ _'w._, ••_.,_
.,.
~~
.~._~
__
,••• ,__
~
__ .. ,.~,
~ •• _,_.
~
,.,.",'"
0
Wired To Power.
..-------.."Giiuge:·DaSh-mountedai'r-ruterrestriCtion gauge'.-···,---"·..· ..·······,",
..·..··--·-······-····
..·.·....,... -''''-''0
Instrument
package:
Includes
speedometer,
-......
,·--·..----------------···
-·-0
....·..
tachometer, fuel gauge, engine coolant temperature gauge, engine oil
pressure, voltmeter. Class 8 also includes primary & secondary air
reservoir gauges & an air application gauge. DEF level gauge and warning
lamp are included with 2010+ engines. Engine hour meter and outside air
temperature readouts are standard. Primary read out will be MPH. Add
8240620 to switch primary scale to KPH in Canada.
Cab interior:
Pinnacle.
Includes
vinyTheadline·i··· ..-- ..·_-"--..--··,--- ..---------------------0
& cab
back panel, slate gray interior, dark slate gray seats, floormats,
LHIRH inside sunvisor & door courtesy lights.
Printed:
Effective Date:
Prepared by:
8/2612016 10:38:32 AM
Complete
ju11,2016
10: craig stollings
69313-lOECI-0896
Model Number:
Quote/DTPO/CO
Version Number:
T300 Series Conventional
Q71832060
38.10
Page 6 of8
60
....l?~~_cri~!i~~ _
-.-oriver-seaE Kenwo'ii"il-Aiicushion Plus-HE3"viOyi:'
-----.--------
.
........
~~i~~~
2
.... ..
Standard features includes 7 in. fore and aft slide adjustment wlisolator, 623 degree recline, air suspension with cover, dual armrests, and single
chamber air lumbar support. Seat cushion is 20 inches wide wI 2-position
tilt and 2-position front cushion extension. Seat material has a horizontal
stitch pattern and is 2-tone in color. Seat back is carpeted and includes a
map pocket. Seat is manufactured by National. Includes inside visor and
retractable 3-point matching seat belts. Grey seat belts.
H£f;inyi:
Rider seat: Kenworth Toolbox Plus
··""-····-···-···--···--~~~---·--2
Standard features include fixed base and backrest, tool box seat base wI
door, and dual armrests. Seat cushion is 19.5 inches. Seat material has a
horizontal stitch pattern and is z-tone in color. Seat back is carpeted with a
map pocket. Seat is manufactured by National. Includes inside visor and
retractable 3-point matching seat belts. Grey seat belts.
• ••,. _ .... v
·
,.
•__••,_
.... ·._,_ •• _ ...
_N.·..._•._._._.__ ~.·".,._._
..,...__
·__
._,•.
w·...··'" ........n'"
",'
,,_
.••.,-••••
_._,,,.......,, _'_
•• ....
.. ......
'.....~ ... ,~•••
'~••_._.
Kenworth Radio with AM/FMIWB
4
Dash-mounted CB assembly: Includes bracket
4
binding posts. Dual antenna leads located on mirror bracket.
.......... ,
"~,."". ,
__
••,."' ,~
". '" '" ,.,.
.. .~•••••••
,~
_
",~,,~, "
,
~.~
"......... • •
,_
p
'., '_'''
__
v.., ,
__
.~,.,
'"
"
,.,,,,.
..
• •
__
y
o
Under-dash center console: W/2 cup holders, 1
ashtray, 1 lighter, 1 12V outlet & a storage compartment
o
Self cancelling turn Signal: W/head light dlmme'r
switch .
••
____
-,-----,,~-.----.,.----
~
,-.-.-.-
---
..-......
.,.-
p ""-'-"P'
_
_._
,
,.,
, .
_.
.,
~ •. _ .• _,
_
__
.'""
w_._.~._mwM_._~_ Cab access contoured grabhandles, LH/RH.
__ ..__~~~ __"."_..._. ..__.__ d."_..__ .
Grabhandle LH inside door frame above dash.
··Giibharidie···RH·i·ns·ided·oor·fra~me'above-dash~·
........
""OAYLIr'E'-',,[)(j'C)'R':""LHiRH"'fN'C'C"-RH-PEEP-ER'WIN'o'o'ii
----..----'"_._."
'_." ,.., , "., ,."""--_ .._ .._
--,
Dual rectangular air horn 23 in. LH & RH top of
_ .., .."
_"''',
.__..~'~ .._._._.__ .
· _H._' ..~" ..M
•.
0_
0
2
__ ·".._
,.." ..,.
_-_ •.•....._ _ .•_ _--..
------
6
11
roof. Includes air horn covers.
o
-- -
- -..--
- -..-
- ..~.-.~------- ••----c-------c----::---::-.
o
Look-Down, Pass. Door, Stainless B.5x4.4
.... -"
_
_.._
'.,
~._._.._••'"__•__
",
vv_.
•__
_
"
_·..·,__
v·
_
..'..
•
,.',
.
Mirror: Dual Prutsman mirror 7 in. x 16 in.
0
polished stainless steel, thermostatically controlled. switch located on door
pad.
..."'~"'''..._"." .."'~'''_..--'_ ...
_._---- _
N.
__ h"~_.~._~_~ .••_._.
Mirror brackets 8-1/2 ft load width.
- "·--------------·ETeciric-poweii~d· ..·LH·-&'"·RHdoor w'fndow Iitts .~
~,~~~~_
.....~~ "..~~__ ... ~.h"'~'h'_~
-..~-----~--~
"..- ..- - .
•
0
o
Switch located on door.
24
Lights & Instruments
Headlamps: Halogen Projector Low Beam, Halogen
o
Complex Reflector High Beam
Printed:
Effective Date:
Prepared by:
8/26/2016 10:38:32 AM
Complete
Ju11,2016
ID: craigstollings
69313-lOEC 1-0896
Model Number:
Quote/DTPO/CO
Version Number:
Q71832060
38.10
Page 7 of8
61
Description
aerodynamic
mounted-j-n------'---..-
----«---..--- ..--------MarkerLights:Five'
sunvisor.
,-._",-._...._--_,.."""--"--'-'-"---'Ti~'rn'''si9i1"ai'i~ig-t''ts':'-'Mo'l.-ntecfon fender
---------c:::-o-m~bi;-n;__a-;;-tionStop,
Tail, Turn & BackupLights
-'-------6
RH ----------------------------'-
..
& LH.
Air Equipment
o
Air Dryer: Bendix AD-IS heated.
Extended
Warranty
Medium-duty
Warranty:
1-year/unlimited
o
mi.
Miscellaneous
GHG Secondary
Manufacturer:
o
Does Not Apply
Additional lead time required for off highway & ---,·,,-·-- ..-----'-· ..·..·- ..·- ..-'-----6
for specialty component truck,
--"-------------'--------Warn ingtrianglerefled'-o-r k:-:i-:-t:--::Sh
ipped loose:-----"--------'----.._-',
..·..---·-,..-·,---·-----·-'--"4
Kit consists of 3 triangles in plastic carrying case, Not floor mounted,
--.,'-.---....- .. '-""'-""""- --One-STb:'d,y'chem-icaltYpe-fire'extfnguisher'-outboard of driver seat. Class ABC.
----,-_ '_.__ .._--'mounted
.. _ .._ ,-,.-_ _ - ,,,--_.. ..- _ ,,_ ,_ ..,_ ,-_ - .."
,
"
,
,
",
,
-,.
11
_-_ ..
-" ..,.., ,..
,
Paint
Paint color number.
N97020 A..
L0006
WHITE
N97200 FRAME
N0001
BLACK
N97700~ BUMPER
L0006
WHITE
.----.--~~----~-.,-,-...--.,-.- ,-..- -..-..~.-,"
,- Bumper Painted Color A
-.'"'."
~,~
,
--..
---Oay' Cab
Standard
,,"'
'
o
,"
Paint
o
-.--"'--~.~~ ..·.~. ·~·-~·..·.·...."""'·'·..-"
..· -·.,.·~·-·
..-··~~~~·--..""~--,...-~~O·
...
1 - Color Paint - Day Cab
Color will be White if no other color is specified.
'
"~,, "'
"."." ,
.
o
Base coat/clear coat.
The Kenworth Color Selector contains additional instructions, as well as
information on Kenworth paint guidelines and surface finish applications,
Kenworth is standard with Dupont Imron Elite paint.
Total Weight
118161b
Prices and Specifications
Printed:
Effective Date:
Preparedby:
8/261201610:38:32 AM
Subject
Complete
Ju11,2016
to: craigstollings
to Change Without
Model Number:
Ouote/DTPO/CO:
Version Number:
69313-10ECI-0896
Notice.
T300 Series ConventionaL
071832060
38.10
Page 8 of8
62
CITY OF HOT SPRINGS
AGENDA ITEM #12
R-16-146
DISTRICT:
1
2
Date Submitted:
10/5/16
10/18/16
3
4
5
6
X Resolution
 Ordinance
 Other
 City Wide
 Other
SUBJECT: Award bid for Pumper
Truck for Wastewater Dept.
RECOMMENDATION: Staff recommends awarding bid for Pumper Truck to Skymark Refuelers LLC,
Kansas City , KS.
DISCUSSION: The Utilities Department, Sewer Lift Division, is replacing unit #7379 a 1999 International
4900 Pumper Truck due to age, dependability, and cost of needed repairs. The pumper/Vac Truck is
utilitized within the department for servicing and removing sludge/solids from wastewater pump
stations during backups. Two (2) bids were received with Skymark Refuelers, LLC being the lowest,
responsive, responsible bidder offering a 2017 Freightliner M2 106 with FlowMark 2800 Vacuum System
& Masport HXL400WV Pump. Bids were reviewed by department staff and Fleet Services Director Greg
Speas. Recommendation by both parties is that we accept the bid from Skymark Refuelers LLC.
The bids were advertised, posted on the city website, notices mailed to 10 other vendors, and was
available in the Purchasing office.
FISCAL IMPACT: Total cost of pump truck $118,110 plus applicable sales tax. Funds are budgeted in the
2016 CIP plan 645.9.663.64.5839 for this purchase.
ALTERNATIVES:
N/A.
Prepared by:
Approved by:
Monty Ledbetter, Utilities Director
63
A RESOLUTION APPROVING THE PURCHASE OF A WASTEWATER PUMPER/VACUUM TRUCK FROM
SKYMARK REFUELERS, LLC.
WHEREAS, competitive bids for certain goods and services have been received and evaluated in
accordance with Ordinance No. 5387; and that
WHEREAS, City Staff has reviewed the bids and recommends awarding the bid to SkyMark
Refuelers, LLC; and
Arkansas:
That the Mayor is hereby authorized and directed to execute a contract with SkyMark Refuelers,
LLC in the amount of $118,110 plus taxes for a 2800 gallon vacuum and pumper truck; and provided
further that the City Manager is authorized to act on behalf of the City in the administration of said
contract.
PASSED:_____________________________
APPROVED:
ATTEST:_____________________________
64
RUTH CARNEY, MAYOR
65
66
67
68
69
70
71
City of Hot Springs
Certificate of Availability
This is to certify that funds in the amount of
2016 budget in account
$
118,110
to pay for obligations associated
645.9.663.64.5839
with this request for a contract with
for the purchase of
are available in the
SkyMark Refuelers
.
Sewer Pumper/Vac Truck
/s/ Dorethea N. Yates
Dorethea N. Yates
Finance Director
10/7/2016
Date
72
CITY OF HOT SPRINGS
AGENDA ITEM # 13
DISTRICT:
1
Date Submitted:
October 11, 2016
October 18, 2016
2
3
R-16-147
4
5
6
 Resolution
 Ordinance
 Other
 City Wide
 Other
SUBJECT: Approval of
QualChoice as the City’s Third
Party Administrator for
emplolyee’s health insurance
RECOMMENDATION:
Staff recommends contracting with QualChoice to provide Third Party
Administrator (TPA) services for the Employee’s health insurance plan. This approval also includes the
structure of the network and selection of a reinsurance provider.
DISCUSSION: Due to the rising costs of healthcare which were experienced in 2015 and 2016, the City
Manager formed a review group to revisit the City’s healthcare plan for the purpose of reducing costs
and improving the level of service available to employees. This committee consisted of City Manager
David Frasher, Bill Burrough, Lance Spicer, Minnie Lenox, and Dorethea Yates. Director Randy Fale
served in an advisory role, and the committee was assisted by the City’s insurance broker, Stephens
Insurance, LLC (Stephens). Stephens was represented by Mary Busby and Cheryl Bradshaw.
The committee had several initial meetings to discuss the status of the current healthcare plan, and the
direction that it needed to go. Self-funded options and private insurance options were discussed at
length, and both costs and quality of care were considered. The committee determined that it would be
in the City’s best interests to remain self-funded.
Stephens then conducted an RFP process for TPA services. The Committee requested presentations
from QualChoice, CoreSource, and Healthscope which would provide the committee the opportunity to
ask questions and get a better understanding of each proposal. Various options were presented by each
company including reinsurance, network pricing, administrative pricing, precertification requirements,
medical management, and disease management. Network pricing can also vary between physician
services and facility services.
After hearing presentations and considering various options, the committee recommends that the City
contract with QualChoice for TPA services. The advantages to choosing QualChoice include:





greater provider discounts
care management services
lower fixed costs
no balance billing to members
improved level of customer service
FISCAL IMPACT:
Fixed costs (administrative costs and reinsurance premium) will decrease by
approximately $65,000. Since utilization is a variable, it is difficult to project savings for physician
services and facilities. However, the changes in network should produce substantial savings for the plan.
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ALTERNATIVES: There are many alternatives, including continuing with our current TPA and network,
choosing another TPA that responded to our RFP process, or conducting another RFP process.
Prepared by:
Approved by:
Dorethea Yates, Finance Director
74
A RESOLUTION APPROVING A CONTRACT WITH QUALCHOICE AS THIRD PARTY ADMINISTRATOR FOR
THE CITY OF HOT SPRINGS SELF-FUNDED EMPLOYEE GROUP HEALTH INSURANCE PROGRAM.
WHEREAS, the City of Hot Springs, Arkansas, selected QualChoice Health Insurance pursuant to
a competitive selection process defined by the terms and conditions of the attached contract.
Arkansas:
SECTION 1. That the contract with QualChoice Health Insurance for the City’s self-funded
employee group health insurance program is hereby approved for the calendar year 2017; provided
further, that said contract may be extended for additional terms with annual approval of the Board of
Directors.
SECTION 2. That the City Manager or his designee is hereby authorized to act on behalf of the
City with regard to aforementioned contract.
.
PASSED:_____________________________
APPROVED:
ATTEST:_____________________________
75
RUTH CARNEY, MAYOR
ADMINISTRATIVE SERVICES AGREEMENT
This Administrative Services Agreement (“Agreement”) is made and entered into this 1st day of January,
2017, (the “Effective Date”) by and between City of Hot Springs, a business or governmental civic entity duly
organized and existing under the laws of the State of Arkansas, or qualified to engage in business in the State
of Arkansas (hereinafter referred to as the “Plan Sponsor”) and QualChoice Health Plan Services, Inc., a
corporation duly organized and existing under the laws of the State of Arkansas (hereinafter referred to as
“QualChoice”). QualChoice and Plan Sponsor hereafter are referred to as the “Signatories.” Together with
the individual, committee or entity designated by Plan Sponsor to serve as the “Administrator” of the “Plan”
(each as defined below), the Signatories and the Administrator hereafter are referred to as the “Parties.”
WHEREAS, Plan Sponsor sponsors and maintains a self-insured employee welfare benefit plan (the “Plan”),
known as the City of Hot Springs Employee Benefit Plan, in accordance with the relevant provisions of the
Employee Retirement Income Security Act of 1974, as amended (“ERISA”), including Sections 402 and 403
thereof; and
WHEREAS, Plan Sponsor wishes to contract with an independent third party to perform certain
administrative services with respect to the Plan as enumerated below; and
WHEREAS, QualChoice desires to contract with Plan Sponsor, subject to the approval by the Administrator of
the relevant terms and conditions of such contract, to perform such administrative services with respect to
the Plan, as enumerated below; and
THEREFORE, in consideration of the premises and mutual covenants contained herein, the Signatories enter
into this Agreement to provide for such administrative services.
ARTICLE I. DEFINITIONS
For the purposes of this Agreement, the following words and phrases have the meanings set forth below.
Unless the context clearly indicates otherwise and wherever appropriate, the singular shall include the plural
and the plural shall include the singular.
1.1
Administrator means the individual, committee, or entity, designated in writing by the Plan Sponsor
as the “administrator” of the Plan, within the meaning of Section 3(16)(A) of ERISA, to serve as a
“named fiduciary” of the Plan and to have overall discretionary authority and responsibility for the
administration of the Plan, including all relevant reporting and disclosure responsibilities imposed by
ERISA and pertaining to the Plan, and all discretionary authority to construe, interpret and apply the
Plan’s provisions to claims. Plan Sponsor shall be entitled to designate itself as the Administrator,
and in the event no designation is made, the Plan Sponsor shall be the Administrator.
1.2
Beneficiary means an individual covered by the Plan as a lawful spouse or dependent of a Participant
in accordance with the provisions of the Plan which extend Plan coverage to certain family members;
and any Health Care Provider holding a valid assignment of a Claim from a Participant or a
Beneficiary in accordance with Section 3.4(f) hereof.
1.3
Claim means a request by a Claimant for payment or reimbursement by the Plan, including claims for
Covered Services.
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1.4
Claimant means any individual or entity submitting expenses for payment or reimbursement from
the Plan.
1.5
Claims Payment Account means an account, established and maintained by Plan Sponsor, or the
Administrator or Trustee as Plan Sponsor’s designee, to provide appropriate funding for payment or
reimbursement for Covered Services. Plan Sponsor shall designate in writing whether such Account
shall be an asset of Plan Sponsor or an asset of the Plan.
1.6
COBRA means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended and
currently in effect, including all relevant regulations.
1.7
Covered Services means the care, treatments, services, or supplies expressly described in the Plan
Document and/or Summary Plan Description, or in any other written instrument provided to
QualChoice by the Administrator, as eligible for payment or reimbursement from the Plan.
1.8
Designee means one of the individuals, committees, or entities that Plan Sponsor has identified, in a
writing provided to QualChoice for that purpose, as authorized to serve as the Administrator, the
Trustee, the Privacy Officer (where not the Administrator), or to serve as some other “named
fiduciary” of and for the Plan. “Designee” means any one of those designated by Plan Sponsor
hereunder; “Designees” means all of them, collectively.
1.9
ERISA means the Employee Retirement Income Security Act of 1974, as amended.
1.10
Fee Schedule means the listing of fees or charges for services provided under this Agreement as set
forth in Exhibit A. This Fee Schedule may be modified from time to time as reflected in Article VI.
1.11
Health Care Provider means any physician, dentist, hospital, or other medical practitioner or medical
care facility that is duly licensed and authorized to receive payment or reimbursement for Covered
Services provided under the terms of the Plan.
1.12
Plan means the employee welfare benefit plan that is the subject of this Agreement and that Plan
Sponsor has established pursuant to the Plan Document.
1.13
Plan Document means the instrument or instruments that Plan Sponsor has adopted and identified
to QualChoice as part of the Plan Document, which set forth the terms of the Plan and govern the
duties of Plan Sponsor and eligibility and benefit provisions of the Plan that provide for the payment
or reimbursement of Covered Services.
1.14
Participant is any person who is properly enrolled and entitled to benefits from the Plan.
1.15
Plan Sponsor means the trade or business or other organization that has established and is
maintaining the Plan to which this Agreement pertains; such term will include any successor
organization or affiliate of Plan Sponsor that assumes the obligations of the Plan and this Agreement,
either by agreement or by operation of law.
1.16
Plan Year means the period of time specified as such in the Plan Document.
1.17
Privacy Officer means that individual, designated and identified to QualChoice by Plan Sponsor in
accordance with the provisions of the Exhibit B hereto and all relevant Health Insurance Portability
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77
and Accountability (“HIPAA”) and HITECH regulations then in effect, as responsible for complying
with all relevant and applicable federal, state and local health privacy laws and regulations, including
without limitation the handling, segregation and disclosure of those Plan records which constitute
protected health information (“PHI”).
1.18
Qualified Medical Child Support Order (“QMCSO”) means a court order, lawfully issued by a court of
competent jurisdiction in connection with a domestic relations dispute, which assigns to a Participant
the responsibility to provide health care coverage for an unemancipated dependent child.
1.18
Summary Plan Description means the document required to be created under Section 102 of ERISA
that describes the Plan’s general provisions, including the terms and conditions under which the Plan
operates on a day-to-day basis.
1.19
Trustee means that individual, or entity lawfully vested with trust powers under applicable state law,
designated by Plan Sponsor in accordance with Section 4.8 hereof to serve as the trustee of any plan
assets used to provide for Plan benefits and discharge the reasonable expenses associated with
administering the Plan. Plan Sponsor shall not be permitted to designate itself the Trustee unless
Plan Sponsor either (a) has trust powers under relevant state law, or (b) Plan Sponsor is an individual.
ARTICLE II. RELATIONSHIP OF PARTIES
2.1
QualChoice shall have only those rights, duties and responsibilities pertaining to the Plan that are
specifically enumerated in this Agreement or in an exhibit, addendum or amendment hereto. Any
function not specifically assigned to or otherwise undertaken by QualChoice pursuant to this
Agreement shall remain the sole responsibility of Plan Sponsor or its Designees.
2.2
The Parties enter into this Agreement as independent contractors and not as agents of each other.
None of the Parties shall have any authority to act in any way as the representative of any of the
others, or to bind any or all of the others to any third party, except as specifically set forth herein.
2.3
The Signatories acknowledge that:
(a)
Except to the extent otherwise specified in this Agreement or in an exhibit, addendum or
amendment hereto, this is a contract for non-fiduciary administrative services only and
QualChoice shall not serve, or be designated or identified to third parties by Plan Sponsor as
being, a Plan fiduciary;
(b)
Plan Sponsor shall be solely responsible for funding all Claims for Covered Services and,
therefore, QualChoice shall not be obligated to disburse more in payment for Claims or
other obligations arising under the Plan than Plan Sponsor shall have made available in the
Claims Payment Account;
(c)
This Agreement shall not be deemed or treated by any of the Parties as a contract or policy
of insurance under any federal, state or local laws or regulations, QualChoice shall not
insure, guarantee, or underwrite any of the liability of Plan Sponsor or any other person or
party under the Plan, and QualChoice shall not be designated or identified to third parties by
Plan Sponsor as having insured, guaranteed or underwritten any of the liabilities arising
under or in connection with the Plan; and
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78
(d)
Except to the extent such liability has been transferred to a trust established and maintained
in accordance with Section 403 and related sections of ERISA, Plan Sponsor shall have total
responsibility for the payment and discharge of Claims adjudicated as properly payable
under the terms of the Plan and all expenses incident to the proper administration of the
Plan.
2.4
In the case a dispute arises as to any issue regarding the respective rights, duties and obligations of
the Parties hereto, such dispute may be resolved through arbitration. A Party that believes that it
has been aggrieved hereunder will notify the other Parties, in writing, of the name of its
representative(s) who will have primary responsibility for communicating with the other Party or
Parties involved in the dispute. The other involved Parties shall reciprocate in kind. If the
representatives of the disputing Parties are unable to resolve the dispute, any Party thereto may
request to submit the dispute to arbitration before a single arbitrator in accordance with the rules of
the American Arbitration Association. If all involved Parties agree to submit such dispute(s) to
arbitration, the decision of the arbitrator shall be final and binding on all of the Parties thereto and
such Parties shall share equally in the cost of the arbitrator's fee.
2.5
The services to be performed by QualChoice under this Agreement may, in QualChoice’s reasonable
discretion, be performed directly by QualChoice or in whole or in part through a subsidiary or
affiliate of QualChoice or by agreement with an organization, agent, advisor, or other person of
QualChoice’s choosing. Upon request of Plan Sponsor, QualChoice will identify in writing any
subsidiary, affiliate, or third party performing such services.
2.6
QualChoice shall be duly registered (as either a domestic or foreign corporation) in the state where
this Agreement is to be performed, and also shall be licensed as a third party administrator to the
extent required under relevant state and local law; QualChoice also shall maintain such registration
and such licensure (where required) throughout the term of this Agreement. QualChoice also will
acquire, maintain and keep in effect throughout the term of this Agreement an adequate fidelity
bond or similar insurance policy, as and where required by Section 412 of ERISA or by other relevant
state or federal laws and regulations. Additionally, throughout the life of this Agreement,
QualChoice shall comply with all relevant state and federal statutes or regulations that pertain to its
operations, and to timely obtain and keep in effect any additional licenses or registrations that may
apply in the future.
2.7
Provided timely notice is provided by Plan Sponsor, QualChoice will defend, indemnify, save and
hold harmless Plan Sponsor and its Designees from and against any and all third party claims, suits,
actions, liabilities, losses, fines, penalties, damages and expenses of any kind, including but not
necessarily limited to direct, indirect, consequential, or punitive expenses or fees, including court
costs and reasonable attorney's fees, which pertain to the Plan and directly result from or arise out
of the dishonest, fraudulent, grossly negligent, or criminal acts of QualChoice or its employees,
excepting only acts and omissions taken at the specific direction of Plan Sponsor or a Designee
thereof.
2.8
QualChoice shall be entitled to rely, without investigation or inquiry, upon any written or oral
information or communication provided to QualChoice or any of its officers, employees and/or
agents, by Plan Sponsor, or a Designee, or any officer, employee, member or agent thereof.
2.9
Provided timely notice is provided by QualChoice, Plan Sponsor will indemnify, save, and hold
harmless QualChoice from and against any and all third party claims, suits, actions, liabilities, losses,
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79
fines, penalties, damages, and expenses of any kind including, but not limited to, direct, indirect,
consequential, or punitive damages, expenses or fees, including court costs and attorney's fees, to
the extent that such claims, losses, liabilities, damages, and expenses arise out of or are based upon:
(i) negligence on the part of Plan Sponsor or a Designee (or all of them) in the performance of its
duties under the Plan and under this Agreement, (ii) unauthorized or unlawful disclosure or release
of Claims data by QualChoice or one of its Designees (or all of them), an authorized release of claims
data by Plan Sponsor or one of its Designees (or all of them), or if such release is at the request of
Plan Sponsor, to any other entity or person, (iii) any interpretation or application of the Plan, or any
other written or oral communication made by Plan Sponsor or any of its Designees, upon which
QualChoice relies, (iv) the processing, payment, denial, adjudication, or appeal of any Claim, (v) any
breach of fiduciary duty, or any negligent, tortious, dishonest, fraudulent, or criminal acts of Plan
Sponsor or any Designee thereof, or any of their respective agents, directors, officers, members or
employees, pertaining to the Plan; or (vi) any breach of this Agreement by Plan Sponsor, including,
but not limited to, any failure or refusal to timely and adequately fund the Claims Payment Account.
ARTICLE III. QUALCHOICE’S RIGHTS AND RESPONSIBILITIES
QualChoice will provide the following Plan administrative services in fulfillment of its responsibilities
hereunder, subject to its having (and having the authority to assert) the following related rights:
3.1
(a)
Maintain Plan records based on eligibility information submitted by the Administrator as to
the dates on which a Participant's or Beneficiary’s coverage commences and terminates.
(b)
Maintain Plan records of Plan coverage applicable to each Participant and Beneficiary, based
on information provided by Plan Sponsor or the Administrator.
(c)
Maintain Plan records regarding payments of Claims, denials of Claims, and Claims pended.
(d)
Respond to Claims submitted by or on behalf of Participants and Beneficiaries in accordance
with the Plan Claims procedures, ERISA Claims regulations (as amended by the Patient
Protection and Affordable Care Act (“Affordable Care Act”)) then in effect (“ERISA Claims
Regulations”), subject to the following conditions and limitations:
(i)
(ii)
(iii)
(e)
QualChoice shall be responsible for determining Urgent Care Claims (as defined
under the ERISA Claims regulations then in effect) only if the Administrator submits
eligibility information on a daily basis under Article IV.
QualChoice shall not be responsible for determining any Pre-Service Claim (as
defined under the ERISA Claims regulations then in effect) if the initial decision on
such Claim is decided by a third party other than QualChoice.
If a Claim cannot be determined by QualChoice without an interpretation of the
Plan terms by the Administrator or another Designee of Plan Sponsor, such Claim
shall be promptly referred to the Administrator or such Designee. Upon receipt of
the Administrator’s or Designee’s interpretation, QualChoice shall process payment
of the Claim or prepare a notice of adverse determination, setting forth the
required information, as applicable.
For any Denied Claim that is appealed, QualChoice shall provide a copy of the file to the
Administrator or other Designee responsible for deciding such appeal. QualChoice is not a
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fiduciary under the Plan, and is not exercising any fiduciary duties under the Plan. In
addition, QualChoice is not a “Named Fiduciary” under ERISA.
3.2
Verify Participant eligibility and coverage upon request by a Participant or a Beneficiary, or a Health
Care Provider capable of demonstrating to QualChoice’s reasonable satisfaction that it is treating, or
expects to treat, a Participant or Beneficiary.
3.3
Assist the Administrator in the initial solicitation and enrollment of Participants and Beneficiaries,
including but not limited to: (a) at the Administrator’s request, assisting in application completion at
on-site information sessions, (b) at the Administrator’s request, distributing enrollment forms and
answering inquiries, (c) creating and maintaining enrollment records for Participants and
Beneficiaries, (d) distributing identification cards, and (e) maintaining an on-line list of current
primary Health Care Providers.
3.4
(a)
Adjudicate Claims incurred by Participants according to the terms of the Plan Document as
construed by the Administrator. These Claims will be adjudicated exercising ordinary care
and reasonable diligence in accordance with industry practices. In connection with making
such adjudications, QualChoice will use an industry-recognized method and standard for
determining usual, customary, and reasonable charges, and current, market-based
information.
(b)
Process with due diligence, based on the terms of the Plan Document as construed by the
Administrator and in accordance all applicable laws and regulations, any permitted good
health statements, any permitted pre-existing conditions requirements, disability
determinations, subrogation, and coordination of benefits situations.
(c)
Determine the initial validity of a Claim or the need for additional information, including any
Urgent Care Claims (as defined under the ERISA Claims regulations then in effect). Where
QualChoice determines that additional information is needed, the request will be sent in
accordance with the ERISA Claims regulations then in effect.
(d)
If a response for additional information is not timely received, the Claim will be determined
based upon the information held by QualChoice at the end of time for responding to the
request for additional information. No additional requests for information will be sent.
(e)
When all necessary documents and Claim form information have been received and a Claim
has been adjudicated and approved for payment, make and remit or release a Claim check,
draft, or electronic funds transfer on the next disbursement date.
(f)
Applying the restricted assignment provisions set forth in the Plan Document in a uniform
and nondiscretionary manner, (i) identify those Health Care Providers covered by and
participating in network provider agreements and entitled to take assignment of Claims and
receive direct payment from the Plan (each, a Beneficiary hereunder), and (ii) identify those
Health Care Providers not covered by and participating in network provider agreements, not
entitled to take assignment of Claims and lacking standing to assert Claims or otherwise
receive payment directly from the Plan.
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(g)
Determine, process and pay from the Claims Payment Account any and all fees and
assessments properly assessable upon the Plan under Sections 1341 through 1343 of the
Affordable Care Act and related regulations.
3.5
Refer any doubtful or disputed Claims to the Administrator for a final decision in accordance with
Article IV hereof.
3.6
Process, issue, and distribute Claims checks, drafts, or make direct deposits via electronic funds
transfer to Participants and Beneficiaries or others as may be applicable. Claims paid in good faith
but in error by QualChoice shall be chargeable to the Claims Payment Account as any other Claim,
but QualChoice shall make good faith attempts to recover for the benefit of the Plan any
overpayments or, when appropriate, adjust subsequent payments; QualChoice shall not, however,
be required to initiate court proceedings to recover an overpayment or to reimburse the
Administrator for any unrecovered payments. On a schedule mutually agreed upon by the Parties,
but not less frequently than weekly, QualChoice will notify Plan Sponsor of the amount required to
be deposited to the Claims Payment Account to discharge and satisfy the Claims adjudicated to be
due and payable.
3.7
Notify a Participant or Beneficiary submitting an ineligible Claim of that determination, in accordance
with the applicable ERISA Claim regulations then in effect. .
3.8
Respond to Claim-related inquiries made by a Participant or Beneficiary, in a manner consistent with
the ERISA Claims regulations.
3.9
(a)
Maintain confidential information pertaining to a Participant or Beneficiary, taking all
reasonable precautions to prevent disclosure or the unauthorized use of Claims information,
consistent with the applicable Business Associate Addendum attached and made part of this
Agreement.
(b)
Release or otherwise disclose information pertaining to a Participant or Beneficiary which
qualifies as PHI only as and where permitted by the HIPAA Business Associate Addendum.
(a)
At the request of Plan Sponsor and for a separate fee as set forth in Exhibit A, prepare a
draft Plan Document for review and final approval by Plan Sponsor and Plan Sponsor's legal
counsel.
(b)
At the request of the Administrator and for a separate fee as set forth in Exhibit A, prepare a
draft Summary Plan Description for review and final approval by the Administrator and its
legal counsel. Upon acceptance by the Administrator, QualChoice will then furnish copies of
the Summary Plan Description sufficient for distribution to all Participants. The cost for
printing and distribution of these documents will be either the responsibility of Plan Sponsor
or (where so indicated by Plan Sponsor) the Plan.
3.10
3.11
At the request of Plan Sponsor and for a separate fee as set forth in Exhibit A, prepare Plan
Document amendments for review and final approval by Plan Sponsor and Plan Sponsor's legal
counsel. Upon acceptance by Plan Sponsor, QualChoice will then furnish copies of any Plan
Document amendment sufficient for distribution to all Participants. The cost for printing and
distribution of these documents will be the responsibility of Plan Sponsor.
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3.12
With the approval of the Administrator, engage the services of an unrelated, third-party subrogation
recovery services vendor to investigate and pursue recovery on behalf of the Plan those benefit
payments for which a third party is or may be liable. The Administrator agrees, in advance, that such
vendor shall be entitled to a fee for its subrogation recovery services and acknowledges that
QualChoice will receive a portion of that fee in return for QualChoice’s cooperation and assistance in
the effort made to recover all or a portion of such payments. The additional fee for subrogation
services is reflected in Exhibit A. All proposed settlements of subrogation claims shall require the
Administrator’s prior written approval.
3.13
(a)
Maintain a Claim file on every Claim reported by a Participant or a Beneficiary. Such files and
all Plan related information shall be made available to the Administrator for consultation,
review, and audit upon reasonable notice and request, during the business day and at the
office of QualChoice. Any such audit will be at the sole expense of Plan Sponsor.
(b)
All requests for an audit must be made to QualChoice in writing at least 60 days before the
requested start date for the audit. The date(s) of the audit will be mutually agreed upon by
the Parties. The auditor shall be engaged by Plan Sponsor, shall not be a competitor of
QualChoice, and must sign a confidentiality and non-disclosure agreement in a form
preapproved by QualChoice. The audit may include, but will not necessarily be limited to, a
review of procedural controls, a review of system controls, a review of Plan provisions, a
review of the sampled Claims, and comparison of results to performance standards and
statistical models previously agreed to by Plan Sponsor and QualChoice. QualChoice must
be given the opportunity by Plan Sponsor and Plan Sponsor’s auditor to review a draft of the
audit results and the opportunity to comment on such draft before a final report is
presented to Plan Sponsor.
3.14
Provide data in QualChoice’s possession, in a format QualChoice designates, if and when requested
by the Administrator, for the preparation and filing of any return or report required by ERISA or
other relevant law, including or Form 5500 and the schedules thereto.
3.15
Perform special Claims history research projects upon request by Plan Sponsor and upon payment of
a separate fee to be mutually agreed upon.
3.16
Provide QualChoice’s standard reporting package for the types of services being provided. Any
reports requested by Plan Sponsor other than those in QualChoice’s standard reporting package may
be provided as agreed upon by Plan Sponsor and QualChoice and may be subject to a separate fee.
3.17
Upon written request of Plan Sponsor, procure excess loss or stop loss (specific and aggregate)
insurance proposals and policies for Plan Sponsor's consideration and selection and except as
provided in Section 3.24 hereof, specify that such excess loss or stop loss insurance will be an asset
of Plan Sponsor and not of the Plan. Actual selection of an excess loss or stop loss policy, and
payment of the relevant premium, at all times shall be the sole responsibility of Plan Sponsor.
3.18
(a)
If applicable, notify the excess loss insurance company of any potential large Claims that
may become a Claim under the excess loss coverage.
(b)
On behalf of Plan Sponsor, file in a timely manner any Claims for benefits under the excess
loss policies.
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83
(c)
Promptly forward to Plan Sponsor any premium and other notices received from the excess
loss insurance company concerning the stop loss policy.
3.19
Offer welfare plan consulting services upon request by Plan Sponsor and upon payment of a separate
fee to be mutually agreed upon.
3.20
Provide standard utilization review services, including precertification of hospital stays, concurrent
review of hospital stays, discharge planning, large case management, and any other managed care
programs as agreed to between the Administrator and QualChoice.
3.21
Upon written request of the Administrator, generate and mail certificates of Creditable Coverage to
Participants and Beneficiaries, based on information supplied by Plan Sponsor. A separate fee will be
charged for this service as set forth in Exhibit A.
3.22
(a)
Establish and maintain a network of Health Care Providers who will deliver, as independent
contractors, the Covered Services of the Plan. QualChoice shall be entitled to rely upon any
and all representations made by Health Care Providers regarding their qualifications as
Health Care Providers, and shall have no obligation or liability to obtain, verify or monitor
such qualifications.
(b)
QualChoice will not be responsible for any services provided (or any failure to provide
services) by participating Health Care Providers.
3.23
Upon termination of this Agreement and written request of Plan Sponsor, all Claim files, reports,
magnetic tapes, filings with governmental entities, and plan documentation will be remitted to Plan
Sponsor, except to the extent that QualChoice determines that it must maintain any information by
applicable law or under its own record retention policies. Until that time, these records will be
maintained at QualChoice's principal administrative office or secure storage facilities for at least six
(6) years following the termination of the final Plan Year under this Agreement. At the end of the six
(6) year period or termination of this Agreement, if earlier, QualChoice is hereby authorized by Plan
Sponsor to destroy these records unless Plan Sponsor requests in writing and prior to the end of the
six (6) year period that all or some of the records be forwarded to Plan Sponsor.
3.24
In the event Plan Sponsor directly or indirectly commits a breach of this Agreement under either
Section 5.3 or Section 5.4 hereof (and where relevant, fails to cure such breach within the time
period specified therein), or in the event QualChoice reasonably determines in accordance with this
Section that Plan Sponsor has entered a period of Financial Impairment (as herein defined),
QualChoice may, at its sole and exclusive election, continue performing services under this
Agreement and without waiving or renouncing any of its rights to assert a breach of this Agreement
in respect of any subsequent events, so long as Plan Sponsor (and where relevant, its Designees)
comply with and satisfy the following conditions to QualChoice’s reasonable satisfaction:
(a)
Settle and establish a trust and a trust fund, with a Trustee that is a bank, trust company or
similar institution, to receive, hold, invest and disburse any and all participant contributions
and other plan assets (within the meaning of relevant U.S. Department of Labor
regulations);
(b)
Assign to the Trustee any and all stop loss policies then in effect and associated with
maintaining the Plan;
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(c)
Increase those Fees specified in Exhibit A hereto, pertaining to the administration of the Plan
and marked by an asterisk, and where appropriate, provide for the payment of such Fees
from the Plan; and
(d)
Obtain and deliver to QualChoice either a written guarantee, from a third party reasonably
acceptable to QualChoice, guaranteeing Plan Sponsor’s obligations under Section 2.9 hereof;
or a performance standby letter of credit issued by a bank reasonably acceptable to
QualChoice, guaranteeing Plan Sponsor’s obligations under Section 2.9 hereof.
For purposes of this Section 3.14, “Financial Impairment” means (i) any material default by Plan Sponsor of
any loan, loan covenant or similar obligation Plan Sponsor may then have to any lender providing secured
financing, working capital or factoring services to Plan Sponsor; or (ii) the imposition of a federal tax lien by
the Internal Revenue Service on any or all of Plan Sponsor’s assets.
ARTICLE IV. DUTIES AND RESPONSIBILITIES
OF PLAN SPONSOR AND ITS DESIGNEES
Plan Sponsor, or as applicable one of its Designees, will:
4.1
Maintain current and accurate Plan eligibility and coverage records required by QualChoice and
submit this information to QualChoice within the timeframes requested by QualChoice. This
information shall be provided in a format reasonably acceptable to QualChoice and include the
following for each Participant and Beneficiary: name and address, Social Security number, date of
birth, type of coverage, sex, relationship to employee, changes in coverage, date coverage begins or
ends, and any other information necessary to determine eligibility and coverage levels under the
Plan.
Plan Sponsor assumes all responsibility and liability for the erroneous disbursement of benefits by
QualChoice in the event of error or negligence on Plan Sponsor's part of providing eligibility and
coverage information to QualChoice, including but not limited to, failure to give timely notification of
ineligibility of a former Plan Participant.
4.2
Have sole discretion and exclusive and final authority to resolve all Plan ambiguities and disputes
relating to the Plan eligibility of a Participant or Beneficiary, scope of Plan coverage, denial of Claims
or decisions regarding appeal or denial of Claims, or any other Plan interpretation questions; such
exercises of authority in any event shall be made and discharged within a reasonable time following
the request of QualChoice. The determination of a reasonable time shall be decided on a case-bycase basis between the Parties, with the understanding that QualChoice must receive a prompt
response in order to provide a timely response under the Plan's Claims procedures and the ERISA
Claims regulations.
(a)
QualChoice will administer and adjudicate Claims in accordance with Article III hereof in any
instance where the Plan Document and Summary Plan Description are clear and
unambiguous as to the validity of the Claims being submitted; however, QualChoice will
have no discretionary authority to interpret the Plan or adjudicate Claims. If adjudication of
a Claim requires interpretation of ambiguous Plan language, and the Administrator has not
previously indicated to QualChoice the proper interpretation of the language, then the
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Administrator will be responsible for resolving the ambiguity or any other dispute and
provide that resolution to QualChoice in writing.
(b)
The Administrator’s decision as to any Claim (whether or not it involves a Plan ambiguity or
other dispute) shall be final and binding.
(c)
Plan Sponsor will designate a person who may be contacted at any time, including nonbusiness hours, to verify eligibility for Urgent Care Claims.
(d)
If QualChoice has a responsibility to determine and respond to Pre-Service Claims decided
by other parties, Plan Sponsor will require pursuant to its contracts with such other parties
that such other parties must: (i) decide Pre-Service Claims not later than five business days
before the notice of adverse determination must be provided to the Claimant; and (ii)
cooperate with QualChoice by providing full and timely responses to any request for
information reasonably necessary to enable QualChoice to respond to such Claims.
4.3
Provide required COBRA notices to Participants and Beneficiaries upon initial eligibility to participate
in the Plan, maintain COBRA eligibility records, notify COBRA eligible of their rights and, when they
so elect, inform QualChoice either to continue coverage or to cease coverage.
4.4
Prospectively, timely and adequately fund the Claims Payment Account, no less frequently than
every seven (7) calendar days. The Claims Payment Account shall be established and maintained
exclusively by Plan Sponsor (or at Plan Sponsor’s direction, the Trustee where one has been
appointed). Plan Sponsor shall execute and deliver to QualChoice and the financial institution at
which the Claims Payment Account is established, any and all documents necessary to empower
QualChoice to act as signatory on such account and to have check drafting authority, including
permission to issue payment via electronic funds transfer.
4.5
Not require QualChoice, under any circumstances, to pay Claims, excess loss premiums, or any other
costs arising out of the subject matter of this Agreement, unless Plan Sponsor has so authorized and
has previously deposited sufficient funds to cover such payment(s).
4.6
Provide QualChoice with copies of any and all revisions or changes to the Plan not less than thirty
(30) days prior to the effective date of such revisions or changes.
4.7
Provide and timely distribute all notices and information required to be given to Participants and
Beneficiaries, maintain and operate the Plan in accordance with applicable law, maintain all
recordkeeping, and file all reports and forms relative thereto pursuant to any federal, state, or local
law, unless this Agreement specifically assigns such duties to QualChoice.
4.8
Designate and identify to QualChoice the Administrator, and where applicable the Trustee, of the
Plan, in writing; and within three (3) days following any resignation or other change in the identity of
the Administrator (or, where applicable, the Trustee), designate and identify the successor
Administrator (or Trustee).
4.9
Be solely responsible for paying any and all taxes, surcharges, licenses, and fees assessed or levied, if
any, by any local, state, or federal authority in connection with the Plan or in connection with or
arising out of Plan Sponsor’s obligations under the Affordable Care Act.
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4.10
Hold and maintain in confidence and treat as confidential all information obtained that is proprietary
to QualChoice or information or material not generally known by personnel other than the
employees of QualChoice. Such information includes, but is not limited to, provider contracting
arrangements, reasonable and customary Claims levels, and Claims administration guidelines.
4.11
Provide information necessary to submit to QualChoice for timely generation of Certificates of
Creditable Coverage to Participants and Beneficiaries, where a service is being provided by
QualChoice under Article III.
4.12
Warrant and represent that the only entities whose employees will be permitted to participate in the
Plan will either be(i) members of the same “controlled group of corporations” in which Plan Sponsor
is a constituent member, or (ii) members of the same trade or business under common control which
includes Plan Sponsor, or (iii) will be members of the same “affiliated service group” which includes
Plan Sponsor, all as those terms are used in Sections 414(b), (c), (m) and (o) of the Code and related
regulations, and that Plan Sponsor will promptly notify QualChoice of any changes in the make-up of
such group(s).
4.13
Pay within ten (10) days of receipt of an invoice QualChoice's fees for services rendered under this
Agreement in accordance with the Fee Schedule as modified from time to time as described in
Article VI. Late charges may be added if payments are not made on a timely basis.
4.14
Be directly and solely responsible for payment of any amount demanded or due under any demand
letter or other collection request or action of the Health Care Financing Administration or any other
government entity related to Medicare Secondary Payer laws, rules, or regulations. In the event
QualChoice pays or is required to pay any such obligations for any reason, Plan Sponsor shall
reimburse QualChoice promptly upon demand by QualChoice.
4.15
Maintain any fidelity bond or other insurance as may be required by state or federal law for the
protection of the Plan and its Participants and Beneficiaries.
4.16
Accept QualChoice’s standard claims processing edits, utilization management guidelines, and
prescription drug formulary unless Plan Sponsor requests changes to such standards. Plan Sponsor
may be subject to an additional fee for QualChoice to implement changes in any such standards to
be agreed upon by the Parties.
4.17
Maintain excess loss insurance with a Best’s rated A or better carrier, with terms and conditions and
retention levels that are appropriate for an organization of Plan Sponsor’s size and with Plan
Sponsor’s demographics. Plan Sponsor will promptly notify QualChoice of any termination,
expiration, lapse, or modification of this insurance.
4.18
In the event that Plan Sponsor’s excess loss policy provides specific claim advance reimbursement,
comply with all relevant requirements associated with such reimbursement provisions without
breaching any of its responsibilities under the Plan or under this Agreement, including but not
limited to:
(a)
Timely fund the payment of all properly payable Plan benefits, in those circumstances where
specific claim advance reimbursement are not be available during the last thirty (30) days of
the contract/period/period of insurance;
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4.19
(b)
Release funds sufficient to pay any and all underlying Claims simultaneously upon receipt of
the excess loss insurer’s reimbursement of such Claim;
(c)
Fund and unconditionally release claim checks for all prior claims up to the Plan Sponsor’s
specific deductible level; and
(d)
Process, or permit the processing of, all claims involving specific claim advance
reimbursement through QualChoice’s claim processing system.
Timely pay, satisfy and discharge any fees and assessments levied directly upon Plan Sponsor by,
under or as a result of the Affordable Care Act (including, without limitation, the PCORI assessment
and any penalty assessed under either Section 4980D or Section 4980H of the Code.
ARTICLE V. DURATION OF AGREEMENT AND TERMINATION
5.1
This Agreement shall commence on the Effective Date (as set forth in the opening paragraph of this
Agreement) and will continue for 12 months (1) year(s) (the “Initial Term”). This Agreement shall
automatically renew on each anniversary of the Effective Date for an additional one (1) year period
unless terminated as described below.
5.2
This Agreement may be terminated by either Plan Sponsor or QualChoice at the end of the then
current term by giving written notice to the other party at least one hundred twenty (120) days prior
to the anniversary date of the Agreement, in which case this Agreement will lapse on the anniversary
date.
5.3
In the event either party fails to perform any material obligation hereunder, the non-breaching party
may give written notice detailing such failure to the breaching party. Following such notice, the
breaching Party shall have three (3) business days to cure a monetary default, and thirty (30)
calendar days to cure a non-monetary default. In the event such default is not cured within such
three (3) business days or thirty (30) calendar days period, as the case may be, this Agreement may
be terminated by the non-breaching Party immediately upon written notice to the breaching Party,
or as of such other date as may be specified in such notice.
5.4
QualChoice may also, at its option and subject to Section 3.24 hereof, terminate this Agreement,
effective immediately, upon the occurrence of any one or more of the following events after
providing written notice to Plan Sponsor:
(a)
Plan Sponsor fails to timely fund the Claims Payment Account in amounts required for
payment of Claims;
(b)
Plan Sponsor becomes insolvent, a temporary or permanent receiver is appointed by any
court for all or substantially all of Plan Sponsor's assets, Plan Sponsor makes a general
assignment for the benefit of its creditors, or a voluntary or involuntary petition under any
bankruptcy law is filed with respect to Plan Sponsor;
(c)
Plan Sponsor fails to pay administration fees or other fees for QualChoice's services in
accordance with this Agreement, following written demand by QualChoice for same;
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5.5
5.6
(d)
Plan Sponsor engages in any unethical business practice or conducts itself in a manner that
in the reasonable judgment of QualChoice is in violation of any federal, state, or other
government statute, rule, or regulation;
(e)
Plan Sponsor, through its acts, practices, or operations, exposes QualChoice to any existing
or potential investigation or litigation;
(f)
Plan Sponsor ceases to operate or otherwise conduct its business as was being conducted as
of the Effective Date on a regular basis for any reason; or
(g)
Plan Sponsor’s excess loss insurance lapses without replacement, whether by failure to pay
premiums or otherwise.
Plan Sponsor may also, at its option, terminate this Agreement effective immediately upon the
occurrence of any one or more of the following events on written notice to QualChoice:
(a)
QualChoice is adjudicated as bankrupt, becomes insolvent, a temporary or permanent
receiver is appointed by any court for all or substantially all of QualChoice's assets,
QualChoice makes a general assignment for the benefit of its creditors, or a voluntary or
involuntary petition under any bankruptcy law is filed with respect to QualChoice and it is
not dismissed within forty-five (45) days of such filing;
(b)
QualChoice engages in any unethical business practice or conducts itself in a manner that in
the reasonable judgment of Plan Sponsor is in violation of any federal, state, or other
government statute, rule, or regulation; or
(c)
QualChoice, through its acts, practices or operations, exposes Plan Sponsor to any existing or
potential investigation or litigation.
At the written request of the Administrator, and subject to Plan Sponsor's continuing obligation to
maintain the Minimum Funding Balance and to timely fund the Claims Payment Account, QualChoice
agrees to provide at Plan Sponsor’s request run-out administrative services on terms to be mutually
agreed upon for an additional 90 days after the termination or lapse of this Agreement, so long as
such termination or lapse was not for any reason stated in Section 5.3 or Section 5.4. A separate fee
will be charged for run-out administrative services as mutually agreed upon by the Parties.
ARTICLE VI. MISCELLANEOUS
6.1
This Agreement, together with all addenda, exhibits, and appendices supersedes any and all prior
representations, conditions, warranties, understandings, proposals, or other agreements between
the Parties hereto, oral or written, in relation to the services and systems of QualChoice, that are
rendered or are to be rendered in connection with the administration of the Plan.
6.2
This Agreement, together with the aforesaid addenda, exhibits, amendments and appendices
constitutes the entire agreement of whatsoever kind or nature existing between or among the
Parties with respect to the services provided herein.
6.3
The Parties hereto, having read and understood this entire Agreement, acknowledge and agree that
there are no other representations, conditions, promises, agreements, understandings, or warranties
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that exist outside this Agreement that have been made by and between the Parties hereto, that
have induced any Party or has led to the execution of this Agreement by any Party. Any statements,
proposals, representations, conditions, warranties, understandings, or agreements that may have
been heretofore made by any of the Parties hereto, and that are not expressly contained or
incorporated by reference herein, are void and of no effect.
6.4
This Agreement may be executed in multiple counterparts, each and all of which shall be deemed an
original and all of which together shall constitute but one and the same instrument.
6.5
(a)
Except as provided in Article V (regarding termination without advance notice) and
Subparagraph (b) below, no changes in or additions to this Agreement shall be recognized
unless and until made in writing and signed by all Parties hereto. At any time during the
term of this Agreement, either Plan Sponsor or QualChoice may propose to amend or
change the provisions of this Agreement. These amendments or changes must be agreed
upon in advance in writing by both Plan Sponsor and QualChoice. If any such amendment
increases the anticipated Claims experience under the Plan or QualChoice's cost of
administering the Plan, Plan Sponsor agrees to pay any increase in Claims expenses, as well
as increases in administrative fees or other costs that QualChoice reasonably expects to
incur as a result of such modification.
(b)
Notwithstanding anything to the contrary in this Agreement, QualChoice shall have the right
to unilaterally modify its fees for services provided pursuant to this Agreement as follows:
(i) On an annual basis following the Initial Term which will become effective on the
anniversary of the Effective Date upon giving Plan Sponsor at least sixty (60) days prior
written notice; (ii) Plan Sponsor’s enrollment changes by more than ten percent (10%)
during the term of the Agreement; (iii) Plan Sponsor makes revisions or changes to the terms
of the Plan; (iv) Plan Sponsor requests additional services not otherwise provided for under
this Agreement; and (v) changes in federal or state laws or regulations that affect
QualChoice’s services under this Agreement; provided, that Plan Sponsor shall be
responsible to pay, and shall promptly and directly pay and discharge upon demand, any
increase in fees otherwise designated to be borne by the Plan or to be otherwise paid and
discharged from plan assets. Plan Sponsor will be deemed to have accepted any such fee
modifications unless Plan Sponsor gives QualChoice written notice of termination of this
Agreement within fifteen (15) business days of receiving notice from QualChoice of the
modifications, such termination to be effective as of the date the fee modification was
scheduled to be in effect.
6.6
In the event any provision of this Agreement is held to be invalid, illegal, or unenforceable for any
reason and in any respect, such invalidity, illegality, or unenforceability shall in no event affect,
prejudice, or disturb the validity of the remainder of this Agreement, which shall be in full force and
effect, enforceable in accordance with its terms.
6.7
In the event that any Party is unable to perform any of its obligations under this Agreement because
of natural disaster, labor unrest, civil disobedience, acts of war (declared or undeclared), or actions
or decrees of governmental bodies (any one of these events which is referred to as a “Force Majeure
Event”), the Party who has been so affected shall immediately notify the other Parties and shall do
everything possible to resume performance.
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Upon receipt of such notice, all obligations under this Agreement shall be immediately suspended. If
the period of non-performance exceeds ten (10) working days from the receipt of notice of the Force
Majeure Event, the Party whose ability to perform has not been so affected may, by giving written
notice, terminate this Agreement.
6.8
In no event shall QualChoice be liable, directly or indirectly, for any penalty or sanction assessed or
capable of assessment under Section 4980B, 4980D or 4980H of the Code.
6.9
All notices a Party is required to provide under the terms of this Agreement shall be provided in
writing and must be either personally delivered, sent by registered or certified mail, return receipt
requested, or sent by overnight express delivery to the other Parties at the addresses reflected in the
signature blocks below or at such other address as may later be communicated in writing by one
Party to the others.
6.10
Except as specifically set forth herein, this Agreement shall inure to the benefit of and be binding on
the Signatories hereto and their respective legal representatives and successors. No assignment of
either Signatory’s rights or obligations under this Agreement shall be permitted or valid without the
express written consent of the other party, except that QualChoice, in its sole discretion, may assign
its rights and responsibilities hereunder to a subsidiary or related corporation, provided that such
assignee assumes and performs QualChoice’s duties and obligations under this Agreement consistent
with its terms.
6.11
The Parties agree to the terms of the HIPAA Business Associate Agreement as entered into by the
parties and attached as Exhibit B.
6.12
This Agreement shall be interpreted and construed in accordance with the laws of the State of
Arkansas except to the extent superseded by federal law.
6.13
No failure or delay on the part of either party to enforce or insist upon any of the provisions of this
Agreement shall be construed as a waiver, alteration, or modification of the Agreement.
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IN WITNESS WHEREOF, the Parties have caused this Agreement to be executed on their behalf by their duly
authorized representatives.
City of Hot Springs
QCA Health Plan, Inc.
BY:
BY:
PRINTED NAME:
PRINTED NAME: Michael E. Stock
TITLE:
TITLE: CEO/President
ADDRESS:
ADDRESS: 12615 Chenal Parkway, Suite 300
Little Rock, AR 72211
ACKNOWLEDGEMENT AND CONSENT BY ADMINISTRATOR
The undersigned acknowledges, accepts, and agrees to or with the following:

that he/she either—
o serves as the Administrator of the captioned Plan (within the meaning of Section 3(16)(A) of
ERISA), or
o is a duly appointed member of a committee, which currently serves as the aforementioned
Administrator, or
o is an officer of the corporation, limited liability company or other entity which currently
serves as the aforementioned Administrator;

that he/she has read and understands the terms of this Agreement, including those provisions which
impose certain duties and responsibilities upon the Administrator either under the terms of this
Agreement or by operation of law; and

that the Administrator’s duties and responsibilities are separate and distinct from any rights, duties
and responsibilities Plan Sponsor has, or may have, hereunder.
________________________________________________
Name (print) _____________________________________
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Date: ___________________
EXHIBIT A
FEE SCHEDULE
Plan Sponsor and QualChoice hereby agree to the fees set forth below, to compensate QualChoice for its
services pursuant to this Agreement. Fees shall be invoiced monthly, and Plan Sponsor shall pay all such fees,
except (and then, only to the extent) Plan Sponsor designates that such fees are to be paid by the
Administrator from the Plan, in a writing signed by the Administrator indicating that such fees constitute
reasonable compensation, lawfully payable under ERISA . Note: Only those fees designated by an asterisk (*)
are permitted to be designated as Plan expenses.
Description
Cost
Administration
Medical Administration Fee
$15.60 per employee per month
Includes the following:
o Data Analytics/Reporting
o Account Management
o Customer Service Team
o Claims Administration
o ID Cards
o Online Services
o Eligibility feeds to certain third party vendors
o Drafting of Plan Document and Amendments
Stoploss Administration
Stoploss Commission
Subrogation Services
Overpayment/COB Recoveries
Not Applicable
30% of recovery
30% of recovery
Note: If Plan Sponsor terminates Overpayment/COB
recovery services after they have begun Plan Sponsor
may be subject to additional fees.
Medical Bill Review (Upon Request)
30% of savings
Note: Plan Sponsor agrees to pay the percentage of
savings regardless of whether the Plan Sponsor
chooses to enforce the findings of the review. If Plan
Sponsor requests Medical Bill review, Plan Sponsor
must pay a portion of the claim and the audit fee
before the review may begin. Any amounts collected
will be funded.
Additional Services – Fees agreed upon at the time of the request
o
o
The Plan Sponsor is responsible for the costs associated with printing Plan Documents. A fee will be
agreed upon prior to printing
Check customization, special statistical reports other than those enumerated in this contract, new
taxes assessed against the Plan, or other services mutually agreed upon, will be billed separately at
the actual costs of such services.
93
Network Management
Network access to QualChoice contracted Health
Care Providers
Network access to Plan Participants residing outside
of the QualChoice service area and accessing the
QualChoice National Network (QCNN).
Network access for Plan Participants traveling
outside of the QualChoice service area and accessing
the QualChoice National Network (QCNN).
Out of Network Negotiations
Care Management
Care Management Fee
30% of savings
30% of savings
Includes the following:
o
o
o
o
o
o
Utilization Management
Large Case Management
Medical Necessity Review
Coding Review
Transplant Management
eDoc America
 Ask A Doc
 24-Hour Nurse Line
Note: External clinical reviews are not included in
this fee, but will be equal to QualChoice’s costs.
QCARE – Disease Management
Broker Compensation
Broker Fee
Pharmacy Benefit Services
QualChoice Pharmacy Interface
Not Applicable
Included in Administration Fee
QualChoice has made arrangements for an unrelated, third-party entity to provide Pharmacy Benefit
Management Services (hereinafter the “PBM”) to employers and group health plans that are clients of
QualChoice. These services are optional; there is no requirement that Plan Sponsor obtain pharmacy benefit
management services from the PBM.
A. QualChoice will implement and coordinate an exchange of information regarding new Enrollees and
changes in Enrollee eligibility status under Plan Sponsor’s medical benefit plan necessary for the PBM to
provide its services to Plan Sponsor. The information provided by QualChoice to the PBM will be based
on the information provided to it by the Plan Sponsor or the applicable Enrollee.
B. Plan Sponsor shall fund all claims incurred by an Enrollee through the later of that Enrollee’s termination
date or within two (2) days after receipt by the PBM of an updated eligibility file which reflects the
Enrollee’s termination.
94
C. Plan Sponsor, through QualChoice, may be eligible to participate in the PBM’s rebate program and may
receive rebate payments. These rebates are dependent upon multiple factors, including the changes to
the PBM’s contracts with pharmaceutical manufacturers or rebate intermediaries, changes in law, Plan
benefits structure, or changes to Plan Sponsor’s Rx Formulary. QualChoice will manage Plan Sponsor’s Rx
Formulary and Plan Sponsor acknowledges that any deviation from the recommended formulary may
impact the rebates Plan Sponsor may receive. QualChoice makes no guaranties or warranties with
respect to whether a rebate will be available or the amount of any rebate.
D. QualChoice shall pay to Plan Sponsor all payments QualChoice receives from the PBM that are
attributable to Pharmacy Benefit Services utilized by Enrollees. Plan Sponsor acknowledges that it shall
not have a right to interest on, or the time value of, any rebate or other payments received by
QualChoice during the collection period for monies payable to Plan Sponsor under this paragraph.
E. Plan Sponsor shall pay QualChoice the prevailing fee as set forth above for coordination of the Pharmacy
Benefit Services as described herein. QualChoice’s fee is subject to being modified by QualChoice in the
same manner as new premium rates may be modified pursuant to this Agreement. Modified fees for
Pharmacy Benefit Services coordination services will be reflected in any subsequent writing signed by
Plan Sponsor.
F. QualChoice will invoice Plan Sponsor for all charges attributable to Pharmacy Benefit Services utilized by
Enrollees. Plan Sponsor will pay this invoice in accordance with Section 4.13. Late charges may be added
if payments are not made on a timely basis.
COBRA/HIPAA Administration
Prime Pay Interface Fee
QualChoice has made arrangements for an unrelated, third-party entity to provide COBRA and HIPAA
administrative services (hereinafter the “COBRA/HIPAA Administrator”) to employers and group health plans
that are clients of QualChoice. These services are optional; there is no requirement that Plan Sponsor obtain
COBRA and HIPAA administrative services from the COBRA/HIPAA Administrator.
A. Plan Sponsor has conducted its own due diligence and has elected to obtain COBRA and HIPAA
administrative services from the COBRA/HIPAA Administrator. Plan Sponsor will enter into a direct
services contract with the COBRA/HIPAA Administrator that will set out the rights, duties and obligations
of Plan Sponsor and the COBRA/HIPAA Administrator.
B. QualChoice will at Plan Sponsor’s request implement and coordinate an exchange of information
regarding new Enrollees and changes in Enrollee eligibility status under Plan Sponsor’s medical benefit
plan necessary for the COBRA/HIPAA Administrator to provide its services to Plan Sponsor. The
information provided by QualChoice to the COBRA/HIPAA Administrator will be based on the information
provided to it by Plan Sponsor or the applicable Enrollee.
C. QualChoice makes no representations, warranties, or recommendations regarding the COBRA/HIPAA
Administrator. QualChoice shall have no responsibility or liability to Plan Sponsor or any other person or
entity for the COBRA/HIPAA Administrator’s actions or failure to act or for Plan Sponsor’s decision to
enter into a contract with the COBRA/HIPAA Administrator. Plan Sponsor hereby waives any and all
claims against QualChoice for costs, expenses, judgments, damages, liabilities, legal fees, or other costs
95
of litigation or defense of any claim, including reasonable attorneys’ fees and costs (“Costs or Liabilities”)
to the extent such Costs or Liabilities are caused by or arise out of the COBRA/HIPAA Administrator’s
actions or failure to act or for Plan Sponsor’s decision to enter into a contract with the COBRA/HIPAA
Administrator.
D. The fee charged by the COBRA/HIPAA Administrator to Plan Sponsor for its COBRA and HIPAA
administrative fees will be as reflected in the direct services contract between Plan Sponsor and the
COBRA/HIPAA Administrator. Plan Sponsor has the option in its sole discretion, to remit its COBRA and
HIPAA administrative fees to the COBRA/HIPAA Administrator through QualChoice. Upon its receipt of
Plan Sponsor’s COBRA and HIPAA administrative fee, QualChoice will promptly forward the payment to
the COBRA/HIPAA Administrator on behalf of Plan Sponsor. QualChoice shall have no responsibility or
liability to advance funds to the COBRA/HIPAA Administrator on behalf of Plan Sponsor; payment of the
COBRA and HIPAA administrative fee is solely the responsibility and liability of Plan Sponsor.
E. Plan Sponsor shall pay QualChoice the prevailing fee as set forth above for coordination of COBRA and
HIPAA services as described herein between Plan Sponsor and the COBRA/HIPAA Administrator.
QualChoice’s fee is subject to being modified by QualChoice in the same manner as new premium rates
may be modified pursuant to this Agreement. Modified QualChoice fees for coordination of COBRA and
HIPAA services will be as reflected in any subsequent writing signed by Plan Sponsor.
96
EXHIBIT B
HIPAA BUSINESS ASSOCIATE ADDENDUM
This HIPAA Business Associate Addendum (the “Addendum”) is entered into this 1st day of January 2017 by
and between the Administrator of the City of Hot Springs Employee Benefit Plan (“Covered Entity”) and
QualChoice Health Plan Services, Inc. (referred to herein as “Business Associate”) (jointly “the Parties”). For
purposes of this Addendum, “QualChoice” shall be deemed to include any parent, subsidiary, affiliate of, or
entity under common control with QCA Health Plan, Inc. The parties hereto shall be referred to individually
as a “Party” and collectively as the “Parties”.
1. PREAMBLE
The Parties wish to modify the Administrative Services Agreement (“Agreement”) to incorporate the terms of
this Addendum to comply with the requirements of: (i) the implementing regulations at 45 C.F.R Parts 160,
162, and 164 for the Administrative Simplification provisions of Title II, Subtitle F of the Health Insurance
Portability and Accountability Act of 1996 (“HIPAA”) (i.e., the HIPAA Privacy Rule, the HIPAA Security
Standards, and the HIPAA Standards for Electronic Transactions (collectively referred to in this Addendum as
“the HIPAA Regulations”)), and (ii) the requirements of the Health Information Technology for Economic and
Clinical Health Act, as incorporated in the American Recovery and Reinvestment Act of 2009 (the “HITECH
Act”) that are applicable to business associates, along with any guidance and/or regulations issued by the
U.S. Department of Health and Human Services (“DHHS”) as of September 2009. Covered Entity and Business
Associate agree to incorporate into this Addendum any regulations issued by DHHS with respect to the
HITECH Act that relate to the obligations of business associates and that are required to be (or should be)
reflected in a business associate agreement. Business Associate recognizes and agrees that it is obligated by
law to meet the applicable provisions of the HITECH Act.
Arkansas has adopted similar statutes designed to protect individual privacy and access to information,
including, but not limited to, or Arkansas law, including, but not limited to ARK. CODE ANN. § 14-14-110(b)
(Repl. 1998), ARK. CODE ANN. § 20-9-304(a) (Repl. 2005), ARK. CODE ANN. § 20-13-806 (Repl. 2005), ARK.
CODE ANN. § 20-15-203 (Repl. 2005) (only statistical information for approved research by the Arkansas
Board of Health may be further disclosed), ARK. CODE ANN. § 20-15-906(a)-(c) (Repl. 2005) (requiring
mandatory reporting of individuals to the Arkansas Department of Health), ARK. CODE ANN. § 20-16-504
(Repl. 2005), ARK. CODE ANN. § 20-27-1706 (Repl. 2005), ARK. CODE ANN. § 20-46-104 (Repl. 2001), ARK.
CODE ANN. § 25-19-105(b)(2) (Supp. 2011), ARK. CODE ANN. § 23-76-129(a) (Repl. 2004), and/or Ark. Code
Ann. §25-42-102 (c) (Supp. 2011) (“The Office of Health Information Technology [“OHIT”] and the State
Health Alliance for Records Exchange shall respect and safeguard each person’s privacy interests in his or her
health and medical information.”); see also ARK. OHIT Privacy Policies.
2. DEFINITIONS
(a) “Electronic PHI” shall mean protected health information that is transmitted or maintained in any
electronic media, as this term is defined in 45 C.F.R. § 160.103.
(b) “Limited Data Set” shall mean protected health information that excludes the following direct
identifiers of the individual or of relatives, employers, or household members of the individual:
(i)
(ii)
Names;
Postal address information, other than town or city, State, and zip code;
97
(iii)
(iv)
(v)
(vi)
(vii)
(viii)
(ix)
(x)
(xi)
(xii)
(xiii)
(xiv)
(xv)
(xvi)
Telephone numbers;
Fax numbers;
Electronic mail addresses;
Social security numbers;
Medical record numbers;
Health plan beneficiary numbers;
Account numbers;
Certificate/license numbers;
Vehicle identifiers and serial numbers, including license plate numbers
Device identifiers and serial numbers;
Web Universal Resource Locators (URLs);
Internet Protocol (IP) address numbers;
Biometric identifiers, including finger and voice prints; and
Full face photographic images and any comparable images.
(c) “Protected Health Information” or “PHI” shall mean information created or received by a health care
provider, health plan, employer, or health care clearinghouse, that: (i) Relates to the past, present, or future
physical or mental health or condition of an individual, provision of health care to the individual, or the past,
present, or future payment for provision of health care to the individual; (ii) Identifies the individual, or with
respect to which there is a reasonable basis to believe the information can be used to identify the individual;
and (iii) Is transmitted or maintained in an electronic medium, or in any other form or medium. The use of
the term “Protected Health Information” or “PHI” in this Addendum shall mean both Electronic PHI and nonelectronic PHI, unless another meaning is clearly specified.
(d) “Security Incident” shall mean the attempted or successful unauthorized access, use, disclosure,
modification, or destruction of information or interference with system operations in an information system.
(e) All other terms used in this Addendum shall have the meanings set forth in the applicable definitions
under the HIPAA Regulations and/or the security and privacy provisions of the HITECH Act that are applicable
to business associates along with any regulations issued by the DHHS.
3. GENERAL TERMS
(a) In the event of an inconsistency between the provisions of this Addendum and a mandatory term of
the HIPAA Regulations (as these terms may be expressly amended from time to time by the DHHS or as a
result of interpretations by DHHS, a court, or another regulatory agency with authority over the Parties), the
interpretation of DHHS, such court or regulatory agency shall prevail. In the event of a conflict among the
interpretations of these entities, the conflict shall be resolved in accordance with rules of precedence.
(b) Where provisions of this Addendum are different from those mandated by the HIPAA Regulations or
the HITECH Act, but are nonetheless permitted by the Regulations or the Act, the provisions of this
Addendum shall control.
(c) Except as expressly provided in the HIPAA Regulations, the HITECH Act, or this Addendum, this
Addendum does not create any rights in third parties.
98
4. SPECIFIC REQUIREMENTS
(a) Privacy of Protected Health Information
(i) Permitted Uses and Disclosures of PHI. Business Associate agrees to create, receive, use, or
disclose PHI only in a manner that is consistent with this Addendum or the HIPAA Privacy Rule
and only in connection with providing the services to Covered Entity identified in the Agreement.
Accordingly, in providing services to or for the Covered Entity, Business Associate, for example,
will be permitted to use and disclose PHI for “treatment, payment, and health care operations”
in accordance with the HIPAA Privacy Rule.
(1) Business Associate shall report to Covered Entity any use or disclosure of PHI that is not
provided for in this Addendum.
(2) Business Associate shall maintain safeguards as necessary to ensure that PHI is not used or
disclosed except as provided for by this Addendum.
(ii) Business Associate Obligations. As permitted by the HIPAA Privacy Rule, Business Associate also
may use or disclose PHI received by the Business Associate in its capacity as a Business Associate
to the Covered Entity for Business Associate’s own operations if:
(1) The use relates to: (i) the proper management and administration of the Business Associate
or to carry out legal responsibilities of the Business Associate, or (ii) data aggregation
services relating to the health care operations of the Covered Entity; or
(2) The disclosure of information received in such capacity will be made in connection with a
function, responsibility, or services to be performed by the Business Associate, and such
disclosure is required by law or the Business Associate obtains reasonable assurances from
the person to whom the information is disclosed that it will be held confidential and the
person agrees to notify the Business Associate of any breaches of confidentiality.
(iii) Minimum Necessary Standard and Creation of Limited Data Set. Business Associate’s use,
disclosure, or request of PHI shall utilize a Limited Data Set if practicable. Otherwise, in
performing the functions and activities as specified in the Agreement and this Addendum,
Business Associate agrees to use, disclose, or request only the minimum necessary PHI to
accomplish the intended purpose of the use, disclosure, or request.
(iv) Access. In accordance with 45 C.F.R. § 164.524 of the HIPAA Privacy Rule and, where applicable,
in accordance with the HITECH Act, Business Associate will make available to those individuals
who are subjects of PHI, their PHI in Designated Record Sets by providing the PHI to Covered
Entity (who then will share the PHI with the individual), by forwarding the PHI directly to the
individual, or by making the PHI available to such individual at a reasonable time and at a
reasonable location. Business Associate shall make such information available in an electronic
format where directed by the Covered Entity.
(v) Disclosure Accounting. Business Associate shall make available the information necessary to
provide an accounting of disclosures of PHI as provided for in 45 C.F.R. § 164.528 of the HIPAA
Privacy Rule, and where so required by the HITECH Act and/or any accompanying regulations,
Business Associate shall make such information available directly to the individual. Business
99
Associate further shall provide any additional information to the extent required by the HITECH
Act and any accompanying regulations. Business Associate is not required to record disclosure
information or otherwise account for disclosures of PHI that this Addendum or the Agreement in
writing permits or requires: (i) for the purpose of payment activities or health care operations
(except where such recording or accounting is required by the HITECH Act, and as of the
effective dates for this provision of the HITECH Act); (ii) to the individual who is the subject of
the PHI disclosed, or to that individual’s personal representative; (iii) to persons involved in that
individual’s health care or payment for health care; (iv) for notification for disaster relief
purposes; (v) for national security or intelligence purposes; (vi) to law enforcement officials or
correctional institutions regarding inmates; (vii) pursuant to an authorization; (viii) for
disclosures of certain PHI made as part of a limited data set; and (ix) for certain incidental
disclosures that may occur where reasonable safeguards have been implemented.
(vi) Amendment. Business Associate shall make available PHI for amendment and incorporate any
amendment to PHI in accordance with 45 C.F.R. § 164.526 of the HIPAA Privacy Rule.
(vii) Right to Request Restrictions on the Disclosure of PHI and Confidential Communications. If an
individual submits a Request for Restriction or Request for Confidential Communications to the
Business Associate, Business Associate and Covered Entity agree that Business Associate, on
behalf of Covered Entity, will evaluate and respond to these requests according to Business
Associate’s own procedures for such requests.
(viii)Return or Destruction of PHI. Upon the termination or expiration of the Agreement or this
Addendum, Business Associate agrees to return the PHI to Covered Entity, destroy the PHI (and
retain no copies), or further protect the PHI if Business Associate determines that return or
destruction is not feasible.
(ix) Availability of Books and Records. Business Associate shall make available to DHHS or its agents
the Business Associate’s internal practices, books, and records relating to the use and disclosure
of PHI in connection with this Addendum.
(x) Termination for Breach.
(1) Business Associate agrees that Covered Entity shall have the right to terminate this
Addendum or seek other remedies if Business Associate violates a material term of this
Addendum.
(2) Covered Entity agrees that Business Associate shall have the right to terminate this
Addendum or seek other remedies if Covered Entity violates a material term of this
Addendum.
(b) Information and Security Standards
(i) Business Associate will develop, document, implement, maintain, and use appropriate
administrative, technical, and physical safeguards to preserve the integrity, confidentiality, and
availability of, and to prevent non-permitted use or disclosure of, PHI created or received for or
from the Covered Entity.
(ii) Business Associate agrees that with respect to PHI, these safeguards, at a minimum, shall meet
100
the requirements of the HIPAA Security Standards applicable to Business Associate.
(iii) More specifically, to comply with the HIPAA Security Standards for PHI, Business Associate
agrees that it shall:
(1) Implement administrative, physical, and technical safeguards consistent with (and as
required by) the HIPAA Security Standards that reasonably protect the confidentiality,
integrity, and availability of PHI that Business Associate creates, receives, maintains, or
transmits on behalf of Covered Entity. Business Associate shall develop and implement
policies and procedures that meet the Security Standards documentation requirements as
required by the HITECH Act;
(2) As also provided for in Section 4(d) below, ensure that any agent, including a subcontractor,
to whom it provides such PHI agrees to implement reasonable and appropriate safeguards
to protect it;
(3) Report to Covered Entity, Security Incidents of which Business Associate becomes aware
that result in the unauthorized access, use, disclosure, modification, or destruction of the
Covered Entity’s PHI, (hereinafter referred to as “Successful Security Incidents”). Business
Associate shall report Successful Security Incidents to Covered Entity as specified in Section
4(e);
(4) For any other Security Incidents that do not result in unauthorized access, use, disclosure,
modification, or destruction of PHI (including, for purposes of example and not for purposes
of limitation, pings on Business Associate’s firewall, port scans, attempts to log onto a
system or enter a database with an invalid password or username, denial-of-service attacks
that do not result in the system being taken off-line, or malware such as worms or viruses)
(hereinafter “Unsuccessful Security Incidents”), Business Associate shall aggregate the data
and, upon the Covered Entity’s written request, report to the Covered Entity in accordance
with the reporting requirements identified in Section 4(e);
(5) Take all commercially reasonable steps to mitigate, to the extent practicable, any harmful
effect that is known to Business Associate resulting from a Security Incident;
(6) Permit termination of this Addendum if the Covered Entity determines that Business
Associate has violated a material term of this Addendum with respect to Business
Associate’s security obligations and Business Associate is unable to cure the violation; and
(7) Upon Covered Entity’s request, Business Associate will provide Covered Entity with access to
and copies of documentation regarding Business Associate’s safeguards for PHI.
(c) Compliance with HIPAA Transaction Standards
(i) Application of HIPAA Transaction Standards. Business Associate will conduct Standard
Transactions consistent with 45 C.F.R. Part 162 for or on behalf of the Covered Entity to the
extent such Standard Transactions are required in the course of Business Associate’s performing
services under the Agreement and this Addendum for the Covered Entity. As provided for in
Section 4(d) below, Business Associate will require any agent or subcontractor involved with the
conduct of such Standard Transactions to comply with each applicable requirement of 45 C.F.R.
101
Part 162. Further, Business Associate will not enter into, or permit its agents or subcontractors
to enter into, any trading partner agreement in connection with the conduct of Standard
Transactions for or on behalf of the Covered Entity that:
(1) Changes the definition, data condition, or use of a data element or segment in a Standard
Transaction;
(2) Adds any data element or segment to the maximum defined data set;
(3) Uses any code or data element that is marked “not used” in the Standard Transaction’s
implementation specification or is not in the Standard Transaction’s implementation
specification; or
(4) Changes the meaning or intent of the Standard Transaction’s implementation specification.
(ii) Communications Between the Business Associate and the Covered Entity. All communications
between the Business Associate and the Covered Entity that are required to meet the HIPAA
Standards for Electronic Transactions shall do so. For any other communications between the
Business Associate and the Covered Entity, the Covered Entity shall use such forms, tape
formats, or electronic formats as Business Associate may approve. The Covered Entity will
include all information reasonably required by Business Associate to affect such data exchanges
or notifications.
(d) Agents and Subcontractors. Business Associate shall include in all contracts with its agents or
subcontractors, if such contracts involve the disclosure of PHI to the agents or subcontractors, the
same restrictions and conditions on the use, disclosure, and security of such PHI that are set forth in
this Addendum.
(e) Breach of Privacy or Security Obligations.
(i) Notice and Reporting to Covered Entity. Business Associate will notify and report to Covered
Entity (in the manner and within the timeframes described below) any use or disclosure of PHI
not permitted by this Addendum, by applicable law, or permitted in writing by Covered Entity.
(ii) Notice to Covered Entity. Business Associate will notify Covered Entity following discovery and
without unreasonable delay but in no event later than twenty (20) calendar days following
discovery, any “Breach” of “Unsecured Protected Health Information” as these terms are
defined by the HITECH Act and any implementing regulations. Business Associate shall cooperate
with Covered Entity in investigating the Breach and in meeting the Covered Entity’s obligations
under the HITECH Act and any other security breach notification laws. Business Associate shall
follow its notification to the Covered Entity with a report that meets the requirements outlined
immediately below.
(iii) Reporting to Covered Entity.
For Successful Security Incidents and any other use or disclosure of PHI that is not permitted by
this Addendum, the Agreement, by applicable law, or without the prior written approval of the
Covered Entity, Business Associate – without unreasonable delay and in no event later than
thirty (30) days after Business Associate learns of such non-permitted use or disclosure – shall
102
provide Covered Entity a report that will:
a. Identify (if known) each individual whose Unsecured Protected Health Information has
been, or is reasonably believed by Business Associate to have been accessed, acquired,
or disclosed during such Breach;
b. Identify the nature of the non-permitted access, use, or disclosure including the date of
the incident and the date of discovery;
c. Identify the PHI accessed, used, or disclosed (e.g., name; social security number; date of
birth);
d. Identify who made the non-permitted access, use, or received the non-permitted
disclosure;
e. Identify what corrective action Business Associate took or will take to prevent further
non-permitted accesses, uses, or disclosures;
f. Identify what Business Associate did or will do to mitigate any deleterious effect of the
non-permitted access, use, or disclosure; and
g. Provide such other information, including a written report, as the Covered Entity may
reasonably request.
(2) For Unsuccessful Security Incidents, Business Associate shall provide Covered Entity, upon its written
request, a report that:
a. Identifies the categories of Unsuccessful Security Incidents as described in Section 4(b)(iii)(4);
b. Indicates whether Business Associate believes its current defensive security measures are adequate
to address all Unsuccessful Security Incidents, given the scope and nature of such attempts; and
c. If the security measures are not adequate, the measures Business Associate will implement to
address the security inadequacies.
(iv)
Termination for Breach.
(1) Covered Entity and Business Associate each will have the right to terminate this
Addendum if the other party has engaged in a pattern of activity or practice that
constitutes a material breach or violation of Business Associate’s or the Covered Entity’s
respective obligations regarding PHI under this Addendum and, on notice of such material
breach or violation from the Covered Entity or Business Associate, fails to take reasonable
steps to cure the material breach or end the violation.
(2) If Business Associate or the Covered Entity fail to cure the material breach or end the
violation after the other party’s notice, the Covered Entity or Business Associate (as
applicable) may terminate this Addendum by providing Business Associate or the Covered
Entity written notice of termination, stating the uncured material breach or violation that
provides the basis for the termination and specifying the effective date of the termination.
Such termination shall be effective 60 days from this termination notice.
(v) Continuing Privacy and Security Obligations. Business Associate’s and the Covered Entity’s
obligation to protect the privacy and security of the PHI it created, received, maintained, or
transmitted in connection with services to be provided under the Agreement and this
Addendum will be continuous and survive termination, cancellation, expiration, or other
conclusion of this Addendum or the Agreement. Business Associate’s other obligations and
rights, and the Covered Entity’s obligations and rights upon termination, cancellation,
103
expiration, or other conclusion of this Addendum, are those set forth in this Addendum and/or
the Agreement.
(vi) Business Associate Indemnification. Business Associate, its respective directors, officers,
subcontractors, agents or employees (together the “Business Associate Indemnitors”) agree to
indemnify, defend and hold harmless Covered Entity and its directors, officers, subcontractors,
agents, or employees against any and all claims, demands, losses, costs, expenses, obligations,
liabilities, actions, suits, damages, and deficiencies (including, without limitation, all costs and
reasonable attorney’s fees) that rise out of or are proximately caused by Business Associate
Indemnitors’ breach of this Addendum, negligence, or intentionally wrongful acts or omissions
in failing to perform its obligations as a Business Associate under the HIPAA Regulations
and/or HITECH Act.
(vii) Covered Entity Indemnification.
Covered Entity, its respective directors, officers,
subcontractors, agents or employees (together the “Covered Entity Indemnitors”) agree to
indemnify, defend and hold harmless Business Associate and its directors, officers,
subcontractors, agents, or employees against any and all claims, demands, losses, costs,
expenses, obligations, liabilities, actions, suits, damages, and deficiencies (including, without
limitation, all costs and reasonable attorney’s fees) that rise out of or are proximately caused
by Covered Entity Indemnitors’ breach of this Addendum, negligence, or intentionally wrongful
acts or omissions in failing to perform its obligations as a Covered Entity under the HIPAA
Regulations and/or HITECH Act.
(viii)Validity of Agreement. Except as expressly set forth herein, all remaining provisions of the
Agreement shall remain in full force and effect. The provisions of this Addendum shall prevail
over any provision in the Agreement that may conflict with or appear inconsistent with any
provision in this Addendum. Any ambiguity in this Addendum shall be resolved in favor of a
meaning that permits Covered Entity to comply with the HIPAA Regulations and HITECH Act.
(ix) Assistance in Litigation or Administrative Proceedings. Each party shall make itself, and any
subcontractors, employees, or agents assisting a party in the performance of its obligations
under this Addendum, available to the other party, at no cost to the other party, to testify as
witnesses, or otherwise, in the event of litigation or administrative proceedings being
commenced against the other party, its directors, officers, or employees based on a claimed
violation of HIPAA, the HIPAA Regulations, the HITECH Act, or other laws relating to security
and privacy, except where the party or its subcontractor, employee or agent is a named
adverse party.
Continued on next Page
104
IN WITNESS WHEREOF, the Parties hereto have caused this Addendum to be executed by their respective
officers duly authorized to do so.
ADMINISTRATOR, for and on behalf of the
City of Hot Springs Employee Benefit Plan
QualChoice Health Plan Services, Inc.
BY:
BY:
PRINTED NAME:
PRINTED NAME: Michael E. Stock
TITLE:
TITLE: CEO/President
ADDRESS: ________________________________
ADDRESS: 12615 Chenal Parkway, Suite 300
_________________________________________
Little Rock, Arkansas 72211
105
CITY OF HOT SPRINGS
AGENDA ITEM #14
DISTRICT:
1
Date Submitted:
October 11, 2016
October 18, 2016
2
3
O-16-53
4
5
6
 Resolution
X Ordinance
 Other
 City Wide X Other
SUBJECT:
Regulations for Municipal
Water and Wastewater
Connections and Extensions
RECOMMENDATION:
Consider adoption of proposed ordinance establishing new regulations for
municipal water and wastewater connections and extensions.
DISCUSSION:
The proposed ordinance establishes criteria for connections to and/or
extensions of the Hot Springs Municipal Water and Wastewater systems,
the procedure for the application and approval of same, and any appeal
from the denial of same.
FISCAL IMPACT:
additional expense and off-setting revenue to the utility funds.
ALTERNATIVES:
approve, reject, amend, or table
Prepared by:
Approved by:
Brian W. Albright, City Attorney
106
53
107
108
109
110
111
112
CITY OF HOT SPRINGS
AGENDA ITEM #15
DISTRICT:
1
2
3
Date Submitted:
April 7, 2016
April 19, 2016
R-16-148
4
5
6
 Resolution
 Ordinance
 Other
 City Wide
 Other
SUBJECT: Appeal Staff Action
re: Wilson’s Home
Improvements Water
Connection
RECOMMENDATION: Staff recommends the Board consider a request for a water connection at 2531
East Grand Avenue outside the city limits.
DISCUSSION: Applicant Paul Wilson on February 16, 2016, requested an Appeal of the Staff Decision to
deny a water connection for his property at 2531 East Grand Avenue outside the city limits. A copy of
the appeal letter is attached (1). A copy of the application for connection is attached (2). Staff denied
the request because it does not meet the current connection policy requirements and is not an owner
occupied residential use. A copy of the City Policy is attached (3).
FISCAL IMPACT:
There is no new cost to the City above the current CAO and water supply costs.
Applicant will pay normal fees and utility charges.
ALTERNATIVES: Deny the appeal.
Prepared by:
Approved by:
Gary Carnahan, City Engineer
113
A RESOLUTION APPROVING AN APPEAL FOR A WATER CONNECTION REQUEST AT 2531 EAST GRAND
AVENUE PURSUANT TO ORDINANCE NO. 5931.
WHEREAS, on October 6, 2015, Paul and Sandra Wilson completed an application for a water
connection at 2531 East Grand Avenue, which is located outside the city limits; and that
WHEREAS, on October 14, 2015, staff denied the water connection request for failure to meet
the requirements for connections pursuant to Ordinance No. 5931 (Hot Springs Municipal Utilities
Extension and Connection Regulations); and
WHEREAS, on February 12, 2016, Mr. and Ms. Wilson requested an appeal of the staff decision
to deny the water connection based on the request not meeting the current connection policy
requirements and is not owner occupied residential use.
Arkansas:
That the requirements of Ordinance No. 5931, (Hot Springs Municipal Utilities Extension and
Connection Regulations), pertaining to a water connection request at 2351 East Grand Avenue are
waived and the City of Hot Springs Board of Directors hereby approves said water connection.
PASSED:_____________________________
APPROVED:
ATTEST:_____________________________
114
RUTH CARNEY, MAYOR
M
N
M
M
M
M
SYMBOL LEGEND
M
M
J. A. WILSON
PROPERTY
115
WATER METER
CITY LIMITS
PROJECT LOCATION
ENTERGY
SERVICE CENTER
CITY LIMITS
CUTTER MORNING STAR SCHOOL
116

Current City Board of Directors Packet

Transcription

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