Board OKs ordinances after extensive debate

With Vice-Mayor Carol Smiley presiding, the Board of Directors adopted a series of five ordinances and a single purchase contract on Tuesday. Smiley filled in for Mayor John Mark Turner, who announced he would not be present during the board’s previous meeting on April 18.

The first two ordinances that were approved have drawn debate during their time in front of the city governing body. First was an ordinance to overhaul the city’s business privilege licenses.

Two weeks ago, at the board’s most recent meeting, the body passed an amendment to the ordinance that removed clauses re-establishing business license fees and license renewal fees.

“I’m not in favor of this ordinance as it reads,” said Director Bob Coleman, who voted against the removal of the fees last month.

Coleman offered a motion to restore the removed clauses to the ordinance. While his motion was awaiting a second, discussion continued.

Director Brad Burns said he was in favor of fewer taxes for businesses.

“It’s about saying ‘Hey, come do business in Siloam,’” Burns said.

Director Steve Beers said he would vote against the fees because he felt they didn’t meet the purpose of the ordinance. Additionally, if the city found that the high rates of delinquency among business owners renewing their licenses late continued, the board could re-introduce the fees at a later date.

Coleman’s motion was left without a second, causing it to fail. The directors voted on the ordinance as presented, placing it on its third reading by a vote of 5-2 and adopting the ordinance by a vote of 6-1. Smiley and Coleman voted against the third reading, and Coleman alone

voted against adoption of the ordinance.

The next agenda item was one of a pair of ordinances aimed at Siloam Springs’ alcohol code. The code change established licenses for small breweries in the city and a further definition of “nano-brewery,” which was the same as a small brewery, with an added limitation on production of 5,000 barrels of alcohol per year. Small breweries are allowed to produce up to 45,000 barrels of alcohol per year.

Director Lucas Roebuck asked if the ordinance, which calls for taxes on beverages that exceed 5 percent alcohol by weight, introduced new taxes. City Administrator Phillip Patterson said the taxes were included in the ordinance because they are already levied against existing businesses that allow on-premise consumption of alcohol, and it wouldn’t be fair to these existing businesses if new breweries did not have to pay the same taxes.

Roebuck also asked if the city was certain it had the authority to issue a version of a state permit that restricted businesses beyond the state law. Roebuck said it seemed that a business could override its cityissued nano-brewery license with its stateissued small brewery license. The state has no nano-brewery license, so any nano-brewery would be licensed as a small brewery with the state.

City Attorney Jay Williams said the city would be in the clear because it is not preventing businesses from carrying out their trade.

“I am confident that it would survive a challenge, should one arise,” William said.

The ordinance was placed on its third reading unanimously, and adopted with a vote of 6-1, Roebuck dissenting. The corresponding ordinance changing use units to allow small breweries and nano-breweries in specified zones was also adopted shortly after. The board also:

• Approved the purchase of a new bucket truck for the electric department. The new truck replaces a 16-yearold truck that will now be used to trim trees, according to Electric Department Director Phil Stokes.

• Approved annexation of 18.36 acres on the 2200 block of North Carl Street.

• Approved vacation of a utility easement on the 1000 block of Cheri Whitlock Drive.