City supports amending bid statute
The Hot Springs Board of Directors’ priorities for the 2019-20 term include supporting legislation raising the threshold for competitive bidding on city contracts to $50,000.
The board endorsed the legislation through its adoption earlier this month of a resolution listing its priorities for the legislative session that convened last month. House Bill 1041 isn’t referenced specifically in the resolution, but the provision amending the financial guarantee contractors bidding on public construction projects have to provide was listed as one of the board’s legislative priorities.
The bill raises the threshold from $35,000 to $50,000, meaning contractors could bid on
public works projects costing $50,000 or less without providing a cashier’s check guaranteeing their performance. HB 1041 also raises from $20,000 to $50,000 the contract amount requiring competitive bidding.
The state House sent the bill to the Senate last month on a 55-14 vote. Three of the six legislators representing Garland County in the lower chamber supported the bill, with reps. Marcus Richmond, R-District 21, Bruce Cozart, R-District 24, and Laurie Rushing, R-District 26, all voting affirmatively.
Rep. Les Warren, R-District 25, voted present, and Rep. Mickey Gates, R-District 22, didn’t vote. Rep. Richard Womack, R-District 18, a contractor from Arkadelphia, was the only member from the county delegation to vote against HB 1041.
The city told the board raising the financial guarantee threshold allows more local businesses to compete for contracts, explaining that many are priced out by the $35,000 trigger.
“Ideally, if that bid bond threshold could be raised to $100,000 or even $60,000, it would make a big difference; giving small contractors an opportunity to compete, win bids, grow their business and hire locally,” according to information presented to the board.
Assistant City Manager/City Clerk Lance Spicer said raising the amount allows more local businesses to bid on projects funded by the city’s annual Community Development Block Grant allocation.
“Sidewalk improvements, which are usually in the $40,000 to $60,000 range, currently require a bid bond,” Spicer said. “We would like to see more local and small business contractors able to bid on these public projects and remove any impediments that might prevent them from doing so.”
The bill is one of more than 30 the Arkansas Municipal League, the lobbying organization for city governments, expressed support for at its winter conference last month. The city’s 2019 legislative priorities incorporated four of the Municipal League-endorsed bills, including Senate Bill 54, which addresses maximum age restrictions for firefighters, and a repeal of the law prohibiting local governments from providing broadband internet services.
2019-20 goals
The board will consider a resolution tonight establishing its goals for the current term, ratifying priorities established during a Feb. 9 retreat at Garvan Woodland Gardens.
Developing an infrastructure fund supported by casino gaming receipts are among the objectives. City Manager Bill Burrough told the board last week that the city expects Oaklawn Racing and Gaming’s casino gaming license to generate $1.5 million more than the roughly $2 million the city collects annually through the games of skill tax it levies on Oaklawn.
The state said last year that it expects the Arkansas Racing Commission to license Oaklawn by July 1, creating a new tax-and-distribution structure the city projects will produce extra revenue. The city currently receives 1.5 percent of net wagering revenue, the Arkansas Department of Finance and Administration said. Under the new formula, it would get 19.5 percent of a 13-percent tax on the first $150 million of net gaming receipts. The tax increases to 20 percent on net receipts of more than $150 million.
Redeveloping the Majestic Hotel property continues to be a priority. The city expects to have a request for proposals by June. Burrough told the board earlier this month that citizen input will be solicited during workshops scheduled for April 1-2.
Other goals include finding recurring revenue for the police and fire departments in addition to the half-percent sales tax currently levied for public safety. Downtown parking, planning for a new fire station, water and wastewater system improvements and implementing homeless and low-income programs are also on the board’s to-do list.
The lawsuit the American Civil Liberties Union of Arkansas filed against the city’s panhandling ordinance is still pending before the U.S. District Court for the Western District of Arkansas. The ACLU brought it on behalf of a man who claims the ordinance is an unconstitutional restriction on his right to beg.
The city agreed to not enforce the ordinance while the litigation is pending. In return, the ACLU has said it will not petition to enjoin the city from enforcing the regulation.
A federal judge permanently enjoined the city of Rogers from enforcing a similar ordinance last year.