Twenty-three minutes.

That is how long the Fort Smith Board of Directors spent discussing a stop sign. And that was why Director Keith Lau spoke up during the Board's discussion of the first item on the agenda - converting the intersection of Chad Colley Boulevard and Massard Road into a four-way stop.

The proposal was placed on the agenda for consideration Sept. 3 by Director Philip Merry and Vice Mayor Kevin Settle following an accident that left 31-year-old Crystal Buswell dead. Reports cited in a memo from the office of street and traffic control indicated that Buswell may have "either slowed or stopped for the stop sign at Chad Colley Boulevard, but ultimately pulled out in front of the dump truck on Massard Road that hit her on the driver's side of the car."

The accident is the only one to be reported since the road opened on Sept. 22, 2011, to traffic in all four directions.

But Lau said the proposal to convert the intersection to a four-way stop and other proposals like it should not be taken up by the Board, but instead left to department heads such as Greg Riley, Fort Smith's director of street and traffic control, who in the same memo to the Board advised that traffic counts at the intersection do not warrant a four-way stop according to the standards established by the Manual on Uniform Traffic Control Devices.

In making his case against change, Riley said the intersection could actually become more dangerous.

"We would expect a four way stop to generate complaints about the traffic slow down in this area, and cause rear end accidents."

Even so, the Board voted 4-3 in favor of going against the recommendation for the intersection and making it a four-way stop.

Lau said the Board should look beyond issues such as the four-way stop and focus on bigger issue stuff, not "micro-managing."

"This is really a big picture issue that I want to talk about and it's really about micro-management and it's about second guessing our department heads. It's about second guessing engineers who obviously are trained and educated in the field of traffic management and I can tell you, I'm not a traffic engineer. And feel really uncomfortable even voting on this because I have no skill set that addresses traffic. And yet we have a report that says that it's not warranted. There are things that need to be done to that intersection but not to the degree of a four-way stop."

The recommendations Lau alluded to include adding signs that read "Cross Traffic Does Not Stop" and appropriately spaced "Stop Ahead" warning signs on Chad Colley Boulevard, "Cross Road" warning signs on Massard Road, larger "Stop" signs and speed limit changes, reducing the speed at the intersection to 35 miles per hour, Riley wrote in his memo.

By not following the advice of Riley, and Police Chief Kevin Lindsey, who also spoke against converting the intersection to a four-way stop, Lau said the Board was stuck "in the weeds" when they could be dealing with big picture items such as economic development and dealing with an increase in crime.

"We've got a crime problem, we've got a sewer problem, we've got a funding problem, we have a pension funding problem, and we're trying to decide where we're going to put stop signs? That's not where I want to be nor where I think my skill set is, nor do I think the citizens of this town elected us to be."

Merry said the decision to deal with placement of additional stop signs at the intersection was a matter of conscience.

"I think that this is a big issue. I think death is a big issue. As a risk manager I have a little bit of experience in this area. Negligence is knowing about something and choosing not to do anything about it."

Settle, who was joined by Directors Merry, Pam Weber and George Catsavis in voting for the change, said putting a stop sign in an intersection against the advice of a department head was what he was elected to do.

"I think this is part of what the people elected us to do, is to sometimes to make exceptions to what (recommendations) some department heads make. Department heads can say what they want to say, but I think this is a good point that we need to make an exception and public safety is more important than any comment like that in my mind," Settle said, addressing Lau's "in the weeds" statement.

City Administrator Ray Gosack said he feels that the Board is within its rights to go against a professional opinion on any given issue, such as traffic management.

"The department heads are encouraged to make professional recommendations and that's the staff responsibility, to make professional recommendations to the Board of Directors. But we also understand that the Board of Directors is under no obligation to rubber stamp the staff's work. And so the Board is certainly entitled to review the staff's work and to make decisions that it feels are in the community's best interest."

Lau was emphatic following the meeting that the Board had bigger fish to fry than the one discussed for 23 minutes tonight.

"I don't want to be voting on where to put stop signs," he said. "Now this sets a precedent, something I didn't talk about, sets a precedent. Every intersection now that a citizen comes and complains (about) is subject to Board review, right?"

He said that while Buswell's death was a tragedy, it does not change the fact that no prior accidents had ever occurred at the intersection nor the fact that the city's own director of street and traffic control was against making the change.

"So is that good city governance? I don't think so. And that's my opinion. Now I'll probably get chastised because, you know, I'm not empathetic enough or sympathetic enough to the tragedy that happened out there. But this isn't about this intersection. This isn't about that at all. You know what I mean."

Joining Lau in voting against the ordinance creating the four-way stop were Directors Mike Lorenz and André Good.

Because the the vote was only 4-3 and not a super majority of 5-2 or better, the ordinance will come up for a second and possible third readings at upcoming meetings and require passing votes at those readings before becoming law.

The head of the U.S. Consumer Financial Protection Bureau, Richard Cordray, met with about 15 Arkansas bankers on Monday night in Arkansas to discuss concerns related to the Dodd-Frank financial law.

According to several bankers in attendance, the meeting was well-received but apprehension remains.

“I appreciate Mr. Cordray taking the time to come to Arkansas and visit with our citizens and bankers,” said Speaker of the House Davy Carter, R-Cabot, who is also a regional president with Centennial Bank, a subsidiary of Conway-based Home Bancshares.

The meeting was co-hosted by Carter and Arkansas Attorney General Dustin McDaniel (D), who solicited Cordray to venture to the state to hear bankers’ concerns on the rules and regulations impacting community banks.

The Consumer Financial Protection Bureau is an outgrowth of the Dodd-Frank law, which was passed at the urging of President Obama in response to the near collapse of several large U.S.-based banking operations in 2007-2008.

Key provisions of the Act, which are expected to be more fully articulated later this year and next, also include:
• Creation of a consumer interest “independent watchdog” housed at the Federal Reserve;
• Establishment of capital requirements designed to end the “too big to fail” possibility among the big banks;
• Creation of an “advance warning system” to identify systemic problems before they become big problems;
• Elimination of loopholes that allow the “exotic instruments” that helped fuel the financial meltdown in 2008; and,
• Development of new accountability and transparency rules for credit rating agencies.

The law was designed to increase examination and enforcement of banks and other financial service companies with more than $10 billion in assets. However, regulations will also increase for banks under the $10 billion level.

One of the most controversial portions of the law involves the creation and administration of the Consumer Financial Protection Bureau, which has broad-ranging powers to intervene in the financial industry on behalf of consumers and to more closely regulate banks. Smaller banks, under the $10 billion threshold, have complained since the law’s enactment that the bureau has the potential to overregulate the community bank industry, which had little to do with the financial crisis that led to the Great Recession.

“Our bankers and business leaders want a level playing field when it comes to federal oversight,” McDaniel said. “I have said repeatedly that community banks in Arkansas should not have to pay for the sins of conglomerates like Goldman Sachs, or else such overregulation may keep our banks from helping to grow the state’s economy.”

The banking group discussed a variety of issues that Arkansas banks are dealing with in order to comply with Dodd-Frank rules. Many regulatory issues have yet to be determined.

For instance, State Sen. Bruce Maloch, D-Magnolia, who is the COO of Farmer’s Bank & Trust of Magnolia, said his $780 million bank just exceeds an annual 500-home mortgage loan provision that causes him to play under a different set of rules related to maximum interest rates. Other community banks – which have slightly less mortgage activity – are exempt from the new regulations creating what Maloch described as an “unlevel playing field.”

“His immediate response to my concern was that 500 may be too low,” Maloch said. “He [Cordray] said they would give some consideration to the issue.”

Larry Wilson, CEO of Jacksonville-based First Arkansas Bank & Trust, has been an ardent critic of many aspects of Dodd-Frank. Wilson said he was pleased about Cordray’s participation in Arkansas and hoped for some positive changes to occur in soon-to-be-written regulations. However, Wilson said that there may be a limit as to how much Cordray can actually do within the parameters of the law.

“Director Cordray demonstrated that he was a very good listener,” said Wilson. “He mentioned that the details of Dodd-Frank somewhat limit their ability to make wholesale changes. They may be able to tweak some issues. I think in 2014 they will see that the ramifications of Dodd-Frank are going to slow the economy and they’re going to need to make some changes. ... I think the law is going to limit credit availability for the consumers that they’re charged in protecting.”

John Womack, chairman and CEO of Arvest Bank’s central Arkansas operations, said he was appreciative that Cordray conducted the listening tour. Bentonville-based Arvest is the only state chartered bank that exceeds $10 billion in assets and therefore has additional compliance requirements with Dodd-Frank regulations, including a rigorous bank exam to be conducted by the Consumer Financial Protection Bureau.

“I thought it was a very cordial meeting,” Womack said. “I appreciate him at least reaching out to talk to the banks. There’s still a lot of things that are unknown, even to them I think.”

Carter, who will oversee the merged operations of Centennial Bank’s $280 million acquisition of Jonesboro-based Liberty Bank, echoed the appreciation for the face-to-face visit.

“During the meeting each attendee was given an opportunity to share his or her concerns regarding Dodd-Frank and other measures with the director,” he said.

“Although these regulations still remain a material concern for banks in Arkansas, it was encouraging to hear the director say that his department is open to some rule changes that make sense for Arkansas banks, and that he was committed to keeping an open line of communication during this process.”

At McDaniel’s request, Cordray also visited with a roundtable of consumer advocates who shared concerns about online payday lenders, mortgage-servicing abuses and illegal debt collection tactics.

“I was pleased to join Attorney General McDaniel to hear from community groups, banks, and elected officials about the work they are doing to help Arkansas consumers,” Cordray said in a statement released by McDaniel. “State and local leaders are on the front lines of consumer protection, and we at the CFPB value the insight we gain from these meetings.”

Improvements in the number of employed and gains in building permit values in the Fort Smith region helped boost the economy in the second quarter of 2013 compared to the first quarter of the year and the second quarter of 2012.

A second quarter 2013 grade of C was improved over the C- in the first quarter and the C- in the second quarter of 2012.

The quarterly Compass Report is managed by The City Wire and presented by Fort Smith-based Benefit Bank. The report is the only independent analysis of economic conditions in the metro area.

A change to a better and more consistent numbers was welcomed by Joe Edwards, president of Benefit Bank.

“After reviewing the Compass Report information, I found the data very encouraging. Hopefully our market is beginning to develop a positive trend line,” Edwards said.

Economist Jeff Collins, who conducts the data collection and analysis for The Compass Report, said employment in the region is finally showing signs of stability.

“Nonfarm employment was up a solid 2.7 percent year-on-year (3,200 new jobs), with total nonfarm employment of 120,200 jobs in June. This was the strongest year-on-year increase since November 2007 and further evidence that the local labor market has stabilized after a prolonged period of decline,” Collins noted in his analysis.

Collins also noted that the slight increase in the unemployment rate during the quarter is not necessarily a bad thing.

“The reason for the increase was a more substantial increase in the labor force than could be absorbed by the market. This is, frankly, a very positive sign for the regional economy. This implies that discouraged workers likely returned to the labor force,” Collins explained.

Data collected for The Compass Report also suggest that Arkansas’ economic trends are improving compared to national economic trends, Collins said. Momentum during the second quarter is a good sign for Arkansas’ economy in the second half of 2013.

“The Central Arkansas economy should continue to reflect national growth — slow and steady. For the Northwest Arkansas economy, there is absolutely no reason to believe that current growth rates are unsustainable over the next 18-24 months. And finally, despite continued erosion of manufacturing, the Fort Smith regional economy has been amazingly resilient. Overall, the local economies should perform well during the last half of the year,” Collins said.

The 2013 second quarter economy in the central Arkansas area received a grade of C- meaning that economic conditions declined slightly compared to the second quarter of 2012 but were unchanged the first quarter of 2013.

The second quarter 2013 grade of B in Northwest Arkansas was unchanged compared to the first quarter and an improvement over the B- during the second quarter of 2012.

FORT SMITH REGION
OVERALL GRADES — Fort Smith regional economy (per quarter)
2Q 2013: C
1Q 2013: C-
4Q 2012: C
3Q 2012: C-
2Q 2012: C-
1Q 2012: C-
4Q 2011: C-
3Q 2011: C
2Q 2011: C
1Q 2011: C-
4Q 2010: C-/D+
3Q 2010: C-
2Q 2010: C-
1Q 2010: C-
4Q 2009: D
3Q 2009: D
2Q 2009: D-
1Q 2009: D+

DATA AND REPORT DOCUMENTS
Link here for the raw data used to prepare The Compass Report for the Fort Smith area, Northwest Arkansas and central Arkansas.

Link here for more narrative about regional and national economic conditions.

SECTOR DATA
CURRENT INDICATORS
Non-farm employment — B+
Non-farm employment in the area has stabilized, with employment in the metro area at 120,200 in June compared to 117,000 in June 2012.

Goods-producing employment — C+
The decrease in manufacturing jobs as a percentage of the overall workforce helps diversify the economy. The percentage of manufacturing jobs in the overall workforce was 21.3% in June 2013, down from the 22.6% in June 2012.

This measure tells us about the risk to the local economy from being heavily weighted toward sectors that have been under economic pressure.

One of the fundamental principles of reducing risk is diversification. The Fort Smith economy has been based on manufacturing for decades, but this heavy reliance on one sector for employment and wealth creation has left the region vulnerable. For several years the manufacturing sector in the U.S. has shed employment as technology and international trade have redefined the production process.

As the economy of Fort Smith becomes more diversified the risk of a downturn in any one sector causing a catastrophic loss of employment diminishes.

Metro area Unemployment rate — D
The area unemployment rate, an important gauge in the health of the metro labor market, posted an increase to end the first quarter. Unemployment in June was estimated at 7.7%, compared to 7.6% in June 2012.

Sales and Use tax collections — D
Sales tax collections in the region and the city of Fort Smith began to show weakness in the fourth quarter of 2009. That weakness began to improve in the fourth quarter of 2010, was on a stable pace, but began to cool in the second half of 2012 and have continued to show weakness in 2013. The tax collections, which are good indicators of regional consumer confidence, were down in Crawford, Franklin, Logan and Sebastian counties to $3.332 million during May 2013 — compared to $3.355 million in May 2012. During the March 2013 to May 2013 period, overall collections were down 0.75% compared to the same period in the previous year.

LEADING INDICATORS
Building Permit (housing) valuation — C
The total value of permits issued in the second quarter (measured in a three-month rolling average) were up 6.3% compared to the second quarter of 2012.

As new households are created they induce growth in retail, education services, health care services and other types of businesses that provide goods and services to households. Also, new construction provides employment and tax revenues.

Hospitality employment — B-
Hospitality employment, which began trending downward in the second quarter of 2012, leveled off during the fourth quarter of 2012 and improved during the first quarter of 2013. June 2013 saw 9,600 jobs in the regional hospitality sector, up 400 jobs from June 2012.

Manufacturing employment — D
Manufacturing employment in the Fort Smith region showed signs of stability in 2012, but began to dip again during the first quarter of 2013. Sector employment in June 2013 was 18,500, down an estimated 800 jobs from June 2012 employment.

For better or worse, Fort Smith remains a manufacturing town. That implies the near-term economy rises and falls on the performance of the sector. Growth in employment or even stable employment in the sector bodes well for the near-term outlook for the local economy.

Construction employment — D+
This sector, which includes mining/natural resources employment, saw employment decline during the quarter.

The rationale for including construction employment is similar to that for building permits. The employment measure is influenced by changes in both the residential and commercial real estate markets.

Obviously, new space implies new residents and new businesses.

August proved to be another stellar month for home sales in the Fort Smith area, with the total value of home sold during the month increasing 32.73% over the same period last year.

Sebastian County saw the most improvement, with 140 homes sold during the month compared to only 114 sold in Aug. 2012. The total value of this year's home sales was $21.328 million, up 38.79% compared to $15.367 million during the same month last year.

Crawford County's numbers were also up, with 55 homes sold during the month compared to 44 during the same period last year. The value of last month's sales was $6.457 million, an increase of 16.01% from last August's $5.566 million month.

Owner/Broker Kevin Clifton of Kevin Clifton Real Estate in Van Buren said there were a lot of factors at play resulting in high numbers of sales in both counties.

"With the construction on (Interstate 540), it has affected home sales," he said. "Many of those (buyers who work in Fort Smith) have chosen to buy homes closer to work. It has been a problem with homes in Alma and northern Crawford County."

And while the numbers have not been as impressive in Crawford County, Clifton said recent sales in the county have been driven by two other factors - low interest rates and the possible elimination of rural development loans.

Regarding the latter, he said should Congress fail to act and not pass a farm bill by Sept. 30, home buyers in Van Buren and other towns who depend on the rural development loans will likely see a slump in home sales.

Clifton said rural development loans have made it possible for home buyers to enter the housing market with no money down and sometimes financing the closing costs into the final price of the home. Couple that with sweeteners sometimes offered by sellers eager to close a deal, such as covering closing costs if the buyer does not have those funds or chooses not to finance them, and a buyer in the market for a new home can find themselves able to buy without a down payment or closing costs, often saving them thousands.

"The interest rate is staying close to the same for all loans, so if a rate is the same for one that requires some down but another requires nothing down, most (buyers) will go for the zero down loan."

Should the rural development loan disappear, Clifton said he is still encouraged by certain signs he is seeing in his business, such as the fact that many of his buyers during the last month have been from out of state, moving to the Fort Smith area for work.

"The last three or four transactions have been out-of-state buyers," he said.

The fact that Clifton has been seeing an increase in out of state buyers should come as no surprise due to the expansion of the Sykes call center operation and the opening Monday (Sept. 16) of Health Management Associates' new regional service center, which have collectively added at least 850 jobs to the Fort Smith economy.

But while things continue to look up for regional home sales, year-to-date numbers still remain mixed as Sebastian County is up 18.81% for the first eight months of the year and Crawford County is down 16.5% for the same period.

Clifton said he and his colleagues would continue to push home sales ever higher in the Fort Smith area, including lobbying Congress to pass an extension of the Farm Bill.

"The State Association of Realtors, we're doing our part to let them know that the rural development loan is big for Crawford County buyers. And big for the sellers, as well."

Home Sales Data (January-August)
• Crawford County
Unit Sales
2013: 322
2012: 353

Total Sales Volume
2013: $35.085 million
2012: $42.018 million

Median Sales Price
2013: $106,000
2012: $110,000

• Sebastian County
Unit Sales
2013: 835
2012: 731

Total Sales Volume
2013: $117.562 million
2012: $98.947 million

Median Sales Price
2013: $116,250
2012: $115,000

It was just late last month that two barges went on a directionless journey down the Arkansas River in Little Rock, striking the Interstate 30 bridge and a pedestrian bridge near the Clinton Presidential Library after breaking free from a tugboat.

While five bridges were initially shut down, it was determined that damage was not severe enough to close the bridges beyond the night of Aug. 24, when the accident occurred.

But the runaway barges brought back memories of May 26, 2002, when a barge struck the Interstate 40 bridge near Webbers Falls, Okla., upstream from Fort Smith on the Arkansas River. The accident resulted in 14 deaths after a 580-foot span of the interstate plunged into the river below.

With that in mind, has anything been done to provide better collision protection along the river?

According to District 4 Engineer Chad Adams of the Arkansas State Highway and Transportation Department, many of the bridges along the Arkansas River already have "pre-protection" cells designed to prevent barge-bridge collisions from occurring.

From Ozark to Fort Smith, there are five bridges that span the Arkansas River and Adams said three of the bridges have the "pre-protection" cells. They include the Arkansas River Bridge in Ozark and the Midland and Garrison Avenue Bridges in Fort Smith.

Gene Higginbotham, executive director of the Arkansas Waterways Commission, said the cells are round and located in the river.

"It's a round cylinder filled with all sorts of material," he said. "Their sole purpose is to protect that bridge structure. It hits that and the current will take it down stream. But it protects that bridge structure."

Another bridge in the area that has a protection system is the Arkansas Highway 59 bridge over Lock and Dam 13 near Barling, Adams said.

"That comes up out of the water, on the upstream side," he said. "There is a large pointed piece of concrete that extends out into the river in advance (of the bridge), so if something were to flow down and hit it, that would take the impact."

As for when the barriers were installed, Adams said that was not so clear, adding that the best estimate of when some protection systems were installed was the late 1960s or early 1970s.

The only bridge not to have a protection system of some sort from Ozark to the Oklahoma border is the Interstate 540 bridge. As for why, Adams said it had to do with design.

"I-540 does not have the pier protection system. There's certain requirements, items that go into consideration as to whether it's needed," he said. "Some of the newer bridges are designed to withstand the impact."

Besides the 2002 collapse in Webbers Falls and the August accident in Little Rock, it is rare to have a runaway barge along the river, Adams said, adding that within the last nine years, he could only recall an incident from April 25, 2011, when flooding rains caused a barge to break loose near Fort Smith, resulting in a shutdown of the Garrison, Midland, I-540 and Barling bridges until a runaway barge could be secured.

Regarding concerns about the stability of bridges should an accident occur, whether it is known to the AHTD, Adams said all bridges are inspected every 24 months unless it is a bridge that has been singled out for increased scrutiny. In the case of last month's accident in Little Rock, initial inspections occurred following the accident prior to the numerous bridges along the river re-opening.

But Adams said residents should not anticipate a potential accident resulting in loss of life or catastrophic damage like what was seen 11 years ago, saying that the accident last month shows that Arkansas' bridges are ready for any sort of accident that may come.

In order to keep that safety record, Higgenbotham said his organization would continue to work with the state, as well as engineers and designers working on future bridge projects to ensure safety.

"We want our bridges to be safe and (and to have) good navigation channels so everyone travels safely over and under the bridges."

County officials on Wednesday (Sept. 18) were touting more than $1 million in improvements made at Ben Geren Regional Park over the last decade.

Much of the improvements come in the way of new lighting at the softball fields and tennis courts. Lighting improvements at the county's eight softball fields along ran over $700,000, with an additional $200,000 spent on a remodel of fencing and restroom facilities at the field and another $146,000 spent to remodel the county's tennis facility.

But one park area where the county is cutting back, which totals more than 1,300 acres and is among the largest regional parks in the nation, is the county's golf course facility.

According to Sebastian County Judge David Hudson, the golf course is expected to bring in about $700,000 in revenue this year. That number, he said, is expected to remain the same next year.

But even with that revenue stream, the golf course operates at a loss.

"Five years ago, we were closer to operating at our cash flow," Hudson said. "The golf course is a direct reflection of the economic times and the golf market's been flat, so we actually came closer to running it with our revenues several years ago and we haven't the last few. We're going to be at least $150,000 short of our expenses over our revenues this year and a lot of that remains to be seen – how we operate the rest of the year, what we spend and what kind of play we have."

Adding to the expenses is the fact that the golf course has full-time employees drawing county benefits, said Parks Administrator Shannon Toland.

"In the pro shop, we have three full time and two seasonal," he said. "Maintenance, we have six full-time, three seasonal."

In order to stem losses, Hudson has taken steps such as not hiring the recommended number of staff to man the golf course.

"If you look at standards and so on, it will show that we need more people. But typically the the county does not staff it at what national standards are," he said. "We're trying to staff more – I hate to even bring the jail up – but we're putting more staff there. We're trying to operate this as responsibly financially as we can. And that's including reductions we've made over the last five years."

Part of that reduction is not replacing the golf course's golf cart fleet this year, as has been done in year's past. Hudson said in a typical year, a forth of the golf carts at the course – or about 25 – are replaced. But this year, the county opted to wait a year before taking such action. According to Justice of the Peace Danny Aldridge, whose district includes Ben Geren Regional Park, the cost savings realized from that action saved the county about $100,000.

County officials considered a lease program, but Aldridge said it was not any more feasible than the long-established purchasing program.

"They looked at it and it didn't have any noticeable savings," he said. "The only difference was the vehicles would always be under warranty, where right now there is about a year that the golf carts are not under any such warrantee. So it could save on maintenance costs."

The county has also delayed the purchase of new equipment, such as a tractor and brush hogger, that Toland said are needed for upkeep. Not purchasing the new equipment has saved the county about $70,000, he said.

Hudson also started a volunteer program where members of the community give of their time to help maintain the grounds and act as marshals, collecting golf balls and doing other odd jobs to keep staff expenses down.

Even though the golf course is projected to post losses this year and next, Hudson said he is confident the dilemma facing the golf course will not also face the new Ben Geren Aquatics Center, which has been projected to post a loss as well.

The judge said losses projected at the aquatics center, which is expected to open Memorial Day 2015, were based on conservative estimates. The feasibility study was also based on low admittance fees and high labor costs.

"The feasibility study was done in conservative fashion and that's why it projected a loss. If you're planning on something, you're going to be very conservative in regard to what your revenues are going to be. And hopefully we are too conservative and reality is going to show it's closer to breaking even or making money," he said. "We won't know, but we're planning in our budgetary plan (a loss of) at least $30,000 a year and we also have a partner to share the loss with and that's the city of Fort Smith."

Hudson said when it comes to trying to break even or possibly turn a profit at the golf course, it is a frustration. Possibilities of attempting to lease the facility to a golf course operator have proved fruitless, he said, with the market still not rebounding enough for a golf course facility to be enticing to a private business interest.

He added adjusting green fees and other possibilities to right the golf course's revenues have been among his toughest challenges since becoming judge.

"Quite frankly, that's been an ongoing dilemma I've had since 1999," he said. "And how to deal with the costs, green fees, cart rentals, the annual memberships and the other aspects of running a golf course. It's been as challenging of a thing to deal with as I've had and that includes planning and building a courts building, working on expansion of the jail and all of the issues with it."

It may seem odd to hear of a shortage in manufacturing workers following a decade which saw a nearly 25% decline in the number of manufacturing jobs available in Arkansas, but that is exactly what is facing existing manufacturers in the state today.

To combat the shortage, businesses and Arkansas Manufacturing Solutions, a state agency that works with organizations to bring resources to Arkansas manufacturers, are partnering to host the state’s second Manufacturing Day event on Oct. 4.

Marketing Manager Andy Capel of AMS said highlighting the needs of Arkansas manufacturers was important if the state is to turn around the shortage of available skilled manufacturing workers.

“The goal is to plant the seed now for (students) as (they) are making decisions to find out what are some (career) options for them,” he said. “These guys are machinists, but they’re really just computer guys. They’re not really running drill presses like they used to be. It’s giving the youth the information they need to know.”

With the jobs now found in factories requiring a different skill set from the jobs held by this generation’s mothers and fathers, companies have had to take different approaches to filling positions.

Human Resources Partner Zoë Lambert of Cameron Valves in Little Rock said her company has had to take the extreme step of going out of state to fill some positions. But she is hoping that can change following the company’s involvement with Arkansas Manufacturing Day on Oct. 4. On that day, the plant will host not only a tour of the facility but also a demonstration for central Arkansas high school students and the public.

“We wanted young people to realize there is opportunity in manufacturing from engineering to the shop floor,” she said. “We want them to realize its impact.”

Cameron Valves has also taken the step of partnering with vocational programs in the Little Rock area to prepare potential workers for a career in manufacturing.

“You need certain skill sets for certain positions,” she said. “Machinists have to pass an exam to qualify to be an employee here. And assemblers need to pass a logic exam. You need the skill set, but we’re also looking for strong employees that are well-rounded.”

Capel said while young people may have misconceptions about what it is that manufacturing employees do, they also do not fully understand how good a manufacturing job with a basic vocational education can be financially.

“A machinist for Cameron Valve is looking at a $45,000 to $65,000 a year job. Many people have an old perception of a manufacturing job as hot, dirty and you don’t get paid well to do it. But as far as learning specific skills they need, that’s what we’re in need of.”

Lambert said in addition to “very competitive” wages, employees can also expect an excellent benefits package and tuition reimbursement should they choose to further their education while employed with the company.

In addition to Cameron Valves, other manufacturers taking part in Arkansas Manufacturing Day include Molex of Maumelle, Nice-Pak of Jonesboro and Rockline Industries of Springdale.

“Arkansas Manufacturing Day is our push to bring appreciation to the manufacturers of Arkansas for what they produce and a general awareness of it,” Capel said. “A lot of them just do their thing and keep going and are not even known to be out there.”

Capel said the Oct. 4 event, which coincides with the national Manufacturing Day event, is just the start of addressing the need for more manufacturing workers as more and more companies make the decision to bring manufacturing positions back to the United States. For decades, outsourcing to countries like China has resulted in manufacturing jobs in Arkansas totaling just 154,300 in June 2013 versus a sector high of 247,300 in Feb. 1995, according to the U.S. Bureau of Labor Statistics.

“The federal government is pushing hard for manufacturing and re-shoring with Walmart. And Walmart just had their big manufacturing summit in Florida to try to re-shore,” he said. “I think there is a big effort across the board and looking at Arkansas, manufacturing is one of the major employers in Arkansas and one of the backbones of income – agriculture and manufacturing being the big ones there. Manufacturing is a way to grow companies and have a more diverse workforce.”

Lambert said her company is trying to prepare for what is already a need and will only increase as more work is on-shored to the state.

“Building this partnership with the vo-tech schools will curb that (shortage). But I’m thinking when they finish their vo-tech school, they are going to be targeting that exact skill set we’re looking for. That will work really well focusing on exactly what (our needed) skill set will be,” she said. “There are also some great partnerships to recruit some great people here and we expect to start seeing an impact within about a year.”

Although Arkansas has a ban on gay marriage, many Arkansas employers must now manage certain retirement plans, health insurance plans and other workplace benefits to include same-sex couples legally married in a state or country that recognizes such marriages.

The U.S. Department of Labor announced Wednesday (Sept. 18) that a June 26 decision by the U.S. Supreme Court requires technical changes to the department's Employee Benefits Security Administration. The EBSA change apply to “plans, plan sponsors, fiduciaries, participants and beneficiaries on the decision's impact on the Employee Retirement Income Security Act of 1974,” noted the DOL statement.

One of Arkansas’ largest employers has already opened up benefits to same-sex couples. Wal-Mart recently announced an expansion of coverage eligibility for any spouse or domestic partner of a full-time employee which includes, medical, dental, a new vision option, critical illness and accident plans. Domestic partners will be eligible beginning in 2014, during the enrollment period starting Oct. 12.

Wal-Mart joins a long list of Fortune 500 companies including Costco, Ford, Home Depot and Best Buy to offer health care benefits to same-sex partners. The civil rights group, Human Rights Campaign, estimates 62% of Fortune 500 companies have already done so. HRC said inclusion efforts have increased from 34% in 2002.

RECENT LEGAL HISTORY
The U.S. Supreme Court decision in the Windsor v. U.S. case found the Defense of Marriage Act (DOMA) to be unconstitutional. The case involved two women from New York, Edith Windsor and Thea Spyer, who met in 1963 and were legally married in Canada in 2007. Spyer died in 2009. Windsor was legally blocked from claiming an estate tax exemption for surviving spouses because federal law (DOMA) did not recognize same-sex marriage as a qualifying exemption.

In a 5-4 vote, the Court overturned DOMA.

“DOMA's principal effect is to identify and make unequal a subset of state-sanctioned marriages,” noted a portion of the majority opinion. “It contrives to deprive some couples married under the laws of their State, but not others, of both rights and responsibilities, creating two contradictory marriage regimes within the same State.”

In his dissent, Justice Antonin Scalia said the issue should not have been before the Court.

“This case is about power in several respects. It is about the power of our people to govern themselves, and the power of this Court to pronounce the law. Today's opinion aggrandizes the latter, with the predictable consequence of diminishing the former.”

‘HISTORIC STEP’
According to the DOL, the changes will be applied to approximately 701,000 private sector retirement plans, 2.3 million health plans and other plans that provide benefits to more than 141 million Americans. Collectively, these plans hold more than $7.3 trillion in assets.

"This decision represents a historic step toward equality for all American families, and I have directed the department's agency heads to ensure that they are implementing the decision in a way that provides maximum protection for workers and their families," Secretary of Labor Thomas Perez said in the statement. "The department plans to issue additional guidance in the coming months as we continue to consult with the Department of Justice and other federal agencies to implement the decision."

Changes from the Court’s decision are expected to require changes to more than 1,000 federal laws regulating portions of the Internal Revenue Code, the Employee Retirement Income Security Act (ERISA), the Consolidated Omnibus Budget Reconciliation Act (COBRA), the Health Insurance Portability and Accountability Act (HIPAA) and the Family Medical Leave Act (FMLA).

IRS INFORMATION
The Internal Revenue Service has issued new rules, and has also posted a FAQ page for same-sex couples.

“The IRS has a general rule recognizing a marriage of same-sex spouses that was validly entered into in a domestic or foreign jurisdiction whose laws authorize the marriage of two individuals of the same sex even if the married couple resides in a domestic or foreign jurisdiction that does not recognize the validity of same-sex marriages,” notes a portion of the opening answer on the FAQ page.

According to the National Law Review, plan sponsors were to begin complying with the changes effective Sept. 16, 2013.

“As of September 16, 2013, employers must stop imputing income for health benefits for same-sex spouses. If applicable (assuming the existence of a cafeteria plan), employers must also switch from after-tax to pre-tax premiums for same-sex spouse health benefits,” noted the NLR guidance posted Wednesday.

ARKANSAS BAN
An ongoing effort to end Arkansas’ ban on gay marriage hit a roadblock on Tuesday (Sept. 17) when Arkansas Attorney General Dustin McDaniel rejected a proposed amendment – The Arkansas Marriage Equality Amendment – submitted by Little Rock resident Jennifer Pierce.

“Having analyzed your proposed amendment in light of the foregoing precepts, I conclude that I must reject your proposal due to deficiencies in the ballot title and in your proposal’s text,” noted McDaniel’s opinion. “The ballot title is also deficient because it makes no attempt to summarize for the voter what effect your proposal would have on existing law.”

Arkansas’ ban on gay marriage was enacted when 75% of voters supported Amendment 83 in the 2004 general election. Arkansas Gov. Mike Beebe, a Democrat, opposes same-sex marriage.

The roads and rails were busier in August compared to July, but an economist with the American Trucking Associations’ says the increase in tonnage hauled may not accurately reflect national economic health.

The American Trucking Associations’ Truck Tonnage Index was up 1.4% in August after a a 0.6% dip in July. Year-to-date, the index is up 5% compared to the same period in 2012.

The not-seasonally adjusted index, which represents the real change in tonnage hauled by the fleets, equaled 131.3 in August, which was 1.5% above the previous month.

“The strength in tonnage continued again in August, with the index increasing in three of the last four months,” ATA Chief Economist Bob Costello said in a statement. “The improvement corresponds with a solid gain in manufacturing output during August reported by the Federal Reserve last week.”

Trucking serves as a barometer of the U.S. economy, representing 67% of tonnage carried by all modes of domestic freight transportation, including manufactured and retail goods, according to the ATA. Trucks hauled 9.2 billion tons of freight in 2011. Motor carriers collected $603.9 billion, or 80.9% of total revenue earned by all transport modes.

Costello said the recent months of tonnage increases “is probably overstating the robustness of the economy” and health of the trucking sector.

“It just so happens that the sectors of the economy that are growing the fastest – in housing starts, auto production, and energy output, primarily through hydraulic fracturing – produce heavier than average freight, leading to accelerated growth in tonnage relative to shipments or loads,” he explained.

Costello also said truckload shipments are flat for the year, and less-than-truckload shipments are up less than 1.5% year-to-date.
 
The Cass Freight Index reported that shipments were up 1.7% in August, but freight expenditures were down 1.5%.

“The August decline is due more to the mix of commodities shipped in August than to lower rates. Despite this month’s decrease, 2013 expenditures are 3.4 percent higher than a year ago. Cumulatively, 2013 freight payments are up 3.6 percent,” according to Rosalyn Wilson, a supply chain expert and senior business analyst with Vienna, Va.-based Delcan Corp., who provides economic analysis for the Cass Freight Index.

Cass uses data from $22 billion in annual freight transactions processed by its information processing division to create the Index. The data comes from a Cass client base of 350 large shippers.

Wilson said the 1.7% increase in August shipments compared to July support “the prediction that 2013 will have a peak holiday shipping season, even if it is little more than a bump in volume.”

The Cass report also noted that railroad traffic was up 6% in August compared to July, and intermodal shipments were up 6.5%.

Wilson said the trucking industry may soon face a problem of not enough equipment to meet demand.

“The trucking industry is still in a precarious balance, with over 95 percent capacity utilization and an abundance of regulatory and cost pressures that indicate a looming capacity problem. The tricky part is forecasting when demand will actually exceed capacity. The economy is growing slowly enough that the tipping point remains just on the horizon,” Wilson said.

The newly seated Board of Directors at Health Management Associates said Wednesday (Sept. 25) that it will seek a second opinion on a previously announced plan to sell the hospital company to Community Health Systems.

Naples, Fla.-based HMA is the parent company of Sparks Health System in Fort Smith and Summit Medical Center in Van Buren.

On July 30, HMA and Franklin, Tenn.-based Community Health announced that Community would acquire HMA in a deal valued at $7.6 billion. The deal, if it goes through, would likely close in the first quarter of 2014.

However, that deal was approved by an HMA Board that was ousted in a proxy fight pushed by New York City-based Glenview Management.

On June 25 Glenview formally requested that HMA shareholders vote for a complete overhaul of the HMA board of directors. Officials with Glenview said financial and structural problems at HMA were so deep that they believe a new Board was required to provide the experience to make changes. It was announced Aug. 12 that the board nominees submitted by Glenview, which owns 14.6% of HMA shares, had received more than 50% of shareholder support.

When the new board was named on Aug. 16, the new leadership promised a second look at the deal to sell to Community Health. That review has begun.

“In connection with its review, the Board has retained independent financial advisors, Lazard Frères & Co. LLC and UBS Securities LLC, legal counsel, Paul, Weiss, Rifkind, Wharton & Garrison LLP and financial operating and compliance consultant Alvarez & Marsal Healthcare Industry Group, LLC,” noted an HMA statement.

The associated filing with the U.S. Securities and Exchange Commission notes that the “Additional Financial Advisors is requested by the HMA board of directors to render an opinion as to the fairness, from a financial point of view, of the merger consideration to be received by the holders of HMA common stock ...”

If the decision is that it is not fair, HMA will terminate the agreement under a “company adverse recommendation change.” Such a change could lead to a hostile takeover attempt by Community Health or HMA would pay Community Health a $109 million termination fee.

The opinion from the advisors selected by HMA is to be issued no later than Nov. 19.

Glenview has said the $13.78 per share offer is too low.

Community Health agreed to the review, and both companies are moving forward with the formal process of preparing a proxy statement and prospectus related to the transaction for HMA shareholders to approve or reject.

HMA operates 71 hospitals in 15 states with approximately 11,000 licensed beds.

Shares of HMA (NYSE: HMA) closed Wednesday at $12.68, down 13 cents. During the past 52 weeks the share price has ranged from a $17.28 high to a $6.97 low.

Over the next five weeks, 20 finalists in Wal-Mart’s “Get on the Shelf” campaign will promote their product on the retailer’s website, a page borrowed from the popular reality television format. Consumers are asked to watch each Tuesday and vote for their favorite product.

Marketing experts agree crowdsourcing is a creative way for retailers to get valuable input on which product consumers most want to see on the shelf.

The finalists were called to San Bruno, Calif., last week and asked to present live before a panel of three Wal-Mart judges who also work as senior merchandisers. Those presentations were taped and produced into five different episodes based on product category.

The first episode which aired Tuesday (Sept. 24) featured products in the “Live Better” category. Each Tuesday through Oct. 22, a new episode will air and consumers are given 72 hours to cast their vote for the product they most want to see at Wal-Mart. Each category winner will get their product sold at Walmart.com. But one grand prize winner will also be selected based on the number of pre-orders of the product, and will receive additional support marketing from Walmart.com plus an introduction to the retailer's merchandising team.

Last year's three winning products are sold in select Wal-Mart stores and on Walmart.com.

"Get on the Shelf celebrates the resilient and tenacious spirit of American entrepreneurs, many of whom have been working hard for a big break like this," said Kelly Thompson, senior vice president of merchandising for Walmart.com.

"The web series creates more exposure for finalists to share their inspiring stories, which makes for captivating reality TV that's also interactive since American consumers can vote for the next great product at Walmart.com."

In Tuesday’s “Live Better” episode, consumers heard from four product inventors.
• Chris Cote of Santee, Calif. who invented Smanimals, a gourmet scented stuffed animal collectable that hold their scents for two years. His company gives 5 cents toward endangered animal preservation for each item sold.

• Mark Robinson of Amherst, N.H., is the inventor of “Walkin’ Wheels” which is an adjustable dog wheelchair that helps elderly and disabled dogs stay active.

• Angelle Albright of Covington, La., invented “Chemo Beanies” for her sister who was battling breast cancer. Allbright said the comfortable and fashionable head covers for sought out by chemotherapy patients or anyone experiencing sudden hair loss.

• Vincent Rush of Milford, Ohio, invented the “Lynxsafe Teen Driving Monitor”, a device that he created to help concerned parents monitor their teenager's vehicle in real time.

The five-week series is being produced by VIMBY, the digital studio of Mark Burnett Productions, the company behind shows like “The Voice,” “Survivor” and “Shark Tank.”

A consensus exists to solve the teacher insurance crisis, but a consensus solution has far from materialized.

Lawmakers and public school stakeholders have been holding non-stop meetings and conversations all week long in an effort to find common ground for a potential stop-gap to a $58 million insurance deficit and skyrocketing premiums for public school employees.

Key legislators, such as House Speaker Davy Carter, R-Cabot, say that the financial solution to the problem will come from a combination of state, school district and teacher concessions.

Carter tells Talk Business that he and Senate President Michael Lamoureux, R-Russellville, have asked the heads of the education and insurance committees to begin shaping ideas for a legislative solution within the next week-and-a-half.

A drop-dead date for announcing a short-term financial fix to the troubled teacher insurance pool is Oct. 15, when state employee benefits managers must know if policymakers have hard numbers for shoring up the program. Managers will need about two weeks to rework charts and programs ahead of a Nov. 1 open enrollment period.

“We’ve asked the chairs to begin the process of putting together a framework for the collective membership by the end of next week,” Carter said.

Gov. Mike Beebe (D) has indicated a willingness to call a special legislative session to address the issue, but he’s insisted that short-term and long-term solutions to remedy the insurance crisis must be agreed to in advance.

“To build a consensus on this type of issue on this type of timeframe is a whole other animal,” said Carter of the daunting task. “I don’t know what the best process is, but I can’t think of anything better than what we’re doing. Let’s start out with something and try to build on it.”

FLOATING IDEAS
What could a potential solution include?

There are myriad ideas and none seem to be coalescing as a lay-up to solve the financial problems of the program.

According to notes obtained by Talk Business from a closed-door meeting with the Governor and school superintendents, some of those ideas include:
• $7 million from the National School Lunch Act;
• $10 million in new ongoing funding from the state;
• $7 million from professional development training funds for teachers; and
• $8 million from school districts that won a lawsuit to keep excess funds from a 25-mill uniform rate of taxation (URT).

All of these possible solutions still fall short of the $58 million projected deficit and would require one-time money to meet needs if benefits remain the same.

The school lunch funding shift appears to be a non-starter. Lamoureux and Sen. Johnny Key, R-Mountain Home, chairman of the Senate Education Committee, both agreed that it was an unlikely revenue source.

“I don’t see any support for that from the superintendents I’ve talked to,” said Key. “They are willing to go find some other category of funding that they would rather repurpose than take from NSLA.”

“For some people like me, I can tell you the Russellville School District, pretty much the best thing we have going for us is how we’re spending our NSLA money,” Lamoureux said.

Both men suggested that public schools may simply be asked to meet a yet-to-be-determined dollar figure through belt-tightening or repurposed existing funding.
Recapturing money from the eight school districts that won the lawsuit to keep their excess funds above the 25-mill URT also appears unlikely.

“I’ve never seen a district voluntarily give up money,” said Lamoureux. “I’d be surprised if they’re supportive of that.”

OTHER IDEAS
According to the superintendents’ memo, other areas of discussion also include reducing the foundation funding amount that applies to health insurance, roughly $148 million, and sending that money directly to the Employee Benefits Division of the state, which administers the Public School Employees Benefit Program.

“Districts would then be out of the health insurance business for any employee hired with foundation dollars,” the memo stated. It also noted that Beebe said he would not support this concept.

Asking spouses and children of public school employees is another option that was suggested in the memo. In effect, it would ask that families fund the additional costs of the health insurance plans for spouses and dependents.

Establishing variable rates such a smoker’s rate versus a non-smoker rate is listed as a potential cost savings initiative, and mandatory participation for new hires after July 1, 2014 was also listed.

There were also concerns raised in the memo about how the Affordable Care Act might impact the public school employees’ insurance fund.

“No one really knows how ACA will impact future health insurance costs and benefits,” the memo said. “If ACA requires 100% of your employees to take health insurance, then there is a substantial unfunded mandate for schools.”

Key said while others are discussing potential short-term funding fixes for the insurance pool, he is focused on long-term reforms. He said there is “no appetite from either party” to “write a check” and make up the $58 million deficit.

Key said there has to be “fundamental reform,” such as eliminating “no deductible” gold plans, instituting cost sharing by teachers, and perhaps shifting teachers and school employees to health savings accounts (HSAs) to offer more financial flexibility in health insurance expenses.

“I think now that we’ve had to pick up the problem, we’re responsible moving forward. I don’t want to see another 48% increase after we get involved,” he said.

Matt Decample, spokesman for Beebe, said the Governor remains engaged in conversations on the subject and is hopeful that a remedy can be fashioned before the dramatic rate increases would ensue.

“There are no easy answers, whatever we do is going to cost money and its going to take shared contribution,” he said.

Van Buren-based USA Truck faces a second takeover attempt in less than two years, with Knight Transportation on Thursday morning going public with a $9 per share bid as part of a $242 million deal. USA Truck officials accused Knight of misleading the public about recent communications between the two companies.

Phoenix, Ariz.-based Knight employs more than 5,000 and operates more than 4,000 trucks and is one of the nation’s largest truckload companies. By comparison, USA Truck has under 3,000 employees and operates around 2,200 trucks.

Knight also owns 8% of USA Truck shares.

The per share bid is a 39% premium from USA Truck’s share price (NASDAQ: USAK) on Sept. 25, and a 58% premium compared to the Aug. 27 closing price – the day before Knight sent its first proposal letter to the USA Truck Board of Directors.

UPDATED INFO: USA Truck shares opened strong Thursday following the Knight bid news. The opening bell bid was $9, with the shares trading at $9.10, or up almost 41% over Wednesday’s closing price of $6.46. By early afternoon, the share price had moderated back to $8.75, which was a more than 35% increase from the previous closing price.The price closed the day at $8.80, up $2.34.

“We are confident that USA Truck shareholders will share our strong belief that Knight's $9.00 per share all-cash, premium proposal would provide significant and immediate cash value that is significantly more attractive than USA Truck's standalone prospects,” Kevin Knight, Board chairman and CEO of Knight, said in Thursday’s statement. “For Knight's shareholders, we are confident that a combination with USA Truck would create value by further enhancing our position as a leading provider of multiple truckload transportation services in North America.”

At risk in a deal with Knight would be the more than 400 jobs at USA Truck’s corporate headquarters in Van Buren.

Brad Delco, a transportation industry research analyst with Stephens Inc., said the Knight bid was a substantial premium over the USA Truck stock price, but is below the $10.25 per share book value.

UPDATED INFO: In a statement released late Thursday, USA Truck said the Knight offer of $9 per share "substantially undervalues" the company. On Sept. 6 USA Truck sent a letter say it rejected the offer and was willing to meet with Knight to explain why the $9 per share was not enough.

"Surprisingly, on September 13, 2013, Knight rejected the Company’s offer to meet and informed USA Truck that it saw no point in engaging in further transaction discussions with USA Truck at that time," USA Truck noted in its statement. (See the complete USA Truck statement at the end of this article.)

The Thursday statement from Knight and the Aug. 28 letter from Knight to the USA Truck Board included several reasons the move is good for shareholders of both companies.
• “Our proposal would provide your shareholders with immediate liquidity for their shares at an attractive price, without being subject to the significant execution risk associated with your current turnaround plan. We would note that although the Company's operational performance has improved, the Company's operating ratio remains above 100%, its book value continues to fall, and the share volume remains quite limited, making it difficult for your shareholders to achieve liquidity.”

• “We believe there would be no impediment to completing a transaction on an expedited basis. Based on discussions we have had with our potential financing sources, we are confident that we would be able to readily obtain the financing necessary to complete a transaction. As such, our proposal is not subject to any financing contingency. Moreover, based on our knowledge of the trucking industry, we do not believe there would be any antitrust impediment to completing a transaction.”

• “Knight and USA Truck operate in complementary service lines, both with young tractor fleets with similar average lengths of haul.”

• “Knight believes that it can improve operational efficiencies at USA Truck – and do so more quickly than the USA Truck management team can alone.”

• “Knight can finance USA Truck's capital needs on a lower cost basis.”

The Aug. 28 letter also leaves the door open for a higher price if the USA Truck Board allows Knight to look closer at company operations.

“Although we believe our proposal would provide full and fair value to your shareholders, we would be prepared to modestly increase our proposed purchase price if we were allowed to conduct due diligence and the Company were to demonstrate to us value that we have not already identified,” Kevin Knight noted in his letter.

Knight in his letter requested a Sept. 6 response from USA Truck.

“Absent a satisfactory response, we will consider all options available to us, including making your shareholders aware of our offer,” Knight wrote.

TAKEOVER HISTORY
Indianapolis-based Celadon, which operates Celadon Trucking, purchased $4.66 million in USA Truck shares in early October 2011. Company officials also asked to meet with the USA Truck management to “discuss a possible association” between the two companies.

USA Truck officials rejected the request, and Celadon moved to an easier target. Celadon officials sold the shares of USA Truck on Feb. 28, 2012, and on Feb. 29 announced it had “purchased a significant portion of the operating equipment of Teton Transportation, Inc.”

In November 2012 the USA Truck Board adopted a “poison pill” provision to buffer the company from future unsolicited offers.

The plan caps ownership acquisition at 15% and leaves the cap in place for two years “to afford the Company time to implement its turnaround strategy.” The plan also puts in place a 10-day “redemption period” that gives USA Truck officials “the opportunity to negotiate” with anyone who seeks to buy shares beyond the 15% cap.

In addition to the poison pill, the USA Truck Board hired in February veteran trucking exec John Simone to replace Cliff Beckham as CEO. Simone has more than 30 years of operational and management experience in the transportation industry with leading companies that include UPS, Ryder, and Greatwide Logistics. He was the CEO of LinkAmerica where he led a successful operational turnaround.

TROUBLED FINANCIALS
USA Truck reported July 24 a first half 2013 loss of $3.5 million, better than the $8.4 million for the same period of 2012.

A second quarter loss of $1 million was booked, but was an improvement over a $3.5 million loss during the second quarter of 2012. The per share loss of 10 cents, however, missed the consensus analyst estimate of a 6 cent per share loss.

Total revenue for the first six months of 2013 reached $271.766 million, up 7.3% compared to the 2012 period. Second quarter total revenue was $139.738 million, up 7.84% over the second quarter of 2012.

Significant financial gains will be required in the second half of 2013 if the company is to avoid five consecutive years of losses. The company reported a $17.54 million loss for 2012, a 2011 net income loss of $10.77 million, a 2010 loss of $3.308 million, and a $7.177 million loss in 2009.

During the third quarter of 2012, the company was forced to negotiate for a new credit line. The new agreement, made with Wells Fargo Capital Finance and PNC Bank, placed all assets of the company up as collateral for a new $125 million revolving credit agreement. Of that, USA Truck had initial access to $28.3 million, with $75.9 million repaying the obligation of the previous credit agreement.

STATEMENT FROM USA TRUCK
USA Truck, Inc. (NASDAQ: USAK), a leading truckload transportation company, today said its Board of Directors had previously reviewed Knight Transportation’s unsolicited proposal with USA Truck’s management team and financial and legal advisors, and unanimously concluded that the proposal substantially undervalues USA Truck and is not in the best interests of USA Truck and its shareholders.

In light of our previous discussions with Knight, we are disappointed not only that Knight decided to make its proposal public this morning, but did so in a misleading manner. In fact, on September 6, 2013, the Company responded to Knight’s letter dated August 28, 2013 informing Knight that the Board of Directors unanimously viewed Knight’s $9.00 per share proposal as inadequate, as it substantially undervalued USA Truck in light of the initiatives undertaken by our new management team. However, the Company offered to meet with Knight to discuss the reasons why the Company viewed Knight’s proposal as inadequate. Surprisingly, on September 13, 2013, Knight rejected the Company’s offer to meet and informed USA Truck that it saw no point in engaging in further transaction discussions with USA Truck at that time.

While the Company remains open to all strategic options, including further discussions with Knight, we believe that executing our strategic plan will offer superior value to our shareholders.

It has been a little less than nine months since Interstate 540 through Fort Smith and Van Buren was reduced to one lane in both directions, causing traffic nightmares not normally seen in the area.

For commuters looking for a status update on the construction project, Arkansas Highway and Transportation Department District 4 Engineer Chad Adams has good news.

"We're still looking at them being on schedule," he said. "We still have an estimated completion of late spring 2014."

The nearly $79 million project, the largest single-project contract awarded in AHTD history, has seen the demolition of six bridges, with more to come as the months go on.

With many of the bridges nearing completion in the southbound lanes, Adams said commuters should expect to see a lane shift within the next month or two, taking all traffic to the southbound lanes while bridges and pavement work proceeds on much of the untouched northbound lanes that have been carrying traffic since the project started Jan. 28.

So how is a project that is replacing multiple bridges and repaving more than 15 miles of interstate lanes moving so fast?

"This is a very large company (Keweit), a national company out of Nebraska and they have the manpower and equipment to do these kinds of things. They have brought in additional crews. They are working around the clock, as you have seen, and that has allowed them to have progress that is non-stop where you may see other companies with long days. But it's difficult to employ enough people around the clock six days a week."

And Adams said while it is not typical to see much work being done on Sundays, the crews working on the highway are typically spending those days doing preparatory work for the upcoming week, keeping the project progressing at a fast pace. Adams said one way the project has kept moving at quick speed is due to the method used for resurfacing the roadways, which has included rubblization.

"If you think back about 10, or probably 12 or 13 years now, we did the same type of work on Interstate 40," he said. "What we've done is leave concrete in place using a base layer. The concrete was rubblized. Beaten. Smashed with a pneumatic hammer that just rubblizes that concrete in place. We use that as the base and build up with asphalt."

In the long run, Adams said it would be easier to resurface the roadway way by coming in and taking "off the top layer of asphalt when it reaches the end of its useful life. We can take off the top layer, resurface in a quick manner and restore the highway back to great condition. If it's done with concrete, it's a lot more difficult to maintain it that way."

AHTD also saw cost savings using asphalt instead of concrete, he added.

While many bridges along the interstate are being replaced, or in some cases raised to allow for higher clearances, one bridge that will not have much if any work done to it is the Arkansas River Bridge.

According to Adams, widening the bridge to conform with current federal highway standards, which is what the contractors are doing with many of the bridges along I-540, is not financially feasible, especially considering that the AHTD is attempting to secure funding for a river bridge along the I-49 route. He said rehab work on the Arkansas River Bridge on I-540 could total more than $100 million, which would then make it the largest single highway construction contract awarded in state history.

Adams took time to address concerns raised at a Tuesday study session of the Fort Smith Board of Directors meeting. At the conclusion of the meeting, City Director Mike Lorenz expressed disappointment in the appearance of the interstate's landscaping and saying that other cities, such as Little Rock, do not have problems getting the AHTD to maintain a regular mowing schedule.

"Mowing has been more difficult," Adams said. "There's a lot of stakes and just obstacles that the contractor may have in place to accomplish their construction work out in the grass area. It requires extra effort and we've tried to work with the contractor on getting that done as we can. We did go in and mow, I think it was the northbound side after our normal mowing cycle in July and I think we mowed that right around the time when school started."

Adams said a normal schedule will resume once construction is complete late next spring, adding that if safety issues are present due to higher grass, that would be addressed as need.

State business, education and policy leaders are meeting at the Marriott Hotel in Little Rock to discuss strategies for deploying more broadband throughout Arkansas. The Connecting Arkansas Internet Conference, spearheaded by Connect Arkansas, is being held Thursday and Friday.

While the room during the opening presentation was full of experts in the field, Gov. Mike Beebe (D) made no pretense that he should be included on the list.

“I’m not going to come in here and talk about broadband to you because I don’t know squat about it,” Beebe told the conference. “What I do know is its significance and importance.”

Education officials are focused on finding ways to boost broadband access to nearly 460,000 Arkansas K-12 students. Beebe has pushed two working groups – Fast Access for Students, Teachers and Economic Results (FASTER) and the Quality Digital Learning Study (QDLS) committee – to formulate public-private solutions to a need to upgrade high-speed offerings for schools and communities across the state. The groups have been meeting since earlier this summer.

According to the Arkansas Department of Information Services (DIS), only a handful of the state’s public schools may have a nationally recommended broadband capability of 100 Mbps per 1,000 students and staff. The average Arkansas school district with 1,800 students has 40 Mbps of bandwidth and needs at least 140 Mbps more, the department concluded. Business leaders with leading Internet Service Providers (ISPs) contend the situation is not nearly as negative as the DIS report projected.

Without necessary bandwidth, however, Arkansas public schools could be in jeopardy of failing to meet forthcoming Common Core testing standards and perhaps, more importantly, students and teachers could miss out on new digital academic opportunities that are redefining the education delivery system.

State lawmakers are expected to tackle the issue in next year’s fiscal legislative session.

Beebe told the group that his role was not to find the solution, but to create an environment for solutions to unfold.

“It’s my job as a traffic cop to get the cars going in the right direction,” he said. “I don’t have the solution. I can’t figure out the best way to get this done, but you people can turn Arkansas into the place to make it happen in broadband.”

Beebe encouraged policy makers and business leaders at the conference to push for out-of-the-box solutions similar to how he has promoted new goals for prison sentencing and health care reforms in Arkansas. He said that other state and national leaders have called his office asking about those initiatives.

“I want them to do that on broadband,” Beebe said.

Dianne Smith, founder and CEO of AmericanRural.org, is a former Little Rock Alltel executive now living in Montana. Her company promotes entrepreneurship through technology in rural communities across the country. Internet access is a crucial component of that environment, she said.

“Broadband is a journey, not a destination,” Smith said. “We get so far, but then we wake up and there’s something new in the broadband world.”

She said she hopes the state looks beyond traditional delivery of Internet service, which is dominated by hard-wired cable and fiber optic services.

“Broadband is mobile, too. There’s a big wireless component to it and some of the discussion I’ve heard here is about wired. I’m anxious to see that conversation get expanded to wireless,” Smith added.

As for Arkansas’ ranking for its broadband accessibility and infrastructure, Smith said the state is not alone in the conversation that is the centerpiece of this conference.

“I think Arkansas is where a lot of other states are right now,” she said.

The Connecting Arkansas Internet Conference continues through Friday.

In a world that has never been more connected through technology and the internet, there is still roughly 15% of American adults who are not plugged into the World Wide Web, according to a study by Pew Research that was conducted in May and released this week.

Researchers from Pew asked adults why they didn’t use the internet in a controlled survey with a 2.3% margin of error.

Non-Internet Users
• 34% of non-internet users think it is not relevant to them, citing they are not interested, do not want to use it, or have no need for it, according to the study.

• 32% of non-internet users cite reasons tied to their sense that the internet is not very easy to use. These non-users say it is difficult or frustrating to go online, they are physically unable, or they are worried about other issues such as spam, spyware and hackers.

• 19% of non-internet users cite the expense of owning a computer or paying for an internet connection.

• 7% of non-users cited a physical lack of availability or access to the internet.

Non-user demographics
• 44% of non-users were age 65 or older
• 41% of non-users lacked a high school diploma
• 24% of the non-users earned below $30,000 annually
• 20% of the non-users lived in rural areas.

AT HOME USE
Even among the 85% of adults who do go online, experiences connecting to the internet may vary widely.

For instance, even though 76% of adults use the internet at home, 9% of adults use the internet but lack home access.

These internet users cite many reasons for not having internet connections at home, most often relating to issues of affordability.

Roughly 44% mention financial issues such as not having a computer, or having a cheaper option outside the home.

MOBILE ACCESS
As the use of smart phones continues to escalate in the U.S. researchers believe more of that 15% of non-users will be converted. That reasoning is based on the fact that 44% of non-users said they often ask others to look up information for them online.

“A majority of the public now owns a smartphone, and mobile devices are playing an increasingly central role in the way that Americans access online services and information,” said Aaron Smith, a senior researcher at the Pew Research Center’s Internet Project.

“For many, such as younger adults or lower-income Americans, cell phones are often a primary device for accessing online content — a development that has particular relevance to companies and organizations seeking to reach these groups.”

A thousand motorcycles rumbling down Fort Smith’s Garrison Avenue and delivering millions of dollars in economic impact is not unreasonable, says one motorcycle enthusiast – and city officials say they are willing to foster such an event.

Dennis Snow has worked for several years to convince Fort Smith officials to support a large rally, and more than two years ago coordinated a meeting between officials with Bikes, Blues & BBQ (BBBQ), Fort Smith Mayor Sandy Sanders and Claude Legris, executive director of the Fort Smith Convention and Visitors Bureau.

Snow is the owner and producer of Thunder TV, a Sunday morning show on Fox 24 about riding motorcycles in the region. Thunder TV also is the official TV show of Bikes, Blues & BBQ.

BBBQ is a motorcycle rally based in Fayetteville that just completed – held Sept. 18-21 – its 14th annual event. The event is nationally known, and draws more than 400,000 visitors to various cities in Benton, Washington and Carroll counties in Northwest Arkansas. Some of the visitors also stay at hotels in Van Buren, Fort Smith and other counties adjacent to Northwest Arkansas.

A 2005 study by the University of Arkansas’ Center for Business and Economic Research indicated that the 2004 event had an economic impact of between $34.725 million and $52.088 million.

“There is an obvious evidence of increases in taxes received by the city from hotels, motels, and restaurants during the period of the festival,” noted the study.

POSSIBLE BBBQ CONNECTION
Snow has support from Northwest Arkansas in his effort to piggyback off the BBBQ and develop a rally in Fort Smith.

Coleson Burns, assistant event director with BBBQ, was one of the event officials to visit with Mayor Sanders and Legris. A leadership change at BBBQ interrupted the process, but Burns said BBBQ officials “would be happy to talk about 2014” as soon as they get the 2013 event behind them.

“We looked at the (downtown Fort Smith) area. .. Everything is very nice. The facilities there are great. It’s just a matter of growth and marketing it the right way,” Burns told The City Wire.

Continuing, Burns said the expected growth of BBBQ will need to involve new partners.

“As it grows, as this event grows, we feel that it will have to expand, you know, geographically. I mean, we want to spread the wealth as much as we can within our capabilities,” Burns explained. “So, yes, should an opportunity arise, we are interested in expanding, both North and South.”

Burns said Fort Smith being 45 minutes away from Fayetteville is not a problem. The issue will be in organizing and managing an event.

“It’s not like I can just hire someone for a Fort Smith venue. There would an immense amount of coordination that would have to happen to make it the right fit for the right time,” Burns explained.

‘HAVE TO START NOW’
It’s the manpower support that Snow says he and others in Fort Smith can make happen. But Snow, who has been involved in various aspects of motorcycle rallies and events since 1977,  said city officials have to work close with he and others who know who to create a successful and “sustainable” event.

“We’re losing millions of dollars because we have the venues and the avenue and it’s just a great geographic location for an event like this. We can make this work here. ... We should have made it work here a long time ago,” Snow said.

When could the first event happen?

“We can do it next year, but we have to start now,” he said without hesitation.

Snow also said a rally coordinated with BBBQ could result in a standalone event unique to Fort Smith.

“That street (Garrison Avenue) is so perfect for a motorcycle rally. ... We hold something with that (Bikes, Blues & BBQ), and then it will springboard into a rally of our own in the Spring. I’m telling you man, we can do this. We can start our own rally here in downtown Fort Smith,” Snow said.

Legris said he has been in contact with BBBQ officials and hopes to meet with them “in the next couple of weeks.” Legris also said working with BBBQ could result in an event that is not just an extension of what happens in Fayetteville.

“Of course I would support this. ... Of course I would talk the thing up, because it can mean nothing but dollar signs for Fort Smith,” Legris said.

Mayor Sanders said Thursday that he might be willing to provide some money from his discretionary budget to get an event started.

“Absolutely. If it’s something of a significant size that would benefit the economy ... I would certainly consider it,” Sanders said.

STATE TOURISM PUSH
Legris also has another reason to be supportive of a motorcycle rally. The Arkansas Department of Parks and Tourism is working to promote motorcycle tourism in Arkansas. Parks and Tourism employee Grady Spann toured Arkansas by motorcycle in the fall of 2012 to promote the “Let’s Ride” campaign.

In an Oct. 5 address to members of the Fort Smith Regional Chamber of Commerce, Spann said the impact of motorcycle tourism is positive for events large and small. While everyone is aware of BBBQ, Spann said an August 2012 event – Mountains, Music and Motorcycles – in Mountain View, Ark., brought in an economic impact of $1.3 million in spite of its small-town venue.

Part of what makes motorcycle tourism such a lucrative field for business owners is that the biker demographic has changed.

"The clientele we see today is different. From 1985 to 2003, the median age for bikers increased from 27 to 41. Bikers from ages 40 to 49 increased from 13% to 27%. Fifty-plus-year-olds, and I'm in that age group now, went from 8% to 25%. That's because bikers are getting older, I guess," Spann said.

As if on cue, more than 250 motorcyclists rumbled through Fort Smith on Wednesday (Sept. 25) and stayed overnight before traveling up to Eureka Springs. The group was part of an “Ozark Hellbender” tour on a a 1,340-mile loop on mostly two-lane roads through Arkansas and Missouri and other mid-American states. Fort Smith was the fifth of seven stops during the Sept. 22-27 trip for the Harley Owners Group. Other stops included Hot Springs and the tour ends in Cuba, Mo.

“We had 250+ riders through today from all over the country, France and England,” noted a statement sent Thursday from the Fort Smith Convention and Visitors Bureau. “Most planned to spend the day today and they had to come by Miss Laura’s Visitors Center to get their travel books stamped this morning by ‘Miss Laura’ herself. We staffed up with 7 volunteers and opened the doors at 8:30. We had bikers waiting at 7:15 this morning. Not sure exactly how many stayed the night but I know the Marriott Courtyard was sold out last night. Today was a perfect example of how our River Valley area can play a major role in this type of tourism.”

The public got its first glimpse at the results from the city's Future Fort Smith Community Forum series and "Meetings-in-a-Box" on Thursday (Sept. 26) at the River Park events building.

According to Brian Traylor, a planner and urban designer with the city's comprehensive plan consultants Wallace Roberts & Todd (WRT), the goal was to discover the community's goals and expectations as the city looks to the next several decades.

"The over-arching goal of this process was to explore the community's values and expectations for the future of Fort Smith, leading to a Vision Statement that says: 'this is what we, the citizens want our City to be like in the future,'" Traylor wrote in a presentation to the nearly 30 individuals on the comprehensive plan steering committee who were in attendance.

In all, Traylor, who was leading today's meeting remotely by teleconference, said more than 1,600 ideas were presented with more than 600 priorities coming to the surface. In all, more than 400 residents took part in the public forums, held at such locations as Creekmore Park and the Fort Smith Senior Activity Center.

With such a large number of ideas brought to the steering committee and the consultants helping update the comprehensive plan, City Administrator Ray Gosack told those gathered that today was just the beginning as the list of priorities for the city's next decades begins to take shape.

"In the beginning, we began with a very wide funnel where anything within reason was possible or fair game," he said. "And now today, we're going to start narrowing that funnel down a little bit because we obviously don't have the bandwidth, the resources to focus on anything and everything that someone might bring up. So to bring some focus to the plan and some definition to the comprehensive plan, we're going to have to start narrowing that funnel down. Today is the first real step in starting to bring some real focus in what the comprehensive plan will look like."

The information compiled from the meetings was broken down into four categories – strengths, weaknesses, opportunities and threats. At the beginning of each section, participants at the forums were asked to respond to a question or series of questions to guide the conversation.

STRENGTHS
What present conditions of Fort Smith do we value? What are our most important assets? What community qualities and values do we share and cherish?

The top five strengths identified during various meetings held across the city were quality of life, education, culture/heritage/history, green infrastructure/environment and location/development potential.

"Our of these priorities that fall under the theme of quality of life, 33% related to the affordable cost of living, followed by 26% related to the level of safety in the area, 22% related to the character of the community, and so on," Traylor wrote.

WEAKNESSES
What present conditions of our community do we characterize as problems requiring resolution? What negative aspects of our life here could we change?

Of all weaknesses mentioned, the top five categories were economy and workforce, government functionality, appearance/beautification, events/arts/entertainment/nightlife and downtown/riverfront/redevelopment.

"Most groups identified economic and workforce issues as significant weaknesses for the City of Fort Smith," Traylor wrote. "These discussions included concerns raised by residents regarding a lack of employment opportunities, difficulty retaining a qualified workforce in Fort Smith, and making a transition from the former manufacturing based economy."

OPPORTUNITIES
What circumstances, conditions or trends should we capitalize on to make our community better in the future? How do we leverage such opportunities?

By far, redevelopment in downtown and along the riverfront outranked all other priorities, accounting for a fifth of all responses.

"Discussions within this theme included the opportunity for infill and re-use of vacant buildings, the potential to draw development along with the future U.S. Marshals Museum, and capitalize on the existing momentum already underway in the area," Traylor wrote. "Residents suggested rebuilding, refurbishing, revitalizing, and renewal of Downtown and the Riverfront, with denser living, and daily needs accessible within walking distance."

Other priorities included transportation/infrastructure, economy and workforce, destination/identity/tourism and location/development potential.

THREATS
What potential challenges do we face in realizing the future we want? How will they impact us? How do we prepare for them – or prevent them?

Priorities were more evenly split in the threats category, with the economy and workforce ranking only slightly higher than attitude and perception. A close third was government functionality followed distantly by safety and demographic shifts.

"The economy was the most frequent theme to come out of community discussions about potential threats facing Fort Smith," Traylor wrote. "Many groups came to the consensus that there are not sufficient job opportunities, and that even more jobs may be leaving the area in the future. An inability to retain a skilled and educated workforce was also seen as a direct threat to the economy, with young people leaving Fort Smith. Many priorities expressed within this category are also directly related to current demographic shifts that many also saw as a potential threat; an aging population, loss of youth, and an increase in Hispanic population without an increase in jobs."

REACTION
Senior Planner Brenda Andrews said the meeting, which was not originally part of the city's $340,000 consulting contract with WRT, was important to gather the committee to present the findings and "keep the momentum going."

As for how she reacted seeing several priorities appear in all four categories, Andrews said it should not confuse the public or the committee.

"In the beginning that was surprising that you may see the same topic on maybe all four things, or certainly three, but it was consistent in the riverfront. That was certainly one that I can remember that you might see on all of those and it makes sense," she said. "If you don't take advantage of something, or act on it, or develop it at its fullest, it may became a threat because just the lack of that asset that you have ignored could be a threat to our community in some way."

City Director Keith Lau also reacted to the list of priorities to emerge from the session, which also included a draft vision statement for the city of Fort Smith.

Lau said the mention of government functionality was something he and other elected officials needed to take seriously if the city was to move forward and accomplish the goals that come from an update of the city's comprehensive plan, adding that on the surface, it would be easy to say the $340,000 consulting fee paid by the city does not have value. But in the end, he believes the high price paid by the city will ultimately yield positive results.

"Why do we continue to do the same thing over and over again, expecting different results? Okay? So we've got this, right there it says on one of these 'government functionality.' Well, somewhere in there, this group, whoever they were, say we've got administrative obstacles and representation obstacles. Well, if I wake up as a director and I look at that and I see that, I say, 'Well, maybe we got some issues here.' And then it prompts me to do something and change, then there is value in what we're doing."

Traylor said an updated and possible final vision statement could be presented at an Oct. 21 comprehensive plan steering committee meeting, which will be held in the east room of the River Parks event building from 4 p.m. to 6 p.m.

The October Baloney Sandwich Index (BSI) predicts a Fort Smith area jobless rate increase when the September and October metro jobless rates are released on Dec. 9.

October’s BSI rose to 166.1 from 140.8 in September.

The August BSI predicted a slight increase, but the jobless rate fell to 7.2% from a 7.6% rate in July. However, the August jobless rate decline was more a function of the workforce number than an overall improvement in the jobs market.

The size of the Fort Smith regional workforce during August was 132,814, down from the 133,352 during July, and below the 133,378 during August 2012. The labor force reached a revised high of 140,253 in July 2007.

Ken Kupchick, author of the index and director of marketing and development for the River Valley Regional Food Bank, says the index has an almost 70% correlation with Sebastian County unemployment numbers. He uses three numbers to compute the BSI:
• The number of sack lunches served by the St. John’s Episcopal Church Sack Lunch program;
• The Sebastian County jobless rate; and,
• The Fort Smith metro jobless rate.

The sack lunch program began in 1986 by the church, located in downtown Fort Smith, to help the homeless. The handful of volunteers that began the program has grown to an estimated 125 volunteers who now support the effort.

The index declined in 2013 because officials at St. John’s changed the policy to serving just one meal per person. Because of the long-term unemployment in the Fort Smith area, program volunteers provided extra meals to those who requested them. The extra meals were included in the index count. 

“Last October, the need had peaked to the point where record numbers of sack lunches in August (5,957) and October (5,713) to the point where requests for multiple lunches required implementing a new ruling to only provide another sandwich when requests for more food were received,” Kupchick explained. “The October 2013 lunches were the highest recorded number of lunch requests since that change was implemented.”
 
During October 2013, the church provided 4,902 sack lunches, down from the 5,713 in October 2012, down from 5,405 lunches served during October 2011, and up from the 3,835 served during October 2010.

The average number of lunches served each month reached a high of 5,017 during 2012. The monthly average was 4,249 in 2011, 3,316 in 2010 and 3,448 in 2009.

"Food pantries are starting to buckle. Each has only a certain level of support to give the community. Some are reducing the amounts of food they give. Others are reducing their hours. We've even had closures. Those with the ability to give to help are asked to help local food pantries with food, funds or volunteer help,” Kupchick noted.

The need is recognized by those outside the food support sector.

Arvest Bank announced Nov. 15 that its customers and employees raised more than 1.8 million meals through its 1 Million Meals effort.

“The success of the campaign comes just in time to help local food banks and hunger organizations meet their increased needs during the holiday season.” noted an Arvest statement.

The drive also provided funds for local food support groups, including a more than $12,000 donation to the Community Services Clearinghouse.

In Northwest Arkansas and the River Valley, Arvest partnered with 18 food partners for the campaign. The organizations will receive all donations from their local area, and this year 706,623 total meals were provided in overall in Northwest Arkansas and the Fort Smith region.

It was September when Sebastian County Judge David Hudson revealed that the golf course at Ben Geren Park would lose $150,000 during fiscal year 2013, the third year of losses for the county-owned recreational facility.

Hudson has previously said the golf course is a reflection of the national economy.

"The golf course is a direct reflection of the economic times and the golf market's been flat, so we actually came closer to running it with our revenues several years ago and we haven't the last few. We're going to be at least $150,000 short of our expenses over our revenues this year and a lot of that remains to be seen – how we operate the rest of the year, what we spend and what kind of play we have."

In previous years, natural gas royalties have also assisted the golf course in breaking even or turning a profit, a funding mechanism Hudson said Wednesday (Nov. 20) would be seriously lacking this year even though a natural gas well still sits on golf course property.

"In the revenue estimate next year, there's $685,000 from golf revenues and $15,000 from (natural gas) royalties," he said. "That's fluctuated over the years. It's gone way down from what it was in the past. It's probably been $60,000 (at its peak). It's been $50,000 or more. It's been a lot higher than it is lately."

In an attempt to stop the bleeding, the county's budget for next year includes the elimination of four full-time positions and replacing those positions with part-time workers in addition to reducing some maintenance and upkeep costs. In all, the cost saving measures included in the county's budget reduce operational and personnel costs by $121,158, not enough to fully break even.

With the golf course projected to lose money for its fourth consecutive year, the county has looked at measures which include leasing the golf course to an outside company for operations and possible maintenance, though Hudson said there are no interested parties.

Another option, it was revealed at Tuesday's (Nov. 19) Quorum Court meeting, would be to sell alcohol at the club house. The Parks Advisory Board has discussed the issue, though Justice of the Peace Shawn Looper said the matter was never communicated to himself or other Quorum Court members.

"I read it in the paper. The judge hasn't mentioned this to nobody, as far as I know. He wants to let the city annex that so he can sell alcohol," Looper said to Parks Advisory Board member and former County Judge Frank Glidewell during the public comment section of Tuesday's meeting.

The reason annexation of county property would be necessary is because Fort Smith is the only section of Sebastian County to be considered "wet," or legally able to sell alcohol by the drink.

Hudson said the "lightning rod issue" of serving alcohol at Ben Geren was still just an idea, and not yet at the step of needing a legal opinion on how the process would go, and whether it would have to be brought to the Quorum Court.

"I haven't brought it to fruition as far as legal advice as (to) what all the steps are. I don't know what all the steps are," Hudson said.

Looper said he felt as though the Parks Advisory Board and Hudson seek to enact policy without the input of the elected members of the Quorum Court, and attacked Hudson's lack of knowledge on annexation laws in relation to county-owned properties.

"It's a pretty big detail. That's a pretty big detail, when you're looking at alcohol sales and it looks like you're going to circumvent this board to do that. That's what it looks like to me."

Fort Smith Deputy City Administrator Jeff Dingman said Wednesday there were two ways for the county to pursue annexation of the golf course into Fort Smith – by election or by request.

"If they want to be annexed, we just have to get approval from the county – I believe the county judge – and the (Fort Smith) Board of Directors," he said. "The other way is by election. But there's no residents in the park, so that wouldn't really apply."

And even though Hudson is legally entitled to approve a property moving from county to city, he would still have to go through the Quorum Court since Sebastian County has ownership of the golf course, Dingman said.

"The county is the owner of the property. For them to make a request, probably the cleanest way for that to happen is a resolution of the Quorum Court to seek annexation of the property and then the Quorum Court gets treated as any other property owner at that point."

As for why the county does not just serve alcohol as a private club, Hudson said "it just wouldn't make sense." Asked to elaborate, he simply said it did not make sense to him and provided no further explanation.