Big Data feeds analytics well beyond point of sales data that used to be the be-all, end-all in retail forecasting. Today, retailers and suppliers are tapping “Big Data,” which encompasses market loyalty, store and site traffic, social media and mobile shopping in addition to point-of-sale and marketshare data.

Fred Baumann, vice president at JDA Software Group, recently spoke at the University of Arkansas Supply Chain Conference about how advanced analytics fed by Big Data are changing the supply chain. He said tapping smart analytics are the key to solving out-of-stock issues at retailers, because by leveraging information across social media more real-time demand can be accessed.

Baumann said category managers have the opportunity to integrate relevant real time data into their forecasting. He said advanced analytics also may improve assortments and space planning for the retail store. He said analytics within the supply chain have to be a connected collaborative framework between retailer and supplier.

“Manufacturers and retailers struggle to try and solve their problems themselves, when they both want the same thing — productive shelves,” Baumann said.

Forecasting inventory to the shelf is the future, according to Baumann.

“Planing shipments to the shelf creates a ton more data than shipping to the distribution center. It is very granular and requires an interconnected collaborative framework with total transparency,” he said.

REAL TIME DEMAND
Ryan Frazier, CEO of DataRank in Bentonville, is a Big Data analytic service firm for retailers and suppliers. He said many suppliers are using analytics gleaned from Big Data to better understand real time demand.

Frazier said the present system used in retail to track product from the warehouse to the shelf is largely managed by employees using a paper trail. He said companies like Movista have sprung up to offer better solutions by helping retailers and suppliers save money on implementing efficient data collection and delivery practices.

The Big Data evolution has three distinct stages at this point, according to Frazier. He said it’s a very broad term and analytics can help with visualization and grasping the relevant information. He said knowing what is occurring is step one. Next, he said Big Data is typically used in forecasting demand with predictive and proactive analytics. The final stage is working with different “levers” to manipulate and make changes in real time data to obtain desired results.

Frazier and Baumann agreed that it’s important to find the right partners to work with in the Big Data space because being able to make changes in real time requires fast analysis. Frazier said moving from step two to step three is cumbersome to do alone.

Going it alone can be cost prohibitive given the talent needed in terms of engineers and hardware servers to process the data. Frazier said as searches against the data are needed, high powered servers and tech savvy are essential.

TRANSFORMATIONAL CHANGES
Dhiraj Rajaram, CEO of Mu Sigma, also was one of the featured speakers at the recent supply chain conference. Rajaram said the information age requires one to think in terms of the decision supply chain, moving away from the physical supply chain.

Rajaram defined Big Data by saying it is data engineering, data science with applied technology and math then layered with business context to create a stack. 

“Big Data will both drive and require transformation from businesses,” he said.

Keith Mercier, global retail leader at IBM Watson, said the impact Big Data and social media are having on retail is transformational. He said Pinterest, a four-year old company that is a virtual bulletin board, has reshaped the fashion merchandising sector. A case in point is Nordstrom, he said.

“They know merchandising, as a 100 year-old company, and Nordstrom is modeling its own merchandising after a four-year social media site (Pinterest) with its Pinned Shoes campaign,” Mercier said.

Nordstrom features the shoes on its site in order of popularity noted by the number of pins or likes gleaned from crowd sourcing.

Chris Spear, the new chief of legislative affairs for the active American Trucking Associations’, has Arkansas connections and his former Arkansas boss says Spear “has the experience and the skills” to handle the “bigger-than-life personalities” in the trucking industry and in Washington, D.C.

He’ll need all the experience and skills he can muster. Ongoing work to draft a new federal highway bill, a push to adjust driver hours-of-service regulations and lobbying over other key issues for the trucking industry pushed Spear straight into the Capitol Hill legislative battles.

However, he’s not unfamiliar with the industry. Part of his trucking industry knowledge comes from his years lobbying for Arkansas issues, which included being aware of the governmental affairs positions of companies like Lowell-based J.B. Hunt Transport Services, Fort Smith-based ArcBest Corp. (formerly known as Arkansas Best Corp.), and Little Rock-based Maverick Transportation.

Spear, who has been with ATA for several weeks, served in 2000-2001 as legislative director for Arkansas issues with U.S. Sen. Tim Hutchinson, R-Ark.

Prior to joining the largest lobbying group that represents the U.S. trucking industry, Spear was VP of emerging markets and government relations for Honeywell. He also has worked as assistant Labor Secretary during the George W. Bush administration, and as a staffer for the U.S. Senate labor committee. He earned a bachelor’s and master’s degree from the University of Wyoming.

“Chris has a long career on Capitol Hill and in the federal government and we’re thrilled to have him as part of our advocacy team,” ATA President and CEO Bill Graves said in a statement. “Chris also brings a wealth of experience from the private sector which benefits our vital industry as we pursue our legislative priorities on Capitol Hill.”

Hutchinson told The City Wire he was not surprised Spear was hired for the high-profile job. In fact, he recommended to the ATA that Spear be hired.

“I lost a lot of good staffers to the Bush administration and Chris was one of the best,” Hutchinson said. “He’s got all the tools that I think you need for that position. He’s got Hill experience, obviously. ... He’s got relationships all over Congress. He’s well known and well respected.”

Hutchinson said he is confident Spear and “everyone at ATA certainly understands that Arkansas is pivotal” in the national trucking industry.

HOURS OF SERVICE ISSUE
Although the lobbying laundry list is long for Spear, his immediate priority is to help the industry convince Congress to adjust hours-of-service regulations implemented in June 2013.

“The goal of this rulemaking is to reduce excessively long work hours that increase both the risk of fatigue-related crashes and long-term health problems for drivers,” noted a statement from the federal Department of Transportation.

The rule reduces a driver’s average maximum allowable hours of work per week from 82 hours to 70 hours, a 15% reduction. The 15% reduction in the average maximum allowable hours of work based on the new rule results from the restrictions on the use of the restart period.” The DOT estimates that the new rule will boost annual trucking industry expenses by about $470 million, but said benefits from safety, driver health and other factors will produce an overall net economic gain of up to $280 million a year.

Officials in the trucking industry have said the rules do nothing to promote safety and instead merely drive up costs for the industry which are then passed on to consumers.

“The agency used logic that forcing break, rest, or driving periods at a particular time was a one size fits all proposition. Cardian rhythms and all types of fuzzy math were introduced by people that have never experienced being in a truck,” Greg Carman, president of Fort Smith-based Carman Inc. and a board member of the Arkansas Trucking Association, said in a December 2013 story on the issue.

Spear said the hours-of-service rules also are exacerbating a driver shortage in the industry.

“This is one our members want us to act on immediately,” Spear said of the rule, adding that “there are some unintended consequences with this rule. We’re not trying to roll back safety.”

One consequence is that the rules push drivers on the road at peak times instead of letting them drive at hours when the general public is not on the road, Spear said. He argues that is counter to the claim of federal regulators that safety is the focus. Spear said there is a “really receptive audience on the Hill” to modifying the rules, but he’s also realistic about Congressional action during a political season.

“This is a very dysfunctional environment in Washington and this is a mid-term election cycle, so there is not a lot that will get done,” Spear said.

FEDERAL HIGHWAY BILL
He also said the dysfunction is likely to stall approval of a new long-term federal highway bill. Approval of a new bill is critical for many reasons. The Department of Transportation estimates the highway account of the Highway Trust Fund will run out of money by the end of fiscal year 2014. Also, state governments may have to delay projects if they aren’t certain that federal highway dollars will be available to support project completion.

Also, proposed highway bill language includes changes in how the trucking industry may be taxed to support funding of national infrastructure improvements. Spear said the industry is open to user fee increases and other revenue possibilities, but would like to know specifics in order for the industry to have a better understanding of future expenses.

MAP-21, the highway legislation now used, was approved in June 2012 after almost three years of Congress approving short-term extensions of the previous law before enacting new authorization.

Spear said he is eager to return to Arkansas for a visit.

“I hope so,” Spear said when asked if he would soon have time to visit trucking industry officials in Arkansas. “I traveled all four corners and just really enjoyed the state. It’s very diverse and I really enjoyed the people. ... I want to talk directly (to industry leaders in Arkansas). That is the best way those of us in Washington can help the industry is to go to where they are.”

He's polling more than 30% above his opponent and many analysts believe the May 20 primary will be an easy victory for Arkansas House Majority Leader Bruce Westerman, who is fighting a challenge from political newcomer Tommy Moll in the Republican primary for 4th District congressman. But he is not taking anything for granted.

Westerman has criss-crossed the expansive district in recent weeks, most recently appearing at a candidate forum in Hot Springs Monday (May 12) before hitting the road and appearing at another candidate forum Tuesday (May 13) in Fort Smith – a region now on the edge of the newly-redrawn 4th District.

And for anyone who does not know Westerman, it does not take long for the Hot Springs native to explain his conservative values and Baptist beliefs. He shares his belief in limited government, low taxes, balanced budgets, limited government assistance and the evils of the Affordable Care Act.

Regarding the ACA, Westerman immediately took aim at his opponent for a television ad that asserts that Westerman supported Obamacare. According to a Moll campaign website, Westerman twice supported legislation that would have expanded Medicaid coverage in Arkansas.

Westerman said not only did he not support Obamacare during his time in the General Assembly, but he said many of his legislative colleagues have come to his defense, including House Minority Leader Greg Leding, D-Fayetteville, who defended Westerman in a recent Arkansas Democrat-Gazette article in spite of the fact that both men generally fall on opposite sides of the ideological spectrum.

"They started chirping about this last year, so we wrote a letter from my campaign that not only says I was opposed to Medicaid expansion and Obamacare, but I was the leading opponent of it in the legislature and I had 19 legislators — House and Senate — sign it and could have gotten 20 or 30 more if I wanted to spend the time going around trying to get them to sign it. Apparently the only people who believe I supported Obamacare are Tommy Moll and his campaign team."

In an e-mail, Peter Somerville, Moll's campaign manager, reasserted the campaign's position that Westerman had introduced legislation to implement Obamacare at the state level.

"The public record is clear: Bruce Westerman has sponsored two different bills that would implement ObamaCare in Arkansas. To this day, he has not withdrawn his support for a bill that would implement ObamaCare by adding about 250,000 Arkansans to government-subsidized health insurance (House Bill 1965). Only one candidate has always opposed ObamaCare: Tommy Moll."

Westerman also took time to discuss the May 9 ruling by Pulaski County Circuit Judge Chris Piazza that overturned Arkansas' ban on gay marriage, saying it was likely time for an amendment to the United States Constitution defining marriage as between one man and one woman, versus the invalidated Defense of Marriage Act passed during the Bush administration that the U.S. Supreme Court said was unconstitutional. He said a federal Constitutional amendment was the only way to limit a move of the U.S. Supreme Court, which could affirm Piazza's ruling or any of the other rulings across the United States that have overturned statewide gay marriage bans.

"Again, we've got an overreaching federal government that wants to take that out of control of the states…so I would support a federal marriage amendment. I wish the federal government would just stay out of it and just let each state decide that, but that's obviously not what's happening. We saw where one judge overturned the will of 75% of the voters in this state and it wasn't even a federal judge. So yeah, I would support a federal marriage amendment if we need to do that."

He said a firmed up marriage definition was necessary to prevent possible future attempts to expand marriage definitions in the eyes of the government and society.

"You're opening up Pandora's box when you start redefining marriage as anything you want to call it," Westerman said. "Is that two men? Two women? Is it three men and four women? I've been reading where people have been trying to marry their animals now. You know, marriage was ordained long before the United States government was established and we need to protect the sanctity of that, which also protects families in this country."

The Farm Bill is another issue Westerman touched on, saying U.S. Rep. Tom Cotton, R-Dardanelle — who is not seeking re-election in the 4th District in order to challenge U.S. Sen. Mark Pryor, D-Ark., in his Senate re-election — was justified in voting against the final version of the bill that passed both houses of Congress and was signed into law by President Barack Obama.

"The problem with the current Farm Bill is it is a food stamp bill with a little bit of farm policy in it. And Tom was justified in saying we need to break the Farm Bill apart, vote on the food stamp program and vote on the ag policy separately."

Asked whether he would vote for the current version of the Farm Bill, Westerman declined to give specifics and instead said he would work to create a better Farm Bill should he win the general election in November.

"I want to work for solutions. Now I don't know what will be in the Farm Bill the first time I have to look at it, but I know I've got the courage to do what's right and vote on what's going to be best for the 4th District of Arkansas. And I can analyze the data and make an informed decision on what's in the Farm Bill at the time I'm presented with it."

The winner of Tuesday's (May 20) primary will face former Federal Emergency Management Director James Lee Witt in the November general election.

When Kyle Parker recently said progress was “moving quickly” on the establishment of a $58 million medical college in Fort Smith, he wasn’t kidding. The Arkansas Colleges of Health Education announced Wednesday (May 14) that Dr. Ken Heiles would be the dean of the college and that work to open the college for the first cohort of students could happen a year earlier than planned.

Parker, the president and CEO of the Fort Smith-based Arkansas Colleges of Health Education, said Heiles and wife Michelle are expected to be in Fort Smith on Thursday to look for homes. Heiles officially begins the job on June 1.

“I am very excited for the opportunity to help shape the future of the proposed College,” Heiles said in a statement from the ACHE. “This will be a tremendous asset to Western Arkansas and the entire state and make great strides in helping fill the need for medical professionals. My family and I look forward to becoming a part of the Fort Smith community.”

Heiles has been the associate dean of Graduate Medical Education at Lincoln Memorial University-DeBusk College of Osteopathic Medicine in Harrogate, Tenn. He is the current American College of Osteopathic Physicians Chair of the Committee on Education and Evaluation, past president of the Board of Governors, and also serves on the Bureau of Osteopathic Graduate Medical Education and Development. Prior to that, he served as the director of Medical Education of the Osteopathic Family Practice Residency Program, was responsible for the Family Practice Residency Program and a member of the full-time clinical faculty at the University Arkansas for Medical Sciences/AHEC in Pine Bluff, Ark.

“After interviewing multiple individuals from across the United States, we were able to get one of the most respected and influential deans at both the state and national levels. He’ll be instrumental in developing graduate medical education in and for both the state of Arkansas and the nation,” Parker said in the statement.

A fully operational osteopathic college is expected to serve about 600 students, and employ around 65 (full-time equivalent jobs) with an average salary of $103,000. That impact does not include adjunct professors that will be needed for the school. The school, to be located on Chaffee Crossing land (200 acres) donated by the Fort Chaffee Redevelopment Authority, was previously targeted to accept its first cohort of students in the fall of 2017. However, Parker said the hiring of Heiles and the planned submission in July of a feasibility study to the Commission on Osteopathic College Accreditation could result in construction beginning in early 2015 with the college opening in fall 2016.

“The key to that (opening early) is going to be hiring the faculty, and with the reputation of Ken Heiles, we feel very strongly that we can get that done,” Parker said.

Heiles’ hiring was praised by the regional medical community.

“Dr. Heiles’ hiring accelerates the process of setting up the curricula and the onboarding of faculty simultaneously with the construction of the building to start the College,” noted Dr. Cole Goodman, president of Mercy Clinic Fort Smith. “Dr. Heiles as Dean of the Osteopathic College is a major step in making the proposed COM a reality. Speaking as a physician and an administrator, we couldn't have asked for a better hire for the proposed College.”

In addition to Mercy Clinic, Fort Smith-based Cooper Clinic, Sparks Health System in Fort Smith and Summit Medical Center in Van Buren, will be some of the area medical facilities working with the college to provide residency opportunities.

There are 30 colleges of osteopathic medicine (COMs), offering instruction at 40 locations in 28 states. There is not an osteopathy school in Arkansas. Should the development of an osteopathic school in Fort Smith happen, it would be a private, non-profit institution and not dependent on continuous public funds from the state.

Heiles graduated from the Philadelphia College of Osteopathic Medicine in 1984 and completed his internship and residency at hospitals in Pennsylvania. He received the Distinguished Service Award from the American College of Osteopathic Family Physicians in 2013. He was also named the Arkansas Family Physician of the Year in 1993 and the Physician of the Year by the Arkansas Osteopathic Association in 2010.

“The selection of Dr. Heiles as our dean is a key step toward the opening of the proposed Arkansas School of Osteopathic Medicine,” John Taylor, board chair of the Fort Smith Regional Healthcare Foundation, said in the statement. “Dr. Heiles credentials are second to none. He has practiced previously as a physician in a rural area of Arkansas and served at the top levels of medical training and education. We say welcome home to Dr. Heiles and we look forward to an exciting mission together.”

Heiles’ hiring was well received in the osteopathic community.

“It is with great Osteopathic pride that we celebrate the selection of Arkansas’ favorite son Ken Heiles, D.O. as Dean, Arkansas College of Osteopathic Medicine. He is one of our own who has practiced and help train physicians in our state prior to being selected for this esteemed position.”
– Jim Zini, D.O., American Osteopathic Association Past President

“The ACHE couldn't have found a better leader to foster Arkansas' future physician workforce. We, as an association, have full confidence that Dr. Heiles will give his medical students the tools they need to address our state's healthcare demands. Dr. Heiles has a proven track record of being on the forefront of educating osteopathic medical students and establishing high quality graduate medical education sites. We proudly welcome home a nationally recognized osteoapthic leader and native son.”
– James Baker, D.O., Arkansas Osteopathic Medical Association president

“The Arkansas Osteopathic Medical Association (AOMA) is thrilled with the ACHE's hire of Dr. Ken Heiles. The AOMA and the ACHE share a mission for advancing our state's dynamic health care needs through advancing osteopathic education and outreach. As a Past-President of the AOMA, we know that Dr. Heiles shares this same vision and will work towards establishing a school founded upon the highest standards of osteopathic education.  Our association continues to wholeheartedly support the ACHE's efforts as they continue to pursue excellence in education with the announcement of the new Dean.”
– Frazier Edwards, executive director, AOMA

An area of highly contaminated soil at the former Whirlpool manufacturing facility has the company's environmental consultants proposing not just chemical oxidation treatments, as previously approved by the Arkansas Department of Environmental Quality, but removal of soil contaminated by potentially cancer-causing trichloroethylene (TCE).

And while the information is just coming to light, ADEQ said Whirlpool and its consultants knew about the contamination at Whirlpool’s former Fort Smith manufacturing operation even as it was presenting a remediation plan to the agency late last year and early this year.

In an April 24 memo, officials with ADEQ detail a telephone call with Project Manager Mike Ellis of ENVIRON, the firm Whirlpool hired to handle remediation efforts at its site following disclosure of TCE contamination, in which Ellis said his company had identified "an area of highly impacted soils to as deep as 25' - 30' have been located at the northwest corner of the Whirlpool building ... "

According to Ellis, ENVIRON believed the location was likely the source of groundwater contamination that has spread to the neighborhood north of the shuttered factory “and as such requires source removal,” he said. The process for removing the contaminated soil will require boring into the ground, Ellis told ADEQ, with the focus shifting from the chemical oxidation treatments approved in the company's remediation plan to "source removal."

"They want to focus on source removal and have bioremediation of groundwater become secondary until the source is removed," the memo read. "They are still planning to inject into the one injection point in Area 1."

Ellis also notified ADEQ that "a large quantity of contaminant mass (is) moving to the South." The memo also said drilling to remove the contamination "will generate high volumes of highly contaminated soil and groundwater that will require management."

In addition to the northwest corner of the Whirlpool building, the memo said contaminated soils were also found to the west and south corner of the closed factory, as well as areas under the manufacturing building.

It is unknown what impact the change will have on the remediation plan approved earlier this year, though the memo said, "In either case, the schedule for groundwater remediation in Area 1 will be impacted."

In discussing the revelations from Ellis, ADEQ said it would have to sign off on future actions taken at the site before such actions are taken.

"Although Whirlpool collected this MIP data 4-5 months ago, no discussion of the results or ramifications of this data was supplied to ADEQ," the memo continued. "MIP data is presented in real time. Whirlpool certainly knew that this area was impacted prior to submitting the final Remedial Plan at the end of February."

At a quarterly meeting between ADEQ and ENVIRON held via conference call Monday (May 12), ADEQ requested Whirlpool provide the following to speed up removal of impacted soils:
• Within 15 days, Whirlpool should submit a soil investigation work plan for the newly-discovered area of contamination;
• The work plan "should include proposed boring locations, depths, sampling protocol and a proposed analytical suite. A schedule should also be presented."
• Whirlpool should provide ADEQ with any information is receives "from the analytical laboratory."

In a letter to Whirlpool from Technical Branch Manager Jay Rich of the ADEQ Hazardous Waste Division, Rich said the company should propose an amended remedy for the contaminated area should lab analysis confirm the disclosed data discussed in April.

"Since a remedy for AOC 1 is already in the Remedial Action Decision Document (RADD), the RADD may need to be amended based on the findings of the investigation," he wrote.

The Arkansas Supreme Court denied a state of Arkansas request for a stay in a ruling that struck down Arkansas’ ban on same-sex marriages, but the court’s order created more confusion.

Attorney General Dustin McDaniel requested a stay from the state’s high court after Pulaski County Circuit Judge Chris Piazza apparently struck down Arkansas’ ban on same-sex marriages last Friday.

The case challenges a statute passed in 1997 and a constitutional amendment to the Arkansas Constitution, approved by voters in 2004. Both exclude same-sex couples from marriage and forbid the state from recognizing same-sex marriages from other jurisdictions.

The case, Wright v. Arkansas, is one of several Arkansas cases and resembles suits in other states. Seventeen states and the District of Columbia allow for same-sex marriages, while 33 states currently prohibit the practice.

“Motion to dismiss appeal granted without prejudice; motion for emergency stay denied,” the Supreme Court said in a seven-page order.

Initial interpretation of the Supreme Court’s denial of stay suggested that counties may proceed issuing marriage licenses for same-sex couples while the court considers further legal action. However, legal experts contacted by Talk Business & Politics say the Supreme Court ruling claims that technically Judge Piazza never issued a final order in the case and did not address the state statute that prohibits county clerks from issuing marriage licenses to same-sex couples. That interpretation could mean that clerks never had the final court authority to issue same-sex marriage licenses after Piazza’s decision was handed down.

The Supreme Court may have invalidated all marriage licenses issued since this weekend was the consensus of two legal experts. A third expert indicated that all scenarios are still in play, but that Judge Piazza’s final ruling — which has not been issued — could help clarify technical legal issues for the court.

A fourth legal expert suggested the high court could be buying time to build more consensus among colleagues for a decision in the case. He noted that a stay is typically issued when there is a strong chance a legal body may overturn a decision. Corbin’s and Danielson’s concurrence opinions, in which they said they would have rejected the stay request, suggests that they may support upholding the Piazza decision.

VOTER ID RULE
The Arkansas Supreme Court also struck down a lower court ruling that the Arkansas voter ID law was unconstitutional. The controversial measure that requires voters to provide photo IDs in many instances was overturned as unconstitutional by Pulaski County Circuit Judge Tim Fox two weeks ago.

In the case considered, Fox had issued his ruling related to the handling of absentee ballots. But Fox went beyond that central point in the case by declaring the full law as unconstitutional.

The Supreme Court said Fox did not have the authority to consider the constitutionality of the voter ID law in his decision. However, Fox has also ruled the law unconstitutional in another case that came before him that did seek a determination on the law’s legal merits. An appeal of that case is still pending before the court.

JUDICIAL QUALIFICATIONS

In a separate case hoping to provide clarification on the qualifications of judicial candidates, Kelly v. Martin, the Arkansas Supreme Court ruled that candidates whose licenses were briefly suspended for late payments of annual dues are eligible for election. The case actually centered on Judge Tim Fox’s eligibility after he was late last year in paying his annual legal license dues. The plaintiffs argued that Fox — and potentially other delinquent payers — had not met a threshold of being a “licensed attorney” for six years prior to being elected.

In a divided court opinion, the majority said that the lower court ruling was invalid. The majority of justices relied on the interpretation of phrases such as “suspension,” “disbarment,” and “reinstatement” to render its finding.

“Accordingly, we conclude that, under amendment 80, even though Judge Fox failed to pay his annual license fee for forty-five days in 2013, he nevertheless remained a licensed attorney during the period of delinquency because his license was not terminated and his name was not removed from the list of licensed attorneys,” Justice Jospehine Hart wrote for the majority.

Another case, Chandler v. Martin, also addressed a similar situation involving Faulkner County Circuit Judge H.G. Foster, who was declared eligible for the ballot.

The foreclosure train is slowing across the Natural State, particularly in Benton County, that once led in the number of distressed homes. Irvine, Calif.,-based RealtyTrac reports 389 foreclosure filings in Arkansas during April, down 38.8% from a year ago. 

In Northwest Arkansas there were 39 new filings in Benton County and 19 new filings in Washington County, down 67% and 71%, respectively, when compared to the year-ago period.

The Fort Smith metro area had just 17 new foreclosure filings last month, 14 of those were in Sebastian County and three in Crawford County. Filings plunged 33% and 78%, respectively, in the two counties from the same month in 2013.

States like Arkansas continue work through the remnants of foreclosures left over from the recent housing crisis, according to Daren Blomquist, vice president of RealtyTrac. He said inventory levels are low and the foreclosures coming back into the pipeline will provide some much-wanted inventory for investors and buyers looking for rehab projects.

Vicki Briolat, agent with Crye-Leike Real Estate in Bentonville, said there are 153 foreclosure homes listed for sale in the local Multiple Listing Service among the four counties referenced in this report. The number of local foreclosure listings have declined from 273 in February and they are down from 322 in December. 

“We are seeing very few new foreclosures come into the market, and inventory is very low now. Homes in good shape are selling fast,” Briolat said.

A recent report by the Federal Reserve Bank of New York found that 3.7% of mortgages were at least 90 days delinquent in the first quarter of this year. This is down from 3.9% in the fourth quarter of 2013. 

About 145,000 individuals had new foreclosure notations added to their credit reports in the first quarter, 12,000 fewer than the previous quarter. At the same time new mortgage originations dropped by $120 million in the first quarter.  

Mortgage debt totaled $8.17 trillion in the first quarter, growing by $233 billion from the prior year.

Across the nation, RealtyTrac said 115,830 U.S. properties in April were in the process of foreclosure, down 1% from the previous month and 20% lower than in  April 2013. The report also shows one in every 1,137 U.S. housing units with a foreclosure filing during the month.

APRIL FORECLOSURE NUMBERS
Benton County: 39 filings, down from 118 in April 2013
Washington County: 13 filings, down from 19
Sebastian County: 14 filings, down from 8
Crawford County: 3 fiilngs, down from 8
Arkansas: 389 filings, down from 338

Officials with Wal-Mart Stores Inc. said bad weather and a currency exchange rate were partially to blame for a comparable decline in net income in the first fiscal quarter and total revenue that was just 0.8% higher than the same quarter in 2013.

The Bentonville-based retailer reported per share net income for the first fiscal quarter of $1.11, below the consensus estimate of $1.15. The company earned $1.10 per share from continuing operations. Total revenue of $114.96 billion was up slightly over the $114.07 billion in first quarter of 2013 and was below the consensus estimate of $116.27 billion.

"Walmart's first quarter net sales increased 0.8% over last year. Like other retailers in the United States, the unseasonably cold and disruptive weather negatively impacted U.S. sales and drove operating expenses higher than expected," Wal-Mart President and CEO Doug McMillon said in the earnings report released early Thursday (May 15).

Charles Holley, chief financial officer, said weather dinged net earnings some 3 cents per share in the quarter. Weather-related expenses included snow removal costs and the hiring of third party logistics services as a result of the major log jam in the supply chain from manufacturers to the distribution centers.

Bill Simon, CEO of Walmart U.S. said, the supply chain backlog created during several winter storms was the worst he has seen during his time at Wal-Mart. He said third party logistics were required to get the stores restocked quickly as there were delays from manufacturers. He said the 200 stores temporarily closed added to the weaker numbers.

The company said revenue took a $1.6 billion hit because of a currency exchange rate fluctuation. The company also paid $1.5 billion in the quarter to acquire “substantially all” of the outstanding shares in Walmart Chile.

Consolidated net income attributable to Wal-Mart was $3.6 billion, a decrease of 5%, related to higher core costs. Wal-Mart said it spent $53 million in compliance costs related to the Foreign Corrupt Practices Act. Approximately $34 million of that was linked to ongoing inquiries and investigations, and approximately $19 million was related to the retailer’s global compliance program and organizational enhancements. 

WALMART U.S.
The flagship sector, Walmart U.S. continues to feel pressure from weaker U.S. comp traffic, down 1.4% in the quarter, despite a 1.3% uptick in the average shopper ticket. This marks the fifth consecutive quarter of negative to flat comparable sales, the benchmark metric used to measure retail performance.

Overall, net sales totaled $67.852 billion at Walmart U.S., up 2%, led by strong results in grocery.

“We feel good about the underlying business and are pleased with the performance of Neighborhood Markets which recorded comp sales of roughly 5% and traffic increases of 4% in quarter,” Simon said during a media call. "We saw strength across food and health & wellness, and we're particularly pleased with our overall traffic trend. April marked the 46th consecutive month of positive comps for Neighborhood Market.”

He said as inflation has risen in meat and dairy, Walmart has been able to hold prices steady which has helped it gain marketshare in these categories. Simon said ticket averages are rising at its supercenter format, while traffic is heavier at the smaller formats.

Wal-Mart plans to offer its gas savings rollback program next month, an initiative that typically runs throughout the summer for customers who pay for their fuel purchases with a Walmart giftcard or store credit card. 

Going forward, Simon said the retailer will continue working to bring its e-commerce and physical stores into sync to provide a more seamless process for shoppers. The first fully tethered Walmart Express came online in North Carolina this month. Simon said shoppers may now stop to buy fuel at a Neighborhood Market and pick up a bicycle ordered online a hour earlier.

He is also excited about the new online grocery format coming to Bentonville. Simon explained that this concept depot is similar to other formats in its ASDA banner in the U.K., but it’s different in that the Bentonville center will be a wholesale warehouse where items are picked and packaged on site. He said orders placed online can be picked up an hour or 90 minutes later. Construction is already underway on this new format which is slated to open later this year.

A bright spot in the earnings came from the retailer’s e-commerce segment which grew sales by 27% in the quarter. On a comparable basis online sales rose 0.3% from a year ago. 

Walmart said its seeing double-digit sales growth from nearly all of its e-commerce and mobile commerce businesses around the world. Brazil e-commerce and Yihaodian in China continue to experience strong demand.

"We have the opportunity to create transformative growth through stronger e-commerce capabilities," McMillon said in the statement. "Our investments are focused on improving customer experience and fulfillment capacity. We're working to deliver a relevant, personalized and seamless customer experience across all channels to further grow sales."

INTERNATIONAL IMPROVEMENT
Walmart’s diverse international division has been working to rein in operating costs over the past few quarters. In the first quarter Walmart International reported total revenue of  $32.424 billion, down 1.4% including currency fluctuations. On a constant currency basis revenue was $34 billion, up 3.4% from a year ago. Operating income in the segment rose 3.4% to $1.202 billion.

“Our teams are executing key strategic initiatives and driving sales growth, while serving customers wherever and however they want to shop," said David Cheesewright, president and CEO of Walmart International. "We delivered on our commitment to grow operating income at a rate greater than sales, both reported and excluding currency."

The segment’s total results were negatively impacted by restructuring taking place in China and Brazil, two of its larger international markets.

SAM’S DISAPPOINTS
Once the shining star of the Wal-Mart portfolio, Sam’s Club has lost some of its luster and reported comp sales down 0.2%, while the average ticket down 0.3%. Net sales were $13.891 billion at Sam’s Club (including fuel), up just 0.1%.

“The fiscal year started with several challenges for our core member, resulting in one of our more difficult quarters. The combination of severe weather and the reduction of public assistance represented an approximate 90 basis point impact to comp sales,” said Rosalind Brewer CEO of Sam’s Club.

While traffic and average ticket sales declined in the quarter, membership and other income grew 10.5%. This jump was related to the fee increase taken a year ago. Sam’s said new member signups were softer to start fiscal 2015.

To spur more spending Sam’s is rolling out a cash back rewards initiative next month. This new benefit provides $10 for every $500 spent on qualifying purchases. All members will continue to receive Instant Savings offers; however, the benefit of cash rewards will be exclusively for Plus members, the company said.

This cash rewards plan has been tested in the Texas market with positive results. It is now being rolled out nationwide.

FORWARD LOOK
The company expects second fiscal quarter financials to be similar to those in the same quarter of 2013.

"We expect second quarter fiscal year 2015 diluted earnings per share from continuing operations to be between $1.15 and $1.25. This compares to $1.24 last year," Holley said. "Our guidance assumes incremental investments in e-commerce, headwinds from higher health care costs in the U.S. and increased investments in Sam's Club membership programs. We continue to expect our full-year effective tax rate to range between 32 and 34 percent. We expect our effective tax rate to be at the high end of this guidance for the second quarter."

Jan Kniffen, CEO of J. Rogers Kniffen Worldwide CEO, said Wall Street knows the first quarter was bad, but what it is looking for from retailers reporting earnings today and tomorrow is that the first six weeks of this quarter has been better and they are expecting a strong half of the year.

That is not what Wal-Mart or Kohl’s projected in their Thursday announcements, with both gave cautious guidance. Simon said their shopper base is still struggling to overcome stagnant wages.

Street.com analyst Jim Cramer said it’s not that Wal-Mart has lost its way, and it’s also not that Wal-Mart is merely a play on the low-end consumer woes like food stamps and government stimulus, but it’s also a realization that consumers are shopping elsewhere.

Negative traffic despite the company's investments is “very reflective in how people are now shopping and the company not being able to fully play in that trend,” said Brian Sozzi, CEO of Bellus Capital Advisors. He also notes that five consecutive “earnings warning” is an indication Wal-Mart continues to face “deep” issues. 

Wal-Mart shares fell 2.5% in the morning session trading at $76.83, down $1.90 on the day. During the past 52 weeks the share price has ranged from an $81.37 high to a $71.51 low.

Seeking Alpha contributor Brian Gilmartin notes that Wal-Mart is fairly valued at $80, given its ability to generate cash which it’s returning to shareholders in dividends and stock buybacks.

He said Wal-Mart’s long-term challenge is to grow revenues at something more than "low single-digit" percentages in an environment where GDP grows 2% (maybe) per year, and inflation persists at 1% to 1.2% per year.

To paraphrase former President Gerald Ford, "Our long nightmare is (almost) over."

According to District 4 Engineer Chad Adams of the Arkansas Highway and Transportation Department, the more than $70 million Interstate 540 rehabilitation project is nearing completion with anticipation of all north and southbound lanes expected to be open for traffic within four weeks.

Adams said there is still work to be done, but portions of now-closed lanes should begin to re-open as early as the next 10 days.

"They (the contractors) have a few items left for us to be able to call the job substantially complete," he said.

The items are far from large, with mostly guardrail, wire safety barriers and seeding still to be finished.

"It's all real minor, but it's stuff that we require them to get done before we call it substantially complete," he said. "Once that is all finished, which we expect is a week and a half — we thought we'd be done this week, but we've had some rain, so now we're looking at a week and a half from now — once that is complete, we'll begin removing barrels and opening to two lanes."

While portions of the lanes will re-open within 10 days, the slow down has turned out to be the Arkansas River bridge that separates Van Buren and Fort Smith.

Adams said since the rehabilitation project started on Jan. 28, 2013, the bridge has developed potholes which will need to be patched before all lanes along the eight-mile stretch of construction can be re-opened.

He said drivers will notice at least one lane closed in each direction from Interstate 40 to the end of the river bridge.

During the time that crews are working on the bridge's potholes, Adams said signs that stretch over the interstate at its interchange with I-40 will be corrected to no longer show I-540 continuing to Fayetteville. The signs will remove all references to I-540 North and Fayetteville, instead replacing the markings with a simple reference to I-40 East and listings for Little Rock and Memphis, he added.

Once all lanes are re-opened in the next month, Adams said drivers should not be surprised to see work crews continuing work on lights and other items along the interstate, he said, though any additional work should be able to be completed without closing anything more than the shoulder of the interstate.

Crawford County posted its first drop in real estate sales for the year, while Sebastian County posted its largest increase so far for the year. But according to one real estate agent, observers and analysts should not read too much into a single month's real estate sales.

For the month of April, Crawford County posted only $4.4629 million in sales on 44 homes, a 9.98% drop from the previous April's total of 50 homes at $5.142 million. Sebastian County, on the other hand, saw 120 homes sold at $14.158 million, posting a 25.76% increase over April 2013's sales of 96 homes for $11.258 million.

Kevin King, principal broker and owner of Weichert Realtors King Realty Group in Fort Smith, said analyzing a single month's numbers only tells a small part of the real estate story and said a review of a full quarter or a full year's numbers would give more insight into what was happening in the market.

For the first four months of 2014, Crawford County posted a 34.96% increase in sales over the same period in 2013, with 176 homes sold for $18.997 million in volume versus last year's sales of 136 homes for only $14.076 million. The same period saw Sebastian County with 376 homes sold at $48.610 million, a 7.28% increase over 2013's sale of 343 homes at $45.313 million in volume.

When it comes to the increase for both counties, King said it could be attributed to different factors. In the case of Crawford County, the driving force behind its growth continues to be the USDA's Rural Development Loan Program, which was at risk of expiring before Congress ultimately passed a Farm Bill that secured additional longer-term funding for the program.

He said rural development loans often drive people to Crawford County instead of rural parts of Sebastian County.

"For whatever reason, Van Buren is their first choice to do that RD loan," he said. "It's the next biggest city they can live in and use that rural development loan."

In addition to the rural development loans driving traffic in Crawford County, King said another factor in improving Sebastian County's sales could be the shift in seasons.

"The only thing I can think of from our perspective is we were slowed down the early part of the year because of the weather. There were several days where we couldn't even show."

With the weather improved, Sebastian County's numbers are on the rise.

As far as what types of homes are selling, King said the market has seen a large number of investors.

"About a third of our traffic is attributed to investors buying the lower-end housing," he said, adding that difficulty for individuals seeking mortgages is helping to drive more investors to gobble up available inventory.

"In a market where it's hard to get approved and rentals are in high demand, it helps (to have investors will to purchase)."

Even so, King said the market is still unbalanced with a lot of sellers, but very few buyers. But he said that should begin to change as the year advances.

"I think we're still a bit unbalanced with too much inventory and not enough buyers, but as we get more job announcements, I think that will help. The more balanced the market gets as far as buyers and sellers, it will help."

Home Sales Data (January - April)
• Crawford County
Unit Sales
2014: 176
2013: 136

Total Sales Volume
2014: $18.997 million
2013: $14.076 million

Median Sales Price
2014: $91,800
2013: $101,900

• Sebastian County
Unit Sales
2014: 376
2013: 343

Total Sales Volume
2014: $48.611 million
2013: $45.313 million

Median Sales Price
2014: $116,500
2013: $109,900

Pulaski County Circuit Judge Chris Piazza on Thursday (May 15) clarified his May 9 ruling that struck down Arkansas’ ban on same-sex marriage, and he also rejected a request by the Arkansas Attorney General to stay his ruling.

Arkansas voters in 2004 approved Amendment 83 which legally defined marriage as between one man and one woman. The language, which was approved by 74.9% of those voting in the 2004 general election, makes it unconstitutional for the state to recognize or perform same-sex marriages or civil unions. Legal status for unmarried persons which are identical or substantially similar to marital status shall not be valid or recognized in Arkansas, except that the legislature may recognize a common law marriage from another state between a man and a woman.

Piazza’s May 9 ruling also invalidated a 1997 Arkansas law restricting same-sex marriage rights.

“There is no evidence that Defendants, the State or its citizens were harmed by the entry of the Court's original order or that they will be harmed by the clarifications contained within the Final Order and Rule 54(b) certification,” Piazza noted in the ruling he issued Thursday afternoon. “However, the same cannot be said of the Plaintiffs and other same-sex couples who have not been afforded the same measure of human dignity, respect and recognition by this state as their similarly situated, opposite-sex counterparts. A stay would operate to further damage Arkansas families and deprive them of equal access to the rights associated with marriage status in this state.”

A Fox News report indicated that Pulaski County officials planned to issue same-sex marriage licenses after Piazza’s ruling. It is unclear if county clerks in the Northwest Arkansas and Fort Smith areas will do the same. Prior to Thursday and Piazza’s updated ruling, the clerks in Benton, Crawford and Sebastian counties were not issuing licenses.

"I have consulted with Daniel Shue, Sebastian County Prosecuting Attorney, who has advised me with regard to the legalities of this very important matter. The ruling from the Third Division Court of Pulaski County is not binding on my office, and I will await the decision of the Supreme Court of Arkansas,” Sebastian County Clerk Sharon Brooks recently said.

Piazza’s ruling Thursday was followed by a notice from the Arkansas Attorney General’s office to appeal Piazza’s ruling to the Arkansas Supreme Court.

Washington County, one of the named defendants in the case in which Piazza ruled, did begin issuing marriage licenses to same-sex couples on May 12. On that Monday, Washington County issued 83 licenses, with 80 of those for same-sex couples.

The Human Rights Campaign, a group active in Arkansas to push for same-sex marriage rights, said Piazza’s ruling should remove any reasons to not issue licenses.

"No procedural obstacle should stand between committed and loving gay and lesbian couples in Arkansas and their constitutional right to marry,” Human Rights Campaign President Chad Griffin said in a statement. “I'm confident that as this case moves forward, the Arkansas Supreme Court will keep faith with the spirit of Judge Piazza's ruling and the fair-minded values that my home state holds dear."

UPDATED INFO:Sen. Jason Rapert, R-Conway, is pushing an interim legislative resolution that seeks to push back against Piazza’s ruling and encourage the Attorney General’s office to “vigorously defend” Amendment 83.

Of the 40 lawmakers who have signed on to the resolution, 15 are Republican State Senators, 20 are GOP House members and 5 are Democratic House members. Speaker-designate Rep. Jeremy Gillam, R-Judsonia, is one of the Republican House members in support of the resolution, according to this report at Talk Business & Politics.

Of those on the resolution filed by Rapert, 12 are House and Senate members from the Fort Smith and Northwest Arkansas areas. They are: Sen. Cecile Bledsoe, R-Rogers; Sen. Jake Files, R-Fort Smith; Sen. Jim Hendren, R-Gravette; Sen. Bart Hester, R-Cave Springs; Sen. Bruce Holland, R-Greenwood; Sen. Gary Stubblefield, R-Branch; Sen. Jon Woods, R-Springdale; Rep. Bob Ballinger, R-Hindsville; Rep. Jim Dotson, R-Bentonville; Rep. Charlotte Douglas, R-Alma; Rep. Jon Eubanks, Paris; Rep. Justin Harris, R-West Fork.

Rapert’s resolution asks the Arkansas Legislative Council to “explore legislative remedies to prevent the Arkansas Constitution and the will of the people of this state from being negated by judicial activism which violates the separation of powers ensured in our form of government.”

The resolution also notes that “marriage between one man and one woman is the building block upon which our society is based,” and that the “power to regulate marriage is a power reserved to the people that lies within the domain of state legislatures and not with the courts.”

As to Piazza, the resolution notes that his “decision is in direct contradiction to his oath to uphold the Arkansas Constitution and the overall right of the State of Arkansas to declare policy on such matters.”

Link here to see the resolution.

Also on Thursday, the University of Arkansas system said same-sex couples would be eligible for the system’s medical benefit plan. A memo, first published by Arkansas Times, noted: “... with respect to the University’s medical benefit plan, any same sex couple in Arkansas or married in another state recognizing same sex marriage shall be eligible for coverage under the plan unless the Circuit Court’s decision is stayed by the Arkansas Supreme Court. Same sex couples married in Arkansas before such stay shall be entitled to participate in the University’s plan unless the stay order addresses this issue to the contrary. Eligibility for the University’s other benefits depending upon marital status shall be examined on a case by case basis but it is likely that such benefits would be granted to a same sex married couple.”

Many large companies with operations in Arkansas, including Bentonville-based Wal-Mart Stores Inc., have already opened up their benefit structures to same-sex couples. In August 2013, Wal-Mart officially expanded the parameters of its company benefit package to include spouses of full-time employees and domestic partners. At the time, Wal-Mart Wal-Mart joined 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.

Arkansas’ jobless rate during April fell to 6.6% thanks to an estimated increase of 7,762 employed Arkansans and a more than 12% decline in the number of unemployed. However, the state’s labor force size continues to decline and remains well below pre-recession levels.

The April rate of 6.6% was below the March rate of 6.9% and below the April 2013 rate of 7.5%, according to the report issued Friday (May 16) by the U.S. Bureau of Labor Statistics. The April figures are subject to revision.

Year-over-year, the state’s tourism sector gained an estimated 3,200 jobs, the Trade, Transportation and Utilities sector was up 1,400 jobs, the Education and Health Services sector was up 1,500 jobs, and the construction sector was up 1,900 jobs.

Arkansas’ labor force was an estimated 1.322 million in April, below the 1.33 million in March, and down 0.33% compared to 1.367 million in April 2013. The year-over-year comparison shows an estimated 4,474 fewer Arkansans in the labor force. There are 39,959 fewer Arkansans in the labor force compared to April 2007, a decline of almost 3%.

Greg Kaza, director of the Arkansas Policy Foundation and an economic researcher, welcomed the job growth, but said ongoing shrinkage in the labor force is a problem.

“Arkansas' unemployment rate continues to fall as the U.S. expansion enters its sixth year next month (June). The civilian labor force's decline is troubling for this stage of the business cycle, and should be a subject for further inquiry,” Kaza said in a statement.

The number of employed in Arkansas during April was 1.235 million, below March employment of 1.238 million, and up an estimated 7.762 jobs compared to the 1.227 million in April 2013.

The number of unemployed was an estimated 86,726 during April, down from the 91,773 in March, and well below the 98,962 in April 2013.

Arkansas’ annual average jobless rate fell from 7.9% during 2011 to a revised 7.5% during 2012. The initial annual average jobless rate for Arkansas during 2013 is 7.5%.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during April was an estimated 242,700, down from 243,600 in March and ahead of the 241,300 during April 2013. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during April totaled 154,500, up compared to 153,900 in March and above the 152,500 in April 2013. Employment in the manufacturing sector fell in 2013 to levels not seen since early 1968. Peak employment in the sector was 247,300 in February 1995.

Government job employment during April was 215,800, up from 215,300 in March and below the 215,900 during April 2013.

The state’s Education and Health Services sector during April had 173,500 jobs, down from the 173,800 during March and up from 172,000 during April 2013. Employment in the sector is up more than 22% compared to April 2004.

Arkansas’ tourism sector (leisure & hospitality) employed 107,800 during April, down from 109,100 during March, and above the 104,600 during April 2013. The March employment level set a new record for the sector.

The construction sector employed an estimated 47,600 in April, up from 47,500 in March and above the 45,700 in April 2013. The sector is off the employment high of 57,600 reached in March 2007.

NATIONAL, REGIONAL DATA
The BLS report also noted that 47 states had unemployment rate decreases from a year earlier, and one state had and increase and two states had no change. The national jobless rate during April was 6.3%, and was down from the 7.5% in April 2013.

Rhode Island had the highest unemployment rate among the states in April at 8.3%. North Dakota again had the lowest jobless rate at 2.6%.

The April jobless rate in Oklahoma was 4.6%, down compared to 4.9% in March and down from 5.3% in April 2013.

Missouri’s jobless rate during April was 6.6%, down from 6.7% in March and unchanged compared to April 2013.

City Director Pam Weber has decided to not seek re-election to her position 5 at-large seat on the Fort Smith Board of Directors, she confirmed Friday (May 16).

Weber, who began her term on the Board in 2011, said the decision to not run was made with input from her family.

"That was a difficult decision because I have absolutely loved being a city director. There has been no greater honor in my public service career than serving the city of Fort Smith," she said. "But for me and my family, I feel like right now is not the time to seek re-election."

Weber said the process of making a decision involved looking "at what the next few years hold."

"As you know, I have a new grandbaby and a family business. It was a joint decision and after discussing with (my family) — I decided I would never leave my commitment to public service — but I felt it was the right time for a new person to step forward and take my position on the Board."

In discussing her decision, Weber reflected on the last three and a half years and pointed to the creation of a city beautification committee as one of the highlights of her time in elected office.

"I'm proud that Mayor (Sandy) Sanders has asked me to serve on that committee. Some of the things we've done that have been personally gratifying (include) the efforts underway on the I-540 interchanges," she said, mentioning landscaping and tree planting that has taken place at the intersection of Phoenix Avenue, Greenwood Road and I-540, as well as another project planned for I-540 and Rogers Avenue. "Those have been personally very gratifying for me."

Other projects have also ranked high in terms of accomplishments, she said, adding that she was pleased to have been a part of efforts to get sales tax issues passed for fire station improvements, funding for parks projects and funding for the Ben Geren Aquatics Center.

Among the most challenging issues Weber said he and the Board have faced during her time in office has been the budget, which has struggled with lower than expected sales tax revenues. But she said even during the difficult times that have come with the budget, the work has been personally fulfilling.

"The budget has been very challenging the last few years, but the staff and administration has done a good job of managing the difficulties. All of those have been extremely gratifying."

As for what her last six months of service on the Board hold, Weber said beautification efforts will continue to be her focus, as well as promoting Fort Smith.

"Obviously, I want to complete some of the beautification efforts I've started and work with citizens until the very last day. And I want to continue to talk about how wonderful Fort Smith is and (how happy I am to) call Fort Smith home."

Weber's position creates the second vacancy on the Board following City Director Philip Merry's announcement that he would not seek re-election to his position seven at-large seat on the Board. Former City Director Don Hutchings and Parks Commissioner Sherry Toliver have announced their intentions to run for Merry's seat.

As of Friday, the only candidates to have filed to run for Board positions were Sanders and Vice Mayor Kevin Settle, who holds the position six at-large director position. Both are seeking re-election to their respective positions.

The filing period for municipal Fort Smith offices runs from May 14 to Noon on May 29. An election will be held Aug. 12. If needed, a run-off election will be held Nov. 4.

The Arkansas Supreme Court has granted a stay with the May 9 ruling by Pulaski County Circuit Court Judge Chris Piazza that struck down Arkansas’ ban on same-sex marriage.

The stay effectively halts the issuance of marriage licenses for same-sex couples until an appeal of Piazza’s ruling is completed.

Attorney General Dustin McDaniel requested a stay from the state’s high court after Pulaski County Circuit Judge Chris Piazza apparently struck down Arkansas’ ban on same-sex marriages last Friday. Piazza said Amendment 83, which restricted marriage to one man and one woman, violated the U.S. Constitution.

A statement from the McDaniel’s office noted: “As this office stated in its pleadings, a stay prevents confusion and uncertainty until the Arkansas Supreme Court decides this matter on appeal. The Court today made the right decision to issue a stay, as other courts across the country have done in similar circumstances.”

McDaniel has been on record in support of same-sex marriage rights, but has said his duty as Arkansas’ attorney is to defend Amendment 83, which was approved by almost 75% of the Arkansans who voted in the 2004 general election.

The case challenges a statute passed in 1997 and a constitutional amendment to the Arkansas Constitution, approved by voters in 2004. Both exclude same-sex couples from marriage and forbid the state from recognizing same-sex marriages from other jurisdictions.

The case, Wright v. Arkansas, is one of several Arkansas cases and resembles suits in other states. Seventeen states and the District of Columbia allow for same-sex marriages, while 33 states currently prohibit the practice.

According to this report at Arkansas Times, plaintiffs’ attorney Jack Wagoner said he didn't take the stay as an indication of the court's leaning on a final decision. He added that he'll move ahead in a couple of weeks with pleadings in a federal lawsuit also challenging the state bans.

The 188th Fighter Wing flew its last training mission with its A-10 aircraft Friday (May 16) before the planes leave Fort Smith for the final time as the fighter wing transitions to a new remotely piloted aircraft (RPA), targeting, intelligence, surveillance and reconnaissance (ISR) mission.

According to Maj. Heath Allen, the final training mission of the aircraft — known officially as the A-10 Thunderbolt II "Warthog"— moves Fort Smith's Air National Guard base one step closer to fully implementing its new mission, first starting with re-training of the base's nearly 1,000 personnel.

"We're looking to get initially operationally capable somewhere around 2016," he said. "That's basically where we get enough folks through the training pipeline that we can actually start manning a mission. A cap is what they call it, an orbit."

The training, he said, has already begun as the base has transitioned A-10 aircraft to other Air Force bases. As of Friday, only three of the aircraft remained on site from a maximum of 20 prior to the announcement February 2012 that the 188th would lose the A-10 mission.

One of the three remaining planes is scheduled to depart Fort Smith for its new home at Moody Air Force Base near Valdosta, Ga., on May 29, with the final two scheduled to depart Fort smith on June 7, leaving the Air National Guard base with no planes.

One of two pilots to fly Friday's final mission described the experience as "bittersweet."

Lt. Col. Marty Dahlem, an operations support squadron commander at the 188th and a Dallas/Fort Worth-based pilot for American Airlines, started his Air Force career as an enlisted airman at the 188th in 1988.

"It's bittersweet. I had a career out here. I've been flying out here since 1995 is when I got back from pilot training, been in the unit since '88. So putting the gear down for the last time and making a full stop, it was definitely a bittersweet feeling knowing this is my last sortie in a technical airplane. But you know, (I'm) excited about moving on and getting the next mission started."

It was a sentiment echoed by Col. Mark W. Anderson, commander of the 188th Fighter Wing.

“This is another historical milestone in the rigorous process of a mission conversion. While we’re certainly excited about our future, it’s the moments like these that make the reality of it all set in.  We’ve made some astounding accomplishments in this aircraft in a very short period of time, including our wing’s two largest-ever combat deployments. This is certainly a bittersweet day. We’re going to miss flying over the best military community in the world.”

Dahlem — who has flown not only 900 hours in A-10s, but also 1,200 hours in F-16s, and has deployed to Iraq and Afghanistan — described his time at the 188th Fighter Wing as having been much more than a career, but also a continuation of the legacy his father, Lt. Col. Mike Dahlem, started at the 188th in 1961 when he was a pilot.

With the combined service of both men, the 188th has been sending a Dahlem into the skies over Fort Smith and across the world for 53 years. It was something the younger Dahlem thought about Friday as he flew his last sortie and contemplated the generations of airmen who have continued their family's service at the 188th and will continue to do so under the new unmanned mission.

And while there was uncertainty about the future of the 188th following the announcement of the loss of the A-10 mission, Dahlem said what helped him and the men and women of the 188th most was a unified community that wrapped its collective arms around the members of the unit.

"I really want to thank the community, mostly, for all the support that they've given us through this whole thing, from the F-16s through the A-10s to now transitioning to the MQ-9. I couldn't have asked for better support from the community and the people that come with that. It's been outstanding."

As the transition continues at the 188th, Allen said some minor shifts in personnel could take place as firefighters stationed at the 188th could possibly be moving to Fort Chaffee, though he said nothing was official at this time.

"As far as the maintainers and all of that stuff, we're not losing anybody," he said, adding that in many cases salaries would increase for base personnel as part of the new unmanned mission.

Fort Smith City Administrator Ray Gosack said he wanted proof from attorney Matt Campbell after Campbell alleged on his Blue Hog Report blog that the city's law firm had overcharged for services rendered. Campbell has responded.

In a May 20 blog post, Campbell — who represents clients in a whistleblower lawsuit against the Fort Smith Police Department — alleged that records he obtained from the Daily and Woods Law Firm showed that the firm was improperly billing the city. Specifically, Campbell said the firm was charging for work that was never completed.

The information Campbell presented in the original blog post was associated with a Freedom of Information Act request and subsequent lawsuit he had involving the city.

Campbell had requested documents tied to one of the cases he is counsel on through a FOIA request, but was denied, prompting him to eventually file a FOIA lawsuit. The lawsuit was eventually settled, with the city providing the documents requested and Campbell only being out about $315 (costs and filing fee for the lawsuit). But as a result of another FOIA request filed earlier this year, Campbell was able to track billing from the law firm to the city related to his first FOIA request, with the city on the hook to Daily and Woods for a total of $6,778.75.

He noted an unusual number of meetings between the city and the firm and also noted that the law firm charged the city for calls to him that he said never happened.

Asked for comment, City Administrator Ray Gosack said on May 22 that he needed proof that the firm had charged for work it had no completed.

Campbell responded with a blog post and links to a series of phone records that he said dispute the billing submitted by Daily and Woods. In just one example, Campbell highlighted billing that he said was not accurate and provided links to supporting documentation — his own AT&T records detailing each incoming and outgoing call or text message to his phone.

"In January of 2014, Mr. Rick Wade of Daily & Woods referenced a 'phone call to Attorney Campbell' on January 16. According to my records, it didn’t happen. Mr. Wade referred to a phone call on January 17 as part of a 2.6-hour billing block. There was a call that day that lasted seven minutes. Likewise, there was a call to me on January 22 from Mr. Doug Carson, as part of a 3.2-hour block of billable time; that call lasted one minute and went to voicemail."

As part of Gosack's comments to The City Wire on May 22, he was asked whether the city audits billing from vendors such as Daily and Woods, to which he said bills are reviewed but not necessarily audited.

"I mean, we don't have staff that do that kind of review of all the invoices the city receives. The city receives hundreds if not thousands of invoices each month. We have no staff to go to each vendor and verify the source records behind the invoices. But the invoices are reviewed before they're paid."

Campbell responded and said, "…while you might not be able to cross-reference Daily & Woods’ phone charges with my bills, the city could probably have each employee listed on the invoice — from Mr. Richard Jones to Chief Kevin Lindsey, and so on — check to see if the number of calls claimed matches their general recollection.  After all, it was the nine claimed calls in November, when I was sure there hadn’t been that many, that initially tipped me off."

Reached for comment Wednesday (May 28) regarding Campbell's latest post and documentation he said backs up his claims, Communications Manager Tracy Winchell released the following statement: "The allegations that Mr. Campbell and the Blue Hog Report have made are serious and a records review is underway. Once that is concluded, the public is going to know the results of that review and what, if any, steps may be necessary to ensure the integrity of providing legal services on behalf of our citizens."

Officials with Whirlpool will participate in a Fort Smith Board of Directors study session on Tuesday, July 8 at 6 p.m. — a meeting that follows revelations that trichloroethylene (TCE) around the company’s now-shuttered manufacturing facility may be worse than previously thought.

City Administrator Ray Gosack said the purpose of the meeting is to keep an open line of communication between the city and the corporation.

"I think it's mainly for communication, to learn more about what's happening," he said. "I think the public is expecting the city government to stay on top of this issue."

Legal counsel for the city has previously stated that it did not have regulatory enforcement powers over the company, but Gosack said the meeting was not intended to be an enforcement mechanism.

"Even though the city may have no enforcement authority, I think the public is looking to the city government to stay on top of the issue. And we've been doing that since Whirlpool first approached us nearly two years ago about the water well ban. And so I think it's mainly trying to fulfill a public expectation."

According to Gosack, prior to that time there was no involvement from the city in the process, meaning not only were city officials in the dark, but residents were, as well.

"Because prior to the city government's involvement, there was no communication from Whirlpool, ADEQ, or anyone else. And when the city first became involved in this, one of the things the Board of Directors said they wanted was better communication so the public would have better awareness of what's happened. Prior to the city government's involvement, the last communication I saw was 2001 and 2002, when there was a little bit of public notice about the TCE contamination. Between then and 2012, there was little public awareness of what was going on."

City Director Keith Lau said he did not expect much new information from the July 8 meeting and instead said the meeting should be between the city and the Arkansas Department of Environmental Quality.

"I actually think we should be meeting with the ADEQ instead of Whirlpool since they are the ones with regulatory oversight. Whirlpool is going to tell us the least amount they can. ... In the end, they are a for-profit corporation that is protecting their interests. We have to take that with a grain of salt. We can't look to them for solutions, we have to look to the ADEQ."

Gosack did extend an invitation to ADEQ to be present at the same meeting, though ADEQ has yet to formally accept, according to Katherine Benenati, ADEQ's public outreach and assistance division chief. She said the agency has not "had a chance to discuss internally our attendance at the meeting."

"I think the Board said they wanted better communication not only with Whirlpool, but also with ADEQ and ADEQ has made that commitment, as well. And there has been much improved communication in the last 16 months or so," Gosack said about his invitation of the agency.

When the July 8 study session occurs, Lau said he wants the ADEQ to be accountable for holding Whirlpool to task as the regulatory agency of record.

"So who's our representative? Who's in our corner? That's the ADEQ. We should be bringing the ADEQ in here and say, 'Look, hold these guy's feet to the fire and clean this thing up.'"

Sure to come up during the meeting is a soil investigation work plan, submitted by ENVIRON — Whirlpool's environmental consultants — on Tuesday (May 27). The work plan was requested by ADEQ following the revelations of additional TCE pollution at the Whirlpool site. Michael Ellis of ENVIRON said in a letter to ADEQ that the company would probe the soil at least 15 times in the area as part of the work plan.

The soil investigation is scheduled to begin the week of June 23, he said, lasting about one week. A second round of chemical oxidation treatments began Tuesday and will continue through June 6.

The July 8 study session will be held at 6 p.m. instead of its normal time of noon, Gosack said, in order to allow more of the public to attend the meeting. The meeting will be held at the Cavanaugh Senior Center located at 2700 Cavanaugh Road.

Tyson Foods announced Thursday (May 29) plans to acquire Hillshire Brands in a deal that would be worth $6.8 billion. Tyson said it is not interested in Pinnacle Foods, which Hillshire Brands recently announced it planned to purchase subject to shareholder approval.

Jimmy Dean, Ball Park and Hillshire Farm are a few of the brands owned by Hillshire.

“We believe that there is a strong strategic, financial and operational rationale for the combination of Tyson and Hillshire,” said Donnie Smith, Tyson Foods CEO. “Our proposal provides Hillshire shareholders with an immediate cash premium for their shares that we believe is both greater and more certain than what can be attained in the near term by the company either on a standalone basis or in combination with any other food processing company.”

Tyson’s proposed price of $50 per share represents a 35% premium to the unaffected closing price per share of the company’s common stock on May 9, 2014, the day prior to the announcement of Hillshire’s proposed agreement to acquire Pinnacle. The offer from Tyson is also more than the $5.52 billion offer Pilgrim’s Pride made just a few days ago on Hillshire Brands.

Smith said during a media call that the Tyson Board mapped out a plan to grow its prepared foods division more than a year ago and the Hillshire offer is a great match with Tyson from a business and culture standpoint.

Chief Financial Officer Dennis Leatherby said the Tyson’s offer of $6.8 billion was made with ample thought. He adds that Tyson has the ability to raise that offer given its strong balance sheet, but gave no indication that Tyson is willing to pay more at this time.

He projects the deal has a 3-to 5-year payback in terms of return on invested capital. He said the deal will reduce the company’s return on investment from 21% into the mid teens for the next three years or more, but beyond that Leatherby expects a return to 21% or higher.

“We believe this is a one-plus-one-equals three growth opportunity,” Leatherby said.

The Springdale-based meat giant said the combination of Tyson and Hillshire would reposition Tyson as a leader in the retail sale of prepared foods, with a complementary portfolio of well-recognized brands and private label products. 

“In particular, we believe that the strength of Hillshire’s products in the breakfast category would allow Tyson to capture opportunities from shifting consumer trends in this attractive and fast-growing daypart where Tyson has little presence today,” Tyson noted in the release.

Smith said the deal will also benefit Tyson shareholders as their are numerous supply chain synergies and greater opportunity to expand retail product categories and sales.
The pro forma company would command sales in excess of $40 billion annually, with projected current year earnings of $4.63 per share. The deal, according to the company, also would give Tyson a greater pork market share and expanded retail sales in its prepared foods segment which are now heavily tied to food service.

There is no financing condition to the proposal. Tyson has secured a loan agreement from Morgan Stanley Senior Funding, which Tyson expects will be joined by JP Morgan Securities LLC in the near future. This proposal has the unanimous support of the Tyson Board of Directors and is subject to the termination of Hillshire’s merger agreement with Pinnacle.

Seeking Alpha analyst David Trainer noted that Pilgrim’s and Tyson have over bid for Hillshire Brands.

“TSN (Tyson) has offered the usual statements about positive synergies resulting from the deal, but unless these synergies can double HSH's profits (not likely) the deal is bad for TSN investors,” Trainer noted.

Trainer also said the deal “ties up a significant amount of capital in a low-performing asset and should add a significant amount of debt that will eat up future cash flows.”

Wall Street investor appear to like the deal anyway. Shares of Tyson Foods (NYSE: TSN) were trading at $43.25 in late afternoon trading, up more than 6% for the day. During the past 52 weeks, Tyson shares have ranged from a high of $44.24 to a low of $24.48.

Shares of Hillshire Brands (NYSE: HSH) were up more than 17% to $52.76 in late afternoon trading. The rise indicates that the investment community anticipates a bidding war for Hillshire.

The Dixie plant in Fort Smith, one of the first manufacturing operations to move to the city after World War II, is receiving a $40 million equipment and facility upgrade for a new plate line expected to begin production in 2015.

Officials with Atlanta-based Georgia Pacific, the parent company of Dixie, announced the expansion Thursday (May 29), saying that employment at the plant will exceed 350 once the new line is fully operational. The company did not provide details on how many jobs will be added as a result of the investment.

"Georgia-Pacific already has invested more than $30 million since 2012. This latest investment will further modernize the plant and improve its long-term competitiveness in plate manufacturing while meeting the growing demands of our consumers and customers," Larry Balch, Dixie plant director, said in a statement. "We appreciate all the support we have received from our local and state economic development partners in making this investment a reality."

The company said work on the capacity expansion has begun.

According to the GP statement, the investment at the Fort Smith plant is part of more than $100 million of planned investments at other Georgia-Pacific facilities in Arkansas during 2014. GP is a privately held company owned by Koch Industries. GP employs 2,400 in Arkansas with salary and benefits of $179 million, noted the company statement.

"We appreciate Georgia-Pacific's latest Arkansas expansion and its continued confidence in the Fort Smith workforce," Gov. Mike Beebe said in the statement. "The company's investments in Sebastian County and across Arkansas repeatedly showcase our role in American manufacturing."

Tim Allen, president and CEO of the Fort Smith Regional Chamber of Commerce, told The City Wire that the investment “helps secure their presence” in Fort Smith. He also said the investment by GP in the Dixie plant also preserves a link to the city’s manufacturing history.

"Georgia-Pacific has been an outstanding corporate citizen in Fort Smith since the facility was built in 1948. This expansion illustrates their commitment to Fort Smith for many years to come," Allen said in the GP statement.

Any boost to manufacturing jobs in the Fort Smith region is welcome news. The Fort Smith area manufacturing sector employed an estimated 18,200 in April, unchanged compared to March, and below the 18,300 in April 2013. Sector employment is down almost 36% from a decade ago when April 2004 manufacturing employment in the metro area stood at 28,400. Peak employment in the region’s manufacturing sector was first reached in July 2000 when manufacturing jobs totaled 31,700.

Georgia-Pacific is one of the world's leading manufacturers and marketers of bath tissue, paper towels and napkins, tableware, paper-based packaging, office papers, cellulose, specialty fibers, nonwoven fabrics, building products and related chemicals. Familiar brands include Quilted Northern, Brawny, and the Dixie line of paper plates and cups. The company employs approximately 35,000 people directly, and creates nearly 130,000 jobs indirectly.

The lines between supplier and retailer are becoming more blurred in a world in which technology blends the various ways – aka, omni-channels – in which consumers and retailers interact.

Jim Tompkins, CEO of Tompkins International, has said the blurring will increase as suppliers delve into retail ventures of their own, whether online or with limited brick and mortar sites.

Ken Nisch, chairman of JGA, shared recently during his talk at the SHOP Conference at the University of Arkansas that more consumer product brands are dabbling in retail store ventures to build loyalty and connect with consumers one-to-one. He said perhaps Apple does it better than anyone, but McCormick, Hershey, Jockey & Choboni are among supplier brands gleaning new insights through retail ventures.

SPICE IT UP 
The McCormick World of Flavor retail venue opened in August 2012 in Baltimore’s Inner Harbor. McCormick executives pondered the idea for more than 25 years, and finally built the story to help share the company’s 125-year-old story, said Jim Lynn, McCormick spokesman.

Nisch, whose firm designs retail stores, said the McCormick venture blends history, culinary and cultural aspects in a way that is resonating with consumers. While the product company has no plans for any other outlets, it notes that the insights it gets from this one venue have been well worth the effort.

Experts said product suppliers and/or manufacturers don’t go into their own retail venture for the sake of just adding sales. Carol Spieckerman, CEO of NewMarketBuilders, said it’s more about giving suppliers an outlet to tell their brand story in a cohesive and compelling way rather than relying solely on the merchandising whims of their retail partners.

“Many companies are still referred to as ‘manufacturers’ or ‘retailers’ when in fact, an increasing number of them operate multiple business models and no longer have a single identity. Going forward, multi-model companies that operate wholesale, owned retail and direct-to-consumer businesses will be the rule rather than the exception,” Spieckerman said.

She adds that suppliers like Chobani are leveraging spin-off concepts to showcase usage occasions for their products. The showcasing also reinforces a company or product culture.

SHARED CULTURE
Nestled in the heart of Soho, New York, Choboni Soho operates a Mediterranean yogurt bar that allows its signature Greek yogurt to take center stage. The yogurt is prepared fresh daily in-house and then paired with hand selected ingredients like pistachio and chocolate or cucumber and olive oil.

“It’s not just the creations that are unique. The retail concept’s design reflects the pure quality of Chobani Greek Yogurt and our Mediterranean roots,” said Peter McGuinness chief marketing and brand officer.

“When we first opened Chobani SoHo in 2012, we pushed the boundaries of what Greek Yogurt could be, and our expanded menu continues that journey with the addition of sandwiches, soups, desserts and more," Hamdi Ulukaya, CEO and founder of Chobani, said recently when the venue was expanded. 

The new menu developed by Ulukaya features sweet and savory Chobani Greek Yogurt creations, plus a series of inventive items for any time of day, including soups, sandwiches and desserts.

CATEGORY INNOVATION
Spieckerman said other manufacturers like Jockey are involved in their own retail venture to create impact around an important category.

The Jockey Bra store in Schaumburg, Ill., is a manufacturer’s  innovative approach to help woman find bras that fit properly. Nisch said this retail store is more like a showroom with various experience zones within it.

He said Jockey focuses on the everyday bra, with just three colors and five styles that come in 55 sizesbased on their own standard fitting guidelines. Shoppers can get the sizing kit and fit themselves at home with online assistance or come into the store for a personal fitting. But the store itself is designed like a showroom, with a spa feel. 

Jockey’s objective with their physical store was to create an innovative new bra shopping experience store. They accomplished this through direct consumer contact, online and brick & mortar. The store design allowed for individualized consultations and retail. It also provided a solution to the frustration associated with traditional bra shopping.

Nisch said Jockey’s willingness to move toward to the edge with its store concept helped it create a “breakthrough moment” for the consumer. He said Jockey is able to expand its reach with a hub-and-spoke concept with pop-up stores that facilitate the one flagship store.

One observation by Jockey after opening the store last summer, was that many woman want to do the fitting in the privacy of their home, but then they talk a friend into coming to the store for a fitting and they tag along providing opportunities for another sale.

HERSHEY EXPERIENCE
Hershey has been involved in retail and experience branding for years creating a chocolate wonderland its home base in Hershey, Penn. The chocolate maker opened its seventh retail experience outlet last year in Las Vegas adding its global presence with other locations in Hershey, Penn., New York, Chicago, Niagara Falls, Canada, Shanghai and Dubai.

Nische said the latest Hershey Chocolate World store in Las Vegas inside the New York-New York Hotel and Casino aims to link consumers to the brand experience, going way beyond the typical candy store. The guests will enter an engaging and interactive space where they can taste new treats, personalize sweet gifts and create keepsake photo. The venue will open this summer.

The venue offers guests the change to create their own Hershey happiness through a variety of interactive experiences such as customized candy wrapper and personalizing Hershey Kisses plumes, according to a corporate statement.

RETAILER ACCEPTANCE
In the past, Spieckerman said retailers were hostile toward wholesale partners that attempted to create an owned retail presence, and particularly those that ventured into direct-to-consumer businesses. Things have changed.

“As I tell my brand marketing clients on a regular basis, brand ubiquity is the new exclusivity as media fragmentation and shoppers’ short attention spans favor omnipresence over limited distribution, Spieckerman said.

She adds that retailers have become “much more open to this concept, if only because they are embracing it themselves by making their private brands available to other retailers.”

“Retailers too, have evolved into multi-model companies and they understand the importance of wide brand presence. These days, exclusivity is a ticket to obscurity,” Spieckerman said.

She said now that “owned retail” is no longer an unmentionable with retailers, suppliers have an opportunity to share insights from their owned retail operations – and smart suppliers will do that. 

“Unfortunately, many companies operate their wholesale and retail divisions in silos, with wholesale teams not made privy to owned retail insights. Operating this way prevents preventing them from fully leveraging their multi-model assets,” Spieckerman added.