Efforts by Fort Smith city staff to move quickly on a plan to raise sewer rates to pay for federally-mandated system improvements hit a snag when City Director Tracy Pennartz successfully moved during Tuesday's (March 17) Board meeting to table the matter until April 7.

The city is recommending sewer rate hikes to help fund an estimated $480 million in work needed to meet the requirements of a recently approved consent order between the city of Fort Smith and the Department of Justice and the Environmental Protection Agency. The order requires extensive investments in new infrastructure and ongoing maintenance activities to bring the city in compliance with the Clean Water Act.

The estimated $480 million includes $375 million capital costs and $104 million in additional operations and maintenance expenses. While the proposed settlement between the city and the DOJ is complex, the primary purpose of action is to increase capacity to eliminate wet weather overflows and fix defects to eliminate dry weather overflows. The agreement gives the city 12 years to invest the needed funds and do the work to bring the sewer system into compliance.

David Naumann, a project manager with Kansas City, Mo.-based Burns & McDonnell, said the recommendation is a sewer rate hike of almost 169% between now and 2017. The change would move the average user from $19.63 a month for sewer services to $52.70 by 2017. Naumann said analysis shows that the most frequent use per month is 5.67 ccf per month, with 75% of residential accounts using 6 ccf or less, and 50% of accounts using 4 ccf or less. There are about 25,000 residential sewer customers in Fort Smith.

The consultants or city staff did not know how many non-residential users there were. Director Pennartz asked for a “breakdown of classes” among all users.

City Director Kevin Settle asked Naumann if rates would be raised again after 2017. Naumann said the amount of work required is “likely to cause” a need for more rate increases over the life of the consent decree. Settle also questioned the need to hire up to 77 people over the 12 years to implement the order. He said a bulk of the money should be spent on capital costs to fix the system and not to add employees.

Before the Board could vote on the rate increase, Pennartz moved to table a vote until the April 7 regular meeting. Mayor Sandy Sanders was quick to note that the issue is time sensitive. Pennartz said she wanted to more time to gather information, and to consider public input.

For rates to go into effect May 1, which is the recommendation of city staff, the April 7 meeting would require an emergency clause to enact an ordinance within 30 days, said City Administrator Ray Gosack. He said approval of an emergency clause would require votes from five of the seven directors.

A vote on tabling the issue to April 7 was called, with Directors George Catsavis, Keith Lau, Mike Lorenz, Pennartz and Settle voting to table. City Director Don Hutchings opposed tabling the rate increase vote. City Director André Good was not in attendance.

The payment by the city to Burns & McDonnell for the analysis related to staffing needs and rate increases is capped at $177,650, according to Steve Parke, the Fort Smith director of utilities.

The 2015 Compass Conference will focus on downtown Fort Smith development, with the soon-to-be-renovated Masonic Temple to provide a unique venue and format for sixth annual event.

“Banking on Downtown Development” is the event theme, with a panel discussion about present developments and what is possible for the historic heart of the Fort Smith region. The event will be held 4 to 5:30 p.m., April 9 (Thursday), in the large and colorful theater inside the former Masonic Temple in downtown Fort Smith.

Light hors d'oeuvres and beverages will be served. Tickets are $35 each, and may be reserved by contacting Daelene Brown at dbrown@thecitywire.com, or calling 242-2800. Seating is limited to the first 200 who reserve tickets. It is likely the only public event to be held in the theater before renovations begin.

Panelists planned for the conference are:
• Lance Beaty, owner of Beaty Capital Group, which recently acquired the Masonic Temple, will attend;
• Steve Clark, owner of Propak Logistics and who is behind the renovation of the historic Friedman-Mincer building in downtown Fort Smith, will attend; and
• Rick Griffin, with Griffin Properties, has been invited to be part of the panel.

Tim Allen, president and CEO of the Fort Smith Regional Chamber of Commerce, will moderate the panel discussion.

Arvest Bank, a company that invested in the renovation of a downtown Fort Smith structure in recent years, is the primary sponsor of the event and The Compass Report.

“Arvest is excited to team up with The City Wire and sponsor the 2015 Compass Report and the Conference on April 9,” said Rodney Shepard, president and CEO of Arvest Bank of Fort Smith. “The growth and revitalization of the downtown area of Fort Smith is important to this community and to Arvest. The Compass Conference will highlight the many new development projects and events planned in Fort Smith and specifically the downtown area. I would encourage everyone in the area to attend this event to learn more about the new developments in Fort Smith from business leaders who are investing in our community.”

The conference is part of The Compass Report, which is the only independent economic analysis of Arkansas’ top three metro areas (Central Arkansas, Northwest Arkansas, Fort Smith region). The report, produced and managed by The City Wire, measures four leading and four current economic indicators to provide a grade for a regional economy. Arvest Bank is the primary sponsor of the report, with Cox Communications and the Fort Smith Regional Chamber of Commerce signed on secondary sponsors.

DOWNTOWN DEALS
In addition to a multi-million dollar investment in the Friedman-Mincer (former OTASCO) building, Clark is also behind the “Festival of Murals” event planned for Sept. 6-13 in downtown Fort Smith.

Clark, who is also a member of the Central Business Improvement District (CBID), said a festival that brings artists in from around the world “is not what you would expect in Fort Smith, which is why it could be a phenomenal success.” He also said the artists being considered are also those who would actively “Tweet out where they are,” which would attract international attention to Fort Smith.

Beaty, who successfully redeveloped the former Phoenix Village Mall property, is in the process of developing several uses for the former Masonic Temple, which he acquired in late 2014.

“We have some innovative options for the property, and are optimistic the public will find them exciting and that the building will once again be an active part of downtown Fort Smith,” he said in a November 2014 interview.

Beaty told The City Wire that tours of the iconic building will be available after the conference.

The Griffin family has a long history of development and renovation in downtown Fort Smith. The most recent downtown project is a $3 million mixed-use residential development along the 400 block of Garrison Avenue. Richard Griffin, patriarch of the Griffin family, also is a CBID member.

Rick Griffin has told The City Wire that part of his family's approach to downtown development has been to accomplish three things – offer commercial buildings that are modernized, get people living downtown and offer services to support residential and commercial development.

As natural gas drillers and oilfield equipment firms continue to cut their capital spending in the Fayetteville Shale, there are already signs that severance tax collections in Arkansas began to weaken at the beginning of the year.

The state’s record tax revenues from natural gas production – which have been supported by former billion dollar capital budgets that poured into the Arkansas shale play over the past decade – will eventually start to slide because of lower capital spending in the shale, according to John Shelnutt, chief economist at the Arkansas Department of Finance and Administration (DFA).

“Yes, eventually the decline in capital spending will impact production and tax revenue,” Shelnutt told Talk Business & Politics on Tuesday. “The rig count in Arkansas had already declined precipitously before this news.”

The news that Shelnutt was referring to was the fact that severance tax collections for the month of January were down year-over-year for the first time since February 2013.

That came after Arkansas’ severance tax collections hit a record for the month of December, rising a whopping 81% to $7.8 million compared to $4.3 million a year ago. For the three month period ended Dec. 31, 2014, collections were up 41.6% from $14.1 million for the same quarter of fiscal 2013, according to tax data compiled by the Revenue Division of the Arkansas Department of Finance & Administration.

The monthly and quarterly totals are a record for those respective periods, as new drilling techniques and high well production continues to fill state tax coffers. At the end of fiscal 2014, which officially ended on June 30, 2014, severance tax collections in Arkansas reached an all-time high of $77.3 million.

SEVERANCE TAX DIP
That pace continued through the first six months of fiscal 2015 with collections at an all-time high of $44.8 million at the halfway mark. But momentum came to halt in January as collections for natural gas production were down 4.8% to nearly $6.3 million, compared to almost $6.6 million during the same period a year ago.

“The decline in capital spending will be a delayed effect though,” Shelnutt said “In the short run, natural gas severance is still being influenced positively by the earlier surge in gas production now moving into the full-rate tax category of the natural gas severance law.”

Shelnutt explained that the controversial severance law change from the special session of 2008 allowed for tiered tax rates for cost recovery of shale, or so-called high cost natural gas wells. That would be followed by full-rate taxation after a designated cost recovery period.

“Much of that initial drilling and production surge is now migrating into the full rate gas column in the rate structure,” the Arkansas economist said. “But in general, prices are the main determinant of this valued-based tax system that started with the law change in 2008, from a volume-based system previously.”

FEWER RIGS
As Shelnutt stated, the number of drillings actively in operation in Arkansas through March 13 (Friday) fell by one from the previous week, continuing the production swoon in the state’s unconventional shale play driven by continued downward pressure on natural gas prices, according to Baker Hughes’ weekly national week count.

Overall, the number of rigs operating in Arkansas is now down to only 11, falling to its lowest level since Dec. 12, 2014, when there were only 9 rigs in operation. Two years ago, there were 27 rotary rigs operating in Arkansas, with 25 of those located in the state’s unconventional shale play.

The number of drilling rigs in Arkansas peaked in September 2008 at 59, when the wellhead prices for sellers at Henry Hub topped $8.60 per million cubic feet (Mcf). Since October 2011 when the state’s rig count hit 34, that number has trended downward.

Nationwide, Baker Hughes reported that the number of oil and natural gas rigs actively drilling through Friday fell by 67 rigs to 1,125. The rig count is down 684 from the same time last year. The number of oil rigs fell 56 to 866, while rigs drilling for natural gas are now at 257, down 11.

As previously reported by Talk Business & Politics, Southwestern Energy recently announced it was cutting 40% of its investment in the unconventional Arkansas shale play. BHP Billiton has also cut its budget in the Arkansas shale play to only $100 million – a fraction of its original spending plans when it bought those assets for $4.75 billion in 2011.

Weak commodity prices also are causing oil and gas producers and related oilfield and drilling specialty firms to revisit their earlier announced 2015 capital plans, including a growing number of companies that operated in the shale play.

The U.S. Energy Information Administration reported last week that the decline of spot oil and natural gas prices has reduced oil and natural gas production tax revenues in some of the largest oil- and natural gas-producing states. That report didn’t mention Arkansas, but noted that Texas’ tax revenue from oil and gas receipts in January was down 40%.

Shelnutt also noted the effect of Arkansas severance tax collections for crude oil production, mainly in the emerging, liquids rich Haynesville Shale oil and gas play that encompasses most of northern Louisiana and a few adjacent counties in South Arkansas. For January, Arkansas’ oil severance collections fell 34% to nearly $1.5 million, compared to $2.24 million a year ago.

The story at Tyson Foods is an ever-changing saga as the meat giant continues its metamorphosis away from commodity-based business models to more consumer-branded and higher-margin products following the $8.55 billion acquisition of Hillshire Brands in August 2014.

At Tyson Foods’ presentation at the Consumer Analyst Group of Europe (CAGE) annual conference in London on Wednesday (March 18), executives told analysts that Tyson’s branded product portfolio, operational execution and other improvements from the acquisition of Hillshire Brands give them the confidence to reiterate fiscal 2015 guidance of $3.30 to $3.40 adjusted earnings per share.

This comes on the heels of roughly $1 billion in market cap losses over the past two weeks after confirmation of a highly pathogenic strain of Avian influenza in a Butterball turkey flock in Arkansas and in neighboring Missouri. While analysts typically agree that risks to a diversified protein company like Tyson Foods are present given the continuing spread of the H5N2 bird flu strain, any catastrophic event is unlikely.

Tyson execs said they continue to grow with consumer demands from working closely with McDonald’s to provide chicken raised with no human-sensitive antibiotics to revamping and expanded brands like Jimmy Dean into more products than just breakfast sausage. From healthier, cleaner label lunch meats to expanded flavor profiles in frozen chicken, Tyson executives said they are dialed into what consumers want and prepared to deliver.

Aside from sharing growth opportunities, Tyson Foods Chief Financial Officer Dennis Leatherby said Tyson Foods realized $60 million in synergies (increased revenue, cost reductions, better margins, etc.) from the Hillshire deal in the first quarter of 2015 (October through December 2014) which was slightly ahead of projections. 

“We are on pace to meet or exceed more than $225 million in annual synergies this year. We have strong cash flows that give us options for the future. We have the size, scale and flexibility to serve customers and consumers in multiple channels, and we’re creating value for our shareholders,” Leatherby said at the conference. “It is gratifying to be in control of our own destiny, and we’re looking forward to telling our growth story to investors in Europe.”

SHARES RALLY
Tyson Foods shares (NYSE: TSN) began trading lower on Wednesday but rallied with the broader markets in the early afternoon session following the Federal Reserve’s decision to keep interest rates unchanged through April with the possibility of raising them thereafter as economic data dictates.

Tyson shares rose more than 2% on the Fed’s announcement trading above $39 a share for the first time since the H5N2 was detected in Arkansas. Tyson shares are likely still undervalued by Wall Street, according to Credit Suisse analyst Robert Moskow.

Tyson shares closed above $39.50 on Wednesday, which is still below the $42 target price projected by Moskow and the $44.24 high price reached in March 2014. His projected Tyson earnings of $3.36 per share are in line with corporate guidance, but Moskow remains neutral on the stock.

EXPANSION
Tthe meat company also announced a $47 million investment on a new boxed beef warehouse associated with its plant in Lexington, Neb. Construction is expected to begin this spring and will include a 50,000-square-foot warehouse. The addition is designed to improve the "flow, efficiency and capacity" of the Lexington facility's boxed beef storage and distribution systems, and should be finished in mid-2016.

The new warehouse is not expected to add jobs to the plant, which employs more than 2,700 people.

Leatherby said Tyson will continue to invest in its own facilities to increase efficiencies, but the company’s primary goal for its cash flow is to reduce the $3 billion debt it took on to purchase Hillshire Brands.

He said despite the low interest rate, the company wants to retire as much of the debt as soon as possible to be in the position to return more equity to investors through share buybacks and perhaps allow for more strategic acquisitions to enhance the company’s growing value-added business.

John Cooley and Rocky Walker are glad the Fort Smith Board of Directors and city staff are moving to appoint a committee to provide oversight of implementation of a Comprehensive Plan.

The Comprehensive Plan approved by the Fort Smith Board on Dec. 16, 2014, includes detailed thoughts and goals in areas that include future land use, economic development, housing and neighborhoods, community and character design, transportation and infrastructure, public facilities and services, and natural and cultural resources.

Work on the plan cost the city $340,000 and took 18 months to complete. More than 20 city residents worked with city staffers and consultants to create the 181-page plan. (Link here for the 181-page PDF of the Board-approved Comprehensive Plan.)

The city on Wednesday (March 18) sent out a press release seeking applications for the nine at-large members of the new committee. According to the city, primary duties of the committee members include “periodic progress meetings with city staff, reviewing regular reports on the progress of the #FutureFortSmith comprehensive plan, to provide feedback on reports before they are finalized, and assist with the preparation of a scorecard to show how the plan is being implemented.” The city also said committee members may work with groups in the city during implementation of plan goals.

At-large members must be residents of the city and must also be registered to vote.

“The update of the comprehensive plan was more than a year and a half in the making. The process included a great deal of citizen input. Implementing the plan will require even more citizen participation. Members of this committee will play an important role in achieving the objectives set forth in this plan,” Mayor Sandy Sanders noted in the press release calling for applications.

The deadline for applications is April 13, with the Board expected to make appointments on April 21.

Cooley, who was the co-chair of the citizen committee appointed to help develop the plan, has applied to be on the implementation committee. Cooley, an executive with Fort Smith-based Propak Logistics, said keeping citizens involved during implementation is necessary for the plan to be carried forward.

“If there is not some level of follow up, then this thing ends up being put on a shelf. It becomes just another book that collects dust,” Cooley said. “It (implementation committee) keeps a heartbeat on the thing, especially with the city. We can’t have spent that money and collected all that input for nothing then to be done with it.”

Key points of the plan Cooley said are important are efforts to “draw more people” to Fort Smith. Funding and completing the city’s trails and greenways plan is a big part of providing amenities that recruit people. That plan, developed by a citizen committee, would add 35 miles to the city’s trail system and would almost create a trail loop around the city. Cost estimates for the work range from $17.4 million to $9.6 million. The Fort Smith Board has approved redirecting 5% of the city’s street tax revenue to the trail system. The redirection is part of a May 12 ballot on renewal of the 1% sales tax that funds the street and drainage budget.

“If we can get that done, that’s a big step in the right direction,” Cooley said of the trail system.

Walker, a homebuilder and owner of Cobblestone Homes, has applied to be on the implementation committee. He also served on the planning committee with Cooley.

“I think the kind of person that needs to be on it (implementation committee) is somebody that cares about Fort Smith, is passionate about the future of Fort Smith and the direction that it is going,” Walker said.

He also said committee members should not seek membership to push their pet project. He said it is “very important” for all members of the committee to have a “broad” view of all the elements needed to make a city successful for future growth.

Joel Culberson served on the planning committee and likes the idea of an implementation committee. But he is not sure how effective it will be.

“I think it will be another group rubber stamping what the city is doing and doubt they will do much holding the city's feet to the fire,” Culberson told The City Wire.

Culberson also is concerned that the city’s requirement to spend up to $480 million in the next 12 years as part of an agreement with the Department of Justice and Environmental Protection Agency. He fears the “grand ideas” in the plan will go unfunded because of the city’s requirement to spend up to $480 million in the next 12 years as part of an agreement with the Department of Justice and Environmental Protection Agency. The order requires extensive investments in new sewer system infrastructure and ongoing maintenance activities to bring the city in compliance with the federal Clean Water Act.

Cooley hopes the the sewer system work will not hamstring ideas in the Comprehensive plan.

“I certainly hope not,” Cooley said when asked if he thought the $480 million order would delay or kill some of the projects in the plan.

For information about the application process, contact Wendy Mathis at 784-2201, or wmathis@fortsmithar.gov

A plan supporting a regional jail approach to the state’s corrections debate will help the state and its residents in many ways, the sponsor of the bill said Wednesday. Also, the Senate Education Committee approved an amended version of a bill Wednesday involving a statewide education test.

The Senate voted 33-0 to approve Senate Bill 618, sponsored by Sen. David Sanders, R-Little Rock. Sanders’ bill would permit the Arkansas Department of Corrections to contract or reach an agreement with a regional correctional facility to house inmates. The bill would also amend current law to use the regional jail approach, which is used in other nearby states like Mississippi.

“Subject to the approval of the Governor, the Department of Correction may cooperate with and contract with the federal government, governmental agencies of Arkansas and other states, political subdivisions of Arkansas, political subdivisions of other states, counties, regional correctional facilities and private contractors to provide and improve correctional operations and to keep custody of inmates transferred from the Department of Correction,” the bill reads.

Sanders said the approach will potentially create winners for the state as well as citizens. For the state, Sanders said it will give the state of Arkansas an opportunity to work with counties to house minimum security prisoners at a lower cost. Sanders said he believes taxpayers would benefit by finding a better way to house inmates, freeing up the cost of deputies transporting prisoners around the state.

Also, Sanders said the current system of using geography, manpower and an allocation of resources is an older model, while the regional system has been successful in other state. While the idea of regional jails is new in Arkansas, Sanders said he has gotten a lot of positive feedback on the idea.

One of the counties interested in the idea is Lawrence County. County Judge Dale Freeman recently told content partner KAIT that the county is looking at the issue. A regional jail in Lawrence County would hold up to 250 county and state prisoners, while officials are considering using county owned property to build the jail.

Sanders’ bill now heads to the House.

AMENDED COMMON CORE BILL PASSES
A bill that would have ended Arkansas’ participation in a multi-state assessment associated with the Common Core failed to get a second in the Senate Education Committee Wednesday and then passed later with an amendment that would simply limit Arkansas’ participation to one year.

In its original form, House Bill 1241 would have ended Arkansas’ association with the Partnership for Assessment of Readiness for College and Careers (PARCC) by June 30. The consortium of nine states plus the District of Columbia – originally 24 states until the others pulled out – is designed to compare Arkansas students to those in other states based on the Common Core State Standards. This is the first year that Arkansas students have taken the test after a pilot project last year.

The sponsor, Rep. Mark Lowery, R-Maumelle, originally said he did not plan to bring the bill back this session. But he later returned to the committee room and agreed to an amendment proposed before the meeting by Sen. Jim Hendren, R-Sulphur Springs, that prohibits more than a year-long contract with the testing agency.

“I think everybody agreed that we’re getting messages from our people back there that there’s some problems with PARCC, but I think all of us also agreed that repealing it 90 days before the end of the contract, and we don’t have a plan to follow on, was probably not the most prudent path forward,” Hendren said.

COMMITTEES

The House State Agencies and Governmental Affairs committee voted Wednesday against a bill that would have set school board elections on the same day as general elections. The bill, House Bill 1743, was sponsored by Rep. James Sorvillo, R-Little Rock.

Sorvillo told the committee that his bill would seek to address low voter turnout for school board elections. Meanwhile, opponents said the change would drive up election costs and add confusion for voters.

The committee approved a bill that would allow a federal candidate to seek two federal offices at the same time. The bill, Senate Bill 803, was sponsored by Sen. Bart Hester, R-Cave Springs. The bill would amend state law by allow a person to “be a candidate for President or Vice President of the United States and United States Senate and United States House of Representatives at the same time.”

The bill now heads to the House.

The House Aging, Children and Youth, Legislative and Military Affairs committee approved three bills Wednesday. House Bill 1284, sponsored by Rep. David Whitaker, D-Fayetteville, would seek to protect the identity and contact information of children from the Arkansas Freedom of Information Act. Under the bill, the “date of birth, home address, email address, phone number and other contact information from county or municipal parks and recreation department records of a person who was under 18 years of age at the time of the request” would be exempt under the law.

House Bill 1762, sponsored by Rep. Brandt Smith, R-Jonesboro, would create the crime of female genital mutilation in the state. A person convicted of the crime would face a Class C felony, under the bill.

House Bill 1947, sponsored by Rep. David Meeks, R-Conway, would eliminate daylight savings time in the state. If approved by legislators and signed into law, the state would be under standard time all year long.

All three bills head to the House floor.

FLOOR ACTION
The House voted 90-1 to approve House Bill 1793 to allow lawmakers to seek reimbursements for legislative expenses. The bill, sponsored by Rep. Bill Gossage, R-Ozark, would allow the following legislators to seek an additional $3,600 a year for expenses:
• The chairs of standing, select and joint committees in both houses.
• The co-chairs and subcommittee chairs of the Arkansas Legislative Council.
• The co-chairs and subcommittee chairs of the Legislative Joint Auditing Committee.
• Speaker of the House.
• Speaker Pro Tempore of the House.
• Speaker-designate of the House.
• President Pro Tempore of the Senate.
• President Pro Tempore-designate of the Senate.
• The House and Senate chairs of the Review/PEER subcommittee of the Joint Budget Committee, Personnel subcommittee of Joint Budget, Claims subcommittee of Joint Budget, Special Language subcommittee of Joint Budget and the co-chairs of any committee which does not function during the session.

Also, the vice chairs of each standing, select and joint committees in either house or the vice chairs of the Arkansas Legislative Council would be eligible to receive $2,400 per year for legislative expenses.

However, there would be a $3,600 cap on the expenses that are given, according to the bill. The measure would also eliminate the $14,000 in reimbursements that a lawmaker can get for expenses, content partner KUAR reported.

Rep. John Walker, D-Little Rock, who voted against the bill, said it “sends the wrong message” considering an independent commission has reviewed salaries of legislators. However, House Speaker Jeremy Gillam, R-Judsonia, said the bill was about office expenses only and that the bill provides transparency on the expenses issue.

The bill now heads to the Senate.

While 16 legislators on a task force will debate and set policy on the future of Medicaid and health care reform, advocacy groups and state agency leaders will also be advising and discussing the issues too.

On Wednesday, Gov. Asa Hutchinson named members of a Governor’s Advisory Council on Medicaid Reform to be chaired by Surgeon General Greg Bledsoe. In addition to advocacy groups and state agency directors, the council is made up of other organizations representing Medicaid providers and recipients, as well as legislative and citizen representatives.

Hutchinson said members will work closely with the Governor’s office and the Legislative Task Force on Healthcare Reform “to identify more efficient and effective reforms for the Medicaid program.”

“I think the most important purpose of the Medicaid advisory council is to provide a voice for the various stakeholders,” said Dr. Greg Bledsoe, Arkansas’s Surgeon General. “I expect they’ll have some great ideas as to areas where Medicaid is ripe for reform. This council provides them with that opportunity to be heard. It also gives the stakeholders a direct line to the Governor through me and John Selig. I’ll provide the council a voice to the Healthcare Legislative Task Force, which I sit on as a non-voting member. So there’s a synergy, a back-and-forth communication between those two groups and also directly to the Governor.”

Members of the Governor’s Advisory Council on Medicaid Reform include:
• Leadership and State Agency Representatives
Arkansas Surgeon General Greg Bledsoe, Chair
Department of Human Services, John Selig, Vice Chair
Arkansas Department of Health, Dr. Nate Smith
University of Arkansas for Medical Sciences, Dr. Dan Rahn
Arkansas Minority Health Commission, Michael Knox

• Advisory Council Members
Alliance for Health Improvement, Robin Ravendran
Americans for Prosperity, David Ray
Arkansas AARP, Herb Sanderson
Arkansas Academy of Family Physicians, Carla Coleman
Arkansas Academy of Pediatrics, Aimee Olinghouse
Arkansas Advocates for Children and Families, Rich Huddleston
Arkansas Association of Area Agencies on Aging, Jerry Mitchell
Arkansas Behavioral Health Council, Angie Lassiter
Arkansas State Chamber of Commerce, Kurt Knickrehm
Arkansas Center for Health Improvement, Dr. Joe Thompson
Arkansas Foundation for Medical Care, Ray Hanley
Arkansas Health Care Association, Rachel Davis
Arkansas Hospital Association, Ray Montgomery
Arkansas Medical Society, Dr. David Wroten
Arkansas Nurses Association, Veronica Clark
Arkansas Pharmacists Association, Mark Riley
Arkansas State Dental Association, Billy Tarpley
Arkansas Waiver Association, Keith Vire
Community Health Centers of Arkansas, Mary Leah
Developmental Disabilities Providers Association, Judy Watson
Families and Friends of Care Facility Residents, Darrell Pickney
HomeCare Association of Arkansas, Nancy Elphingstone
Mental Health Council of Arkansas, Dianne Skaggs
National Federation of Independent Businesses, Sylvester Smith
Partners for Inclusive Communities, David Deere

• Legislative Representatives
Representative Josh Miller, R-Heber Springs
Representative Vivian Flowers, D-Pine Bluff
Senator Missy Irvin, R-Mountain View
Senator Joyce Elliott, D-Little Rock

• Citizen Representatives
Dr. Jack Sternberg
Dr. Carl Johnson
Mr. Sandy Stroope

State lawmakers formed a task force through legislation to reform Arkansas’ Medicaid and health care system. The panel is tasked with a December 2015 deadline to come up with recommendations for reforms, while the legislation said that Arkansas’ private option Medicaid expansion program will end by December 2016.

The task force has met twice to organize its business for the remainder of the year.

Tips on how to get a job at the soon-to-open Parrot Island Waterpark, a message from a guy who is trying to hold it in to keep his sewer rates low, and a special message from Fort Smith Mayor Sandy Sanders are featured on this week’s edition of The Video Wire.

The Video Wire anchor Dawson Meadows also provides details on how you can win a “Golden Noose,” and previews the upcoming Lawn & Garden show.

The Video Wire is a collaboration between The City Wire and Things to Do in Fort Smith.

As the University of Arkansas men’s and women’s basketball teams prepare for their respective NCAA tournaments this week, some workplace managers may fear that productivity will come to a halt when red-clad Razorbacks fans and other college logo-adorned devotees come to work on Thursday.

The Arkansas men’s basketball team will return to the NCAA Tournament as the No. 5 seed in the West Region and will take on No. 12 seed Wofford in Jacksonville, Fla., on Thursday at 8:50 p.m. The No. 10 seed women’s basketball team will face Northwestern in their first round game in Waco, Texas on Friday at 11 a.m.

For the men, the NCAA Tournament appearance will be Razorbacks’ first since 2008 and the program’s 30th overall. Arkansas earned an at-large bid after finishing second in the SEC regular season standings and second in the SEC Tournament.

The questions for some Arkansas employers during March Madness is just how to handle all chaos from office betting pools, impromptu Razorback pizza and cheese-dip parties, and the inevitable strain on corporate networks and servers from the hours of desktop live streaming during the month-long tournament.

The National Federation of Independent Business recently posted a video on its website to help business owners deal with March Madness in a way that is not disruptive to the workplace.

“The bad news for employees is that the majority of the games take place from 9 a.m. to 5 p.m. during the weekday,” Beth Melito, senior counsel at NFIB’s legal center said. “This means that employees can and mostly will follow along on their computer, iPad and smartphones to watch games and track (March Madness) brackets while at work.”

Melito offered some tips for employers to embrace all the “madness” in a manageable way. Those suggestions include establishing a “game central” location at work, relaxing dress codes, keeping office pools low key and voluntary, and checking on the legal ramifications of high-stakes bracket contests.

LOSS OF PRODUCTIVITY OR MORALE BOOSTER?
Challenger, Gray & Christmas Inc. has put out an annual survey estimating the actual cost in terms of lost wages paid to distracted and unproductive workers that participate in March Madness office pools. This year’s survey estimates that 50 million Americans participating in bracket contests at work, cost employers near $1.9 billion in lost productivity.

“That figure may be on the conservative side, considering this year could garner a lot more interest from even casual basketball fans eager to see if Kentucky can continue its undefeated season through the tournament,” John A. Challenger, CEO of Challenger, Gray & Christmas said in a news release.

“If Kentucky plays their first tournament game during the workday, it wouldn’t be shocking if every single working person in the state called in sick for the day or took an extra-long lunch break,” Challenger joked.

Challenger’s estimate is based on the number of working Americans who are likely to be caught up in March Madness; the estimated time spent filling out brackets and streaming games; and average hourly earnings, which, in January, stood at $24.78, according to the Bureau of Labor Statistics.

But a new OfficeTeam survey suggests that March Madness may actually be good for the workplace. In the OfficeTeam poll, half (50%) of senior managers interviewed said activities tied to the college basketball playoffs boost employee morale, and more than one-third (36%) felt March Madness has a positive impact on workplace productivity. These results are up from 32% and 27%, respectively, in a similar survey conducted one year ago.

“Employers that encourage staff to enjoy events like March Madness recognize that these activities don’t have to be viewed as negative workplace distractions,” said Robert Hosking, executive director of California-based staffing service firm. “Organizing friendly contests or watching big games together can give employees much-needed breaks and opportunities to build camaraderie.”

OfficeTeam also identifies five mistakes workers should avoid when celebrating March Madness.
• Going against the playbook. Before participating in any tournament-related activities, find out your company’s policies on employee breaks, accessing the Internet for non-business purposes and decorating workspaces.

• Taking too many time-outs. If your employer is OK with it, take occasional breaks to check scores or talk hoops with colleagues, but make sure to keep up with your assignments.

• Failing to have a game plan. If you want to take time off to watch the playoffs, let your boss know as far in advance as possible so he or she can manage workloads.

• Being a poor sport. It’s fine to root for your favorite school, but don’t get overly competitive in the office.

• Not being a team player. Even if you aren’t a sports fan, try to join in on celebratory activities to bond with co-workers.

SILOAM SPRINGS MANUFACTURER GETS INVOLVED
No doubt, some Arkansas employers recognize that Thursday will be like a national holiday in Arkansas as the Razorbacks prepare for their matchup. Alternative Design Manufacturing and Supply in Siloam Springs is holding a 20% off online sale through March 20 on all Razorback related products through its Osage Eagle Products brand.

Jay Martin, marketing manager for the Northwest Arkansas manufacturer, said the company is holding its “March Mania” sale on its lineup of licensed Arkansas Razorback products through March 20.

“Knowing that Arkansas is in the tournament, we thought this would be a great time to take advantage of the fact that we are approved to manufacture Razorback licensed products – plus we wanted to have a little fun,” he said.

Martin said the company was started by University of Arkansas alumni and Razorback fan Eddie Lloyd and his son, company president Grant Lloyd, making steel caging products for the poultry and animal laboratory industries. In the past few years, the company has diversified into the product licensing arena through Osage Eagle Products, and makes license plates, wall art, yard signs and other University of Arkansas and Arkansas State University labeled products.

Langston, also a University of Arkansas alumnus, said Thursday will be a big day for Razorback fans and admitted that not a lot of work will probably be done.

“We have a bracket contest that I have been running for the last three years, and we get ten to 15 of our 50 employees involved,” he said. “You get bragging rights for a year if you win. Our owners are very interested in making work fun and support this endeavor.”

Restaurants and foodservice operators continue to look for ways to win favor with the diverse and huge demographic known as the Millennials who comprise about 27% of the U.S. population.

A recent report from the NPD Group found this huge cohort has two distinct life-stages — elders between 25 and 34 years old and the younger group between the ages of 18 and 24. The report found that both groups are spending less money at foodservice venues than they once did.

Companies like Springdale-based Tyson Foods are also watching the Millennial generation with respect to food preferences. Andy Callahan, vice president of retail operations at Tyson Foods, said Wednesday (March 18) that this segment of the population is also driving the snack craze, consuming up to 7 small meals a day, unlike other generations.

The market research company said that for U.S. restaurants and foods service outlets, Millennials represent about 14.5 billion visits and $96 billion in spending, which is 23% of total restaurant spend, but this cohort has reduced visits and spending in the past few years. Specifically, NPD found older Millennials more likely to have children have cut back the most on restaurant visits, making 50 fewer visits per person over the past several years. Younger Millennials, those who are 18 to 24, made 33 fewer visits per person.

Annual per capita restaurant spend for younger Millennials is $1,240, which is down $146 per person compared to their spending in 2007. Older Millennials’ annual per capita spend is $1,369, down $213 per person, according to the NDP report.

DEMOGRAPHIC TRENDS, DEMANDS
The research found several reasons why Millennials have reduced their restaurant visits, with the most frequent being money. The group with young children cite budget restraints which has them opting for less expensive at-home meals. Another trend noted in the research is that about half of Millennials enjoy cooking. They say cooking at home saves money, they can control tastes and make healthier meals.

“Even with their cutbacks Millennials still make a lot of visits to restaurants and to encourage more visits, restaurant operators need to offer them a ‘good deal,’ which to Millennials means reasonable and affordable items that are of good quality and the right quantity,” said Bonnie Riggs, NPD restaurant industry analyst. “In other words, they not only want to get their money’s worth, they want good food and service.”

Food industry experts like Chris Egan, president of Kansas City-based Service Management Group, said that regardless of price point, Millennials expect a great dining experience.

"Affordable fast-casual and fast food restaurants with locally sourced goods, exotic flavors, and service levels historically reserved for higher-quality restaurants will most likely garner a disproportionate share of Millennial dining spending."

MILLENNIAL FAVORITES COMING TO NWA
A separate report from YouGov Brand Index recently released its top list for restaurants that most resonate with Millennials based on repeat business. For Millennials who already patronize Jimmy John’s, 83% of them say they would consider eating there again the next time they are looking to dine out. The next highest scorers among their own current customers are Chipotle (82%), Chick-Fil-A (78%), and Whataburger (76%). Subway rounded out the top five with a 73% loyalty rate.

Two of those chains are investing in Northwest Arkansas, with Whataburger and Chipotle adding new locations in Fayetteville.
Whataburger is under construction at 1956 Martin Luther King Jr. Blvd. in Fayetteville. A second location has been approved at 4335 S. Pleasant Crossing Blvd. in Rogers.

Chipotle, which already has locations on Dickson Street in Fayetteville and South Walton Boulevard in Bentonville, is opening a new eatery at 3379 College Ave. in Fayetteville, according to permits on file with Arkansas Department of Health.

Other restaurants coming soon to Northwest Arkansas that have already found favor with the Millennial generation include:
• Pei Wei Fresh Kitchen at 4895 W. Pauline Whitaker Blvd., Rogers; 
• Smashburger at 500 S.E. Walton Blvd., Bentonville; and
• Uncle Maddios, make-it-your-way pizza at 2012 S. Promenade Blvd., Rogers.

The Fort Smith Board of Directors and city staffers engaged Thursday (March 19) in what at times was spirited discussion related to the city’s budgeting process used to manage and monitor expenses and revenue.

The special study session was held to continue a discussion began at a March 10 study session. At least four Board members – Directors Keith Lau, Mike Lorenz, Tracy Pennartz and Kevin Settle – prefer a new “structural” method for how the city handles a prior-year general fund balance with respect to future budgeting decisions.

Lau said using a fund balance from previous years doesn’t accurately provide a real world financial picture. He said with future costs related to fire and police pensions and other possible issues, the Board needs to have a budget process that allows them to plan for not only the next year, but future years. Not having access to quality data “sets a tone of we don’t know what we’re doing because we don’t have a long-term plan,” Lau said.

For example, the city budgeted in 2014 to end the year with a $3.425 million fund balance. The actual year-end balance was $6.745 million, more than $3.32 million above the budget. Lau said during the March 10 Board study session that some of this money could have been used to pay down fire and police pension (LOPFI) obligations, and would have resulted in a smoother budgeting process going into 2014.

But Mayor Sandy Sanders, Director Don Hutchings, City Administrator Ray Gosack and city Finance Director Kara Bushkuhl defended the “cyclical” accounting method now used by the city. (Director André Good, who is battling an illness, was not at Thursday’s meeting.) Sanders said year-end fund balance data back to 1994 provided by Bushkuhl show a “favorable” trend that indicates the system is working. Indeed, the period between 1994 and 2014 shows an overall net gain of $2.015 million. However, the recent trend is not as favorable. Between 2004 and 2014 the trend is a $1.879 million loss.

Bushkuhl noted in a memo to the Board that advantages of a cyclical budget include familiarity, conservative revenue estimates, multi-year perspective provides better future financial planning, spending for actual needs, and avoids negative changes in service levels because of changes in available funding. Her note did say a disadvantage of this budgeting is the possibility of “spending above current year revenues.”

Director Pennartz argued that the Board needed a better examination of “revenue streams” before making future rate changes or other policy decisions. She also disagreed with Mayor Sanders who said now is not the time to change budgeting systems with the city about to enter a “massive” 12-year effort that could cost an estimated $480 million to comply with a federal order to fix and adequately maintain the city’s sewer system.

“I think it (new budgeting system) can be done, and it needs a staff that is flexible enough to adhere to the Board’s policy,” Pennartz said.

Director Lorenz argued that the financial trend line of the past several years can’t continue. He said the fund balance, which he likened to a “savings account,” will run dry if negative balances continue.

“At that point, how do you balance the budget? … If you continue to take out of the savings account, you eventually run out,” Lorenz said.

But Gosack said that won’t happen because the city staff would not budget the city into a position that would drain the fund balance.

After several minutes of a tense back and forth between several Directors and Bushkuhl, Lau said he is “not pointing fingers,” but is focused on finding “a better system” to monitor expenses and revenue.

Gosack said for the 2016 budget the city staff will work on being more precise on revenue and cost estimates. Pennartz suggested Gosack return soon to the Board with new language providing new guidelines for “fiscal performance.” The new language will require Board approval.

The right of the Arkansas Department of Correction to select a chemical used in executions does not violate state law or separation of powers, the state’s highest court ruled Thursday. Gov. Asa Hutchinson said he is already moving to continue executions.

The Arkansas Supreme Court voted 4-3 in overturning a ruling by Pulaski County Circuit Judge Wendell Griffen that Act 139 of 2013 violated the state’s Constitution on the issue. In a 24-page ruling, Associate Justice Karen Baker said the law, passed by the Arkansas General Assembly, was legal.

“We disagreed, and hold that Act 139 is not an unconstitutional violation of the separation of powers clause found in this state’s constitution,” Baker wrote. “We affirm the circuit court’s conclusion that Act 139 is not a sentencing statute and, therefore, does not violate our rules against retroactive application of sentencing statutes.”

A group of death row inmates challenged the law, saying the ADC used phenobarbital, to “effectuate death by lethal injection in Arkansas.” The inmates argued that the law allows prison officials to use a wide variety of drugs, but that phenobarbital and lorazepam are the only drugs used. The inmates also argued that the law was being used retroactively against them, creating constitutional concerns.

However, Baker said in her ruling that the state’s law on capital murder was set before the law was passed.

“…Act 139 does nothing to change the criminal liability or sentences for capital murder in Arkansas. Thus, there was no need for the General Assembly to state that Act 139 may be applied retroactively, because the Act will not be ‘retroactively’ applied but will instead apply to all executions held after enactment,” Baker wrote.

“We hold that Act 139 does not violate the separation-of-powers principle contained in article 4 of the Arkansas Constitution. The delegation of authority contained within Act 139 is not unfettered and is bounded by reasonable guidelines from the legislature. Therefore, we reverse the circuit court’s conclusion that Act 139 is unconstitutional. In addition, we hold that Act 139 is not a sentencing statute and, because it will be applied only to executions after its enactment, does not violate our rules against retroactive application of sentencing statutes. Therefore, we affirm the circuit court’s findings on this point.”

Chief Justice Jim Hannah and Associate Justices Paul Danielson and Robin Wynne concurred in part and dissented in part of the ruling.

Attorney General Leslie Rutledge said Thursday she was supportive of the ruling.

“I am pleased that the State’s highest Court has upheld the constitutionality of Arkansas’s death penalty law that provides for executions to occur by lethal injection. I am hopeful that this decision will allow the convictions of those on death row to move forward so that some closure and justice is brought to the families of the victims. As Attorney General, I remain committed to working with the General Assembly to strengthen the State’s death penalty law even further,” Rutledge said in a statement.

Hutchinson said he’ll soon start making plans to continue executions in our state.

“I’ve already met with the attorney general on this topic, looking at the status of the ones that are currently pending and to see what the next steps are. Now that we have this issue resolved, we’ll go back and see what the time frames are, and I think that the first step is to make sure that the Department of Corrections has what it needs to carry out the legislative direction,” said Hutchinson.

A pair of bills that would seek to end the practice of “rehoming” in the state of Arkansas received overwhelming approval in the State House Friday (March 20), including from a state representative whose personal controversy brought the issue to the legislature’s attention.

The House voted 88-0 each to approve House Bills 1676 and 1648 during a Friday morning session at the state Capitol. Rep. David Meeks, R-Conway, who sponsored House Bill 1676, said his bill was modeled after a Louisiana bill on the topic.

The practice, called “rehoming,” involves allowing adoptive parents to transfer custody of their adopted children to someone else. Meeks said his bill would ban parents from finding someone else, other than family, to transfer custody of a child.

There have been about 10 cases of rehoming in Arkansas in recent years, Meeks told the House, noting the bill would also provide post-adoptive services to parents who may face trouble with an adoption. The bill also strengthens the state’s abandonment statute.

Under Rep. Leding’s bill, HB 1648, rehoming would be banned except to relatives, would provide a clear definition on the terms of any subsidy agreement between the state and adoptive parents as well as mandating a home study by the Department of Human Services. Leding said the bills were a joint effort to address a serious issue. The two bills both make “rehoming” a felony crime.

Both bills received strong support in the House Judiciary Committee Tuesday with sponsors working with the governor’s office and DHS to craft the legislation, Leding said.

Gov. Asa Hutchinson also announced this week that he will conduct an investigation, out of his office, to study the child welfare system in the state.

The bills now head to the Senate, where Sen. Missy Irvin, R-Mountain View, will be the chief sponsor for both measures.

Officials have been discussing the issue since details about an adoption involving Rep. Justin Harris, R-West Fork, were disclosed. In a story earlier this month, the Arkansas Times reported on allegations about the adoption of three children that Harris and his wife, Marsha, did with DHS in 2013. Two of the children were given to another couple, Eric and Stacy Francis, according to an Arkansas State Police investigation.

Eric Francis was arrested in connection with sexually assaulting one of the children and was sentenced to 40 years in prison in the case.

The Harris’ have not been arrested or charged with anything in connection with the case and have stated their family had numerous problems with DHS officials on the adoption matter. Harris, who resigned his committee leadership posts Monday, voted yes on both bills.

With the Arkansas Supreme Court ruling this past week declaring the state’s lethal injection procedures as constitutional, executions in Arkansas are set to move forward after a decade of being on hold.

Arkansas Attorney General Leslie Rutledge, who appeared on this week’s edition of Talk Business & Politics on KATV Ch. 7, said there are 32 inmates on Death Row, with 8 inmates having exhausted all of their appeals. Still, she said, carrying out the death penalty won’t be immediate.

“This is not something that’s going to happen in the next couple of weeks. I know there’s quite a bit of angst and talk about that because of the Supreme Court’s decision,” said Rutledge, whose office works with the governor’s administration to coordinate state executions.

She said the Department of Corrections must first obtain the drugs needed in order to carry out lethal injections.

“Once they do that, we’ll be able to send the names to the governor,” Rutledge said.

Prison systems around the country have had difficulty obtaining drugs for lethal injections as manufacturers have either refused to sell the drugs for execution purposes or they have decided against it to avoid the publicity and protests that accompany the sales.

Even for those inmates whose appeals are exhausted, Rutledge said she expects new rounds of lawsuits to occur.

“I am certain there will be litigation because of the seriousness of the issue at hand,” she said.

Rutledge also said she’s working with the state legislature to find ways to strengthen Arkansas’ death penalty law.

“Some of the things that we’re looking at are confidentiality of companies that provide the drugs necessary to carry out a lethal injection. Because of so many protests and public scrutiny that comes to those companies, many states have gone this direction in order to protect the private businesses,” she said.

FEDERAL PUSHBACK
Rutledge has also been fulfilling a campaign promise to “stand up” to the federal government on a number of issues she considers overreaching. Her office has joined a lawsuit to push back on the EPA’s so-called Clean Power Plan, which would cut existing power-plant carbon emissions from 2005 levels by 30% by 2030.

The plan has been the subject of controversy among power companies, alternative energy supporters and business interests since last June when the rule was proposed.

Arkansas environmental and utility regulators are studying the potential impact in conjunction with various stakeholders with an interest in the new rule.

Eventually, a state or regional plan to try to comply with the EPA edict will be submitted, if litigation to halt it is unsuccessful.

Next Tuesday, Rutledge will appear before the U.S. Senate Committee on Agriculture, Nutrition and Forestry for a hearing on the EPA’s “waters of the United States” proposed rule. She says the proposed water regulation has the potential for widespread impact on row crop farmers. Rutledge said her testimony before the panel will be more influential than just sending comments.

“What I’ve heard from our members of Congress in the Senate is that it’s important to have to have the state’s lawyer to come explain why it’s an encroachment on states’ rights,” she said.

A town hall meeting slated for 6:30 p.m. on March 31 in Elm Springs aims to answer questions and concerns regarding a proposed wind farm just outside of Springdale. If built, it would be the first large wind energy project in Arkansas.

Elm Springs Mayor Harold Douthit has a few questions about a proposed 80-megawatt wind farm planned for development in unincorporated Washington County, about a mile west of this small city in Northwest Arkansas. That’s why the city administration has called meeting.

“The CEO of Dragonfly Industries International will be here to answer the concerns of folks around the site,” Douthit said. Some residents have said they are concerned about the project being harmful and unsafe.

Dragonfly officials told The City Wire they aren’t prepared to discuss specifics of the project until they complete preparations for the town meeting. The company is wanting Elm Springs to annex the 311 acres west of town for the wind farm. Published estimates are the project will cost about $100 million to develop. Dragonfly has not said how many jobs might be created in the construction and operation of the wind farm or the overall economic impact of the project.

“This is cutting edge technology, clean air, environmentally friendly,” Douthit said, “It’s what the green movement is all about.”

If developed as planned, it could be the first wind farm in Arkansas.

A spokesman at Ozarks Electric Cooperative Corp. in Fayetteville said the electricity generated by 80 megawatts could power about 20,000 homes, “if all conditions were right.” The land where the farm would be built is in the Ozarks service area.

But others have said it is likely Dragonfly would sell the electricity generated from the wind farm to American Electric Power, the parent company of SWEPCO, which has a distribution plant about a mile away as “the crow flies” in neighboring Tontitown, Douthit said.

Another option could be a partnership with Clean Line Energy Partners, a Houston-based company seeking permission from the U.S. Department of Energy to build a 3,500-megawatt, direct current line that would transmit power generated on wind farms in western Oklahoma through Arkansas to Tennessee. This line would furnish electricity to the Tennessee Valley Authority for distribution in southern and southeastern states.

Opposition to the proposed wind farm has been organized around a Facebook page, named “Stop the Elm Springs Wind Farm.” The main opponent is Jonathon Hamby. Douthit said he is concerned opposition is coming from outside the Elm Springs community because there are only about a dozen residents who live around the property where the farm would be built.

If the property is annexed into the city, the benefits would include police and fire protection and a lower tax base but the company would still have to get the proper approvals from federal and state agencies. Dragonfly has not made an official request to the city for annexation of the property.

“The city’s voice is moot in the issue now,” Douthit said.

Douthit said the planned site is on a hill and according to what he has been told by Dragonfly officials, the site would be surrounded by a 25-foot berm with trees planted on top of the earth barrier.

Douthit said he has learned that the turbine itself looks like a jet engine without the visible blade of the traditional windmill-style turbine. A computer atop a 100-foot pole the turbine is on controls each turbine remotely. The computer can move the turbine to pick up the wind flow. As the wind passes through the enclosed turbine, it picks up speed. Each pole is designed to hold two turbines.

“It doesn’t make the ‘whoosh whoosh’ noise that the propellers make,” he said.

His information comes from a meeting he and other city officials had with Dragonfly in December. He said he also looked at the company’s website.

“It appears to me there will be a wind farm. The question is whether it will be in Elm Springs or Washington County,” Douthit said.

Airline travel remains popular in Northwest Arkansas and the Fort Smith area, with enplanements for the first two months of 2015 up 6.89% and 2.87%, respectively, at the two commercial airports.

The activity is not a surprise considering the trend in overall U.S. travel and tourism spending. The federal Bureau of Economic Analysis reported March 18 that real spending on travel and tourism rose at an annual rate of 4.5% in the fourth quarter of 2014, after rising 3.4% in the third quarter. Leading contributors to the rise was air travel and recreation and entertainment, according to the BEA report.

Travel gains are likely to continue at the two airports. Airlines for America, the trade association for most of the major airlines, predicts Spring 2015 travel will rise to its highest mark in seven years. The group says approximately 134.8 million passengers – 2.2 million per day – are expected to fly on U.S. airlines during March and April compared to 132.2 million passengers in 2014, a 2% per day increase.

“A4A attributes the increase in spring air travel to rising U.S. employment and personal incomes, an improving economy, the highest consumer sentiment in a decade and the continued affordability of air travel, which remains one of the best bargains for consumers,” John Heimlich, A4A vice president and chief economist, said in a statement. “To meet the extra demand, airlines are adding seats to the marketplace, in part by deploying new and larger aircraft on many routes.”

XNA, FORT SMITH TRAVEL
Enplanements at the Northwest Arkansas Regional Airport (XNA) totaled 88,139 for the first two months of 2015, up 6.89% compared to the same period in 2014. XNA ended 2014 with 640,537 enplanements, up 10.15% over 2013, and more than the record of 598,886 enplanements in 2007. The 2014 gain also marked the third consecutive year of increased traffic at the airport.

XNA had 43,708 enplanements in February, up 6.93% compared to February 2014.

The airport is served by five airlines that provide connections to 10 U.S. cities. XNA’s first full year of traffic was 1999, and the airport posted eight consecutive years of enplanement gains before seeing a decline in 2008.

Enplanements at the Fort Smith Regional Airport total 13,409 for the first two months of 2015, up 2.87% compared to the same period in 2014. Enplanements at Fort Smith totaled 92,869 in 2014, up 9.87% compared to 2013.

February enplanements at Fort Smith totaled 6,489, up 4.45% over February 2014. The airport offers flights to Atlanta and Dallas-Fort Worth through Delta and American Airlines.

The Bill & Hillary Clinton National Airport in Little Rock posted enplanements of 130,598 for the first two months of 2015, down 8.74% compared to the same period in 2015. The airport was the only one of Arkansas’ largest commercial airports to not post an enplanement increase in 2014. Enplanements in 2014 totaled 1.038 million, down 4.32% compared to 2013.

February enplanements in Little Rock totaled 61,945, down 10.82% compared to February 2014.

The most recent federal data – U.S. Department of Transportation – show 59.903 million enplanements in the top 100 U.S. airports between February and November 2014, up 3.24% compared to the same period in 2013.

ENPLANEMENT HISTORY (Fort Smith Regional Airport, since 2000)
2014: 92,869
2013: 84,520
2012: 86,653
2011: 86,234
2010: 86,129
2009: 78,432
2008: 87,030
2007: 99,127
2006: 94,717
2005: 102,607
2004: 92,928
2003: 90,493
2002: 87,944
2001: 95,419
2000: 104,182

ENPLANEMENT HISTORY (Northwest Arkansas Regional Airport, since 2000)
2014: 640,537
2013: 581,487
2012: 565,045
2011: 562,747
2010: 570,625
2009: 540,918
2008: 571,845
2007: 598,886
2006: 586,320
2005: 583,940
2004: 511,714
2003: 448,228
2002: 400,063
2001: 374,122
2000: 367,157

It is a celebration that will be nearly three years in the making ... well, more accurately 200 years in the making. The City of Fort Smith will turn 200 on Dec, 25, 2017, and city officials plan to mark its bicentennial with a year-long series of festivities and special events.

Mayor Sandy Sanders announced tentative plans for the 200th birthday celebration in conjunction with the unveiling of Go Fort Smith in early February. He noted that a committee had been formed for the project and the group wanted to use the milestone as a way to "highlight the unique stories about our past and to recognize and celebrate the impact on our history by real people."

Festivities will formally begin in December 2017, the city's 200th birth month.

"It was Christmas Day that year that when Major Bradford and his troops disembarked here and began constructing Fort Smith," said Sanders. "Our goal is to have some sort of event on that day, even though it is a major holiday. We just aren't sure what that will look like yet. We are open to ideas."

EARLY PLANNING FOR 2017
The year will be divided into four quarters that each emphasize various aspects of the city's history. The first will include a showcase of the arts, which will involve the Fort Smith Regional Art Museum (RAM). Executive Director Lee Ortega, who serves on the bicentennial planning committee, will collaborate with the group to encourage regional artists to use their talents for the celebration.

According to the Go Fort Smith website, the first quarter will highlight the city's "rich culture of arts and history." During these months, organizers' focus be "on bringing life to artifacts and exhibits that make up our past, present, and future. We will also focus on uncovering new artists and talents based right here in Fort Smith."

"We are also hoping to involve groups such as the Fort Smith Symphony and other art-centered organizations from January through March," said Sanders. "We encourage creativity for this project and believe that these groups will be instrumental in kicking off the celebration in a unique way."

The second quarter will center around Fort Smith's remarkable history. Tying in perfectly with the existing Western Heritage Month activities in May, April and June festivities will complement with other "True Grit" special events. Leisa Gramlich, Fort Smith Museum of History executive director, also serves on the committee and will play a key role in shaping the organization's activities to highlight the bicentennial.

"In addition to special exhibits at the Museum of History, it is our hope that businesses, particularly those downtown, will embrace the theme and decorate store fronts for the occasion or dress in Old West costumes," said Sanders.

"Coming Home" will be the central idea of the third quarter, with an emphasis on former Fort Smith residents returning to visit during the typical summer vacation months. The annual Mayor's Fourth of July Celebration will be the cornerstone event of the quarter.

"We are encouraging former Fort Smith residents to return home during this time and for locals to host gatherings and family reunions," said Sanders.

The bicentennial year will conclude with a spotlight on Fort Smith's "Promising Future.” According to the group site, "We love where we've been and where we are at. It's easy to focus on who we were, but during these months we will be focusing on where we are going. We will explore what the future holds for you and our great community."

"We want people to think to tell us what they think Fort Smith will look like in the future," said Sanders. "This might include a parade with futuristic floats, cars of the future, etc. Different people will have different visions for the city's future and we want to learn what those are. It is a great way to wrap up a year focused on our rich history."

PUBLIC INPUT SOUGHT
A major component of the bicentennial celebration will be involving the public and gathering ideas from Fort Smith residents on how to mark the milestone birthday. The Go Fort Smith website and social media channels will be heavily used to gather ideas and resources for the project. They will also be utilized in promoting events and advertising activities.

"We want to hear from the public on this and get their thoughts for how to celebrate our 200th year," said Sanders. "We have an outstanding committee in place, but the more people thinking about this and coming up with creative ways to celebrate, the better."

Sanders and the planning team have already capitalized on the talents of several local students and individuals in organizing the project. Local businessman and designer Mason Kesner was invited to serve on the committee and share his skills to provide digital services for the bicentennial celebration. The group also partnered with University of Arkansas at Fort Smith, recruiting Professor Bryan Alexis' graphic design students to submit logo and material designs to be used throughout the campaign.

Three finalists presented their designs to Mayor Sanders and the committee, with one, Leo Padilla, ultimately chosen for his work. Comprised of a five-pointed star, the logo was designed to serve as a reflection of Fort Smith's history and its future. In his statement regarding being selected for the honor, Padilla noted, "I am extremely proud to be a part of such a wonderful city, and even more excited to participate in its new chapter. It is my hope that this logo will help direct the city of Fort Smith into the future while representing our heritage and pride across the great state of Arkansas and our nation."

Sharing ideas has been made simple with an easy to complete form located on the home page of the Go Fort Smith website. Individuals, groups, and businesses can utilize the tool to tell what they would like to see happen and to communicate their plans for the different quarters.

"We want to see businesses, individuals, non-profits, schools, civic groups, and others take part in this event," said Sanders. "We are still in the very early planning stages, so it the perfect time to begin sharing ideas."

Sanders and the committee will make more announcements in the coming months about the bicentennial as plans unfold.

It was a hodge-podge of activity Monday as legislators started what could likely be the last full week of the 2015 legislative session. A capital gains tax cut bill was amended Monday after sponsors found a mistake in the wording of the bill, while several election and energy related bills got a full airing in committee and on the floor.

A mistake found in the wording of a capital gains tax cut bill led to House members approving an amendment Monday. The bill, House Bill 1402, will seek to reinstate a 50% exemption rate for capital gains set during the 2013 legislative session.

A 40% exemption rate was set earlier in the session when lawmakers approved a tax cut bill. The House Revenue and Taxation Committee voted Thursday to approve the bill in committee.

The original amendment, from Rep. Joe Jett, D-Success, called for the 40% rate to go up to 45%, retroactive to Feb. 1, 2015; and then to 50% effective July 1, 2016. Also, a $10 million exemption rate would stay in place.

The new amendment would strike the 50% rate from Jan. 1 to Feb. 1; set the 45% rate, beginning Feb. 1, 2015; and keep the remaining rates in effect. The new amendment will go back through committee Tuesday; and head back to the House floor Wednesday, Jett said.

SIMULTANEOUS RUN BILL
The House voted 62-14 in favor of a bill to allow a candidate to run for more than one federal office at the same time. The bill, Senate Bill 803, was sponsored by Sen. Bart Hester, R-Cave Springs and Rep. Nate Bell, R-Mena. Under the bill, a federal candidate “may be a candidate for President or Vice President of the United States and United States Senate or United States House of Representatives in the same primary and general election.”

The bill, which heads back to the Senate, has drawn some interest since it was filed earlier this month. At a committee hearing, Hester said he had Sen. Tom Cotton, R-Ark., in mind when he filed the bill. However, Hester has said he did not speak to Cotton about the bill.

UTILITY BILL
The Joint Energy Committee approved House Bill 1633, sponsored by Rep. Warwick Sabin, D-Little Rock, which will allow a utility to enter into a power purchase agreement.

Under the bill, a power purchase agreement would be an agreement between a “generator of electricity and a utility for the sale of electricity, generation capacity or ancillary products to the utility.”

“A utility shall not enter into a power purchase agreement for a term of more than five years or recover the cost of the power purchase agreement in rates unless the (Arkansas Public Service) commission finds that the cost of the power purchase agreement is reasonable and prudent; provides savings for retail customers as compared to other generation and power supply options over the term of the power purchase agreement,” the bill noted. “The power purchase agreement is required by public convenience and necessity; the power purchase agreement is necessary to supplement or replace the utility’s existing generation sources; and approval of the power purchase agreement is in the public interest.”

The bill now heads to the House floor.

ELECTION BILLS FAIL
The House State Agencies and Governmental Affairs Committee voted against two election-related bills Monday. During a meeting at the Capitol, committee members heard from committee chairman, Rep. Nate Bell, R-Mena, about House Bill 1422 and Rep. Clarke Tucker, D-Little Rock, on House Bill 1425.

Under Bell’s bill, a special election could only be held in either the May primary or November general election. Bell told the committee he worked nearly four years to help structure the bill. The bill would not have included school board elections, but would include school millage votes in the May and November setup.

School board elections are held in September while millage votes can be held at any time during the year. However, the bill would not have applied to special elections to fill vacancies, special runoffs or other special elections set by law. Bell said his bill would help increase voter turnout and build transparency in the political system.

Tucker’s bill would have required reporting and disclosure of so-called “electioneering communications.”

“A person who has made electioneering communications in an aggregate amount exceeding $5,000 in one calendar year shall file a statement with the Secretary of State within three days of the disclosure date of each electioneering communication but no later than the close of business on the day before the election,” the bill noted.

Tucker said the bill would open up the state’s political campaign finance records to scrutiny from the public. However, Dan Greenberg, an official with the Advance Arkansas Institute, said the bill would harm the free speech rights of people who contribute to groups.

ON THE ROAD
A bill that supporters say would attempt to get uninsured drivers off Arkansas’ highways was approved Monday by the House. The House voted 54-21, with one present, in favor of House Bill 1871. The bill, sponsored by Rep. Bob Johnson, D-Jacksonville, would create an online motor vehicle liability insurance verification system in the state. Johnson told the House that his bill would “put teeth” into current state law. Under the bill, a person’s vehicle could be impounded if the person, who does not have insurance, has an accident or is pulled over.

Johnson said the system would be created by a third-party and have about a $1.5 million to $1.8 million price tag. Funding is not available for the system. Once funding is set, the program would start Jan. 1, 2017, Johnson said.

The bill now heads to the Senate.

THE ‘DAVE & BUSTER’S’ BILL
The Senate voted 33-0 Monday to amend the state law on coin-operated amusement devices, while attempting to bring a national restaurant chain to Little Rock, content partner KUAR reported.

The bill, Senate Bill 745, is sponsored by Sen. Jeremy Hutchinson, R-Benton. According to the so-called “Chuck E. Cheese” state law, the prize value of games played once is limited to $5 or less. If a person plays and wins multiple tickets, the number goes up to $12.50. However, people can win prizes in the $500 range at Dave & Buster’s, KUAR reported.

Hutchinson has said the restaurant would be built in southwest Little Rock.

The bill now heads to the House.

An estimated year-over-year gain of 8,700 jobs in Arkansas’ tourism sector and 7,200 jobs gained in the trade, transportation and utilities sector pushed the state’s February jobless rate down to 5.5% – a rate not seen since August 2008.

The jobless rate for Arkansas during February fell to 5.5% compared to 6.5% in February 2014, and down from 5.6% in January, according to figures released Friday (March 27) by the U.S. Bureau of Labor Statistics. The February numbers are subject to revision.

Arkansas’ average jobless rate for 2014 was 6.1%, down 1.3% percentage points from the 7.4% average in 2013. It is the first time the annual average dropped below 7% since 2008.

The size of the Arkansas workforce – 1.326 million –  was up over the 1.293 million in February 2014. The peak for Arkansas’ labor force was a revised 1.376 million in August 2008.

The number of employed in Arkansas during February was 1.252 million, above January employment of 1.206 million, and up an estimated 42,894 jobs compared to February 2014. The number of unemployed was an estimated 73,515 during February, below the 74,373 in January, and well below the 83,824 in February 2014.

The closely watched nonfarm payroll number was 1.211 million in February, the third consecutive time the category topped 1.2 million since September 2008. The February number was up over the 1.181 million in February 2014. Nonfarm jobs reached a high in Arkansas of 1,209,800 in February 2008.

The nonfarm category does not include farm workers, private household employees, non-profit employees and “general government” employees. Investopedia estimates that the nonfarm category represents about 80% of the total workforce that contributes to national GDP.

According to the BLS, 46 states had rate decreases from a year ago, and four states – Louisiana, North Dakota, South Carolina and Tennessee – had increases. However, the North Dakota increase was from 2.7% in February 2014 to 2.9% in February 2015.

ARKANSAS SECTOR NUMBERS
In the Trade, Transportation and Utilities sector — Arkansas’ largest job sector — employment during February was an estimated 249,900, up from 249,300 in January and up over the 242,700 in February 2014. Employment in the sector hit a high of 251,800 in March 2007.

Manufacturing jobs in Arkansas during February totaled 153,700, unchanged compared to January and above the 155,500 in February 2014. Employment in the manufacturing sector fell in 2014 to levels not seen since early 1968, and is down 24% compared to February 2005. Peak employment in the sector was 247,300 in February 1995.

Government sector employment during February was 213,300, up from 213,100 in January and just slightly above the 213,200 in February 2014.

The state’s Education and Health Services sector during February had 174,200 jobs, up from 173,900 during January and up from 171,600 during February 2014. Employment in the sector is up almost 20% compared to February 2005.

The construction sector employed an estimated 49,500 in February, up from 49,000 in January and above the 45,400 in February 2014. Employment in this sector was recently revised, which dropped estimates below the 50,000 mark. The sector is off the employment high of 57,600 reached in March 2007.

Arkansas’ tourism sector (leisure & hospitality) employed 115,200 during February, up from 112,100 during January, and well above the 106,500 during February 2014. The February number, if it stands, marks a new record for employment in the sector.

A bill that supporters say will protect religious freedom and opponents say will allow for discrimination easily passed the Arkansas Senate on Friday (March 27). The 35-member body passed House Bill 1228 by a 24-7 margin.

The measure prevents state and local governments from taking actions that would violate a person’s religious beliefs unless a “compelling” interest can be shown. In theory, a caterer could invoke the law to not do business with a gay couple if it was against the business owner’s religious practices.

Senators from the Northwest Arkansas and Fort Smith areas who voted for HB 1228 are:
• Sen. Cecile Bledsoe, R-Rogers;
• Sen. Jake Files, R-Fort Smith;
• Sen. Jim Hendren, R-Gravette;
• Sen. Bart Hester, R-Cave Springs;
• Sen. Terry Rice, R-Waldron;
• Sen. Gary Stubblefield, R-Branch; and
• Sen. Jon Woods, R-Springdale.

Sen. Uvalde Lindsey, D-Fayetteville, was the only Senator from the Northwest Arkansas and Fort Smith areas who voted against HB 1228.

The only Republican in the Senate to vote against the bill was Sen. Jeremy Hutchinson of Benton. He is the nephew of Gov. Asa Hutchinson.

Gov. Hutchinson said he supports the latest version of the bill, stating that it is “important that we balance religious freedom privileges” but adding that workplaces have to be “free from discrimination.”

“I think it’s a bill that puts a higher emphasis on religious freedom,” he said on Thursday, indicating he would sign it into law.

The Human Rights Campaign, an advocacy group for gay, lesbian, bisexual and transgender equality, said the measure is creating a “newfound hostile business climate” in Arkansas and would be a detriment to recruiting high-tech companies to the state.

“Many of these companies have spoken out publicly in opposition to legislation like H.B. 1228,” noted HRC president Chad Griffin. “Many of them create the high-tech jobs you argue Arkansas hopes to attract every day.”

Bentonville-based Wal-Mart Stores Inc., the world’s largest retailer, opposed HB 1228. The company issued this statement to the media: “While HB1228 will not change how we treat our associates and operate our business, we feel this legislation is also counter to our core basic belief of respect for the individual and sends the wrong message about Arkansas, as well as the diverse environment which exists in the state.”

The group was also critical of another bill that became law earlier in the session without Gov. Hutchinson’s signature, SB 202. That law prohibits local anti-discrimination ordinances from being passed that include sexual orientation or gender identity. Hutchinson said he had reservations about the bill because it usurped local control.

INDIANA REACTIONS
One of those companies is Apple. Apple CEO Tim Cook tweeted Friday that “Apple is open for everyone. We are deeply disappointed in Indiana’s new law, and calling on Arkansas Gov. to veto the similar #HB1228.”

Indiana Gov. Mike Pence recently signed a religious freedom bill into law. According to a report by the Indianapolis Star, Indiana became the 20th state to enact a religious freedom law. Pence told the media that the bill “is not about legalizing discrimination.”

In a statement that followed his signing of the bill, Pence noted: “This bill is not about discrimination, and if I thought it legalized discrimination in any way in Indiana, I would have vetoed it. In fact, it does not even apply to disputes between private parties unless government action is involved. For more than twenty years, the federal Religious Freedom Restoration Act has never undermined our nation's anti-discrimination laws, and it will not in Indiana.”

Nevertheless, officials with several groups and businesses have said they plan to rethink their activities in the state. Officials with the NCAA, which is based in Indianapolis, expressed concern about the law’s impact on events and their workforce. Officials with the National Football League also said they are “studying” the new law. The NFL holds its annual and high-profile scouting combine in Indianapolis.

Visit Indy, the group that negotiates for the use of the Indiana Convention Center and Lucas Oil Stadium where the combine is held, opposed Indiana’s religious freedom bill.

Mark Benioff, CEO of San Francisco-based Salesforce, said his company has canceled programs that require employees or clients to travel to Indiana.

“We’re a major source of income and revenue to the state of Indiana, but we simply cannot support this kind of legislation,” Benioff said.

Yelp, a national company that provides a platform for user reviews of restaurants, shopping and other entertainment options, also opposes religious freedom laws that could open the door to discrimination based on sexual orientation. Yelp CEO and co-founder Jeremy Stoppelman said such laws will eventually hurt a state’s economy.

“It is unconscionable to imagine that Yelp would create, maintain, or expand a significant business presence in any state that encouraged discrimination,” Stoppelman noted in a Politico story.

ARKANSAS 10 COMMANDMENTS LAW
Also, a plan to build a monument honoring the Ten Commandments was approved by a House committee Friday morning, clearing the way for debate on the House floor. The House State Agencies and Governmental Affairs committee voted to approve Senate Bill 939, sponsored by Sen. Jason Rapert, R-Conway.

Under the bill, a monument would be built, using private money, on the Capitol grounds. Rep. Kim Hammer, R-Benton, who cosponsored the bill, said it was patterned after other states including Oklahoma.

The Secretary of State’s office would be in charge of permitting and arranging for the monument, which would be located near several other monuments on the grounds. Hammer was quick to point out that no state funding would be used for the project and that the monument would honor the text of the religious document.

Several people including Karen Seal and Jim Sewell spoke against the bill, saying it violated a belief in the separation of church and state. However, Paul Calvert spoke in favor of the bill saying that the state’s Constitution mentions “Almighty God” in its text.

The Senate overwhelmingly voted 27-3 to approve the bill, which now heads to the House floor.

The committee also approved a bill to study government restructuring in the state. The bill, Senate Bill 382, sponsored by Sen. Eddie Joe Williams, R-Cabot, would look at restructuring at least 125 state agencies into at least 10 state departments. The bill goes to the House floor.

PRESIDENTIAL PRIMARY BILL
Also, voters may be heading to the polls earlier than usual next year after the Senate approved a bill to change the date of the state’s presidential primary. The Senate voted 20-5 to approve Senate Bill 389, sponsored by Sen. Gary Stubblefield, R-Branch.

Under the bill, the presidential primary in the state would be held on the first Tuesday in March, or March 1 next year. Each political party in the state would be in charge of setting the qualification of candidates, as well as accepting and processing applications.

If approved, the bill would also set a Nov. 2-Feb. 22 period for candidates to file paperwork with the Secretary of State’s office.

There has been a push to move the state’s primary from May to March, due to two main issues. First, several states in the region including Tennessee and Mississippi are considering having their primaries around the same time in a so-called “SEC Primary” on Super Tuesday.

Also, two people with ties to the state – former Gov. Mike Huckabee, R-Ark., and former Secretary of State and Sen. Hillary Clinton, D-NY – are considering White House bids.

According to most experts, there are at least two dozen Republicans and a half-dozen Democrats who are looking at a run.

The bill now heads to the House.