Hot Springs board approves $580,453 Entergy upgrade for Gulfwood pump station

The Hot Springs City Board of Directors voted unanimously May 20 to approve Resolution R-25-105, authorizing a $580,453 payment to Entergy Arkansas LLC to extend and upgrade electrical distribution lines to the Gulfwood pump station so the city can operate a new pump station under construction.

City engineer Gary Carnahan told the board the city is building a new $10,000,000 pump station on Catherine Heights Road and Malvern Avenue and was surprised when Entergy informed staff the existing distribution system lacked the capacity to power the additional pumps. "To our surprise, we were informed by Entergy . . . that there is not enough power at that site to operate our new pumps," Carnahan said. He told directors Entergy must build new lines, wires and a transformer and that the company required the city to pay $580,453 for the work.

The purchase will be paid from 2025 bond funds, Carnahan said, and is required because Entergy is the city's sole electrical provider for that area. "This was not something we had planned for," Carnahan said. He told the board that recent cost savings on other bond projects leave the bond program "still a couple million dollars ahead of the game," though other forthcoming cost increases of roughly $200,000–$300,000 were flagged for future meetings.

Directors asked technical and budget questions during the discussion. Director Karen Garcia asked whether staff had an estimate of net budget impacts; Carnahan responded the city remains in a positive position overall because of recent favorable bids. Director Webb asked whether the new line will be dedicated to the pump station; Carnahan replied it would not be dedicated and other users could tie on to the line.

The board called the resolution by title and approved it on a roll call vote with all present directors voting "aye." The board did not set a public timeline for Entergy's work in the meeting minutes; the city manager and engineer said the pump station remains a high priority for the city's infrastructure program.

Staff said the electrical work is necessary before the new pumps can be commissioned and that the city will use bond proceeds to cover the Entergy charge and other project costs.