Hot Springs staff outline multiple utilities purchases, upgrades ahead of May 20 vote

City staff on an agenda-review meeting on the afternoon before the May 20 board session presented a package of utilities purchases and contracts that will be on the board’s consent agenda for formal consideration.

City engineers and utilities staff said the most immediate need is a $580,453 Entergy Arkansas upgrade to extend and strengthen distribution lines to power the new Gulf pump station. “Because we are basically creating the need by building the pump station, we have to pay for that,” said Carter Hill, presenting the item. Staff said the cost will be paid from wastewater bond funds and noted the expense was not anticipated in the original bond calculations.

The utilities package also includes an $818,655 construction contract award to Diamond Construction Company to replace aging asbestos-cement lines on Belvedere Drive with roughly 3,400 feet of 6-inch ductile-iron pipe and 350 feet of 2-inch pipe, plus new hydrants and valves. Joey Stadler, assistant project manager, told the board Diamond was the low responsive bidder out of seven and that the bid is considerably lower than the preliminary estimate of $1,170,157 provided by the city’s consultant. “Completion is anticipated by the end of the year, November of this year,” Stadler said. He clarified pavement will be restored to the existing condition after trenching: “We’re going to put the asphalt back as is.”

Several related consent items were previewed: a term contract to purchase liquid aluminum sulfate (alum) for water and wastewater treatment from Univar Solutions USA LLC, a purchase of a 2026 Kenworth T380 dump truck from MHC Arkansas Kenworth LLC for $142,880.74 to replace unit 9080, and a $10,000 purchase of approximately 1 acre of property at 308 Fontana Road adjacent to the Hot Springs Creek pump station.

Utilities director Monte Ledbetter described the alum contract procurement and budget planning: staff recommended awarding to Univar as the lowest responsive bidder once sales tax is included; the apparent pricing difference versus another bidder (Chemtrade) reflected tax treatment. On the truck, staff said the 2009 unit slated for replacement has about 4,700 hours and 69,883 miles and needs a new engine that is not cost-effective to replace.

Gary Carnahan, city engineer, described the Fontana Road parcel as strategically valuable because it adds land around the Hot Springs Creek Pump Station for valves, manholes, future maintenance access and potential trail extension; he said the $10,000 purchase price will be split between parks and utilities and that the seller is Darren Myers.

All of the items were presented for formal board action at the May 20 meeting; no final votes were taken during the agenda-review session.